/raid1/www/Hosts/bankrupt/TCR_Public/180906.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, September 6, 2018, Vol. 22, No. 248
Headlines
1021 WEST 8TH AVENUE: Unsecureds to Recoup 100% Under Plan
3600 ASHE: May Obtain Financing, Use Cash Collateral on Final Basis
47 HOPS: Committee Files Chapter 11 Plan of Liquidation
5431-33 S. WABASH: Sale of Commercial Property to Fund Plan
66 ON 66 BAR: Access to Cash Collateral Extended Until Sept. 14
8800 LLC: Wants Cash Access Extended to Jan. 21
ADVANCED UNDERGROUND: Gets Preliminary Approval for Plan Outline
AES CORP: Egan-Jones Hikes Senior Unsecured Ratings to BB
AGS ENTERPRISES: Trustee Taps Gittinger as President
ALABAMA PETROLEUM: Seeks Access to Fora Financial Cash Collateral
ALABAMA PETROLEUM: Seeks Access to Queen Funding Cash Collateral
ALABAMA PETROLEUM: Wants to Use Green Capital Cash Collateral
AUTO STRAP: May Continue Using Cash Collateral Until Sept. 30
AZ RES INVESTMENTS: Proposes to Pay Unsecureds 10% Under Plan
BELL FOODS: Seeks Authority to Continue Using Cash Collateral
BIOFLEX LIMITED: Gets Interim OK on Borrowings, Cash Collateral Use
BROWARD COLLISION: Trustee???s Emergency Motion Granted
CCS ONCOLOGY: 16th Emergency Cash Collateral Order Entered
CCS-CMGC HOLDINGS: Moody's Assigns B3 CFR, Outlook Stable
COHU INC: Moody's Assigns B1 Corp. Family Rating
COHU INC: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
COMPREHENSIVE CANCER SERVICES: 20th Cash Use Order Entered
CYTORI THERAPEUTICS: Extends Loan 'Interest-Only Period' to Dec 31
DEMAR ENERGY: Case Summary & 3 Unsecured Creditors
DEMERX INC: Taps Berkowitz Pollack to Provide Forensic Services
DERRICK PUGH: Oct. 1 Plan and Disclosure Statement Hearing
DPW HOLDINGS: Inks $2 Million Securities Purchaes Agreement
DYNALYST CORPORATION: Larry Vick Approved as Counsel
EDEN HOME: Rick Reed Approved as Auditor
ENCINO ACQUISITION: Fitch Assigns B+ LT IDR, Outlook Stable
EPICUREAN LLC: Seeks Approval of IRS Cash Collateral Agreement
ERI AMERICA: Judge Signs Third Interim Cash Collateral Order
F & F SPECIALTY: Seeks Authorization to Use KeyBank Cash Collateral
FAIRMONT PARTNERS: Final Cash Collateral Order Entered
FALLS EVENT CENTER: Allowed to Use Cash Collateral on Final Basis
FUELD FILMS: Moves to Use Cash Collateral
GEORGIA ANESTHESIA: To Pay Unsecs. $40K in Quarterly Distributions
GETTY IMAGES: S&P Puts 'CCC' ICR on CreditWatch Developing
HARMON TIRE: Seek Authority to Use MSBank Cash Collateral
INTEGRAL INVESTMENTS: Seeks Permission to Use Cash Collateral
IQVIA INC: Moody's Affirms Ba2 CFR & Alters Outlook to Stable
JAZPAL LLC: Case Summary & 2 Unsecured Creditors
JBECKS PROPERTIES: May Use Cash Collateral on Emergency Basis
JJ BELLA: Court Approves Mahady & Mahady as Bankruptcy Counsel
JLD AUTOMOTIVE: Case Summary & 4 Unsecured Creditors
JOURNAL-CHRONICLE: Sept. 25 Plan Confirmation Hearing
K & D HOSPITALITY: Sept. 11 Plan Confirmation Hearing
MCMAHAN-CLEMIS INSTITUTE: 5th Interim Cash Collateral Order Entered
METCOM NETWORK: Amended Plan Outline OK'd; Amend Plan Confirmed
MFL INC: Has Authorization on Cash Collateral Use
MONITRONICS INTERNATIONAL: S&P Cuts ICR to 'CC', Outlook Negative
MR. TORTILLA: Given Interim Approval to Use Cash Until Sept. 28
MUSCLEPHARM CORP: In Cost Savings Talks with Potential Partner
NJ COMMUNITY SPINE: Plan, Disclosures Joint Hearing Set for Oct. 2
NOBLE ENERGY: Egan-Jones Hikes Senior Unsecured Ratings to BB+
OAKMONT INVESTMENT: Seeks Authorization on Cash Collateral Use
ONCOBIOLOGICS INC: Terminates Office Lease with Cedar Brook
PARADISE AMUSEMENTS: Gets Approval of Plan to Exit Bankruptcy
PARKER PRIVATE: Moody's Assigns B3 CFR, Outlook Stable
PEPPERTREE PARK: New Plan Modifies Treatment of Interests Holders
PLASTIC INDUSTRIES: Seeks Authority to Use Cash Collateral
PLAYHUT INC: Fox Rothschild Approved as Committee Counsel
POINT COM: Judge Signs Third Interim Cash Collateral Order
PRIME SOURCE ACCESSORIES:Emergency Use of Cash Collateral Requested
QBS PARENT: S&P Assigns 'B-' Issuer Credit Rating, Outlook Stable
RANCHO EL CONQUISTADOR: Voluntary Chapter 11 Case Summary
RIVER HACIENDA: Future Operations to Fund Plan Payments
RMR OPERATING: Funder to Contribute $100K to Finance Plan
SCIENTIFIC GAMES: Names James Sottile as New EVP and CLO
SONIC AUTOMOTIVE: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
SPECIALTY BUILDING: S&P Affirms 'B' ICR, Outlook Stable
T.C.'S GRILL: Seeks Permission on Interim Use of Cash Collateral
THOMAS NICOL: Sept. 18 Hearing on Disclosure Statement
TK RESTAURANT: Ch. 11 Trustee Hires Arthur Lander as Accountant
TREATMENT CENTER: Taps Sharon Bradley as Accountant
TSC GREEN ACRES: Plan Outline Okayed, Plan Hearing on Oct. 23
TSC/NESTER'S LANDING: Plan Outline Okayed, Plan Hearing on Oct. 23
U.S. STEEL: Egan-Jones Hikes Senior Unsecured Ratings to BB-
VOYA FINANCIAL: Fitch Assigns BB+ Rating on $325MM Preferred Stock
VOYA FINANCIAL: Moody's Rates $325MM Preferred Stock 'Ba2(hyb)'
WATAUGA RECOVERY: Seeks Cash Access Pending Assets Sale
WILLIAM B LAWTON: Court Confirms Chapter 11 Liquidating Plan
WILLIAM B LAWTON: OG Clearinghouse Okayed as Auctioneer
WORD INTERNATIONAL: Oct. 4 Hearing on Proposed Plan Outline
XTRALIGHT MANUFACTURING: Cash on Hand, Exit Facility to Fund Plan
[^] Recent Small-Dollar & Individual Chapter 11 Filings
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1021 WEST 8TH AVENUE: Unsecureds to Recoup 100% Under Plan
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1021 West 8th Avenue Limited Partnership submits a disclosure
statement describing its plan of reorganization dated August 28,
2018.
The Debtor's assets consist of the Property located in King of
Prussia, Pennsylvania. Although the Debtor currently does not have
an exact value of the Property, the operating expenses of the
Property total approximately $5.87 per square foot (based on 49,112
square feet) and, when stabilized, the net operating income of the
Property would be positive. The current indebtedness alleged by the
secured creditor, including accrued interest on the secured loan,
is approximately $5,678,870.39.
It is estimated that Unsecured Creditors will receive approximately
100% of their Claim at the Plan Maturity Date.
The Plan will be funded by the Debtor's continued operation of
their proposed project, and offering the project for leasing or for
a sale to a third party buyer, including under Section 363 of the
Bankruptcy Code pursuant to the Plan. In addition, the Plan Funder
will provide sufficient working capital in excess of rental
receipts from tenants of the project to specifically address Class
2 payments and the payment of real estate taxes, insurance, and
maintenance of the Project.
The Debtor's management team has been and will continue to lease
and market the Property for sale. If not sold prior thereto, once
sufficient leases have been executed and the Project has
stabilized, replacement financing will be obtained. The Debtor
anticipates that replacement financing will be obtained prior to
the Plan Maturity Date. The overhead and costs of leasing,
marketing, and obtaining replacement financing that the Debtor???s
related companies will incur over the 24 month plan period will be
subsidized by the Plan Funder, which will further enhance the
Debtor's reorganization efforts.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/paeb18-15683-3.pdf
1021 West 8th Avenue Limited Partnership is a real estate lessor
based in King of Prussia, Pennsylvania.
1021 West filed for chapter 11 bankruptcy protection (Bankr. E.D.
Pa. Case No. 18-15683) on August 28, 2018, with estimated assets of
$1 million to $10 million and estimated liabilities of $1 million
to $10 million. The petition was signed by Arnold M. Katz,
president of general partner of the Debtor.
3600 ASHE: May Obtain Financing, Use Cash Collateral on Final Basis
-------------------------------------------------------------------
The Hon. Deborah J. Saltzman of the U.S. Bankruptcy Court for the
Central District of California authorized 3600 Ashe, LLC to (1)
borrow money and obtain financing from Investors Capital
Corporation, and (2) use the proceeds of the DIP Loan and the cash
collateral on a final basis.
The Debtor is authorized to use the DIP Loan Proceeds and the cash
collateral to pay any and all ordinary and necessary operating and
administrative expenses of the Debtor, as well as certain
non-ordinary expenses relating to repairs and renovations, pursuant
to and in accordance with the order and the budget. The Debtor's
use of the cash collateral in accordance with the foregoing is
authorized through Oct. 27, 2018.
The Debtor is not authorized to pay any management fees to any
property manager until such property manager's employment has been
authorized by an order of the Court but is authorized to pay the
reimbursable out-of-pocket expenses of the property manager but
only to the extent that such aggregate amount paid does not exceed
$5,000; and (2) the Debtor is authorized, but not directed, to pay
any outstanding homeowners' association dues within its discretion,
provided that such payments remain consistent with the Budget.
As security for the obligations of the Debtor under the DIP Loan
Documents, Investors Capital Corporation is granted valid, binding,
enforceable, unavoidable, and fully perfected security interests
and liens against, in, and upon the 19 condominium units owned by
the Debtor within the condominium complex located at 3600 Ashe
Road, Bakersfield, California 93309, and the proceeds, products,
offspring, rents, and profits thereof. The DIP Liens will be
immediately junior in priority to any and all liens against, in, or
upon the collateral existing as of the Petition Date, including
those security interests and liens held by the Prepetition Lenders.
In addition to the DIP Liens, Investors Capital Corporation is
granted, for all DIP Obligations, an allowed administrative expense
claim against the Debtor's estate pursuant to section 364(b).
Each Prepetition Lender is granted replacement security interests
and liens, (1) to the same extent, validity, and priority as such
Prepetition Lender's respective prepetition liens, (2) to the
extent of any Diminution in Value, and (3) to the extent of the
Debtor's use of such Prepetition Lender???s respective Cash
Collateral, against, in, or upon all property and assets of the
Debtor and all proceeds, products, offspring, rents, and profits
thereof, including any after-acquired property of any nature
whatsoever
The following Prepetition Lenders are provided with the following
adequate protection payments:
(1) V.I.P. Trust Deed Company, as servicing agent for the
various individuals and entities listed on the Prepetition Lenders
Schedule, will receive a monthly payment in the amount of $475 on
account of each of the 15 first-priority liens encumbering a
single, separate Debtor Unit (i.e., a total of $7,125 each month),
(2) LendingHomewill receive a monthly payment in the amount of
$1,100 on account of each of the four first-priority liens
encumbering a single, separate Debtor Unit (i.e., a total of $4,400
each month),
(3) LendingHome will receive a monthly payment in the amount
of $1,100 on account of each of the two first-priority liens
encumbering either Units 16 or 18 of the Debtor Property, provided
that the applicable Non-debtor Unit has been leased to and occupied
by a tenant (i.e., a total of up to $2,200 each month),
(4) Interstate will receive a monthly payment in the amount of
$500.00 on account of each of the three second-priority,
cross-collateralized liens encumbering separate sets of the Debtor
Units (i.e., a total of $1,500 each month).
The Adequate Protection Payments will be due on the following
dates: (1) the date that is three business days following entry of
this order, (2) August 10, 2018, (3) September 10, 2018, and (4)
October 10, 2018. All Adequate Protection Payments to LendingHome
will be payable to LendingHome's servicing agent at the following
address: FCI Lender Services, P.O. Box 27370, Anaheim Hills,
California 92809-0112.
A full-text copy of the Order is available at
http://bankrupt.com/misc/cacb17-25614-134.pdf
About 3600 Ashe, LLC
3600 Ashe, LLC, based in Glendale, CA, filed a Chapter 11 petition
(Bankr. C.D. Cal. Case No. 17-25614) on Dec. 26, 2017. In the
petition signed by Stephen Hall, managing member, the Debtor
estimated $1 million to $10 million in both assets and liabilities.
The Hon. Deborah J. Saltzman presides over the case. Dean G.
Rallis Jr., Esq., at Anglin Flewelling Rasmussen Campbell & Trytten
LLP, serves as bankruptcy counsel to the Debtor.
47 HOPS: Committee Files Chapter 11 Plan of Liquidation
-------------------------------------------------------
The Unsecured Creditors' Committee submits a disclosure statement
describing its proposed plan of liquidation for 47 Hops LLC.
The Committee's Plan provides for the appointment of a Plan Agent
who would assume management and control of the Debtor, and be
empowered to investigate the Debtor's financial affairs, value,
assets, liabilities, and potential claims against insiders and
third parties. Additionally, the Plan constitutes a motion for
substantive consolidation of the Debtor with its non-debtor
affiliate, MacKinnon Holdings, LLC. In the alternative, the Plan
contemplates the Agent's obtaining an order substantively
consolidating MacKinnon Holdings, LLC with the Debtor, or otherwise
transferring rights in the Warehouse to the Debtor. Secured
claimants would be paid on their claims from the sale of their
collateral.
Class 4 Allowed Unsecured Claims will be paid from (i) the Debtor's
unencumbered funds, including sale proceeds; (ii) the net proceeds
of any recovery from Avoidance Actions; (iii) proceeds from the
sale of the Warehouse. If the Class 1 claimant does not vote to
accept the Plan, then the Class 4 claimants would be entitled to
their pro rata share of (a) one-half of the Refund, plus (b) any
portion of the Refund not used by the Agent in fulfilling its
duties under this Plan. If, by contrast, the Class 1 claimant votes
to accept the Plan, then the Class 4 claimants would be entitled to
their pro rata share of any portion of the Refund not used by the
Agent in fulfilling its duties under the Plan.
The successful implementation of the Plan rests on many
assumptions, some or all of which could fail to meet expectations
and preclude the Plan from being confirmed or producing the
anticipated results. While the Committee views this Plan as
conservative, some of the significant risks include:
There is no guaranty that the Plan will be confirmed. Delay in
confirmation--and delay in creditor distributions, generally--may
result in decreased recoveries for creditors.
The Committee has not conducted any investigation as to the tax
consequence for creditors under the Plan. There may be adverse tax
consequences for creditors. Creditors with such concerns should
consult with their tax advisor.
A copy of the Committee's Disclosure Statement is available at:
http://bankrupt.com/misc/waeb17-02440-11-610.pdf
About 47 Hops LLC
Based in Yakima, Washington, 47 Hops LLC -- https://47hops.com/ --
sells aroma and alpha hops to breweries in 38 countries around the
world.
47 Hops LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Wash. Case No. 17-02440) on Aug. 11, 2017. In
the petition signed by Douglas MacKinnon, its president, the Debtor
disclosed $4.3 million in assets and $7.45 million in liabilities.
Judge Frank L. Kurtz presides over the case.
Catherine J Reny, Esq., and Nathan T. Riordan, Esq., at Wenokur
Riordan PLLC, serve as the Debtor's bankruptcy counsel.
A committee of unsecured creditors was appointed on Sept. 7, 2017.
The official committee of unsecured creditors tapped Cairncross &
Hempelmann, P.S., as counsel.
On Oct. 4, 2017, the Court entered an order approving the
appointment of a Chapter 11 Examiner. Marcia A. Frey, the
examiner, hired Hillis Clark Martin & Peterson P.S., as counsel.
5431-33 S. WABASH: Sale of Commercial Property to Fund Plan
-----------------------------------------------------------
5431-33 S. Wabash LLC submits a modified disclosure statement in
support of its modified chapter 11 plan of reorganization dated
August 28, 2018.
The Plan provides for payment of administrative expenses, priority
claims, and secured creditors in full, either in cash or in
deferred cash payments, and provides for payments to unsecured
creditors of 100% of the allowed amounts of their claims with no
interest.
The Debtor's funds for implementation of the Plan will be derived
from the Debtor's liquidation of its real property interests and
the sale of the commercial property known as 5437 S. Wabash, which
has more than enough equity to fund the entire plan upon closing
and approval of the U.S. Bankruptcy Court. The Debtor will list the
property with Kirby Pearson of Pearson Realty Group, 1000 N.
Milwaukee Avenue, Chicago, Illinois 60642 promptly and will also
file a motion to employ with the Court.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/ilnb18-12463-44.pdf
A copy of the original Disclosure Statement from PacerMonitor.com
is available at https://tinyurl.com/y8jjlhbc at no charge.
About 5431-33 S. Wabash LLC
5431-33 S. Wabash LLC owns a real property, which is its principal
asset, located at 5431-33 S. Wabash, Chicago, Illinois. 5431-33 S.
Wabash sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ill. Case No. 18-12463) on April 27, 2018. In the
petition signed by Dylan Reeves, managing member, the Debtor
estimated assets of less than $1 million and liabilities of less
than $500,000. Judge Janet S. Baer presides over the case.
66 ON 66 BAR: Access to Cash Collateral Extended Until Sept. 14
----------------------------------------------------------------
U.S. Bankruptcy Judge Scott H. Yun entered an order allowing 66 on
66 Bar & Grill, LLC and Golden Crown Properties, LLC to use cash
collateral of Pacific Premier Bank (PPC), on an interim basis,
until Sept. 14, 2018.
Subject to the approval of a separate motion, the Debtors may use
cash collateral to pay $30,000 to Bookings.com and $8,500 to Sysco
Arizona, Inc. Without the need of court approval, the Debtors are
allowed, by up to 20% to exceed on both line item and aggregate
basis.
The Debtors will pay PPC further adequate protection of $7,000
weekly or no less than $14,000 at any given two-week period, during
the interim period. Continued reporting is also ordered.
A further hearing is scheduled for Sept. 13, 2018, at 1:30 p.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/cacb18-14462_66_On_66_Cash_O.pdf
About 66 on 66 Bar & Grill
66 on 66 Bar & Grill, LLC, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Cal. Case No. 18-14462) on May 25,
2018. In the petition signed by Noble Zubaid, its managing member,
the Debtor estimated assets and debt of less than $1 million. The
Debtor is represented by Sandford L. Frey, Esq. at Leech Tishman
Fuscaldo & Lampl, Inc.
8800 LLC: Wants Cash Access Extended to Jan. 21
-----------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
previously granted 8800 LLC's first motion to use cash collateral
on an interim basis, expiring on Sept. 24, 2018. Now, 8800 LLC is
seeking authority to continue using cash collateral, in accordance
with its 17-week budget, from Sept. 25, 2018, to Jan. 21, 2019.
The Debtor's primary assets are as follows:
* Cash. As of the Petition Date, the Debtor had approximately
$21,000 in cash.
* Accounts Receivable. As of the Petition Date, the Debtor had
accounts receivable in the amount of approximately $16,000.
* Inventory. As of the Petition Date, the Debtor had inventory
which includes, but is not limited to, perishable food, dry goods,
and liquor, with an estimated value of approximately $20,000.
* Fixed Assets. As of the Petition Date, the Debtor had fixed
assets which include, but are not limited to, furniture, fixtures,
equipment, licenses and permits, music and stereo equipment, and
other equipment with an estimated value on a cost basis of
approximately $1,300,000.
* Other Assets. As of the Petition Date, the Debtor had other
assets including, among other things, security deposits, liquor
license, utility deposits, and other deposits at an estimated value
of $200,000.
The Debtor has three secured creditors, consisting of On Deck
Capital ($17,000 claim), Arcarius LLC ($178,000 claim), and Sysco
Los Angeles, Inc. (owed $4,300).
The Debtor has no ability to continue to operate and preserve its
business as a going concern unless it can use its current cash and
future revenue generated by its business to pay its operating
expenses, including, but not limited to, payroll, utilities, rent,
and to replenish inventory for the Restaurant. In order for the
Debtor to be able to operate its business while in Chapter 11, the
Debtor must be able to use (a) all of its cash existing on the
Petition Date plus (b) the Debtor's postpetition revenue generated
from the operation of its business to pay the
Debtor's postpetition operating expenses in accordance with the
Budget.
Based on the current estimated aggregate value of the collateral
(including the Debtor's cash, accounts receivable, inventory, fixed
assets, and other assets), which the Debtor believes is worth
approximately $1,600,000 as of the Petition Date, the Debtor
submits that the Secured Creditors' liens (securing the Secured
Creditors' claims in the aggregate amount of approximately
$200,000) are adequately protected by a substantial and meaningful
equity cushion. Further, the Debtor believes that the collateral
will not be depreciating in any meaningful amount in the short run,
and thus there is no need for the Debtor to be required to make
adequate protection payments
As further adequate protection of the Debtor's use of cash
collateral, the Debtor proposes that its continued operation will
protect the value of the Secured Creditors' collateral, and that
the Secured Creditors would receive replacement liens against the
Debtor's postpetition assets, with such replacement liens to have
the same validity, priority, and extent as the prepetition liens
held by the Secured Creditors against the Debtor's cash.
Also, consistent with the First CC Orders, as additional adequate
protection for the Debtor's use of the cash collateral of Arcarius,
the Debtor will agree to continue making daily payments to Arcarius
of $250.00 for five days per week (i.e., aggregate payments of
$1,250 per week) during the continued cash collateral period.
A hearing on the Motion is scheduled on Sept. 19, 2018, at 11:00
a.m.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/cacb18-17263_8800_Cash_M.pdf
About 8800 LLC
8800 LLC is the owner and operator of an entertainment facility ???
which includes a fine dining restaurant specializing in
Italian-American fare, known as "Estrella"; a semi-secret lounge
for cocktail receptions, social events, and live entertainment,
known as the "Ma Lounge"; and a state-of-the-art theatre that was
used for private screenings and events known as the "Ma Theatre".
The entertainment facility is located at 8800 Sunset Boulevard,
West Hollywood, California, and 8800 LLC occupies premises pursuant
to with TMC Realty L.L.C., which lease expires 2025.
More recently, the Debtor experienced some serious financial
difficulties. While in discussions with a potential partner, the
Company received a $1 million purchase offer from a
well-capitalized party. A $1 million sale of the business would
have allowed the Debtor to pay its creditors in full, allow for a
distribution to equity, and maintain the jobs of the employees,
respectively.
Unexpectedly, in April 2018, the landlord notified the Debtor that
it would invoke the "recapture provision" and terminate the lease.
Believing, among other things, that the landlord had breached the
lease, the Debtor filed an action against the Landlord, styled 8800
LLC, a California Limited Liability Company v. TMC Realty, L.L.C.,
Case No. BC706293, that is pending in the Superior Court of
California, County of Los Angeles.
8800 LLC sought Chapter 11 protection (Bankr. C.D. Cal. Case No.
18-17263) on June 22, 2018. In the petition signed by Alan Nathan,
managing member, the Debtor estimated assets and liabilities at $1
million to $10 million. The case is assigned to Judge Robert N.
Kwan. The Debtor is represented by David B. Golubchik, Esq. at
Levene, Neale, Bender, Yoo & Brill L.L.P.
ADVANCED UNDERGROUND: Gets Preliminary Approval for Plan Outline
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan will
consider approval of the Chapter 11 plan of reorganization for
Advanced Underground Inspection, LLC at a hearing on Oct. 17.
The hearing will be held at 11:00 a.m., at Room 1925.
The court will also consider at the hearing the final approval of
the company's disclosure statement, which it preliminarily approved
on Aug. 30.
The order set an Oct. 9 deadline for creditors to file their
objections and submit ballots of acceptance or rejection of the
plan.
About Advanced Underground Inspection
Established in 2001, Advanced Underground Inspection, LLC --
http://www.auinspection.com/-- provides underground storm and
sanitary line video inspections services to include sewer cleaning,
catch basin and manhole cleaning, grouting, air testing, pipe and
manhole rehabilitation, and site restoration. Additionally,
Advanced Underground Inspection, LLC provides ancillary services
related to storm/sewer systems for pump stations and waste water
treatment plants including: sludge removal, waterblasting, disposal
services and hydro-excavating. The Company is headquartered in
Westland, Michigan.
Advanced Underground Inspection filed a Chapter 11 petition (Bankr.
E.D. Mich. Case No. 18-46416) on May 1, 2018. In the petition
signed by Jeana Garcia Moir, president, the Debtor disclosed
$860,087 in total assets and $2.55 million in total liabilities.
The case is assigned to Judge Thomas J. Tucker. The Debtor is
represented by Lynn M. Brimer, Esq. at Strobl & Sharp, PC.
AES CORP: Egan-Jones Hikes Senior Unsecured Ratings to BB
---------------------------------------------------------
Egan-Jones Ratings Company, on August 29, 2018, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by The AES Corporation to BB from BB-.
Headquartered in Arlington, Virginia, The AES Corporation acquires,
develops, owns, and operates generation plants and distribution
businesses in several countries.
AGS ENTERPRISES: Trustee Taps Gittinger as President
----------------------------------------------------
Judge Stacey G. Jernigan of the United States Bankruptcy Court for
Northern District of Texas in Dallas will hold a hearing October 3,
2018, to consider the request of Douglas Herber -- the duly
appointed Trustee of the Creditors' Trust created under the
confirmed Third Amended Joint Plan of Reorganization for AGS
Enterprises, Inc., and KLN Steel Products Company, LLC -- to
approve the employment of Michael A. Gittinger as President for the
reorganized Debtors and Non-Debtor Affiliates.
The Plan Trustee wants to remove John O'Donnell and hire Gittinger
as President.
O'Donnell has objected to the request.
Judge Jernigan conducted a non-evidentiary hearing to consider the
request on August 9. The Court instructed counsel for Trustee that
he should reschedule hearing because the Court cannot rule without
hearing evidence. No witness was presented.
According to the Trustee's request, Gittinger will be compensated
according to the terms of the parties' Employment Agreement in the
amount of $150,000 per year, payable from a declining balance
escrow account funded in the amount of $300,000.
Gittinger attests that he is a "disinterested person" within the
meaning of section 101(14) of the Bankruptcy Code and, as required
by section 327(a), does not hold or represent an interest adverse
to the Trust or Reorganized Debtor and Non-Debtor Affiliates, and
apart from the prospect of employment, has no connection to the
Reorganized Debtor, their creditors or other parties in interest.
* * *
Herber filed with the Bankruptcy Court on August 14 his 60-day
Notice of Resignation as Trustee for the AGS Creditors' Trust.
About AGS Enterprises
AGS Enterprises, Inc., and KLN Steel Products Company, LLC, each
filed a chapter 11 petition (Bankr. N.D. Tex. Case Nos. 16-34322
and 16-34323, respectively) on Nov. 2, 2016. The cases were
jointly administered. In the petitions signed by Kelly O'Donnell,
president, the Debtors estimated assets and liabilities at $1
million to $10 million at the time of the filing. The cases have
been assigned to Judge Stacey G. Jernigan.
The Debtors initially sought and obtained approval to hire Coats
Rose, P.C., as counsel. After Frank Jennings Wright and two others
moved to Gardere Wynne Sewell LLP, the Debtors sought and obtained
approval to hire Gardere as replacement for Coats Rose.
Following the combination of Foley & Lardner LLP and Gardere Wynne
Sewell LLP effective April 1, 2018, the Reorganized Debtors have
hired as counsel:
C. Ashley Ellis, Esq.
Erin C. McGee, Esq.
Frank Jennings Wright, Esq.
FOLEY & GARDERE, LLP
2021 McKinney Ave., Suite 1600
Dallas, TX 75201
On February 21, 2018, the court confirmed the Debtors' Chapter 11
plan of reorganization. As part of that plan, Douglas Herber was
appointed to administer the AGS Creditors' Trust.
The Plan Trustee hired Locke Lord LLP to assist in certain criminal
investigations.
The Plan Trustee is represented by:
John R. Lane, Jr., Esq.
Matthew J. Countryman, Esq.
LANE & COUNTRYMAN
8526 N. New Braunfels Ave.
San Antonio, TX 78217
Tel: (210) 828-8900
Fax: (210) 804-2339
E-mail: johnlane@jrl-law.com
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ALABAMA PETROLEUM: Seeks Access to Fora Financial Cash Collateral
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Alabama Petroleum Carrier, LLC, seeks authorization from the United
States Bankruptcy Court for the Middle District of Alabama allowing
its use of Fora Financial Business Loans, LLC's cash collateral in
the normal course of business.
The Debtor proposes to use the cash collateral to meet its
postpetition obligations and to pay its expenses, general and
administrative operating expenses, and other necessary costs and
expenses, including taxes and insurance and other expenses incurred
during the pendency of the bankruptcy case as listed in the budget.
The 3-Month Budget provides total monthly expenses of
approximately $41,220 during the months of August, September and
October.
The Debtor does not have Fora Financial's permission to use its
cash collateral.
The Debtor has a note with Fora Financial Business Loans, LLC,
having a balance of approximately $25,000. As security for its
claims, Fora Financial asserts a lien on all accounts receivable
and working capital.
The Debtor proposes to pay Fora Financial $1,000 per month as
adequate protection.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/almb18-32126-11.pdf
About Alabama Petroleum Carrier
Montgomery, Alabama-based Alabama Petroleum Carrier, LLC, filed for
Chapter 11 bankruptcy protection (Bankr. M.D. Ala. Case No.
18-32126) on July 30, 2018. In the petition signed by Donnie R.
Ingram, president, the Debtor estimated assets of less than
$500,000 and debt of less than $1 million. Judge Bess M. Creswell
presides over the case. The Debtor tapped Michael A. Fritz, Sr.,
Esq., as its legal counsel. No official committee of unsecured
creditors has been appointed in the Chapter 11 case.
ALABAMA PETROLEUM: Seeks Access to Queen Funding Cash Collateral
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Alabama Petroleum Carrier, LLC, seeks authorization from the U.S.
Bankruptcy Court for the Middle District of Alabama allowing its
use of Queen Funding, LLC's cash collateral incident to expenses
incurred in the normal course of business which is vital to
reorganization.
The Debtor proposes to use the cash collateral to meet its
postpetition obligations and to pay its expenses, general and
administrative operating expenses, and other necessary costs and
expenses, including taxes and insurance and other expenses incurred
during the pendency of the bankruptcy case as listed in the budget.
The 3-Month Budget provides total monthly expenses of approximately
$41,220 during the months of August, September and October.
The Debtor has a note with Queen Funding, LLC having a balance of
approximately $35,000. Queen Funding asserts a lien on all of
Debtor's accounts receivable and working capital.
The Debtor does not have Queen Funding's permission to use its cash
collateral.
The Debtor proposes to pay Queen Funding $1,000 per month as
adequate protection.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/almb18-32126-13.pdf
About Alabama Petroleum Carrier
Montgomery, Alabama-based Alabama Petroleum Carrier, LLC, operates
a petroleum distribution company wherein they own trucks and
trailers that haul petroleum to retail outlets. The Company is
operated by Donnie Ingram and his son Houston Ingram. The
Company's average gross revenue currently is about $61,200 per
month, and the Company has about 8 employees.
Alabama Petroleum Carrier filed for Chapter 11 bankruptcy
protection (Bankr. M.D. Ala. Case No. 18-32126) on July 30, 2018.
Judge Bess M. Creswell presides over the case. The Debtor tapped
Michael A. Fritz, Sr., Esq., as its legal counsel. In the petition
signed by Donnie R. Ingram, president, the Debtor estimated assets
of less than $500,000 and debt of less than $1 million. No
official committee of unsecured creditors has been appointed in the
Chapter 11 case.
ALABAMA PETROLEUM: Wants to Use Green Capital Cash Collateral
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Alabama Petroleum Carrier, LLC, seeks authorization from the United
States Bankruptcy Court for the Middle District of Alabama allowing
its use of Green Capital Funding, LLC's cash collateral in the
normal course of business which is vital to reorganization.
The Debtor does not have Green Capital's permission to use its cash
collateral.
The Debtor proposes to use the cash collateral to meet its
postpetition obligations and to pay its expenses, general and
administrative operating expenses, and other necessary costs and
expenses, including taxes and insurance and other expenses incurred
during the pendency of the bankruptcy case as listed in the budget.
The 3-month budget provides total monthly expenses of
approximately $41,220 during the months of August, September and
October.
The Debtor has a note with Green Capital Funding, LLC having a
balance of approximately $102,000. As security for its claims,
Green Capital asserts a lien on all of Debtor's accounts receivable
and working capital. The Debtor proposes to pay Green Capital
$2,500 per month as adequate protection.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/almb18-32126-12.pdf
About Alabama Petroleum Carrier
Montgomery, Alabama-based Alabama Petroleum Carrier, LLC, operates
a petroleum distribution company wherein they own trucks and
trailers that haul petroleum to retail outlets. The Company is
operated by Donnie Ingram and his son Houston Ingram. The
Company's average gross revenue currently is about $61,200 per
month, and the Company has about 8 employees.
Alabama Petroleum Carrier filed for Chapter 11 bankruptcy
protection (Bankr. M.D. Ala. Case No. 18-32126) on July 30, 2018.
Judge Bess M. Creswell presides over the case. The Debtor tapped
Michael A. Fritz, Sr., Esq., as its legal counsel. In the petition
signed by Donnie R. Ingram, president, the Debtor estimated assets
of less than $500,000 and debt of less than $1 million. No
official committee of unsecured creditors has been appointed in the
Chapter 11 case.
AUTO STRAP: May Continue Using Cash Collateral Until Sept. 30
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The Hon. Mark Houle of the U.S. Bankruptcy Court for the Central
District of California authorized Auto Strap Transport, LLC to
continue to use cash collateral from Aug. 1, 2018 through Sept. 30,
2018 under the same terms and conditions of the Order Authorizing
Interim Use of Cash Collateral entered on July 6, 2018 except as
modified, if at all, by the Final Order Approving the Second
Amendment to Stipulation Regarding DIP Financing and Modification
of Cash Collateral Stipulation entered on July 9, 2018 and the
Order Approving Stipulation Between Debtor and Nations Fund I, LLC
for Continued Use of Cash Collateral entered on May 30, 2018.
All creditors secured by cash collateral are granted replacement
liens in the same priority and to the extent as their pre-petition
liens.
A copy of the Order is available at
http://bankrupt.com/misc/cacb17-19936-398.pdf
About Auto Strap Transport
Auto Strap Transport L.L.C. -- http://autostraptransport.com/-- is
a privately owned auto transport carrier company with its corporate
office in Fontana, California, and additional terminals in
Milipitas, and Benecia, California, and La Vergne, Tennessee.
Auto Strap Transport filed a Chapter 11 petition (Bankr. C.D. Cal.
Case No. 17-19936) on Dec. 1, 2017. In the petition signed by
Richard Rudder, managing member, the Debtor estimated $1 million to
$10 million in total assets and $10 million to $50 million in
liabilities. The case is assigned to Judge Mark D. Houle. The
Debtor is represented by Todd L Turoci, Esq., at the The Turoci
Firm.
AZ RES INVESTMENTS: Proposes to Pay Unsecureds 10% Under Plan
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AZ Res Investments, LLC, filed a disclosure statement explaining
its plan of reorganization.
The Debtor is owned by Braxton Glass and Jeffrey Schindler and was
formed as a real estate investment company. Prior to filing the
bankruptcy, the Debtor purchased the leasehold interest and
improvements to the ground of the real property located at 7313 E.
Rose Lane., Scottsdale, Arizona 85250, and purchased title to the
improvements upon the real property.
Class 3-A general unsecured creditors will be paid a pro-rata share
from the Debtor, through funding provided by Debtor's principals
after all senior Allowed Claims have been paid in accordance with
the terms of the Plan. Any Allowed Unsecured Claims that are
determined to be non-dischargeable will continue to receive a
pro-rata distribution from the proceeds of the sale of the real
property until satisfied in full.
Based upon this plan, new general unsecured claims will arise due
to the bifurcation of secured claims. At this time, the Debtor is
not able to provide an approximation of the new unsecured claims
created due to bifurcation, as secured creditors may object to
their treatment and the treatment and value may have to be amended.
Debtor does not dispute these claims and as such they shall be
deemed allowed.
Debtor proposes paying on a pro-rata basis 10% of the total Class
3-A claims. This payment will be made pro-rata to all allowed
general unsecured claims after administrative claims, Allowed
Secured Claims, and Disputed Secured Claims are paid.
Glass and Schindler, the principals of the Debtor, will provide for
the payment to creditors under the Plan. The Reorganized Debtor
will act as the Disbursing Agent under the Plan.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/azb2-18-03839-74.pdf
About AZ Res Investments
AZ Res Investments, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 18-03839) on April 12,
2018. Judge Madeleine C. Wanslee presides over the case.
BELL FOODS: Seeks Authority to Continue Using Cash Collateral
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Bell Foods, L.L.C., and Bellco Holdings, L.L.C., seek authority
from the U.S. Bankruptcy Court for the Eastern District of
Louisiana to continue to use cash proceeds from its accounts
receivable and inventory in order to stay in business.
The Debtor does not have available sources of working capital to
operate without the use of such cash collateral. Accordingly, the
Debtor has an immediate need to use cash collateral in order to
permit the continuation of its business and to manage and preserve
the assets of the estate for the benefit of creditors.
The Debtors' bankruptcy case was precipitated by an executory
process action commenced by Hancock Whitney Bank, seeking to
foreclose on the Debtors' warehouse. Thus, the Debtors believe that
HW Bank and certain other creditors claim to have a security
interest against cash collateral as defined pursuant to 11 U.S.C.
Section 363(a).
The Debtors are willing to offer secured creditor HW Bank (and any
other creditor who asserts a lien in cash that may constitute cash
collateral) replacement liens on all assets of the estate,
including future receivables and inventory, to the same extent,
validity and priority as exists against the cash collateral and
other collateral as of the filing of this case, to the extent of
any diminution in the value of such creditor's prepetition
collateral and, to the extent deemed necessary by the Court, to
make monthly payments.
As additional protection, the Debtors will (a) adhere to their
projection of operating expenditures as set forth in the proposed
cash collateral budget, and (iii) pay adequate protection payments,
should the Court deem such payments necessary, which payments
should be applied to reduce the principal balance of HW Bank's
secured claim.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/laeb18-11988-8.pdf
About Bell Foods
Bell Foods, L.L.C., is a full line food-service distributor and
delivery service company. It offers an assortment of custom meat
and seafood products along with a variety of other categories. The
Company has a virtual warehouse containing over 112,000 products
from over 800 manufacturers. Located in Louisiana, the Company
services the southeast quadrant of the United States.
Bell Foods, L.L.C., based in Harahan, LA, and its debtor-affiliates
sought Chapter 11 protection (Bankr. E.D. La. Lead Case No.
18-11988) on July 31, 2018. In the petition signed by John
Bellini, III, president, the Debtors estimated up to $50,000 in
assets and $1 million to $10 million in liabilities. The Hon.
Jerry A. Brown presides over the case. Leo D. Congeni, Esq., at
Congeni Law Firm, LLC, serves as bankruptcy counsel to the Debtors.
BIOFLEX LIMITED: Gets Interim OK on Borrowings, Cash Collateral Use
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The U.S. Bankruptcy Court for the Northern District of Texas has
entered an interim order authorizing Bioflex Limited Partnership,
PLLC's cash collateral use and postpetition borrowings under senior
lien and super-priority from Nortex Cash Management, Inc.
The Debtor will be able to use cash collateral only under the terms
and conditions imposed by the approved Budget. Since that budget
assumes a monthly basis, the Debtor is to divide the budget in
one-half for the 14-day interim period for a total approved use of
$64,160 which will require factoring of $128,320 in Debtor's pre-
and post-petition receivables. However, this division of the budget
will not apply to the $20,000 adequate protection payments to the
IRS which will be paid in full in the 14 day interim period.
As adequate protection for the use of cash collateral, the IRS will
be given a replacement lien in the amount of every dollar of cash
collateral used under the budget under the interim order. This is
in addition to the adequate protection payments of $20,000.
Nortex will be granted senior lien and superiority status only as
to each dollar of advances it makes under terms of the under terms
of the Financial Service, Factoring and Security Agreement and
under the terms of the Interim Order.
A full-text copy of the Order is available at
http://bankrupt.com/misc/txnb18-32005-56.pdf
About Bioflex Limited Partnership
Bioflex Limited Partnership sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Tex. Case No. 18-32005) on June
15, 2018. At the time of the filing, the Debtor estimated assets
of less than $500,000 and liabilities of less than $50,000. Judge
Barbara J. Houser presides over the case.
BROWARD COLLISION: Trustee???s Emergency Motion Granted
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Judge Raymond B. Ray, of the U.S. Bankruptcy Court of the Southern
District of Florida, FT. Lauderdale Division, granted the emergency
motion filed by the trustee of Broward Collision, Inc. to use cash
collateral. The order authorizes the Trustee to use cash
collateral through Aug. 30, 2018. As adequate protection for the
use of Cash Collateral, the priorities of the secured creditors
will remain the same as they were at the time of the petition date
and each will have replacement liens on the assets remaining at the
end of the use of the cash collateral
A full-text copy of the Order is available at:
http://bankrupt.com/misc/flsb18-17492_Broward_Cash_O.pdf
About Broward Collision
Broward Collision, Inc., is one of the largest established
independent facilities located in Sunrise serving West Broward.
Broward Collision, Inc., is a strong, solid name in the industry
offering one of the largest licensed and certified collision repair
facilities in West Sunrise.
Broward Collision filed pro se a voluntary petition under chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-17492)
on June 22, 2018, estimating under $1 million in assets and
liabilities. The Debtor later hired Rachamin "Rocky" Cohen, Esq.,
at Cohen Legal Services, PA, as counsel, effective June 27, 2018.
Secured creditor TCA Global Credit Master Fund, L.P., filed a
motion asking the Court appoint a Chapter 11 trustee, citing that
the Debtor has been using cash collateral without court approval.
Bradley Shraiberg, Esq., at Shraiberg, Landau & Page, P.A.,
represents TCA.
Soneet Kapila was appointed as the Chapter 11 Trustee of Broward
Collision in August 2018. The Trustee retained Furr Cohen, P.A.,
as attorney.
CCS ONCOLOGY: 16th Emergency Cash Collateral Order Entered
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The Hon. Michael J. Kaplan of the U.S. Bankruptcy Court for the
Western District of New York has entered a Sixteenth Emergency
Order authorizing Comprehensive Cancer Services Oncology, P.C., and
its affiliated-debtors to use cash collateral.
Pursuant to the Sixteenth Emergency Order, the Debtors are
authorized to use cash collateral limited to the following purposes
and amounts, to the extent that, in the judgment of the Chapter 11
Trustee, they are necessary and appropriate for the protection of
the interests of the estates and/or property of the estates:
(a) To Erie County Water Authority, for water service at 626
Frankhauser Road, Amherst, New York: $157.03;
(b) To Modern Disposal, for dumpster service: $158.15
(c) Payroll for employees of the Debtors Comprehensive Cancer
Services Oncology, P.C. and CCS Medical, PLLC, as more particularly
set forth in a spreadsheet circulated among the appearing parties,
for the week beginning August 6, 2018, with total payments for
those employees not to exceed $12,000 per week. Sufficient funds to
cover the taxes will be made within two business days of the
issuance of wages.
Bank of America, N.A., the United States and all Creditors holding
liens on or claims against the cash collateral, are granted
roll-over replacement liens or rights of setoffs as security, to
the same extent, in the same priority, and with respect to the same
assets, which served as collateral for said creditors' prepetition
indebtedness, to the extent of cash collateral actually used during
the pendency of Debtor's Chapter 11 case. Such replacement liens
will attach pro rata to the extent that cash collateral used was
subject to each creditor's respective first priority lien, without
the need of any further public filing or other recordation to
perfect such roll-over or replacement liens or security interests.
To the extent that the replacement liens fail to compensate the
Secured Creditors for the cash collateral use, each of the Secured
Creditors will have, respectively, an administrative claim under 11
U.S.C. Section 507(b) with priority over other expenses of
administration under Section 507(a)(2).
In order for the parties to be able to ascertain which creditor's
collateral has been used for the purposes authorized in the
Sixteenth Emergency Order, the Debtors will keep and preserve
records, currently in their possession or hereafter received or
created, that may enable the secured parties to ascertain the
source of all receipts used pursuant to the Sixteenth Emergency
Order including the amounts received from particular payors and the
invoices to which those receipts pertain.
A full-text copy of the Sixteenth Emergency Order is available at
http://bankrupt.com/misc/nywb18-10598-367.pdf
About CCS Oncology
Comprehensive Cancer Services Oncology, P.C., doing business as CCS
Oncology and CCS Healthcare, along with its affiliates, sought
Chapter 11 protection (Bankr. W.D.N.Y. Lead Case No. 18-10598) on
April 2, 2018. In the petitions signed by Won Sam Yi,
president/CEO, CCS estimated at least $50,000 in assets and $10
million to $50 million in liabilities.
CCS Oncology is a professional corporation operating a practice of
medical and radiological oncology treatment, with offices in
Orchard Park, Frankhauser, Niagra Falls, Kenmore, and Lockport.
CSS Medical PLLC is a provider of primary care and specialty
medicine services currently operating at Orchard Park, Delaware
Avenue, and Youngs.
CCS Oncology is the sole member of CCS Medical. CCS Equipment is
the owner of certain medical equipment used in the medical
practices and CCS Oncology is its sole member. CCS Billing was
intended to be developed into a separate billing entity for the
medical practices, but was never funded or operational. CCS
Billing has no assets and has had no activity other than showing a
couple of minimal historical accounting entries. WSEJ is the owner
of certain real property used by the medical practices. The Debtors
are headquartered in Orchard Park, New York.
Judge Michael J. Kaplan is the case judge. Arthur G. Baumeister,
Jr., Esq., of Baumeister Denz LLP, serves as the Debtors' counsel.
Mark Schlant has been named the Chapter 11 trustee. Joseph J.
Tomaino of Grassi Healthcare Advisors LLC has been appointed
patient care ombudsman.
CCS-CMGC HOLDINGS: Moody's Assigns B3 CFR, Outlook Stable
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Moody's Investors Service assigned a B3 Corporate Family Rating and
a B3-PD Probability of Default Rating to CCS-CMGC Holdings, Inc.
Moody's also assigned a B2 rating to the company's proposed first
lien senior secured credit facilities, including a $500 million
senior secured first lien term loan and a $65 million senior
secured first lien revolver. At the same time, Moody's assigned a
Caa2 rating to the company's proposed $110 million secured second
lien term loan. This is the first time Moody's has publicly rated
CCS-CMGC Holdings, Inc.. The outlook for the ratings is stable.
In July 2018, H.I.G. Capital, a private equity firm, entered into a
definitive agreement to acquire Correct Care Solutions Group
Holdings, LLC from its existing owners Audax Group, GTCR Private
Equity, and Frazier Healthcare Partners. CCS will be merged with
Correctional Medical Group Companies following the closing of the
leveraged buyout of the company. All of CCS's outstanding debt will
be repaid with these proceeds. The transaction is expected to close
imminently.
All ratings are subject to review of final documentation.
Moody's assigned the following ratings:
CCS-CMGC Holdings, Inc.:
Corporate Family Rating at B3
Probability of Default Rating at B3-PD
Gtd Senior secured first lien revolving credit facility due 2023 at
B2 (LGD3)
Gtd Senior secured first lien term loan due 2025 at B2 (LGD3)
Gtd Senior secured second lien term loan due 2026 at Caa2 (LGD5)
Rating outlook is stable
All existing ratings for the pre-LBO issuer Correct Care Solutions
Group Holdings, LLC have not been changed and will be withdrawn
upon close of the transaction.
RATINGS RATIONALE
CCS-CMGC's B3 Corporate Family Rating broadly reflects Moody's
expectation that the company will operate with high financial
leverage, and modest interest coverage. Moody's estimates adjusted
debt to EBITDA of approximately 6.4 times for the twelve months
ended June 30, 2018, pro forma for a considerable amount of
addbacks related to recent contract wins, as well as identified
cost synergies. The rating also incorporates business risks
associated with the correctional healthcare segment, as well as
event risk associated with the company's integration and execution
risks inherent in the merger of CCS and CMGC. However, the ratings
are supported by the sound strategic rationale for the merger,
given the combined company's enhanced scale and good diversity
across customers, geographies, and business segments, as well as
the company's strong market position in the more attractive public
jails segment. Moody's expects the combination to generate
significant cost savings over the next 12 to 18 months, while
generating positive free cash flow, as the business is
characterized by minimal bad debt expense and modest capital
investment needs. The rating also reflects Moody's belief that
CCS-CMGC will pursue an aggressive growth strategy, including
acquisitions, which will limit debt repayment.
The stable outlook reflects Moody's expectation of solid growth and
cost savings opportunities following the combination of CCS and
CMGC, offset by integration and execution risks. The outlook also
incorporates expectation of solid free cash flow and maintenance of
a good liquidity profile.
Moody's could downgrade the ratings if the company experiences
disruption in the integration of the merger or if outlined
synergies do not materialize. Weakening of liquidity could also
result in a downgrade. Finally, if Moody's believes that adjusted
debt/EBITDA will be sustained above 7.0 times, the ratings could be
downgraded.
The ratings could be upgraded upon successful integration of the
merger and realization of synergies resulting in improved
profitability and cash flow, as well as deleveraging such that debt
to EBITDA is sustained below 6.0 times. An upgrade would also have
to be supported by a strong liquidity profile.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
CCS-CMGC Holdings, Inc., headquartered in Nashville, Tennessee,
provides medical, dental, and behavioral health services to
patients in local detention facilities, federal and state prisons
and behavioral healthcare facilities. CCS-CMGC will be privately
owned by H.I.G. Capital. The company generated pro forma revenues
of approximately $1.6 billion for the twelve months ended June 30,
2018.
COHU INC: Moody's Assigns B1 Corp. Family Rating
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Moody's Investors Service assigned first time ratings to Cohu, Inc.
-- Corporate Family Rating of B1 and Probability of Default Rating
of B1-PD, a B1 rating to the Senior Secured Term Loan B, and a
Speculative Grade Liquidity rating of SGL-2. The rating outlook is
stable.
Cohu intends to use the proceeds of the Term Loan and balance sheet
cash to acquire Xcerra Corp. for $9.00 cash and 0.2109 Cohu shares
per Xcerra share, or about $796 million of equity value.
Assignments:
Issuer: Cohu, Inc.
Corporate Family Rating, Assigned B1
Senior Secured Bank Credit Facility, Assigned B1 (LGD3)
Probability of Default Rating, Assigned B1-PD
Speculative Grade Liquidity Rating, Assigned SGL-2
Outlook Actions:
Issuer: Cohu, Inc.
Outlook, Assigned Stable
RATINGS RATIONALE
The B1 CFR reflects Cohu's consistent free cash flow ("FCF")
generation due to the modest capital intensity and large base of
consumable products, accounting for nearly half of revenues, which
produces a base of recurring revenues that varies with the level of
global semiconductor production volume. The rating also reflects
the company's leadership position in certain niches of the
semiconductor test equipment market. Debt to EBITDA of about 2.9x
(latest twelve months ended June 30, 2018, proforma for Xcerra,
Moody's adjusted excluding anticipated synergies) at the closing of
the acquisition should decline toward the mid 2x level over the 18
months following closing as debt is repaid and synergies are
captured. This level of closing leverage is modest relative to many
similarly-rated issuers and reflects the large equity component of
the Xcerra acquisition, with equity comprising about 35% of the
$796 million equity purchase price. Moreover, the acquisition of
Xcerra diversifies Cohu's revenue base and increases scale, raising
revenues to about $845 million (latest twelve months ended June 30,
2018, proforma for Xcerra).
This level of leverage is prudent given the significant execution
risks in integrating Xcerra, which will increase Cohu's revenue
base by over 125% and expands Cohu into new product areas,
including automated test equipment and printed circuit board test
equipment. Both Cohu and Xcerra maintain production facilities,
which will need to be integrated into Cohu's global production
network and thus expose Cohu to further execution risks. Moreover,
Cohu's revenues are volatile, since over half of revenues are
derived from capital equipment sales, and thus tend to track
semiconductor industry capital equipment spending.
The B1 rating on the proposed Term Loan reflects the collateral,
comprised of a first priority lien on the company's assets, and
modest cushion of unsecured liabilities. Cohu's SGL-2 speculative
grade liquidity ("SGL") rating reflects Cohu's good liquidity
profile. Although Cohu does not maintain access to a revolving
credit facility, Moody's expects annual FCF to be in excess of $75
million annually and at least $100 million of cash to be maintained
on the balance sheet. The Term Loan is not governed by financial
maintenance covenants.
The stable rating outlook reflects Moody's expectation of low to
mid single digit percentage revenue growth, the EBITDA margin
improving towards the upper teens percent level (Moody's adjusted),
and FCF in excess of $75 million annually. The outlook also
incorporates Moody's expectation that Cohu will integrate Xcerrra
into its operations over the next year without material disruption
to operations. Moody's expects that Cohu will prioritize debt
reduction and will capture most of the anticipated $20 million of
operating expense synergies, such that debt to EBITDA (Moody's
adjusted) will decline towards the mid 2x level over the 18 months
following closing.
The ratings could be upgraded if (i) Cohu successfully integrates
Xcerra, (ii) revenue growth is sustained at least in the mid-single
digits percent, and (iii) anticipated cost synergies are captured
such that the EBITDA margin (Moody's adjusted) is sustained above
20% and debt reduction is prioritized, with debt to EBITDA (Moody's
adjusted) maintained below 2.5x.
The ratings could be downgraded if (i) revenues decline, (ii) Cohu
experiences operational disruptions in its integration of Xcerra,
(iii) FCF to debt (Moody's adjusted) declines toward 5%, or (iv)
Cohu engages in shareholder-friendly actions prior to material
deleveraging .
The principal methodology used in these ratings was Semiconductor
Industry published in July 2018.
Cohu, Inc., based in Poway, California, makes semiconductor test
and inspection automation equipment used in the final stages of
semiconductor device production, including handlers, micro-electro
mechanical system (MEMS) test modules, test contactors and thermal
subsystems used by semiconductor manufacturers and test
subcontractors.
Xcerra Corp., based in Norwood, Massachusetts, makes test and
handling capital equipment, interface products, test fixtures and
related services used in the testing in the final stage of
production of semiconductor devices and printed circuit boards.
COHU INC: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issuer credit rating to
Poway, Calif.-based Cohu, Inc. The outlook is stable.
At the same time, S&P assigned its 'BB-' issue-level rating and '3'
recovery rating to the company's proposed $350 million senior
secured term loan B. The '3' recovery rating indicates its
expectation of meaningful (50%-70%; rounded estimate: 55%) recovery
in the event of a payment default.
The rating on Cohu primarily reflects the company's relatively
small revenue base and niche focus within back-end semiconductor
manufacturing test equipment, and S&P Global-adjusted leverage of
about 3x at transaction close. Cohu will gain greater scale
following the acquisition of Xcerra; however, the company's market
share in automated test equipment (the product segment with the
largest total addressable market (TAM) in the back-end space) will
still be limited compared to larger competitors. Credit strengths
include the company's exposure to large automotive and industrial
end markets with solid growth rates, high percentage of recurring
and geographically diverse revenues, and lack of customer
concentration. The rating also reflects our expectation that Cohu
will maintain adequate liquidity and sufficient cash on its balance
sheet post-transaction.
S&P said, "The stable outlook reflects our expectation that Cohu
will benefit from significantly greater revenues and stronger
EBITDA margins following the acquisition of Xcerra, which should
cause leverage to remain below the 3x area over the next 12
months.
"We could lower the rating if Cohu's performance suffers from
operational missteps associated with the integration of Xcerra, or
if declining demand for semi-capital equipment leads to weaker cash
flow and profitability, and leverage sustained above 3x.
"Although unlikely, we could raise the rating if Cohu is able to
significantly expand its operating scale with greater
diversification, materially higher revenues, and higher free
operating cash flow, while sustaining leverage below 2x."
COMPREHENSIVE CANCER SERVICES: 20th Cash Use Order Entered
----------------------------------------------------------
In the Chapter 11 case of Comprehensive Cancer Services Oncology,
P.C., the bankruptcy judge has entered 20 emergency orders
authorizing Comprehensive Cancer Services to use cash collateral.
Judge Michael J. Kaplan on Aug. 29, 2018, entered an order
providing that Comprehensive Cancer Services Oncology, P.C., and
CCS Medical, PLLC, are authorized to use cash collateral to pay the
following companies in respective amounts:
* Banboo HR LLC, for maintenance of a human resource database,
$99.00;
* Office of the U.S. Trustee, for quarterly fees of CCSO,
$12,613;
* Office of the U.S. Trustee, for quarterly fees of CCSM,
$4,875;
* Office of the U.S. Trustee, for quarterly fees of WSEJ, $325;
* Nicolas Paolini, for records moving services, $140, and for
mileage charges, $100.50;
* Nelson Paolino, for records moving services, $240, and for
mileage charges, $32.
Bank of America, N.A., the United States and all creditors holding
liens on or claims against cash collateral, are granted roll-over
or replacement liens or rights of setoffs as security to the same
extent, in the same priority, and with respect to the same assets,
as served as collateral for said creditors' prepetition
indebtedness, to the extent of cash collateral actually used during
the pending of the Chapter 11 case. To the extent that the
replacement liens fail to compensate the secured creditors for the
use of cash collateral, they will have, respectively, an
administrative claim under 11 U.S.C. Sec. 507(b).
A further hearing is scheduled Sept. 5, 2018, at 11:00 a.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/nywb18-10598_Compre_412_Cash_O.pdf
About CCS
Comprehensive Cancer Services Oncology, P.C., and CCS Medical,
PLLC, sought Chapter 11 protection (Bankr. W.D.N.Y. Lead Case No.
18-10598 and 18-10599) on April 2, 2018. In the petitions signed
by Won Sam Yi, president/CEO, CCS estimated at least $50,000 in
assets and $10 million to $50 million in liabilities.
CCS Oncology is a professional corporation operating a practice of
medical and radiological oncology treatment, with offices in
Orchard Park, Frankhauser, Niagra Falls, Kenmore, and Lockport.
CSS Medical is a provider of primary care and specialty medicine
services currently operating at Orchard Park, Delaware Avenue, and
Youngs. CCS Oncology is the sole member of CCS Medical.
Judge Michael J. Kaplan is the case judge.
Arthur G. Baumeister, Jr., Esq., of Baumeister Denz LLP, serves as
the Debtors' counsel.
Mark Schlant has been named the Chapter 11 trustee.
Joseph J. Tomaino of Grassi Healthcare Advisors LLC has been
appointed patient care ombudsman.
CYTORI THERAPEUTICS: Extends Loan 'Interest-Only Period' to Dec 31
------------------------------------------------------------------
Cytori Therapeutics, Inc. has entered into a third amendment to its
existing loan and security agreement, dated May 29, 2015, with
Oxford Finance LLC, as collateral agent, and the lenders including
Oxford. The Third Amendment extends the interest-only period under
the Loan Agreement to Dec. 31, 2018.
The Third Amendment also requires that the Company pay to each
lender, in accordance with its pro rata share of the loans, 75% of
all proceeds received (i) from the issuance and sale of unsecured
subordinated convertible debt, (ii) in connection with a joint
venture, collaboration or other partnering transaction, (iii) in
connection with any licenses, (iv) from dividends (other than
non-cash dividends from wholly owned subsidiaries) and (v) from the
sale of any assets. The Prepayment Requirement does not apply to
proceeds from the sale and issuance of the Company's equity
securities, other than convertible debt. The Prepayment
Requirement will apply until an aggregate principle amount of
$7,000,000 has been paid pursuant to the Prepayment Requirement.
However, if less than $7,000,000 has been paid pursuant to the
Prepayment Requirement on Dec. 31, 2018 then the Company is
required to promptly make additional payments until an aggregate
principal amount of $7,000,000 has been paid.
Additionally, the Third Amendment requires that the Company pay an
amendment fee of $50,000 at the earlier of the prepayment, maturity
or acceleration of the loan.
About Cytori
Based in San Diego, California, Cytori -- http://www.cytori.com/--
is developing, manufacturing, and commercializing
nanoparticle-delivered oncology drugs and autologous
adipose-derived regenerative cell (ADRC) therapies within its
Nanomedicine and Cell Therapy franchises, respectively. Cytori
Nanomedicine is focused on the liposomal encapsulation of
anti-neoplastic chemotherapy agents, which may enable the effective
delivery of the agents to target sites while reducing systemic
toxicity. The Cytori Nanomedicine product pipeline consists of
ATI-0918 pegylated liposomal doxorubicin hydrochloride for breast
cancer, ovarian cancer, multiple myeloma, and Kaposi's sarcoma, a
complex/hybrid generic drug, and ATI-1123 patented
albumin-stabilized pegylated liposomal docetaxel for multiple solid
tumors. Cytori Cell Therapy, prepared within several hours with
the proprietary Celution System and administered to the patient the
same day, has been shown in preclinical and clinical studies to act
principally by improving blood flow, modulating the immune system,
and facilitating wound repair. As a result, Cytori Cell Therapy
may provide benefits across multiple disease states and can be made
available to the physician and patient at the point-of-care.
Cytori reported a net loss of $22.68 million for the year ended
Dec. 31, 2017, compared to a net loss of $22.04 million for the
year ended Dec. 31, 2016. As of June 30, 2018, Cytori had $22.67
million in total assets, $17.92 million in total liabilities and
$4.75 million in total stockholders' equity.
The audit report of the Company's independent registered public
accounting firm BDO USA, LLP, in San Diego, California, covering
the Dec. 31, 2017 consolidated financial statements contains an
explanatory paragraph that states that the Company's recurring
losses from operations, liquidity position, and debt service
requirements raises substantial doubt about its ability to continue
as a going concern.
DEMAR ENERGY: Case Summary & 3 Unsecured Creditors
--------------------------------------------------
Debtor: Demar Energy LLC
9 MacArthur Place; #1901
Santa Ana, CA 92707
Business Description: Demar Energy LLC has 100% ownership of
Nasco Petroleum LLC, a privately held
exploration & production company operating
in California Basin.
Chapter 11 Petition Date: September 4, 2018
Court: United States Bankruptcy Court
Central District of California (Santa Ana)
Case No.: 18-13299
Debtor's Counsel: Kent Salveson, Esq.
KENT SALVESON
2549 East Bluff Drive; B-459
Newport Beach, CA 92660
Tel: 949-291-7393
Email: kent@eexcel.com
Kent1199@Gmail.com
Total Assets: $3,037,000
Total Liabilities: $3,952,833
The petition was signed by Derek LaMarque or Marshall
Diamond-Goldberg, authorized representatives.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at:
http://bankrupt.com/misc/cacb18-13299.pdf
DEMERX INC: Taps Berkowitz Pollack to Provide Forensic Services
---------------------------------------------------------------
DemeRx, Inc. sought and obtained approval from the United States
Bankruptcy Court for the Southern District Florida, Miami Division,
to employ Scott Bouchner and the firm of Berkowitz Pollack Brant to
provide forensic services in connection with the investigation,
analysis, and, to the extent appropriate, the pursuit of litigation
claims that may include:
(a) claims against former officers, directors, managers,
employees, independent contractors, and control persons of the
Debtor;
(b) claims against former professionals of the Debtor,
including accountants, bookkeepers, attorneys, financial brokers,
and investment advisors;
(c) claims against former banks and other financial
institutions that performed or otherwise provided financing,
banking, and other related services to the Debtor;
(d) Chapter 5 turnover and avoidance claims, and objections to
those claims;
(e) insurance recovery claims, including coverage litigation
and bad faith claims; and
(f) any and all other litigation claims as may be directed by
the Debtor.
The firm's present hourly rates are:
Directors $450
Associate Directors $385 - $420
Senior Managers $285 - $395
Managers $235 - $250
Senior Associates $190 - $225
Associates $105 - $150
Paraprofessionals $120 - $200
The firm has agreed that this engagement will be completed in
Phases. Phase I will not exceed $7,500.00. Phase I will involve a
meeting with special counsel and Debtor representatives, review of
available financial records, data and any other documentation to
develop a preliminary understanding of the Debtors financial
systems, books, and records, with the objective of creating a
forensic work plan. Phase II will involve the implementation of
forensic work plan developed in Phase I subject to the Debtor's
approval.
The firm may advance payment of forensic related costs pertaining
to the Litigation Claims, but the bankruptcy estate shall be
responsible for the reimbursement and/or payment of these out of
pocket costs including but not limited to travel, printing,
delivery, photocopy, and other costs.
Pursuant to Section 327(e) of the Bankruptcy Code, the firm attests
it does not hold or represent any interest adverse to the Debtor or
its estate with respect to the matters on which it is to be
employed. The firm attests that is "disinterested" as such term is
defined in 11 U.S.C. Section 101(14) with respect to the matters on
which it is to be employed and has no connection with the Debtor,
its creditors, or any other party in interest.
About DemeRx Inc.
DemeRx, Inc., is a pharmaceutical research and development company
headquartered in Miami, Florida.
DemeRx sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Fla. Case No. 18-14149) on April 9, 2018.
In the petition signed by CEO Deborah C. Mash, Ph.D, the Debtor
disclosed $24.88 million in assets and $2.06 million in
liabilities. Judge Robert A. Mark presides over the case.
The Debtor hired Aaronson Schantz Beiley P.A. as its legal counsel,
and Halloran Farkas & Kittila, LLP, as its special counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of DemeRx, Inc.
DERRICK PUGH: Oct. 1 Plan and Disclosure Statement Hearing
----------------------------------------------------------
Bankruptcy Judge issued an amended order conditionally approving
Derrick Pugh, Inc.'s amended disclosure statement, dated August 24,
2018, in support of its amended plan.
The amended order replaces the previous order entered on August 22,
2018 regarding the Debtor's prior plan and disclosure statement in
its entirety.
Sept. 24, 2018 is fixed as the last day for filing written
acceptances or rejections of the Plan, and the last day for filing
and serving written objections to the conditionally approved
Disclosure Statement and confirmation of the Plan.
Oct. 1, 2018 is fixed for the hearing on final approval of the
conditionally approved Disclosure Statement and for confirmation of
the Plan. Said hearing will be held at 2:00 p.m. in Courtroom 1202,
United States Courthouse, 75 Ted Turner Drive, SW, Atlanta,
Georgia, before the undersigned.
The Troubled Company Reporter previously reported that holders of
Class 20 unsecured claims under the plan will be paid $30,000 in
semi-annual installments beginning on the 6th month anniversary
after the Effective Date and continuing for 6 years for a total of
twelve payments of $2,500.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/ganb18-54668-100.pdf
About Derrick Pugh
Derrick Pugh, Inc., is a trucking and transport company in
Lithonia, Georgia that transports goods, cargo, and other
commercial, agricultural, industrial, and construction products.
Established in 1997, the Company has all kinds of transport
equipment including framed trailers, asphalt tankers, and tandem
dump trucks.
Derrick Pugh filed a Chapter 11 petition (Bankr. N.D. Ga. Case No.
18-54668) on March 19, 2018. In the petition signed by Derrick
Pugh, president, the Debtor disclosed $1.45 million in total assets
and $1.38 million in total liabilities. The case is assigned to
Judge Paul Baisier. Will B. Geer, Esq., at Wiggam & Geer, LLC, is
the Debtor's counsel.
DPW HOLDINGS: Inks $2 Million Securities Purchaes Agreement
-----------------------------------------------------------
DPW Holdings, Inc. has entered into a securities purchase agreement
with an institutional investor providing for the issuance of a
senior secured convertible promissory note with a principal face
amount of $2,000,000, which Convertible Note is convertible into
shares of Class A common stock of the Company at $0.40 per share.
Pursuant to a registration rights agreement entered into with the
Investor on Aug. 31, 2018, the Company agreed to file a
registration statement on Form S-3 to register the Conversion
Shares within 21 days of the Closing Date. The Conversion Shares
will not be issued to the Investor until the Company shall have
obtained approval of the NYSE American and the Company's
stockholders for the foregoing transactions.
The Convertible Note has a principal face amount of $2,000,000 and
bears interest at 10% per annum. Accrued and unpaid interest will
be due and payable on each date on which a conversion is effected
and, with the total principal amount, on Feb. 29, 2019. The
Convertible Note is convertible into Common Stock at $0.40 per
share, subject to adjustment for customary stock splits, stock
dividends, combinations or similar events. The Convertible Note
contains standard and customary events of default including, but
not limited to, failure to make payments when due under the
Convertible Note, failure to comply with certain covenants
contained in the Convertible Note, or bankruptcy or insolvency of
the Company. The Company may prepay the full outstanding principal
and accrued and unpaid interest at any time without penalty.
During the term of the Convertible Note, in the event that the
Company consummates (i) any single public offering or other
proceeds derived from the sale of debt instruments in which the
Company receives gross proceeds of at least $2,000,000 or (ii) a
private or public offering or other financing or capital-raising
transaction of any kind, including the receipt of funds pursuant to
a repayment from a related party of promissory notes issued to such
entity, then the Company will, subject to certain conditions, make
a mandatory prepayment to the Investor an amount in cash calculated
in accordance with the terms set forth in the Convertible Note.
Note Maturity Extension
As previously reported in a Current Report on Form 8-K filed by the
Company, on May 15, 2018, the Company entered into a Securities
Purchase Agreement with the Investor providing for the issuance of
(i) a Senior Secured Convertible Promissory Note with a principal
face amount of $6,000,000, which Convertible Note is, subject to
certain conditions, convertible into 8,000,000 shares of Common
Stock of the Company at $0.75 per share; (ii) a five-year warrant
to purchase 1,111,111 shares of Common Stock at an exercise price
of $1.35; (iii) a five-year warrant to purchase 1,724,138 shares of
Common Stock at an exercise price of $0.87 per share; and (iv)
344,828 shares of Common Stock.
As previously reported in a Current Report on Form 8-K filed by the
Company, on July 2, 2018, the Company and the Investor amended the
SPA pursuant to the terms and subject to the conditions set forth
in an Amendment No. 3 Agreement and Amendment No. 4 Agreement.
On Aug. 31, 2018, in connection with the Agreement, the Company and
the Investor further amended the SPA pursuant to the terms and
subject to the conditions set forth in an Amendment No. 5 Agreement
and an Amendment No. 6 Agreement, which among other things, extends
the maturity date of the First Note, as amended, amends the
amortization payment schedule set forth in the SPA, and amends the
conversion price of the First Note and the Senior Secured
Convertible Promissory Note issued to the Investor on
July 2, 2018 to $0.40.
About DPW Holdings
Headquartered in Fremont, California, DPW Holdings, Inc., formerly
known as Digital Power Corp. -- http://www.DPWHoldings.com/-- is a
diversified holding company that, through its wholly owned
subsidiary, Coolisys Technologies, Inc., is dedicated to providing
technology-based solutions where innovation is the main driver for
mission-critical applications and lifesaving services. Through its
wholly owned subsidiaries and strategic investments, the company
provides mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial,
telecommunications, medical, crypto-mining, and textiles.
DPW Holdings incurred a net loss of $10.89 million in 2017
following a net loss of $1.12 million in 2016. As of June 30,
2018, DPW Holdings had $53.44 million in total assets, $21.90
million in total liabilities and $31.53 million in total
stockholders' equity.
The report from the Company's independent accounting firm Marcum
LLP, in New York, on the consolidated financial statements for the
year ended Dec. 31, 2017, includes an explanatory paragraph stating
that the Company has a significant working capital deficiency, has
incurred significant losses and needs to raise additional funds to
meet its obligations and sustain its operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
DYNALYST CORPORATION: Larry Vick Approved as Counsel
----------------------------------------------------
Dynalyst Corporation sought and obtained approval from the United
States Bankruptcy Court for the Western District of Texas in Austin
to employ Larry A. Vick as its counsel.
Dynalyst requires Larry A. Vick to:
(a) give the debtor legal advice with respect to their power
and duties as debtor-in-possession in the continued operation of
business and management of property;
(b) take necessary action to avoid liens against the debtor's
property under Chapter 11;
(c) prepare on behalf of the debtor as debtor-in-possession
necessary applications, answers, orders, reports and other legal
papers;
(d) perform all other legal services for debtor as may be
necessary.
Larry A. Vick charges $385 an hour for his services. Paralegals at
the firm charge $85 per hour.
Larry A. Vick attests that his firm has no connection with the
debtor, creditors, any other party in interest, their respective
attorneys and accountants, the United States trustee, or any person
employed in the office of the United States trustee. Larry A. Vick
represents no interest adverse to debtor or the estate in the
matters upon which he is to be engaged.
About Dynalyst
Dynalyst Corporation -- http://www.dynalyst.com/-- is a
manufacturing company that produces custom ATE Interface Printed
Circuit Boards (PCBs), fundamental to the testing of integrated
circuits. It was founded in early 2002 and is headquartered in
Taylor, Texas.
Dynalyst sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. Tex. Case No. 18-10860) on July 2, 2018. In the
petition signed by Craig T. Takacs, president, the Debtor estimated
assets of $1 million to $10 million and liabilities of $1 million
to $10 million. Judge Tony M. Davis presides over the case.
EDEN HOME: Rick Reed Approved as Auditor
----------------------------------------
Eden Home, Inc. sought and obtained approval from the United States
Bankruptcy Court for the Western District of Texas, San Antonio
Division, to employ Rick C. Reed & Company, PLLC as the Debtor's
auditor and tax preparer.
Reed will perform these services:
(a) complete auditing services of the Debtor's financials for
periods ending December 31, 2017 and 2016,
(b) prepare the Debtor's IRS Form 990 for the year ended
December 31, 2017, and
(c) provide monthly updates of the Debtor's (i) depreciation
schedule, and (ii) life lease contract amortization schedule.
The firm's Ken Ward will lead the engagement.
Reed will charge the Debtor $37,500 for its audit of the Debtor's
2017 and 2016 financials. Based on previous invoices, the Debtor
anticipates it will owe approximately $600 per month for Reed's
updates to both of the Debtor's depreciation and life lease
contract amortization schedules.
Reed attests that the firm has no connection with the Debtor, its
creditors, parties-in-interest, or affiliates, or attorneys or
special advisors for any of them, the United States Trustee, or any
person employed in the Office of the United States Trustee. Reed
does not represent or hold any interest adverse to the Debtor, its
estate, creditors, or affiliates in the matter upon which the firm
is to be engaged, and is a "disinterested person" within the
meaning of section 101(14) of the Bankruptcy Code.
Reed can be reached at:
Ken Ward
Partner
Rick C. Reed & Company, PLLC
352 Landa Street
New Braunfels, TX 78130
Phone: 830-625-8068
Fax: 830-625-8225
Email: kcward@satx.rr.com
About Eden Home
Located in New Braunfels, Texas, Eden Home, Inc., d/b/a EdenHill
Communities -- https://www.edenhill.org/ -- is a not-for-profit,
faith-based organization that provides independent living,
affordable housing, assisted living, skilled nursing and
rehabilitation, long-term care and memory care services. The
EdenHill Communities Transportation Department provides ADA
services in support of seniors and individuals with disabilities.
Eden Home, Inc., filed a Chapter 11 petition (Bankr. W.D. Tex. Case
No. 18-50608) on March 16, 2018. In the petition signed by
Laurence P. Dahl, CEO and executive director, the Debtor estimated
assets and liabilities of $10 million to $50 million.
Judge Craig A. Gargotta is the case judge.
Dykema Cox Smith is the Debtor's counsel; Langley & Banack, and
Gravely & Pearson, L.L.P., as special counsels; Cushman & Wakefield
as real estate broker. Cushman & Wakefield has entered into a
Co-Broker Agreement with CF Commercial Brokerage, LLC d/b/a San
Antonio Commercial Advisors.
On March 26, 2018, the U.S. Trustee appointed Susan N. Goodman as
the patient care ombudsman in the case.
An official committee of unsecured resident creditors was appointed
on May 30, 2018. The committee retained Martin & Drought, P.C. as
counsel. Eden Home, Inc. hired BKD, LLP as its accountant.
ENCINO ACQUISITION: Fitch Assigns B+ LT IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has assigned a first-time, long-term Issuer Default
Rating (IDR) of 'B+' to Encino Acquisition Partners Holdings, LLC
and Encino Acquisition Partners, LLC (EAP). The Rating Outlook is
Stable. Fitch has also assigned a 'BB-'/'RR3' rating to the
company's senior secured second lien term loan.
Encino's IDR reflects the company's sizable Utica position that
will allow for years of development, competitive unit economics,
the ability to cost effectively transport gas out of basin to
advantaged price points, expected leverage of below 2.0x and
neutral to positive cash flow profile. These considerations are
offset by the company's lack of historical operations of the Utica
position and heightened potential for margin compression given its
exposure to natural gas supply-demand fundamentals.
KEY RATING DRIVERS
Sizable Utica Footprint: Encino has agreed to acquire a large wet
gas asset base in the Utica basin, with over 900,000 net acres,
300,000 of which the company considers to be core. The acreage is
spread across the Utica shale, which provides optionality in
drilling plans, allowing EAP to drill dry gas and wet gas wells
depending on economics or pipeline commitments and constraints. EAP
is expecting to run three drilling rigs in 2019, growing production
up to nearly 900mmcfe/d of production, consistent with current
pipeline constraints, by 2020. Management has identified around
2,000 drilling locations, which can support stable production for
roughly 25 years. Fitch believes the core acreage exhibits
competitive unit economics, albeit lower return than Appalachia
peers' dry gas Marcellus wells, and sees the growth to 900mmcfe/d
as achievable. A further increase in production beyond 900mmcfe/d
seems unlikely given management's medium-term focus on filling
pipeline commitments, well returns, and FCF generation, although a
shift in strategy could be seen in a supportive realized pricing
environment.
Strong Firm Transportation Agreements: EAP is inheriting favorable
and long-dated firm transportation agreements for natural gas
takeaway, a key issue in the Utica and Marcellus basins. EAP has
sufficient takeaway capacity for current volumes to areas that have
had advantaged pricing versus in basin sales. Fitch expects EAP to
increase production when Enbridge's NEXUS pipeline comes online.
Competitive Costs: EAP has low lease operating expenses (LOE), with
LOE averaging around $0.12-$0.15/mcfe produced since 2016. This
cost compares favorably with Marcellus peers, which have averaged
LOE from $0.25-$0.30/mcfe. Total cash netbacks, including an
estimated $0.16/mcfe of SG&A costs and excluding interest costs was
$2.05/mcfe, 86% of EAP's realized price, versus an average of peers
at $1.43/mcfe, 72% of the average realized price. Development costs
are consistent with Utica peer levels at $0.70/mcfe but
above-average development costs in the Marcellus, which is around
$0.37-$0.43/mcfe. Fitch believes there is not a lot of room for
further cost reduction, on a mcfe basis, at Encino, especially on
the operating side. Efficiency improvements may be had during the
development phase if Encino goes to longer laterals (modelling
12,000 foot laterals; operators have gone as far as 17,000 feet)
and increases the number of wells on a pad. Fitch believes the
highest return opportunity would be an improvement in well
productivity that results in higher IP rates and EURs.
Neutral Moving to Positive Cash Flows: Fitch is expecting around
neutral FCF in 2019 and 2020 through the company's growth phase
before FCF turns positive in 2021 when Encino throttles back growth
spending and maintains a relatively flat production profile. The
forecast excess cash flow in 2021 is currently expected to be
allocated toward repayment of revolver borrowings. Fitch does not
forecast any dividends until full repayment of the revolver.
Strong, Improving Credit Metrics: EAP is expected to have strong
credit metrics at the close of the acquisition, with debt/EBITDA
below 2.0x based on LTM EBITDA. EAP is targeting to manage leverage
below 2.0x, with leverage decreasing throughout the forecast via
EBITDA expansion and cash flow linked revolver repayments.
EBITDA/interest coverage is also expected to be strong, ranging
from around 8x to over 11x throughout the forecast.
Seasoned Management, Credible Sponsor: While Encino is a newly
formed company without an operating history on the assets,
Chesapeake Energy Corporation has operated the assets for several
years, and the Utica operations team from Chesapeake will be moved
to Encino. The management team consists of industry veterans with
relatively deep U.S. onshore unconventional operational, as well as
oil & gas financial, experience. Likewise the sponsor, Canada
Pension Plan Investment Board (CPPIB), has a history of investing
in oil and gas companies and has over CAD$366 billion in assets.
CPPIB is a long-term investor and is expected to be supportive of
returns-based growth, including in-basin and out-of-basin
acquisitions, and a relatively conservative financial policy. Fitch
would likely view in-basin acquisitions constructively provided
proper capitalization, but near-term, out-of-basin acquisitions may
be concerning as they could limit operational focus.
Favorable Hedging Policy: As part of the transaction, Encino will
have swaps at $3.00/mmbtu for the remainder of 2018 on 100%
producing gas, as well as swaps representing 80% of 2019 and 2020
projected proved developed producing (PDP) gas, reducing price risk
to the credit. Encino intends to have a two to three year rolling
hedging program, ultimately hedging up to 80% of total production.
EAP plans to add WTI swaps of up to 80% of PDP around the closing
of the transaction for 2019 and 2020. Fitch views the current plan
of hedging favorably as it reduces cash flow volatility at
favorable rates of return for the company.
DERIVATION SUMMARY
Encino Acquisition Partners Holdings, LLC's rating reflects the
company's size, competitive unit economics, relatively low
leverage, and expected neutral to positive cash flows. EAP is
smaller than other gas-oriented peers at around 632mmcfe/d produced
compared with EQT Corporation (BBB-/Stable) at almost 4.0bcfe/d of
production, Range Resources Corporation (NR) at 2.2bcfe/d, Antero
Resources Corporation (BBB-/Stable) at 2.5bcfe/d and Southwestern
Energy Company at 2.6bcfe/d at June 30, 2018. EAP is larger than
Haynesville shale producer Comstock Resources (B-/Positive) at
245mmcfe/d, DJ Basin, oil weighted peer Extraction Oil & Gas, Inc.
(B+/Stable) at 73.6mboe/d or 441.4mmcfe/d, and slightly smaller
than SM Energy Company (B+/Stable) at 115.2mboe/d or 691.2 mmcfe/d.
Fitch expects EAP to maintain leverage similar to gas-oriented
peers (EQT, Antero, Southwestern, Comstock, Range), all of which
are at or below, or are expected by Fitch to be at or below 2.0x
levered longer term, and Fitch views the target of at or below 2.0x
favorably and achievable. Oil weighted peers are also expected to
have low leverage, with Extraction targeting 1.5x net debt/EBITDA
and SM Energy targeting 2.5x by year end 2019. FCF is expected to
be neutral turning positive in 2021 for EAP, similar to many peers.
Cash netbacks, excluding interest costs, put EAP on the higher end
of gas-oriented peers. Cash netback for the second quarter was
$2.05/mcfe produced, which compares favorably with a range of
$1.08-$1.85/mcfe. Development costs of about $0.70/mcfe are higher
than dry gas Marcellus peers that are around $0.37/mcfe to
$0.43/mcfe, but in line with other liquids-weighted Utica peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Base case oil price deck of $60/bbl in 2019 and $55/bbl
thereafter;
-- Base case Henry Hub natural gas price deck of $3.00/mcf from
2019 and thereafter;
-- Production increase to about 740mmcfe/d in 2019, followed by
growth to around 880mmcfe/d in 2020 and 940mmcfe/d in 2021;
-- Capexof $410 million, $525 million and $400 million in 2019,
2020 and 2021, respectively;
-- Company drills more gas-focused wells near-term given the more
attractive returns profile and transportation arrangements;
-- FCF in 2021 is used to reduce revolver borrowings.
Fitch's recovery looks at both a going concern approach and an
asset valuation approach using previous market transactions and SEC
reserve numbers as markers for an asset valuation.
For a going concern approach, Fitch used an exit EBITDA of $322
million for the company. The EBITDA estimate takes into account a
prolonged commodity price downturn ($52.5/WTI and $2.25/mcf gas in
2018 moving toward $42.5/WTI and $2.0/mcf gas in 2019 and $45.0/WTI
and $2.5/mcf gas in 2020).Production is assumed to remain
relatively flat given the competitive cost structure and
operational momentum considerations. The EBITDA multiple of 4x was
chosen to reflect the potential for a lower gas margin and limited
pipeline capacity, which ultimately limits economic growth
potential.
For an asset valuation approach, Fitch looked at recent sales and
PV-10 estimates. Fitch discounted the values given its hypothetical
bankruptcy scenario and the potential for margin compression. An
acreage valuation estimate of about $1.24 billion was chosen, which
represents 225,000 core acres (about 75% current core acreage) to
account for a potential reduction in economics being sold at
$5,500/acre. The PV-10 estimate of the company at $2.2 billion was
deemed to be an upper bound given the current versus potential exit
commodity price environment.
The going concern estimate of $1.288 billion was chosen as the
greater value of the going concern or asset liquidation value.
After a 10% discount for administrative claims, approximately $1.16
billion is available to creditors. The borrowing base revolver is
assumed 80% drawn because of semi-annual redeterminations that
would likely reduce the amount available to Encino. The revolver is
expected to recover fully. The second lien term loan receives the
remaining value and recovers at an 'RR3' level.
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
-- Increased size and scale to around 900mmcfe/d or an increase
in higher margin liquids production;
-- Demonstrated commitment to management's capital allocation
priorities to grow within pipeline capacity and cash flows with FCF
used to pay down revolver borrowings;
-- Maintenance of mid-cycle debt/EBITDA at or below 2.5x;
-- Track record of successful M&A or cost effective development
resulting in enhanced full cycle returns.
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
-- Loss of operational momentum resulting in production declines
below 600mmcfe/d;
-- Increase in debt/EBITDA above 3.0x;
-- Sustained period of negative FCF outside of planned growth
phase;
-- Reduction in economic drilling locations due to lower prices
or asset quality;
-- M&A activity inconsistent with operational or financial
strategy.
LIQUIDITY
Adequate Liquidity: Fitch expects Encino to have adequate
liquidity, backstopped by a $1 billion reserved based credit
facility due 2023. Fitch expects about $525 million in available
borrowings at close of the transaction after accounting for
borrowings used to fund the Utica purchase and letters of credit
expected to be used for midstream agreements.
Long-Dated, Single Maturity: Encino's second lien term loan is due
in 2025.
FULL LIST OF RATING ACTIONS
Fitch has assigned the following ratings:
Encino Acquisition Partners Holdings, LLC
-- Long-term IDR 'B+';
-- Second Lien Term Loan 'BB-'/'RR3'.
Encino Acquisition Partners, LLC
-- Long-term IDR 'B+'.
The Rating Outlook is Stable.
EPICUREAN LLC: Seeks Approval of IRS Cash Collateral Agreement
--------------------------------------------------------------
The Epicurean, LLC, seeks approval from the U.S. Bankruptcy Court
for the District of South Carolina of its agreement with the United
States of America Internal Revenue Service providing for use of
cash collateral subject to certain adequate protection payments.
The Debtor proposes to use the monies in its possession and control
and generated from the operation of its business, which is
absolutely necessary for the continued operation of its business.
The only entity asserting a lien in cash collateral is the United
States of America Internal Revenue Service in the asserted amount
of $33,264.24.
As adequate protection for the use of Cash Collateral, the Debtor
agrees to pay the IRS the amount of $555 on each month, until such
time as the Debtor's Plan of Reorganization is confirmed, a chapter
11 trustee is appointed, or this case is dismissed or converted to
a proceeding under another chapter of the Bankruptcy Code.
In addition to the adequate protection payments, the Debtor will
also:
(a) make the required Federal Tax Deposits within three
business days of the payment of wages;
(b) timely pay all post-petition federal tax liabilities.
Payments for any undeposited tax liabilities are to be made by
certified or cashier???s check and mailed to IRS, on or before the
due date of the applicable tax return;
(c) timely file all required federal tax returns that come due
during the pendency of the agreement. Such returns will be mailed
to the IRS to the following address: IRS Insolvency Unit, 1835
Assembly St., MDP 39, Columbia, SC 29201; and
(d) immediately file all delinquent federal tax returns.
A full-text copy of the Cash Collateral Motion is available at
http://bankrupt.com/misc/scb18-01820-24.pdf
About The Epicurean
The Epicurean is a restaurant and event space doing business under
the name of Al Amir and conducting its operations at 1734 Main
Street, Columbia, South Carolina. The restaurant serves authentic
fresh Mediterranean foods.
The Epicurean, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
D.S.C. Case No. 18-01820) on April 10, 2018. In the petition
signed by its sole member, Melissa C. Peterson, the Debtor
estimated assets of less than $50,000 and debts of less than
$500,000. G. William McCarthy, Esq., at McCarthy Reynolds & Penn,
LLC, serves as the Debtor's counsel.
ERI AMERICA: Judge Signs Third Interim Cash Collateral Order
------------------------------------------------------------
The Hon. Donald R. Cassling of the U.S. Bankruptcy Court for the
Northern District of Illinois has signed a third order authorizing
ERI America, Inc., to use cash collateral on an interim basis.
The terms and conditions of the Second Cash Collateral Order will
continue through Aug. 31, 2018.
The Debtor may use cash collateral to pay those items delineated in
the budget, with a variance from actual-to-projected weekly
disbursements not to exceed 10% on a cumulative basis.
The Lienholders (a) The Illinois Department of Revenue, (b) the
Internal Revenue Service, (c) Birla Precision Technologies, Inc.
and (d) Mapal, Inc. have asserted secured claims against some or
all of the Debtor's assets, including the Debtor's cash and
accounts receivable pursuant to tax liens or pending Citation to
Discover Assets.
The Lienholders are granted replacement liens upon and in Debtor's
post-petition cash and accounts receivable in the same priority as
the Lienholders' existing, prepetition liens (to the extent valid),
and in no event to exceed the type, kind, priority and amount, if
any, of their liens which existed on the Petition Date.
The Debtor is authorized to make monthly adequate protection
payments to the Lienholders, consisting of 9% interest, retroactive
to the Petition Date as follows:
Illinois Department of Revenue $79
Internal Revenue Service $865
Birla Precision Technologies $1,153
Mapal Inc $771
A full-text copy of the Third Cash Collateral Order is available
at
http://bankrupt.com/misc/ilnb18-11597-38.pdf
About ERI America Inc.
ERI America, Inc. -- http://www.eri-america.com/-- offers a broad
range of tooling and tool holding solutions from standards to
specials. It is headquartered in Lake Zurich, Illinois.
ERI America sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ill. Case No. 18-11597) on April 20, 2018. In
the petition signed by Frank J. Fullone, president, the Debtor
estimated assets of less than $500,000 and liabilities of $1
million to $10 million. Judge Donald R. Cassling presides over the
case. The Debtor employed Cohen & Krol as its legal counsel.
F & F SPECIALTY: Seeks Authorization to Use KeyBank Cash Collateral
-------------------------------------------------------------------
F & F Specialty Coffee asks the U.S. Bankruptcy Court for the
Western District of Pennsylvania to authorize its use of cash
collateral.
KeyBank asserts a lien on certain property of the Debtor by way of
two secured SBA loans to First Niagara Bank, N.A., which was
subsequently acquired by KeyBank. The original balances of the
loans from KeyBank to the Debtor were $50,000 and $825,000. The
Debtor believes that KeyBank has a valid and perfected priority
lien and security interest in its cash collateral.
The Debtor proposes to use all proceeds, funds and accounts
constituting its cash collateral and incoming cash collateral as it
arrives on the condition that the Debtor begins adequate protection
payments to KeyBank consistent with the Chapter 11 Plan to be filed
with the Court.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/pawb18-22699-21.pdf
About F & F Specialty Coffee
F & F Specialty Coffee, which conducts business under the name
Fortunes Gourmet Coffee, is a specialty food store offering a
selection of crafted blends and artisan roasted coffees. It has
been providing coffee to its wholesale customers for over 60
years.
F & F Specialty Coffee sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Case No. 18-22699) on July 2,
2018. In the petition signed by Fred M. Smallhover, II, owner, the
Debtor estimated assets of $1 million to $10 million and
liabilities of $1 million to $10 million. Judge Gregory L.
Taddonio presides over the case. The Debtor tapped Thompson Law
Group, P.C., as its legal counsel.
FAIRMONT PARTNERS: Final Cash Collateral Order Entered
------------------------------------------------------
The Hon. Clifton R. Jessup, Jr., of the U.S. Bankruptcy Court for
the Northern District of Alabama has entered a final order
authorizing Fairmont Partners LLC's use of cash collateral which is
subject to the interests of Access Point Financial, Inc. (APF).
The Debtor will segregate and separate any and all income,
receipts, receivables and all forms of cash collateral relating to
Debtor in Debtor's post-petition bank account, and will be
permitted to utilize the cash collateral solely for the Debtor's
expenses and operations in accordance with the Budget.
APF alleges that it maintains a first priority perfected security
interest in the cash collateral. APF loaned to the Debtor $3.5
million under the terms of the Real Property Note and the full $5
million under the terms of the Equipment Note. To secure the
obligations owing under the Real Property Note and the Equipment
Note, and as a condition to APF's willingness to enter into such
transactions, the Debtor executed a Mortgage and Security
Agreement. In addition, the Debtor assigned all of its rights and
interest in, inter alia, all leases, tenant contracts, rental
agreements, franchise agreements, and other contracts and licenses
then or thereafter affecting the Real Property, or any part
thereof, including those acquired subsequent to the execution of
the Mortgage.
APF is granted a first-priority lien and security interest in the
DIP Account which is automatically deemed perfected upon entry of
the Final Order. The Debtor will provide to APF copies of all
checks or electronic funds transfers used to pay expenses from the
DIP Account on or before the tenth day of each month for the
immediately preceding month.
APF is granted continuing liens and security interests under the
terms of the Loan Documents in the pre-petition collateral and
replacement liens in all collateral generated after the Petition
Date. The Replacement Liens will attach to the Pre-petition
Collateral and Post-Petition Collateral to the same extent and with
the same validity and priority as APF did pre-petition.
In addition, the Debtor will pay to APF $50,000 per month. The
Adequate Protection Payments will commence on August 31, 2018 and
continue on the same date of each month thereafter. The Debtor has
included payment of the Adequate Protection Payments as part of the
Budget.
As further adequate protection for the use of the cash collateral,
by August 20, 2018, the Debtor will file a motion to sell
substantially all of its assets pursuant to Section 363(f). The
Sale Motion will provide, among other things, that (i) APF will be
the stalking horse bidder with an initial credit bid of $9,250,000,
(ii) subsequent bids will be made of no less than $50,000 per bid,
(iii) APF will have the right to credit bid in accordance with
section 363(k), and (iv) such sale will be consummated within 120
days of the date of the Final Order.
The Debtor is also required to: (a) pay all utility bills on the
Collateral and maintain and keep the collateral in good condition
and pay all personnel; (b) timely provide to APF and its counsel
all financial reports, books and records as required by the Loan
Documents; and (c) provide APF and its agents access to the
Collateral subject to the Mortgage. APF shall provide reasonable
advance notice of any such access to the Collateral to Debtor.
A full-text copy of the Final Order is available at
http://bankrupt.com/misc/alnb18-82014-54.pdf
About Fairmont Partners
Fairmont Partners, LLC, is a privately held company in Sheffield,
Alabama operating in the hotel and lodging industry.
Fairmont Partners filed for bankruptcy protection (Banrk. N.D. Ala.
Case No. 18-82014) on July 10, 2018. In the petition signed by
Willis Pumphrey, Jr., managing member, the Debtor estimated up to
$50,000 in total assets and $10 million to $50 million in total
liabilities. The Hon. Clifton R. Jessup presides over the case.
Maples Law Firm, PC, is the Debtor's counsel.
FALLS EVENT CENTER: Allowed to Use Cash Collateral on Final Basis
-----------------------------------------------------------------
The Hon. R. Kimball Mosier of the United States Bankruptcy Court
for the District of Utah has entered a final order authorizing The
Falls Event Center LLC's use of cash collateral.
To the extent such cash collateral has not already been used and
spent pursuant to the Court's Interim Order, entered July 20, 2018,
the Debtor is authorized to use and spend cash collateral on a
final basis and in the ordinary course of its business or as
otherwise authorized by the Court.
GTR Source LLC, Richmond Capital Group LLC, and/or Richmond Funding
(the "Potential Claimants"), all may claim a lien on or other
interest in the Cash Collateral.
The Debtor, the Unsecured Creditors' Committee and all other
parties-in-interest will have the right to investigate the alleged
liens and claims of the Potential Claimants, and any other relevant
matters involving the Potential Claimants, and to take such actions
with respect to the liens and claims of the Potential Claimants as
may be necessary or appropriate.
The Potential Claimants and any other party (if any) holding a
valid, perfected and unavoidable lien on or other interest in cash
collateral are granted valid, automatically perfected postpetition
replacement liens, pursuant to 11 U.S.C. Section 361, on the
Debtor's post-petition cash and accounts receivable. The
replacement liens granted will be pari passu with one another, and
will have the same validity, extent, priority and avoidability as
any security interests and liens that the Potential Claimants and
any other party (if any) held against the Cash Collateral as of the
Petition Date.
A full-text copy of the Final Order is available at
http://bankrupt.com/misc/utb18-25116-34.pdf
About The Falls Event Center
The Falls Event Center LLC -- http://www.thefallseventcenter.com/
and http://www.fallsweddings.com/-- operates as an event
center/venue for hosting conferences, company annual holiday
parties, family reunions, high school proms, birthday parties,
weddings and more. The Falls Event Center has locations in
Gilbert, AZ; Elk Grove, CA; Fresno, CA; Roseville, CA; Littleton,
CO; McMinnville, OR; Salt Lake City, UT; and St. George, UT. The
Company is an affiliate of The Falls at Elk Grove, LLC, which
sought bankruptcy protection on May 30, 2018 (Bankr. E.D. Calif.
Case No. 18-23387).
The Falls Event Center LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Utah Case No. 18-25116) on July 11,
2018. The petition was signed by Brooks Pickering, manager. At
the time of the filing, the Debtor estimated assets of $50,000,001
to $100 million and liabilities of $100,000,001 to $500 million.
Judge R. Kimball Mosier presides over the case.
The Office of the U.S. Trustee on July 27, 2018, appointed 10
creditors to serve on an official committee of unsecured creditors.
FUELD FILMS: Moves to Use Cash Collateral
-----------------------------------------
Film production company Fueld Films, Inc., is asking the U.S.
Bankruptcy Court for the District of Utah approval to use cash
collateral.
Kent L. Christiansen, Esq., at Sage Law Partners, PLLC, explains
that the Debtor's bankruptcy was precipitated by a series of events
that resulted in a decrease in revenue and increase in certain
expenses. Over the course of approximately the last two years,
various "film shoot projects" that the Debtor would have expected
to be awarded to the Debtor have gone to much larger shops in the
marketplace. The Debtor has also attempted to expand its
enterprise by leasing new office space, purchasing new equipment,
and attempting to recruit new production and direction providers.
These circumstances necessitate Chapter 11 relief.
As of the Petition Date, the creditors holding security interests
in the assets of the Debtor that constitute cash collateral,
include: Regions Bank - SBA holding a secured claim of $190,000;
Celtic Bank holding a claim in the approximate amount of $96,000;
and Credibility holding a claim of $88,625.
The Company now seeks authority from the Court to use cash
collateral of Regions Bank-SBA, Celtic Bank (On Deck Business Loan)
and Credibility Capital.
The Debtor generates cash from operations related to the production
of "film shoot projects" (such as commercial media and internet
advertising. The Debtor believes that it has a viable business and
can be made profitable for the benefit of all creditors through the
company's reorganization and uninterrupted business operations.
The company proposes that the secured creditors be given adequate
protection in the form of replacement liens and payment of weekly
interest payments at the rate of 5%.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/utb18_24652_21_Fueld_Films_Cash_M.pdf
About Fueld Films
Founded in 2001, Fueld Films Inc. is a film production company that
makes everything from films to commercial advertising spots. Its
business is managed and operated from Utah, with film production
based out of Austin, Texas.
Fueld Films Inc. filed a Chapter 11 petition (Bankr. D. Utah Case
No. 18-24652) on June 22, 2018, estimating $100,001 to $500,000 in
assets and $500,001 to $1 million in liabilities. Kent L.
Christiansen, Esq., at Sage Law Partners, PLLC, is the Debtor's
counsel.
GEORGIA ANESTHESIA: To Pay Unsecs. $40K in Quarterly Distributions
------------------------------------------------------------------
Northeast Georgia Anesthesia Services, Inc., 24 Amherst, LLC and
Holladay Holdings, LLC filed a first amended disclosure statement
for their joint plan of reorganization dated August 28, 2018.
Debtors' Plan provides general unsecured creditors and landlords
holding unsecured claims related to Northeast, which are not in and
have not elected to participate in the Convenience Classes, with
payments totaling $40,000 to be made pro rata to holders of claims
in Class 5 and Class 7, via a series of quarterly distributions.
General unsecured creditors of Amherst (Class 1) and HHL (Class 3)
will be paid in full via a series of quarterly distributions.
General unsecured creditors holding claims of $500 or less, and
unsecured creditors electing to reduce their claims to $500 in
Class 2, 4, and 6, will receive a one-time distribution equal to
10% of their respective claims.
The cash distributions contemplated by the Plan will be funded by
cash generated in the operation of the Reorganized Debtors'
businesses, the collections of aged accounts receivable, the sale
of excess property, and an initial capital infusion equal to $5,000
by Dr. D. Janene Holladay, to purchase the equity interests in
Northeast. Dr. Holladay is also waiving nearly $10,000 in
compensation claims, for a total value of $15,000 to the Estate.
A full-text copy of the First Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/ganb17-22189-278.pdf
A copy of the original Disclosure Statement from PacerMonitor.com
is available at https://tinyurl.com/ya8waksv at no charge.
About 24 Amherst
24 Amherst, LLC, is a real estate company based in Winder, Georgia.
Northeast Georgia Anesthesia Services Inc. is a medical group
specializing in interventional pain management, anesthesiology,
pain management, addiction medicine, physical medicine and
rehabilitation.
Holladay Holdings owns three pieces of commercial real property,
located at these addresses: (1) 1503 Professional Court, Dalton,
Georgia ("Dalton Property"); (2) 1620 Prince Avenue, Athens,
Georgia ("Athens Property"); and (3) 1638 Prince Avenue, Athens,
Georgia ("HQ Property"). Holladay Holdings rents the Dalton and
Athens Property to Northeast, which operates a pain and recovery
practice in each of the properties. Holladay Holdings rents the HQ
Property to Northeast, where Northeast's headquarters is presently
located.
24 Amherst, LLC and its affiliates sought Chapter 11 protection
(Bankr. N.D. Ga. Case No. 17-22188) on Nov. 14, 2017. Janene D.
Holladay, its member, signed the petitions.
The Hon. James R. Sacca presides over these cases.
Anna Mari Humnicky, Esq., at Cohen Pollock Merlin & Small, P.C., is
the Debtor's counsel. J. Allen Sermour, CPA PC, serves as the
Debtors' accountant.
GETTY IMAGES: S&P Puts 'CCC' ICR on CreditWatch Developing
----------------------------------------------------------
S&P Global Ratings placed its 'CCC' issuer credit rating on Getty
Images Inc. on CreditWatch with developing implications.
S&P is also placing its 'CCC' issue-level rating on the company's
senior secured debt and 'CC' issue-level ratings on the company's
senior unsecured debt on CreditWatch with developing implications.
The action follows the announcement earlier that the Getty family,
which currently has slightly less than 49% equity stake in the
company has entered into an agreement with its controlling
shareholders and financial sponsors The Carlyle Group L.P. to
purchase their 51% stake in the company. In addition, the company
announced its intention to refinance its debt.
The CreditWatch Developing placement reflects the uncertainty of
the likelihood of success, cost, and timing of Getty Images'
refinancing effort, which if successful would push out debt
maturities and give the company breathing room to continue to turn
around and grow its business. If the refinancing is successful S&P
could raise its issuer credit rating on Getty Images by one or more
notches based on its estimate of free cash flow generation for the
company, and its ability to reduce leverage and reinvest in the
business over time.
If the refinancing is not successful, it would increase the
probability that the company would pursue debt restructuring
efforts or bankruptcy to address its debt maturities and high
annual fixed charges. In such a scenario, S&P could lower the
ratings to reflect a higher likelihood of default within the
following six months.
S&P expects to resolve the CreditWatch placement following the
conclusion of the debt-refinancing process, likely in the next 90
days.
HARMON TIRE: Seek Authority to Use MSBank Cash Collateral
---------------------------------------------------------
Harmon Tire, Inc. and M. Albert Harmon, with the consent of their
senior secured lender, Machias Savings Bank, seek authority from
the U.S. Bankruptcy Court for the District of Maine to use cash
collateral.
The Debtors intend to use cash collateral in order to fund
essential expenses and avoid immediate and irreparable harm to
their estates, in accordance with the agreed budget.
Prior to the Petition Date, the Debtors entered into 5 business
loan agreements with MSBank, as well as two consumer loan
agreements. The total indebtedness owed under the MSBank Loans as
of July 31, 2018 was approximately $2,109,677. As of the Petition
Date, the Debtors were in default of the MSBank Loans, and such
loans are cross-collateralized. The Debtors and MSBank Loans have
agreed to a consensual restructuring of the MSBank Loans through a
joint chapter 11 plan pursuant to the Restructuring Support
Agreement.
Under the RSA, MSBank agreed to support a joint chapter 11 plan
that would, among other things, lower interest rates on the 5
business loans to 4% and adjust the payment term and amortization
period on these loans.
The Debtors acknowledge that all post-petition cash collateral
constitutes proceeds, products, offspring, or products of MSBank's
pre-petition cash collateral, and thus MSBank's lien on all
post-petition cash collateral continues under section 552(b) of the
Bankruptcy Code.
MSBank will be granted replacement liens in all cash collateral of
the Debtors acquired after the Petition Date and in the direct and
indirect proceeds thereof. The Replacement Liens will have the same
validity, perfection and priority as the prepetition liens of
MSBank in the cash collateral of the Debtors as of the Petition
Date. In addition, in the event the Replacement Liens are
insufficient to adequately protect MSBank, MSBank is entitled to a
post-petition administrative expense claims against the Debtors'
estates pursuant to section 507(b) of the Bankruptcy Code.
The Debtors will only use cash collateral pending the Final Hearing
for the purposes and in the amounts set forth in the Budget,
including certain adequate protection payments that will be made to
MSBank, as set forth in more detail in the RSA. The Debtors will
provide MSBank and the Office of the United States Trustee with
weekly reporting comparing the projections set forth in the Budget
with the Debtors' actual results.
In addition, the Debtors believe that Sullivan Tire Co., Inc., and
First National Bank, may assert an interest in post-petition cash
collateral of the Company, which interest in cash collateral is
subordinate to MSBank. The Company acknowledges that Sullivan's and
the First National Bank's liens continue under section 552(b) and
the Company is willing to grant Sullivan and the First National
Bank replacement liens pursuant to sections 361(2) and 363(e) with
the same validity , perfection, and priority as their respective
prepetition liens in cash collateral of the Company.
A full-text copy of the Debtors' Motion is available at
http://bankrupt.com/misc/meb18-10445-10.pdf
About Harmon Tire Inc.
Harmon Tire, Inc. provides auto and tire repair services in
Ellsworth, Maine.
Harmon Tire sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Maine Case No. 18-10445) on Aug. 1, 2018. In the
petition signed by Milton Albert Harmon, Jr., president, the Debtor
estimated assets of less than $500,000 and liabilities of $1
million to $10 million. Judge Michael A. Fagone presides over the
case. Molleur Law Office is the Debtor's legal counsel.
INTEGRAL INVESTMENTS: Seeks Permission to Use Cash Collateral
-------------------------------------------------------------
Integral Investments Prospect, LLC, asks the U.S. Bankruptcy Court
for the Eastern District of Wisconsin to permit it to use certain
cash collateral, its rents.
Park Bank claims an interest in the Debtor's rents by virtue of a
first mortgage lien on the Debtor's property on Prospect Avenue.
Park Bank also holds a second mortgage on said property.
The Debtor's counsel has been in contact with counsel for Park Bank
and offered to make adequate protection payments plus a tax escrow
payment, but Park Bank has refused to permit the Debtor to use its
cash collateral under any circumstances.
The Debtor claims that Park Bank has refused to allow it to use its
cash collateral to pay the July 2018 installment to the City of
Milwaukee for the 2017 real property taxes (which is $1,038.57).
The Debtor believes that Park Bank has converted its escrow account
($1,838.73) to its own use.
The Debtor asserts that the fair market value of Park Bank's
collateral far exceeds the amount due on Park Bank on its first
mortgage (Park Bank has a non-accruing junior mortgage of
$200,000).
The Debtor was prepared to make adequate protection payments of
principal and interest of $5,345.24 which is the exact same payment
that Debtor was making prior to the filing of the Petition. At the
hearing on the use of cash collateral, the Debtor will provide a
budget and a rent roll.
Park Bank will also have a post-petition security interest in the
Debtor's property to the extent of its pre-petition lien on the
Debtor's property, including, but not limited to a lien on the
Debtor's rents. Moreover, the Debtor will maintain fire and
extended casualty insurance on the real estate which constitutes
the collateral of Park Bank in an amount not less than the amount
of the mortgages in favor of Park Bank.
The Debtor is proposing that the Permanent Cash Collateral Order
will remain in effect until the earlier to occur of the following:
(a) the Debtor obtains confirmed Plan of Reorganization;
(b) the Debtor defaults on the timely payment of a sum the
Debtor is required to pay to Park Bank; or
(c) the date that Debtor's case is either dismissed or
converted to a proceeding under Chapter 7 of Title 11 United States
Code.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/wieb18-27174-11.pdf
About Integral Investments Prospect
Integral Investments Prospect, LLC, based in Milwaukee, WI, filed a
Chapter 11 petition (Bankr. W.D. Wis. Case No. 18-27174) on July
25, 2018. In the petition signed by Donald J. Gral, member of
manager, the Debtor estimated $1 million to $10 million in assets
and liabilities. The Hon. Michael G. Halfenger presides over the
case. Jonathan V. Goodman, Esq., at the Law Offices of Jonathan V.
Goodman, serves as bankruptcy counsel.
IQVIA INC: Moody's Affirms Ba2 CFR & Alters Outlook to Stable
-------------------------------------------------------------
Moody's Investors Service affirmed the ratings of IQVIA Inc.,
including the Ba2 Corporate Family Rating and Ba2-PD Probability of
Default Rating. Moody's also affirmed the Ba1 senior secured credit
facility ratings, the Ba3 unsecured notes ratings and the SGL-1
Speculative Grade Liquidity Rating. At the same time, Moody's
revised the rating outlook to stable from negative.
IQVIA's revenue backlog and new business wins are growing fast and
it is likely taking market share from competitors. Strong operating
performance and favorable market dynamics in IQVIA's clinical
research and healthcare data businesses are contributing to lower
earnings volatility and more predictable cash flows. In addition,
nearly two thirds of the merger integration between legacy
Quintiles and IMS Health is complete. As a result, Moody's views
the risk of IQVIA not achieving the $200 million cost synergy
target or encountering significant business disruptions through
2019 as low.
The stable rating outlook reflects Moody's expectation that IQVIA
will grow earnings mid-single digits over the next 12 to 18 months
and that debt/EBITDA will generally be maintained between 4.5 and
5.0 times.
Ratings affirmed at IQVIA Inc.:
Corporate Family Rating at Ba2
Probability of Default Rating at Ba2-PD
Speculative Grade Liquidity Rating at SGL-1
Senior Secured Ratings at Ba1 (LGD 2)
Senior Unsecured Notes at Ba3 (LGD 5)
Outlook Actions:
The outlook is revised to stable from negative
RATINGS RATIONALE
IQVIA's Ba2 Corporate Family Rating reflects the company's
considerable size, scale, and strong market positions as both a
pharmaceutical contract research organization (CRO) and
pharmaceutical data and analytics provider. The ratings are also
supported by the company's good operating cash flow and very good
liquidity. Market dynamics within IQVIA's CRO and data providing
businesses are stable, which in Moody's view, will contribute to
relatively low earnings volatility and more predictable free cash
flow through 2019. Moody's believes that debt/EBITDA will generally
be maintained between 4.5 times and 5 times. IQVIA's ratings are
constrained by its aggressive financial policies as Moody's
believes that most free cash flow will continue to be prioritized
for share repurchases and acquisitions.
The SGL-1 Speculative Grade Liquidity Rating reflects Moody's
expectation that IQVIA will maintain very good liquidity over the
next 12-15 months. Cash and other investments at June 30, 2018
exceeded $1 billion. Moody's expects the company to generate free
cash flow of around $1 billion in 2019. The company will be able to
internally fund its working capital needs, capital expenditures,
and mandatory debt amortization. Liquidity is also supported by a
$1.5 billion revolving credit facility that expires in 2023, that
Moody's expects will have periodic draws primarily for M&A. The
revolver and term loans contain financial maintenance covenants
including a maximum secured net leverage test of 4.0 times, and a
minimum interest coverage test of 3.5 times. Moody's expects that
the company will maintain very good cushion over the next 12-15
months.
Moody's could downgrade IQVIA's ratings if operating performance
weakens, or the company pursues significant debt-funded
acquisitions or share repurchases. Specifically, ratings could be
downgraded if Moody's believes that debt to EBITDA will be
sustained above 5x..
Moody's could upgrade the ratings if the company maintains debt to
EBITDA below 4x times, while demonstrating consistent revenue
growth and strong profit margins.
IQVIA is a leading global provider of outsourced contract research
and contract sales services to pharmaceutical, biotechnology and
medical device companies. The company is also a leading provider of
sales and other market intelligence primarily to the pharmaceutical
and biotech industries. Reported revenues for the twelve months
ended June 30, 2018 were $10.2 billion.
JAZPAL LLC: Case Summary & 2 Unsecured Creditors
------------------------------------------------
Debtor: Jazpal, LLC
1827 Mountain Road
Joppa, MD 21085-1918
Business Description: Jazpal, LLC is a real estate lessor
that owns in fee simple a real property
located at 1824 Mountain Road, Joppa,
Maryland, consisting of 264.10 acres with a
tax records valuation of $3.41 million.
Chapter 11 Petition Date: September 4, 2018
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Case No.: 18-21681
Judge: Hon. David E. Rice
Debtor's Counsel: David W. Cohen, Esq.
LAW OFFICE OF DAVID W. COHEN
1 N. Charles St., Ste. 350
Baltimore, MD 21201
Tel: (410) 837-6340
Email: dwcohen79@jhu.edu
Total Assets: $3,417,500
Total Liabilities: $3,799,400
The petition was signed by Konstantinos Vasilakopoulis, managing
member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at:
http://bankrupt.com/misc/mdb18-21681.pdf
JBECKS PROPERTIES: May Use Cash Collateral on Emergency Basis
-------------------------------------------------------------
The Hon. Carl L. Bucki of the U.S. Bankruptcy Court for the Western
District of New York has authorized JBecks Properties, Inc. to use
cash collateral on an emergency basis.
The Debtor is permitted to use cash collateral in which New York
Business Development Corporation, LendingClub Corporation, Colonial
Funding Group, LLC, and CIT Bank, N.A. d/b/a Direct Capital have or
allege to have a lien or security interests for payment of wages
and related expenses otherwise authorized by order of the Court and
for payment to necessary vendors.
As emergency adequate protection, the secured creditors are granted
rollover replacement liens in postpetition assets of the Debtor of
the same relative priority and on the same types and kinds of
collateral as it possessed prepetition, as the same may ultimately
be determined, to the extent of cash collateral actually used,
effective as of the Petition Date.
A full-text copy of the Order is available at
http://bankrupt.com/misc/nywb18-11425-22.pdf
About JBecks Properties
JBecks Properties, Inc., is a Sub-chapter "C" corporation that owns
and operates Mr. Bills Restaurant & Bar located at 1500 Cleveland
Drive, Cheektowaga, New York. It is in the business of operating a
bar/restaurant and activities incidental thereto.
JBecks Properties, Inc., filed its voluntary petition for relief
under Chapter 11 (Bankr. W.D.N.Y. Case No. 18-11425) on July 24,
2018. In the petition signed by John A. Beck, president, the
Debtor estimated under $1 million in both assets and liabilities.
The Debtor is represented by Robert B. Gleichenhaus at
Gleichenhaus, Marchese & Weishaar, P.C.
JJ BELLA: Court Approves Mahady & Mahady as Bankruptcy Counsel
--------------------------------------------------------------
J.J. Bella, Inc., sought and obtained approval from the United
States Bankruptcy Court for the Western District of Pennsylvania to
employ Robert H. Slone, Esq., at Mahady & Mahady as counsel to
handle its pending bankruptcy case.
Slone's billing rate is $275 per hour.
Mahady and Mahady and Slone have been paid a retainer of $10,000.00
by the Debtor.
Slone has signed a Verified Statement confirming the terms of his
representation and attesting to his disinterestedness as defined in
the Bankruptcy Code.
Mahady & Mahady can be reached at:
Robert H. Slone, Esq.
MAHADY & MAHADY
223 South Maple Avenue
Greensburg, PA 15601
Tel: (724) 834-2990
E-mail: robertslone223@gmail.com
J.J. Bella, Inc. filed for Chapter 11 bankruptcy protection (Bankr.
W.D. Pa. Case No. 18-22722) on July 5, 2018, listing under $1
million in both assets and liabilities. Robert H. Slone, Esq., at
MAHADY & MAHADY, serves as counsel.
JLD AUTOMOTIVE: Case Summary & 4 Unsecured Creditors
----------------------------------------------------
Debtor: JLD Automotive Services, Inc.
dba Little Al's Super Lube
dba Chelsea's Suds n Shine Car Wash
907 Route 22
Fox River Grove, IL 60021
Business Description: JLD Automotive Services, Inc. operates
a lube center, auto maintenance
and car wash facility in Fox River Grove,
Illinois.
Chapter 11 Petition Date: September 4, 2018
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Case No.: 18-24948
Judge: Hon. Deborah L. Thorne
Debtor's Counsel: David P. Lloyd, Esq.
DAVID P. LLOYD, LTD.
615B S. LaGrange Rd.
LaGrange, IL 60525
Tel: 708 937-1264
Fax: 708 937-1265
Email: courtdocs@davidlloydlaw.com
info@davidlloydlaw.com
Total Assets: $746,140
Total Liabilities: $1,051,767
The petition was signed by John Derer, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at:
http://bankrupt.com/misc/ilnb18-24948.pdf
JOURNAL-CHRONICLE: Sept. 25 Plan Confirmation Hearing
-----------------------------------------------------
Judge William J. Fisher of the U.S. Bankruptcy Court for the
District of Minnesota on August 22, 2018, approved the disclosure
statement with respect to Journal-Chronicle Company's Chapter 11
plan.
The Confirmation Hearing is scheduled to be conducted on September
25, 2018, at 2:00 a.m.
About Journal-Chronicle Co.
Journal-Chronicle Company, a Minnesota corporation --
http://www.j-cpress.com/services-- provides offset, digital and
wide-format printing services. The Company also offers mailing,
fulfillment and marketing support to its clients. J-C Press works
with UPS, FedEx, USPS and a variety of other carriers to make sure
customers get the products on time. The company ships to all 50
states and across the globe.
Journal-Chronicle Company, doing business as J-C Press, filed a
Chapter 11 petition (Bankr. D. Minn. Case No. 17-33322) on Oct. 23,
2017. In the petition signed by Patrick J. McDermott, president,
the Debtor estimated assets and liabilities at $1 million to $10
million. The case is assigned to Judge William J. Fisher. Larkin
Hoffman Daly & Lindgren Ltd., led by Thomas Flynn, Esq., is the
Debtor's counsel.
K & D HOSPITALITY: Sept. 11 Plan Confirmation Hearing
-----------------------------------------------------
Judge Carlota M. Bohm of the U.S. Bankruptcy Court for the Western
District of Pennsylvania conditionally approved the disclosure
statement explaining K & D Hospitality, LLC's small business
Chapter 11 plan.
September 11, 2018, is fixed for the hearing on final approval of
the conditionally approved Disclosure Statement and for
confirmation of the Plan. The hearing will be held at 1:30 p.m.
September 3 is fixed as the last day for filing written acceptances
or rejections of the Plan.
K & D Hospitality
Founded in 2006, K & D Hospitality, LLC, is a small business debtor
as defined in 11 U.S.C. Section 101(51D) that operates under the
rooming and boarding houses industry.
K & D Hospitality filed for Chapter 11 bankruptcy protection
(Bankr. W.D. Pa. Case No. 17-24167) on Oct. 18, 2017. In the
petition signed by Parmod Patel, president, the Debtor estimated
its assets and liabilities at between $1 million and $10 million.
Judge Carlota M. Bohm presides over the case. Justin P. Schantz,
Esq., at the Law Care of David A. Colecchia And Associates, serves
as the Debtor's bankruptcy counsel.
MCMAHAN-CLEMIS INSTITUTE: 5th Interim Cash Collateral Order Entered
-------------------------------------------------------------------
The Hon. Janet S. Baer of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized McMahan-Clemis Institute
of Otolaryngology, S.C., to use cash collateral upon the terms and
conditions contained in the Fifth Interim Order to avoid immediate
and irreparable harm to the estate.
The Debtor's Motion for Use of Cash Collateral is continued for
further hearing to Sept. 26, 2018 at 10:30 a.m.
The Debtor may use the collateral and cash collateral only as set
forth for each line item on the Budget, up to and including Sept.
30, 2018, to the extent of plus or minus 10% of the Revised Budget
to account for minor variances. The Budget for the period of Sept.
1 through Sept. 30, 2018 shows total cash disbursements of
approximately $101,761.
Lake Forest Bank (a) is granted and will have post-petition
replacement liens, to the extent and with the same priority as held
prepetition, in and to the cash collateral and all postpetition
property of the Debtor of the same type or kind substantially
equivalent to the prepetition collateral, and (b) will receive,
within seven days after the filing of Debtor's Monthly Operating
Report for the particular month, a payment from the Debtor of an
amount equal to 30% of the net cash income from said month after
payment of all expenses provided in the Budget as determined by
Debtor's Monthly Operating Report for that month.
A full-text copy of the Interim Order is available at
http://bankrupt.com/misc/ilnb18-17563-80.pdf
About McMahan-Clemis Institute
of Otolaryngology S.C.
McMahan-Clemis Institute of Otolaryngology, S.C., d/b/a Physician's
Hearing Aid Services, Inc., sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 18-17563) on June
20, 2018. In the petition signed by John T. McMahan, president,
the Debtor estimated assets of less than $50,000 and liabilities of
less than $1 million. Judge Lashonda A. Hunt presides over the
case. The Debtor is represented by Gregory K. Stern, P.C.
METCOM NETWORK: Amended Plan Outline OK'd; Amend Plan Confirmed
---------------------------------------------------------------
Bankruptcy Judge Mary Kay Vyskocil approved Metcom Network
Services, Inc.'s amended disclosure statement and confirmed its
amended chapter 11 plan of liquidation.
The Court has found that the Disclosure Statement contains adequate
information and in sufficient detail, as far as is reasonably
practicable in light of the nature and history of the Debtor and
the condition of the Debtor's books and records. The Debtor's Plan
also meets all applicable confirmation requirements set forth in
section 1129 and all other applicable provisions of the Bankruptcy
Code and the Federal Rules of the Bankruptcy Procedure; and upon
all of the proceedings held before the Court and upon the entire
record of the hearing.
About Metcom Network Services
Metcom Network Services, Inc., is a New York corporation, with its
principal place of business at 60 Hudson Street, New York, New
York, Suites 1001 and 2303. Metcom is owned 50% by Mark DuMoulin,
Sr., and 50% by Susan Becker DuMoulin. Metcom is in the business
of telecommunications, building and local interconnection and
engineering support, including the colocation of customer
equipment.
Metcom sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 16-11870) on June 28, 2016. The petition
was signed by Mark DuMoulin, Sr., president. At the time of the
filing, the Debtor estimated its assets and liabilities at $1
million to $10 million.
Neil H. Ackerman, Esq., at Ackerman Fox, LLP, is the Debtor's
counsel. ACT Financial & Tax Services, LLC, has been tapped as
accountant.
No trustee, examiner or committee of creditors has been appointed
in the Debtor's case.
MFL INC: Has Authorization on Cash Collateral Use
-------------------------------------------------
The Hon. Robert D. Berger of the U.S. Bankruptcy Court for the
District of Kansas has authorized MFL Inc. to use the cash
collateral for the payment of necessary expenses incurred in the
ordinary course of its business, as set forth in Debtor's Budget.
Amazon Capital Services, Inc., has a first lien on all of Debtor's
cash collateral which exceeds the value of such collateral.
Specifically, the amount owed by the Debtor to Amazon is $176,334
and the value of Debtor's prepetition cash collateral is $75,777.
To the extent that any of the other Cash Collateral Creditors have
a provable perfected interest in cash collateral at all such
interest is subordinate to the first lien of Amazon on the cash
collateral.
The Debtor grants Amazon a validly perfected first lien and
security interest in all of Debtor's now existing and hereafter
acquired property which is encompassed by the description of
Collateral contained in the excerpt of the Amazon Capital Services,
Inc.'s Security Agreement.
Further, to the extent that the Court determines that other Cash
Collateral Creditors do in fact have an interest in cash
collateral, such other Cash Collateral Creditors will also be
granted post-petition liens in cash collateral described in their
respective security agreements in the amount of the prepetition
liens with the priority of such post-petition liens being the same
as the priority of their prepetition liens as determined by the
Court.
As additional adequate protection for Cash Collateral Creditors the
use of Cash Collateral will be conditioned as follows:
(a) The Debtor will make payments to Cash Collateral Creditor
Amazon at $12,000 per month beginning September 1, 2018, until
further order of the Court, which may be sought by Debtor or any
other party in interest.
(c) The Debtor will establish a Debtor-in-Possession interest
bearing account into which all Cash Collateral will be deposited
during the pendency of its case.
(d) Amazon will, on a monthly basis, be permitted to conduct a
full inventory of all collateral including inventory, equipment,
and accounts of the Debtor by visiting the Debtor's premises during
ordinary business hours.
(e) All Collateral will be insured to its full value, and
Debtor will provide immediately evidence of insurance listing
Amazon as a first priority insured loss payee.
A full-text copy of the Order is available at
http://bankrupt.com/misc/ksb18-21422-29.pdf
About MFL Inc.
MFL Inc., aka Memory Foam Liquidators Inc., also known as AAA
Custom Services, is located in Topeka, Kansas. MFL Inc. is in the
foams and rubber business.
MFL Inc. sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. Kan. Case No. 18-21422) on July 12, 2018. In the petition
signed by Christopher D. Farmer, president, the Debtor disclosed
$1.34 million in assets and $1.91 million in liabilities. Justice
B. King, Esq., at Fisher Patterson Sayler & Smith, LLP, serves as
counsel to the Debtor.
MONITRONICS INTERNATIONAL: S&P Cuts ICR to 'CC', Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Monitronics
to 'CC' from 'CCC'. The outlook is negative.
S&P said, "At the same time, we lowered our issue-level rating on
the company's $1.1 billion first-lien term loan due 2022 to 'CC'
from 'CCC'. The recovery rating remains '3', indicating our
expectations for meaningful (50%-70%; rounded estimate: 65%).
Lastly, we lowered our issue-level rating on the senior unsecured
notes to 'C' from 'CC.' The '6' recovery rating remaining
unchanged, indicating our expectation for negligible (0%-10%;
rounded estimate: 0%) recovery in the event of payment default."
The downgrade follows Monitronics' announcement on Aug. 30, 2018,
of a proposed transaction to exchange its 9.125% senior unsecured
notes due 2020 for a combination of new $585 million cash and
paid-in-kind (PIK) (7.75% cash and 3.75% PIK) unsecured notes due
2023, up to $100 million of cash from parent company Ascent and
warrants. Monitronics is also proposing amendments to eliminate the
restrictive covenants governing the 2020 notes, including certain
events of default.
S&P said, "The negative outlook reflects our expectation that,
although noteholders rejected Monitronics' initial exchange offer,
a distressed exchange is likely to occur over the next 12 months.
Upon completion of the distressed exchange, we would lower the
issuer credit rating to 'SD' (selective default) and the senior
unsecured notes rating to 'D' (default). Subsequently, we would
reassess Monitronics's prospective credit profile and assign a
long-term issuer credit rating and outlook that would reflect our
assessment of the company's business risk profile, as well as its
financial risk profile, based on its revised capital structure.
"We would lower the rating upon completion of any distressed
exchange offer, with the issuer credit rating being revised to 'SD'
(selective default) and the senior unsecured notes to 'D'
(default). We expect a distressed exchange to take place within the
next 12 months, although there is the possibility it could occur
outside of that timeframe.
"While unlikely, we could raise the rating if we no longer viewed a
distressed exchange as likely, and if it were able to either
refinance its existing notes at par or amend its covenants such
that the springing loan covenant doesn't place such significant
stress on the company's liquidity."
MR. TORTILLA: Given Interim Approval to Use Cash Until Sept. 28
---------------------------------------------------------------
The U.S. Bankruptcy Court of Central District of California, San
Fernando Valley Division entered an interim order allowing Mr.
Tortilla, Inc., to use cash collateral through Sept. 28, 2018.
Secured creditor, Valley Economic Development Council (VEDC) is
granted adequate protection payment of $2,500 and replacement lien
on all postpetition liens. A further interim hearing is scheduled
for Sept. 27, 2018, at 2:00 p.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/cacb18-12051_17_Tortilla_Cash_Ord.pdf
About Mr. Tortilla, Inc.
Mr. Tortilla, Inc., is a manufacturer of traditional flour tortilla
(fresh or refrigerated) in San Fernando, California.
Mr. Tortilla filed a Chapter 11 petition (Bankr. C.D. Cal. Case No.
18-12051) on Aug. 14, 2018. In the petition signed by Anthony
Alcazar, president, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The case is
assigned to Judge Victoria S. Kaufman. Jonathan M. Hayes, Esq., at
Resnik Hayes Moradi LLP, is the Debtor's counsel.
MUSCLEPHARM CORP: In Cost Savings Talks with Potential Partner
--------------------------------------------------------------
MusclePharm Corporation disclosed that it recently entered into
advanced discussions with a potential strategic partner concerning
a transaction that the Company believes is commercially synergistic
and will both provide cost savings and introduce the Company's
products to new markets and retailer platforms. The Company
believes that these discussions have been productive, and that it
is close to agreeing in principle on material transaction terms
with the Potential Strategic Partner, which the Company expects
promptly will be followed up with definitive transaction
documentation. The Potential Strategic Transaction would involve
the purchase by the Potential Strategic Partner of a significant
portion of the Company's debt held by Chairman and CEO Ryan
Drexler, which the Potential Strategic Partner would immediately
convert into shares of the Company. The Company believes that, if
consummated, the Potential Strategic Transaction will eliminate a
significant portion of the Company's ongoing interest expense.
Following the consummation of the Transaction, Mr. Drexler would no
longer beneficially own a majority of the common stock of the
Company. The Company gives no assurance that the parties will
enter into the Potential Strategic Transaction or that the
Potential Strategic Transaction will have the intended benefits for
the Company.
The Company is disclosing the Potential Strategic Transaction
because the Potential Strategic Transaction will be disclosed on
Sept. 4, 2018 in a declaration to be provided by a director of the
Company in connection with a lawsuit filed against the Company and
its directors on Aug. 21, 2018 by White Winston Select Asset Fund
Series Fund MP-18, LLC and White Winston Select Asset Funds, LLC
in the First Judicial District Court of the State of Nevada in and
for Carson City, Case No. 18-OC-0026 1B. The Plaintiffs have
sought the appointment of a receiver over the Company, injunctive
relief and damages, primarily relating to the Company's Nov. 3,
2017 refinancing of notes issued to Mr. Drexler. The Plaintiffs
also sought and obtained an ex parte temporary restraining order
enjoining Mr. Drexler from converting the Note into MusclePharm
shares, and enjoining the Company from issuing such shares to Mr.
Drexler. The Company believes that it has meritorious defenses to
Action and intends to vigorously contest the allegations.
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTCQB:MSLP) -- http://www.muslepharm.com/-- develops,
manufactures, markets and distributes branded nutritional
supplements. Its portfolio of recognized brands includes
MusclePharm Sport Series, Essential Series and FitMiss, as well as
Natural Series, which was launched in 2017. These products are
available in more than 100 countries worldwide. MusclePharm is an
innovator in the sports nutrition industry with clinically proven
supplements that are developed through a six-stage research process
utilizing the expertise of leading nutritional scientists,
physicians and universities.
MusclePharm incurred a net loss of $10.97 million in 2017 compared
to a net loss of $3.47 million in 2016. As of June 30, 2018, the
Company had $30.39 million in total assets, $46.01 million in total
liabilities and a total stockholders' deficit of $15.61 million.
NJ COMMUNITY SPINE: Plan, Disclosures Joint Hearing Set for Oct. 2
------------------------------------------------------------------
Bankruptcy Judge Christine M. Gravelle is set to hold a joint
hearing on Oct. 2, 2018 at 2:00 p.m to determine the adequacy of NJ
Community Spine and Pain, LLC's disclosure statement and if
appropriate to confirm its plan of reorganization dated July 30,
2018.
Written objections to the adequacy of the Disclosure Statement must
be filed no later than seven days prior to the joint hearing.
Written objections to the Plan and ballots accepting or rejecting
the Plan must be filed no later than seven days before the joint
hearing.
About NJ Community Spine and Pain
NJ Community Spine and Pain, LLC, practices as a Chiropractor
provider in Toms River, New Jersey. NJ Community Spine and Pain
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D.N.J. Case No. 17-33945) on Nov. 28, 2017. In its petition signed
by Vincent Giardina, manager, the Debtor estimated assets of less
than $50,000 and liabilities of less than $1 million. Judge
Christine M. Gravelle presides over the case. The Debtor tapped
McDowell Law, PC, as its legal counsel.
NOBLE ENERGY: Egan-Jones Hikes Senior Unsecured Ratings to BB+
--------------------------------------------------------------
Egan-Jones Ratings Company, on August 29, 2018, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Noble Energy, Inc. to BB+ from BB.
Noble Energy, Inc., formerly Noble Affiliates, Inc., is an American
petroleum and natural gas exploration and production company
headquartered in Houston, Texas. The company is ranked 653rd on the
Fortune 1000.
OAKMONT INVESTMENT: Seeks Authorization on Cash Collateral Use
--------------------------------------------------------------
Oakmont Investment Group, LLC, and its affiliated debtors seek
authorization from the U.S. Bankruptcy Court for the Northern
District of Georgia to use cash collateral.
Oakmont Investment Group, LLC is the tenant of a restaurant located
at 3050 Windy Hill Road, Atlanta, GA 30339. Investment Partners
Group, LLC, is the operating entity operating the restaurant at
that location and is known as Sage Woodfire Tavern.
Sage Park Place, Inc., is the tenant of a restaurant located at
4505 Ashford Dunwoody Road, Atlanta, GA 30346 and on which the
operating entity is Social Investments Group II, LLC operating Sage
Woodfire Tavern.
Stradmont Oaks Investments, LLC operates a restaurant in
Alpharetta, Georgia, on which the tenant is JLK II, Inc. 11405
Haynes Bridge Road, Alpharetta, Georgia 30009.
Lastly, Sage Enterprises Group III, LLC is the tenant and operating
restaurant entity for Sage Buckhead, 3379 Peachtree Road, Atlanta,
GA 30326.
The Debtors believe that the proceeds from sales and operations of
the four Sage restaurants are cash collateral of one or more
creditors. In the course of its ordinary operations, each
Debtor-restaurant is collecting monies from sales and services. The
Debtors claim that they have no current source of income other than
from collections from sales and performance of restaurant
services.
The Debtors and their counsel believe that certain creditors may
claim a security interest in property of Debtors -- i.e. equipment,
inventory, accounts and other personalty. However, the Debtors'
counsel has not been able to ascertain whether such claims are
valid, bona fide and allowable. Hence, at this point, the Debtors
are not able to stipulate or agree as to the status of any
particular creditor but Debtors are, to the best of their
knowledge, information and belief notifying any and all such
creditors of the pendency of the Cash Collateral Motion.
In the event Debtors are authorized to use such cash collateral,
the Debtors submit that any creditor holding a security interest in
assets and proceeds therefrom of any Debtor is adequately protected
as set forth in the proposed budget. The Debtors represents that
there is no indication of a decline in value of any property of
Debtors within a short three to four week period.
The Debtors propose to pay in the ordinary course of its business
operating expenses, including but not limited to rents, payroll,
utilities, taxes, produce, meats, liquor, inventory and insurance
pending further Order of the Court allowing use of any cash
collateral for the purposes specified and in the amounts specified
on the proposed budget.
A full-text copy of the Cash Collateral Motion is available at
http://bankrupt.com/misc/ganb18-62353-7.pdf
About Oakmont Investment Group
Oakmont Investment Group, LLC, and its affiliates are
privately-held companies operating in the restaurant industry.
Oakmont Investment Group and 6 its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case
No. 18-62353) on July 26, 2018. In the petitions signed by James
Liakakos, manager, Oakmont Investment Group estimated up to $50,000
in assets and $100,000 to $500,000 in liabilities. Affiliates Sage
Park Place, Inc., and Sage Enterprises Group III, LLC, each
estimated up to $50,000 in assets and $1 million to $10 million in
liabilities.
The Debtors tapped George M. Geeslin, Esq., as their legal counsel.
ONCOBIOLOGICS INC: Terminates Office Lease with Cedar Brook
-----------------------------------------------------------
Oncobiologics, Inc., has entered into a lease termination agreement
effective Sept. 1, 2018, with Cedar Brook East Corporate Center,
LP, a New Jersey limited partnership, to terminate the lease dated
Aug. 31, 2015 for approximately 82,000 square feet of office and
laboratory space located in Cranbury, New Jersey. In consideration
for the termination of the Lease, the Company agreed to make
payments to the Landlord totaling approximately $5.8 million, which
includes (i) $287,615, the unamortized balance of the broker???s
fee paid by Landlord for the Lease, which was payable upon
execution of the Termination Agreement, (ii) $50,000 per month for
up to 30 months, commencing Sept. 1, 2018, and (iii) a $4.0 million
lease termination payment together with the 30th monthly payment
and, in any event, on or before Feb. 1, 2021. The Company and
Landlord have agreed that the $174,250 security deposit will be
used to pay the 7th, 8th and 9th and a portion of the 10th monthly
payments. The Company may pay the $4.0 million lease termination
payment at any time, whereupon the Company's obligation to make the
monthly lease payments terminates.
The Company conducted a review of its current and expected
infrastructure and liquidity needs for its current strategy and, as
a result, the Company determined to buyout the Lease. The buyout
of the Lease is expected to reduce cash needs by approximately $1.3
million over the next two years, and approximately $5.0 million in
total over the remaining life of the original Lease through
February 2026.
About Oncobiologics
Oncobiologics, Inc. -- http://www.oncobiologics.com/-- is a
clinical-stage biopharmaceutical company focused on identifying,
developing, manufacturing and commercializing complex biosimilar
therapeutics. The Cranbury, New Jersey-based Company's current
focus is on technically challenging and commercially attractive
monoclonal antibodies, or mAbs, in the disease areas of immunology
and oncology.
Oncobiologics reported a net loss attributable to common
stockholders of $40.02 million for the year ended Sept. 30, 2017,
compared to a net loss attributable to common stockholders of
$63.13 million for the year ended Sept. 30, 2016.
As of June 30, 2018, Oncobiologics had $34.08 million in total
assets, $43.35 million in total liabilities, $3.93 million in
series A convertible preferred stock, and a total stockholders'
deficit of $13.19 million.
KPMG LLP, in Philadelphia, Pennsylvania, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Sept. 30, 2017, citing that the
Company has incurred recurring losses and negative cash flows from
operations since inception and has an accumulated deficit at Sept.
30, 2017 of $186.2 million, $13.5 million of senior secured notes
due in December 2018 and $4.6 million of indebtedness that is due
on demand, which raises substantial doubt about its ability to
continue as a going concern.
PARADISE AMUSEMENTS: Gets Approval of Plan to Exit Bankruptcy
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Washington on
August 30 approved the plan proposed by Paradise Amusements, Inc.
to exit Chapter 11 protection.
The court gave the thumbs-up to the reorganization plan after
finding that it satisfied the requirements for confirmation under
section 1129 of the Bankruptcy Code.
Under the court-approved plan, general unsecured claims are
classified in Class 6, which consist of the allowed claims of
Paradise's general unsecured creditors that remain after resolution
of all objections to be filed by the company. Unsecured claims
filed in the company's bankruptcy case total $3,271,734.72,
including an unsecured claim by Les Schwab that was incorrectly
characterized as a priority claim.
A copy of the court order is available for free at:
http://bankrupt.com/misc/waeb17-03362-132.pdf
About Paradise Amusements Inc.
Headquartered in Post Falls, Idaho, Paradise Amusements, Inc. filed
for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No.
17-03362) on Nov. 16, 2017. In its petition, the Debtor disclosed
that it had estimated assets of less than $1 million and
liabilities of less than $1 million.
Judge Frederick P. Corbit presides over the case. Bruce K.
Medeiros, Esq., at Davidson Backman Medeiros is the Debtor's
bankruptcy counsel.
PARKER PRIVATE: Moody's Assigns B3 CFR, Outlook Stable
------------------------------------------------------
Moody's Investors Service assigned a B3 Corporate Family Rating and
B3-PD Probability of Default Rating (PDR) to Parker Private Merger
Sub, Inc. in connection with private equity firm Siris Capital's
proposed acquisition of Web.com. Parker Private Merger Sub, Inc. is
an acquisition vehicle that will be merged with and into the
company, with Web.com Group, Inc. surviving the merger as a wholly
owned subsidiary of Parker Private Holdings II, LLC. At the same
time, Moody's assigned B2 ratings to the company's proposed $1.18
billion first lien senior secured credit facility, including $100
million revolving credit facility and $1.08 billion term loan, and
a Caa2 rating to the proposed $420 million second lien senior
secured term loan. The ratings outlook is stable.
The new credit facilities are being issued as part of a transaction
whereby investment funds affiliated with Siris Capital are
acquiring 100% of the common stock of Web.com in a transaction
valued at approximately $2.05 billion ($28 per share). In addition
to the new credit facilities, Siris will invest nearly $700 million
of new cash equity. At the close, the company will enter into a new
$100 million revolving credit facility, which is expected to be
modestly drawn. Borrowings under the revolving credit facility
along with balance sheet cash will be used to pre-fund the
restructuring of Web.com's loss-making Premium Services business,
exiting corporate sponsorship marketing programs and other
initiatives.
Moody's assigned the following ratings to Parker Private Merger
Sub, Inc.:
--- Corporate Family Rating at B3
--- Probability of Default Rating at B3-PD
--- $100 million first lien senior secured revolving credit
facility due 2023 at B2 (LGD3)
--- $1,080 million first lien senior secured term loan due 2025
at B2 (LGD3)
--- $420 million second lien senior secured term loan due 2026 at
Caa2 (LGD5)
--- Ratings Outlook at Stable
The assigned ratings remain subject to Moody's review of the final
terms and conditions of the proposed financing, expected to close
in October 2018.
RATINGS RATIONALE
Web.com's B3 CFR reflects the company's high pro forma
debt-to-EBITDA leverage, estimated at 9.3 times (Moody's adjusted
and excluding future cost savings not yet implemented) at June 30,
2018, modest size relative to its main competitors, operations in
the highly competitive market for providing web services to small
businesses, low barriers to entry, and expectation for
low-to-modestly negative organic revenue growth. Moody's also
assesses the company's overall business risk to be high due to
significant upfront cash payments required to achieve planned costs
savings as well as a need to restructure its loss-making premium
business and streamline domain operations, while remaining
competitive in the market.
Deleveraging over the next 12-18 months is predicated on
management's ability to successfully complete its restructuring
plan and realize large cost savings, while maintaining stable
subscriber retention rates and continuing to upsell and cross sell
add-on services to the existing customer base to drive higher
Average Revenue Per User (ARPU). Although leverage will be very
high for the rating at the close of the transaction, Moody's
estimates that the company will be able to improve this measure
over the next 12-18 months, with debt-to-EBITDA (Moody's adjusted)
expected to moderate towards 7.0 times range by 2019. These
projections assume that Web.com achieves the majority of its
planned cost savings and uses excess cash to repay debt, while
maintaining a stable topline. The company is also exposed to event
risks under private equity ownership including debt-funded
acquisitions and shareholder distributions.
Web.com's rating is supported by the company's solid competitive
position as a provider of domain name registration and value added
internet services through its Network Solutions and Register.com
brands to small businesses, recurring nature of its
subscription-based revenue model, diverse customer base with high
historical subscriber retention rates (around 85%) and strong
EBITDA margin. The company has a good track record of applying free
cash flow to reduce debt following leveraging events as well as
management's good business execution. Additionally, the market for
domain name registration, web hosting and online services,
especially outside of the US has good growth characteristics.
Moody's expects Web.com's liquidity to be adequate over the next
12-18 months. Sources of liquidity consist of a cash balance of $65
million at close of the transaction, expectation for modestly
positive free cash flow and funds available under the new $100
million revolving credit facility ($25 million drawn at close).
Moody's projects annual free cash flow of $70-80 million (before
term loan amortization) over the next 12-15 months, which will
provide adequate coverage of annual mandatory term loan
amortization of approximately $11 million, paid quarterly. The
revolver is expected to have a springing net first lien leverage
ratio of 7.0 times if more than 35% of the revolver is drawn. The
company is not expected to utilize the revolver, other than the
initial $25 million draw, during the next 12-15 months and is
expected to remain well in compliance with the springing net first
lien secured leverage covenant. Term loans have no financial
maintenance covenants.
The stable ratings outlook reflects Moody's view that the company
will achieve its cost savings while maintaining stable revenues,
improve profitability and generate healthy free cash flow in 2019
that will be applied towards debt repayment.
An upgrade in the near term is unlikely given Web.com's elevated
business risk and very high leverage. However, achievement of
margin expansion with stable revenues such that debt-to-EBITDA
(Moody's adjusted) is approaching 6.0 times, free cash flow-to-debt
(Moody's adjusted) is sustained above 5% and maintaining good
liquidity could lead to an upgrade.
Moody's could downgrade Web.com's ratings if the company cannot
translate planned cost savings into higher EBITDA, revenues decline
more than anticipated, or if the company fails to generate
meaningful free cash flow. The ratings could also be downgraded if
debt-to-EBITDA (Moody's adjusted) is sustained above 7.5 times.
Headquartered in Jacksonville, FL, Web.com Group, Inc. provides
internet domain name registration as well as value added internet
services such as website builder tools and online marketing to
small businesses. Following the completion of the go-private
transaction, Web.com will be majority owned by funds affiliated
with Siris Capital. Moody's projects revenues to fall towards the
$600 million range by 2019.
PEPPERTREE PARK: New Plan Modifies Treatment of Interests Holders
-----------------------------------------------------------------
Peppertree Park Villages 9&10, LLC, Peppertree Land Company, Duane
S. Urquhart, and Northern Capital, Inc., filed a disclosure
statement explaining their fourth amended joint chapter 11 plan of
reorganization.
The fourth amended joint plan modifies the treatment of Class 8
Interests Holders.
The Interests Holders are classified in two subclasses with
Subclass 8A consisting of all Interests in each of the two entity
Debtors, Peppertree Park Villages 9&10, LLC and Northern Capital,
Inc., and Subclass 8B consisting of all Interests in Debtor PLC.
The holders of Interests in Subclass 8A will receive identical
Interests in the Reorganized Debtors, except as to PLC, in the same
amount and proportion as their Interests in the Debtors.
Only the general partners of PLC contributing value to PLC will
receive any Interest in Reorganized PLC. All other Interests in PLC
will be canceled, extinguished, and the partner holding such
Interest will be disassociated from PLC. It is anticipated that the
ownership of Reorganized PLC will be as follows: Osgood Family
Trust Dated March 16, 2004 (48.08%); Miller Living Trust dated May
21, 1996 (15%); Hawk Mesa Investors, LLC (9.78%); Duane Scott
Urquhart (18.27%).
A full-text copy of the Redline version of the Latest Disclosure
Statement is available at:
http://bankrupt.com/misc/casb17-05137-11-374.pdf
About Peppertree Park Villages
Headquartered in Bonsall, California, Peppertree Park Villages 9
and 10, LLC, listed its business as a single asset real estate (as
defined in 11 U.S.C. Section 101(51B)), whose principal assets are
located at 1654 S. Mission Rd, Fallbrook, California. Peppertree
Park is an affiliate of Northern Capital, Inc., which sought
bankruptcy protection on Aug. 13, 2017 (Bankr. S.D. Cal. Case No.
17-04845).
Peppertree Park Villages 9&10, LLC (Bankr. S.D. Cal. Case No.
17-05137) and affiliate Peppertree Land Company (Bankr. S.D. Cal.
Case No. 17-05135) each filed for Chapter 11 bankruptcy protection
on Aug. 28, 2017. The petitions were signed by Duane Urquhart as
managing general partner, who also sought bankruptcy protection on
Aug. 13, 2017 (Bankr. S.D. Cal. Case No. 17-04846).
Peppertree Land and Peppertree Park each estimated their assets and
liabilities at between $1 million and $10 million.
Marwill Hogan, Esq., at Foley & Lardner, LLP, serves as the
Debtors' bankruptcy counsel.
PLASTIC INDUSTRIES: Seeks Authority to Use Cash Collateral
----------------------------------------------------------
Plastic Industries, Inc., seeks authority from the U.S. Bankruptcy
Court for the District of Idaho to use cash collateral on an
emergency basis and on a continuing basis through November 2018.
The Debtor does not have sufficient income to continue its
operation without the use of cash collateral and by this motion
seeks authorization to use cash collateral on an emergency basis to
pay the following operating expenses:
Materials $220,000
Power $26,000
Labor $100,000
Virgin $12,000
Contract Labor $2,500
Steel $25,000
Office & Print $1,000
Capital Improvements $2,000
Water $3,000
Leases $19,000
Blades $3,000
Equip. Repairs $11,000
Cell Phones $1,000
Ins. & Tax $10,000
Fuel $10,000
Freight $10,000
Supplies $2,500
============== ========
Total Expenses $458,000
Under the proposed budget, the Debtor estimates in good faith that
its gross income will total approximately $5,877,500, which is
generated from sale of plastic pipe/conduit and other products
produced by the Debtor.
The Debtor believes that the only secured creditor claiming a lien
against the plastic pipe/conduit and other products is Cache Valley
Bank. As of the date of the Petition, the amount owed to Cache
Valley Bank is the approximate sum of $3,577,808 plus interest and
attorney fees from May 4, 2018, and it is the cash collateral of
said creditor that is sought to be used by the Debtor.
The Debtor will sequester all income generated from the operation
of its business and use of the collateral in a segregated bank
account (cash collateral account) in accordance with Bankruptcy
Code Section 363(c)(4). The Debtor will at all times during the
pendency of this case keep all cash collateral, whether received or
hereafter collected, and any and all other cash collateral that
comes into the Debtor's possession, custody, or control, together
with all proceeds, products, or profits thereof, separate and
distinct from all other property of the debtor and of the Debtor's
bankruptcy estate.
The Debtor will grant Cache Valley Bank a continuing lien in
accounts receivable, inventory and equipment, and all proceeds
derived from sales, and all proceeds derived therefrom received
before, on or after the date of the commencement of its Chapter 11
Case, to secure any and all obligations owed by the debtor to Cache
Valley Bank, in the same priority and to the extent it existed
prepetition. If the Court determines the adequate protection
proposed by the Debtor is insufficient, then the Debtor requests
that the Court make a determination as to the amount the Debtor
should pay as adequate protection.
The Debtor will maintain, keep, and preserve the collateral and all
of the terms of the Security Agreements and other credit documents
and agrees further to use its best effort in collecting all income
generated by operation of its business and by use of the collateral
and in maximizing the Debtor's profitability.
Cache Valley Bank will have access to the Debtor's business
premises to review and evaluate the physical condition of the
collateral and inspect the financial records and all other records
of the Debtor concerning its operations, and for review of the
Debtor's overall financial condition, the expenditure of funds
generated from the Debtor's operations, the accrual of expenses
relating thereto and any and all other records reasonably relating
to the operations of the Debtor.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/idb18-40672-6.pdf
About Plastic Industries
Plastic Industries, Inc. -- http://www.pipipe.com/-- is a
manufacturer of high density polyethylene pipe that is used by a
variety of markets including: telecommunications, utilities, oil,
mining and irrigation/stockwatering industries. Plastic Industries'
plant is located in the state of Idaho in the city of Preston at
1234 Industrial Park Road. The Company was founded by Rex Pitcher
in 1980.
Plastic Industries, based in Preston, Idaho, filed a Chapter 11
petition (Bankr. D. Idaho Case No. 18-40672) on Aug. 1, 2018. In
the petition signed by Rex Pitcher, director, the Debtor disclosed
$2,399,893 in assets and $5,974,850 in liabilities. The Hon.
Joseph M. Meier presides over the case. W. Reed Cotten, Esq., at
Robinson & Associates, Attorneys At Law, serves as bankruptcy
counsel.
PLAYHUT INC: Fox Rothschild Approved as Committee Counsel
---------------------------------------------------------
The Official Committee of Unsecured Creditors of Playhut, Inc.
sought and obtained authority from the United States Bankruptcy
Court for Central District of California to retain Fox Rothschild
LLP as counsel.
Fox Rothschild will perform these services:
(a) assisting, advising, and representing the Committee
regarding the administration of the Debtor's case;
(b) analyzing the Debtor's assets and liabilities, and
participating in and reviewing any proposed asset sales or
dispositions;
(c) attending meeting and negotiating with the representatives
of the Debtor, its insiders, and secured creditors;
(d) examining and analyzing the Debtor's affairs;
(e) reviewing, analyzing, and negotiating any Chapter 11 plan
that may be filed and as well as any accompanying disclosure
statement;
(f) reviewing, analyzing, and negotiating any financing or
funding agreement;
(g) taking all necessary actions to protect and preserve the
interests of the Committee, including the prosecution of actions on
its behalf, negotiations concerning all litigation in which the
Debtor is involved, and reviewing and analyzing all claims filed
against the Debtor's estate;
(h) preparing all necessary motions, applications, answers,
orders, reports, and papers in support of the Committee's
position.
(i) appearing before this Court, and other courts in which
matters may be heard, and protecting the Committee's interest; and
(j) performing all other necessary legal services in this
case.
Fox Rothschild's current hourly rates for individuals likely to
work on this case are:
Mette H. Kurth (Partner) $870
Rom Bar-Nissim (Associate) $380
Courtney Emerson (Associate) $350
Patricia Chlum (Paralegal) $295
Fox Rothschild disclosed that it did not receive a retainer with
respect to its representation of the Committee.
Mette H. Kurth attests that Fox Rothschild and its respective
attorneys have no connection with and no interest adverse to the
Committee, the Debtor, and the Debtor's creditors, the estate, or
any other party???in-interest. Fox Rothschild does not hold or
represent any interest adverse to the Committee with respect to the
matters for which it is being retained and is a "disinterested
person" as that phrase is defines in Bankruptcy Code section
101(14).
Fox Rothschild LLP can be reached at:
Mette H. Kurth, Esq.
Fox Rothschild LLP
Citizens Bank Center
919 North Market Street, Suite 300
P.O. Box 2323
Wilmington, DF 19899-2323
Tel: 302 622 4209
Fax: 302 656 8920
Web: www.foxrothschild.com
About Playhut, Inc.
Playhut, Inc. -- https://www.playhut.com/ -- is a toy producer
based in City of Industry, California, offering innovative toys
such as indoor and outdoor play structures, baby structures, dolls,
and plushes. Founded in 1992, Playhut's products are sold North
and South Americas, Europe, Asia, and Australia. The company also
partners with major retailers such as Walmart, Target, Kmart, Toys
'R' US, Costco, Amazon, QVC, JC Penney and licensed brands such as
Disney, Marvel, Nickelodeon, HiT, Lucasfilms.
Playhut, Inc., filed a Chapter 11 petition (Bankr. C.D. Cal. Case
No. 18-15972) on May 24, 2018. In the petition signed by Zu Zheng,
president, the Debtor estimates $1 million to $10 million in assets
and $10 million to $50 million in liabilities. The case is
assigned to Judge Julia W. Brand. Robert P. Goe, and Stephen
Reider, at Goe & Forsythe, LLP, serve as general bankruptcy counsel
to the Debtor; and Armory Consulting Co., as its financial
advisor.
POINT COM: Judge Signs Third Interim Cash Collateral Order
----------------------------------------------------------
The Hon. Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas signed a Third Interim Order authorizing Point
Com, LLC, to use cash collateral pending final hearing on the Cash
Collateral Motion on Sept. 24, 2018 at 10:30 a.m.
The amounts the Debtor may pay for such expenses is limited to 110%
of each of the amounts set forth in the budget, provided that the
total used by the Debtor during all months will not exceed $105% of
the total set forth in that budget.
The Debtor is authorized to pay Steve Kahle a gross salary of
$5,000 per month for the two months of August and September of
2018. As a condition of such use, Steve Kahle, in his capacities
as an individual and as the managing member of Debtor, must file an
affidavit indicating that Debtor has no outstanding or past-due
administrative expenses, except for attorneys' fees, at least three
but no more than five business days before each bimonthly payroll
payment.
Stratified Data is granted a replacement security interest in the
Debtor's postpetition accounts receivable, with the same priority
as the garnishment lien it now holds, to the extent and only to the
extent such garnishment lien is held to be valid, enforceable and
non-avoidable.
A full-text copy of the Third Interim Order is available at
http://bankrupt.com/misc/txwb18-10762-49.pdf
Abut Point Com
Point Com, LLC, operates a website design and development and
digital marketing business. It has been in business since 1997,
when its founder and its now-sole member/manager Steven C. Kahle,
formed the company. In 2017, the Debtor had gross revenues of
approximately $1,208,000.
Point Com, LLC sought Chapter 11 protection (Bankr. W.D. Tex. Case
No. 18-10762) on June 14, 2018. In the petition signed by Steve C.
Kahle, member and manager, the Debtor estimated assets in the range
of $0 to $50,000 and $500,001 to $1 million in debt. The Debtor
tapped B. Weldon Ponder, Jr., Esq., as counsel.
PRIME SOURCE ACCESSORIES:Emergency Use of Cash Collateral Requested
-------------------------------------------------------------------
Prime Source Accessories, Inc., a female clothing designer and
distributor, seeks authority to use cash collateral of Rosenthal &
Rosenthal, LLC.
The Debtor intends to use cash collateral to pay regular operating
expenses in the regular course of business, and well as the
administrative expenses in the Chapter 11 proceedings as they
become due.
Rosenthal & Rosenthal is a secured creditor of the Debtor by virtue
of a Factoring Agreement dated March 3, 2016 in which Rosenthal &
Rosenthal asserts a security interest in the Debtor's future
receivables and other cash collateral.
The Debtor is in the process of preparing a monthly budget.
In the cash collateral motion, the Debtor cited a payroll due Aug.
31, 2018, and rent due to two separate landlords on Sept. 1, 2018.
One of the landlords pertains to the Debtor's corporate office in
Stuart, Florida. The other landlord owns and maintains the
warehouse facility in Nashville, TN where all of the Debtor's
inventory is located. That landlord also processes the shipping of
the goods and products of the Debtor in and out of the warehouse.
All of the Debtor's inventory will be at risk under a landlord's
lien if the rent is not paid in a timely fashion.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/cacb18-20158_14_Prime_S_Cash_M.pdf
Road to Bankruptcy
By way of background, the Debtor has been forced to revise and
adjust its business model due to widespread changes in the clothing
industry. The Debtor has historically supplied goods and products
to large national chains such as Marshall's, T.J. Maxx, Bealls and
others. Unfortunately, those retailers are feeling the effects of
competitive internet clothing sales from Amazon.com, Stitches.com
and many other similar new internet fashion providers.
Consequently, orders from the large retailers have decreased. The
Debtor has engaged in pro-active efforts to address the issue.
Pre-Petition, the Debtor laid off many of its employees in an
effort to down-size and decrease its expenses due to the
adjustments in the clothing market. Additionally, the Debtor
closed its Atlanta office and facility in an effort to decrease its
overhead and address adjustments in the clothing market that have
affected the business of the Debtor.
About Prime Source Accessories
Prime Source Accessories, Inc., with headquarters in south Florida
and full service sourcing offices in Hong Kong & Shenzhen, China,
is a design and manufacturing and sourcing firm targeting the teen,
collegiate and adult segments of the retail industry. Prime Source
is a privately held company founded in 1997.
Prime Source Accessories, Inc., filed a voluntary petition under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No.
18-20158) on Aug. 21, 2018. In the petition signed by Jamie
Chauss, president, the Debtor disclosed $394,163 in assets and
$1,011,261 in liabilities. The case is assigned to the Hon. Erik
P. Kimball. Craig I. Kelley, Esq., at Kelley & Fulton, PL, is the
Debtor's counsel.
QBS PARENT: S&P Assigns 'B-' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating on
Houston, Texas.-based QBS Parent, Inc. (d/b/a Quorum Business
Solutions, Inc.). The outlook is stable.
S&P said, "At the same time, we assigned our 'B' issue-level rating
and '2' recovery rating to the company's first-lien credit
facility, which consists of a $30 million five-year revolving
credit facility and a $230 million seven-year term loan. The '2'
recovery rating indicates our expectation for substantial (70%-90%;
rounded estimate: 80%) recovery in the event of a payment default.
"We also assigned our 'CCC' issue-level rating and '6' recovery
rating to the company's $100 million eight-year second-lien term
loan. The '6' recovery rating indicates our expectation for
negligible (0%-10%; rounded estimate: 0%) recovery in the event of
a payment default.
"Our rating on Quorum primarily reflects the company's high pro
forma leverage, which we estimate will reach about 11x as of the
close of the transaction, before declining to the mid-9x area
through the end of fiscal 2018. Our rating also reflects Quorum's
small operating scale and narrow end-market focus, as well as
relatively lower recurring revenue share and margins compared to
software peers. The company's credit strengths include its
comprehensive software solution, exposure to multiple industry
verticals (upstream, midstream and pipeline), diversified blue-chip
customer base, and strong customer retention with approximately 96%
gross renewal rates.
"The stable outlook on Quorum reflects our expectation that
improved capital spending within the oil and gas industry, and
synergies from the company's recent acquisitions, will cause
leverage to decline to the mid-9x area over the next 12 months. The
stable outlook also reflects our view that the company has adequate
liquidity to fund its growth plans.
"We could lower our rating on Quorum if the company suffers from
slowing demand growth or operational missteps associated with its
recent acquisitions, leading to sustained high leverage or
persistently negative free cash flow. We could also downgrade
Quorum if the firm's liquidity declines such that we no longer view
it as adequate to cover uses of cash."
Quorum's significant leverage strongly limits the prospects for an
upgrade over the next 12 months. However, over the longer term, S&P
could consider raising its rating if the company demonstrated
sustained revenue growth, expanded its EBITDA margins, and
maintained leverage of less than 7x, with free operating cash flow
(FOCF) to debt of more than 5%.
RANCHO EL CONQUISTADOR: Voluntary Chapter 11 Case Summary
---------------------------------------------------------
Debtor: Rancho El Conquistador, LLC
9110 Redwing Dr
Houston, TX 77049-2018
Business Description: Rancho El Conquistador, LLC is a
performance & event venue in Houston, Texas.
Chapter 11 Petition Date: September 4, 2018
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Case No.: 18-35014
Judge: Hon. Eduardo V. Rodriguez
Debtor's Counsel: Patrick Brady, Esq.
JAMES PATRICK BRADY
1100 Nasa Parkway, Suite 211C
Houston, TX 77058
Tel: 281-484-9300
Fax: 281-484-9360
Email: pat@jpatlaw.com
mail@jpatbradylaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Eleazar Cortina, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/txsb18-35014.pdf
RIVER HACIENDA: Future Operations to Fund Plan Payments
-------------------------------------------------------
River Hacienda Holdings, LLC, filed with the U.S. Bankruptcy Court
for the District of Arizona an amended disclosure statement, dated
August 31, 2018, for its chapter 11 plan of reorganization dated
March 26, 2018.
Class 4 under the plan consists of the Disputed Claims of Carroll
Properties, LLC, Foothills Legacy, LLC, Maxwell Real Estate
Holdings, LLC and River Road Properties, LLC. The disputed claims
arose from the Pima County Superior Court judgment for $45,158
attorney's fees in C20163400. The Debtor has pending a motion for
new trial which if successful will resolve such judgment. If such
motion for new trial is unsuccessful, the Debtor will appeal such
judgment. In the event that such appeal is unsuccessful in setting
aside the judgment, Debtors will modify the Plan to set forth terms
of payment of the Disputed Claimants' claims.
The Debtor asserts that there is a basis for classifying Class 3
claimants from Class 4.
There are sound reasons for such classification which is
non-discriminatory. The Class 4 claimant is the only claimant with
a judgment against the Debtor. The Class 4 claimant's judgment is
subject to a pending motion for new trial and a possible appeal. No
Class 3 claimant's rights arise pursuant to a judgment that is
subject to a pending motion for new trial and a possible appeal.
The Class 4 claimant's claims are not substantially similar to the
Class 3 claimants' claims.
The source of funding for the Plan payments will be from the
Debtor's future operations.
A full-text copy of the Amended Disclosure Statement is available
at:
http://bankrupt.com/misc/azb4-18-00136-169.pdf
River Hacienda Holdings, LLC, filed a Chapter 11 petition (Bankr.
D. Ariz. Case No. 18-00136) on January 5, 2018, and is represented
by Alan R. Solot, Esq.
RMR OPERATING: Funder to Contribute $100K to Finance Plan
---------------------------------------------------------
RMR Operating, LLC, Red Mountain Resources, Inc., Cross Border
Resources, Inc., and
Black Rock Capital, Inc. filed a disclosure statement in connection
with their third amended joint plan of reorganization dated August
27, 2018.
The Plan proposes a streamlining of the Debtors operations by
eliminating Red Mountain???s ownership of the operating
subsidiaries, Black Rock, RMR, and Cross Border. If the Plan is
confirmed, Red Mountain will be dissolved and all holders of
Allowed Interests in Red Mountain will receive no distribution
under the Plan. Red Mountain???s ownership of its operating
subsidiaries will be transferred to holders of Allowed Class 4RR
Claims and Allowed Class 4CB Claims making the Stock Election and
to the Plan Funder, StoneStreet. Thus, Black Rock and RMR will
become wholly-owned subsidiaries of Cross Border. Cross Border will
be the new parent entity for the Reorganized Debtors owned by the
Plan Funder, holders of Allowed Class 4RR Claims and Allowed Class
4CB Claims, and any other existing Allowed Interest Holders of
Cross Border.
Allowed Secured Claims of Ad Valorem Taxing Authorities are paid in
full in two equal payments without penalty accruing after the
Petition Date. These payments are to be completed within six months
of the Effective Date.
Holders of claims entitled to priority are paid in full. Certain
such holders, namely employees of RMR and Cross Border, are
provided an option to participate as owners of the Reorganized
Debtors by making the Stock Election. One person, Mr. Folsom, has
filed a Proof of Claim asserting a priority claim against Red
Mountain which exceeds the statutory maximum for such claims. The
Debtors intend to object to this claim in toto.
Interest Burden Payees, Mineral Owners, and Black Shale are
provided unimpaired treatment. That is, all rights of such parties
existing under state law are preserved.
Holders of Allowed General Unsecured Claims against Black Rock and
Red Mountain receive distributions from the Black Rock Available
Cash and the Red Mountain Available Cash, the majority of which is
being contributed by the Plan Funder. The Debtors predict that
based upon the Debtors??? Schedules, this will result in a 16%
distribution to Holders of Allowed Class 6RD Claims and a 100%
distribution to Holders of Allowed Class 6BR Claims. However, if
unscheduled claims are allowed against either of these entities,
distributions could be diminished. General Unsecured creditors of
RMR receive no distribution. Holders of General Unsecured Claims
against Cross Border are paid in full over a 10 year time horizon
beginning one year after the Effective Date.
The Plan Funder will contribute $100,000 to the Plan. Red Mountain,
RMR, Cross Border and Black Rock will each retain sufficient assets
to make the payments called for by the Plan.
Prior to the filing of the amended Disclosure Statement, the United
States Securities and Exchange Commission objected to the original
Disclosure Statement because the Disclosure Statement failed to
contain adequate information to permit creditors and shareholders
to make an informed judgment about the Plan. The SEC pointed out
that the Plan contains an exculpation provision that provides for a
release of non-debtor third party liability in contravention of
Section 524(e) of the Bankruptcy Code and applicable Fifth Circuit
law.
These releases have special significance for public investors
because they allow non-debtors to benefit from a debtor's
bankruptcy by effectively obtaining their own discharges with
respect to past wrongdoing, including violations of the federal
securities laws or breaches of fiduciary duty.
Next, the SEC pointed out that the Plan indicates that the issuance
of equity interests in Cross Border to a third party, StoneStreet,
Inc., in exchange for $100,000 in cash will be exempt from
registration under Section 1145 of the Bankruptcy Code. Such
issuance, however, is not in exchange for an existing claim or
interest of StoneStreet's and therefore on its face does not meet
the requirements of Section 1145. Thus, unless the exculpation
provision and the Debtors' reliance on Section 1145 with respect to
the transfer of Cross Border equity interests to StoneStreet are
deleted from the Plan, the Debtors cannot satisfy the requirement
of Section 1129(a)(1) of the Bankruptcy Code that a plan shall be
confirmed only if it complies with all applicable provisions of
Chapter 11, the SEC argued.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/paeb18-15683-3.pdf
About RMR Operating LLC
RMR Operating, LLC filed a chapter 11 petition (Bankr. N.D. Tex.
Case No. 16-30988) on March 8, 2016. The Debtors operate an energy
company in the acquisition, development, and exploration of oil and
natural gas properties. The Debtors' operation are focused on the
Permian Basin of West Texas and Southeast New Mexico.
The petition was signed by Alan W. Barksdale, president. The Debtor
is represented by Howard Marc Spector, Esq., at Spector & Johnson,
PLLC. At the time of the filing, the Debtor estimated assets and
liabilities at $0 to $50,000.
SCIENTIFIC GAMES: Names James Sottile as New EVP and CLO
--------------------------------------------------------
Scientific Games Corporation announced that James Sottile will join
the company as executive vice president and chief legal officer for
the Company, effective September 4th. Sottile will oversee
Scientific Games' global legal organization and report to
Scientific Games President and CEO Barry Cottle.
Barry Cottle said, "Jim brings more than 30 years of experience
working across multiple industries. He is an accomplished legal
strategist and litigator, as well as an experienced leader. I look
forward to working with him, as he guides our world-class legal
organization to support our strategic objectives and positively
impact our business results. He is a terrific addition to our
executive team. David Smail will be staying on in an advisory role
through the end of the year."
Sottile joins Scientific Games from Jones Day, where he was a
partner in its New York office. He has extensive experience
successfully litigating complex commercial matters, negotiating
positive solutions with regulators and developing legal strategies
to solve critical business issues. Sottile has been named a
notable practitioner by Chambers USA: America's Leading Business
Lawyers since 2005 and has been recognized in The Best Lawyers in
America since 2011.
"I am excited by the opportunity to lead Scientific Games' global
legal organization and work with Barry and his leadership team to
ensure the Company continues its global leadership in Gaming and
Lottery and is successful in its efforts to drive innovation and
benefit all key stakeholders. My passion is leading winning teams,
and I am thrilled to lead and advance the success of Scientific
Games' great legal team," said James Sottile.
About Scientific Games
Based in Las Vegas, Nevada, Scientific Games Corporation
(NASDAQ:SGMS) -- http://www.scientificgames.com/-- is a gaming
entertainment company offering a portfolio of game content,
advanced systems, cutting-edge platforms and professional services.
The company offers technology-based gaming systems, digital
real-money gaming and sports betting platforms, casino table games
and utility products and lottery instant games, and a leading
provider of games, systems and services for casino, lottery and
social gaming. Committed to responsible gaming, Scientific Games
delivers what customers and players value most: trusted security,
engaging entertainment content, operating efficiencies and
innovative technology.
Scientific Games reported a net loss of $242.3 million for the year
ended Dec. 31, 2017, compared to a net loss of $353.7 million for
the year ended Dec. 31, 2016. As of June 30, 2018, Scientific
Games had $7.61 billion in total assets, $9.88 billion in total
liabilities and a total stockholders' deficit of $2.26 billion.
SONIC AUTOMOTIVE: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on August 27, 2018, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Sonic Automotive, Inc. to BB- from B. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
Sonic Automotive, Inc. is a Fortune 500 company based in Charlotte,
North Carolina, and is the fifth largest automotive retailer in the
United States.
SPECIALTY BUILDING: S&P Affirms 'B' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Duluth,
Ga.-based Specialty Building Products Holdings LLC. The rating
outlook is stable.
At the same time, S&P assigned its 'B' issue-level rating to its
proposed $500 million senior secured term loan due 2025. The '3'
recovery rating on the senior secured term loan indicates S&P's
expectation for meaningful (50%-70%; rounded estimate: 55%)
recovery to lenders in the event of a default. The ABL is unrated.
The 'B' issuer credit rating and stable rating outlook on Specialty
reflect the company's niche position in the highly fragmented,
intensely competitive wood products distribution industry, as well
as its high leverage above 5x and its ownership by a financial
sponsor. The rating also reflects the company's small size relative
to other building material distributors, such as LBM Borrower LLC,
despite this transaction doubling its revenue base and improving
its profitability. Its product suite, with significant specialty
product mix such as mouldings and exterior trim, and balanced
end-market exposure with about 48% of sales from residential new
construction and commercial/industrial end markets, as well as the
entrenched relationships with both suppliers and other distributors
in the channel, offset this.
S&P said, "The stable rating outlook reflects our expectation that
the company will generate about $30 million in free cash flow while
maintaining total leverage of about 5.5x and EBITDA interest
coverage of about 2x over the next 12 months, pro forma for recent
acquisitions. The outlook also reflects our expectation that
liquidity will remain adequate to meet all of the company's
obligations and that availability under the secured revolving
credit facility will be adequate to fund working capital needs.
"A negative rating action is less likely in the next 12 months,
given our favorable outlook for home construction and remodeling
spending. However, we could take such an action if the U.S. housing
recovery stalls and forecast EBITDA falls in excess of 25% below
our 2018 forecast, causing leverage to deteriorate above 7x or
EBITDA interest coverage to decline below 2x.
"We are unlikely to upgrade the company over the next year given
its ownership by a private equity firm and an acquisitive financial
policy. Based on our financial sponsor criteria, we would continue
to view financial risk as highly leveraged even if debt to EBITDA
declined below 5x. However, a transformative event, such as another
major acquisition, could cause us to revisit our assessment of the
rating."
T.C.'S GRILL: Seeks Permission on Interim Use of Cash Collateral
----------------------------------------------------------------
T.C.'s Grill, Inc. seeks permission from the U.S. Bankruptcy Court
for the Eastern District of Tennessee to use the cash collateral on
interim basis.
The Debtor seeks to utilize the revenues, receipts, and profits
from the business to the extent they constitute cash collateral,
for the purpose of paying the ongoing expenses of operating its
business, including prepetition and post-petition payroll and to
pay administrative expenses in this case, including professional
fees and expenses, and if directed by the Court to pay secured
creditors.
The Debtor needs to utilize cash collateral on an emergency basis
for the payment of (a) prepetition payroll in the amount of $9,942,
(b) post-petition payroll in the amount of $8,208; (c) payments to
food and food product vendors in the amount of $15,015 which
represents food and food product vendors for the week of July 22
through July 28, and July 29 through Aug. 4th.
The Debtor is indebted to following entities:
(A) Gulf Coast Bank and Trust Company, as successor to
CapitalSpring SBLC, LLC, in the approximate amount of $197,000.
Gulf Coast has a lien on all of the Debtor's presently owned and
existing and hereafter acquired and arising (a) accounts; (b)
inventory; (c) general intangibles; (d) fixtures; (e) equipment;
(f) replacements, betterments, substitutions and renewals of, and
additions to, any of the forgoing; (g) proceeds arising of or with
respect to the foregoing; and (h) all products of the foregoing.
Gulf Coast has a security interest in the cash collateral of
Debtor.
(B) U.S. Foods, Inc., in the approximate amount of $21,475.
US Foods has a lien on all of the Debtor's personal property, both
now owned, or at any time in the future acquired, wherever located,
including but not limited to accounts, goods, inventory, equipment,
fixtures and vehicles, together with the proceeds and products of
any of them. US Foods has a security interest in the cash
collateral of Debtor.
(C) On Deck Capital, Inc., in the approximate amount of
$36,627. On Deck has a lien on all of the Debtor's assets now
owned or hereafter acquired and wherever located. As a result On
Deck may have a security interest in the cash collateral of
Debtor.
(D) Performance Food Group, Inc., in the approximate amount of
$675. Performance Food has a lien on all inventory of Purchaser
now owned or hereafter acquired that is hold (sic) for sale or
lease or held as raw materials, work in progress or materials used
in connection with Purchaser's business; all accounts of Purchaser
now existing or hereafter at any time arising; all fixtures, all
equipment, goodwill, intangibles and intellectual properties of
Purchaser now owned or existing of (sic) hereafter at any time
acquired or arising; and all proceeds and products of the
foregoing. Performance Food may have a security interest in the
cash collateral of Debtor.
A full-text copy of the Debtor's Motion is available at
http://bankrupt.com/misc/tneb18-32229-25.pdf
About T.C.'s Grill
T.C.'s Grill, Inc., operates a restaurant known as TC's Grill
located at located at 2514 Old Niles Ferry Rd., Maryville, TN
37803.
T.C.'s Grill filed a Chapter 11 petition (Bankr. E.D. Tenn. Case
No. 18-32229), on July 21, 2018. In the petition signed by Steven
A. Nelson, president, the Debtor estimated less than $50,000 in
assets and $100,000 to $500,000 in liabilities. The Debtor is
represented by T.C.'s Grill, Inc., Esq. of Scott Law Group, PC.
THOMAS NICOL: Sept. 18 Hearing on Disclosure Statement
------------------------------------------------------
The hearing to consider approval of the disclosure statement
explaining Thomas Nicol Company, Inc.'s plan is set for September
18, 2018, at 2:00 P.M.
Deadline for objections to disclosure statement is September 4.
About Thomas Nicol Company, Inc.
Thomas Nicol Company is a New Jersey corporation presently headed
by Tucker Nicol, its president. Thomas Nicol's principal assets
are located at 1101 Shore Dr Brielle, New Jersey.
Thomas Nicol Company filed a Chapter 11 petition (Bankr. D.N.J.
Case No. 17-26908) on August 21, 2017. The petition was signed by
Tucker B. Nicol, president. The Hon. Christine M. Gravelle presides
over the case. Timothy P. Neumann, Esq., at Broege, Neumann,
Fischer & Shaver, LLC represents the Debtor as counsel. Berry
Sahradnik Kotzas & Benson, PC, as special counsel.
At the time of filing, the Debtor estimates $1 million to $10
million both in assets and liabilities.
TK RESTAURANT: Ch. 11 Trustee Hires Arthur Lander as Accountant
---------------------------------------------------------------
Marc Albert, the Chapter 11 Trustee of TK Restaurant Management,
Inc., seeks authority from the U.S. Bankruptcy Court for the
District of Columbia to employ Arthur Lander, C.P.A., P.C. as
accountant to the Trustee.
The Trustee requires the firm to provide accounting services to
assist it with respect to taxation, accounting, and filing
matters.
Services to be rendered by Arthur Lander:
(a) compiling books and records;
(b) preparing and filing all necessary tax returns on behalf
of the Trustee;
(c) advising the Trustee of his duties and responsibilities
under the Internal Revenue Code;
(d) working with the Trustee in assessing the Debtor's
financial condition;
(e) preparing monthly reports, and other matters that arise in
the administration of this Chapter 11 case in bankruptcy relating
to accounting matters.
The accounting firm has received no retainer either pre-petition or
post-petition.
The Trustee has agreed that the Debtor's estate will pay Arthur
Lander C.P.A., P.C. for any time and out-of-pocket expenses
according to these hourly rates:
Arthur Lander $450
Thai Ton $150
Chris Mueller $120
Scott Johnson $120
Bookkeeping $50
The hourly rate will vary according to the complexity of the task
and individual working on the matter.
The firm attests that it is a disinterested person within the
meaning of 11 U.S.C. sec 327.
Mr. Lander can be reached at:
Arthur Lander, Esq.
Attorney for Arthur Lander CPA PC
DC Bar No. 421860
300 N. Washington St. #104
Alexandria, VA. 22314
Tel: 703-486-0700
About TK Restaurant Management
TK Restaurant Management, Inc., is a corporation duly organized
under the laws of the District of Columbia. The Debtor owns and
operates the restaurant known as "Catch 15," which has been located
in the historic Peyser Building near the White House since 2013,
providing seafood dishes as well as fine Italian cuisine. The
Restaurant is operated by Karen Kowkabi and her husband, Gholam
("Tony") Kowkabi, an experienced restauranteur for more than thirty
years.
In September 2014, to preserve its business and stay collection
efforts by the District of Columbia, TK Restaurant Management filed
a Chapter 11 bankruptcy case In re TK Management, Inc., Case No.
14-0562 (USBC DC). With improved business and reorganization
efforts, TK Restaurant Management was able to confirm its Chapter
11 plan on July 22, 2015.
TK Restaurant Management again filed a Chapter 11 petition (Bankr.
District of Columbia Case No. 17-00269) on June 11, 2018, and is
represented by Richard L. Gilman, Esq., in Landover, Maryland.
On July 5, 2018, the Bankruptcy Court issued an order approving the
appointment of Marc E. Albert as the Chapter 11 Trustee of the
Debtor. The Trustee retained Stinson Leonard Street LLP, as
counsel.
Marc E. Albert, the Chapter 11 Trustee of TK Restaurant Management,
hired Stinson Leonard Street LLP, as counsel to the Trustee.
TREATMENT CENTER: Taps Sharon Bradley as Accountant
---------------------------------------------------
The Treatment Center of the Palm Beaches, LLC, sought and obtained
approval from the United States Bankruptcy Court for Southern
District of Florida, West Palm Beach Division, to employ Sharon
Bradley, CPA and the accounting firm of Daszkal Bolton LLP as
accountants.
The Accountants have agreed to accept compensation on an hourly
basis at the firm's standard billing rate of $240 per hour for
preparation and filing of yearly Federal Income Tax Returns and
other accounting matters, plus reimbursement necessary and actual
expenses, from the bankruptcy estate pursuant to the provisions of
the Bankruptcy Code.
Daszkal Bolton also has agreed to prepare the 2017 tax return for
the Debtor for a flat fee of $9,000 and the 2017 tax return for the
Adolescent Treatment Center for $3,750 for a combined total of
$12,750, which will be paid by the Treatment Center upon
application to the Bankruptcy Court after completion of the tax
returns.
Prior to filing this Chapter 11 bankruptcy proceeding, Daszkal
Bolton performed various tax services for the Debtor as well as for
separate business entity Adolescent Treatment Center of the Palm
Beaches, LLC. The Debtor has a 10% equity investment in Adolescent
Treatment Center and although the businesses are separate the
results of Adolescent Treatment Center is vital to the tax
preparation of the Debtor. Daszkal Bolton also serves as
Accountant for the Debtor's 401(k) plan.
In 2016 and 2017, Daszkal Bolton LLP was engaged by the company to
perform an audit for both entities as well as tax preparation and
other services for the 401(k) plan. The Debtor and the 401(k) plan
currently owe Daszkal Bolton $37,550.00 for services rendered
pre-petition, of which $22,250.00 will be paid from the 401(k) plan
and the remaining $15,300.00 will be paid from Kathleen D. Chernak
and Alan P. Kenney, as Co-Trustees of the Michael H. Chernak
Marital Trust u/a/t March 28, 2006 and/or Kathleen D. Chernak and
Alan P. Kenney, as Co-Trustees of the Michael H. Chernak Family
Trust u/a/t March 28, 2006. Daszkal Bolton will waive any amount
due by the Debtor for pre-petition services.
Daszkal Bolton is the Certified Public Accountants for:
-- creditor Barry Laramee,
-- interested party William Russell, and
-- Chief Executive Officer Kathleen Chernak.
Under present circumstances and reasonable foreseeable
circumstances, the firm attests it has no interest adverse to the
Debtor.
Daszkal Bolton can be reached at:
Sharon Bradley, CPA
DASZKAL COLTON LLP
490 Sawgrass Corporate Pkwy, Suite 200
Sunrise, FL 33325
Tel: (561) 886-52763
Email: sbradley@dbllp.com
About The Treatment Center of The Palm Beaches
The Treatment Center of the Palm Beaches, LLC, located in West Palm
Beach, Florida -- https://www.thetreatmentcenter.com/ -- is an
addiction treatment center whose mission is to transform the lives
of every individual and family member that walks through its doors.
Since 2009, the Treatment Center has offered custom treatment
programs for drugs, alcohol, trauma, mental health, and other
addictions.
The Treatment Center of the Palm Beaches filed a Chapter 11
petition (Bankr. S.D. Fla. Case No. 18-14622) on April 19, 2018. In
the petition signed by Judi Gargiulo, manager, the Debtor disclosed
$11.07 million in total assets and $6.12 million in total
liabilities. The case is assigned to Judge Erik P. Kimball. Robert
C. Furr, Esq., at Furr & Cohen, is the Debtor's counsel.
Judge Erik P. Kimball authorized The Treatment Center of the Palm
Beaches, LLC's bidding procedures in connection with the sale of
substantially all assets to Palm Beach Recovery Center, LLC, for
$7.8 million, subject to overbid.
TSC GREEN ACRES: Plan Outline Okayed, Plan Hearing on Oct. 23
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland is set to
hold a hearing on Oct. 23 to consider approval of the Chapter 11
plan for TSC/Green Acres Road, LLC.
The hearing will be held at 10:00 a.m, at the U.S. Courthouse,
Courtroom 3E.
The court had earlier approved the company's disclosure statement,
allowing it to start soliciting votes from creditors.
The order, signed by Judge Thomas Catliota on Aug. 29, set an Oct.
3 deadline for creditors to file their objections and submit
ballots of acceptance or rejection of the plan.
About TSC/Green Acres Road LLC
Based in Columbia, Maryland, TSC/Green Acres Road LLC owns in fee
simple interest subdivided lots located at 7345 Green Acres Drive,
Glen Burnie, Maryland, valued by the company at $2.08 million. Its
affiliate TSC/Nester's Landing is also the fee simple owner of a
property located at 1915 Turkey Point Road, Baltimore County
(consisting of subdivided lots) valued at $1.89 million.
TSC/Green Acres Road sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Md. Case No. 17-25912) on November 28,
2017. In the petition signed by Gerard McDonough, trustee for AN&J
Family Trust, the Debtor disclosed $2.57 million in assets and $2.6
million in liabilities.
Judge Thomas J. Catliota presides over the case. The Debtor is
represented by David W. Cohen Law Office.
TSC/NESTER'S LANDING: Plan Outline Okayed, Plan Hearing on Oct. 23
------------------------------------------------------------------
TSC/Nester's Landing, LLC is now a step closer to emerging from
Chapter 11 protection after a bankruptcy judge approved the outline
of its plan of reorganization.
Judge Thomas Catliota of the U.S. Bankruptcy Court for the District
of Maryland on Aug. 30 gave the thumbs-up to the disclosure
statement after finding that it contains "adequate information."
The order set an Oct. 3 deadline for creditors to file their
objections and submit ballots of acceptance or rejection of the
plan.
A court hearing to consider confirmation of the plan is scheduled
for Oct. 23, at 10:00 a.m. The hearing will take place at the U.S.
Courthouse, Courtroom 3E.
About TSC/Nester's Landing LLC
TSC/Nester's Landing is the fee simple owner of a property located
at 1915 Turkey Point Road, Baltimore County (consisting of
subdivided lots) valued at $1.89 million. Its affiliate TSC/Green
Acres Road, LLC owns in fee simple interest subdivided lots located
at 7345 Green Acres Drive, Glen Burnie, Maryland, valued by the
company at $2.08 million.
TSC/Nester's Landing filed a Chapter 11 bankruptcy petition (Bankr.
D. Md. Case No. 17-25913) on Nov. 28, 2017. In the petition signed
by Gerard McDonough, trustee for AN&J Family Trust, the Debtor
disclosed total assets of $1.89 million and total liabilities of
$1.69 million.
Judge Thomas J. Catliota presides over the case. The Debtor is
represented by David W. Cohen Law Office.
U.S. STEEL: Egan-Jones Hikes Senior Unsecured Ratings to BB-
------------------------------------------------------------
Egan-Jones Ratings Company, on August 31, 2018, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by United States Steel Corporation to BB- from B+.
United States Steel Corporation, more commonly known as U.S. Steel,
is an American integrated steel producer headquartered in
Pittsburgh, Pennsylvania, with production operations in the United
States, Canada, and Central Europe.
VOYA FINANCIAL: Fitch Assigns BB+ Rating on $325MM Preferred Stock
------------------------------------------------------------------
Fitch Ratings assigns a 'BB+' rating to Voya Financial Inc.'s new
issuance of approximately $325 million fixed rate reset
non-cumulative perpetual preferred stock. Existing ratings assigned
to Voya and its affiliates are unaffected by the rating action.
Fitch last reviewed Voya's ratings on July 31, 2018.
KEY RATING DRIVERS
Voya's offering of fixed rate non-cumulative preferred shares is
the company's first of this security type. The preferred shares are
rated three notches below Voya's Long-Term Issuer Default Rating
(IDR), reflecting two notches for the baseline recovery assumption
of 'Poor' and one additional notch reflecting the 'Minimal'
non-performance risk assessment.
Dividends on the preferred shares are not cumulative and are not
mandatory. If declared, Voya will pay dividends on the preferred
shares at a fixed rate. The preferred shares do not have a maturity
date and Voya is not required to redeem them. Fitch considers the
preferred shares to be perpetual. Based on Fitch's rating criteria,
the preferred shares receive 100% equity credit in Fitch's
financial leverage calculations.
The net proceeds of the offering are expected to be used to fund
the senior debt tender that was announced at the same time. Pro
forma financial leverage as of June 30, 2018 is expected to be
lower at approximately 27%.
Fitch Ratings affirmed Voya's life insurance subsidiaries' Insurer
Financial Strength (IFS) ratings at 'A' (Strong) with a Stable
Outlook on July 31, 2018. Fitch also affirmed the ratings for
Voya's holding company. The Rating Outlook for the holding company
remained Negative, reflecting the holding company's financial
profile relative to rating expectations.
RATING SENSITIVITIES
The following sensitivities could result in a downgrade of Voya's
holding company ratings:
-- Financial leverage exceeding 30%;
-- GAAP adjusted operating earnings-based interest coverage below
6x.
The following sensitivities could result in a downgrade to Voya's
other rated life insurance subsidiaries:
-- Sustained decline in operating ROE below 6%;
-- A decline in reported RBC below 375%, and a Prism capital
model score at the low end of 'Strong';
The key rating sensitivities that could result in an upgrade
include:
-- Continued growth in operating profitability which leads to an
improvement in operating ROE to over 11%;
-- Sustained maintenance of GAAP adjusted operating
earnings-based interest coverage of more than 10x;
-- Reported RBC above 450%, a Prism Capital model score of 'Very
Strong', and financial leverage below 25%.
FULL LIST OF RATING ACTIONS
Fitch has assigned the following rating:
Voya Financial, Inc.
-- Fixed rate non-cumulative perpetual preferred stock 'BB+'.
Fitch maintains the following ratings with a Stable Outlook:
Voya Retirement Insurance and Annuity Company
ReliaStar Life Insurance Company
ReliaStar Life Insurance Company of New York
Security Life of Denver Insurance Company
-- Insurer Financial Strength 'A'.
Voya Holdings Inc.
-- Senior unsecured notes 'A+'.
Fitch maintains the following ratings with a Negative Outlook:
Voya Financial, Inc.
-- Long-Term IDR 'BBB+';
-- Senior unsecured notes 'BBB';
-- Junior subordinated notes 'BB+'.
Equitable of Iowa Companies, Inc.
-- Long-Term IDR 'BBB+'.
Equitable of Iowa Companies Capital Trust II
-- Trust preferred stock 'BB+'.
Peachtree Corners Funding Trust
-- Pre-capitalized trust securities 'BBB'.
VOYA FINANCIAL: Moody's Rates $325MM Preferred Stock 'Ba2(hyb)'
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 (hyb) rating to the
expected $325 million non-cumulative perpetual preferred stock
issuance of Voya Financial, Inc. (Voya, senior unsecured shelf at
(P)Baa3, stable outlook). The net proceeds will be primarily used
to repay approximately $325 million of senior notes that the
company has tendered for concurrent with this offering. The outlook
for Voya's ratings is stable.
RATINGS RATIONALE
The rating agency noted that Voya's ratings are based on the
group's established position in retirement savings market, with
leading positions in the specialized 403(b) and 457 retirement plan
sectors. Given the sale of the firm's legacy variable annuity
business (CBVA), announced at the end of December 2017, Moody's
expects Voya's earnings to become markedly more stable, and its
core businesses to improve within its expectations for its ratings.
These strengths are mitigated by Voya's much narrower business
profile and footprint after the transaction, as well as its greater
reliance on narrow-margined, highly competitive fee-based
businesses, given the company's additional plan to consider
strategic alternatives for its existing life insurance business. In
addition, Voya remains subject to shareholder pressures for higher
share repurchases and increased quarterly shareholder dividends,
which could increase leverage and pressure somewhat weak (although
improving ) earnings and cash coverage metrics.
RATING DRIVERS
The following factors could lead to an upgrade of Voya and its
insurance subsidiaries: consolidated adjusted financial leverage no
greater than 25% at the consolidated Voya level, with earnings and
cash coverage of at least 8x and 5x, respectively, on a consistent
basis; steady profitability, with return-on-capital ratio (ROC) of
at least 8% on a consistent basis, excluding one-time items; RBC
ratio consistently at or above 425% (company action level), while
maintaining good capital adequacy at onshore captives; greater
business diversification, with less dependence on fee-based
products.
The following could lead to a review for downgrade of Voya and its
insurance subsidiaries: total leverage consistently above 30%, with
earnings and cash coverage consistently less than 5x and 3x,
respectively; ROC's consistently below 5%; consolidated RBC ratio
falling below 375% (company action level, excluding the captive,
which, separately, must be adequately capitalized); share
repurchase activity, and/or common stock dividends consistently
funded by debt (vs. retained earnings).
Issuer: Voya Financial, Inc.
Assignment:
Non-cumulative Preferred Stock, Ba2(hyb)
The principal methodology used in this rating was Life Insurers
published in May 2018.
Voya Financial, Inc. is a publicly owned life insurance group,
headquartered in New York City. At June 30, 2018, the company
reported consolidated GAAP assets of approximately $163 billion and
shareholders' equity of approximately $9 billion.
WATAUGA RECOVERY: Seeks Cash Access Pending Assets Sale
-------------------------------------------------------
In the U.S. Bankruptcy Court of Eastern District of Tennessee,
Watauga Recovery Centers, Inc., filed a motion for interim and
final orders authorizing the company's limited use of cash
collateral.
On Aug. 22, 2018, Watauga filed a motion to approve the sale of
substantially all assets. The motion is scheduled for hearing on
Sept. 25, 2018. If the asset sale is approved and if the
transaction closes as contemplated, the purported secured
indebtedness will be paid in full.
SunTrust Bank (owed approx. $248,000) and Pinnacle Bank (approx.
$210,944) have filed UCC financing statements with the office of
the Tennessee Secretary of State.
The Debtor has yet to finally determine whether SunTrust Bank or
Pinnacle Bank has an interest in the monies which it seeks
permission to use in the cash collateral motion. If SunTrust Bank
and/or Pinnacle Bank have an interest in such monies, the monies
are cash collateral under 11 U.S.C. Sec. 363(a).
Considering the value of its assets, the company claims that
creditors, SunTrust Bank and Pinnacle Bank are adequately
protected. Nevertheless, the Debtor proposes to grant both
SunTrust Bank and Pinnacle Bank, as adequate protection of use of
cash collateral, a replacement postpetition security interests.
A full-text copy of the Motion is available at:
http://bankrupt.com/misc/tneb18-51414_39_Watuga_Cash_M.pdf
About Watauga Recovery Centers
Based in Johnson City, Tennessee, Watauga Recovery Centers, Inc. --
http://www.wrchope.org/-- is engaged in the business of managing 8
clinics that provide substance use treatment services for
individuals with drug addiction and co-occurring mental/behavioral
health issues. The medical clinics are located in Tennessee,
Virginia and North Carolina.
On Aug. 16, 2018, Watauga Recovery Centers filed a Chapter 11
petition (Bankr. E.D. Tenn. Case No. 18-51414). The Hon. Marcia
Phillips Parsons is the case judge. HUNTER, SMITH & DAVIS, LLP,
led by Mark S. Dessauer, Esq., is the Debtor's counsel. The Debtor
estimated $1 million to $10 million in assets and debt as of the
bankruptcy filing.
WILLIAM B LAWTON: Court Confirms Chapter 11 Liquidating Plan
------------------------------------------------------------
William B. Lawton Company, L.L.C. has won confirmation of its
Chapter 11 Small Business Plan.
The Hon. Robert Summerhays entered the confirmation order on August
30.
The Debtor is seeking appointment of Chapter 11 Trustee, H. Kenneth
Lefoldt, Jr. as Liquidation Trustee Pursuant to the Joint Plan of
Liquidation. The Court will take up this request at a hearing for
October 10.
The Joint Plan provides for the liquidation of the Debtors' assets
to pay creditors. In July, debtor River Oaks Exploration, L.L.C.,
sought and obtained Court approval to employ Oil & Gas Asset
Clearinghouse, LLC, to market and sell its oil and gas leases and
wells. The Court also approved bidding procedures, including the
conduct of a continuous online auction of the Oil and Gas
Interests. River Oaks listed interests in certain mineral leases
in Burleson, Harris and Lee Counties, Texas; Bryan and Marshall
Counties, Oklahoma; and Bossier, Lafourche, and St. Charles
Parishes, Louisiana. The Debtor valued these interests at $0.00 in
its Schedules of Assets and Liabilities (Schedule B).
The online Auction commenced July 30, 2018. According to the
Auctioneer's Web site, the assets in Lee and Bryan Counties have
been sold. The Auctioneer is currently accepting offers for the
assets in Bossier and Marshall Counties.
William B. Lawton Company, L.L.C., River Oaks Exploration, L.L.C.
and Rayville Resources, L.L.C. filed with the U.S. Bankruptcy Court
for the Western District of Louisiana a joint plan of liquidation
and incorporated disclosure statement dated April 9, 2018. Class 3
under the joint liquidation plan consists of the general unsecured
claims. Unless otherwise agreed to by the Debtors or, after the
Effective Date, the Liquidation Trustee and such Holder, the
Liquidation Trustee will pay to each Holder of an Allowed General
Unsecured Claim its Pro Rata share of any proceeds available for
distribution by the Liquidation Trust. General Unsecured Claims
have been filed against Lawton by Alltex Exploration, Inc., Flora
Trahan, Grace Ranch, Inc., Ira Ellender, Kaiser Francis Oil Co.
(claim amended to change debtor from Lawton to River Oaks), and
Ruby Gauley. Additionally, there is an undisputed, non-contingent,
liquidated claim against Lawton by Tower Land Company, LLC listed
in Lawton's Amended Schedule F. Unsecured Claims have been filed
against River Oaks by Flora Trahan, Grace Ranch, Inc., Ira
Ellender, Kaiser Francis Oil Co. (claim amended to change debtor
from Lawton to River Oaks), and Ruby Gauley. Unsecured Claims have
been filed against Rayville by Flora Trahan, Grace Ranch, Inc., Ira
Ellender, and Ruby Gauley. Class 3 is impaired under the plan.
A full-text copy of the Disclosure Statement explaining the Plan is
available at:
http://bankrupt.com/misc/lawb17-20948-86.pdf
William B. Lawton Co.
William B. Lawton Co., LLC, River Oaks Exploration, LLC, and
Rayville Resources, LLC, are engaged in the oil and gas extraction
business. They sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. La. Case Nos. 17-20948 to 17-20950) on
Oct. 10, 2017. In the petition signed by William T. Drost, their
president, William B. Lawton estimated assets of less than $500,000
and liabilities of $1 million to $10 million. Judge Robert
Summerhays presides over the cases. Lisa M. Hedrick, Esq., at
Adams and Reese LLP, serves as Chapter 11 counsel to the Debtors.
WILLIAM B LAWTON: OG Clearinghouse Okayed as Auctioneer
-------------------------------------------------------
William B. Lawton Company, L.L.C., and its affiliated debtors
sought and obtained permission from the United States Bankruptcy
Court for Western District of Louisiana to employ Oil & Gas Asset
Clearinghouse, LLC as auctioneer to sell debtor River Oaks
Exploration, L.L.C.'s oil and gas leases and wells.
OG Clearinghouse has sold, and continues to sell, the Properties
through a continuous online Auction, for which Clearinghouse will
receive a fee as follows:
GROSS SALES PROCEEDS AUCTION FEE DUE
-------------------- ---------------
$1-$100,000 Greater of $100 or 9.5%
$100,001-$500,000 5.0%
$500,001-$2,000,000 4.0%
>$2,000,001 3.0%
River Oaks listed interests in certain mineral leases in Burleson,
Harris and Lee Counties, Texas; Bryan and Marshall Counties,
Oklahoma; and Bossier, Lafourche, and St. Charles Parishes,
Louisiana. The Debtor valued these interests at $0.00 in its
Schedules of Assets and Liabilities (Schedule B).
The online Auction commenced July 30, 2018. According to the
Auctioneer's Web site, the assets in Lee and Bryan Counties have
been sold. The Auctioneer is currently accepting offers for the
assets in Bossier and Marshall Counties.
OG Clearinghouse attests that it is a "disinterested person", as
such term is defined in section 101(14) of the Bankruptcy Code and
as required under section 327(a) of the Bankruptcy Code, and
neither holds nor represents an interest adverse to the Debtor and
its estate, and Clearinghouse has no connection to the Debtor, the
bankruptcy estate, or its significant creditors.
OG Clearinghouse may be reached at:
Oil & Gas Asset Clearinghouse, LLC
1235 North Loop West, Suite 510
Houston, TX 77008
Tel: (281) 873-4600
http://www.ogclearinghouse.com/
William B. Lawton Co.
William B. Lawton Co., LLC, River Oaks Exploration, LLC, and
Rayville Resources, LLC, are engaged in the oil and gas extraction
business. They sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. La. Case Nos. 17-20948 to 17-20950) on
Oct. 10, 2017. In the petition signed by William T. Drost, their
president, William B. Lawton estimated assets of less than $500,000
and liabilities of $1 million to $10 million. Judge Robert
Summerhays presides over the cases. Lisa M. Hedrick, Esq., at
Adams and Reese LLP, serves as Chapter 11 counsel to the Debtors.
WORD INTERNATIONAL: Oct. 4 Hearing on Proposed Plan Outline
-----------------------------------------------------------
Chief Bankruptcy Judge David R. Duncan will convene a hearing on
Oct. 4, 2018 at 11:00 a.m. to consider the approval of Word
International Ministries' disclosure statement explaining its
reorganization plan filed on August 23, 2018.
Sept. 27, 2018 is fixed as the last day for filing and serving
written objections to the disclosure statement.
About Word International Ministries
Word International Ministries is a religious organization based in
Sumter, South Carolina. World International filed a Chapter 11
petition (Bankr. D.S.C. Case No. 17-04845) on Sept. 29, 2017.
Melody DuRant, its trustee manager, signed the petition. At the
time of filing, the Debtor estimated $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. The Hon. David
R. Duncan presides over the case. Reid B. Smith, Esq., of Bird &
Smith PA, is the Debtor's bankruptcy counsel. No official
committee of unsecured creditors has been appointed in the Chapter
11 case.
XTRALIGHT MANUFACTURING: Cash on Hand, Exit Facility to Fund Plan
-----------------------------------------------------------------
XtraLight Manufacturing, Ltd. submits its first amended disclosure
statement in support of its proposed plan of reorganization.
If the Plan is confirmed by the Bankruptcy Court and consummated,
(A) Administrative Claims of Professionals and the United States
Trustee will be paid in cash in full; (B) Priority Claims will be
paid in full in cash when due; (C) Allowed Claims of Ad Valorem
taxing authorities will be paid when due; (D) the Allowed Claim of
Compass Bank will be purchased by Texas Capital Bank, N.A. on the
Effective Date; (E) the Allowed Claims of the Boston Litigation
Plaintiffs will be paid a total of $410,000 with $300,000 due on
the Effective Date, $55,000 due six months after the Effective
Date, and $55,000 being due twelve months after the Effective Date;
(F) Allowed Claims of General Unsecured Creditors will be paid in
full in cash within 30 days of the Effective Date; and (G) Allowed
General Unsecured Affiliate Claims will be paid in full on a
Pro-Rata basis over three years.
Part of the means of execution of the Plan includes the purchase of
Compass Bank's Class 1 Claim by Texas Capital Bank, N.A. In
addition, XtraLight's incurrence of exit financing after the
administrative closing of the Bankruptcy Case will be used to repay
other Claimants. Accordingly, Texas Capital Bank, N.A. will become
the secured creditor of Reorganized XtraLight.
Reorganized XtraLight will fund distributions under the Plan as
follows:
* XtraLight will use cash on hand, in its discretion, to fund
distributions to certain Holders of Claims against the XtraLight in
accordance with the Plan.
* On and as a condition to the Effective Date, TCB will
purchase the DIP Revolving Credit Facility from Compass.
Reorganized XtraLight, Services, and Cay Capital will enter into
exit financing with TCB.
Reorganized XtraLight may use the proceeds of the Exit Facility for
any purpose permitted by the Exit Facility documents, including the
funding of distributions under the Plan and satisfaction of ongoing
working capital needs.
A full-text copy of the First Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/txsb18-31857-153.pdf
A copy of the original Disclosure Statement from PacerMonitor.com
is available at https://tinyurl.com/y7jh85or at no charge.
About XtraLight Manufacturing
Founded in 1986, XtraLight Manufacturing, Ltd. --
http://www.xtralight.com/-- designs, develops, and manufactures
lighting products for commercial, retail, institutional, and
industrial lighting projects. Based in Houston, Texas, XtraLight
offers a complete line of LED lighting solutions including indoor
LED, outdoor LED, architectural LED and fluorescent.
XtraLight Manufacturing filed a Chapter 11 petition (Bankr. S.D.
Tex. Case No. 18-31857) on April 11, 2018. In the petition signed
by Jerry Caroom, president and manager of XLM Management, LLC,
Debtor's general partner, the Debtor estimated assets and
liabilities at $10 million to $50 million. The case is assigned to
Judge Marvin Isgur. Hoover Slovacek LLP is the Debtor's bankruptcy
counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Joan Marie Stewart
Bankr. S.D. Ala. Case No. 18-03450
Chapter 11 Petition filed August 24, 2018
represented by: Robert M. Galloway, Esq.
GALLOWAY WETTERMARK EVEREST & RUTENS, LLP
E-mail: bgalloway@gallowayllp.com
In re Kenneth G. Blackwell and Kathleen B. Blackwell
Bankr. N.D. Cal. Case No. 18-51892
Chapter 11 Petition filed August 24, 2018
represented by: Lars T. Fuller, Esq.
THE FULLER LAW FIRM
E-mail: Fullerlawfirmecf@aol.com
In re Mark R. Bush
Bankr. N.D. Ind. Case No. 18-31541
Chapter 11 Petition filed August 24, 2018
represented by: Jay Lauer, Esq.
E-mail: jay@jaylauerlaw.com
In re Donald Shane Winfrey
Bankr. W.D. La. Case No. 18-31369
Chapter 11 Petition filed August 24, 2018
represented by: Joseph Richard Moore, Esq.
E. ORUM YOUNG LAW, LLC
E-mail: ecf1@eorumyoung.com
In re The Gathering Place of Columbus
Bankr. S.D. Ohio Case No. 18-55347
Chapter 11 Petition filed August 24, 2018
See http://bankrupt.com/misc/ohsb18-55347.pdf
represented by: J Matthew Fisher, Esq.
ALLEN, KUEHNLE STOVALL & NEUMAN LLP
E-mail: fisher@aksnlaw.com
In re Alaa E Noeman
Bankr. W.D. Tenn. Case No. 18-27106
Chapter 11 Petition filed August 24, 2018
represented by: Toni Campbell Parker, Esq.
E-mail: tparker002@att.net
In re Elwood Wray Johnson
Bankr. E.D. Va. Case No. 18-12911
Chapter 11 Petition filed August 24, 2018
represented by: Steven B. Ramsdell, Esq.
TYLER, BARTL & RAMSDELL, P.L.C.
E-mail: sramsdell@tbrclaw.com
In re 9871 Jamaica Drive, LLC
Bankr. S.D. Fla. Case No. 18-20376
Chapter 11 Petition filed August 25, 2018
See http://bankrupt.com/misc/flsb18-20376.pdf
represented by: Teresa M. Alvarez, Esq.
E-mail: ecf@teresaalvarezpa.com
In re Michael Alan Bark
Bankr. C.D. Cal. Case No. 18-19904
Chapter 11 Petition filed August 27, 2018
Filed Pro Se
In re Brian R Lombardino
Bankr. N.D. Fla. Case No. 18-40457
Chapter 11 Petition filed August 27, 2018
represented by: Robert C. Bruner, Esq.
E-mail: rbruner@brunerwright.com
In re Le June Villas Development, LLC
Bankr. S.D. Fla. Case No. 18-20402
Chapter 11 Petition filed August 27, 2018
See http://bankrupt.com/misc/flsb18-20402.pdf
Filed Pro Se
In re Morris Trucking LLC
Bankr. W.D. Mich. Case No. 18-03660
Chapter 11 Petition filed August 27, 2018
See http://bankrupt.com/misc/miwb18-03660.pdf
Filed Pro Se
In re Providence Missionary Baptist Church
Bankr. D.N.J. Case No. 18-27128
Chapter 11 Petition filed August 27, 2018
See http://bankrupt.com/misc/njb18-27128.pdf
Filed Pro Se
In re 1 Kenneth Street LLC
Bankr. S.D.N.Y. Case No. 18-23299
Chapter 11 Petition filed August 27, 2018
See http://bankrupt.com/misc/nysb18-23299.pdf
Filed Pro Se
In re Kevin Wayne Ake and Stacie Michelle Ake
Bankr. W.D. Okla. Case No. 18-13613
Chapter 11 Petition filed August 27, 2018
represented by: O. Clifton Gooding, Esq.
THE GOODING LAW FIRM
E-mail: cgooding@goodingfirm.com
In re Divine Dining, LLC
Bankr. N.D. Tex. Case No. 18-32805
Chapter 11 Petition filed August 27, 2018
See http://bankrupt.com/misc/txnb18-32805.pdf
represented by: Richard G. Grant, Esq.
CULHANE MEADOWS, PLLC
E-mail: rgrant@rgglaw.com
In re ANAA Aviation Holdings I, LLC
Bankr. M.D. Fla. Case No. 18-05255
Chapter 11 Petition filed August 28, 2018
See http://bankrupt.com/misc/flmb18-05255.pdf
represented by: David R McFarlin, Esq.
FISHER RUSHMER, PA
E-mail: dmcfarlin@fisherlawfirm.com
In re Micheal McIvor, M.D. P.A.
Bankr. S.D. Fla. Case No. 18-20496
Chapter 11 Petition filed August 28, 2018
See http://bankrupt.com/misc/flsb18-20496.pdf
represented by: Thomas C. Adam, Esq.
ADAM LAW GROUP, P.A.
E-mail: tadam@adamlawgroup.com
In re McIvor Holdings LLC
Bankr. S.D. Fla. Case No. 18-20497
Chapter 11 Petition filed August 28, 2018
See http://bankrupt.com/misc/flsb18-20497.pdf
represented by: Thomas C. Adam, Esq.
ADAM LAW GROUP, P.A.
E-mail: tadam@adamlawgroup.com
In re Micheal E. McIvor
Bankr. S.D. Fla. Case No. 18-20498
Chapter 11 Petition filed August 28, 2018
represented by: Thomas C. Adam, Esq.
ADAM LAW GROUP, P.A.
E-mail: tadam@adamlawgroup.com
In re LNB-002-2013, LLC
Bankr. S.D. Fla. Case No. 18-20502
Chapter 11 Petition filed August 28, 2018
See http://bankrupt.com/misc/flsb18-20502.pdf
represented by: Joel M. Aresty, Esq.
JOEL M. ARESTY, P.A.
E-mail: aresty@mac.com
In re Richard A. Kelley
Bankr. D. Me. Case No. 18-10505
Chapter 11 Petition filed August 28, 2018
represented by: D. Sam Anderson, Esq.
BERNSTEIN SHUR SAWYER & NELSON
E-mail: sanderson@bernsteinshur.com
In re MS Z HOLDINGS, LLC
Bankr. E.D. Mich. Case No. 18-51917
Chapter 11 Petition filed August 28, 2018
See http://bankrupt.com/misc/mieb18-51917.pdf
represented by: Robert N. Bassel, Esq.
E-mail: bbassel@gmail.com
In re Kingdom Chiropractic Tampa Bay, Inc.
Bankr. M.D. Fla. Case No. 18-07222
Chapter 11 Petition filed August 28, 2018
See http://bankrupt.com/misc/flmb18-07222.pdf
Filed Pro Se
In re Ofelia Margarita Macias
Bankr. C.D. Cal. Case No. 18-12188
Chapter 11 Petition filed August 29, 2018
represented by: Lionel E. Giron, Esq.
LAW OFFICES OF LIONEL E. GIRON
E-mail: notices@lglawoffice.com
In re Saul Torres Bahena
Bankr. C.D. Cal. Case No. 18-20037
Chapter 11 Petition filed August 29, 2018
represented by: Michael R Totaro, Esq.
TOTARO & SHANAHAN
E-mail: Ocbkatty@aol.com
In re Mega 4, LLC
Bankr. E.D. La. Case No. 18-12279
Chapter 11 Petition filed August 29, 2018
See http://bankrupt.com/misc/laeb18-12279.pdf
represented by: Edwin M. Shorty, Jr., Esq.
EDWIN M. SHORTY, JR. & ASSOCIATES
E-mail: EShorty@eshortylawoffice.com
In re Celicia Hoover
Bankr. D. Md. Case No. 18-21485
Chapter 11 Petition filed August 29, 2018
represented by: Jonathan T. Hoover, Esq.
E-mail: jhoover@lawhoover.com
In re Princeton 10703 Corp
Bankr. E.D.N.Y. Case No. 18-44950
Chapter 11 Petition filed August 29, 2018
See http://bankrupt.com/misc/nyeb18-44950.pdf
Filed Pro Se
In re Juquila Mexican Cuisine Corp.
Bankr. E.D.N.Y. Case No. 18-44976
Chapter 11 Petition filed August 29, 2018
See http://bankrupt.com/misc/nyeb18-44976.pdf
represented by: Norma E. Ortiz, Esq.
ORTIZ & ORTIZ LLP
E-mail: email@ortizandortiz.com
In re Ortiz Family Estates LLC
Bankr. S.D.N.Y. Case No. 18-23325
Chapter 11 Petition filed August 29, 2018
See http://bankrupt.com/misc/nysb18-23325.pdf
represented by: Linda M. Tirelli, Esq.
TIRELLI & WALLSHEIN
E-mail: ltirelli@tw-lawgroup.com
In re Prohealth Rural Health Services Inc.
Bankr. M.D. Tenn. Case No. 18-05771
Chapter 11 Petition filed August 29, 2018
See http://bankrupt.com/misc/tnmb18-05771.pdf
Filed Pro Se
In re Paola Isabel Justiniano
Bankr. D.N.J. Case No. 18-27365
Chapter 11 Petition filed August 30, 2018
represented by: Thaddeus R. Maciag, Esq.
MACIAG LAW, LLC
E-mail: MaciagLaw1@aol.com
In re Peter Kovacs
Bankr. E.D.N.Y. Case No. 18-75874
Chapter 11 Petition filed August 30, 2018
represented by: Randall S. D. Jacobs, Esq.
Randall S. D. Jacobs, PLLC
E-mail: rsdjacobs@chapter11esq.com
In re Zoltan Kovacs
Bankr. E.D.N.Y. Case No. 18-75875
Chapter 11 Petition filed August 30, 2018
represented by: Randall S. D. Jacobs, Esq.
Randall S. D. Jacobs, PLLC
E-mail: rsdjacobs@chapter11esq.com
In re Frances S. Greenbaum
Bankr. D. Md. Case No. 18-21451
Chapter 11 Petition filed August 29, 2018
Filed Pro Se
In re Rock Cabin Mining, LLC
Bankr. D. Ariz. Case No. 18-10560
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/azb18-10560.pdf
represented by: Harold Campbell, Esq.
CAMPBELL & COOMBS, P.C.
E-mail: heciii@haroldcampbell.com
In re Patrick Harrington and Suzanne Biers Harrington
Bankr. D. Ariz. Case No. 18-10606
Chapter 11 Petition filed August 30, 2018
represented by: Michael A. Jones, Esq.
ALLEN BARNES & JONES, PLC
E-mail: mjones@allenbarneslaw.com
In re Mark Smith
Bankr. N.D. Cal. Case No. 18-51964
Chapter 11 Petition filed August 30, 2018
represented by: Nancy Weng, Esq.
TSAO-WU AND YEE, LLP
E-mail: nweng@tsaoyee.com
In re Trinity Physicians LLC
Bankr. M.D. Fla. Case No. 18-07323
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/flmb18-07323.pdf
represented by: Stanley J. Galewski, Esq.
GALEWSKI LAW GROUP PA
E-mail: stan@galewski.com
In re Erika Urbaez
Bankr. S.D. Fla. Case No. 18-20599
Chapter 11 Petition filed August 30, 2018
represented by: Trey E. Miller, III, Esq.
LAW OFFICE OF TREY E. MILLER III, P.A.
E-mail: trey@treymillerlaw.com
In re Christopher David Polk
Bankr. M.D. Ga. Case No. 18-30913
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/gamb18-30913.pdf
represented by: Wesley J. Boyer, Esq.
BOYER TERRY LLC
E-mail: wes@boyerterry.com
In re Alternative Well Intervention, LLC
Bankr. W.D. La. Case No. 18-51098
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/lawb18-51098.pdf
represented by: Tristan E. Manthey, Esq.
HELLER, DRAPER, PATRICK, HORN & MANTHEY
LLC
E-mail: tmanthey@hellerdraper.com
In re Bountiful Blessings Worship Center, Inc.
Bankr. D. Md. Case No. 18-21505
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/mdb18-21505.pdf
represented by: Justin Schnitzer, Esq.
SCHNITZER ANDERSON
E-mail: Justin@plgmd.com
In re 129 NY59 LLC
Bankr. S.D.N.Y. Case No. 18-23329
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/nysb18-23329.pdf
Filed Pro Se
In re Charles Rinaldi, Inc.
Bankr. S.D.N.Y. Case No. 18-23343
Chapter 11 Petition filed August 30, 2018
See http://bankrupt.com/misc/nysb18-23343.pdf
represented by: Anne J. Penachio, Esq.
PENACHIO MALARA LLP
E-mail: apenachio@pmlawllp.com
In re Brian K. Fisher and Melissa S. Fisher
Bankr. M.D. Tenn. Case No. 18-05821
Chapter 11 Petition filed August 30, 2018
represented by: Denis Graham (Gray) Waldron, Esq.
NIARHOS & WALDRON, PLC
E-mail: gray@niarhos.com
In re Mustapha Oulad Chikh
Bankr. E.D. Tex. Case No. 18-41921
Chapter 11 Petition filed August 30, 2018
represented by: Robert T. DeMarco, Esq.
DEMARCO-MITCHELL, PLLC
E-mail: robert@demarcomitchell.com
*********
Monday's edition of the TCR delivers a list of indicative prices
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*********
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.
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