/raid1/www/Hosts/bankrupt/TCR_Public/191008.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, October 8, 2019, Vol. 23, No. 280
Headlines
15005 NW CORNELL: Exclusivity Period Extended Until Dec. 17
ABSOLUT FACILITIES: U.S. Trustee Forms 5-Member Committee
ACETO CORPORATION: Court Approves Disclosure Statement
ADEENIH REAL ESTATE: U.S. Trustee Seeks Ch. 7 Conversion of Case
AGERA ENERGY: Files for Chapter 11 to Sell to Exelon
ALQUEST TECHNOLOGIES: U.S. Trustee Seeks Conversion of Case
AMERICAN TELECONFERENCING: Moody's Affirms Caa2 CFR
AMERICANN INC: Finishes Construction of Building 1 at MMCC
ARLEN HOUSE: Seeks to Extend Exclusivity Period to Dec. 20
ASHLAND LLC: Moody's Raises CFR to Ba1, Outlook Stable
BARLEY FORGE: Case Summary & 20 Largest Unsecured Creditors
BENBOW VALLEY: Seeks Authority to Use Cash Collateral Thru Nov. 11
BLUE SKY THINKING: Seeks More Time to File Bankruptcy Plan
BOSTON SURFACE: Case Summary & 20 Largest Unsecured Creditors
BRISTOW GROUP: Says Equity Holders Out of Money in Valuation
BRISTOW GROUP: Says It Has Won Approval of Reorganization Plan
BUCKEYE PARTNERS: Moody's Assigns Ba3 Corp. Family Rating
C & S JANITORIAL: Nov. 4 Plan Confirmation Hearing Set
CASCADE FAMILY: U.S. Bank Says Amended Plan Not Feasible
CHICK LUMBER: U.S. Trustee Forms 3-Member Committee
COMMUNITY BUILDERS: Seeks More Time to File Bankruptcy Plan
COOL HOLDINGS: Amends GT Capital and Delavaco Unsecured Notes
COOL HOLDINGS: Fails to Regain Compliance with Nasdaq Listing Rule
COSTA HOLLYWOOD: Seeks Authority for Continued Cash Collateral Use
CYN RESTAURANTS: May Continue Using Cash Collateral Until Oct. 31
DASA ENTERPRISES: Exclusivity Period Extended Until Oct. 28
DIGITAL COMMUNICATION: Reaches Deal With Lenders on Plan
EAST COAST INVEST: DOJ Watchdog Seeks Dismissal, Ch. 11 Trustee
ELECTRONIC SERVICE: May Continue Cash Collateral Use Until Dec. 31
EP ENERGY: Files for Chapter 11 with Deal to Reduce Debt by $3.3BB
EP ENERGY: Moody's Affirms Ca CFR, Outlook Negative
EP ENERGY: Receives Court Approval of First Day Motions
EP ENERGY: Says Business as Usual While in Chapter 11
EVERGREEN PALLET: Gets OK to Use Cash Collateral Until Oct. 11
F & S ASSOCIATES: To Present Plan for Confirmation Nov. 6
FITRITION LLC: Cash Collateral Use Authorized Through Oct. 31
FLAMINGO/TENAYA: Secured Creditor Seeks Ch. 11 Trustee Appointment
FRANCOS TRUCKING: Seeks to Use Cash Thru Dec. 31, Pay on Ranch Debt
FUSION CONNECT: Exclusive Filing Periods Extended Until Dec. 30
GABRIEL INVESTMENT: Seeks Authority to Use PNC Bank Cash Collateral
GANTT TRUCKING: Seeks Access to $1.3M Cash Collateral
GARDA WORLD: Moody's Assigns B3 CFR, Outlook Stable
GLOBAL ENTERPRISES: May Use Cash Collateral Through Oct. 21
GOLASINSKI HOMES: Dec. 18 Combined Hearing on Plan and Disclosures
GOLDEN NUGGET: Moody's Affirms B2 CFR, Outlook Stable
GOLDEN NUGGET: S&P Affirms 'B' ICR; Outlook Stable
GOLDEN TREE: U.S. Trustee Unable to Appoint Committee
HAGUE TEXTILE: Seeks Authority to Use Cash Collateral
HARLEM CROSSINGS: Case Summary & 14 Unsecured Creditors
HESS MIDSTREAM: Fitch Assigns BB+ LT IDR, Outlook Stable
HESS MIDSTREAM: Moody's Assigns Ba2 CFR, Outlook Positive
HESS MIDSTREAM: S&P Assigns BB+ ICR on Simplification Transaction
HOSPITAL ACQUISITION: Exclusivity Period Extended Until Dec. 2
INSPIRON INC: Seeks OK on Premium Finance Agreement with AFCO
INTERIDE TRANSPORT: Seeks Authority to Use $1.5M Cash Collateral
JEROME GOLDEN: U.S. Trustee Directed to Appoint Ombudsman
JLK INDUSTRIES: U.S. Trustee Unable to Appoint Committee
JPM REALTY: Seeks More Time to File Bankruptcy Plan
JUST FOR YOU: Disclosure Statement Hearing Continued to Oct. 23
KABAM ASSOCIATES: U.S. Trustee Unable to Appoint Committee
KAUMANA DRIVE: Case Summary & 20 Largest Unsecured Creditors
LATEX FOAM: Cash Collateral Use Continued Through Oct. 26
LNB-002-2013: Asks Court to Extend Exclusivity Period to Jan. 27
MAGNUM CONSTRUCTION: Plan Solicitation Period Moved to Dec. 1
MLW LLC: Exclusivity Period Extended Until Nov. 12
MURRAY ENERGY: Moody's Lowers Corp. Family Rating to Ca
MURRAY ENERGY: S&P Lowers ICR to 'SD' on Missed Payments
NCCD-CLAREMONT PROPERTIES: Moody's Reviews Rating on 2017 Bonds
NOVASOM INC: Ombudsman Files Report on PII
OPTIMIZED LEASING: Amended Plan & Disclosures Due Nov. 11
PARKING MANAGEMENT: Seeks Authority to Use Cash for 3 Months
PG&E CORP: Wildfire Victims See $13.5 Billion in Claims
POINT.360: U.S. Trustee Seeks Conversion of Chapter 11 Case
RENNOVA HEALTH: Issues $1.9 Million Promissory Note to Lender
S&C TEXAS: Unsecureds to Recover 40% in 12 Years
SAFEBUY ACCEPTANCE: Lender Group Seeks Ch. 11 Trustee Appointment
SAMSON OIL: Janna Blanter Resigns as Chief Financial Officer
SILVER CREEK: Seeks to Extend Final Cash Order to Oct. 31
SPORTCO HOLDINGS: Exclusivity Period Extended Until Jan. 6
STONE OAK MEMORY: Seeks to Use Cash Collateral on 14-Day Budget
SUNCO TRUCKING: Seeks Access to $2M Cash for Continued Operations
SWMS GROUP: U.S. Trustee Asks Court to Convert Case to Chapter 7
SYNCREON GROUP: S&P Raises ICR to 'CCC+' Following Debt Exchange
TRI-CORE PARTNERS: Wins Cash Access Until Mid-November
VMW INVESTMENTS: DOJ Watchdog Seeks Trustee Appointment
WEATHERLY OIL: Liquidating Plan Declared Effective Sept. 30, 2019
WILLOW WINDS: S&P Lowers 2013 A-B Revenue Bond Rating to 'CCC'
WORLD SYSTEMS: Seeks Dec. 2, 2019 Extension of Plan Filing Deadline
YCO TULSA: Court Approves N. Tomlins Appointment as Ch. 11 Trustee
YIANNIS MEDITERRANEAN: Cash Collateral Use Continued Thru Oct. 16
[^] Large Companies with Insolvent Balance Sheet
*********
15005 NW CORNELL: Exclusivity Period Extended Until Dec. 17
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15005 NW Cornell LLC, and its affiliates have been given more time
to file their plan for emerging from Chapter 11 protection.
Judge David Hercher of the U.S. Bankruptcy Court for the District
of Oregon moved the deadline for the companies to file their plan
and disclosure statement to Dec. 17, and extended the exclusivity
period to Oct. 18.
About 15005 NW Cornell
15005 NW Cornell LLC and its owner Vahan Megar Dinihanian, Jr.,
sought Chapter 11 protection (Bankr. D. Ore. Case Nos. 19-31883 and
19-31886) on May 21, 2019.
Vahan Megar Dinihanian Jr. is an individual who owns and operates
multiple business entities,including several entities that own and
lease commercial real estate, a floral products business,and
entities that provide engineering and consulting services.
15005 NW Cornell LLC, based in Beaverton, OR, estimated $10 million
to $50 million in assets and $1 million to $10 million in
liabilities.
The Hon. Trish M. Brown oversees the cases.
15005 NW Cornell tapped Douglas Pahl, a partner of Perkins Coie
LLP, as bankruptcy counsel. Motschenbacher & Blattner LLP is
Dinihanian's general bankruptcy counsel.
ABSOLUT FACILITIES: U.S. Trustee Forms 5-Member Committee
---------------------------------------------------------
The Office of the U.S. Trustee on Oct. 3, 2019, appointed five
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 cases of Absolut Facilities Management, LLC and
its affiliates.
The committee members are:
(1) TwinMed
Attn: Officer/Director
11333 Greenstone Avenue
Santa Fe Springs, CA 90670
(2) Preventive Diagnostics, Inc.
Attn: Officer/Director
12 Spencer Street
Brooklyn, NY 11205
(3) Todd Hobler, Vice President
1199SEIU United Healthcare Workers East
2421 Main Street, Suite 100
Buffalo, New York 14214
(4) DentServ Dental Services, PC
15 Canal Road
Pelham Manor, NY 10803
(5) Grandison Management Inc.
Attn: Officer/Director
1413 38th St.
Brooklyn, NY 11218
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Absolut Facilities
Absolut Facilities Management, LLC, through its subsidiaries, owns
six skilled nursing facilities and one assisted living facility in
the state of New York, have sought Chapter 11 protection.
On Sept. 10, 2019, Absolut Facilities Management, LLC and seven
related entities each filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 19-76260).
Loeb & Loeb LLP is the Debtors' counsel. Prime Clerk LLC is the
claims and noticing agent.
ACETO CORPORATION: Court Approves Disclosure Statement
------------------------------------------------------
On Sept. 18, 2019, the U.S. Bankruptcy Court for the District of
New Jersey issued an order approving on a final basis the
Disclosure Statement and confirming the Second Modified Joint Plan
of Liquidation of Aceto Corporation and its affiliated debtors.
All final requests for payment of professional claims must be filed
no later than 30 days after the effective date (Oct. 31, 2019).
Except as otherwise provided in the Plan and as set forth in
Section 2.01 and Section 2.02 of the Plan, all requests for payment
of an Administrative Claim must be filed, in substantially the form
of the Administrative Claim Request Form contained in the Plan
Supplement filed on Aug. 23, 2019, with the Claims and Solicitation
Agent and served on counsel for the Liquidating Debtors and the
Plan Administrator no later than the Administrative Claim Bar Date,
which shall be 20 days after the effective date.
A copy of Notice of Facts, Conclusions of Law and Order confirming
the Plan is available at https://is.gd/jcoJbx
The Troubled Company Reporter previously reported that
distributions under the Plan and the Plan Administrator's
post-Effective Date operations will be funded from the Debtors'
Cash on hand and proceeds of the Sales held by the Estates as of
the Effective Date, and proceeds of other asset dispositions and
net proceeds of Litigation and Other Recoveries.
A full-text copy of the First Modified Disclosure Statement dated
June 27, 2019, is available at https://tinyurl.com/y2scp5tk from
PacerMonitor.com at no charge.
About ACETO Corp.
ACETO Corporation (NASDAQ: ACET), incorporated in 1947, is focused
on the global marketing, sale and distribution of Human Health
products (finished dosage form generics and nutraceutical
products), Pharmaceutical Ingredients (pharmaceutical intermediates
and active pharmaceutical ingredients) and Performance Chemicals
(specialty chemicals and agricultural protection products).
The Company employs approximately 180 people.
With business operations in nine countries, ACETO distributes over
1,100 chemical compounds used principally as finished products or
raw materials in the pharmaceutical, nutraceutical, agricultural,
coatings, and industrial chemical industries. ACETO's global
operations, including a staff of 25 in China and 12 in India, are
distinctive in the industry and enable its worldwide sourcing and
regulatory capabilities.
Aceto Corporation and eight affiliates sought Chapter 11 protection
(Bankr. D.N.J. Case No. 19-13448) on Feb. 19, 2019. ACETO
disclosed assets of $753,159,000 and liabilities of $702,848,000 as
of Dec. 31, 2018.
The Hon. Vincent F. Papalia is the case judge.
The Debtors tapped Lowenstein Sandler LLP as counsel; Simmons &
Simmons as foreign counsel; PJT Partners LP as an investment banker
and financial advisor; AP Services LLC as restructuring advisor;
and Prime Clerk LLC as claims and noticing agent.
The U.S. Trustee, on Feb. 28, 2019, appointed five members to the
official committee of unsecured creditors. Counsel for the
Committee is Stroock & Stroock & Lavan LLP and Porzio, Bromberg &
Newman, P.C. Houlihan Lokey Capital, Inc., is the Committee's
investment banker. GlassRatner Advisory & Capital Group, LLC, as
its financial advisor.
ADEENIH REAL ESTATE: U.S. Trustee Seeks Ch. 7 Conversion of Case
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Pursuant to Federal Rule of Bankruptcy Procedure 2015, Adeenih Real
Estate, LLC, is required to file and transmit to the U.S. Trustee a
statement of disbursements made in the quarter and the quarterly
fees due to the U.S. Trustee. The keeping of records and filing of
reports are central to the full disclosure contemplated by the
Bankruptcy Code, David W. Asbach, Acting United States Trustee for
Region 5, asserts.
Therefore, the periodic report to interested parties of the
debtor's financial condition "is high on the list of fiduciary
obligations and is to be excused only for justifiable cause," the
U.S. Trustee tells the Court.
The duty to comply with Rule 2015 reporting requirements does not
end until the case is closed, dismissed or converted, the U.S.
Trustee adds.
For these reasons, failure to satisfy any filing or reporting
requirement established by the Bankruptcy Rules constitutes cause
to convert or dismiss the case, the U.S. Trustee asserts.
Here, in light of the Debtor's failure to file any monthly
operating reports on September 19, 2019, the U.S. Trustee reached
out to inquire if the Debtor plans to cure this deficiency.
Counsel for the Debtor represented that this deficiency will be
cured on September 20, 2019. However, to date no monthly operating
reports have been filed yet.
Therefore, the U.S. Trustee believes a cause exists to convert this
case to a case under Chapter 7 or dismiss based on the above-stated
grounds. The U.S. Trustee asks for an order converting this case
to a case under Chapter 7, or, alternatively, dismissing this case,
and further prays for all general and equitable relief which may be
just and proper under the circumstances.
About Adeenih Real Estate, LLC
On April 22, 2019, LiftForward, Inc., a creditor of Adeenih Real
Estate, filed an involuntary petition for relief under Chapter 7
against the Debtor (Bankr. W.D. La. Case No. 19-80396). The case
was converted to one under Chapter 11 (Bankr. W.D. La. Case no.
19-80396) on May 24, 2019. The case has been assigned to Judge
John W. Kolwe. Arthur A. Vingiello, Esq., at The Steffes Firm,
LLC, represents the Debtor as counsel.
AGERA ENERGY: Files for Chapter 11 to Sell to Exelon
----------------------------------------------------
Agera Energy and its affiliates have filed for chapter 11
bankruptcy protection in the United States Bankruptcy Court,
Southern District of New York and is facilitating an asset sale to
Constellation, a subsidiary of Exelon Corporation (Nasdaq: EXC),
subject to bankruptcy court approval.
If approved by the bankruptcy court, the majority of Agera's
existing customers will be transferred to Constellation upon
completion of the sale.
"Due to unforeseen circumstances impacting the viability of Agera
Energy's business and its objectives, the company's management team
has made the decision to facilitate a sale under chapter 11 to
minimize disruptions to our customers," comments Mark Linzenbold,
CFO of Agera Energy. "While we are deeply disappointed to be
filing bankruptcy, we're excited that a market-leading energy
company will be able to continue serving our customers' needs."
Headquartered in Briarcliff Manor, New York, Agera Energy provides
retail electricity and natural gas to commercial, industrial, and
residential customers. It enables customers to receive electricity
and natural gas needs from a source other than the local utility
and to tailor energy supply to their specific needs. Agera Energy
provides services to customers in California, Connecticut,
Delaware, District of Columbia, Illinois, Maine, Maryland,
Massachusetts, New Hampshire, New Jersey, New York, Ohio,
Pennsylvania, Rhode Island, Texas and Virginia.
"This agreement would provide an opportunity to grow our retail
business in strategic markets and strengthen our position as the
nation's largest competitive energy provider," said Jim McHugh,
Constellation CEO. "Provided the court process unfolds favorably,
we look forward to providing Agera Energy's retail customers with
the same quality products, services and clean energy solutions that
Constellation customers currently enjoy."
Prepetition Capital Structure
The Debtors' prepetition liabilities are as follows:
* As of the Petition Date, the Debtors estimate that
approximately $161.6 million is outstanding under the Senior Lien
Supply Agreement and Senior Lien ISDA Master Agreement, which is
comprised of energy supply liabilities, mark-to-market exposure,
and collateral support obligations posted by BP on behalf of the
Debtors.
* As of the Petition Date, $35,000,000 in principal is
outstanding under the Second Lien Revolving Credit Facility
provided by Colorado Bankers Life Insurance Company, as agent and
lender.
* As of the Petition Date, approximately $82 million of general
unsecured debt is outstanding, which is comprised primarily of
trade claims, obligations related to REC and ACP obligations, and
broker commission payments.
About Constellation
Constellation is a competitive retail supplier of power, natural
gas and energy products and services for homes and businesses
across the continental United States. Constellation's family of
retail businesses serves approximately 2 million residential,
public sector and business customers, including more than
two-thirds of the Fortune 100. Baltimore-based Constellation is a
subsidiary of Exelon Corporation (Nasdaq: EXC), the nation's
leading competitive energy provider, with 2018 revenues of
approximately $36 billion, and more than 32,000 megawatts of owned
capacity comprising one of the nation's cleanest and lowest-cost
power generation fleets. Learn more at www.constellation.com or on
Twitter at @ConstellationEG
About Agera Energy
Headquartered in Briarcliff Manor, New York and established in
2014, Agera Energy – http://www.ageraenergy.com/-- is a retail
energy supplier offering a one-stop-shop for energy supply,
efficiency and audit services. Serving a national footprint of
customers, the company supplies residential and business customers,
ranging from the smallest apartments to the largest industrial
users, with electricity and natural gas. With best-in-class energy
solutions, Agera Energy focuses on its customers so they can focus
on their homes and businesses.
Agera Energy LLC and 5 subsidiaries sought Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 19-23802) on Oct. 4, 2019, in White
Plains, New York.
Agera Energy was estimated to have $50 million to $100 million in
assets and $100 million to $500 million in liabilities as of the
bankruptcy filing.
The Hon. Robert D. Drain is the case judge.
The Debtors tapped MCDERMOTT WILL & EMERY LLP as counsel; STIFEL,
NICOLAUS & CO., INC., and MILLER BUCKFIRE & CO., LLC, as investment
banker; and GLASSRATNER ADVISORY & CAPITAL GROUP, LLC as financial
advisor. Stretto is the claims agent.
ALQUEST TECHNOLOGIES: U.S. Trustee Seeks Conversion of Case
-----------------------------------------------------------
The U.S. Trustee asks the Bankruptcy Court to convert the Chapter
11 case of Alquest Technologies Inc. to one under Chapter 7 of the
Bankruptcy Code for the Debtor has failed to comply with the
requirements of the United States Trustee to attend and provide
documents such as:
1. Schedule of Assets and Liabilities due September 17, 2019
2. Statement of Financial Affairs due by September 17, 2019
3. Notice of Setting/Increasing Insider Compensation
4. Application to Employ Attorney
Based in La Verne, California, Alquest Technologies, Inc. --
http://www.alquest.us.com/- is a state licensed contractor
specializing in all aspects of the data/telecommunication industry,
filed a Chapter 11 Petition (Bankr. C.D. Calif. Case No. 19-20426)
on September 3, 2019. The case is assigned to Hon. Barry Russell.
The Debtor's Counsel is Peter C. Wittlin, Esq., in Irvine,
California.
At the time of filing, the Debtor had estimated assets and
liabilities of $1 million to $10 million.
AMERICAN TELECONFERENCING: Moody's Affirms Caa2 CFR
---------------------------------------------------
Moody's Investors Service affirmed American Teleconferencing
Services, Ltd.'s Caa2 Corporate Family Rating and assigned Caa1
ratings to the company's first lien credit facilities whose
maturity dates were extended via an amendment as part of a debt
restructuring. Moody's withdrew the ratings for the de minimus
amounts of outstanding 1st lien credit facilities that did not
participate in the amendment. Moody's appended the "/LD" indicator
to the Probability of Default Rating indicating a limited default
and this designation will be removed in the next few days. The
ratings outlook was changed to stable, from negative. ATS is a
wholly-owned subsidiary of Premiere Global Services, Inc., which is
owned by affiliates of Siris Capital Group, LLC.
Affirmations:
Issuer: American Teleconferencing Services, Ltd.
Corporate Family Rating, Affirmed Caa2
Probability of Default Rating, Affirmed Caa2-PD /LD (/LD appended)
Assignments:
Issuer: American Teleconferencing Services, Ltd.
Senior Secured 1st lien Term loan due 2023, Assigned Caa1 (LGD3)
Senior Secured 1st lien Revolving Credit Facility due 2022,
Assigned Caa1 (LGD3)
Withdrawals:
Issuer: American Teleconferencing Services, Ltd.
Senior Secured 1st lien Term Loan due 2021, Withdrawn, previously
rated Caa1 (LGD3)
Senior Secured 1st lien Revolving Credit Facility due 2020,
Withdrawn, previously rated Caa1 (LGD3)
Outlook Actions:
Issuer: American Teleconferencing Services, Ltd.
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
PGi completed amendments to the terms of its first lien and second
lien credit agreements which included extension of maturities for
the existing 1st lien and 2nd lien credit facilities, a reduction
in the 1st lien term loan amortization payments, and an option to
make payment-in-kind quarterly interest on the 2nd lien loans. As
part of the amendments, the company's financial sponsors agreed to
contribute up to $61.6 million of equity in three phases. PGi also
expects to generate $25 million of annual cost synergies through a
shared services organization supporting operations of PGi and
another telecommunications services company which Siris Capital
expects to acquire in early 2020.
The stable outlook reflects the benefit of the liquidity enhancing
measures that will allow PGi additional time to execute its
operational turnaround plan. The affirmation of the Caa2 CFR
reflects PGi's elevated execution risk in stabilizing the business
through new Unified Communications as a Service (UCaaS) products
that the company expects will offset the sharply declining revenues
from PGi's legacy audio conferencing services. Moody's believes
that while liquidity is adequate for the next 12 to 24 months, the
company will likely require additional liquidity to fully support
its operational turnaround plans. Moody's does not expect EBITDA to
stabilize before year-end 2020 and annual free cash flow will
likely remain negative through 2021 despite the debt restructuring.
At the same time, PGi's credit profile benefits from its financial
sponsors' strong commitment to support the company's turnaround
efforts.
Moody's appended the "/LD" indicator to PGi's Probability of
Default Rating of Caa2-PD to reflect a limited default as a result
of the missed interest payment and the extension of debt maturities
and reduction in term loan amortization payments to avert a
default. PGi has made interest payments for the quarter ended June
2019 and up to the amendment that it had previously withheld and
has become current following the amendment.
The Caa2 CFR additionally reflects PGi's weak financial profile
characterized by its very high leverage, declining EBITDA and
negative free cash flow over the next 12 to 24 months. The
company's prior attempts to rollout a competitive UCaaS
collaboration product have been delayed and proved challenging. The
UCaaS market is large and growing rapidly but it is highly
competitive with several established players that have significant
resources and a track record of successful product adoption by
enterprise customers.
The ratings also reflect the company's history of aggressive
financial policies reflected in the high financial risk tolerance
and debt-funded distribution under the ownership of its financial
sponsors.
The ratings could be downgraded if liquidity weakens or Moody's
believes that revenues and profitability are unlikely to stabilize.
Conversely, Moody's could upgrade the ratings if liquidity improves
substantially and Moody's expects the company to generate positive
free cash flow on a sustained basis.
Premiere Global Services, Inc. provides audio conferencing, web and
video collaboration services.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
AMERICANN INC: Finishes Construction of Building 1 at MMCC
----------------------------------------------------------
AmeriCann Inc. has completed construction of Building 1 at the
Company's Massachusetts Medical Cannabis Center "MMCC" development
in Freetown, MA. On Sept. 1, 2019, Bask, Inc. commenced its
15-year lease of Building 1 which includes a base rent plus 15% of
Bask's gross revenue.
The Company's Investment Agreement with Mountain States Capital
ended in August 2019. The Company received $2,433,412 from the
sale of 1,163,782 shares of common stock pursuant to the terms of
the Investment Agreement. The shares sold to Mountain Stats were
sold at an average price of $2.09 per share.
On Oct. 7, 2019, the Company released an Operations Update, which
is available for free at https://is.gd/vrnli5.
About Americann
Headquartered in Denver, Colorado, AmeriCann is a cannabis company
that is developing cultivation, processing and manufacturing
facilities. AmeriCann uses greenhouse technology which is superior
to the current industry standard of growing cannabis in warehouse
facilities under artificial lights.
AmeriCann is designing GMP Certified cannabis extraction and
product manufacturing infrastructure. Through a wholly-owned
subsidiary, AmeriCann Brands, Inc., the Company intends to secure
licenses to produce cannabis infused products including beverages,
edibles, topicals, vape cartridges and concentrates. AmeriCann
Brands, Inc. plans to operate a Marijuana Product Manufacturing
business at MMCC with over 40,000 square feet of state-of-the art
extraction and product manufacturing infrastructure.
Americann reported a net loss of $4.43 million for the year ended
Sept. 30, 2018, compared to a net loss of $2.77 for the year ended
Sept. 30, 2017. As of June 30, 2019, the Company had $10.07
million in total assets, $3.03 million in total liabilities, and
$7.04 million in total stockholders' equity.
MaloneBailey, LLP, in Houston, Texas, the Company's auditor since
2016, issued a "going concern" opinion in its report on the
consolidated financial statements for the year ended Sept. 30,
2018, stating that the Company has suffered recurring losses from
operations and has an accumulated deficit that raise substantial
doubt about its ability to continue as a going concern.
ARLEN HOUSE: Seeks to Extend Exclusivity Period to Dec. 20
----------------------------------------------------------
Arlen House East 715, LLC asked the U.S. Bankruptcy Court for the
Southern District of Florida to extend the period during which it
has the exclusive right to file a Chapter 11 plan to Dec. 20, and
the period to solicit acceptances for the plan to Feb. 20, 2020.
The company said additional time is needed to negotiate a
consensual plan with Ocwen Bank and complete mediation with the
bank.
About Arlen House East 715
Based in Miami Beach, Florida, Arlen House East 715, LLC, filed a
voluntary petition under chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. Case No. 18-16263) on May 24, 2018, listing under
$1 million in both assets and liabilities. The Petition was signed
by Laurent Benzaquen, authorized representative of debtor. The
Debtor is represented by Joel M. Aresty, Esq., at Joel M. Aresty,
P.A., as counsel.
ASHLAND LLC: Moody's Raises CFR to Ba1, Outlook Stable
------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating of
Ashland LLC to Ba1 from Ba2 and the Probability of Default Rating
to Ba1-PD from Ba2-PD. Ratings on the senior unsecured notes and
the junior subordinated legacy debt at its Hercules Incorporated
subsidiary were also upgraded to Ba1 and B1, respectively, from Ba3
and B2, maintaining the 3 notch differential to the CFR on the
Hercules bonds. The senior secured bank credit facility rating at
Ashland LLC is affirmed at Ba1, anticipating the change to
unsecured status of this revolver. The upgrades reflect the
specialty repositioning of the portfolio, which has been ongoing
for a while but benefited significantly with the recent divestiture
of the composites business and the Marl butanediol (BDO) plant in
Germany. The upgrades also reflect the reduction in debt and
leverage from the use of proceeds; adjusted gross leverage is
expected to be in the mid-3.0 times range for the year ending
September 2019. The Speculative Grade Liquidity rating is
maintained at SGL-2. The outlook on the ratings is stable.
"The ongoing portfolio restructuring and transition to a virtual
pure-play in specialty chemicals has strengthened Ashland's
portfolio and enhanced its strong margins with the pro forma EBITDA
margins of roughly 23%," according to Joseph Princiotta, SVP at
Moody's. "Key end markets such as personal care, pharma, nutrition
& other, and Pharmachem tend to be stable businesses and are likely
to be relatively resilient against business cycles or recessions,"
Princiotta added.
Upgrades:
Issuer: Ashland LLC
Probability of Default Rating, Upgraded to Ba1-PD from Ba2-PD
Corporate Family Rating, Upgraded to Ba1 from Ba2
Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 (LGD4)
from Ba3 (LGD5)
Affirmations:
Issuer: Ashland LLC
Senior Secured Bank Credit Facility, affirmed at Ba1 (LGD4) from
(LGD2)
Issuer: Hercules Incorporated
Junior Subordinated Regular Bond/Debenture, Upgraded to B1 (LGD6)
from B2 (LGD6)
Outlook Actions:
Issuer: Ashland LLC
Outlook, Remains Stable
Issuer: Hercules Incorporated
Outlook, Remains Stable
RATING RATIONALE
Ashland's credit profile is supported by a portfolio of specialty
chemical businesses serving diverse end markets in the U.S. and
internationally, a modest revenue base with pro forma LTM revenues
of $2.4 billion (pro forma for the sale of composites and the Marl
plant), meaningful market shares in key businesses (#1 globally in
Specialty Ingredients) and good geographic and operational
diversity.
In September, Ashland closed on the divestiture of its Composites
business and the Marl BDO facility to Ineos Group Holdings S.A.
(Ba2 stable) for $1.015 billion and used approximately $900 million
in proceeds to reduce secured debt and balance sheet leverage. The
company is targeting gross balance sheet leverage at or below 2.5x
(or about 2.9x on a Moody's-adjusted basis), notwithstanding
occasional but modest deviation from this target to support
opportunistic M&A activity that might occur.
Negative factors in the credit include the modest scale and
diversity of the downsized portfolio and the legacy contingent
liabilities associated with asbestos litigation. However, asbestos
risk was largely contained with the 2015 settlement. As of June 30.
2019, Ashland had an insurance receivable of $179 million and
restricted trust investments totaled $329 million, while reserves
for asbestos liabilities amounted to $617 million.
Assuming the lower end of the FY 2019 EBITDA guidance range,
Moody's projects gross adjusted leverage in the mid-3.0x range by
year end with an improving metric trend expected in 2020. Cash flow
metrics are stronger with Retained Cash Flow to Debt in the mid 20%
range. Moody's expects that Ashland will continue to enjoy strong
margins in the Specialty Ingredients segment, with cost reductions,
mix management and new products supporting further margin
improvement from roughly 23% to 25-27%; while maintaining a strong
balance sheet and generating positive free cash flow for dividends,
share buybacks and modest M&A activity.
Ashland's SGL-2 Speculative Grade Liquidity rating reflects its
good liquidity position, which is supported by $132 million in cash
balances at June 30, 2019, availability of $661 million as of June
30, 2019 on the existing $800 million senior secured revolver ($49
million for LOC and $90 million outstanding), $12 million of
availability on its two accounts receivable securitization
facilities ($214 million outstanding), and expectations for modest
positive free cash flow generation. The revolver is expected to be
amended to unsecured; its current LGD analysis and ratings
anticipate this change.
The stable outlook assumes the company sustains or improves EBITDA
margins and avoids large debt-funded M&A or share buybacks that
increase leverage. Occasional modest M&A activity that temporarily
and modestly spikes leverage would be consistent with the stable
outlook.
To be considered for an upgrade, the company would need to commit
to policies that support an IG rating over time: sustaining gross
leverage in the mid-to-high 2x range (on a Moody's adjusted basis),
and Retained Cash Flow/Debt above 25%, while the portfolio realizes
healthy organic growth and the company pursues a growth plan that
does not include large debt-financed acquisitions. The ratings
could be downgraded if adjusted gross leverage were to be sustained
above 3.5x and retained cash flow to debt declines below 15%,
resulting from M&A activity, earnings pressure or debt-funded share
buybacks.
ESG considerations and risks are modest for Ashland, and even more
so than most in the specialty chemical space given its predominant
use of natural-based resources including cellulosic, plant-derived
and other natural raw materials. However, the asbestos liability
associated with legacy boiler and pipe materials from past acquired
companies stands out in the environmental and social profile,
despite its long tail and trust and insurance funded status.
Ashland LLC, headquartered in Covington, Kentucky, is focused on
growing its specialty chemicals businesses globally. The
divestiture of the Composites segment and the Marl BDO facility
leaves one relatively large segment -- Ashland Specialty
Ingredients -- and one much smaller I & S segment. Revenues are
geographically diverse with roughly 40% derived from North America,
33% from Europe, 19% from Asia and the balance from South America
and Other. Pro forma for the divestiture, Ashland's revenues are
roughly $2.4 billion.
The principal methodology used in these ratings was Chemical
Industry published in March 2019.
BARLEY FORGE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Barley Forge Brewing Company, LLC
2957 Randolph Ave., Unit B
Costa Mesa, CA 92626
Business Description: Barley Forge Brewing Company, LLC is a
privately held company in the beverage
manufacturing business.
Chapter 11 Petition Date: October 6, 2019
Court: United States Bankruptcy Court
Central District of California (Santa Ana)
Case No.: 19-13920
Judge: Hon. Theodor Albert
Debtor's Counsel: M. Douglas Flahaut, Esq.
ARENT FOX, LLP
555 West Fifth Street, 48th Floor
Los Angeles, CA 90013
Tel: 213-443-7559
Fax: 213-629-7401
E-mail: flahaut.douglas@arentfox.com
Douglas.Flahaut@arentfox.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joshua Teeple, chief restructuring
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/cacb19-13920.pdf
BENBOW VALLEY: Seeks Authority to Use Cash Collateral Thru Nov. 11
------------------------------------------------------------------
Benbow Valley Investments d/b/a Benbow Inn asks the U.S. Bankruptcy
Court for the California Northern Bankruptcy Court to authorize the
use of any and all cash collateral of SA Group Properties, Inc. and
Sysco Sacramento, Inc.
Specifically, the Debtor intends to use its hotel revenues on an
interim basis (2 weeks) to pay necessary expenses, including
payroll (pre and post-petition), operating expenses of its hotel
operations. A proposed budget through the week of Nov. 11, 2019
sets forth its expenses in the aggregate sum of $812,420.
The Debtor's main secured creditor, SA Group, has an estimated
balance due of $10,200,000, evidenced by a Promissory Note secured
by a deed of trust which was recorded only against the Hotel. The
debt to SA Group is also subject of a personal property blanket
lien. The lien of SA Group, however, does not attach to the Annex
Buildings nor the KOA Property, the RV Park or the golf course
which are owned by a non-debtor.
Since SA Group's post-petition lien extends to post-petition hotel
room revenues, the Debtor asserts that SA Group is adequately
protected as to those revenues because:
(A) To the extent the Debtor uses those revenues or SA Group's
pre-petition collateral (food and beverage), the Debtor is willing
to grant SA Group a replacement lien equal to the amount of the
diminution of its collateral value.
(B) The Debtor's continued use of cash collateral to conduct
the operations of the Hotel will preserve, and indeed, maximizes
the value of SA Group's collateral.
(C) There is a significant equity cushion protecting SA Group
since the total value of the assets securing its loan is
$16,450,000 (Hotel) plus $209,674 (personal property, inventory,
etc.) for a total of $16,659,674. The total amount of SA Group's
debt is $10,200,000 which means there is a 40% equity cushion
equally to $6,459,674 protecting SA Group's lien.
(D) the Debtor will make monthly payments to SA Group in the
amount of $48,000 as additional adequate protection.
Sysco has a personal property lien in the approximate amount of
$39,000 which is senior to SA Group's lien. The Debtor will use
Sysco's collateral in its form of food and beverage in its
post-petition operations. The Debtor will grant Sysco a
replacement lien equal to the amount of any diminution in value of
Sysco's collateral.
About Benbow Valley Investments
Benbow Valley Investments d/b/a Benbow Historic Inn --
https://benbowinn.com/ -- owns a historical hotel in Humboldt
County. The Hotel opened to the public in July of 1926 and soon
became a popular destination resort for motoring tourists traveling
up the newly completed Redwood Highway. Benbow Historic Inn is on
the National Register of Historic Places and a proud member of
Historic Hotels of America.
Benbow Valley Investments sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 19-10720) on Sept. 26,
2019. The petition was signed by John Porter, managing partner. At
the time of the filing, the Hotel disclosed $17,424,402 total
assets and $11,851,004 total debt. Judge William J. Lafferty is
assigned to the case. Chris D. Kuhner, Esq. at KORNFIELD, NYBERG,
BENDES, KUHNER & LITTLE P.C. serves as the Hotel's counsel.
BLUE SKY THINKING: Seeks More Time to File Bankruptcy Plan
----------------------------------------------------------
Blue Sky Thinking, LLC asked the U.S. Bankruptcy Court for the
Middle District of Florida to extend the period during which it has
the exclusive right to file a Chapter 11 plan to Nov. 16.
Since the filing of its petition, the company has worked diligently
to market its business in order to increase its revenues in support
of its prospective plan of reorganization. The company's business
is heavily reliant upon the winter tourist season. The slowest
months for company's business are projected to be July and August.
In order to make a realistic projection for its reorganization plan
and disclosure statement, the company believes that it is necessary
to have additional financial reporting periods for the months of
September and October for the business.
About Blue Sky Thinking
Blue Sky Thinking, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-04740) on May 20,
2019. The petition was signed by Tamara Hauser, managing member.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of less than $500,000.
The Law Offices of Benjamin Martin is the Debtor's counsel.
BOSTON SURFACE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Boston Surface Railroad Company, Inc.
11 Depot St.
Concord, NH 03306
Business Description: Boston Surface Railroad Company Inc.
is a private intercity passenger railroad
based in Woonsocket, RI. BSRC was granted
authority by the United States Surface
Transportation Board in 2016 to operate
passenger service on several routes in New
England and has formed a public private
partnership with the cities of Nashua, New
Hampshire; Worcester and Lowell,
Massachusetts and Woonsocket, Rhode Island.
Chapter 11 Petition Date: October 6, 2019
Court: United States Bankruptcy Court
District of New Hampshire (Concord)
Case No.: 19-11393
Debtor's Counsel: Peter N. Tamposi, Esq.
THE TAMPOSI LAW GROUP, P.C.
159 Main Street
Nashua, NH 03060
Tel: 603-204-5513
E-mail: peter@thetamposilawgroup.com
Total Assets: $166,815
Total Liabilities: $1,867,955
The petition was signed by Vincent J. Bono, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/nhb19-11393.pdf
BRISTOW GROUP: Says Equity Holders Out of Money in Valuation
------------------------------------------------------------
Bristow Group Inc. and its debtor affiliates asked the U.S.
Bankruptcy Court for the Southern District of Texas, Houston
Division, to approve their Disclosure Statement and confirm their
Plan.
According to the Debtors, the Plan is based on the Restructuring
Support Agreement, which over time and through negotiations has
evolved to reflect a global compromise and settlement among the
Debtors, the Creditors' Committee, and the Supporting Noteholders
consisting of: (i) 99.3% of the principal amount of the Secured
Notes; (ii) 100% of the principal amount of the 2019 Term Loans;
and (iii) 73.6% of the principal amount of the Unsecured Notes
combined.
The Plan enjoys near-unanimous support, with all Voting Classes
having voted overwhelmingly to accept the Plan. While the Debtors
have received certain objections, the majority of such objections
have now been consensually resolved.
The two main objections remaining are from a group of holders of
Bristow Parent's equity interests that are being canceled under the
Plan and lead plaintiffs in a securities class action against the
Debtors that will be discharged under the Plan. These objections
contest the Debtors' valuation and the third-party releases in the
Plan. The Debtors will demonstrate at the Confirmation Hearing
that there simply is insufficient value for any distribution to
holders of existing equity interests.
Among other things, evidence will be presented at the Combined
Hearing showing that the Ad Hoc Equity Committee's valuation is
deeply flawed and is off in its calculations by several hundred
million dollars. Further, with respect to the third-party release
objections, the third-party releases in the Plan are consensual and
permissible under applicable law in this Circuit because all
Classes of Claims and Interests had the ability to "opt out" from
such releases.
A copy of the Memorandum of Law in Support of Approval of the
Disclosure Statement and confirmation of the Plan is available at
https://is.gd/6YNWGG
About Bristow Group
Bristow Group Inc. (OTC: BRSWQ) -- http://www.bristowgroup.com/--
provides industrial aviation and charter services to offshore
energy companies in Europe, Africa, the Americas, and the Asia
Pacific. It also provides search and rescue services for
governmental agencies and the oil and gas industry. Headquartered
in Houston, Bristow Group employs 3,000 individuals around the
world.
Bristow Group and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-32713) on
May 11, 2019. As of Sept. 30, 2018, the Debtors had $2.861 billion
in assets and $1.886 billion in liabilities.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Baker Botts LLP as bankruptcy counsel; Wachtell,
Lipton, Rosen & Katz as co-counsel with Baker Botts; Alvarez &
Marsal and Houlihan Lokey Capital, Inc., as financial advisors; and
Prime Clerk LLC as claims, noticing and solicitation agent.
Henry Hobbs Jr., the acting U.S. trustee for Region 7, appointed
seven creditors to serve on the official committee of unsecured
creditors in the Chapter 11 cases of Bristow Group Inc. and its
affiliates. The Committee selected Kramer Levin Naftalis & Frankel
LLP as its legal counsel. Porter Hedges LLP is the Committee's
local and conflicts counsel. Imperial Capital, LLC, is the
Committee's financial advisor, and Perella Weinberg Partners LP is
the investment banker.
BRISTOW GROUP: Says It Has Won Approval of Reorganization Plan
--------------------------------------------------------------
Bristow Group Inc. said that on Oct. 4, 2019, the U.S. Bankruptcy
Court for the Southern District of Texas confirmed the Company's
Amended Plan of Reorganization and indicated that it will enter a
written order to this effect.
The Company expects to consummate its financial restructuring
process and successfully emerge from Chapter 11 by Oct. 31, 2019.
Upon emergence as a privately held Company, Bristow's largest
owners are expected to be affiliates of Solus Alternative Asset
Management LP, South Dakota Investment Council, Empyrean Capital
Partners, LP, Bain Capital Credit and Oak Hill Advisors, who are
expected to own in excess of 50% of Bristow's equity collectively,
with the remaining equity held by other secured creditors and
unsecured noteholders.
Under the terms of the approved Plan, at emergence the Company will
receive $535 million of new capital from a majority of Bristow's
secured and unsecured noteholders: (i) $385 million through an
equity rights offering, and (ii) Bristow's $150 million
debtor-in-possession loan, which was funded in August 2019 and will
convert into new equity of the reorganized Company at emergence.
L. Don Miller, President and Chief Executive Officer of Bristow,
said, "Achieving Plan confirmation is an important milestone that
comes less than five months after we initially filed Chapter 11. As
a reorganized Company, we will emerge a stronger, well capitalized
global organization with an industry-leading balance sheet and
strong liquidity. I commend the entire global Bristow organization
for working diligently to navigate the restructuring process while
flying safely and continuing to provide exceptional client service.
I also express my gratitude to our clients for their continuing
confidence in Bristow during this process. We look forward to
continuing to work with our new owners, who have been very
supportive of our global team and greatly value our market leading
position."
The consummation of the Plan will be subject to the satisfaction or
waiver of several conditions, including completion of the equity
rights offering.
The full terms of the Plan and Disclosure Statement, as well as the
related pleadings, are available online at:
https://cases.primeclerk.com/Bristow
About Bristow Group
Bristow Group Inc. (OTC: BRSWQ) -- http://www.bristowgroup.com/--
provides industrial aviation and charter services to offshore
energy companies in Europe, Africa, the Americas, and the Asia
Pacific. It also provides search and rescue services for
governmental agencies and the oil and gas industry. Headquartered
in Houston, Bristow Group employs 3,000 individuals around the
world.
Bristow Group and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-32713) on
May 11, 2019. As of Sept. 30, 2018, the Debtors had $2.861 billion
in assets and $1.886 billion in liabilities.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Baker Botts LLP as bankruptcy counsel; Wachtell,
Lipton, Rosen & Katz as co-counsel with Baker Botts; Alvarez &
Marsal and Houlihan Lokey Capital, Inc., as financial advisors; and
Prime Clerk LLC as claims, noticing and solicitation agent.
Henry Hobbs Jr., the acting U.S. trustee for Region 7, appointed
seven creditors to serve on the official committee of unsecured
creditors in the Chapter 11 cases of Bristow Group Inc. and its
affiliates. The Committee selected Kramer Levin Naftalis & Frankel
LLP as its legal counsel. Porter Hedges LLP is the Committee's
local and conflicts counsel. Imperial Capital, LLC, is the
Committee's financial advisor, and Perella Weinberg Partners LP is
the investment banker.
The supporting unsecured noteholders are represented by Kirkland &
Ellis LLP as legal counsel, Ducera Partners as financial advisor,
and Seabury Group as restructuring advisor.
The supporting secured noteholders are represented by Davis Polk &
Wardell LLP and Haynes & Boone LLP as legal counsel and PJT
Partners as financial advisor.
BUCKEYE PARTNERS: Moody's Assigns Ba3 Corp. Family Rating
---------------------------------------------------------
Moody's Investors Service assigned a Ba3 Corporate Family Rating
and a SGL-3 Speculative Grade Liquidity rating to Buckeye Partners,
L.P., as well as a Ba1 rating to the proposed acquisition related
$1.75 billion secured term loan due 2026, $600 million secured
revolving facility due 2024 and $500 million secured notes due 2027
(together, secured debt). Buckeye's Baa3 senior unsecured rating
and Ba1 junior subordinated notes rating remain on review for
downgrade. However, at the close of Buckeye's planned acquisition
by IFM Global Infrastructure Fund (unrated), Moody's will downgrade
the company's senior unsecured notes to B1 and its junior
subordinated notes to B2. At that time, the rating outlook will be
changed to stable.
This ratings review was initiated on May 13, 2019 after Buckeye
announced it was being acquired and taken private by IFM, a global,
open-ended private infrastructure investment fund. The acquisition
is likely to close by year end 2019. IFM plans to finance the
acquisition with $4.25 billion of equity funding and by issuing
secured debt at one of its newly created subsidiaries, which will
be subsequently merged with Buckeye after the close of the
acquisition.
The Ba1 ratings on Buckeye's proposed first lien senior secured
credit facilities and first lien senior secured notes are two
notches higher than the Ba3 CFR. These Ba1 ratings reflect the
instruments' priority position in the capital structure and the
benefit of the loss absorption provided by the unsecured debt below
them. Moody's assigned ratings assume that there will be no
material variation from the draft credit terms and documentation
reviewed.
The downgrade of the unsecured notes reflects the substantial
increase in Buckeye's financial leverage with pro forma debt to
EBITDA increasing to over 6.5x from 4.3x once the company's
partially debt financed acquisition by IFM is complete. It also
reflects the introduction of a significant amount of secured debt
which now has a priority position in the capital structure.
Assignments:
Issuer: Buckeye Partners, L.P.
Probability of Default Rating, Assigned Ba3-PD
Speculative Grade Liquidity Rating, Assigned SGL-3
Corporate Family Rating, Assigned Ba3
Senior Secured Revolving Credit Facility, Assigned Ba1 (LGD2)
Senior Secured Term Loan, Assigned Ba1 (LGD2)
Senior Secured Regular Bond/Debenture, Assigned Ba1 (LGD2)
RATINGS RATIONALE
Buckeye's Ba3 CFR reflects the company's high pro forma financial
leverage with debt to EBITDA estimated at over 6.5x and $650
million of notes maturing in February 2021. Buckeye would need to
demonstrate meaningful leverage reduction through a combination of
earnings growth boosted by growth projects and debt repayment in
order for further credit accretion. After the going-private
transaction is complete, Buckeye's financial strategy under IFM's
ownership will be viewed as being less conservative than it has
historically been as evidenced by the high pro forma leverage and
introduction of secured debt in the capital structure. Nonetheless,
Buckeye's CFR is supported by the company's significant scale with
about $900 million in EBITDA and its stable refined product
pipelines and complementary terminals that form the majority of its
assets and cash flow. Buckeye intends to continue to pursue growth
through accretive projects such as the South Texas Gateway Terminal
and the Chicago Complex. The CFR also incorporates Moody's
understanding that IFM will not take distributions over the next
few years while the company focuses on deleveraging.
The SGL-3 Speculative Grade Liquidity Rating reflects Moody's
expectation of Buckeye's adequate liquidity, recognizing that its
stable cash flow and lack of partnership cash distributions going
forward will help Buckeye generate positive free cash flow in 2020
and 2021. The excess free cash flow is likely to be used to repay
debt and fund growth capex needs. Buckeye will replace its existing
$1.5 billion revolver with the new $600 million secured revolver.
Moody's expects intermittent drawings on the revolver, and does not
expect full availability in all periods. The term loan's proposed
covenants include maintaining a maximum first lien net leverage
ratio of 4.5x that springs when the revolver is at 35% utilization.
Moody's expects Buckeye to remain well in compliance with this
covenant at least through the 2020. Buckeye's next debt maturity is
in February 2021 when $650 million of 4.875% unsecured notes come
due.
Buckeye's rating could be downgraded if the company's financial
policies become more aggressive, including debt funded acquisitions
or near-term distributions to the owner. Additionally, Moody's
could downgrade the rating if the company's liquidity deteriorates
or if debt to EBITDA is sustained above 6x beyond 2020. Moody's
could upgrade the ratings (which may include the secured debt
ratings, CFR and/or unsecured debt ratings) if Buckeye can generate
meaningful positive organic growth, and leverage approaches 5.5x.
Buckeye Partners L.P., is a midstream company based in Houston,
Texas. The company's core, legacy assets are its refined products
pipeline systems in the Northeast and Midwest, including
complementary terminals. The company also has wholesale fuel
distribution and marketing and domestic and international
terminaling facilities.
The principal methodology used in these ratings was Midstream
Energy published in December 2018.
C & S JANITORIAL: Nov. 4 Plan Confirmation Hearing Set
------------------------------------------------------
Judge Eduardo V. Rodriguez of the U.S. Bankruptcy Court for the
Southern District of Texas, Houston Division, issued an order
conditionally approving the Chapter 11 Small Business Disclosure
Statement referring to the Plan of Reorganization filed by of C & S
Janitorial Services, Inc., on Sept. 26, 2019.
Oct. 28, 2019, at 5:00 p.m. is fixed as the last day for filing and
serving pursuant to Fed.R.Bankr.P. 3017(c)(2) written objections to
the disclosure statement.
Oct. 28, 2019, at 5:00 p.m. is fixed as the last day for filing and
serving pursuant to Fed.R.Bankr.P. 3020(b)(1) written objections to
confirmation of the plan.
Nov. 4, 2019, at 2:30 p.m. is fixed for the hearing on confirmation
of the plan and final approval of the disclosure statement.
About C & S Janitorial Services
Sergio and Maria Limon, business owners of C & S Janitorial
Services, Inc., founded C & S Janitorial Services in 1991. With
their strong leadership and work ethics, C & S Janitorial Services
has now become one of Houston's leading janitorial companies.
Today, C&S Janitorial manages facility services for industrial,
corporate, government clients, and medical facilities in Houston
and surrounding areas.
C & S Janitorial Services, a full-service janitorial company based
in Houston, Texas, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 19-31497) on March 19,
2019. It previously sought bankruptcy protection on July 10, 2014
(Bankr. S.D. Tex. Case No. 14-33846). At the time of the new
filing, the Debtor was estimated to have assets of less than
$50,000 and liabilities of $1 million to $10 million. The Debtor
tapped the Law Office of Margaret M. McClure as its legal counsel.
CASCADE FAMILY: U.S. Bank Says Amended Plan Not Feasible
--------------------------------------------------------
U.S. Bank National Association, as Trustee for the registered
holders of Waterfall Commercial Mortgage Trust 2015-SBC5,
Commercial Mortgage Pass-Through Certificates, Series 2015-SBC5,
objects to the Amended Plan of Reorganization and Disclosure
Statement of Cascade Family Skating, LLC.
Prior to the Petition Date, the Debtor had not paid real estate
taxes to the Fulton County Tax Commissioner for the Property for
2016 or 2017. After the Petition Date, the Debtor failed to pay
real estate taxes to Fulton County for the Property for 2018 and
2019. The sum of the tax liabilities for 2016, 2017, 2018, and
2019 owed to Fulton County is in excess of $140,000. Under O.C.G.A.
§ 48-2-56(b), the taxes owed to the Fulton County are
first-position liens on the Property.
U.S. Bank believes that the Plan is not feasible because the Debtor
has insufficient funds to pay administrative claims upon
confirmation, the Debtor has insufficient funds to pay future real
estate taxes that will accrue during the life of the proposed Plan,
the Debtor's own financial projections fail to account for payments
toward prepetition real estate taxes and general unsecured claims,
and the Debtor has no ability to pay the balloon payment that it
offers to the Trust under the Plan.
According to U.S. Bank, the Plan cannot be confirmed because the
Debtor is attempting to gerrymander an affirmative vote on the Plan
by ignoring the unsecured claim of the Dept. of Revenue and IRS and
by purporting to give Golden Glide the right to vote.
U.S. Bank National is represented by:
David E. Gordon
Caryn E. Wang
Polsinelli PC
1201 West Peachtree Street, NW, Suite 1100
Atlanta, GA 30309
Tel: (404) 253-6000
E-mail: dgordon@polsinelli.com
E-mail: cewang@polsinelli.com
About Cascade Family
Cascade Family Skating, LLC -- https://atlantafamilyfuncenters.com/
-- owns a family entertainment center that operates a roller
skating rink in Atlanta, Georgia.
Cascade Family Skating sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 18-57159) on April 27,
2018. In the petition signed by Gregory Alexander, president, the
Debtor estimated assets of $1 million to $10 million and
liabilities of $1 million to $10 million. The Debtor tapped
Rountree & Leitman, LLC as its legal counsel. No official
committee of unsecured creditors has been appointed in the Chapter
11 case.
CHICK LUMBER: U.S. Trustee Forms 3-Member Committee
---------------------------------------------------
The Office of the U.S. Trustee on Oct. 3, 2019, appointed three
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case of Chick Lumber, Inc.
The committee members are:
(1) Britton Lumber Company, LLC
P.O. Box 389 Fairlee, VT 05045
Attention: Robert E. Moses
President (802) 333-8112
rmoses@brittonlumber.com
(2) Huttig Building Products
555 Maryville University Drive, Suite 400
St. Louis, MO 63141
Attention: Staci Cima
Corporate Credit Manager
(314) 216-2808
scima@huttig.com
(3) Warren Trask Company, Inc.
P.O. Box 4110 Woburn, MA 01888
Attention: Vincent J. Micale, President
(508) 946-0126
sdeterra@warrentraskcompany.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Chick Lumber
Chick Lumber, Inc., https://www.chicklumber.com/ -- is a dealer of
lumber, plywood, steel beams, engineered wood, trusses, steel and
asphalt roofing, windows, doors, siding, trim, stair parts, and
finish materials. The company also offers drafting and design,
installation, delivery, outside sales, and plan reading and
estimating services.
Chick Lumber sought Chapter 11 protection (Bankr. D.N.H. Case No.
19-11252) on Sept. 9, 2019, in Concord, New Hampshire. In the
petition signed by Salvatore Massa, president, the Debtor was
estimated to have between $1 million and $10 million in both assets
and liabilities. Judge Bruce A. Harwood oversees the case.
William S. Gannon, PLLC is the Debtor's counsel.
COMMUNITY BUILDERS: Seeks More Time to File Bankruptcy Plan
-----------------------------------------------------------
Community Builders and Capital Development, Inc. asked the U.S.
Bankruptcy Court for the Southern District of Florida to extend the
period during which it has the exclusive right to file a Chapter 11
plan to Dec. 19, and give the company another 60 days from Dec. 19
to solicit acceptances for the plan.
The company said it needs additional time to negotiate a consensual
plan with its lender.
About Community Builders and
Capital Development Inc.
Community Builders and Capital Development, Inc., a tax-exempt
charitable organization in Opa Locka, Fla., sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
19-16724) on May 22, 2019. At the time of the filing, the Debtor
estimated assets of between $1 million and $10 million and
liabilities of the same range. The case is assigned to Judge
Robert A. Mark. Joel M. Aresty P.A. is the Debtor's legal
counsel.
COOL HOLDINGS: Amends GT Capital and Delavaco Unsecured Notes
-------------------------------------------------------------
Cool Holdings Inc. has entered into a first amendment agreement
with GT Capital Inc. to amend the conversion price of a 12.0%
unsecured convertible note for a principal amount of $500,000
originally entered into on Nov. 29, 2018. The previous conversion
price of the Convertible Note was $4.40, and was amended to $1.40.
This amendment to the Convertible Note will become effective on the
date which both (i) the Company's board approves the amendment; and
(ii) all required approvals of NASDAQ are obtained.
Additionally, on Oct. 2, 2019, the Company entered into a first
amendment agreement with Delavaco Holdings Inc. to amend an 8.0%
unsecured promissory note for a principal amount of $2,107,003
originally entered into on Sept. 30, 2018. The amendment to the
Promissory Note included a conversion mechanism to retire the
principal amount together with all accrued and unpaid interest
thereunder through the issuance of shares of common stock, at a
price of $1.40, equal to the Outstanding Note Amount. This
amendment to the Promissory Note will become effective on the date
which both (i) the Company's board approves the amendment; and (ii)
all required approvals of NASDAQ are obtained.
As part of the amendments to the Convertible Note and the
Promissory Note agreed to by GT Capital and Delavaco respectively,
the Company issued to GT Capital 357,143 warrants, and to Delavaco
1,505,003 warrants, exercisable to purchase shares of the Company's
common stock. All those warrants issued are exercisable at any
time, subject to the necessary shareholder and regulatory approvals
being received, six months after the date of issuance for up to a
period of three years at an exercise price of $1.27 per warrant.
About Cool Holdings
Cool Holdings, Inc., formerly known as InfoSonics Corporation --
http://www.coolholdings.com-- is a Miami-based company currently
comprised of OneClick, a chain of retail stores and an authorized
reseller under the Apple Premier Partner, APR (Apple Premium
Reseller) and AAR MB (Apple Authorized Reseller Mono-Brand)
programs and Cooltech Distribution, an authorized distributor to
the OneClick stores and other resellers of Apple products and other
high-profile consumer electronic brands.
Cool Holdings reported a net loss of $27.27 million for the year
ended Dec. 31, 2018, compared to a net loss of $7.54 million for
the year ended Dec. 31, 2017. As of June 30, 2019, the Company had
$13.24 million in total assets, $21.47 million in total
liabilities, and a total stockholders' deficit of $8.23 million.
Kaufman, Rossin & Co., P.A., in Miami, Florida, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 16, 2019, on the Company's consolidated
financial statements for the year ended Dec. 31, 2018, citing that
the Company's significant operating losses raise substantial doubt
about its ability to continue as a going concern.
COOL HOLDINGS: Fails to Regain Compliance with Nasdaq Listing Rule
------------------------------------------------------------------
Cool Holdings, Inc., received a letter from the Nasdaq Listing
Qualifications Staff on Oct. 1, 2019 advising that the Staff had
determined that: (i) the Company had not regained compliance with
Nasdaq Listing Rule 5550(b) requiring a minimum $2,500,000
stockholders' equity, $35,000,000 market value of listed
securities, or $500,000 net income from continuing operations; and
(ii) unless the Company requested an appeal of this determination
by Oct. 8, 2019, trading of the Company's common stock would be
suspended from The Nasdaq Capital Market at the opening of business
on Oct. 10, 2019 and a Form 25-NSE would be filed with the
Securities and Exchange Commission to remove the Company's
securities from listing and registration on The Nasdaq Stock
Market. The Company intends to submit an oral hearing request on
or before Oct. 8, 2019 to the Nasdaq Hearings Panel, which request
will stay the Delisting.
At the Panel hearing regarding the Delisting, the Company intends
to present a plan to regain compliance with the minimum
stockholders' equity requirement. The Company's presentation will
include a discussion of the Company's pending plans to convert a
substantial amount of currently outstanding debt to equity and
incentives to current warrant holders to exercise their warrants.
The Company is in the process of filing an amended proxy statement
that will, amongst other things, seek shareholder approval under
Nasdaq Listing Rule 5635(d) for the issuance of shares of its
common stock in connection with the Recapitalization Efforts. The
Panel will rule on whether to grant the Company relief from the
Delisting (including setting forth the specific requirements of any
such relief) or go forward with the Delisting, following the
hearing.
About Cool Holdings
Cool Holdings, Inc., formerly known as InfoSonics Corporation --
http://www.coolholdings.com-- is a Miami-based company currently
comprised of OneClick, a chain of retail stores and an authorized
reseller under the Apple Premier Partner, APR (Apple Premium
Reseller) and AAR MB (Apple Authorized Reseller Mono-Brand)
programs and Cooltech Distribution, an authorized distributor to
the OneClick stores and other resellers of Apple products and other
high-profile consumer electronic brands.
Cool Holdings reported a net loss of $27.27 million for the year
ended Dec. 31, 2018, compared to a net loss of $7.54 million for
the year ended Dec. 31, 2017. As of June 30, 2019, the Company had
$13.24 million in total assets, $21.47 million in total
liabilities, and a total stockholders' deficit of $8.23 million.
Kaufman, Rossin & Co., P.A., in Miami, Florida, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 16, 2019, on the Company's consolidated
financial statements for the year ended Dec. 31, 2018, citing that
the Company's significant operating losses raise substantial doubt
about its ability to continue as a going concern.
COSTA HOLLYWOOD: Seeks Authority for Continued Cash Collateral Use
------------------------------------------------------------------
Costa Hollywood Property Owner, LLC, d/b/a Costa Hollywood Beach
Resort, seeks authority from the U.S. Bankruptcy Court for the
Southern District of Florida to continue use of cash collateral to
operate its business in the ordinary course through Oct. 18, 2019.
The Debtor intends to use cash collateral to preserve jobs, the
value of its estate and to facilitate an orderly sale process for
the Debtor's property as a going concern.
As of the Petition Date, the principal amount owed to Secured
Lender (777 N. Ocean Drive, LLC) is not less than $47,098,758 plus
interest, secured by a first-priority lien on and security interest
on the Debtor's Property. The Collateral is valued at
approximately $50,525,000.
The Debtor proposes to provide the Secured Lender a valid, binding,
continuing, enforceable, fully-perfected, non-avoidable first
priority liens and/or replacement liens on, and security interest
in, all of the Debtor's Property (commonly known as 327 & 319
Pierce Street and 330 & 348 Indiana Street, Hollywood, FL 33019),
to the same extent that such liens and security interests existed
prepetition and subject to any valid, perfected, non-avoidable
senior liens existing as of the Petition Date, and all
post-petition assets of the Debtor of the same type and nature as
the Debtor's Property, and the proceeds thereof.
About Costa Hollywood
Costa Hollywood Property Owner, LLC --
https://www.costahollywoodresort.com/ -- is a privately held
company in the traveler accommodation industry. The Company owns
and operates Costa Hollywood Beach Resort, a resort hotel in
Hollywood Beach, Florida. Costa Hollywood Beach Resort offers rooms
and suites featuring an elevated design aesthetic and luxe decor.
The Company sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 19-22483) on Sept. 19, 2019. In
the petition signed by Moses Bensusan, manager and sole member, the
Company was estimated to have assets ranging from $50 million to
$100 million and liabilities of the same range. Peter D. Russin,
Esq. at MELAND RUSSIN & BUDWICK, P.A. serves as the Company's
bankruptcy counsel. The Hon. Raymond B. Ray is the case judge.
CYN RESTAURANTS: May Continue Using Cash Collateral Until Oct. 31
-----------------------------------------------------------------
The Hon. Ann M. Nevins of the U.S. Bankruptcy Court for the
District of Connecticut has entered a twenty-second preliminary
order authorizing Cyn Restaurants LLC to collect and use the cash
collateral to continue the usual and ordinary course of its
business by paying those budgeted expenditures through Oct. 31,
2019, as set forth on the budget.
Any objection to the continued use of cash collateral must be filed
and served no later than Oct. 21, 2019 at 5:00 p.m. A further
hearing on the continued use of cash collateral will be held on
Oct. 23, 2019, at 10:00 a.m.
The approved Budget for October 2019 provides total cash
disbursements of approximately $63,349. However, the Debtor will
be allowed a 8% variance per line item for expenses and to that
extent, it may transfer between line items but in no event will the
aggregate expenditures for any budget period exceed the total
amount of expenditures for such budget period set forth on the
budget.
Prior to the Petition Date, the Debtor and Webster Bank, and also
Community Investment Corp. were parties to Loans and Security
Agreements pursuant to which, among other things, Webster Bank and
Community Investment Corp. provided the Debtor with a loans and
credit facilities secured by liens and/or security interests in
substantially all of the Debtor's assets.
As of the Petition Date, the Debtor was indebted to Webster Bank in
the aggregate amount of $382,176 and was also indebted to Community
Investment Corp. in the aggregate amount of $208,000.
Webster Bank and Community Investment Corp. are each granted
postpetition claims against the Debtor's estate, which will have
priority in payment over any other indebtedness and/or obligations
now in existence or incurred hereafter by the Debtor and over all
administrative expenses or charges against the Debtor's property.
As security for the Adequate Protection Claim, Webster Bank and
Community Investment Corp. are each granted enforceable and
perfected replacement liens and/or security interests in the
post-petition assets of the Debtor's estate equivalent in nature
priority and extent to the liens and/or security interests of
Webster Bank and Community Investment Corp., in the Prepetition
Collateral and the proceeds and products thereof.
Additionally, the Debtor will pay Webster Bank $1,360 as adequate
protection for March, 2019. The Debtor will also continue to keep
the Collateral fully insured against all loss, peril and hazard and
make Webster Bank and Community Investment Corp. loss payees as
their interests appear under such policies.
About Cyn Restaurants
Based in Shelton, Connecticut, Cyn Restaurants LLC is engaged in
the business of the operation of a restaurant known as Stone's
Throw located at 337 Roosevelt Drive, Seymour, CT.
Cyn Restaurants filed a Chapter 11 petition (Bankr. D. Conn. Case
No. 18-30185) on Feb. 5, 2018. In the petition signed by Peter
Hamme, the Debtor estimated $100,000 to $500,000 in assets and
$500,001 to $1 million in liabilities. James M. Nugent, Esq., at
Harlow, Adams & Friedman, P.C., is the Debtor's counsel; and Sound
Coaching, Inc., is its accountant.
DASA ENTERPRISES: Exclusivity Period Extended Until Oct. 28
-----------------------------------------------------------
Judge Jerry Brown of the U.S. Bankruptcy Court for the Eastern
District of Louisiana extended the period during which only Dasa
Enterprises, Inc. can file a Chapter 11 plan to Oct. 28.
The company can solicit acceptances for the plan until Jan. 13,
2020.
About Dasa Enterprises
Based in New Orleans, LA, DASA Enterprises, Inc., is a single asset
real estate debtor as defined in 11 U.S.C. Section 101(51B). The
Company previously sought bankruptcy protection on March 18, 2014
(Bankr. E.D. La. Case No. 14-10609).
DASA Enterprises filed a Chapter 11 petition (Bankr. E.D. La. Case
No. 19-11064) on April 22, 2019. In the petition signed by Sidney
Abusch, president, the Debtor disclosed $1,865,000 in assets and
$2,364,019 in liabilities. The Hon. Jerry A. Brown oversees the
case. Leo D. Congeni, Esq., at Congeni Law Firm, LLC, serves as
bankruptcy counsel to the Debtor. Patrick J. Gros, CPA, APAC,
serves as accountant to the Debtor.
DIGITAL COMMUNICATION: Reaches Deal With Lenders on Plan
--------------------------------------------------------
Digital Communication Solutions, LLC, Citizens Bank N.A., Ally
Bank, Paragon Financial Group, Inc., and Platinum Rapid Funding,
who stipulate and agree to the entry of an order confirming the
Second Amended Combined Plan and Disclosure Statement of Digital
Communication.
The stipulation provides that the Plan will be modified as
follows:
Class I: The Final Financing Order requires that Paragon
Financial Group, Inc., be paid all outstanding postpetition
obligations upon confirmation of the Plan. The Debtor, however,
does not contemplate that Paragon will be paid in full upon
confirmation of the Plan. The liens and first priority security
interest granted to Paragon will be preserved and remain in full
force upon confirmation. After confirmation, the Reorganized
Debtor and Paragon will be entitled to modify the terms of the
Postpetition Agreements.
Class III: Citizens Bank N.A.'s secured claim of $6,417.71
will be paid the sum of $124.13 per month, which included a 6.02%
interest for 60 months.
Class VII: Ally Bank, which filed a claim of $8,180, will have
an allowed secured claim of $6,200. Ally will be paid the sum of
$121.31 per month, which includes 6.5% interest, for 60 months.
Class X: Platinum Funding Group, Inc.'s secured claim in the
amount of $38,000 will be paid the sum of $633.33 per month, which
included 0.0% interest for 60 months or until $38,000 is paid. The
deficiency of $49,166 shall be treated as a general unsecured claim
pursuant to Class XIII.
About Digital Communication Solutions
Headquartered in Michigan, Digital Communication Solutions, LLC --
http://www.technologiesbydcs.com/-- is a full-service company
offering technology products for both residential and commercial
applications in the cable industry, home theaters, media centers,
security cameras, networks, phone systems, and construction
services.
Digital Communication Solutions, LLC, based in Walled Lake, MI,
filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 19-45385)
on April 9, 2019. In the petition signed by Kent Culp, member, the
Debtor estimated $0 to $50,000 in assets and $1 million to $10
million in liabilities. The Hon. Thomas J. Tucker oversees the
case. Elliot G. Crowder, Esq., at Stevenson & Bullock, P.L.C.,
serves as bankruptcy counsel to the Debtor.
EAST COAST INVEST: DOJ Watchdog Seeks Dismissal, Ch. 11 Trustee
---------------------------------------------------------------
Nancy J. Gargula, United States Trustee for Region 21, asks the
Court for entry of an Order dismissing or converting the Chapter 11
case of East Coast Invest LLC, or, alternatively, directing the
appointment of a chapter 11 trustee.
The Bankruptcy Code contemplates only four (4) possible resolutions
to this problem:
1. the Court can convert the case to chapter 7 for "cause" under
Chapter 11
2. the Court can dismiss this case or abstain in favor of the
receivership proceedings
3. the Court can direct the appointment of a chapter 11 trustee
to manage the debtors' affairs
4. the Court can reinstate the Debtor's prior management as
debtor in possession.
Accordingly, the fourth option is not a viable alternative for
resolving the management gap in this case. However, the United
States Trustee submits that the management vacuum that currently
exists provides sufficient cause now for the Court to employ one of
the first three (3) options, i.e. dismissal, conversion or the
appointment of a chapter 11 trustee. Upon the finding of such
cause, the Court must act in order to protect the estates and its
creditors.
Mikhaylov and the Mikhaylov Trust, both beneficial owners of the
Debtor, commenced a State Court Action alleging that Zinoviev, et
al., also beneficial owners of ECI, "breached fiduciary duties,
conspired to steal money from [Mikhaylov and the Mikhaylov Trust],
attempted to steal the ownership interests in ECI." Subsequently,
Mikhaylov filed the Plaintiff's Motion for Temporary Injunction,
Asset Freeze, and Expedited Discovery in the State Court Action.
On October 16, 2018, the State Court entered the Asset Freeze
Order, pursuant to which the parties were directed to "mutually
agree upon a forensic examiner and independent overseer for the
Seneca Town Center project and the East Coast Invest LLLP assets as
well as the [ECI] assets.
Approximately nine (9) months after entry of the Receiver Order, on
August 6, 2019, the State Court entered the Order Authorizing
Bankruptcy which provided inter alia that "as Receiver for East
Coast Invest, LLLP, the sole managing member of ECI.
On the Petition Date, the Receiver also filed (i) the Motion to
Recognize Receiver as DIP Or Excusing Turnover; and (ii)
applications pursuant to Chapter 11 seeking authority to retain (a)
Kapila Mukamal as the Debtor's accountants and financial advisor;
and (b) the Markowitz firm as the Debtor's general counsel.
The Receiver has not yet determined whether the Mikhaylov Trust
Claim is a valid secured claim against the Debtor's estate. The
U.S. Trustee has not appointed a trustee or an examiner in this
case, nor has the U.S. Trustee appointed an unsecured creditors'
committee.
By this Motion, the United States Trustee seeks entry of an Order
dismissing or converting this case or alternatively appointing a
chapter 11 trustee.
The United States Trustee submits that upon the limited information
available, it is unclear whether conversion of the bankruptcy case
would be a more appropriate remedy than dismissal or appointment of
a chapter 11 trustee.
Accordingly, the United States Trustee asks for the entry of an
order dismissing or converting this case or alternatively directing
the appointment of a chapter 11 trustee; and granting such other
and further relief as this Court may deem just and proper. The
United States Trustee believes that if this Court were to reinstate
ECI's prior management, based on the facts and circumstances of
this case, cause would immediately exist to replace that management
with a chapter 11 trustee.
About East Coast Invest
East Coast Invest LLC is a privately held company whose principal
assets are located at 3195 W. hallandale Beach Blvd., Hollywood,
Fla.
East Coast Invest sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-20513) on Aug. 6,
2019.
At the time of the filing, East Coast Invest had estimated assets
of between $1 million and $10 million and liabilities of between
$10 million and $50 million.
The case has been assigned to Judge John K. Olson.
East Coast Invest tapped Markowitz, Ringel, Trusty & Hartog, P.A.
as its legal counsel, and Barry Makumal as its accountant and
financial advisor.
ELECTRONIC SERVICE: May Continue Cash Collateral Use Until Dec. 31
------------------------------------------------------------------
Judge Ann M. Nevins of the U.S. Bankruptcy Court for the District
of Connecticut authorized Electronic Service Products Corporation
to continue the use of cash collateral in accordance with the
budget until Dec. 31, 2019.
The budget during the months of September, October, November and
December the provides total projected monthly expense of
approximately $71,770. The Debtor is also authorized to pay U.S.
Trustee's fees that become due before Dec. 31.
As adequate protection to the Secured Creditor for the Debtor's use
of cash collateral and for any diminution in the collateral, the
Secured Creditor is granted the following:
(A) A continuing postpetition lien and security interest in
all prepetition property of the Debtor as it existed on the
Petition Date, of the same type against which Secured Creditor held
validly protected liens and security interests as of the Petition
Date.
(B) A continuing postpetition lien in all property acquired by
the Debtor after the Petition Date. The replacement liens will
maintain the same priority, validity and enforceability as Secured
Creditor's liens on the initial collateral and will be recognized
only to the extent of any diminution in the value of the collateral
resulting from the use of cash collateral.
(C) To the extent the replacement liens granted to Secured
Creditor are insufficient to compensate Secured Creditor for any
diminution in value of the collateral, Secured Creditor will be
entitled to a super-priority administrative claim pursuant to 11
U.S.C. Section 503(b) of the Bankruptcy Code, and Secured Creditor
will be entitled to the protections of and the priority set forth
in 11 U.S.C. Section 507(b).
About Electronic Service Products
Founded in 1992, Electronic Service Products Corporation is engaged
in the wholesale distribution of electronic parts and electronic
communications equipment.
Electronic Service Products filed a Chapter 11 petition (Bankr. D.
Conn. Case No. 17-30704) on May 12, 2017. In the petition signed
by William Hrubiec, its president, the Debtor was estimated to have
$100,000 to $500,000 in assets and $1 million to $10 million in
liabilities. The case is assigned to Judge Ann M. Nevins. The
Debtor tapped William E. Carter, Esq., at the Law Office of William
E. Carter, LLC, as counsel.
EP ENERGY: Files for Chapter 11 with Deal to Reduce Debt by $3.3BB
------------------------------------------------------------------
EP Energy Corporation and its subsidiaries, including EP Energy E&P
Company, L.P., sought Chapter 11 protection after reaching terms of
a restructuring plan that would reduce debt by $3.3 billion and
annual debt service obligations by $263 million.
EP Energy, which currently owes $4.6 billion in debt, marks the
largest bankruptcy among U.S. oil and gas producers since 2016.
After extensive negotiations with its stakeholders, the Company has
reached an agreement in principle with noteholders holding
approximately 27.6% of the Debtors' 1.25L Notes and noteholders
holding approximately 71.2% of the Debtors' 1.5L Notes, including
affiliates of, or funds managed by Elliott Management Corporation,
Apollo Global Management, LLC, and certain other holders -- Initial
Supporting Noteholders -- with respect to a plan of reorganization
to be filed with the Court in the early stages of these Chapter 11
Cases.
The transactions contemplated in the Restructuring Term Sheet will
strengthen the Company's balance sheet by substantially reducing
its debt, increase its cash flow on a go-forward basis, and
preserve in excess of 500 jobs.
The Plan will provide for a substantial reduction of the Company's
existing funded debt by approximately $3.3 billion and reduce the
Company's annual debt service obligations by up to $263 million.
The vast majority of the Company's operational creditors, such as
trade vendors (most of which benefit from statutory liens and/or
setoff rights under state law) and employees, are expected to be
unimpaired and satisfied in full in the ordinary course of
business.
Capital Structure
As of the bankruptcy filing date, the Debtors have funded debt
obligations in the aggregate amount of approximately $4.909
billion, consisting of:
(i) $629 million in reserve-based revolving loans,
(ii) $1 billion in senior secured 1.125L Notes,
(iii) $500 million in senior secured 1.25L Notes,
(iv) $2.092 billion in senior secured 1.5L Notes, and
(v) $688 million in senior Unsecured Notes.
JPMorgan Chase Bank, N.A. is administrative agent and collateral
agent under the RBL Facility. BOKF, NA, is indenture trustee and
notes collateral agent under the 1.125L Notes. UMB Bank, N.A., is
the indenture trustee and notes collateral agent for the 1.25L
Notes. Wilmington Trust, National Association, is the indenture
trustee and notes collateral agent, for the 2024 1.5L Notes, 2025
1.5L Notes, and 2020 Unsecured Notes. Wilmington Services Fund
Society, FSB, is the indenture trustee for the 2022 Unsecured
Notes, and 2023 Unsecured Notes.
The Company has other obligations that do not consist of long-term
funded debt. Among other things, the Company is a defendant in
numerous civil actions that may give rise to substantial unsecured
claims, most of which are contingent, unliquidated, and disputed.
The Company has a number of unsecured prepetition obligations to
certain of its vendors that do not benefit from state-law lien
rights or setoff rights.
EP Energy is a public company and files annual reports with, and
furnishes other information to, the Securities and Exchange
Commission. Until May 2019, the Class A common stock of EP Energy
was traded on the NYSE under the symbol "EPE." Trading in the
Company's Class A common stock was suspended on May 23, 2019 and,
beginning on May 24, 2019, the Class A common stock of the Company
began trading on the OTC Pink marketplace under the symbol "EPEG".
EP Energy's Class A common stock is currently held 39.0% by Apollo,
13.7% by Access, 12.3% by Riverstone, 12.3% by KNOC, and 22.7% by
other shareholders.
The effect of the restructuring on the Company's capital structure
will be:
Prepetition Post-Restructuring
----------- ------------------
Reserve Based Revolving Loans: $629 million $629 million*
(converts to Exit Facility)
1.125L senior secured notes: $1,000 million $1,000 million
1.25L senior secured notes: $500 million $350-$362 million
1.5L senior secured notes: $2,092 million Equity
(converts to Equity)
Unsecured Notes: $688 million Equity
(Converts to Equity) -------------- --------------
Total Funded Debt $4.909 billion $1.553 –
$1.565 billion
Agreement in Principle by the Parties
A. DIP / Cash Collateral:
* Roll-up of up to 50.0% of the RBL to first out DIP
facility.
* DIP rolls into New RBL facility at emergence.
B. Equity Rights Offering
* Up to $475mm equity rights offering of which $463 million
will be backstopped; plan TEV of $2.5 billion
* $325 million in the form of cash at 35.0% discount
backstopped by Apollo, Elliott and other 1.5L Noteholders.
* Up to $150 million funded through equitizing reinstated par
amount of 1.25L Notes (accrued and unpaid interest to be paid in
cash) at a 25.7% discount of which $138mm is currently backstopped
and committed by Apollo and Elliott.
* The Company may also consummate a private placement of
equity up to $75mm, in cash, with the consent of and on terms
acceptable to Apollo and Elliott.
* Cash backstop and uncommitted non-cash backstop for equity
rights offering to be open to all eligible 1.5L Noteholders within
10 Business Days of Petition Date.
* Backstop fee of 8.0% on cash portion of equity rights
offering.
C. New RBL
* Maximum net debt at emergence of $1.600 billion.
* Minimum liquidity at emergence of $350 million.
* Any lenders not agreeing to participate in the New RBL
facility would have existing commitments rolled into last out
piece.
D. 1.125L Notes: Existing 1.125L secured notes reinstated on
current terms or such other terms as agreed to by the Company,
Apollo, and Elliott
E. 1.25L Notes: Existing 1.25L secured notes, post equitization,
reinstated on current terms or such other terms as agreed to by the
Company, Apollo, and Elliott.
F. 1.5L Notes: 99.0% of pre-money equity.
G. GUCs: 1.0% of pre-money equity.
H. Existing Equity: $500,000
I. Employee Incentive Plan: 10% with terms to be agreed
concurrently with entry into Backstop Agreement.
J. Other: On the effective date of the plan, Apollo and Access
may contribute their equity interests in Jeter Drillco in exchange
for new common equity shares, subject to the agreement of the
Company, Apollo, Access and Elliott.
About EP Energy
EP Energy Corporation and its direct and indirect subsidiaries (OTC
Pink: EPEG) -- http://www.epenergy.com/-- are a North American oil
and natural gas exploration and production company headquartered in
Houston, Texas. The Debtors operate through a diverse base of
producing assets and are focused on the development of drilling
inventory located in three areas: the Eagle Ford shale in South
Texas, the Permian Basin in West Texas, and Northeastern Utah.
EP Energy Corporation and its subsidiaries sought Chapter 11
protection on Oct. 3, 2019, after reaching a deal with Elliott
Management Corporation, Apollo Global Management, LLC, and certain
other noteholders on a bankruptcy exit plan that would reduce debt
by 3.3 billion.
The lead case is In re EP Energy Corporation (Bankr. S.D. Tex. Lead
Case No. 19-35654).
EP Energy was estimated to have $1 billion to $10 billion in assets
and liabilities as of the bankruptcy filing.
The Hon. Marvin Isgur is the case judge.
The Debtors tapped WEIL, GOTSHAL & MANGES LLP as counsel; EVERCORE
GROUP L.L.C. as investment banker; and FTI CONSULTING, INC., as
financial advisor. PRIME CLERK LLC is the claims agent.
EP ENERGY: Moody's Affirms Ca CFR, Outlook Negative
---------------------------------------------------
Moody's Investors Service changed EP Energy's Probability of
Default Rating to D-PD from Ca-PD/LD following the company's filing
voluntary petitions in the United States Bankruptcy Court for the
Southern District of Texas, seeking relief under the provisions of
Chapter 11 of title 11 of the United States Code. Concurrently,
Moody's affirmed EPE's Ca Corporate Family Rating, Caa1 rating on
the 1-1/8 lien senior secured notes due 2026, Ca rating on the
1-1/4 lien senior secured notes due 2024, C ratings on the 1-1/2
lien senior secured notes due 2024 and 2025, and C rating on the
senior unsecured notes. The SGL-4 Speculative Grade Liquidity
Rating remains unchanged. The rating outlook is negative.
Moody's will withdraw all of EPE's ratings and outlook shortly
after the actions.
Downgrades:
Issuer: EP Energy LLC
Probability of Default Rating, Downgraded to D-PD from Ca-PD /LD
Outlook Actions:
Issuer: EP Energy LLC
Outlook, Remains Negative
Affirmations:
Issuer: EP Energy LLC
Corporate Family Rating, Affirmed Ca
Senior Secured Notes, Affirmed C (LGD5)
Senior Secured 1/4 Lien Notes, Affirmed Ca (LGD3)
Senior Secured 1/8 Lien Notes, Affirmed Caa1 (LGD2)
Senior Unsecured Notes, Affirmed C (LGD6)
RATINGS RATIONALE
EPE's bankruptcy filing has resulted in the company's PDR being
downgraded to D-PD. EPE's other ratings were affirmed since Moody's
view of the potential recoveries for each rated debt instrument is
unchanged from the rating action taken on September 16, 2019.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
EP Energy LLC, headquartered Houston, Texas, is an independent
exploration & production company with operations in the Permian,
Eagle Ford and Altamont basins.
EP ENERGY: Receives Court Approval of First Day Motions
-------------------------------------------------------
EP Energy Corporation on Oct. 4, 2019, announced that the Company
has received approvals from the U.S. Bankruptcy Court for the
Southern District of Texas for the "First Day" motions related to
its voluntary Chapter 11 petitions.
EP Energy reached an agreement in principle on a comprehensive
restructuring with a number of its key creditors.
EP Energy received approval of various motions that will allow the
Company to operate in the normal course during the court-supervised
process. Among other things, the Court has authorized the Company
to continue making payments to its employees, royalty owners and
lessors in the ordinary course of business, including those
payments that were made prior to October 4, 2019. The Company will
also continue to pay vendors in full for goods and services
provided on or after October 4, 2019.
President and Chief Executive Officer Russell Parker said, "We are
pleased to have received approval of our First Day motions, which
will allow us to continue operating our business without
interruption throughout this process. With our agreement in
principle, we look forward to continuing our constructive work with
our creditors and stakeholders to propose a plan of reorganization
that will allow us to reduce our debt significantly and provide the
financial flexibility to continue building our business through the
current market environment. We appreciate the swift action by the
Court to approve these motions as well as the continued partnership
of our royalty owners, lessors, vendors and business partners. All
of us at EP Energy remain focused on operating safely and
efficiently as we continue executing our strategy to enhance our
long-term competitive position."
The Company has received Court approval to use cash on hand and
cash flow generated by the Company’s ongoing operations to
support the business during the court-supervised restructuring
process.
About EP Energy
EP Energy Corporation and its direct and indirect subsidiaries (OTC
Pink: EPEG) -- http://www.epenergy.com/-- are a North American oil
and natural gas exploration and production company headquartered in
Houston, Texas. The Debtors operate through a diverse base of
producing assets and are focused on the development of drilling
inventory located in three areas: the Eagle Ford shale in South
Texas, the Permian Basin in West Texas, and Northeastern Utah.
EP Energy Corporation and its subsidiaries sought Chapter 11
protection on Oct. 3, 2019, after reaching a deal with Elliott
Management Corporation, Apollo Global Management, LLC, and certain
other noteholders on a bankruptcy exit plan that would reduce debt
by 3.3 billion.
The lead case is In re EP Energy Corporation (Bankr. S.D. Tex. Lead
Case No. 19-35654).
EP Energy was estimated to have $1 billion to $10 billion in assets
and liabilities as of the bankruptcy filing.
The Hon. Marvin Isgur is the case judge.
The Debtors tapped WEIL, GOTSHAL & MANGES LLP as counsel; EVERCORE
GROUP L.L.C. as investment banker; and FTI CONSULTING, INC., as
financial advisor. PRIME CLERK LLC is the claims agent.
EP ENERGY: Says Business as Usual While in Chapter 11
-----------------------------------------------------
EP Energy Corporation (OTC Pink: EPEG) announced Oct. 3, 2019, that
it has voluntarily filed petitions for chapter 11 reorganization in
the U.S. Bankruptcy Court for the Southern District of Texas.
EP Energy said in a statement that will continue to operate as
normal throughout this process, and has sufficient liquidity to
support its operations.
The Company has received the consent of its lenders to use cash on
hand and cash flow generated by the Company's ongoing operations to
support the business as it enters the court-supervised process.
EP Energy intends to use this process to reduce its debt
significantly, strengthen its balance sheet and better position the
Company for the long-term.
The decision to undertake this financial restructuring follows a
comprehensive review by a special committee of independent members
of EP Energy's Board of Directors as well as extensive, ongoing
discussions with the Company's creditors. The Company has reached
an agreement in principle on a comprehensive restructuring with a
number of its key creditors. Over the coming days and weeks, EP
Energy will continue working with its creditors and stakeholders to
propose a plan of reorganization that will considerably strengthen
its balance sheet and provide the financial flexibility to continue
building the business through the current market environment.
The EP Energy Board and management team are confident in the
strength of the Company's assets and future of its business.
President and Chief Executive Officer Russell Parker, said, "This
process will allow us to pursue a significant reduction of our debt
in order to enhance EP Energy's long-term competitive position.
Our business operations are expected to continue without
interruption throughout this process, during which we will continue
making improvements to our operational execution and capital
efficiency. The decision to undertake this financial restructuring
follows a comprehensive review by a special committee of
independent members of EP Energy's Board of Directors as well as
extensive, ongoing discussions with our creditors. The Company has
reached an agreement in principle on a comprehensive restructuring
with a number of its key creditors, but made the decision that the
protection of chapter 11 would help the parties get the deal over
the finish line. Over the coming days and weeks, we will continue
working with our creditors and stakeholders to propose a plan of
reorganization that will considerably strengthen our balance sheet
and provide the financial flexibility to continue building our
business through the current market environment."
Mr. Parker continued, "Like other companies in our industry, we
continue to experience challenging dynamics as a result of
depressed commodity prices, and we have been very transparent about
our ongoing efforts to actively manage our capital to control
spending and preserve liquidity. The EP Energy Board and
management team are confident in the strength of our assets and
future of our business, and we would like to thank all our
employees for their continued dedication. Our entire team is
focused on running the company and we are committed to working with
our vendors, royalty owners, lessors and business partners just as
we always have."
In connection with the chapter 11 filing, the Company has filed a
number of customary motions with the Court seeking authorization to
support its operations while this process is ongoing, including
authority to continue to make payments to lessors and royalty
owners in the ordinary course of business, including those payments
that were made prior to October 4, 2019. The Company also expects
to pay vendors in full for goods and services provided on or after
October 4, 2019.
About EP Energy
EP Energy Corporation and its direct and indirect subsidiaries (OTC
Pink: EPEG) -- http://www.epenergy.com/-- are a North American oil
and natural gas exploration and production company headquartered in
Houston, Texas. The Debtors operate through a diverse base of
producing assets and are focused on the development of drilling
inventory located in three areas: the Eagle Ford shale in South
Texas, the Permian Basin in West Texas, and Northeastern Utah.
EP Energy Corporation and its subsidiaries sought Chapter 11
protection on Oct. 3, 2019, after reaching a deal with Elliott
Management Corporation, Apollo Global Management, LLC, and certain
other noteholders on a bankruptcy exit plan that would reduce debt
by 3.3 billion.
The lead case is In re EP Energy Corporation (Bankr. S.D. Tex. Lead
Case No. 19-35654).
EP Energy was estimated to have $1 billion to $10 billion in assets
and liabilities as of the bankruptcy filing.
The Hon. Marvin Isgur is the case judge.
The Debtors tapped WEIL, GOTSHAL & MANGES LLP as counsel; EVERCORE
GROUP L.L.C. as investment banker; and FTI CONSULTING, INC., as
financial advisor. PRIME CLERK LLC is the claims agent.
EVERGREEN PALLET: Gets OK to Use Cash Collateral Until Oct. 11
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas authorized
Evergreen Pallet, LLC, to use the cash collateral of Newtek Small
Business Finance and CDS Business Services, Inc., until Oct. 11,
2019 or until a final hearing on the Debtor's motion can be held,
whichever comes first, following a stipulation reached between the
parties.
Pursuant to the Court-approved Stipulation the Debtor will make an
adequate protection payment to Newtek of $12,000 on or before Nov.
1, 2019 and to CDS of $5,000 on or before November 1, 2019, which
shall be applied towards the inventory loan. Newtek and CDS have
reserved the right to negotiate further adequate protection
payments for the Final Order.
The Court further ruled that Newtek and CDS will (i) retain each of
their prepetition liens in the Debtor's prepetition property, (ii)
be granted a super-priority administrative expense for any
diminution in the value of their collateral and (iii) will beg
ranted a replacement lien in accounts receivable and inventory.
About Evergreen Pallet
Evergreen Pallet LLC is a pallet supplier in Wichita, Kansas.
Evergreen Pallet filed a petition seeking relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 19-21983) on
Sept. 17, 2019. In the petition signed by Jeffrey Ralls, member,
the Debtor listed assets at $1,316,600 and liabilities at
$6,624,679. The Hon. Robert D. Berger is the case judge. KRIGEL &
KRIGEL, PC, is the Debtor's counsel.
F & S ASSOCIATES: To Present Plan for Confirmation Nov. 6
---------------------------------------------------------
F & S Associates LP has won approval of the disclosure statement
explaining its Chapter 11 plan. On Oct. 1, 2019, Judge Thomas J.
Catliota approved the Disclosure Statement and ordered that:
* Oct. 31, 2019, is fixed as the last day of filing written
acceptances or rejections of the Plan.
* Nov. 6, 2019, at 11:30 a.m., is fixed for the hearing on
confirmation of the Plan to take place in Courtroom 3E of the U.S.
Bankruptcy Court, U.S. Courthouse, 6500 Cherrywood Lane, Greenbelt,
Maryland 20770.
As reported in the TCR, F & S Associates has proposed a Chapter 11
plan that provides that
general unsecured creditors will be paid 100% of their claims with
interest at the Legal Interest Rate. The general unsecured
creditors are the Columbia Association ($47,414.49) and the
Internal Revenue Service for the 2014-2016 tax years ($7,048.61).
Secured creditor Branch Limited Partnership with an estimated claim
of $1,973,426.93 plus attorneys' fees, will be paid in full.
A redlined version of the Second Amended Disclosure Statement
dated
September 20, 2019, is available at https://tinyurl.com/y2gdhrtt
from PacerMonitor.com at no charge.
About F & S Associates LP
F & S Associates Limited Partnership based in Columbia, MD, filed a
Chapter 11 petition (Bankr. D. Md. Case No. 19-14947) on April 11,
2019. In its petition, the Debtor estimated $1 million to $10
million in both assets and liabilities. The Hon. David E. Rice
oversees the case. The Coyle Law Group LLC serves as bankruptcy
counsel to the Debtor.
FITRITION LLC: Cash Collateral Use Authorized Through Oct. 31
-------------------------------------------------------------
Bankruptcy Judge Michael E. Romero authorized Fitrition LLC to use
cash collateral pursuant to the Budget attached to the Motion
through Oct. 31, 2019.
To the extent that any party possesses a properly perfected
security interest in the Debtor's cash collateral:
(a) The Debtor will provide such party with a replacement lien
on all postpetition accounts receivable to the extent that the use
of cash collateral results in a decrease in the value of such
party's interest in the cash collateral.
(b) The Debtor will maintain adequate insurance coverage on
all personal property assets and adequately insure against any
potential loss.
(c) The Debtor will provide to such secured party all periodic
reports and information filed with the Bankruptcy Court, including
debtor-in-possession reports.
(d) The Debtor will only expend cash collateral pursuant to
the Budget subject to reasonable fluctuation by no more than 15%
for each expense line item per month, plus any fees owed to the
U.S. Trustee.
(e) The Debtor will pay all post-petition taxes.
(f) The Debtor will retain in good repair all collateral in
which such party has an interest.
The Court will conduct a final hearing on the Debtor's request for
use of cash collateral on Oct. 25, 2019 at 1:30 p.m.
About Fitrition LLC
Fitrition LLC operates the gym Fitrition in the Denver Tech Center
in Syracuse St., in Denver. Fitrition offers a variety of health
and fitness concepts such as barre classes, HIIT classes, and IV
therapy all under one roof. According to its owner, the gym has
about 600 active members, who pay on average about $150 a month.
Fitrition, LLC, sought Chapter 11 protection (Bankr. D. Colo. Case
No. 19-18149) on Sept. 20, 2019. In the petition signed by its
managing member, William H. Coleman III, the Debtor was estimated
to have assets ranging between $100,001 and $500,000 and
liabilities ranging between $500,001 and $1 million. The Debtor is
represented by Wadsworth Garber Warner Conrardy, P.C.
FLAMINGO/TENAYA: Secured Creditor Seeks Ch. 11 Trustee Appointment
------------------------------------------------------------------
7360 Flamingo Las Vegas, LLC, LLC, a Nevada limited liability
company, filed a Motion for Appointment of Chapter 11 Trustee for
Flamingo/Tenaya, LLC, based on the following grounds and the
following reasons:
(1) The Debtor, through its President James Kay, and through the
advice of bankruptcy counsel, committed bankruptcy fraud by
fabricating an unsecured creditor body for the sole purpose of
creating an impaired consenting class.
(2) The Debtor stalled payment of its pre-petition debts, but
then inexplicably paid all of its unsecured creditors days after
the Petition Date, as evidenced by the testimony of the unsecured
creditors and Debtor's bank statements and cancelled checks.
(3) The Debtor pilfered its operating account one month before
the Petition Date to create the illusion that it was insolvent and
unable to pay four of its unsecured creditors, and failed to
disclose its other bank accounts in its Schedules and Statements.
(4) The Debtor paid professionals post-petition without
obtaining prior bankruptcy court approval, and transferred hundreds
of thousands of dollars to the law firm of Mazur & Brooks
pre-petition and post-petition.
(5) The Debtor is in contempt of this Court's 2004 Order and the
Subpoena.
(6) A Chapter 11 Trustee should be appointed immediately, as
this bankruptcy case was filed in the furtherance of stalling
Secured Creditor's pre-petition foreclosure of the Property, which
is Debtor's sole asset.
About Flamingo/Tenaya LLC
Based in Las Vegas, Nevada, Flamingo/Tenaya, LLC is engaged in
activities related to real estate. It filed as a domestic limited
liability company in Nevada on March 5, 2003.
Flamingo/Tenaya sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Case No. 17-16614) on Dec. 12,
2017. At the time of the filing, the Debtor estimated assets of $1
million to $10 million and liabilities of $1 million to $10
million. The case has been assigned to Judge Laurel E. Davis.
FRANCOS TRUCKING: Seeks to Use Cash Thru Dec. 31, Pay on Ranch Debt
-------------------------------------------------------------------
Franco's Trucking, LLC, asks the U.S. Bankruptcy Court for the
District of New Mexico to authorize use of cash collateral nunc pro
tunc from Oct. 1, 2019 to Dec. 31, 2019 to continue operating its
business and administer its bankruptcy case.
As adequate protection, the Debtor will pay Texas Capital Services,
LLC the amount of the regular monthly payments; $5,000 monthly to
New Mexico Taxation and Revenue Department (NMTRD); and $5,000 per
month to the Internal Revenue Service. TCS will apply the adequate
protection payments to the Debtor's obligation under the Loan
Documents, and as permitted by state or federal law in the case of
NMTRD and IRS.
As further adequate protection, the Debtor grants the Cash
Collateral Creditors, effective as of the Petition Date,
replacement liens upon and security interests in all pre-petition
collateral and post-petition collateral to the same extent,
validity and priority of each creditor's liens on the pre-petition
collateral as of the Petition Date.
Moreover, the Debtor seeks the Court's permission to make payments
on a real property mortgage on the ranch owned by the Debtor's
principal, Robert Franco. The ranch is subject to a first mortgage
in favor of First Capital Bank, and the Debtor has been paying
$6,500 on the ranch since the inception of the case. The payments,
however, were not previously disclosed in the budgets attached to
the previous cash collateral orders.
The Debtor is considering a plan of reorganization which provides
for the payment of creditors through the sale of the ranch, which
has been listed for a sales price of $1,500,000. It is estimated
that the sale will allow for a new value infusion estimated to be
from $300,000 to $400,000 after payoff of the mortgage and personal
tax lien.
About Franco's Trucking
Franco's Trucking, LLC, is a trucking company located in Carlsbad,
New Mexico. It is a small business Debtor as defined in 11 U.S.C.
Section 101(51D). The Company sought Chapter 11 protection (Bankr.
D.N.M. Case No. 17-12017) on Aug. 3, 2017, in Albuquerque, New
Mexico.
On the Petition Date, the Debtor was estimated to have assets of
not more than $50,000, and liabilities between $1 million and $10
million. Judge Robert H. Jacobvitz is assigned the case.
ARVIZULAW.COM, LTD., represents the Debtor.
FUSION CONNECT: Exclusive Filing Periods Extended Until Dec. 30
---------------------------------------------------------------
Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York extended the period during which only
Fusion Connect, Inc. and its subsidiaries can file a Chapter 11
plan to Dec. 30.
The companies can solicit acceptances for the plan until Feb. 28,
2020.
About Fusion
Fusion Connect -- http://www.fusionconnect.com/-- provides
integrated cloud solutions to small, medium and large businesses,
is the industry's Single Source for the Cloud. Fusion's advanced,
proprietary cloud services platform enables the integration of
leading edge solutions in the cloud, including cloud
communications, contact center, cloud connectivity, and cloud
computing. Fusion's innovative, yet proven cloud solutions lower
customers' cost of ownership, and deliver new levels of security,
flexibility, scalability, and speed of deployment.
On June 3, 2019, Fusion Connect and each of its U.S. subsidiaries
sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No.
19-11811). Fusion's two Canadian subsidiaries are not included in
the filing.
Fusion disclosed $570,432,338 in assets and $760,720,713 in
liabilities as of April 30, 2019.
Fusion is advised by FTI Consulting and PJT Partners, Inc., as
financial advisors, and Weil, Gotshal & Manges LLP as legal
counsel. Prime Clerk LLC is the claims agent.
The First Lien Ad Hoc Group is advised by Greenhill & Co, LLC, as
financial advisor, and Davis Polk & Wardwell LLP, as legal
counsel.
The U.S. Trustee for Region 2 formed a committee of unsecured
creditors in the Debtors' cases on June 18, 2019. The committee is
represented by Cooley LLP.
GABRIEL INVESTMENT: Seeks Authority to Use PNC Bank Cash Collateral
-------------------------------------------------------------------
Gabriel Investment Group, Inc., and debtor affiliates ask the U.S.
Bankruptcy Court for the Western District of Texas for permission
to use the cash collateral of PNC Bank National Association,
pursuant to a budget.
The budget provides for total expenditures of $1,023,214 for the
week from Oct. 5 through Oct. 12. Of this amount, $504,113 is for
payment to a vendor and $114,000 for other inventory. A copy of
the 15-budget is accessible for free as Exhibit 1 at:
http://bankrupt.com/misc/Gabriel_Investment_14_Cash_MO.pdf
In exchange for the Debtors' use of the cash collateral, the
Debtors propose adequate protection payments to PNC as follows:
* $35,000 during the course of the Chapter 11 cases. This
amount is equal to the contractual interest at the non-default
rate;
* a valid first-priority replacement and additional liens and
security interests, with priority over all other liens and security
interests, save and except for the ad valorem tax liens, upon any
and all assets of Debtors;
* to the extent applicable, an allowed super-priority
administrative expense claim under Section 364(c)(1) of the
Bankruptcy Code, for any diminution in the value of PNC's interest
in the collateral and cash collateral; and
* all of the other benefits and protections allowable under
Sections 503(b) and 507(b) of the Bankruptcy Code;
As further adequate protection, the Debtors will pay the reasonable
fees and expenses of PNC, whether incurred before or after the
Petition Date, as set forth in the applicable Loan Documents;
provided that in connection with any PNC request for reimbursement
of fees, PNC will submit a summary statement of the time and
amounts subject to those reimbursement request to the Debtors, the
U.S. Trustee, and counsel for any Committee.
About Gabriel Investment Group
Gabriel Investment Group, Inc., founded in 1948, operates a chain
of package stores that sell wines, liquors, and beers. As of the
Petition Date, Gabriel operates 15 package store locations as
Gabriel's Liquor and 30 package store locations as Don's & Ben's
Liquor.
Gabriel Investment Group sought relief under Chapter 11 of the
Bankruptcy Code (Bank. W.D. Tex. Lead Case No. 19-52298) on Sept.
27, 2019 in San Antonio Texas. The other debtor affiliates are:
Don's & Ben's Inc. (Bankr. W.D. Tex. 19-52299); Gabriel Holdings,
LLC (Bankr. W.D. Tex. 19-52300); SA Discount Liquors, Inc.,(Bankr.
W.D. Tex. 19-52301); and Gabriel GP, Inc., (Bankr. W.D. Tex.
19-52302). In the petitions signed by Inez Cindy Gabriel,
president, the Debtors were estimated to have assets at $1 million
to $10 million and liabilities within the same range. Judge Ronald
B. King is assigned the Debtors' cases. PULMAN, CAPPUCCIO &
PULLEN, LLP, is the Debtors' counsel.
GANTT TRUCKING: Seeks Access to $1.3M Cash Collateral
-----------------------------------------------------
Gantt Trucking, LLC, seeks permission from the U.S. Bankruptcy
Court for the Middle District of Florida to use $1,300,000 in cash
collateral pursuant to a budget in order to continue its business
operations.
The budget provides for $313,278 in total expenses for the week
from Oct. 4 to Oct. 11, 2019, which amount includes $121,667 for
fuel and $65,225 for payroll. A copy of the budget is available
for free at http://bankrupt.com/misc/Gantt_Trucking_7_Cash_MO.pdf
As adequate protection to Santander Bank, N.A., the Debtor proposes
to grant replacement liens to the extent of any diminution in
value, with such liens to have the same validity, extent, and
priority as their respective pre-petition liens.
As of the Petition Date, the Debtor had cash on hand of
approximately $57,000 and accounts receivable of approximately
$1,100,000.
About Gantt Trucking
Gantt Trucking, LLC, is a Delaware corporation and subsidiary of
co-debtor KJM Capital Transportation Fund, LLC. It owns and
operates a trucking fleet focused largely on hauling fresh poultry
within the Southeast United States and from the Southeast to the
Midwest and Northeast. The fleet consists of approximately 90
company drivers and 9 owner operators.
On Sept. 27, 2019, Gantt Trucking filed a petition for relief under
Chapter 11 of Title 11 of the United States Code (Bankr. M.D. Fla.
Case No. 19-06303). Shuker & Dorris P.A., is the Debtor's
attorney.
Gantt Trucking and six related debtors are seeking joint
administration under lead case KJM Capital Transporation Fund, LLC
(In re M.D. Fla. Case oO. 19-06302).
GARDA WORLD: Moody's Assigns B3 CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service assigned ratings to Garda World Security
Corporation (New) consisting of a B3 corporate family rating, B3-PD
probability of default rating, B1 ratings to the company's proposed
new senior secured revolving credit facility and senior secured
term loan and a Caa2 rating to the new senior unsecured notes. The
ratings outlook is stable.
Garda World Security Corporation is being acquired by a group led
by president and CEO Stephan Crétier, along with management and
funds advised by BC Partners. The transaction will be financed by a
new $1,438 million senior secured term loan, up to $779 million of
new senior unsecured notes and $1,591 million of shareholder equity
($656 million of which is rolled equity from the management team).
Garda will also establish a new five-year $335 million senior
secured revolving credit facility as a replacement to the existing
revolver.
A portion of the proceeds from the new debt will be used to repay
the existing debt of approximately $2 billion, including the two
existing term loans ($1,036 million and C$162 million outstanding),
amounts outstanding under the existing revolving facility and the
senior unsecured notes. The company has launched a change of
control tender offer (as required under the trust indenture) for
the existing senior unsecured notes due 2025 ($625 million) ahead
of launching the new financing, aiming to redeem 100% of existing
notes. The principal amount of the new senior unsecured notes will
be reduced by the principal amount of the 2025 notes that remain
outstanding.
When the financing transaction closes and all related debt
obligations are repaid, Moody's will withdraw all the previously
existing ratings of the former Garda entity, including the B3 CFR,
B3-PD PDR, B1 revolver and first lien term loans ratings and Caa2
senior unsecured notes ratings. Moody's will also withdraw the
stable ratings outlook.
"The refinancing transaction for Garda will increase leverage to
0.4x to 7x, and we expect continuing acquisitions to keep leverage
around this level. Garda's expected leverage is expected to remain
around 6.9x in the next 12 to 18 months, as the increase to debt is
offset by improvements of the pro forma EBITDA as benefits from
recent acquisitions are realized by the company", said Louis Ko, a
Moody's Vice President and Senior Analyst.
Ratings Assigned:
Issuer: Garda World Security Corporation (New)
Corporate Family Rating, Assigned B3
Probability of Default Rating, Assigned B3-PD
$1,438 million senior secured first lien term loan due 2026,
Assigned B1 (LGD3)
$335 million senior secured first lien revolving credit facility
due 2024, Assigned B1 (LGD3)
$779 million senior unsecured notes due 2027, Assigned Caa2
(LGD5)
Outlook Action:
Outlook, Assigned Stable
Ratings and Outlook to be withdrawn at close:
Issuer: Garda World Security Corporation
Corporate Family Rating, B3, to be withdrawn at close
Probability of Default Rating, B3-PD; to be withdrawn at close
$625 million senior unsecured Notes due 2025, Caa2 (LGD5);
to be withdrawn at close
$440 million ($ 174.4 million outstanding) senior unsecured
Notes due 2021, Caa2 (LGD5); to be withdrawn at close
$1,056.1 million senior secured term loan B due 2024,
B1 (LGD2); to be withdrawn at close
$232.5 million senior secured revolving credit facility
due 2022, B1 (LGD2); to be withdrawn at close
C$165 million senior secured term loan B due 2024, B1 (LGD2);
to be withdrawn at close
Stable Outlook; to be withdrawn at close
RATINGS RATIONALE
Garda's B3 CFR is constrained by: (1) its debt-financed acquisition
strategy and its expectation that leverage (adjusted Debt/EBITDA)
will be sustained around 7x through the next 12 to 18 months (pro
forma for recent acquisitions and the recapitalization
transaction); (2) limited organic growth prospects in the cash
services business and low to moderate growth in the protective
services business; and (3) some reputational risk stemming from
protective services contracts in the Middle East and Africa.
The company benefits from: (1) strong market positions in both of
its segments, which provide competitive advantages in winning
contracts; (2) stable businesses with high contract renewal rates
and recurring revenue; and (3) good customer and geographic
diversity.
The stable outlook reflects Moody's expectation that the leverage
to be sustained around 7x through the next 12 to 18 months as
Moody's believes the risk of levering up for a large acquisition in
this timeframe is low.
An upgrade to B2 would be considered if Garda maintains good
liquidity and sustains adjusted Debt/EBITDA below 6.0x (7.1x pro
forma FY2020 estimate) and EBITA/Interest above 2x (1.5x pro forma
FY2020 estimate). The rating could be downgraded to Caa1 if
liquidity worsens, possibly due to negative free cash flow
generation on a consistent basis or if adjusted Debt/EBITDA was
sustained towards 8.0x (7.1x pro forma FY2020 estimate) and
EBITA/Interest below 1x (1.5x pro forma FY2020 estimate).
Garda has good liquidity. Sources exceed C$480 million compared to
mandatory debt repayments of about $14 million for the next 4
quarters. Garda's liquidity is supported by C$30 million of cash
estimated at the time of closing of the transaction, its expected
free cash flow in excess of C$150 million for the next four
quarters, and approximately C$300 million of revolver availability.
Garda's $335 million revolver due in October 2024 is subject to a
springing covenant for net first lien leverage and Moody's expects
cushion of about 50% through the next 4 quarters. Garda has limited
ability to generate liquidity from asset sales. At the close of the
recapitalization transaction, the company will not have refinancing
risk until 2024 when the revolver facility come due.
Garda's exposure to social risks is moderate due to its operations
in the Middle East and Africa where it is performing protective
security services in elevated risk areas for high profile clients
such as western governments and embassies. As a significant portion
of the contracts are with government entities, Garda is exposed to
potential reputational risk for security incidents which could lead
to a decrease in security services contracts.
Governance considerations include the private-equity ownership and
the potential for an aggressive capital structure in comparison to
public corporations. Moody's also considered Garda's track record
of debt-financed acquisitions which could lead to elevated leverage
on a sustained basis.
The ratings on the senior secured revolver and term loan are
notched above the CFR due to having first priority access to
substantially all of the company's assets as well as loss
absorption cushion provided by the senior unsecured notes. The
rating on the senior unsecured notes is two notches below the CFR
due to its junior position in the debt capital structure and the
lack of security for the outstanding debt.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Garda World Security Corporation, headquartered in Montreal,
Quebec, is a provider of cash services in North America (including
armored cars), protective services in Canada and US (including
airport pre-board screening at 28 of Canada's airports) and
international protective services in the Middle East and Africa.
Revenue for the twelve months ended July 31, 2019 totaled C$3.3
billion and was split 31% and 69% respectively between cash
services and protective services. Once the transaction is closed
(expected in October 2019), BC Partners' funds will own 51% of the
company and management 49%.
GLOBAL ENTERPRISES: May Use Cash Collateral Through Oct. 21
-----------------------------------------------------------
Judge Christopher B. Latham of the U.S. Bankruptcy Court for the
Southern District of California permitted Global Enterprises
International, Inc. to use the cash collateral of Community Valley
Bank on an interim basis through Oct. 21.
The Debtor may use up to $6,650 per month to pay the following
property related expenses:
* Property Taxes: $3,075 per month
* Property Insurance: $400 per month
* Property Maintenance: $350 per month
* Landscaping: $150 per month
* Pest control: $125 per month
* SDG&E: $450 per month
* City of SD (Water): $1,200 per month
* Trash: $750 per month
* Other: $150 per month
In addition, Debtor will make an adequate protection payment to
Community Valley Bank the amount of $18,350 by Oct. 1, 2019.
About Global Enterprises
Global Enterprises International Inc., a company engaged in renting
and leasing real estate properties, is the fee simple owner of a
real property located at 1750 E. Palomar St., Chula Vista, Calif.
The property has a comparable sale value of $4.5 million.
Global Enterprises International sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Cal. Case No. 19-04782) on Aug.
9, 2019. The petition was signed by Kusay Yousif, CEO. At the
time of the filing, Global Enterprises International disclosed
$4,511,500 in assets and $2,745,000 in liabilities. The case has
been assigned to Judge Margaret M. Mann. Global Enterprises
International is represented by David L. Speckman, Esq., at
Speckman Law Firm.
No official committee of unsecured creditors has been appointed in
this Chapter 11 case.
GOLASINSKI HOMES: Dec. 18 Combined Hearing on Plan and Disclosures
------------------------------------------------------------------
Judge Jeffrey P. Norman of the U.S. Bankruptcy Court for the
Southern District of Texas, Houston Division, issued an order
conditionally approving the Disclosure Statement and Chapter 11
Plan filed by Golasinski Homes LLC on Sept. 30, 2019.
Dec. 4, 2019, is fixed as the last day for filing written
acceptances or rejections of the plan.
Dec. 18, 2019, at 11:00 a.m., is fixed for the final hearing on the
disclosure statement (if a written objection has been timely filed)
and for the hearing on confirmation of the plan.
Dec. 4, 2019, is fixed as the last day for filing and serving
written objections to the disclosure statement and confirmation of
the plan.
About Golasinski Homes LLC
Golasinski Homes LLC owns in fee simple three real estate
properties in Harris County, Texas, with a total current value of
$1.41 million. Golasinski Homes sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Texas Case No. 19-33035) on
June 2, 2019. At the time of the filing, the Debtor disclosed
$1,410,129 in assets and $1,004,609 in liabilities. The case has
been assigned to Judge Jeffrey P. Norman. David L. Venable, Esq.,
is the Debtor's bankruptcy attorney.
GOLDEN NUGGET: Moody's Affirms B2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service affirmed Golden Nugget, LLC's B2
Corporate Family Rating and B2-PD Probability of Default Rating.
Moody's also affirmed GN's Ba3 senior secured bank credit
facilities, the term loan is being upsized by $300 million and the
revolver is being increased by $20 million. In addition, Moody's
affirmed GN's B3 senior unsecured notes rating and Caa1 senior
subordinated note rating. The ratings outlook is stable.
Proceeds from the proposed $300 million term loan upsize will be
used to partly fund the acquisition of the restaurant concepts Del
Frisco's Double Eagle Steakhouse (Double Eagle), Del Frisco's
Grille (The Grille) and Restaurants Unlimited Inc. (RUI).
"The affirmation reflects our view that the acquisition of Double
Eagle, the Grille and RUI will complement GN's existing restaurant
portfolio and the transaction will be accretive to earnings and
modestly deleveraging with pro-forma debt to EBITDA of about 6.4
times versus actual leverage of around 6.5 times as of June 30,
2019." stated Bill Fahy, Moody's Senior Credit Officer. The
acquisitions will add about 49 restaurants to GN's existing
portfolio of 433 restaurants, five gaming facilities and a number
of hospitality and amusement properties. Overall, GN's
diversification with respect to restaurant concepts is considered
good with unique and more destination themed locations.
Affirmations:
Issuer: Golden Nugget, LLC
Probability of Default Rating, Affirmed B2-PD
Corporate Family Rating, Affirmed B2
Senior Secured Term Loan, Affirmed Ba3 (LGD2)
Senior Unsecured Regular Bond/Debenture, Affirmed B3 (LGD5)
Senior Subordinated Regular Bond/Debenture, Affirmed Caa1 (LGD6)
Issuer: Landry's, Inc.
Gtd. Senior Secured Revolving Credit Facility, Affirmed Ba3
(LGD2)
Senior Unsecured Regular Bond/Debenture, Affirmed B3 (LGD5)
Outlook Actions:
Issuer: Golden Nugget, LLC
Outlook, Remains Stable
RATINGS RATIONALE
GN benefits from its material scale, the brand value of its various
restaurant and gaming properties, good geographic diversification
and very good liquidity. GN is constrained by its high leverage, a
history of debt financed transactions, and a high level of
promotions and discounts from competitors that will continue to
pressure earnings.
The stable outlook reflects Moody's view that GN's leverage and
coverage will gradually improve from current levels with moderate
earnings growth and management's focus on debt reduction over and
above required amortization.
Factors that could result in an upgrade include a stable operating
environment in Nevada and Lake Charles, Louisiana and profitable
same store sales growth at GN's restaurants. Specifically, an
upgrade would require debt to EBITDA of around 5.0 times and EBITA
to interest of around 2.0 times on a sustained basis. A higher
rating would also require good liquidity.
Factors that could lead to a downgrade include leverage on a debt
to EBITDA basis sustained above 6.5 times or a deterioration in
liquidity for any reason.
GN owns and operates the Golden Nugget hotel, casino, and
entertainment resorts in downtown Las Vegas and Laughlin, Nevada
and the Lake Charles property in Louisiana. The company also owns
and operates mostly casual dining restaurants under the trade names
Landry's Seafood House, ChartHouse, Saltgrass Steak House,
Rainforest Café, Bubba Gump, McCormick & Schmicks, Claim Jumper,
Morton's Restaurants, Inc, and Mastro's. GNI also owns and operates
the Golden Nugget hotel, casino, and entertainment resorts in Las
Vegas and Laughlin, Nevada, Lake Charles Louisiana, Biloxi
Mississippi and Atlantic City. The company is wholly owned
indirectly by Fertitta Entertainment, Inc. which is wholly owned by
Tilman J. Fertitta.
The principal methodology used in these ratings was Restaurant
Industry published in January 2018.
GOLDEN NUGGET: S&P Affirms 'B' ICR; Outlook Stable
--------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Golden
Nugget Inc., the 'B+' issue-level rating on the first-lien
facilities, and the 'CCC+' issue-level ratings on the senior
unsecured and subordinated notes. The recovery ratings are
unchanged.
Golden Nugget plans to acquire Del Frisco's Double Eagle
Steakhouses and Grilles, to be funded with a $300 million
incremental term loan B. The company also plans to increase its
revolver by $20 million.
The affirmation of S&P's rating reflects its view that the increase
in leverage for the acquisition is temporary and Golden Nugget will
improve credit metrics through EBITDA growth. The company has a
good track record of integrating acquired operations and growing
its EBITDA base through cost reduction initiatives.
The stable outlook reflects S&P's view that Golden Nugget will
successfully integrate the acquired restaurants, leading to
moderate EBITDA expansion and leverage improving to below 6x by
fiscal 2020.
"We could lower the rating if we expect leverage to be sustained
above 7x. This could occur if competitive pressures intensify,
coupled with a potential macroeconomic slowdown leading to reduced
consumer spending and S&P Global Ratings-adjusted EBITDA margins
declining more than 300 basis points (bps). We could also see
leverage reaching this level if the company pursues a large
debt-financed dividend," S&P said.
"An upgrade would require us to believe the company has adopted a
more conservative financial policy, with leverage sustained below
5x and minimal risk of large debt-financed dividends. We could also
see leverage at this level if performance improves meaningfully
such that EBITDA margins expand roughly 300 bps more than our
forecast," the rating agency said.
GOLDEN TREE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Golden Tree, Inc. as of Oct. 4, 2019,
according to the court docket.
About Golden Tree Inc.
Golden Tree, Inc. classifies its business as single asset real
estate (as defined in 11 U.S.C. Section 101(51B)). Its principal
assets are located at 1050 Holcombe Road, Decatur, Ga.
Golden Tree sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Case No. 19-62090) on Aug. 4, 2019. The
Debtor previously sought bankruptcy protection (Bankr. N.D. Ga.
Case No. 18-62776) on Aug. 2, 2018.
At the time of the filing, the Debtor disclosed assets of between
$1 million and $10 million and liabilities of the same range.
The case has been assigned to Judge Sage M. Sigler. The Debtor is
represented by The Law Office of Kennon Peebles, Jr.
HAGUE TEXTILE: Seeks Authority to Use Cash Collateral
-----------------------------------------------------
Hague Textiles, Inc., asks the U.S. Bankruptcy Court for the
District of Massachusetts to authorize the use of cash collateral,
including the use of its on-going receivables, in order to allow
continued business operations while it prepares for its
reorganization.
The budget filed in Court provides for $7,218.48 in total expenses
for the week from Oct. 7 to Oct. 14, 2019, a copy of which is
available for free at:
http://bankrupt.com/misc/Hague_Textiles_3(1)_Cash_Budget.pdf
As adequate protection, the Debtor proposes to:
(a) make regular monthly adequate protection payments to
Commercial Business Funding and Provident for $1,241, (based on a
20-year amortization of the principal amount owed, at an interest
rate of 7%); and
(b) grant each of the Secured Creditors continuing replacement
liens and security interests in the Debtor's postpetition
receivables, to the extent of their existing liens.
The application of the adequate protection payments to principal or
interest will be reserved until further Court order. The secured
creditors are (i) Forward Financing LLC, (ii) Commercial Business
Funding; (iii) Provident Commercial Finance, LLC; (iv) Kabbage,
Inc.; and (v) BizFiand Green Capital Funding, LLC.
About Hague Textiles
Hague Textiles, Inc.,is a small, family-owned manufacturer,
focusing on leather and leather goods such as belts, bags, and
carrying case. The company sells products to retail and wholesale
customers, and is developing a business with corporate gifts. It
sought Chapter 11 protection (Bankr. D. Mass. Case No. 19-13323) on
Sept. 30, 2019. MADOFF & KHOURY LLP is the Debtor's counsel.
HARLEM CROSSINGS: Case Summary & 14 Unsecured Creditors
-------------------------------------------------------
Debtor: Harlem Crossings, LLC
19800 S. Harlem Ave.
Frankfort, IL 60423
Business Description: Harlem Crossings LLC holds an equitable
interest in Harlem Crossings Shopping Center
located in Frankfort, Illinois. Based upon
an appraisal conducted in March 2018, the
real estate is valued at $5,650,000 "as-is",
$7,200,000 "completed", and $8,100,000
"stabilized".
Chapter 11 Petition Date: October 6, 2019
Court: United States Bankruptcy Court
Northern District of Illinois (Eastern Division)
Case No.: 19-28399
Judge: Hon. Jacqueline P. Cox
Debtor's Counsel: Roy J. Dent, Esq.
DENT LAW OFFICE, LTD.
PO Box 1633
Effingham, IL 62401-8633
Tel: (217) 330-5500
Tel: (217) 342-1212
Fax: (217) 342-1214
E-mail: roy.jackson.dent@gmail.com
notices@dentlawoffices.com
Total Assets: $5,726,361
Total Liabilities: $5,003,095
The petition was signed by Frank V. Klauck, manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at:
http://bankrupt.com/misc/ilnb19-28399.pdf
HESS MIDSTREAM: Fitch Assigns BB+ LT IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings assigned a first-time Long-Term Issuer Default Rating
of 'BB+' to Hess Midstream Operations LP. Its senior secured rating
is one notch up from the IDR to 'BBB-'/'RR1' and its senior
unsecured rating is 'BB+'/'RR4.' The Rating Outlook is Stable.
KEY RATING DRIVERS
HESINF Being Acquired by HESM: Hess Midstream Partners LP (HESM)
has announced that it has agreed to acquire Hess Infrastructure
Partners LP. In addition, HESM will change its name to Hess
Midstream Operations LP, and be consolidated under a newly formed
Up-C entity, Hess Midstream LP (ticker: HESM). The Up-C allows the
partnership to be owned by a holding company, which is taxed as a
corporation. When the transaction closes, the existing secured
revolver and term loan debt at HESINF will be repaid. The company
intends to launch an offer for HESINF's $800 million unsecured
notes to be exchanged for new HESM OpCo notes. The company will
also establish a $1 billion secured term revolver and $400 million
secured term loan.
HES Bakken Operations Solid: Contractually, HES's (BBB-/Stable)
subsidiaries are the only recipients of all of HESM OpCo's
services. HES guarantees the obligations of these subsidiaries. The
HES-HESM OpCo contracts have fee mechanisms by which HES protects
HESM OpCo from volume downsides and other risks. One type of
protection, minimum volume commitments (MVCs), have, from time to
time, been triggered for some of HESM OpCo services. Fitch views
HES as a strong performer with a consistent track record of strong
reserve growth at economical costs. Within the Bakken formation
region, which HES states gets its first call on capital among
operated properties, the company continues to make progress moving
down the cost curve. Since 2017, HES's quarterly Bakken barrel of
oil equivalent production trend has been consistently upward. In
July 2018, HES added a fifth Bakken drilling rig, and in September
2018 the company added a sixth one. Six rigs continue to run in
2019. Hess projects that production in the Bakken should increase
at a compound annual growth rate of approximately 20% between 2018
and 2021.
HESM OpCo is in a joint venture for the Little Missouri 4 natural
gas processing plant, which went into service in the middle of
2019. HESM OpCo expects to reach its share of full capacity of 100
mmcf/d by year-end 2019 (total capacity is 200 mmcf/d and 50% is
HESM OpCo's). The growth represented by the Little Missouri 4 plant
is backstopped by expected Bakken growth, which is contractually
provided for under the foundational HES/HESM OpCo contracts.
Expanding Capacity: HESM OpCo is increasing its natural gas
processing capacity from its current position of 350 mmcf/d to 500
mmcf/d by the middle of 2021. Capacity recently increased to 350
mmcf/d when Little Missouri 4 came into service. The company will
expand the Tioga gas plant by 150 mmcf/d to 400 mmcf/d by the
middle of 2021.
Contracts Provide Two-Fold Revenue Protection: HESM OpCo is a 100%
fee-based business. Its fixed-fees are subject to annual
recalculation based HESM OpCo maintaining its targeted return on
capital through the end of 2023 and longer for the terminal and
export agreement as well as the water agreement. The calculation
also incorporates the production profile of HES. At the end of
2018, the tariff was updated for 2019 and it incorporated factors
from 2018 (such as the actual and forecast capex, operating
expenses, and the actual and forecast volumes). In addition to this
re-calculation structure, the suite of contracts provides that
near-term total revenues may be bolstered by minimum volume
commitments (MVCs).
In the 2018 10-K of HESM, it was disclosed that in 2018, minimum
volume shortfall fee payments were $47.5 million (versus of $61.6
million in 2017). The setting of MVCs is also an annual exercise.
MVCs are established each year for the current year and the two
thereafter. MVCs, once set, cannot be re-set lower. HES, as HESM
OpCo's counterparty, will bear high effective unit-costs in a
downside volume scenario, by operation of the two revenue
protection mechanisms.
DERIVATION SUMMARY
Size is an important differentiating factor for Fitch when rating
gathering and processing companies. Smaller gathering and
processing companies generally do not have a diverse portfolio of
assets from which a choice asset can be sold during challenging
times in their production regions and can restrict the rating. On a
pro forma basis, HESM OpCo generated approximately $500 million of
adjusted EBITDA in 2018. Higher rated EQT Midstream Partners, LP
(EQM; BBB-) generated nearly $1 billion of adjusted EBITDA during
the same year.
The basin served is also a factor in setting the rating for a
gathering and processing company. HES (BBB-/Stable) provides strong
revenue assurance terms in its subsidiaries' contracts with HESM
OpCo. HES is a global upstream producer and a key region for the
company is the Bakken. HES's production in the Bakken has proven to
be solid and HES is very optimistic about growth in the next few
years. Fitch recognizes that production in the Bakken can be
volatile and did fall for the industry from early 2015 until the
middle of 2017. For HESM OpCo's higher rated peer, EQM, its basin,
the Marcellus basin, showed strong growth throughout a period of
low natural gas prices that began in 2012.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Gas processing capacity reaches 500 mmcf/d by mid-2021;
-- Net production volumes in the Bakken from HES have a CAGR of
about 20% between 2018 and 2021;
-- Capex in the 2019-2020 period is generally for gas processing
expansion, additional well-connects and related assets for
gathering.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Positive rating action for HES;
- A significant acquisition that diversifies the company's
business risk, provided that leverage (defined as total debt to
adjusted EBITDA) stays below 4.5x (although this may vary point
depending on the risk profile of the acquisition).
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Negative rating action for HES;
- Adverse changes in certain terms in the array of contracts with
Hess Corporation;
- Leverage (defined as total debt to adjusted EBITDA) rising
above 4.0x on a sustained basis in the context of HESM OpCo
maintaining its current size.
LIQUIDITY
Adequate Liquidity: Once the transaction closes, HESM OpCo expects
to have a five-year $1.0 billion senior secured revolver in place.
FULL LIST OF RATING ACTIONS
Fitch has assigned the following first-time ratings:
Hess Midstream Operations LP
-- Long-Term IDR 'BB+';
-- Senior secured rating 'BBB-'/'RR1';
-- Senior unsecured rating 'BB+'/'RR4'.
The Rating Outlook is Stable.
HESS MIDSTREAM: Moody's Assigns Ba2 CFR, Outlook Positive
---------------------------------------------------------
Moody's Investors Service assigned a Ba2 Corporate Family Rating to
Hess Midstream Operations LP, a Ba2-PD Probability of Default
Rating, and Baa3 ratings to its new secured revolving credit
facility and proposed $400 million Term Loan A. Moody's also
assigned Ba3 ratings to HESM Opco's 5.625% unsecured notes into
which the existing Hess Infrastructure Partners LP (Ba2 stable)
unsecured notes will be exchanged, and to HESM Opco's proposed $500
million new unsecured notes issue. The outlook is positive. The
secured facilities will be secured by HESM Opco's 100% owned assets
and equity in its subsidiaries while the unsecured notes will be
the beneficiary of upstream guarantees from wholly-owned domestic
subsidiaries. Upon the closing of the transaction, expected by
year-end, Moody's will withdraw all ratings currently assigned to
HIP.
HESM Opco will be established through the acquisition of HIP by
Hess Midstream Partners LP, in which 100% of the midstream assets
currently shared between HIP (80%) and Hess Midstream Partners LP
(20%) will be consolidated. HESM Opco will be consolidated under a
newly formed "up-C" structure, Hess Midstream LP, whose
non-economic general partner and 94% economic interest will be
jointly owned by Hess Corporation (HES, Ba1 stable) and Global
Infrastructure Partners. HESM Opco will be HESM's wholly-owned
operating subsidiary, holding all the entity's operating assets and
debt. HES and GIP currently share 100% joint ownership in HIP. The
remaining 6% shareholding in HESM will be owned by the public.
Proceeds of the proposed Term Loan and notes offering will be used
to finance a cash distribution to HES and GIP of about $550
million, and to refinance outstandings under HIP's revolving credit
facility and term loan, supplementing $4.5 billion of equity issued
to the sponsors, ascribing a total value to the transaction of
about $6.2 billion
"HESM Opco's Ba2 CFR reflects the strong contractual relationship
it has with HES and the integrated midstream services it owns and
operates in support of HES's production in the Bakken Shale, a
contract structure across HESM Opco's asset base that minimizes
commodity price and volume risk, modest debt leverage and the
structural rationalization this transaction achieves," commented
Andrew Brooks, Moody's Vice President. "The transaction removes the
asset drop-down risk previously associated with the HIP structure
and consolidates the midstream assets into a single operating
entity of considerably larger scale, which outweighs the initial
modestly leveraging effect of the transaction."
Assignments:
Issuer: Hess Midstream Operations LP
Probability of Default Rating, Assigned Ba2-PD
Corporate Family Rating, Assigned Ba2
Senior Secured Term Loan, Assigned Baa3 (LGD2)
Senior Secured Revolving Credit Facility, Assigned Baa3 (LGD2)
Senior Unsecured Notes, Assigned Ba3 (LGD5)
Speculative Grade Liquidity Rating, Assigned SGL-2
Outlook Actions:
Issuer: Hess Midstream Operations LP
Outlook, Assigned Positive
RATINGS RATIONALE
HESM Opco's asset base is comprised of natural gas gathering,
processing and fractionation capacity; crude oil gathering,
terminaling and export assets; and a growing water services
business which on an integrated basis supports HES's large scale
crude oil production in the core of the Bakken Shale. HES,
currently operating a six-rig drilling program, is the largest
operator in the Bakken with second quarter production averaging
140,000 barrels of oil equivalent (Boe) per day, slightly over 50%
of HES's total production. Hess has guided its Bakken production to
200,000 Boe per day by 2021, providing visibility into significant
organic growth for HESM Opco. The midstream asset base under
contract to HES is a critical element of processing and moving
HES's production downstream of the wellhead. HESM Opco's roughly
$550-$575 million of estimated pro forma 2019 EBITDA is generated
about 45% from oil and natural gas gathering, around 40% from
processing and storage, around 12% from logistics (terminals and
rail) with the remainder attributable to the company's recent
entrance into water handling.
HES's Bakken originated crude and natural gas volumes approximate
85% and 70% of total HESM Opco's total throughput, respectively;
third-party volumes are also originated through Hess, essentially
making it HESM Opco's sole contract counter-party. Midstream
services are fully contracted and 100% fee-based, structured to
minimize commodity price and volume risk. Contracts are structured
under a cost of service construct designed to deliver a fixed rate
of return to HESM Opco, and are re-set annually to maintain that
targeted rate of return. Contract structure further provides for
minimum volume commitments (MVCs), which are set on a rolling
three-year basis. Ten-year term contracts were initiated in January
2014, under which HESM Opco has unilateral rights to a 10-year
contract renewal in 2024. The combination of fixed fee contracts
underpinned with MVCs generates a highly stable and predictable
EBITDA stream. EBITDA growth is projected at about 25% per annum
through 2021, which should generate positive free cash flow and
keep debt leverage below the company's 3.0x targeted level.
Distribution coverage of 1.2x is expected to be maintained based on
a projected 15% annual growth rate of distributable cash per unit.
Moody's regards HESM Opco as having good liquidity. Pro forma for
the proposed notes and Term Loan A offering, debt proceeds will be
used to repay outstandings under HIP's current $600 million secured
revolving credit facility ($160 million outstanding at June 30) and
an existing $200 million Term Loan. HIP's existing $800 million
5.625% senior unsecured notes will be exchanged into new HESM Opco
notes. HESM Opco will also enter into a new $1.0 billion secured
revolver having a 2024 maturity, under which $60 million is
anticipated to be drawn at closing.
The proposed $500 million senior unsecured notes and $800 million
exchanged notes are rated Ba3, one-notch below the Ba2 CFR in
consideration of the priority claim that the new $1.0 billion
secured revolving credit and proposed $400 million Term Loan A have
relative to the company's assets. The revolver and proposed Term
Loan A are pari passu with respect to one another and are both
rated Baa3, or two-notches above the CFR because of their priority
position in the capital staructure.
The outlook is positive reflecting HESM's expected growth
trajectory and low leverage, underpinned by the contractual source
of cash flow and contract structure which largely insulates HESM
Opco from commodity price and volume risk. HESM Opco could be
upgraded to Ba1 should its EBITDA exceed $750 million with leverage
remaining below 3x, and presuming contract structure continues to
insulate EBITDA from commodity price and volume risk. HESM Opco
could be downgraded should leverage exceed 4x, or should contract
structure erode resulting in increased leverage. Were HES to be
downgraded below Ba2, HESM Opco would be similarly downgraded given
its customer concentration with HES.
The principal methodology used in these ratings was Midstream
Energy published in December 2018.
HESS MIDSTREAM: S&P Assigns BB+ ICR on Simplification Transaction
-----------------------------------------------------------------
S&P Global Ratings assigned 'BB+' issuer credit and issue-level
ratings to midstream energy master limited partnership Hess
Midstream Partners L.P. (HESM) and its senior unsecured debt, and
'BBB-' issue-level rating to the company's senior secured debt.
At the same time, S&P affirmed the 'BB+' issuer credit and
issue-level ratings on Hess Infrastructure Partners L.P. (Hess
Infrastructure) and its senior unsecured debt, and the 'BBB-'
issue-level rating on the company's senior secured debt.
The rating actions follow HESM's announcement on Oct. 4 that it
will simplify its structure and acquire all of Hess Corp.'s (Hess')
and Global Infrastructure Partners' (GIP's) ownership interests in
Hess Infrastructure.
The simplification transaction is accretive to HESM's existing
unitholders and leverage is expected to remain in the 2.5x-3x
range. The elimination of the incentive distribution rights (IDRs)
payments to the sponsors will improve the partnership's cost of
capital, which is offset by the approximate $550 million cash
consideration to its sponsors. HESM will simplify its structure and
acquire all of Hess' and GIP's ownership interest in Hess
Infrastructure. Pro forma for the transaction, the partnership will
have a 100% ownership interest in the oil and gas midstream assets
and water services business. The transaction will improve HESM's
cost of capital and eliminate its IDR payments to the sponsors.
HESM will repay and retire amounts outstanding on Hess
Infrastructure's credit facilities and assume approximately $800
million of its outstanding notes in a par-for-par exchange.
The stable outlook reflects the stable outlook on joint venture
(JV) sponsor, Hess. S&P expects Hess to maintain funds from
operations (FFO) to debt of about 30% and debt to EBITDA below 3x
over the next two years. On a stand-alone basis, S&P expects the
partnership's adjusted leverage to remain below 3x as a result of
the above-average contract profile.
"A negative rating action on Hess would not automatically lead to a
negative rating action on the partnership unless we believed the
partnerships SACP was no better than 'bb'. We could lower the
partnerships SACP if adjusted debt to EBITDA was sustained above
4.0x," S&P said.
The most likely driver for higher ratings would be a positive
rating action on Hess. This could occur if Hess maintained FFO to
debt of 45% and spending decreased to within internally generated
cash flows," S&P said. Though unlikely in the near term, higher
ratings could occur if the partnership significantly improved its
scale and diversity while maintaining adjusted leverage below 4x,
resulting in an improvement in the partnership's SACP, according to
the rating agency.
HOSPITAL ACQUISITION: Exclusivity Period Extended Until Dec. 2
--------------------------------------------------------------
Judge Brendan Shannon of the U.S. Bankruptcy Court for the District
of Delaware extended the period during which only Hospital
Acquisition LLC can file a Chapter 11 plan to Dec. 2.
The company can solicit acceptances for the plan until Jan. 30,
2020.
About Hospital Acquisition
Headquartered in Plano, Texas, and founded in 1992, Hospital
Acquisition LLC and its subsidiaries are operators of long-term
acute care hospitals. Through their operating subsidiaries, the
Debtors provide a full range of clinical services to patients with
serious and complicated illnesses or injuries requiring extended
hospitalization. They operate a 49-bed behavioral health hospital
in Pittsburgh, Pennsylvania as well as three out-patient wound care
centers located within its Plano, Texas, Fort Worth, Texas and
Dallas Texas hospitals. As of the petition dte, the Debtors
operate 17 facilities in nine states.
Hospital Acquisition LLC and its subsidiaries, including LifeCare
Holdings, LLC, sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 19-10998) on May 6, 2019.
Hospital Acquisition estimated assets of $100 million to $500
million and liabilities of $100 million to $500 million.
The Debtors tapped Akin Gump Strauss Hauer & Feld LLP and Young
Conaway Stargatt & Taylor, LLP as counsel; Houlihan Lokey, Inc. as
financial advisor; BRG Capital Advisors LLC as investment banker;
Prime Clerk LLC as claims and noticing agent; and Crowe LLP as its
audit and tax advisor.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on May 17, 2019. Greenberg Traurig, LLP is the
committee's legal counsel.
Jerry Seelig of Seelig + Cussigh HCO LLC was appointed as the
patient care ombudsman in the Debtors' cases. Perkins Coie LLP and
Morris James LLP represent the PCO as legal counsel.
INSPIRON INC: Seeks OK on Premium Finance Agreement with AFCO
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approves the premium finance agreement entered into between
Inspiron, Inc., and AFCO Acceptance Corporation. The Agreement
provides for the financing of the insurance premiums to be paid for
the Debtor's insurance policies.
Pursuant to the Stipulation, the Court rules that:
(a) AFCO is granted a first and only priority security interest
in: (i) any and all unearned premiums and dividends which may
become payable under the financed insurance policies for whatever
reason and loss payments which reduce the unearned premiums,
subject to any mortgagee or loss payee interests;
(b) the Debtor is authorized to pay AFCO all sums due pursuant
to the Agreement;
(c) if the Debtor defaults upon any of the terms of the
Agreement, AFCO may cancel all insurance policies listed on the
Agreement or any amendment thereto, and receive and apply all
unearned insurance premiums to the Debtor’s account, without the
necessity of further application to the Bankruptcy Court.
If, after said application of unearned premiums, any sums advanced
postpetition still remain due to AFCO pursuant to the Agreement,
the deficiency will be deemed an administrative expense of the
estate.
About Inspiron Inc.
Headquartered in New York, Inspiron, Inc. --
https://www.inspironconstruction.com/ -- is a privately held
company specializing in general contracting and construction
management. The Company also offers a wide array of advisory
services including evaluating various project options and providing
cost analyses during the pre-construction phase.
Inspiron, Inc. filed a voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 19-23534) on
Aug. 26, 2019. In the petition signed by Alen Gershkovich,
president, the Debtor was estimated to have $1 million to $10
million in assets and $500,000 to $1 million in liabilities. The
case is assigned to Judge Robert D. Drain. Dawn Kirby, Esq., at
Kirby Aisner & Curley, LLP, is the Debtor's counsel.
INTERIDE TRANSPORT: Seeks Authority to Use $1.5M Cash Collateral
----------------------------------------------------------------
Interide Transport, LC, asks the U.S. Bankruptcy Court for the
Middle District of Florida to authorize use of approximately $1.5
million of cash collateral to continue to operate its business for
a period of four weeks.
The budget filed in Court provides for $459,605 in total expenses
for the week from Oct. 4 to Oct. 11, 2019, $124,291 of which is for
payroll and related taxes, and $133,666 for fuel. A copy of the
budget is available for free at
http://bankrupt.com/misc/Interide_Transport_7_Cash_MO.pdf
As adequate protection, the Debtor proposes to grant Santander
Bank, N.A., replacement liens to the extent of any diminution in
value, with such liens to have the same validity, extent, and
priority as their respective prepetition liens.
About Interide Transport
Interide Transport, LC, is a Utah corporation and subsidiary of
co-debtor KJM Capital Transportation Fund, LLC. Interide Transport
owns and operates a refrigerated trucking fleet focused largely on
hauling food products primarily between the Mountain States and the
Midwest. It also operates a container fleet that hauls
refrigerated ocean containers from Kansas and Nebraska to ports in
northern California.
Interide Transport sought Chapter 11 protection (Bankr. M.D. Fla.
Case No. 19-06306) on Sept. 27, 2019, in Orlando, Florida. Shuker
& Dorris P.A. represents the Debtor.
Interide and six related debtors are seeking joint administration
under lead case KJM Capital Transporation Fund, LLC (In re M.D.
Fla. Case NO. 19-06302).
JEROME GOLDEN: U.S. Trustee Directed to Appoint Ombudsman
---------------------------------------------------------
If a debtor is a health care business directs the Court to order,
"sua ponte" not later than 30 days after the commencement of the
case, the appointment of an ombudsman to monitor the quality of
patient care and to represent the interests of the patients of the
health case business.
Bankruptcy Rule 2007.2 provides that "the court shall order the
appointment of a patient care ombudsman under Chapter 11, unless
the court, on motion of the United States trustee or a party in
interest filed no later than 21 days after the commencement of the
case or within another time fixed by the court, finds that the
appointment of a patient care ombudsman is not necessary under the
specific circumstances of the case for the protection of patients."
Accordingly, the Court ordered that the U.S. Trustee shall appoint
a patient care ombudsman or file a motion with this Court to show
that such appointment is not necessary for the protection of
patients under the specific circumstances of Jerome Golden Center
for Behavioral Health, Inc.'s Chapter 11 case.
Based in West Palm Beach, Florida, Jerome Golden Center for
Behavioral Health, Inc. -- http://goldenctr.org/-- which offers
psychiatric, behavioral healthcare, adult and child treatment,
recovery, and substance abuse services, filed a Chapter 11 petition
(Bankr. S.D. Fla. Case No. 19-22704) on September 24, 2019. The
case is assigned to Hon. Mindy A. Mora.
The Debtor's Counsel is Philip B. Harris, Esq., in Royal Palm
Beach, Florida.
At the time of filing, the Debtor had estimated assets of $10
million to $50 million and estimated liabilities of $1 million to
$10 million.
JLK INDUSTRIES: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of JLK Industires Inc. as of Oct. 3, 2019,
according to a court docket.
About JLK Industries
JLK Industries, Inc., which conducts business under the name
Everett Auto Clinic, owns and operates an automotive repair and
maintenance shop in Everett, Wash.
JLK Industries sought Chapter 11 protection (Bankr. W.D. Wash. Case
No. 19-13286) on Sept. 4, 2019, in Seattle, Washington. In the
petition was signed by Jeffrey Stokes, owner and operator, the
Debtor was listed to have total assets at $420,450 and total
liabilities at $1,692,555 as of the bankruptcy filing. Judge
Timothy W. Dore administers the Debtor's case. Larry B Feinstein,
PS, is the Debtor's counsel.
JPM REALTY: Seeks More Time to File Bankruptcy Plan
---------------------------------------------------
JPM Realty, Inc. asked the U.S. Bankruptcy Court for the Middle
District of Pennsylvania to extend the exclusivity period for
filing a Chapter 11 plan by 60 days and for soliciting acceptances
for the plan by 90 days.
The company's latest plan required a re-zoning to allow commercial
leasing to additional tenants as well as to allow construction and
leasing of self-storage units directly to consumers.
JPM encountered difficulties with the Luzerne County Office of
Planning and Zoning, which operates through its agent Jim Weber.
More specifically, the company was advised that although a
re-zoning was technically possible, the application would be
rejected without hearing or comment.
The company anticipates that it would then have to appeal the
rejection directly to the Luzerne County Zoning Hearing Board,
where it would encounter stiff resistance and that although
technically the uses were allowable, the appeal would most likely
fail unless the company could show extreme hardship as well as
substantial and material benefit to the community. The company was
further advised that a re-zoning to allow for the erections of
duplex units would pass easily.
JPM said it needs additional time to deal with any objections to
plan, attend a hearing on approval of the disclosure statement,
solicit acceptances for the plan, and attend the confirmation
hearing.
About JPM Realty Inc.
JPM Realty, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Pa. Case No. 18-04511) on Oct. 24,
2018. At the time of the filing, the Debtor estimated assets of
less than $500,000 and liabilities of less than $500,000. Judge
Robert N. Opel II presides over the case. The Debtor tapped C.
Stephen Gurdin Jr., Esq., as its legal counsel.
JUST FOR YOU: Disclosure Statement Hearing Continued to Oct. 23
---------------------------------------------------------------
Judge Clifton R. Jessup Jr. of the U.S. Bankruptcy Court for the
Northern District of Alabama, Northern Division, convened a hearing
on Sept. 30, 2019, on the disclosure statement of Just for You
Coach, Inc. dated August 16, 2019.
Appearing at the hearing were Stuart Maples, Esq., counsel for the
Debtor; Cynthia Slate-Cook, Esq., counsel for Bank Independent; and
Richard Blythe, Esq., counsel for the Bankruptcy Administrator.
Judge Jessup ordered as follows:
* The Debtor must file Amended Disclosure Statements on or
before October 4, 2019, by 5:00 p.m., to address the issues raised
during the hearing.
* The Debtor must separately submit a blacklined copy of the
Amended Disclosure Statement reflecting the changes made to
Chambers, counsel for Bank Independent, and to counsel for the
Bankruptcy Administrator on or before October 4, 2019, by 5:00
p.m.
* The hearing to consider approval of the Amended Disclosure
Statements is continued to Octo. 23, 2019, at 11:30 a.m.
About Just For You Coach
Just For You Coach, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ala. Case No. 19-81116) on April 11,
2019. At the time of the filing, the Debtor estimated assets of
less than $500,000 and liabilities of less than $1 million. The
case is assigned to Judge Clifton R. Jessup Jr. Maples Law Firm,
PC, is the Debtor's counsel.
KABAM ASSOCIATES: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The Office of the U.S. Trustee on Oct. 3, 2019, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of KABAM Associates, LLC.
About KABAM Associates
KABAM Associates, LLC, a privately held company in Houston, Texas,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Texas Case No. 19-34407) on Aug. 6, 2019. At the time of the
filing, the Debtor was estimated to have assets of between $10
million and $50 million and liabilities of between $1 million and
$10 million. The case is assigned to Judge David R. Jones. Baker
& Associates LLP is the Debtor's counsel.
KAUMANA DRIVE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Kaumana Drive Partners, LLC
d/b/a Legacy Hilo Rehabilitation and Nursing Center
f/d/b/a Kaumana Drive Partners I
f/d/ba Regency Hilo Rehabilitation and Nursing Center
563 Kaumana Drive
Hilo, HI 96720
Business Description: Kaumana Drive Partners, LLC owns and
operates a skilled nuursing care facility in
Hilo, Hawaii.
Chapter 11 Petition Date: October 6, 2019
Court: United States Bankruptcy Court
District of Hawaii (Honolulu)
Case No.: 19-01266
Judge: Hon. Robert J. Faris
Debtor's Counsel: Chuck C. Choi, Esq.
CHOI & ITO
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Tel: 808.533.1877
Fax: 808.566.6900
E-mail: cchoi@hibklaw.com
- and -
Allison A. Ito, Esq.
CHOI & ITO
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Tel: 808 533-1877
Fax: 808 566-6900
E-mail: aito@hibklaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Benjamin Meeker, president.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/hib19-01266.pdf
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. State of Hawaii Department of General Excise $1,618,015
Taxation Taxes
Attn: Bankruptcy Unit
P.O. Box 259
Honolulu, HI 96813
2. Dentons US LLP Legal Services $529,740
1001 Bishop Street, Suite 1800
Honolulu, HI 96813
Paul Alston, Esq.
Email: paul.alston@dentons.com
3. Brighton Rehabilitation Goods or Services $473,255
206 North 2100, West Rendered
Salt Lake Cty, UT 84116
4. Victus Management Management $298,110
2131 Palomar Services
Airport Road, Suite 218
Carlsbad, CA 92011
5. DHHS/Ctr for Medicare and Civil Money $177,440
Medicaid Svcs Western Div of Penalties
Survey
90 7th Street, Suite 5-300 (5W)
San Francisco, CA 94103-6707
6. Ashford & Wriston, LLP Legal Services $157,974
999 Bishop Street, Suite 1400
Honolulu, HI 96813
Kevin W. Herring, Esq.
Email: kherring@awlaw.com
7. AMN Healthcare Allied, Inc. Goods or Services $122,327
P.O. Box 281939 Rendered
Atlanta, GA 30384-1939
8. Carl Osaki, Esq. Legal Services $102,414
225 Queen Street #17H
Honolulu, HI 96813
Carl Osaki, Esq.
Email: carl@chosaki.com
9. BKD, LLP Goods or Services $83,310
P.O. Box 1190 Rendered
Springfield, MO
65801-1190
10. HMAA Goods or Services $31,266
C/O PSH Ins., 737 Rendered
Bishop St 12th Fl.
Honolulu, HI 96813
11. Kobayashi, Sugita & Legal Services $29,548
Goda, LLP
999 Bishop Street #2600
Honolulu, HI
96813-4430
Craig K.Shikuma, Esq.
Email: cshikuma@ksglaw.com
12. Healthcare Long-Term Care $23,989
Association of Hawaii Sustainability
707 Richards Street, PH2 Program
Honolulu, HI 96813
13. LitEcon LLP Goods or Services $19,305
10 W Broadway #203 Rendered
Long Beach, CA 90802
14. Hawaii Electric Light Services $19,167
Company Rendered
P.O. Box 909
Honolulu, HI 96808
15. Direct Supply Inc. Goods or Services $17,083
P.O. Box 88201 Rendered
Milwaukee, WI 53288
Email: vsukhanov@directs.com
16. Hawaii Employers' Insurance $14,344
Mutual Insurance Co. Premiums/
PO Box 29050 Promissory Note
Honolulu, HI
96820-1450
17. SYSCO Hawaii Goods or Services $10,642
P.O. Box 855 Rendered
Honolulu, HI 96808
Email: elizabeth.miller@sysco.com
18. Medline Industries, Inc. Goods or Services $8,857
P.O. Box 121080, Rendered
Dept 1080
Dallas, TX 75312
19. Premium Incorporated Goods or Services $8,580
2644 Waiwai Loop Rendered
Honolulu, HI 96819
20. MTX of Southwest Goods or Services $7,233
Florida, Inc. Rendered
P.O. Box 48426, Suite 227
Tampa, FL 33647
LATEX FOAM: Cash Collateral Use Continued Through Oct. 26
---------------------------------------------------------
Judge Julie A. Manning of the U.S. Bankruptcy Court for the
District of Connecticut has entered a third interim order
authorizing Latex Foam International, LLC, and its
debtor-affiliates to use cash collateral, which cash collateral may
be subject to the liens of Entrepreneur Growth Capital, LLC
("EGC").
A further hearing to consider the Debtors' further use of cash
collateral will be held on Oct. 22, 2019 at 2:00 p.m. Objections
are due on or before Oct. 18.
The Debtors may use any cash collateral in accordance with the
budget with a variance of 10% permitted from the Petition Date
through Oct. 26, 2019.
EGC has asserted a first priority secured claim against all of the
Debtors' assets, including the Debtors' cash and accounts
receivable, as evidenced by a prior Order of the Court entered in
Case No. 14-50845 and appropriate Loan Documents.
Fifth Third Bank also asserts a first priority security interest in
an account held by Latex Foam International ending #5808 -- the
Pledge Account. The balance of which account gas been $49,900
since the Petition Date.
In exchange for the interim use of cash collateral by the Debtors,
and as adequate protection for EGC's interests therein, EGC is
granted replacement and/or substitute liens (subject only to the
carve-out) in all post-petition assets of the Debtors and proceeds
thereof, excluding any bankruptcy avoidance causes of action. Such
replacement liens will have the same validity, extent and priority
that EGC possessed as to said liens on the Petition Date. However,
such replacement liens will only be for the amount of any
diminution of value in EGC's cash collateral.
On or before October 1 and November 1, the Debtors will make a
payment to EGC in the amount of $112,500, representing principal
and contract interest payable under the Loan Documents.
The Debtors will continue to hold those $30,000 in funds deposited
into a segregated debtor-in-possession account, as property of the
Debtors held for the benefit of allowed fees and expenses of the
duly retained professionals of the Official Committee of Unsecured
Creditors, pending entry of an order allowing such fees and
expenses, which sum, whether paid or accrued, will not be subject
to the security interests and liens, including replacement liens,
of EGC. The Debtors will also provide EGC, the U.S. Trustee, and
the attorneys for the Creditors' Committee, with weekly reports
comparing the Debtors' actual disbursements to those in the
Budget.
About Latex Foam International
Latex Foam International, LLC, which conducts business under the
name Talalay Global, provides textile furnishing products. It
offers house furnishings such as blankets, bedspreads, sheets,
table clothes, towels, and shower curtains.
Latex Foam International and four affiliates filed voluntary
petitions seeking relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Conn. Lead Case No. 19-51064) on Aug. 8, 2019. The
petitions were signed by Marc Navarre, chief executive officer. At
the time of the filing, the Debtors were estimated to have assets
between $10 million and $50 million and liabilities of the same
range. Judge Julie A. Manning oversees the case. James Berman,
Esq., at Zeisler & Zeisler, P.C., is the Debtors' counsel.
LNB-002-2013: Asks Court to Extend Exclusivity Period to Jan. 27
----------------------------------------------------------------
LNB-002-2013, LLC asked the U.S. Bankruptcy Court for the Southern
District of Florida to extend the exclusivity period for filing a
Chapter 11 plan to Jan. 27, 2020, and for soliciting acceptances
for the plan to March 27, 2020.
The exclusivity period refers to the 120-day period in which only
the company can file a plan after a bankruptcy petition.
About LNB-002-2013 LLC
LNB-002-2013, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-20502) on Aug. 28,
2018. In the petition signed by Laurent Benzaquen, manager LNB
Capital LLC, the Debtor estimated assets of less than $50,000 and
liabilities of less than $500,000. The Debtor tapped Joel M. Aresty
P.A. as its legal counsel. No official committee of unsecured
creditors has been appointed in the case.
MAGNUM CONSTRUCTION: Plan Solicitation Period Moved to Dec. 1
-------------------------------------------------------------
Judge A. Jay Cristol of the U.S. Bankruptcy Court for the Southern
District of Florida extended the exclusive period during which only
Magnum Construction Management, LLC can solicit acceptances for its
Chapter 11 plan to Dec. 1.
About Magnum Construction Management
Magnum Construction Management, LLC -- https://www.mcm-us.com/ --
formerly known as Munilla Construction Management, LLC, is a
construction company specializing in heavy civil construction in
the areas of transportation, airport infrastructure, roads,
bridges, government buildings and schools. It is headquartered in
South Miami, Florida, but also has offices in (i) Broward County,
Florida, and (ii) Irving, Texas. As of the Petition Date, MCM
employs a total of 292 people.
Magnum Construction Management filed a voluntary petition under
Chapter 11 of the U.S. Bankruptcy Code (Bankr S.D. Fla. Case No.
19-12821) on March 1, 2019. In the petition signed by CFO Gilberto
Ruizcalderon, the Debtor estimated $50 million to $100 million in
assets and $10 million to $50 million in liabilities. The Debtor
is represented by Paul A. Avron, Esq., at Berger Singerman LLP.
The U.S. Trustee for Region 21 on March 14, 2019, appointed three
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case. The Committee retained Wargo & French,
LLP, as its legal counsel.
MLW LLC: Exclusivity Period Extended Until Nov. 12
--------------------------------------------------
Judge Erik Kimball of the U.S. Bankruptcy Court for the Southern
District of Florida extended the period during which only MLW, LLC
can file a Chapter 11 plan to Nov. 12.
The company can solicit acceptances for the plan until Jan. 10,
2020.
MLW expected the plan to be a plan of liquidation whereby its real
property will be sold and all proceeds will be distributed
according to the priority scheme of the Bankruptcy Code. The
company is currently negotiating the sale of its principal asset
and is still addressing the validity of liens on the property and
other potential claims.
About MLW LLC
MLW, LLC, is a lessor of real estate in Boynton Beach, Florida. It
is the fee simple owner of a real property located at 10207 100th
Street, South Boynton Beach, Florida, valued by the company at $1
million.
MLW, LLC, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Fla. Case No. 18-14567) on April 18, 2018. In the
petition signed by Mark L. Woolfson, managing member, the Debtor
disclosed $1.06 million in assets and $1.22 million in liabilities.
Judge Erik P. Kimball presides over the case.
Alan R. Crane, Esq., at Furr & Cohen, P.A., serves as the Debtor's
bankruptcy counsel; and Nason, Yeager, Gerson, White & Lioce, PA,
as special counsel. The Debtor employs Pavlik Realty LLC and the
firm's principal Mitchell Pavlik to either sell or secure a tenant
for its real property located at 10207 100th Street South, Boynton
Beach, Fla.
MURRAY ENERGY: Moody's Lowers Corp. Family Rating to Ca
-------------------------------------------------------
Moody's Investors Service downgraded all ratings for Murray Energy
Corporation, including the company's Corporate Family Rating to Ca
from Caa1. The ratings are placed on review for further downgrade.
"Murray Energy's capital structure is not sustainable amid a sharp
reduction in pricing for export thermal coal in 2019 and
intensifying competition for declining domestic demand. While the
company has pursued series of distressed debt exchanges dating back
to early 2018, deemed tantamount to default by Moody's, the erosion
in market conditions clearly will increase financial distress in
the second half of 2019," said Ben Nelson, Moody's Vice President
-- Senior Credit Officer and lead analyst for Murray Energy
Corporation.
Downgrades:
Issuer: Murray Energy Corporation
Probability of Default Rating, Downgraded to Ca-PD from Caa1-PD;
Placed Under Review for further Downgrade
Corporate Family Rating, Downgraded to Ca from Caa1; Placed Under
Review for further Downgrade
Senior Secured Bank Credit Facility due 2020, Downgraded to Ca
(LGD4) from B3 (LGD3); Placed Under Review for further Downgrade
Gtd Senior Secured Bank Credit Facility due 2022, Downgraded to Ca
(LGD3) from B3 (LGD3) ; Placed Under Review for further Downgrade
Senior Secured Regular Bond/Debenture, Downgraded to C (LGD5) from
Caa2 (LGD5); Placed Under Review for further Downgrade
Senior Secured 2nd Lien Regular Bond/Debenture, Downgraded to C
(LGD5) from Caa3 (LGD5); Placed Under Review for further Downgrade
Outlook Actions:
Issuer: Murray Energy Corporation
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE
The downgrade and review for downgrade is prompted by a missed
interest payment. Murray Energy did not make amortization and
interest payments under its Superpriority Credit and Guaranty
Agreement due on September 30, 2019. The company also announced
that it has entered into forbearance agreements with lenders
holding in excess of 50% of outstanding loans under the
Superpriority Credit and Guaranty Agreement and with lenders
holding in excess of 50% of outstanding loans under its ABL and
FILO credit facilities. The lenders have agreed to forbear from
exercising any and all remedies related to the event of default
arising from the missed payments through 14 October 2019. However,
the grace period for the missed payment is five days and, based on
Moody's definition of default, Moody's will append an /LD
designation to the company's Ca-PD Probability of Default Rating
upon expiration of the grace period.
The review will focus on expected cash flow generation, liquidity,
including the company's willingness and ability to make upcoming
interest payments, and the company's plans to meet or restructure
its financial obligations. Murray's management has responded
aggressively to the ongoing secular decline in demand for thermal
coal in the United States by: (i) consolidating a portion of the
thermal coal industry through numerous acquisitions since inception
in 1988, including buying Consolidation Coal Company from CONSOL
Energy in 2013, acquiring effective control of Foresight Energy in
2015, two thermal coal mines in Colombia in 2015, three thermal
coal mines in the Illinois Basin in 2018, and two metallurgical
coal assets from the bankruptcy of Mission Coal in 2019; (ii)
investing in coal mining assets to lower cash costs and improve
competitive positioning; and (iii) incrementally restructuring its
balance sheet through a series of distressed debt exchange
transactions. While the company has developed a track record for
acquiring and improving the operating performance of coal mines, a
substantive deterioration in export prices and increasing domestic
competition is a major challenge for the company, which is
operating with a highly-leveraged balance sheet that reduces
financial flexibility and competing with better-capitalized
companies, many of whom recapitalized through bankruptcy protection
earlier in the decade and have substantially lower debt service
costs. Upcoming debt service requirements include significant
interest payments in October and maturities include $53 million of
stub debt due in 2020. The stub debt consists of term loans and
secured notes that were not exchanged as part of a refinancing
transaction in 2018.
The Ca CFR reflects the company's high financial leverage for a
coal company (low 5 times Debt/EBITDA including adjustments; LTM
6/30/2019), expected negative free cash flow given the significant
drop in prices for export thermal coal and drop in prices for
domestic thermal coal, and high likelihood of a debt restructuring
involving substantial losses in the near term. Fundamentally,
credit profile principally constrained by the challenges of
operating with a leveraged balance sheet in an industry
experiencing ongoing secular decline in domestic demand for thermal
coal. Murray is a diversified producer of thermal coal with twelve
active mining operations in three domestic coal basins (Illinois
Basin, Northern Appalachia, and Uintah) and one international basin
(Columbia). The company has good access to domestic utilities
operating coal-fired power plants and to the export markets.
Domestic demand for thermal coal has declined significantly over
the past decade and a continuation of this trend expected through
the medium term will create ongoing headwinds on the company's
earnings and cash flow generation even if export pricing is
strong.
Murray Energy has weak liquidity. The company reported $30 million
of cash (including cash at FELP) and $48 million of availability on
a $135 million asset based revolving credit facility at 30 June
2019. The revolving credit facility has a springing financial
covenant and Murray is required to have a minimum 1 time fixed
charge coverage ratio, if the excess availability of the revolver
is less than the greater of (i) $15.0 million and (b) 10% of
maximum borrowing amount. Murray also has first lien net leverage
maintenance financial covenant under the term loans. The company
has been generating negative cash flow in recent quarters.
Environmental, social, and governance factors are important factors
influencing Murray Energy's credit quality. The company is exposed
to ESG issues typical for a company in the coal mining industry,
including increasing global demand for renewable energy that is
detrimental to demand for coal, especially in the United States and
Western Europe. From an environmental perspective the coal mining
sector is also viewed as: (i) very high risk for air pollution and
carbon regulations; (ii) high risk for soil and water pollution,
land use restrictions, and natural and man-made hazards; and (iii)
moderate risk for water shortages. Social issues include specific
health risks, such as black lung disease, and typical safety issues
associated with mining. Governance issues include financial policy
challenges associated with a privately owned firm. Murray Energy's
ESG profile includes significant exposure to legacy liabilities,
including a meaningful position in the 1974 UMWA Pension Plan.
The company's ratings are on review for downgrade. Moody's could
downgrade the ratings in response to a distressed debt exchange or
bankruptcy filing. Moody's could upgrade the ratings in response to
a negotiated solution that positions the company with better
liquidity, including an expectation for positive free cash flow.
Murray Energy Corporation is the largest privately-owned coal
producer in the United States. The company was founded by its
current Chairman, President, and Chief Executive Officer, Robert E.
Murray, in 1988. Ownership of the company is closely held by the
CEO and his family, and the senior management team includes family
members. The company operates nineteen active mines, including
Foresight Energy L.P., in five domestic coal basins -- Illinois
Basin, Northern Appalachia, Central Appalachia, Warrior, and Uintah
(Utah) -- and one international basin -- Colombia, and generated
76.0 million clean tons in 2018. With the recent acquisitions of
Murray Maple Eagle Coal, LLC, and Murray Oak Grove Coal, LLC,
Murray has the ability to produce an additional 4.0 million clean
tons of metallurgical coal per year. The company has 80% voting
interest in Foresight Energy GP LLC, and approximately 52% of the
outstanding limited partner units in publicly-traded Foresight
Energy LP (common and subordinated units). Headquartered in St.
Clairsville, Ohio, Murray, including all of its subsidiary
operations, generated about $3.7 billion in revenue for the twelve
months ended June 30, 2019.
The principal methodology used in these ratings was Mining
published in September 2018.
MURRAY ENERGY: S&P Lowers ICR to 'SD' on Missed Payments
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
coal producer Murray Energy Corp. to 'SD' (selective default) from
'CCC'.
S&P also lowered the issue-level ratings on Murray's $1.6 billion
B-2 and $158 million B-3 outstanding first-lien term loans due in
2022 to 'D' from 'CCC'. The 'D' rating on the $295 million
outstanding second-lien notes due in 2021 and the $479 million
outstanding 1.5-lien senior notes due in 2024 is unchanged.
The downgrade follows Murray's announcement that it has elected not
to pay amortization and interest payments on its superpriority term
loan B-2 and B-3 due on Sept. 30, 2019. The company has entered
into forbearance agreements with superpriority term loan and ABL
and FILO credit facilities lenders until Oct. 14, 2019, under which
the debt holders will not enforce any of the rights and remedies
available under the credit agreements despite the missed interest
and principal payments.
"We will revise the rating on Murray to 'D' if the company does not
make interest and principal payments on its superpriority term loan
B-2 and B-3 within the stated grace period of five business days
regardless of the forbearance agreements. We would consider this a
general default because the company would have failed to pay
substantially all of its obligations as they came due," S&P said.
"We will also revise the rating to 'D' if the company announces a
restructuring plan pertaining to the entire debt structure of the
company. We view restructuring as a scenario where lenders receive
less value than the promise of the original securities," the rating
agency said.
NCCD-CLAREMONT PROPERTIES: Moody's Reviews Rating on 2017 Bonds
-----------------------------------------------------------------
Moody's Investors Service placed the ratings of NCCD - Claremont
Properties LLC under review for downgrade. The affected ratings are
the B1 rating on $52,640,000 outstanding University Housing Revenue
Bonds, Series 2017A and the B3 rating on $165,000 outstanding
Taxable University Housing Revenue Bonds, Series 2017B issued by
the California Public Finance Authority.
RATINGS RATIONALE
The review is prompted by stressed occupancy of 60.3% in fall 2019
due to significant construction delays which hampered the project's
ability to lease up. Occupancy is below the project's forecast
break-even occupancy of 76.8%, which indicates there will be a
shortfall in revenues to meet all budgeted operating expenses and
bond debt service.
The rating review will focus on revenue projections based on
occupancy, which may be impacted over the next month by (i)
cancelled leases and (ii) new leases to faculty and staff of Keck
Graduate Institute, Claremont Graduate University (Ba1 negative),
and other schools that are a part of The Claremont Colleges, Inc.
(Aa3 stable). Considerations include the size of projected draws on
the debt service reserve fund and amounts advanced to the Borrower
under the loan agreements outside of the trust indenture.
LEGAL SECURITY
The bonds are special limited obligations payable solely from the
revenues of the project and other funds held with the Trustee and
do not constitute obligations for the Issuer or KGI. The
obligations are secured by payments made under the Loan Agreement,
a leasehold deed of trust, and amounts held by the Trustee under
the Indenture.
PROFILE
The Obligor and Owner, NCCD - Claremont Properties LLC, is a single
member limited liability company organized and existing under the
laws of the State of California for the purpose of developing and
financing certain facilities for the benefit of the Claremont
Colleges. The sole member of the Obligor is National Campus
Community Development Corporation, a 501(c)(3) Texas non-profit
corporation.
METHODOLOGY
The principal methodology used in these ratings was Global Housing
Projects published in June 2017.
NOVASOM INC: Ombudsman Files Report on PII
-------------------------------------------
Lucy L. Thomson, the Consumer Privacy Ombudsman, filed a report to
advise the Court on the issues related to the protection of the
privacy of personally identifiable information of the patients of
NovaSom, Inc.
The Bankruptcy Code creates certain privacy protections for
personal information that consumers provided to a company in
connection with obtaining a product or service, primarily for
personal, family, or household purposes. The Debtor filed a status
report on September 23, 2019 designating BioSerenity, Inc. as the
proposed purchaser in connection with the sale of substantially all
of the debtor's assets.
NovaSom is a healthcare company that provides in-home sleep testing
for individuals who may have obstructive sleep apnea with an assets
offered for sale in this case include approximately 600,000 patient
records.
NovaSom and BioSerenity meet the requirements of this rule, and the
NovaSom patient records may be sold and transferred to the proposed
Buyer without the need to provide patients with notice of the sale
or an opportunity to provide written consent.
An important aspect of this sale is the agreement that BioSerenity
will protect the patient data and safeguard the patient records.
The past, present, or future payment for the provision of health
care to the individual, the provision of health care to the
individual, or the individual's past, present or future physical or
mental health or condition.
On August 2, 2019, NovaSom filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code. The Debtor continues to
manage and operate its business as a debtor-in-possession. No
trustee or examiner has been appointed. Thereafter, on August 23,
2019 the Court entered an Order approving the bidding procedures
and scheduling an auction and sale hearing and authorizing the
Debtor to enter into a Stalking Horse Agreement, subject to higher
and better offers.
The Court must determine if the sale and transfer of the PII and
PHI would violate the privacy policy. If the privacy policy would
be violated, the sale may proceed only if no applicable
non-bankruptcy law has been violated.
The Ombudsman believes the Recommendations in this CPO Report
strike an appropriate balance between the privacy rights of
consumers and patients and practical considerations associated with
this bankruptcy sale.
Therefore, the Ombudsman recommends that the Court approve the sale
and transfer of the NovaSom patient records to the proposed Buyer
BioSerenity. The proposed Buyer of the NovaSom personal customer
information and patient data -- BioSerenity -- meets the criteria
for being a "Qualified Buyer." The Ombudsman believes there is no
loss of privacy to NovaSom consumers as a result of this sale
because BioSerenity will maintain and safeguard the NovaSom patient
records as required by HIPAA and state laws.
The CPO can be reached at:
Lucy L. Thomson
Consumer Privacy Ombudsman
The Willard, Suite 400
1455 Pennsylvania Avenue
N.W. Washington, D.C. 20004
Tel: (703) 798-1001
Email: lucythomson1@mindspring.com
About NovaSom
NovaSom, Inc. -- http://www.novasom.com/-- is a home sleep testing
company having its principal place of business in Glen Burnie, Md.
Its business model is to send a medical device (FDA approved sleep
recorder) to a patient's home in order for the patient to be tested
for obstructive sleep apnea in his or her own home, rather than in
a sleep lab, when a physician prescribes the HST based on symptoms
and the patient's condition. The device records and auto-scores
the number of apnea events, then sends the data back to NovaSom's
servers via a cell phone chip in the device. Sleep physicians are
then able to overscore the data and give an opinion to the ordering
physician as to the patient's likelihood of having OSA.
NovaSom sought Chapter 11 protection (Bankr. Del. Case No.
19-11734) on Aug. 2, 2019. In the petition signed by Gregory J.
Stokes, president and CEO, the Debtor's assets are estimated to be
between $1 million and $10 million while liabilities are at the
same range.
The Hon. Brendan Linehan Shannon oversees the Debtor's case.
Dilworth Paxson LLP is the Debtor's counsel. Kurtzman Steady, LLC,
is co-counsel. Donlin Recano & Company is the official claims and
noticing agent.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
OPTIMIZED LEASING: Amended Plan & Disclosures Due Nov. 11
---------------------------------------------------------
Judge A. Jay Cristol of the U.S. Bankruptcy Court for the Southern
District of Florida, Miami Division, granted Optimized Leasing,
Inc., an extension until Nov. 11, 2019, of the deadline to file an
amended plan of reorganization and an amended disclosure statement.
About Optimized Leasing
With its headquarters in Miami, Florida, Optimized Leasing, Inc.,
is in the trucking business. Optimized Leasing utilizes its various
semi-trucks and trailers, some equipped with ThermoKing
refrigeration units, to transport flowers, fruits, vegetables, and
other perishable items throughout the U.S.
Optimized Leasing sought Chapter 11 protection (Bankr. S.D. Fla.
Case No. 18-10746) on Jan. 21, 2018. In the petition signed by CFO
Ronen Koubi, the Debtor estimated $10 million to $50 million in
assets and liabilities. Judge Jay A. Cristol oversees the case.
The Debtor tapped Stichter Riedel Blain & Postler, P.A., as its
bankruptcy counsel; and Bill Maloney Consulting as its financial
advisor.
PARKING MANAGEMENT: Seeks Authority to Use Cash for 3 Months
------------------------------------------------------------
Parking Management Services of America, Inc., seeks authority from
the U.S. Bankruptcy Court for the Central District of California to
use cash collateral pursuant to a 90-day cash budget.
The budget provides for $42,250 in total cash disbursements for
Oct. 2019, consisting of employee payroll and officer compensation,
a copy of which is available for free at:
http://bankrupt.com/misc/Parking_Mgt_23_Cash_MO.pdf
The Debtor seeks to provide $3,000 monthly adequate protection to
creditors having an interest in cash collateral, pro-rated in
relation to each creditor's claim from Debtor's projected monthly
net profit/loss. The claiming creditor must submit to the Debtor's
counsel, within 15 days from entry of the Court order on this
Motion, a copy of a validly perfected UCC Financing Statement
securing the property(ies) to be able to have a claim on the
monthly distribution.
The Debtor will also grant the secured creditors a replacement lien
in Debtor's post-petition cash, accounts receivables, if any, and
proceeds therefrom, to the same extent, validity, and priority as
any lien held by that secured creditors as of the petition date, to
the extent of cash collateral actually used by Debtor.
About Parking Management
Services of America
Parking Management Services of America, Inc., provides parking
attendants and attending personnel to various third parties'
parking locations. Parking Management Services filed a Chapter 11
petition (Bankr. C.D. Cal. Case No. 19-21103) on Sept. 19, 2019 in
Los Angeles, California. TENINA LAW, INC., serves as the Debtor's
counsel.
PG&E CORP: Wildfire Victims See $13.5 Billion in Claims
-------------------------------------------------------
Reuters reports that a lawyer for the committee representing
wildfire victims in the bankruptcy of PG&E Corp said at a hearing
Oct. 7, 2019, that the committee sees $13.5 billion as the cost to
the power provider for paying claims of the victims.
According to the report, Cecily Dumas of Baker & Hostetler LLP was
comparing that expectation with the maximum of $8.4 billion PG&E
has proposed for paying victims of the wildfires in 2017 and 2018
in Northern California that forced it to file for Chapter 11
bankruptcy protection in January.
At the time, PG&E said it expected wildfire-related liabilities
topping $30 billion.
PG&E has already struck settlements to resolve claims of a group of
public entities hit hard by the blazes for $1 billion and insurers
who had made payments for wildfire-related claims for $11 billion.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a
Fortune 200 energy-based holding company, headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric
Company, an energy company that serves 16 million Californians
across a 70,000-square-mile service area in Northern and Central
California.
As of Sept. 30, 2018, the Debtors, on a consolidated basis, had
reported $71.4 billion in assets on a book value basis and $51.7
billion in liabilities on a book value basis.
PG&E Corp. and Pacific Gas employ approximately 24,000 regular
employees, approximately 20 of whom are employed by PG&E Corp. Of
Pacific Gas' regular employees, approximately 15,000 are covered by
collective bargaining agreements with local chapters of three labor
unions: (i) the International Brotherhood of Electrical Workers;
(ii) the Engineers and Scientists of California; and (iii) the
Service Employees International Union.
On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary,
Pacific Gas and Electric Company, filed voluntary Chapter 11
petitions (Bankr. N.D. Cal. Lead Case No. 19-30088).
PG&E Corporation and its regulated utility subsidiary, Pacific Gas
and Electric Company, said they are facing extraordinary challenges
relating to a series of catastrophic wildfires that occurred in
Northern California in 2017 and 2018. The utility said it faces an
estimated $30 billion in potential liability damages from
California's deadliest wildfires of 2017 and 2018.
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP are
serving as PG&E's legal counsel, Lazard is serving as its
investment banker and AlixPartners, LLP is serving as the
restructuring advisor to PG&E. Prime Clerk LLC is the claims and
noticing agent.
In order to help support the Company through the reorganization
process, PG&E has appointed James A. Mesterharm, a managing
director at AlixPartners, LLP, and an authorized representative of
AP Services, LLC, to serve as Chief Restructuring Officer. In
addition, PG&E appointed John Boken also a Managing Director at
AlixPartners and an authorized representative of APS, to serve as
Deputy Chief Restructuring Officer. Mr. Mesterharm, Mr. Boken and
their colleagues at AlixPartners will continue to assist PG&E with
the reorganization process and related activities. Morrison &
Foerster LLP, as special regulatory counsel.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on Feb. 12, 2019. The Committee retained
Milbank LLP as counsel; FTI Consulting, Inc., as financial advisor;
Centerview Partners LLC as investment banker; and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
On Feb. 15, 2019, the U.S. trustee appointed an official committee
of tort claimants. The tort claimants' committee is represented by
Baker & Hostetler LLP.
* * *
PG&E has filed a bankruptcy-exit plan that proposes to pay off
wildfire claims as follows:
(x) payment of $11 billion to insurers to address insurance
subrogation claims totaling $20 billion;
(y) distribution of $1 billion to a group of local governments
and state agencies; and
(z) creation of a trust capped at $8.4 billion to resolve other
wildfire claims, including those of individual victims.
POINT.360: U.S. Trustee Seeks Conversion of Chapter 11 Case
-----------------------------------------------------------
U.S. Trustee Peter C. Anderson filed a motion asking the Court to
convert, dismiss, or appoint a Chapter 11 trustee in the Chapter 11
case of Point.360.
The U.S. Trustee asserts that conversion of reorganized case is
more appropriate to allow Chapter 7 trustee to administer case for
benefit of creditors. The Chapter 7 trustee may consider pursuing
the claims against Medley which is referred to in the Debtor's
Second Amended Disclosure Statement explaining its Second Amended
Chapter 11 Plan filed on Dec. 5, 2018, which may result in
augmenting a return to the Debtor's unsecured creditors.
About Point.360
Point.360 (PTSX) -- http://www.point360.com/-- and --
http://www.mvf.com/-- is an integrated media management services
company providing film, video and audio post production, archival,
duplication and data distribution services to motion picture
studios, television networks, independent production companies and
multinational companies. The Company provides the services
necessary to edit, master, reformat and archive its clients' audio,
video, and film content, which include television programming,
feature films, and movie trailers. On July 8, 2015, Point.360
acquired the assets of Modern VideoFilm to expand the Company's
service offering. The Company also rents and sells DVDs and video
games directly to consumers through its Movie-Q retail stores. The
Company is headquartered in Los Angeles, California.
Point.360 filed a voluntary petition for reorganization under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
17-22432) on Oct. 10, 2017.
In the petition signed by Haig S. Bagerdjian, the Company's
Chairman, President and CEO, the Debtor disclosed total assets of
$11.14 million and total debt of $14.77 million as of March 31,
2017.
The Hon. Julia W. Brand is the case judge.
The Debtor hired Lewis R. Landaue, Esq., as bankruptcy counsel, and
TroyGould PC, as transactional counsel.
No trustee has been appointed, and the Company will continue to
operate its business as "debtor in possession" under the
jurisdiction of the Court and in accordance with the applicable
provisions of the Bankruptcy Code and orders of the Court.
RENNOVA HEALTH: Issues $1.9 Million Promissory Note to Lender
-------------------------------------------------------------
Rennova Health, Inc., on Sept. 27, 2019, issued a promissory note
to a lender in the principal amount of $1,900,000. The Company
received proceeds of $1,600,000. The first principal payment of
$1,000,000 is due on or before Nov. 8, 2019 and the remaining
$900,000 is due on or before Dec. 26, 2019. The Note does not bear
interest except upon the occurrence of an Event of Default. The
Note is unsecured and is guaranteed by Christopher Diamantis, a
director of the Company.
About Rennova Health
Rennova Health, Inc. -- http://www.rennovahealth.com/-- operates
three rural hospitals in Tennessee and provides diagnostics and
supportive software solutions to healthcare providers.
Rennova Health reported a net loss attributable to common
shareholders of $108.5 million for the year ended Dec. 31, 2017,
compared to a net loss attributable to common shareholders of
$32.61 million for the year ended Dec. 31, 2016. As of Sept. 30,
2018, the Company had $19.43 million in total assets, $39.76
million in total liabilities, $5.83 million in redeemable preferred
stock I-1, $3.96 million in redeemable preferred stock I-2, and a
total stockholders' deficit of $30.13 million.
The report from the Company's independent accounting firm Green &
Company, CPAs, in Tampa, Florida, the Company's auditor since 2015,
on the consolidated financial statements for the year ended Dec.
31, 2017, includes an explanatory paragraph stating that the
Company has significant net losses, cash flow deficiencies,
negative working capital and accumulated deficit. These conditions
raise substantial doubt about the company's ability to continue as
a going concern.
S&C TEXAS: Unsecureds to Recover 40% in 12 Years
------------------------------------------------
S&C Texas Investments, Inc., filed with the U.S. Bankruptcy Court
for the Southern District of Texas, Houston Division, a plan of
reorganization and explanatory disclosure statement.
Under the Plan, the general unsecured creditors will be paid 40% of
their allowed claims in 144 equal pro-rated monthly payments
beginning in month 37 of the plan. Month 1 of the plan begins 60
days following the effective date of the plan. After the 144 equal
pro-rated monthly payments have been made, any remaining balance
owed to the allowed unsecured creditors will be discharged.
Payments and distributions under the Plan will be funded through
future income from the operations of the company. As to a default
under the plan, any creditor remedies allowed by 11 U.S.C. §
1112(b)(4)(N) shall be preserved to the extent otherwise available
at law. In addition to any rights specifically provided to a
claimant treated pursuant to this Plan, a failure by the
Reorganized Debtor to make a payment to a creditor pursuant to the
terms of this Plan shall be an event of default as to such payments
if the payment is not cured within thirty (30) days after service
of a written notice of default from such creditor, then such
creditor may exercise any and all rights and remedies under
applicable non-bankruptcy law to collect such claims or seek such
relief as may be appropriate in the United States Bankruptcy
Court.
The shareholders will not receive any dividends unless and until
all creditors are paid in full pursuant to the Plan. The
shareholders are contributing new value to the Debtor in the amount
of $25,000 upon confirmation of this plan.
A full-text copy of the Disclosure Statement dated October 1, 2019,
is available at https://tinyurl.com/y44jugp3 from PacerMonitor.com
at no charge.
The Debtor is represented by Margaret M. McClure.
About S&C Texas Investments
S&C Texas Investments, Inc., is an amusement park operator and
investor whose current assets include the Sky Zone Westborough and
Sky Zone Wallingford amusement centers.
S&C Texas Investments, Inc., based in Cypress, TX, filed a Chapter
11 petition (Bankr. S.D. Tex. Case No. 18-35668) on Oct. 8, 2018.
In the petition signed by Ryan Swift, president, the Debtor
disclosed $857,373 in assets and $8,862,438 in liabilities. The
Hon. David R. Jones oversees the case. Margaret M. McClure, Esq.,
at the Law Offices of Margaret M. McClure, serves as bankruptcy
counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
SAFEBUY ACCEPTANCE: Lender Group Seeks Ch. 11 Trustee Appointment
-----------------------------------------------------------------
A group of seventeen individuals that hold unsecured debt lent over
$5.6 million to SafeBuy Financial Services, Inc., and the loan is
subject of a bona fide dispute.
The Lender Group asks the Court to enter an order authorizing the
appointment of a trustee pursuant to section 1104(a) of the
Bankruptcy Code.
SafeBuy LLC is part of a business enterprise that operates used car
lots and sells vehicles on a "buy here / pay here" basis, thereby
generating promissory notes executed by buyers. This business was
conducted by SafeBuy LLC through affiliates SafeBuy Properties,
LLC, SafeBuy Acceptance Corporation and SafeBuy Financial Services,
Inc. In the description of their business, the promises of payment,
the financial information provided, and the management of that
business, SafeBuy LLC, Properties,
The operations of the SafeBuy Enterprise may have at one time had a
legitimate basis. However, according to the Lender Group, based
upon available evidence, the business of the SafeBuy Enterprise
became over time what amounts to a Ponzi scheme, soliciting further
loans and the using the proceeds to pay the interest owed to prior
lenders. Beginning in late 2018, SafeBuy LLC began to miss interest
payments owed to some of the members of the Lender Group. At the
same time, SafeBuy LLC was still soliciting and accepting loans
from new lenders.
After payment default, management of the SafeBuy Enterprise made
promises to repay the Lender Group through a sale of real estate of
Properties and a revised business model for the SafeBuy Enterprise.
The sale of the real estate occurred in July, 2019 generating over
$7.7 million in proceeds, but the proceeds were used to pay other
creditors, including insiders and litigation claimants.
The Lender Group did not receive any of the sale proceeds. The
Debtors' promise to the Lender Group that they be repaid over a
five-year term through a new operating model also proved to be
illusory. Most recently, the Lender Group through its counsel
demanded detailed information from the SafeBuy Enterprise
concerning its financial status. On September 6th, SafeBuy
Enterprise management responded by providing two single sheets of
unaudited financial information dated July 31, 2018 and December
31, 2018.
Neither of these documents provide any information concerning the
current operations of the SafeBuy Enterprise or its current assets
and liabilities and was likely meant to mislead Movants. No
additional financial information was offered by the SafeBuy
Enterprise to the Lender Group.
A trustee is needed to protect the interests of the Lender Group
and of other creditors of the Debtors. Additionally, the facts
known to the Movants indicate that there may be cause for
appointment of a Trustee because of fraud, dishonesty, or gross
mismanagement of the affairs of the Debtors by its current
management.
These cases were initiated on September 13, 2019 by the filing of
an involuntary petition by Greg Smith (through his personal IRA),
Jason Johnson (on behalf of a family trust), and Tim Turner (the
"Petitioning Creditors") against the Debtors. 4. The Petitioning
Creditors are part of a larger Lender Group consisting of
individuals or their investing entity. Each member of the Lender
Group loaned money in essentially the same way.
The initial Lenders were persons who were friends of Doug Feigl,
one of the principals of the Debtors. Those Lenders in turn
introduced other Lenders to Mr. Feigl and were these Lenders in
turn were persuaded to lend money to the SafeBuy Enterprise. In
each case, SafeBuy LLC executed a one-year promissory note in favor
of the Lender in the amount of the money lent by the Lender. The
note provided that the Lender would be paid interest monthly over
the term and the principal would be repaid upon the maturity of the
note.
The Debtors are the operators of "buy here/pay here" used car lots
in the Dallas area. To operate this business, the Debtors would own
or lease real property for the car lots and would acquire used car
inventory. The nature of the buy here/pay here business is that the
seller would typically have the buyer of a vehicle execute a high
interest rate note to finance the purchase of the vehicle.
The first indication of trouble for Lenders Group was that in
November and December, 2018, certain Lenders did not receive their
interest payments.
Therefore, the determination of cause is a fact intensive inquiry
that courts make on a case-by-case basis (see In re Sundale, Ltd.,
400 B.R. 890, 900 (Bank. S.D. Fla. 2009)).
Accordingly, the Lender Group asks that this Court enter an order
directing that a trustee be appointed as trustee in these Chapter
11 cases pursuant to section 1104(a)(1) and (2) of the Bankruptcy
Code and Bankruptcy Rule 2007.1(a).
The members of the Lender Group include Greg Smith, Jim Bright,
Jason Johnston, Jim and Jamie Huddleston, Larry Starks, Stephen
Mobley, David Wayne, Allison and Brendan McLean, Steve and Elise
Miller, Tim and Elise Turner, Gary and Karen Meyers, and Neil
Kline.
The Lender Group is represented by:
Arnaldo "Arnie" N. Cavazos, Esq.
Christopher J. Volkmer, Esq.
CAVAZOS HENDRICKS POIROT, P.C.
Suite 570, Founders Square
900 Jackson Street
Dallas, TX 75202
Tel: (214) 573- 7322
Email: cvolkmer@chfirm.com
Creditors Chupacabra, Ltd., The Thor Johnston Family Trust, and Tim
Turner filed an involuntary petition (Bankr. N.D. Tex. Case No.
19-33087) against SafeBuy Financial Services, Inc., on September
14, 2019.
The Petitioners' counsel is Arnaldo Nelson Cavazos, Jr., Esq., at
Cavazos Henricks Poirot, P.C., in Dallas, Texas.
SAMSON OIL: Janna Blanter Resigns as Chief Financial Officer
------------------------------------------------------------
Janna Blanter resigned as the chief financial officer of Samson Oil
& Gas Limited, and Samson Oil and Gas USA, Inc., a wholly-owned
subsidiary of the Company, on Sept. 30, 2019.
On Oct. 1, 2019, Mr. Tristan Farel, 49, was appointed to the
position of chief financial officer of the Company and Samson USA.
Mr. Farel has 18 years of accounting and reporting experience,
holding various executive and senior management positions with both
public and private companies in the United States, Canada, and
Australia. Mr. Farel has experience in the areas of financial
analysis, SEC reporting, International Financial Reporting
Standards (IFRS) reporting, due diligence and integration in
connection with mergers and acquisitions and consolidations,
purchase accounting, scheduling and organizing external audits, tax
scheduling, and developing capital and operating budgets. Mr.
Farel also worked for five years in public accounting as an
auditor. Mr. Farel has held the positions of chief financial
officer of PetroShale, Inc. from 2013 to 2014, chief financial
officer of New Frontier Energy, Inc. from 2010 to 2016, and chief
financial officer of Arete Industries, Inc. from 2015 to 2019. Mr.
Farel has also held the positions of Financial Reporting Manager
for Resolute Energy Corporation (2006-2010) and Audit Manager for
Hein & Associates (2001-2006).
Mr. Farel has a Bachelor of Science in Business Administration,
with an emphasis in Accounting, from the University of Colorado at
Boulder, and has been active in the Council of Petroleum
Accountants Society, the Colorado Society of Certified Public
Accountants and the American Institute of Certified Public
Accountants.
Effective Oct. 1, 2019, the Company entered into an Employment
Agreement with Mr. Farel and LTN Ergy, LLC. Pursuant to the
Employment Agreement, Mr. Farel will serve in his position as chief
financial officer of the Company for an initial period of twelve
months, and will continue to serve in such position indefinitely
thereafter until either party terminates the Employment Agreement.
Mr. Farel will be paid $240,000 per year for his service as chief
financial officer of the Company.
About Samson Oil
Samson Oil & Gas Limited -- http://www.samsonoilandgas.com/-- is
an independent energy company primarily engaged in the acquisition,
exploration, exploitation and development of oil and natural gas
properties. The Company's principal business is the exploration
and development of oil and natural gas properties in the United
States. The Company is headquartered in Perth, Western Australia.
Samson Oil incurred a net loss of $6.03 million for the year ended
June 30, 2018, following a net loss of $2.76 million for the year
ended June 30, 2017. As of March 31, 2019, Samson Oil had $33.93
million in total assets, $41.57 million in total liabilities, and a
total stockholders' deficit of $7.63 million.
Moss Adams LLP, in Denver, Colorado, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
Oct. 15, 2018, on the Company's consolidated financial statements
for the year ended June 30, 2018, stating that the Company is in
violation of its debt covenants, has suffered recurring losses from
operations, and its current liabilities exceed its current assets.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
SILVER CREEK: Seeks to Extend Final Cash Order to Oct. 31
---------------------------------------------------------
Silver Creek Services, Inc., seeks permission from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to extend
the final order on the Cash Collateral Motion to Oct. 31, 2019, on
the same terms and conditions, pursuant to a budget.
The budget provides for $41,110 in cost of goods sold and $128,188
in selling, general and administrative expenses, for the
week-ending Oct. 12, 2019. A copy of the budget can be accessed
for free at
http://bankrupt.com/misc/Silver_Creek_148(1)_Cash_Budget.pdf
The Debtor will use the cash collateral to pay for necessary
operating expenses in order to remain in business and maintain the
value of its enterprises as an on-going concern.
The Debtor also seeks to sell post-petition accounts receivable
pursuant to the Corporate Billing Agreement in order to provide the
liquidity necessary to operate its business and reduce disruptions
otherwise caused by the petition filing.
About Silver Creek Services Inc.
Silver Creek Services Inc. is an oil & gas field services provider,
including fracturing, flowback, and production testing.
Silver Creek Services Inc. filed a voluntary petition under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Penn. Case No. 19-22775) on
July 11, 2019. In the petition signed by Michael Didier, chief
executive officer, the Debtor disclosed $6,385,000 in assets and
$11,922,381 in liabilities. Robert O. Lampl, Esq. at ROBERT O
LAMPL LAW OFFICE serves as the Debtor's counsel.
SPORTCO HOLDINGS: Exclusivity Period Extended Until Jan. 6
----------------------------------------------------------
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for
the District of Delaware extended the period during which only
SportCo Holdings, Inc. and its affiliates can file a Chapter 11
plan to Jan. 6, 2020.
The companies can solicit acceptances for the plan until March 9,
2020, according to the bankruptcy judge's order.
About SportCo Holdings
United Sporting Companies, Inc., was founded in 1933 under the name
Ellett Brothers, Inc. before merging with Jerry's Sports, Inc., in
2009 and formally changing its name to United Sporting Companies,
Inc. on July 16, 2010. Headquartered in Chapin, S.C., the companies
are marketers and distributors of a broad line of products and
accessories for hunting and shooting sports, marine, camping,
archery, and other outdoor activities.
The companies' product line of over 55,000 SKUs includes firearms,
reloading, marine electronics, trolling motors, optics, cutlery,
archery equipment, ammunition, leather goods, camping equipment,
sportsman gifts, and a variety of other outdoor sporting goods
products. The companies carry the major brands in the outdoor
sports industry, including Remington, Ruger, Browning, Winchester,
Smith & Wesson, Glock, Bushnell, Sig Sauer, Springfield Armory,
Hornaday, Henry, Magpul, Armscor, MotorGuide, Minn Kota, Lowrance,
Federal, CCI, Taurus, and Leupold. The companies employ 321 people.
SportCo, a Delaware corporation, is a holding company with no
business operations.
SportCo Holdings, Inc. and its affiliates, including United
Sporting Companies, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-11299) on June 10,
2019. At the time of the filing, SportCo was estimated to have
assets of less than $50,000 and liabilities between $100 million
and $500 million.
The cases are assigned to Judge Laurie Selber Silverstein.
The Debtors tapped McDermott Will & Emery LLP as their bankruptcy
counsel; Polsinelli PC as local Delaware counsel; Winter Harbor LLC
as restructuring advisor; BMC Group, Inc. as notice and claims
agent; and Wilson Kibler, Inc., as real estate broker.
Andrew Vara, acting U.S. trustee for Region 3, on June 17, 2019,
appointed seven creditors to serve on the official committee of
unsecured creditors in the Chapter 11 case. The Committeeretained
Lowenstein Sandler LLP, as counsel, and Morris James LLP, as
co-counsel.
STONE OAK MEMORY: Seeks to Use Cash Collateral on 14-Day Budget
---------------------------------------------------------------
Stone Oak Memory Care, LLC, requests the U.S. Bankruptcy Court for
the Western District of Texas to permit use of cash collateral to
pay reasonable and necessary operating expenses pursuant to a
14-day budget from Oct. 1 to Oct. 14, 2019.
The budget proposes total disbursements of $6,613 for Oct. 4;
$12,557 for Oct. 7; and $60,500 for Oct. 9, 2019. A copy of the
budget is available for free at:
http://bankrupt.com/misc/Stone_Oak_3(1)_Cash_Budget.pdf
The Debtor's proposed offer of adequate protection includes (i)
replacement liens to the extent of any validly perfected,
unavoidable security interest as of the Petition Date, and (ii) a
priority administrative claim to the extent of the diminution of
value of each lender's collateral, if any, and failure of other
forms of adequate protection provided by the Debtor.
The proposed replacement liens and priority administrative claim
will be subject to a carve-out for unpaid fees owed to the clerk of
the Bankruptcy Court or the United States Trustee, and
court-approved administrative expense claims of estate
professionals.
About Stone Oak Memory Care
Stone Oak Memory Care, LLC, d/b/a Autumn Leaves of Stone Oak, owns
and operates an adult memory care facility in Dallas, Texas.
Stone Oak Memory Care sought Chapter 11 protection (Bankr. W.D.
Tex. Case No. 19-52375) on Sept. 30, 2019 in San Antonio, Texas.
The petition was signed by Darryl Freling, Pres. of MedProperties
Stone Oak Mgr, LL. On the Petition Date, the Debtor was estimated
to have $1 million to $10 million in assets and liabilities. Judge
Ronald B. King oversees the Debtor's case. The LAW OFFICES OF RAY
BATTAGLIA, PLLC is counsel to the Debtor.
SUNCO TRUCKING: Seeks Access to $2M Cash for Continued Operations
-----------------------------------------------------------------
Sunco Trucking LLC, asks the U.S. Bankruptcy Court for the Middle
District of Florida for permission to use approximately $2,000,000
in cash collateral to make payroll, pay utilities, pay suppliers
and vendors, and pay other ordinary course expenses, pursuant to a
budget.
As adequate protection, the Debtor proposes to grant Santander
Bank, N.A., with replacement liens to the extent of any diminution
in value of the cash collateral. As of the Petition Date, the
Debtor, along with its co-Debtors, owes Santander approximately $7
million in principal secured by various accounts receivable.
A copy of the Motion and the budget is accessible for free at:
http://bankrupt.com/misc/Sunco_Trucking_7_Cash_MO.pdf
About Sunco Trucking
Sunco Trucking LLC is a Georgia corporation and subsidiary of
co-debtor KJM Capital Transportation Fund, LLC. The Debtor owns
and operates three refrigerated trucking fleets based in Lakeland,
Florida. The Coca-Cola fleet is a fleet of 35 drivers providing
distribution services for Coca-Cola products throughout Florida on
a 24/7 basis. The Regional fleet, consisting of 26 company drivers
and 43 owner operators, is primarily focused on hauling food
products in Florida, Georgia, and Alabama. The Tropicana fleet,
with 38 drivers, hauls Pepsi and Tropicana products under Pepsi
dispatch control.
Sunco Trucking along with six related companies, on Sept. 27, 2019,
filed a petition for elief under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 19-06308). Shuker & Dorris, P.A., is
counsel to the Debtors.
Sunco and six related debtors are seeking joint administration
under lead case KJM Capital Transportation Fund, LLC (In re M.D.
Fla. Case No. 19-06302).
SWMS GROUP: U.S. Trustee Asks Court to Convert Case to Chapter 7
----------------------------------------------------------------
John P. Fitzgerald, III, Acting United States Trustee for Region 4,
filed a motion asking the Court enter an Order converting the
Chapter 11 case of SMWS Group LLC to one under Chapter 7 of the
Bankruptcy Code, or in the alternative directing the appointment of
a Chapter 11 trustee, and granting such other and further relief as
the Court deems necessary and appropriate.
The United States Trustee agrees with the Debtor that cause exists
under the Bankruptcy Code, but differs on the ultimate remedy.
Given recently disclosed facts, conversion of this case to Chapter
7 would be in the best interest of creditors, the U.S. Trustee
asserts.
On Amended Schedule A/B, the Debtor lists accounts receivable of
$30,800. However, the Debtor's financial stability also suffered
after an individual drove through the restaurant's front window in
March 2018, causing significant property damage.
The Debtor testified at its 341 Meeting that this accident was the
precipitating factor for the bankruptcy filing. The United States
Trustee timely objected to the Disclosure Statement because it did
not provide adequate information and to the Plan because it did not
appear confirmable.
In response, the Debtor filed its Motion for Entry of Order
Dismissing Chapter 11.
The U.S. Trustee asserts that the case should be converted to
Chapter 7 for several reasons. First, and most importantly, the
Debtor has filed -- and may even have settled -- a civil action in
Montgomery County, MD, without seeking Court permission to employ
and compensate the attorney and without notice to creditors
pursuant to Fed. R. Bankr. P. 9019 of the settlement's terms.
Pursuant to Local Bankruptcy Rule 9013-2, the United States Trustee
relies solely upon the present Motion, and no additional memorandum
of fact or law will be filed.
As a threshold matter, the United States Trustee notes that the
Debtor does not appear to have served all creditors with this
Court's Order and Notice of a Hearing on Motion to Dismiss.
The filing of a voluntary bankruptcy petition creates an estate
comprised of all property as to which the debtor holds a legal or
equitable interest.
In the Motion to the Dismiss, the Debtor refers to a vague
settlement, stating that "the dismissal of the Chapter 11 Case
shall provide for the secured creditor and unsecured creditors to
receive their funds in an expeditious fashion
The Debtor's current management has proven to be unable or
unwilling to do so. A neutral third party should now be given an
opportunity to take the actions necessary to protect all creditors'
interests and those of the estate.
The U.S. Trustee asks that the Court enter an Order converting this
case to Chapter 7, or in the alternative directing the appointment
of a Chapter 11 trustee, and granting such other and further relief
as the Court deems necessary and appropriate.
About SMWS Group
SMWS Group LLC is a lessor of real estate based in Germantown,
Maryland. The company filed for chapter 11 bankruptcy protection
(Bankr. D. Md. Case No. 19-12941) on March 6, 2019, with estimated
assets of $1 million to $10 million and estimated liabilities at
$500,000 to $1 million. The petition was signed by Asia Shah,
managing member.
The Company previously sought bankruptcy protection on Dec. 13,
2018 (Bankr. D. Md. Case No. 18-26379).
SYNCREON GROUP: S&P Raises ICR to 'CCC+' Following Debt Exchange
----------------------------------------------------------------
S&P Global Ratings raised to 'CCC+' from 'SD' (selective default)
its issuer credit rating on U.S.-based logistics services provider
syncreon Group Holdings B.V. and assigned its 'CCC+' issuer credit
rating to syncreon Group B.V., the intermediate holding company.
In addition, S&P assigned its 'B-' issue rating and '2' recovery
rating to the group's new $125.5 million first-out senior secured
term loan, and rated the $225 million second-out senior secured
term loan 'CCC-' with a recovery rating of '6'.
The upgrade reflects syncreon's significant reduction in leverage
following the completion of its debt exchange offer and no
near-term debt maturities. However, S&P still views syncreon's
capital structure as unsustainable over the longer term because of
the company's reliance on favorable business and economic
conditions to be able to viably generate positive free operating
cash flow.
syncreon's announcement on Oct. 1, 2019, that it had completed its
offer to exchange approximately $680 million of senior secured debt
obligations outstanding under its senior secured term loan and
revolving credit facilities into $225 million of newly issued
first-lien, senior secured second-out term loans. This represents
more than 80% of the group's reorganized equity. Holders of the
group's senior unsecured notes received about 7% of the group's
equity and warrants to purchase an additional 10%, subject to
dilution.
The group also issued a new first-lien, senior secured fist-out
term loan with an aggregate principal of $125.5 million by
converting liquidity loans already outstanding and the drawdown of
backstopped commitments provided in advance by an ad hoc group of
senior secured lenders. The group's old asset-backed lending (ABL)
facility was repaid in full and replaced with a new $135 million
ABL facility. The new debt facilities also include a further $50
million noncommitted accordion feature. Customers' and trade
creditors' claims were not impaired in the transaction.
The exchange transaction, which S&P considered to be distressed,
resulted in a marked reduction in syncreon's leverage. It now
expects the group's S&P-adjusted debt-to-EBITDA ratio to decrease
to approximately 5.5x by end-2019 from over 9.0x at end-2018. The
rating agency's current debt-to-EBITDA estimate excludes
substantial advisory fees related to the transaction that it
considers exceptional.
S&P sees limited upside potential at this time. Deteriorating
economic conditions worldwide and weakening consumer confidence
will continue to constrain sales growth in the automotive sector,
which accounted for about 55% of syncreon's 2018 revenues. The
deceleration is exacerbated by the higher cost for manufacturers
associated with innovation, intensifying pressure on margins. As a
result, service providers to the automotive industry will likely
face modest growth prospects and elevated pricing pressure, too,
challenging margin improvements. Furthermore, the technology
sector--where syncreon generated the remaining 45% of its 2018
revenues--is exposed to similar cyclical and political factors,
indicating that suppliers could also face a difficult business
climate.
S&P expects negative free operating cash flow generation on a
reported basis in 2019-2020. Over the coming 12 months, however,
the $135 million ABL facility and the PIK interest election
provision for the second-out term loan provides some liquidity
cushion.
The stable outlook reflects S&P's expectation that syncreon has
adequate liquidity to meet its near-term cash needs over the next
12 months. However, S&P considers the company's capital structure
to be unsustainable over the longer term. This is because the
company depends on favorable business and economic conditions to be
able to generate positive free operating cash flow and support its
debt burden, despite the recent significant reduction.
"We could take a negative rating action if the company's operating
performance weakens further, resulting in EBITDA margin declines
and sustained negative free operating cash flow, resulting in
insufficient liquidity and an increased likelihood of a default or
a distressed exchange," S&P said.
"An upgrade is unlikely over the next 12 months. S&P could take a
positive rating action if the company substantially improves its
cash generation and exhibits sustainable, meaningfully positive
free operating cash flow. This could happen, for example, if
syncreon increases its EBITDA margin without an offsetting increase
in outlays for capital expenditure and working capital," the rating
agency said.
TRI-CORE PARTNERS: Wins Cash Access Until Mid-November
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
authorized Tri-Core Partners USA LLC to use cash collateral, on an
interim basis, in the regular course of business nunc pro tunc to
May 24, 2019.
The Court ruled that all prepetition and postpetition income will
be turned over and paid to the Debtor for deposit into the DIP
accounts during the pendency of the Debtor's case and until further
order of the Court.
The Court will continue to December 17, 2019 at 1:30 p.m. hearing
on the Debtor's cash collateral motion and the related objection
filed by Expansion Capital Group.
A copy of the Court-approved budget is available for free at:
http://bankrupt.com/misc/Tri_Core_72(1)_Cash_Budget.pdf
About Tri-core Partners USA
Tri-Core Partners USA LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-16931) on May 24,
2019. At the time of the filing, the Debtor was estimated to have
assets between $100,001 and $500,000 and liabilities of the same
range. The petition was signed by the Debtor's manager, Darrian
Kelly. The case is assigned to Judge Mindy A. Mora. Kelley,
Fulton & Kaplan, P.L., is the Debtor's legal counsel. The U.S.
Trustee did not appoint an official committee of unsecured
creditors in the Chapter 11 case.
VMW INVESTMENTS: DOJ Watchdog Seeks Trustee Appointment
-------------------------------------------------------
The United States Trustee for Region 6 moves for an order directing
the appointment of a Chapter 11 Trustee for VMW Investments, LLC
and VMW Bedford, LLC.
Based on the Debtors' monthly operating reports, the Debtors'
manager Michael Waters withdrew funds without the secured lender's
approval. At best, Mr. Water's withdrawal of funds without
permission from Debtors' secured lender constitutes gross
mismanagement. At worst, Mr. Waters committed fraud.
The Court should direct appointment of a chapter 11 trustee both
because cause exists and because it in the best interests of
creditors of the estate. Appointing a trustee or examiner impacts
the case administration and therefore is a core matter that the
Court has the power to resolve.
The Bankruptcy Code provides that the United States trustee "shall
move for the appointment of a trustee under subsection (a) if there
are reasonable grounds to suspect that current members of the
governing body of the debtor, the debtor's chief executive officer,
or members of the governing body who selected the debtor's chief
executive or chief financial officer, participated in actual fraud,
dishonesty, or criminal conduct in the management of the debtor or
the debtor's public financial reporting.
The Debtors' principal appears to have misappropriated funds from
the estate. Cumulatively, the facts and allegations in this case
establish, at best, incompetence and gross mismanagement of the
Debtors' affairs such that cause exists to appoint a trustee. Even
if the Debtors were able to establish a business purpose for the
withdrawal of the $19,424.00, defense would, at best, establish
gross mismanagement of its financial affairs in that Debtors failed
to confer with Lakeland, who has a lien on cash collateral, before
withdrawing these funds.
This acrimony between the Debtors and their creditors also
constitutes cause for appointment of a chapter 11 trustee. Mr.
Waters' decision to withdraw $19,424.00 from Debtors' bank account
gives the appearance of impropriety at best and smacks of
self-dealing at worst. These funds are cash collateral of Lakeland.
While it appears $13,500.00 was returned, at least $5,924.00
remains unaccounted for.
The Court should direct the appointment of a chapter 11 trustee to
serve the "interests of creditors, any equity security holders, and
other interests of the estate." 11 U.S.C. It is in the best
interests of creditors to have an independent trustee assume
control over the estate. Debtors are actively marketing the
properties for a sale and potential causes of action remain in the
estate against the principals.
Therefore, the United States Trustee requests the Court to order
the appointment of a Chapter 11 Trustee. At worst, the facts and
allegations may establish that Debtors have committed actual fraud
and acted with dishonesty.
About VMW Investments and VMW Bedford
VMW Investments, LLC and VMW Bedford, LLC are engaged in renting
and leasing real estate properties.
On June 30, 2019, VMW Investments and VMW Bedford sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Lead
Case No. 19-42644). At the time of the filing, each Debtor
disclosed assets of between $1 million and $10 million and
liabilities of the same range. The cases are assigned to Judge
Mark X. Mullin. Bonds Ellis Eppich Schafer Jones LLP is the
Debtors' legal counsel.
WEATHERLY OIL: Liquidating Plan Declared Effective Sept. 30, 2019
-----------------------------------------------------------------
On August 15, 2019, Judge Marvin Isgur of the U.S. Bankruptcy Court
for the Southern District of Texas, Houston Division, issued an
order approving Disclosure Statement and confirming the Third
Amended Plan of Liquidation of Weatherly Oil & Gas, LLC.
The Effective Date of the Plan occurred on Sept. 30, 2019.
A full-text copy of the Third Amended Disclosure Statement dated
August 15, 2019, is available at https://tinyurl.com/y2dak9js from
PacerMonitor.com at no charge.
About Weatherly Oil & Gas
Weatherly Oil & Gas, LLC -- https://www.weatherlyop.com/ -- is a
Fort Worth-based oil and natural gas company primarily focused on
exploiting natural resources in the Ark-La-Tex region. Weatherly
is operated by an affiliate Weatherly Operating, LLC.
Weatherly Oil & Gas filed a voluntary petition under Chapter 11 of
the US Bankruptcy Code (Bankr. S.D. Tex. Case No. 19-31087) on Feb.
28, 2019. In the petition signed by Scott Pinsonnault, CRO, the
Debtor estimated $50 million to $100 million in assets and $100
million to $500 million in liabilities.
WILLOW WINDS: S&P Lowers 2013 A-B Revenue Bond Rating to 'CCC'
--------------------------------------------------------------
S&P Global Ratings lowered its long-term rating three notches to
'CCC' from 'B' on Harris County Cultural Education Facilities
Finance Corp., Texas' series 2013A and 2013B senior living housing
revenue bonds (The Terrace at Spring Shadows Place apartments
project), issued for Willow Winds Inc. At the same time, S&P Global
Ratings removed the ratings from CreditWatch, where they had been
placed with negative implication on Aug. 20, 2019. The outlook is
developing.
In addition to the weak credit factors, the rating action and
outlook reflect the obligor's draw on the debt service reserve fund
to pay a portion of the Oct. 1, 2019 debt service payment, as
confirmed by the trustee, Wilmington Trust, on Oct. 3, 2019.
"Accordingly, we acknowledge that a default, distressed exchange,
or redemption could be possible within 12 months, absent
significantly favorable changes in the obligor's circumstances,"
said S&P Global Ratings credit analyst Joanie Monaghan.
The 'CCC' category indicates obligations may be vulnerable to
nonpayment, and that the obligor is dependent upon favorable
business, financial, and economic conditions to meet financial
commitments.
WORLD SYSTEMS: Seeks Dec. 2, 2019 Extension of Plan Filing Deadline
-------------------------------------------------------------------
World Systems, Inc. moves the U.S. Bankruptcy Court for the Central
District of California, San Fernando Valley Division, for an order
granting a 60-day extension, until Dec. 2, 2019, of the October 1,
2019 plan and disclosure statement filing deadline.
The Debtor's first priority mortgage is a $4,149,257.95 obligation
asserted by JPMorgan Chase Bank, National Association. Chase moved
for relief from stay on Aug. 23, 2019, and the hearing thereon has
been continued to October 23, 2019, at 10:00 a.m.
According to the Debtor, the parties are actively engaged in
settlement discussions toward an adequate protection order and
further negotiations are anticipated toward resolving Chase's plan
treatment as well.
Undisputed liens against the Sea Vista property are estimated at
less than $6 million. As such, Debtor believes that creditors are
adequately protected by the value of the Sea Vista Property.
Based on the unresolved and pending status of the Debtor's leasing
efforts and negotiations toward consensual plan treatments, it is
premature for Debtor to file a plan and disclosure statement at
this time, Lewis R. Landau, counsel to the Debtor, explains. The
Debtor anticipates making progress on all these matters within the
next 60-days.
About World Systems
World Systems, Inc., is a privately held company in Calabasas,
California that is engaged in activities related to real estate.
World Systems sought Chapter 11 protection (Bankr. C.D. Cal. Case
No. 19-10282) on Feb. 6, 2019. In the petition signed by Iris
Martin, president, the Debtor estimated $1 million to $10 million
in both assets and liabilities. Lewis R. Landau, Esq., represents
the Debtor.
YCO TULSA: Court Approves N. Tomlins Appointment as Ch. 11 Trustee
------------------------------------------------------------------
After a review of the Application and the record filed by Ilene J.
Lashinsky, United States Trustee for Region 20, for Order Approving
Appointment of Chapter 11 Trustee, the Court granted the
appointment of Neal Tomlins as Trustee in the Chapter 11 case of
YCO Tulsa, Inc.
The Court authorized the appointment of a Chapter 11 trustee by
Order entered on September 4, 2019.
The U.S. Trustee has appointed Neal Tomlins of Tomlins Law, PLLC,
to serve as the Chapter 11 trustee and has set a bond in the amount
of $1,000,000.
Mr. Tomlins has agreed to participate in the background check
process required by the Office of the United States Trustee.
Mr. Tomlins has conducted a conflict check and reported to the U.S.
Trustee that to the best of his knowledge, he does not have any
connections with the Debtor and its creditors.
About YCO Tulsa Inc.
YCO Tulsa, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Okla. Case No. 19-11235) on June 14,
2019. In the petition signed by Robert Lobato, president, the
Debtor estimated assets of less than $50,000 and liabilities of
less than $50,000. The case is assigned to Judge Dana L. Rasure.
Brown Law Firm, P.C., and Riggs, Abney, Neal, Turpen, Orbison &
Lewis serve as the Debtor's legal counsel.
YIANNIS MEDITERRANEAN: Cash Collateral Use Continued Thru Oct. 16
-----------------------------------------------------------------
The Hon. Ann M. Nevins of the U.S. Bankruptcy Court for the
District of Connecticut authorizes Yiannis Mediterranean Cuisine
LLC to use cash collateral through and including Oct. 16, 2019.
The Court will continue to consider the Debtor's use of cash
collateral on Oct. 16, 2019 at 10:00 a.m.
Sachem Capital Corp., and the Internal Revenue Service are each
granted replacement and/or substitute liens in all post-petition
assets and proceeds thereof, having the same validity, extent, and
priority as liens they possessed on the petition date.
To the extent the adequate protection provided by replacement liens
proves to be inadequate and such inadequacy gives rise to a claim
allowable under Section 507(a)(2), Sachem and the IRS will be
entitled to a superior-priority administrative claim pursuant to
Section 503(b) and they will be entitled to the protections of and
priority set forth in 507(b).
About Yiannis Mediterranean
Yiannis Mediterranean Cuisine LLC is a limited liability company
that operates a restaurant serving fine mediterannean cuisine. It
filed its voluntary petition under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 19-31516) on Sept. 11,
2019, in New Haven, Connecticut. William E. Carter, Esq., is the
Debtor's counsel.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ABBVIE INC ABBV US 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC 4AB TE 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC ABBV AV 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC 4AB GZ 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC 4AB TH 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC ABBVEUR EU 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC 4AB QT 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC ABBVUSD EU 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC 4AB GR 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC ABBV SW 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC ABBV* MM 57,142.0 (8,566.0) (1,841.0)
ABBVIE INC-BDR ABBV34 BZ 57,142.0 (8,566.0) (1,841.0)
ABSOLUTE SOFTWRE ALSWF US 103.3 (50.6) (27.4)
ABSOLUTE SOFTWRE ABT CN 103.3 (50.6) (27.4)
ABSOLUTE SOFTWRE OU1 GR 103.3 (50.6) (27.4)
ABSOLUTE SOFTWRE ABT2EUR EU 103.3 (50.6) (27.4)
AGENUS INC AGENUSD EU 206.7 (134.7) 17.2
AIXIN LIFE INTER AIXN US 2.1 (3.2) (4.7)
AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2)
AMERICAN AIR-BDR AALL34 BZ 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE AAL TE 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE A1G SW 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE A1G GZ 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE AAL11EUR EU 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE AAL AV 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE A1G QT 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE AAL US 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE AAL* MM 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE A1G GR 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE AAL1USD EU 61,967.0 (22.0) (10,273.0)
AMERICAN AIRLINE A1G TH 61,967.0 (22.0) (10,273.0)
AMYRIS INC AMRS US 127.9 (211.8) (119.5)
AMYRIS INC 3A01 GR 127.9 (211.8) (119.5)
AMYRIS INC 3A01 TH 127.9 (211.8) (119.5)
AMYRIS INC AMRSUSD EU 127.9 (211.8) (119.5)
AMYRIS INC 3A01 QT 127.9 (211.8) (119.5)
AMYRIS INC AMRSEUR EU 127.9 (211.8) (119.5)
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BABCOCK & WILCOX BW US 772.0 (343.0) (218.5)
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BEYONDSPRING INC BYSI US 6.0 (18.1) (17.0)
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CADIZ INC CDZI US 77.5 (79.8) 16.7
CADIZ INC 2ZC GR 77.5 (79.8) 16.7
CASTLE BIOSCIENC CSTL US 33.3 (3.6) 16.8
CATASYS INC CATS US 16.1 (12.2) (0.5)
CATASYS INC HY1N GR 16.1 (12.2) (0.5)
CATASYS INC CATSEUR EU 16.1 (12.2) (0.5)
CDK GLOBAL INC C2G QT 2,999.0 (714.5) 149.2
CDK GLOBAL INC CDKUSD EU 2,999.0 (714.5) 149.2
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CHEWY INC- CL A CHWY US 813.9 (361.7) (407.9)
CHOICE HOTELS CZH GR 1,214.3 (122.7) (44.1)
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CINCINNATI BELL CBBEUR EU 2,655.7 (112.3) (111.3)
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COGENT COMMUNICA CCOI US 949.1 (176.6) 395.8
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COLGATE-PALMOLIV CPA TH 13,151.0 (10.0) 473.0
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CYTOKINETICS INC KK3A GR 198.2 (4.9) 163.0
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CYTOKINETICS INC CYTKEUR EU 198.2 (4.9) 163.0
DELEK LOGISTICS DKL US 769.3 (144.3) 2.3
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DENNY'S CORP DENN US 438.7 (142.6) (41.3)
DENNY'S CORP DENNEUR EU 438.7 (142.6) (41.3)
DENNY'S CORP DE8 GR 438.7 (142.6) (41.3)
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DINE BRANDS GLOB IHP GR 2,040.7 (215.1) 7.9
DOLLARAMA INC DOL CN 3,535.8 (106.0) 125.9
DOLLARAMA INC DR3 GR 3,535.8 (106.0) 125.9
DOLLARAMA INC DLMAF US 3,535.8 (106.0) 125.9
DOLLARAMA INC DR3 GZ 3,535.8 (106.0) 125.9
DOLLARAMA INC DOLEUR EU 3,535.8 (106.0) 125.9
DOLLARAMA INC DR3 QT 3,535.8 (106.0) 125.9
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DOMINO'S PIZZA EZV GR 1,177.2 (2,904.3) 230.5
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DOMO INC- CL B DOMOEUR EU 234.5 (4.9) 59.5
DOMO INC- CL B 1ON GZ 234.5 (4.9) 59.5
DOMO INC- CL B DOMOUSD EU 234.5 (4.9) 59.5
DOMO INC- CL B 1ON TH 234.5 (4.9) 59.5
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DOMO INC- CL B 1ON GR 234.5 (4.9) 59.5
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DYNATRACE INC DT US 1,775.6 (437.6) (748.4)
EMISPHERE TECH EMIS US 5.2 (155.3) (1.4)
ESCUE ENERGY INC ESCU US 0.0 (7.8) (3.1)
EVERI HOLDINGS I EVRI US 1,596.3 (84.4) 6.7
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EVERI HOLDINGS I EVRIUSD EU 1,596.3 (84.4) 6.7
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EXAGEN INC E08A GR 15.3 (7.1) (10.6)
EXAGEN INC XGNEUR EU 15.3 (7.1) (10.6)
EXAGEN INC XGN US 15.3 (7.1) (10.6)
FC GLOBAL REALTY FCRE IT 4.2 (0.6) (3.2)
FILO MINING CORP FIL SS 11.6 (9.2) (10.5)
FRONTDOOR IN FTDR US 1,179.0 (278.0) 52.0
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GOGO INC GOGO US 1,282.1 (363.6) 207.7
GOGO INC G0G TH 1,282.1 (363.6) 207.7
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GOGO INC G0G QT 1,282.1 (363.6) 207.7
GOOSEHEAD INSU-A GSHD US 38.1 (30.5) -
GOOSEHEAD INSU-A 2OX GR 38.1 (30.5) -
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GREENSKY INC-A GSKY US 840.9 (96.8) 247.4
HANGER INC HNGR US 780.8 (21.8) 92.3
HANGER INC HO8 GR 780.8 (21.8) 92.3
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HILTON WORLDWIDE HLT* MM 15,140.0 (23.0) (565.0)
HILTON WORLDWIDE HLTEUR EU 15,140.0 (23.0) (565.0)
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HOME DEPOT - BDR HOME34 BZ 52,010.0 (1,160.0) 1,901.0
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HP INC HPQ TE 32,405.0 (1,131.0) (4,896.0)
HP INC 7HP GR 32,405.0 (1,131.0) (4,896.0)
HP INC HPQ US 32,405.0 (1,131.0) (4,896.0)
HP INC 7HP TH 32,405.0 (1,131.0) (4,896.0)
HP INC HPQ* MM 32,405.0 (1,131.0) (4,896.0)
HP INC 0J2E LI 32,405.0 (1,131.0) (4,896.0)
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HP INC HPQEUR EU 32,405.0 (1,131.0) (4,896.0)
HP INC 7HP GZ 32,405.0 (1,131.0) (4,896.0)
HP INC HPQ AV 32,405.0 (1,131.0) (4,896.0)
HP INC HWP QT 32,405.0 (1,131.0) (4,896.0)
HP INC HPQUSD EU 32,405.0 (1,131.0) (4,896.0)
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IAA INC IAA US 2,010.3 (228.9) 155.5
IAA INC 3NI GR 2,010.3 (228.9) 155.5
IAA INC IAA-WEUR EU 2,010.3 (228.9) 155.5
IMMUNOGEN INC IMGNUSD EU 287.7 (68.2) 184.8
IMMUNOGEN INC IMGN* MM 287.7 (68.2) 184.8
INSEEGO CORP INO TH 164.7 (37.3) (117.3)
INSEEGO CORP INO QT 164.7 (37.3) (117.3)
INSEEGO CORP INSGUSD EU 164.7 (37.3) (117.3)
INSEEGO CORP INSG US 164.7 (37.3) (117.3)
INSEEGO CORP INO GR 164.7 (37.3) (117.3)
INSEEGO CORP INSGEUR EU 164.7 (37.3) (117.3)
INSEEGO CORP INO GZ 164.7 (37.3) (117.3)
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IRONWOOD PHARMAC I76 GR 315.7 (219.4) 110.1
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IRONWOOD PHARMAC IRWD US 315.7 (219.4) 110.1
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ISRAMCO INC IRM GR 106.7 (2.0) (7.3)
ISRAMCO INC ISRL US 106.7 (2.0) (7.3)
ISRAMCO INC ISRLEUR EU 106.7 (2.0) (7.3)
JACK IN THE BOX JBX GR 831.3 (580.6) (112.9)
JACK IN THE BOX JACK US 831.3 (580.6) (112.9)
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JACK IN THE BOX JBX QT 831.3 (580.6) (112.9)
JACK IN THE BOX JACK1EUR EU 831.3 (580.6) (112.9)
JUST ENERGY GROU JE CN 1,536.8 (381.2) (58.0)
L BRANDS INC LTD GR 10,618.0 (929.0) 437.0
L BRANDS INC LB US 10,618.0 (929.0) 437.0
L BRANDS INC LTD TH 10,618.0 (929.0) 437.0
L BRANDS INC LBUSD EU 10,618.0 (929.0) 437.0
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L BRANDS INC LBEUR EU 10,618.0 (929.0) 437.0
L BRANDS INC LB* MM 10,618.0 (929.0) 437.0
L BRANDS INC LTD QT 10,618.0 (929.0) 437.0
L BRANDS INC-BDR LBRN34 BZ 10,618.0 (929.0) 437.0
LA JOLLA PHARM LJPC US 169.9 (12.6) 110.4
LA JOLLA PHARM LJPP GR 169.9 (12.6) 110.4
LENNOX INTL INC LXI GR 2,340.4 (217.5) 368.9
LENNOX INTL INC LII US 2,340.4 (217.5) 368.9
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LENNOX INTL INC LII1EUR EU 2,340.4 (217.5) 368.9
LEXICON PHARMACE LXRX US 233.1 (64.9) 100.0
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LEXICON PHARMACE LX31 QT 233.1 (64.9) 100.0
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MARTIN MIDSTREAM MMLP US 700.5 (37.1) 88.5
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MARTIN MIDSTREAM MPB GR 700.5 (37.1) 88.5
MARTIN MIDSTREAM MPB TH 700.5 (37.1) 88.5
MCDONALDS - BDR MCDC34 BZ 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MDO TH 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCD SW 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCD US 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MDO GR 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCD* MM 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCD TE 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCDUSD SW 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCDEUR EU 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MDO GZ 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCD AV 46,199.8 (6,808.8) 675.4
MCDONALDS CORP 0R16 LI 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MDO QT 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCDUSD EU 46,199.8 (6,808.8) 675.4
MCDONALDS CORP MCD CI 46,199.8 (6,808.8) 675.4
MCDONALDS-CEDEAR MCDD AR 46,199.8 (6,808.8) 675.4
MCDONALDS-CEDEAR MCD AR 46,199.8 (6,808.8) 675.4
MERCER PARK BR-A MRCQF US 407.1 (18.8) 4.1
MERCER PARK BR-A BRND/A/U CN 407.1 (18.8) 4.1
MICHAELS COS INC MIKEUR EU 3,707.1 (1,587.6) 289.9
MICHAELS COS INC MIK US 3,707.1 (1,587.6) 289.9
MICHAELS COS INC MIM GR 3,707.1 (1,587.6) 289.9
MONEYGRAM INTERN MGI US 4,383.6 (236.7) (129.5)
MONEYGRAM INTERN 9M1N GR 4,383.6 (236.7) (129.5)
MONEYGRAM INTERN MGIUSD EU 4,383.6 (236.7) (129.5)
MONEYGRAM INTERN 9M1N TH 4,383.6 (236.7) (129.5)
MONEYGRAM INTERN MGIEUR EU 4,383.6 (236.7) (129.5)
MONEYGRAM INTERN 9M1N QT 4,383.6 (236.7) (129.5)
MONITRONICS INTL SCTY US 1,705.3 (202.9) (25.0)
MOTOROLA SOL-CED MSI AR 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MTLA GR 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MOT TE 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MSI US 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MTLA TH 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MSI1USD EU 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MSI1EUR EU 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MTLA GZ 9,974.0 (954.0) 955.0
MOTOROLA SOLUTIO MTLA QT 9,974.0 (954.0) 955.0
MSCI INC 3HM GR 3,425.1 (231.8) 556.1
MSCI INC MSCI US 3,425.1 (231.8) 556.1
MSCI INC 3HM QT 3,425.1 (231.8) 556.1
MSCI INC MSCI* MM 3,425.1 (231.8) 556.1
MSG NETWORKS- A MSGN US 866.9 (458.8) 216.9
MSG NETWORKS- A MSGNEUR EU 866.9 (458.8) 216.9
MSG NETWORKS- A 1M4 QT 866.9 (458.8) 216.9
MSG NETWORKS- A 1M4 TH 866.9 (458.8) 216.9
MSG NETWORKS- A 1M4 GR 866.9 (458.8) 216.9
N/A BJEUR EU 5,152.1 (164.6) (345.8)
NATHANS FAMOUS NATH US 105.0 (65.1) 76.5
NATHANS FAMOUS NFA GR 105.0 (65.1) 76.5
NATHANS FAMOUS NATHEUR EU 105.0 (65.1) 76.5
NATIONAL CINEMED NCMI US 1,104.0 (110.5) 99.8
NATIONAL CINEMED XWM GR 1,104.0 (110.5) 99.8
NATIONAL CINEMED NCMIEUR EU 1,104.0 (110.5) 99.8
NAVISTAR INTL IHR TH 7,294.0 (3,660.0) 1,521.0
NAVISTAR INTL NAV US 7,294.0 (3,660.0) 1,521.0
NAVISTAR INTL IHR GR 7,294.0 (3,660.0) 1,521.0
NAVISTAR INTL NAVEUR EU 7,294.0 (3,660.0) 1,521.0
NAVISTAR INTL NAVUSD EU 7,294.0 (3,660.0) 1,521.0
NAVISTAR INTL IHR QT 7,294.0 (3,660.0) 1,521.0
NAVISTAR INTL IHR GZ 7,294.0 (3,660.0) 1,521.0
NEW ENG RLTY-LP NEN US 244.5 (38.0) -
NOTOX TECHNOLOGI NTOX US 0.7 (1.5) (2.0)
NRC GROUP HOLDIN NRCG US 421.3 (42.4) 23.1
NRG ENERGY NRA TH 9,171.0 (1,629.0) 751.0
NRG ENERGY NRG US 9,171.0 (1,629.0) 751.0
NRG ENERGY NRA GR 9,171.0 (1,629.0) 751.0
NRG ENERGY NRGEUR EU 9,171.0 (1,629.0) 751.0
NRG ENERGY NRA QT 9,171.0 (1,629.0) 751.0
OMEROS CORP OMER US 89.8 (130.3) 25.3
OMEROS CORP 3O8 GR 89.8 (130.3) 25.3
OMEROS CORP OMERUSD EU 89.8 (130.3) 25.3
OMEROS CORP 3O8 TH 89.8 (130.3) 25.3
OMEROS CORP OMEREUR EU 89.8 (130.3) 25.3
OPTION CARE HEAL BIOS US 600.6 (75.2) 61.5
OPTION CARE HEAL BIOSUSD EU 600.6 (75.2) 61.5
OPTIVA INC RE6 GR 123.6 (21.4) 26.2
OPTIVA INC OPT CN 123.6 (21.4) 26.2
OPTIVA INC RKNEF US 123.6 (21.4) 26.2
OPTIVA INC RKNEUR EU 123.6 (21.4) 26.2
OPTIVA INC 3230510Q EU 123.6 (21.4) 26.2
PAPA JOHN'S INTL PP1 GR 726.6 (60.6) (17.4)
PAPA JOHN'S INTL PZZA US 726.6 (60.6) (17.4)
PAPA JOHN'S INTL PZZAEUR EU 726.6 (60.6) (17.4)
PAPA JOHN'S INTL PP1 GZ 726.6 (60.6) (17.4)
PARATEK PHARMACE PRTKUSD EU 276.6 (13.7) 246.6
PHILIP MORRI-BDR PHMO34 BZ 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PM1 EU 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN 4I1 GR 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PM US 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PM1CHF EU 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN 4I1 TH 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PM1 TE 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PM1EUR EU 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PMI SW 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN 0M8V LI 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PMOR AV 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN 4I1 GZ 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PMIZ EB 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PMIZ IX 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN PM* MM 39,923.0 (9,409.0) (883.0)
PHILIP MORRIS IN 4I1 QT 39,923.0 (9,409.0) (883.0)
PLANET FITNESS-A PLNT1USD EU 1,523.5 (314.4) 298.7
PLANET FITNESS-A PLNT1EUR EU 1,523.5 (314.4) 298.7
PLANET FITNESS-A 3PL QT 1,523.5 (314.4) 298.7
PLANET FITNESS-A PLNT US 1,523.5 (314.4) 298.7
PLANET FITNESS-A 3PL TH 1,523.5 (314.4) 298.7
PLANET FITNESS-A 3PL GR 1,523.5 (314.4) 298.7
PRIORITY TECHNOL PRTH US 460.3 (100.6) 2.5
PURPLE INNOVATIO PRPL US 99.7 (3.4) 17.7
QUANTUM CORP QNT2 GR 172.1 (202.5) (27.1)
QUANTUM CORP QMCO US 172.1 (202.5) (27.1)
QUANTUM CORP QTM1EUR EU 172.1 (202.5) (27.1)
RADIUS HEALTH IN RDUS US 244.3 (0.1) 175.1
RADIUS HEALTH IN RDUSUSD EU 244.3 (0.1) 175.1
RADIUS HEALTH IN 1R8 TH 244.3 (0.1) 175.1
RADIUS HEALTH IN RDUSEUR EU 244.3 (0.1) 175.1
RADIUS HEALTH IN 1R8 QT 244.3 (0.1) 175.1
RADIUS HEALTH IN 1R8 GR 244.3 (0.1) 175.1
REATA PHARMACE-A 2R3 GR 300.5 (33.5) 219.5
REATA PHARMACE-A RETAEUR EU 300.5 (33.5) 219.5
REATA PHARMACE-A RETA US 300.5 (33.5) 219.5
RECRO PHARMA INC REPH US 161.8 (18.7) 65.0
RECRO PHARMA INC RAH GR 161.8 (18.7) 65.0
REVLON INC-A RVL1 GR 3,066.0 (1,187.2) (33.9)
REVLON INC-A REV US 3,066.0 (1,187.2) (33.9)
REVLON INC-A REVUSD EU 3,066.0 (1,187.2) (33.9)
REVLON INC-A RVL1 TH 3,066.0 (1,187.2) (33.9)
REVLON INC-A REVEUR EU 3,066.0 (1,187.2) (33.9)
RH RH US 2,387.8 (177.9) (267.3)
RH RHEUR EU 2,387.8 (177.9) (267.3)
RH RH* MM 2,387.8 (177.9) (267.3)
RH RS1 GR 2,387.8 (177.9) (267.3)
RIMINI STREET IN RMNI US 139.7 (130.2) (104.8)
ROSETTA STONE IN RST US 181.5 (9.4) (71.2)
ROSETTA STONE IN RS8 GR 181.5 (9.4) (71.2)
ROSETTA STONE IN RS8 TH 181.5 (9.4) (71.2)
ROSETTA STONE IN RST1EUR EU 181.5 (9.4) (71.2)
RR DONNELLEY & S DLLN TH 3,561.4 (270.8) 588.2
RR DONNELLEY & S RRDUSD EU 3,561.4 (270.8) 588.2
RR DONNELLEY & S RRDEUR EU 3,561.4 (270.8) 588.2
RR DONNELLEY & S DLLN GR 3,561.4 (270.8) 588.2
RR DONNELLEY & S RRD US 3,561.4 (270.8) 588.2
SALLY BEAUTY HOL S7V GR 2,072.3 (70.5) 719.4
SALLY BEAUTY HOL SBH US 2,072.3 (70.5) 719.4
SALLY BEAUTY HOL SBHEUR EU 2,072.3 (70.5) 719.4
SBA COMM CORP SBACUSD EU 9,269.4 (3,339.3) (1,112.4)
SBA COMM CORP 4SB GZ 9,269.4 (3,339.3) (1,112.4)
SBA COMM CORP 4SB GR 9,269.4 (3,339.3) (1,112.4)
SBA COMM CORP SBAC US 9,269.4 (3,339.3) (1,112.4)
SBA COMM CORP SBAC* MM 9,269.4 (3,339.3) (1,112.4)
SBA COMM CORP SBACEUR EU 9,269.4 (3,339.3) (1,112.4)
SBA COMM CORP SBJ TH 9,269.4 (3,339.3) (1,112.4)
SCIENTIFIC GAMES TJW GZ 7,932.0 (2,118.0) 852.0
SCIENTIFIC GAMES SGMS US 7,932.0 (2,118.0) 852.0
SCIENTIFIC GAMES SGMSUSD EU 7,932.0 (2,118.0) 852.0
SCIENTIFIC GAMES TJW GR 7,932.0 (2,118.0) 852.0
SCIENTIFIC GAMES TJW TH 7,932.0 (2,118.0) 852.0
SEALED AIR CORP SEE US 5,216.5 (341.2) (10.8)
SEALED AIR CORP SDA GR 5,216.5 (341.2) (10.8)
SEALED AIR CORP SEE1EUR EU 5,216.5 (341.2) (10.8)
SEALED AIR CORP SDA TH 5,216.5 (341.2) (10.8)
SEALED AIR CORP SDA QT 5,216.5 (341.2) (10.8)
SERES THERAPEUTI MCRB US 146.1 (18.0) 65.9
SHELL MIDSTREAM SHLXUSD EU 2,004.0 (767.0) 279.0
SHELL MIDSTREAM 49M GR 2,004.0 (767.0) 279.0
SHELL MIDSTREAM 49M TH 2,004.0 (767.0) 279.0
SHELL MIDSTREAM SHLX US 2,004.0 (767.0) 279.0
SIRIUS XM HO-BDR SRXM34 BZ 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN SIRI US 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN RDO GR 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN RDO TH 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN SIRIUSD EU 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN SIRI TE 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN SIRIEUR EU 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN RDO GZ 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN SIRI AV 11,316.0 (489.0) (2,182.0)
SIRIUS XM HOLDIN RDO QT 11,316.0 (489.0) (2,182.0)
SIX FLAGS ENTERT 6FE GR 2,938.1 (204.4) (66.6)
SIX FLAGS ENTERT SIXEUR EU 2,938.1 (204.4) (66.6)
SIX FLAGS ENTERT SIXUSD EU 2,938.1 (204.4) (66.6)
SIX FLAGS ENTERT SIX US 2,938.1 (204.4) (66.6)
SLEEP NUMBER COR SL2 GR 795.9 (157.3) (433.9)
SLEEP NUMBER COR SNBR US 795.9 (157.3) (433.9)
SLEEP NUMBER COR SNBREUR EU 795.9 (157.3) (433.9)
SPIRIT MTA REIT SMTA US 2,012.7 (24.6) -
STARBUCKS CORP SBUX* MM 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SRB GR 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SRB TH 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUX TE 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUXEUR EU 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUX IM 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUXUSD SW 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUXUSD EU 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SRB GZ 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUX AV 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUX US 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP 0QZH LI 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SRB QT 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUX SW 20,894.4 (4,319.0) 1,839.0
STARBUCKS CORP SBUX CI 20,894.4 (4,319.0) 1,839.0
STARBUCKS-BDR SBUB34 BZ 20,894.4 (4,319.0) 1,839.0
STARBUCKS-CEDEAR SBUX AR 20,894.4 (4,319.0) 1,839.0
STEALTH BIOTHERA S1BA GR 15.5 (175.3) (27.3)
STEALTH BIOTHERA MITO US 15.5 (175.3) (27.3)
SUNDIAL GROWERS SNDL US 369.2 23.5 44.3
SUNDIAL GROWERS 14K GR 369.2 23.5 44.3
SUNDIAL GROWERS 14K TH 369.2 23.5 44.3
SUNDIAL GROWERS SNDLEUR EU 369.2 23.5 44.3
SUNDIAL GROWERS SNDLUSD EU 369.2 23.5 44.3
SUNDIAL GROWERS 14K GZ 369.2 23.5 44.3
SUNDIAL GROWERS 14K QT 369.2 23.5 44.3
SUNPOWER CORP S9P2 TH 1,938.9 (96.6) 240.6
SUNPOWER CORP SPWR US 1,938.9 (96.6) 240.6
SUNPOWER CORP S9P2 GR 1,938.9 (96.6) 240.6
SUNPOWER CORP SPWREUR EU 1,938.9 (96.6) 240.6
SUNPOWER CORP SPWRUSD EU 1,938.9 (96.6) 240.6
SUNPOWER CORP S9P2 GZ 1,938.9 (96.6) 240.6
SUNPOWER CORP S9P2 QT 1,938.9 (96.6) 240.6
SWITCHBACK ENE-A SBE US 0.4 (0.0) (0.3)
SWITCHBACK ENERG SBE/U US 0.4 (0.0) (0.3)
TAUBMAN CENTERS TCO US 4,485.1 (324.0) -
TAUBMAN CENTERS TU8 GR 4,485.1 (324.0) -
THUNDER BRIDGE A THBRU US 0.2 (0.0) (0.2)
THUNDER BRIDGE-A THBR US 0.2 (0.0) (0.2)
TRANSDIGM GROUP TDG US 17,702.6 (1,310.6) 4,030.6
TRANSDIGM GROUP T7D GR 17,702.6 (1,310.6) 4,030.6
TRANSDIGM GROUP TDG* MM 17,702.6 (1,310.6) 4,030.6
TRANSDIGM GROUP T7D TH 17,702.6 (1,310.6) 4,030.6
TRANSDIGM GROUP T7D QT 17,702.6 (1,310.6) 4,030.6
TRANSDIGM GROUP TDGEUR EU 17,702.6 (1,310.6) 4,030.6
TRIUMPH GROUP TG7 GR 2,823.3 (557.9) 208.3
TRIUMPH GROUP TGI US 2,823.3 (557.9) 208.3
TRIUMPH GROUP TGIUSD EU 2,823.3 (557.9) 208.3
TRIUMPH GROUP TGIEUR EU 2,823.3 (557.9) 208.3
TUPPERWARE BRAND TUP US 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP GR 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP SW 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP TH 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP1EUR EU 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP1USD EU 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP GZ 1,428.5 (163.1) (110.8)
TUPPERWARE BRAND TUP QT 1,428.5 (163.1) (110.8)
UNISYS CORP UISEUR EU 2,507.8 (1,213.7) 334.1
UNISYS CORP UISCHF EU 2,507.8 (1,213.7) 334.1
UNISYS CORP UIS EU 2,507.8 (1,213.7) 334.1
UNISYS CORP USY1 TH 2,507.8 (1,213.7) 334.1
UNISYS CORP USY1 GR 2,507.8 (1,213.7) 334.1
UNISYS CORP UIS US 2,507.8 (1,213.7) 334.1
UNISYS CORP UIS1 SW 2,507.8 (1,213.7) 334.1
UNISYS CORP USY1 GZ 2,507.8 (1,213.7) 334.1
UNISYS CORP USY1 QT 2,507.8 (1,213.7) 334.1
UNITI GROUP INC CSALUSD EU 4,790.4 (1,401.8) -
UNITI GROUP INC 8XC GR 4,790.4 (1,401.8) -
UNITI GROUP INC 8XC TH 4,790.4 (1,401.8) -
UNITI GROUP INC UNIT US 4,790.4 (1,401.8) -
VALVOLINE INC VVVUSD EU 2,000.0 (252.0) 389.0
VALVOLINE INC 0V4 GR 2,000.0 (252.0) 389.0
VALVOLINE INC 0V4 TH 2,000.0 (252.0) 389.0
VALVOLINE INC VVVEUR EU 2,000.0 (252.0) 389.0
VALVOLINE INC 0V4 QT 2,000.0 (252.0) 389.0
VALVOLINE INC VVV US 2,000.0 (252.0) 389.0
VECTOR GROUP LTD VGR US 1,455.2 (606.7) 80.4
VECTOR GROUP LTD VGR GR 1,455.2 (606.7) 80.4
VECTOR GROUP LTD VGREUR EU 1,455.2 (606.7) 80.4
VECTOR GROUP LTD VGRUSD EU 1,455.2 (606.7) 80.4
VECTOR GROUP LTD VGR TH 1,455.2 (606.7) 80.4
VECTOR GROUP LTD VGR QT 1,455.2 (606.7) 80.4
VERISIGN INC VRS TH 1,889.9 (1,425.2) 360.7
VERISIGN INC VRS GR 1,889.9 (1,425.2) 360.7
VERISIGN INC VRSN US 1,889.9 (1,425.2) 360.7
VERISIGN INC VRS SW 1,889.9 (1,425.2) 360.7
VERISIGN INC VRSN* MM 1,889.9 (1,425.2) 360.7
VERISIGN INC VRSNUSD EU 1,889.9 (1,425.2) 360.7
VERISIGN INC VRSNEUR EU 1,889.9 (1,425.2) 360.7
VERISIGN INC VRS GZ 1,889.9 (1,425.2) 360.7
VERISIGN INC VRS QT 1,889.9 (1,425.2) 360.7
VERISIGN INC-BDR VRSN34 BZ 1,889.9 (1,425.2) 360.7
W&T OFFSHORE INC UWV GR 867.8 (335.0) 43.5
W&T OFFSHORE INC WTI US 867.8 (335.0) 43.5
W&T OFFSHORE INC UWV SW 867.8 (335.0) 43.5
W&T OFFSHORE INC WTI1EUR EU 867.8 (335.0) 43.5
W&T OFFSHORE INC WTI1USD EU 867.8 (335.0) 43.5
W&T OFFSHORE INC UWV TH 867.8 (335.0) 43.5
WAYFAIR INC- A W US 2,182.1 (605.4) (276.6)
WAYFAIR INC- A 1WF QT 2,182.1 (605.4) (276.6)
WAYFAIR INC- A 1WF GR 2,182.1 (605.4) (276.6)
WAYFAIR INC- A WEUR EU 2,182.1 (605.4) (276.6)
WIDEOPENWEST INC WU5 TH 2,458.9 (280.8) (108.7)
WIDEOPENWEST INC WU5 GR 2,458.9 (280.8) (108.7)
WIDEOPENWEST INC WOW1EUR EU 2,458.9 (280.8) (108.7)
WIDEOPENWEST INC WU5 QT 2,458.9 (280.8) (108.7)
WIDEOPENWEST INC WOW US 2,458.9 (280.8) (108.7)
WINGSTOP INC WING1EUR EU 150.0 (216.4) 9.6
WINGSTOP INC WING US 150.0 (216.4) 9.6
WINGSTOP INC EWG GR 150.0 (216.4) 9.6
WINMARK CORP WINA US 46.2 (13.8) 9.1
WINMARK CORP GBZ GR 46.2 (13.8) 9.1
WORKHORSE GROUP WKHSEUR EU 35.7 (45.0) (26.2)
WORKHORSE GROUP WKHSUSD EU 35.7 (45.0) (26.2)
WORKHORSE GROUP WKHS US 35.7 (45.0) (26.2)
WORKHORSE GROUP 1WO GR 35.7 (45.0) (26.2)
WORKHORSE GROUP 1WO TH 35.7 (45.0) (26.2)
WORKHORSE GROUP 1WO GZ 35.7 (45.0) (26.2)
WW INTERNATIONAL WW US 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WW6 GR 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WTWUSD EU 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WW6 GZ 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WTW AV 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WTWEUR EU 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WW6 QT 1,476.3 (766.4) (66.1)
WW INTERNATIONAL WW6 TH 1,476.3 (766.4) (66.1)
WYNDHAM DESTINAT WYND US 7,466.0 (560.0) 335.0
WYNDHAM DESTINAT WD5 GR 7,466.0 (560.0) 335.0
WYNDHAM DESTINAT WD5 TH 7,466.0 (560.0) 335.0
WYNDHAM DESTINAT WYNUSD EU 7,466.0 (560.0) 335.0
WYNDHAM DESTINAT WYNEUR EU 7,466.0 (560.0) 335.0
WYNDHAM DESTINAT WD5 QT 7,466.0 (560.0) 335.0
YELLOW PAGES LTD YMI GR 334.0 (94.9) 40.9
YELLOW PAGES LTD YEUR EU 334.0 (94.9) 40.9
YELLOW PAGES LTD Y CN 334.0 (94.9) 40.9
YELLOW PAGES LTD YLWDF US 334.0 (94.9) 40.9
YUM! BRANDS -BDR YUMR34 BZ 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC TGR TH 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC TGR GR 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC YUM* MM 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC YUMUSD SW 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC TGR GZ 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC YUM US 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC YUM AV 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC TGR TE 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC YUMEUR EU 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC TGR QT 4,674.0 (7,994.0) (64.0)
YUM! BRANDS INC YUM SW 4,674.0 (7,994.0) (64.0)
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2019. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***