/raid1/www/Hosts/bankrupt/TCR_Public/200122.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, January 22, 2020, Vol. 24, No. 21
Headlines
01 BH PARTNERSHIP: Disclosure Hearing Continued to March 10, 2020
160 ROYAL PALM: KK-PB Says Post-Closing Agreement Unauthorized
160 ROYAL PALM: Seeks OK of 3rd Amended Plan Without Resolicitation
ADT INC: S&P Rates $1.3BB Second-Lien Notes 'B-'
AGGRESSIVELY ORGANIC: U.S. Trustee Unable to Appoint Committee
ALLIANCE DATA: Egan-Jones Lowers Senior Unsecured Ratings to B+
AMBOY GROUP: Feb. 4, 2020 Plan Confirmation Hearing Set
ANDES INDUSTRIES: Seeks to Hire LKW Consulting as Financial Advisor
ARABIE TRUCKING: $133K Sale of Trucks & Equipment Approved
ARCACHON PARTNERS: Unsecureds to Get 100% After New Financing
ARCHBISHOP OF AGANA: $5.7M Accion Hotel Sale to TF Investments OK'd
AVENTIV TECHNOLOGIES: S&P Alters Outlook to Neg., Affirms B- ICR
BAHIA DEL SOL: Cayman Given Extension to Reply to Property Sale
BENBOW VALLEY: Gets Court Approval to Employ CRO
BETTEROADS ASPHALT: Lenders Resolve Fund Dispute with Sureties
BHAKTEL LLC: U.S. Trustee Unable to Appoint Committee
BLUE DIAMOND: To Sell Ranson Property as Part of Plan
BOMBARDIER INC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
BUFORD ELECTRIC: Unsec. Creditors to Recover 10% in 5 Years
C AND N TRANSPORT: Case Summary & 20 Largest Unsecured Creditors
CACHET FINANCIAL: Case Summary & 21 Largest Unsecured Creditors
CALFRAC WELL: S&P Cuts ICR to 'CCC+' on Deteriorating Liquidity
CANNABICS PHARMACEUTICALS: Has $5.1M Net Loss for Nov. 30 Quarter
CANTRELL DRUG: Brown Buying All Asserts for $3.3 Million
CANTRELL DRUG: Brown Buying All Asserts for $3.3 Million
CARDINAL HOMES: Court Grants Final Nod on Cash Collateral Motion
CARDINAL HOMES: Newtek Objects to DIP Motion
CELADON GROUP: Jan. 22 Auction of All Assets of Taylor Set
CELADON GROUP: Jan. 22 Auction of All Remaining Assets Set
CENTRO GROUP: Seeks to Hire Pavento Ratcliffe as Accountant
CHESAPEAKE ENERGY: S&P Upgrades ICR To 'CCC' Post Exchanges
COLLASPE IMPOSSIBLE: Proposes Sale of Lakewood Property
CORFISH CREATIVE: Unsecureds to Get What's Left of Sale Proceeds
CR COMMERCIAL: Unsecureds Cut to $1.3M, To Be Paid for 89 Months
D J HARCEG TRUCKING: Case Summary & 20 Largest Unsecured Creditors
DANCEL LLC: May Continue Using Cash Collateral Through March 31
DEALER TIRE: S&P Cuts ICR to 'B-' on Dent Wizard Acquisition
DO@KING PLOW ARTS: Seeks to Hire Rountree Leitman as Legal Counsel
DUNDEE PIKCO: Chapter 15 Case Summary
E.O.S. RENTALS: Seeks to Hire Ritchie Bros. as Auctioneer
EASTERN UNIVERSITY: S&P Lowers 2012 Revenue Bond Rating to 'BB'
ED3 CONSULTANTS: Seeks to Hire Love Scherle as Accountant
ELAS LLC: Feb. 6, 2020 Plan Confirmation Hearing Set
ELITE EQUIPMENT: Seeks to Hire Eric A. Liepins as Legal Counsel
EQT CORP: Egan-Jones Lowers Senior Unsecured Rating to BB+
EQUINOX HOLDINGS: S&P Downgrades ICR to 'B-' on Elevated Leverage
FANSTEEL INC: Deadline to Submit Offers for Property Feb. 12
FAVALORA PROPERTIES: Court Confirms Reorganization Plan
FENER LLC: Case Summary & 4 Unsecured Creditors
FORESTAR GROUP: S&P Raises Unsecured Notes Rating to 'B+'
GARDEN STATE: Court Agrees PCO Is Not Necessary
GREATER APOSTOLIC: $3.3M Sale of 3 Parcels Conditionally Approved
GREEN GLOBAL: To Seek Plan Confirmation on Jan. 30
GREEN VISION: Reports $201K Net Loss for June 30, 2018 Quarter
H.R.P. II: $1.2M Sale of Hammond Property to Transport Approved
HARB PROPERTIES: Unsecureds be Paid 1.2% Under Plan
HERITAGE HOTEL: St. Petersburg Property Sale to E2 Capital Approved
HINES POINT: Feb. 4 Hearing on Disclosure Statement Set
IMPERIAL TOY: $13 Million Sale of All Assets to Ja-Ru Approved
INNOPHOS HOLDINGS: S&P Assigns 'B' ICR on One Rock Acquisition
INTERNATIONAL ORGANIZATION: Chapter 15 Case Summary
JAMES CANDY: $15K Sale of Candy-Making Equipment to D&M Approved
JIM'S DISPOSAL: Seeks to Hire Conroy Baran as Legal Counsel
JIT INDUSTRIES: Jan. 27 Hearing on Plan & Disclosures Set
JOHNSON'S QUALITY: U.S. Trustee Unable to Appoint Committee
KEVIN E. RHOADS, JR: $750K Sale of Whitehall Property Approved
KINGMAN FARMS: To Seek Plan Confirmation April 1
KRS GLOBAL: Seeks to Hire Markarian & Hayes as Legal Counsel
KURU INC: Case Summary & 7 Unsecured Creditors
LACONIA LLC: Unsecureds to be Paid in Full in Sale Plan
LAKESHORE FARMS: Frontier Has Limited Objection to Plan & Outline
LASALLE GROUP: PCO Says Further Visits at 2 Sites Unecessary
LE JARDIN HOUSE: Exclusive Solicitation Period Extended to March 7
LIGHTHOUSE HOSPITALITY: Cash Collateral Use Continued Thru Feb. 29
MARSHAL BROADCASTING: Hires Boies Schiller as Special Counsel
MARSHALL BROADCASTING: Seeks Court Approval to Hire Special Counsel
MAXIMUM ELITE: Seeks to Hire Eric A. Liepins as Legal Counsel
MEG ENERGY: S&P Rates New US$800MM Senior Unsecured Notes 'BB-'
MICHAEL HANCOCK: $76K Sale of Petal Property to Hancock Approved
MICHAEL HANCOCK: $80K Sale of Petal Property to Chidress Approved
MILLERS LANE: Exclusivity Period Extended Until March 30
MLAC CASTLE ATLANTA: Taps Jones Lang Lasalle as Real Estate Broker
MLW LLC: Exclusivity Period Extended to Feb. 10
MODERN POULTRY: Liquidation of Assets to Pay Off Claims
MOHAJER12 CORP: May Continue Using Cash Collateral Until Jan. 31
MOTHERS TOUCH: To Seek Plan Confirmation Feb. 12
MOTIV8 INVESTMENTS: Case Summary & 2 Unsecured Creditors
MY KIDZ DENTIST: U.S. Trustee Unable to Appoint Committee
NATIONAL RADIOLOGY: $50K Sale of Accounts Receivables Approved
NEW BEGINNERS: Court Approves Disclosure Statement
NEW PHOENIX: May Obtain $50,000 DIP Loan on Final Basis
OLD DOMINION: Seeks to Hire McDowell Rice as Legal Counsel
ORANGE COUNTY: Saddozai Proceeds May Result in 100% Plan
PADDOCK ENTERPRISES: U.S. Trustee Forms 9-Member Committee
PAE HOLDING: S&P Alters Outlook to Positive, Affirms 'B' ICR
PATRIOT SCIENTIFIC: Incurs $513K Net Loss for Nov. 30 Quarter
PETROSHARE CORP: Unsecureds to Recover 6.9% in Plan
PHIO PHARMACEUTICALS: Effects 1-for-55 Reverse Stock Split
PHYTO-PLUS INC: Judge Authorizes Use of Cash Collateral
PONCE REAL ESTATE: 7-Day Extension for Amended Disclosures Okayed
PRIDE TRUCK WASH: Case Summary & 20 Largest Unsecured Creditors
PROFESSIONAL RESOURCES: Taps DiRecManagement as Collection Agent
QUALITY REIMBURSEMENT: Hires Foley & Lardner as Special Counsel
QUALITY REIMBURSEMENT: Hires Honigman LLP as Special Counsel
REAVANS LAKE AVENUE:Cash Motion Denied, Ch. 11 Case to be Dismissed
RESOURCE PROVIDERS: Seeks to Hire Buddy D. Ford as Legal Counsel
RIVER ROAD ICE: GCMAC Objects to Cash Collateral Motion
RIVER ROAD ICE: Seeks Court Permission to Use Cash Collateral
RIVER ROAD ICE: U.S. Trustee Unable to Appoint Committee
RQW - REAL ESTATE: Seeks to Hire Crane Simon as Bankruptcy Counsel
RRNB 8400: U.S. Trustee Unable to Appoint Committee
RYDER CONTRACTING: To Seek Plan Confirmation Feb. 5
S C BHAIRAB INC: Seeks to Hire Garrett Business as Business Broker
SAN LUIS & RIO: Trustee Taps Development Specialists as Accountant
SANA INDUSTRIES: Feb. 20, 2020 Plan & Disclosure Hearing Set
SILVER STATE: Files Liquidation Plan; TUFTA Action Ongoing
SIMPLICITY ESPORTS: Accumulated Deficit Casts Going Concern Doubt
SOUTH COAST: Patient Care Ombudsman Files 4th Report
SOUTH PHARMACY: Seeks to Hire Thomas Denny as Legal Counsel
SPHERIX INCORPORATED: CBM BioPharma Has 40.2% Stake as of Dec. 5
SRC ENERGY: S&P Raises ICR to 'BB'; Rating Withdrawn on PDC Deal
SUN-ONE LLC: Voluntary Chapter 11 Case Summary
SUNYEAH GROUP: Seeks to Hire Levene Neale as Bankruptcy Counsel
SVC: Feb. 26 Hearing on Sullivans' Plan Set
SWINGING TAIL: Seeks to Hire Country Boys Auction as Auctioneer
THOC, PA: Court Grants Access to IRS Cash Collateral
THOC, PA: Seeks Court Permission to Use Cash Collateral
TITUS INDUSTRIAL: Allowed to Use IRS Cash Collateral Until April 30
TMS CONTRACTORS: Jan. 30 Disclosure Statement Hearing Set
TMSC PROPERTIES: Jan. 30 Hearing on Disc. Statement Set
TOTAL HEALTH: PCO Says No Malpractice Claims Since 2012
TRI-CORE PARTNERS: Cash Collateral Use Extended Through March 31
TRITON INTERNATIONAL: S&P Rates Perpetual Preference Shares 'B+'
TWIN PINES: Seeks Court Approval to Hire NM Appraisal
VERITY HEALTH: Disclosures Hearing Deferred as Plan B in Works
VERITY HEALTH: Working on Safe Transfer of Liver Transplant Program
VERRINO CONSTRUCTION: Unsecureds to Recover 32% in Plan
WEATHER KING: U.S. Trustee Unable to Appoint Committee
WELDED CONSTRUCTION: Exclusivity Period Extended Until March 16
WESTERN RESERVE: Plan to Give Unsecureds 25% in 6 Years
WEWARDS INC: Incurs $186,515 Net Loss for Quarter Ended Nov. 30
XPO LOGISTICS: S&P Puts 'BB' ICR on CreditWatch Developing
XTL INC: BJC Says Debtors' Disclosure Statement Has Deficiencies
XTL INC: PIDC Says Plan Must be Amended to Include Claims
YIELD10 BIOSCIENCE: Effects 1-for-40 Reverse Stock Split
*********
01 BH PARTNERSHIP: Disclosure Hearing Continued to March 10, 2020
-----------------------------------------------------------------
The hearing on (i) debtor 01 BH Partnership's motion on the
adequacy of Chapter 11 Disclosure Statement, (ii) the Debtor's
motion for an order determining the value of collateral, and (iii)
Deutsche Banks's motion for relief from the automatic stay was
scheduled for Jan. 8, 2020 before the Honorable Deborah J.
Saltzman.
Deutsche Bank is in the process of obtaining an appraisal on the
property commonly known as 1001 North Beverly Glen Blvd, Los
Angeles, California 90077. Once the appraisal is received, the
Parties will discuss resolution of the Motions. As such, the
Parties have agreed to a continuance of all three hearings.
Pursuant to a stipulation, the parties agreed that the hearings on
Debtor's Disclosure Statement; Debtor's Motion to Value; and
Deutsche Bank's MFR will be continued to March 10, 2020, at 11:00
a.m. before the Honorable Deborah J. Saltzman.
It is stipulated that the response deadlines for Deutsche Bank to
respond to the Debtor's Disclosure Statement and Motion to Value
are extended to Feb. 25, 2020.
A full-text copy of the Stipulation is available at
https://tinyurl.com/wxmr3m4 from PacerMonitor.com at no charge.
Bank of America, N.A., service for Deutsche, is represented by:
Nathan F. Smith
MALCOLM CISNEROS, A Law Corporation
2112 Business Center Drive
Irvine, California 92612
Tel: (949)252-9400
Fax: (949)252-1032
E-mail: nathan@mclaw.org
About 01 BH Partnership
01 BH Partnership is the fee owner of a 1,087-square-foot family
residence located at 1001 N. Beverly Glen Blvd., Los Angeles. It
also owns 10 percent interests in 18 adjacent undeveloped, vacant
lots.
It previously sought bankruptcy protection (Bankr. C.D. Cal. Case
No. 18-11040) on April 25, 2018.
01 BH Partnership again sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-11924) on July 31,
2019. At the time of the filing, the Debtor disclosed $245,000 in
assets and $10,562,927 in liabilities. The case is assigned to
Judge Maureen Tighe. The Law Offices of Mark E. Goodfriend is the
Debtor's counsel.
160 ROYAL PALM: KK-PB Says Post-Closing Agreement Unauthorized
--------------------------------------------------------------
KK-PB Financial, LLC, filed a response to the ex parte motion of
debtor 160 Royal Palm, LLC to reset the plan confirmation hearing
with respect to the Debtor's newly proposed Second Amended Plan of
Liquidation.
KK-PB notes that the APA approved by the Court's Sale Approval
Order could not be clearer: "At the Closing, Buyer shall pay to
Seller the Purchase Price [$39,600,000] . . . This is an 'All
Cash Transaction' that is not subject to any financing, other
contingencies, or post contract due diligence." The APA
reiterates: ”At the Closing, Buyer shall deliver to Seller . . .
the Purchase Price."
KK-PB said that the Debtor and LR entered into an unauthorized,
post-petition Post-Closing Agreement which transferred the Assets
to LR without payment of the Sale Proceeds to the Debtor as
required by the APA. Such unauthorized transfer of the Debtor's
Assets to LR without payment of the Sale Proceeds to the Debtor
clearly violated the APA, the Court's Sale Approval Order.
KK-PB adds that the Second Plan is patently non-confirmable because
it violates Section 1129 of the Bankruptcy Code.
It claims that the Second Amended Plan violates, among other
things, (i) Section 363(b)(1) as an unauthorized transfer of the
Assets in contravention of the plain language of the APA and the
Court's Sale Approval Order; (ii) Section 364(d)(1) which requires
the Debtor to obtain credit or incur debt to permit a priming DIP
loan - none of which is happening under the Second Amended Plan to
justify the $45 million DIP claim to LR; and (iii) Section 1124
provides that to be unimpaired, the Plan must leave unaltered all
legal, equitable and contractual rights of an unimpaired claim, yet
the $45 million DIP claim to LR primes the unimpaired "Class
1—Allowed Trade Creditor Secured Claims," including KK-PB's
approximately $3.5 million New Haven Claim.
The Debtor filed the Motion seeking to set the confirmation hearing
on the Amended Plan and related professional fee applications as
soon as possible because the Second Amended Plan is ripe for
confirmation. The Debtor also alleges in the Motion that the
Second Amended Plan is not a material modification and does not
require re-solicitation.
But, according to KK-PB, the Plan obviously contains material
modifications to the previous plan that adversely impacts certain
parties.
A full-text copy of the KK-PB's response is available at
https://tinyurl.com/sv7f5ny from PacerMonitor.com at no charge.
KK-PB is represented by:
WHITE & CASE LLP
John K. Cunningham
Fan B. He
Evan M. Goldenberg
Southeast Financial Center, Suite 4900
200 South Biscayne Boulevard
Miami, Florida 33131-2352
Telephone: (305) 371-2700
Facsimile: (305) 358-5744
About 160 Royal Palm
160 Royal Palm, LLC is a Florida limited liability company, which
owns prime real property consisting of a partially constructed
hotel/condominium located at 160 Royal Palm Way, Palm Beach,
Florida. The property is under state court receivership.
160 Royal Palm filed a voluntary petition for relief under chapter
11 of the United States Bankruptcy Code (Bankr. S.D. Fla. Case
No.18-19441) on ug. 2, 2018. In the petition signed by Cary
Glickstein, sole and exclusive manager, the Debtor disclosed
$16,447,759 in total assets and $114,926,976 in total liabilities.
The case has been assigned to Judge Erik P. Kimball.
The Debtor tapped Philip J. Landau, Esq., at Shraiberg, Landau &
Page, P.A., as its counsel; and Greenberg Traurig, P.A. as its
special counsel and title agent.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
160 ROYAL PALM: Seeks OK of 3rd Amended Plan Without Resolicitation
-------------------------------------------------------------------
Debtor 160 Royal Palm, LLC asks that the Court schedule a hearing,
without requiring resolicitation, to consider confirmation of the
Debtor's Third Amended Plan, as well as related hearings on
professional fee applications. In support, the Debtor states as
follows:
* The Third Amended Plan provides and without violating any
applicable law or impairing any party in interest, for the full
release of the sale proceeds to the Debtor on the date the Court
enters an order confirming such an amended plan.
* In addition to addressing the concerns raised by the Court, the
Third Amended Plan also addresses the confirmation objection from
Paragraph 20 of KKPB's Amended Objection by eliminating language
regarding deemed consent to the injunctive and exculpatory
provisions.
* The Third Amended Plan is presently confirmable, and, pursuant
to 11 U.S.C. Sec. 1127(a) and Federal Rule of Bankruptcy Procedure
3019(a), does not require re-solicitation because the modifications
contained therein do not materially and adversely impact parties
that previously voted to accept the First Amended Plan such that
such accepting parties would be likely to reconsider their
acceptance.
Accordingly, the Debtor avers that the Third Amended Plan is ripe
for confirmation, and the Court should schedule a to consider
confirmation of the Third Amended Plan, as well as to consider the
Fee Applications.
A full-text copy of the redlined version of the Third Amended Plan
dated Dec. 26, 2019, is available at https://tinyurl.com/wen7vv4
from PacerMonitor.com at no charge.
The Debtor is represented by:
SHRAIBERG, LANDAU & PAGE, P.A.
Philip J. Landau
Eric Pendergraft
2385 NW Executive Center Drive, #300
Boca Raton, Florida 33431
Telephone: 561-443-0800
Facsimile: 561-998-0047
E-mail: plandau@slp.law
ependergraft@slp.law
About 160 Royal Palm
160 Royal Palm, LLC, is a Florida limited liability company, which
owns prime real property consisting of a partially constructed
hotel/condominium located at 160 Royal Palm Way, Palm Beach,
Florida. The property is under state court receivership.
160 Royal Palm filed a voluntary petition for relief under chapter
11 of the United States Bankruptcy Code (Bankr. S.D. Fla. Case
No.18-19441) on Aug. 2, 2018. In the petition signed by Cary
Glickstein, sole and exclusive manager, the Debtor disclosed
$16,447,759 in total assets and $114,926,976 in total liabilities.
The case has been assigned to Judge Erik P. Kimball.
The Debtor tapped Philip J. Landau, Esq., at Shraiberg, Landau &
Page, P.A., as its counsel; and Greenberg Traurig, P.A., as its
special counsel and title agent.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
ADT INC: S&P Rates $1.3BB Second-Lien Notes 'B-'
------------------------------------------------
S&P Global Ratings assigned its 'B-' issue-level rating and '6'
recovery rating to the U.S.-based alarm monitoring company ADT
Inc.'s proposed $1.3 billion second-lien notes. The '6' recovery
rating indicates S&P's expectation for negligible recovery (0%-10%;
rounded estimate: 0%) in the event of a payment default.
The company intends to use the net proceeds from the new second
lien notes and $17 million of borrowings under its revolving credit
facility to redeem in full $1.246 billion outstanding under its
existing 9.25% second-lien notes maturing in 2023 and pay
transaction expenses. The transaction is generally leverage neutral
but extends its weighted average debt maturity to 5.4 from 5.3.
Prime Security Services Borrower LLC is the issuer of the new
second lien notes. The notes rank junior to existing first lien
debt up to the value of the first lien collateral.
S&P's 'B+' issuer credit rating on ADT reflects the company's
substantial scale and the strength of the ADT brand, financial
policy risk as Apollo (the financial sponsor) continues to hold
more than 85% of common stock, and increased competition in the
core residential alarm-monitoring market from multiservice
operators, and the rise of do-it-yourself (DIY) offerings from
smart-home providers such as Amazon.com and Google.
The stable outlook reflects S&P's expectation that ADT's operating
performance will remain steady as it reduces customer churn,
broadens its home automation solutions and services, and expands
its commercial and DIY businesses. S&P forecasts free operating
cash flow to debt in the low- to mid-single-digit percentage area
over the next 12 months.
AGGRESSIVELY ORGANIC: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
The Office of the U.S. Trustee on Jan. 16, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of Aggressively Organic,
Inc.
About Aggressively Organic
Based in Fishers, Ind., Aggressively Organic, Inc. filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Ind. Case No. 19-08908) on Dec. 3, 2019, listing less than $1
million in both assets and liabilities. Judge Robyn L. Moberly
oversees the case. KC Cohen, Esq., is the Debtor's legal counsel.
ALLIANCE DATA: Egan-Jones Lowers Senior Unsecured Ratings to B+
---------------------------------------------------------------
Egan-Jones Ratings Company, on January 14, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Alliance Data Systems Corporation to B+ from BB-.
Headquartered in Columbus, Ohio, Alliance Data Systems Corporation
is a publicly-traded provider of loyalty and marketing services,
such as private label credit cards, coalition loyalty programs, and
direct marketing, derived from the capture and analysis of
transaction-rich data.
AMBOY GROUP: Feb. 4, 2020 Plan Confirmation Hearing Set
-------------------------------------------------------
On Dec. 12, 2019, Debtor Amboy Group, LLC's attorney Anthony Sodono
III filed with the U.S. Bankruptcy Court for the District of New
Jersey a disclosure statement referring to a plan.
On Dec. 26, 2019, Judge Christine M. Gravelle approved the
Disclosure Statement and established the following dates and
deadlines:
* Written acceptances, rejections or objections to the plan
referred to above shall be filed with the attorney for the plan
proponent not less than seven days before the hearing on
confirmation of the plan.
* Feb. 4, 2020, at 2:00 p.m. is fixed as the date and time for
the hearing on confirmation of the Plan.
A full-text copy of the corrected order is available at
https://tinyurl.com/ttjkmym from PacerMonitor.com at no charge.
About Amboy Group
Amboy Group LLC, d/b/a Tommy Moloney's, d/b/a Agnelli's Gourmet,
d/b/a Amboy Cold Storage, is a provider of food products and
temperature controlled warehouses. Its food processing and cold
storage facility serves as a manufacturer/distributor of authentic
Irish and Italian meat products in America. Amboy Group's facility
is USDA, FDA and SQF 2000 certified.
CLU Amboy, LLC, is the fee simple owner of a real property located
at 1 Amboy Avenue Woodbridge, NJ 07095 with an appraised value of
$13 million. CLU Amboy reported gross revenue of $624,444 in 2016
and gross revenue of $644,066 in 2015.
Amboy Group holds a 51% interest in an American entity known as
Parmacotta-Amboy NA, LLC, that distributes Italian meats. The
remaining 49% is owned by an American entity known as Parmacotto
America. Parmacotto America is owned by Paramcotto sPa. Parmacotto
sPa has been subject to insolvency proceedings in Italy for
approximately two and half years, during which time, no revenue has
flowed from Parmacotto sPa to Amboy Group. Amboy Group's gross
revenue amounted to $10.01 million in 2016 and $6.26 million in
2015.
Amboy Group LLC and its affiliate CLU Amboy filed Chapter 11
petitions (Bankr. D.N.J. Case Nos. 17-31653 and 17-31647) on Oct.
25, 2017. At the time of filing, the Amboy Group reported $1.48
million in assets and $7.11 million in liabilities, while CLU Amboy
reported $13.34 million in assets and $10.78 million in
liabilities.
The Hon. Christine M. Gravelle oversees the case.
The Debtors tapped Anthony Sodono, III, Esq., and Sari Blair
Placona, Esq., of Trenk, DiPasquale, Della Fera & Sodono, P.C., as
bankruptcy counsel, substituted by McManimon Scotland & Baumann,
LLP. The Debtors hired Reitler Kailas & Rosenblatt LLC as special
counsel, and Thomas A. Ferro, P.C., as their accountant. The
Debtors also tapped Sout Risius Ross Advisors, LLC, and its
affiliate Stout Risius Ross, LLC, as financial advisor and
investment banker.
ANDES INDUSTRIES: Seeks to Hire LKW Consulting as Financial Advisor
-------------------------------------------------------------------
Andes Industries, Inc. and PCT International, Inc. seek authority
from the U.S. Bankruptcy Court for the District of Arizona to hire
LKW Consulting, LLC as their financial advisor.
The firm will provide these services in connection with the
Debtors' Chapter 11 cases:
a. work with the Debtors' management and operations team to
create a process and recurring measurement metrics to reduce
manufacturing backlogs and improve on-time customer delivery;
b. assist the Debtors in finding suitors and securing
financing, including the appropriate mix of debt and equity to
increase cash flow, working capital and growth;
c. assist the Debtors' management with creative financing
structures to include current and future customers and vendors;
d. assist the Debtors with monetizing and leveraging internal
assets for capital raising purposes;
e. advise on financing strategy and provide guidance and
reporting assistance related to the Debtors' reorganization;
f. review and guide financial reporting structure changes for
the Debtors' management to enhance readability, scalability and
overall growth;
g. review monthly financial reporting results with the
Debtors' management based on agreed upon financial reporting
deadlines, including forward looking strategy and action planning;
h. assist the Debtors' management with forward looking
budgeting, forecasting, cash flow and strategic planning;
i. maintain and manage an online data room in accordance with
management's restructuring strategy; and
j. work with the Debtors' management on merger and acquisition
activities.
LKW's consulting fee is $250 per hour. In addition to the
consulting fee, the Debtors have agreed to pay LKW a success fee of
2 percent of the gross amount of equity capital raised or
bank-related financing secured by the Debtors as a result of the
firm's work. The success fee is capped at $100,000 for each capital
raising transaction.
Lawrence K. White, CPA, principal of LKW, attests that the firm is
a disinterested person under Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Lawrence K. White, CPA
LKW Consulting, LLC
34522 North Scottsdale Road, Suite 120-623
Scottsdale, AZ 85266
Phone: (602) 405-2296
Email: Larry.White@LKWConsulting.com
About Andes Industries and PCT International
Creditors EZconn Corporation, Crestwood Capital Corporation, and
Devon Investment Inc. filed involuntary bankruptcy petitions
against Andes Industries, Inc. and PCT International, Inc. under
Chapter 7 of the Bankruptcy Code in the U.S. Bankruptcy Court for
the District of Arizona. On Dec. 4, 2019, the Chapter 7 cases were
converted to cases under Chapter 11 (Bankr. D. Ariz. Lead Case No.
19-14585).
Judge Paul Sala oversees the cases. Sacks Tierney P.A. is the
Debtors' legal counsel.
ARABIE TRUCKING: $133K Sale of Trucks & Equipment Approved
----------------------------------------------------------
Judge Jerry A. Brown of the U.S. Bankruptcy Court for the Eastern
District of Louisiana authorized Arabie Trucking Services, LLC,
Sugarland Express, LLC and TAK Enterprises, LLC to sell those
identified trucks and equipment on Exhibit A for $132,500.
To the extent that an identified vehicle is subject to a security
interest as indicated on Exhibit A, the proceeds of the sale will
be paid directly to the interest holder.
The Debtors are granted relief from Bankruptcy Rule 6004(h).
A copy of the Exhibit A is available at https://tinyurl.com/smw8uk2
from PacerMonitor.com free of charge.
Arabie Trucking Services, LLC sought Chapter 11 protection (Bankr.
E.D. La. Case No. 19-11603) on June 13, 2019. The Debtor tapped
Douglas S. Draper, Esq., at Heller, Draper, Patrick, Horn &
Manthey, LLC as counsel.
ARCACHON PARTNERS: Unsecureds to Get 100% After New Financing
-------------------------------------------------------------
Archachon Partners filed a Combined Chapter 11 Plan of
Reorganization and Disclosure Statement. Under the Plan, secured
creditors will be paid in full and general unsecured creditors will
recover 100% of their allowed claims upon funding of the new
financing.
The Debtor will bring in new equity by March 1, 2020, paying
secured creditors from the new equity. the Debtor will not make
any payments pending the infusion of new equity.
Creditors will receive 100% percent of their allowed claims in one
payment on or before March 1, 2020:
Creditor Payment
-------- -------
Burke, Williams & Sorenson $9,909
Centric Building, Inc. Capital One Services $33,615
Jeffer Magels Butler & Mitchell $10,606
New Albion Surveys $6,075
Roleder & Radovan, LLC: $360,000
RSA+National Funding $7,200
Sherwood Design Engineers $1,400
WRA $9,428
Patrick Pickett $20,000
A full-text copy of the [Proposed] Combined Plan of Reorganization
and [Approved] [Tentatively Approved] Disclosure Statement dated
January 3, 2020, is available at https://tinyurl.com/yf5bhqkf from
PacerMonitor.com at no charge.
About Arcachon Partners
Arcachon Partners, LLC, based in Saint Helena, Calif., is a Single
Asset Real Estate (as defined in 11 U.S.C. Section 101(51B)). Its
principal assets are located at 775 Deer Park Road Saint in
Helena.
Arcachon Partners filed for Chapter 11 bankruptcy (Bankr. N.D. Cal.
Case No. 19-10687) on Sept. 16, 2019. In the petition signed by
Jonathan Roleder, Arcachon's managing member, the Debtor was
estimated to have $1 million to $10 million in both assets and
liabilities. The Hon. Charles Novack presides over the case.
ARCHBISHOP OF AGANA: $5.7M Accion Hotel Sale to TF Investments OK'd
-------------------------------------------------------------------
Judge Frances M. Tydingco-Gatewood of the U.S. Bankruptcy Court for
the District of Guam authorized Archbishop of Agana's sale of the
real property known as "Accion Hotel" located in Yona, Guam to TF
Investment, LLC or assigns for $5.7 million, pursuant to the Terms
of their Purchase Agreement.
The Purchase Price, minus any payment of taxes, costs of title
insurance, and other closing costs disclosed in the Purchase
Agreement, will be deposited by the Debtor in a financial
institution approved by the Office of the United States Trustee and
will be held pending further order of the Court.
The realtors' Commissions are approved as follows and will be paid
from proceeds of the sale: (1) $285,000 ($5.5 million x 5%) to
RE/MAX Diamond Realty; and (2) $83,891 ($50,000 engagement fee,
plus $33,891 expense reimbursement) to Keen-Summit Capital
Partners, LLC. The Court will hold under advisement the additional
compensation for Keen-Summit in the amount of $61,250 (17.5% of
$5.7 million - $5.35 million) until the objection raised by RE/MAX
Diamond Realty is resolved.
The stay imposed by Fed. R. Bankr. P. 6004(h) is waived.
About Archbishop of Agana
Roman Catholic Archdiocese of Agana -- https://www.aganaarch.org/
-- is an ecclesiastical territory or diocese of the Catholic Church
in the United States. It comprises the United States dependency of
Guam. The Diocese of Agana was established on Oct. 14, 1965, as a
suffragan of the Archdiocese of San Francisco, California. It is a
tax-exempt entity (as described in 26 U.S.C. Section 501).
The Archbishop of Agana, also known as the Roman Catholic
Archdiocese of Agana, sought Chapter 11 protection (D. Guam Case
No. 19-00010) on Jan. 16, 2019. Rev. Archbishop Michael Jude
Byrnes, S.T.D., Archbishop of Agana, signed the petition. The
Archdiocese scheduled $22,962,686 in assets and $45,662,941 in
liabilities as of the bankruptcy filing.
The Hon. Frances M. Tydingco-Gatewood is the case judge.
The Archdiocese tapped Elsaesser Anderson, Chtd., as bankruptcy
counsel, and John C. Terlaje, Esq., as special counsel.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on March 6, 2019. The Committee retained
Stinson Leonard Street LLP as bankruptcy counsel, and The Law
Offices of William Gavras as local counsel.
AVENTIV TECHNOLOGIES: S&P Alters Outlook to Neg., Affirms B- ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook to negative and affirmed the
'B-' rating on U.S.-based inmate telecommunications services
provider Aventiv Technologies (formerly known as Securus
Technologies Holdings, LLC) and assigned identical ratings to
subsidiary Securus Holdings, Inc.
S&P expects Aventiv to report 2019 results with weak EBITDA
interest coverage in the mid-1x area (below its 2x downgrade
threshold), significant negative free operating cash flow, and less
than adequate liquidity. Revenue growth in 2019 has been slower
than anticipated due to delayed installations and lower e-messaging
revenues following technical missteps. Additionally, EBITDA has
declined as Aventiv incurred costs from hiring additional personnel
for supporting its tablet offering, litigation, building out its IT
infrastructure, and roughly $20 million in costs from the now
blocked ICSolutions (ICS) acquisition (which S&P has added back to
EBITDA because it is nonreoccurring). Furthermore, as the company
incurs high capital expenditures to fund tablet builds, free
operating cash flow (FOCF) will be worse than previously assumed.
The negative outlook reflects risks associated with a shifting
strategy with limited cushion for further operational disruptions,
given currently weak credit metrics.
"We could lower the rating if EBITDA interest coverage is sustained
below 2x or if the company incurs significantly negative FOCF that
leads us to believe the company would be unable to delever and the
capital structure would be unsustainable. This could result from
lower volumes on tablet installations, elevated costs to support
entering new markets, or lower rates on its legacy phone service as
political or social pressures mount," S&P said.
"We could revise the outlook to stable if the company is able to
increase EBITDA, resulting in EBITDA interest coverage sustained
comfortably above 2.0x. This could result from solid execution of
its growth initiatives, including higher media and payment sales
and the absence of unexpected one-time costs incurred in 2019," the
rating agency said.
BAHIA DEL SOL: Cayman Given Extension to Reply to Property Sale
---------------------------------------------------------------
Judge Brian K. Testar of the U.S. Bankruptcy Court for the District
of Puerto Rico granted the request of Triangle Cayman Asset Co.
requesting extension of time of seven days to state position as to
Bahia Del Sol Corp's proposed sale of the real property currently
known as "Plaza Parguera Hotel" located at La Parguera Ward, Road
304, Km. 3.2, Lajas, Puerto Rico, to Puerto Rico Asset Management,
LLC for $1.3 million, subject to overbid.
The Title study shows promissory notes in the amounts of $750,000
and $3.725 million, both mortgages subsequently modified. The
holder of the notes is secured creditor Triangle who has been
proposed payment of $900,000 in full payment of all outstanding
amounts due to secured creditor. The sum of $900,000 represents
full payment of principal, interest, default interest, costs,
insurance and expenses including the sum of $206,194 in attorney's
fees. The Debtor has complied with post-petition monthly adequate
protection payments of $3,355, amount which represents monthly per
diem.
About Bahia Del Sol Corporation
Bahia Del Sol Hotel Corporation filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 19-03234) on June 5, 2019,
estimating under $1 million in both assets and liabilities. The
Debtor tapped Noemi Landrau Rivera, Esq., at Landrau Rivera &
Assoc., as counsel.
BENBOW VALLEY: Gets Court Approval to Employ CRO
------------------------------------------------
Benbow Valley Investments received approval from the U.S.
Bankruptcy Court for the California Northern Bankruptcy Court to
employ Trigild Incorporated as its chief restructuring officer.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. assist the Debtor's current management in connection with
the financial reporting, accounting, and developing a marketing
plan for the Debtor's assets;
b. meet with the Debtor, investigate its books and records,
and draft and provide a report regarding the firm's findings to SA
Group Properties, Inc.
Trigild will be paid as follows:
Chris Neilson, J.D., Managing Partner $350 per hour
Kevin Berry, Vice President $200 per hour
Chris Neilson, managing partner of Trigild, assures the court that
the firm is a disinterested person within the meaning of Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Chris Neilson
Trigild Incorporated
9339 Genesee Ave. Suite 130
San Diego, CA 92121
Phone: 858-242-1222
About Benbow Valley Investments
Benbow Valley Investments -- https://benbowinn.com/ -- owns Benbow
Historic Inn, a historical hotel in Humboldt County. The hotel
opened to the public in July 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 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, Benbow Valley disclosed $17,424,402 in
total assets and $11,851,004 in total debt.
Judge William J. Lafferty oversees the case. Benbow Valley tapped
Chris D. Kuhner, Esq., at Kornfield, Nyberg, Bendes, Kuhner &
Little P.C., as its legal counsel.
BETTEROADS ASPHALT: Lenders Resolve Fund Dispute with Sureties
--------------------------------------------------------------
Lenders Firstbank Puerto Rico, Banco Santander de Puerto Rico, the
Economic Development Bank for Puerto Rico, and Banco Popular de
Puerto Rico, administrative agent, to Betteroads Asphalt LLC filed
a motion informing the Bankruptcy Court that the contested matter
relating to certain disputed funds asserted by CNA Surety, Western
Surety Company and Continental Casualty Company (which the Debtor
may receive) have been resolved.
A copy of the motion to inform is available at https://is.gd/2wq2wK
from PacerMonitor.com free of charge.
Previously, the lenders have filed a supplement to the motion which
seeks direct payment to them of foreclosed accounts receivable and
to prohibit use of cash collateral. By said supplement, the
lenders amend the cash collateral motion, removing from the relief
sought therein remedies to disputed funds which the Debtor may
receive under the USVI contract and the VIPA contract. The
sureties allegedly have a superior interest over these potential
funds, to that of the lenders.
A copy of the supplement is available free of charge at
https://is.gd/UV1EEc from PacerMonitor.com.
About Betteroads Asphalt
Betteroads Asphalt LLC produces warm mix asphalt, which is used in
airports, highways, neighborhoods and environment projects.
Betterecycling Corporation produces gasoline, kerosene, distillate
fuel oils, residual fuel oils and lubricants. Both companies are
based in San Juan, P.R.
On June 9, 2017, creditors commenced involuntary bankruptcy
petitions under Chapter 11 of the Bankruptcy Code against
Betteroads Asphalt LLC (Bankr. D.P.R. Case No. 17-04156) and
Betterecycling Corporation (Bankr. D.P.R. Case No. 17-04157).
On Oct. 11, 2019, the court entered the "order for relief" after
finding that the involuntary petitions were not filed for an
improper bankruptcy purpose or with bad faith.
BHAKTEL LLC: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The Office of the U.S. Trustee on Jan. 17, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of Bhaktel, LLC.
About Bhaktel LLC
Bhaktel, LLC, is a privately held company in the hotel and motel
business. It is the fee simple owner of a property located at 1101
Country Club Dr., in Kirksville, Mo. The property has a current
value of $2.5 million.
Bhaktel sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. Texas Case No. 19-52862) on Dec. 2, 2019. At the time
of the filing, the Debtor disclosed $2,600,200 in assets and
$2,023,616 in liabilities. Judge Craig A. Gargotta oversees the
case. Heidi McLeod Law Office is the Debtor's legal counsel.
BLUE DIAMOND: To Sell Ranson Property as Part of Plan
-----------------------------------------------------
Judge Patrick M. Flatley of the U.S. Bankruptcy Court for the
Northern District of West Virginia denied as moot Blue Diamond,
LLC's sale of the real property located at 404 Mildred Street N.,
Ranson, West Virginia to Crystal Zhou for $130,000.
On Jan. 2, 2020, the Court convened a telephonic status conference
in the bankruptcy case to receive a report from the parties
regarding the progress of negotiations toward a consensual
confirmation and to consider the Debtor's proposed sale of Ranson
Property and the Objection filed thereto by United Bank. At that
time, the counsel advised the Court the offer to purchase the
property had been withdrawn, however a proposed sale of the
property is still contemplated as part of the Debtor's plan.
Upon consideration of the representations of the counsel and for
reasons fully stated on the record, the confirmation hearing is
rescheduled for Jan. 10, 2020 at 11:30 a.m. At that time, the
Court will also consider the Debtor's Motion to Amend Plan of
Reorganization and the Westfield Insurance Co.'s Motion to Classify
its Proof of Claim as Timely Filed.
The oral motions by counsel for United States Trustee and Ohio
Farmers Insurance Co. to appear for the hearing by telephone are
granted. To participate in the hearing, the counsel should dial
877-848-7030 and provide access code 6500181# when prompted to
do so.
About Blue Diamond
Blue Diamond LLC, based in Martinsburg, WV, filed a Chapter 11
petition (Bankr. N.D. W.Va. Case No. 17-01234) on Dec. 20, 2017.
In the petition signed by James Hutzler, Jr., member/manager, the
Debtor estimated $10 million to $50 million in assets and $1
million to $10 million in liabilities.
The Hon. Patrick M. Flatley presides over the case.
Martin P. Sheehan, Esq., at Sheehan & Nugent, PLLC, serves as
bankruptcy counsel to the Debtor. William C.Brewer, Esq., at
Brewer & Giggenbach, PLLC, is the Debtor's special counsel.
On April 10, 2018, the Court appointed Natalie J. Hoffman of Keller
Williams Realty Eastern, as the Listing Broker.
BOMBARDIER INC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Bombardier Inc. to
negative from stable and affirmed its ratings on the company,
including the 'B-' issuer credit rating.
Bombardier's latest guidance miss lowers S&P's conviction that the
company can generate positive free operating cash flow beyond 2019,
which S&P believes is necessary to facilitate sustainable
deleveraging.
Bombardier announced that its 2019 earnings and free cash flow will
be materially weaker than its previous guidance in August 2019,
primarily owing to continued challenges within its Business
Transportation (BT) segment. The company's preliminary full-year
results include a US$350 million charge in the fourth quarter
related to certain projects in the U.K. (the Aventra platform),
commercial negotiations with Swiss Federal Railways, and increased
production and manufacturing costs for projects in Germany. The
company now expects free cash flow usage of about US$1.2 billion
for 2019 compared with about US$500 million as per the company's
guidance from August 2019, and which is about US$300 million lower
than S&P's most recent forecast published last month.
As a result, S&P has less conviction that Bombardier can generate
positive free cash flow in 2020 with further improvement in 2021.
This stems in large part from the multiple downward revisions to
the company's guidance over the past couple of years. In S&P's
view, Bombardier will need to improve its free cash flow profile
over the next couple of years to meaningfully reduce its very high
debt leverage and address looming debt maturities.
The negative outlook reflects the potential for a downgrade if,
over the next 12 months, S&P does not expect Bombardier to
meaningfully reduce its refinancing risk and prospective leverage,
which remains high. In this scenario, S&P would likely expect the
company to generate negative free cash flow in 2020, with poor
prospects for material improvement in 2021.
"We could lower our rating on the company within the next 12 months
if we expect Bombardier to generate a free cash flow deficit in
2020, with poor prospects for material improvement in 2021. We
believe weaker cash flow prospects could lead to weaker liquidity
and limit the company's ability to refinance upcoming debt
maturities. In this scenario, we could consider the company's
capital structure as unsustainable in the long term, contributing
to an increased likelihood of a debt restructuring event," S&P
said.
"We could revise our outlook on the company to stable if we gain
greater conviction that Bombardier will generate positive free cash
flow and increase earnings sufficient to facilitate a meaningful
improvement in leverage and access to capital markets. This could
occur from an improvement in operating results, notably from the
resolution of BT-related performance issues, continued earnings
growth from the sale of its business jets, and sustainably lower
capital expenditures. In this scenario, we would expect credit
measures to improve in line with or better than our current
expectation of adjusted debt-to-EBITDA below 9x in 2020 with strong
prospects for further improvement in 2021," the rating agency said.
BUFORD ELECTRIC: Unsec. Creditors to Recover 10% in 5 Years
-----------------------------------------------------------
BUFORD ELECTRIC, LLC, has proposed a reorganization plan that that
will be funded by the continued operations and profit of the
business and by pursuing various avoidance actions.
In accordance with the Debtor's projected revenue and the
liquidation analysis, the Debtor will pay allowed unsecured claims
roughly 10 percent of their claim amounts. The class will share,
pro rata, a distribution of $100,000 payable in 60 monthly payments
beginning on the effective date of the Plan.
A full-text copy of the Disclosure Statement dated December 30,
2019, is available at https://tinyurl.com/urcdtvw from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Travis Sasser
2000 Regency Parkway, Suite 230
Cary, N01th Carolina 27518
Tel: 919.319.7400
Fax: 919.657.7400
About Buford Electric
Buford Electric, LLC, an electrical company in Fayetteville, N.C.,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
E.D.N.C. Case No. 19-03901) on Aug. 24, 2019. At the time of the
filing, the Debtor was estimated to have assets of less than
$50,000 and liabilities of between $1 million and $10 million. The
case is assigned to Judge Joseph N. Callaway. The Debtor is
represented by Travis Sasser, Esq., at Sasser Law Firm.
C AND N TRANSPORT: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: C and N Transport LLC
836 Lafayette Street #1
Cape Coral, FL 33904
Business Description: C and N Transport LLC is a transportation
services provider based in Cape Coral,
Florida.
Chapter 11 Petition Date: January 21, 2020
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 20-00427
Debtor's Counsel: Michael R. Dal Lago, Esq.
DAL LAGO LAW
999 Vanderbilt Beach Road
Suite 200
Naples, FL 34108
Tel: 239-571-6877
E-mail: mike@dallagolaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Cynthia Trayner, member.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/mmTnNp
CACHET FINANCIAL: Case Summary & 21 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Cachet Financial Services, a California corporation
aka Cachet
fka Cachet Banq, Inc.
175 S. Lake Avenue, Suite 200
Pasadena, CA 91101
Business Description: Cachet Financial Services --
https://www.cachetservices.com --
provides Automated Clearing House (ACH)
processing services for payroll-related
electronic transactions, including: direct
deposits, tax payments, garnishment
payments, benefits payments, 401(k)
payments, expense reimbursement payments,
agency checks, and fee collection.
Chapter 11 Petition Date: January 21, 2020
Court: United States Bankruptcy Court
Central District of California
Case No.: 20-10654
Judge: Hon. Vincent P. Zurzolo
Debtor's Counsel: James C. Bastian, Jr., Esq.
SHULMAN BASTIAN LLP
100 Spectrum Center Drive, Suite 600
Irvine, CA 92618
Tel: (949) 340-3400
E-mail: JBastian@shulmanbastian.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Aberash Asfaw, president.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/PtTHMl
List of Debtor's 21 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Verde Human Capital, LLC Pending $692,557
OneMint Litigation
c/o Daniel Weiskopf Esq.
McNaul Ebel Nawrot & Helgren PLLC
600 University Street Ste 2700
Seattle, WA 98101-3143
Tel: 206-467-1816
Email: dweiskopf@mcnaul.com
2. Rackspace Us Inc. Server and $47,547
Attn: President Or Manager Agent Network
1 Fanatical Place Provider
City Of Windcrest
San Antonio, TX 78218
Tel: 800-961-4454
3. Wespay Advisors Arch Audit $2,015
Attn: President Or Manager Agent Services
601 Montgomery Street Suite 710
San Francisco, CA 94111
Tel: 415-373-1180
Email: cburnett@wespay.org
4. Accounting Principals Services $1,918
Attn: President Or Manager Agent
Dept Ch 14031
Palatine, IL 60055-4031
Tel: 888-301-3621
5. Tpx Communications Utility- $1,207
Attn: President Or Manager Agent Phone
515 S Flower Street 45th Fl Service
Los Angeles, CA 90071-2201
Tel: 877-487-8722
6. Raymond Avenue Self Storage Storage Unit $680
Attn: President Or Manager Agent
2201 Alton Parkway
Irvine, CA 9260
Tl: 949-442-2342
7. Logmein Internet $560
Attn: President Or Manager Agent Communications
PO Box 50264
Los Angeles, CA 90074-0264
8. Southland Shredding
Attn: President Or Manager Agent Shredding $425
1131 N Hellman Avenue Service
Ontario, CA 91764
Tel: 888-747-3331
9. Pasadena Fire Recovery False Alarm $375
Program Response
Attn: President Or Manager Agent
PO Box 748631
Los Angeles, CA 90074-8631
Tel: 855-809-2057
Email: pasadenacafire@alarm-billing.com
10. AT&T(3887) Utility- $299
Attn: President Or Manager Agent Internet
PO Box 5014
Carol Stream, IL 60197-5014
Tel: 800-321-2000
11. Readyrefresh Water Delivery $294
Attn: President Or Manager Agent
#216 6661 Dixie Highway Suite 4
Louisville, KY 4025
Tel: 800-274-5282
12. Equifax Information SVCS LLC Service $225
Attn: President Or Manager Agent
PO Box 740253
Altanta, GA 30374-025
Tel: 800-685-5000
Email: cust.serv@equifax.com
13. CDW Direct Electronics- $212
Attn: President Or Manager Agent Computer Parts
Attn: Bobby Dalton
PO Box 75723
Chicago, IL 60675-5723
Tel: 480-270-7127
Email: bobbdal@cdw.com; credit@cdw.com
14. Pitney Bowes Postage $210
Attn: President Or Manager Agent Machine
2225 American Drive Rental
Neenah, WI 5495
Tel: 844-256-6444
15. AT&T(6671) Utility- $179
Attn: President Or Manager Agent Internet
PO Box 5014
Carol Stream, IL 60197-5014
Tel: 800-321-2000
16. City Of Pasadena False Alarm $147
Attn: Manager Agent Response
Attn: Finance Accounts Receivable
PO Box 7115
100 N Garfield Ave N106
Pasadena, CA 91109-7215
Tel: 626-744-4291
17. Veleta Stevens, et al Pending Unknown
c/o Mike M Arias Esq. Class
Alfredo Torrijos Esq. Action
Arias Sanguinetti Wang and
Torrijos LLP 6701 Center Drive
W 14th Fl
Los Angeles, CA 90045
Tel: 310-844-9696
Email: mike@aswtlawyers.com
alfredo@aswtlawyers.com
18. Webb Payroll Service Inc, et al Pending Unknown
c/o Francis J Casey Flynn Jr Class
Law Office of Francis J Flynn Jr Action
422 S Curson Ave
Los Angeles, CA 90036
Tel: 314-662-2836
Email: casey@lawofficeflynn.com
19. Sarah Simmons et al, Pending Unknown
c/o Lawrence J Semenza III Esq Class
Christopher D Kircher Esq Action
Jarrod L Rickard Esq
Katie L Cannata Esq
Semenza Kircher Rickard
10161 Park Run Dr Ste 150
Las Vegas, NV 89145
Tel: 702-835-6803
Email: ljs@skrlawyers.com
cdk@skrlawyers.com
jlr@skrlawyers.com
klc@skrlawyers.com
20. Brigitte Jones et al Pending Unknown
c/o David L Meyerson Esq. Class
1400 Rockefeller Bldg Action
614 W Superior Avenue
Cleveland, OH 4411
Tel: 216-696-1080
Email: dmeyerson@seamanatty.com
21. Bancorp Bank Pending Unknown
Attn: President or Manager Agent Interpleader
409 Silverside Road Suite 105 Action
Wilmington, DE 19809
Beth Moskow-Schnoll Esq.
Jessica C Watt Esq.
William J Burton Esq.
Ballard Spahr LLP
Tel: 302-252-4465
Email: moskowschnollb@ballardspahr.com
wattj@ballardspahr.com
burtonw@ballardspahr.com
CALFRAC WELL: S&P Cuts ICR to 'CCC+' on Deteriorating Liquidity
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Calgary, Alta.-based Calfrac Well Services Ltd. to 'CCC+' from 'B-'
and its issue-level rating on the company's US$650 million senior
unsecured notes to 'CCC+' from 'B-'. Its recovery rating on the
unsecured debt is unchanged at '4'.
The downgrade reflects S&P's expectation of material deterioration
in Calfrac's revenues and operating cash flows due to persistent
weakness in industry activity levels in North America. North
American E&P companies' focus on spending within operating cash
flows has affected capital spending plans for a number of Calfrac's
key customers, leading to reduced demand for the company's
services. The company predominantly relies on fracturing revenues
from North American operations (approximately 80% of year-to-date
2019 revenues) for the majority of its earnings and cash flows. And
given its expectation of weak industry fundamentals and subdued
demand for pressure pumping services in North America in 2020, S&P
estimates Calfrac's operating results and credit metrics will
materially underperform the rating agency's previous expectations.
The negative outlook reflects S&P's view that estimated free cash
flow deficits, a deteriorating liquidity position, and a high debt
load will reduce Calfrac's access to capital markets and increase
the risk of unfavorable debt restructuring, which the rating agency
could characterize as a distressed exchange. However, based on
Calfrac's cash on hand, current availability under its committed
revolving credit facility, and no debt maturities in the next 12
months, the company should be able to support all its funding
requirements over this period.
"We would lower the rating if continued free cash flow deficits or
credit facility borrowing base limitations result in accelerated
deterioration in Calfrac's liquidity position such that there is an
increased risk of the company's inability to meet its financial
commitments and maintenance capital spending requirements. We could
also lower the rating if we believe there is an increased
possibility of debt restructuring that we view as distressed," S&P
said.
"We could revise the outlook to stable if improving market
conditions for pressure pumping strengthen the company's cash flows
and liquidity position, such that it would be able to fully fund
its financing and capital spending requirements from operating cash
flows," the rating agency said.
CANNABICS PHARMACEUTICALS: Has $5.1M Net Loss for Nov. 30 Quarter
-----------------------------------------------------------------
Cannabics Pharmaceuticals Inc. filed its quarterly report on Form
10-Q, disclosing a net loss of $5,142,194 on $1,754 of net revenue
for the three months ended Nov. 30, 2019, compared to a net loss of
$655,975 on $3,305 of net revenue for the same period in 2018.
At Nov. 30, 2019, the Company had total assets of $6,461,740, total
liabilities of $440,456, and $6,021,284 in total stockholders'
equity.
The Company has incurred a net loss of $5,142,194 for the three
months ended November 30, 2019, and has incurred cumulative losses
since inception of $11,306,002. The Company said these conditions
raise substantial doubt about its ability to continue as a going
concern.
A copy of the Form 10-Q is available at:
https://is.gd/YlrfQx
Cannabics Pharmaceuticals Inc., a pharmaceutical company, develops
advanced cannabis medicines and therapies for cancer. The Company
is headquartered in Bethesda, Maryland.
CANTRELL DRUG: Brown Buying All Asserts for $3.3 Million
--------------------------------------------------------
Judge Phyllis M. Jones of he U.S. Bankruptcy Court for the Eastern
District of Arkansas authorized the amended bidding procedures of
Cantrell Drug Co., Inc., and Pharmasite, LLC in connection with the
sale of substantially all of their assets to Dr. David P. Brown for
$3.3 million, subject to overbid.
The assets of Debtor Cantrell Drug include the following: (a)
approximately 6,000 square feet of ISO 7 and ISO 8 cleanrooms; (b)
redundant HVAC systems supporting all clean rooms; (c) standby
generator for facility; (d) REESE centralized continuous monitoring
system, GMP complaint (pressure, temperature, and humidity control;
(e) DEA vault and holding cage (f) DEA approved security systems;
(g) access point controlled entry system; (h) stainless steel
cleanroom furniture and ISO 5 laminar-flow work benches; (i)
customers and prospects database; (j) inventory, (k) the Debtor's
names and all trademarks, copyrights and other intellectual
property; (l) equipment and equipment leases; (m) personal
property; (n) contract rights; (p) fixtures and improvements
connected to the Debtors business; and (p) real property used as a
parking lot adjacent to the land and improvements owned by
Pharmasite.
The assets of Pharmasite include real estate and improvements
located at 7323 Cantrell Road, Little Rock, Arkansas.
The allocation of the purchase price will be 71.4% to the
Pharmasite Assets and 28.6% to the Cantrell Drug Assets.
The Final Hearing on the Motion is set for Jan. 22, 2020, at 9:30
a.m. (PLT). The Objection Deadline is Jan. 20, 2020 at 5:00 p.m.
The Notice of the Procedures Order, Auction, and Final Hearing, ed
Contracts will be good and sufficient, and no other or further
notice will be required, if given as follows:
(a) Notice of Auction and Final Hearing. As soon as
practicable after the Court's entry of this Procedures Order, but
within five days thereafter, the Debtors (or their agents) will
serve a Notice upon all interested persons and entities entitled to
receive notice pursuant to the Bankruptcy Rules and the Court's
local rules, if known (or, in lieu thereof, to their counsel).
The form of notice will contain the above style of these cases and
state as follows: "NOTICE OF ENTRY OF ORDER APPROVING BID
PROCEDURES You are hereby notified that on December 17, 2019, this
Court entered An Order Approving Bid Procedures upon the Motion of
the Debtors in this case [Docket No. __] (the "Bid Procedures
Order"). Among other things, the Bid Procedures Order authorized
the Debtors to recognize Dr. David Brown as a Stalking Horse Bidder
to purchase substantially all of the Debtors' assets pursuant to an
Asset Purchase Agreement for $3,300,000.00 as a Stalking Horse
Bidder with allocation of the purchase price to be allocated 71.4%
to the assets of Debtor Pharmasite, LLC and 28.6% to the assets of
Cantrell Drug. The Court also established bid procedures to any
qualified party to submit competing bids. The Deadline for those
who wish to submit competing bids is 5:00 p.m. on December 31,
2019. Should the Debtors receive qualified competing bids, the
Debtors will conduct an Auction on January 15, 2020 at 9:00 a.m.
Objections to Debtors’ original motion upon which the Bid
Procedures Order was entered, the proposed transaction noted in
such motion and the Bid Procedures Order is 5:00 p.m. on January
20, 2020, and must be filed with the Clerk of the United States
Bankruptcy Court, Eastern District of Arkansas, 300 West Second
Street, Little Rock, Arkansas 72201 with a copy to the undersigned
Debtors' counsel. Should any party wish to receive an electronic
copy of either the Bid Procedures Order or the motion on which it
was based, including any exhibits attached thereto, including the
Asset Purchase Agreement of the Stalking Horse Bidder, a courtesy
copy will be promptly provided by contacting the Debtors'
undersigned counsel by e-mail. The final hearing is scheduled for
January 22, 2020 at 9:30 a.m. (Prevailing Local Time) before the
U.S. Bankruptcy Court for the Eastern District of Arkansas."
Provided that the APA is made available to potential bidders no
later than Dec. 23, 2019, any final agreement purporting to
memorialize an agreement for the disposition of substantially all
of the Debtors' Assets by and between the Debtors and either the
Purchaser or the Successful Bidder, as the case may be, will be
substantially in the form of the APA, subject to paragraph
9(c)(iii) below, and will be substantially consistent with the
terms and conditions thereof.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Dec. 31 2019, at 5:00 p.m. (PLT)
b. Initial Bid: In an amount that exceeds the amount initially
bid by the Purchaser in the APA by not less than $225,000 (which
is equal to the Break-Up Fee plus the Minimum Bid Increment)
c. Deposit: $250,000
d. Auction: In the event that one or more competitive
Qualified Bids other than that of the Purchaser are received, the
Debtor will conduct an auction to determine the highest or best bid
for the Assets beginning at 9:00 a.m. (PLT) on Jan. 15, 2020, at
the offices of Debtors’ counsel, Kevin P. Keech, Keech Law Firm,
PA, 2011 South Broadway, Little Rock, Arkansas 72206.
e. Bid Increments: $100,000
f. Sale Hearing: Jan. 22, 2020 at 9:30 a.m. (PLT).
g. Closing: The Closing will take place in accordance with the
approved Transaction after entry of the Final Order.
h. The Sale of the Assets will be on an "as is, where is"
basis and without representations or warranties of any kind,
nature.
Credit bidding will not be permitted at the Auction, except that
Regions Bank will be entitled to submit a Back-Up Bid in the form
of a credit bid.
The credit bid rights of any secured party are preserved in
accordance with Section 363(k) of the Bankruptcy Code.
Notwithstanding the possible applicability of Bankruptcy Rules
6004(h), 7062, 9014, or otherwise, the terms and conditions of the
Order will be immediately effective and enforceable upon its entry.
About Cantrell Drug
Established in 1952, Cantrell Drug Company --
https://www.cantrelldrug.com/ -- is a privately owned multi-faceted
specialty pharmaceutical company providing sterile and non-sterile
pharmaceutical preparations to meet the needs of patients,
physicians, clinics, and healthcare institutions throughout the
United States. Cantrell Drug is comprised of two divisions: a
state-based custom compounding division primarily designed to
"bridge the gap" with commercial product drug shortages, and a FDA
registered division known as an "Outsource Human Drug Compounder."
Cantrell Drug Company filed a Chapter 11 petition (Bankr. D. Ark.
Case No. 17-16012) on Nov. 7, 2017. James L. Mc Carley, Jr., its
CEO, signed the petition. The case is assigned to Judge Phyllis M.
Jones. The Debtor is represented by Kevin P. Keech, Esq., at Keech
Law Firm, P.A. At the time of filing, the Debtor disclosed $15.11
million in assets and $7.46 million in liabilities.
CANTRELL DRUG: Brown Buying All Asserts for $3.3 Million
--------------------------------------------------------
Judge Phyllis M. Jones of the U.S. Bankruptcy Court for the Eastern
District of Arkansas authorized the amended bidding procedures of
Cantrell Drug Co., Inc. and Pharmasite, LLC in connection with the
sale of substantially all of their assets to Dr. David P. Brown for
$3.3 million, subject to overbid.
The assets of Debtor Cantrell Drug include the following: (a)
approximately 6,000 square feet of ISO 7 and ISO 8 cleanrooms; (b)
redundant HVAC systems supporting all clean rooms; (c) standby
generator for facility; (d) REESE centralized continuous monitoring
system, GMP complaint (pressure, temperature, and humidity control;
(e) DEA vault and holding cage (f) DEA approved security systems;
(g) access point controlled entry system; (h) stainless steel
cleanroom furniture and ISO 5 laminar-flow work benches; (i)
customers and prospects database; (j) inventory, (k) the Debtor's
names and all trademarks, copyrights and other intellectual
property; (l) equipment and equipment leases; (m) personal
property; (n) contract rights; (p) fixtures and improvements
connected to the Debtors business; and (p) real property used as a
parking lot adjacent to the land and improvements owned by
Pharmasite.
The assets of Pharmasite include real estate and improvements
located at 7323 Cantrell Road, Little Rock, Arkansas.
The allocation of the purchase price will be 71.4% to the
Pharmasite Assets and 28.6% to the Cantrell Drug Assets.
The Final Hearing on the Motion is set for Jan. 22, 2020, at 9:30
a.m. (PLT). The Objection Deadline is Jan. 20, 2020 at 5:00 p.m.
The Notice of the Procedures Order, Auction, and Final Hearing, ed
Contracts will be good and sufficient, and no other or further
notice will be required, if given as follows:
(a) Notice of Auction and Final Hearing. As soon as
practicable after the Court's entry of this Procedures Order, but
within five days thereafter, the Debtors (or their agents) will
serve a Notice upon all interested persons and entities entitled to
receive notice pursuant to the Bankruptcy Rules and the Court's
local rules, if known (or, in lieu thereof, to their counsel).
The form of notice will contain the above style of these cases and
state as follows: "NOTICE OF ENTRY OF ORDER APPROVING BID
PROCEDURES You are hereby notified that on December 17, 2019, this
Court entered An Order Approving Bid Procedures upon the Motion of
the Debtors in this case [Docket No. __] (the "Bid Procedures
Order"). Among other things, the Bid Procedures Order authorized
the Debtors to recognize Dr. David Brown as a Stalking Horse Bidder
to purchase substantially all of the Debtors' assets pursuant to an
Asset Purchase Agreement for $3,300,000.00 as a Stalking Horse
Bidder with allocation of the purchase price to be allocated 71.4%
to the assets of Debtor Pharmasite, LLC and 28.6% to the assets of
Cantrell Drug. The Court also established bid procedures to any
qualified party to submit competing bids. The Deadline for those
who wish to submit competing bids is 5:00 p.m. on December 31,
2019. Should the Debtors receive qualified competing bids, the
Debtors will conduct an Auction on January 15, 2020 at 9:00 a.m.
Objections to Debtors’ original motion upon which the Bid
Procedures Order was entered, the proposed transaction noted in
such motion and the Bid Procedures Order is 5:00 p.m. on January
20, 2020, and must be filed with the Clerk of the United States
Bankruptcy Court, Eastern District of Arkansas, 300 West Second
Street, Little Rock, Arkansas 72201 with a copy to the undersigned
Debtors' counsel. Should any party wish to receive an electronic
copy of either the Bid Procedures Order or the motion on which it
was based, including any exhibits attached thereto, including the
Asset Purchase Agreement of the Stalking Horse Bidder, a courtesy
copy will be promptly provided by contacting the Debtors'
undersigned counsel by e-mail. The final hearing is scheduled for
January 22, 2020 at 9:30 a.m. (Prevailing Local Time) before the
U.S. Bankruptcy Court for the Eastern District of Arkansas."
Provided that the APA is made available to potential bidders no
later than Dec. 23, 2019, any final agreement purporting to
memorialize an agreement for the disposition of substantially all
of the Debtors' Assets by and between the Debtors and either the
Purchaser or the Successful Bidder, as the case may be, will be
substantially in the form of the APA, subject to paragraph
9(c)(iii) below, and will be substantially consistent with the
terms and conditions thereof.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Dec. 31 2019, at 5:00 p.m. (PLT)
b. Initial Bid: In an amount that exceeds the amount initially
bid by the Purchaser in the APA by not less than $225,000 (which
is equal to the Break-Up Fee plus the Minimum Bid Increment)
c. Deposit: $250,000
d. Auction: In the event that one or more competitive
Qualified Bids other than that of the Purchaser are received, the
Debtor will conduct an auction to determine the highest or best bid
for the Assets beginning at 9:00 a.m. (PLT) on Jan. 15, 2020, at
the offices of Debtors’ counsel, Kevin P. Keech, Keech Law Firm,
PA, 2011 South Broadway, Little Rock, Arkansas 72206.
e. Bid Increments: $100,000
f. Sale Hearing: Jan. 22, 2020 at 9:30 a.m. (PLT).
g. Closing: The Closing will take place in accordance with the
approved Transaction after entry of the Final Order.
h. The Sale of the Assets will be on an "as is, where is"
basis and without representations or warranties of any kind,
nature.
Credit bidding will not be permitted at the Auction, except that
Regions Bank will be entitled to submit a Back-Up Bid in the form
of a credit bid.
The credit bid rights of any secured party are preserved in
accordance with Section 363(k) of the Bankruptcy Code.
Notwithstanding the possible applicability of Bankruptcy Rules
6004(h), 7062, 9014, or otherwise, the terms and conditions of the
Order will be immediately effective and enforceable upon its entry.
About Cantrell Drug
Established in 1952, Cantrell Drug Company --
https://www.cantrelldrug.com/ -- is a privately owned multi-faceted
specialty pharmaceutical company providing sterile and non-sterile
pharmaceutical preparations to meet the needs of patients,
physicians, clinics, and healthcare institutions throughout the
United States. Cantrell Drug is comprised of two divisions: a
state-based custom compounding division primarily designed to
"bridge the gap" with commercial product drug shortages, and a FDA
registered division known as an "Outsource Human Drug Compounder."
Cantrell Drug Company filed a Chapter 11 petition (Bankr. D. Ark.
Case No. 17-16012) on Nov. 7, 2017. James L. Mc Carley, Jr., its
CEO, signed the petition. The case is assigned to Judge Phyllis M.
Jones. The Debtor is represented by Kevin P. Keech, Esq., at Keech
Law Firm, P.A. At the time of filing, the Debtor disclosed $15.11
million in assets and $7.46 million in liabilities.
CARDINAL HOMES: Court Grants Final Nod on Cash Collateral Motion
----------------------------------------------------------------
Judge Kevin R. Huennekens authorized Cardinal Homes, Inc., and
parent Alouette Holdings, Inc., to use cash collateral, nunc pro
tunc to the Petition Date, in the aggregate and on a cumulative
basis, pursuant to the budget.
The Court ruled that the Debtors are authorized to use cash
collateral to pay allowed administrative expenses associated with
their Chapter 11 cases.
As adequate protection, Newtek Small Business Finance, LLC is
granted, effective as of the Petition Date, additional, continuing,
renewal and replacement liens and security interests on (a) all
personal property assets of the same type as the Newtek personal
property collateral to the same extent, nature and priority held by
Newtek under the pre-petition loan documents, (b) any and all sale
proceeds received in connection with any sale of the Debtor'
personal property, which lien shall be in a first-priority position
superior to and satisfied in full before any liens against said
personal property and proceeds therefrom, and (c) any and all sale
proceeds from the sale of Alouette's real property, which lien
shall be subordinate to the liens of Kituwah, LLC.
As additional adequate protection, Newtek will be entitled to a
super priority administrative expense claim under Section 507(b) of
the Bankruptcy Code.
As adequate protection to PIRS Capital, LLC, PIRS is granted,
effective as of the Petition Date, additional, continuing, renewal
and replacement liens and security interests on all personal
property assets of the same type as the PIRS personal property
collateral, (ii) and any and all sale proceeds from the sale of the
Debtor's personal property, which lien shall be - with the
exception of the liens of Kituwah granted in connection with the
Alouette final DIP order and the Debtor's final DIP order, and the
liens of Newtek - in a first-priority position superior to any and
all other liens against said personal property and proceeds
therefrom.
A copy of the final cash collateral order, with the cash flow
projections through Feb. 21, 2020, is available for free at
https://is.gd/lfrQwH from PacerMonitor.com.
About Cardinal Homes
Cardinal Homes, Inc. -- https://www.cardinalhomes.com/ --
manufactures made-to-order, modular building components for a
growing client list of building contractors engaged in residential
and light commercial construction projects.
Cardinal Homes sought Chapter 11 protection (Bankr. E.D. Va. Case
No. 19-36275) on December 2, 2019 in Richmond, Virginia. In the
petition signed by Bret A. Berneche, CEO, the Debtor listed between
$1 million and $10 million in both assets and liabilities.
Cardinal Homes was formed in 1970 and is a wholly-owned subsidiary
of Alouette Holdings, Inc., a debtor in Chapter 11 Case No.
19-36126-KRH, pending in the U.S. Bankruptcy Court for the Eastern
District of Virginia.
Judge Kevin R. Huennekens is assigned to the case.
Whiteford Taylor & Preston, LLP, is the Debtor's counsel. American
Legal Claim Services, LLC is the Debtor's notice, claims &
balloting agent.
CARDINAL HOMES: Newtek Objects to DIP Motion
--------------------------------------------
Newtek Small Business Finance, LLC, objected to motion for entry of
final order to obtain post-petition financing filed by Cardinal
Homes, Inc., and parent Alouette Holdings, Inc.
Before the Petition Date, the Debtors are indebted to Newtek
pursuant to a series of three loans evidenced by certain notes,
aggregating $5,270,000, of which approximately $4,500,000 remains
outstanding. The notes are secured by, among other things,
assignments of leases, assignments of rents, the Debtors' personal
and real property, and three deeds of trust.
Newtek complained that its interest in the Debtor is not adequately
protected based on the Debtor's report as well as from the evidence
presented at the initial hearing on the cash collateral motion.
According to Newtek, the Debtors' use of the Newtek Cash Collateral
will result in a diminution in value of at least $63,000 during the
13 weeks of such use. Newtek said that diminution could be
significantly greater if the projected post-petition acquired raw
materials, work in process and accounts receivable are lower at the
end of the 13-week budget period than the currently projected
$141,877.86 aggregate value of said items reflected in the cash
collateral report.
Michael A. Condyles, Esq., counsel to Newtek at Kutak Rock LLP,
said the interim cash collateral order provides for three forms of
adequate protection to Newtek, none of which has the effect of
accounting for the $63,000 or more diminution in the value of the
Newtek cash collateral. Newtek also complained that its senior
lien position is eliminated under the Debtors' interim cash
collateral order.
Accordingly, Newtek asked the Court to enter an order:
(a) restoring Newtek's first priority lien on the sale proceeds
of Debtor Cardinal's personal property, nunc pro tunc, to the entry
of the interim cash collateral order,
(b) granting adequate protection to Newtek for the diminution in
value of its cash collateral, nunc pro tunc, to the entry of the
interim cash collateral order,
(c) or, alternatively, denying the Debtor's cash collateral
motion and prohibiting Debtor Cardinal and Debtor Alouette from
using the Newtek cash collateral.
A copy of the objection is available at https://is.gd/zVTmks from
PacerMonitor.com free of charge.
About Cardinal Homes
Cardinal Homes, Inc. -- https://www.cardinalhomes.com/ --
manufactures made-to-order, modular building components for a
growing client list of building contractors engaged in residential
and light commercial construction projects.
Cardinal Homes sought Chapter 11 protection (Bankr. E.D. Va. Case
No. 19-36275) on December 2, 2019 in Richmond, Virginia. In the
petition signed by Bret A. Berneche, CEO, the Debtor listed between
$1 million and $10 million in both assets and liabilities.
Cardinal Homes was formed in 1970 and is a wholly-owned subsidiary
of Alouette Holdings, Inc., a debtor in Chapter 11 Case No.
19-36126-KRH, pending in the U.S. Bankruptcy Court for the Eastern
District of Virginia.
Judge Kevin R. Huennekens is assigned to the case. Whiteford
Taylor & Preston, LLP is the Debtor's counsel. American Legal
Claim Services, LLC is the Debtor's notice, claims & balloting
agent.
CELADON GROUP: Jan. 22 Auction of All Assets of Taylor Set
----------------------------------------------------------
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware authorized the bidding procedures of Celadon Group,
Inc. and its affiliated debtors in connection with the auction sale
of substantially all assets of Debtor Taylor Express, Inc.
Subject to the expiration of the Designation Notice Period or the
resolution by the Court of any timely filed objection to the
Debtors' designation of a Designated Stalking Horse Bidder, the
Debtors, in consultation with the Consultation Parties, are
authorized to designate one or more Designated Stalking Horse
Bidders and grant Bid Protections without further order of the
Court.
The Debtors' template Asset Purchase Agreement is approved.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Jan. 20, 2020 at 4:00 p.m. (ET)
b. Initial Bid: The initial Overbid, if any, will provide for
total consideration to the Debtors with a value that exceeds the
value of the consideration under the applicable Baseline Bid by an
incremental amount that is not less than 0.5% of the initial bid
amount or proposed purchase price for the Taylor Express Assets.
c. Deposit: 10% of the purchase price
d. Auction: If the Debtors timely receive one or more
Qualified Bids (other than the bid of a Designated Stalking Horse
Bidder), the Debtors will conduct an auction on Jan. 22, 2020 at
10:00 a.m. (ET) at DLA Piper LLP (US), 1251 Avenue of the Americas,
New York, New York 10020-1104 (or at such other location as the
Debtors may designate upon written notice to all parties entitled
to participate in the auction under the Bidding Procedures).
e. Bid Increments: $100,000
f. Sale Hearing: Jan. 30, 2020 at 2:30 p.m. (ET)
g. Sale Objection Deadline: Jan. 23, 2020 at 4:00 p.m. (ET)
h. Bid Protections: Pursuant to the Bidding Procedures, in the
event any Designated Stalking Horse Bidder is not the Successful
Bidder for the subject Taylor Assets (or otherwise does not
purchase the subject Taylor Assets as a Backup Bidder), the
Designated Stalking Horse Bidder may be provided an expense
reimbursement for its actual, reasonable and documented expenses
not to exceed 1.5% of the Designated Stalking Horse Bidder's
Purchase Price and a break-up fee in an amount not to exceed 3% of
the Designated Stalking Horse Bidder's Purchase Price.
i. The Debtors will permit credit bidding pursuant to section
363(k) of the Bankruptcy Code.
Not later than three business days after entry of the Order, the
Debtors will cause: (a) Notice of Auction and Sale Hearing to the
Notice Parties; and (b) electronic notice of the Motion, the Order,
and the Notice of Auction and Sale Hearing to be posted on (i) the
Court's website (http://www.deb.uscourts.gov)and (ii) the case
website maintained by the Debtors' claims and noticing agent, KCC,
(http://www.kccllc.net/Celadon).
Not later than three business days after entry of the Order, the
Debtors will serve the Notice of Potential Assumption on all
non-Debtor parties to the executory contracts and unexpired leases.
The Assumption Objection Deadline is Jan. 23, 2020 at 4:00 p.m.
(ET).
No later than five calendar days prior to the Closing, the Debtors
will serve a notice identifying the executory contracts and
unexpired leases that will be assumed and assigned to any
Designated Stalking Horse Bidder or Successful Bidder, as
applicable. Any Designated Stalking Horse Bidder or Successful
Bidder, as applicable, may determine to exclude any executory
contract or unexpired lease from the list of Taylor Assets, in
accordance with the applicable asset purchase agreement.
The form of notices attached to the Order as Exhibit 3, Exhibit 4,
and Exhibit 5 are approved in their entirety.
Subject to the expiration of the Designation Notice Period or the
resolution by the Court of any timely filed objection to the
Debtors’ designation of a Designated Stalking Horse Bidder, the
Bid Protections, as set forth in the Bidding Procedures, are
expressly approved, and the Debtors are authorized and directed to
promptly pay, as they become due, any amounts owed to the
Designated Stalking Horse Bidder, if any, on account of such Bid
Protections, in accordance with the Bidding Procedures.
The requirements of Bankruptcy Rule 6004(a) are waived.
Notwithstanding the possible applicability of Bankruptcy Rule
6004(h), the terms and provisions of this Order will be immediately
effective and enforceable upon its entry.
A copy of the Form APA and the Bidding Procedures is available at
https://tinyurl.com/tcmkyus from PacerMonitor.com free of charge.
About Celadon Group
Celadon Group, Inc. -- https://celadontrucking.com/ -- is a North
American truckload freight transportation company, primarily
providing point-to-point shipping, warehousing, supply chain
logistics, tractor leasing and other transportation and logistics
services for major customers throughout North America.
Celadon Group and 25 affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-12606) on
Dec. 8, 2019. As of Dec. 2, 2019, the Debtors disclosed $427
million in assets and $391 million in liabilities.
Judge Karen B. Owens oversees the cases.
The Debtors tapped DLA Piper LLP (US) as bankruptcy counsel;
Scudder Law Firm, P.C., L.L.O. as special counsel; Alixpartners,
LLP as financial advisor; and Kurtzman Carson Consultants, LLC as
notice, claims and balloting agent and administrative advisor.
CELADON GROUP: Jan. 22 Auction of All Remaining Assets Set
----------------------------------------------------------
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware authorized the bidding procedures of Celadon Group,
Inc. and its affiliated debtors in connection with the auction sale
of substantially all remaining assets.
Subject to the expiration of the Designation Notice Period or the
resolution by the Court of any timely filed objection to the
Debtors’ designation of a Designated Stalking Horse Bidder, the
Debtors, in consultation with the Consultation Parties, are
authorized to designate one or more Designated Stalking Horse
Bidders and grant Bid Protections, without further order of the
Court.
The Debtors' template Asset Purchase Agreement is approved.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Jan. 20, 2020 at 4:00 p.m. (ET)
b. Initial Bid: Each Bid must clearly set forth the purchase
price to be paid. With respect to any Remaining Assets that are
the subject of a Designated Stalking Horse Bidder's bid, the Bid
must propose a Purchase Price for the subject Remaining Assets,
including any assumption of liabilities, that exceeds the value of
such bid, plus the Bid Protections, plus an amount at least greater
than 0.5% of the initial bid amount or proposed purchase price, as
determined one week prior to the Bid Deadline in consultation with
the Consultation Parties.
c. Deposit: Not less than 10% of the aggregate Purchase Price
set forth in the Bid
d. Auction: The Auction, if necessary, will be conducted on
Jan. 22, 2020 at 10:00 a.m. (ET) at the offices of DLA Piper LLP
(US), 1251 Avenue of the Americas, New York, New York 10020-1104,
or at such other time and location as designed by the Debtors.
e. Bid Increments: To be announced
f. Sale Hearing: Jan. 30, 2020 at 2:30 p.m. (ET)
g. Sale Objection Deadline: Jan. 23, 2020 at 4:00 p.m. (ET)
h. Bid Protections: Pursuant to the Bidding Procedures, in the
event any Designated Stalking Horse Bidder is not the Successful
Bidder for the subject Taylor Assets (or otherwise does not
purchase the subject Taylor Assets as a Backup Bidder), the
Designated Stalking Horse Bidder may be provided an expense
reimbursement for its actual, reasonable and documented expenses
not to exceed 1.5% of the Designated Stalking Horse Bidder's
Purchase Price and a break-up fee in an amount not to exceed 3% of
the Designated Stalking Horse Bidder's Purchase Price.
i. The Debtors will permit credit bidding pursuant to section
363(k) of the Bankruptcy Code.
Not later than three business days after entry of the Order, the
Debtors will cause: (a) Notice of Auction and Sale Hearing to the
Notice Parties; and (b) electronic notice of the Motion, the Order,
and the Notice of Auction and Sale Hearing to be posted on (i) the
Court's website (http://www.deb.uscourts.gov)and (ii) the case
website maintained by the Debtors' claims and noticing agent, KCC,
(http://www.kccllc.net/Celadon).
Not later than three business days after entry of the Order, the
Debtors will serve the Notice of Potential Assumption on all
non-Debtor parties to the executory contracts and unexpired leases.
The Assumption Objection Deadline is Jan. 23, 2020 at 4:00 p.m.
(ET).
No later than five calendar days prior to the Closing, the Debtors
will serve a notice identifying the executory contracts and
unexpired leases that will be assumed and assigned to any
Designated Stalking Horse Bidder or Successful Bidder, as
applicable. Any Designated Stalking Horse Bidder or Successful
Bidder, as applicable, may determine to exclude any executory
contract or unexpired lease from the list of Taylor Assets, in
accordance with the applicable asset purchase agreement.
The form of notices attached to the Order as Exhibit 3, Exhibit 4,
and Exhibit 5 are approved in their entirety.
Subject to the expiration of the Designation Notice Period or the
resolution by the Court of any timely filed objection to the
Debtors’ designation of a Designated Stalking Horse Bidder, the
Bid Protections, as set forth in the Bidding Procedures, are
expressly approved, and the Debtors are authorized and directed to
promptly pay, as they become due, any amounts owed to the
Designated Stalking Horse Bidder, if any, on account of such Bid
Protections, in accordance with the Bidding Procedures.
The De Minimis Asset Sale Procedures are approved, as set.
With regard to sales or transfers of the De Minimis Assets in any
individual transaction or series of related transactions to a
single buyer or group of related buyers with an aggregate selling
price equal to or less than $100,000:
i. The Debtors are authorized to consummate such
transaction(s) if they determine in the reasonable exercise of
their business judgment that such sales or transfers are in the
best interest of their estates without further order of the Court
or notice to any party; and
ii. Any such transaction(s) will be free and clear of all
liens, with such liens attaching only to the sale or transfer
proceeds, if any.
iii. The Debtors will give pthe De Minimis Sale Notice to
the De Minimis Notice Parties.
iv. The content of the De Minimis Sale Notice will
consist of (a) identification of the De Minimis Assets being sold
or transferred, (b) identification of the purchaser or transferee
of the assets and their relationship (if any) to the Debtors, (c)
the selling price, (d) the significant terms of the sale or
transfer agreement, including, but not limited to, any payments to
be made by the Debtors on account of commission fees to agents,
brokers, auctioneers, and liquidators, and (e) the intended use of
the proceeds from such sale or transfer;
v. If no written objections from the De Minimis Notice
Parties are filed with the Court within seven days after service of
such De Minimis Sale Notice, then the Debtors are authorized to
immediately consummate such sale or transfer;
vi. If any De Minimis Notice Party files a written
objection to any such sale or transfer with the Court within seven
days after service of such De Minimis Sale Notice, then the
relevant De Minimis Asset will only be sold or transferred upon
submission of a consensual form of order resolving the objection as
between the Debtors and the objecting party or further order of the
Court after notice and a hearing.
The Debtors will provide a written report or reports, within 30
days after each calendar quarter (to the extent De Minimis Asset
Sales were consummated for the relevant quarter), concerning any
such sales or transfers made in accordance with the relief
requested in the Motion (including the names of the purchasing
parties and the types of amounts of the sales) to the De Minimis
Notice Parties and those parties requesting notice under Bankruptcy
Rule 2002.
Notwithstanding anything to the contrary in the Order or the De
Minimis Asset Sale Procedures, none of the Debtors' insurance
policies and/or any related agreements will be sold, assigned, or
otherwise transferred pursuant to any De Minimis Asset Sale except
in compliance with the terms of such insurance policies, any
related agreements, and/or applicable non-bankruptcy law.
The requirements of Bankruptcy Rule 6004(a) are waived.
Notwithstanding the possible applicability of Bankruptcy Rule
6004(h), the terms and provisions of this Order will be immediately
effective and enforceable upon its entry.
The Debtors are authorized to take all actions necessary to
effectuate the relief granted in the Interim Order.
A copy of the Form APA and the Bidding Procedures is available at
https://tinyurl.com/wkjvzd9 from PacerMonitor.com free of charge.
About Celadon Group
Celadon Group, Inc. -- https://celadontrucking.com/ -- is a North
American truckload freight transportation company, primarily
providing point-to-point shipping, warehousing, supply chain
logistics, tractor leasing and other transportation and logistics
services for major customers throughout North America.
Celadon Group and 25 affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-12606) on
Dec. 8, 2019. As of Dec. 2, 2019, the Debtors disclosed $427
million in assets and $391 million in liabilities.
Judge Karen B. Owens oversees the cases.
The Debtors tapped DLA Piper LLP (US) as bankruptcy counsel;
Scudder Law Firm, P.C., L.L.O. as special counsel; Alixpartners,
LLP as financial advisor; and Kurtzman Carson Consultants, LLC as
notice, claims and balloting agent and administrative advisor.
CENTRO GROUP: Seeks to Hire Pavento Ratcliffe as Accountant
-----------------------------------------------------------
Centro Group, LLC, and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the Southern District of Florida to
employ Pavento, Ratcliffe, Renzi & Co., LLC as their accountant.
Pavento Ratcliffe will prepare the Debtors' 2018 federal and
multi-state corporation income tax returns and perform any
bookkeeping necessary for the preparation of the income tax
returns.
Pavento Ratcliffe's standard hourly rates are:
Partners $175-$200
Tax Manager $125
Accounting Staff $85-$95
John A. Ratcliffe, CPA, managing member of Pavento Ratcliffe,
disclosed in a court filing that his firm does not hold any
interest adverse to the Debtor or its bankruptcy estate.
The firm can be reached at:
John A. Ratcliffe, CPA
Pavento, Ratcliffe, Renzi & Co., LLC
391 East Central Street, Unit 8A
Franklin, MA, 02038
Phone: (508)553-3091
Fax: (508)553-3092
About Centro Group
Centro Group, LLC is a full-service, wholesale group benefits,
human capital, and technology service consulting firm committed to
positioning their clients for future growth. It is headquartered in
Miami, Fla., with additional offices in the Boston and St. Louis
areas.
Centro Group and ProHCM Holdings, Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case Nos.
18-23155 and 18-23156) on Oct. 23, 2018. In the petitions signed by
CEO Joseph Markland, Centro Group estimated assets of less than
$50,000 and liabilities of $1 million to $10 million. ProHCM
disclosed $4,284,714 in assets and $4,238,898 in liabilities. Judge
Jay A. Cristol oversees the cases.
The Debtors tapped Shraiberg, Landau & Page, P.A., as their legal
counsel; and James F. Martin of ACM Capital Partners, as their
chief restructuring officer.
On Nov. 9, 2018, the U.S. Trustee for Region 21 appointed an
official committee of unsecured creditors in Centro Group's case.
The committee tapped Kozyak, Tropin & Throckmorton, LLP as its
legal counsel.
CHESAPEAKE ENERGY: S&P Upgrades ICR To 'CCC' Post Exchanges
-----------------------------------------------------------
S&P Global Ratings revised its issuer credit rating on Oklahoma
City-based oil and gas exploration and production (E&P) company
Chesapeake Energy Corp. to 'CCC' from 'SD'.
Chesapeake Energy has already completed the below-par debt exchange
of $3.22 billion aggregate principal amount of senior unsecured
debt, bringing the total principal amount of term debt exchanged or
repaid since the beginning of 2019 to nearly $6.4 billion.
S&P revised the issue-level ratings on the senior notes involved in
the distressed exchanges to 'CCC-' (recovery rating: '5') from 'D',
and on the preferred stock involved in the exchanges to 'C' from
'D'.
S&P lowered the issue-level ratings on the senior unsecured notes
not involved in the distressed exchanges to 'CCC-' (recovery
rating: '5') from 'B+' (recovery rating: '4') and removing the
ratings from CreditWatch, where it placed them with negative
implications on September 23, 2019.
The rating agency affirmed the 'B-' and '1' recovery ratings on the
company's $1.5 billion first-lien last-out term loan due 2024 and
its $2.3 billion second-lien notes due 2025.
S&P's 'CCC' issuer credit rating on Chesapeake reflects th
possibility of additional distressed exchanges over the next 12
months, given the company's still high debt burden and current bond
trading levels. Since the beginning of 2019, Chesapeake has
exchanged or repaid about $6.4 billion of debt, including the
majority of the Brazos Valley Longhorn LLC (BVL; formerly WildHorse
Resources LLC) notes due 2025 and the BVL credit facility. The debt
was exchanged for new debt, equity or cash, in some cases at par
value and in some cases below par. The company has now essentially
exhausted the amount of secured debt allowed under its existing
credit facility – absent further waivers or amendments, and has
hit the 20% private equity issuance threshold allowed by the NYSE
without shareholder approval (although this could "reset" later
this year). However, with its longer-dated debt still trading below
0.60, S&P believes the company could consider additional debt
exchanges the rating agency would view as distressed over the next
12 months.
The negative outlook reflects S&P's view that Chesapeake could
consider entering into additional debt exchanges that the rating
agency would view as distressed over the next 12 months.
"We could downgrade the company if it announced a debt exchange or
restructuring we viewed as distressed," S&P said.
"We could consider an upgrade once we believe the company would no
longer consider a debt exchange we would view as distressed. This
would most likely occur if the company were able to improve
liquidity, potentially through asset sales," the rating agency
said.
COLLASPE IMPOSSIBLE: Proposes Sale of Lakewood Property
-------------------------------------------------------
Judge Timothy W. Dore of the U.S. Bankruptcy Court for the Western
District of Washington authorized Collaspe Impossible, Inc.'s to
set its proposed sale of the real property located at 7238
Interlaaken Ave. SW, Lakewood, Washington for Jan. 3, 2020 at 9:30
a.m. with responses due by 12:00 p.m. on Jan. 2, 2020.
The Debtor will serve notice of the motion to sell on Dec. 20,
2019.
The relief is sought because the Court has continued a motion by
the US Trustee to dismiss or convert the case to Jan. 3, 2019, and
the Debtor has already noted for hearing its motion to borrow funds
and dismiss the case for that date as well.
About Collaspe Impossible
Collaspe Impossible Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Case No. 19-11651) on May 1,
2019. At the time of the filing, the Debtor estimated assets of
less than $1 million and liabilities of less than $500,000. The
case is assigned to Judge Timothy W. Dore. Emerald City Law Firm
PC is the Debtor's legal counsel.
CORFISH CREATIVE: Unsecureds to Get What's Left of Sale Proceeds
----------------------------------------------------------------
CorFish Creative, LLC, filed a combined plan of liquidation and
disclosure statement.
The Debtor's asset consisted of its furniture, fixtures, and
equipment and inventory owned by Debtor and used in the operation
of the business commonly known as "Pop Shop" and the goodwill
associated with that business. The Debtor's asset were converted
into cash at the closing of the sale conducted pursuant to the sale
order in the sum of $520,000, subject to certain adjustments made
pursuant to the Debtor's Contract of Sale with its buyer, PSC1,
LLC.
The Debtor's asset currently consist of cash in the sum of
$17,788.02 representing the proceeds of sale net of payments to
Debtor's broker, certain payments made to NJDiv, payments made to
Debtor's secured creditors and certain administrative expenses
associated with the period between the Petition Date and the Sale
and certain statutory fees.
Under the Plan, Class 1 CorFish's general unsecured claims,
totaling $252,272.21, are impaired. Each holder of an allowed
unsecured claim shall receive a pro rata distribution on account of
claims from fund representing the proceeds of Debtor's asset sale,
if any, remaining after distributions made on account of
Administrative Expenses and Priority Tax Claims. Distributions on
account of allowed unsecured claims, if any, shall be made in a
single installment on the Effective Date, in full satisfaction of
such claims.
The Disclosure Statement did not provide for an estimated recovery
for holders of unsecured claims.
A full-text copy of the Small Business Debtor's Combined Plan of
Liquidation and Disclosure Statement dated Dec. 30, 2019, is
available at https://tinyurl.com/v7s88o4 from PacerMonitor.com at
no charge.
Attorneys for the Debtor:
Ira R. Deiches
DEICHES & FERSCHMANN
25 Wilkins Avenue
Haddonfield, NJ 08033
Tel: (856)428-9696
E-mail: ideiches@deicheslaw.com
About Corfish Creative
Corfish Creative, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D.N.J. Case No. 19-16756) on April 3, 2019. Judge Jerrold
N. Poslusny Jr. oversees the case. The Debtor hired Deiches &
Ferschmann as its legal counsel.
CR COMMERCIAL: Unsecureds Cut to $1.3M, To Be Paid for 89 Months
----------------------------------------------------------------
Debtor CR Commercial Contractors, Inc. filed an Amended Disclosure
Statement and an Amended Plan of Reorganization.
An Amended Schedule E/R was filed on Oct. 15, 2019 reducing the
general unsecured claims to be paid under the Plan from
$1,703,308.59 to approximately $1,304,628.40. This reduction will
greatly assist the Debtor in fulfilling its obligations under the
Plan.
All allowed and approved claims under Class 11 will be paid in full
from all funds available for distribution as set forth in the
Disbursement Schedule. Interest in this Class shall not be paid
unless required by law. It is anticipated that payments under
this Class shall begin in the first month of the Plan, disbursed on
a pro rata basis. The maximum length of the payout under the Plan
shall not exceed 89 months (7.5 years).
However, Debtor does anticipate that certain creditors in Class 11
may be paid by third parties. In that event, the duration of the
Plan may be shortened from what is currently anticipated.
Holders of general unsecured claims no greater than $5,000 who
elects the treatment as convenience claimant will receive 20% of
the allowed and approved claim on the Effective Date of the Plan.
On Nov. 20, 2019, the Debtor filed an Amendment to Schedule F
(Docket Number 130). This Amendment added to Schedule F two
"disputed, contingent and unliquidated" claims. Each claim asserts
a potential cause of action against the Debtor for personal injury.
The Debtor disputes liability to these claimants, however, said
claimants are free to pursue alleged claims against any third-party
that may be liable. This includes but is not limited to the
Debtor's insurance provider(s) who may or may not defend and/or
settle with such claimants. The claimants are Joshua Fordyce,
Dorthea Joey and Lloyd Day. These claimants shall not be otherwise
provided for in this Amended Plan and are not entitled to vote
unless otherwise allowed by the Court.
A full-text copy of the amended disclosure and an amended plan
dated December 26, 2019, is available at
https://tinyurl.com/rz2u6bg from PacerMonitor.com at no charge.
The Debtor is represented by:
Allan D. New Delman, Esq. (004066)
ALLAN D. NEWDELMAN, P.C.
80 East Columbus Avenue
Phoenix, Arizona 85012
(602) 264-4550
anewdelman@adnlaw.net
About CR Commercial Contractors
Based in Phoenix, Arizona, CR Commercial Contractors, Inc.
--http://crcontractors.com/-- a privately held company that offers
general contractor services, filed a voluntary Chapter 11 petition
(Bankr. D. Ariz. Case No. 19-02937) on March 18, 2019.
In the petition signed by COO Douglas R. Terrill, the Debtor
disclosed total assets of $881,104 and total liabilities of
$2,268,945. The case is assigned to Judge Eddward P. Ballinger Jr.
The Debtor is represented by Allan D. Newdelman, Esq., Phoenix,
Ariz.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
D J HARCEG TRUCKING: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: D J Harceg Trucking LLC
1021 Pierce Road
Southport, NC 28461
Business Description: D J Harceg Trucking LLC is a privately held
transportation company in Southport, North
Carolina.
Chapter 11 Petition Date: January 21, 2020
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 20-00254
Judge: Hon. David M. Warren
Debtor's Counsel: George Mason Oliver, Esq.
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
PO Box 1548
New Bern, NC 28563
Tel: 252-633-1930
E-mail: george@olivercheek.com
Total Assets: $1,234,583
Total Liabilities: $1,935,513
The petition was signed by David Harceg, managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/CmHIgg
DANCEL LLC: May Continue Using Cash Collateral Through March 31
---------------------------------------------------------------
Judge Scott H. Gan of the U.S. Bankruptcy Court for the District of
Arizona authorized Dancel, LLC's continued use of cash collateral
to pay expenses in the ordinary course of business through March
31, 2020.
Each creditor with a security interest in cash collateral will have
a perfected post-petition lien against cash collateral to the same
extent and with the same validity and priority as the prepetition
lien, without the need to file or execute any document as may
otherwise be required under applicable non-bankruptcy law.
The Debtor will make adequate protection payments to Washington
Business Bank in the amount of $1,500 per month for three months.
WBB will also retain a continuing and perfected, valid and
enforceable first lien and security interest in the Personal
Property Collateral.
Furthermore, the Debtor will make adequate protection payments to
New Mexico Bank & Trust in the amount of $3,000 per month for three
months. NMBT will retain a continuing and perfected, valid and
enforceable first lien and security interest in the Personal
Property Collateral. The Debtor will continue to maintain insurance
on Jack in the Box #1261, which is located at 3501 New Mexico State
Highway 528 NW, Albuquerque, Bernalillo County, New Mexico, and
provide proof of insurance to NMBT's counsel.
About Dancel LLC
Dancel, L.L.C., owns and operates restaurants with multiple
locations in Bernalillo County, N.M. Dancel filed a voluntary
Chapter 11 petition (Bankr. D. Ariz. Case No. 19-10446) on Aug. 20,
2019. In the petition signed by Laura Olguin, manager, the Debtor
was estimated to have $500,000 to $1 million in assets and $1
million to $10 million in liabilities. The case is assigned to
Judge Scott H. Gan. Charles R. Hyde, Esq., at The Law Offices of
C.R. Hyde, PLC, serves as the Debtor's counsel.
DEALER TIRE: S&P Cuts ICR to 'B-' on Dent Wizard Acquisition
------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Dealer Tire
LLC to 'B-' from 'B' and its issue-level ratings on the company's
first-lien term loan to 'B-' from 'B'.
The downgrade reflects Dealer Tire LLC's elevated leverage pro
forma for the acquisition of Dent Wizard, which was partially
financed with a $415 million incremental first-lien term loan.
With Dealer Tire's incremental debt issuance, S&P expects debt to
EBTIDA to remain well above 6.0x in the next couple of years and
free operating cash flow (FOCF) to debt to remain below 3%. While
the company believes it can grow the dent removal business from a
primarily back office service for used cars to a front office
service to dealership customers, the company will have to
demonstrate the transferability of the business model. S&P expects
very modest synergies from initiatives such as paint and key
procurement.
The stable outlook on Dealer Tire reflects S&P's expectation that
the company will generate free cash flow in 2020, maintain market
share, and continue to have a sustainable capital structure and
adequate liquidity.
"We could raise the rating on Dealer Tire if it sustainably reduces
debt to EBITDA below 6.0x while sustaining an FOCF-to-debt ratio of
at least 3%-5%. This could happen if the company uses its
dealership relationships to grow Dent Wizard's revenues much faster
than expected while maintaining its dealer channel share and
maintaining margins at or better than current levels," S&P said.
"We could lower our rating on Dealer Tire if EBITDA margins fall to
7% from current levels or revenues fall significantly, causing for
instance negative FOCF for multiple quarters, thereby draining
liquidity or pushing leverage to unsustainable levels. This could
occur due to a loss of a customer, increased competition, or
operational difficulties," the rating agency said.
DO@KING PLOW ARTS: Seeks to Hire Rountree Leitman as Legal Counsel
------------------------------------------------------------------
DO@King Plow Arts Center LLC seeks authority from the U.S.
Bankruptcy Court for the Northern District of Georgia to hire
Rountree, Leitman & Klein, LLC as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor of its powers and duties in the
management of its property;
b. prepare schedules, applications, motions and other legal
papers;
c. examine claims of creditors; and
d. prepare a disclosure statement and plan of reorganization.
Rountree Leitman's standard hourly rates are:
William Rountree Attorney $475
David Klein Attorney $425
Hal Leitman Attorney $425
Alexandra Dishun Attorney $425
Benjamin R. Keck Attorney $375
Alice Blanco Attorney $350
Doug Ford Of Counsel $400
Darius Lamonte Law Clerk $200
Brian Aton Law Clerk $175
Sharon Wenger Paralegal $195
Catherin Smith Paralegal $150
Megan Winokur Paralegal $150
Yasmi Alamin Paralegal $150
The Debtor paid a retainer of $15,475 to Rountree Leitman.
William Rountree, Esq., a partner at Rountree Leitman, attests that
his firm has no connection with the Debtor's creditors or any other
"party in interest."
The firm can be reached through:
William A. Rountree, Esq.
Rountree, Leitman & Klein, LLC
2800 North Druid Hills Road
Building B, Suite 100
Atlanta, GA 30329
Phone: (404) 584-1244
Fax: (404) 581-5038
Email: wrountree@randllaw.com
About DO@King Plow Arts Center LLC
DO@King Plow Arts Center LLC is a commercial, performing and visual
arts center in Atlanta.
DO@King Plow Arts Center sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 20-60066) on Jan. 2,
2020. In the petition signed by Nacasha Leca Ruffin, authorized
representative, the Debtor estimated $1 million to $10 million in
both assets and liabilities. William A. Rountree, Esq. at Rountree
Leitman & Klein, LLC, is the Debtor's legal counsel.
DUNDEE PIKCO: Chapter 15 Case Summary
-------------------------------------
Chapter 15 Debtor: Dundee Pikco Limited
Repton House, Bretby Business Park
Ashby Road Number
Burton-upon-Trent, Staffordshire DE15 0YZ
England
Foreign Proceeding: Proceeding in the High Court of Justice
of England and Wales
(Part 26 of the Companies Act)
Chapter 15 Petition Date: January 20, 2020
Court: United States Bankruptcy Court
District of Delaware
Case No.: 20-10114
Foreign Representative: Michael Thomas
U.S. Counsel: Christopher Ward, Esq.
POLSINELLI PC
222 Delaware Avenue, Suite 1101
Wilmington, DE 19801
Tel: (302) 252-0920
E-mail: CWard@polsinelli.com
London
Counsel: Weil, Gotshal & Manges (London) LLP
Hayley Lund
110 Fetter Lane, London EC4A 1AY
E-mail: Hayley.Lund@weil.com
Estimated Assets: Unknown
Estimated Debts: Unknown
E.O.S. RENTALS: Seeks to Hire Ritchie Bros. as Auctioneer
---------------------------------------------------------
E.O.S. Rentals LLC seeks approval from the United States Bankruptcy
Court for the District of New Mexico to employ Ritchie Bros.
Auctioneers to conduct an online auction for its assets.
The assets consist of equipment, which the Debtor used to operate
its business in Lea County, N.M.
Ritchie Bros. will get a 10 percent commission on the gross sale
price of each item, with a minimum fee of $100 per lot.
Robert Olmos, Ritchie Bros.' manager, attests that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Robert Olmos
Ritchie Bros. Auctioneers
6050 Azle Avenue
Lake Worth, TX
Phone: +1-505-835-6039
Mobile: +1-575-420-6192
Fax: +1-505-835-6039
Email: rolmos@ritchiebros.com
About E.O.S. Rentals
Based in Hobbs, N.M., E.O.S. Rentals LLC, an equipment rental and
leasing company, filed a voluntary Chapter 11 petition (Bankr.
D.N.M. Case No. 17-12024) on Aug. 4, 2017. At the time of filing,
the Debtor had estimated assets of less than $50,000 and
liabilities of between $1 million and $10 million.
Judge Robert H. Jacobvitz oversees the case. Giddens, Gatton &
Jacobus, P.C. is the Debtor's legal counsel.
EASTERN UNIVERSITY: S&P Lowers 2012 Revenue Bond Rating to 'BB'
---------------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+'
on Delaware County Authority, Pa.'s series 2012 revenue bonds,
issued for Eastern University. The outlook is stable.
"The rating downgrade reflects our view of the university's
continued enrollment pressure, with material declines in
full-time-equivalent enrollment over the recent past, and a
precipitous drop in applications over the past year," said S&P
Global Ratings credit analyst Phillip Pena.
"In our opinion, given continual enrollment declines that have not
yet stabilized, operating margins and available resources could
weaken further," Mr. Pena added. "Although the university was able
to control and cut expenses such that operations were relatively
balanced at the end of fiscal 2019, we believe that long-term
financial sustainability will be subject to stabilization of
full-time-equivalent enrollment."
The stable outlook reflects S&P's view that over the next year,
enrollment will continue to see modest pressure, but the university
will maintain solid retention and matriculation rates as it
implements strategies to combat enrollment declines. The stable
outlook also reflects S&P's view that the university will continue
to produce slightly negative to break-even margins while
maintaining its balance sheet metrics.
Eastern University had $30.6 million of total long-term debt as of
June 30, 2019.
ED3 CONSULTANTS: Seeks to Hire Love Scherle as Accountant
---------------------------------------------------------
ED3 Consultants, Inc. seeks authority from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to employ Love,
Scherle & Bauer, P.C. as its accountant.
The Debtor requires Love Scherle to:
(a) provide financial and accounting advice;
(b) assist in the preparation of tax returns, monthly
operating reports and disclosure statement;
(d) respond to the Internal Revenue Service tax claims,
including testifying in court, if necessary; and
(e) perform other accounting services in connection with the
Debtor's Chapter 11 case.
Carl Bauer, a certified public accountant employed with Love
Scherle, attests that the firm neither holds nor represents any
interest adverse to the Debtor and its bankruptcy estate.
The firm can be reached at:
Carl R. Bauer, CPA
Love, Scherle & Bauer, P.C.
310 Grant Street, Suite 1020
Pittsburgh, PA 15219-2295
Phone: +1 412-281-8270
About ED3 Consultants
Based in Canonsburg, Pa., ED3 Consultants Inc. is a small
woman-owned business staffed with engineering, architectural and
technical specialists.
ED3 Consultants filed a voluntary Chapter 11 petition (Bankr. W.D.
Pa. Case No. 19-24455) on Nov. 14, 2019. In the petition signed by
Denise L. Palmer, president, the Debtor was estimated to have
$500,001 to $1 million in assets and $1,000,001 to $10 million in
liabilities. Judge Thomas P. Agresti oversees the case. Guy C.
Fustine, Esq., at Knox McLaughlin Gornall & Sennett, P.C., is the
Debtor's counsel.
ELAS LLC: Feb. 6, 2020 Plan Confirmation Hearing Set
----------------------------------------------------
The hearing to consider confirmation of the Amended Chapter 11 Plan
of Reorganization of Debtor Elas, LLC d/b/a Calnopoly, LLC, is set
for Feb. 6, 2020, at 1:00 p.m., before the Honorable Victoria S.
Kaufman, U.S. Bankruptcy Judge, located at 21041 Burbank Boulevard,
Courtroom 301, Woodland Hills, CA 91367.
Jan. 17, 2020, is the deadline to file any objections to
confirmation of Debtor's Plans.
Jan. 17, 2020, is the deadline for interested parties to return
ballots accepting or rejecting the debtor’s Plan.
Jan. 27, 2020, is the deadline for Debtor to file and serve
Debtor's brief and evidence, including declarations and the
returned ballots, in support of confirmation, and in reply to any
objections to confirmation.
About Elas LLC
Elas, LLC, owns 100% interest in two real estate properties located
in Los Angeles, California having a total current value of $1.98
million.
Elas, LLC, doing business as Calnopoly, LLC, filed a Chapter 11
petition (Bankr. C.D. Cal. Case No. 18-12494) on Oct. 8, 2018. The
petition was signed by Latrice Allen, managing member. At the time
of filing, the Debtor disclosed $1,986,300 in total assets and
$1,026,878 in liabilities. The case is assigned to Judge Victoria
S. Kaufman. The Debtor is represented by Anthony Obehi Egbase,
Esq. of A.O.E Law & Associates, APC.
ELITE EQUIPMENT: Seeks to Hire Eric A. Liepins as Legal Counsel
---------------------------------------------------------------
Elite Equipment Rental and Sales, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to hire Eric A.
Liepins, P.C. as its legal counsel.
The firm will advise the Debtor of its powers and duties under the
Bankruptcy Code and will provide other legal services in connection
with its Chapter 11 case.
The firm's hourly rates are:
Eric Liepins, Esq. $275
Paralegals/Legal Assistants $30 - $50
The Debtor paid the firm a retainer of $5,000, plus the filing fee
of $1,717.
Eric Liepins, Esq., disclosed in court filings that his firm does
not represent any interest adverse to the Debtor's bankruptcy
estate.
The firm can be reached through:
Eric A. Liepins, Esq.
Eric A. Liepins, P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Telephone: (972) 991-5591
Telecopier: (972) 991-5788
Email: eric@ealpc.com
About Elite Equipment Rental
and Sales, LLC
Elite Equipment Rental and Sales, LLC is a privately held company
in the industrial and construction heavy equipment rental
business.
Elite Equipment Rental and Sales filed its voluntary Chapter 11
petition (Bankr. N.D. Tex. Case No. 20-60002) on Jan. 9, 2020. In
the petition signed by James Langley, managing member, the Debtor
estimated $50,000 in assets and $1 million to $10 million in
liabilities. Eric A. Liepins, P.C., is the Debtor's legal counsel.
EQT CORP: Egan-Jones Lowers Senior Unsecured Rating to BB+
----------------------------------------------------------
Egan-Jones Ratings Company, on January 16, 2020, downgraded the
foreign currency senior unsecured rating on debt issued by EQT
Corporation to BB+ from BBB-.
EQT Corporation is a company engaged in hydrocarbon exploration and
pipeline transport. It is headquartered in EQT Plaza in Pittsburgh,
Pennsylvania.
EQUINOX HOLDINGS: S&P Downgrades ICR to 'B-' on Elevated Leverage
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Equinox
Holdings Inc. to 'B-' from 'B' and its issue-level rating on the
company's secured first-lien credit facility to 'B' from 'B+' with
a '2' recovery rating.
S&P also lowered its issue-level rating on the company's secured
second-lien term loan to 'CCC' from 'CCC+' with a '6' recovery
rating.
"The downgrade reflects our belief that Equinox' leverage will
remain elevated and very high in 2020, which makes the company more
vulnerable than we previously expected to an unexpected downturn in
the economy or an inadvertent operating misstep. Equinox
experienced a material decline in our measure of EBITDA due to
increased operating expenses and strategic investment spending that
exceeded our expectations, and incremental debt, in 2019. As a
result, our measure of lease-adjusted debt to EBITDA increased in
2019 and we believe it will remain elevated in 2020," the rating
agency said.
The outlook is stable despite very high leverage because of
adequate liquidity in the form of substantial cash balances and
full revolver availability, and S&P's expectation that moderate
consumer spending growth will support comparable club revenue
growth and new clubs will generate incremental revenue in 2020.
Under its base case forecast through 2020, S&P expects adjusted
debt to EBITDA to exceed 9x, well above the 7.5x upgrade threshold
it believes is in line with a one-notch higher rating on Equinox.
"We would consider lowering the rating if operating performance
significantly underperforms our base case forecast such that
adjusted interest coverage falls below 1.5x, or the company
sustains negative free cash flow in a manner that begins to impair
the company's currently adequate liquidity," S&P said.
"We would consider a one-notch upgrade if we believed that
operating lease and guarantee-adjusted debt to EBITDA could be
sustained under 7.5x. An upgrade would also be contingent on our
belief that management would undertake future expansion plans in a
manner that sustains leverage at less than 7.5x," the rating agency
said.
FANSTEEL INC: Deadline to Submit Offers for Property Feb. 12
------------------------------------------------------------
Hilco Real Estate LLC will hold a sale of the former industrial
property of Fansteel Inc. and deadline to submit offer for the
Debtor's property is on Feb. 12, 2020.
The former Fansteel property includes 120,000+ SF of industrial and
office buildings on 90 acres of land and boasts heavy power. It
sits at the interchange of Muskogee Turnpike and East Shawnee
Bypass, amidst an industrial and manufacturing area that includes
companies in the machinery, metal fabrication, rubber products,
food products, and consumer goods businesses. Nearby companies
include Oakley's Terminal, a cargo handling company, and NGL Supply
LLC, a natural gas liquids and crude oil company. The property
also has a rail spur (inactive) with access to the Kansas,
Oklahoma, and Gulf Railroad.
This property is ideally located along the Arkansas River in
Muskogee, Oklahoma, immediately south and adjacent to the Port of
Muskogee. The Muskogee Phoenix estimates there were a total of
658,304 tons moved through the port in 2018. The Tulsa
International Airport is just 45 minutes northwest of the property,
and the Port of Muskogee asserts the airport is within a 2.5 hour
flight of approximately 95% of the U.S. population.
Hilco Real can be reached at:
Hilco Real Estate, LLC
5 Revere Dr., Suite 320
Northbrook, IL 60062
Office: (847) 418-2723
Cell: (847) 436-7321
Jake Soyka
Analyst
Tel: 847-504-3224
Email: jsoyka@hilcoglobal.com
Joel Schneider
Senior Vice President
Tel: 847-418-2723
Email: jschneider@hilcoglobal.com
About Fansteel and Affiliates
Headquartered in Creston, Iowa, Fansteel, Inc., manufactures
aluminum and magnesium castings for the aerospace and defense
industries. Fansteel has four locations in the USA and one in
Mexico and has a workforce of more than 600 employees. Fansteel
generated $87.4 million in revenue in 2015 on a consolidated
basis.
Wellman Dynamics Corporation contributed 67% of Fansteel's sales.
The rest of the sales are generated from Intercast, a division of
Fansteel, and other non-debtor subsidiaries.
Fansteel, Wellman Dynamics, and Wellman Dynamics Machinery &
Assembly, Inc., filed Chapter 11 petitions (Bankr. S.D. Iowa Case
Nos. 16-01823, 16-01825 and 16-01827) on Sept. 13, 2016. The
petitions were signed by Jim Mahoney, CEO. The cases are assigned
to Judge Anita L. Shodeen. The Debtors disclosed total assets of
$32.9 million and total debt of $41.97 million.
The companies tapped Jeffrey D. Goetz, Esq., and Krystal R.
Mikkilineni, Esq., at Bradshaw, Fowler, Proctor & Fairgrave, P.C.,
as counsel; RSM US LLP as tax advisor; Jeffrey Sands and Dorset
Partners, LLC, as business broker; and Mark J. Steger, Esq., at the
Clark Hill Law Firm, as Environmental Counsel.
The companies filed motions to jointly administer the cases
pursuant to Bankruptcy Rule 1015(b), and the court ordered the
joint administration on Oct. 17, 2016. The court subsequently
entered an order on May 24, 2017, vacating its Oct. 17 order and
discontinuing the joint administration of the cases under the lead
case of Fansteel.
On Sept. 23, 2016, the U.S. Trustee for Region 12 appointed an
official committee of unsecured creditors in Fansteel's bankruptcy
case. The committee retained Morris Anderson & Associates, Ltd.,
as financial advisor; and Archer & Greiner, P.C. and Nyemaster
Goode, P.C., as counsel.
In March 2017, the U.S. trustee announced that the unsecured
creditors' committee of Fansteel would no longer serve as the
official committee in its case and that it would be reconstituted
as the official committee of unsecured creditors in the Chapter 11
cases of Wellman Dynamics and Wellman Dynamics Machinery. As of
March 22, 2017, a new creditors' committee has not yet been
appointed in Fansteel's bankruptcy case.
Wellman Dynamics filed a Chapter 11 plan of reorganization and
disclosure statement on Jan. 11, 2017. On May 8, 2017, the
creditors' committee of Wellman Dynamics filed a rival Chapter 11
plan of liquidation for the company.
FAVALORA PROPERTIES: Court Confirms Reorganization Plan
-------------------------------------------------------
The Hon. Jerry A. Brown has approved ordered the Disclosure
Statement and confirmed the Plan of Reorganization filed by
Favalora Properties, LLC.
The Plan filed by the Debtor is CONFIRMED and all transactions or
documents referred to therein or contemplated thereunder or to be
executed and delivered in connection therewith are APPROVED.
The Debtor’s Plan provides for the creation of six classes of
creditors and interests the first two of which are unimpaired
(i.e., Class 1 - Administrative Expenses, and Class 2 - tax claims
of governmental units to the extent they are entitled to priority
under Section 507(a)(8) of the Bankruptcy Code).
Class 1 and Class 2 claims are unimpaired, and the holders of any
Claim in each of these classes are conclusively presumed to accept
the Plan pursuant to Section 1126(f) of the Bankruptcy Code. There
are no Class 3 Claims (i.e., unsecured claims entitled to priority
under section 507 of the Bankruptcy Code other than Priority Tax
Claims). Class 4 of the Plan consists of the secured claim of
Industrial and Mechanical Contractors, Inc. who originally voted to
reject the Plan and has changed its vote to an acceptance of the
Plan.
Class 6 is composed of the membership interest holders in the
Debtor and, as the sole member of the Debtor, i.e., Laurence
Favalora, is retaining his membership interest in the Debtor, the
holder of the only interest in this Class is conclusively presumed
to accept the Plan pursuant to section 1126(f) of the Bankruptcy
Code.
The Debtor is authorized to sell the real (immovable) property
known as Lot 11-B, Airport Industrial Park, 921 Industry Road,
Kenner, LA 70062 (hereinafter the "Kenner Property"), in accordance
with and subject to the provisions of the Plan, at private sale
free and clear of all liens and mortgages pursuant to Section
363(f) of the Bankruptcy Code.
The Debtor is authorized to employ David B. Quinn of Max J. Derbes,
Inc., Realtors, to list and market for sale the Kenner Property in
accordance with that certain Marketing Agreement attached to the
Plan until May 22, 2020.
A full-text copy of the Order Confirming the Plan dated Dec. 20,
2019, is available at https://tinyurl.com/srcsedk from
PacerMonitor.com at no charge.
About Favalora Properties
Favalora Properties, LLC owns and operates the real (immovable)
property bearing municipal address 921 Industry Road, Kenner, LA
70062, which it leases to Favalora Constructors, Inc., a company
which is also owned and operated by Laurence Favalora.
Favalora Properties sought Chapter 11 protection (Bankr. E.D. La.
Case No. 19-10953) on April 9, 2019. Darryl T. Landwehr, Esq., at
LANDWEHR LAW FIRM, is the Debtor's counsel.
FENER LLC: Case Summary & 4 Unsecured Creditors
-----------------------------------------------
Debtor: Fener, LLC
801 S. Broadway
Baltimore, MD 21231
Business Description: Fener LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: January 20, 2020
Court: United States Bankruptcy Court
District of Maryland
Case No.: 20-10720
Judge: Hon. Robert A. Gordon
Debtor's Counsel: Steven L. Goldberg, Esq.
MCNAMEE HOSEA
6411 Ivy Lane, Ste. 200
Greenbelt, MD 20770
Tel: (301) 441-2420
E-mail: sgoldberg@mhlawyers.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rustem Keskin, member.
A copy of the petition containing, among other items, a list of the
Debtor's four unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/f8Hxxt
FORESTAR GROUP: S&P Raises Unsecured Notes Rating to 'B+'
---------------------------------------------------------
S&P Global Ratings said it is raising its issue-level rating on
Forestar Group Inc.'s 8% senior unsecured notes to 'B+' from 'B',
one notch higher than its issuer credit rating. At the same time,
S&P revised its recovery rating to '2' from '3', indicating its
expectation for substantial (70%-90%; rounded estimate: 85%)
recovery in the event of a payment default.
The improved issue-level and recovery ratings are primarily because
of the increased realizable value from the company's inventory
(land). Forestar's land inventory increased to about $1 billion at
the end of the fiscal year ended September 2019 from $498 million
as of September 2018. The increase can be attributed to more orders
for lots from D.R. Horton.
ISSUE RATINGS – RECOVERY ANALYSIS
Key analytical factors
-- S&P rates the company's $350 million senior notes due in 2024
'B+', one notch above its 'B' issuer credit rating. The '2'
recovery rating indicates its expectation for substantial (70%-90%;
rounded estimate: 85%) recovery in the event of a payment default.
-- S&P uses a discrete asset value approach to assess recovery
prospects for land developers because it believes these companies'
primary source of value in a distressed scenario is their land and
real estate holdings. S&P assumes debtholders would be paid using
funds from the distressed sale of these assets.
-- S&P estimates a gross recovery value of roughly $759.4 million,
which assumes a blended 45% discount to the assumed $1 billion in
book value of inventory and about $380 million cash, after applying
distressed realization rates to the company's real estate assets at
default under its stressed scenario.
Simulated default assumptions
S&P's simulated default scenario contemplates a payment default in
2023. Under this scenario, a U.S. economic recession beginning in
2022 reduces the volume of new home sales and demand for
residential lots toward prior trough levels. S&P assumes
development activities would be curbed and lot sales would
effectively dry up. It also assumes the company's unsecured $380
million revolving credit facility is approximately 85% drawn at
default, less any outstanding letters of credit."
Simplified waterfall
-- Gross recovery value: $759 million
-- Administrative costs (5%): $38 million
-- Net recovery value: $721 million
-- Collateral available to unsecured creditors: $721 million
-- Unsecured claims: $667 million*
--Recovery expectation: 70%-90% (rounded estimate: 85%)
*Estimated claim amounts include approximately six months of
accrued but unpaid interest.
GARDEN STATE: Court Agrees PCO Is Not Necessary
-----------------------------------------------
Diagnostic Imaging, LLC, and the U.S. Trustee have agreed to a
consent order designating Garden State as a Health Care Business
and determining the appointment of a Patient Care Ombudsman.
At the parties' behest, Judge Kathryn C. Ferguson ordered that:
* the Debtor is a Health Care Business as defined by 11 U.S.C.
Sec. 101(27A); and
* A Patient Care Ombudsman as defined by 11 U.S.C. Sec. 333 is
unnecessary under the facts and circumstances of the case.
A full-text copy of PCO Appointment is available at
https://tinyurl.com/rdl4w2b from PacerMonitor.com at no
charge.
About Garden State Diagnostic Imaging
Located in Browns Mills, New Jersey, Garden State Diagnostic
Imaging, LLC -- https://www.gsdimaging.com/ -- owns and operates a
new state-of-the-art imaging center offering 1.2 T Open Magnetic
Resonance Imaging (MRI), Computed Tomography (CT), Ultrasound (US
Sonogram), 3D Mammography (MG Breast Tomosynthesis), and Digital
X-ray imaging services.
Garden State Diagnostic Imaging, LLC, based in Browns Mills, NJ,
filed a Chapter 11 petition (Bankr. D.N.J. Case No. 19-29852) on
Oct. 21, 2019. In the petition signed by Hiteshri Patel, managing
member, the Debtor was estimated to have $0 to $50,000 in assets
and $1 million to $10 million in liabilities. The Hon. Kathryn C.
Ferguson oversees the case. Andrew J. Kelly, Esq., at The Kelly
Firm, P.C., serves as bankruptcy counsel.
GREATER APOSTOLIC: $3.3M Sale of 3 Parcels Conditionally Approved
-----------------------------------------------------------------
Judge Margaret M. Mann of the U.S. Bankruptcy Court for the
Southern District of California conditionally authorized Greater
Apostolic Faith Temple Church, Inc.'s sale of the commercial real
property located at (i) 2754 Imperial Avenue, San Diego (an office
building), (ii) 2810 L Street, San Diego, California (a parking
lot), and (iii) 138 28th Street, San Diego, California (a church
property), to AACTS International Ministries, Inc. and MERC - Z
Housing of Zion Solutions for $3.25 million, free and clear of all
liens, claims, and interests.
A hearing on the Motion was held on Dec. 12, 2019 at 2:00 p.m.
The hearing on (i) Capexco US GP., Inc.'s Motion to Convert the
Case to Chapter 7 or, in the Alternative, to Appoint an Examiner
with Expanded Powers, filed on Nov. 7, 2019, and (ii) Capexco Claim
Objection, filed on July 31, 2019, are continued to Jan. 2, 2020 at
2:00 p.m.
The Court granted an oral motion to shorten time on a motion to
approve the settlement between the Debtor and Capexco in relation
to Claim No 4 and the agreement reached between the Debtor and 138
28th St., which settlement motions will be heard on Jan. 2, 2020 at
2:00 p.m.
Any motion asking approval of the settlements reach by and between
the parties will be filed and served by Dec. 18, 2019. Any
opposition thereto will be filed and served by close of business on
Dec. 30, 2019.
The Court conditionally approved the Motion to Sell subject to
approval of the two settlement motions and satisfaction of all the
contingencies set forth in the Commercial Property Purchase
Agreement and Joint Escrow Instructions. The Motion to Sell is
continued to Jan. 2, 2020 at 2:00 p.m.
About Greater Apostolic Faith
Temple Church Inc.
Greater Apostolic Faith Temple Church Inc., a religious
organization in San Diego, Calif., sought protection under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Cal. Case No. 19-02820) on
May 14, 2019. At the time of the filing, the Debtor was estimated
to have assets of between $1 million and $10 million and
liabilities of between $1 million and $10 million. The Speckman
Law Firm is the Debtor's counsel.
GREEN GLOBAL: To Seek Plan Confirmation on Jan. 30
--------------------------------------------------
Judge Thomas P. Agresti has ordered that the Second Amended
Disclosure Statement of Green Global LLC is conditionally
approved.
On Jan. 30, 2020 at 10:00 a.m. the final hearing on the Second
Amended Disclosure Statement and Second Amended Plan confirmation
is scheduled in Courtroom "C", 54th Floor, U.S. Steel Tower, 600
Grant Street, Pittsburgh, PA 15219.
On or before Jan. 23, 2020, all objections to the Second Amended
Disclosure Statement must be filed pursuant to Fed.R.Bankr.P.
3017.1(c)(2) and/or to Second Amended Plan confirmation.
On or before Jan. 23, 2020, all ballots accepting or rejecting the
Second Amended Plan must be served on the attorney for the Debtor.
Debtor Green Global, LLC, has proposed a reorganization plan. The
Debtor now has the ability to produce and sell goods and has a
buyer for said goods. The Debtor now files the instant Plan to pay
all creditors 100% of their allowed claims based on the revenue to
be generated from the sale of goods including, but not limited to,
the sale of goods to American International Resources, Inc.
A full-text copy of the Second Amended Disclosure Statement dated
Dec. 19, 2019, is available at https://tinyurl.com/vvcs6nb from
PacerMonitor.com at no charge.
About Green Global
Based in Southwest, Pennsylvania, Green Global, LLC, filed a
voluntary Chapter 11 Petition (Bankr. W.D. Penn. Case No. 14-20131)
on Jan. 10, 2014 At the time of filing, the Debtor was estimated
to have assets are $100,000 to $500,000, and the estimated
liabilities are $1 million to $10 million. The case is assigned to
Hon. Thomas P. Agresti. Steidl and Steinberg, P.C., led by
Christopher M. Frye, is the Debtor's counsel.
GREEN VISION: Reports $201K Net Loss for June 30, 2018 Quarter
--------------------------------------------------------------
On Jan. 10, 2020, Green Vision Biotechnology Corp. filed its
quarterly report on Form 10-Q, disclosing a net loss of $200,517 on
$33,650 of net revenue for the three months ended June 30, 2018,
compared to a net loss of $251,108 on $41,945 of net revenue for
the same period in 2017.
At June 30, 2018, the Company had total assets of $4,152,714, total
liabilities of $9,638,492, and $5,485,778 in total stockholders'
deficit.
The Company said, "The independent auditors' report accompanying
our December 31, 2017 audited financial statements filed in Form
10-K on April 17, 2018 contained an explanatory paragraph
expressing substantial doubt about our ability to continue as a
going concern. The financial statements have been prepared
"assuming that we will continue as a going concern," which
contemplates that we will realize our assets and satisfy our
liabilities and commitments in the ordinary course of business.
"As of June 30, 2018 and December 31, 2017, the Company has an
accumulated deficit of $5,316,950 and $4,883,120 respectively, and
its current liabilities exceed its current assets resulting in
negative working capital of $9,296,877 and $9,029,045 respectively.
In view of the matters described above, recoverability of a major
portion of the recorded asset amounts and realization of the
portion of current liabilities into revenue shown in the
accompanying balance sheets are dependent upon continued operations
of the Company, which in turn are dependent upon the Company's
ability to raise additional financing and to succeed in its future
operations. The Company may need additional cash resources to
operate during the upcoming 12 months, and the continuation of the
Company may be dependent upon the continuing financial support of
investors and/or stockholders of the Company. However, there is no
assurance that equity or debt offerings will be successful in
raising sufficient funds to assure the eventual profitability of
the Company.
"Management has taken the following steps to revise its operating
and financial requirements, which it believes are sufficient to
provide the Company with the ability to continue as a going
concern. The Company is actively pursuing (i) additional funding
which would enhance capital employed; and (ii) strategic partners
which would increase revenue bases or reduce operation expenses.
Management believes that the above actions will allow the Company
to continue its operations throughout this fiscal year."
A copy of the Form 10-Q is available at:
https://is.gd/taHctf
About Green Vision
Tempe, Ariz.-based Green Vision Biotechnology Corp., formerly Vibe
Wireless Corp., is a shell company. The Company is focused in the
process of exploring business opportunities. The Company focuses
on identifying business opportunities to either develop and market
products and services, enter into strategic alliances and
relationships, or acquire existing companies or assets in selected
markets.
H.R.P. II: $1.2M Sale of Hammond Property to Transport Approved
---------------------------------------------------------------
Judge James R. Ahler of the U.S. Bankruptcy Court for the Northern
District of Indiana authorize H.R.P. II, LLC's private sale of its
real, personal and intangible property located at 1717 Summer
Street, Hammond, Indiana to Transport Properties, LLC for $1.2
million, pursuant to the terms and conditions of the Contract.
The following is a summary of the parcels included in the proposed
sale, with reference to property owner, assessed value and
outstanding taxes that are allegedly due and owing with respect to
each parcel, including prior years and 2018 taxes payable in 2019:
Taxes
PIN Owner Assessed through 2018 2019
Value payable 2019
Estimate
---- ----- --------- ------------
--------
45-07-05-151-005.000-023 Debtor $74,400 $16,674
$3,443
45-07-05-151-006.000-023 Non-Debtor $24,200 $5,275
$1,403
45-07-05-151-003.000-023 Debtor $301,700 $198,408
$12,680
45-07-05-151-004.000-023 Non-Debtor $118,500 $6,361
$5,235
45-07-05-151-002.000-023 Debtor $39,900 $8,827
$2,041
45-07-05-151-001.000-023 Debtor $7,000 $746
$314
45-07-06-278-021.000-023 Debtor $26,500 $16,627
$1,107
45-07-06-227-011.000-023 Debtor $34,800 $20,548
$1,444
-------- ---------
-------
Totals $627,000 $273,467
$27,669
On behalf the Debtor, Andrew Young is authorized to sign, execute
and deliver such other documents as are necessary to effectuate the
sale of the Property to the Purchaser pursuant to the Contract and
the Order.
The sale of the Property to the Purchaser pursuant to the Order
will be free and clear of any and all liens, claims, and
encumbrances, including, without limitation, any and all claims
pursuant to any successor or successor-in-interest liability
theory. All liens, claims and encumbrances will attach solely to
the proceeds.
The Debtor is authorized to enter into a title indemnity agreement
with the Title Company and deposit with the Title Company such
amount as may be required by the Title Company pursuant to such
indemnity to insure over and to satisfy payment of any delinquent
taxes that are the subject of the Adversary Proceeding and any
other pending litigation between the Debtor and the Lake County
Treasurer relating to the Property.
A certified copy of the Order may be filed with the appropriate
clerk and/or recorded with the recorder to evidence the
cancellation and release of any of the liens, claims and
encumbrances of record.
The Purchaser will not have any liability or other obligation of
the Debtor arising under or related to the Property. Without
limiting the generality of the foregoing, and except as otherwise
specifically provided herein or in the Contract, the Purchaser will
not be liable for any claims against the Debtor or any of its
predecessors or affiliates.
The net proceeds of the sale of the Property allocated to the
Debtor, after payment of applicable closing costs and after funding
any title indemnity holdback with the Title Company to insure over
and to satisfy payment of any delinquent taxes that are the subject
of the Adversary Proceeding and any other pending litigation
between the Debtor and the Lake County Treasurer relating to the
Property, will be deposited into the Debtor's DIP bank account and
remain subject to further order of the Court.
Within seven days after the closing of the sale, the Debtor will
file the report of sale required by Fed. R. Bankr. P. 6004(f)(l)
and serve said report on the parties identified in Local Rule
B-6004-l(a).
The 14-day stay under Fed. R. Bankr. F. 6004(h) is waived for cause
and the Order is effective immediately.
About H.R.P. II, LLC
H.R.P. II LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ind. Case No. 17-21695) on June 15, 2017. At the
time of the filing, the Debtor was estimated to have assets of less
than $1 million and liabilities of less than $500,000. Judge James
R. Ahler presides over the case. The Debtor hired Fox Rothschild
LLP, as general bankruptcy counsel, replacing Shaw Fishman Glantz &
Towbin LLC.
HARB PROPERTIES: Unsecureds be Paid 1.2% Under Plan
---------------------------------------------------
Harb Properties LLC, along with John and Elham Harb, has proposed a
Chapter 11 plan of reorganization.
According to the Disclosure Statement, funds the Debtor generates
from the sale of its assets or the collection of its receivables or
wages or rent, which are placed in a special account to be used
solely for distribution to creditors and which shall be in an
amount sufficient to satisfy the distributions required under the
Plan.
The Plan treats claims in this manner:
* The Class One claims of TLOA Acquisitions, LLC will be paid at
18% over a 10-year period at 18% interest except that no interest
will be paid on the penalty and interest portion of the claims. The
Class One Claims are impaired.
* The Class Five Prepetition Claim of Lorain County Treasurer
will be paid at 6.8% over a 10-year period on the tax portion of
the claim, with no interest paid on the interest and penalty
portion of the claim. Class Five Claim is impaired.
* The Class Seven State of Ohio Tax Claims designated by the
State of Ohio as Priority Claims (Claim 10 in Case Number
18-17112). Thirty days after the effective date, $815.96 shall be
distributed to the State of Ohio. The balance of the claim
designated in Claim 10 as priority, in the amount of $49,397 will
be paid by 14510, Inc, the entity that generated the liability.
Class 7 is impaired.
* The Class Eight General Unsecured Claims are impaired. Class 8
claims shall be paid at a rate of 1.2% as set forth in the
projections attached hereto. Class 8 claims are not expected to
exceed $1,500,000. Class Eight Claims are Impaired.
* The Class Nine General Unsecured Claims (convenience class
claims of under $10,000 each) are impaired. Class 13claims shall be
paid 3% of their allowed claim as soon as practicable. Class 13
claims are not expected to exceed $20,000. Class Nine Claims are
Impaired.
A full-text copy of the Disclosure Statement dated December 28,
2019, is available at https://tinyurl.com/ucsnlsw from
PacerMonitor.com at no charge.
About Harb Properties
Harb Properties, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ohio Case No. 18-10436) on Jan. 26,
2018. Judge Jessica E. Price Smith oversees the case.
HERITAGE HOTEL: St. Petersburg Property Sale to E2 Capital Approved
-------------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Heritage Hotel Associates, LLC's
sale of the real property located in City of St. Petersburg,
Hillsborough County, Florida, as described in Exhibit A, to E2
Capital, LLC or its assign, pursuant to their Purchase Agreement.
Notwithstanding any language in the Purchase Agreement, the Buyer
is not and will not acquire any right to use the intellectual
property of HHF, including any marks or HHF's system, through its
purchase of the Hotel Property.
The sale is free and clear of any and all liens, claims, and
interests, with any such liens, claims or interests attaching
exclusively to the net proceeds of sale.
The Debtor is authorized and directed to pay the ordinary and
necessary closing costs chargeable to the seller, including
commissions, and the undisputed portions of any secured claims,
including any and all notes and mortgages in favor of Valley
National Bank, and the remaining proceeds of sale will be held by
the Debtor's counsel, Johnson Pope Bokor Ruppel & Burns, LLP,
pending further order of the Court with the disputed portions of
any secured claims attaching to such proceeds.
Pursuant to Section 3.22 of the Purchase Agreement, the Hotel
Indigo® Hotel Conversion License Agreement dated April 9, 2008
with HHF will be rejected and terminated as of 12:01 a.m. on the
date of the closing of the sale of the Hotel Property. The Buyer
will be responsible for the de-identification costs and
responsibilities with regards to the timing of the
de-identification in accordance with the terms and conditions of
the License Agreement. The closing on the Hotel Property is
currently scheduled for Jan. 15, 2020, with a possible one-month
extension until Feb. 15, 2020.
In the event that the Closing Date is advanced or extended, the
Debtor will immediately inform HHF in writing of the new Closing
Date. The Debtor will file a Notice of Closing immediately
following the closing along with a copy of the closing statement.
In any event, the date immediately prior to the Closing Date will
constitute the Apportionment Date for purposes of modifying or
shutting down the reservations system.
The following will apply to the termination of the License
Agreement:
a) As of Jan. 2, 2020, HHF is permitted to immediately (i)
modify its reservation system so that it will not accept
reservations for any stays at the Hotel Property that extend beyond
January 14, 2020; and (ii) inform guests in the reservation system
registered for stays at the Hotel Property beyond Jan. 14, 2020 of
the anticipated change of flag for the Hotel Property and give such
guests an option to transfer their reservations to another IHG
flagged property; provided, however, if the Debtor informs HHF in
writing that the Buyer has exercised the extension of the Closing
Date until Feb. 15, 2020, then, within a reasonable time following
such written notice, HHF will modify its reservation system to
continue accepting reservations until the new Apportionment Date of
Feb. 14, 2020;
b) the reservation system will be shut down as of 3:00 p.m. on
the Apportionment Date (currently Jan. 14, 2020);
c) the License Agreement is deemed rejected and terminated as
of 12:01 a.m. on the Closing Date (currently Jan. 15, 2020), and
the Debtor reserves all rights to object to any claims by HHF
arising out of such rejection and termination;
d) the Buyer's responsibility to de-identify the Hotel
Property pursuant to the Order does not waive the Debtor's
obligations to HHF with regard to de-identification, and HHF
retains all of its rights pursuant to the License Agreement with
regard to asserting any claims arising thereof and, as of the
Closing Date, the automatic stay will not apply to HHF with respect
to its rights to enforce the de-identification of the Hotel
Property, including a claim for injunctive relief or specific
performance in any court with appropriate jurisdiction;
e) HHF will file any claim arising from the rejection and
termination of the License Agreement within 30 days following the
Closing Date, provided, however, that any claims arising out of the
de-identification of the Hotel Property may be filed within 60 days
after the Closing Date with the Debtor reserving all rights of
objection;
f) as set forth, the Debtor is not attempting to sell, assume
or assign, and the Buyer is not attempting to acquire nor is it
acquiring any license to use HHF's intellectual property or system;
and
g) the allowed claims of HHF will be paid in accordance with
the Bankruptcy Code and the Bankruptcy Rules.
To the extent that the Debtor intends to sell, assume or assign the
Valet Parking Service Agreement with Seven One Seven Parking
Services, Inc., any monetary default under the Service Agreement
will be satisfied pursuant to section 365(b)(1) of the Bankruptcy
Code in one of the following ways; (a) by payment of the monetary
default amount in cash on the Closing Date; (b) on such terms as
agreed by the parties; or (c) as determined by future order of the
Court.
To the extent that the Debtor intends to reject the Service
Agreement, Seven One Seven will file any claim arising from the
rejection and termination of the Service Agreement within thirty
(30) days following the Closing Date, or on such later date as may
be established by any order authorizing the rejection of the
Service Agreement. The Debtor reserves all rights to object to any
claims filed or asserted by Seven One Seven. The allowed claims of
Seven One Seven will be paid in accordance with the Bankruptcy Code
and Bankruptcy Rules.
Notwithstanding Rules 6004(h) and 6006(d) of the Federal Rules of
Bankruptcy Procedure, the Order will be immediately effective and
enforceable upon its entry. The closing may occur immediately
consistent with the terms of the Purchase Agreement. The Order
will be accepted for recording in the public records.
The matter came on for a hearing on Nov. 18, 2019, Dec. 2, 2019,
Dec. 9, 2019, and Dec. 13, 2019.
A copy of the Exhibit A is available at https://tinyurl.com/u9s3dbg
from PacerMonitor.com free of charge.
About Heritage Hotel Associates
Heritage Hotel Associates, LLC, is a single asset real estate
debtor (as defined in 11 U.S.C. Section 101(51B)). Heritage Hotel
Associates sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 19-09946) on Oct. 21, 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.
HINES POINT: Feb. 4 Hearing on Disclosure Statement Set
-------------------------------------------------------
The Bankruptcy Court will consider the approval of the Disclosure
Statement at a hearing on Feb. 4, 2020, at 11:00 a.m.. The
Disclosure Statement Hearing will be held in Courtroom No. 703,
United States Bankruptcy Court, 230 North First Avenue, Phoenix,
Arizona.
Any objection must be filed by Jan. 28, 2020, which date is at
least 7 calendar days prior to the Disclosure Statement Hearing.
About Hines Point
Hines Point, LLC, is the owner of real property at 36 Hines Point,
Vineyard Haven, Massachusetts. David L. Mackenney is the manager
and sole member of the Debtor; additionally, he is the sole owner.
Hines Point, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 19-00544) on Jan. 17,
2019. The case is assigned to Judge Eddward P. Ballinger Jr.
The Debtor is represented by:
CARMICHAEL & POWELL, P.C.
Donald W. Powell
6225 North 24th Street, #125
Phoenix, Arizona 85016
IMPERIAL TOY: $13 Million Sale of All Assets to Ja-Ru Approved
--------------------------------------------------------------
Judge M. Elaine Hammond of the U.S. Bankruptcy Court for the
Northern California authorized Imperial Toy, LLC's sale of
substantially all assets to Ja-Ru, Inc. for the aggregate cash
purchase price of the Assets is $15.6 million, less (i) a $3
million working capital adjustment solely related to inventory and
accounts receivable, and (ii) the $650,000 credit for the Break-Up
Fee payable to the Purchaser under the Bidding Procedures Order,
pursuant to the Asset Purchase Agreement dated as of Dec. 13,
2019.
Consistent with the terms of the Bidding Procedures Order, the
Debtor, after consultation with the Consultation Parties, has
determined that MBW Imperial, LLC, based on its last bid as set
forth in the Asset Purchase Agreement, dated as of Dec. 13, 2019,
will be the Back-Up Bidder, and the Back-Up Bid will remain open
until the earlier of (i) the Closing of the Sale to the Purchaser
or (ii) Jan. 15, 2020.
The objection filed by Pietro Sgromo is overruled and denied on the
merits. The objections raised by counterparties to unexpired
leases and executory contracts on the record at the hearing are
preserved and will be considered at a further hearing.
With respect to the objection filed by Oracle America, Inc.,
including in its capacity as successor in interest to Netsuite
related to assumption and assignment of executory contracts, cure
amounts, and/or adequate assurance of future performance, such
objections are preserved.
Notwithstanding anything in the Order to the contrary, this Order
will not effectuate any assumption or assignment of the Debtors'
executory contracts or unexpired leases with Oracle (or determine
that such executory contracts or unexpired leases are susceptible
to assumption or assignment), adjudicate the cure amounts due to
Oracle, or determine whether Oracle is entitled to adequate
assurance of future performance. If the Debtor resolves matters
with Oracle, the Debtor may submit a subsequent order under
certification of counsel, and if and to the extent such matters
with Oracle require further hearing, the Debtor will work with
Oracle to schedule such a hearing, and will provide appropriate
notice of same.
The Agreement, including all other ancillary documents, and all of
the terms and conditions thereof, and the Sale contemplated
thereby, are approved in all respects.
Pursuant to sections 105(a), 363(b), 363(f), 365(b) and 365(f) of
the Bankruptcy Code, upon the Closing Date and pursuant to and
except as otherwise set forth in the Agreement, the Assets will be
transferred to the Purchaser free and clear of all Interests or
Claims, with all such Interests or Claims (other than Assumed
Liabilities), if any, to attach to the net proceeds of the Sale.
As permitted by the Agreement, the Purchaser is authorized to apply
the Debtor's DIP Obligations (as defined in the Final DIP Order) to
Purchaser, on a dollar-for-dollar basis, against the Aggregate
Purchase Price payable under the Agreement. Upon the Closing of
the Sale, such DIP Obligations will be satisfied in full through
such credit bid.
The net proceeds of the Sale remaining after any payments expressly
authorized by the Sale Order will be segregated and will not be
used for any purpose except as permitted by an order of the Court
or other consensual agreement authorizing the use of the cash
collateral of the Pre-Petition Secured Parties. The allocation of
value by the Purchaser for tax purposes will not be binding on the
Court or any party for purposes of the Chapter 11 Case or
distributions.
The Debtor is authorized and directed, upon and in connection with
the Closing, to change its corporate name, consistent with
applicable law, to the following: Toy Liquidating LLC or another
name acceptable to Purchaser in its discretion.
As set forth on the record at the Sale Hearing, although the
Purchased Assets include the Seller's Claims and causes of action,
including claims for relief arising under Chapter 5 of the
Bankruptcy Code, against Essential Vendors and Hired Employees
(other than insiders), the Purchaser will not prosecute any such
causes of action against Essential Vendors or Hired Employees.
There are no brokers involved in consummating the Sale, and no
brokers' commissions are due.
All time periods set forth in the Sale Order will be calculated in
accordance with Bankruptcy Rule 9006(a).
Notwithstanding Bankruptcy Rules 6004(h), 6006(d), 7062 and 9014,
the Sale Order will be effective immediately upon entry and the
Debtor and the Purchaser are authorized to close the Sale
immediately upon entry of the Sale Order, in accordance with the
Agreement.
In the event the Purchaser is unable to close on or prior to Dec.
18, 2019, the Debtor will have the right but not the obligation to
terminate the Agreement and accept the Back-Up Bid of the Back-Up
Bidder. In the event the Debtor accepts the Back-Up Bid, the
Debtor will be permitted to submit a revised order on substantially
the same terms set forth naming the Back-Up Bidder as the purchaser
upon certification of the counsel among the Debtors, the Back-Up
Bidder, and the Consultation Parties or seek an emergency hearing
for entry of such order.
The Agreement gives the Purchaser the option to exclude assets from
the sale. In the event that the Purchaser opts not to acquire any
particular asset, the Court authorizes the Debtor to sell that
asset or assets without further order of the Court as long as the
Committee and the Debtor's pre-petition secured lenders (CIT, Great
Rock, and the Hirsch Parties) consent to the terms of the sale.
About Imperial Toy
Imperial Toy LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Calif. Case No. 19-52335) on Nov. 18,
2019. The case was filed in order to facilitate a going concern
sale of the Debtor's assets.
At the time of the filing, the Debtor disclosed assets of between
$10 million and $50 million and liabilities of the same range.
The Debtor tapped Sheppard, Mullin, Richter & Hampton LLP as its
legal counsel, and Arch & Beam Global, LLC as its financial
advisor.
INNOPHOS HOLDINGS: S&P Assigns 'B' ICR on One Rock Acquisition
--------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
specialty chemical and ingredients provider Innophos Holdings Inc.
following announcement that it is being acquired by Private equity
sponsor One Rock Capital Partners LLC (One Rock).
Meanwhile, S&P lowered the issuer credit rating on Innophos Inc. to
'B' from 'BB', revised the outlook to stable, and subsequently
withdrew the rating on this entity. The company will continue to
file financials at Innophos Holdings Inc.
S&P also assigned its 'B+' issue-level rating and '2' recovery
rating (rounded estimate: 75%) to the company's proposed term loan
and its 'B-' issue-level rating and '5' recovery rating (rounded
estimate: 25%) to the company's proposed senior unsecured notes.
One Rock is purchasing Innophos Holdings Inc., currently a
publicly-traded company, for $32.00 per share, or for an enterprise
value of $932 million. The transaction will be funded by the
proposed $125 million asset-based loan (ABL; which S&P expects to
be undrawn at close), $415 million term loan B, $300 million senior
unsecured notes, and common equity from the sponsor. The rating
reflects S&P's expectation that the capital structure closes as
proposed and the debt consists entirely of long duration debt with
a maturity of at least five years.
The stable outlook reflects S&P's expectation that Innophos will
maintain operational performance levels resulting in pro forma
weighted-average debt to EBITDA above 5x. S&P expects EBITDA
margins to approach high teens due to the discontinuance of some of
the company's lower-margin business and the realization of benefits
from its cost savings and strategic value chain initiatives. S&P
assumes there will be no material increases in debt to fund
acquisitions in its base-case scenario. Additionally, the rating
agency expects the company will generate positive free cash flow
that will support its ability to maintain adequate liquidity.
"We could lower our ratings on Innophos in the next 12 months if we
expect weighted average debt/EBITDA to approach 7x, with no
prospects for improvement. This could occur if the company's
macro-environment is weaker than we anticipate, demand for its
products decline or raw material prices increase and the company is
unable to pass through the cost. We could also lower our rating if
we believe the company's financial policy will no longer support
its current credit quality. This could occur if Innophos undertakes
a large debt-funded acquisition or dividend recapitalization that
stretches credit metrics. Additionally, we could take a negative
rating action if the company's liquidity materially weakens such
that we anticipate its sources will be less than 1.2x its uses,"
S&P said.
"We could take a positive rating action on the company over the
next 12 months if its operating performance is much better than we
expect such that debt leverage remains well below 5x. A key factor
that we will take into account before considering an upgrade is our
belief that management and ownership financial policies would
support maintaining leverage at these levels on a sustained basis,"
the rating agency said.
INTERNATIONAL ORGANIZATION: Chapter 15 Case Summary
---------------------------------------------------
Chapter 15 Debtor: International Organization Foreign Grantor
Case No.: 20-00348
Chapter 15 Petition Date: January 16, 2020
Court: United States Bankruptcy Court
Middle District of Florida
Judge: Hon. Michael G. Williamson
Chapter 15 Petitioner: Danny L. Boykins
JAMES CANDY: $15K Sale of Candy-Making Equipment to D&M Approved
----------------------------------------------------------------
Judge Andrew B Altenburg, Jr., of the U.S. Bankruptcy Court for the
District of New Jersey authorized James Candy Co.'s private sale of
a candy-making equipment to D&M Chocolates, Inc. for $15,000.
A hearing on the Motion was held on Dec. 17, 2019 at 10:00 a.m.
The sale is free and clear of liens, with the lien of OceanFirst
Bank, N.A., to attach to the proceeds of the sale.
Union Standard Equipment Co. may be paid a commission of$1,500 from
the sale proceeds, consistent with the terms of that firm's
retention as the Debtor's auctioneer approved by prior Order of the
Court.
About James Candy Company
James Candy Company is a candy company in Atlantic City, New
Jersey, offering a wide selection salt water taffy, fudge, and
macaroons.
James Candy Company, based in Atlantic City, NJ, filed a Chapter 11
petition (Bankr. D.N.J. Case No. 18-32139) on Nov. 7, 2018. In the
petition signed by Frank Glaser, president, the Debtor disclosed
$2,756,944 in assets and $3,048,241 in liabilities. The Hon.
Andrew B. Altenburg Jr. oversees the case. Ira R. Deiches, Esq.,
at Deiches & Ferschmann, serves as bankruptcy counsel to the
Debtor.
JIM'S DISPOSAL: Seeks to Hire Conroy Baran as Legal Counsel
-----------------------------------------------------------
Jim's Disposal Service, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Missouri to hire Mann Conroy, LLC
as its legal counsel.
Mann Conroy will advise the Debtor of its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 cases. The hourly rates charged by the firm range
from $95 to $275.
The firm received a retainer of $25,000 from the Debtor.
Mann Conroy is "disinterested" within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached at:
Robert S. Baran, Esq.
Larry A. Pittman, II, Esq.
Mann Conroy, LLC
1316 Saint Louis Ave., 2nd FL
Kansas City, MO 64101
Phone: (816) 210-9680 / (816) 616-5009
Fax: (816) 817-6023
Email: rbaran@conroybaran.com
lpittman@conroybaran.com
About Jim's Disposal Service
Jim's Disposal Service, LLC, a company that specializes in
residential waste solutions, filed a Chapter 11 petition (Bankr.
W.D. Mo. Case No. 20-40050) on Jan. 6, 2020. At the time of the
filing, the Debtor estimated $50,000 in assets and $1 million to
$10 million in liabilities. Judge Brian T. Fenimore oversees the
case. Larry A. Pittman, II, Esq., and Robert Baran, Esq., at Mann
Conroy, LLC, are the Debtors' bankruptcy attorneys.
JIT INDUSTRIES: Jan. 27 Hearing on Plan & Disclosures Set
---------------------------------------------------------
Judge Clifton R. Jessup, Jr., has ordered that a combined
Disclosure Statement of JIT Industries, Inc. and confirmation
hearing will be held on Monday, January 27, 2020 at 10:00 a.m.
before the Honorable Clifton R. Jessup, Jr. at the Federal
Building, 400 Well Street, Decatur, Alabama, 35601.
Friday, Jan. 17, 2020 by 5:00 p.m., CDT is fixed as the last day by
which creditors and parties in interest must file any objections to
the Amended Disclosure Statement or to confirmation of the Amended
Plan.
Friday, Jan. 17, 2020 by 5:00 p.m., CDT is fixed as the deadline by
which the holders of claims and interests against the Debtor must
file ballots accepting or rejecting the Amended Plan.
The Debtor must tabulate all acceptances and rejections of the
Amended Plan and file a Ballot Summary with the Court on or before
Wednesday, January 22, 2020 by 12:00 p.m., Noon, CDT.
The Debtor must file a Memorandum in Support of Confirmation
explaining pursuant to 11 U.S.C. Sec. 1129 how the Amended Plan
satisfies the requirements for confirmation, including evidence of
feasibility on or before Wednesday, January 22, 2020 by 12:00 p.m.,
Noon, CDT.
About JIT Industries
JIT Industries, Inc., a company based in Hartselle, Alabama,
manufactures, repairs and services fluid power, process control,
mil-spec fasteners and aerospace hardware.
JIT Industries sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ala. Case No. 18-80892) on March 23, 2018. In
the petition signed by Ginger McComb, president, the Debtor was
estimated to have assets of less than $500,000 and liabilities of
$1 million to $10 million. Judge Clifton R. Jessup Jr. oversees
the case. The Debtor is represented by Tazewell T. Shepard, Esq.,
at Sparkman, Shepard & Morris, P.C., in Huntsville, Alabama.
JOHNSON'S QUALITY: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
Johnson's Quality Lawncare, Inc., according to court dockets.
About Johnson's Quality Lawncare
Johnson's Quality Lawncare, Inc. sought protection under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 19-50171) on Dec.
11, 2019. At the time of the filing, the Debtor had estimated
assets of less than $50,000 and liabilities of between $500,001 and
$1 million. Judge Karen K. Specie oversees the case. Charles Wynn
Law Offices, P.A. is the Debtor's legal counsel.
KEVIN E. RHOADS, JR: $750K Sale of Whitehall Property Approved
--------------------------------------------------------------
Judge Jean K. Fitzsimon of the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania authorized Robert E. Rhoads, Jr.
and Carolann P. Rhoads to sell their real property known as 480
Mickley Road, Whitehall, Lehigh County County, Pennsylvania, to
Shamrock Acquisitions, LLC for $750,000, pursuant to the terms of
their Agreement of Sale.
All other valid, perfected, allowed secured claims and/or liens
will attach to the proceeds of sale and will be paid at closing as
will normal and customary closing costs and unpaid current real
estate taxes, as are outlined in the proposed HUD-1. All other
liens and charges not proposed to be paid are divested by the
Order.
The Debtors and the closing agent are authorized and directed to
pay the net proceeds of the sale in accordance with Exhibit C,
subject to such interest increases as might have accrued in the
interim between the title search and the closing.
The Debtors will forward a true copy of the HUD-1 Settlement Sheet
from the closing on the sale to those parties in interest who
request a copy within 10 days of the date of closing.
The Closing will occur within 60 days of the date of the Order.
Robert E. Rhoads, Jr. and Carolann P. Rhoads sought Chapter 11
protection (Bankr. E.D. Pa. Case No. 19-17311) on Nov. 21, 2019.
The Debtors tapped Kevin K. Kercher, Esq., at Law Office of Kevin
K. Kercher, Esq, PC as counsel.
KINGMAN FARMS: To Seek Plan Confirmation April 1
------------------------------------------------
Kingman Farms Ventures, LLC, won court approval of the disclosure
statement explaining its Chapter 11 plan is approved.
A hearing to consider the confirmation of the Plan will be held
before a United States Bankruptcy Judge, in the Foley Federal
Building, 300 Las Vegas Boulevard South, Las Vegas, Nevada 89101,
Second Floor, Courtroom No. 2, commencing on April 1, 2020 at 9:30
a.m.
Objections, if any, to the confirmation of the Plan must be filed
and served by no later than by 11:59 p.m. PT on March 20, 2020.
Replies to such objections and proposed modifications must be
served by no later than March 27, 2020.
For all creditors and holders of equity interests entitled to vote
on the Plan, all votes to accept or reject the Plan must be
actually received by 11:59 p.m. PT on March 20, 2020.
The Debtor’s primary assets consists of real property in Mohave
County, Arizona comprising approximately 11,840 acres.
The Plan treats claims as follows:
* Class 2 Opal Secured Claim. IMPAIRED. Estimated claim
amount: $10,140,067 as of Dec. 16, 2019 exclusive of attorney's
fees and costs. The Opal Secured Claim shall be deemed satisfied in
full upon the occurrence of both (i) the Opal Closing Date (as
defined in the Credit Bid Purchase Agreement) and (ii) the
Effective Date.
* Class 5 General Unsecured Claims. UNIMPAIRED. Estimated
claim amount: $15,043 Each Holder of an Allowed General Unsecured
Claim will, in full satisfaction, settlement, release and exchange
for such Allowed General Unsecured Claim, receive cash in the
Allowed amount of such General Unsecured Claim on the Effective
Date.
* Class 6 Avery Claim. IMPAIRED. Estimated claim amount:
$19,066,308. The Holder of the Allowed Avery Claim shall, in full
satisfaction, settlement, release and exchange for such Allowed
Avery Claim, plus post- Effective Date interest at the rate prime
plus two percent (2%) per annum.
* Class 7 Old Equity Interests. IMPAIRED. The Holders of Old
Equity Interests will not receive or retain any property on account
of such Interests under the Plan.
The Opal Properties will be sold to Opal in accordance with the
terms of the Settlement Agreement and the Credit Bid Purchase
Agreement. The sale shall befree and clear of all liens, claims,
equity interests, and other encumbrances, except the Permitted
Encumbrances.
A full-text copy of the Disclosure Statement dated Dec. 20, 2019,
is available at https://tinyurl.com/v4zlbz7 from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Nedda Ghandi
Laura A. Deeter
Shara L. Larson
GHANDI DEETER BLACKHAM
725 South 8th Street, Suite 100
Las Vegas, Nevada 89101
Telephone: (702) 878-1115
(702) 281-5163
Facsimile: (702) 979-2485
E-mail: nedda@ghandilaw.com
laura@ghandilaw.com
shara@ghandilaw.com
About Kingman Farms Ventures
Kingman Farms Ventures, LLC, is a privately-held company that
operates in the crop farms industry located in Las Vegas, Nevada.
Kingman Farms Ventures sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Case No. 18-10180) on Jan. 16,
2018. In the petition signed by James R. Rhodes, president of
Truckee Springs Holdings, Inc., manager of the Debtor, the Debtor
was estimated to have assets and liabilities of $10 million to $50
million. Judge Laurel E. Davis is the presiding judge. Deeter
Blackham is the Debtor's legal counsel.
KRS GLOBAL: Seeks to Hire Markarian & Hayes as Legal Counsel
------------------------------------------------------------
KRS Global Biotechnology, Inc. seeks authority from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Markarian & Hayes as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor of its powers and duties and the
continued management of its business operations;
b. advise the Debtor of its responsibilities in complying with
the U.S. trustee's operating guidelines and reporting requirements
and with the rules of court;
c. prepare motions, pleadings and other legal documents;
d. protect the interest of the Debtor in all matters pending
before the court;
e. represent the Debtor in negotiation with their creditors in
the preparation of a bankruptcy plan.
Markarian & Hayes will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Malinda L. Hayes, partner of Markarian & Hayes, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Markarian & Hayes can be reached at:
Malinda L. Hayes, Esq.
Markarian & Hayes
2925 PGA Boulevard, Suite 204
Palm Beach Gardens, FL 33410
Tel: (561) 626-4700
Fax: (772) 794-3379
Email: malinda@businessmindedlawfirm.com
About KRS Global Biotechnology
KRS Global Biotechnology, Inc. -- http://krsbio.com/-- owns and
operates a human outsourcing facility that provides sterile and
non-sterile compounding services to patients, surgery centers,
ophthalmology clinics, hospitals, and universities. It is
registered with the U.S. Food and Drug Administration as a DEA
manufacturer and holds State Board of Pharmacy licenses both
in-state and out-of- state.
Based in Boca Raton, Fla., KRS Global Biotechnology filed a
voluntary Chapter 11 petition (Bankr. S.D. Fla. Case No. 20-10350)
on Jan. 10, 2020. At the time of filing, the Debtor estimated
$50,000 in assets and $10 million to $50 million in liabilities.
Judge Mindy A. Mora oversees the case. Malinda L. Hayes, Esq., at
Markarian & Hayes, is the Debtor's legal counsel.
KURU INC: Case Summary & 7 Unsecured Creditors
----------------------------------------------
Debtor: Kuru, Inc.
d/b/a Jimmy's Restaurant of Fells Point
801 S. Broadway
Baltimore, MD 21231
Business Description: Kuru Inc. owns and operates a restaurant
in Baltimore, Maryland.
Chapter 11 Petition Date: January 20, 2020
Court: United States Bankruptcy Court
District of Maryland
Case No.: 20-10721
Judge: Hon. Michelle M. Harner
Debtor's Counsel: Steven L. Goldberg, Esq.
MCNAMEE HOSEA
6411 Ivy Lane, Ste. 200
Greenbelt, MD 20770
Tel: (301) 441-2420
E-mail: sgoldberg@mhlawyers.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rustem Keskin, member.
A copy of the petition containing, among other items, a list of the
Debtor's seven unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/0IZIIW
LACONIA LLC: Unsecureds to be Paid in Full in Sale Plan
-------------------------------------------------------
According to its Second Amended Disclosure Statement, LACONIA
L.L.C. has proposed a Chapter 11 plan that provides for sale of two
properties controlled by members of the Debtor and/or their family
located in Vienna, Virginia.
The sale of the Vienna Properties will allow the full payment of
secured property tax claims against the Debtor's Herndon Property
as well as a substantial payment to Sandy Spring Bank, the secured
lender in this case. The Plan requires that the Paydown Payment
occur no later than Feb. 28, 2020 unless extended pursuant to an
Extension Event, in which case the Paydown Payment must be made by
April 15, 2020. The Plan further requires that Reorganized Laconia
satisfy the Class A Claim of Sandy Spring Bank in full no later
than Sept. 30, 2020.
If Reorganized Laconia defaults on its obligations under the Plan,
a Plan Administrator will be appointed to market and sell the
Herndon Property and otherwise administer any other assets of
Reorganized Laconia.
The Plan provides for the subordination of claims of Members of
Laconia and the full payment of secured, general unsecured and
priority claims. The Plan is supported by Sandy Spring Bank subject
to approval of this Disclosure Statement.
The Plan proposes to treat claims as follows:
* Secured Claim of Sandy Spring Bank. IMPAIRED. Sandy Spring
Bank has filed Proof of Claim 2-1 in the amount of $10,792,007.16.
On and after the Effective Date, and until the Maturity Date,
Reorganized Laconia shall make Monthly Loan Payments no later than
the 5th day of each calendar month in the amount of $40,000.00.
* Secured Property Tax Claims. The Town of Herndon has filed
Claim 4-1 in the amount of $82,231. These Claims will be satisfied
in full on or before the Paydown Date. The Debtor’s schedules
reflect an unliquidated and disputed Secured Property Tax debt to
the County of Fairfax in the amount of $305,817.34.
* Other Priority Claims. The County of Fairfax has filed Claim
3-1 for Business Personal Property tax in the amount of $11,794.92.
These Claims shall be paid in full on or before the Paydown Date.
* General Unsecured Claims. Total amount of claim $113,803.37.
General Unsecured Claims have been classified as Class D. These
claims will be paid in full without interest over time via a
monthly payment in the amount of $5,000 which will be distributed
pro rata to Holders of such Claims.
* Subordinated Claims. These Claims are classified in Class F
and may be paid at the discretion of Reorganized Laconia after all
Class A, B, C and D Claims are paid in full, provided that
Reorganized Laconia is in compliance with its other obligations
under the Plan.
* Membership Interests. On the Effective Date, as consideration
for the contribution of his interest in the Vienna Properties,
Louis G. Cholakis shall become a Member of Reorganized Laconia.
Upon the admission of Louis G. Cholakis as a Member, each Member
shall have a 25% interest in Reorganized Laconia.
Prior to the sale of the Vienna Properties, amounts required to pay
Class A and D creditors will be funded by operating revenues and in
particular, rental income from the Unexpired Leases.
A full-text copy of the Second Amended Disclosure Statement dated
December 20, 2019, is available at https://tinyurl.com/srygq66 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
H. Jason Gold
Dylan G. Trache
NELSON MULLINS RILEY & SCARBOROUGH LLP
101 Constitution Avenue, N.W., Suite 900
Washington, D.C. 20001
(202) 689-2800
About Laconia L.L.C.
Based in Herndon, Virginia, Laconia L.L.C., a privately held
company engaged in the business of renting and leasing real estate
properties, filed a Chapter 11 petition (Bankr. E.D. Va. Case No
19-11049) on April 2, 2019. At the time of filing, the Debtor was
estimated to have assets and $10 million to $50 million. The case
is assigned to Hon. Brian F. Kenney. The Debtor's counsel is Dylan
G. Trache, Esq., at Nelson Mullins Riley & Scarborough LLP, in
Washington, D.C.
LAKESHORE FARMS: Frontier Has Limited Objection to Plan & Outline
-----------------------------------------------------------------
Frontier Bank f/k/a Richardson County Bank & Trust Company, filed a
limited objection to debtor Lakeshore Farms, Inc.'s Fourth Amended
Plan and to Sixth Amended Disclosure Statement.
Debtor Lakeshore Farms is indebted to Frontier pursuant to a series
of Promissory Notes, Security Agreements, and other loan documents
under which Frontier holds a first priority security interest in
and liens upon Debtor's real estate, inventory, rents, revenues,
deposit accounts, chattel paper, accounts, general intangibles,
instruments, fixtures and equipment and all proceeds.
Frontier avers that:
* Section 2.4 of the Plan (p. 6 of Doc. 304) – The second
sentence of the second paragraph should read: "The value of the
collateral securing the Class 4 Claimant's claim is believed to be
less than the balance owing to the Class 4 Claimant."
* Section 2.4 of the Plan (p. 7 of Doc. 304) – The second full
paragraph on this page refers to the sale of certain equipment
which is part of the collateral securing the Debtor's indebtedness
to Frontier. This paragraph is confusing in that: (1) the sale was
completed earlier this year and is no longer a projected sale; (2)
sale proceeds in the amount of $141,000 (not $144,000) were paid to
Frontier.
* Section VII of the Disclosure Statement: Means of
Implementing the Plan - Background and Steps Forward (pp. 26 of
Doc. 307) – The Debtor indicates that FICA taxes will be paid.
The Debtor does not explain why FICA taxes need to be paid under
the Plan.
A full-text copy of Frontier Bank's objection is available at
https://tinyurl.com/ug2bfaq from PacerMonitor.com at no charge.
Frontier Bank is represented by:
LEVY CRAIG LAW FIRM
Michael M. Tamburini
4520 Main Street, Suite 1600
Kansas City, Missouri 64111
Tel: (816) 474-8181
Fax: (816) 382-6606
E-mail: mtamburini@levycraig.com
About Lakeshore Farms
Lakeshore Farms, Inc., a Missouri Corporation, was formed by
Jonathan L. Russell as an S Corporation on Jan. 26, 2001. At that
time, the Debtor's primary business was as a custom combine and
trucking company to haul grain for other farmers and operations.
In 2015, at the suggestion of its then lender, Richardson County
Bank & Trust Co., now Frontier Bank, because Mr. Russell was
already farming under another entity and the equipment was owned by
Lakeshore Farms, the Debtor commenced its own farming operations.
Lakeshore Farms leased 7,085 acres spread out over 18 tracts of
land, at an annual cost of approximately $1,885,973.84. The lease
payments are typically made in the Spring from the farm loan.
Planting starts in late April with harvesting commencing in
October. Grain is then delivered to the elevators for sale over
several months, using trucks owned by Lakeshore Farms.
Lakeshore Farms filed a Chapter 11 petition (Bankr. W.D. Mo. Case
No. 18-50077) on Feb. 28, 2018. In the petition signed by Jonathan
L. Russell, president, the Debtor disclosed $8.52 million in total
assets and $5.57 million in total debt. The case is assigned to
Judge Brian T. Fenimore. Evans & Mullinix, P.A., is counsel to the
Debtor.
LASALLE GROUP: PCO Says Further Visits at 2 Sites Unecessary
------------------------------------------------------------
On Nov. 5, 2019, Susan N. Goodman timely filed Patient Care
Ombudsman's Summary Report in anticipation of detailed third
reports by location.
In the third summary report, PCO indicated that travel to Debtors'
locations would be more cost effective later in November with
additional anticipated reports to follow those visits due to the
costs associated with site-specific reports seem to outweigh any
benefit, PCO comes now and submits Patient Care Ombudsman's Third
Interim, Consolidated Report for West Houston, Pearland, and Cinco
Ranch Locations.
Prior to PCO's site visit, the Pearland and Cinco Ranch locations
were made aware of an anticipated transition in management for
their locations. West Houston was not included in this
announcement. The largest site concern in anticipation of the
management transition was disposable nursing and TENA incontinence
supplies 3 given the transition is set to occur in early December.
Concern was further heightened by Pearland's report that its
attempt to place a half supply order late in November was rejected.
The PCO has engaged with the operations director, counsel, and
restructuring staff to discuss adequate supply stock for the
management transition.
Further, while it is unclear to PCO who will be receiving resident
TENA monies for December, logic would dictate that the recipient
would in turn ensure that these supplies are timely ordered and
delivered to residents participating in this program 7 residents at
Pearland and 10 at Cinco Ranch. Aside from supply concerns, West
Houston reported having three dryers in need of service/repair, and
Cinco Ranch had a similar report relative to one washer.
The PCO did not observe care decline or concern as contemplated
under 11 U.S.C. Sec. 333(b), anticipates that no further visits
will be necessary at the Pearland and Cinco Ranch locations.
Therefore, PCO will remain engaged at the West Houston location
until a definitive arrangement is announced and will continue to
seek opportunities to bundle site visits across cases to reduce
costs.
The PCO can be reached at:
Susan N. Goodman
Pivot Health Law, LLC
P.O. Box 69734
Oro Valley, AZ 85737
Tel: (520) 744-7061
Fax: (520) 575-4075
E-mail: sgoodman@pivothealthaz.com
A full-text copy of the PCO's Third Report is available at
https://tinyurl.com/uzrvnuf from PacerMonitor.com at no
charge.
About The LaSalle Group
The LaSalle Group, Inc., along with certain of its subsidiaries,
designs, develops, builds, and owns interests in memory care
assisted living communities designed specifically for people with
Alzheimer's and other forms of dementia. The communities operate
under the name Autumn Leaves.
LaSalle is a holding company for numerous wholly owned, non-debtor
subsidiaries and affiliates. It directly and indirectly owns
interests in 40 memory care assisted living communities located in
Texas, Illinois, Georgia, Florida, Kansas, Missouri, Oklahoma,
South Carolina, and Wisconsin.
LaSalle and its subsidiaries sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 19-31484) on
May 2, 2019. At the time of the filing, the Debtors were estimated
to have assets of between $10 million and $50 million and
liabilities of the same range.
The cases are assigned to Judge Stacey G. Jernigan.
The Debtors tapped Crowe & Dunlevy, P.C. as their legal counsel;
Haynes and Boone, LLP as special counsel; Karen Nicolaou of Harney
Partners Management, LLC as chief restructuring officer; and
Donlin, Recano & Company, Inc. as claims and noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on July 3, 2019. The committee is represented by Drinker
Biddle & Reath LLP.
LE JARDIN HOUSE: Exclusive Solicitation Period Extended to March 7
------------------------------------------------------------------
Judge Robert Mark of the U.S. Bankruptcy Court for the Southern
District of Florida extended Le Jardin House, LLC's exclusive
period to solicit acceptances for its Chapter 11 plan of
reorganization to March 7.
The extension was necessitated by, among other things, the
presently set confirmation hearing of Jan. 23, and the termination
of the exclusivity period of Jan. 7.
About Le Jardin House
Le Jardin House, LLC, is the owner and developer of a 30-unit
condominium project located at 1150 102nd Street, Bay Harbour
Islands, FL 33152., which is comprised of 30 separate units.
Le Jardin House sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-19182) on July 11,
2019. At the time of the filing, the Debtor disclosed $27,490,523
in assets and $7,167,406 in liabilities. Judge Robert A. Mark
oversees the case. Edelboim Lieberman Revah Oshinsky PLLC is the
Debtor's bankruptcy counsel.
LIGHTHOUSE HOSPITALITY: Cash Collateral Use Continued Thru Feb. 29
------------------------------------------------------------------
Judge Ann M. Nevins of the Bankruptcy Court for the District of
Connecticut authorized Lighthouse Hospitality LLC to use cash
collateral for the period from Jan. 1 through Feb. 29, 2020.
A continued hearing on Debtor's use of cash collateral will be held
on Feb. 26, 2020 at 10:00 a.m.
The Debtor may use cash and rental proceeds of up to $10,786 to pay
its projected expenses for the month of January 2020 and the total
amount of $9,158 for February 2020, including adequate protection
payments of interest to secured creditors, as well as certain
accruals for taxes and insurance, pursuant to the budget.
In addition, the Debtor is allowed to deposit any insurance
proceeds, with respect to repairs of a water damage in January
2019, upon receipt of necessary endorsements of Harborone Bank, US
Small Business Administration, and Community Investment
Corporation, into a separate DIP checking account, and to expend
said repair funds as directed.
About Lighthouse Hospitality
Lighthouse Hospitality LLC, which conducts business as Tidewater
Inn, operates a three-star hotel in Madison, Connecticut. The
hotel's guestrooms have a private en-suite bathroom with a shower,
air conditioning, cable television, and wireless internet access.
Lighthouse Hospitality sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Conn. Case No. 19-30387) on March 14,
2019. At the time of the filing, the Debtor was estimated to have
assets of $1 million to $10 million and liabilities of less than $1
million. The case is assigned to Judge Ann M. Nevins. Coan,
Lewendon, Gulliver & Miltenberger, LLC, is the Debtor's counsel.
MARSHAL BROADCASTING: Hires Boies Schiller as Special Counsel
-------------------------------------------------------------
Marshall Broadcasting Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to retain Boies
Schiller Flexner LLP as its special litigation counsel.
Boies Schiller is currently representing the Debtor in a lawsuit in
the New York Supreme Court against Nexstar Broadcasting, Inc. The
Debtor's 'complaint includes causes of action for breach of
contract, breach of implied covenant of good faith and fair
dealing, interference with contractual and economic relations,
conversion, and fraudulent misrepresentation. In addition, Boies
Schiller also represents the Debtor and its chief executive officer
in connection with the counterclaims that Nexstar has asserted in
that litigation.
The firm's hourly rates are:
William C. Jackson, partner $1,050
William Bloom, associate $890
Attorneys $490 - $1,650
Paraprofessionals $280 - $350
William Jackson, Esq., the firm's attorney who will be providing
the services, assured the court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Jackson disclosed that:
-- he has not agreed to any variations from, or alternatives
to, his standard or customary billing arrangements for his
engagement;
-- his rate is consistent with the rates that he charges other
comparable clients, regardless of the location of the Debtor's
Chapter 11 case;
-- the rates and terms for his pre-bankruptcy engagement has
not changed post-petition; and
-- he and the Debtor expect to develop a prospective budget
and staffing plan for the initial period Dec. 3, 2019 to May 31,
2020, which would subsequently be amended and extended through the
duration of the case.
Boies Schiller can be reached at:
William C. Jackson, Esq.
Boies Schiller Flexner LLP
401 East Las Olas Blvd., Ste 1200
Fort Lauderdale, FL 33301
Tel: (954) 356-0011
Fax: (954) 356-0022
Email: wjackson@bsfllp.com
About Marshall Broadcasting Group
Marshall Broadcasting Group, Inc. -- https://mbgroup.tv -- is a
minority owned television broadcasting company that owns three full
power television stations in the United States.
Marshall Broadcasting Group filed a voluntary Chapter 11 petition
(Bankr. S.D. Tex. Case No. 19-36743) on Dec. 3, 2019. The petition
was signed by Pluria Marshall Jr., chief executive officer. At the
time of the filing, the Debtor estimated $50 million to $100
million in both assets and liabilities. Levene, Neale, Bender, Yoo
& Brill L.L.P. is the Debtor's bankruptcy counsel.
MARSHALL BROADCASTING: Seeks Court Approval to Hire Special Counsel
-------------------------------------------------------------------
Marshall Broadcasting Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire a
special counsel.
The Debtor tapped Allan Moskowitz, Esq., to provide legal advice
related to its day-to-day regulatory issues with the Federal
Communications Commission.
Mr. Moskowitz's hourly rate is $300.
Mr. Moskowitz disclosed in a court filing that he is
"disinterested" as defined in Section 101(14) of the Bankruptcy
Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Moskowitz disclosed that:
-- he has not agreed to any variations from, or alternatives
to, his standard or customary billing arrangements for his
employment;
-- his rate is consistent with the rates that he charges other
comparable clients, regardless of the location of the Debtor's
Chapter 11 case;
-- the rates and terms for his pre-bankruptcy engagement has
not changed post-petition; and
-- he and the Debtor expect to develop a prospective budget
and staffing plan for the initial period Dec. 3, 2019 to May 31,
2020, which would subsequently be amended and extended through the
duration of the case.
Mr. Moskowitz maintains an office at:
Allan G. Moskowitz, Esq.
10845 Tuckahoe Way
North Potomac, MD, 20878
Phone: 844-394-8902
About Marshall Broadcasting Group
Marshall Broadcasting Group, Inc. -- https://mbgroup.tv -- is a
minority owned television broadcasting company that owns three full
power television stations in the United States.
Marshall Broadcasting Group filed a voluntary Chapter 11 petition
(Bankr. S.D. Tex. Case No. 19-36743) on Dec. 3, 2019. The petition
was signed by Pluria Marshall Jr., chief executive officer. At the
time of the filing, the Debtor estimated $50 million to $100
million in both assets and liabilities. Levene, Neale, Bender, Yoo
& Brill L.L.P. is the Debtor's bankruptcy counsel.
MAXIMUM ELITE: Seeks to Hire Eric A. Liepins as Legal Counsel
-------------------------------------------------------------
Maximum Elite Pipeline, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Eric A. Liepins,
P.C. as its legal counsel.
The firm will advise the Debtor of its powers and duties under the
Bankruptcy Code and will provide other legal services in connection
with its Chapter 11 case.
The firm's hourly rates are:
Eric Liepins, Esq. $275
Paralegals/Legal Assistants $30 - $50
The Debtor paid the firm a retainer of $5,000, plus the filing fee
of $1,717.
Eric Liepins, Esq., disclosed in court filings that his firm does
not represent any interest adverse to the Debtor's bankruptcy
estate.
The firm can be reached through:
Eric A. Liepins, Esq.
Eric A. Liepins, P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Telephone: (972) 991-5591
Telecopier: (972) 991-5788
Email: eric@ealpc.com
About Maximum Elite Pipeline
Maximum Elite Pipeline, LLC, a company in Midland, Texas, filed its
voluntary Chapter 11 petition (Bankr. N.D. Tex. Case No. 20-60001)
on Jan. 9, 2020. At the time of filing, the Debtor estimated
$50,000 in assets and $10,000,001 to $50 million in liabilities.
The Debtor is represented by Eric A. Liepins, Esq., at Eric A.
Liepins P.C.
MEG ENERGY: S&P Rates New US$800MM Senior Unsecured Notes 'BB-'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to MEG Energy Corp.'s proposed US$800 million
issuance of senior unsecured notes due 2027. The '2' recovery
rating indicates S&P's expectation of substantial (capped at
70%-90%; estimated recovery of 85%) recovery in its simulated
default scenario, resulting in an issue-level rating one notch
above its 'B+' issuer credit rating on the company. MEG intends to
use the debt proceeds to fully repay its 6.375% US$800 million
unsecured notes due 2023. The new notes will rank pari passu with
the existing 2024 unsecured notes. Concurrent with the refinancing
transaction, the company plans to repay US$100 million of its
original US$750 million secured notes due 2025 from cash on hand.
All other ratings on MEG are unchanged, including S&P's 'B+'
long-term issuer credit rating with a stable outlook. On Jan. 14,
2020, it revised its outlook on MEG to stable from negative, based
primarily on S&P's expectation of improving credit metrics, with
estimated funds from operations-to-debt of 15%-18% for 2020-2021.
ISSUE RATINGS- RECOVERY ANALYSIS
Key analytical factors
-- S&P has updated its recovery analysis and assigned a '2'
recovery rating and a 'BB-' issue-level rating to MEG's proposed
US$800 million senior unsecured notes due 2027.
-- The recovery and issue-level ratings on the company's senior
secured debt and the existing senior unsecured debt are unchanged.
-- The recovery analysis values the company on a going-concern
basis, using a reserve multiple approach that applies a range of
distressed fixed prices to MEG's proved, probable, and contingent
(best estimate) oil sands resources at Dec. 31, 2018. In S&P's
default scenario, it applies a price of US$4.00 per barrel of the
company's proven bitumen reserves, US$2.00 per barrel of probable
bitumen reserves, and 75 U.S. cents per barrel of best estimate
contingent resources.
-- For the company to default, EBITDA would need to decline
significantly, representing a material deterioration from our
base-case scenario assumptions.
-- The recovery analysis assumes that, in a hypothetical
bankruptcy scenario, the net emergence value fully covers secured
and unsecured lenders.
-- The '1' recovery rating (with an estimated recovery of 95%) on
the senior secured debt corresponds with a 'BB' issue-level
rating.
-- The recovery rating on the unsecured debt is capped at '2',
which is consistent with S&P's recovery rating criteria for 'B'
category rated issuers.
-- The '2' recovery rating on the senior unsecured debt reflects
an estimated recovery of 85% and corresponds with a 'BB-'
issue-level rating.
Simulated default assumptions
-- Simulated year of default: 2024
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): US$7.24
billion
-- Collateral value available to secured creditors: US$7.24
billion
-- Total senior secured debt, which includes the credit facility
and second-lien debt: US$1.06 billion
-- Recovery expectations: 90%-100% (estimated recovery capped at
95%)
-- Total value available to unsecured claims: US$6.2 billion
-- Senior unsecured debt and pari passu claims: US$1.87 billion
-- Recovery expectations: Capped at 70%-90%, estimated recovery at
85%
Note: All debt amounts include six months of prepetition interest.
MICHAEL HANCOCK: $76K Sale of Petal Property to Hancock Approved
----------------------------------------------------------------
Judge Katharine M. Samson of the U.S. Bankruptcy Court for the
Southern District of Mississippi authorized Michael Sean Hancock's
sale of the real property located at 109 Longleaf Dr., Petal,
Mississippi to Trystan Hancock for $76,139.
The sale is free and clear of all interests, and that any and all
interest, liens and encumbrances attached to said property are
extinguished.
Michael Sean Hancock sought Chapter 11 protection (Bankr. S.D.
Miss. Case No. 18-51989) on Oct. 11, 2018. The Debtor tapped
Jarrett Little, Esq., at Lentz & Little, PA, as counsel.
MICHAEL HANCOCK: $80K Sale of Petal Property to Chidress Approved
-----------------------------------------------------------------
Judge Katharine M. Samson of the U.S. Bankruptcy Court for the
Southern District of Mississippi authorized Michael Sean Hancock's
sale of the real property located at 48 Miller Rd., Petal,
Mississippi to Brad Childress for $80,000.
The sale is free and clear of all interests, and that any and all
interest, liens and encumbrances attached to said property are
extinguished.
Michael Sean Hancock sought Chapter 11 protection (Bankr. S.D.
Miss. Case No. 18-51989) on Oct. 11, 2018. The Debtor tapped
Jarrett Little, Esq., at Lentz & Little, PA, as counsel.
MILLERS LANE: Exclusivity Period Extended Until March 30
--------------------------------------------------------
Judge Joan Lloyd of the U.S. Bankruptcy Court for the Western
District of Kentucky extended the exclusivity periods for Millers
Lane Center, LLC to file and solicit acceptances for its Chapter 11
plan of reorganization to March 30 and May 14, respectively.
About Millers Lane Center
Millers Lane Center LLC is a privately held company in the general
rental centers industry. Millers Lane sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ky. Case No.
19-32095) on July 2, 2019. In the petition signed by its managing
member, Mark S. Brewer, the Debtor was estimated to have assets and
liabilities of less than $10 million. Kaplan Johnson Abate & Bird
LLP is the Debtor's counsel. The Law Office of C. Thomas Hectus,
is special counsel.
MLAC CASTLE ATLANTA: Taps Jones Lang Lasalle as Real Estate Broker
------------------------------------------------------------------
The MLAC Atlanta Castle, LLC received approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Jones Lang Lasalle Brokerage, Inc. as its real estate broker.
The firm will assist the Debtor in the marketing and sale of its
real property located at 87 15th St., NE, Atlanta. The property
has a current value of $5,750,000 and secured debt of
$4,561,569.30.
Jones Lang Lasalle will get 4 percent of the purchase price as
commission. If two agents are involved, 6 percent commission will
be split between the agents at the firm's discretion. If the
property is sold to Preservelop, LLC or an affiliate, the firm will
only get $50,000.
Scott Cullen, managing director of Jones Lang Lasalle, disclosed in
a court filing that the firm is "disinterested" as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Scott M. Cullen
Jones Lang Lasalle Brokerage, Inc.
3344 Peachtree Road NE Suite 1100
Atlanta, GA 30326
Tel: +1 404 995 2100
Fax: +1 404 995 2184
About The MLAC Castle Atlanta
The MLAC Castle Atlanta, LLC filed a Chapter 11 petition (Bankr.
N.D. Ga. Case No. 19-68220) on Nov. 12, 2019. It is a single asset
real estate debtor as defined in 11 U.S.C. Section 101(51B).
At the time of the filing, the Debtor disclosed assets of between
$1 million and $10 million and liabilities of the same range. The
petition was signed by Bryan Latham, manager.
Judge James R. Sacca oversees the case. The Law Office of Scott B.
Riddle, LLC represents the Debtor as legal counsel.
MLW LLC: Exclusivity Period Extended to Feb. 10
-----------------------------------------------
Judge Erik Kimball of the U.S. Bankruptcy Court for the Southern
District of Florida extended the exclusivity period for MLW, LLC to
file its Chapter 11 plan to Feb. 10 and the period to solicit
acceptances to April 9.
The bankruptcy judge also extended the deadline for the company to
file its plan and disclosure statement to Feb. 10.
The company recently obtained a court order approving the sale of
its real property in Boynton Beach, Fla. The sale remains pending.
MLW said the completion of the sale will have a material impact on
any proposed plan. The company expects its plan to be a liquidating
plan provided that the sale as contemplated is completed.
About MLW LLC
MLW, LLC is the fee simple owner of a real property located at
10207 100th St., South Boynton Beach, Fla. It valued the property
at $1 million.
MLW 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.
The Debtor tapped Furr & Cohen, P.A. as its bankruptcy counsel, and
Nason, Yeager, Gerson, White & Lioce, PA as its special counsel.
The Debtor hired Pavlik Realty LLC and the firm's principal
Mitchell Pavlik to either sell or secure a tenant for the Florida
property.
MODERN POULTRY: Liquidation of Assets to Pay Off Claims
-------------------------------------------------------
Modern Poultry Systems, LLC, has proposed a liquidating plan.
According to the Second Amended Disclosure Statement, the Plan
provides for the Debtor, pursuant to 11 U.S.C. Sec. 363, to sell at
public auction substantially all of its assets and distribute the
net proceeds therefrom according to the Plan.
The Debtor intends to file an application to employ an auctioneer
pursuant to Sec. 327 of the Bankruptcy Code. Any compensation of
the auctioneer is subject to Court approval. The Plan provides
for administrative expense claims, allowed secured, priority
unsecured, and general unsecured claims, one insider claim, and
equity interests, and further provides for dissolution of the
Debtor at the conclusion of the Plan. The net proceeds from the
public auction will be held in the Debtor's attorney's Trust
Account and said attorney will act as the Disbursing Agent of the
funds.
The Plan treats claims as follows:
* Class III. Liberty Bank filed claim #17 asserting a claim for
$7,687.33 secured by a lien on a 2008 Ford F350. The Debtor will
surrender the collateral securing the claim to Liberty Bank as soon
as practicable.
* Class IV. Wells Fargo Financial Leasing, Inc. filed claim #18
asserting a claim for $2,389.54 secured by a lien on a compact
tractor loader and auger valued by the Debtor at $16,000. The
collateral shall be liquidated by public auction and converted to
cash, and Wells Fargo shall be paid in full therefrom on the
Effective Date.
* Class V. Liberty Bank filed claim #23 asserting a claim for
$128,144.82 secured by a lien on inventory as listed in an
inventory list dated Sept. 8, 2017. Liberty Bank has obtained
relief from the stay to liquidate its collateral. The resulting
deficiency claim, if any, shall be satisfied as a Class VI allowed
general unsecured claim.
* Class VI. Allowed general unsecured claims in the amount of
$2,273,763.13 and any additions, other than claims held by
insiders, will be paid pro rata from the available funds after
payment of allowed administrative expenses and allowed priority
claims, if any. The Debtor proposes to pay zero on the claim of
David Haston, which is scheduled as disputed, unliquidated and
contingent, and for which no claim has been filed.
* Class VII. Sec. 101(31)(B) of Title 11, U.S. Code, defines
"insider" to include, if the Debtor is a corporation, a "relative
of a general partner, director, officer or person in control of the
debtor". The Debtor has scheduled as a general unsecured claim a
debt to Willard F. Hooper in the amount of $15,100 for money loaned
to the Debtor. Mr. Hooper is the father of Dale Hooper, sole
member of the Debtor.
On the Effective Date of this Plan, the Debtor will pay all
Administrative Claims, the allowed claim of Wells Fargo Financial
Leasing, Inc., and allowed undisputed priority claims. Thereafter,
within 14 days of a final, non-appealable order resolving the
disputed Class II claim of Caleb Millwood, the Class VI allowed
claims will be paid pro rata from the remaining funds held in the
Debtor-in-Possession's attorney's Trust Account.
A full-text copy of the Second Amended Disclosure Statement dated
Dec. 20, 2019, is available at https://tinyurl.com/tnpulzs from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Tameria S. Driskill
P.O. Box 8505
Gadsden, AL 35902
Tel: (256) 546-5591
MOHAJER12 CORP: May Continue Using Cash Collateral Until Jan. 31
----------------------------------------------------------------
Judge Jerry C. Oldshue, Jr., of the U.S. Bankruptcy Court for the
Southern District of Alabama authorizes Mohajer12 Corp. to use cash
collateral through Jan. 31, 2020.
The Debtor may use cash collateral to pay the monthly medical
insurance premium of its principal, Abdullah Muhammed, and his
immediate family.
The Debtor must remit all remaining cash collateral on a monthly
basis to PNC Bank by the 15th of each month. The Debtor must also
provide copies of bank statements for the debtor-in-possession
account to PNC Bank.
About Mohajer12 Corp.
Mohajer12 Corp. filed for Chapter 11 bankruptcy (Bankr. S.D. Ala.
Case No. 18-02674) on July 3, 2018, estimating less than $1 million
both in assets and liabilities. Barry A. Friedman, Esq., of
Friedman, Poole & Friedman, P.C., serves as the Debtor's counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
MOTHERS TOUCH: To Seek Plan Confirmation Feb. 12
------------------------------------------------
Judge Cynthia A. Norton has ordered that the disclosure statement
of Mothers Touch Learning Center Scenic LLC is conditionally
approved.
Feb. 12, 2020 at 11:00 a.m. is fixed for the hearing on final
approval of the disclosure statement, (if a written objection has
been timely filed), and for the hearing on confirmation of the plan
and related matters at Bankruptcy Courtroom, 222 N. John Q Hammons
Pkwy, Springfield, MO.
Jan. 28, 2020 at 11:00 a.m. by telephone is the date for status
hearing to discuss any confirmation issues that should arise.
Jan. 10, 2020 is the deadline for filing with the Court objections
to the approval of the Disclosure Statement or confirmation of the
Plan.
Jan. 10, 2020 is the deadline for submitting to counsel for the
plan proponent ballots accepting or rejecting the Plan.
As reported in the Troubled Company Reporter, small business debtor
Mother's Touch Learning Center Scenic, LLC, filed a Combined Plan
and Disclosure Statement that proposes to pay creditors of the
Debtor from cash flow from future operations. General unsecured
creditors will be paid 57% of claims through monthly payment
starting January 2022. Member,
Heather Penrod, will continue to receive compensation from the
operation of Debtor's business.
A full-text copy of the Combined Plan and Disclosure Statement
dated Dec. 16, 2019, is available at https://tinyurl.com/r2y8zz4
from PacerMonitor.com at no charge.
About Mother's Touch Learning Center Scenic
Mother's Touch Learning Center Scenic, LLC, is a limited liability
company in good standing with the State of Missouri. It has been
in the business of child daycare since its inception in 2001.
At that point the Debtor had incurred considerable tax debt, so the
Debtor hired an attorney in November 2017 for the purposes of
working out a payment plan with the Internal Revenue Service.
However, the attorney has not been of any assistance in the matter
and therefore the tax debt has not been resolved and has only
gotten larger, thus leading the Debtor to file this Chapter 11
bankruptcy.
Mothers Touch Learning Center Scenic LLC sought Chapter 11
protection (Bankr. W.D. Mo. Case No. 19-60709) on June 19, 2019.
The Debtor is represented by Douglas, Haun & Heidemann, P.C.
MOTIV8 INVESTMENTS: Case Summary & 2 Unsecured Creditors
--------------------------------------------------------
Debtor: Motiv8 Investments, LLC
1949 7th Street
San Fernando, CA 91340
Business Description: Motiv8 Investments, LLC is a privately-held
company in Los Angeles, California, that
operates as a real estate investment company
involved in buying real property, renovating
the properties and reselling them. The
Debtor previously sought bankruptcy
protection on June 11, 2018 (Bankr. C.D.
Calif. Case No. 18-16732).
Chapter 11 Petition Date: January 21, 2020
Court: United States Bankruptcy Court
Central District of California
Case No.: 20-10142
Debtor's Counsel: Lionel E. Giron, Esq.
LAW OFFICES OF LIONEL E. GIRON, PC
337 N. Vineyard Ave., Suite 100
Ontario, CA 91764
Tel: 909-397-7260
E-mail: ecf@lglawoffices.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sergio Moreno Morales, manager.
A copy of the petition containing, among other items, a list of the
Debtor's two unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/kEfMtK
MY KIDZ DENTIST: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The Office of the U.S. Trustee on Jan. 16, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 cases of My Kidz Dentist of
Fayetteville LLC, My Kidz Dentist of Carrollton PC, and My Kidz
Dentist PC.
About My Kidz Dentist
Pediatric dental clinics My Kidz Dentist PC, My Kidz Dentist of
Carrollton and My Kidz Dentist of Fayetteville LLC filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ga. Case Numbers 19-12506, 19-12507 and 19-12508,
respectively) on Dec. 13, 2019.
In the petitions signed by Dr. Lona Bibbs-Walker, authorized
representative, My Kidz Dentist PC disclosed $6,266,597 in assets
and $2,789,640 in liabilities; My Kidz Dentist of Carrollton
dislcosed $3,202,708 in assets and $1,407,183 in liabilities; and
My Kidz Dentist of Fayetteville disclosed $6,106,233 in assets and
$902,443 in liabilities.
Ian M. Falcone, Esq., at The Falcon Law Firm, P.C., is the Debtors'
legal counsel.
NATIONAL RADIOLOGY: $50K Sale of Accounts Receivables Approved
--------------------------------------------------------------
Judge Catherine Peek McEwen of the U.S. Bankruptcy Court for the
Middle District of Florida authorized National Radiology
Consultants, P.A.'s sale of its accounts receivable (which are
substantially all of the Debtor's assets) and bad debt to Premium
Asset Recovery Corp. or its assignee RCS Recovery Services, LLC for
$50,000, pursuant to their Account Purchase and Sale Agreement.
A hearing on the Motion was held on Dec. 19, 2019 at 3:30 p.m.
The sale is free and clear of all liens, claims, and interest.
The proceeds from the sale may be distributed upon agreement
between the administrative claimants and JP Morgan Chase Bank,
N.A., or, further order by the Court.
Notwithstanding Bankruptcy Rules 6004(h) and 6006(d), the terms and
conditions of the Order will be immediately effective and
enforceable upon its entry and there will be no stay of its
execution or effectiveness.
Dr. James Okoh will be considered the records custodian or owner
for all compliance and regulatory requirements. Okoh will preserve
the records accordingly and at the appropriate time seek Court
approval to dispose of the records. If the case has been closed,
Okoh will not be required to pay a reopen fee in seeking Court
approval to dispose of the records. The Debtor may file the
appropriate documents on SunBiz providing further notice, service
and subpoenas should be made on Okoh.
A copy of the APA is available at https://tinyurl.com/uc8eqh3 from
PacerMonitor.com at no charge.
About National Radiology Consultants
National Radiology Consultants, P.A., is healthcare practice
management provider, specializing in radiology, anesthesiology,
emergency, and hospital medicine solutions. National Radiology
Consultants filed a Chapter 11 bankruptcy petition (Bankr. M.D.
Fla. Case No. 19-01274) on Feb. 15, 2019. In the petition signed
by Jame Okoh, M.D., president and CEO, the Debtor disclosed
$18,709,234 in assets and $4,925,568 in liabilities. The Debtor is
represented by Daniel E. Etlinger, Esq., at Jennis Law Firm.
NEW BEGINNERS: Court Approves Disclosure Statement
--------------------------------------------------
Judge Lena Mansori James has ordered that the Disclosure Statement
filed by The New Beginners Church, Inc., is approved.
A hearing on the confirmation of the Plan will be held on Feb. 5,
2020 at 2:00 p.m. in the following location: First Floor Courtroom,
601 West 4th Street, Winston-Salem, NC 27101.
The 22nd day of January, 2020 is fixed as the last day for filing
written objections to the Plan.
The 22nd day of January, 2020 is fixed as the last day for filing
written acceptances or rejections to the Plan.
About The New Beginners Church
The New Beginners Church was established by Dr. Emma J. Terrell on
April 3, 1988. The first location of the church was in her home.
The church started growing and moved to new locations in order to
accommodate this growth. Dr. Terrell was joined by her son Howard
R. Terrell Jr. who started different outreach programs. In 1996
New Beginners entered into an agreement to purchase 16 acres at
7000 Burlington Road in Whitsett, North Carolina. New Beginners
continued to thrive and soon outgrew the existing building on the
land and in 2000 built a bigger sanctuary. This created another
financial burden but the church was able to maintain the debt
structure. In 2014, Dr. Terrell's husband became ill and this
required a large time commitment and in 2017 he died suddenly.
The New Beginners Church, Inc. sought protection under Chapter 11
of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 19-10385) on April
9, 2019. The Debtor tapped the Law Firm of Ivey, McClellan, Gatton
& Siegmund as its bankruptcy counsel.
NEW PHOENIX: May Obtain $50,000 DIP Loan on Final Basis
-------------------------------------------------------
The Bankruptcy Court authorized New Phoenix Metals, Ltd., to obtain
$50,000 of super priority, secured postpetition financing from TRT
SPV, LLC.
The DIP term sheet disclosed, among others, that:
* the DIP loan will accrue interest at the contract rate of 6%
per annum.
* after the occurrence and during a continuing event of default,
all outstanding amounts under the DIP loan will bear interest at
18% per annum or the greatest amount allowed by law, whichever is
lesser.
* the DIP loan and all amounts due under the DIP credit facility
will be repaid in full 60 days after funding unless assumed by a
third party and modified by agreement between the lender and the
third party.
The Court ruled that as adequate protection, to the extent of any
diminution of the value of collateral, TRT SPV, LLC and the
Debtor's other properly perfected pre-petition secured lenders will
each be granted a post-petition security interest in, and
replacement lien upon the Debtor's assets and property that
previously secured each respective lender's claim.
The Court further ruled that the claims of the lender under the DIP
Term Sheet, DIP Credit Facility, and DIP Loan will, subject to the
carve-out, be:
(a) entitled to super-priority administrative expense claim
status under Section 364(c)(1) of the Bankruptcy Code;
(b) secured by a perfected first priority security interest and
lien on all property of the Debtor that is currently unencumbered,
as allowed by Section 364(c)(2);
(c) secured by a perfected security interest and junior lien on
all property of the Debtor subject to a pre-existing properly
perfected lien, as allowed by Section 364(c)(3); and
(d) secured by a properly perfected priming security interest
and lien on all property of Debtor subject to a prepetition
properly perfected first lien in favor of lender.
All claims of lender under the DIP credit facility will constitute
claims having super-priority over all administrative expenses of
the kind specified in Sections 105, 326, 328, 330, 331, 503(b),
506(c), 507(a), 507(b), 546(c), 552(b), 726, 1113, 1114 or any
other provisions of the Bankruptcy Code, subject only to the
carve-out, the Court ruled.
A copy of the final DIP order is available free of charge at
https://tinyurl.com/uslbfbq from PacerMonitor.com.
The DIP loan will be used as postpetition working capital and to
fund the costs and expenses of the Debtor's expedited sale
processes.
About New Phoenix Metals
Established in 1998, New Phoenix Metals, Ltd., is a residential and
industrial recycling company. The industrial division services
companies in a four-state region (Oklahoma, Texas, Arkansas, and
Louisiana) and its facility in Greenville, Texas, serves the public
and small scrap dealers of Northeast Texas and Southern Oklahoma.
New Phoenix Metals is a full-service industrial recycling company
located in Greenville, Texas (40 miles Northeast of Dallas). New
Phoenix Metals also has a residential division for recycling
household scrap metals including aluminum, steel, copper and
brass.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Tex. Case No. 16-32075) on May 26, 2016. The
petition was signed by Marcus D. Carl, partner.
The case is assigned to Judge Stacey G. Jernigan.
At the time of the filing, the Debtor was estimated to have assets
and liabilities at $1 million to $10 million.
OLD DOMINION: Seeks to Hire McDowell Rice as Legal Counsel
----------------------------------------------------------
Old Dominion Apparel Corporation seeks approval from the U.S.
Bankruptcy Court for the District of Kansas to employ Mcdowell Rice
Smith & Buchanan, PC as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor of its powers and duties in the continued
operation of its business and management of its properties;
b. attend meetings and negotiate with representatives of
creditors and other parties on matters affecting the Debtor's
business operations, claims by and against its bankruptcy estate,
and issues relating to its reorganization;
c. prepare motions, responsive pleadings, complaints and other
legal documents;
d. take all necessary action to protect and preserve the
Debtor's estate including the prosecution of actions on its behalf,
the defense of any actions commenced against the Debtor or the
estate, negotiations concerning the litigation in which the Debtor
may be involved, and objections to claims filed against the
estate;
e. attend hearings and present the Debtor's positions on the
applicable issues;
f. assist in negotiations related to the Debtor's use of cash
collateral, debtor-in-possession financing, sales of assets,
contracts and lease agreements;
g. prepare and seek approval of the Debtor's disclosure
statement and plan of reorganization;
h. handle all appeals of the Debtor and appear before any
appellate courts to present the positions of the Debtor and the
estate; and
i. address all requirements of the Office of the U.S.
Trustee.
The hourly rates charged by the firm are:
Shareholder $210 - $550
Associate $175 - $190
Paralegals $75 - $150
Jonathan Margolies, Esq., at McDowell, disclosed in a court filing
that his firm has no connection with the Debtor or any of its
creditors.
The firm can be reached through:
Jonathan A. Margolies, Esq.
McDowell, Rice, Smith & Buchanan, PC
605 W. 47th Street, Suite 350
Kansas City, MO 64112
Tel: 816-753-5400
Fax: 816-753-9996
Email: jmargolies@mcdowellrice.com
About Old Dominion Apparel Corporation
Old Dominion Apparel Corporation is a single asset real estate
debtor (as defined in 11 U.S.C. Section 101(51B).
Old Dominion Apparel Corporation sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Kan. Case No. 19-41543) on Dec.
18, 2019. The petition was signed by Matthew Gray, authorized
representative. At the time of the filing, the Debtor estimated $1
million to $10 million in both assets and liabilities. Judge Dale
L. Somers oversees the case. Jonathan A. Margolies, Esq., at
Mcdowell Rice Smith & Buchanan, is the Debtor's legal counsel.
ORANGE COUNTY: Saddozai Proceeds May Result in 100% Plan
--------------------------------------------------------
Orange County Bail Bonds, Inc., filed a reorganization plan that
will pay 100% of all allowed claims. The Plan will be funded
through the Saddozai Proceeds and Debtor's operation and management
of its business.
The Debtor continues to be current on all payroll and payroll taxes
obligations and operating expenses except amounts owing to the
Landlord under the Lease. The Debtor anticipates that it will
complete foreclosure of the Saddozai Residence by the end of May
2020. Pursuant to Debtor's Projections, the Debtor will annually
generate net ordinary income in excess of $100,000.
The Plan treats unsecured claims as follows:
* Class 2 - General Unsecured Claims (Undisputed). IMPAIRED.
Claims Amount: $62,155.07 (est.). Allowed General Unsecured Claims
will accrue interest at the federal judgment rate and will receive
quarterly payments on a pro rata basis with Class 3 and 5 (except
Class 5 will waive sharing pro rata if Class 3 votes in favor of
the Plan), beginning on the first date of each calendar quarter
following the Effective Date until their claims are paid in full.
* Class 3 - General Unsecured Claim of Global (Disputed).
IMPAIRED. Claim Amount: $545,879.23. Global will accrue interest at
the federal judgment rate. Pending the outcome of the Global
Appeal, Debtor will pay quarterly into the Global Escrow Account
Plan Payments on a pro rata bases with the Class 2 and 5 (except
Class 5 will waive sharing pro rata if Class 3 votes in favor of
the Plan), beginning on the first date of each calendar quarter
following the Effective Date until Class 3 is paid in full. If
Global prevails on the Global Appeal, then Debtor will pay to
Global all monies in the Global Escrow Account and commence
quarterly payments to Global from the Plan Payments on a pro rata
basis with Class 2 and 5 (except Class 5 will waive sharing pro
rata if Class 3 votes in favor of the Plan) until Class 3 is paid
in full. If Debtor prevails on the Global Appeal, all funds in the
Global Escrow Account shall be turned over to Debtor. When the
Saddozai Residence is foreclosed upon, sold, and Debtor obtains the
Saddozai Proceeds, within ten (10) days of actual receipt of the
Saddozai Proceeds, Debtor will retain $50,000 for post-confirmation
business operations, and then will pay (after reserving for
Disputed Claims) to Class 3 creditors their share of such remaining
funds pro rata with Class 2 and 5 (except Class 5 will waive
sharing pro rata if Class 3 votes in favor of the Plan).
* Class 4 - General Unsecured Claims (Contingent and
Unliquidated). UNIMPAIRED. Claims Amount: $7,831,800.00 (estimate).
Class 6 is the contingent and unliquidated claim of American that
Debtor filed a proof of claim for an estimate of potential exposure
that Debtor has in relation to outstanding bonds. This amount is
not due or payable unless a defendant fails to appear in court, and
the Debtor is unable to apprehend and surrender the defendant
within six months. At this time, the Debtor only has $10,000 of
this type of debt which it anticipates American will be paid by the
Indemnitor pursuant to the Surety Bond Agreement. If a Claim
arises for Class 4, Debtor will have one (1) year to monetize any
collateral it has in relation to the bond that the Class 4
creditor's claim arises from, and pay the proceeds from such
monetized collateral to the Class 4 creditor. If the Class 4
creditor's claim is not paid in full from the monetization of such
collateral, then the Class 4 creditor will share in the Plan
Payments pro rata with Class 2, 3 and 5 (except Class 5 will waive
sharing pro rata if Class 3 votes in favor of the Plan).
* Class 5 - Insider Unsecured Claims. IMPAIRED. Prepetition
loans and back rent $496,926.90. Allowed Insider Unsecured Claims
will accrue interest at the federal judgment rate and will receive
quarterly payments on a pro rata basis with Class 2 and 3,
beginning on the first date of each calendar quarter following the
Effective Date until their claims are paid in full.
A full-text copy of the Disclosure Statement dated Dec. 20, 2019,
is available at https://tinyurl.com/r3z7hdp from PacerMonitor.com
at no charge.
Attorneys for Orange County Bail Bonds, Inc.:
Marc C. Forsythe
Ryan S. Riddles
GOE FORSYTHE & HODGES LLP
18101 Von Karman Ave., Suite 1200
Telephone: (949) 798-2460
Facsimile: (949) 955-9437
Irvine, CA 92612
E-mail: mforsythe@goeforlaw.com
rriddles@goeforlaw.com
About Orange County Bail Bonds
Orange County Bail Bonds Inc. -- http://www.bailall.com/-- is a
bail bond service headquartered in Santa Ana, Calif. The company
is family owned and operated, and specializes in bail bonds for
drug-related and drunk driving DUI offenses, spousal abuse and
domestic violence charges, prostitution solicitation charges,
felonies, and misdemeanors. Starting in 1963, the company has been
servicing Orange County, Los Angeles, Riverside, San Bernardino,
and San Diego.
Orange County Bail Bonds sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-12411) on June 21,
2019. At the time of the filing, the Debtor estimated assets of
less than $1 million and liabilities of between $1 million and $10
million. The case is assigned to Judge Erithe A. Smith. Marc
Forsythe, Esq., at Goe & Forsythe, LLP is the Debtor's counsel; and
Griffiths Diehl & Company, Inc., as accountant to the Debtor.
PADDOCK ENTERPRISES: U.S. Trustee Forms 9-Member Committee
----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 on Jan. 16, 2020, formed a
committee that will represent asbestos claimants of Paddock
Enterprises, LLC. The asbestos claimants appointed to serve on the
committee are:
1. Ernest Moseto
c/o Simmons Hanly Conroy
One Court Street
Alton, IL 62002
Tel: 618259-2222
Fax: 618-259-2251
2. Troy Baldwin
Special Administrator for the
Estate of James Baldwin
c/o The Gori Law Firm
156 North Main Street
Edwardsville, IL 62025
Tel: 618-659-9833
Fax: 618659-9834
3. Kristal Smith Stone
c/o Cooney & Conway
120 N. LaSalle, 30th Floor
Chicago, IL 60602
Tel: 312-236-6166
Fax: 312-236-3029
4. Candus Ranshaw, Ind., and as the Special
Administrator for the Estate of Frank J. Gawel
c/o MRHFM Law Firm
1015 Locust Street, Suite 1200
Saint Louis MO 63101
Tel: 314241-2003
Fax: 314-241-4838
5. Gary Richard Batteiger
c/o O'Brien Law Firm
815 Geyer Avenue
St. Louis, MO 63104
Tel: 314-588-0558
Fax: 314-588-0634
6. Kenneth Hagerman
c/o Bergman, Draper
Oslund, Udo
821 Second Avenue, Suite 2100
Seattle, WA 98104
Tel: 206-957-9510
Fax: 206-957-9549
7. Allene Wallace
c/o Levy Konigsberg, LLP
800 Third Avenue
New York, NY 10022
Tel: 212-605-6200
Fax: 212-605-6290
8. John H. Peckham
c/o Waters & Kraus, LLP
3141 Hood Street, Suite 700
Dallas, TX 75219
Tel: 214-357-6244
Fax: 214-357-7152
9. Joseph Solazzo, III as the Administrator
of the Estate of Joseph Solazzo, Jr.
c/o Weitz & Luxenberg, PC
700 Broadway
New York, NY 10003
Tel: 212-558-5650
Fax: 212-3445461
About Paddock Enterprises
Paddock Enterprises, LLC's business operations are exclusively
focused on (i) owning and managing certain real property and (ii)
owning interests in, and managing the operations of, its non-debtor
subsidiary, Meigs, which is developing an active real estate
business. It is the successor-by-merger to Owens-Illinois, Inc.,
which previously served as the ultimate parent of the company.
Paddock Enterprises is a direct, wholly owned subsidiary of O-I
Glass.
Paddock Enterprises sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 20-10028) on Jan. 6, 2020.
At the time of the filing, the Debtor disclosed assets of between
$100 million and $500 million and liabilities of the same range.
Judge Laurie Selber Silverstein oversees the case.
The Debtor tapped Richards, Layton & Finger, P.A. and Latham &
Watkins LLP as legal counsel; Alvarez & Marsal North America, LLC
as financial advisor; and Prime Clerk, LLC as claims, noticing and
solicitation agent and administrative advisor.
PAE HOLDING: S&P Alters Outlook to Positive, Affirms 'B' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook on PAE Holding Corp. to
positive from stable and affirmed its 'B' issuer credit rating on
the government services provider.
At the same time, S&P affirmed its 'B+' and 'CCC+' issue-level
ratings on the company's first-lien and second-lien debt,
respectively. The recovery ratings remain '2' and '6',
respectively.
The positive outlook reflects S&P's expectation that PAE's debt to
EBITDA will improve to below 5x in 2020 as it uses cash from its
acquisition by Gores Holdings III Inc. to repay debt. Gores is
acquiring PAE for a cash purchase price of $620 million from its
private-equity sponsor, Platinum Equity, and plans to use $160
million of the proceeds to pay down its second-lien term loan. The
transaction will result in PAE becoming a publicly traded company
and Platinum Equity, with a less than 30% stake, will no longer
control the company. Even after accounting for transaction fees and
expenses, S&P expects debt to EBITDA to be 4.5x-5x in 2020, down
from its previous expectations of 6x-6.5x. S&P expects leverage to
improve in 2021 due to the absence of such fees, modest organic
revenue growth, and regularly scheduled debt amortization.
The positive outlook on PAE reflects S&P's expectation that the
company's debt leverage will decrease to the 4.5x-5x range in 2020
because it will use the proceeds from the merger to repay debt. The
rating agency also expects the company to report modest organic
earnings growth after divesting its ISR business.
Upside scenario
S&P said it could raise its rating on PAE if it believes debt to
EBITDA will drop below 5x and remain there even with potential
acquisitions. This could occur if the company's EBITDA margins
improve above 5.5% due to the removal of less profitable business
and growth on higher margin programs, according to the rating
agency.
Downside scenario
S&P said it could revise the outlook to stable if it believes debt
to EBITDA will remain above 5x for an extended period. This could
be due to EBITDA margins failing to rise to expected levels, or
significant debt-financed acquisitions, according to the rating
agency. S&P said it could also revise the outlook to stable if the
transaction does not close.
PATRIOT SCIENTIFIC: Incurs $513K Net Loss for Nov. 30 Quarter
-------------------------------------------------------------
Patriot Scientific Corporation filed its quarterly report on Form
10-Q, disclosing a net loss of $513,104 on $0 of revenue for the
three months ended Nov. 30, 2019, compared to a net loss of
$152,122 on $0 of revenue for the same period in 2018.
At Nov. 30, 2019, the Company had total assets of $1,281,738, total
liabilities of $441,549, and $840,189 in total stockholders'
equity.
The Company said, "The Report of Independent Registered Public
Accounting Firm on our May 31, 2019 consolidated financial
statements includes an explanatory paragraph stating that the
recurring losses and negative cash flows from operations, combined
with our substantial reliance on cash generated by PDS, raise
substantial doubt about our ability to continue as a going
concern."
A copy of the Form 10-Q is available at:
https://is.gd/iqXN1k
Patriot Scientific Corporation focuses on commercializing
microprocessor technologies through broad and open licensing. The
company was founded in 1987 and is based in Carlsbad, California.
PETROSHARE CORP: Unsecureds to Recover 6.9% in Plan
---------------------------------------------------
Petroshare Corp. and CFW Resources, LLC., filed a Plan of
Reorganization, which provides the sale of 100% of the Debtors'
assets to Providence Wattenberg, LP and 5NR Wattenberg, LLC in
their capacity as Plan Sponsors.
The Plan also provides:
* The Plan Sponsors' contribution to the GUC Recovery Fund to
the PetroShare Creditor Trust in exchange for a full and complete
release of the Plan Sponsors,
* Providence Energy's contribution to the GUC Recovery Fund to
the PetroShare Creditor Trust, including subordination of its Class
4 Secured Claim below Class 5 General Unsecured Claims in exchange
for full and complete releases of Providence Energy,
* The subordination to Class 5 General Unsecured Claims of all
unsecured claims held or controlled by both Liberty and 1888,
* The preservation and retention of certain Retained Claims for
the benefit of the PetroShare Creditor Trust and Class 5 General
Unsecured Claims, and
* The Distribution to holders of Allowed Claims in accordance
with the priority scheme established by the Bankruptcy Code and the
terms of the Plan.
The Distribution Fund will be used to satisfy Allowed
Administrative Claims, Allowed Other Secured Claims, Allowed
Priority Tax Claims and Allowed Priority Unsecured Non-Tax Claims,
consistent with Section 1129 of the Bankruptcy Code. All of the
foregoing Allowed Claims will be satisfied in full.
The Plan treats claims as follows:
-- Class 2 Prepetition Lenders Secured Claims. IMPAIRED.
Estimated amount of claims $14,299,435. Projected recovery [100]%.
The Prepetition Lenders’ Secured Claim shall be Allowed and, on
the Effective Date, shall receive, in full satisfaction,
settlement, release, and discharge of and in exchange for such
Allowed Class 2 Claim, the Acquired Assets.
-- Class 3 W&E Lienholder Claims. Treatment for classes 3A to
3G: Receipt of a W&E Note from the Plan Sponsors secured by the
assets securing such W&E Lienholders’ Claim prepetition.
-- Class 3A 1888. IMPAIRED. Estimated amount of claims
$1,104,534. Projected recovery 100%.
-- Class 3B Liberty. IMPAIRED. Estimated amount of claims
$6,145,662. Projected recovery 100%.
-- Class 3C Excell Services. IMPAIRED. Estimated amount of
claims $445,717. Projected recovery 100%.
-- Class 3D CTAP. IMPAIRED. Estimated amount of claims $216,454.
Projected recovery 100%.
-- Class 3E Tasman. IMPAIRED. Estimated amount of claims
$365,150. Projected recovery 100%.
-- Class 3F M&M Excavation. IMPAIRED. Estimated amount of claims
$246,607. Projected recovery 100%.
-- Class 3G Cartel Drilling. IMPAIRED. Estimated amount of
claims $358,636. Projected recovery 100%.
-- Class 4 Providence Energy Corp. Secured Claims. IMPAIRED.
Projected recovery 0%. As set forth in the Plan, on the Effective
Date, a fifteen (15%) percent interest in the Providence Energy D&O
Claims (which constitute a portion of the Providence Energy
Contributions), shall be assigned to the PetroShare Creditor Trust
for the benefit of Class 5 Allowed General Unsecured Claims.
-- Class 5 General Unsecured Claims. IMPAIRED. Estimated amount
of claims $21,759,651. Projected recovery 6.9%. Each Holder of an
Allowed Claim in Class 5, shall receive, in full satisfaction,
settlement, release, and discharge of and in exchange for such
Allowed Claims, a pro rata distribution from the GUC Recovery Fund
(including any pro rata distribution from proceeds resulting from
any Retained Claims).
-- Class 6 Intercompany Claims. IMPAIRED. Estimated amount of
claims $396,895. Projected recovery 0%. No Distributions will be
made to holders of Allowed Intercompany Claims.
-- Class 7 Equity Interests. IMPAIRED. Projected recovery 0%. No
Distributions will be made to holders of Equity Interests. On the
Effective Date, all existing Equity Interests in PetroShare shall
be preserved and shall continue to be owned by their current
Holders.
On or before the Effective Date (but effective on the Effective
Date), the Debtors shall pay to the PetroShare Creditor Trust Cash
sufficient to fund all actual and estimated amounts reasonably
necessary and as required to fund the Distribution Fund, the
Carve-Out Fund, and the GUC Recovery Fund.
A full-text copy of the Disclosure Statement dated Dec. 20, 2019,
is available at https://tinyurl.com/ubmhbh2 from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Trey Monsour
POLSINELLI PC
1000 Louisiana Street, Suite 6400
Houston, TX 77002
Telephone: (713) 374-1643
E-mail: tmonsour@polsinelli.com
- and -
Caryn E. Wang
1201 West Peachtree Street NW, Suite 1100
Atlanta, Georgia 30309
Telephone: (404) 253-6016
E-mail: cewang@polsinelli.com
About PetroShare Corp.
Colorado-based PetroShare Corp. (OTCQB:PRHR) --
http://www.petrosharecorp.com/-- investigates, acquires, and
develops crude oil and natural gas properties in the Rocky Mountain
or mid-continent portion of the United States, specifically focused
in the Denver-Julesburg Basin in northeast Colorado.
On Sept. 4, 2019, PetroShare Corp. and affiliate CFW Resources LLC
sought Chapter 11 protection (Bankr. D. Colo. Lead Case No.
19-17633).
As of June 30, 2019, PetroShare Corp. disclosed $36,927,856 in
assets and $45,100,988 in liabilities.
The Debtors tapped Polsinelli PC as legal counsel; BMC Group, Inc.
as claims and noticing agent; Gordian Group, LLC as investment
banker; and MACCO Restructuring Group LLC as financial advisor.
Mr. Drew McManigle from MACCO has been retained by the Debtors as
chief restructuring officer.
PHIO PHARMACEUTICALS: Effects 1-for-55 Reverse Stock Split
----------------------------------------------------------
Phio Pharmaceuticals Corp.'s Board of Directors has approved a
reverse stock split of the Company's shares of common stock at a
ratio of 1-for-55. The reverse stock split will become effective
at 12:01 a.m. Eastern Time on Jan. 15, 2020 and the Company's
common stock will open for trading on The Nasdaq Capital Market on
a post-split basis on Jan. 15, 2020 under the Company's existing
trading symbol, "PHIO." At such time, the Company's common stock
will also commence trading with a new CUSIP number, 71880W303.
At the Company's Special Stockholder Meeting held on Jan. 10, 2020,
Phio's stockholders approved a reverse stock split within a range
of 1-for-2 and 1-for-70. Thereafter, the Board of Directors
determined to fix the ratio for the reverse stock split at
1-for-55.
The reverse stock split is being implemented to increase the per
share trading price of the Company's common stock for the purpose
of ensuring a share price high enough to comply with the minimum
$1.00 bid price requirement for continued listing on The Nasdaq
Capital Market. At the effective time of the reverse stock split,
every fifty-five shares of Phio common stock issued and outstanding
will be combined into one share of common stock issued and
outstanding, with no change to the par value of $0.0001 per share.
This will reduce the Company's outstanding common stock from
approximately 36.8 million shares to approximately 0.67 million
shares. No fractional shares of common stock will be issued as a
result of the reverse stock split and instead holders of Phio
common stock will receive a cash payment in lieu of fractional
shares to which they would otherwise be entitled. The shares
underlying the Company's outstanding equity awards and warrants
will also be adjusted accordingly.
The Company has retained its transfer agent, Computershare Trust
Company, N.A., to act as its exchange agent for the reverse split.
Shareholders with shares held in certificate form will receive from
Computershare instructions regarding the exchange of their
certificates. Shareholders that hold shares in book-entry form or
hold their shares in brokerage accounts are not required to take
any action and will see the impact of the reverse stock split
reflected in their accounts, subject to brokers' particular
processes. Beneficial holders of Phio common stock are encouraged
to contact their bank, broker, custodian or other nominee with
questions regarding procedures for processing the reverse stock
split.
About Phio Pharmaceuticals Corp.
Phio Pharmaceuticals Corp. -- http://www.phiopharma.com/-- is a
biotechnology company developing the next generation of
immuno-oncology therapeutics based on its self-delivering RNAi
therapeutic platform. The Company's efforts are focused on
silencing tumor-induced suppression of the immune system through
its proprietary INTASYL platform with utility in immune cells
and/or the tumor micro-environment. On Nov. 19, 2018, the Company
changed its name from RXi Pharmaceuticals Corporation to Phio
Pharmaceuticals Corp., which reflects the Company's transition from
a platform company to one that is fully committed to develop
groundbreaking immuno-oncology therapeutics.
Phio reported a net loss of $7.36 million in 2018 following a net
loss of $12.45 million in 2017. As of Sept. 30, 2019, the Company
had $10.08 million in total assets, $2.47 million in total
liabilities, and $7.60 million in total stockholders' equity.
On Nov. 12, 2019, the Company received written notice from the
Nasdaq Listing Qualifications Department indicating that, based
upon the Company's continued non-compliance with the minimum $1.00
bid price requirement, the Company securities were subject to
delisting unless the Company timely requested a hearing before the
Panel.
PHYTO-PLUS INC: Judge Authorizes Use of Cash Collateral
-------------------------------------------------------
Judge Michael G. Williamson of the Bankruptcy Court for the Middle
District of Florida authorized Phyto-Plus, Inc., to use the cash
collateral of CHTD Company and CT Corporation System.
The Debtor is authorized to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the U.S.
Trustee for quarterly fees; (b) the current and necessary expenses
set forth in the budget, plus an amount not to exceed 10% for each
line item; and (c) such additional amounts as may be expressly
approved in writing by the Secured Creditors.
The Secured Creditors will have perfected post-petition liens
against cash collateral to the same extent and with the same
validity and priority as the prepetition lien, without the need to
file or execute any document as may otherwise be required under
applicable non bankruptcy law
The Debtor will grant the Secured Creditors access to its business
records and premises for inspection. The Debtor must also maintain
insurance coverage for its property in accordance with the
obligations under the loan and security documents with the Secured
Creditors.
About Phyto-Plus
Phyto-Plus Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-10837) on Nov. 14,
2019. At the time of the filing, the Debtor disclosed assets of
between $100,001 and $500,000 and liabilities of the same range.
Judge Michael G. Williamson oversees the case. Buddy D. Ford, P.A.
is the Debtor's legal counsel.
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case.
PONCE REAL ESTATE: 7-Day Extension for Amended Disclosures Okayed
-----------------------------------------------------------------
Ponce Real Estate Corp. in December 2019 sought and obtained from
the bankruptcy court in Puerto Rico a 21-day extension to file an
amended plan and disclosure statement.
On Jan. 13, 2020, the Debtor filed a motion seeking a 7-day
extension of the deadline. The Debtor's counsel explained that
that the recent earthquake and tremors mostly affecting the
southwestern district of Puerto Rico, including downtown areas in
the city of Ponce, were most of the Debtor's real properties are
located. Also, the power in the San Juan metropolitan area was
disrupted for various days, including the building where the
counsel's office is located. At present, counsel said that it was
waiting for a preliminary report by the Debtor of the conditions of
the properties of the estate as well as those not part of the
estate serving as collateral for the Debtor's loans with Triangle
REO PR Corp., the largest creditor.
Judge Edward A. Godoy on Jan. 16 granted the 7-day extension.
About Ponce Real Estate Corp.
Ponce Real Estate Corp., a real estate company headquartered in
Ponce, Puerto Rico, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-06805) on Nov. 24,
2018.
At the time of the filing, the Debtor estimated assets of $1
million to $10 million and liabilities of the same range. The
Debtor tapped EMG Despacho Legal, CRL as its legal counsel, and
Tamarez CPA, LLC as its accountant.
PRIDE TRUCK WASH: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Pride Truck Wash, LLC, "Shepherdsville Series"
Pride Truck Wash, LLC
Pride Truck Wash, LLC-Franklin Series
Pride Truck Wash, llc, Hebron Series
Pride Truck Wash, LLC - Hebron, LLC
DBA Diesel Pride
500 S. Polk St., Ste. 16
Greenwood, IN 46143
Business Description: Pride Truck Wash, LLC provides washing
services. The Company also performs
trailer, cars, trucks, and RV washouts.
Chapter 11 Petition Date: January 20, 2020
Court: United States Bankruptcy Court
Southern District of Indiana
Case No.: 20-00322
Debtor's Counsel: KC Cohen, Esq.
KC COHEN, LAWYER, PC
151 N Delaware St., Ste. 1106
Indianapolis, IN 46204
Tel: 317-715-1845
E-mail: kc@smallbusiness11.com
Total Assets: $1,514,602
Total Liabilities: $2,700,305
The petition was signed by Jay Bryant, president/managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/ZI9uPf
PROFESSIONAL RESOURCES: Taps DiRecManagement as Collection Agent
----------------------------------------------------------------
Professional Resources Management of Crenshaw, LLC, seeks approval
from the U.S. Bankruptcy Court for the Middle District of Alabama
to hire DiRecManagement, Inc. as collection agent to pursue
delinquent and unpaid accounts receivable.
The Debtor requires DiRecManagement to:
a. draft and mail collection letters to the Debtor's obligors;
and
b. initiate and conduct litigation as necessary to collect
accounts receivable.
DiRecManagement's commissions are:
a. 30 percent of all successful cash collections on all first
placed accounts, paid prior to placmenet of account with an
attorney for suit;
b. 50 percent of all successful cash collections on all second
placed accounts, pair prior to placement of account with an
attorney for suit;
c. 40 percent of all successful cash collections on accounts
with dates of service older than one year;
d. 40 percent of all payments on claims forwarded to attorneys
for litigation.
DiRecManagement does not represent or hold any interest adverse to
the Debtor or the Debtor's Estate with respect to the matters in
which it is to be employed and is a disinterested person as defined
by 11 U.S.C. Sec. 101(14), as disclosed in the court filings.
DiRecManagement can be reached at:
L. Wayne McBride
DiRecManagement, Inc.
4320 Downtowner Loop South, Suite A
Mobile, AL 36609
Tel: 251-344-6660
Toll Free: 888-344-3408
Fax: 251-344-6885
About Professional Resources Management
Founded in 2005, Professional Resources Management of Crenshaw,
LLC, provides general medical and surgical hospital services.
Crenshaw Community Hospital has 65 beds and offers a range of
diagnostic, therapeutic, emergency and surgical services.
Professional Resources sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Ala. Case No. 19-33272) on Nov. 7,
2019. At the time of the filing, the Debtor had estimated assets
of less than $50,000 and liabilities of between $1 million and $10
million. The case has been assigned to Judge William R. Sawyer.
Memory Memory & Causby, LLP, is the Debtor's legal counsel.
QUALITY REIMBURSEMENT: Hires Foley & Lardner as Special Counsel
---------------------------------------------------------------
Quality Reimbursement Services, Inc., seeks authorization from the
U.S. Bankruptcy Court for the Central District of California to
Foley & Lardner LLP as the its special counsel.
The Debtor requires Foley & Lardner to:
a. represent hundreds of the Debtor's hospital clients in an
ongoing case pending in the U.S. Court of Appeals for the D.C.
Circuit challenging a Medicare rate reduction;
b. represent dozens of the Debtor's hospital clients in
ongoing court proceedings pending in the U.S. District Court for
the District of Columbia challenging agency action impacting
Medicare reimbursement;
c. represent the Debtor's hospital client in connection with
appealing a Provider Reimbursement Review Board (PRRB) decision in
a court case currently pending in the U.S. District Court for the
District of Columbia;
d. represent four of the Debtor's hospital clients in
connection with appealing PRRB decisions in a court case currently
pending in the U.S. District Court for the District of Columbia;
e. represent the Debtor's hospital client in connection with
appealing a PRRB decision in a court case currently pending in the
U.S. District Court for the Middle District of North Carolina;
f. represent dozens of the Debtor's hospital clients in a
Medicare reimbursement matter pending in the U.S. District Court
for the District of Connecticut;
g. assist the Debtor in attempt to obtain additional
reimbursement for hospital clients whose appeals are currently
pending before the PRRB; and
h. assist the Debtor in attempting to determine from the
Centers for Medicare & Medicaid Services why certain data is
missing from the agency's records.
Foley & Lardner's compensation are:
Partners $720 to $900
Senior Counsel $620 to $700
Associates $380 to $600
Lori A. Rubin, Senior Counsel $675 (increasing to $720 on Feb
1, 2020)
Donald H. Romano, Of Counsel $500 (increasing to $550 on Feb
1, 2020)
Erin E. Killeen, Associate $385 (increasing to $390 on Feb
1, 2020)
Kara Schoonover, Associate $380 (increasing to $390 on Feb
1, 2020)
Lori A. Rubin, Esq., partner of Foley & Lardner, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
The counsel can be reached at:
Lori A. Rubin, Esq.
Foley & Lardner LLP
Washington Harbour
3000 K Street, N.W., Suite 600
Washington, D.C. 20007-5109
Phone 202-672-5300
Fax 202-672-5399
About Quality Reimbursement Services
Quality Reimbursement Services, Inc. --
http://www.qualityreimbursement.com/-- has been reviewing Medicare
and Medicaid cost reports for more than twelve years. The Company's
corporate office is located in Arcadia (CA). The Company also has
offices located in Birmingham (AL), Scottsdale (AZ), Los Angeles
(CA), Colorado Springs (CO), Jacksonville (FL), Chicago (IL),
Detroit and Shelby Township (MI), Guttenberg (NJ), Dallas/Fort
Worth (TX), and Spokane (WA).
Quality Reimbursement Services filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal.
Case No. 19-20918) on Sept. 13, 2019. In the petition signed by
James C. Ravindran, president/CEO, the Debtor was estimated to have
$1 million to $10 million in assets and $10 million to $50 million
in liabilities.
Judge Julia W. Brand oversees the case.
Garrick A. Hollander, Esq., at Winthrop Couchot Golubow Hollander,
LLP, represents the Debtor.
The Office of the U.S. Trustee on Oct. 22, 2019, appointed five
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case of Quality Reimbursement Services, Inc. The
Committee hires Buchalter, a Professional Corporation, as counsel.
QUALITY REIMBURSEMENT: Hires Honigman LLP as Special Counsel
------------------------------------------------------------
Quality Reimbursement Services, Inc., seeks authorization from the
U.S. Bankruptcy Court for the Central District of California to
Honigman, LLP as the its special counsel.
The Debtor requires Honigman to:
(i) represent the Debtor's hospital clients in civil actions
and appeals filed in federal district court;
(ii) appeal the decisions of the Provider Reimbursement Review
Board and the Administrator of the Centers for Medicare and
Medicaid Services; and
(iii) advise the Debtor regarding Medicare reimbursement
issues.
Kenneth R. Marcus, Esq., the principal professional assigned to
this case, will charge $600 per hour for his services, which is
subjected to increase to $620, effective January 1, 2020.
Mr. Marcus, partner of Honigman, assured the Court that the firm is
a "disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code and does not represent any interest adverse
to the Debtors and their estates.
The counsel can be reached at:
Kenneth R. Marcus, Esq.
Honigman, LLP
2290 First National Building
660 Woodward Avenue
Detroit, MI 48226-3506
Tel: 313-465-7000
Email: kmarcus@honigman.com
About Quality Reimbursement Services
Quality Reimbursement Services, Inc. --
http://www.qualityreimbursement.com/-- has been reviewing Medicare
and Medicaid cost reports for more than twelve years. The Company's
corporate office is located in Arcadia (CA). The Company also has
offices located in Birmingham (AL), Scottsdale (AZ), Los Angeles
(CA), Colorado Springs (CO), Jacksonville (FL), Chicago (IL),
Detroit and Shelby Township (MI), Guttenberg (NJ), Dallas/Fort
Worth (TX), and Spokane (WA).
Quality Reimbursement Services filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal.
Case No. 19-20918) on Sept. 13, 2019. In the petition signed by
James C. Ravindran, president/CEO, the Debtor was estimated to have
$1 million to $10 million in assets and $10 million to $50 million
in liabilities.
Judge Julia W. Brand oversees the case.
Garrick A. Hollander, Esq., at Winthrop Couchot Golubow Hollander,
LLP, represents the Debtor.
The Office of the U.S. Trustee on Oct. 22, 2019, appointed five
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case of Quality Reimbursement Services, Inc. The
Committee hires Buchalter, a Professional Corporation, as counsel.
REAVANS LAKE AVENUE:Cash Motion Denied, Ch. 11 Case to be Dismissed
-------------------------------------------------------------------
The Bankruptcy Court denied the motion to use cash collateral filed
by Reavans Lake Avenue, LLC for reasons stated on the record. A
copy of the denial order is available at https://is.gd/62GXos from
PacerMonitor.com free of charge.
According to Court dockets, the Debtor's Chapter 11 case, pursuant
to Section 1112(B)(1) of the Bankruptcy Code, will be dismissed
effective January 31, 2020, without prejudice to refiling.
About Reavans Lake Avenue
Reavans Lake Avenue, LLC, sought Chapter 11 protection (Bankr. N.D.
Tex. Case No. 19-33707) on Nov. 4, 2019 in Dallas, Texas. The
dockets disclosed that the Debtor hold between $1 million and $10
million in assets, and between $100,000 and $500,000 in
liabilities. The case is assigned to Judge Harlin Dewayne Hale.
Joyce W. Lindauer Attorney, PLLC, represents the Debtor.
RESOURCE PROVIDERS: Seeks to Hire Buddy D. Ford as Legal Counsel
----------------------------------------------------------------
Resource Providers, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Buddy D. Ford,
P.A. as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor of its powers and duties in the continued
operation of the business and management of the property of the
estate;
b. prepare and file schedules of assets and liabilities,
statement of affairs, and other legal documents required by the
Court;
c. represent the Debtor at the creditors' meeting;
d. advise the Debtor of its responsibilities in complying with
the U.S. trustee's operating guidelines and reporting requirements
and with the rules of the court; and
e. represent the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan.
Buddy D. Ford will be paid at these hourly rates:
Partner $425
Senior Associate $375
Junior Associate $300
Senior Paralegal $150
Junior Paralegal $100
Prior to the filing of its bankruptcy case, the Debtor paid an
advance fee of $12,000, which included the filing fee of $1,717.
The firm will also be reimbursed for work-related expenses
incurred.
Buddy Ford, Esq., disclosed in court filings that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: Buddy@tampaesq.com
About Resource Providers
Based in Tampa, Fla., Resource Providers, Inc. filed for Chapter 11
bankruptcy (Bankr. M.D. Fla. Case No. 20-00196) on Jan. 10, 2020,
listing under $1 million in assets and liabilities. Buddy D. Ford,
P.A. is the Debtor's legal counsel.
RIVER ROAD ICE: GCMAC Objects to Cash Collateral Motion
-------------------------------------------------------
Great Central Mortgage Acceptance Company, in an objection to the
cash collateral motion filed by River Road Ice House, clarified
that the Debtor owes GCMAC two loans: (a) a real estate lien note
in the principal amount of $1,575,000, and (b) another real estate
lien note in the principal amount of $175,000.
GCMAC pointed out that if the Debtor has no bank account (as the
Debtor has disclosed in its cash collateral motion), then the
Debtor cannot receive rents and cannot make adequate protection
payments. The Debtor, therefore, should not be allowed to operate,
GCMAC said. The creditor added that the Debtor has failed in its
burden of proof to show that the secured creditors are adequately
protected.
Accordingly, GCMAC asked the Court to deny the Debtor's cash
collateral motion, and that the Debtor's case should be dismissed
or converted as well.
In the event the Court decides to allow the Debtor to use the rents
for the next 30 days, GCMAC asked the Court to limit the use of the
rents collected to pay adequate protection to GCMAC. In the event
the Debtor fails to make adequate protection payments, the Court
should have the Debtor show cause why its case should not be
dismissed, GCMAC said.
A copy of the objection is available free of charge at
https://is.gd/xgx9ZF from PacerMonitor.com.
About River Road Ice House
River Road Ice House is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)) located in New Braunfels,
Texas. The company sought Chapter 11 protection (Bankr. W.D. Tex.
Case No. 19-52926) on Dec. 13, 2019. In the petition signed by
Robert Kane, member, the Debtor was estimated to have between $1
million and $10 million in both assets and liabilities. Villa &
White LLP is the Debtor's counsel.
RIVER ROAD ICE: Seeks Court Permission to Use Cash Collateral
-------------------------------------------------------------
River Road Ice House asked the Bankruptcy Court for the Western
District of Texas to authorize use of cash collateral to sustain
its on-going business operations.
As adequate protection, the Debtor proposed to grant Great Central
Mortgage Acceptance Company (GCMAC) replacement liens on all
post-petition rents and accounts receivable acquired by the Debtor
since the Petition Date, and monthly adequate protection payments
to GCMAC in the amount of $15,000 beginning January 15, 2020, and
continuing monthly thereafter until confirmation of a plan of
reorganization.
GCMAC has a lien on the Debtor's real estate and the revenue or
rents generated by said real property, which secures the Debtor's
obligation to GCMAC of approximately $1,750,000.
A copy of the motion is available for free at https://is.gd/BrtfGK
from PacerMonitor.com.
About River Road Ice House
River Road Ice House is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)) located in New Braunfels,
Texas. The company sought Chapter 11 protection (Bankr. W.D. Tex.
Case No. 19-52926) on Dec. 13, 2019. In the petition signed by
Robert Kane, member, the Debtor estimated between $1 million and
$10 million in both assets and liabilities. Villa & White LLP is
the Debtor's counsel.
RIVER ROAD ICE: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The Office of the U.S. Trustee on Jan. 17, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of River Road Ice House,
LLC.
About River Road Ice House
River Road Ice House, LLC, is a "single asset real estate" debtor
(as defined in 11 U.S.C. Section 101(51B)). It is based in New
Braunfels, Texas.
River Road Ice House sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Texas Case No. 19-52926) on Dec. 13,
2019. At the time of the filing, the Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range. Judge Ronald B. King oversees the case. Villa & White LLP
is the Debtor's legal counsel.
RQW - REAL ESTATE: Seeks to Hire Crane Simon as Bankruptcy Counsel
------------------------------------------------------------------
RQW Real Estate Holdings, LLC and RQW Automobile Services, LLC seek
authority from the U.S. Bankruptcy Court for the Norther District
of Illinois to hire Crane, Simon, Clar and Dan as their legal
counsel.
The firm will advise the Debtors of their rights and duties under
the Bankruptcy Code and will provide other legal services related
to their Chapter 11 cases.
The firm will be paid at these hourly rates:
Eugene Crane $520
Arthur Simon $520
Scott Clar $520
Karen Goodman $520
Jeffrey Dan $480
John Redfield $420
Prior to the filing of the cases, Crane Simon received $19,717 from
RQW Real Estate and $16,717 from RQW Automotive.
Scott Clar, Esq., a partner at Crane Simon, assured the court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
Crane Simon can be reached at:
Scott R. Clar, Esq.
Arthur G. Simon, Esq.
Jeffrey C. Dan, Esq.
Crane, Simon, Clar and Dan
135 South LaSalle Street, Suite 3705
Chicago, IL 60603
Tel: (312) 641-6777
Fax: (312) 641-7114
Email: sclar@cranesimon.com
About RQW Real Estate Holdings and
RQW Automotive Services
RQW Real Estate Holdings LLC is a single asset real estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
RQW Real Estate Holdings and its affiliate, RQW Automotive Services
LLC, filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead
Case No. 19-35576) on Dec. 18, 2019.
At the time of the filing, RQW Real Estate Holdings disclosed
assets of between $1,000,001 and $10 million and liabilities of the
same range. RQW Automotive had estimated assets of between
$1,000,001 and $10 million and liabilities of less than $50,000.
Judge Deborah L. Thorne oversees the cases. Crane, Simon, Clar and
Dan is the Debtors' legal counsel.
RRNB 8400: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The Office of the U.S. Trustee on Jan. 17, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of RRNB 8400, LLC.
About RRNB 8400
RRNB 8400 LLC, a privately held company based in New Braunfels,
Texas, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. Texas Case No. 19-52855) on Dec. 2, 2019. At the time
of the filing, the Debtor disclosed assets of between $1 million
and $10 million and liabilities of the same range. Judge Craig A.
Gargotta oversees the case. The Debtor is represented by Morris E.
White III, Esq., at Villa & White LLP.
RYDER CONTRACTING: To Seek Plan Confirmation Feb. 5
---------------------------------------------------
Judge Frank W. Volk has ordered that the Disclosure Statement in
support of the Chapter 11 plan filed by Ryder Contracting, Inc., is
conditionally approved.
Jan. 30, 2020 is fixed as the last day to file with the Court, and
serve any written objection to the Disclosure Statement.
Jan. 30, 2020 is fixed as the last day to file with the Court, and
serve any written objection to confirmation of the Chapter 11
Plan.
Jan. 30, 2020 is fixed as the last day to file acceptances or
rejections of the Chapter 11 Plan.
A hearing will be held at 1:30 p.m. on Feb. 5, 2020, in Bankruptcy
Courtroom A, 6400 Robert C. Byrd United States Courthouse, 300
Virginia Street East, Charleston, West Virginia, to consider and
act upon:
a. Final approval of the Disclosure Statement and any objection
thereto timely filed with the Court; and
b. Confirmation of the Chapter 11 Plan and any objection thereto
timely filed with the Court.
About Ryder Contracting
Ryder Contracting, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. W.Va. Case No. 19-20087) on March 4,
2019. At the time of the filing, the Debtor had estimated assets
of less than $50,000 and liabilities of less than $50,000. The
case has been assigned to Judge Frank W. Volk. The Debtor tapped
the Law Office of John Leaberry as its bankruptcy counsel.
S C BHAIRAB INC: Seeks to Hire Garrett Business as Business Broker
------------------------------------------------------------------
S C Bhairab, Inc. seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to employ Garrett Business Brokerage
to assist in the sale of its business and property.
The services that Garrett will render are:
(a) assist the Debtor in determining the initial sales price
for the business;
(b) prepare comprehensive valuation for the Debtor and
incorporate into a Business Financial Overview (BFO) package
depicting pertinent financial and asset detail for the prospective
buyer's review;
(c) list the business, including real estate, via multiple
business and real estate listing services (e.g., BizBuySell,
BizQuest, CoStar/LoopNet);
(d) screen and engage interested qualified buyers expressing
interest in the business via a non-disclosure agreement; and
(e) act as an intermediary between relevant parties (e.g.,
Debtor, buyer, attorneys, lender and appraisers) during the due
diligence, preparation of purchase contract, and closing phases.
The broker is entitled to a commission of up to 6 percent of the
sale proceeds.
Garrett does not represent any interest adverse to the Debtor's
bankruptcy estate, according to court filings.
The broker can be reached through:
Thomas S. Garrett
P.O. Box 266
Buchanan Dam, TX 78609
Phone: (817) 233-9806 Cell
Email: t.garrett@garrettbusiness.com
About S C Bhairab Inc.
S C Bhairab, Inc. --
https://matlock-dry-clean-super-center.business.site -- is a
provider of drycleaning and laundry services.
Based in Arlington, Texas, S C Bhairab filed a voluntary petition
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
19-45097) on Dec. 17, 2019. In the petition signed by Ram Gamal,
president, the Debtor estimated $1,403,335 in assets and $1,158,605
in liabilities. Judge Edward L. Morris oversees the case. Robert
M. Nicoud, Jr., Esq., at Nicoud Law, is the Debtor's legal counsel.
SAN LUIS & RIO: Trustee Taps Development Specialists as Accountant
------------------------------------------------------------------
William Brandt Jr., the Chapter 11 trustee for San Luis & Rio
Grande Railroad, Inc., seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to hire Development Specialists,
Inc. as his accountant.
The trustee requires Development Specialists to:
(a) prepare financial disclosures required by the court;
(b) assist in preparing or reviewing the financial
information;
(c) prepare enterprise, asset and liquidation valuations;
(d) assist in the analysis, tracking and reporting for any
financing arrangements and budgets;
(e) assist in identifying and implementing potential cost
containment opportunities;
(f) review the Debtor's business and financial condition
generally;
(g) coordinate efforts to obtain debtor-in-possession
financing;
(h) attend meetings and assist in discussions with potential
investors, lenders, the U.S. and other parties;
(i) communicate and negotiate with creditors to aid the
trustee in maximizing recovery for all stakeholders;
(j) assist in the preparation of information and analysis
necessary for the confirmation of a Chapter 11 plan;
(k) provide forensic accounting services to determine the
disposition of the Debtor's assets and assist counsel in developing
litigation claims which may be estate property;
(l) coordinate any sales of assets;
(m) coordinate workflow administration between the trustee's
professionals and creditors and their professionals; and
(n) assist in the day-to-day, short-term and long-term
management of the bankruptcy process.
Development Specialists will be paid at these hourly rates:
Fred Caruso $720
Steve Victor $650
Tom Jeremiassen $595
Shelly Cuff $375
Spencer Ferrero $375
Tom Frey $350
Jack Donohue $295
The firm will also be reimbursed for work-related expenses
incurred.
William Brandt Jr., president and chief executive officer of
Development Specialists, assured the court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
Development Specialists can be reached at:
William A. Brandt, Jr.
Development Specialists, Inc.
110 East 42nd Street, Suite 1818
New York, NY 10017
Tel: (212) 425-4141
Fax: (212) 425-9141
About San Luis & Rio Grande Railroad
San Luis & Rio Grande Railroad, Inc. operates the San Luis & Rio
Grande Railroad.
On Oct. 16, 2019, an involuntary Chapter 11 petition was filed
against San Luis & Rio Grande Railroad by creditors, Ralco LLC,
South Middle Creek Road Association and The San Luis Central
Railroad Co. (Bankr. D. Colo. Case No. 19-18905). The petitioning
creditors are represented by Brownstein Hyatt Farber Schrec and
Graves Dougherty Hearon & Moody.
Judge Thomas B. McNamara oversees the case.
Williams A. Brandt Jr. was appointed as Chapter 11 trustee for San
Luis & Rio Grande Railroad. The trustee is represented by Markus
Williams Young & Hunsicker LLC.
SANA INDUSTRIES: Feb. 20, 2020 Plan & Disclosure Hearing Set
------------------------------------------------------------
Sana Industries, Inc., filed with the U.S. Bankruptcy Court for the
District of Maryland, at Greenbelt, a Plan of Reorganization and a
Disclosure Statement. On Dec. 26, 2019, Judge Lori S. Simpson
ordered that:
* Feb. 20, 2020, at 10:00 a.m in Courtroom 3D of the U.S.
Bankruptcy Court, U.S. Courthouse, 6500 Cherrywood Lane, Greenbelt,
Maryland 20770 is the hearing to consider the approval of the
Amended Disclosure Statement, combined with the hearing of
confirmation of the Amended Plan Sponsor's Plan of reorganization.
* Jan. 27, 2020, is fixed as the last day for filing and serving
written objections pursuant to Federal Bankruptcy Rules 3017(a) and
for filing and serving written objections to confirmation of the
Plan pursuant to Federal Bankruptcy Rule 3020(b)(1).
* Jan. 27, 2020, is fixed as the last day for filing written
acceptances or rejections of the Amended Plan.
A full-text copy of the order is available at
https://tinyurl.com/vtnrwr5 from PacerMonitor.com at no charge.
About Sana Industries
Sana Industries, Inc., owns and manages a commercial property
consisting of two adjacent office condominium units located at 8347
& 8349 Cherry Lane, Laurel, MD 20707 within the Laurel Lakes
Executive Park Condominiums.
Sana Industries, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Md. Case No. 18-26225) on Dec. 10, 2018.
At the time of the filing, the Debtor was estimated to have assets
of less than $500,000 and liabilities of less than $1 million. The
case has been assigned to Judge Lori S. Simpson. COHEN BALDINGER &
GREENFELD, LLC, is the Debtor's counsel.
SILVER STATE: Files Liquidation Plan; TUFTA Action Ongoing
----------------------------------------------------------
SILVER STATE HOLDINGS ASSIGNEE —7901 BOULEVARD 26, LLC, has
pursued a plan of liquidation, under which the assets of the Debtor
and the Estate will be liquidated and the proceeds used to pay
creditors.
According to the Disclosure Statement, it is difficult for the
Debtor to estimate what the recovery to creditors under the Plan
will be, primarily because of ongoing litigation in the form of the
TUFTA Action which will decide whether the largest alleged
Creditors of the Debtor have valid claims and will be paid from the
Registry Funds. The Debtor believes that all creditors are better
off under the Plan than under a liquidation to Chapter 7, because
the fees and costs of Chapter 7 would be avoided and because an
insider contributes the Plan Funding towards the Plan, which would
not happen in Chapter 7.
The Plan provides:
* Class 3 Secured Claim of Prime Lawn Care. IMPAIRED. Estimated
Amount $31,000. Estimated Recovery 50%. Under the Plan, and by
agreement with rime Lawn Care, the Liquidating Debtor, from the
Plan Funding, pays Prime Lawn Care $15,149.08 in cash, representing
50% of its Allowed Claim, in full and final satisfaction of any
claim of Prime Lawn Care against the Debtor, the Estate, and the
Registry Funds.
* Class 4 Unsecured Claims. UNIMPAIRED. Estimated Amount
$650,000. Estimated Recovery 0% to 100%. Unsecured Claims, to the
extent Allowed, are paid from any of the Registry Funds that remain
after payment of Valley Ridge's Secured Claim, to the extent
Allowed.
* Class 5 Equity Interests. IMPAIRED. Interests in the Debtor
are cancelled and the Debtor is to be liquidated under Texas law
and dissolved and terminated.
The Plan is funded through two sources. First, the Registry Funds
will be used to pay Class 2, to the extent Allowed. Second, the
Plan will be funded through the contribution of the Plan Funding by
DF Land Company, LC.
A full-text copy of the Disclosure Statement dated Dec. 20, 2019,
is available at https://tinyurl.com/wmsgqpp from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Davor Rukavina
Julian P. Vasek
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard St., Ste. 3800
Dallas, Texas 75201
Tel: 214-855-7500
Fax: 214-855-7584
E-mail: drukavina@munsch.com
jvasek@munsch.com
About Silver State Holdings
Silver State Holdings Assignee - 7901 Boulevard 26, LLC sought
Chapter 11 protection (Bankr. N.D. Tex. Case No. 19-41579) on April
18, 2019. The case is assigned to Judge Mark X. Mullin. In the
petition signed by Richard Morash, authorized signatory, the Debtor
was estimated to have assets and liabilities in the range of $1
million to $10 million. The Debtor tapped Davor Rukavina, Esq., at
Munsch, Hardt, Kopf & Harr, P.C., as counsel.
SIMPLICITY ESPORTS: Accumulated Deficit Casts Going Concern Doubt
-----------------------------------------------------------------
Simplicity Esports and Gaming Company filed its quarterly report on
Form 10-Q, disclosing a net loss (available to common shareholders)
of $563,329 on $245,498 of total revenue for the three months ended
Nov. 30, 2019, compared to a net loss (available to common
shareholders) of $2,975,873 on $0 of total revenue for the same
period in 2018.
At Nov. 30, 2019, the Company had total assets of $10,164,505,
total liabilities of $3,534,454, and $6,630,051 in total equity.
The Company has an accumulated deficit at November 30, 2019, a net
loss and net cash used in operating activities for the reporting
period then ended. The Company said these factors raise substantial
doubt about its ability to continue as a going concern.
A copy of the Form 10-Q is available at:
https://is.gd/LFl9OE
Simplicity Esports and Gaming Company operates as a virtual reality
gaming and sports entertainment company in the United States and
India. The Company was formerly known as Smaaash Entertainment
Inc. and changed its name to Simplicity Esports and Gaming Company
in January 2019. Simplicity Esports and Gaming Company was
incorporated in 2017 and is based in Boca Raton, Florida.
SOUTH COAST: Patient Care Ombudsman Files 4th Report
----------------------------------------------------
Tamar Terzian, the Patient Care Ombudsman for South Coast
Behavioral Health, submitted a fourth interim report for the period
Oct. 1, 2019 to Nov. 1, 2019.
South Coast Behavioral Health, comprises of 6 separate facilities
in the Orange County area focusing on alcohol and drug
rehabilitation. The Debtor has two commercial locations with three
residential locations in Costa Mesa and one residential alcohol and
drug rehabilitation location in Huntington Beach that is operating,
whereby the Debtor uses for administration purposes as well as for
treatment purposes.
Since the last reports, the facilities had three patients that
either filed for a grievance or needed medical attention. The
incidental reports for each patient were reviewed and
unfortunately, one of the patients did pass away. The PCO met with
the Department of Health investigator and also has spoken with the
supervisor for the associate of Department of Health for the State
of California. The investigator has interviewed witnesses and will
issue a report making findings of the incident. The PCO made the
following observations during her visit with her consultant Todd
Major.
The Debtor is working on incidental report training, medical
necessity training, and a monthly training with google classroom
for the treatment technicians and clinical staff.
The Patient Care Ombudsman finds that all care provided to the
patients by the Debtor is at the minimum of standard of care set by
the California Department of Health Care Services.
The PCO will continue to monitor and is available to respond to any
concerns or questions of the Court or interested party.
PCO can be reached at:
Tamar Terzian, Esq.
Terzian Law Group
1122 E. Green Street
Pasadena, CA 91106
Telephone: (818) 242-1100
Facsimile: (818) 242-1012
E-mail: tamar@terzlaw.com
A full-text copy of PCO's 4th Interim Report is available at
https://tinyurl.com/yx6qoggl from PacerMonitor.com at no
charge.
About South Coast Behavioral Health
South Coast Behavioral Health, Inc. -- https://www.scbh.com/ -- is
a healthcare company that specializes in the in-patient and
outpatient treatment of addicts, alcoholics, and persons dealing
with mental health issues. It offers a clinically supervised
residential sub acute detox services, therapeutic and residential
treatment centers, intensive outpatient treatment services, and
partial hospitalization programs.
South Coast Behavioral Health sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-12375) on June
20, 2019. 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 is assigned to Judge Mark S. Wallace. Nicastro &
Associates, P.C., is the Debtor's legal counsel.
SOUTH PHARMACY: Seeks to Hire Thomas Denny as Legal Counsel
-----------------------------------------------------------
South Park Pharmacy, LLC, seeks approval from the U.S. Bankruptcy
Court for the Western District of New York to hire the Law Office
of Thomas Denny as its legal counsel.
The services to be provided by the firm include legal advice
regarding the Debtor's powers and duties under the Bankruptcy Code,
negotiations with creditors, and the preparation of a Chapter 11
plan of reorganization.
The firm will charge $200 per hour for its services.
Thomas Denny, Esq., disclosed in court filings that he neither
holds nor represents any interest adverse to the Debtor and its
bankruptcy estate.
The firm can be reached through:
Thomas Denny, Esq.
Law Office of Thomas Denny
331 Alberta Drive, Suite 214
Buffalo, N.Y. 14226
Phone: (716) 800-1234
Fax: (716) 408-3413
E-mail: tom@thomasdenny.com
About South Park Pharmacy
South Park Pharmacy. LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 20-10091) on Jan. 17,
2020. At the time of the filing, the Debtor had estimated assets
of between $100,001 and $500,000 and liabilities of between
$500,001 and $1 million. Judge Michael J. Kaplan oversees the
case. The Debtor is represented by the Law Office of Thomas Denny.
SPHERIX INCORPORATED: CBM BioPharma Has 40.2% Stake as of Dec. 5
----------------------------------------------------------------
CBM BioPharma, Inc., disclosed in a Schedule 13G filed with the
Securities and Exchange Commission that as of Dec. 5, 2019, it
beneficially owns 1,939,058 shares of common stock of Spherix
Incorporated, which represents 40.2 percent of the shares
outstanding. The percentage is based on 4,825,549 shares of Common
Stock of the Issuer which includes (a) 2,886,491 shares of Common
Stock of the Issuer outstanding as of Nov. 11, 2019, according to
the Issuer's Quarterly Report on Form 10-Q for the quarterly period
ended Sept. 30, 2019 and (b) 1,939,058 shares of Common Stock of
the Issuer issued to the Reporting Person on Dec. 5, 2019.
On Dec. 5, 2019, CBM BioPharma completed the sale of substantially
all of its assets, properties and rights to Spherix pursuant to
that Asset Purchase Agreement, dated as of May 15, 2019, as
amended. As consideration in the transaction, the Issuer paid to
CBM $8,000,000, consisting of (i) $1,000,000 in cash and (ii) an
aggregate of 1,939,058 shares of the Issuer's Common Stock at a
price per share of $3.61. At closing, seven percent or 135,734
shares of Common Stock of the Stock Consideration was deposited
with VStock, the Issuer's transfer agent, to be held in escrow for
six months post-closing to satisfy certain indemnification
obligations pursuant to the terms and conditions of the Purchase
Agreement, and 93% or 1,803,324 shares of the Stock Consideration
was issued and delivered to the Reporting Person.
A full-text copy of the regulatory filing is available for free at
the SEC's website at:
https://is.gd/fFg9WI
About Spherix
Headquartered in Floor New York, NY, Spherix Incorporated --
http://www.spherix.com/-- is a technology development company
committed to the fostering of innovative ideas. Spherix
Incorporated was formed in 1967 as a scientific research company.
Its activities generally include the acquisition and development of
technology through internal or external research and development.
In addition, the Company seeks to acquire existing rights to
intellectual property through the acquisition of already issued
patents and pending patent applications, both in the United States
and abroad.
As of Sept. 30, 2019, the Company had $9.43 million in total
assets, $852,000 in total liabilities, and $8.58 million in total
stockholders' equity.
Marcum LLP, in New York, NY, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated March
11, 2019, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
SRC ENERGY: S&P Raises ICR to 'BB'; Rating Withdrawn on PDC Deal
----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Denver-based
crude oil and natural gas exploration and production company, SRC
Energy Inc., to 'BB' from 'B' and removed it from CreditWatch with
positive implications after the company and PDC Energy Inc. closed
on their previously announced merger agreement.
At the same time, S&P raised its rating on SRC's senior unsecured
notes to 'BB' from 'B+' and removed it from CreditWatch with
positive implications. PDC has assumed SRC's debt, which now ranks
pari passu with PDC's existing debt.
S&P raised its issuer credit rating on SRC to 'BB' to equalize it
with that of PDC, as the rating agency now considers SRC to be a
core entity of the company. The rating agency subsequently withdrew
its issuer credit rating on SRC as it has been fully integrated
into the PDC capital structure.
Through the deal, PDC has assumed SRC's senior unsecured debt,
which will now rank pari passu with PDC's existing senior unsecured
notes. S&P raised the issue-level rating on SRC's notes to 'BB'
from 'B+' and revised the recovery rating to '3' from '2'. The '3'
recovery rating indicates S&P's expectation of meaningful (50%-70%;
rounded estimate: 65%) recovery of principal to creditors in the
event of a payment default.
SUN-ONE LLC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Sun-One LLC
620 Denton Road
Hickman, CA 95323
Business Description: Sun-One LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: January 21, 2020
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 20-90049
Judge: Hon. Ronald H. Sargis
Debtor's Counsel: David C. Johnston, Esq.
DAVID C. JOHNSTON
1600 G. Street, Suite 102
Modesto, CA 95354
Tel: (209) 579-1150
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Kathryn C. Machado, managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors at the time of the filing.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/3HA4Oe
SUNYEAH GROUP: Seeks to Hire Levene Neale as Bankruptcy Counsel
---------------------------------------------------------------
Sunyeah Group Corporation seeks approval from the U.S. Bankruptcy
Court for the Central District of California to hire Levene, Neale,
Bender, Yoo & Brill LLP as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor regarding the requirements of the
Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules and the Office
of the U.S. Trustee;
b. advise the Debtor regarding the rights and remedies of its
bankruptcy estate and the rights, claims and interests of
creditors;
c. represent the Debtor in any proceeding or hearing in the
bankruptcy court involving its estate unless it is represented in
such proceeding or hearing by a special counsel;
d. conduct examinations of witnesses, claimants or adverse
parties and represent the Debtor in adversary proceedings except
those outside of the firm's expertise or beyond its staffing
capabilities;
e. prepare and assist the Debtor in the preparation of
documents with respect to the use, sale or lease of property
outside the ordinary course of business;
f. help the Debtor obtain approval to use cash collateral or
get financing; and
g. assist the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization.
Levene Neale will be paid at these hourly rates:
Attorneys $450 to $625
Paraprofessionals $250
David Golubchik, Esq., and Jeffrey Kwong, Esq., the firm's
attorneys who will be handling the case, charge $635 per hour and
$495 per hour, respectively.
The firm will also be reimbursed for work-related expenses
incurred.
Levene Neale received a retainer of $35,000, which includes the
$1,717 filing fee.
David Golubchik, Esq., a partner at Levene Neale, disclosed in
court filings that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
Levene Neale can be reached at:
David B. Golubchik, Esq.
Levene, Neale, Bender, Yoo & Brill LLP
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: dg@lnbyb.com
About Sunyeah Group Corporation
Sunyeah Group Corporation, a glass manufacturer in Ontario, Calif.,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
C.D. Cal. Case No. 19-21185) on Dec. 30, 2019. The petition was
signed by Xiaodong Shi, chief executive officer. At the time of the
filing, the Debtor estimated $1 million to $10 million in both
assets and liabilities. Judge Mark D. Houle oversees the case.
Levene, Neale, Bender, Yoo & Brill L.L.P. is the Debtor's
bankruptcy counsel.
SVC: Feb. 26 Hearing on Sullivans' Plan Set
-------------------------------------------
A hearing to take place on Feb. 26, 2020 at 10:00 a.m. in the
courtroom of the Honorable Roger L. Efremsky located at 1300 Clay
Street, Room 201 Oakland, CA on Feb. 26, 2020 at 10:00 a.m., the
Court will consider the Combined Plan and Disclosure Statement
proposed by the Sullivan Family for SVC.
All objections to confirmation of the Plan must be filed and served
no later than Feb. 12, 2020.
All ballots regarding the Plan are due (completed, signed and
returned by United States Postal Service Mail) so that they are
received no later than February 12, 2020 at 5:00 p.m. (Pacific
Time).
The Sullivan Family owns 100% of SVP and the vast majority of the
equity in the SVC. The Estate's assets consist primarily of Estate
Retained Claims and cash proceeds from the sale of the winery.
The Sullivan Family's Plan treats claims as follows:
* Class 1 (Secured Claims of Finn and Winery Rehabilitation).
IMPAIRED. Each holder of an Allowed Class 1 Claim shall be entitled
to receive up to the full amount of its Allowed Secured Claim
against each Debtor to the extent of Available Cash held by each
Reorganized Debtor at the time of allowance. Until such payment is
made, Class 1 Creditors holding Allowed Claims shall retain their
liens, if any, on the Available Cash.
* Class 2 (Trade Creditors). IMPAIRED. Each holder of an Allowed
Class 2 Claim shall be paid from Available Cash up to the full
amount their Allowed Claim, together with simple interest at the
rate of 3% per annum on the terms and conditions set forth in
Article VIII.
* Class 3 (Unsecured Claims of Non-Trade Unsecured Creditors).
IMPAIRED. If Available Cash remains, each holder of an Allowed
Class 3 Claim, if any, shall be paid Pro Rata from Available Cash
up to the full amount their Allowed Claims without interest, on the
terms and conditions set forth in Article VII. Such payment shall
be junior and subordinate to satisfaction of any Class 1 or 2
Claim.
* Class 4 (Membership Interests in the Debtor). IMPAIRED. The
existing membership interests in the Debtor shall be preserved
without alteration, subject to the terms of this Plan.
The Estate's assets consist primarily of Estate Retained Claims and
cash proceeds from the sale of the winery.
A full-text copy of the Combined Plan and Disclosure Statement
dated Dec. 20, 2019, is available at https://tinyurl.com/wgu92lw
from PacerMonitor.com at no charge.
Attorneys for Equity Owners Ross Sullivan and Kelleen Sullivan:
John D. Fiero
PACHULSKI STANG ZIEHL & JONES LLP
150 California Street, 15th Floor
San Francisco, California 94111-4500
Telephone: 415.263.7000
Facsimile: 415.263.7010
E-mail: jfiero@pszjlaw.com
About Sullivan Vineyards
SVP (formerly known as Sullivan Vineyards Partnership), owned land
at 1090 Galleron Road, Rutherford, California (the "Winery
Property"). SVC, formerly known as Sullivan Vineyards corporation,
is a California corporation formed in 1987 to own and operate the
business located at the Winery Property known as Sullivan
Vineyards. As is common in the wine industry, the entities used a
parallel partnership and corporation structure, with SVP owning the
land and SVC owning the winery business. Together with their five
children, parents Joanna Sullivan and James O'Neil Sullivan began
Sullivan Vineyards as a family business.
Sullivan Vineyards Corporation filed a Chapter 11 petition (Bankr.
N.D. Cal. Case No. 17-10065), on Feb. 1, 2017, estimating assets at
$1 million to $10 million and liabilities at $10 million to $50
million at the time of the filing.
Sullivan Vineyards Partnership sought protection under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 17-10067) on Feb.
2, 2017, disclosing $18.99 million in assets and $14.27 million in
liabilities.
The case is assigned to Judge Alan Jaroslovsky.
The Debtors are represented by Steven M. Olson, Esq., at the Law
Office of Steven M. Olson.
At a hearing on Aug. 21, 2017, the Court ordered the appointment of
a chapter 11 trustee in both cases. Thereafter, the Office of the
United States Trustee selected Timothy Hoffman to be the Trustee of
both estates. Later, Mr. Hoffman resigned from his position in the
Bankruptcy Case, at which point Andrea Wirum was appointed to serve
as the chapter 11 trustee for this Bankruptcy Case
On Nov. 10, 2017, Mr. Hoffman filed a Motion to Sell Real and
Personal Property Assets, by which the Trustee sold to Vite USA,
Inc., substantially all of the Debtor's real and personal property
assets related to the Winery Property. The Bankruptcy Court granted
the Sale Motion at a hearing on Dec. 11, 2017. On Jan. 10, 2018,
the sale closed.
In connection with the closing of the sale, Finn and WR (together,
the "Finn Creditors") were paid total consideration of $17,798,405,
which sum included $2,647,834 of attorneys' fees and other costs,
in addition to principal and interest.
SWINGING TAIL: Seeks to Hire Country Boys Auction as Auctioneer
---------------------------------------------------------------
Swinging Tail Cattle Co., Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to hire
Country Boys Auction & Realty, Inc. to auction some of its personal
properties.
Country Boys will be compensated as follows:
-- 20 percent on the first $20,000;
-- 10 percent on the next $50,000; and
-- 4 percent on the balance.
Mike Gurkins, an auctioneer at Country Boys, assures the court that
he does not represent any interest adverse to the Debtor and its
bankruptcy estate.
The firm can be reached at:
Mike Gurkins
Country Boys Auction & Realty, Inc.
1211 W 5th St
Washington, NC 27889
Phone: +1 252-946-6007
About Swinging Tail Cattle Co.
Swinging Tail Cattle Co., Inc., a privately held company in the
agricultural production, farms and livestock industry, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C.
Case No. 19-05701) on Dec. 12, 2019. In the petition signed by
Jacqueline W. Lennon, president, the Debtor estimated $500,000 to
$1 million in assets and $1 million to $10 million in liabilities.
Judge Joseph N. Callaway oversees the case. David J. Haidt, Esq.,
at Ayers & Haidt, PA, is the Debtor's legal counsel.
THOC, PA: Court Grants Access to IRS Cash Collateral
----------------------------------------------------
Judge Stacey G.C. Jernigan authorized THOC, PA to use, on an
interim basis, cash collateral in which the Internal Revenue
Service asserts a lien.
The IRS is granted replacement liens co-existent with its
pre-petition liens, under Section 552 of the Bankruptcy Code, in
after acquired property of the estate.
A copy of the interim order is available for free at
https://tinyurl.com/sxgw87j from PacerMonitor.com.
A further hearing on the motion will be held on January 29, 2020 at
9:30 a.m.
About THOC,PA
THOC, PA, which operates a medical practice in Dallas Texas under
the name Texas Hemotology Oncology Centers, filed a voluntary
Chapter 11 petition (Bankr. N.D. Tex. Case No. 19- 34237) on Dec.
30, 2019. The case is assigned to Judge Stacey G.C. Jernigan. The
Debtor is represented by Eric A. Liepins, Esq., at Eric A. Liepins,
P.C.
THOC, PA: Seeks Court Permission to Use Cash Collateral
-------------------------------------------------------
Thoc, PA asked the Bankruptcy Court to authorize use of the cash
collateral of the Internal Revenue Service, pursuant to the budget,
in order to maintain the Debtor's business operations.
The budget provided for $85,176.74 in total expenses, including
$68,596 in payroll and $12,000 in rent. The IRS asserts a federal
tax lien in the amount of $55,775.65, which lien would attached to,
among other things, the accounts receivable of the Debtor's medical
practice. The Debtor proposed to grant the IRS adequate protection
in the form of replacement liens under Section 552 of the
Bankruptcy Code.
A copy of the motion is available at https://tinyurl.com/un2yl3u
from PacerMonitor.com free of charge.
About THOC, PA
THOC, PA, which operates a medical practice in Dallas, Texas under
the name Texas Hemotology Oncology Centers, filed a voluntary
Chapter 11 petition (Bankr. N.D. Tex. Case No. 19- 34237) on Dec.
30, 2019. The case is assigned to Judge Stacey G.C. Jernigan. The
Debtor is represented by Eric A. Liepins, Esq., at Eric A. Liepins,
P.C.
TITUS INDUSTRIAL: Allowed to Use IRS Cash Collateral Until April 30
-------------------------------------------------------------------
Judge Fredrick E. Clement of the U.S. Bankruptcy Court for the
Eastern District of California authorizes Titus Industrial, Inc. to
use the cash collateral of the Internal Revenue Service until April
30, 2020 or until confirmation of a Plan of Reorganization.
A further hearing concerning the Debtor's use of the IRS' cash
collateral after April 30 will be held on April 15, 2020 at 1:30
p.m.
The Debtor may use cash collateral to pay ordinary and necessary
expenses incurred by the Debtor in the operation of its business
consistent with the Budget.
The IRS is granted a replacement lien against Debtor's
post-petition assets to the same extent, validity and priority as
existed before Debtor filed its Chapter 11 case, including the
Debtor's debtor-in-possession accounts at the Bank of the Sierra.
In addition, the Debtor will make adequate protection payments of
$3,000 per month to the IRS and pay all of its post-petition
obligations owed to the IRS as required by the law pending
confirmation of a Plan of Reorganization. The Debtor must also file
all post-petition tax returns when due and pay all post-petition
taxes owed to the IRS..
About Titus Industrial
Titus Industrial, Inc is a full-service general engineering
contractor specializing in equipment installation, fabrication,
retrofit, maintenance, specialty welding, process piping, water
jetting, machinery moving, alignments, excavation, grading,
turnarounds, and crane services. It has the capability to custom
design and manufacture equipment for the clients' specific needs.
Titus Industrial sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Cal. Case No. 18-14414) on Oct. 30,
2018. In the petition signed by Scott W. Hale, general manager and
authorized representative, the Debtor disclosed $689,071 in assets
and $1,038,121 in liabilities. Judge Fredrick E. Clement oversees
the case. The Debtor tapped the Law Offices of Leonard K. Welsh as
its legal counsel.
TMS CONTRACTORS: Jan. 30 Disclosure Statement Hearing Set
---------------------------------------------------------
Judge Marvin Isgur has ordered that the hearing to consider the
approval of the disclosure statement in support of the Chapter 11
plan of TMS Contractors, LLC, et al., will be held at the United
States Courthouse, Houston, Texas, on Jan. 30, 2020 at 9:00 a.m.
Jan. 28, 2020 is fixed as the last day for filing and serving
written objections to the Disclosure Statement.
About TMS Contractors
and TMSC Properties
TMS Contractors, LLC -- https://www.tmsbuilds.com -- is a general
contractor specializing in residential, commercial, and industrial
buildings. It can supply pre-engineered, conventional or a hybrid
steel solutions for all building needs from complete design,
engineered and fabricated building systems to conventional steel
for building structure.
TMSC Properties, an affiliate of TMS Contractors, is primarily
engaged in leasing real estate properties.
TMS Contractors and TMSC Properties sought protection under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Texas Case Nos. 19-33555 and
19-33556) on June 27, 2019.
At the time of the filing, TMS Contractors disclosed $6,031,517 in
assets and $2,958,214 in liabilities. TMSC Properties disclosed
$5,559,541 in assets and $1,783,866 in liabilities. The case has
been assigned to Judge David R. Jones. Attorney Donald Wyatt, PC
is the Debtor's bankruptcy counsel.
TMSC PROPERTIES: Jan. 30 Hearing on Disc. Statement Set
-------------------------------------------------------
Judge Marvin Isgur has ordered that the hearing to consider the
approval of the disclosure statement in support of TMSC Properties,
LLC's Chapter 11 plan will be held at the United States Courthouse,
Houston, Texas, on Jan. 30, 2020 at 9:00 a.m.
Jan. 28, 2020 is fixed as the last day for filing and serving
written objections to the disclosure statement.
About TMS Contractors
and TMSC Properties
TMS Contractors, LLC -- https://www.tmsbuilds.com -- is a general
contractor specializing in residential, commercial, and industrial
buildings. It can supply pre-engineered, conventional or a hybrid
steel solutions for all building needs from complete design,
engineered and fabricated building systems to conventional steel
for building structure.
TMSC Properties, LLC, an affiliate of TMS Contractors, is primarily
engaged in leasing real estate properties.
TMS Contractors and TMSC Properties sought protection under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Texas Case Nos. 19-33555 and
19-33556) on June 27, 2019.
At the time of the filing, TMS Contractors disclosed $6,031,517 in
assets and $2,958,214 in liabilities. TMSC Properties disclosed
$5,559,541 in assets and $1,783,866 in liabilities. The case has
been assigned to Judge David R. Jones. Attorney Donald Wyatt, PC
is the Debtor's bankruptcy counsel.
TOTAL HEALTH: PCO Says No Malpractice Claims Since 2012
-------------------------------------------------------
Erika D. Hart, as the Patient Care Ombudsman, submitted a second
report to the Bankruptcy Court as to the quality of patient care as
rendered by Total Health Systems, Inc.
The report is based upon a site visit and conversations with
Operations Director, Dr. Aaron Lundgaard. Total Health operates a
multi-disciplinary medical practice with five offices in Macomb
County, focusing on chiropractic care, physical therapy and
massage, as well as some primary care medical services and services
to aid patients with adopting healthy lifestyle changes, such as
nutrition and exercise.
On November 7, 2019, the Ombudsman visited the main office of Total
Health on Garfield Road and met with Dr. Aaron Lundgaard for the
second time. The Total Health facility includes both the main
office as well as individual patient/exam rooms which are
designated for chiropractic services, physical therapy or massage,
with use appropriate patient tables/beds in each room, and a gym
area for physical therapy sessions as well as for personal training
and related exercise sessions.
Dr. Lundgaard indicated that business has continued steadily since
the last visit by the Ombudsman in late September, with no issues.
The quality of care at the main office and the other offices has
continued unaffected by the bankruptcy filing. There have been no
complaints, lawsuits or other negative charges regarding care
provided by Total Health doctors, chiropractors or other staff. As
the Court is aware, a judgment was entered against Total Health and
Dr. Rose Minkiewicz relating to claims of malpractice, which
remains on appeal.
The Ombudsman is advised that Total Health had never received
claims of malpractice either before or since the 2012 events that
resulted in the judgment. Dr. Minkiewicz filed her own personal
Chapter 7 bankruptcy in September and Fred Dery was appointed as
Chapter 7 Trustee, Case No. 19-53583-mar. As previously disclosed
to the Court, the Ombudsman’s law firm, The Taunt Law Firm, was
employed by Trustee Dery to represent him in the Minkiewicz Chapter
7 filing. The Ombdusman is not involved in the Minkiewicz case.
Therefore, the Ombudsman finds that Total Health appears to have
continued the same quality of care postpetition as prepetition.
Monitoring by the Ombudsman and reporting will continue.
PCO can be reached at:
Erika D. Hart
700 E. Maple Rd., Second Floor
Birmingham, MI 48009
Tel: (248) 644-7800
E-mail: ehart@tauntlaw.com
A full-text copy of the PCO's 2nd Report is available at
https://tinyurl.com/ve6cdfj from PacerMonitor.com at no charge.
About Total Health Systems
Total Health Systems, Inc. -- https://www.totalhealthsystems.com/
-- is a full-service wellness center that provides traditional
medical services, chiropractic, physical therapy, massage therapy,
one-on-one personal training, physician supervised weight loss,
nutrition, and wellness services.
Total Health Systems filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 19-52723) on
Sept. 5, 2019, in Detroit, Michigan. In the petition signed by CFO
Terrence Gallagher, the Debtor estimated assets of no more than
$50,000 and liabilities between $1 million and $10 million. Judge
Hon. Phillip J. Shefferly oversees the case. Stevenson & Bullock,
P.L.C., is the Debtor's bankruptcy counsel.
TRI-CORE PARTNERS: Cash Collateral Use Extended Through March 31
----------------------------------------------------------------
Judge Mindy A. Mora of 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 through March 31, 2020.
A final hearing on the Debtor's use of cash collateral is scheduled
for March 24, 2020 at 1:30 p.m.
Quick Bridge Funding is granted a replacement lien, to the same
extent as any prepetition lien, on and in all property set forth in
Quick Bridge's security agreement and related lien document of
Quick Bridge on the specific collateral listed in the security
document, including proceeds derived from the creditor's collateral
generated post-petition by the Debtor.
About Tri-core Partners
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.
TRITON INTERNATIONAL: S&P Rates Perpetual Preference Shares 'B+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating to
Purchase, N.Y.-based Triton International Ltd.'s proposed series D
cumulative redeemable perpetual preference shares (final amount to
be determined upon close). The preferred stock, which S&P will
treat as 50% equity and 50% debt when calculating its financial
ratios, will rank senior to the company's common stock. S&P's
issue-level rating reflects the preferred shares' subordination to
the company's other debt instruments (issued at its subsidiaries)
and the deferability of their dividend payments. Triton will use
the proceeds from this issuance for general corporate purposes,
including for capital spending, common share repurchases, dividend
payments, and debt repayment.
S&P's 'BB+' issuer credit rating on Triton reflects its position as
the largest marine cargo container lessor globally while the rating
agency's positive outlook incorporates the company's improved
credit metrics, which the rating agency expects will remain
relatively stable absent any material negative effects from
potentially higher trade tariffs. The marine cargo container
leasing industry is cyclical but Triton (like its predecessors
Triton Container International Ltd. and TAL International Group
Inc.) has been able to manage this cyclicality by maintaining a
high percentage of fixed-rate, long-term leases, which reduces the
volatility in its revenue and earnings. Marine cargo container
lessors also have the ability to manage their utilization somewhat
by reducing their capital spending, which typically has a short
lead time of only a few months.
TWIN PINES: Seeks Court Approval to Hire NM Appraisal
-----------------------------------------------------
Twin Pines LLC seeks authority from the U.S. Bankruptcy Court for
the District of New Mexico to hire NM Appraisal Co. to conduct an
appraisal of its commercial properties located at 701 and 705
Mechem Drivem Ruidoso, N.M.
NM Appraisal will receive the sum of $3,000 for its services, plus
gross receipts tax of $253.13 for a total of $3,253.13.
Christopher Marc Beatty of NM Appraisal attests that he and other
employees of the firm are not related to any of the creditors in
the Debtor's Chapter 11 case.
The appraiser can be reached at:
Christopher Marc Beatty
NM Appraisal Company
700 Mechem Drive # 7
Ruidoso, NM 88345
Phone: (575) 257-1303
About Twin Pines
Twin Pines LLC, a New Mexico limited liability company, provides
automotive repair and maintenance services. Twin Pines owns condos
it valued at $523,618, and a commercial property valued at
$741,908, in Ruidoso, New Mexico.
Twin Pines LLC sought Chapter 11 protection (Bankr. D.N.M. Case No.
19-10295) on Feb. 12, 2019, in Albuquerque, N.M. At the time of
the filing, the Debtor disclosed $1,361,978 in assets and
$1,338,629 in liabilities. Judge Robert H. Jacobvitz oversees the
case. William F. Davis & Assoc., P.C. is the Debtor's legal
counsel.
VERITY HEALTH: Disclosures Hearing Deferred as Plan B in Works
--------------------------------------------------------------
On Sept. 3, 2019, Verity Health System of California, Inc., et al.,
filed with the U.S. Bankruptcy Court a Chapter 11 Plan of
Liquidation and related Disclosure Statement. The closing of the
SGM Sale is one of the conditions precedent to the "Effective
Date" of the Plan.
On Sept. 4, 2019, the Debtors filed a motion seeking approval of
the Plan and Disclosure Statement.
On Sept. 18, 2019, certain parties in interest filed responses and
oppositions to the Disclosure Statement Motion.
On Oct. 17, 2019, the Court approved a stipulation for other
parties' response dates to allow continued negotiations regarding
the Disclosure Statement Motion. The Debtors made significant
progress in resolving a number of matters raised by stakeholders
regarding the Disclosure Statement and the Plan. Nevertheless, the
Debtors sought and obtained continuances of the hearing on the
Disclosure Statement Motion in light of the uncertainties
surrounding whether SGM would close the SGM Sale.
On Nov. 24, 2019, the Debtors filed a status report addressing the
status of the SGM Sale and the Debtors' proposed plan for an
expeditious resolution of these Cases in the event the SGM Sale did
not close ("Plan B"). The Debtors filed a detailed description of
Plan B under seal. The Debtors are beginning to implement Plan B
as a result of SGM not closing the SGM Sale.
On Dec. 10, 2019, the Court entered an order continuing the
deadline for the Debtors to file an omnibus reply in support of the
Disclosure Statement Motion to Dec. 23, and setting a hearing on
Dec. 30, 2019, at 10:00 a.m. (Pacific Time).
On Dec. 23, 2019, the Debtors filed a notice providing that the
Debtors would not file an omnibus reply in support of the
Disclosure Statement Motion.
On Dec. 26, 2019, the Court entered an order vacating the Dec. 30,
2019 hearing date "[g]iven the likelihood that the Debtors will be
filing an amended and restated plan of liquidation."
The Debtors on Jan. 1, 2020 filed a motion for an order (i)
extending the Debtors' exclusive right to file a plan of
reorganization and gain acceptances of a plan of reorganization
from the current deadlines to new deadlines of March 2, 2020
(filing a plan) and April 30, 2020 (obtaining acceptances),
pursuant to 11 U.S.C. Sec. 1121(d).
The Debtors explained, among other things, that they must prepare
adequate information related to the recent termination of the SGM
APA and the implementation of Plan B. Both recent developments
will require material modifications to the current Plan and
Disclosure Statement. Consequently, the Debtors seek an extension
to allow them to continue to address these issues while retaining
exclusivity (including amendments to the Plan).
About Verity Health System
Verity Health System -- https://www.verity.org/ -- operates as a
non-profit health care system in the state of California, with
approximately 1,680 inpatient beds, six active emergency rooms, a
trauma center, and a host of medical specialties, including
tertiary and quaternary care. Verity's two Southern California
hospitals are St. Francis Medical Center in Lynwood and St. Vincent
Medical Center in Los Angeles. In Northern California, O'Connor
Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton
Medical Center in Daly City and Seton Coastside in Moss Beach are
part of Verity Health. Verity Health also includes Verity Medical
Foundation.
With more than 100 primary care and specialty physicians, VMF
offers medical, surgical and related healthcare services for people
of all ages at community-based, multi-specialty clinics
conveniently located in areas served by the Verity hospitals.
Verity Health System was created in a transaction approved by
California Attorney General Kamala Harris and completed in December
2015.
Verity Health System of California, Inc., and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Lead Case No. 18-20151) on Aug. 31, 2018. In the petition
signed by CEO Richard Adcock, Verity Health estimated assets of
$500 million to $1 billion and liabilities of $500 million to $1
billion.
Judge Ernest M. Robles oversees the cases.
The Debtors tapped Dentons US LLP as their bankruptcy counsel;
Berkeley Research Group, LLC, as financial advisor; Cain Brothers
as investment banker; and Kurtzman Carson Consultants as claims
agent.
The official committee of unsecured creditors formed in the case
retained Milbank, Tweed, Hadley & McCloy LLP as counsel.
VERITY HEALTH: Working on Safe Transfer of Liver Transplant Program
-------------------------------------------------------------------
Jacob Nathan Rubin, MD, FAAC, the Patient Care Ombudsman appointed
for Verity Health System of California, Inc., submitted seventh
report from Oct. 3, 2019 through Dec. 3, 2019 to the Court
regarding the quality of patient care provided to patients of the
affected debtors.
The Debtors are health care businesses as defined under Chapter 11
Bankruptcy Code provides that the PCO will monitor, and report to
the Court, the quality of patient care provided by the Debtors.
During this period, the PCO reviewed all new E-data room entries
such as Joint Commission Reports, Survey Verification, California
Department of Public Health filings. In close collaboration with
SVMC administration and Dr. Del Junco, the PCO has extensively
monitored the transfer disposition of SVMC's Liver Transplant
Program. The PCO is in communication with the Chief Medical
Officer, Dr. Del Junco, to keep abreast of issues that impact the
organization.
As a matter of reference, the Debtors have transferred operations
of O'Connor and St. Louise Medical Centers to Santa Clara County.
In addition, the Medical Clinics and Urgent Care Centers have
closed or transferred operations to other entities. The medical
records of all the patients have gone to the separate entities or
with the individual physicians except for Sport Orthopedic and
Rehabilitation.
As indicated to the PCO, the Debtors will remain as custodian of
the medical records until the patients' physicians take control of
the medical records. The Debtors continue to operate four acute
care hospital centers and one hemodialysis center. The PCO
continued to address and review previous ongoing items of concern
and maintain appropriate follow-up. Since the last PCO report,
significant patient care related events have developed and been
identified by CMS, through the diligent reporting of events to the
PCO by administration and Dr. Del Junco, CMO.
The concentration of this Report will specifically address the
suspension of St. Vincent's Medical Center Liver Transplant Service
and the impact of the suspension on patient care. Transplanted
patients, patients on the transplant waiting list and patients
referred to the liver transplant service all need to be
transitioned to an UNOS approved liver transplant center. The PCO
spent the last 4 months investigating the potential suspension of
SVMC's Liver Transplant Service and the potential patient harm
inherent in the suspension. This included attending the SVMC
public hearing, multiple discussions with administration,
communication with the Debtors’ attorneys and Assistant Attorney
General's Office. The PCO continues to communicate frequently,
either telephonically or via on-site visits, with Dr. Del Junco,
CMO and Margaret Peterson, CEO of SVMC. During the site visit on
October 23rd, 2019, the PCO was verbally informed and guaranteed,
by Margaret Peterson, CEO and Dr. Del Junco, CMO, that the Liver
Transplant Program at SVMC has complied and is in compliance with
the directives set forth herein.
Thus, SVMC is performing diligently and exhaustively while working
with the PCO to satisfy the safe transfer of the Liver Transplant
Program patients to a certified transplant center, the result of
which will be, not jeopardizing the kidney and pancreas transplant
program UNOS status, as well.
Attorneys for the Patient Care Ombudsman:
Ron Bender
Monica Y. Kim
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
Fax: (310) 229-1244
E-mail: rb@lnbyb.com
myk@lnbyb.com
A full-text copy of PCO's 7th Report is available at
https://tinyurl.com/vcfjkhs from PacerMonitor.com at no
charge.
About Verity Health System
Verity Health System -- https://www.verity.org/ -- operates as a
non-profit health care system in the state of California, with
approximately 1,680 inpatient beds, six active emergency rooms, a
trauma center, and a host of medical specialties, including
tertiary and quaternary care. Verity's two Southern California
hospitals are St. Francis Medical Center in Lynwood and St. Vincent
Medical Center in Los Angeles. In Northern California, O'Connor
Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton
Medical Center in Daly City and Seton Coastside in Moss Beach are
part of Verity Health. Verity Health also includes Verity Medical
Foundation.
With more than 100 primary care and specialty physicians, VMF
offers medical, surgical and related healthcare services for people
of all ages at community-based, multi-specialty clinics
conveniently located in areas served by the Verity hospitals.
Verity Health System was created in a transaction approved by
California Attorney General Kamala Harris and completed in December
2015.
Verity Health System of California, Inc., and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Lead Case No. 18-20151) on Aug. 31, 2018. In the petition
signed by CEO Richard Adcock, Verity Health estimated assets of
$500 million to $1 billion and liabilities of $500 million to $1
billion.
Judge Ernest M. Robles oversees the cases.
The Debtors tapped Dentons US LLP as their bankruptcy counsel;
Berkeley Research Group, LLC, as financial advisor; Cain Brothers
as investment banker; and Kurtzman Carson Consultants as claims
agent.
The official committee of unsecured creditors formed in the case
retained Milbank, Tweed, Hadley & McCloy LLP as counsel.
VERRINO CONSTRUCTION: Unsecureds to Recover 32% in Plan
-------------------------------------------------------
Verrino Construction Services Corp has proposed a Chapter 11 plan
that says proceeds from claims against Jewish Theological Seminary
of America and AMG-NYC, LLC, will fund plan payments.
According to the Disclosure Statement, JTSA Claim ($874,880
asserted against Jewish Theological Seminary of America) and AMG
Claim ($296,550 asserted against AMG-NYC, LLC) are the sole assets
of the estate and its recovery in part or in full will be the sole
source of funding the Plan. The larger the recovery on these
claims the larger the potential distribution to Claimants. At this
time Debtor cannot accurately determine what pool of funds that
could be available for distribution, though JTSA has made a
settlement offer of $300,000 and the AMG shall proceed to state
court. And, further, there may be no recovery at all with regard
to the AMG Claim.
The Plan will be funded from recover of JTSA Action and AMG
Action.
Although the precise amount of Debtor's Recovery cannot be
determined, if a full recovery is received, these funds are
expected to pay all Allowed Administrative Claims in full, as well
as to fund 32% distribution to the holders of Allowed Unsecured
Claims, and the Debtor shall effectuate all payments due under the
Plan.
The Plan treats claims as follows:
* Class 2: Allowed Claim of FC Marketplace as Senior Lien
Pursuant to Cash Collateral Order of the Count and FC Marketplace
Business Loan. IMPAIRED. FC Marketplace as the sole holder of an
Allowed Class 2 Claim shall receive and be paid in cash, from the
recovery of the JTSA Action and AMG Action, if any, as per the
terms of the Cash Collateral Order and FC Marketplace Business
Loan.
* Class 4: Allowed Non-priority General Unsecured Claims.
IMPAIRED. Each holder of an Allowed Class 4 non-priority general
unsecured claim shall receive a pro rata share on account of its
Allowed Class 4 Claim, payable without interest, from the recovery
of the JTSA Action and AMG Action, if any, starting on or as soon
as practical after the Effective Date.
* Class 5: Equity Interests. Holders of Equity Interests shall
not retain any interest in the Debtor after Effective Date as this
is a liquidation plan and Debtor shall cease to operate upon
distribution in accordance with plan.
A full-text copy of the First Amended Disclosure Statement dated
Jan. 1, 2020, is available at https://tinyurl.com/vdjgprb from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Hugh L. Rothbaum
HUGH L. ROTHBAUM, PLLC
235 Main Street, Suite 320
White Plains, NY 10601
Tel: (914) 358-4232
About Verrino Construction
Verrino Construction Services Corp. -- http://vcs-corp.com/-- is a
full-service construction management firm offering construction
services. Established in 2000, the Company offers pre-construction
analysis, construction administration and consulting services. VCS
has successfully managed major commercial construction projects
consisting of retail, office, hospitality and entertainment-based
clients. VCS is headquartered in Armonk, New York.
Verrino Construction Services filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 18-23035) on July 2, 2018. In the petition
signed by Richard Verrino, president, the Debtor was estimated to
have $0 to $50,000 in assets and $1 million to $10 million in
liabilities. The Hon. Robert D. Drain oversees the case. Hugh L.
Rothbaum, Esq., at Hugh L. Rothbaum, PLLC, serves as bankruptcy
counsel; and LaGreca and LaGreca as accountants.
WEATHER KING: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The Office of the U.S. Trustee on Jan. 17 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Weather King Heating & Air,
Inc.
About Weather King Heating & Air
Weather King Heating & Air, Inc. -- https://www.weatherking1.com --
is a privately owned and operated company that provides a wide
range of services, including air conditioning repairs and
installations, heating repairs and installations, water heater
repairs and installations, heat pumps, furnaces, boilers, mini
splits, air quality solutions, and system maintenance.
Weather King Heating & Air sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ohio Case No. 19-52957) on Dec.
16, 2019. At the time of the filing, the Debtor had estimated
assets of between $100,000 and $500,000 and liabilities of between
$1 million and $10 million.
Judge Alan M. Koschik oversees the case. Steven J. Heimberger,
Esq., at Roderick Linton Belfance, LLP, is the Debtor's legal
counsel.
WELDED CONSTRUCTION: Exclusivity Period Extended Until March 16
---------------------------------------------------------------
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of
Delaware extended Welded Construction, LP and Welded Construction
Michigan, LLC's exclusivity period to file a Chapter 11 plan to
March 16 and the period to solicit acceptances for the plan to May
18.
The companies are currently working with certain key stakeholders
in their bankruptcy cases, including the unsecured creditors'
committee, in an effort to reach an agreement on a consensual
plan.
Since the petition date, the companies have obtained approval to
enter into agreements with customers to fund ongoing construction
projects and related costs and to satisfy certain claims of related
subcontractors. With this relief, the companies have focused a
significant amount of their post-petition efforts on completing the
projects, negotiating and completing hundreds of creditor claim
settlements and satisfying certain related obligations as well as
resolving a number of related disputes and issues.
In addition, the companies have obtained approval for and closed
the sales of their headquarters and personal properties, retired
their debtor-in-possession facility, filed 10 omnibus claim
objections and four notices of satisfied claims and scheduled
amounts, and have worked with the committee and interested parties
to determine the appropriate manner in which to wind down their
bankruptcy cases and monetize the value of their remaining
assets.
About Welded Construction
Perrysburg, Ohio-based Welded Construction, L.P., is a mainline
pipeline construction contractor capable of executing pipeline
construction projects in lengths ranging from a few hundred feet to
over 200 miles.
Welded Construction, L.P., and Welded Construction Michigan, LLC,
sought bankruptcy protection on Oct. 22, 2018 (Bankr. D. Del. Lead
Case No. Case No. 18-12378). The jointly administered cases are
pending before Judge Kevin Gross.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as counsel;
and Kurtzman Carson Consultants LLC as claims and noticing agent
and administrative advisor. The Debtors also tapped Zolfo Cooper
Management, LLC and the firm's managing director Frank Pometti who
will serve as their chief restructuring officer.
An official committee of unsecured creditors was appointed on Oct.
30, 2018. The committee tapped Blank Rome LLP as its legal counsel
and Teneo Capital LLC as its investment banker and financial
advisor.
WESTERN RESERVE: Plan to Give Unsecureds 25% in 6 Years
-------------------------------------------------------
Western Reserve Water Systems, Inc., has proposed a reorganization
plan.
The Debtor intends to fund the Plan from three sources; the first
is sales of equipment, the second is by the raising of cash through
two classes of zero coupon bonds and stock and the third is
collection of receivables.
The Secured Claim of KeyBank in Class 3 will be paid in full with
ongoing interest at prime plus 2% along with payment of attorneys'
fees as provided for by the loan documents to KeyBank. The Debtor
estimates the secured value of KeyBank's Class Three claim to be
$2.9 million.
The Secured Lease Claims of KeyBank in Class 4 will be paid in full
with ongoing interest at prime plus 2% along with payment of
attorneys' fees as provided for by the loan documents to KeyBank.
The Debtor estimates the secured value of KeyBank's Class Four
claim to be $3.8 million.
General unsecured claims in Class 5 will be paid at 25% of their
allowed value over a period of six years.
General unsecured creditors whose claims are less than $15,000,
classified as convenience claims in Class 6, will be paid at 10% of
their allowed value upon confirmation of this Plan.
Claims of insiders in Class 7 and claims of shareholders in Class 8
will not receive any payment.
A full-text copy of the Disclosure Statement dated Dec. 30, 2019,
is available at https://tinyurl.com/s85gxps from PacerMonitor.com
at no charge.
About Western Reserve Water Systems
Western Reserve Water Systems, Inc. --
http://www.westernreservewater.com/-- is an industrial water
service company offering a wide range of equipment, services,
parts, and consulting services for the industrial process water and
high purity water user. Western Reserve Water Systems services are
supplied to various industries, such as power generation, chemical
processing, auto, steel, food & beverage, pharmaceutical, hospital,
medical, laboratory and light industrial and commercial markets.
The Company's service center and regeneration facility is currently
located in Cleveland, Ohio, with satellite service locations in
Cincinnati, Ohio, and Terre Haute, Indiana.
Western Reserve Water Systems sought Chapter 11 protection (Bankr.
N.D. Ohio Case No. 19-11864) on April 1, 2019. In the petition
signed by Michael Eiermann, president, the Debtor disclosed total
assets at $10,285,282 and $4,306,486 in total debt. The case is
assigned to Judge Jessica E. Price Smith. The Debtor tapped Glenn
E. Forbes, Esq., at Forbes Law, LLC, as counsel.
WEWARDS INC: Incurs $186,515 Net Loss for Quarter Ended Nov. 30
---------------------------------------------------------------
Wewards, Inc., filed its quarterly report on Form 10-Q, disclosing
a net loss of $186,515 on $0 of revenue for the three months ended
Nov. 30, 2019, compared to a net loss of $451,919 on $0 of revenue
for the same period in 2018.
At Nov. 30, 2019, the Company had total assets of $4,742,355, total
liabilities of $12,382,874, and $7,640,519 in total stockholders'
deficit.
Although the Company currently has $4,264,992 of cash as of
November 30, 2019, it also has total liabilities of $12,382,874 and
has not completed its efforts to establish a stabilized source of
revenues sufficient to cover its operating costs over an extended
period of time. The Company has had no revenues since inception
and has an accumulated deficit of $12,831,350. These conditions,
among others, raise substantial doubt about the Company's ability
to continue as a going concern.
A copy of the Form 10-Q is available at:
https://is.gd/a0qgTq
Wewards, Inc. focuses to provide services for the development and
administration of Websites to support a mobile app that enables
consumers to purchase goods with Future World Group vouchers, and
merchants to sell their goods directly to the users using this
platform. The Company was formerly known as Global Entertainment
Clubs, Inc. and changed its name to Wewards, Inc. in January 2018.
Wewards, Inc. was founded in 2013 and is headquartered in Las
Vegas, Nevada.
XPO LOGISTICS: S&P Puts 'BB' ICR on CreditWatch Developing
----------------------------------------------------------
S&P Global Ratings placed all ratings on Greenwich, Conn.-based XPO
Logistics Inc., including its 'BB' issuer credit rating, on
CreditWatch with developing implications.
The CreditWatch developing placement follows XPO's announcement
that it has retained advisers to pursue the sale or spin-off of its
logistics and transportation segments. The announcement marks a
change in strategy for XPO, which had grown rapidly in previous
years through various acquisitions. Most recently, the company
initiated a share repurchase program, as it focused on organic
growth and technology-related investments. In part due to the
sudden shift in strategy, S&P revised its assessment of the
company's management and governance to fair from satisfactory.
S&P's revised assessment does not affect any of its ratings.
XTL INC: BJC Says Debtors' Disclosure Statement Has Deficiencies
----------------------------------------------------------------
Boyd Jones Construction Company ("BJC") objects to the Disclosure
Statement with respect to Joint Plan for Reorganization proposed by
XTL, Inc. and XTL-PA, Inc.
BJC points out that the Disclosure Statement does not provide
adequate information for creditors to make an informed judgment
about the Plan and describes a plan that is unconfirmable.
BJC asserts that the Disclosure Statement is fraught with a myriad
of deficiencies, not the least of which is that it describes a Plan
that cannot be confirmed.
BJC complains that the Disclosure Statement contains no information
how the Debtors will fund the Plan in the event that they are
unsuccessful in their objection to Claim 23, which is secured by,
among other assets, the Debtors’ cash collateral, certain bank
balances and the funds owed to the Debtors by the PLCB.
According to BJC, the Disclosure Statement does not disclose how
Class 2 claims will be treated in the event that the Debtors are
unsuccessful in their objection to Claim 23, and does not provide
for any alternative treatment of other classes of claims and
interests in the event that the
Debtors are unsuccessful with their objection.
BJC points out that the Disclosure Statement fails to contain
adequate information for creditors to determine the effect of the
surety agreements on the feasibility of the Debtor’s Plan.
BJC asserts that the plan fails to provide interest on any deferred
payments made to creditors to ensure that they receive the value of
their claims as of the effective date of the Plan.
BJC complains that the Plan provides no information on the impact
to creditors or to the estate of any result less than total
success.
According to BJC, the Plan is inconsistent and confusing as to the
treatment of several classes of creditors and interest.
Attorneys for Boyd Jones Construction Company:
Anne M. Aaronson
Jesse N. Silverman
DILWORTH PAXSON LLP
1500 Market Street, Suite 3500E
Philadelphia, PA 19102
Tel: (215) 575-7000
Fax: (215) 575-7200
About XTL Inc.
XTL, Inc., is a transportation & logistics company that provides
customized logistics solutions for warehousing and inventory
control of commodities and finished goods.
Ootzie Properties classifies itself as a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)) whose principal assets
are located at South 24th and Highway, 275 Industrial Council
Bluffs, Iowa.
XTL, Inc., and its subsidiaries sought Chapter 11 protection on
Aug. 1, 2019 (Bankr. E. D. Penn. Lead Case No. 19-14844). In the
petition signed by Louis J. Cerone, president, XTL was estimated to
have $10 million to $50 million in assets and $10 million to $50
million in liabilities. Hon. Eric L. Frank oversees the cases.
XTL tapped Allen B. Dubroff, Esq., at Allen B. Dubroff, Esq., &
Associates, LLC, as its counsel.
XTL INC: PIDC Says Plan Must be Amended to Include Claims
---------------------------------------------------------
PIDC Local Development Corporation ("PIDC"), filed an objection to
the approval of debtors XTL, Inc. and XTL-PA, Inc.'s Disclosure
Statement Relating to the Debtors' Joint Chapter 11 Plan of
Reorganization.
PIDC objects to approval of the Disclosure Statement as it lacks
adequate information for PIDC to make an informed judgment about
the Plan.
PIDC points out that the Disclosure Statement fails to provide
adequate information for creditors, and in particular, PIDC, to
evaluate and vote on the Plan.
PIDC asserts that the Disclosure Statement and Plan must be amended
to include the PIDC Claims and provide sufficient information
regarding the treatment of the PIDC Claims to permit PIDC to make
an informed judgment regarding the Disclosure Statement and Plan.
PIDC complains that the Debtors' Plan does not satisfy the
requirements of section 1123(a)(5) of the Bankruptcy Code, which
requires a plan to have adequate means of implementation, including
but not limited to satisfaction or modification of any lien.
According to PIDC, the Plan unconfirmable as it fails to satisfy
section 1129(b)(2) of the Bankruptcy Code.
Counsel to PIDC Local Development Corporation:
Michael D. Vagnoni
Alicia M. Sandoval
OBERMAYER REBMANN MAXWELL &HIPPEL LLP
Centre Square West
1500 Market Street, Ste. 3400
Philadelphia, PA 19102
About XTL Inc.
XTL, Inc., is a transportation & logistics company that provides
customized logistics solutions for warehousing and inventory
control of commodities and finished goods.
Ootzie Properties classifies itself as a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)) whose principal assets
are located at South 24th and Highway, 275 Industrial Council
Bluffs, Iowa.
XTL, Inc., and its subsidiaries sought Chapter 11 protection on
Aug. 1, 2019 (Bankr. E. D. Penn. Lead Case No. 19-14844). In the
petition signed by Louis J. Cerone, president, XTL was estimated to
have $10 million to $50 million in assets and $10 million to $50
million in liabilities. Hon. Eric L. Frank oversees the cases.
XTL tapped Allen B. Dubroff, Esq., at Allen B. Dubroff, Esq., &
Associates, LLC, as its counsel.
YIELD10 BIOSCIENCE: Effects 1-for-40 Reverse Stock Split
--------------------------------------------------------
Yield10 Bioscience, Inc., will effect a 1-for-40 reverse stock
split of its common stock, following stockholder approval of the
reverse stock split at the Company's special stockholders meeting
held on Jan. 9, 2020. The 1-for-40 reverse stock split will be
effective as of the close of business on Wednesday, Jan. 15, 2020
and the Company's common stock will begin trading on a
split-adjusted basis on Thursday, Jan. 16, 2020.
The reverse stock split will reduce the number of shares of the
Company's common stock currently outstanding from 39,986,201 shares
to 999,655 shares. Further, upon the effectiveness of the reverse
stock split, the Series B preferred stock issued by the Company in
its November 2019 private placement will automatically be converted
into 718,750 shares of common stock, resulting in a total of
approximately 1,718,405 outstanding shares of common stock.
Proportional adjustments will be made to the Company's outstanding
stock options, warrants and restricted stock units and to the
number of shares issued and issuable under the Company's equity
compensation plans. The number of authorized shares of the
Company's common stock will remain 60 million shares. In addition,
the warrants to purchase common stock issued in the November 2019
private placement are now exercisable.
The reverse stock split is intended to increase the market price
per share of the Company's common stock to allow the Company to
maintain the listing of its common stock on The Nasdaq Capital
Market. The Company's common stock will continue to trade on The
Nasdaq Capital Market under the symbol "YTEN." The new CUSIP
number for the common stock following the reverse stock split will
be 98585K862.
Information for Stockholders
Upon the effectiveness of the reverse stock split, each 40 shares
of the Company's issued and outstanding common stock will be
automatically combined and converted into one issued and
outstanding share of common stock, par value $0.01 per share. The
reverse stock split will not modify the rights or preferences of
the common stock. No fractional shares of common stock will be
issued as a result of the reverse split. Instead, stockholders who
otherwise would be entitled to receive fractional shares will be
entitled to receive cash in an amount equal to the product obtained
by multiplying (i) the closing price of Yield10 common stock on
Jan. 15, 2020, by (ii) the number of shares of common stock held by
the stockholder that would otherwise have been exchanged for such
fractional share interest.
The Company's transfer agent, American Stock Transfer & Trust
Company, LLC, will act as its exchange agent for the reverse stock
split. Registered stockholders holding pre-split shares of the
Company's common stock are not required to take any action to
receive post-split shares. Stockholders owning shares via a broker
or other nominee will have their positions automatically adjusted
to reflect the reverse stock split, subject to brokers' particular
processes, and will not be required to take any action in
connection with the reverse stock split. American Stock Transfer &
Trust Company, LLC can be reached at (877) 248-6417 or (718)
921-8317.
Additional information about the reverse stock split can be found
in the Company's definitive proxy statement filed with the
Securities and Exchange Commission on Dec. 5, 2019, a copy of which
is available at www.sec.gov or at www.yield10bio.com under the SEC
Filings tab located on the Investors page.
About Yield10 Bioscience
Yield10 Bioscience, Inc. is an agricultural bioscience company
which uses its "Trait Factory" to develop high value seed traits
for the agriculture and food industries to achieve step-change
improvements in crop yield to enhance global food security and
develop specialty crop products. Yield10 has an extensive track
record of innovation based around optimizing the flow of carbon in
living systems. The "Trait Factory" has two components: the
"GRAIN" computational modeling platform, which is used to identify
specific gene changes designed to improve crop performance, and the
deployment of those changes into crops using genome-editing or
traditional agricultural biotechnology approaches. The purpose of
the "Trait Factory" is to engineer precise alterations to gene
activity and the flow of carbon in plants to produce higher yields
with lower inputs of land, water or fertilizer. Yield10 is
advancing several yield traits it has developed in crops such as
canola, soybean and corn. Yield10 is headquartered in Woburn, MA
and has an Oilseeds Center of Excellence in Saskatoon, Canada.
Yield10 Bioscience reported a net loss of $9.17 million in 2018
following a net loss of $9.39 million in 2017. As of Sept. 30,
2019, the Company had $9.42 million in total assets, $6.80 million
in total liabilities, and $2.62 million in total stockholders'
equity.
RSM US LLP, in Boston, Massachusetts, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
March 28, 2019, citing that the Company has suffered recurring
losses from operations and has diminishing capital resources, which
raises substantial doubt about its ability to continue as a going
concern.
*********
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 2020. 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 ***