/raid1/www/Hosts/bankrupt/TCR_Public/200227.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, February 27, 2020, Vol. 24, No. 57
Headlines
A TO Z TOTAL: Voluntary Chapter 11 Case Summary
A. MANOS SERVICES: To File Plan & Disclosures by Feb. 29
A.L.L. INTERNATIONAL: March 26 Plan Confirmation Hearing Set
ADAMIS PHARMACEUTICALS: Intends to Resubmit ZIMHI NDA in Q2
ADAMIS PHARMACEUTICALS: Prices $6.7M Registered Direct Offering
ADVANCED MICRO: S&P Raises ICR to 'BB' on Further Debt Repayment
ALKHAIRY PROPERTIES: March 25 Hearing on Disclosure Statement
ALTA MESA: Affiliate Seeks to Hire Quinn Emanuel as Special Counsel
ANCHORAGE MIDTOWN: To List Property for $1.75M to Fund Plan
ANDREW YOUNG: Region Growth Buying Adjacent Parcels for $76K
ARIELLE TAXI: Seeks to Hire Ciardi Ciardi as Legal Counsel
ASTROTECH CORP: Fails to Comply with Nasdaq Listing Requirement
BAFFINLAND IRON: S&P Alters Outlook to Negative, Affirms 'B-' ICR
BATTERS BOX: U.S. Trustee Unable to Appoint Committee
BATTERY 17 PARKING: Voluntary Chapter 11 Case Summary
BAUSCH HEALTH: S&P Rates New Senior Secured Debt 'BB'
BMF INC: Case Summary & 20 Largest Unsecured Creditors
BRETHREN HOME: March 24 Disclosure Statement Hearing Set
CBAK ENERGY: Enters Into Exchange Agreement with Atlas Sciences
CBAK ENERGY: Falls Short of Nasdaq Minimum Bid Price Requirement
CENTER CITY HEALTHCARE: Medline Leaves Creditors' Committee
CENTRAL SECURITY: Moody's Cuts CFR to Caa2 & Alters Outlook to Neg.
CONTINENTAL CAST: Committee Seeks to Hire Sader Law Firm as Counsel
COSI INC: Files Chapter 11 Petition to Complete Transformation
COUNTRY MORNING FARMS: Cash Collateral Use Extended Thru March 31
DAVID W. AINSWORTH: Burck Buying Robstown Property for $110K
DEPENDABLE BUILDING: Wants March 2 to File Plan & Disclosure
DETROIT, MI: Moody's Alters Outlook on Ba3 Tax Debt Rating to Pos.
DGI TRADING: Case Summary & 20 Largest Unsecured Creditors
DIEFENDERFER FAMILY: Proposes Full-Payment Plan
DN ENTERPRISES: Doksane Buying Omaha Property for $79.5K
DN ENTERPRISES: Guillen Buying 2 Omaha Properties for $123K
E MECHANIC PLUS: Allowed to Use Flagg Financial Cash Collateral
EATING RECOVERY: Moody's Lowers CFR to Caa1, Outlook Stable
ELITE INVESTMENT: U.S. Trustee Unable to Appoint Committee
EMPRESA LOCAL: Wants Disclosure Hearing Continued After April 29
EPIC CRUDE: S&P Lowers Issuer Credit Rating to 'B'
EXPERT MEDICAL: Case Summary & 20 Largest Unsecured Creditors
F.A. HAUBER: Seeks to Hire David W. Steen as Legal Counsel
FENCEPOST PRODUCTIONS: U.S. Trustee Unable to Appoint Committee
FIORES MOTORS: Unsecureds to Get 30.1% If Class Accepts Plan
FLO-TECH INC: Jensen Buying Glendale Property for $725K
GENERAL CANNABIS: Appoints Principal Financial Officer
GENERAL CANNABIS: Sells $2 Million Promissory Notes to Investors
GEORGE WASHINGTON: March 11 Disclosure Motion Hearing Set
GFL ENVIRONMENT: Moody's Reviews B3 CFR for Upgrade Amid IPO Launch
GRAPHIC PACKAGING: S&P Rates $400MM Senior Unsecured Notes 'BB+'
GREENWAY SERVICES: Komatsu Financial Objects to Amended Disclosure
GROW INC: Seeks to Hire Nardella & Nardella as Legal Counsel
GTC WORKS: Unsecured Creditors to Recover 100% in Plan
HARTFORD, CT: Moody's Raises Issuer Rating to Ba3, Outlook Stable
HOT SPRINGS TAXI: U.S. Trustee Objects to Plan & Disclosures
INVICTUS MD: Obtains Court Approval to Obtain DIP Financing
JIT INDUSTRIES: Unsec. Creditors to Recover 33% in Plan
KINGMAN FARMS: Plan to Implement HB Farms Settlement Agreement
LEAWOOD PROPERTIES: Seeks to Hire Krigel & Krigel as Legal Counsel
LOURIV LLC: Selling Three Sterling Office Condo Units for $720K
LSB INDUSTRIES: Reports $96.4 Million Net Loss for 2019
LUCKY'S MARKET: LM Acquisition Buying Assets 7 Stores for $3.7M
LUCKY'S MARKET: Selling Assets in Six Florida Stores for $7.8M
LUCKY'S MARKET: Selling Store Assets to Seabra for $1.25M
MALLINCKRODT PLC: Reports Strong Fourth Quarter and 2019 Results
MARGIN HOLDINGS: Unsec. Creditors to Have 20.1% Recovery Under Plan
MICHAEL BONERT: U.S. Trustee Forms 5-Member Committee
MOONLIGHT AUTOMOTIVE: Grahams Buying Franklin Property for $320K
MURRAY METALLURGICAL: U.S. Trustee Forms 5-Member Committee
NIGHTGALLERIE LLC: Selling San Francisco Property for $450K
PEABODY ENERGY: Moody's Affirms Ba3 CFR & Alters Outlook to Neg.
PETER CHARLES: Seeks to Hire Purcell Krug as Bankruptcy Counsel
PON GROUP: Selling Itasca Residential Townhouse for $238K
RAMBUTAN THAI: March 31 Disclosure Statement Hearing Set
RELIABLE GALVANIZING: April 8 Plan & Disclosure Hearing Set
RICKY TUCKER: Hires Weeks to Auction Equipment Property
RIVERA BUSINESS: March 18 Plan Confirmation Hearing Set
RIVORE METALS: Storm Lake Buying Office Furniture for $2K
ROGER L. HARMON: Stromberger Offers Chase County Property for $3.3M
RTX SOLUTIONS: U.S. Trustee Unable to Appoint Committee
RUBY'S FRANCHISE: March 25 Plan Confirmation Hearing Set
SALLY BEAUTY: S&P Affirms 'BB-' ICR; Outlook Stable
SARAI SERVICES: March 23 Plan Confirmation Hearing Set
SCIENCE APPLICATIONS: Moody's Affirms Ba2 CFR, Outlook Negative
SCOTT C. MARINE: Gets Interim Approval to Hire Gerdes as Counsel
SEMILEDS CORP: CEO Doan Has 14.2% Stake as of Dec. 31
SIX FLAGS: S&P Puts 'BB' ICR on CreditWatch Negative
STAR CHAIN: Franchisor Buying Store FF&E for $90K
STRUCTURED CABLING: Voluntary Chapter 11 Case Summary
STURDIVANT TAYLOR: UST Seeks April 3 Deadline for Plan & Disclosure
SUITABLE TECHNOLOGIES: Beam Maker Enters Chapter 11 to Pursue Sale
SUITABLE TECHNOLOGIES: Case Summary & 7 Unsecured Creditors
TBH19 LLC: Allowed to Continue Using Cash Collateral Through May 31
TENDERLEAF VILLAGE: Continued Hearing on Plan & Disclosures April 7
TIDE MILL: April 6 Hearing on Disclosure Statement Set
TOUCHPOINT GROUP: Sells BP&E Business Unit to its Previous Owner
UNIFIED PROTECTIVE: Delays Plan to Resolve Unliquidated Claims
USA LANDS: Plan Projects "Significant Dividend" to Unsecureds
UTOPIX MEDICAL: Court Confirms Amended Plan of Reorganization
VALERITAS HOLDINGS: U.S. Trustee Forms 3-Member Committee
VARTEK LLC: April 2 Plan Confirmation Hearing Set
VETERANS FELLOWSHIP: Plan Has 95% for Unsecured Creditors
VILLA ABRIGO: U.S. Trustee Unable to Appoint Committee
VIRGINIA TRUE: March 17 Hearing on Disclosure Statement
WATSON GRINDING: U.S. Trustee Forms 7-Member Claimants Committee
WORLD AIRLINE SERVICES: Hires Susan D. Lasky as Legal Counsel
[*] Robert Rasmussen Joins Elkins Kalt's Bankruptcy Group
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
A TO Z TOTAL: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: A to Z Total Appliance Repair, Inc.
d/b/a A to Z Total Heating and Cooling
24614 Van Born
Dearborn Heights, MI 48125
Business Description: A to Z Total Appliance Repair, Inc.
(https://www.atozheating.com) is a family
owned company that services furnaces, water
heaters and air conditioners. Its
technicians service and repair all models of
residential and commercial heating and air
conditioning.
Chapter 11 Petition Date: February 26, 2020
Court: United States Bankruptcy Court
Eastern District of Michigan
Case No.: 20-42714
Debtor's Counsel: Ethan D. Dunn, Esq.
MAXWELL DUNN, PLC
24725 W. 12 Mile Rd., Ste. 306
Southfield, MI 48034
Tel: (248) 246-1166
E-mail: bankruptcy@maxwelldunnlaw.com
Total Assets: $141,008
Total Liabilities: $1,034,762
The petition was signed by Colleen Connor, vice president.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/3nhnMX
A. MANOS SERVICES: To File Plan & Disclosures by Feb. 29
--------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, established Feb. 11, 2020, as deadline for filing Plan
and Disclosure Statement by Debtor A. Manos Services, Inc., aka A.
Manos Roofing.
The Debtor has been preparing its Disclosure Statement and Plan of
Reorganization, however, the Debtor needs additional time to
develop financial projections based upon its post-petition
performance.
The Debtor requires additional time to complete its Disclosure
Statement and Plan and requests that the deadline to file the
Disclosure Statement and Plan be extended through and including
Feb. 29, 2020.
A full-text copy of the motion dated Feb. 11, 2020, is available at
https://tinyurl.com/t4wt2qk from PacerMonitor at no charge.
Counsel for the Debtor:
M. Vincent Pazienza, Esq.
23110 State Road 54, #277
Lutz, Florida 33549-6933
Telephone: (813) 949-9595
Facsimile: (813) 949-8686
About A. Manos Services
A. Manos Services, Inc. -- http://www.amanosroofing.com/-- is a
small, family-owned and operated roofing company serving the
Hillsborough, Pinellas, Pasco and Hernando counties. It specializes
in roof leak repairs and roof replacement services.
A. Manos Services sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-09721) on Oct. 14,
2019. At the time of the filing, the Debtor disclosed $1,377,003
in assets and $910,210 in liabilities.
A.L.L. INTERNATIONAL: March 26 Plan Confirmation Hearing Set
------------------------------------------------------------
On Feb. 5, 2020, Debtor A.L.L. International, LLC filed with the
U.S. Bankruptcy Court for the Western District of Texas, Austin
Division, an Amended Disclosure Statement for its Amended Plan of
Reorganization.
On Feb. 6, 2020, Judge H. Christopher Mott approved the Disclosure
Statement and established the following dates and deadlines:
* March 12, 2020, at 5:00 p.m. is fixed as the last day for
submitting ballots for acceptances or rejections of the Plan.
* March 12, 2020, at 5:00 p.m. is fixed as the last day for
filing and serving written objections to confirmation of the Plan.
* March 19, 2020, is the deadline for the counsel for the Debtor
to file with the Court (a) a ballot summary in the form required by
Local Bankruptcy Rule 3018(b) with a copy of the ballots and (b) a
memorandum of legal authorities addressing any objections filed to
the Plan.
* March 26, 2020, at 1:00 p.m., at the U.S. Bankruptcy Court,
Courtroom No. 2, 903 San Jacinto Blvd., Austin, Texas, is fixed as
the time and place of the hearing on confirmation of the Plan and
any objections.
A copy of the order dated February 6, 2020, is available at
https://tinyurl.com/wmuyc76 from PacerMonitor at no charge.
The Debtor is represented by:
Ron Satija
HAJJAR PETERS LLP
3144 Bee Caves Rd
Austin, TX 78746
Tel: (512) 637-4956
Fax: (512) 637-4958
E-mail: rsatija@legalstrategy.com
About A.L.L. International
A.L.L. International owns Marks Street Apartments, an 8-unit
apartment community located at 8931 Marks Street and 8935 Marks
Street, El Paso, El Paso County, Texas. The managing member is
Rosa Maria De La Canal, which owns 100% of the company.
A.L.L. International filed a Chapter 11 bankruptcy petition (Bankr.
W.D. Tex. Case No. 19-11182) on Sept. 3, 2019, estimating under $1
million in assets and liabilities. The Hon. Christopher Mott is
the presiding judge. Ron Satija, Esq., at Hajjar Peters, LLP, is
the Debtor's counsel.
ADAMIS PHARMACEUTICALS: Intends to Resubmit ZIMHI NDA in Q2
-----------------------------------------------------------
Adamis Pharmaceuticals Corporation provided an update on the ZIMHI
New Drug Application (NDA) resubmission process.
On Nov. 22, 2019, Adamis received a Complete Response Letter (CRL)
from the U.S. Food and Drug Administration (FDA) regarding its NDA
for its ZIMHI high-dose naloxone injection product for the
treatment of opioid overdose. On Dec. 22, 2019, the company
announced that it had provided responses to the comments raised in
the CRL and had also requested a Type A meeting. The FDA scheduled
the meeting for the second week of February. On Feb. 12, 2020,
Adamis met with the agency to discuss the CRL, Adamis' responses
and to determine the best path forward for ZIMHI.
At the face to face meeting, the Company obtained concurrence from
the agency on the Chemistry, Manufacturing and Controls (CMC)
information required for resubmission of the NDA. The additional
information involves extractables and leachables testing from the
syringe and glassware. In addition, the potential public health
role of ZIMHI (high dose naloxone) in the current opioid epidemic
was also discussed. The Company believes it can generate the
additional information and resubmit the NDA early in the second
quarter of 2020. The FDA expressed its intent to review the
resubmission in a rapid and timely manner. Adamis will provide the
next update on the ZIMHI NDA after the resubmission is accepted.
Dr. Dennis J. Carlo, president and CEO of Adamis, stated, "We are
thankful to the Agency for expediting our meeting request and we
are very pleased with the outcome of the meeting. Most fatal drug
overdoses in the U.S. are attributable to potent synthetic opioids
like fentanyl. Therefore, we believe there is an urgent need for
higher dose forms of naloxone such as ZIMHI to combat the
increasing potency of these opioids. We are committed to
expeditiously complete the work required to resubmit our NDA and we
remain committed to bringing ZIMHI to the market."
About Adamis
San Diego, Calif.-based Adamis Pharmaceuticals Corporation
(OTCQB:ADMP) -- http://www.adamispharmaceuticals.com/-- is a
specialty biopharmaceutical company primarily focused on developing
and commercializing products in various therapeutic areas,
including respiratory disease and allergy. The Company's Symjepi
(epinephrine) Injections 0.3mg and 0.15mg were approved for use in
the emergency treatment of acute allergic reactions, including
anaphylaxis. Adamis recently announced a distribution and
commercialization agreement with Sandoz, a division of Novartis
Group, to market Symjepi in the U.S. Adamis is developing
additional products, including the company's ZIMHI naloxone
injection product candidate for the treatment of opioid overdose,
and a metered dose inhaler and dry powder inhaler product
candidates for the treatment of asthma and COPD. The company's
subsidiary, U.S. Compounding, Inc., compounds sterile prescription
drugs and certain nonsterile drugs for human and veterinary use, to
patients, physician clinics, hospitals, surgery centers and other
clients throughout most of the United States.
Adamis incurred a net loss of $39 million in 2018, following a net
loss of $25.53 million in 2017. As of Sept. 30, 2019, the Company
had $52.84 million in total assets, $12.54 million in total
liabilities, and total stockholders' equity of $40.30 million.
Mayer Hoffman McCann P.C., in San Diego, California, the Company's
auditor since 2007, issued a "going concern" qualification in its
report on the Company's consolidated financial statements for the
year ended Dec. 31, 2018. The auditors noted that the Company has
incurred recurring losses from operations, and is dependent on
additional financing to fund operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
ADAMIS PHARMACEUTICALS: Prices $6.7M Registered Direct Offering
---------------------------------------------------------------
Adamis Pharmaceuticals Corporation has entered into a securities
purchase agreement with certain accredited institutional investors
to purchase approximately $6.7 million of its common stock in a
registered direct offering and warrants to purchase shares of
common stock in a concurrent private placement. The combined
purchase price for one share of common stock and 0.75 warrants will
be $0.58.
Under the terms of the purchase agreement, Adamis has agreed to
sell 11,600,000 shares of its common stock. In a concurrent
private placement, Adamis has agreed to issue warrants to purchase
up to an aggregate of 8,700,000 shares of common stock. The
warrants will be exercisable commencing on the later of (i) six
months from the date of issuance or (ii) the date that Adamis'
stockholders approve either an increase in the number of Adamis'
authorized shares of common stock or a reverse stock split, in
either case in an amount sufficient to permit the exercise in full
of all of the warrants, will expire on the five year anniversary of
the initial exercise date and will have an exercise price of $0.70
per share.
The gross proceeds to the Company from the registered direct
offering and concurrent private placement are expected to be
approximately $6.7 million before deducting the placement agents'
fees and other estimated offering expenses. The registered direct
offering and concurrent private placement is expected to close on
or about Feb. 25, 2020, subject to the satisfaction of customary
closing conditions.
Maxim Group LLC is acting as the sole placement agent in connection
with the offering.
The common shares are being offered pursuant to a shelf
registration statement on Form S-3 (File No. 333-226100) previously
filed and declared effective by the Securities and Exchange
Commission. The warrants issued in the concurrent private
placement and shares issuable upon exercise of such warrants were
offered in a private placement under Section 4(a)(2) of the
Securities Act of 1933, as amended, and Regulation D promulgated
thereunder and have not been registered under the Act or applicable
state securities law.
About Adamis
San Diego, Calif.-based Adamis Pharmaceuticals Corporation
(OTCQB:ADMP) -- http://www.adamispharmaceuticals.com/-- is a
specialty biopharmaceutical company primarily focused on developing
and commercializing products in various therapeutic areas,
including respiratory disease and allergy. The Company's Symjepi
(epinephrine) Injections 0.3mg and 0.15mg were approved for use in
the emergency treatment of acute allergic reactions, including
anaphylaxis. Adamis recently announced a distribution and
commercialization agreement with Sandoz, a division of Novartis
Group, to market Symjepi in the U.S. Adamis is developing
additional products, including the company's ZIMHI naloxone
injection product candidate for the treatment of opioid overdose,
and a metered dose inhaler and dry powder inhaler product
candidates for the treatment of asthma and COPD. The company's
subsidiary, U.S. Compounding, Inc., compounds sterile prescription
drugs and certain nonsterile drugs for human and veterinary use, to
patients, physician clinics, hospitals, surgery centers and other
clients throughout most of the United States.
Adamis incurred a net loss of $39 million in 2018, following a net
loss of $25.53 million in 2017. As of Sept. 30, 2019, the Company
had $52.84 million in total assets, $12.54 million in total
liabilities, and total stockholders' equity of $40.30 million.
Mayer Hoffman McCann P.C., in San Diego, California, the Company's
auditor since 2007, issued a "going concern" qualification in its
report on the Company's consolidated financial statements for the
year ended Dec. 31, 2018. The auditors noted that the Company has
incurred recurring losses from operations, and is dependent on
additional financing to fund operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
ADVANCED MICRO: S&P Raises ICR to 'BB' on Further Debt Repayment
----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Santa Clara,
Calif.-based Advanced Micro Devices Inc. (AMD) to 'BB' after the
semiconductor firm repaid $965 million of debt in 2019, reflecting
an improving balance sheet and profitability.
S&P raised its ratings on the firm's senior unsecured debt to 'BB'
from 'BB-' and revised the recovery ratings to '3' from '4'. S&P
also raised its rating on AMD's senior secured revolving credit
facility to 'BBB-' from 'BB+'. Recovery ratings are unchanged at
'1'.
AMD's financial leverage continues to rapidly decline amidst EBITDA
growth and debt repayment. AMD repaid $965 billion of debt over the
past year, reducing its outstanding debt principal balance to $563
million from $1.5 billion, while a return to positive free cash
flow enabled the firm to grow cash balances to over $1.5 billion.
Although S&P expects cash balances to decline somewhat in the first
half of 2020 as the firm builds inventory in support of strong
top-line growth, the rating agency believes the firm's conservative
financial policy will keep leverage under 1x, and forecast adjusted
leverage to reach 0.5x over the next 12 months."
The positive outlook on AMD reflects S&P's view that a strong
product pipeline will support further market share gains in
high-end consumer and server CPU markets, enabling AMD to return to
double-digit revenue growth in 2020 as the broader semiconductor
market recovers. S&P forecasts credit metrics to further improve
over the course of 2020, with leverage declining to 0.5x. The
rating agency further expects the company will generate respectable
free cash flow on improving profitability and limited further
growth in inventory levels.
"We would look to continued revenue and free cash flow growth along
with expanded EBITDA margins as primary factors for a further
upgrade to 'BB+'. Further market share gains against Intel and
sustained share against Nvidia, as well as leverage remaining at or
below current levels and a continued commitment to a conservative
financial policy would also be supportive of a potential upgrade,"
S&P said.
"We could stabilize the rating on AMD if the firm's Zen
architecture CPUs and Navi GPUs lose traction in the market and the
firm's market share growth stalls over the next year, leading to
stagnant revenues and declining margins as the firm invests in R&D
to support new product launches. We would also view a deterioration
in the firm's liquidity position through shareholder returns as
unsupportive of a further upgrade; cash levels below $600 million
could lead to a stabilized rating outlook," the rating agency said.
ALKHAIRY PROPERTIES: March 25 Hearing on Disclosure Statement
-------------------------------------------------------------
Judge Robert E. Grant has ordered that the court will hold a
hearing on March 25, 2020 at 11:10 am in Room 2127, Federal
Building, 1300 South Harrison Street, Fort Wayne, Indiana, to
consider the approval of the Disclosure Statement filed by Alkhairy
Properties LLC.
Any objection to the Disclosure Statement will be filed no later
than seven days prior to the hearing.
Under the plan, Garret State Bank will retain its prepetition liens
and will be paid $1,000 per month starting on Jan. 1, 2020, and a
lump sump of $50,000 on or before July 1, 2020. Tax entities will
be paid when due. Unsecured creditors, if any, will be paid in
semi-annual installments for a three-year period. Fauzia Alkhairy
will contribute $300,000 to repurchase her equitable position in
the company.
A copy of the Disclosure Statement is available at
https://tinyurl.com/ujl6eum from PacerMonitor.com free of charge.
Alkhairy Properties LLC sought Chapter 11 protection (Bankr. N.D.
Ind. Case No. 19-10942) on May 24, 2019, estimating less than $1
million in assets and up to $50,000 in liabilities. R. David
Boyer II, Esq., at BOYER & BOYER, is the Debtor's counsel.
ALTA MESA: Affiliate Seeks to Hire Quinn Emanuel as Special Counsel
-------------------------------------------------------------------
Kingfisher Midstream, LLC, an affiliate of Alta Mesa Resources,
Inc., seeks authority from the U.S. Bankruptcy Court for the
Southern District of Texas to hire Quinn Emanuel Urquhart &
Sullivan, LLP as its special counsel.
Quinn Emanuel will represent Kingfisher Midstream in an adversary
case (Case No. 20-3015) filed by Mustang Gas Products, LLC against
the company and 19 others on Jan. 20.
The firm's hourly rates are:
Partner $1,040 - $1,595
Associates/Of Counsel $625 - $1,175
Paralegal $355
Quinn Emanuel is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Patricia B. Tomasco, Esq.
Quinn Emanuel Urquhart & Sullivan, LLP
Pennzoil Place
711 Louisiana St., Suite 500
Houston, TX 77002
Phone: +1 713 221 7000
Fax: +1 713 221 7100
About Alta Mesa Resources
Alta Mesa Resources, Inc. is an independent energy company focused
on the development and acquisition of unconventional oil and
natural gas reserves in the Anadarko Basin in Oklahoma, and through
Kingfisher Midstream, LLC, provides best-in-class midstream energy
services, including crude oil and gas gathering, processing and
marketing and produced water disposal to producers in the STACK
play.
Alta Mesa reported $1.4 billion in assets and $864 million in
liabilities as of Dec. 31, 2018.
Alta Mesa and six affiliates sought Chapter 11 protection (Bankr.
S.D. Tex. Case No. 19-35133) on Sept. 11, 2019.
The Hon. Marvin Isgur is the case judge.
The Debtors tapped Porter Hedges LLP and Latham & Watkins LLP as
attorneys; and Perella Weinberg Partners LP and its affiliate Tudor
Pickering Holt & Co Advisors LP as investment banker. Prime Clerk
LLC is the claims agent.
ANCHORAGE MIDTOWN: To List Property for $1.75M to Fund Plan
-----------------------------------------------------------
Anchorage Midtown Motel, Inc., a Single Asset Real Estate, has
proposed a Chapter 11 plan that contemplates the sale of its
property to fund its plan.
AMMI's largest (and only) asset is the real property and the
building (including the furniture, fixtures, and equipment inside
of it), valued at $414,200 and the buildings at $1,440,300, for a
total value of $1,854,500. This valuation does not take into
account the damage to one of the buildings due to the fire in 2017.
The Debtor believes the actual fair market value may be less but a
recent assessment conducted by the FNBA, after the fire, for
insurance purposes, estimated the value at approximately $1.3
million.
This is a liquidating Plan that will pay all creditors from the
sale proceeds.
All secured creditors, including FNBA, the Internal Revenue
Service, the Municipality of Anchorage, Thomas Head & Greisen,
Katelyn Cusack, and TCM (though the amount of TCM's claim may be
separately disputed) will retain all collateral rights and be
repaid in full, with interest, when the property sells, unless
otherwise agreed by the creditor. Interest on secured claims will
accrue at 6.25% from the Petition Date (except the IRS at a
statutorily-mandated 4%). Unsecured creditors will accrue 5%
interest from the Petition Date and be paid in full upon a sale of
the property, or within 12 months of any "take out" financing by
the Debtor.
The property will initially be listed at a price of $1.75 million
(approximately the City assessed value). If the property is not
sold by Sept. 1, 2020, the price shall be reduced to $1.5 million
(approximately the most-recent appraised value). If the property
is not sold by Dec. 31, 2020, the Debtor will have the option to
make a principal paydown to FNBA of $51,500 (10%) in order to
extend the Plan until Dec. 31, 2021, but will concurrently reduce
the price to $1.3 million (the value set by FNBA's insurance
inspector). If the property is not sold by Dec. 31, 2021, there
will be a conversion and appointment of a chapter 7 trustee.
Monthly payments under the Plan will begin on the 1st day of the
month in the month following the Effective Date, provided that the
1st is at least 30 days from the Effective Date (e.g., if the
Effective Date is April 21, 2020, then the first monthly payment
would be due on June 1, 2020).
Class U-1. This class includes all allowable general unsecured
non-priority claims ($142,927.83). The Debtor will pay unsecured
claims in full upon the sale of the property with 5 percent
interest, or within 12 months of any "take out" financing.
The Plan will be funded by the cash generated by the continued
operation of AMM.
A full-text copy of the Disclosure Statement dated February 19,
2020, is available at https://tinyurl.com/vuombqu from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Shane Kanady
Michael R. Mills
DORSEY & WHITNEY LLP
1031 West Fourth Avenue,
Suite 600 Anchorage, AK 99501
Tel: (907) 276-4557
E-mail: kanady.shane@dorsey.com
mills.mike@dorsey.com
About Anchorage Midtown Motel
Anchorage Midtown Motel, Inc., is a single asset real estate as
defined in 11 U.S.C. Section 101(51B). It owns the Anchorage
Midtown Motel, a centrally located motel/boarding house consisting
of four buildings with more than 62 rooms.
Anchorage Midtown Motel, based in Anchorage, Arkansas, filed a
Chapter 11 petition (Bankr. D. Alaska Case No. 17-00148) on April
25, 2017, listing $1 million to $10 million in assets and less than
$1 million in liabilities. A Chapter 11 plan was confirmed on Dec.
5, 2017.
The 2017 petition was signed by Kelly M. Millen, the Debtor's
vice-president and secretary. Judge Gary Spraker presided over the
2017 case. Michael R. Mills, Esq., at Dorsey & Whitney LLP, served
as the Debtor's bankruptcy counsel in that case.
Anchorage Midtown Motel again filed for Chapter 11 bankruptcy
(Bankr. Alaska Case No. 19-00369) on Nov. 21, 2019, listing under
$10 million in assets and $500,001 to $1 million in liabilities.
Dorsey & Whitney LLP also serves as bankruptcy counsel in the case.
ANDREW YOUNG: Region Growth Buying Adjacent Parcels for $76K
------------------------------------------------------------
Andrew L. Young asks the U.S. Bankruptcy Court for the Northern
District of Illinois to authorize the sale of the even parcels
located in the area bound by: 25th Ave to the north; I-80/94 to the
south, Chase St. to the east; and Burr St. to the west ("Designated
Area"), as specifically identified in Exhibit A to the Adjacent
Parcel Purchase Agreement together with all improvements thereon
and all rights and privileges appurtenant thereto, to Region Growth
Capital, LLC or its designee for $75,783, subject to adjustment for
the removal of any Individual Parcel from the Property by the
Purchaser as permitted by the Adjacent Parcel Purchase Agreement.
On Jan. 28, 2020, following extensive arms'-length negotiations,
the Debtor entered into the Adjacent Parcel Purchase Agreement with
RGC. The Adjacent Parcel Purchase Agreement provides for the sale
of the Debtor's right, title and interest in the Property, free and
clear of all liens, claims, encumbrances and other interests, for a
purchase price of $75,783 subject to adjustment for the removal of
any Individual Parcel from the Property by the Purchaser as
permitted by the Adjacent Parcel Purchase Agreement.
The other key terms of the First Purchase Agreement are:
a. Section 2.3(a) Earnest Money. Within three business days
after the execution of the Agreement, the Purchaser will deposit
with the Escrow Company, as escrow agent, the sum of $3,804.
Within three business days after the Sale Order in form and
substance acceptable to the Purchaser and the Sellers becoming a
Final Order, the Purchaser will deposit with the Escrow Company, as
escrow agent, an additional $7,609.
b. Section 2.5 Bankruptcy Court Approval. The First Purchase
Agreement requires the Debtors to file a Sale Motion requesting
entry of a Sale Order that is acceptable to the Purchase and
includes inter alia the following terms:
(i) That the sale of the Property will be free and clear
of all Encumbrances, (other than Permitted Exceptions) with such
Encumbrances attaching to the proceeds of the Sale.
(ii) That the sale of the Property will be on an "as is,
where is" basis free and clear of all Encumbrances, and without
representations or warranties of any kind, nature or description by
the Sellers or their respective agents, except as expressly set
forth in the Agreement.
c. Sections 3.2, 3.3 and 4.2 Due Diligence Period/Closing
Date/Title and Survey/Closing Conditions. The Agreement
contemplates a Due Diligence Period beginning on the date of the
Agreement and ending at 11:59 p.m. (CT) on the date that is 30 days
after the date on which the Sale Order acceptable to the Purchaser
and the Sellers becomes a Final Order. The Closing Date is the
date that is no later than 60 days after the expiration of the Due
Diligence Period and assuming all of the conditions in Section 4.2
have been satisfied. In addition to other conditions set forth in
the Agreement, the obligation of each of the Debtors, on the one
hand, and the Purchaser, on the other hand, to consummate the
transaction contemplated under the Agreement will be contingent
upon the following:
(i) The Bankruptcy Court will have entered the Sale Order
on Feb. 28, 2020 in form and substance acceptable to the Purchaser
approving the Sale to the Purchaser, and the Sale Order will have
become a Final Order.
(ii) The Sale Order will have become a Final Order, which
will not be subject to appeal or stay on March 13, 2020.
(iii) Solely as a Purchaser condition, as of the Closing
Date, the Title Company will have delivered to the Purchaser an
initialed mark-up of the Title Commitment or a signed pro-forma
title policy in the amount of the Purchase Price, updating the
effective date to the date of the recording of the deed,
irrevocably committing to insure Purchaser as owner of the Property
in fee simple, containing no exceptions other than Permitted
Exceptions, and including extended coverage over the so-called
standard exceptions and all endorsements and affirmative coverage
requested by the Purchaser.
d. Sections 2.2, 2.3(c) and 2.4, "AS-IS, WHERE-IS"
Sale/Assumed Liabilities/Excluded Liabilities/Payment and Escrow
for Real Estate Taxes at Closing. Except for the representations
and warranties set forth in the First Purchase Agreement or in the
documents delivered at Closing, and the provision that the Property
is sold free and clear of any Encumbrances, the Purchaser will
purchase the Property in its "AS-IS, WHERE-IS" condition. Other
than the Assumed Liabilities (i.e., real estate taxes and
assessment solely for the 2020 tax year due 2021 with respect to
the Property and no other real estate taxes and assessments), the
Purchaser will not assume any liabilities of the Debtors. All real
estate taxes and assessments that are currently due and owing with
respect to the Property will be paid at Closing. The First
Purchase Agreement further provides that to the extent the 2019
real estate taxes are not yet due, 105% of the projected amount
will be held in escrow from the Sale Proceeds by the Escrow Company
and disbursed when such taxes become due and owing, with any
remaining amount for 2019 taxes in the Escrow after payment of such
taxes to be paid to the Debtors by the Escrow Company.
e. Section 4.5 Second Purchase Agreement. Contemporaneously
with the Adjacent Parcel Purchase Agreement, Andrew Young and
Surplus Management Systems, LLC have entered into a separate
Agreement of Purchase and Sale with RGC, which contemplates the
sale of 85 additional properties located within the Designated
Area. The terms and conditions of the Second Purchase Agreement
are materially the same as the First Purchase Agreement, provided
that the Purchaser is not entitled to a 30-day extension of the Due
Diligence Period under Second Purchase Agreement. The Adjacent
Parcel Purchase Agreement requires that contemporaneously with the
Sale Order being entered approving the Adjacent Parcel Purchase
Agreement, Andrew Young and Surplus Management Systems, LLC must
obtain an order acceptable in form and substance to Purchaser
approving the Second Purchase Agreement and such sale order
approving the Second Purchase Agreement will become a Final Order
no later than two business days after the Sale Order approving the
Adjacent Parcel Purchase Agreement becoming a Final Order.
However, the Closing of the Sale pursuant to the Second Purchase
Agreement is not a condition of the Adjacent Parcel Purchase
Agreement.
f. Section 5.4 Closing Costs. The Agreement provides that
Purchaser and the Debtors will each pay their own attorney's fees
related to the preparation of the Agreement and the transaction
contemplated hereby. The Purchaser will also pay (i) all premiums
and charges of the Title Company for the Title Commitment and the
owner's policy of title insurance, as ordered by the Purchaser,
(ii) the cost of preparing the Survey, as ordered by the Purchaser,
(iii) all customary state, county and local recordation fees and
transfer taxes, documentary stamp taxes and similar charges, as
calculated by the Title Company, if any, applicable to the transfer
of the Property to the Purchaser, (iv) all title escrow fees and
costs, if any, charged by the Title Company, and (v) any other
customary title-related closing cost charged by and payable to the
Title Company at Closing. Any other fees and closing costs will be
the responsibility of the Debtors, including but not limited to,
any cost related to, or as a result of, the Debtors' bankruptcy
cases.
g. Sections 6 and 7 Representations and Warranties. The
Agreement provides for customary representations and warranties
regarding the parties' respective power and authority to entire
into the contemplated transactions, and disclosures regarding the
Property.
According to the Lake County Treasurer's website, approximately
$280,000 is currently due and owing for real estate taxes and
assessments on the Property that is subject to the First Purchase
Agreement and the Second Purchase Agreement, including 2018 taxes
payable in 2019 and for all prior periods. The 2019 taxes payable
2020 for the Property that is subject to the First Purchase
Agreement and the Second Purchase Agreement are estimated at
approximately $14,000 based on 105% of the 2018 tax bills.
Accordingly, the Purchase Price for the Property ($996,000 in the
aggregate) vastly exceeds the outstanding and estimated tax
liabilities to be paid or escrowed for at the Closing of the
contemplated Sale. The aggregate Purchase Price for the Property
that is subject to the First Purchase Agreement and the Second
Purchase Agreement also exceeds the aggregate assessed values of
such property, which total $327,300 according to the Lake County
Assessor's website.
The Debtors acknowledge and agree that the net proceeds from the
sale of the Property to the Purchaser will be deposited into each
of the Debtors' DIP bank accounts in accordance with their
respective distributions at closing and held pending further order
of the Court authorizing any distributions of such funds.
Furthermore, the Debtors will file and serve a report of sale
within seven days of the closing, as required by Fed. R. Bankr. P.
6001(f)(1) and Local Rule B-6004-1(c). 23. Both of these provisions
are included in the proposed Sale Order.
The Agreement requires the Debtors to secure entry of the Sale
Order by Feb.y 28, 2020. Therefore, the Debtors request a hearing
between Feb. 19, 2020 and Feb. 28, 2020, subject to the Court's
availability.
A copy of the Agreement is available at https://tinyurl.com/tq6jfb4
from PacerMonitor.com free of charge.
Wadsworth, Illinois-based Andrew L. Young filed for Chapter 11
bankruptcy protection on November 23, 2009 (Bankr. N.D. Ill. Case
No. 09-44322). Gregory K. Stern, Esq., at Gregory K. Stern, P.C.,
assists the Company in its restructuring effort. The Company was
estimated to have assets at $10 million to $50 million in assets
and liabilities at $1 million to $10 million in its Chapter 11
petition.
ARIELLE TAXI: Seeks to Hire Ciardi Ciardi as Legal Counsel
----------------------------------------------------------
Arielle Taxi, LLC seeks authority from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to hire Ciardi Ciardi &
Astin, P.C. as its legal counsel.
Ciardi will provide services to the Debtor in connection with its
Chapter 11 case, which include legal advice regarding its powers
and duties under the Bankruptcy Code and the preparation of a
bankruptcy plan.
The firm received a retainer in the amount of 25,000.
Albert Ciardi, III, Esq., a partner at the firm, 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.
Ciardi Ciardi can be reached at:
Albert A. Ciardi, III, Esq.
Ciardi Ciardi & Astin, P.C.
2005 Market Street, Suite 3500
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: (215) 557-3551
Email: aciardi@ciardilaw.com
About Arielle Taxi
Arielle Taxi, LLC, a privately held company in the taxi and
limousine service industry, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Penn. Case No. 20-10798) on Feb.
7, 2020. In the petition signed by Ofer Harari, officer, the Debtor
estimated $50,000 to $100,000 in assets and $1 million to $10
million in liabilities. Judge Magdeline D. Coleman oversees the
case. Albert A. Ciardi, III, Esq., at Ciardi Ciardi & Astin, P.C.,
is the Debtor's legal counsel.
ASTROTECH CORP: Fails to Comply with Nasdaq Listing Requirement
---------------------------------------------------------------
Astrotech Corporation receives on Feb. 18, 2020, a notice from the
Listing Qualifications Department of the Nasdaq Stock Market LLC
stating that the Company was not in compliance with the required
stockholder's equity of $2.5 million.
Astrotech previously reported in its Form 10-Q for the fiscal
quarter ended Dec. 31, 2019, that the Company was not in compliance
with the minimum stockholders' equity requirement under Nasdaq
Listing Rule 5550(b)(1) for continued listing on The Nasdaq Capital
Market because the Company's stockholders' equity was below the
required minimum of $2.5 million at Dec. 31, 2019.
The Notice has no immediate effect on the Company's listing on the
Nasdaq Capital Market. The Company has until April 3, 2020 to
submit a plan to regain compliance with the minimum stockholders'
equity requirement. If the Company's plan to regain compliance is
accepted, Nasdaq may grant an extension of up to 180 calendar days
from the date of the Notice to evidence compliance.
The Company is presently evaluating various courses of action to
regain compliance and intends to timely submit a plan to Nasdaq to
regain compliance with the Nasdaq minimum stockholders' equity
requirement. However, there can be no assurance that the Company's
plan will be accepted or that if it is, the Company will be able to
regain compliance by the end of the Compliance Period. If the
Company's plan to regain compliance is not accepted, or if it is
and the Company does not regain compliance during Compliance
Period, or if the Company fails to satisfy another Nasdaq
requirement for continued listing, Nasdaq could provide notice that
the Company's common stock will become subject to delisting. In
such event, Nasdaq rules would permit the Company to appeal the
decision to reject the Company's proposed plan to regain compliance
or any delisting determination to a Nasdaq Hearings Panel.
About Astrotech
Astrotech Corporation (NASDAQ: ASTC) (www.astrotechcorp.com), a
Delaware corporation organized in 1984, is a science and technology
development and commercialization company that launches, manages,
and builds scalable companies based on innovative technology in
order to maximize shareholder value.
Astrotech reported a net loss of $7.53 million for the year ended
June 30, 2019, compared to a net loss of $13.25 million for the
year ended June 30, 2018. As of Dec. 31, 2019, the Company had
$3.67 million in total assets, $3.43 million in total liabilities,
and $247,000 in total stockholders' equity.
Armanino LLP, in San Francisco, California, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated Sept. 30, 2019, citing that the Company has suffered
recurring losses from operations and has net cash flows
deficiencies that raise substantial doubt about its ability to
continue as a going concern.
BAFFINLAND IRON: S&P Alters Outlook to Negative, Affirms 'B-' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Baffinland Iron Mines
Corp. to negative from stable, and affirmed its 'B-' issuer credit
rating (ICR) on the company and its 'B-' issue-level rating on the
company's senior unsecured notes.
The outlook revision follows a delay in receiving permits for the
company's Phase 3 rail expansion project, which has limited cash
flow visibility and increased liquidity risk. In November 2019,
Baffinland halted work on its Phase 3 expansion, following the
Nunavut Impact Review Board's decision to defer its public hearing
on the project. The project, which would expand the company's
mine-to-port shipping capacity and thereby increase operating
capacity to 18 million metric tons per year (Mtpa) from about 6
Mtpa, is on hold until management has greater clarity regarding
permit approvals. There is no assurance that permitting will be
received in a timely manner, if at all. Baffinland also requires a
permit to continue to produce at 6 Mtpa (versus 4.2 Mtpa), which
S&P expects will be received shortly.
"In our view, the Phase 3 permitting delay has reduced the
visibility of Baffinland's prospective operating results and
liquidity. We had previously assumed the company would fund
significant Phase 3 capital requirements predominantly with
external financing, including sponsor equity contributions," S&P
said.
S&P no longer assumes Phase 3 will commence this year (though
acknowledge this assumption is speculative) and it has reduced the
company's estimated capital expenditures. However, S&P is growing
concerned with Baffinland's liquidity position, particularly given
the company's relatively modest cash on hand, reliance on its bank
facility, and recent iron ore price volatility. Without the
proposed expansion, the rating agency believes the company has a
comparatively lower access to capital markets and prospects for
materially higher future cash flows. In the event Baffinland's base
operations do not generate positive free cash flow, the company
could become increasingly dependent on its credit facility and
sponsor equity contributions (which S&P believes are likely, but
not assured). The rating agency estimates the company will generate
modestly positive free cash flow this year, but operate close to
its financial covenant thresholds.
The negative outlook reflects the increased risk of a downgrade
within the next 12 months, if Baffinland's operating results and
liquidity materially declined to an extent that S&P no longer views
the company's capital structure as sustainable. The outlook
revision follows the delay in obtaining permits for its Phase 3
rail expansion project, which the rating agency believes heightens
uncertainty surrounding the company's cash flow and access to
capital.
"We could lower the ratings if we expect liquidity will weaken
materially, leading to a deficit of sources relative to uses of
cash over the next 12 months or adjusted EBITDA interest coverage
approaching 1.5x. This could happen if the company generates
weaker-than-expected cash flow, most likely due to an unexpected
drop in realized iron ore prices and premiums or
higher-than-expected costs related to the Phase 3 deferral. We
could also lower the ratings if the company proceeds with its
expansion, with funding that leads to debt levels that we view as
unsustainable," S&P said.
"We could revise the outlook to stable in the next 12 months if
Baffinland generates higher-than-expected free cash flow that leads
to a material increase in its cash position. In this scenario, we
would also likely expect improved visibility regarding the
company's ability and capacity to fund its Phase 3 expansion,
assuming permits are received, while maintaining an adjusted
EBITDA-to-interest coverage ratio of at least 2x and capital
structure that we view as sustainable," the rating agency said.
BATTERS BOX: 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
Batters Box Miami, LLC, according to court dockets.
About Batters Box Miami
Batters Box Miami, LLC filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 20-10638) on Jan. 17, 2020, disclosing
under $1 million in both assets and liabilities. Judge Laurel M.
Isicoff oversees the case. The Debtor tapped Richard Siegmeister,
PA. as its legal counsel, and Lillian Urbandt, an accountant based
in Miami.
BATTERY 17 PARKING: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Battery 17 Parking, LLC
17 Battery Place
New York, NY 10004
Chapter 11 Petition Date: February 18, 2020
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 20-10510
Debtor's Counsel: David A. Scalzi, Esq.
921 Stillwater Road
Stamford, CT 06902
Tel: (203) 554-6381
E-mail: scalzi@optonline.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $0 to $50,000
The petition was signed by Ronald Massie, managing member.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/jSr4R3
BAUSCH HEALTH: S&P Rates New Senior Secured Debt 'BB'
-----------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '1'
recovery rating to Bausch Health Cos. Inc.'s (Bausch Health)
proposed senior secured bank facility. The facility will comprise a
$1.25 billion senior secured revolver maturing in 2025 and a $5.14
billion term loan B maturing in 2027, both of which will be issued
by Bausch Health Americas Inc. (an indirect wholly owned subsidiary
of Bausch Health).
At the same time, S&P assigned its 'BB' issue-level rating and '1'
recovery rating to Bausch Health's proposed $3.25 billion senior
secured notes, which it will offer in two tranches maturing in 2028
and 2030, respectively. The '1' recovery rating indicates S&P's
expectation for very high recovery (90%-100%; rounded estimated:
95%). The rating agency expects the transaction to be leverage
neutral because the company plans to use the proceeds to refinance
a like amount of its existing debt. The transaction will also
reduce Bausch Health's interest expense and extend its debt
maturities (with the next significant maturity in 2023).
Global pharmaceutical and medical device company Bausch Health
firmly returned to top-line growth in the past year. In addition,
the company's focus on deleveraging over the last several years has
led it to reduce its debt to roughly $25 billion from over $32
billion in 2016, which it partially funded with the proceeds from
its $3.2 billion of divestitures in 2017. The extension of Bausch
Health's debt maturities will also provide it with increased
flexibility to support its newly launched products and build up its
product pipeline. Bausch Health has committed to using a majority
of its cash flows to reduce debt. Its ability to quickly reduce its
debt will rely heavily on the expansion of its sales and EBITDA.
S&P believes Bausch Health's leverage will remain in the 6.5x-7.0x
range over the next year.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P continues to value the company on a going-concern basis
using a 7x multiple of our projected EBITDA at default. This
multiple is consistent with the multiples S&P uses for the
company's peers.
-- S&P estimates that for the company to default its EBITDA would
have to decline to approximately $1.78 billion. Its recovery
analysis assumes that in a hypothetical bankruptcy scenario Bausch
Health would reorganize rather than liquidate because of continued
demand for its products. Alternatively, its lenders could break up
its diverse product families and sell them to strategic buyers.
Simulated default assumptions
-- Simulated year of default: 2024
Simplified waterfall
-- EBITDA multiple: 7x
-- Net enterprise value (after administrative costs): $14.237
billion
-- Obligor/nonobligor split: 95%/5%
-- First-lien debt claims: $12.027 billion
-- Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Total value available to unsecured claims: $2.21 billion
-- Unsecured claims: $14.735 billion
-- Recovery expectations: 10%-30% (rounded estimate: 15%)
BMF INC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: BMF, Inc.
Road 798, Km. 0.6
Rio Canas Ward
Caguas, PR 00725
Business Description: BMF, Inc. is a privately held company that
operates a water distillation operation
to produce bottled drinking water. The
Debtor markets the water it distills to
various retail chains and restaurants
throughout Puerto Rico and the Caribbean
region. The Debtor previously sought
bankruptcy protection on Nov. 14, 2012
(Bankr. D.P.R. Case No. 12-00658).
Chapter 11 Petition Date: February 26, 2020
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 3:20-bk-00964
Debtor's Counsel: Hector Eduardo Pedrosa Luna, Esq.
THE LAW OFFICES OF HECTOR EDUARDO PEDROSA LUNA
P.O. Box 9023963
San Juan, PR 00902-3963
Tel: 787-920-7983
E-mail: hectorpedrosa@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Andrew Bert Foti-Tallenger, CEO.
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/UIqTgT
BRETHREN HOME: March 24 Disclosure Statement Hearing Set
--------------------------------------------------------
On Feb. 5, 2020, debtor Brethren Home of Girard, Illinois filed
with the U.S. Bankruptcy Court for the Central District of Illinois
a Disclosure Statement and a Plan of Reorganization. On Feb. 6,
2020, Judge Mary P. Gorman ordered that:
* March 17, 2020, is fixed as the last day for filing and serving
written objections to the Disclosure Statement.
* March 24, 2020, at 9:30 a.m. at U.S. Courthouse, 600 E. Monroe
St., Room 232, Springfield, IL 62701 is the hearing on final
approval of the Disclosure Statement.
A copy of the order dated Feb. 6, 2020, is available at
https://tinyurl.com/rx4bupd from PacerMonitor at no charge.
About Brethren Home of Girard, Illinois
Brethren Home of Girard, Illinois --http://pleasanthillvillage.org/
-- owns an independent and assisted living facility known as
Pleasant Hill Residence, which houses 48 apartments. Brethren Home
is a non-profit organization founded in 1905 as a ministry of the
Church of the Brethren.
Brethren Home sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Ill. Case No. 19-70990) on July 10, 2019. In the
petition signed by its president, Allen Krall, the Debtor disclosed
assets in the amount of $6,513,700 and debts in the amount of
$4,144,550.
Judge Mary P. Gorman oversees the case.
The Debtor is represented by R. Stephen Scott, Esq., at Scott &
Scott, P.C.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
On Sept. 10, 2019, the Court appointed Hilco Real Estate Auctions,
LLC, as real estate consultants and advisors to the Debtor.
CBAK ENERGY: Enters Into Exchange Agreement with Atlas Sciences
---------------------------------------------------------------
CBAK Energy Technology, Inc. entered into an exchange agreement
with Atlas Sciences, LLC, pursuant to which the Company and the
Lender agreed to (i) partition a new promissory note in the
original principal amount equal to $100,000 from the outstanding
balance of certain promissory note that the Company issued to the
Lender on July 24, 2019, which has an original principal amount of
$1,395,000, and (ii) exchange the Partitioned Promissory Note for
the issuance of 207,641 shares of the Company's common stock, par
value $0.001 per share to the Lender. According to the Exchange
Agreement, the Shares are required to be delivered to the Lender on
or before Feb. 25, 2020 and the exchange will occur upon the
Lender's surrender of the Partitioned Promissory Note to the
Company on the date when the Shares are eligible for free trading.
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn/-- is engaged in the
business of developing, manufacturing and selling new energy high
power lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of $1.95 million for the year ended
Dec. 31, 2018, compared with a net loss of $21.46 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, CBAK Energy had
$110.40 million in total assets, $98.90 million in total
liabilities, and $11.50 million in total equity.
Centurion ZD CPA & Co., in Hong Kong, China, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated April 16, 2019, on the Company's consolidated financial
statements for the year ended Dec. 31, 2018, citing that the
Company has a working capital deficiency, accumulated deficit from
recurring net losses and significant short-term debt obligations
maturing in less than one year as of Dec. 31, 2018. All these
factors raise substantial doubt about its ability to continue as a
going concern.
CBAK ENERGY: Falls Short of Nasdaq Minimum Bid Price Requirement
----------------------------------------------------------------
CBAK Engery Technology, Inc. received on Feb. 20, 2020, notice from
the Listing Qualifications Department of The NASDAQ Stock Market
indicating that, for the last 30 consecutive business days, the bid
price for the Company's common stock had closed below the minimum
$1.00 per share and as a result, the Company is no longer in
compliance with the NASDAQ Listing Rule 5550(a)(2). The
notification letter states that the Company will be afforded 180
calendar days, or until Aug. 18, 2020, to regain compliance with
the minimum bid price requirement. In order to regain compliance,
shares of the Company's common stock must maintain a minimum
closing bid price of at least $1.00 per share for a minimum of ten
consecutive business days. In the event the Company does not
regain compliance with the minimum closing bid price requirement by
Aug. 18, 2020, Nasdaq may provide the Company an additional 180-day
period to regain compliance, if the Company meets the continued
listing requirement for market value of publicly held shares and
all other initial listing standards for The Nasdaq Capital Market,
with the exception of the bid price requirement, and will need to
provide written notice of its intention to cure the deficiency
during the second compliance period, by effecting a reverse stock
split, if necessary. However, if Nasdaq determines that the Company
will not be able to cure the deficiency, or if the Company is
otherwise not eligible, Nasdaq will notify the Company that its
securities will be subject to delisting.
The notice has no immediate effect on the listing of the Company's
common stock at this time. The Company intends to actively monitor
the bid price for its common stock between now and Aug. 18, 2020,
and will consider all available options to resolve the deficiency
and regain compliance with the NASDAQ minimum bid price
requirement.
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn/-- is engaged in the
business of developing, manufacturing and selling new energy high
power lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of $1.95 million for the year ended
Dec. 31, 2018, compared with a net loss of $21.46 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, CBAK Energy had
$110.40 million in total assets, $98.90 million in total
liabilities, and $11.50 million in total equity.
Centurion ZD CPA & Co., in Hong Kong, China, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated April 16, 2019, on the Company's consolidated financial
statements for the year ended Dec. 31, 2018, citing that the
Company has a working capital deficiency, accumulated deficit from
recurring net losses and significant short-term debt obligations
maturing in less than one year as of Dec. 31, 2018. All these
factors raise substantial doubt about its ability to continue as a
going concern.
CENTER CITY HEALTHCARE: Medline Leaves Creditors' Committee
-----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 announced that Medline
Industries, Inc. resigned from the official committee of unsecured
creditors appointed in the Chapter 11 cases of Center City
Healthcare, LLC. and its affiliates effective Feb. 20.
The six remaining committee members are Conifer Revenue Cycle
Solutions LLC, Veolia Energy Philadelphia Inc., Medtronic USA Inc.,
Crothall Healthcare Inc., Global Neurosciences Institute LLC, and
Pennsylvania Association of Staff Nurses and Allied Professionals.
About Center City Healthcare
d/b/a Hahnemann University Hospital
Center City Healthcare, LLC, is a Delaware limited liability
company that operates Hahnemann University Hospital. Its parent
company is Philadelphia Academic Health System, LLC, which is also
the parent company of St. Christopher's Healthcare, LLC and its
affiliated physician groups.
Center City Healthcare and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
19-11466) on June 30, 2019. At the time of the filing, the Debtors
were estimated to have assets of between $100 million and $500
million and liabilities of the same range. The cases are assigned
to Judge Kevin Gross.
The Debtors tapped Saul Ewing Arnstein & Lehr LLP as legal counsel;
EisnerAmper LLP as restructuring advisor; SSG Advisors, LLC as
investment banker; and Omni Management Group, Inc., as claims and
noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on July 15, 2019. The committee tapped Fox Rothschild
LLP as legal counsel; Sills Cummis & Gross P.C. as co-counsel; and
Berkeley Research Group, LLC as financial advisor.
Suzanne Koenig has been appointed as the patient care ombudsman.
CENTRAL SECURITY: Moody's Cuts CFR to Caa2 & Alters Outlook to Neg.
-------------------------------------------------------------------
Moody's Investors Service downgraded Central Security Group, Inc.'s
corporate family rating to Caa2, from B3, its probability of
default rating to Caa3-PD, from B3-PD, and the instrument ratings
on the residential alarm monitor's first- and second-lien debt to
Caa1 and Ca, respectively, from B3 and Caa2. The outlook is
negative.
Downgrades:
Issuer: Central Security Group, Inc.
Corporate family rating, downgraded to Caa2, from B3
Probability of default rating, downgraded to Caa3-PD,
from B3-PD
Senior secured first-lien revolving credit facility
and term loan, downgraded to Caa1 (LGD2), from B3 (LGD3)
Senior secured second-lien term loan, downgraded to Ca
(LGD5), from Caa2 (LGD6)
Outlook, changed to negative, from stable
RATINGS RATIONALE
CSG's sharply weakened credit profile reflects the unaddressed
maturity of the residential alarm monitor's heavily used revolving
credit facility, which expires in October 2020. Even if the company
is able to extend its revolver by one year, it faces the larger
obstacle of its $345 million term loan becoming current in October
2020. CSG's high leverage, weak free cash flow and heavy reliance
on capital markets to preserve revenue and fund growth raise the
risk of refinancing. The Caa3-PD represents Moody's view that
default risk has increased significantly. The lowered instrument
ratings reflect Moody's views on the recovery prospects for the
first- and second-lien debt.
In addition to weak liquidity, CSG's credit profile is constrained
by weakening leverage metrics, small scale that until recently had
been growing briskly, and an aggressive financial strategy that
entails tight liquidity and heavy drawings under its $50 million
revolver. Moody's expects slightly lower revenue in 2020 as CSG
pulls back on subscriber growth spending (particularly through
third-party dealers). Its assessment considers persistently high
leverage resulting from incremental borrowings needed to support
subscriber growth. CSG's debt-to-recurring monthly revenue ("RMR")
leverage has steadily drifted up over the past several quarters,
most recently to 47 times, putting the company's refinancing
prospects at risk. Moody's also expects the company's
debt-to-pre-SAC EBITDA to increase towards 6.0 times in 2020, from
5.7 times as of September 30, 2019, while steady state free cash
flow would fall below 2.0%, from 3.0% most recently. Some support
is provided by steady and predictable revenue streams, and
industry-leading (low) attrition rates that have held between 10%
and 11%. However, like its competitors, CSG must spend a
significant amount annually to replace customers lost to attrition
and to grow incrementally (or to merely maintain a flat revenue
base), leading to substantially negative GAAP-based free cash
flow.
The ratings for CSG's debt instruments reflect both the company's
heightened probability of default, which Moody's has downgraded to
Caa3-PD, and a loss given default assessment of the individual debt
instruments. The presence of financial maintenance covenants
increases the chances of a nearer term default, which would help
preserve some enterprise value, and as such the first-lien debt has
not been downgraded as sharply as other ratings. All debt at CSG is
senior secured bank debt.
CSG faces pronounced corporate governance risks, primarily in the
form of an aggressive financial strategy. It has operated under
high debt leverage and strained liquidity, and has been heavily
reliant on debt capital markets for supporting growth. The risks of
this strategy have challenged the company's ability to refinance
its revolving credit facility, which expires in October 2020.
The negative outlook reflects uncertainty surrounding CSG's ability
to refinance its debt capital structure, and Moody's expectation
that, in a default scenario, recovery could diminish further. The
outlook also takes into account Moody's expectation that CSG's
revenues will decline this year, as the company scales back growth
spending to conserve liquidity. Moody's anticipates little to no
improvement in debt-to-RMR leverage, debt-to-pre-SAC EBITDA, or
free-cash-flow to debt. Steady-state-free-cash-flow would be
minimally positive.
A ratings upgrade could be prompted if CSG successfully addresses
its impending revolver expiration and its first-lien term loan,
which becomes current in October 2020. An adequate liquidity
profile would also be a condition for considering a ratings
upgrade.
The ratings could be downgraded if Moody's anticipates CSG will not
be able to refinance its near-term debt, and expectations for
recovery in a default scenario decline further.
Central Security Group provides alarm monitoring services to
roughly 217,000 primarily residential customers in most sections of
the Sunbelt US. The company has been owned by private equity
sponsor Summit Partners since late 2010. Moody's expects the
company to generate 2020 revenues of about $110 million, down
slightly from anticipated 2019 full-year revenues.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
CONTINENTAL CAST: Committee Seeks to Hire Sader Law Firm as Counsel
-------------------------------------------------------------------
The official unsecured creditors' committee of Continental Cast
Stone, LLC and Maglicon, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Kansas to hire The Sader Law
Firm as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
(a) advise the committee regarding its rights and obligations
and other matters of bankruptcy law;
(b) represent the committee at hearings on approval of a plan
of reorganization and disclosure statement and related hearings;
and
(c) represent the committee in adversary proceedings and other
contested matters.
The hourly rates are:
Bradley McCormack $325
Paralegal $100
Sader Law Firm does not and will not represent any entity having an
adverse interest in connection with the Debtor's case, according to
court filings.
The firm can be reached through:
Bradley D. McCormack, Esq.
The Sader Law Firm
2345 Grand Boulevard, Suite 2150
Kansas City, MO 64108
Phone: 816-561-1818
Direct: 816-595-1802
Fax: 816-561-0818
Email: bmccormack@saderlawfirm.com
About Continental Cast Stone, LLC
and Maglicon, LLC
Continental Cast Stone -- http://www.continentalcaststone.com/--
which conducts business under the name CCSM Acquisition LLC, was
established in 1986. It is a manufacturer of cast stone and has
offices in Kansas, South Carolina, Chicago, and California.
Continental Cast Stone's affiliate Maglicon, LLC owns and leases to
the company the land on which it operates the manufacturing
facility in Kansas.
Continental Cast and Maglicon filed Chapter 11 bankruptcy petitions
(Bankr. D. Kan. Lead Case No. 19-21752) on Aug. 20, 2019. In the
petitions signed by Bryan Hinkle, member, Continental Cast and
Maglicon each was estimated to have assets and liabilities at $1
million to $10 million. Judge Robert D. Berger oversees the cases.
Mann Conroy, LLC is the Debtors' legal counsel.
COSI INC: Files Chapter 11 Petition to Complete Transformation
--------------------------------------------------------------
Cosi, Inc., the fast casual restaurant company that was founded in
1998 and which operates in multiple states and abroad through both
company and franchised locations, on Feb. 24 disclosed that it
commenced a restructuring of its operations by closing thirty of
its stores in December, 2019 and increasing its emphasis on
catering, all to better align with current customer dining trends,
further improve guest experiences and enhance its financial
performance. 2020 has started well with increased sales in open
in-store dining restaurants as well as the catering business. In
order to complete its transformation, which involves the shedding
of certain legacy costs, further business streamlining and,
possibly, select location moves, Cosi has filed for reorganization
under Chapter 11 of the Bankruptcy Code. Cosi expects to emerge
from Chapter 11 as a stronger version of itself, with a greater
focus on its burgeoning catering business. Cosi has retained a
chief restructuring officer, Jason F. Fensterstock, to assist with
the development and implementation of its business plan and the
associated cost cutting and initiatives which are well underway and
include the opening of several new locations in the first half of
2020.
About Cosi
Cosi -- http://www.getcosi.com-- is an international fast-casual
restaurant. Cosi is recognized for its signature flatbread made
from a generations-old recipe and a part of many Cosi favorites.
Così offerings include breakfast, lunch, dinner, snacks and other
desserts and catering.
Menu items are made using fresh ingredients and distinctive sauces
and spreads to create "craveable" dishes. The Cosi menu features
made-to-order sandwiches, hand-tossed salads, melts, bowls, soups,
bagels, breakfast sandwiches and other breakfast products,
flatbread pizzas, snacks and desserts. Guests can also enjoy
handcrafted beverages, coffee and coffee-based-based and a variety
of other beverages. Cosi offers a diverse catering menu that
includes the restaurant favorites and specialty offerings.
Così [(R)] restaurants are located in urban and suburban settings,
traditional and non-traditional locations, including retail spaces,
office buildings, universities, hospitals, and more, and are
designed to be welcoming and comfortable with an eclectic
environment, based on the original Così(R) restaurant still
operating in Paris, France. Così(R) partners create a welcoming
environment where guests are invited to relax and enjoy great
food.
"Così," "(Sun & Moon Design)" and related marks are registered
trademarks of Così, Inc. in the U.S.A. and certain other
countries.
COUNTRY MORNING FARMS: Cash Collateral Use Extended Thru March 31
-----------------------------------------------------------------
Judge Frederick P. Corbit of the U.S. Bankruptcy Court for the
Eastern District of Washington authorized Country Morning Farm,
Inc., to use cash collateral consistent with the Extended Cash
Collateral Budget, which spans the period from the week of Feb. 11
to the week of March 31, 2020, subject to the terms of the final
cash collateral order entered Jan. 24.
The Debtor may prepay or make advance deposits to vendors towards
expenditures in the Extended Cash Collateral Budget for up to
$5,000 monthly.
Bank of the West, and any other party holding a valid, perfected,
unavoidable security interest or lien in the Cash Collateral, is
granted a valid, automatically perfected replacement lien against
any post-petition accounts receivable (or proceeds thereof) of
Debtors. The replacement liens will have the same validity and
priority as the security interests and liens existing against the
Cash Collateral as of Debtors' bankruptcy petition date.
A copy of the Order is available at https://is.gd/akxCc7 from
PacerMonitor.com free of charge.
About Country Morning Farms
Country Morning Farms, Inc., is a privately held company in the
cattle ranching and farming business. Country Morning Farms grows
its own feeds, milk its own cows, and delivers fresh dairy products
to its customers.
Country Morning Farms filed a Chapter 11 petition (Bankr. E.D.
Wash. Case No. 19-00478) on March 1, 2019. The petition was signed
by Robert Gilbert, vice president. The case is assigned to Judge
Frederick P. Corbit. The Debtor is represented by siam L. Hames,
Esq. at Hames, Anderson, Whitlow & O'Leary. At the time of filing,
the Debtor disclosed $6,421,269 in assets and $10,586,970 in
liabilities.
Gregory Garvin, acting U.S. Trustee for Region 18, on April 2,
2019, appointed two creditors to serve on an official committee of
unsecured creditors.
DAVID W. AINSWORTH: Burck Buying Robstown Property for $110K
------------------------------------------------------------
David W. Ainsworth, Sr., asks the U.S. Bankruptcy Court for the
Southern District of Texas to authorize the sale of the real
property located on Chaparosa Street, Robstown, Nueces County,
Texas, more specifically described as all of the land consisting of
Lot 3 of Block 2 of the Ainsworth Industrial Park subdivision
outside of the City of Robstown and as recorded on the Map Records
of Nueces County, Texas, to Steve Burck and/or assigns for
$110,000.
Objections, if any, must be filed within 21 days of the date the
Motion was served.
The Real Property is owned by Ainsworth Industrial Park, LLC, a
corporation owned 100% by the Debtor.
The sale will be on a "where is, as is basis," with no warranty or
guarantee being provided. The parties have executed their
Commercial Contract - Unimproved Property. All taxes asserted by
Nueces County against the Real Property will be paid from sale
proceeds at time of closing. The remaining cash proceeds will be
deposited in a separate cash collateral account, with all liens and
claims attaching to the proceeds in the same priority as existed in
the real estate, to be distributed according to the Debtor's plan
of reorganization, which is currently being negotiated.
The Debtor is unaware of any competing offers. The Real Property
has been listed for a long time with no other viable offers. The
Debtor believes the proposed purchase price is fair and adequate
consideration and that approving the sale is in the best interests
of the Debtor, his estate, and his creditors.
The Debtor's listing agent Lynann Pinkham at Cravey Real Estate
Services, Inc. and the Buyer's agent, Josh Gaines at The Gains
Organization, Inc. have agreed to split the 6% sales commission.
The Seller is paying for the title policy.
Prosperity Bank and DeBella Tierra, LLC assert liens and claims
against the Real Property. After payment of closing costs and ad
valorem taxes, remaining proceeds will be placed in a separate cash
collateral account with liens and claims attaching thereto in the
same priority as existed in the Real Property.
Pursuant to the Motion, the Debtor asks that the Real Property be
sold to the Buyer free and clear of all liens, claims, interests,
and encumbrances, with all such liens, claims, interests, and
encumbrances attaching to the proceeds.
The Debtor asks that the Order be effective immediately by
providing that the 14-day stay is inapplicable and waived, so that
they may proceed as expeditiously as possible with the sale.
A copy of the Agreement is available at https://tinyurl.com/tv2ngjm
from PacerMonitor.com free of charge.
David W. Ainsworth, Sr. sought Chapter 11 protection (Bankr. S.D.
Tex. Case No. 17-20418) on Oct. 2, 2017. The Debtor tapped
Nathaniel Peter Holzer, Esq., at Jordan Hyden Womble Culbreth &
Holzer PC, as counsel.
DEPENDABLE BUILDING: Wants March 2 to File Plan & Disclosure
------------------------------------------------------------
Debtor Dependable Building Services, Inc., moves the Bankruptcy
Court for entry of a second order extending the time for the Debtor
to file its plan of reorganization and disclosure statement.
On Jan. 9, 2020, an order was entered extending the time for the
Debtor to file its Plan and Disclosure Statement on or before Feb.
11, 2020, and setting a status on the Plan and Disclosure Statement
on March 3, 2020.
The Debtor's counsel will be on vacation from Feb. 12, 2020,
through Feb. 23, 2020. Unfortunately, due to some matters which
recently arose on an emergency basis for another case, the Plan and
Disclosure Statement could not be completed in time for filing on
Feb. 11, 2020.
The Debtor requests a short extension to and including March 2,
2020, for the filing of its Plan and Disclosure Statement.
A full-text copy of the motion dated Feb. 11, 2020, is available at
https://tinyurl.com/tao6dcg from PacerMonitor at no charge.
The Debtor is represented by:
Joel A. Schechter
53 West Jackson Blvd., Suite 1522
Chicago, IL 60604
Tel: (312) 332-0267
About Dependable Building Services
Founded in 1992, Dependable Building Services, Inc. --
http://www.dependablebuildingservices.com/-- is a commercial
contractor that performs HVAC, electrical, fire suppression, and
generator service and construction. It serves commercial, retail,
industrial and telecom industries.
Dependable Building Services previously filed a Chapter 11 petition
(Bankr. N.D. Ill. Case No. 17-24129) on Aug. 11, 2017.
Dependable Building Services again sought protection under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 19-19772) on
July 15, 2019. At the time of the filing, the Debtor was estimated
to have assets of between $100,000 and $500,000 and liabilities of
between $1 million and $10 million. The case is assigned to Judge
Deborah L. Thorne. The Law Offices of Joel A. Schechter is the
Debtor's counsel.
DETROIT, MI: Moody's Alters Outlook on Ba3 Tax Debt Rating to Pos.
------------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 rating on the City of
Detroit, MI's outstanding general obligation unlimited tax debt.
Moody's has withdrawn the city's Issuer Rating because Moody's now
rates the city's GOULT debt. The outlook has been revised to
positive from stable. The rating and outlook apply to $135 million
of GO debt.
RATINGS RATIONALE
The Ba3 rating balances the city's robust reserves and strong
financial planning practices with its weak property tax base,
significant leverage and substantial resource demands including the
need for further capital investments. Continued revenue increases
will be key to accommodating future cost growth, the drivers of
which will include not only scheduled pension contributions, but
also expenditures to sustain improved city services and the
repayment of capital investment debt. The rating also considers
Detroit's vulnerability to an economic downturn given its economic
dependence on the automotive industry and limited ability to raise
revenue to offset volatility.
Governance is a materially positive consideration in the rating.
Detroit remains subject to a mechanism for state oversight and
employs a formalized revenue setting and budgeting process that
includes representatives not tied to the city. Social
considerations are also material. The city has been able to improve
its provision of basic city services to a population that is
primarily low income. However, it has limited ability to impact the
provision of educational services that remain challenged under an
independently-governed school district.
RATING OUTLOOK
The revision of the outlook to positive reflects the improving
though still tenuous capacity of the city's budget to finance
service improvements, capital investments and accommodate a large
spike in pension contributions. The rating could move upward if the
city continues to make progress towards being fully prepared for a
large increase in costs four years from now. The outlook also
considers a favorable trend in job growth and its impact on the
city's tax base and tax collections.
FACTORS THAT COULD LEAD TO AN UPGRADE
- Strengthening of pension funding contribution practices
sufficient to halt the growth in unfunded liabilities, or
demonstrated capacity to make such payments
- Revenue, tax base and employment growth that demonstrates
capacity of the tax base to support service and capital needs
of both the city and school district
- Moderation of the city's pension and debt liabilities relative
to both revenues and the tax base
FACTORS THAT COULD LEAD TO A DOWNGRADE (or revision of outlook)
- Inability to sustain progress towards meeting future increases
in pension contributions
- Material growth in leverage, fixed costs or capital needs, or
draws on operating reserves that leave inadequate fund
balances to mitigate current and future challenges
- Negative changes in the city's economic profile, such as
significant job losses or a higher rate of depopulation,
that weaken the prospects of sustained revenue growth
LEGAL SECURITY
Rated GOULT bonds are full faith and credit general obligations
secured by the city's pledge to levy property taxes without
limitation as to rate or amount as authorized by voters.
PROFILE
With a current estimated population (based on the American
Community Survey) of just under 680,000, Detroit is the 23rd
largest city in the US and the largest city in Michigan (Aa1
stable). The city emerged from bankruptcy in 2014.
METHODOLOGY
The principal methodology used in this rating was US Local
Government General Obligation Debt published in September 2019.
DGI TRADING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: DGI Trading USA, Inc.
326 Main Street
Carrolton, KY 41008
Business Description: DGI Trading USA, Inc. --
http://www.dgitradingusa.com/--
is a supplier of wholesale construction &
mining equipment & parts.
Chapter 11 Petition Date: February 26, 2020
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 20-50418
Judge: Hon. Ronald B. King
Debtor's Counsel: Raymond W. Battaglia, Esq.
LAW OFFICES OF RAY BATTAGLIA, PLLC
66 Granburg Circle
San Antonio, TX 78218
Tel: (210) 601-9405
E-mail: rbattaglialaw@outlook.com
Total Assets as of Feb. 24, 2020: $5,036,815
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ryan Spann, president.
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/KS723N
DIEFENDERFER FAMILY: Proposes Full-Payment Plan
-----------------------------------------------
Debtor Diefenderfer Family Holdings, LLC, filed with the U.S.
Bankruptcy Court for the Eastern District of Michigan, Detroit, a
Combined Plan and Disclosure Statement on Feb. 4, 2020.
The sale of 22221 Gratiot closed on Jan. 24, 2020, with the Debtor
netting $52,206.13, after closing costs, commissions, water escrow,
and title policy. Huntington National Bank was paid $29,630 to
satisfy said Bank's mortgage in 22221 Gratiot, and Macomb County
Treasurer was paid $14,608 to satisfy the tax lien on 22221
Gratiot. The Debtor intends to pay the City of Eastpointe $14,268
in 2019 property taxes on or before March 3, 2020, as tax payment
in the ordinary course of business.
The Combined Plan and Disclosure indicate that there are no
unsecured creditors. There are only two classes of claims: Class 1
The Huntington National Bank's $24,704 secured claim, and Class 2
Macomb County Treasurer's secured claim of $21,806. The two
classes are not impaired under the Plan.
The Debtor will continue to maintain and rent properties during and
after the implementation of the Plan.
As of the petition date, Debtor had one tenant in 22235 Gratiot
that paid $1000 monthly, and one signed, but not yet occupying,
22215 Gratiot at the agreed monthly rental of $1,400. The proposed
tenant for 22215 Gratiot had difficulty obtaining permission for
its use (landscaping maintenance company), but received zoning use
approval and occupied 22215 Gratiot on February 1, 2020.
A full-text copy of the Combined Plan and Disclosure Statement
dated February 4, 2020, is available at https://tinyurl.com/sefrx5l
from PacerMonitor at no charge.
The Debtor is represented by:
Don Darnell P55268
8080 Grand St., Ste. A
Dexter, Michigan 48130
Tel: 734-424-5200
E-mail: dondarnell@darnell-law.com
About Diefendefer Family Holdings
Diefendefer Family Holdings, LLC, sought protection under Chapter
11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 19-54007) on
Oct. 1, 2019. At the time of the filing, the Debtor was estimated
to have assets of between $100,001 and $500,000 and liabilities of
the same range. Judge Maria L. Oxholm oversees the case. Don
Darnell, Esq., is the Debtor's bankruptcy attorney.
DN ENTERPRISES: Doksane Buying Omaha Property for $79.5K
--------------------------------------------------------
DN Enterprises, Inc., asks the U.S. Bankruptcy Court for the
District of Nebraska to authorize the sale of its investment
property located at 3457 Maple Street, Omaha, Nebraska, to Doksane,
LLC for $79,500.
The Debtor is an owner of approximately 35 residential investment
properties located across Omaha, Nebraska, that it offers for rent
to the general public. Its operations date back to the mid-2000's.
The Debtor is owned by Gilbert Navarro. In 2018, Mr. Navarro filed
for divorce from his spouse, Christina Navarro. At the time of the
Divorce, Mr. Navarro was incarcerated in a federal penitentiary
pursuant to a plea bargain entered in a federal criminal case
involving Mr. Navarro and several other individuals. During Mr.
Navarro's incarceration, the Debtor was operated by Mr. Navarro's
brother, Robert Navarro.
During the early part of Mr. Navarro's divorce proceeding, Mrs.
Navarro and Robert Navarro (empowered by a power of attorney for
Mr. Navarro) agreed to have Maxim Realty Group, LLC as a receiver /
property manager for the Debtor's properties. Following his early
release from prison in 2018, Mr. Navarro desired to retake control
of the Debtor from Maxim, under whose management the Debtor's
operations suffered. In addition to the temporary loss of control
of the Debtor's operations, First State Bank initiated non-judicial
foreclosures of its properties. These events lead to the filing of
the case.
On Nov. 1, 2018, following a joint or unopposed motion to terminate
the receivership, the District Court for Douglas County entered an
order terminating Maxim's role as receiver of the Debtor's
properties. Thereafter, Mr. Navarro retook control of the Debtor's
operations and have begun the process of preparing unrented
properties for rent. The Debtor has worked diligently restore its
operations to its former income producing potential. To that end,
it has renovated and rented numerous vacant homes, thus increasing
its value and income.
As part of the Debtor's overall reorganization plan, it intends to
sell several its investment properties for the purpose of reducing
its debts. To that end, it sought and obtained the employment of
Colleen Mason and P.J. Morgan Real Estate Group as its Real Estate
Broker in June of 2019. The Debtor desires to sell the Property
described pursuant to the terms of the Purchase Agreement. It has
conferred with its Real Estate Broker and submits that the Purchase
Agreement represents a fair market purchase price for the Property.
The terms of the sale are incorporated into the Purchase Agreement.
The Buyer has agreed to pay the Debtor the sum of $79,500 for the
Property. According to the Douglas County assessor, the Properties
are appraised at, in the aggregate, $68,100. The Debtor can
project that there will be closing costs, real estate commissions,
and other administrative expense claims associated with the Sale of
the Properties and its bankruptcy case.
At this time, and by the Motion, the Debtor asks approval and
authority to deduct from the gross proceeds received by the estate
at closing: (i) its share of necessary closing costs; (ii) the Real
Estate Broker's commission and fees pursuant to its listing
agreement; and (iii) the sum of $2,500 for administrative expenses
incurred or to be incurred by the estate. The balance of the
proceeds received by the Debtor will be paid to First State Bank,
as first lien holder, to reduce the principal balance of its
outstanding obligations owed to the bank. At this time Debtor
cannot reasonably determine the amount of taxable income the Debtor
may realize from the Sale. However, it is possible that it will
incur taxable income as a result of the Sale.
The Debtor obtained limited title reports on the Properties from
Nebraska Title Co. The report indicates the following liens or
notices of record:
a. 3457 Maple Street, Omaha NE 68111:
i. Multiple Deeds of Trust and Assignments of Rent in
favor of First State Bank;
ii. Judgment entered in Douglas County Court on Nov. 14,
2016, captioned Martin Cordoba and Holly Cordoba, Plaintiff -vs- DN
Enterprise, Inc., Defendant, in Case CI-16-9444; transcribed to the
District Court of Douglas County, Nebraska on Oct. 17, 2017 in Case
No. CI -17-8877; and
iii. Case No. CI-18-10251 in the District Court of
Douglas County, Nebraska captioned Patricia Daniels, Plaintiff -vs-
Robert Navarro and DN Enterprises Inc., Defendant. Case Pending.
The Debtor asks authority to convey the Properties to the Buyer
free and clear of all liens, claims, interests, and encumbrances.
In order to permit the Sale to proceed as expeditiously as possible
and to avoid further degradation or loss of value to the Property,
good cause exists to waive the 14-day stay provided in Rule
6004(h).
A copy of the Agreement is available at https://tinyurl.com/rg5lzwn
from PacerMonitor.com free of charge.
About DN Enterprises
DN Enterprises, Inc., owns and operates approximately 35
residential properties as rental investments. DN Enterprises
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Case No. 18-81526) on Oct. 20, 2018. At the time of the
filing, the Debtor estimated assets of $1 million to $10 million
and liabilities of $1 million to $10 million. The case is assigned
to Judge Thomas L. Saladino. Dvorak Law Group, LLC, is the
Debtor's counsel.
DN ENTERPRISES: Guillen Buying 2 Omaha Properties for $123K
-----------------------------------------------------------
DN Enterprises, Inc., asks the U.S. Bankruptcy Court for the
District of Nebraska to authorize the sale of its investment
properties located at 5407 S. 50th Street Ave, Omaha, Nebraska,
which encompasses and includes 5007 South S. Street, Omaha,
Nebraska, to Sonia Escalante Guillen for $122,500.
The Debtor is an owner of approximately 35 residential investment
properties located across Omaha, Nebraska, that it offers for rent
to the general public. Its operations date back to the mid-2000's.
The Debtor is owned by Gilbert Navarro. In 2018, Mr. Navarro filed
for divorce from his spouse, Christina Navarro. At the time of the
Divorce, Mr. Navarro was incarcerated in a federal penitentiary
pursuant to a plea bargain entered in a federal criminal case
involving Mr. Navarro and several other individuals. During Mr.
Navarro's incarceration, the Debtor was operated by Mr. Navarro's
brother, Robert Navarro.
During the early part of Mr. Navarro's divorce proceeding, Mrs.
Navarro and Robert Navarro (empowered by a power of attorney for
Mr. Navarro) agreed to have Maxim Realty Group, LLC as a receiver /
property manager for the Debtor's properties. Following his early
release from prison in 2018, Mr. Navarro desired to retake control
of the Debtor from Maxim, under whose management the Debtor's
operations suffered. In addition to the temporary loss of control
of the Debtor's operations, First State Bank initiated non-judicial
foreclosures of its properties. These events lead to the filing of
the case.
On Nov. 1, 2018, following a joint or unopposed motion to terminate
the receivership, the District Court for Douglas County entered an
order terminating Maxim's role as receiver of the Debtor's
properties. Thereafter, Mr. Navarro retook control ofthe Debtor's
operations and have begun the process of preparing unrented
properties for rent. The Debtor has worked diligently restore its
operations to its former income producing potential. To that end,
it has renovated and rented numerous vacant homes, thus increasing
its value and income.
As part of the Debtor's overall reorganization plan, it intends to
sell several its investment properties for the purpose of reducing
its debts. To that end, it sought and obtained the employment of
Colleen Mason and P.J. Morgan Real Estate Group as its Real Estate
Broker in June of 2019. The Debtor desires to sell the Properties
described pursuant to the terms of the Purchase Agreement. It has
conferred with its Real Estate Broker and submits that the Purchase
Agreement represents a fair market purchase price for the
properties.
The terms of the sale are incorporated into the Purchase Agreement.
The Buyer has agreed to pay Debtor the sum of $122,500 for the
Properties. According to the Douglas County assessor, the
Properties are appraised at, in the aggregate, $107,500. The
Debtor can project that there will be closing costs, real estate
commissions, and other administrative expense claims associated
with the Sale of the Properties and its bankruptcy case.
At this time, and by the Motion, the Debtor asks approval and
authority to deduct from the gross proceeds received by the estate
at closing: (i) its share of necessary closing costs; (ii) the Real
Estate Broker's commission and fees pursuant to its listing
agreement; and (iii) the sum of $2,500 for administrative expenses
incurred or to be incurred by the estate. The balance of the
proceeds received by the Debtor will be paid to First State Bank,
as first lien holder, to reduce the principal balance of its
outstanding obligations owed to the bank. At this time Debtor
cannot reasonably determine the amount of taxable income the Debtor
may realize from the Sale. However, it is possible that it will
incur taxable income as a result of the Sale.
The Debtor obtained limited title reports on the Properties from
Nebraska Title Co. The report indicates the following liens or
notices of record:
a. 5407 S. 50th Street Ave, Omaha, NE 68117:
i. Multiple Deeds of Trust and Assignments of Rent in
favor of First State Bank;
ii. Judgment entered in Douglas County Court on November
14, 2016, captioned
Martin Cordoba and Holly Cordoba, Plaintiff -vs- DN Enterprise,
Inc. Defendant, in Case CI-16-9444; transcribed to the District
Court of Douglas
County, Nebraska on October 17, 2017 in Case No. CI -17-8877; and
iii. Case No. CI-18-10251 in the District Court of
Douglas County, Nebraska
captioned Patricia Daniels, Plaintiff -vs- Robert Navarro and DN
Enterprises
Inc, Defendant. Case Pending.
iv. Tree Removal Assessment levied April 4, 2017, as File
Seq #04203 01, in the
sum of $302.45, together with interest thereon.
b. 5007 South S. Street, Omaha, NE 68117:
i. Multiple Deeds of Trust and Assignments of Rent in
favor of First State Bank;
ii. Judgment entered in Douglas County Court on November
14, 2016, captioned
Martin Cordoba and Holly Cordoba, Plaintiff -vs- DN Enterprise,
Inc.,
Defendant, in Case CI-16-9444; transcribed to the District Court of
Douglas
County, Nebraska on October 17, 2017 in Case No. CI -17-8877; and
iii. Case No. CI-18-10251 in the District Court of
Douglas County, Nebraska
captioned Patricia Daniels, Plaintiff -vs- Robert Navarro and DN
Enterprises
Inc, Defendant. Case Pending.
The Debtor asks authority to convey the Properties to the Buyer
free and clear of all liens, claims, interests, and encumbrances.
In order to permit the Sale to proceed as expeditiously as possible
and to avoid further degradation or loss of value to the
Properties, good cause exists to waive the 14-day stay provided in
Rule 6004(h).
A copy of the Agreement is available at https://tinyurl.com/wetc52g
from PacerMonitor.com free of charge.
About DN Enterprises Inc.
DN Enterprises, Inc., owns and operates approximately 35
residential properties as rental investments. DN Enterprises
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Case No. 18-81526) on Oct. 20, 2018. At the time of the
filing, the Debtor estimated assets of $1 million to $10 million
and liabilities of $1 million to $10 million. The case is assigned
to Judge Thomas L. Saladino. Dvorak Law Group, LLC, is the
Debtor's counsel.
E MECHANIC PLUS: Allowed to Use Flagg Financial Cash Collateral
---------------------------------------------------------------
Judge Michael G. Williamson of the U.S. Bankruptcy Court for the
Middle District of Florida authorized E Mechanic Plus, Inc. to use
the cash collateral of Flagg Financial Services, Inc., until
further order of the Court.
The Debtor may 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 Flagg Financial. The approved budget covers the period
through May 31, 2020.
The Debtor must tender monthly adequate protection payments of
$2,098.16 to Flagg Financial. In addition, the Debtor will grant
Flagg Financial 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.
Moreover, the Debtor will grant Flagg Financial 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 Flagg
Financial.
About E Mechanic Plus
Based in Tampa, Fla., E Mechanic Plus Inc. filed a Chapter 11
petition (Bankr. M.D. Fla. Case No. 19-10891) on Nov. 15, 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.
EATING RECOVERY: Moody's Lowers CFR to Caa1, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service downgraded the ratings of ERC Finance,
LLC, the parent company of Eating Recovery Center, LLC, including
the Corporate Family Rating to Caa1 from B3, the Probability of
Default Rating to Caa1-PD from B3-PD, and the senior secured
first-lien credit facility ratings to B3 from B2. The outlook was
changed to stable from negative.
"The downgrades reflect Moody's expectation that ERC will remain
free cash flow negative over the next 12-18 months, resulting in
weak liquidity and the likely need to increase debt to fund the
company's facility expansions and upgrades," said Vladimir Ronin,
Moody's lead analyst. "In addition, the aggressive growth in bed
adds further execution risk," added Ronin.
Moody's took the following rating actions on ERC Finance, LLC.:
Downgrades:
Corporate Family Rating, to Caa1 from B3
Probability of Default Rating, to Caa1-PD from B3-PD
Senior Secured First Lien Revolving Credit Facility, to
B3 (LGD3) from B2 (LGD3)
Senior Secured First Lien Term Loan, to B3 (LGD3) from B2 (LGD3)
Senior Secured First Lien Delayed Draw Term Loan, to B3 (LGD3)
from B2 (LGD3)
Outlook Actions:
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
ERC's Caa1 CFR reflects its continued very high financial leverage
with pro forma adjusted debt/EBITDA of 8.8x for the twelve months
ended September 30, 2019, on Moody's adjusted basis. Although ERC
has generated meaningful revenue growth, earnings growth has lagged
due to higher corporate costs, softness in capacity utilization and
delays in opening of new facilities. Elevated capital expenditures
to open new facilities and upgrade existing facilities has also
been a drain on cash flow, requiring incremental debt and
constraining liquidity. Moody's expects ERC will continue to expand
aggressively in its core eating disorders segment, as well as in
adjacent mood and anxiety disorder segment. This elevates execution
risk and will result in continued cash consumption. Further, there
is the risk that the company will fail to earn an adequate return
on its facility investments, as the aggressive growth and evolving
strategy could lead to under-utilization of facility capacity. The
credit profile is also constrained by the company's modest absolute
size and concentrated service line offering. The rating is
supported by ERC's good reputation in the eating disorder market,
good customer diversity and a largely in-network commercial payor
base. The company has an expanding national presence, although it
maintains considerable concentration in the states of Colorado,
Texas, Illinois and Washington.
As a provider of services to a fragile patient population, ERC
faces considerable social risk. Any incident, such as a patient
injury or report of inappropriate care at one of ERC's facilities,
could result in increased regulatory burden, investigations, and/or
negative publicity. With respect to governance, private equity
ownership increases the risk of shareholder friendly actions at the
expense of creditors. That said, Moody's does not expect ERC to
return cash to shareholders over the next 12-18 months.
The stable outlook reflects Moody's expectation that eventually the
company's strategy will result in meaningful earnings growth, but
that leverage will remain high given that the company will likely
continue to increase debt to fund its expansion strategy.
The ratings could be downgraded if the company's expansion strategy
fails to produce profitable revenue growth or leads to operating
disruption. Further, weakening of liquidity or sustained negative
free cash flow could lead to a downgrade.
The ratings could be upgraded if ERC materially increases its size
and scale. If the company sustains adjusted debt/EBITDA below 7.5x
and demonstrates positive free cash flow and good liquidity,
Moody's could upgrade the ratings.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Headquartered in Denver, Colorado, ERC Finance, LLC is the parent
company of Eating Recovery Center, LLC. ERC is a provider of
specialized eating disorder treatments for conditions including
anorexia, bulimia, binge eating, as well as mood and anxiety
comorbidities. The company operates 29 treatment facilities across
8 states. Services provided include acute/in-patient care,
residential, partial hospitalization, and intensive outpatient. The
company was acquired by equity sponsor CCMP Capital and management
in September 2017. For the twelve months ended September 30, 2019,
revenues were approximately $195 million.
ELITE INVESTMENT: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Elite Investment Properties, LLC.
About Elite Investment Properties
Elite Investment Properties, LLC sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 20-00135) on Jan.
6, 2020. At the time of the filing, the Debtor had estimated assets
of between $50,001 and $100,000 and liabilities of between $500,001
and $1 million. Judge Paul Sala oversees the case. The Debtor is
represented by Bankruptcy Legal Center (TM).
EMPRESA LOCAL: Wants Disclosure Hearing Continued After April 29
----------------------------------------------------------------
On Jan. 17, 2020, the U.S. Bankruptcy Court for the District of
Puerto Rico scheduled the hearing on the approval of the disclosure
statement of debtor Empresa Local Global, Inc., for April 1, 2020,
at 9:30 a.m., rescheduled on Feb. 6, 2020, for April 29, 2020, at
9:30 a.m.
The Debtor's counsel has scheduled the hearing on the confirmation
of the plan in the case of In re Ivan Rodriguez Velazquez and
Sandra I. Miranda Montañez, Case No. 18-02209 scheduled on Jan.
24, 2020.
Charles A. Cuprill-Hernandez is counsel in both cases.
The Debtor, through counsel, requests that the hearing on the
approval of Empresa's Disclosure Statement be rescheduled for any
available date after April 29,2019.
A full-text copy of the Motion dated Feb. 11, 2020, is available at
https://tinyurl.com/vnqymjk from PacerMonitor at no charge.
The Debtor is represented by:
CHARLES A. CUPRILL-HERNANDEZ
Charles A. Cuprill, P.S.C., Law Offices
356 Fortaleza Street, Second Floor
San Juan, PR 00901
Tel: 787-977-0515
Fax: 787-977-0518
E-mail: ccuprill@cuprill.com
About Empresa Local Global
Empresa Local Global, Inc., formerly known as Casas Mi Estillo, was
created in 1987 and was in the business of selling wooden
prefabricated houses in Puerto Rico.
Empresa Local Global filed for Chapter 11 bankruptcy protection
(Bankr. D.P.R. Case No. 14-06675) on Aug. 14, 2014. The case is
assigned to Judge Brian K. Tester. At the time of the filing, the
Debtor was estimated to have assets and liabilities of less than $1
million. The Debtor is represented by Charles A.
Cuprill-Hernandez, Esq., in San Juan, Puerto Rico.
EPIC CRUDE: S&P Lowers Issuer Credit Rating to 'B'
--------------------------------------------------
S&P Global Ratings lowered the issuer credit and issue-level rating
on San Antonio-based midstream energy partnership Epic Crude
Services L.P. (Epic) to 'B' from 'B+'. The recovery is '3',
indicating its expectation of meaningful (50%-70%; rounded
estimate: 60%) recovery in the event of a payment default.
Epic is issuing a $100 million add-on to its existing $1 billion
senior secured first-lien term loan B facility. Proceeds from the
issuances will fund a portion of the remaining project costs, and
pay related fees and expenses associated with the issuance.
Epic is also issuing a $75 million senior secured first-lien term
loan C facility. S&P assigned an issue-level rating of 'B'.
Proceeds from the issuance will fund a portion of the remaining
project costs, and pay related fees and expenses associated with
the issuance. The recovery is '3', indicating its expectation of
meaningful (50%-70%; rounded estimate: 60%) recovery in the event
of a payment default.
The rating action reflects the increased debt burden Epic has taken
on with the proposed $175 million of incremental debt. Epic intends
to use the $175 million of proceeds from the $100 million term loan
B add-on and the $75 million term loan C issuance to partially fund
a portion of the project's remaining construction costs and fees
associated with the issuance. This results in 2020 adjusted
leverage deteriorating to approximately 6.5x-7.0x, compared with
S&P's prior expectation of adjusted leverage of approximately 4.0x-
4.5x. S&P believes the partnership is facing a more challenging
macro environment than when the pipeline was first under
construction. Given the reduction in capital spending by producers
and lower than previously forecasted volumes out of the Permian,
S&P views there to be an overbuild of crude pipeline takeaway
capacity, and expect the partnership and its competitors to face
challenges signing additional long term volume commitments, without
cutting tariff rates. Given this macro backdrop, S&P believes the
partnership will realize slower than expected total throughput
volume growth. As a result, the rating agency has revised its
assessment of the business risk profile to vulnerable.
The negative outlook reflects S&P's expectation of elevated
leverage metrics over the next 12-24 months. The rating agency
forecasts the partnership's adjusted debt-to-EBITDA ratio to
6.5x-7.0x by year-end 2020 (nine months of operations), and
6.0x-6.25x in 2021, the first full year of operations.
"We could consider a negative ratings action on Epic if throughput
volumes are lower than our expectations or if it is unable to
secure additional long-term contracts. This could result from
producers delaying drilling efforts, and also if Epic's adjusted
debt-to-EBITDA ratio is sustained above 6.5x. Additionally, we
could consider lowering the rating if the partnership has
significant delays placing the pipeline into service, or if it
issues additional debt over the next 12 months," S&P said.
"We could consider revising the outlook to stable if the
partnership completes construction in the first quarter of 2020,
while adding additional long-term commitments to its contract
profile that are fixed-fee in nature. We could also consider
revising the outlook to stable if the partnership sweeps
significant amounts of cash against the outstanding term loan
balance, and leverage metrics improve to below 6.5x on a sustained
basis," the rating agency said.
EXPERT MEDICAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Expert Medical Group, S.C.
136 W Higgins Road
Schaumburg, IL 60196
Business Description: Expert Medical Group, S.C. owns and operates
a medical clinic in Schaumburg, IL.
Chapter 11 Petition Date: February 26, 2020
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 20-05290
Judge: Hon. Lashonda A. Hunt
Debtor's Counsel: Laxmi P. Sarathy, Esq.
LAXMI P. SARATHY
PO Box 60741
Chicago, IL 60660
Tel: 312-674-7965
E-mail: lsarathylaw@gmail.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dr. Akber Khan, principal.
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/Rvk9K7
F.A. HAUBER: Seeks to Hire David W. Steen as Legal Counsel
----------------------------------------------------------
F.A. Hauber, M.D. P.A. seeks authority from the U.S. Bankruptcy
Court for the Middle District of Florida to hire David W. Steen,
P.A. as its legal counsel.
The firm will assist the Debtor with regard to the contested issues
surrounding the confirmation of its proposed Chapter 11 plan of
reorganization and the competing plan filed by Ecker Capital, LLC.
Steen will charge $500 per hour for its services. The retainer fee
is $7,500, of which $5,783 was paid to the firm, together with the
filing fee of $1,717. The source of the funds was Frederick Hauber.
David Steen, Esq., disclosed in a court filing that no attorney in
his firm represents any interest adverse to the Debtor and its
bankruptcy estate.
The firm can be reached through:
David W. Steen, Esq.
David W. Steen, P.A.
2901 W. Busch Boulevard, Suite 311
Tampa, FL 33618
Tel No: (813) 251-3000
Email: dwsteen@dsteenpa.com
About F.A. Hauber, M.D. P.A.
Based in New Port Richey, Fla., F.A. Hauber, M.D. P.A. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
Fla. Case No. 20-00608) on Jan. 24, 2020, listing under $1 million
in both assets and liabilities. Judge Caryl E. Delano oversees the
case. David W. Steen, P.A. is the Debtor's legal counsel.
FENCEPOST PRODUCTIONS: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------------
The Office of the U.S. Trustee on Feb. 24, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of Fencepost Productions,
Inc.
About Fencepost Productions
Fencepost Productions, Inc. -- http://www.fencepostproductions.com/
-- is a designer and distributor of men's, women's, and youth
outdoor apparel under its brands Staghorn River, Willow Trails, and
Northern Outpost.
Fencepost Productions sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Kan. Case No. 19-22623) on Dec. 18,
2019. In the petition signed by Matthew Gray, president, the
Debtor was estimated to have $1 million to $10 million in assets
and $10 million to $50 million in liabilities. Judge Dale L.
Somers oversees the case. Jonathan A. Margolies, Esq., at Mcdowell
Rice Smith & Buchanan, is the Debtor's counsel.
FIORES MOTORS: Unsecureds to Get 30.1% If Class Accepts Plan
------------------------------------------------------------
Debtor Fiores Motors, LLC, has proposed a reorganization plan that
provides for Mikes Autobody, Inc., the lessor of the Debtor's
properties, to contribute funds to help the Debtor make plan
payments.
Fiores Motors, LLC, as of the bankruptcy filing, owned a 12,528
square foot commercial building and lot located 6223 Meadow Street,
Pittsburgh, PA, with adjacent parking lots and a 12,000 square foot
commercial building and lot located at 510 McDonald Street,
Pittsburgh.
With the Debtor's consent, McDonald Street was sold through a
sheriffs sale during the Chapter 11.
Class 1 (City of Pittsburgh and School District), Class 2 (First
Commonwealth Bank Mortgage), Class 3 (Small Business Administration
Mortgage, and 4 Class 4 First Commonwealth Bank Mortgage) will be
paid in full in deferred payments with interest over a 121 month
term.
Class 5 (Urban Redevelopment Authority of Pittsburgh Mortgage),
Class 6 (Penstan Supply Mechanic's lien), Class 7 (Arcon
Contracting Inc. mechanic's lien), Class 8 (First Commonwealth Bank
confessed judgment) are avoided and treated as Class 11 unsecured
claims.
Class 9 administrative claims will be paid on court approval unless
such claimant agrees to accept deferred payments.
Class 10 tax claims will be paid in full with interest in 60
payments.
Class 11 non-priority unsecured claimants shall be paid a pro rata
share of $400,000 (an approximate 30.1% distribution) or $50,000
(an approximate 3.7% distribution) depending on how Class 11 votes.
If Class 11 votes in favor of the Plan, each claimant will be paid
a pro rata share of $400,000 which is to be contributed to the
Debtor by MAB in five annual payments pursuant to a Plan
Contribution Agreement ("PCA") as follows: $32,000 in plan month
13, $44,000 in plan month 25; $56,000 in plan month 37, $68,000 in
plan month 49, and $200,000 in plan month 61. If Class 11 does not
vote in favor of the Plan and equity is sold, MAB shall pay $50,000
under the PCA in plan month 13. The contributions under the PCA
will be distributed to Class 11 claims within 15 days of receipt.
Class 12 equity interests may be sold if Class 11 does not vote to
approve the Plan.
Autobody has signed a Plan Contribution Agreement or PCA which is
part of the Plan by which it agrees to contribute $400,000 to the
Plan in five annual payments as follows: $32,000 in plan month 13,
$44,000 in plan month 25; $56,000 in plan month 37, $68,000 in plan
month 49, and $200,000 in plan month 61 if Class 11 votes in favor
of the Plan and $50,000 to the Plan if Class 11 does not vote in
favor of the Plan and equity is sold.
The source of funds for plan payments are current bank deposits,
and lease income from the Fiores Motors -- Mikes Autobody Lease,
and contributions from Autobody.
A full-text copy of the Disclosure Statement dated Feb. 15, 2020,
is available at https://tinyurl.com/tuj3mzl from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Gary W, Short, Esquire
212 Windgap Road, Pittsburgh, PA 15237
Tel: (412) 765-0100
Fax: (412) 536-3977
E-mailgaryshortlegal@gmail.com
About Fiores Motors
Fiores Motors, LLC, filed as a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)). Fiores Motors sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa.
Case No. 19-22212) on May 31, 2019. At the time of the filing, the
Debtor estimated assets of between $1 million and $10 million and
liabilities of the same range. The case is assigned to Judge
Thomas P. Agresti. Gary W. Short, Esq., is the Debtor's counsel.
FLO-TECH INC: Jensen Buying Glendale Property for $725K
-------------------------------------------------------
Thomas Tedford, an affiliate of Flo-Tech, Inc., asks the U.S.
Bankruptcy Court for the District of Arizona to authorize the
Residential Resale Real Estate Purchase Contract with Ronald Jensen
regarding the sale of his real property located at 24246 N. 43rd
Avenue, Glendale, Arizona for $725,000.
On the Petition Date, the Debtor owned a 50% interest in the
Property. His ex-fiancé, Lori Schwartz, owns the other 50%
interest in the Property.
On May 21, 2014, the Debtor and Ms. Schwartz entered in Sale
Agreement with Patricia M. Noel. Pursuant to the Sale Agreement,
the Debtor and Ms. Schwartz purchased the Property from Ms. Noel
for the sum of $589,000 with $29,000 due at closing and the balance
of the $560,000 payable in installments with a balloon due May 29,
2015. The Sale Agreement was recorded with the Maricopa County
Recorder's Office at Rec. Doc. 2014-0335879. After the Maturity
Date, the Parties continued to extend the maturity date informally,
but late fees of $25 per day accrued. Contemporaneous with the
Sale Agreement, the Parties executed a Wrap Addendum.
The Property is currently encumbered by a Deed of Trust executed by
Creditor in favor of Wells Fargo Home Mortgage in the original
principal sum of $404,904. The WF Deed of Trust was recorded with
the Recorder's Office at Rec. Doc. 2011-009715. The WF Deed of
Trust secures a loan to Ms. Noel with a current principal balance
of approximately $335,175 as of the proposed Closing Date.
On July 24, 2019, tge Debtor filed an Ex Parte Application to
Employ Real Estate Professional. On July 25, 2020, the Court
entered a Conditional Order granting the Application to Employ. No
objections were filed to the Application to Employ or the
Conditional Order and the Conditional Order is final pursuant to
its terms.
On Sept. 24, 2019, the Debtor and entered into a Stipulation for
Claim Treatment with Secured Creditor Patricia M. Noel. Pursuant
to the Noel Stipulation, he recognized an allowed secured claim for
Ms. Noel in the amount of $554,282 inclusive of accrued late fees
less any principal reduction from payments tendered by Debtor since
the parties entered into the Noel Stipulation. The Noel Balance
includes the amounts owing to Wells Fargo Bank in the Wells Fargo
Balance. Pursuant to the Noel Stipulation, Debtor will incur
significantly more costs if the Property does not close on Feb. 19,
2020.
The Debtor wishes to sell the Property. The Sale of the Property
is contemplated in the Plan of Reorganization proposed and a
significant portion of the remaining Sale proceeds will be used in
the implementation of the Plan. The Sale proceeds after payment of
customary closing costs, realtor commissions, fees, insurance and
other related costs of Sale will be paid to Wells Fargo Bank and
Ms. Noel to retire: (a) the Wells Fargo Balance; and (b) the
outstanding loan balance due under the Sale Agreement and Wrap
Addendum (net of the Wells Fargo Balance). The bulk of the
remaining proceeds after payment of all closing costs and
lienholders will be paid to Debtor for use to fund his Plan.
On Jan. 24, 2020, the Debtor accepted the Purchaser's offer and
entered into the Arizona Residential Resale Real Estate Purchase
Contract. The Purchaser desires to close the Sale transaction on
Feb. 18, 2020.
The Property is the Debtor's former residence located at 24246 N.
43rd Avenue, Glendale, AZ 85310 (APN 205-12-002-X). The relevant
information for the Property is provided in the Purchase Contract.
The Property is owned by Debtor and Ms. Schwartz as a fee simple
interest. The Debtor approximated the value of the Property as
$846,493 in his Schedules. This value was based on activity in the
marketplace as of the Petition Date. The Purchaser's offer is
indicative of the current marketplace value of the Residential
Property and is the product of many months of marketing activities
by the broker, Swallows & Associates Realty, employed by the
Debtor.
The Purchase Contract is between the Debtor and the Purchaser. The
Purchaser is not related to the Debtor. As set forth in the
Purchase Contract, the purchase price for the Real Property is
$725,000. Of the Purchase Price, $20,000 earnest money deposit has
already been provided by the Purchaser and deposited with the
closing agent, American Title Service Agency, LLC. The remainder
of the Purchase Price will be paid in cash ($125,000) and new loan
proceeds ($580,000) at the close of escrow which is currently
scheduled for Feb. 18, 2020 pursuant to the terms of the Purchase
Contract.
The commission to be paid to the Purchaser's broker will be 3%, or
$21,750. The commission to be paid to the Seller's Broker will be
3%, or $21,750.
Out of the Sale proceeds, the Debtor agrees to pay his portion of
escrow fees and costs related to the proposed Sale as shown on the
HUD-1 Settlement Statement. Pro rations will be made for real
property taxes and expenses relating to the real property as of the
date of the close of escrow.
Pursuant to the title commitment, the Property is currently
encumbered with several liens including, without limitation:
A. Real property taxes and assessments for the second half of
2019 through the closing estimated at $4,043 year.
B. Wells Fargo Bank claims a first position lien on the
Property pursuant to a deed of trust recorded on Jan. 5, 2011 with
the Recorder's Office at Rec. Doc. No. 2011-009715. The amount
owing on said deed of trust on Feb. 18, 2020 is approximately
$335,175.
C. Patricia M. Noel claims a second position lien on the
Property pursuant to the Sale Agreement and Wrap Addendum. The
amount owing on the Sale Agreement and Wrap Addendum (after payment
of the Wells Fargo Balance) is approximately $219,107 less any
principal reductions from payments received after the parties
entered into the Noel Stipulation.
Wells Fargo's consensual lien will be released at closing and
attach to the Sale proceeds. Ms. Noel's consensual lien related to
the Sale Agreement and Wrap Addendum will be released at closing
and attach to the Sale proceeds. Maricopa County Assessor's
statutory lien will be released and attach to the Sale proceeds.
The underlying sales transaction will be free and clear of all
liens, claims, and interests.
About Flo-Tech Inc.
Formed in December 1994, Flo-Tech, Inc., is in the business of
providing concrete floor repair, restoration and refinishing
services. Flo-Tech has its principal place of business located in
Phoenix, Maricopa County, Arizona. Thomas Tedford is the president,
director and majority shareholder of Flo-Tech -- he owns 100% of
the outstanding shares in Flo-Tech.
Flo-Tech, Inc., filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 19-00460) on Jan. 15,
2019. The Debtor engaged Keery McCue, PLLC, as counsel.
GENERAL CANNABIS: Appoints Principal Financial Officer
------------------------------------------------------
The Board of Directors of General Cannabis Corp appointed Jessica
Bast, the Company's vice president, controller, as the Company's
principal financial officer and principal account officer. There
is no arrangement or understanding between Ms. Bast and any other
person pursuant to which she was selected as an officer of the
Company, and there is no family relationship between Ms. Bast and
any of the Company's other directors or executive officers. Ms.
Bast, age 41, has been the Company's vice president, controller,
since September 2017. Ms. Bast was technical accounting research
manager at Pinnacle Agricultural Distribution from July 2016 to
September 2017, she was controller of Active Fashion Group from May
2016 to May 2016, and she was audit manager of Hein & Associates,
LLP (now Moss Adams) from September 2004 to April 2015. Ms. Bast's
current annual base salary is $150,000.
About General Cannabis Corp
Headquartered in Denver, Colorado, General Cannabis Corp --
http://www.generalcann.com/-- provides products, services and
capital to the regulated cannabis industry and non-cannabis
customers. General Cannabis operates through its four wholly-owned
subsidiaries: (a) 6565 E. Evans Owner LLC, a Colorado limited
liability company formed in 2014; (b) General Cannabis Capital
Corporation, a Colorado corporation formed in 2015; (c) GC Security
LLC, a Colorado limited liability company formed in 2015; and (d)
GC Corp., a Colorado corporation, originally formed in 2013 under
ACS Corp.
General Cannabis reported a net loss of $16.97 million for the year
ended Dec. 31, 2019, following a net loss of $8.22 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$4.61 million in total assets, $5.70 million in total liabilities,
and a total stockholders' deficit of $1.09 million.
Hall & Company, in Irvine, California, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
March 8, 2019, on the consolidated financial statements for the
year ended Dec. 31, 2018, citing that the Company's cash balance of
approximately $8.0 million is not sufficient to absorb the
Company's operating losses and retire their debt of $6,849,000 due
May 1, 2019. Accordingly, there is substantial doubt about the
Company's ability to continue as a going concern.
GENERAL CANNABIS: Sells $2 Million Promissory Notes to Investors
----------------------------------------------------------------
General Cannabis Corp issued and sold unsecured promissory notes
with an aggregate principal amount of $2,006,000 to certain
investors in exchange for $500,000 of new funding and the
cancellation of outstanding indebtedness of $1,506,000 represented
by prior promissory notes issued by the Company in September 2019.
The Unsecured Notes have an annual interest rate of 15% and mature
on Jan. 31, 2021. The Unsecured Notes provide that they shall be
repaid in full out of the proceeds of any new debt or equity
capital raise with net proceeds of more than $5,000,000. In
connection with the issuance of the Unsecured Notes, each holder of
Unsecured Notes received three warrants (i.e., a 2020 A Warrant, a
2020 B Warrant and a 2020 C Warrant) to acquire shares of Common
Stock of the Company at an exercise price equal to $0.45 per share,
with the number of shares subject to each warrant equal to one
share for each $1.00 of principal amount of Unsecured Note issued
to the noteholder. The 2020 A Warrants have an expiration date of
Dec. 31, 2020, the 2020 B Warrants have an expiration date of Dec.
31, 2021, and the 2020 C Warrants have an expiration date of Dec.
31, 2022. By way of example, if an investor was issued an
Unsecured Note with a principal amount of $250,000, such noteholder
would receive a 2020 A Warrant to purchase 250,000 shares of Common
Stock, a 2020 B Warrant to purchase 250,000 shares of Common Stock
and a 2020 C Warrant to purchase 250,000 shares of Common Stock.
Accordingly, the Company issued Warrants to purchase a total of
6,018,000 shares of Common Stock to the holders of Unsecured
Notes.
Convertible Note Exchange
The Company previously issued that certain Promissory Note, dated
July 18, 2019, as amended, to SBI Investments LLC, 2014-1, for the
principal amount of $750,000. On Feb. 18, 2020, the Company and
SBI entered into a promissory note exchange agreement pursuant to
which the Original Note was exchanged for a new convertible
promissory note. The Convertible Note has a principal amount of
$934,000, an interest rate of 10% per annum and a maturity date of
Feb. 18, 2021. The Convertible Note may be converted at the option
of SBI into shares of Common Stock of the Company at a conversion
price equal to 80% of the Market Price (as defined in the
Convertible Note); provided that the conversion price shall in no
event be less than $0.45 per share (unless adjusted as provided in
the Convertible Note).
SevenFive Farm Acquisition
On Jan. 24, 2020, the Company entered into an asset purchase
agreement with Dalton Adventures, LLC, pursuant to which the
Company agreed to acquire the assets of the Seller constitute the
business of SevenFive Farm, a cultivation facility in Boulder,
Colorado. The purchase price to be paid by the Company for the
assets will be equal to 1.4 times the Seller's gross revenue for
the 12-month period prior to the closing; provided that the
purchase price will not be lower than $3,000,000. The Company will
pay the purchase price by issuing to the Seller shares of common
stock of the Company equal to the purchase price divided by the
volume weighted average per share price of the Company's shares for
30 consecutive trading days ending on the second trading day prior
to the closing; provided that if the VWAP exceeds $0.85 per share,
then the VWAP will equal $0.85 per share for purposes of the
foregoing calculation. The Company will make reasonable efforts to
register the resale of the shares of common stock issued to the
Seller. For a period of six months following the closing, the
Seller has agreed not to sell any of the shares of the Company
received at the closing. The Seller may require the Company to
repurchase in cash 25% of the shares issued to the Seller at the
closing at a repurchase price equal to the same VWAP used to
determine the number of shares issued to the Seller at closing.
The Seller will have the option to require such repurchase during
the period from the date of the one-year anniversary of the closing
until two business days following the one-year anniversary of the
closing. The closing is subject to approval of the transaction by
the Colorado Marijuana Enforcement Division, as well as other
customary closing conditions.
About General Cannabis Corp
Headquartered in Denver, Colorado, General Cannabis Corp --
http://www.generalcann.com/-- provides products, services and
capital to the regulated cannabis industry and non-cannabis
customers. General Cannabis operates through its four wholly-owned
subsidiaries: (a) 6565 E. Evans Owner LLC, a Colorado limited
liability company formed in 2014; (b) General Cannabis Capital
Corporation, a Colorado corporation formed in 2015; (c) GC Security
LLC, a Colorado limited liability company formed in 2015; and (d)
GC Corp., a Colorado corporation, originally formed in 2013 under
ACS Corp.
General Cannabis reported a net loss of $16.97 million for the year
ended Dec. 31, 2019, following a net loss of $8.22 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$4.61 million in total assets, $5.70 million in total liabilities,
and a total stockholders' deficit of $1.09 million.
Hall & Company, in Irvine, California, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
March 8, 2019, on the consolidated financial statements for the
year ended Dec. 31, 2018, citing that the Company's cash balance of
approximately $8.0 million is not sufficient to absorb the
Company's operating losses and retire their debt of $6,849,000 due
May 1, 2019. Accordingly, there is substantial doubt about the
Company's ability to continue as a going concern.
GEORGE WASHINGTON: March 11 Disclosure Motion Hearing Set
---------------------------------------------------------
Debtor George Washington Bridge Bus Station Development Venture LLC
filed its motion for an order approving Notice of Disclosure
Statement hearing and approving Disclosure Statement.
March 11, 2020, at 11:00 a.m. before the Honorable Shelley C.
Chapman, United States Bankruptcy Judge in the United States
Bankruptcy Court for the Southern District of New York, One Bowling
Green, Courtroom 623, New York, New York 10004 is the hearing on
the motion.
March 4, 2020, at 4:00 p.m., is the deadline to file responses or
objections to the motion.
A full-text copy of the notice dated February 11, 2020, is
available at https://tinyurl.com/v5573n4 from PacerMonitor at no
charge.
Counsel to the Debtor:
COLE SCHOTZ P.C.
Michael D. Sirota
Warren A. Usatine
Ryan T. Jareck
Mark Tsukerman
Rebecca W. Hollander
1325 Avenue of the Americas, 19th Floor
New York, New York 10019
Tel: (212) 752-8000
Fax: (212) 752-8393
About George Washington Bridge
George Washington Bridge Bus Station Development Venture LLC is the
entity contracted to renovate the George Washington Bridge Bus
Station in New York. The bus station was reopened in 2016 following
a delayed and costly renovation. As part of the deal, the company
was granted a 99-year lease to operate and maintain the retail
portion of the bus station.
George Washington Bridge Bus Station Development Venture LLC sought
Chapter 11 protection (Bankr. S.D.N.Y. Case No. 19-13196) on Oct.
7, 2019.
The company's assets are estimated between $50 million and $100
million, and liabilities between $100 million and $500 million,
according to bankruptcy documents.
The Hon. Shelley C. Chapman is the case judge.
Cole Schotz P.C. is the Debtor's counsel BAK Advisors Inc., is the
Debtor's financial advisor, and BAK's Bernard A. Katz is presently
serving as the Debtor's sole manager.
GFL ENVIRONMENT: Moody's Reviews B3 CFR for Upgrade Amid IPO Launch
-------------------------------------------------------------------
Moody's Investors Service placed on review for upgrade the B3
corporate family rating of GFL Environmental Inc., its B3-PD
probability of default rating, B1 senior secured bank credit
facility rating and Caa2 senior unsecured notes rating.
On Review for Upgrade:
Issuer: GFL Environmental Inc.
Probability of Default Rating, Placed on Review for Upgrade,
currently B3-PD
Corporate Family Rating, Placed on Review for Upgrade, currently
B3
Senior Secured Bank Credit Facility, Placed on Review for Upgrade,
currently B1 (LGD2)
Senior Secured Regular Bond/Debenture, Placed on Review for
Upgrade, currently B1 (LGD2)
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Upgrade, currently Caa2 (LGD5)
Outlook Actions:
Issuer: GFL Environmental Inc.
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE
The review follows the announcement by GFL that it has launched an
initial public offering (IPO) consisting of subordinate voting
shares and tangible equity units. GFL intends to use the proceeds
to repay a portion of its senior unsecured debt, fully repay the
outstanding amounts in the revolving credit facility and repay a
portion of its term loan facility. Remaining proceeds will be used
to pay fees and for other transaction expenses.
Moody's review will consider GFL's credit profile upon the
successful closing of the IPO transaction with a focus on the
anticipated operating and financial performance of the company,
post-closing credit metrics, liquidity and the potential for future
acquisitions. The equity offering transaction could result in an
upgrade of GFL's ratings as it will improve GFL's key financial
metrics and also provide additional liquidity and flexibility for
future acquisition transactions.
The initial public offering is expected to close the week of March
2, 2020, subject to customary closing conditions.
Environmental risks considered material are the various regulations
and requirements that GFL is subjected to for the collection,
treatment and disposal of waste. GFL has a long track record of
adhering to the requirements for the proper handling of the waste
materials encountered.
The governance considerations Moody's makes in GFL's credit profile
include the private-equity ownership and the potential for an
aggressive capital structure in comparison to public corporations.
Moody's also considered GFL's track record of completing
debt-financed acquisitions for the expansion of its business as
well as the management team's experience in the successful
integration of the businesses.
GFL Environmental Inc., headquartered in Toronto, provides solid
waste and liquid waste collection, treatment and disposal solutions
and soil remediation services to municipal, industrial and
commercial customers in Canada. The company also provides municipal
and commercial solid waste and recycling collection services in the
US. Pro forma for acquisitions, annual revenue exceeds C$3.5
billion.
The principal methodology used in these ratings was Environmental
Services and Waste Management Companies published in April 2018.
GRAPHIC PACKAGING: S&P Rates $400MM Senior Unsecured Notes 'BB+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Graphic Packaging International LLC's proposed
$400 million senior unsecured notes due in 2028. The '3' recovery
rating indicates S&P's expectation for meaningful recovery
(50%-70%; rounded estimate: 50%) in the event of a payment
default.
The company will use the proceeds to pay down outstanding revolving
credit facility borrowings and for general working capital
purposes. All of S&P's other ratings on Graphic Packaging are
unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P has assigned its 'BB+' issue-level rating and '3' recovery
rating (50%-70%; rounded estimate: 50%) to the company's proposed
$400 million senior unsecured notes.
-- S&P's simulated default scenario contemplates a default in
2025, following an abnormally weak macroeconomic environment that
reduces end-market demand, resulting in lower business volumes,
along with rising raw material and energy costs. Graphic's cash
flow would be insufficient to cover its interest expense, required
amortization on the term loans, working capital, and maintenance
capital outlays.
-- S&P assumes these conditions would impair the company's ability
to meet its fixed charges, which eventually drains its liquidity,
and triggers a bankruptcy filing.
-- S&P believes Graphic's underlying business would continue to
have considerable value and expect it would emerge from bankruptcy
with $630 million of EBITDA, rather than pursue liquidation.
-- S&P assumes the company will seek covenant amendments on its
path to default--resulting in higher interest costs--and anticipate
its revolving credit facilities would be drawn approximately 85%.
Simulated default assumptions
-- Simulated year of default: 2025
-- EBITDA at emergence: $630 million
-- EBITDA multiple: 6x
-- Gross enterprise value: $3.77 billion
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $3.6
billion
-- Obligors/nonobligors valuation split: 85%/15%
-- Estimated first-lien debt claims: $2.7 billion
-- Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Value available to unsecured debt claims: $887.6 million
-- Total unsecured debt claims: $1.7 billion
-- Recovery expectations: 50%-70% (rounded estimate: 50%)
All debt amounts include six months of prepetition interest.
GREENWAY SERVICES: Komatsu Financial Objects to Amended Disclosure
------------------------------------------------------------------
Komatsu Financial Limited Partnership objects to the Amended
Disclosure Statement dated January 15, 2020, filed by debtor
Greenway Services, Inc.
In support thereof, Komatsu states that the Amended Disclosure
Statement fails to provide adequate information by which Komatsu,
or indeed any creditor, can make an informed judgment regarding the
Amended Plan and whether to vote in favor of or against the Amended
Plan:
* The Amended Disclosure Statement provides inadequate
information as to the Debtor's ability to fund its obligations
under the Amended Plan. The Amended Disclosure Statement fails to
explain why the Debtor believes that it will have $60,000 in cash
and $185,000 in accounts receivable beginning in January 2020, and
its lack of substantive financial information makes it impossible
for any creditor to make an informed judgment as to the feasibility
of the Amended Plan.
* The Debtor provided no liquidation analysis to creditors to
assess whether they will receive more under the Amended Plan than a
chapter 7 liquidation. Further, neither the Amended Disclosure
Statement nor the Amended Plan provides any estimates on what
general unsecured creditors may expect to receive under the amended
Plan.
* The Amended Plan should expressly provide that upon any default
under the Amended Plan, the Debtor must immediately surrender the
Remaining Komatsu Equipment to Komatsu and that Komatsu's rights
and remedies under the Komatsu Agreement and applicable law are
expressly preserved.
* The Amended Disclosure Statement and Amended Plan do not
demonstrate that the Debtor's proposed treatment of Komatsu's
secured claim is fair and equitable.
A full-text copy of Komatsu's objection dated Feb. 11, 2020, is
available at https://tinyurl.com/tcurcck from PacerMonitor at no
charge.
Komatsu Financial is represented by:
Justin E. Simmons, Esq.
Woods Rogers PLC
P.O. Box 14125
Roanoke, VA 24038-4125
Telephone: 540-983-7600
E-mail: jsimmons@woodsrogers.com
- and -
Arlene N. Gelman
Vedder Price P.C.
222 N. LaSalle Street
Suite 2600
Chicago, IL 60601
Telephone: 312-609-7833
E-mail: agelman@vedderprice.com
About Greenway Services
Greenway Services, Inc. -- http://greenwayservicesincorporated.com/
-- offers clearing and demolition, earthwork, storm drainage,
utilities, and paving and concrete services. Since 1989, the
Company has been serving the NC, SC, VA, TN and KY areas.
Greenway was founded in 2008 by Mark Osborne and its initial
business was to provide reclamation services to the coal industry.
Thereafter, it branched into the excavating business. The company
filed its Chapter 11 petition because of a series of lawsuits
against it as a result of past due balances due to creditors and
threats of repossession of its equipment.
Greenway Services, Inc., based in Abingdon, VA, filed a Chapter 11
petition (Bankr. W.D. Va. Case No. 19-70750) on May 31, 2019. In
the petition signed by Mark D. Osborne, president, the Debtor was
estimated to have $1 million to $10 million in both assets and
liabilities. The Hon. Paul M. Black oversees the case. The Debtor
hired Copeland Law Firm, P.C, as bankruptcy counsel to the Debtor.
GROW INC: Seeks to Hire Nardella & Nardella as Legal Counsel
------------------------------------------------------------
Grow, Inc. seeks authority from the U.S. Bankruptcy Court for the
Middle District of Florida to hire Nardella & Nardella, PLLC as its
legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor concerning the operation of its business
in compliance with Chapter 11 and orders of the bankruptcy court;
b. defend any causes of action on behalf of the Debtor;
c. prepare legal papers; and
d. assist in the preparation of a plan of reorganization and
disclosure statement.
The firm will be paid at these hourly rates:
Attorneys $350
Associates $275
Paraprofessionals $175
Nardella received the sum of $4,640.50 from the Debtor for services
rendered and will be paid an additional fee of $40,109.50 as
retainer. The firm will also be reimbursed for work-related
expenses incurred.
Michael Nardella, Esq., a partner at Nardella, assured the court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
Nardella & Nardella can be reached at:
Michael A. Nardella, Esq.
Nardella & Nardella, PLLC
135 West Central Boulevard, Suite 300
Orlando, FL 32801
Tel: (407) 966-2680
Email: mnardella@nardellalaw.com
About Grow Inc.
Grow, Inc. is a privately held company whose principal assets are
located at 813 Lake McGregor Drive Fort, Myers, Fla.
Grow, Inc. sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 20-00959) on Feb. 3, 2020. In the
petition signed by Jeff Kaulbars, president, the Debtor estimated
$1 million to $10 million in both assets and liabilities. Michael
A. Nardella, Esq., at Nardella & Nardella, PLLC, is the Debtor's
legal counsel.
GTC WORKS: Unsecured Creditors to Recover 100% in Plan
------------------------------------------------------
Debtor GTC Works, LLC, filed a Plan of Reorganization and a
Disclosure Statement.
Most general unsecured creditors are classified in Class 8.
Unliquidated tort claims are classified in Class 9. Although they
are impaired, all unsecured creditors will receive a distribution
of 100% of their allowed claims. Payments are projected to begin
July 2023 and finish February 2027
On the minimum payment schedule provided by the Plan, all
administrative, priority and secured claims will be paid, with
interest, by June 2028. The Plan provides that Debtor will also
contribute 20% of monthly gross revenues above $202,000 (the
Additional Payments), which are projected to secure payment of
administrative, priority and secured claims by July 2023, and
non-insider claims by February 2027.
The Debtor will also market its business for sale, and will
conclude a sale if it will generate sufficient after-tax net
proceeds to satisfy all allowed administrative, priority and
secured claims.
Payments and distributions under the Plan will be funded by cash
flow from operations.
A full-text copy of the Disclosure Statement dated Feb. 2, 2020, is
available at https://tinyurl.com/qn53sru from PacerMonitor at no
charge.
About GTC Works LLC
GTC Works LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Ariz. Case No. 19-04090) on April 8, 2019. At the
time of the filing, the Debtor was estimated to have assets and
liabilities of less than $1 million. The case is assigned to Judge
Paul Sala. Kelly G. Black, PLC, is the Debtor's counsel.
HARTFORD, CT: Moody's Raises Issuer Rating to Ba3, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service upgraded the city of Hartford, CT's long
term issuer rating to Ba3 from B1. The outlook has been revised to
stable from positive. The issuer rating is equivalent to the city's
hypothetical general obligation unlimited tax bond rating; there is
currently no outstanding debt associated with this rating. Moody's
maintains an A2 rating on the city's outstanding general obligation
bonds based on the contract assistance agreement between the state
and the city, wherein the State of Connecticut has committed to pay
the annual debt service on all of the city's outstanding general
obligation bonds.
RATINGS RATIONALE
The upgrade to Ba3 reflects stable financial operations and
improved liquidity that has been achieved through adherence to the
city's financial recovery plan including the benefits of the
state's contract assistance agreement and cost saving measures
taken by the city through labor contract agreements and tight
expenditure controls. The rating also incorporates strong and
continued state oversight through the Municipal Accountability
Review Board (MARB) and contract assistance agreement. Also
factored into the rating are ongoing challenges on the city's path
to long term sustainably balanced financial operations including
growing expenditures and projected weak revenue growth that is
dependent on tax base growth and state funding. The city has
limited revenue flexibility resulting in part from the high
percentage of exempt properties within the tax base, persistent
challenges of high poverty, above average unemployment and low
median family income.
RATING OUTLOOK
The stable outlook reflects its expectation that the city will
continue to adhere to its financial recovery plan resulting in
balanced operations over the next two years with any surplus going
towards improving reserves and funding capital needs. The outlook
also incorporates the city's ability to manage any slight negative
variance in assumed tax base growth over the outlook period,
although stagnant tax base valuation or declines would further
pressure the city's credit profile. Conversely, stronger than
anticipated tax base growth could further bolster the overall
credit profile.
FACTORS THAT COULD LEAD TO AN UPGRADE
- Continued trend of balanced financial operations
- Modest annual tax base growth
- Improvement in general fund reserves and liquidity
FACTORS THAT COULD LEAD TO A DOWNGRADE
- Material tax base decline
- Deviation from the financial recovery plan
- Operating deficits and/or decline in liquidity
- A decline in overall state aid and support
- Trigger event under MARB oversight or under the state contract
assistance agreement
LEGAL SECURITY
The long term issuer rating is equivalent to the city's full faith
and credit, general obligation unlimited tax pledge including the
legal authority to levy property taxes without limit as to rate or
amount.
PROFILE
Hartford is the Connecticut state capital. The city is 18.4 square
miles in area, has 124,390 residents (2017 ACS) and is located
halfway between Boston (Aaa stable) and New York City (Aa1
stable).
METHODOLOGY
The principal methodology used in this rating was US Local
Government General Obligation Debt published in September 2019.
HOT SPRINGS TAXI: U.S. Trustee Objects to Plan & Disclosures
------------------------------------------------------------
The United States Trustee objects to the Disclosure Statement and
Plan of Reorganization filed by Debtor Hot Springs Taxi, Inc., and
for his objection, respectfully states and alleges:
* The Debtor failed to file monthly operating reports and submit
to the United States Trustee supporting documentation for the
months of October, November, and December 2019. The United States
Trustee filed a Motion to Dismiss or Convert the case and the
parties entered into a strict compliance order requiring that the
operating reports be filed by January 31, 2020, and supporting
documents provided to the United States Trustee.
* The Debtor has provided some, but not all, of the supporting
documents to the United States Trustee. In addition, after
reviewing the filed operating reports and documents, the United
States Trustee is unable to determine the feasibility of Debtor’s
Plan and ascertain whether it is viable.
* The Debtor states in its disclosure statement that the first
quarter of the calendar year is the busiest taxi season for the
company. However, Debtor has failed to include any projections as
to income and expenses for the upcoming quarter or year, making it
difficult for creditors to determine if the Debtor will be able to
service the plan payments outlined in the proposed Plan of
Reorganization.
* The United States Trustee has requested further information
from the Debtor regarding the Debtor's current and future cash
flow, but that information has not been received as of the filing
of this motion.
A copy of U.S. Trustee's objection dated Feb. 6, 2020, is available
at https://tinyurl.com/qr4plx7 from PacerMonitor at no charge.
About Hot Springs Taxi
Hot Springs Taxi, Inc., operates a taxi and non-emergency medical
transport business in Arkansas. The taxi service operates primarily
in Garland County, Arkansas. The medical transport business
operates statewide. Darrian Conner purchased Hot Springs Taxi,
Inc., from Derek Johnson in July 2013.
Based in Hot Springs, Arkansas, Hot Springs Taxi filed a Chapter 11
bankruptcy petition (Bankr. W.D. Ark. Case No. 19-70648) on March
11, 2019, listing under $1 million in both assets and liabilities.
Branch T. Fields, Esq., at Lax, Vaughan, Fortson, Rowe & Threet,
PA, represents the Debtor.
INVICTUS MD: Obtains Court Approval to Obtain DIP Financing
-----------------------------------------------------------
Invictus MD Strategies Corp. disclosed that on Feb. 24, 2020, the
Supreme Court of British Columbia ()Court") granted an amended and
restated initial order ()Amended and Restated Initial Order") under
the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The
Amended and Restated Initial Order also extends protection to
Greener Pastures MD Ltd., Acreage Pharms Ltd. ()Acreage"), and
2015059 Alberta Ltd. ()Invictus Group").
DIP Financing
The Amended and Restated Initial Order authorizes the Invictus
Group to obtain debtor-in-possession financing from its senior
secured creditor, ATB Financial (the "DIP Lender"). The DIP Lender
has agreed to provide the Invictus Group with a
debtor-in-possession financing facility ()DIP Facility") of up to a
maximum principal amount of $3 million. The initial advance of DIP
Facility is subject to the satisfaction of certain conditions. The
DIP Facility is secured by a super-priority charge in favour of the
DIP Lender and will accrue at an interest rate of 10% per annum.
An upfront fee of $60,000 is payable to the DIP Lender in
connection with the establishment of the DIP Facility. The DIP
Facility will mature on the earlier of August 31, 2020, an event of
default or on the occurrence of certain events in connection with
the CCAA proceedings.
SISP
The Amended and Restated Initial Order approves the Invictus
Group's proposed sales, investment and solicitation process (the
"SISP"), which has been developed in consultation with its monitor,
PricewaterhouseCoopers Inc. ()Monitor"), and DIP Lender. The
purpose of the SISP is to seek out proposals for one or more of the
following:
* a restructuring, recapitalization, or other form of
reorganization of the business and affairs of one or more of the
Invictus Group as a going concern; or
* a sale of all, substantially all, of one or more components
of, the Invictus Group's assets and business operations as a going
concern or otherwise.
The SISP is intended to help identify the best opportunities for
maximizing value for the Invictus Group's stakeholders.
CRO
The Amended and Restated Initial Order authorizes the appointment
of Pam K. Boparai of Boparai Consulting Inc. as the chief
restructuring officer (the "CRO") of the Invictus Group. The CRO's
scope of services includes assisting with and overseeing the
restructuring of the Invictus Group.
Extension of the Initial Stay Period
The Amended and Restated Initial Order authorizes an extension to
the initial stay period to and including May 29, 2020 (the "First
Stay Extension"). The First Stay Extension is intended to allow
the Invictus Group to continue operating as a going concern as it
implements the SISP and a key employee retention plan, while
pursuing various restructuring options with the assistance of the
CRO.
NEX
At the request of the Company, the listing of its Common Shares
will be transferred from the TSX Venture Exchange (the "Exchange")
to the NEX board of the Exchange effective February 26, 2020. The
Common Shares will trade under the symbol GENE.H and the warrants
to acquire Common Shares will trade under the symbol GENE.WT.H.
Invictus MD Strategies Corp. -- https://www.invictus-md.com/ --
operates a cannabis company.
JIT INDUSTRIES: Unsec. Creditors to Recover 33% in Plan
-------------------------------------------------------
Debtor JIT Industries, Inc., filed the Fourth Amended Disclosure
Statement with respect to the Plan of Reorganization on Feb. 6,
2020.
The Plan proposes paying unsecured creditors a total of 33% of the
total allowed claims in this class based on the Debtor's net
revenue available for plan-payments as projected for the years
2020-2025. The Debtor expects to contribute the majority of its net
revenue available for plan-payments, leaving little in funds
remaining for the general unsecured creditors in full.
Accordingly, the Debtor proposed a payment of 33% because it is the
largest amount the Debtor believes it can reliably pay to its
unsecured creditors, without running the risk of likely defaulting
on its payment obligations to the creditors in this class.
A full-text copy of the Fourth Amended Disclosure Statement dated
Feb. 6, 2020, is available at https://tinyurl.com/u2padeg from
PacerMonitor at no charge.
The Debtor is represented by:
SPARKMAN, SHEPARD & MORRIS, P.C.
P. O. Box 19045
Huntsville, AL 35804
Tel: (256) 512-9924
Fax: (256) 512-9837
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.
KINGMAN FARMS: Plan to Implement HB Farms Settlement Agreement
--------------------------------------------------------------
Debtor Kingman Farms Ventures, LLC, filed a Second Amended Plan of
Reorganization and a corresponding Disclosure Statement on Feb. 11,
2020.
The Plan proposes to approve the HB Farms Settlement Agreement, as
amended by the Agreed Order, through the Plan Confirmation Order,
will Close after the entry of the Confirmation Order and said
Closing will be a condition precedent to the Effective Date.
Holders of general unsecured claims in Class 5, totaling $15,043,
are not impaired -- they will receive receive cash in the allowed
amount of the claims on the Effective Date.
The HB Farms Claim in Class 6, totaling $19,066,308, is impaired.
The Unencumbered 095 Property (633.8 acres identified as APN
341-01-095 in MOhave County, Arizona) and Cashton Fees will be
transferred to Cashton Land Development, LLC in accordance with
the terms of the HB Farms Settlement Agreement and Agreed Order.
The transfer shall be free and clear of all liens, claims, equity
interests, and other encumbrances, except the Permitted
Encumbrances as defined in the HB Farms Settlement Agreement. On
the Close of HB Farms Escrow, Debtor shall deliver good and
marketable title to Unencumbered 095 Property to Cashton by way of
Warranty Deed, plus the Cashton Fees, deposited into escrow
pursuant to the HB Farms Settlement Agreement and Agreed Order, and
all such other instruments as may be necessary or customary to
effectuate the HB Farms Settlement Agreement.
The Plan provides for Debtor's existing Old Equity Interests in
Class 7 to be cancelled and 100 percent of the new membership
interests in the Reorganized Debtor to be issued pro rata to the
New Equity Investor in exchange for providing the New Capital
Contribution of an amount not less than $500,000, but not to
exceed $650,000 which will be used to satisfy Claims under the
Plan.
A full-text copy of the Second Amended Disclosure Statement dated
Feb. 11, 2020, is available at https://tinyurl.com/sg289fx from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
NEDDA GHANDI, ESQ.
LAURA A. DEETER, ESQ
SHARA L. LARSON, ESQ.
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
E-mail: laura@ghandilaw.com
E-mail: 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.
LEAWOOD PROPERTIES: Seeks to Hire Krigel & Krigel as Legal Counsel
------------------------------------------------------------------
Leawood Properties, LLC seeks authority from the U.S. Bankruptcy
Court for the District of Kansas to hire Krigel & Krigel, P.C. 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 management and operation of its business;
(b) attend meetings and negotiate with representatives of
creditors and other parties;
(c) take all necessary action to protect and preserve the
Debtor's bankruptcy estate, including the prosecution of actions on
its behalf, the defense of any actions commenced against the
estate, and objections to claims filed by creditors;
(d) prepare legal papers and appear before the court and the
Office of the U.S. Trustee; and
(e) negotiate and prosecute on the Debtor's behalf all
contracts for the sale of assets, plan of reorganization,
disclosure statement, and all related agreements or documents, and
take necessary actions to obtain confirmation of the plan.
The hourly rates are:
Sanford Krigel $350
Erlene Krigel $275
Paul Hentzen $275
Karen Rosenberg $250
Ivan Nugent $250
Jessica Marien $250
Dana Wilders $250
Lara Pabst $250
Christopher Smith $250
Legal assistants $75
Krigel & Krigel neither represents nor holds any interest adverse
to the Debtor's estate, according to court filings.
The firm can be reached through:
Erlene W. Krigel, Esq.
Krigel & Krigel, P.C.
4520 Main Street, Suite 700
Kansas City, MO 64111
Tel: (816) 756-5800
Fax: (816) 756-1999
Email: ekrigel@krigelandkrigel.com
About Leawood Properties
Based in Leawood, Kansas, Leawood Properties, LLC sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Case No.
20-20182) on Feb. 4, 2020, listing under $1 million in both assets
and liabilities. Erlene W Krigel, Esq., at Krigel & Krigel, is the
Debtor's legal counsel.
LOURIV LLC: Selling Three Sterling Office Condo Units for $720K
---------------------------------------------------------------
LouRiv, LLC, asks the U.S. Bankruptcy Court for the Eastern
District of Virginia to authorize the sale of the three contiguous
office condominiums located in the Potomac Falls Professional
Center in Loudoun County, Virginia to Dr. Lance Lasner and Dr.
Nisha Chand and/or their assigns to an entity created for
$780,000.
Individually they are condominium units 200, 210 and 220, having
Loudoun County tax identification numbers /81/S20P2/200/ (PARID:
019366802007) and /81/S20P3/210/ (PARID: 019366802007) and
/81/S20P3/220/ (PARID: 0193366802009), respectively. The units may
be utilized as separate suites or combined. The address for the
condominium units is 46169 Westlake Drive, Sterling, VA 20165.
Subject to court approval, the Debtor has entered into a contract
to sell the Property to the Buyers under the laws of the
Commonwealth of Virginia in which either Dr. Lasner and/or Dr.
Chand will be a principal member or owner.
The Property has been on the market for approximately twelve
months, and the Debtor and its broker believe that the price
accurately reflects the fair market value.
The Property is subject to a first priority lien in favor of Eagle
Bank. As of the Petition Date, Eagle was owed approximately
$522,975. No payments have been made since the Petition Date, and
this amount has increased by accrued interest.
The Property is also subject to a second priority lien in favor of
Liberty Mutual Insurance Co. in the approximate amount of $725,000.
Liberty will not be paid in full from the sale proceeds, and has
consented to the sale as described.
Currently pending before the Court is an application to retain
Century 21 New Millennium as real estate agent and broker for the
Debtor's Chapter 11 bankruptcy estate. Century 21 has had the
listing agreement on the Property since January 2019.
The Contract provides the Purchaser with a 45-day Feasibility
Period. Closing is to occur at the conclusion of the 45 day
Feasibility Period, subject to entry of a non-appealable Sale Order
by the Court.
At the request of the Purchasers, the individual members of the
Seller, Willian and Rivellini and Nikki Rivellini, who collectively
own 100% ofthe membership interest in the Debtor, have agreed to
personally guaranty the performance of the Seller under the term of
the
Contract, subject to Court approval.
At closing, the Debtor proposes to pay the sale proceeds as
follows:
a.) Ordinary and necessary costs of closing, including any
allocations of items such as condominium fees, utility charges and
real estate taxes due through the closing date, Grantor's taxes
(including the Regional Congestion Relief Fee), and other customary
cost of sale as provided for in the Contract and any other items or
amounts for which the Debtor is responsible under the Contract.
b.) Real estate commission in the amount of 3% of the sale
price, or $23,400, to Century 21, as the Seller's broker. The
Purchasers' broker has waived its commission.
c.) Payment of amounts due to Eagle Bank that are secured by
the Property;
d.) Fees due to the Office of the United States Trustee for
the first quarter of 2020 (or such other quarter as the sale
occurs);
e.) All remaining sale proceeds will be paid to Liberty.
The Debtor asks an order authorizing the proposed sale, with liens
to be paid from the sale proceeds.
A copy of the Contract is available at https://tinyurl.com/wcj7osk
from PacerMonitor.com free of charge.
About LouRiv LLC
LouRiv, LLC, based in Great Falls, VA, filed a Chapter 11 petition
(Bankr. E.D. Va. Case No. 19-14131) on Dec. 19, 2019. In the
petition signed by William Rivellini, president/member, the Debtor
was estimated to have $1 million to $10 million in both assets and
liabilities. Ann E. Schmitt, Esq., at Culbert & Schmitt, PLLC,
serves as bankruptcy counsel to the Debtor.
LSB INDUSTRIES: Reports $96.4 Million Net Loss for 2019
-------------------------------------------------------
LSB Industries, Inc., filed with the Securities and Exchange
Commission its Annual Report on Form 10-K reporting a net loss
attributable to common stockholders of $96.44 million on $365.07
million of net sales for the year ended Dec. 31, 2019, compared to
a net loss attributable to common stockholders of $102.74 million
on $378.16 million of net sales for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $1.08 billion in total assets,
$103.30 million in total current liabilities, $449.63 million in
long-term debt, $11.40 million in noncurrent operating lease
liabilities, $6.21 million in other noncurrent accrued and other
liabilities, $35.71 million in deferred income taxes, $234.89
million in redeemable preferred stock, and $247.33 million in total
stockholders' equity.
LSB Industries said, "We may not be able to generate sufficient
cash to service our debt and may be required to take other actions
to satisfy the obligations under our debt agreements or to redeem
our preferred stock, which may not be successful.
Our ability to make scheduled payments on our debt obligations and
our ability to satisfy the redemption obligations for the Series E
cumulative redeemable Class C preferred stock ("Series E Redeemable
Preferred") depends on our financial condition and operating
performance, prevailing economic and competitive conditions, and
certain financial, business and other factors, some of which may be
beyond our control. We may not be able to maintain a level of cash
flows sufficient to pay the principal and interest on our debt,
including the $435 million principal amount of our Senior Secured
Notes (the "Senior Secured Notes"), or the outstanding amount of
the Working Capital Revolver Loan or to pay the cumulative
dividends and redemption payment on the Series E Redeemable
Preferred should the holder choose to redeem it on or after October
25, 2023, that applicable optional redemption date with respect
thereto.
"If cash flows and capital resources are insufficient to fund our
debt, dividend or preferred stock redemption obligations, we could
face substantial liquidity problems and will need to seek
additional capital through the issuance of debt, the issuance of
equity, asset sales or a combination of the foregoing. If we are
unsuccessful, we will need to reduce or delay investments and
capital expenditures, or to dispose of other assets or operations,
seek additional capital, or restructure or refinance debt or
redeemable equity. These alternative measures may not be
successful, may not be completed on economically attractive terms,
or may not be adequate for us to meet our debt or preferred stock
redemption obligations when due. Additionally, our debt agreements
and the operating agreements associated with our Series E
Redeemable Preferred limit the use of the proceeds from many
dispositions of assets or operations. As a result, we may not be
permitted to use the proceeds from these dispositions to satisfy
our debt or preferred stock redemption obligations. If we cannot
make scheduled payments on our debt, we will be in default and the
outstanding principal and interest on our debt could be declared to
be due and payable, in which case we could be forced into
bankruptcy or liquidation or required to substantially restructure
or alter our business operations or debt obligations. In such an
event, we may not have sufficient assets to repay all of our debt.
"Further, if we suffer or appear to suffer from a lack of available
liquidity, the evaluation of our creditworthiness by counterparties
and rating agencies and the willingness of third parties to do
business with us could be materially and adversely affected. In
particular, our credit ratings could be lowered, suspended or
withdrawn entirely at any time by the rating agencies. Downgrades
in our long-term debt ratings generally cause borrowing costs to
increase and the potential pool of investors and funding sources to
decrease and could trigger liquidity demands pursuant to the terms
of contracts, leases or other agreements. Any future transactions
by us, including the issuance of additional debt, the sale of any
operating assets, or any other transaction to manage our liquidity,
could result in temporary or permanent downgrades of our credit
ratings."
Fourth Quarter Summary
* Net sales of $73.9 million for the fourth quarter of 2019,
compared to $94.7 million for the fourth quarter of 2018.
* Net loss of $27.7 million for the fourth quarter of 2019 (or
$18.0 million adjusted for non-cash write-down), compared to
$13.0 million for the fourth quarter of 2018.
* Adjusted EBITDA(1) of $7.2 million for the fourth quarter of
2019, compared to $25.1 million for the fourth quarter of 2018
which include adjustments for certain legal fees incurred in
both periods ($3.8 million and $1.8 million in 2019 and 2018,
respectively).
* 91% average ammonia on-stream rate for the full year of 2019
versus 89% for the full year of 2018.
* Completed an extensive turnaround at the Company's Pryor
facility including the installation of a new, larger urea
reactor and the installation of a new, larger sulfuric acid
converter at its El Dorado facility.
"Our fourth quarter capped off a year of significant progress and
challenges for LSB," stated Mark Behrman, LSB Industries' president
and CEO. "Net sales and adjusted EBITDA were down relative to the
same quarter last year due to weaker selling prices for both our
agricultural and industrial products as well as lower overall sales
volumes resulting primarily from an extensive planned turnaround at
our Pryor facility and several unplanned outages, partially offset
by lower natural gas prices."
"Pricing was down for all of our major agricultural product
categories during the fourth quarter reflecting a combination of
factors including the continued oversupply of ammonia in our
primary end markets, increased imports of some of our downstream
products, and a late U.S. corn harvest which resulted in weaker
than expected fertilizer demand for fall application."
Mr. Behrman continued, "Regarding our plant operations, during the
fourth quarter, we completed an extensive turnaround at our Pryor
facility and made upgrades to our El Dorado facility that we expect
to enhance their reliability and production volume going forward.
Ammonia on-stream rates across our three facilities averaged 91%
for 2019, which was below our expectations but was a continuation
of our three-year trend of steady performance improvement and was
an increase of more than 10 percentage points from 2016. We have
seen good progress from our multi-faceted approach to increasing
the reliability of our operations thus far and expect continued
improvement in 2020 as we work to reach our long-term goal of 95%
annual ammonia on-stream rates."
"With respect to our outlook for 2020, we anticipate that
agricultural and industrial selling prices for the first six months
will continue to be impacted by the aforementioned factors
impacting the agricultural market coupled with excess ammonia
inventories weighing on the industrial market pricing. We do,
however, expect to deliver significant increases in net sales and
adjusted EBITDA for the year as we have no planned turnarounds this
year, and we expect to take advantage of the increased production
capacity of UAN and sulfuric acid that we added in
2019. Additionally, we have secured incremental sales
opportunities in our industrial and mining business. Collectively,
we project these factors will more than offset the challenging
pricing environment for our products. As previously mentioned, we
anticipate continued improvement in the operating performance of
our facilities as a result of the maintenance and upgrades we
completed in 2019. We also believe that demand from our
agricultural markets will improve given industry forecasts for
increased acreage of corn to be planted relative to 2019 allowing
us to take advantage of our expanded production capabilities." Mr.
Behrman concluded, "In short, while our fourth quarter results were
below our expectations headed into the period, we believe we have
positioned LSB to deliver strong improvement in EBITDA and cash
flow in 2020, which would be further enhanced by our ability to
leverage any strengthening in ammonia and fertilizer prices that we
anticipate will materialize during the year."
Financial Position and Capital Expenditures
As of Dec. 31, 2019, the Company's total cash position was $22.8
million. Additionally, the Company had approximately $42.1 million
of borrowing availability under its Working Capital Revolver giving
it total liquidity of approximately $65 million. Total long-term
debt, including the current portion, was $459.0 million at Dec. 31,
2019 compared to $425.2 million at Dec. 31, 2018. The increase in
long-term debt primarily relates to the issuance of $35 million of
additional Senior Secured Notes completed in the second quarter of
2019 which will be primarily used for margin enhancement projects.
The aggregate liquidation value of the Series E Redeemable
Preferred at Dec. 31, 2019, inclusive of accrued dividends of
$103.0 million, was $242.8 million.
Interest expense for the fourth quarter of 2019 was $12.1 million
compared to $11.1 million for the same period in 2018, and full
year 2019 interest expense was $46.4 million.
Capital expenditures were approximately $15.6 million in the fourth
quarter of 2019 and $36.1 million for the full year. For the full
year of 2020, total capital expenditures are expected to be between
$25 to $30 million, inclusive of margin enhancement capital.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/zSrNSh
LSB Industries
Headquartered in Oklahoma City, Oklahoma, LSB Industries, Inc. --
http://www.lsbindustries.com-- manufactures and sells chemical
products for the agricultural, mining, and industrial markets. The
Company owns and operates facilities in Cherokee, Alabama, El
Dorado, Arkansas and Pryor, Oklahoma, and operates a facility for a
global chemical company in Baytown, Texas. LSB's products are sold
through distributors and directly to end customers throughout the
United States.
* * *
As reported by the TCR on May 7, 2018, S&P Global Ratings raised
its corporate credit rating on Oklahoma City, Oklahoma-based LSB
Industries Inc. to 'CCC+' from 'CCC'. The outlook is stable. "The
upgrade reflects our view of the improvement in LSB's overall
operations for 2017 and the first quarter of 2018 and the completed
refinancing of its $375 million senior secured notes due August
2019, which eliminates near-term refinancing risks.
In November 2016, Moody's Investors Service downgraded LSB's
corporate family rating (CFR) to 'Caa1' from 'B3', its probability
of default rating to 'Caa1-PD' from 'B3-PD', and the $375 million
guaranteed senior secured notes to 'Caa1' from 'B3'. LSB's 'Caa1'
CFR rating reflects Moody's expectations that the combined
uncertainty over operational reliability and the compressed
margins, resulting from the low nitrogen fertilizer pricing
environment, could result in continued weak financial metrics for a
protracted period.
LUCKY'S MARKET: LM Acquisition Buying Assets 7 Stores for $3.7M
---------------------------------------------------------------
Lucky's Market Parent Co., LLC, and its affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to authorize the
bidding procedures in connection with the sale of assets related to
seven of their stores to LM Acquisition Co., LLC for $3.7 million,
subject to adjustments for prorations, subject to overbid.
Prior to the Petition Date, the Debtors engaged PJ Solomon as their
investment banker to conduct a prepetition marketing process for
substantially all of their assets. As a result of the prepetition
marketing process, they have identified a number of potential
purchasers for various of their assets. The Debtors identified at
least four potential purchasers that indicated interest in
non-overlapping packages of assets of the Debtors. They plan to
file at least three additional motions for the sales of the other
three packages of assets.
In addition to seeking to establish bid procedures for the four
proposed sales, the Debtors have also filed a motion to establish
store closing procedures and liquidate the assets not subject to
one of the proposed stalking horse bids. Finally, the Debtors will
market the remaining leases for sale that are not subject to any of
the aforementioned sales. The Debtors have retained PJ Solomon to
continue and complete the sale processes and to serve, subject to
court approval, as their investment bankers in these Chapter 11
Cases. The Debtors expect to retain other consultants to assist
with the liquidation of the remainder of the assets and leases.
As part of the proposed post-petition sale process, the Debtors and
their other professionals will continue to engage in the robust
marketing effort for their assets, which started well before the
Petition Date, by continuing to contact both financial and
strategic investors regarding a potential sale.
The key terms of the proposed transaction can be found in the
Stalking Horse Agreement.
The material terms of the Stalking Horse Agreement are:
a. Purchase Price: $3.7 million, subject to adjustments for
pro-rations
b. Assets: Defined in Section 2.2 of the Stalking Horse
Agreement
c. Leases Included: 1. Storeroom, 425 South College Avenue,
Fort Collins, Colorado; 2. Storeroom, 3170 W. New Haven Avenue,
West Melbourne, Florida; 3. Storeroom, 111 South Providence Road,
Columbia, Missouri; 4. Storeroom, 2770 North High Street, Columbus,
Ohio; 5. Pad Lease, 11620 Clifton Boulevard, Cleveland, Ohio; 6.
Storeroom, 3587 Marketplace Circle Traverse City, Michigan; 7.
Storeroom, 3960 Broadway #104 (Market), Boulder Colorado; 8.
Storeroom, 3980 Broadway # 106 (Café), Boulder, Colorado; 9.
Storeroom, 3990 Broadway (Bakehouse), Boulder, Colorado; 10.
Parking Lot, Boulder, Colorado
d. Assumed Liabilities: Subject to the terms and conditions
set forth in the Stalking Horse Agreement, effective as of the
Closing, Buyer will assume, pay and discharge the following
obligations of the Sellers related to the Assets.
e. Good Faith Deposit: $100,000
g. Relief from Bankruptcy Rule 6004(h): For cause shown,
pursuant to Bankruptcy Rules 6004(h), 6006(d), and 7062(g), the
Sale Order will not be stayed and will be effective immediately
upon entry, and the Debtors and the Purchaser are authorized to
close the Sale immediately upon entry of the Sale Order.
By the Motion, the Debtors ask the Court approves the following
general timeline, with the assumption the Bankruptcy Court will
enter an order granting the Motion on shortened notice. These
dates are subject to change in the event the Bankruptcy Court does
not enter an order at that hearing:
(a) Contract Cure Objection Deadline: No later than March 4,
2020 at 4:00 p.m. (ET)
(b) Bid Deadline: No later than March 9, 2020 at 4:00 p.m.
(ET)
(c) Qualified Bidder Deadline: By no later than March 10, 2020
at 4:00 p.m. (ET), the Debtors and their advisors will determine
which Bidders are Qualified Bidders and will notify such Bidders
whether Bids submitted constitute Qualified Bids so as to enable
such Qualified Bidders to attend the Auction.
(d) Auction: The Auction, if necessary, will be held at the
offices of Polsinelli PC, 222 Delaware Avenue, Suite 1101,
Wilmington, Delaware 19801 on March 11, 2020 at 10:00 a.m. (ET), or
such other location as identified by the Debtors after notice to
all Qualified Bidders.
(e) Stalking Horse Bid Objection Deadline: Objections to the
Sale of Assets to the Stalking Horse Purchaser will be filed and
served no later than 4:00 p.m. (ET) on March 6, 2020.
(f) Sale Objection Deadline: No later than 12:00 p.m. (ET) on
March 12, 2020
(g) Sale Hearing: March 13, 2020
The Debtors believe the timeline maximizes the prospect of
receiving the highest and best offer without unduly prejudicing
their estates.
The Bid Procedures were developed to permit an expedited sale
process, to promote participation and active bidding, and to ensure
the Debtors receive the highest or otherwise best offer for the
Assets. As such, they believe the timeline for consummating the
sale process established pursuant to the Bid Procedures is in the
best interest of their estates and all parties in interest.
The other salient terms of the Bidding Procedures are:
a. Initial Bid: A purchase price greater than the sum of (i)
the value of the Stalking Horse Agreement, as determined by the
Debtors in consultation with the Consultation Parties; and (ii) an
initial overbid of up to $250,000, consisting of the Expense
Reimbursement
b. Deposit: 10% of the Bid's proposed cash purchase price
c. Bid Increments: $250,000
d. Expense Reimbursement: Up to $250,000
To facilitate and effectuate the sale of the Assets, the Debtors
are asking authority to assign the Assigned Contracts to the
Successful Bidder to the extent required by such Successful Bidder.
They ask approval of certain procedures to facilitate the fair and
orderly assumption and assignment of the Contracts in connection
with the Sale. Pursuant to the Bid Procedures Order, notice of the
proposed assumption and assignment of the Contracts to the
Successful Bidder, the proposed cure amounts related thereto, and
the right, procedures, and deadlines for objecting thereto, will be
provided in separate notices, to be sent to the applicable Contract
Counterparties.
The Debtors submit it is appropriate to sell the Assets free and
clear of all Interests other than Permitted Encumbrances and
Assumed Liabilities (as such terms are defined in the Stalking
Horse Agreement), with any such Claims and Interests attaching to
the net sale proceeds of the Assets, as and to the extent
applicable.
To maximize the value received from the Assets, and to ensure they
are in compliance with the requirements of the Cash Collateral
Order, the Debtors ask to close the Sale as soon as possible after
the Sale Hearing. Accordingly, they ask the Court waives the
14-day stay periods under Bankruptcy Rules 6004(h) and 6006(d).
A copy of the Stalking Horse APA and Bidding Procedures is
available at https://tinyurl.com/qm6my4t PacerMonitor.com free of
charge.
About Lucky's Market
Lucky's Market Parent Company, LLC -- https://www.luckysmarket.com/
-- together with its owned direct and indirect subsidiaries, is a
specialty grocery store chain offering a broad range of grocery
items through the Company's "L" private label. Each of the
company's stores has full-service departments, which include
produce, meat, seafood, culinary, apothecary, beer and wine, and
grocery. In addition to the stores, the company operates a produce
warehouse in Orlando, Fla., to supply nearly all produce for its
Florida and Georgia stores.
Lucky's Market Parent and 21 of its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. Del. Lead Case No.
20-10166) on Jan. 27, 2020. At the time of the filing, the Debtors
were estimated to have $100 million to $500 million in assets and
$500 million to $1 billion in liabilities. The petitions were
signed by Andrew T. Pillari, chief financial officer. Judge John
T. Dorsey presides over the cases.
Christopher A. Ward, Esq. and Liz Boydston, Esq., of Polsinelli PC,
serve as counsel to the Debtors. Alvarez & Marsal acts as
financial advisor; PJ Solomon as investment banker; and Omni Agent
Solutions as notice and claims agent.
LUCKY'S MARKET: Selling Assets in Six Florida Stores for $7.8M
--------------------------------------------------------------
Lucky's Market Parent Co., LLC, and its affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to authorize the
bidding procedures in connection with the sale of assets related to
six of their stores located in Florida to Aldi Inc. for $7.8
million, subject to adjustments for prorations, subject to
overbid.
Prior to the Petition Date, the Debtors engaged PJ Solomon as their
investment banker to conduct a prepetition marketing process for
substantially all of their assets. As a result of the prepetition
marketing process, they have identified a number of potential
purchasers for various of their assets. The Debtors identified at
least four potential purchasers that indicated interest in
non-overlapping packages of assets of the Debtors. They plan to
file at least three additional motions for the sales of the other
three packages of assets.
In addition to seeking to establish bid procedures for the four
proposed sales, the Debtors have also filed a motion to establish
store closing procedures and liquidate the assets not subject to
one of the proposed stalking horse bids. Finally, the Debtors will
market the remaining leases for sale that are not subject to any of
the aforementioned sales. The Debtors have retained PJ Solomon to
continue and complete the sale processes and to serve, subject to
court approval, as their investment bankers in these Chapter 11
Cases. The Debtors expect to retain other consultants to assist
with the liquidation of the remainder of the assets and leases.
As part of the proposed post-petition sale process, the Debtors and
their other professionals will continue to engage in the robust
marketing effort for their assets, which started well before the
Petition Date, by continuing to contact both financial and
strategic investors regarding a potential sale.
The key terms of the proposed transaction can be found in the
Stalking Horse Agreement.
The material terms of the Stalking Horse Agreement are:
a. Purchase Price: $7.8 million, subject to adjustments for
prorations
b. Assets: Defined in Section 2.2 of the Stalking Horse
Agreement
c. Leases Included: 1. Storeroom Lease, 9184 Wiles Road, Coral
Springs, Florida; 2. Storeroom Lease, 3230 E. Colonial Drive,
Orlando, Florida; 3. Storeroom Lease, 1687 US-41 Bypass S., Venice,
Florida; 4. Pad Lease, 11601 Regency Village Drive, Orlando
(Vineland), Florida; and 5. Storeroom Lease, 3501 S. Tamiami Trail,
Sarasota, Florida.
d. Real Property Included: 1033 East Oakland Park Boulevard,
Fort Lauderdale, Florida
e. Assumed Liabilities: Subject to the terms and conditions
set forth in the Stalking Horse Agreement, effective as of the
Closing, Buyer will assume, pay and discharge the following
obligations of the Sellers related to the Assets.
f. Good Faith Deposit: $780,000
g. Relief from Bankruptcy Rule 6004(h): For cause shown,
pursuant to Bankruptcy Rules 6004(h), 6006(d), and 7062(g), the
Sale Order will not be stayed and will be effective immediately
upon entry, and the Debtors and the Purchaser are authorized to
close the Sale immediately upon entry of the Sale Order.
By the Motion, the Debtors ask the Court approves the following
general timeline, with the assumption the Bankruptcy Court will
enter an order granting the Motion on shortened notice. These
dates are subject to change in the event the Bankruptcy Court does
not enter an order at that hearing:
(a) Contract Cure Objection Deadline: No later than March 4,
2020 at 4:00 p.m. (ET)
(b) Bid Deadline: No later than March 9, 2020 at 4:00 p.m.
(ET)
(c) Qualified Bidder Deadline: By no later than March 10, 2020
at 4:00 p.m. (ET), the Debtors and their advisors will determine
which Bidders are Qualified Bidders and will notify such Bidders
whether Bids submitted constitute Qualified Bids so as to enable
such Qualified Bidders to attend the Auction.
(d) Auction: The Auction, if necessary, will be held at the
offices of Polsinelli PC, 222 Delaware Avenue, Suite 1101,
Wilmington, Delaware 19801 on March 11, 2020 at 10:00 a.m. (ET), or
such other location as identified by the Debtors after notice to
all Qualified Bidders.
(e) Stalking Horse Bid Objection Deadline: Objections to the
Sale of Assets to the Stalking Horse Purchaser will be filed and
served no later than 4:00 p.m. (ET) on March 6, 2020.
(f) Sale Objection Deadline: No later than 12:00 p.m. (ET) on
March 12, 2020
(g) Sale Hearing: March 13, 2020
The Debtors believe the timeline maximizes the prospect of
receiving the highest and best offer without unduly prejudicing
their estates.
The Bid Procedures were developed to permit an expedited sale
process, to promote participation and active bidding, and to ensure
the Debtors receive the highest or otherwise best offer for the
Assets. As such, they believe the timeline for consummating the
sale process established pursuant to the Bid Procedures is in the
best interest of their estates and all parties in interest.
The other salient terms of the Bidding Procedures are:
a. Initial Bid: A purchase price greater than the sum of (i)
the value of the Stalking Horse Agreement, as determined by the
Debtors in consultation with the Consultation Parties; and (ii) an
initial overbid of not less than $500,000, consisting of the sum of
the Expense Reimbursement and the Topping Fee
b. Deposit: 10% of the Bid's proposed cash purchase price
c. Bid Increments: $250,000
d. Expense Reimbursement: Up to $250,000
To facilitate and effectuate the sale of the Assets, the Debtors
are asking authority to assign the Assigned Contracts to the
Successful Bidder to the extent required by such Successful Bidder.
They ask approval of certain procedures to facilitate the fair and
orderly assumption and assignment of the Contracts in connection
with the Sale. Pursuant to the Bid Procedures Order, notice of the
proposed assumption and assignment of the Contracts to the
Successful Bidder, the proposed cure amounts related thereto, and
the right, procedures, and deadlines for objecting thereto, will be
provided in separate notices, to be sent to the applicable Contract
Counterparties.
The Debtors submit it is appropriate to sell the Assets free and
clear of all Interests other than Permitted Encumbrances and
Assumed Liabilities (as such terms are defined in the Stalking
Horse Agreement), with any such Claims and Interests attaching to
the net sale proceeds of the Assets, as and to the extent
applicable.
Finally, the Debtors ask the Sale Order be effective immediately
upon its entry by providing the 14-day stay under Bankruptcy Rules
6004(h) and 6006(d) be waived.
A copy of the Stalking Horse APA and Bidding Procedures is
available at https://tinyurl.com/tk74oxq PacerMonitor.com free of
charge.
About Lucky's Market
Lucky's Market Parent Company, LLC -- https://www.luckysmarket.com/
-- together with its owned direct and indirect subsidiaries, is a
specialty grocery store chain offering a broad range of grocery
items through the Company's "L" private label. Each of the
company's stores has full-service departments, which include
produce, meat, seafood, culinary, apothecary, beer and wine, and
grocery. In addition to the stores, the company operates a produce
warehouse in Orlando, Fla., to supply nearly all produce for its
Florida and Georgia stores.
Lucky's Market Parent and 21 of its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. Del., Lead Case No.
20-10166) on Jan. 27, 2020. At the time of the filing, the Debtors
were estimated to have $100 million to $500 million in assets and
$500 million to $1 billion in liabilities. The petitions were
signed by Andrew T. Pillari, chief financial officer. Judge John
T. Dorsey presides over the cases.
Christopher A. Ward, Esq. and Liz Boydston, Esq., of Polsinelli PC,
serve as counsel to the Debtors. Alvarez & Marsal acts as
financial advisor; PJ Solomon as investment banker; and Omni Agent
Solutions as notice and claims agent.
LUCKY'S MARKET: Selling Store Assets to Seabra for $1.25M
---------------------------------------------------------
Lucky's Market Parent Co., LLC, and its affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to authorize the
bidding procedures in connection with the sale of assets related to
one of their stores to Seabra Foods XIV, Inc. for $1.25 million,
subject to adjustments for prorations, subject to overbid.
Prior to the Petition Date, the Debtors engaged PJ Solomon as their
investment banker to conduct a prepetition marketing process for
substantially all of their assets. As a result of the prepetition
marketing process, they have identified a number of potential
purchasers for various of their assets. The Debtors identified at
least four potential purchasers that indicated interest in
non-overlapping packages of assets of the Debtors. They plan to
file at least three additional motions for the sales of the other
three packages of assets.
In addition to seeking to establish bid procedures for the four
proposed sales, the Debtors have also filed a motion to establish
store closing procedures and liquidate the assets not subject to
one of the proposed stalking horse bids. Finally, the Debtors will
market the remaining leases for sale that are not subject to any of
the aforementioned sales. The Debtors have retained PJ Solomon to
continue and complete the sale processes and to serve, subject to
court approval, as their investment bankers in these Chapter 11
Cases. The Debtors expect to retain other consultants to assist
with the liquidation of the remainder of the assets and leases.
As part of the proposed post-petition sale process, the Debtors and
their other professionals will continue to engage in the robust
marketing effort for their assets, which started well before the
Petition Date, by continuing to contact both financial and
strategic investors regarding a potential sale.
The key terms of the proposed transaction can be found in the
Stalking Horse Agreement.
The material terms of the Stalking Horse Agreement are:
a. Purchase Price: $7.8 million, subject to adjustments for
prorations
b. Assets: Defined in Section 2.2 of the Stalking Horse
Agreement
c. Leases Included: Storeroom Lease, 4169 Town Center
Boulevard, Orlando, Florida
d. Assumed Liabilities: Subject to the terms and conditions
set forth in the Stalking Horse Agreement, effective as of the
Closing, Buyer will assume, pay and discharge the following
obligations of the Sellers related to the Assets.
e. Good Faith Deposit: $100,000
f. Relief from Bankruptcy Rule 6004(h): For cause shown,
pursuant to Bankruptcy Rules 6004(h), 6006(d), and 7062(g), the
Sale Order will not be stayed and will be effective immediately
upon entry, and the Debtors and the Purchaser are authorized to
close the Sale immediately upon entry of the Sale Order.
By the Motion, the Debtors ask the Court approves the following
general timeline, with the assumption the Bankruptcy Court will
enter an order granting the Motion on shortened notice. These
dates are subject to change in the event the Bankruptcy Court does
not enter an order at that hearing:
(a) Contract Cure Objection Deadline: No later than March 4,
2020 at 4:00 p.m. (ET)
(b) Bid Deadline: No later than March 9, 2020 at 4:00 p.m.
(ET)
(c) Qualified Bidder Deadline: By no later than March 10, 2020
at 4:00 p.m. (ET), the Debtors and their advisors will determine
which Bidders are Qualified Bidders and will notify such Bidders
whether Bids submitted constitute Qualified Bids so as to enable
such Qualified Bidders to attend the Auction.
(d) Auction: The Auction, if necessary, will be held at the
offices of Polsinelli PC, 222 Delaware Avenue, Suite 1101,
Wilmington, Delaware 19801 on March 11, 2020 at 10:00 a.m. (ET), or
such other location as identified by the Debtors after notice to
all Qualified Bidders.
(e) Stalking Horse Bid Objection Deadline: Objections to the
Sale of Assets to the Stalking Horse Purchaser will be filed and
served no later than 4:00 p.m. (ET) on March 6, 2020.
(f) Sale Objection Deadline: No later than 12:00 p.m. (ET) on
March 12, 2020
(g) Sale Hearing: March 13, 2020
The Debtors believe the timeline maximizes the prospect of
receiving the highest and best offer without unduly prejudicing
their estates.
The Bid Procedures were developed to permit an expedited sale
process, to promote participation and active bidding, and to ensure
the Debtors receive the highest or otherwise best offer for the
Assets. As such, they believe the timeline for consummating the
sale process established pursuant to the Bid Procedures is in the
best interest of their estates and all parties in interest.
The other salient terms of the Bidding Procedures are:
a. Initial Bid: A purchase price greater than the sum of (i)
the value of the Stalking Horse Agreement, as determined by the
Debtors in consultation with the Consultation Parties; and (ii) an
initial overbid of up to $250,000, consisting of the Expense
Reimbursement
b. Deposit: 10% of the Bid's proposed cash purchase price
c. Bid Increments: $250,000
d. Expense Reimbursement: Up to $250,000
To facilitate and effectuate the sale of the Assets, the Debtors
are asking authority to assign the Assigned Contracts to the
Successful Bidder to the extent required by such Successful Bidder.
They ask approval of certain procedures to facilitate the fair and
orderly assumption and assignment of the Contracts in connection
with the Sale. Pursuant to the Bid Procedures Order, notice of the
proposed assumption and assignment of the Contracts to the
Successful Bidder, the proposed cure amounts related thereto, and
the right, procedures, and deadlines for objecting thereto, will be
provided in separate notices, to be sent to the applicable Contract
Counterparties.
The Debtors submit it is appropriate to sell the Assets free and
clear of all Interests other than Permitted Encumbrances and
Assumed Liabilities (as such terms are defined in the Stalking
Horse Agreement), with any such Claims and Interests attaching to
the net sale proceeds of the Assets, as and to the extent
applicable.
To maximize the value received from the Assets, and to ensure they
are in compliance with the requirements of the Cash Collateral
Order, the Debtors ask to close the Sale as soon as possible after
the Sale Hearing. Accordingly, they ask the Court waives the
14-day stay periods under Bankruptcy Rules 6004(h) and 6006(d).
A copy of the Stalking Horse APA and Bidding Procedures is
available at https://tinyurl.com/wlrwflq PacerMonitor.com free of
charge.
About Lucky's Market
Lucky's Market Parent Company, LLC -- https://www.luckysmarket.com/
-- together with its owned direct and indirect subsidiaries, is a
specialty grocery store chain offering a broad range of grocery
items through the Company's "L" private label. Each of the
company's stores has full-service departments, which include
produce, meat, seafood, culinary, apothecary, beer and wine, and
grocery. In addition to the stores, the company operates a produce
warehouse in Orlando, Fla., to supply nearly all produce for its
Florida and Georgia stores.
Lucky's Market Parent and 21 of its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. Del., Lead Case No.
20-10166) on Jan. 27, 2020. At the time of the filing, the Debtors
were estimated to have $100 million to $500 million in assets and
$500 million to $1 billion in liabilities. The petitions were
signed by Andrew T. Pillari, chief financial officer. Judge John
T. Dorsey presides over the cases.
Christopher A. Ward, Esq. and Liz Boydston, Esq., of Polsinelli PC,
serve as counsel to the Debtors. Alvarez & Marsal acts as
financial advisor; PJ Solomon as investment banker; and Omni Agent
Solutions as notice and claims agent.
MALLINCKRODT PLC: Reports Strong Fourth Quarter and 2019 Results
----------------------------------------------------------------
Mallinckrodt plc, a global biopharmaceutical company, on Feb. 25
reported results for the three months and fiscal year ended Dec.
27, 2019. Unless otherwise noted, the three months and fiscal year
comparisons are to the prior year comparable period ended Dec. 28,
2018.
Net sales were $804.9 million in the quarter with diluted loss per
share of $13.76, primarily driven by $1.643 billion in expense
associated with the agreement in principle pertaining to a global
opioid resolution, partially offset by a $377.4 million gain on
debt extinguishment. Adjusted diluted EPS was $2.40 versus $2.18,
an increase of 10.1%.
"We are pleased with the operating strength of the business as we
finished 2019," said Mark Trudeau, President and Chief Executive
Officer of Mallinckrodt. "Our hospital products had an exceptional
fourth quarter, as we anticipated, and the Specialty Generics
segment finished the year strong, marking its fourth consecutive
quarter of growth. Acthar(R) Gel performed largely in line with
our expectations given a challenging payer environment. We remain
focused on executing our long-term strategy for this product by
generating clinically meaningful data and exploring opportunities
to drive greater access for patients. At the same time, we
continue to advance our pipeline, including preparing for approval
submissions for terlipressin and StrataGraft(R) in the coming
months."
Mr. Trudeau continued, "Over the past year, it has been one of our
top priorities to remove three uncertainties impacting our business
-- opioid litigation, near-term debt maturities and the Acthar CMS1
matter. We are pleased that we now have what we believe to be a
clear path forward for resolving two of those: reaching an
agreement in principle on the terms of a comprehensive global
opioid resolution, and taking steps to strengthen our capital
structure by addressing near term maturities. While managing these
uncertainties, we remain focused on achieving our long-term vision
of becoming an innovation-driven biopharmaceutical company focused
on improving outcomes for underserved patients with severe and
critical conditions."
COMPANY FINANCIAL RESULTS
Fourth Quarter 2019 Results
Gross profit was $373.1 million with gross profit as a percentage
of net sales of 46.4%, compared with 43.5%, driven by inventory
step-up expense in the prior period and product mix. Adjusted
gross profit was $575.9 million, compared with $608.0 million, with
adjusted gross profit as a percentage of net sales of 71.5%,
compared with 72.8%, driven primarily by product mix.
Selling, general and administrative (SG&A) expenses were $169.2
million or 21.0% of net sales, as compared to $239.6 million, or
28.7%, driven primarily by legal settlement expenses in the prior
period and the change in the fair value of contingent
consideration. Adjusted SG&A expenses were $191.6 million or 23.8%
of net sales, compared with $212.2 million or 25.4%. Adjusted SG&A
expenses decreased due to ongoing focused efforts on SG&A
reductions.
Research and development expenses were $81.4 million or 10.1% of
net sales, as compared to $100.4 million or 12.0%, due to the
completion of certain development programs.
As a result of the agreement in principle for a global opioid
resolution, the company recorded a $1.643 billion expense
attributed to the anticipated structured cash payments under the
settlement agreement and the anticipated warrants to purchase
ordinary shares at $3.15 per share representing approximately
19.99% of the company's fully diluted outstanding shares, including
after giving effect to the exercise of the warrants.
The company recorded $274.5 million in non-recurring impairments in
the quarter, related to its VTS-270 in-process research and
development intangible asset; as compared to $3.891 billion in the
prior year, which was primarily attributed to the goodwill
impairment.
Interest expense was $77.2 million as compared to $90.1 million, a
reduction of 14.3%, driven by our continued focus on deleveraging.
Income tax benefit was $327.7 million, for an effective tax rate of
22.0%. The adjusted effective tax rate was 15.5%.
Fiscal Year 2019 Results
Net sales were $3.163 billion, compared with $3.216 billion. The
decrease was primarily attributed to Acthar(R) Gel (repository
corticotropin injection), partially offset by strength in the
hospital products, AMITIZA(R) (lubiprostone) and the Specialty
Generics segment.
On a GAAP2 basis, net loss was $996.5 million, compared with $3.607
billion, with diluted loss per share of $11.88 compared to $42.94,
both periods impacted by significant one-time items with the opioid
agreement in principle liability in 2019 and the goodwill
impairment in 2018.
Adjusted net income was $747.5 million, compared with $682.2
million. Adjusted diluted EPS was $8.88 compared with $8.01, an
increase of 10.9%.
BUSINESS SEGMENT RESULTS
Specialty Brands Segment
Net sales for the segment in the fourth quarter 2019 were $611.4
million.
Acthar(R) Gel net sales were $232.6 million, a 17.8% decrease,
primarily driven by continued reimbursement challenges impacting
new and returning patients and continued payer scrutiny on overall
specialty pharmaceutical spending.
INOMAX(R) (nitric oxide) gas, for inhalation net sales were $143.8
million, an increase of 3.7%, or 3.8% on a constant-currency basis,
driven by strong customer demand for INOmax, partially offset by
increased competition in the market.
OFIRMEV(R) (acetaminophen) injection net sales were $111.8 million,
an increase of 28.2%, primarily due to significant
quarter-to-quarter order variability that is expected to continue
until loss of exclusivity.
Therakos(R) immunology platform net sales were $63.3 million, an
increase of 11.1%, or 11.3% on a constant-currency basis, primarily
due to the capture of new patients, and the conversion to the
Cellex device.
AMITIZA net sales were $50.9 million, down 21.2% due to lower
royalties in the U.S. due to an increasingly competitive
landscape.
Specialty Generics Segment
The segment reported fourth quarter net sales in 2019 of $193.5
million, an increase of 6.0%.
LIQUIDITY
Cash provided by operating activities in the fourth quarter was
$208.8 million, with free cash flow of $184.5 million. For the
year, operating cash flow was $742.9 million and free cash flow
$609.9 million.
The cash balance at the end of the year was $790.9 million, and the
revolving credit facility was fully drawn. During the fourth
quarter, the company executed a debt exchange offer, which reduced
total debt by $383.2 million. With this exchange offer, cash
generated from operations, and debt repurchased at a discount
earlier in the year, the company reduced net debt by $1.176 billion
in 2019, and ended the year with net debt of $4.632 billion.
In conjunction with announcing the agreement in principle for a
global opioid resolution, the company also announced that it has
entered into certain agreements relating to potential financing and
debt exchange transactions, which if implemented, will address
near-term debt maturities of the company.
About Mallinckrodt
Mallinckrodt plc (NYSE: MNK) -- http://www.mallinckrodt.com/-- is
a global business consisting of multiple wholly owned subsidiaries
that develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
Mallinckrodt reported $10.36 billion in total assets against $7.276
billion in liabilities as of Sept. 30, 2019.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued pharmaceutical companies for their role in
the opioid crisis in the U.S., which has contributed to the more
than 700,000 drug overdose deaths in the U.S. since 1999.
After reaching a $1.6 billion settlement with plaintiffs in opioid
multidistrict litigation that constitute 47 State and U.S.
Territory Attorneys General, Mallinckrodt plc announced Feb. 25,
2020, that its specialty generics-focused subsidiaries Mallinckrodt
LLC, SpecGx LLC and certain other affiliates will seek Chapter 11
protection to implement the settlement.
Latham & Watkins LLP, Ropes & Gray LLP and Wachtell, Lipton, Rosen
& Katz are serving as counsel, Guggenheim Securities LLC is serving
as investment banker and AlixPartners LLP is serving as
restructuring advisor to Mallinckrodt. Latham & Watkins LLP is
serving as counsel, AlixPartners LLP is serving as restructuring
advisor, and PJT Partners, Inc. is serving as investment banker to
Specialty Generics.
MARGIN HOLDINGS: Unsec. Creditors to Have 20.1% Recovery Under Plan
-------------------------------------------------------------------
Debtor Margin Holdings Ltd., LLC, filed with the U.S. Bankruptcy
Court for the District of New Jersey a Plan of Reorganization and a
Disclosure Statement.
Class 6 General Unsecured Nonpriority Claims, totaling $42,204,
will be paid a total of $8,500 over 60 months at 4.5% interest,
being $158.47 per month for 60 months. With total estimated
unsecured nonpriority claims of $42,204, this will result in an
estimated payment of 20.1% to the Class 6 creditors. These
payments will begin the 1st day of the third month next following
the Effective Date of the Plan(Month 1) and will end 59 months
later (Month 60). This class is impaired.
In this case, the Debtor is a New Jersey Limited Liability Company,
whose 100% owner is Mr. Samuel Ornstein, who is the sole equity
interest holder in this case. As all creditors are being paid 100%
in full in this case, Mr. Ornstein will retain his equity interest
in the Debtor.
The Plan will be funded by revenues from new capital financing for
the adaptive reuse and redevelopment project of a real estate site
in Somerset County, New Jersey which includes the debtor’s real
property, and from a new value capital contribution from the
Debtor’s principal in an amount sufficient to pay off the sums to
be paid to allowed Administrative Claims.
A full-text copy of the Disclosure Statement dated Feb. 6, 2020, is
available at https://tinyurl.com/uqbh9yg from PacerMonitor at no
charge.
The Debtor is represented by:
Thaddeus R. Maciag, Esq.
MACIAG LAW, LLC
475 Wall Street
Princeton, New Jersey 08540
Tel: (908) 704-8800
About Margin Holdings Ltd.
Margin Holdings Ltd. LLC operates as an investment holding company.
On July 15, 2019, Margin Holdings sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 19-23707). At
the time of the filing, the Debtor was estimated to have assets of
between $1 million and $10 million and liabilities of less than $1
million. The case is assigned to Judge Kathryn C. Ferguson.
Maciag Law, LLC, is the Debtor's legal counsel.
MICHAEL BONERT: U.S. Trustee Forms 5-Member Committee
-----------------------------------------------------
The Office of the U.S. Trustee appointed five creditors to serve on
the official committee of unsecured creditors in the Chapter 11
case of Michael and Vivien Bonert.
The committee members are:
(1) Capital Distribution Company, LLC
13930 Mica St.
Santa Fe Springs, CA 90670
Phone: (562) 404-4321
Email: djensen@capitalfoodco.com
(2) Coastal Carriers, LLC
120 Hammer Lane
Troy, MO 63379
Phone: (877) 848-8726
Email: jc@coastalcarriers.com
(3) D&W Fine Pack, LLC
777 Mark St.
Woodale, IL 60191
Phone: (260) 479-9700 x 1717
Email: wbromley@dwfp.com
(4) Graphic Packaging International
Jeff Ross
150 Riveredge Parkway, NW Suite 100
Atlanta, GA 30328
Phone: (770) 240-7954
Email: jeff.ross@graphicpkg.com
(5) Ingredion Inc.
Christopher Rankin
5 Westbrook Corp. Center
Westchester, IL 60154
Phone: (908) 575-6182
Email: chris.rankin@ingredion.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Michael and Vivien Bonert
Michael and Vivien Bonert sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-20836) on Sept. 12,
2019. The Debtors are represented by Alan W. Forsley, Esq.
MOONLIGHT AUTOMOTIVE: Grahams Buying Franklin Property for $320K
----------------------------------------------------------------
Moonlight Automotive, Inc., asks the U.S. Bankruptcy Court for the
Southern District of Indiana to authorize the private sale of the
commercial real estate located at 599 Earlywood Drive, Franklin,
Indiana to Scott A. Graham and Robin Michelle Graham for $320,000,
free and clear of liens, claims, interests and encumbrances.
The Debtor owns and operates as an automotive and truck repair
shop, including a machine shop to build diesel and gasoline
engines. It was originally located on the southside of
Indianapolis and later operated for some time in Greenwood, Indiana
before purchasing the Real Estate near the end of 2015. The Debtor
currently operates its business on the Real Estate.
On Jan. 3, 2020, the Debtor agreed to sell the Real Estate to the
Purchasers, as husband and wife, for $320,000. The parties have
executed their Real Estate Purchase Agreement. On Jan. 29, 2020,
the Debtor and the Purchasers entered into an Amendment to Real
Estate Purchase Agreement, whereby the parties clarified certain
terms of the sale.
The Purchasers and the Debtor have no prior relationship, however,
the Purchasers have agreed to lease the Real Estate back to the
Debtor so that the Debtor can continue to operate its business on
the Real Estate. The Purchasers' offer is contingent upon the
Debtor obtaining a final, non-appealable sale order in the case.
By the Sale Motion, the Debtor asks authority to sell the Real
Estate to the Purchasers free and clear of all liens, claims,
interests and encumbrances. The Purchasers also seeks an order
that they, as a result of the consummation of the purchasing the
Real Estate, will not be deemed a mere continuation or substantial
continuation of the Debtor, have not, de facto or otherwise, merged
with or into the Debtor or its affiliates, and do not constitute a
successor to the Debtor by reason of any theory or law of equity.
The Debtor asks authority to pay the Real Estate's proceeds
directly to the Debtor's secured lender, First Financial Bank
("FFB"), at closing subject to a $5,000 carve-out for the Debtor's
professionals and/or United States Trustee's fees. The Debtor
believes the Real Estate’s sale is in the best interest of the
estate and creditors.
The Debtor is obligated to FFB under a secured loan with a petition
date balance of approximately $330,000. FFB has perfected its
interest in the Real Estate by the recording of a mortgage dated
Dec. 17, 2015, and recorded Jan. 27, 2016, and by the recording of
a subsequent mortgage dated Nov. 28, 2016, and recorded Jan. 20,
2017. FFB also obtained a judgment against the Debtor and Gregory
M. Wilson on Sept. 23, 2019, in Superior Court 1 of Johnson County,
Indiana under cause no. 41D01-1904-MF-0000087.
The Debtor is obligated to the Huntington National Bank under a
secured loan with a petition date balance of approximately
$120,000. Huntington was not granted a lien on the Real Estate,
but Huntington also obtained a judgment against the Debtor in the
same lawsuit as FFB on Sept. 23, 2019. Huntington's interest in
the Real Estate is junior and inferior to the interest of FFB.
The Debtor is also obligated to the Indiana Department of Revenue
for sale taxes related to tax year 2018 in the approximate amount
of $10,000. In the latter part of 2018 and into 2019, the IDR
filed tax warrants against the Debtor in Johnson County, Indiana
under warrant numbers: 11847030; 11910420; 11924083; and 12072562.
IDR's interest in the Real Estate is junior and inferior to the
interest of FFB. The IDR filed a proof of claim in the case on
Dec. 20, 2019, and the IDR asserts a secured claim against the
Debtor in the amount of $2,892.
The Debtor is unaware of any parties other than FFB, Huntington and
IDR that might assert a lien, interest, or encumbrance in the Real
Estate.
FFB, Huntington, and IDR will be entitled to credit bid, however,
such bid must offer the Debtor value for the real estate and the
option to lease-back the property to the Debtor or some economic
value equivalent thereto. Any credit bid must be submitted to the
Debtor and FFB in writing and by a date set by the Court.
The Debtor did not formally market the Real Estate. It purchased
the Real Estate on Dec. 17, 2015, for $325,000, and the 2019
Johnson County, Indiana Tax Assessment reflects the Real Estate has
a value of $278,200. The Debtor submits that the Purchase Price is
equal to the fair market value. It submits no further marketing is
needed because the Purchase Price is equal to fair market value,
the Purchase Price is the result of arms'-length and good-faith
negotiations, and the Purchaser is not an insider.
The Debtor also asks that if no objections are filed or pending at
the time of hearing on the Sale Motion, that the Court waives the
14-day stay imposed by Rule 6004(h) of the Federal Rules of
Bankruptcy Procedure.
About Moonlight Automotive
Moonlight Automotive, Inc., operates as an automotive and truck
repair shop, including a machine shop to build diesel and gasoline
engines. The company sought Chapter 11 protection (Bankr. S.D.
Ind. Case No. 19-09172) on Dec. 16, 2019. The Debtor was estimated
to have under $500,000 in assets and under $1 million in
liabilities. Judge James M. Carr is assigned to the case. Hester
Baker Krebs LLC is the Debtor's counsel.
MURRAY METALLURGICAL: U.S. Trustee Forms 5-Member Committee
-----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 on Feb. 25, 2020, appointed
five creditors to serve on the official committee of unsecured
creditors in the Chapter 11 cases of Murray Metallurgical Coal
Holdings, LLC and its affiliates.
The committee members are:
1. Baker Hughes Oil Field Operations, LLC
Attn: Martin Craighead, Chief Executive Officer
17021 Aldine Wesfield Road
Houston, TX 77073
2. C & A Cutter Head, Inc.
Attn: Paul Campbell, President
212 Kendall Avenue
P.O. Box 1488
Chilhowie, VA 24319
3. IDC Industries, Inc.
Attn: Chris Mansur, General Counsel
18901 15 Mile Road
Clinton Township, MI 48035
4. Joy Global
Attn: Devlin Fronczek, Credit Analyst
2101 West Pike Street
Houston PA 15342-1154
5. United Central Ind. and Supply Co. LLC
Attn: Henry Looney, President
1241 Volunteer Parkway, Suite 1000
Bristol, TN 37620
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Murray Metallurgical Coal
Murray Metallurgical Coal Holdings and its subsidiaries are engaged
in the mining and production of metallurgical coal. Unlike thermal
coal, which is primarily used by the electric utility industry to
generate electricity, metallurgical coal is used to produce cok,
which is an integral component of steel production. Murray Met
primarily owns and operates two active coal mining complexes and
other assets in Alabama and West Virginia.
On Feb. 11, 2020, Murray Metallurgical Coal Holdings, LLC and five
affiliates each filed a voluntary Chapter 11 petition (Bankr. S.D.
Ohio Lead Case No. 20-10390). Murray Metallurgical was estimated
to have $100 million to $500 million in assets and liabilities as
of the bankruptcy filing.
Judge John E. Hoffman, Jr. oversees the cases.
The Debtors tapped Proskauer Rose LLP as legal counsel; Evercore
Group LLC as investment banker; and Alvarez & Marsal LLC as
financial advisor. Prime Clerk LLC, is the claims agent.
NIGHTGALLERIE LLC: Selling San Francisco Property for $450K
-----------------------------------------------------------
Nightgallerie, LLC, doing business as Mezzanine SF, seeks authority
from the U.S. Bankruptcy Court for the Northern District of
California to authorize the sale of the personal property on site
at its former music venue premises at 444 Jessie Street, San
Francisco, California, and certain of its intellectual property, to
San Frandisco, LLC for $450,000, pursuant to the terms of their
Business Purchase and Sale Agreement, subject to overbid.
The Debtor holds all legal and equitable interests in these
personal property, all of which is encumbered by the Liens:
a. All of the equipment, furniture, fixtures, furnishings,
point of sale system and other personal property (including all
assets to be listed thereon) and delivered to the Buyer's
possession immediately following the date of execution of the BPSA;
b. All of the Debtor's intellectual property assets in
connection with the Premises including but not limited to the
Debtor's database of all customer lists, email lists, consumer
information, social media, software or otherwise, copyrights, and
trademarks. Notwithstanding the foregoing, Debtor agrees to assign
the trademark "Mezzanine SF" back to the Debtor on Feb. 1, 2022.
The Debtor will maintain its current website, www.mezzaninesf.com,
however will immediately implement a Website Redirect where if
anyone types in or clicks on the original www.mezzaninesf.com URL
they will be taken to the website controlled by the Buyer. The
Website Redirect shell remain in place until Feb. 1, 2022.
c. Excluded assets from the sale will be separately listed in
an Exhibit to the BPSA as excluded, including the Debtor's sound
system, lighting system and video projection system;
d. All tenant improvements to the Premises owned by Debtor in
connection with the Debtor's leasing of the Premises, subject to
Landlord's rights therein;
e. The Debtor's possessory and occupancy rights in and to the
Premises, if any; and
f. The Type 48, on-sale general liquor license number 396909
issued by the California Department of Alcoholic Beverage Control
for the Premises; together with associated Type-58, 68 and 77 ABC
licenses.
The Debtor's alcoholic beverage inventory including wine, beer, and
spirits has been left at the Premises and will be purchased under a
separate agreement between the Buyer and the Debtor for a price to
be determined, subject to court approval.
The Debtor used its best efforts to market and sell the Subject
Property and has determined that the Buyer's purchase offer was and
is the best offer available. The Buyer intends to operate a music
venue at the Premises under a lease with the Debtor's former
landlord. Proceeds of the Sale will be paid to claimants under a
court-approved liquidating Chapter 11 plan, or the Debtor may move
to dismiss or convert the case to Chapter 7 post-sale.
Based on the foregoing and on the fact that the Debtor's Mezzanine
business is no longer operating on the Premises, it submits that
more time on the market would not be expected to generate a higher
price.
On Nov. 26, 2019, the Buyer made a written offer to purchase the
Subject Property, subject to Court approval, for $450,000 to be
paid as follows: (i) $23,500 deposit; and (ii) $427,500 in cash or
cash equivalent funds before the close of escrow.
The Sale is anticipated to close within 10 days following entry of
an order of the court approving the Sale. The Buyer is purchasing
the Subject Property "as-is," subject to a physical
inspection/physical condition contingency of the BPSA, with no
conditions or warranties except that Debtor does not have any
actual knowledge of any liens, security interests or claims against
the Subject Property other than the liens identified.
The Sale is subject to overbid. Specifically with respect to
overbids, subject to final review and approval by Buyer, parties
who overbid must post a deposit of good funds equal to 5% of their
purchase offer price, which offer price must be in the form
substantially the same as the Buyer's offer but at an amount at
least $10,000 higher than the Buyer's offer of $450,000.
Additional overbids will be accepted on the same terms, in
increments of not less than $10,000 each.
The Debtor and Mr. Rennie have certain prior connections with the
Buyer's principals but there are no actual or potential conflicts
of interest. The Buyer has separate counsel, Jacqueline Sabec,
Esq., of King, Holmes, Paterno & Soriano, LLP in Los Angeles, who
provided extensive input into the draft BPSA and continues to
represent the Buyer in the matter.
The Debtor proposes to sell the Subject Property free and clear of
these claims of Liens: (i) San Francisco Tax Collector,
2019-K739729-00 - $11,545; (ii) San Francisco Tax Collector,
2019-K743323-00 - $14,157; and (iii) EDD2, 20199K79672100001 -
$12,296.
The Debtor proposes to have all Sale proceeds remain in an
appropriate escrow or trust account until any dispute as to the
validity and/or amount of any Lien is resolved, other than
“ordinary course” related transactional costs necessary to
close the transaction, to wit: (i) sales tax, subject to possible
waiver - $2,000 (paid by the Debtor), (ii) escrow fee - $2,000
(split by the parties), and (iii) ABC transfer fees - $3,100,
subject to possible waiver (paid by the Debtor). The Debtor will
not be liable for any brokerage fees or other taxes related to the
Sale, including capital gains tax.
The Debtor asks waiver of the stay provision of Bankruptcy Rule
6004(h) so that the Sale may close as expeditiously as possible.
About Nightgallerie
Nightgallerie, LLC, owns and operates Mezzanine SF --
http://www.mezzaninesf.com/-- a music and entertainment venue
located at 444 Jessie Street San Francisco, CA 94103.
Nightgallerie, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 19-31066) on Oct. 9,
2019. The petition was signed by Deborah Jackman, owner/manager.
At the time of the filing, the Debtor was estimated to have $1
million to $10 million in assets and $500,000 to $1 million in
estimated liabilities. Judge Hannah L. Blumenstiel is assigned to
the case. The Law Offices of James Shepherd serves as the Debtor's
counsel. Mark Rennie Law Office, as special corporate and
litigation counsel
PEABODY ENERGY: Moody's Affirms Ba3 CFR & Alters Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service affirmed Peabody Energy Corporation's Ba3
Corporate Family Rating and revised the rating outlook to negative
from stable.
"Peabody's rating is threatened by weak industry fundamentals and
emerging access to capital issues driven by investors' ESG
concerns," said Ben Nelson, Moody's Vice President -- Senior Credit
Officer and lead analyst for Peabody Energy Corporation.
Affirmations:
Issuer: Peabody Energy Corporation
Probability of Default Rating, Affirmed Ba3-PD
Corporate Family Rating, Affirmed Ba3
Senior Secured Bank Credit Facility, Affirmed Ba3 (LGD3)
Issuer: Peabody Securities Finance Corporation
Senior Secured Regular Bond/Debenture, Affirmed Ba3 (LGD3)
Outlook Actions:
Issuer: Peabody Energy Corporation
Outlook, Changed To Negative From Stable
Issuer: Peabody Securities Finance Corporation
Outlook, Changed To Negative From No Outlook
RATINGS RATIONALE
Moody's expects that EBITDA will fall to about $450-500 million
(from $837 million in 2019) and the company will struggle to
generate free cash flow in 2020. Thermal and metallurgical coal
pricing fell sharply in 2019 with weak market conditions expected
to persist in 2020. Export thermal coal pricing is anticipated near
the lower bound of its medium term sensitivity range of $60-90 per
metric ton (Newcastle) and export metallurgical near the midpoint
of its range of $110-170 per ton (CFR Jingtang) in 2020. Credit
metrics likely will soften and become stretched for the rating,
including adjusted financial leverage moving toward 3.0x
(Debt/EBITDA). However, management responded aggressively in early
2020 with a series of actions to preserve cash, including scaling
back capital spending to $250 million in 2020, and it has a good
liquidity position. Peabody also reported $732 million of balance
sheet cash at 31 December 2019.
Moody's also believes that investor concerns about the coal
industry's ESG profile are intensifying and coal producers will be
increasingly challenged by intensifying access to capital issues in
the early 2020s. An increasing portion of the global investment
community is reducing or eliminating exposure to the coal industry
with greater emphasis on moving away from thermal coal. The
aggregate impact on the credit quality of the coal industry is that
debt capital will become more expensive over this horizon,
particularly in the public bond markets, and other business
requirements, such as surety bonds, which together will lead to
much more focus on individual coal producers' ability to fund their
operations and articulate clearly their approach to addressing
environmental, social, and governance considerations.
Moody's affirmed Peabody's Ba3 CFR based on expectations for: (i)
operational actions sufficient to avoid meaningful cash consumption
in 2020; (iii) meaningful progress towards reducing costs
associated with North Goonyella metallurgical coal mine and
potentially sell the asset; and (iii) move toward more conservative
financial policies in the medium term and take the actions
necessary to reduce debt levels. Management announced during its
fourth quarter earnings call that it would suspend its dividend to
shareholders, eliminate share repurchases, and reduce debt from
$1.3 billion reported on 31 December 2019. However, it returned
more than $1.6 billion of cash to shareholders over the past two
and a half years, including an acceleration of share repurchase
activity in the second half of 2019. The company's equity is
trading about 80% below peak levels and market capitalization has
fallen below $1 billion. The rating affirmation considers favorably
the company's business diversity compared to most rated coal peers
and greater ability to make operational and financial adjustments.
A potential joint venture with Arch Coal that would combine both
companies' western assets and generate meaningful cost-related
synergies is not fully incorporated into the rating because it has
not been approved by regulatory authorities.
The Ba3 CFR reflects a diverse platform of cost competitive assets
in Australia and the United States, balancing strong credit metrics
and cash flow generation in recent quarters with the inherent
volatility of the metallurgical and export thermal coal markets and
ongoing secular decline in the US thermal coal industry. Most of
the company's US thermal coal is sold to domestic utilities and all
the US-produced metallurgical coal is sold into the seaborne
market. Most of the company's coal produced in Australia is sold
into the seaborne thermal and metallurgical coal markets in Asia.
Despite the diversity of the company's operations, a sharp and
sustained decline in coal prices would have a meaningful impact on
the company's earnings and cash flow, albeit with some lag based on
contracted volumes. Like other rated coal producers, environmental
and social factors have a material impact on the company's credit
quality. The rating also takes into consideration that some mining
assets have less favorable operating prospects in the coming years
and, therefore, could be subject to more significant
reclamation-related spending over the rating horizon.
The negative outlook reflects expectations for weaker cash flow
generation in 2020 and uncertainties related to pending and
potential transactions. An upgrade is not likely given the inherent
volatility in the global metallurgical coal industry, ongoing
secular decline in demand for US thermal coal, and intensifying ESG
concerns. However, a material increase in scale and diversity,
combined with expectations for positive free cash flow generation
in a stressed pricing environment, could also have positive rating
implications. Moody's could downgrade the rating with expectations
for adjusted financial leverage above 3.0x (Debt/EBITDA), negative
free cash flow, substantive deterioration in liquidity, or further
intensification of ESG concerns that call into question the
company's ability to handle upcoming financing requirements.
Environmental, social, and governance factors have a material
impact on Peabody's credit quality. The company is exposed to ESG
issues typical for a company in the coal mining industry, including
increasing global demand for renewable energy that is detrimental
to demand for coal, especially in the United States and Western
Europe. From an environmental perspective the coal mining sector is
also viewed as: (i) very high risk for air pollution and carbon
regulations; (ii) high risk for soil and water pollution, land use
restrictions, and natural and man-made hazards; and (iii) moderate
risk for water shortages. Specific social issues with respect to
Peabody include the future operational status of the company's
North Goonyella metallurgical coal mine that is not operational
following a mine fire. The company is in the process of resuming
mining operations, but encountered delays with local authorities in
Queensland and announced that it will pursue a commercial process
for North Goonyella. Governance-related risks have increased early
2020 following an abandoned bond deal in late 2019, followed by
turnover in financial management, revision of financial policies,
and the company's announcement that it would nominate three
potential directors from an activist shareholder.
The SGL-2 Speculative Grade Liquidity Rating reflects its
expectation for good liquidity to support operations over the next
12-18 months. Peabody reported about $1.3 billion of available
liquidity at 31 December 2019, including $732 million of balance
sheet cash and availability under a $565 million revolving credit
facility and $250 million accounts receivables securitization
program. Both facilities are used to support letters of credit. The
liquidity rating will be challenged by two specific scenarios: (i)
potential need to obtain consent from bondholders to move forward
with a proposed joint venture with Arch Coal, which remains subject
to regulatory approvals; and (ii) a projected narrow cushion of
compliance under the first lien secured leverage ratio test in the
company's revolving credit facility. With a commercial process
underway for the North Goonyella mine, near-term alternative
sources of liquidity are potentially significant, though the amount
and timing of any proceeds remains uncertain.
Peabody Energy Corporation is a leading global pure-play coal
producer with coal mining operations in the US and Australia and
about 4 billion tons of proven and probable reserves. The company
generated $4.6 billion in revenues in 2019
The principal methodology used in these ratings was Mining
published in September 2018.
PETER CHARLES: Seeks to Hire Purcell Krug as Bankruptcy Counsel
---------------------------------------------------------------
Peter Charles Moore American Legion Post 910, Inc. seeks authority
from the U.S. Bankruptcy Court for Middle District of Pennsylvania
to hire Purcell, Krug & Haller 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.
Lisa Rynard, Esq., the firm's attorney who will be handling the
case, will charge $325 per hour. Paralegals and staff will be paid
$120 per hour.
Purcell Krug received a retainer of $10,000.
The firm can be reached through:
Lisa A. Rynard, Esq.
Purcell, Krug & Haller
1719 North Front Street
Harrisburg, PA 17102
Phone: (717) 234-4178
Email: lrynard@pkh.com
About Peter Charles Moore American
Legion Post 910 Inc.
Peter Charles Moore American Legion Post 910, Inc. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa.
Case No. 20-00451) on Feb. 7, 2020, listing under $1 million in
both assets and liabilities. Lisa A. Rynard, Esq., at Purcell,
Krug & Haller, is the Debtor's legal counsel.
PON GROUP: Selling Itasca Residential Townhouse for $238K
---------------------------------------------------------
Pon Group, LLC, asks the U.S. Bankruptcy Court for the Northern
District of Illinois to authorize the sale of the residential real
property located at 283 Bay Drive, Itasca, Illinois to Rahul A.
Parikh and Niraj Rami for $237,500.
The Debtor owns the Property, which is a residential townhouse.
The Property is subject to permitted title exceptions and general
taxes and assessments which are not yet due and payable. The
Property was also leased to an unaffiliated tenant, 2One Music,
LLC. The Lease has expired, and the Debtor has delivered a
statutory notice of termination of the Lease. The Debtor otherwise
contends that the estate has an immediate right to possession of
the Property.
The Debtor has been marketing the Property since prior to the
Petition date and continued to offer the Property for sale
throughout the case.
It has obtained a contract for the sale of the Property in the
amount of $237,500. The Debtor listed the property on the Multiple
Listing Service and believes that the Contract represents a fair
price for the Property. It believes that it has maximized the
value of the estate's assets by offering the Property for sale.
The Debtor will sell the Property in accordance with the Contract
and as approved by the Court. The Property will be sold free and
clear of all interests, liens, claims or encumbrances of any kind
or nature, including any possessory interest of 2One, or any other
persons in possession of the Property.
The Debtor submits that the sale of the Property pursuant to the
Contract is in the Debtor’s best interests and should be
approved.
The Debtor is proposing to pay the net proceeds of sale to
Associated Bank in satisfaction of its "secured claim" created by
the 9019 Order Associated Bank. Thus, Associated Bank must be
deemed to have consented to the sale. Finally, any interest in the
Property of 2One LLC was terminated upon expiration of its lease,
and its interest is therefore subject to bona fide dispute. Based
upon the foregoing, the Debtor asks that the Court enters an order
approving the sale of the Property as described in the Motion and
its exhibits.
In addition, since it is obligated to deliver possession of the
Property at closing, the Debtor ask additional relief against the
former tenant, 2One and any persons in possession. Therefore, it
asks an order compelling 2One and any persons in possession of the
Property to surrender the Property immediately or face contempt
proceedings.
A hearing on the Motion is set for Feb. 26, 2020 at 9:30 a.m.
A copy of the Contract is available at https://tinyurl.com/vesw4hg
from PacerMonitor.com free of charge.
About Pon Group
Pon Group, LLC, is a lessor of real estate based in Bensenville,
Illinois.
Pon Group sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ill. Case No. 18-22505) on Aug. 9, 2018. In the
petition signed by Ketty Pon, member and manager, the Debtor
estimated assets of $1 million to $10 million and liabilities of $1
million to $10 million. Judge Benjamin A. Goldgar oversees the
case. BAUCH & MICHAELS, LLC, is the Debtor's counsel.
RAMBUTAN THAI: March 31 Disclosure Statement Hearing Set
--------------------------------------------------------
Debtor Rambutan Thai, a California corporation, filed with the U.S.
Bankruptcy Court for the Central District of California, Los
Angeles, a Disclosure Statement describing its Chapter 11 Plan
dated February 6, 2020.
A hearing has been scheduled on March 31, 2020, at 1:00 p.m.,
before the United States Bankruptcy Court for the Central District
of California, Los Angeles, Division, in the Courtroom 1568,
located at 255 East Temple Street, Los Angeles, California 90012,
to consider adequacy of the information contained in the Disclosure
Statement and to consider any other matter that may properly come
before the Court.
A copy of the notice dated February 6, 2020, is available at
https://tinyurl.comc/wl92qwk from PacerMonitor at no charge.
The Debtor is represented by:
Jeffrey S. Shinbrot, Esquire
JEFFREY S. SHINBROT, APLC
15260 Ventura Blvd., Suite 1200
Sherman Oak, CA 91403
Telephone: (310) 659-5444
Fax: (310) 878-8304
About Rambutan Thai
Rambutan Thai, A California Corporation, owns and operates a Thai
restaurant in Los Angeles. It filed for relief under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-16478) on June 1,
2019, listing under $1 million in both assets and liabilities.
Jeffrey S. Shinbrot, APLC represents the Debtor as counsel.
RELIABLE GALVANIZING: April 8 Plan & Disclosure Hearing Set
-----------------------------------------------------------
On Jan. 17, 2020, debtor Reliable Galvanizing Company filed with
the U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, a Plan of Liquidation and accompanying Disclosure
Statement. On Feb. 6, 2020, Judge LaShonda A. Hunt ordered that:
* March 27, 2020, is fixed as the last day for filing and serving
written objections to the Disclosure Statement.
* March 27, 2020, is fixed as the last day for filing ballots,
written acceptances or rejections of the Plan.
* April 8, 2020, at 10:15 a.m. in Courtroom 719, Dirksen Federal
Building, 219 South Dearborn Street, Chicago, Illinois is the
combined hearing to consider the approval of the Disclosure
Statement and to consider whether to confirm the Plan.
A full-text copy of the order dated Feb. 6, 2020, is available at
https://tinyurl.com/vn74yhr from PacerMonitor at no charge.
Counsel for the Debtor:
Jonathan D. Golding
The Golding Law Offices, P.C.
500 N. Dearborn St., 2nd Floor
Chicago, Illinois 60654
Tel: (312) 832-7885
Fax: (312) 755-5720
E-mail: jgolding@goldinglaw.net
About Reliable Galvanizing Co.
Reliable Galvanizing Company operates as an iron and steel metal
fabrication company. Serving the Midwest for over 35 years,
Reliable Galvanizing offers a process of corrosion protection
consisting of dipping steel into a bath of molten zinc producing a
progressive zinc and iron alloy layer on the surface.
Reliable Galvanizing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 18-29503) on Oct. 19,
2018. In the petition signed by Michael Eisner, president, the
Debtor disclosed $914,187 in assets and $1,022,052 in liabilities.
The case has been assigned to Judge LaShonda A. Hunt. The Debtor
tapped The Golding Law Offices, P.C., as its legal counsel.
RICKY TUCKER: Hires Weeks to Auction Equipment Property
-------------------------------------------------------
Ricky Clay Tucker and Ricky Wayne Tucker ask the U.S. Bankruptcy
Court for the Middle District of Georgia to authorize the sale of
pieces of equipment by public auction to be conducted by Weeks
Auction Group, Inc.
Respondent Summit Bridge National Investments IV, LLC may be served
via David A. Garland, Esq., its attorney of record, at Moore,
Clarke, DuVall & Rodgers, PC, PO. Drawer 71727, Albany, Georgia
31708-1727. Summit claims an interest in the Property pursuant to
deed(s) to secure debt as more particularly set out in Summit's
proofs of claim. Specifically, the Property may secure
indebtedness to Summit which is in excess of the value of the
Property.
On Jan. 20, 2020, the Debtors entered into an Agreement with Weeks
for the absolute public auction of the Equipment. The Contract
provides that Weeks will offer the Equipment for sale at an
absolute auction, with no minimums and no reserves, at one of its
auctions scheduled for Feb. 12, 2020, February 15, 2020, or March
11, 2020.
Weeks will auction all or a portion of the equipment the Debtor
listed on Exhibit 2. The auction will require cash from the buyer
at the time of closing and prior to pick-up of the equipment. The
auction will be an absolute auction, without reserve.
Weeks will be compensated by a 10% commission, which will be
calculated based on the high bidder's bid amount. It will also be
entitled to reimbursement for any hauling expenses incurred in
transporting the equipment to the auction(s).
Weeks is a qualified full service auction company that has been in
business since 1948. It has substantial experience in marketing
and selling farming and construction equipment, both nationally and
locally. Weeks is a licensed auctioneer and authorized to conduct
auctions in Georgia.
To the best of the Debtor's knowledge, WAG has had no connection
with Debtors, the Debtors' creditors, or any other
party-in-interest except as shown on the 2014 Verification of Mark
Manley. Neither WAG nor any of the individuals employed by WAG
represent any interest adverse to the Debtors or the Bankruptcy
Estates in the matters upon which they are to be engaged, and
WAG’s employment would be in the best interest of the Bankruptcy
Estates.
The Debtors ask the Court for an order:
a. authorizing the Debtors' auction of the Property in
accordance with the Contract, and authorizing and approving the
sale resulting from the auction, with all recorded liens, claims,
encumbrances, and other interests of any kind or nature whatsoever
on the Equipment of the Respondent being released and satisfied by
satisfaction or release of the applicable recorded instrument at
the conclusion of the auction and upon payment of the net proceeds
of the auction of the Equipment to the Respondent as its interests
appear (which such payment will be deemed to satisfy any resulting
lien of the Respondent);
b. authorizing disbursal of the proceeds of the sale as
follows: (i) pay all usual, customary, and reasonable costs
associated with the auction and sale as agreed by the parties to
the Contract (including, without limitation, a commission for Weeks
in accordance with the Contract); and (ii) pay to the Debtors, care
of their counsel at closing, 1% of the gross purchase price, with
such proceeds to be held in the trust account of the Debtors'
counsel and applied toward United States Trustee fees that are
anticipated to be generated from the distributions contemplated;
and (iii) pay to Summit its respective net proceeds from the
auction, with such
payment constituting the release amount for its liens or interests
in the Equipment;
(c) determining the value of the Property being sold securing
the liens;
(d) authorizing the employment of Weeks Farm Machinery
Auction, Inc., as their auctioneer for the proposed auction and
sale of the Equipment; and
(e) granting certain other relief as set forth.
Finally, the Debtors believe that moving forward with the auction
and closing the proposed sale of the Property at the earliest
possible date will enhance the value of the sale to creditors.
Therefore, they ask that the Court waives the 14-day stay of any
order approving the Motion pursuant to F.R.B.P. 6004(h).
A copy of the Auction Listing Contract is available at
https://tinyurl.com/s4afhnd from PacerMonitor.com free of charge.
Ricky Wayne Tucker and Ricky Clay Tucker sought Chapter 11
protection (Bankr. M.D. Ga. Case No. 18-70448) on April 19, 2018.
The Debtor tapped Christopher W. Terry, Esq., at Stone and Baxter,
LLP as counsel.
RIVERA BUSINESS: March 18 Plan Confirmation Hearing Set
-------------------------------------------------------
On Feb. 11, 2020, Judge Harlin DeWayne Hale conditionally approved
the First Amended Disclosure Statement regarding the Plan of
Reorganization filed by Debtor Rivera Business Solutions, Inc.
d/b/a Rivera Construction, and established the following dates and
deadlines:
* March 13, 2020, at 5:00 p.m., is the deadline for ballots for
accepting or rejecting the Plan.
* March 13, 2020, at 5:00 p.m., is fixed as the last day for
filing and serving written objections to confirmation of the Plan
and final approval of the Disclosure Statement.
* March 16, 2020, at 5:00 p.m., is the deadline for the Debtor to
file a summary of the ballots.
* March 18, 2020, at 2:00 p.m., before the Honorable Harlin D.
Hale, United States Bankruptcy Court, 1100 Commerce Street, 14th
Floor, Courtroom #3, Dallas, TX 75242 is the confirmation hearing.
A full-text copy of the order dated Feb. 11, 2020, is available at
https://tinyurl.com/vvlha7p from PacerMonitor at no charge.
The Debtor is represented by:
M. Jermaine Watson, Esq.
M. J. WATSON & ASSOCIATES, P.C.
325 N. Saint Paul Street, Suite 2200
Dallas, Texas 75201
Telephone: 214-965-8240
Facsimile: 214-999-1384
E-mail: jwatson@mjwatsonlaw.com
About Rivera Business Solutions
Rivera Business Solutions, Inc., d/b/a Rivera Construction, is a
privately held company in Garland, Texas that provides construction
and remodeling services. It sought Chapter 11 protection (Bankr.
N.D. Tex. Case No. 19-32652) on Aug. 7, 2019, in Dallas, Texas. In
the petition signed by Oscar Rivera, president, the Debtor was
estimated to have assets at $500,000 to $1 million, and liabilities
at $1 million to $10 million. Judge Harlin DeWayne Hale is assigned
the Debtor's case. M.J. Watson & Associates, P.C., represents the
Debtor.
RIVORE METALS: Storm Lake Buying Office Furniture for $2K
---------------------------------------------------------
Rivore Metals, LLC, asks the U.S. Bankruptcy Court for the Eastern
District of Michigan to authorize the sale of office furniture to
Storm Lake Capital, LLC for $2,000.
During the pendency of the case, the Debtor has determined in the
exercise of its business judgment to effectuate an orderly
liquidation of its assets for the benefit of the bankruptcy estate.
Along with its professionals, including its financial advisor, the
Debtor sought to maximize the return on the sale of its assets.
To that extent, the Debtor has determined that it has certain
office furniture that should be sold and is not necessary to the
continued liquidation of its other assets. Specifically, the
Debtor owns 40 chairs of various styles, 15 desks/workstations, and
1 large conference table, which it asks Court authority to sell by
way of the Motion.
The Debtor has received an offer of $2,000 from the Buyer to
purchase the Office Furniture, free and clear of all claims, liens
and encumbrances.
It is believed that PNC Bank, N.A., is the sole party with a
security interest in the Office Furniture. PNC Bank adequately
protected as its lien will transfer to the proceeds thereof.
Moreover, the Debtor has sent the Motion to any purported
lienholders. If such lienholders do not object to the proposed
Sale, then their consent should reasonably be presumed.
Accordingly, the Debtor requests that unless an entity asserting a
lien or encumbrance on any of the Office Furniture timely objects
to the Motion, such entity will be deemed to have consented to the
Sale.
About Rivore Metals
Rivore Metals, LLC -- http://www.rivore.com/-- is a metals
trading
and project management company with offices in the United States
and Canada offering full service trading operations to
international specialized markets for ferrous and non-ferrous scrap
metals.
Rivore Metals, LLC, filed a voluntary petition under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Mich. Case No. 19-53795) on Sept.
27, 2019. In the petition signed by Konstantinos C. Marselis,
president, the Debtor was estimated to have up to $50,000 in assets
and $1 million to $10 million in liabilities.
The case is assigned to Judge Thomas J. Tucker.
Charles D. Bullock, Esq. at Stevenson & Bullock, P.L.C., is the
Debtor's counsel.
The U.S. Trustee for Region 9 appointed a committee of unsecured
creditors on on Oct. 15, 2019.
ROGER L. HARMON: Stromberger Offers Chase County Property for $3.3M
-------------------------------------------------------------------
Roger Lee Harmon asks the U.S. Bankruptcy Court for the District of
Nebraska to authorize the sale of real property and irrigation
equipment to Stromberger Farms, Inc. for $3.25 million, free and
clear of all liens, taxes and encumbrances.
The real property is legally described as:
a. Tract 1 - Township 5 North, Range 40 West of the 6th P.M.,
Chase County, Nebraska, Section 15: SE ¼; together with a Zimmatic
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
b. Tract 2 - Township 6 North, Range 40 West of the 6th P.M.,
Chase County, Nebraska, Section 26: NW ¼; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
c. Tract 3 - Township 6 North, Range 40 West of the 6th P.M.,
Chase County, Nebraska, Section 26: NE ¼; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
d. Tract 4 - Township 7 North, Range 40 West of the 6th P.M.,
Chase County, Nebraska, Section 31: SW ¼; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
e. Tract 5 - Township 6 North, Range 40 West of the 6th P.M.,
Chase County, Nebraska, Section 6: NW ¼; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
f. Tract 6 - Township 6 North, Range 40 West of the 6th P.M.,
Chase County, Nebraska, Section 6: SW ¼; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
g. Tract 7 - Township 7 North, Range 41 West of the 6th P.M.,
Chase County, Nebraska, Section 25: SE 1/4; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well;
h. Tract 8 - Township 6 North, Range 41 West of the 6th P.M.,
Chase County, Nebraska, Section 1: NE 1/4; together with a Reinke
pivot, electric motor, control panel, liquid fertilizer tank,
underground wiring and well.
The Debtor and the Buyer have entered into an Agreement for the
sale of the Property. The Purchaser may have directly with the
Case is the Purchaser is a sister entity to Stromberger & Sons
Partnership, a Tenant and a Creditor of the Debtor.
The Debtor asks that it be allowed to complete the terms of the
Agreement; sell and convey the Property to the Purchaser as
provided in the Agreement; have the closing agent pay: first
closing costs, second pay all real estate, personal property and
occupational taxes related to the Property, pay all of the
remaining balance to the Secured Creditor, Rabo Agrifinance, Inc.,
now known as Rabo Agrifinance, LLC, to be applied to the
indebtedness owed to such Secured Creditor by the Debtor: first to
default interest at the rate of 8% per annum accrued between Nov.
1, 2018 and Jan. 21, 2020; second to accrued interest at the
contract rate of 3.92% to Nov. 1, 2018, third to accrued interest
from Jan. 21, 2020 to the date of closing at the rate of 6% per
annum, and fourth to principal; and convey title to the Property to
the Purchaser by Warranty Deed and Bill of Sale free and clear of
all liens, taxes and encumbrances.
The Debtor does not expect any tax consequences to arise from the
sale based upon the advice of is certified public accountant who
reviewed the Agreement and the identity of the Property to be sold,
the tax basis for the Property and advised that there is no
anticipated gain nor net taxable income arising from the sale.
While the proposed sale is substantial such sale does not encompass
all or substantially all of the assets of the Estate.
The proceeds of sale will be used to benefit Class 1, Rabo
Agrifinance, Inc. as set forth. The extent of the Debtor's
liabilities is as set forth on its Schedules filed which total
$10,996,434. The estimated net value of any of the remaining
assets not subject to the proposed sale based upon the Debtor's
Schedules filed herein is $7,452,867 ($12,652,867 - $5.2 million).
The business justification for disposing of assets prior to a Plan
being confirmed is necessary to accommodate the terms of the
proposed Purchaser and it is the customary time of year for such
sales and purchases of agricultural property.
A copy of the Agreement is available at https://tinyurl.com/t4a52ee
from PacerMonitor.com free of charge.
Roger Lee Harmon sought Chapter 11 protection (Bankr. D. Neb. Case
No. 19-40903) on May 24, 2019. The Debtor tapped Wayne E. Griffin,
Esq., at Wayne E. Griffin Law Office.
RTX SOLUTIONS: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The Office of the U.S. Trustee on Feb. 24, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of RTX Solutions, LLC.
About RTX Solutions
RTX Solutions, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Minn. Case No. 20-40149) on Jan. 20,
2020. 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 William J. Fisher oversees the case. Steven B.
Nosek, P.A is the Debtor's legal counsel.
RUBY'S FRANCHISE: March 25 Plan Confirmation Hearing Set
--------------------------------------------------------
A hearing was held on Jan. 23, 2020, at 11:00 a.m., before the
Honorable Catherine E. Bauer, United States Bankruptcy Judge for
the Central District of California, in the Courtroom 5D located at
411 West Fourth Street, Santa Ana, California 92701, on the Amended
Motion of Debtor Ruby's Franchise Systems, Inc. (RFS) for an order
approving Disclosure Statement and scheduling confirmation
hearing.
On Feb. 6, 2020, Judge Bauer ordered that:
* The Motion is granted.
* The Disclosure Statement and the Plan, as modified at the
hearing on the Motion, will be filed with the Court prior to the
date of the mailing of the Solicitation Packages with the notation
on the caption pages that these documents are the solicitation
versions.
* The Disclosure Statement, as modified, is approved for
disseminating.
* Feb. 26, 2020, by 4:00 p.m. is the deadline to file any
objection to the confirmation of the Plan.
* March 11, 2020, is the deadline to file replies to any
objection to confirmation of the Plan.
* March 25, 2020, at 10:00 a.m. is the Plan Confirmation
Hearing.
A copy of the order dated February 6, 2020, is available at
https://tinyurl.com/rxpazxu from PacerMonitor at no charge.
The Debtor is represented by:
Eric J. Fromme
Christopher J. Harney
Theodora Oringher PC
535 Anton Boulevard, Ninth Floor
Costa Mesa, California 92626-7109
Tel: 714-549-6200
Fax: 714-549-6201
E-mail: efromme@tocounsel.com
charney@tocounsel.com
About Ruby's Franchise
Ruby's Franchise Systems, Inc.--https://www.rubys.com/franchising--
is the creator of Ruby's Diner which serves burgers, hand-made
milkshakes, in addition to a wide selection of breakfast, lunch and
dinner entrees. Ruby's Diner operates across California, Nevada and
Texas.
Ruby's Franchise Systems filed its voluntary petition for relief
under chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
18-13324) on Sept. 6, 2018. In the petition signed by Doug
Cavanaugh, president, the Debtor was estimated to have up to
$50,000 in assets and $1 million to $10 million in liabilities.
Theodora Oringher PC, led by Eric J. Fromme, serves as general
bankruptcy counsel to the Debtor.
SALLY BEAUTY: S&P Affirms 'BB-' ICR; Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed its ratings on U.S.-based beauty supply
retailer and distributor Sally Beauty Holdings Inc., including the
'BB-' issuer credit rating on the company. The outlook is stable.
Sally Beauty's leverage improved after the adoption of the new
accounting standard, but its underlying creditworthiness is
unchanged.
Sally Beauty's adoption of the revised lease accounting standard
(ASC 842), which requires that off-balance sheet lease obligations
be capitalized on balance sheet, has led to a significant decrease
in its operating lease-adjusted debt.
The stable outlook reflects S&P's expectation for modest
improvement in credit metrics over the next 12 months, debt
repayment in excess of scheduled amortization, and stabilizing
performance trends. S&P also expects the company to generate
adequate FOCF in excess of about $210 million, which could be used
for additional debt prepayment.
"We could lower the rating if the company meaningfully
underperformed our expectations, such that we expected adjusted
funds from operations (FFO) to debt to decline to below 20%. Under
this scenario, consolidated comparable sales could decline in the
low- to mid-single-digit percentage area, possibly due to increased
competitive pressures, resulting in adjusted EBITDA margin
declining 300 bps or more beyond our base-case projection," S&P
said.
"Although unlikely in the next 12 months, we could consider raising
the rating if operating trends significantly improved, such that we
expected FFO to debt to increase to above 30%. Under this scenario,
the company would report consolidated comparable sales growth in
the low-single-digit percentage area, resulting in an adjusted
EBITDA margin expansion of 300 bps above our base-case projection,"
the rating agency said.
SARAI SERVICES: March 23 Plan Confirmation Hearing Set
------------------------------------------------------
Debtors Sarai Services Group, Inc., SSGWWJV LLC, and Sarai
Investment Corporation filed with the U.S. Bankruptcy Court for the
Northern District of Alabama, Northern Division, a Third Amended
Joint Disclosure Statement with respect to Debtors' Plan of
Reorganization dated February 6, 2020. Judge Clifton R. Jessup, Jr.
approved the Disclosure Statement and established the following
dates and deadlines:
* March 23, 2020 at 11:30 a.m. before the Honorable Clifton R.
Jessup, Jr. at the United States Courthouse, 400 Well Street,
Decatur, AL 35601 is the hearing on Confirmation of the First
Amended Joint Plan.
* March 16, 2020, by 12:00 p.m. is fixed as the deadline by
which the holders of claims and interests against the Debtors must
file ballots accepting or rejecting the First Amended Joint Plan.
* March 16, 2020, by 12:00 p.m. is fixed as the last day by
which creditors and parties in interest must file any objections to
confirmation of the First Amended Joint Plan.
* March 18, 2020, by 12:00 p.m. is the deadline for Debtors to
tabulate all acceptances and rejections of the First Amended Joint
Plan and file a Ballot Summary with the Court.
A full-text copy of the Disclosures Approval Order dated February
6, 2020, is available at https://tinyurl.com/utabq5v from
PacerMonitor at no charge.
About Sarai Services Group
Sarai Services Group, Inc., together with its subsidiaries, is a
privately-held company in Huntsville, Alabama, that specializes in
logistics, program management and information technology.
Sarai Services Group, SSGWWJV LLC, Sarai Investment Corporation and
CM Holdings, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ala. Case Nos. 18-82948 to 18-82951)
on Oct. 3, 2018. In the petitions signed by CEO James Mitchell,
each Debtor was estimated to have assets of $1 million to $10
million and liabilities of the same range. Judge Clifton R. Jessup
Jr. oversees the cases. Sparkman, Shepard & Morris, P.C., is the
Debtor's counsel.
SCIENCE APPLICATIONS: Moody's Affirms Ba2 CFR, Outlook Negative
---------------------------------------------------------------
Moody's Investors Service affirmed the Ba2 corporate family rating
and Ba2-PD probability of default rating for Science Applications
International Corporation, upgraded the first lien debt rating to
Ba1 (from Ba2), and assigned a Ba1 rating to the company's $600
million first lien term loan B and a B1 rating to its $400 million
issuance of senior unsecured notes. The speculative grade liquidity
rating remains unchanged at SGL-2, and the ratings outlook remains
negative.
According to Moody's lead analyst Bruce Herskovics, "Affirmation of
the Ba2 corporate family rating, despite the leveraging aspect of
the Unisys Federal acquisition, acknowledges the complementary
service capabilities that SAIC will gain along with better
potential for growth in the future." SAIC is buying the federal
contracting business of Unisys for $1.2 billion.
"SAIC has in the past held to its de-leveraging commitments
following large acquisitions, and we think that the company will
again do so within what should be a very supportive market for
defense services," added Herskovics.
RATINGS RATIONALE
The Ba2 corporate family rating recognizes SAIC's improving
business scale, profitability and contract/service diversity within
a rapidly consolidating defense services sector, but also factors
in very high financial leverage pro forma for the Unisys Federal
acquisition that will not normalize for two years. Moody's expects
that SAIC will generate $650 million of free cash flow over the
next two years and, in step with the company's public statements,
devote the vast bulk of it to debt repayment. Moody's expects
leverage pro forma for the Federal Unisys transaction will decline
from about 4.7x (Moody's adjusted basis) at closing to the mid-3x
range by the end of the fiscal year ending January 31, 2022.
The acquisition of Unisys Federal will benefit SAIC competitively,
giving it a fast-growing business line within the enterprise IT and
managed services segment of the federal sector where healthy
funding streams should exist. Large new contracts for network
modernization and managed IT services will come to market over the
next few years, and SAIC's ability to grow at or above market rates
has been partially constrained by the more narrow range of its
service offerings heretofore.
SAIC's past acquisitions have nonetheless helped the company to
raise its profit margins, and the Unisys Federal acquisition which
entails a high degree of fixed price-based contracts should sustain
that trajectory, with EBITDA margins increasing to about 10%, from
9%. Unisys Federal will also expand SAIC's presence within civilian
agencies, facilitating cross-selling opportunities and increasing
resilience against changed budgetary priorities in the future.
The added scale and qualifications should also lessen social risks
for SAIC, as sector consolidation has broadly raised competition
for skilled workers within the federal marketplace. Larger, more
diversified service organizations should be able to more easily
offer professional development opportunities that benefit employee
recruitment and retention.
The speculative grade liquidity rating continues at SGL-2, denoting
a liquidity profile that Moody's deems to be good. SAIC has
arranged a 364-day accounts receivable facility to raise $200
million of cash as a means to supplement the pending $1 billion
debt issuance that will fund the $1.2 billion Unisys Federal
acquisition. While the short-term nature of this line raises the
potential for working capital growth when the facility expires, the
free cash flow expected along with the company's unborrowed $400
million revolver continue to support the underlying liquidity
profile.
The upgrade of the first lien debt rating to Ba1 from Ba2, one
notch above the CFR, reflects the addition of effectively junior
unsecured notes that provide first loss protection and thereby
improved recovery prospects for bank credit facility lenders in a
stress scenario. The B1 rating assigned to the unsecured notes, two
notches below the CFR, reflects the likelihood of substantial loss
that these noteholders would incur in a stress scenario.
The negative rating outlook continues to reflect relatively limited
perceived room for error, with high leverage for the Ba2 CFR, a
modestly less robust liquidity profile, and recognition that SAIC's
organic revenue contraction of around 1.4% since its early-2019
acquisition of Engility has lagged peers. While Moody's expects
that the company will grow organically at about a 2% rate pro forma
for Unisys Federal, it may be unable to achieve this inflection
point on an inorganic basis, which in turn may encourage additional
acquisitions that could raise funded debt levels and/or prompt
additional stock repurchases on an accelerated basis that would
preclude anticipated debt repayments which underpin current
ratings.
Stabilization of the rating outlook would depend on Moody's
expectation of low single-digit percentage revenue growth, mid-3x
leverage in FY2022 with FCF/debt of 12% or higher.
Upward rating momentum would depend on mid-3x leverage along with
backlog gains that suggest SAIC's expanded scale/service
capabilities are resulting in improved market share. Along with the
foregoing, free cash flow-to-debt above 15%, EBITDA margin of 11%
and a good liquidity profile would be favorable for ratings.
Downward rating pressure would mount with backlog erosion, leverage
continuing above 4x, annual free cash flow below $250 million, or a
weaker liquidity profile.
The following is a summary of Moody's rating actions and ratings:
Affirmations:
Issuer: Science Applications International Corp.
Corporate Family Rating, Affirmed Ba2
Probability of Default Rating, Affirmed Ba2-PD
Upgrades:
Issuer: Science Applications International Corp.
Senior Secured Bank Credit Facility, Upgraded to Ba1 (LGD3) from
Ba2 (LGD3)
Assignments:
Issuer: Science Applications International Corp.
Senior Secured Bank Credit Facility, Assigned Ba1 (LGD3)
Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD5)
Outlook Actions:
Issuer: Science Applications International Corp.
Outlook, remains Negative
Science Applications International Corporation is a provider of
technical, engineering and enterprise information technology
services primarily to the US government, including the Department
of Defense and federal civilian agencies. FYE January 31, 2020
revenues, pro forma for the pending acquisition of Unisys Federal,
were about $7.1 billion.
The principal methodology used in these ratings was Aerospace and
Defense Industry published in March 2018.
SCOTT C. MARINE: Gets Interim Approval to Hire Gerdes as Counsel
----------------------------------------------------------------
Scott C. Marine Towing, LLC received interim approval from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to hire
Gerdes Law Firm, LLC as its legal counsel.
Gerdes Law Firm will advise the Debtor of its powers and duties in
the continued operation of its business and management of its
properties, and will provide other legal services in connection
with its Chapter 11 case.
The rate to be charged by Gerdes Law Firm is $250 per hour for
attorney services and $80 per hour for paralegal services.
Gerdes Law Firm received payments in the total amount of $11,600,
plus $1,717 for the filing fee.
Markus Gerdes, Esq., at Gerdes Law Firm, attests that the firm
neither holds nor represents an interest adverse to the Debtor's
bankruptcy estate.
The firm can be reached through:
Markus E. Gerdes, Esq.
Gerdes Law Firm, LLC
106 North Cypress Street
P.O. Box 2862
Hammond, LA 70404
Phone: (985) 345-9404
Fax: (985) 543-0434
Email: Markus@gerdeslaw.net
About Scott C. Marine Towing
Based in Slidell, La., Scott C. Marine Towing, LLC filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
E.D. La. Case No. 20-10293) on Feb. 6, 2020, listing under $1
million in both assets and liabilities. Markus E. Gerdes, Esq. at
Gerdes Law Firm, LLC, represents the Debtor as counsel.
SEMILEDS CORP: CEO Doan Has 14.2% Stake as of Dec. 31
-----------------------------------------------------
Trung T. Doan, chairman and the chief executive officer of SemiLEDs
Corporation, disclosed in a Schedule 13D filed with the Securities
and Exchange Commission that as of Dec. 10, 2019, he beneficially
owns 534,639 shares of common stock of the Company, which
represents 14.2 percent of the shares outstanding (based on the
3,594,640 shares of Common Stock outstanding as of Jan. 7, 2020
reported on the most recently filed periodic report on Form 10-Q of
SemiLEDs Corporation for the quarter ended Nov. 30, 2019).
On Dec. 10, 2019, the Issuer issued the Note to Mr. Doan with a
principal sum of $500,000 and an annual interest rate of 3.5%. The
outstanding principal and unpaid accrued interest of the Note may
be converted into the Issuer's Common Shares based on a conversion
price of $3.00 per share, at the option of the Reporting Person any
time from the date of the Note. The Reporting Person purchased the
Note using personal funds.
A full-text copy of the regulatory filing is available for free
at:
https://is.gd/ZBRASP
About SemiLEDs
Headquartered in Miao-Li County, Taiwan, R.O.C., SemiLEDs --
http://www.semileds.com/-- develops and manufactures LED chips and
LED components for general lighting applications, including street
lights and commercial, industrial, system and residential lighting,
along with specialty industrial applications such as ultraviolet
(UV) curing, medical/cosmetic, counterfeit detection, horticulture,
architectural lighting and entertainment lighting.
SemiLEDs reported a net loss of US$3.56 million for the year ended
Aug. 31, 2019, compared to a net loss of US$2.98 million for the
year ended Aug. 31, 2018. As of Nov. 30, 2019, the Company had
$12.74 million in total assets, $11.26 million in total
liabilities, and $1.48 million in total equity.
KCCW Accountancy Corp, in Diamond Bar, California, the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated Nov. 20, 2019, citing that the Company incurred
recurring losses from operations and has an accumulated deficit,
which factors raise substantial doubt about its ability to continue
as a going concern.
SIX FLAGS: S&P Puts 'BB' ICR on CreditWatch Negative
----------------------------------------------------
S&P Global Ratings placed all its ratings on Six Flags
Entertainment Corp., including the 'BB' issuer credit rating, on
CreditWatch with negative implications.
The CreditWatch listing reflects S&P's downwardly revised revenue
and EBITDA forecast for Six Flags. The company lowered its 2020
adjusted EBITDA guidance to $435 million-$465 million, as a result
of lower revenue from international development agreements, and
higher assumed wage and park investment costs. Six Flags cited a
recent reduction in attendance, slow season pass sales, elevated
park maintenance, and higher labor expenses for hurting operating
performance. In addition, the company said higher wage costs led
the parks to reduce marketing and other spending in 2019, which
negatively affected the guest experience and revenues. The company
plans to invest in operational improvements and marketing to
increase single-day and season pass visitation, as well as improve
the overall guest experience.
S&P plans to resolve the CreditWatch once it assesses whether the
company's incremental investments in its core business can halt
anticipated EBITDA margin erosion and possibly drive revenue and
cash flow. S&P will also consider the effect of increased EBITDA
volatility on business risks, and whether to tighten the 4x
downgrade threshold at the current 'BB' rating. The rating agency
will also address the possibility of future revenue and cost
variability in S&P's base-case forecast, the impact of the dividend
reduction to preserve liquidity on credit measures, and
management's policy commitment to its 3x-4x leverage range. S&P
will lower the ratings if it concludes the company cannot reduce
leverage under 4x over the next two years. It will also lower
ratings if it concludes business risks are heightened for a
prolonged period and it tightens the leverage threshold.
STAR CHAIN: Franchisor Buying Store FF&E for $90K
-------------------------------------------------
Star Chain, Inc., US Star 6, LLC, and US Star 41, LLC, ask the U.S.
Bankruptcy Court for the Northern District of Georgia to authorize
the private sale of Star 6 FF&E, the Star 41 FF&E and the Star
Chain Personal Property, as well as assets related to non-debtor
affiliate US Star 42, LLC to the Franchisor Captain D's, LLC for a
total purchase price of $90,000, free and clear of liens, claims,
and encumbrances.
On Jan. 3, 2020, the Court entered a consent order granting relief
from stay with respect to the locations previously operated by Star
6 under franchise agreements with Captain D's, LLC, in which the
Court authorized the Franchisor to terminate the franchise
agreements and subleases (among other agreements) related to the
Star 6 Locations and take over operations at those locations.
Subsequent to the entry of the Star 6 Stay Relief Order, McLane
Foodservice Distribution, Inc. contacted the counsel to the
Debtors, the Committee, Captain D's, and the Lender asserting
reclamation rights in the inventory transferred to Captain D's
pursuant to the Star 6 Stay Relief Order. In resolution of these
claims and to avoid the cost of litigating these claims, the
parties agreed that all funds transferred to the Debtors on account
of the Star 6 Inventory, which the Debtors and Captain D's
represent to be $9,786, would be transferred to McLane on account
of its reclamation rights upon resolution of any competing claims
by Lender or others. To that end, these funds have been segregated
by the Debtors and held for McLane pending resolution by the
Motion.
Similarly, on Jan. 21, 2020, the Court entered a consent order
granting relief from stay with respect to the locations previously
operated by Star 41 under franchise agreements with the Franchisor,
in which the Court authorized the Franchisor to terminate the
franchise agreements and subleases (among other agreements) related
to the Star 41 Locations and take over operations at those
locations. Similar to the Star 6 Stay Relief Order, the relief
addressed McLane's asserted reclamation rights in the inventory
transferred to Captain D's pursuant to the Star 41 Stay Relief
Order.
The Star 6 Locations and the Star 41 Locations contained certain
personal property belonging to the Debtors, primarily consisting of
furniture, fixtures, and equipment. In addition, Debtor Star Chain
owns certain furniture, fixtures, and equipment located at or
within a restaurant located at 4004 Highway 9, Boiling Springs,
South Carolina ("Boiling Springs Restaurant") or at a storage
building located at Simple Storage of Gaffney, 1114 West Floyd
Baker Boulevard, Gaffney, South Carolina, and a 2017 Nissan Altima
("Star Chain Personal Property").
The purchase price is to be allocated to the Debtor entities as set
forth:
a. The Franchisor will pay $27,500 to purchase the Star 6
FF&E (more specifically identified in the attached Asset Purchase
Agreement, Preliminary Statements, Paragraph D and the Agreement,
Section 1 Purchased Assets. Paragraph 1.1).
b. The Franchisor will pay $27,500 to purchase the Star 41
FF&E (more specifically identified in the attached Asset Purchase
Agreement, Preliminary Statements, Paragraph E and the Agreement,
Section 1 Purchased Assets. Paragraph 1.2).
c. The Franchisor will pay $5,000 to purchase all of US Star
42, LLC's title, right and interest in its tangible personal
property located at the Easily Restaurant, the Seneca Restaurant
and the Spartanburg Restaurant (as more specifically identified in
the attached Asset Purchase Agreement, Preliminary Statements,
Paragraph F and the Agreement, Section 1 Purchased Assets.
Paragraph 1.3).
d. The Franchisor will pay $30,000 to purchase the Star Chain
Personal Property (as more specifically described in the attached
Asset Purchase Agreement, Preliminary Statements, Paragraph G and
the Agreement, Section 1 Purchased Assets. Paragraph 1.4.).
In addition, the Franchisor has agreed to provide certain non-cash
consideration in the form of reduction of its claim amounts based
on certain seller financing notes:
a. The Franchisor's claim against Star Chain under Seller
Note #1 would be allowed as follows: (i) Seller Note #1's
outstanding principal balance of $519,499 as of the Petition Date
will be reduced to the sum of $142,736; (ii) the Franchisor's
claims under Seller Note #1 for accrued and unpaid interest of
$30,767 as of the Petition Date, late fees of $83,262 as of the
Petition Date, interest that has accrued between the Petition Date
and the Effective Date, interest that will continue to accrue after
the Effective Date, and attorney's fees and costs under Seller Note
#1 will be preserved to the fullest extent; and (iii) the
Franchisor's claims against Omer Casurluk, whether under a guaranty
instrument or otherwise, will also be preserved to the fullest
extent and it being the intent of the parties that the Franchisor
is reserving its right to collect or claim the entirety of the
indebtedness under Seller #1 as of the Effective Date from Omer
Casurluk notwithstanding the reduction of its claim against Star
Chain after the Effective
Date of the Asset Purchase Agreement; and
b. The Franchisor's claim against Star Chain under Seller
Note #2 would be allowed as follows: (i) Seller Note #2's
outstanding principal balance of $87,500 as of the Petition Date
will be reduced to $0; (ii) the Franchisor's claims under Seller
Note #2 for accrued and unpaid interest of $8,400 as of the
Petition Date, interest that has accrued between the Petition Date
and the Effective Date, and attorney's fees and costs under Seller
Note #2 will be preserved to the fullest extent; and (iii) the
Franchisor's claims against Omer Casurluk, whether under a guaranty
instrument or otherwise, will also be preserved to the fullest
extent and it being the intent of the parties that the Franchisor
is reserving its right to collect or claim the entirety of the
indebtedness under Seller #2 as of the Effective Date from Omer
Casurluk notwithstanding the reduction of its claim against Star
Chain after the Effective Date of the Asset Purchase Agreement.
The Debtors believe that there is sound business justification for
their decision to enter into the Asset Purchase Agreement and that
the granting of the Motion would be in the best interest of
creditors and the Debtor's estate.
Some or all of the Purchased Assets may be subject to a security
interest or lien in favor or Dallas Growth Capital and Funding,
LLC, a Texas limited liability company doing business as Sprout
Funding. Similarly, the Lender has not specified to what extent it
asserts rights with respect to the Star 6 Inventory and Star 41
Inventory and the Star 6 Inventory Funds and Star 41 Inventory
Funds.
The Debtors believe that the Lender will consent to the proposed
sale. They ask the Court to approve the Asset Purchase Agreement
as a private sale pursuant to Rule 6004(e) of the Bankruptcy
Rules.
The Debtors ask that the Sale Order be effective immediately by
providing that the 14-day stays applicable under Rule 6004(h) of
the Bankruptcy Rules be waived.
A copy of the Agreement is available at https://tinyurl.com/wqupg49
from PacerMonitor.com free of charge.
About Star Chain
Star Chain, Inc., is a Georgia-based company that operates as the
management company for all affiliated "US Star" debtors. The
affiliated "US Star" debtors operate approximately four dozen
restaurants with franchisors Captain D's, Checkers, Newk's, and
Yogli Mogli. The Debtors' membership interests are owned by the
same person, Omer Casurluk. The Debtors have common secured
creditors and are part of one business operation.
On Oct. 2, 2019, Star Chain, Inc., as Lead Debtor, and 26 other
affiliates sought Chatper 11 protection (Bankr. N.D. Ga. Lead Case
No. 19-65768) in Atlanta, Georgia. In the petition signed by Omer
Casurluk, manager, Star Chain, Inc., was estimated to have assets
at $1 million to $10 million, and liabilities at $10 million to $50
million. The Hon. Wendy L. Hagenau is the case judge. Wiggam &
Geer, LLC is counsel to the Debtors. Rountree Leitman & Klein,
LLC, is Wiggam & Geer's co-counsel.
STRUCTURED CABLING: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Structured Cabling Solutions, Inc.
5632 NW 161st St
Miami Gardens, FL 33014-6129
Case No.: 20-12551
Business Description: Structured Cabling Solutions, Inc. is
a telecommunications contractor in Miami
Gardens, Florida.
Chapter 11 Petition Date: February 26, 2020
Court: United States Bankruptcy Court
Southern District of Florida
Judge: Hon. Robert A. Mark
Debtor's Counsel: Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
330 N Andrews Ave Ste 450
Fort Lauderdale, FL 33301-1012
Tel: (954) 765-3166
E-mail: chad@cvhlawgroup.com
Total Assets: $944,176
Total Liabilities: $3,273,790
The petition was signed by Syed A. Shah, president.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/qPYdmn
STURDIVANT TAYLOR: UST Seeks April 3 Deadline for Plan & Disclosure
-------------------------------------------------------------------
David W. Asbach, Acting United States Trustee for Region 5 (UST),
filed an amended motion to set a deadline for filing a Disclosure
Statement and Plan of Reorganization for Ddbtor Sturdivant Taylor,
LLC.
On October 7, 2019, debtor Sturdivant Taylor, LLC, filed a
voluntary chapter 11 petition for relief. This case is
jointly-administered as the lead case with In re Building Blocks of
Madison Crossing Daycare and Learning Center, Inc., No.
19-03562-NPO. The Debtors are currently acting as the
debtors-in-possession in these cases.
There is no agreed scheduling order between the UST and the Debtors
in these cases.
The UST moves for an order setting an April 3, 2020, deadline by
which these Debtors must file a disclosure statement and a
confirmable plan of reorganization.
A full-text copy of the UST's motion dated Feb. 6, 2020, is
available at https://tinyurl.com/srm3o7v from PacerMonitor at no
charge.
About Sturdivant Taylor
Sturdivant Taylor, LLC owns and leases real property located at 243
Yandell Road, Canton, Miss., with a building located thereon leased
to Building Blocks of Madison Crossing Daycare and Learning Center,
Inc. where it operates a daycare.
Sturdivant Taylor and Building Blocks sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Lead Case No.
19-03561) on Oct. 7, 2019. At the time of the filing, Sturdivant
Taylor disclosed assets of less than $50,000 and liabilities of
less than $1 million.
The cases have been assigned to Judge Neil P. Olack. Hood & Bolen,
PLLC is the Debtors' legal counsel.
SUITABLE TECHNOLOGIES: Beam Maker Enters Chapter 11 to Pursue Sale
------------------------------------------------------------------
Suitable Technologies, Inc., which is winding down operations, has
sought bankruptcy protection to pursue a sale of substantially all
its assets.
Suitable Technologies, founded in 2011 by Scott Hassan, is a
privately held Delaware corporation headquartered in Palo Alto,
California, which historically focused on the development,
manufacturing, and sale of a telepresence system and technology
platforms in both domestic and international markets.
The Debtor's primary product is called "Beam", a telepresence
device designed to promote remote collaboration, provide
individuals with the ability to communicate remotely with others on
both a visual and audio basis, and move freely through a workplace
using the Company's manufactured devices and companion software.
Although it is continuing to wind down its operations and affairs,
the Debtor continues to maintain the servers as of the Petition
Date. In connection with the wind down of its operations and
affairs that began in December 2018, all remaining employees of the
Company were terminated. Several of the Company's key employees,
however, entered into agreements with the Company, pursuant to
which they continued to provide critical services to the Company as
independent contractors.
Since the Debtor's formation in 2011, Mr. Hassan has been, through
certain entities owned and controlled by him, including the DIP
Lender (as defined below), the Company's sole source of funding,
providing almost $92 million pursuant to documented promissory
notes. Aside from these obligations, the Debtor has no bank debt,
less than $1 million in unsecured (liquidated) trade debt, and
contingent liabilities arising from subscription service, warranty
and repair obligations tied to its products. Mr. Hassan owns and
controls, directly and through affiliated entities, over 50% of the
Debtor's stock.
Events Leading to Chapter 11
Asgaard Capital LLC's Charles C. Reardon, presently serving as CRO
of the Debtor, explains that Beam was invented to realize a simple
goal: allow employees to move freely through the workplace without
the cost and inconvenience of extensive travel. Unfortunately,
remote collaboration, whether within companies or customer-facing,
did not evolve in the manner the Debtor anticipated, and, in turn,
the demand for a telepresence system was slow to materialize.
As a result, the Debtor has never been profitable, and the Company
suffered operating losses exceeding $50 million between 2013 and
2018. As a result, the Debtor has always relied on Mr. Hassan to
fund its operations and affairs. As of Dec. 19, 2018, the Company
reported (on an unaudited basis) revenue of $3 million and net
income of negative $10.9 million for 2018, with over $91.5 million
in notes payable to Greenheart at that time.
Following these significant and continued losses, Greenheart
ultimately determined that it would no longer fund the continuing
operating losses of the Company. As a result, in December 2018,
the Company determined to wind down its operations, and attempted
to find a third party buyer. These options were balanced against a
desire, on behalf of Mr. Hassan and his executive team, to find a
buyer that would support the brand and the Company's customers,
whether as a going concern or during a wind-down process, by
maintaining the subscription service model and Beam's operating
servers described above. In furtherance of this, between December
2018 and May 2019, the Debtor initiated numerous discussions with
over a dozen prospective purchasers that the Debtor believed
maintained the capacity and industry wherewithal to, among other
things, sustain the servers. Mr. Hassan, through Greenheart,
continued to fund the Company's losses during this sale process.
In August 2019, at the conclusion of its sale efforts, the Company
entered into an Asset Purchase Agreement (the "Blue Ocean APA")
with Blue Ocean Robotics ApS and certain of its affiliates
(collectively, "Blue Ocean"), a Denmark based Beam distributor
interested in maintaining its customer relationships (and thus
certain of the Debtor's relationships) in the telepresence market,
for the sale of substantially all of the Debtor's assets (the "Blue
Ocean Sale"). Among other things, the Blue Ocean APA required Blue
Ocean to continue servicing certain Beam customers, and to assume
certain liabilities associated with the Debtor's business. Under
the Blue Ocean APA, Blue Ocean would not have acquired the
Company's patent assets pertaining to certain systems and methods
for wireless connectivity, but would have obtained a non-exclusive
license to use them.
Although the Blue Ocean APA, in the Company's business judgment,
presented the only viable offer for the Company's assets under the
circumstances, in November 2019, Mr. Hassan's spouse, in her
alleged capacity as a minority shareholder (as a result of the
Hassan Community Property Shares), commenced a civil action in the
Court of Chancery of the State of Delaware, styled Huynh v.
Hassanet al., Civil Action No. 2019-0893-JTL. In the Chancery
Court Action, Ms. Huynh asserts various breach of fiduciary duty
claims and other state law claims against Mr. Hassan -- as well as
certain aiding and abetting claims against Blue Ocean -- and
sought, among other things, a preliminary injunction to enjoin the
Blue Ocean Sale. On Dec. 13, 2019, in an oral ruling, Vice
Chancellor J. Travis Laster denied the Preliminary Injunction
Request because, among other things, he could impose an appropriate
equitable remedy under the circumstances if the Blue Ocean Sale, at
trial, did not meet the "entire fairness" standard by which it
would be evaluated under Delaware law. In doing so, however, the
Vice Chancellor expressed reservations about whether an appropriate
sale process -- one not constrained in timing and scope or by
personal requirements for bidding, such as maintaining the
Company's business and supporting its existing customers (however
laudable those requirements may be), and one in which the Company
retains professional advisors, such as an investment banker -- had
been undertaken to benefit all interested parties. Although the
Blue Ocean APA constituted an arm's-length, third-party
transaction, the Blue Ocean Sale ultimately did not close. As a
consequence, even though the Company and Mr. Hassan do not agree
with the reservations expressed by the Chancery Court in connection
with the ruling on the Preliminary Injunction Request, the Company
and Mr. Hassan determined to turn control of the Company over to an
independent chief restructuring officer, director, and
professionals to lead a process to maximize the value of all the
Company's assets, including its patents. It was at this point that:
(a) Asgaard Capital's Charles C. Reardon was appointed as CRO to
oversee (and later with Mr. Barliant) the Company's efforts to sell
its assets and wind down its affairs in a manner that preserves and
maximizes value for the benefit of all stakeholders; and (b) the
Company engaged restructuring counsel.
Sec. 363 Sale
After soliciting interest from eight investment banking and patent
broker firms, interviewing four candidates (each of whom submitted
detailed proposals) and carefully considering their credentials and
relevant experience, the Company retained Stout Risius Ross
Advisors, LLC, an experienced investment banker, to canvass the
market for interested buyers.
The Chapter 11 case was then initiated to effectuate a transparent,
orderly and efficient process to sell substantially all of the
Company's assets for the benefit of all stakeholders.
Prior to the Petition Date, Stout began to conduct meetings with
me, certain members of my team, and the Debtor's other professional
advisors regarding the Sale Process, and initiated the process of
assembling detailed marketing materials and related diligence
information for an electronic data room and a confidential
information memorandum. Stout will continue these efforts
subsequent to the Petition Date.
Given the nature of the Company's assets, which primarily consist
of the Debtor's intellectual property, brand, and remaining
equipment and inventory, the Debtor is confident that interested
parties will be able to assess the sale opportunity in an
expeditious and thorough manner, and the Company is pursuing a
value-maximizing transaction in the first approximately 160 days of
the Chapter 11 Case (i.e., August 4, 2020).
In furtherance of these efforts, consistent with the milestones
(collectively, the "DIP Financing Milestones") established by the
Debtor's proposed DIP Facility (as defined below), the Debtor will
be filing a motion seeking authority to proceed with a bidding and
auction process to consummate a sale or series of sales that the
Debtor expects will generate maximum value for the Debtor's assets.
To facilitate the Sale, the Debtor, in consultation with its
professional advisors, will develop certain customary bidding
procedures to preserve flexibility in the Sale Process, generate
the greatest level of interest in the Debtor's assets, and result
in the highest or otherwise best value for those assets. Among
other things, the Bidding Procedures will create an appropriate
timeline for the Sale Process, consistent with the DIP Financing
Milestones.
To enable the Debtor to fund the administration of the Chapter 11
Case and pursue the Sale Process, the Debtor, through me and its
other professionals advisors, solicited post-petition financing
proposals from certain parties, including Mr. Hassan. As a result
of those efforts, the Debtor was able to secure post-petition
financing from MagicHeart Investments, LLC, an entity owned and
controlled by Mr. Hassan, in the form of a $5.956 million secured
line of credit, as provided for in that certain
Debtor-in-Possession Credit and Security Agreement between the
Company and the DIP Lender.
The DIP Facility is secured by a lien on substantially all of the
Company's assets, and is a multi-draw term loan facility in the
amount of new funds up to $3.801 million. In the case of the
Interim Order, the Debtor seeks to borrow up to an aggregate
principal amount of $2.713 million. Upon entry of the Interim
Order, the DIP Credit Agreement rolls up an aggregate amount of the
Prepetition Secured Debt equal to the amount of the Prepetition
Secured 2020 Promissory Note (i.e., $1.655 million). And upon
entry of the Final Order, in addition to the Interim Roll-Up, the
DIP Credit Agreement will also roll up the aggregate amount of all
advances made on or after November 27, 2019 in connection with the
Prepetition Secured Debt Documents (i.e., an additional $500,000).
According to Mr. Reardon, access to the DIP Facility will provide
the Debtor with the liquidity necessary to administer the Chapter
11 Case and conduct the contemplated Sale Process. Without access
to the DIP Facility, the Debtor's ability to successfully prosecute
the Chapter 11 Case will be jeopardized, to the detriment of all of
the Debtor's stakeholders.
About Suitable Technologies
Headquartered in Palo Alto, California, Suitable Technologies, Inc.
-- https://www.suitabletech.com/ -- develops, manufactures, and
sells telepresence system and technology platforms in both domestic
and international markets. It also maintains an intellectual
property portfolio, which includes a number of different patents
associated with, among other things, wireless connectivity, as well
as trademarks in the United States and other foreign jurisdictions.
Its primary product is called "Beam", a telepresence device
designed to promote remote collaboration, provide individuals with
the ability to communicate remotely with others on both a visual
and audio basis, and move freely through a workplace using the
Company's manufactured devices and companion software.
Suitable Technologies, Inc., sought Chapter 11 protection (Bankr.
D. Del. Case No. 20-10432) on Feb. 26, 2020. The Debtor was
estimated to have $10 million to $50 million in assets and $50
million to $100 million in liabilities.
The Hon. Mary F. Walrath is the case judge.
The Debtor tapped Young Conaway Stargatt & Taylor, LLP as counsel;
and Stout Risius Ross Advisors, LLC, as investment banker. Asgaard
Capital LLC is the staffing provider and its founder, Charles C.
Reardon, is presently serving as CRO for the Debtor. Donlin,
Recano & Company, INC. is the claims agent.
SUITABLE TECHNOLOGIES: Case Summary & 7 Unsecured Creditors
-----------------------------------------------------------
Debtor: Suitable Technologies, Inc.
921 E. Charleston Road
Palo Alto, California 94303
Business Description: Headquartered in Palo Alto, California,
Suitable Technologies, Inc. --
https://www.suitabletech.com/ -- develops,
manufactures, and sells telepresence system
and technology platforms in both domestic
and international markets. The Debtor also
maintains an intellectual property
portfolio, which includes a number of
different patents associated with, among
other things, wireless connectivity, as well
as trademarks in the United States and other
foreign jurisdictions. The Debtor's primary
product is called "Beam", a telepresence
device designed to promote remote
collaboration, provide individuals with the
ability to communicate remotely with others
on both a visual and audio basis, and move
freely through a workplace using the
Company's manufactured devices and companion
software.
Chapter 11 Petition Date: February 26, 2020
Court: United States Bankruptcy Court
District of Delaware
Case No.: 20-10432
Judge: Hon. Mary F. Walrath
Debtor's Counsel: Robert F. Poppiti, Jr.
Robert S. Brady, Esq.
Michael R. Nestor, Esq.
Jaclyn C. Marasco, Esq.
Betsy L. Feldman, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 N King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
E-mail: rpoppiti@ycst.com
rbrady@ycst.com
mnestor@ycst.com
jmarasco@ycst.com
bfeldman@ycst.com
Debtor's
Provider of
Additional
Staff: ASGAARD CAPITAL LLC
Debtor's
Investment
Banker: STOUT RISIUS ROSS ADVISORS, LLC
Debtor's
Claims,
Noticing, &
Administrative
Agent: DONLIN, RECANO & COMPANY, INC.
https://www.donlinrecano.com/Clients/sti/Dockets
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Charles C. Reardon, chief restructuring
officer.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/KYbeZi
List of Debtor's Seven Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Morrison & Foerster LLP Professional $417,022
425 Market Street Payable
San Francisco CA 94105
Tel: 415-268-7000
Fax: 415-268-7522
Email: fgelat@mofo.com
2. Level 3 Communications Trade Payable $5,275
(aka CenturyLink)
PO Box 910182
Denver CO 80291-0182
Tel: 877-453-8385
Fax: 814-260-2423
Email: billing@level3.com
3. Equinix, Inc. Trade Payable $4,440
4252 Solutions Center
Chicago IL 60677-4002
Tel: 866-979-3749
Email: billing@equinix.com
4. TUV Rheinland North America Trade Payable $1,695
Box 392672
Pittsburgh PA 15251-9672
Tel: 203-426-0888
Fax: 203-426-4009
Email: info@tuv.com
5. Digital BH 800 LLC Trade Payable $1,387
4 Embarcadero Center STE 3200
San Francisco CA 94111
Tel: 855-955-2655
Fax: 415-275-5445
Email: ar@digitalrealty.com
6. American Registry for Internet Trade Payable $900
Numbers
PO Box 759477
Baltimore MD 21275-9477
Tel: 703-227-9886
Fax: 703-997-8708
Email: billing@arin.net
7. Airgas USA, LLC Trade Payable $175
PO Box 102289
Pasadena CA 91189-2289
Tel: 562- 627-3070
Email: wdiv.achbu@airgas.com
TBH19 LLC: Allowed to Continue Using Cash Collateral Through May 31
-------------------------------------------------------------------
Judge Vincent P. Zurzolo of the U.S. Bankruptcy Court for the
Central District of California authorized TBH19, LLC to use cash
collateral to pay all of the expenses set forth in the Budget for
the period through May 31, 2020.
The Alleged Secured Creditors, that are determined to have an
actual security interest in the Debtor's cash collateral, are
granted a replacement lien upon all post-petition assets of the
Debtor's estate (except any Avoidance Actions) to the extent of the
Debtor's use of cash collateral during the Budgeted Period, with
such replacement liens to have the same extent, validity and
priority, if any, as the Alleged Secured Creditors' lien upon the
Debtor's prepetition assets.
The Budget provides for a carve-out for Debtor's attorneys' fees in
the amount of $7,500 a month, which funds will not be paid until
the Court has entered an appropriate order regarding the same.
The Debtor must obtain a debit card for the payment of expenses
directly from the General (bank) Account of the
Debtor-in-Possession by Feb. 28, otherwise, the authorization to
use cash collateral will then immediately cease.
A copy of the Order is available at PacerMonitor.com at
https://is.gd/IZlQnd at no charge.
About TBH19 LLC
TBH19, LLC owns a single-family residential property located at
1011 N. Beverly Hills, Calif., having an appraised value of $125
million. The residence is considered one of the crowning
achievements of renowned architect Gordon Kaufmann and was built in
1927 for Milton Getz, executive director of the Union Bank & Trust
Company. TBH19 is managed by Lenard M. Ross.
TBH19 sought for Chapter 11 protection (Bankr. C.D. Cal. Case No.
19-23823) on Nov. 24, 2019. The Debtor disclosed total assets of
$125,042,955 and total liabilities of $75,126,312 as of the
bankruptcy filing. Judge Vincent P. Zurzolo oversees the case. The
Law Offices of Robert M. Yaspan, is the Debtor's legal counsel.
TENDERLEAF VILLAGE: Continued Hearing on Plan & Disclosures April 7
-------------------------------------------------------------------
Judge Jeffrey p. Norman has ordered that on April 7, 2020 at 9:30
a.m. is set as the continued hearing on final approval of the
disclosure statement filed by Tenderleaf Village, Inc., and for the
hearing on confirmation of the plan at the United States
Courthouse, 515 Rusk St.,Courtroom 403, Houston, Texas.
About Tenderleaf Village
Tenderleaf Village Inc. owns two business properties in Lufkin,
Texas,
with a total current value of $2.7 million. The company is a
tax-exempt entity (as described in 26 U.S.C. Section 501).
Tenderleaf Village filed a voluntary Chapter 11 petition (Bankr.
S.D. Tex. Case No. 19-31061) on Feb. 28, 2019. In the petition
signed by James Tran, director, the Debtor disclosed $2,833,076 in
assets and $1,923,273 in liabilities. The case has been assigned
to the Hon. Jeffrey P. Norman. Julie Mitchell Koenig, Esq., at
Cooper & Scully, PC, is the Debtor's legal counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
TIDE MILL: April 6 Hearing on Disclosure Statement Set
------------------------------------------------------
Judge Lori S. Simpson has ordered that a hearing to consider the
approval of the Disclosure Statement filed by Tide Mill LLC,
combined with the hearing of confirmation of the Plan of
reorganization, will be held in Courtroom 3D of the U.S. Bankruptcy
Court, U.S. Courthouse, 6500 Cherrywood Lane, Greenbelt, Maryland
20770, on April 6, 2020 at 10:00 a.m.
March 13, 2020 is fixed as the last day for filing and serving
written objections to confirmation of the Plan.
March 13, 2020 is fixed as the last day for filing written
acceptances or rejections of the Plan.
As reported in the Troubled Company Reporter, Tide Mill has
proposed a Plan of Reorganization that will be funded from proceeds
to be received from the refinancing or sale of the commercial real
property located in Charles County, Maryland and known as the Tide
Mill Resort.
A full-text copy of the Disclosure Statement dated Jan. 27, 2020,
is available a https://tinyurl.com/s6hzh4k from PacerMonitor.com at
no charge.
About Tide Mill LLC
Tide Mill LLC is a privately held company in Bowie, Maryland,
created for developing certain commercial real property located in
Charles County, Maryland.
Tide Mill LLC filed for Chapter 11 bankruptcy (Bankr. D. Md. Case
No. 19-22014) on Sept. 9, 2019. In the petition signed by James
Register, managing member, the Debtor was estimated to have up to
$50,000 in assets and $1 million to $10 million in liabilities.
The Hon. Wendelin I. Lipp oversees the case.
The Debtor is represented by:
Augustus T. Curtis, Esq.
COHEN, BALDINGER & GREENFELD, LLC
2600 Tower Oaks Blvd., Suite 103
Rockville, MD 20852
Tel: (301) 881-8300
Fax: (301) 881-8350
E-mail: augie.curtis@cohenbaldinger.com
TOUCHPOINT GROUP: Sells BP&E Business Unit to its Previous Owner
----------------------------------------------------------------
Pursuant to Touchpoint Group Holdings, Inc.'s stated strategy of
disposal of non-core businesses, the Company announced the sale of
Browning Productions & Entertainment, Inc. to its founder and
previous owner, William Browning.
Mark White, chief executive officer of Touchpoint, stated, "We are
pleased to announce the sale of BP&E to William. This sale allows
us to further concentrate resources and efforts on the further
expansion of our customer and fan base software application,
through our subsidiary Touchpoint Connect Limited. We wish William
all the best in his future endeavors."
"The Touchpoint app represents a new paradigm in how content is
delivered to subscribers. Importantly, this app provides content
providers, which can include sports teams, athletes, trainers, or
other celebrities and brands, with greater control over how and
when their content is delivered, in order to maximize fan
engagement, sponsorships, advertising and more. We look forward to
providing further updates on this platform and new revenue
opportunities under development."
About Touchpoint Group
Touchpoint Group Holdings Inc., formerly known as One Horizon
Group, Inc. -- http://touchpointgh.com/-- is a media and digital
technology acquisition and software company, which owns Love Media
House, a full-service music production, artist representation and
digital media business. The Company also holds a majority interest
in 123Wish, a subscription-based, experience marketplace, as well
as majority interest in Browning Productions & Entertainment, Inc.,
a full-service digital media and television production company.
Effective Sept. 26, 2019, the Company changed its corporate name
from One Horizon Group, Inc. to Touchpoint Group Holdings Inc.
One Horizon reported a net loss attributable to common stockholders
of $13.77 million for the year ended Dec. 31, 2018, compared to a
net loss attributable to common stockholders of $7.43 million for
the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company
had $5.91 million in total assets, $3.10 million in total
liabilities, $605,000 in temporary equity, and $2.20 million in
total stockholders' equity.
Cherry Bekaert LLP, in Tampa, Florida, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 15, 2019, citing that One Horizon has recurring losses and
negative cash flows from operations that raise substantial doubt
about its ability to continue as a going concern.
UNIFIED PROTECTIVE: Delays Plan to Resolve Unliquidated Claims
--------------------------------------------------------------
Unified Protective Services, Inc., requests that the current
deadline to file its Disclosure Statement and Plan be extended to
Aug. 3,2020.
This extension will provide unliquidated claimants time to move
forward with their state court cases in order to liquidate the
claims, and give claimants and the Debtor an opportunity to
amicably resolve the claims for bankruptcy purposes. Resolution of
the unliquidated claims will allow the Debtor to propose a
meaningful Plan and Disclosure Statement.
The disputed, contingent and unliquidated proofs of claim include:
Creditor Claim No. Claim Amount
-------- --------- ------------
Fabian Angulo Claim No. 9 $4,500,000
Joseph Frugard Claim No. 12 $4,500,000
John Martinez Claim No. 14 $5,000,000
Jesus Quintero Claim No. 10 $159,955
Shane Smith Claim No. 6 $22,430
A hearing on the motion will take place on March 3, 2020 at 1 p.m.
in Courtroom 1545 located at 255 E. Temple Street, Los Angeles,
California 90012.
Counsel for the Debtor:
MICHAEL JAY BERGER
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212-2929
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
E-mail: michael.berger@bankruptcypower.com
About Unified Protective
Unified Protective Services, Inc., is a security guard service
provider in Hawthorne, California. Its services include day and
night armed or unarmed security, vehicle security patrol, camera
surveillance and executive protection.
On June 1, 2019, Unified Protective Services sought Chapter 11
protection (Bankr. C.D. Cal. Case No. 19-16482). The Debtor was
estimated to have $500,000 to $1 million in assets and $1 million
to $10 million in liabilities as of the bankruptcy filing. The
Hon. Neil W. Bason is the case judge. The LAW OFFICES OF MICHAEL
JAY BERGER is the Debtor's counsel.
USA LANDS: Plan Projects "Significant Dividend" to Unsecureds
-------------------------------------------------------------
USA Lands, L.L.C., filed a Chapter 11 plan that involves a
re-structuring of the Debtor to allow for its continued operations.
The Debtor will liquidate the immovable property in an orderly
fashion and retain those properties that remain after payment of
all secured claims . From the properties retained the Debtor
believes it can generate sufficient funds to pay a significant
dividend to unsecured creditors.
The Debtor's principal assets consists of Immovable Property
located in Avoyelles & Rapides Parishes.
Class 5 Unsecured Claims are not impaired under the Plan.
A full-text copy of the Disclosure Statement dated Feb. 10, 2020,
is available at https://tinyurl.com/wpvleqp from PacerMonitor.com
at no charge.
Attorney for the Debtor:
THOMAS R. WILLSON
1330 JACKSON STREET
ALEXANDRIA, LOUISIANA 71301
Tel: (318) 442-8658
Fax: (318) 442-9637
E-mail: rocky@rockywillsonlaw.com
About USA Lands
U.S.A. Lands, L.L.C., is a limited liability company owned solely
by A. Dean Tyler. It was formed as a real estate holding company
and has continued to be operated as such. It has been operating in
the Central Louisiana area since that time.
USA Lands, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. La. Case No. 19-80784) on Aug. 20,
2019. At the time of the filing, the Debtor was estimated to have
assets of less than $50,000, and liabilities of between $100,001
and $500,000. The case is assigned to Judge Stephen D. Wheelis.
Thomas R. Willson, Esq., is the Debtor's legal counsel.
UTOPIX MEDICAL: Court Confirms Amended Plan of Reorganization
-------------------------------------------------------------
On Feb. 4, 2020, at 9:30 a.m., the U.S. Bankruptcy Court for the
Eastern District of Texas, Sherman Division, held a hearing to
consider confirmation of the Amended Disclosure Statement and Plan
filed by Debtor Utopix Medical, LLC.
On Feb. 6, 2020, Judge Brenda T. Rhoades ordered that:
* The Disclosure Statement filed by the Debtor on December 5,
2019, as amended on December 18, 2019, is finally approved.
* The Plan is approved and confirmed in its entirety.
* No objections to Confirmation of the Plan were filed, and any
informal creditor comments have been resolved by this Order.
* The Court authorizes the Debtor to consummate the Plan after
entry of this Confirmation Order. Subject to the occurrence of the
Effective Date, and notwithstanding any otherwise applicable.
* All necessary documents for the implementation of the Plan
shall be executed by all necessary parties in interest as of the
Effective Date, unless a different date is provided for in a
particular document under the Plan. The Court shall retain
jurisdiction to hear and determine disputes concerning the
drafting, finalization, and execution of any document required
under the Plan.
* All fees payable by the Debtor under 28 U.S.C. Sec. 1930 shall
be timely paid. In the event of Debtor’s failure to timely pay
any outstanding fees, the United States Trustee shall be authorized
to file a motion requesting the immediate dismissal of Debtor's
case for nonpayment of fees.
A full-text copy of the Order dated Feb. 6, 2020, is available at
https://tinyurl.com/vm8xd6u from PacerMonitor at no charge.
Counsel for Debtor:
Vickie L. Driver
Christina W. Stephenson
Christopher M. Staine
CROWE & DUNLEVY, P.C.
2525 McKinnon St., Suite425
Dallas, TX 75201
Telephone: 214.420.2163
Facsimile: 214.736.1762
E-mail: vickie.driver@crowedunlevy.com
christina.stephenson@crowedunlevy.com
christopher.staine@crowedunlevy.com
About Utopix Medical
Utopix Medical, LLC -- https://utopixmedical.com/ -- is an emerging
medical device company based in Texas. The Company has developed a
novel solution for unmet needs surrounding low mobility patients.
Utopix Medical, LLC, based in Frisco, TX, filed a Chapter 11
petition (Bankr. E.D. Tex. Case No. 19-41010) on April 15, 2019. In
the petition signed by CEO Taylor W. Hanes, the Debtor was
estimated to have $100,000 to $500,000 in assets and $1 million to
$10 million in liabilities. The Hon. Brenda T. Rhoades oversees the
case. Christina Walton Stephenson, Esq., at Crowe & Dunlevy, PC,
serves as bankruptcy counsel to the Debtor. Sheilds Legal Group,
is special counsel.
VALERITAS HOLDINGS: U.S. Trustee Forms 3-Member Committee
---------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed three creditors to
serve on the official committee of unsecured creditors in the
Chapter 11 cases of Valeritas Holdings, Inc. and its affiliates.
The committee members are:
1. Boston Analytical, Inc.
Attn: Jules Selden
14 Manor Parkway
Salem, NH 03079
Phone: 617-645-4197
2. Toll Global Forwarding (USA), Inc.
Attn: Bridget Liccardo
800 Federal Boulevard
Carteret, NJ 07008
Phone: 732-352-1602
3. Synergistix
Attn: Joe Cordasco
480 Sawgrass Corporate Parkway, Suite 200
Sunrise, FL 33325
Phone: 954-707-4200
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Valeritas Holdings
Valeritas Holdings, Inc. -- https://www.valeritas.com/ -- is a
commercial-stage medical technology company focused on improving
health and simplifying life for people with diabetes by developing
and commercializing innovative technologies.
Valeritas' flagship product, V-Go Wearable Insulin Delivery device,
is a simple, affordable, all-in-one basal-bolus insulin delivery
option for adult patients requiring insulin that is worn like a
patch and can eliminate the need for taking multiple daily shots.
V-Go administers a continuous preset basal rate of insulin over 24
hours, and it provides discreet on-demand bolus dosing at
mealtimes. It is the only basal-bolus insulin delivery device on
the market today specifically designed keeping in mind the needs of
type 2 diabetes patients.
Headquartered in Bridgewater, New Jersey, Valeritas operates its
R&D functions in Marlborough, Massachusetts.
Valeritas Holdings, Inc. and three affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 20-10290) on Feb. 9, 2020.
Valeritas Holdings disclosed $49.2 million in total assets and
$38.2 million in total debt as of Sept. 30, 2019.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped DLA Piper LLP (US) as legal counsel; Lincoln
International as investment banker; PricewaterhouseCoopers LLP as
financial advisor; and Kurtzman Carson Consultants LLC as claims
agent.
VARTEK LLC: April 2 Plan Confirmation Hearing Set
-------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, convened a hearing to consider approval of the Disclosure
Statement filed by debtor Vartek L.L.C.
On Feb. 4, 2020, Judge Catherine Peek McEwen conditionally approved
the Disclosure Statement and established the following dates and
deadlines:
* Any written objections to the Disclosure Statement shall be
filed with the Court no later than seven days prior to the date of
the hearing on confirmation.
* April 2, 2020, at 1:30 p.m. in Tampa, FL − Courtroom 8B, Sam
M. Gibbons United States Courthouse, 801 N. Florida Avenue is the
hearing on confirmation of the Plan.
* Written ballot accepting or rejecting the Plan no later than
eight days before the date of the Confirmation Hearing.
* Objections to confirmation will be filed with the Court no
later than seven days before the date of the Confirmation Hearing.
A full-text copy of the order dated Feb. 4, 2020, is available at
https://tinyurl.com/rmpy4wv from PacerMonitor at no charge.
About Vartek L.L.C.
Vartek, L.L.C. -- https://vartekllc.com/ -- is a privately owned
manufacturer of flexible PVC hose and tubing. It manufactures
reinforced hose and non-reinforced tubing products, and serves the
construction, industrial, irrigation, landscape, marine, medical,
pool, spa and waterscape markets. Vartek maintains a warehouse in
Tampa, Fla., and a warehouse in San Diego, Calif.
Vartek sought Chapter 11 protection (Bankr. M.D. Fla. Case
No.19-08083) on Aug. 26, 2019. In the petition signed by CRO
William A. Long Jr., the Debtor was estimated to have assets of $1
million to $10 million and liabilities of $10 million to $50
million. Judge Catherine Peek McEwen oversees the Debtor's case.
Stichter, Riedel, Blain & Postler, P.A., is the Debtor's legal
counsel.
VETERANS FELLOWSHIP: Plan Has 95% for Unsecured Creditors
---------------------------------------------------------
Veterans Fellowship Ministries, Inc., has proposed a reorganization
plan.
Veterans Fellowship Ministries is a non-profit 501(c)(3) Delaware
that is headquartered in Bear, Delaware and provides charitable
services to the various individuals and families that find
themselves in desperate straits. The Debtor's principal asset is
located at 3036-3040 N. 22nd Street, Philadelphia, Pennsylvania
19132. As of the Petition Date, the Debtor was using the
Philadelphia Property, a church which contains a sanctuary, office
space and conference rooms on the first floor, a full basement and
26 residential units on the second and third floor, for limited
charitable purposes.
The Debtor continues to make improvements to its Philadelphia
property and market its residential units to veterans and others.
At the same time, the Debtor is developing a number of other
complementary sources of income to (i) fund its Chapter 11 plan so
that the Debtor can continue to provide assistance to veterans and
others and its charitable services within the Philadelphia
property, its environs and Delaware and (ii) provide additional
services to those individuals while concomitantly creating cash
flow sufficient to fund the Debtor's ongoing operations, the Plan
and over time provide even more, additional services to individuals
and families in its community.
On January 20, 2020, an affiliate of the Debtor, Veterans Reset
Coalition, went online with a new radio station, WVRFradio.com,
based in the Philadelphia Property. The Debtor and its affiliate
are working with Dr. Janice Hollis of Hollis Media Group to promote
the radio station. Because the Debtor's affiliate is currently
operating the radio station without any employee expense, the radio
station should start producing a significant amount of income for
the Debtor in the short term. The Debtor has already received a
letter of intent from the All Dunn Advertising committing to do
commercial ad and program placement on WVRF Radio. The Debtor has
also received a letter of intent from "Do Something Positive"
committing to program placement on WV RF radio 3 days per week
commencing on February 10, 2010. Dr. Hollis has projected that the
Debtor's radio station could generate, at least, $293,120 on an
annualized basis.
The Debtor believes that the Plan should be confirmed, over the
alternative of the Debtor agreeing to convert Debtor's Case to
Chapter 7 of the Bankruptcy Code because (i) the Plan provides for
payment of 100 percent of the Allowed Claims, plus interest at the
rate of 9 percent, of (a) the City of Philadelphia Real Estate Tax
Claim and (b) Water Revenue Bureau and (ii) the Plan provides for
payment of the claims of 95% of the Allowed Claims of the Unsecured
Creditors Class.
As set forth in Article I of the Plan, the Record Holders of
Allowed Class XXXX General Unsecured Claims will receive 95 percent
of their Allowed Claim(s) in equal payments of, at least, over a
period of 60 months without interest. Philadelphia Gas Works filed
the only
general unsecured claim in the amount of $2,139.62.
A full-text copy of the Disclosure Statement dated Feb. 10, 2020,
is available at https://tinyurl.com/rmvtvdl from PacerMonitor.com
at no charge.
Counsel to Debtor:
Jeffrey M. Carbino
MONTGOMERY MCCRACKEN WALKER & RHOADS, LLP
1105 North Market Street
Wilmington, Delaware 19801
Telephone: (302) 504-7800
Facsimile: (215) 731-3778
About Veterans Fellowship Ministries
Veterans Fellowship Ministries Inc. is a non-profit 501(c)(3)
Delaware that is headquartered in Bear, Delaware and provides
charitable services to the various individuals and families that
find themselves in desperate straits. The Debtor's principal asset
is located at 3036-3040 N. 22nd Street, Philadelphia, Pennsylvania
19132.
Veterans Fellowship Ministries, filed a pro se voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Case No. 19-10857) on April 16, 2019, disclosing under $1 million
in both assets and liabilities. The Debtor later hired Montgomery
McCracken Walker & Rhoads LLP, as counsel.
VILLA ABRIGO: 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
Villa Abrigo at Celeste, LLC, according to court dockets.
About Villa Abrigo at Celeste
Villa Abrigo at Celeste, LLC, a privately held company based in
Delray Beach, Fla., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 20-10285) on Jan. 9,
2020. At the time of the filing, the Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range. Judge Erik P. Kimball oversees the case. The Debtor is
represented by Brian K. McMahon, Esq.
VIRGINIA TRUE: March 17 Hearing on Disclosure Statement
-------------------------------------------------------
On March 17, 2020 at 11:00 a.m., a hearing will be held before the
Honorable Nancy Hershey Lord, United States Bankruptcy Judge, at
the United States Bankruptcy Court for the Eastern District of New
York, 271 -C Cadman Plaza East, Courtroom 3577, Brooklyn, New York
11201, to consider the entry of an Order: (a) finding that the
Disclosure Statement filed on Feb. 7, 2020 by debtor Virginia True
Corporation relating to its proposed Chapter 11 Plan of
Reorganization, also filed on Feb. 7, 2020, contains "adequate
information" (b) approving the Disclosure Statement; and (c)
granting such other and further relief as is just and proper.
Objections, if any, to the entry of an Order approving the
Disclosure Statement must be filed and served not later than March
10, 2020 at 5:00 p.m.
Counsel to the Debtor:
Douglas J. Pick, Esq.
Eric C. Zabicki, Esq.
PICK & ZABICKI LLP
369 Lexington Avenue, 12th Floor
New York, New York 10017
Tel: (212) 695-6000
About Virginia True Corporation
Virginia True Corporation, a New York-based golf resort owner and
developer, sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 19-42769) on May 3, 2019. At the
time of the filing, the Debtor disclosed assets of between $10
million and $50 million and liabilities of the same range. Judge
Nancy Hershey Lord oversees the case. Pick & Zabicki LLP is the
Debtor's legal counsel.
WATSON GRINDING: U.S. Trustee Forms 7-Member Claimants Committee
----------------------------------------------------------------
The Office of the U.S. Trustee appointed in Watson Grinding and
Manufacturing Co.'s Chapter 11 case a committee to represent the
interests of persons and governmental units with monetary claims
arising out of the explosion that occurred at the company's
facility on Jan. 24.
The committee members are:
1. Travis Horton
10307 Lybert Road
Houston, Texas 77041
713-256-2725
greasemonk@hotmail.com
2. Massiel Nunez
10256 Sunwood Drive
Houston, Texas 77041
832-526-4604
cam@mcmillanfirm.com
3. Houston Corvette Service
Gordon Andrus
4406 Steffani Lane
Houston, Texas 77041
713-248-3228
houstoncorvetteservice@gmail.com
4. Margarita Flores
800 Commerce Street
Houston, Texas 77002
713-396-3964
maziz@awtxlaw.com
5. Phillip Burnam
10260 Cottage Field Rd
Houston, Texas 77041
281-989-2421
rzehl@zehllaw.com
6. Janette Thomas
4510 Stanford Court
Houston, Texas 77041
713-503-0648
janethomas@comcast.net
7. Gerardo Castorena, Jr.
1026 Helms Road
Houston, Texas 77088
(713) 363-0626
gerardobcast@gmail.com
About Watson Grinding & Manufacturing
and Watson Valve Services
Watson Grinding & Manufacturing Co. --
http://www.watsongrinding.com/-- provides precision machined
parts, thermal spray coatings and grinding services to companies in
the oil and gas, chemical, and mining industries.
Watson Valve Services, Inc., -- http://watsonvalve.com/-- is a
turn-key OEM manufacturer of severe service ball valves.
Additionally, Watson Valve provides hydrostatic and pneumatic
pressure testing; oxygen service cleaning; on-site and off-site
installation support and troubleshooting; valve dis-assembly,
analysis, repair, and rebuilding; actuation system mounting and
installation; CNC and manual machining; grinding; thermal spray
coatings; coatings analysis; and non-destructive testing.
Watson Grinding and Watson Valve sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Texas Case Nos. 20-30967 and
20-30968) on Feb. 6, 2020.
At the time of the filing, Watson Grinding disclosed assets of
between $10 million and $50 million and liabilities of the same
range. Watson Valve had estimated assets of between $10 million
and $50 million and liabilities of between $500,000 and $1
million.
Judge Marvin Isgur oversees the cases.
The Debtors tapped McDowell Hetherington, LLP and Jones, Murray &
Beatty, LLC, as their legal counsel.
WORLD AIRLINE SERVICES: Hires Susan D. Lasky as Legal Counsel
-------------------------------------------------------------
World Airline Services Limited received approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire Susan
D Lasky, 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 management of its financial affairs;
(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 the court;
(c) prepare legal documents; and
(d) represent the Debtor in negotiation with its creditors in
the preparation of a bankruptcy plan.
The firm agreed to represent the Debtor at a reduced rate of $400
per hour for attorney fees.
Prior to its bankruptcy filing, the Debtor paid the firm $2,500 for
its pre-bankruptcy services and $1,717 for the filing fee. The
firm also received $17,783 for its post-petition services.
The firm can be reached through:
Susan D. Lasky, Esq.
Sue Lasky PA
320 S.E. 18 St
Ft. Lauderdale, FL 33316
Phone: 954-400-7474
Fax: 954-206-0628
Email: Sue@SueLasky.com
About World Airline Services Limited
Based in Miami, Fla., World Airline Services Limited filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Fla. Case No. 20-10504) on Jan. 14, 2020. At the time of
filing, the Debtor estimated $50,000 in assets and $1,000,001 to
$10 million in liabilities. Judge Laurel M. Isicoff oversees the
case. Susan D. Lasky, Esq, at Susan D Lasky, P.A., is the Debtor's
legal counsel.
[*] Robert Rasmussen Joins Elkins Kalt's Bankruptcy Group
---------------------------------------------------------
Elkins Kalt Weintraub Reuben Gartside LLP on Feb. 25, 2020,
disclosed that Robert K. Rasmussen has joined the firm as
of-counsel in its Bankruptcy and Restructuring group.
One of the country's leading experts on bankruptcy law and
corporate reorganizations, Mr. Rasmussen is a professor at the USC
Gould School of Law and holds the J. Thomas McCarthy Trustee Chair
in Law and Political Science. At Elkins Kalt, Mr. Rasmussen will
advise clients in the areas of bankruptcy, commercial, secured
transactions and corporate reorganization law.
"We are thrilled to welcome Bob to Elkins Kalt," said Jeffrey
Reuben, one of the firm's founding partners. "Bob is one of the
foremost experts in bankruptcy law, and his depth of expertise and
experience will be invaluable in helping our clients navigate the
complex bankruptcy and corporate restructuring landscape. Bob is
well-known and highly respected in the bankruptcy and academic
fields, and he is a tremendous addition to our firm."
"I'm delighted to join the Elkins Kalt team," said Mr. Rasmussen.
"I look forward to contributing to the firm's growing bankruptcy
and corporate reorganization practice."
Mr. Rasmussen joined the USC Gould School of Law in 2007, serving
as dean from 2007 to 2015. He previously taught at Vanderbilt Law
School, and has been a visiting professor at the University of
Chicago and University of Michigan law schools. Prior to teaching,
Rasmussen clerked for the Honorable John C. Godbold, chief judge of
the United States Court of Appeals for the 11th Circuit, and worked
in the Civil Division Appellate Staff at the U.S. Department of
Justice, handling litigation in the U.S. Courts of Appeals and the
Supreme Court.
A widely-cited author and legal scholar, Mr. Rasmussen's work has
been published in some of the country's leading law journals,
including the Supreme Court Review, the University of Pennsylvania
Law Review, the Stanford Law Review, and the Yale Law Journal, and
his legal writings have played a role in shaping the jurisprudence
of his field.
Mr. Rasmussen received his J.D., cum laude, from the University of
Chicago Law School, where he was elected to the Order of the Coif,
and was the comment editor of the University of Chicago Law Review.
He received his BA, magna cum laude, from Loyola University of
Chicago.
Elkins Kalt Weintraub Reuben Gartside LLP is a full-service law
firm with a focus on exceptional client results. The firm's
expertise includes Real Estate and Finance, Land Use and
Environmental, Tax, Estate Planning, Bankruptcy and Restructuring,
Corporate, Securities, Hospitality and Leisure, Investment
Advisor/Broker-Dealer, Litigation, Employment and Labor, and Family
Law.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Shamokin Commons, LLC
Bankr. E.D.N.Y. Case No. 20-71041
Chapter 11 Petition filed February 18, 2020
See https://is.gd/47736d
represented by: Gary C. Fischoff, Esq.
BERGER, FISCHOFF, SHUMER, WEXLER &
GOODMAN, LLP
E-mail: hberger@bfslawfirm.com/
gfischoff@bfslawfirm.com
In re 1501 Medical, P.C.
Bankr. E.D.N.Y. Case No. 20-40972
Chapter 11 Petition filed February 18, 2020
See https://is.gd/LD5Y96
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re Corporate Housing Solutions, a Delaware limited liability
company
Bankr. N.D. Tex. Case No. 20-30552
Chapter 11 Petition filed February 19, 2020
See https://is.gd/esDTLo
represented by: M. Jermaine Watson, Esq.
M. J. WATSON & ASSOCIATES, P.C
E-mail: jwatson@mjwatsonlaw.com
In re Varanda Group Inc.
Bankr. M.D. Fla. Case No. 20-00985
Chapter 11 Petition filed February 19, 2020
See https://is.gd/FBYWxw
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re Tampa Bay Marine Towing & Service, Inc.
Bankr. M.D. Fla. Case No. 20-01418
Chapter 11 Petition filed February 19, 2020
See https://is.gd/PnuDeW
represented by: Jake C. Blanchard, Esq.
BLANCHARD LAW, P.A.
E-mail: jake@jakeblanchardlaw.com
In re The Chowdhry Corporation
Bankr. N.D. Cal. Case No. 20-30176
Chapter 11 Petition filed February 19, 2020
See https://is.gd/DM9AyY
represented by: Eric J. Gravel, Esq.
LAW OFFICES OF ERIC J. GRAVEL
E-mail: ctnotices@gmail.com
In re Helen Realty Corp.
Bankr. N.D. Fla. Case No. 20-40069
Chapter 11 Petition filed February 19, 2020
See https://is.gd/MVF3Lf
represented by: Byron W. Wright III, Esq.
BRUNER WRIGHT, P.A.
E-mail: twright@brunerwright.com
In re 28 BSJ LLC
Bankr. E.D.N.Y. Case No. 20-40992
Chapter 11 Petition filed February 19, 2020
See https://is.gd/3uic1u
represented by: Lawrence F. Morrison, Esq.
MORRISON TENENBAUM, PLLC
E-mail: info@m-t-law.com
In re Robert F. Robben
Bankr. D. Kan. Case No. 20-10196
Chapter 11 Petition filed February 19, 2020
In re Stanley R. Womac
Bankr. E.D. Tenn. Case No. 20-10645
Chapter 11 Petition filed February 19, 2020
represented by: Richard Banks, Esq.
In re Deborah Ann Winters
Bankr. E.D. Tenn. Case No. 20-10646
Chapter 11 Petition filed February 19, 2020
represented by: Steven L. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ, PLLC
In re Michael Eugene Turney and Gwatholyn Irene Turney
Bankr. M.D. Tenn. Case No. 20-01045
Chapter 11 Petition filed February 19, 2020
represented by: Denis Waldron, Esq.
In re Paul Benjamin Bleiweis
Bankr. M.D. Tenn. Case No. 20-01047
Chapter 11 Petition filed February 19, 2020
represented by: LEFKOVITZ & LEFKOVITZ, PLLC
In re Robert S. Watkins
Bankr. E.D. Va. Case No. 20-30869
Chapter 11 Petition filed February 19, 2020
represented by: Robert Canfield, Esq.
In re John Alan Ross
Bankr. W.D. Va. Case No. 20-50129
Chapter 11 Petition filed February 19, 2020
represented by: Andrew S. Goldstein, Esq.
In re Anamarie Avila Farias
Bankr. N.D. Cal. Case No. 20-40377
Chapter 11 Petition filed February 19, 2020
represented by: Sarah Little, Esq.
KORNFIELD, NYBERG, BENDES,
KUHNER & LITTLE, PC
In re Raymond L. Brewer
Bankr. W.D. Tex. Case No. 20-50377
Chapter 11 Petition filed February 19, 2020
represented by: Ronald Smeberg, Esq.
In re Calvin Ray Kennedy and Cynthia M. Kennedy
Bankr. W.D.N.C. Case No. 20-30208
Chapter 11 Petition filed February 19, 2020
In re Helen E.A. Tudor
Bankr. N.D. Fla. Case No. 20-40068
Chapter 11 Petition filed February 19, 2020
represented by: Byron Wright, Esq.
BRUNER WRIGHT, P.A.
In re Winthrop Cox Jameson
Bankr. S.D. Cal. Case No. 20-00846
Chapter 11 Petition filed February 19, 2020
In re Vadim Govorov
Bankr. E.D.N.Y. Case No. 20-41001
Chapter 11 Petition filed February 19, 2020
represented by: Pablo Bustos, Esq.
In re Skyler Aaron Cook
Bankr. D. Ariz. Case No. 20-01730
Chapter 11 Petition filed February 19, 2020
represented by: James F. Kahn, Esq.
KAHN & AHART, PLLC
In re VP Williams Trans, LLC
Bankr. S.D.N.Y. Case No. 20-10521
Chapter 11 Petition filed February 19, 2020
See https://is.gd/jlSbVO
represented by: Charles Higgs, Esq.
LAW OFFICE OF CHARLES A. HIGGS
E-mail: charles@freshstartesq.com
In re Wicked Wings, LLC
Bankr. W.D. Tex. Case No. 20-10266
Chapter 11 Petition filed February 20, 2020
See https://is.gd/C0sVr8
represented by: Frank B. Lyon, Esq.
FRANK B LYON
E-mail: frank@franklyon.com
In re 1501 Route 9W Associates, LLC
Bankr. S.D.N.Y. Case No. 20-35237
Chapter 11 Petition filed February 20, 2020
See https://is.gd/PEy0in
represented by: Michael D. Pinsky, Esq.
LAW OFFICE OF MICHAEL D. PINSKY, P.C.
E-mail: michael.d.pinsky@gmail.com
In re Freedom Plumbers Corporation
Bankr. E.D. Va. Case No. 20-10534
Chapter 11 Petition filed February 20, 2020
See https://is.gd/WDDJjY
represented by: Ann E. Schmitt, Esq.
CULBERT & SCHMITT, PLLC
E-mail: aschmitt@culbert-schmitt.com
In re Madison Cove LLC
Bankr. E.D.N.Y. Case No. 20-41027
Chapter 11 Petition filed February 20, 2020
See https://is.gd/8tStmD
represented by: Narissa A. Joseph, Esq.
LAW OFFICE OF NARISSA A. JOSEPH
E-mail: njosephlaw@aol.com
In re Fulton 2188 Corporation
Bankr. E.D.N.Y. Case No. 20-41033
Chapter 11 Petition filed February 20, 2020
See https://is.gd/RfpGQ1
represented by: Karamvir Dahiya, Esq.
DAHIYA LAW OFFICES, LLC
E-mail: karam@bankruptcypundit.com
In re Teresa Village Management, LLC
Bankr. N.D. Fla. Case No. 20-30156
Chapter 11 Petition filed February 19, 2020
See https://is.gd/4RGccK
Filed Pro Se
In re Gary J. Reetz
Bankr. S.D.N.Y. Case No. 20-22273
Chapter 11 Petition filed February 20, 2020
represented by: Lewis Siegel, Esq.
In re Chon Oh Kwon and Hun Joo Har
Bankr. D.N.J. Case No. 20-12824
Chapter 11 Petition filed February 20, 2020
represented by: Leonard Singer, Esq.
In re Phuong T. Nguyen
Bankr. N.D. Cal. Case No. 20-30181
Chapter 11 Petition filed February 20, 2020
In re All Star Electrical, LLC
Bankr. W.D. Mo. Case No. 20-40353
Chapter 11 Petition filed February 21, 2020
See https://is.gd/URQbMI
represented by: Colin Gotham, Esq.
EVANS & MULLINIX, P.A.
E-mail: cgotham@emlawkc.com
In re Edify Wellness of Georgia, LLC
Bankr. N.D. Ga. Case No. 20-10393
Chapter 11 Petition filed February 21, 2020
See https://is.gd/jsLtEN
represented by: David L. Bury, Jr., Esq.
STONE & BAXTER, LLP
E-mail: dbury@stoneandbaxter.com
In re Big Brothers Big Sisters of Ocean County, Inc.
Bankr. D.N.J. Case No. 20-12908
Chapter 11 Petition filed February 21, 2020
See https://is.gd/WwSKiv
represented by: Kenneth A. Rosen, Esq.
LOWENSTEIN SANDLER LLP
E-mail: krosen@lowenstein.com
In re Signs Up Inc.
Bankr. W.D. Tex. Case No. 20-10273
Chapter 11 Petition filed February 21, 2020
See https://is.gd/dHiY1I
represented by: H. Anthony Hervol, Esq.
LAW OFFICE OF H. ANTHONY HERVOL
E-mail: hervol@sbcglobal.net
In re Jorta Properties, LLC
Bankr. D. Md. Case No. 20-12243
Chapter 11 Petition filed February 21, 2020
See https://is.gd/H3RpFH
represented by: William C. Johnson, Jr., Esq.
THE JOHNSON LAW GROUP, LLC
E-mail: wcjjatty@yahoo.com
In re Edsil Lamar Logan and Lori Dale Logan
Bankr. N.D. Ga. Case No. 20-10387
Chapter 11 Petition filed February 21, 2020
represented by: David Bury, Esq.
In re Andrew Paul Chamberland
Bankr. W.D. Va. Case No. 20-60300
Chapter 11 Petition filed February 21, 2020
represented by: David Cox, Esq.
COX LAW GROUP, PLLC
In re Bettina M. Reibman
Bankr. S.D.N.Y. Case No. 20-22289
Chapter 11 Petition filed February 21, 2020
represented by: Anne Penachio, Esq.
PENACHIO MALARA, LLP
In re Steven Mitchell Bramlett and Dana Kiser Bramlett
Bankr. N.D. Ga. Case No. 20-20346
Chapter 11 Petition filed February 20, 2020
represented by: Jonathan Clements, Esq.
In re Tedd Potts
Bankr. M.D. Fla. Case No. 20-01506
Chapter 11 Petition filed February 21, 2020
represented by: Michael Dal Lago, Esq.
In re Tuckstop Enterprises, LLC
Bankr. M.D. Tenn. Case No. 20-01109
Chapter 11 Petition filed February 21, 2020
See https://is.gd/WAcrRG
represented by: Steven L. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ
E-mail: slefkovitz@lefkovitz.com
In re Meyers Repair Service LLC
Bankr. W.D. Pa. Case No. 20-70097
Chapter 11 Petition filed February 21, 2020
See https://is.gd/9T5PVM
represented by: Marc T. Valentine, Esq.
MARC T. VALENTINE & ASSOCIATES
E-mail: marcvaltax@gmail.co
In re Khalil Rahman
Bankr. W.D. Wash. Case No. 20-10562
Chapter 11 Petition filed February 21, 2020
represented by: Thomas D. Neeleman
In re Sharon H. Koontz and Ronald Wilkie Koontz, Jr.
Bankr. E.D.N.Y. Case No. 20-41114
Chapter 11 Petition filed February 23, 2020
represented by: Rachel S. Blumenfeld, Esq.
In re Aldo Mandile
Bankr. N.D. Ill. Case No. 20-04886
Chapter 11 Petition filed February 22, 2020
represented by: Kevin Benjamin Esq.
In re Haddad Restaurant Group, Inc.
Bankr. D. Kan. Case No. 20-20282
Chapter 11 Petition filed February 24, 2020
See https://is.gd/1F9mNg
represented by: Colin Gotham, Esq.
EVANS & MULLINIX, P.A.
E-mail: cgotham@emlawkc.com
In re Rosy Ranch, LLC
Bankr. E.D. Mich. Case No. 20-30455
Chapter 11 Petition filed February 24, 2020
See https://is.gd/3iXb4a
represented by: Edward J. Gudeman, Esq.
GUDEMAN & ASSOCIATES, PC
E-mail: ecf@gudemanlaw.com
In re Back Fourty, LLC
Bankr. E.D. Mich. Case No. 20-30456
Chapter 11 Petition filed February 24, 2020
See https://is.gd/k2SCZX
represented by: Edward J. Gudeman, Esq.
GUDEMAN & ASSOCIATES, PC
E-mail: ecf@gudemanlaw.com
In re Hitz Restaurant Group
Bankr. N.D. Ill. Case No. 20-05012
Chapter 11 Petition filed February 24, 2020
See https://is.gd/wi5Fv8
represented by: Richard N. Golding, Esq.
THE GOLDING LAW OFFICES, P.C.
E-mail: rgolding@goldinglaw.net
In re Rite Guide, LLC
Bankr. D. Nev. Case No. 20-50211
Chapter 11 Petition filed February 24, 2020
See https://is.gd/4FxIXP
represented by: Mary Beth Gardner, Esq.
E-mail: marybethgardner@hotmail.com
In re Winstead's Company
Bankr. D. Kan. Case No. 20-20288
Chapter 11 Petition filed February 24, 2020
See https://is.gd/VPZYIM
represented by: Colin Gotham, esq.
EVANS & MULLINIX, P.A.
E-mail: cgotham@emlawkc.com
In re Robert Kelly McLean and Sherry Annette McLean
Bankr. E.D. Cal. Case No. 20-20972
Chapter 11 Petition filed February 23, 2020
represented by: Stephen M. Reynolds, Esq.
In re Calvin B. Grigsby Burchard Grigsby
Bankr. N.D. Cal. Case No. 20-40411
Chapter 11 Petition filed February 24, 2020
In re J & V Corporation
Bankr. D.N.J. Case No. 20-13009
Chapter 11 Petition filed February 24, 2020
Filed Pro Se
In re Sunderdat Sookram
Bankr. D.N.J. Case No. 20-13038
Chapter 11 Petition filed February 24, 2020
represented by: Scott J. Goldstein, Esq.
In re James Allen Benge
Bankr. N.D. Tex. Case No. 20-30590
Chapter 11 Petition filed February 24, 2020
represented by: Richard Dafoe, Esq.
In re Joseph Lyle Stecher
Bankr. N.D. Iowa Case No. 20-00237
Chapter 11 Petition filed February 24, 2020
represented by: Steven Klesner, Esq.
In re Bobby Dean Jones, Jr. and Lisa Ginn Jones
Bankr. E.D.N.C. Case No. 20-00780
Chapter 11 Petition filed February 24, 2020
represented by: John Bircher, Esq.
WHITE & ALLEN P.A.
E-mail: jbircher@whiteandallen.com
In re Grand Central Wine & Spirits LLC
Bankr. D. Md. Case No. 20-12354
Chapter 11 Petition filed February 24, 2020
See https://is.gd/7YV4eO
represented by: John D. Burns, Esq.
THE BURNS LAW FIRM, LLC
E-mail: jburns@burnsbankruptcyfirm.com
In re M.G. Transport, Inc.
Bankr. D. Maine Case No. 20-10092
Chapter 11 Petition filed February 25, 2020
See https://is.gd/FEPQRR
represented by: Adam R. Prescott, Esq.
BERNSTEIN SHUR SAWYER & NELSON
E-mail: aprescott@bernsteinshur.com
In re Mustain Milk Transport, LLC
Bankr. W.D. Mo. Case No. 20-30077
Chapter 11 Petition filed February 25, 2020
See https://is.gd/cYCXj7
represented by: Norman E. Rouse, Esq.
COLLINS, WEBSTER, & ROUSE, PC
E-mail: twelch@cwrcave.com
In re Direct Sports Media Inc.
Bankr. C.D. Cal. Case No. 20-10680
Chapter 11 Petition filed February 25, 2020
See https://is.gd/OhqxM6
represented by: Damian Capozzola, Esq.
THE LAW OFFICES OF DAMIAN D. CAPOZZOLA
E-mail: ddc@ddclaw.com
In re Suhaila Yusuf Farhat
Bankr. N.D. Cal. Case No. 20-30191
Chapter 11 Petition filed February 24, 2020
represented by: Jackson Morris, Esq.
In re Jared Anthony Smith and Andrea Haliburton Smith
Bankr. M.D. Tenn. Case No. 20-01146
Chapter 11 Petition filed February 24, 2020
represented by: LEFKOVITZ AND LEFKOVITZ, PLLC
In re James H. G. Naisby and Diane H. Naisby
Bankr. D.N.J. Case No. 20-13088
Chapter 11 Petition filed February 25, 2020
represented by: Gary Marks, Esq.
In re Ricci Ranell Ankton
Bankr. N.D. Tex. Case No. 20-30599
Chapter 11 Petition filed February 25, 2020
represented by: Chris Tello, Esq.
In re Sharon Elizabeth Harris
Bankr. E.D. Tenn. Case No. 20-10742
Chapter 11 Petition filed February 25, 2020
represented by: Richard Banks, Esq.
In re Stacey Jill Kleinberg
Bankr. S.D.N.Y. Case No. 20-22305
Chapter 11 Petition filed February 25, 2020
represented by: Linda Tirelli, Esq.
In re Bradley Lewis Haggen and Kristin Ruth Haggen
Bankr. W.D. Wash. Case No. 20-10591
Chapter 11 Petition filed February 25, 2020
represented by: Steven Hathaway, Esq.
In re Access Entertainment Group LLC
Bankr. W.D. Ky. Case No. 20-30643
Chapter 11 Petition filed February 25, 2020
See https://is.gd/JYoGVR
represented by: Nick C. Thompson, Esq.
NICK C. THOMPSON BANKRUPTCY ATTORNEY
E-mail: Bankruptcy@Bankruptcy-Divorce.com
In re Jay's Wise Guy Pizza, LLC
Bankr. W.D.N.Y. Case No. 20-10304
Chapter 11 Petition filed February 25, 2020
See https://is.gd/iUl5vI
represented by: Robert B. Gleichenhaus, Esq.
GLEICHENHAUS, MARCHESE & WEISHAAR, P.C.
*********
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.
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