/raid1/www/Hosts/bankrupt/TCR_Public/200407.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, April 7, 2020, Vol. 24, No. 97
Headlines
138 QB ACQUISITION: Case Summary & 4 Unsecured Creditors
AAR CORP: Egan-Jones Lowers Senior Unsecured Debt Ratings to BB
ACCO BRANDS: Egan-Jones Lowers Senior Unsecured Ratings to B+
ACI WORLDWIDE: Egan-Jones Lowers Senior Unsecured Ratings to B
ADAMIS PHARMACEUTICALS: Incurs $29.3 Million Net Loss in 2019
ADHERA THERAPEUTICS: Delays Filing of 2019 Annual Report
ADVANCE AUTO: Egan-Jones Lowers Senior Unsecured Ratings to BB+
AIR CANADA: Egan-Jones Lowers Senior Unsecured Ratings to BB-
AK STEEL: Egan-Jones Lowers Senior Unsecured Ratings to B-
AKORN INC: To File for Chapter 11 Protection no Later Than May 1
ALLEGIANT TRAVEL: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
ALLIANCE RESOURCE: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
ALLY FINANCIAL: Egan-Jones Lowers Local Curr. Unsec. Rating to BB+
AMERICAN AIRLINES: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B+
AMERICAN AIRLINES: Fitch Lowers Issuer Default Rating to B+
AMERICAN TRANSPORTATION: A.M. Best Cuts Fin. Strength Rating to C++
AMKOR TECHNOLOGY: Egan-Jones Cuts Local Curr. Unsec. Rating to B+
APARTMENT INVESTMENT: Egan-Jones Lowers Sr. Unsec. Ratings to BB+
APOLLO COMMERCIAL: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
ASBURY AUTOMOTIVE: Egan-Jones Lowers Unsec. Debt Ratings to BB-
AUTODESK INC: Egan-Jones Lowers Sr. Unsec. Debt Ratings to BB
AYTU BIOSCIENCE: Delivers First Shipment of COVID-19 Rapid Tests
B&G FOODS: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B
BALLY TECHNOLOGIES: Egan-Jones Lowers Sr. Unsec. Ratings to BB+
BOISE CASCADE: Egan-Jones Lowers Senior Unsecured Ratings to BB-
BOYD GAMING: Egan-Jones Lowers Senior Unsecured Debt Ratings to CCC
BREAULT RESEARCH: Unsecureds to Have 53% Recovery in Plan
BRIGGS & STRATTON: Egan-Jones Lowers Unsec. Debt Ratings to CCC+
BRIGHT MOUNTAIN: Delays Filing of 2019 Annual Report
CACI INTERNATIONAL: Egan-Jones Lowers Senior Unsec. Ratings to BB
CAH ACQUISITION 16: Trustee's 200K Cash Sale of All Assets Approved
CAN B CORP: Reports $4.59 Million Net Loss in 2019
CAREVIEW COMMUNICATIONS: Incurs $14.1 Million Net Loss in 2019
CEDAR FAIR: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B-
CHAMPION BLDRS: $1.5K Sale of Channel Trailer to Scott Approved
CHAMPION BLDRS: $2.1K Sale of Channel Trailer to Scott Approved
CHARLES RIVER: Egan-Jones Lowers Senior Unsecured Ratings to BB+
CHARTER COMMUNICATIONS: Egan-Jones Lowers Sr. Unsec. Ratings to BB
CHENIERE ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to B-
CHESAPEAKE ENERGY: Egan-Jones Lowers Sr. Unsecured Ratings to CCC-
CIMAREX ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB+
CITADEL EXPLORATION: Delays Form 10-K Over Coronavirus Pandemic
CLEVELAND BIOLABS: Delays Filing of 2019 Annual Report
CLEVELAND-CLIFFS INC: Egan-Jones Lowers Sr. Unsecured Ratings to B
COEUR MINING: Egan-Jones Lowers Local Curr. Unsecured Rating to CCC
CONTINENTAL RESOURCES: Egan-Jones Lowers Sr. Unsec. Ratings to BB
CORECIVIC INC: Egan-Jones Lowers Sr. Unsec. Debt Ratings to BB
CORNERSTONE PAVERS: Judge Approves Final Use of Cash Collateral
CPI INTERNATIONAL: S&P Downgrades ICR to 'B-', Outlook Stable
CSG SYSTEMS: Egan-Jones Lowers Senior Unsecured Ratings to BB
DANA INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB
DARDEN RESTAURANTS: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
DAVITA INC: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
DELUXE CORP: Egan-Jones Lowers Sr. Unsecured Debt Ratings to BB
DENBURY RESOURCES: Egan-Jones Lowers Sr. Unsecured Ratings to CCC-
DEVON ENERGY: Egan-Jones Lowers Sr. Unsec. Debt Ratings to BB
DIAMONDBACK ENERY: Egan-Jones Cuts Loc. Curr. Unsec. Rating to BB
DIGITAL RIVER: S&P Downgrades ICR to 'CCC+', Outlook Stable
DOLLAR TREE: Egan-Jones Lowers Senior Unsecured Ratings to BB
DOLPHIN ENTERTAINMENT: Incurs $1.19 Million Net Loss in 2019
DOUBLE L FARMS: D.L. Evans Bank Objects to Amended Disclosures
DURA AUTOMOTIVE: PBGC Objects to Disclosure Statement
ENCOUNTER MEDICAL: Agreement Reached; Plan Confirmed
EUROAMERICAN FOODS: Cash Collateral Use Allowed Until April 17
EUROPEAN FOREIGN: Authorized to Continue Using Cash Collateral
EVOLV SOLUTIONS: Court Confirms Chapter 11 Plan
EXIDE TECHNOLOGIES: Dispute over UST Fee Hike Goes to 3rd Circuit
FGI ACQUISITION: S&P Downgrades ICR to CCC+ on End Market Pressure
FORMER CHARTER COMMUNICATIONS: Egan-Jones Cuts Unsec. Rating to BB
GADSDEN PROPERTIES: Delays Filing of 2019 Annual Report
GAMESTOP CORP: S&P Downgrades ICR to 'B-' on COVID-19 Hurdles
GENERAL MOTORS: Egan-Jones Cuts Local Curr. Unsecured Rating to BB+
GENWORTH FINANCIAL: Egan-Jones Lowers Sr. Unsecured Ratings to B
GEORGE WASHINGTON: Plan Solicitation Period Extended to June 5
GK HOLDINGS: S&P Cuts Senior Secured Second-Lien Debt Rating to 'C'
GONZALEZ & COLON: May 7 Hearing on Disclosure Statement
GREAT WESTERN PETROLEUM: S&P Cuts ICR to 'CCC+'; Outlook Negative
GREENBRIER COS: Egan-Jones Lowers Senior Unsecured Ratings to BB
GROW CAPITAL: CEO Bonnette Becomes Chief Technology Officer
GROWCO INC: Court Tosses McKowen Bid to Stay Paulson Suit
GROWLIFE INC: Incurs $7.4 Million Net Loss in 2019
GUARDION HEALTH: Incurs $10.9 Million Net Loss in 2019
GUARDION HEALTH: Receives Initial Order from Astramune Sdn Bhd
HARTSHORNE HOLDINGS: Gets Court Approval to Hire OCPs
HARTSHORNE HOLDINGS: Taps Frost Brown as Local Counsel
HARTSHORNE HOLDINGS: Taps Stretto as Administrative Advisor
HHH CHOICES: Suit vs M. Farrett et al. Set for May 18 Trial
INTERNATIONAL SEAWAYS: S&P Alters Outlook to Neg., Affirms B- ICR
INTERTAPE POLYMER: Egan-Jones Lowers Sr. Unsecured Ratings to BB
J-H-J INC: Proposes an Auction of University Ave Store Equipment
JACKSON OVERLOOK: Sale of New York Property to Fort Tyron Approved
JAGUAR HEALTH: Nantucket & Burford Report 0.3% Stake
JDUB'S BREWING: Case Summary & 20 Largest Unsecured Creditors
KC & KAJI: Case Summary & 2 Unsecured Creditors
KOHL'S CORP: Egan-Jones Lowers Sr. Unsecured Debt Ratings to BB
KUEHG CORP: S&P Downgrades ICR to 'CCC+' on COVID-19 Disruption
LANSDOWNE CONSTRUCTION: Wins Avoidance Suit v Subcontractor
LAW OFFICES OF JONATHAN: Case Summary & 12 Unsecured Creditors
LEXARIA BIOSCIENCE: Incurs $997K Net Loss in Second Quarter
LUVU BRANDS: Receives Order for 35,000 Reusable Isolation Gowns
MACK-CALI REALTY: S&P Lowers ICR to 'B+'; Outlook Negative
MAG DS CORP: S&P Assigns 'B' Issuer Credit Rating; Outlook Stable
MARRIOTT INT'L: Egan-Jones Cuts Sr. Unsec. Debt Ratings to BB+
MEDNAX INC: S&P Cuts ICR to BB- on Economic Fallout From COVID-19
MEMENTO MORI: Academy Buying Mayton Inn for $8.1 Million
MERITOR INC: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B+
MESA MARKETPLACE: SMS Cash Collateral Stipulation Approved
MILLMAC CORP: Sale of Bartow Business Equipment Approved
MINNESOTA SCHOOL: Proposes Two-Structure Plan
MORRIS SCHNEIDER: Trustee Selling Remnant Assets to Oak for $15K
MOTORS LIQUIDATION: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
MURPHY OIL: S&P Lowers ICR to 'BB' on Difficult Market Conditions
NUVISTA ENERGY: S&P Lowers Long-Term ICR to 'CCC+'; Outlook Stable
O'LOUGHLIN LTD: May 5 Hearing on Disclosure Statement
OMNIQ CORP: To Host Conference Call to Provide Year End Update
ORYX MIDSTREAM: S&P Cuts ICR to 'B-' on Revised Price Assumptions
PARAMOUNT RESOURCES: S&P Downgrades ICR to 'CCC+'; Outlook Stable
PEARL RESOURCES: Ch. 11 Bankruptcy Filing Abates Appeal vs Transcon
PLATINUM GROUP: Reports Impala's Waterberg Amended Purchase Deal
PLUS THERAPEUTICS: Incurs $10.9 Million Net Loss in 2019
PLUS THERAPEUTICS: Licenses Novel Oncology Platform
PREMIER HOME: Voluntary Chapter 11 Case Summary
PROFESSIONAL DIVERSITY: Board Elects Hao Zhang as Chairman
PROGRESSIVE SOLUTIONS: Court Junks Bid to Amend Ch. 11 Petition
RANGE RESOURCES: S&P Lowers ICR to 'B' on Lower Commodity Prices
RILEY DRIVE: Not Compelled to Give Bankruptcy Notice to Employees
SEANERGY MARITIME: Empery Asset, et al. Report 9.9% Equity Stake
SETTLERS JERKY: Unsecureds Will be Paid in Full in Plan
SHARON E. HARRIS: D&K Buying 2014 Peterbilt for $28K
SIERRA ENTERPRISES: S&P Lowers ICR to 'B-' on Pandemic Effects
SIMPLICITY CATERERS: Has April 17 Deadline to File Plan
SMARTER TODDLER: To Seek Plan Confirmation on April 28
SOUTHERN INDUSTRIAL: Former Employees' Bid for Discovery Junked
STAR PETROLEUM: Unsecureds to Get 100% Without Interest
STEEL DYNAMICS: Egan-Jones Lowers Senior Unsecured Ratings to BB+
SUPERIOR ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to C
TAILWIND SMITH: S&P Lowers ICR to 'B-' on Expected High Leverage
TATA CHEMICALS: S&P Places 'B+' ICR on CreditWatch Negative
THURSTON MANUFACTURING: $65.4K Sale of Thurston Property Approved
THURSTON MANUFACTURING: Jensen Buying Thurston Equipment for $855K
TOYS R US: Alderwood Loses Appeal Regarding Sale of Lease
TRI-STATE ENTERPRISES: Court Approves Disclosure Statement
TRONOX INC: Court Junks Avoca Plaintiffs' Amended Complaint
UFS HOLDINGS: S&P Downgrades ICR to 'CCC'; Outlook Negative
USA COMPRESSION: S&P Alters Outlook to Negative, Affirms B+ ICR
VENUS CONCEPT: EWHP Investors Own 33.3% of Preferred Shares
VERICAST CORP: S&P Lowers Senior Secured Debt Rating to 'CCC+'
VINES AT TABOR: Taps Gabriel Liberman as Legal Counsel
VISTAGEN THERAPEUTICS: Receives Noncompliance Notice from Nasdaq
WALL STREET: To Seek Plan Confirmation on April 27
WESTWIND MANOR: Court Approves Disclosure Statement
WESTWIND MANOR: Unsecureds to Recover 6% to 30% in Plan
WORKDAY INC: Egan-Jones Lowers Sr. Unsec. Ratings to B
[*] S&P Takes Various Rating Actions on Physical Therapy Providers
[^] Large Companies with Insolvent Balance Sheet
*********
138 QB ACQUISITION: Case Summary & 4 Unsecured Creditors
--------------------------------------------------------
Debtor: 138 QB Acquisition Corp.
20 W 47th St
Fl 205
New York, NY 10036-3464
Business Description: 138 QB Acquisition Corp. is engaged in
activities related to real estate, whose
principal assets are located at 13823 Queens
Blvd Briarwood, NY 11435-2641.
Chapter 11 Petition Date: April 6, 2020
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 20-41816
Debtor's Counsel: Kevin J. Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway 22nd Floor
New York, NY 10036
Tel: (212) 221-5700
E-mail: knash@gwfglaw.com
Total Assets: $14,245,000
Total Liabilities: $13,018,610
The petition was signed by Aaron Ambalu, manager.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/molU7w
List of Debtor's Four Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Briar MG LLC Contract Price $11,655,000
Attn: Martin Goodstein
445 5th Ave Apt 17B
New York, NY 10016-0133
2. Imperial Abstract Corp. Services $43,610
367 Route 306
Monsey, NY 10952-1646
3. JB Holdings NY LLC Loan of Funds $1,295,000
20 W 47th St Fl 205 for downpayment
New York, NY 10036-3464
4. Law Offices of $25,000
Aaron C. Ambalu
20 W 47th St Fl 205
New York, NY10036-3464
AAR CORP: Egan-Jones Lowers Senior Unsecured Debt Ratings to BB
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by AAR Corporation to BB from BBB+.
With headquarters in Wood Dale, Illinois, AAR CORPORATION is an
independent provider of aviation and expeditionary services to the
global commercial, government and defense aviation industries.
ACCO BRANDS: Egan-Jones Lowers Senior Unsecured Ratings to B+
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by ACCO Brands Corporation to B+ from BB.
ACCO Brands Corporation is an American manufacturer of office
products. It was created by the merger of ACCO World from Fortune
Brands with General Binding Corporation.
ACI WORLDWIDE: Egan-Jones Lowers Senior Unsecured Ratings to B
--------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by ACI Worldwide Incorporated to B from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
ACI Worldwide Incorporated is a payment systems company
headquartered in Naples, Florida. ACI develops a broad line of
software focused on facilitating real-time electronic payments.
ADAMIS PHARMACEUTICALS: Incurs $29.3 Million Net Loss in 2019
-------------------------------------------------------------
Adamis Pharmaceuticals Corporation filed with the Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $29.31 million for the year ended Dec. 31, 2019, compared
to a net loss of $39 million for the year ended Dec. 31, 2018.
Adamis total revenues increased approximately 47%, from $15.1
million to $22.1 million, for the year ended Dec. 31, 2018 and
2019, respectively. Total revenues increased by approximately 33%,
to $5.5 million from $4.2 million fourth quarter of 2019 compared
to the same period in 2018. The increase was primarily
attributable to growth in sales of USC's sterile pharmaceutical
products and revenue relating to SYMJEPI.
Selling, general and administrative expenses for the years ending
Dec. 31, 2019 and 2018 were approximately $25.3 million and $26.0
million, respectively, a decrease of approximately 3%. The
decrease was primarily attributable to decreases of approximately
$2.1 million in compensation expenses, occupancy costs, and other
related expenses. These amounts were partially offset by an
increase of approximately $1.4 million attributable to increases in
consulting, legal, patent, insurance, PDUFA fees, marketing and
selling expenses.
Research and development expenses were approximately $10.4 million
and $18.8 million for the years ended Dec. 31, 2019 and 2018,
respectively, a decrease of approximately 45%. The decrease was
primarily due to a decrease in development costs of the Company's
product candidates.
Cash and equivalents at the end of the year was approximately $8.8
million. In February, the Company increased its cash position by
raising approximately $6.7 million before deducting the placement
agent's fees and other estimated offering expenses, in an equity
financing transaction.
As of Dec. 31, 2019, the Company had $47.84 million in total
assets, $11.80 million in total liabilities, and $36.04 million in
total stockholders' equity.
Dr. Dennis J. Carlo, president and chief executive officer of
Adamis Pharmaceuticals, stated, "In light of the recent COVID-19
outbreak and overall economic outlook, we have attempted to
determine the impact of the outbreak on our present and future
operations, including the impact on our suppliers, manufacturers
and commercial partners. The good news is that at the present time
we have not seen a material impact of COVID-19 on demand for our
products, and we have not yet seen any significant negative impact
on our supply chain or distribution network. If the outbreak
appreciably worsens and/or if governmental restrictions persist for
a protracted period, that could of course affect our outlook."
"Having said that, the outbreak and governmental mandated social
distancing and sheltering in place have caused some near-term
impact and disruption to our employees and daily operations. For
that reason, and to allow some time to gain additional visibility
into the 2020 year, we have determined to postpone our regularly
scheduled earnings conference call. My sincere hope is that we can
have a more meaningful call in the future and provide a clearer
picture of the remainder of 2020 and the outlook for the company."
"In the meantime, we remained focused on completing the additional
work to allow us to supplement our NDA for our naloxone injection
product (ZIMHI). We are actively addressing the issues the FDA
raised in the Complete Response Letter we received late last year.
We continue to believe ZIMHI can play an important role in
combating the ongoing public health crisis of opioid overdose, and
we look forward to the eventual approval of ZIMHI. SYMJEPI sales
continue to be far lower than we ever expected. We are currently
working with Sandoz to determine what needs to occur to accelerate
its growth in the epinephrine market. Sales of pharmaceutical
preparations through our US Compounding drug outsourcing facility
had strong growth for 2019 versus the year prior."
Mayer Hoffman McCann P.C., in San Diego, California, the Company's
auditor since 2007, issued a "going concern" qualification in its
report dated March 30, 2020 citing 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.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/bhF1WL
About Adamis Pharmaceuticals
Adamis Pharmaceuticals Corporation --
http://www.adamispharmaceuticals.com/-- is a specialty
biopharmaceutical company primarily focused on developing and
commercializing products in various therapeutic areas, including
respiratory disease, allergy and opioid overdose. The company's
SYMJEPI (epinephrine) Injection 0.3mg and SYMJEPI (epinephrine)
Injection 0.15mg products were approved by the FDA for use in the
emergency treatment of acute allergic reactions, including
anaphylaxis. In July 2019, Sandoz, a division of Novartis Group,
announced it had fully launched both in the U.S. Adamis is
developing additional products, including a naloxone injection
product candidate, ZIMHI, 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 use by hospitals, clinics and surgery
centers throughout most of the United States.
ADHERA THERAPEUTICS: Delays Filing of 2019 Annual Report
--------------------------------------------------------
Adhera Therapeutics, Inc. filed a Form 12b-25 with the Securities
and Exchange Commission notifying the delay in the filing of its
Annual Report on Form 10-K for the year ended Dec. 31, 2019.
Adhera Therapeutics said the compilation, dissemination and review
of the information required to be presented in the Form 10-K for
the relevant period, including, without limitation, the financial
statements to be included therein, has imposed time constraints
that have rendered timely filing of the Form 10-K impracticable
without undue hardship and expense to the Registrant. The Company
undertakes the responsibility to file, and anticipates that it will
file, the Form 10-K no later than 15 days after its original
prescribed due date.
About Adhera
Headquartered in Durham, NC, Adhera Therapeutics, Inc. (formerly
known as Marina Biotech, Inc.) -- http://www.adherathera.com/-- is
a specialty pharmaceutical company leveraging technology to
commercialize unique therapies and improve patient outcomes. Adhera
is initially focused on commercializing its United States Food and
Drug Administration approved product for the treatment of
hypertension to lower blood pressure through DyrctAxessTM, a
patient-centric treatment approach. Adhera is dedicated to
identifying additional assets to expand its commercial presence.
Adhera reported a net loss applicable to common stockholders of
$17.82 million for the year ended Dec. 31, 2018, compared to a net
loss applicable to common stockholders of $6.22 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$4.14 million in total assets, $9.52 million in total liabilities,
and a total stockholders' deficit of $5.38 million.
Squar Milner LLP, in Los Angeles, California, the Company's auditor
since 2015, issued a "going concern" qualification in its report
dated April 16, 2019, citing that the Company has suffered
recurring losses from operations and negative cash flows from
operations. This raises substantial doubt about the Company's
ability to continue as a going concern.
ADVANCE AUTO: Egan-Jones Lowers Senior Unsecured Ratings to BB+
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Advance Auto Parts, Incorporated to BB+ from BBB+.
Advance Auto Parts, Incorporated is an American automotive
aftermarket parts provider. Headquartered in Raleigh, North
Carolina, it serves both professional installers and do-it-yourself
customers. As of July 13, 2019, Advance operated 4,912 stores and
150 Worldpac branches in the United States and Canada.
AIR CANADA: Egan-Jones Lowers Senior Unsecured Ratings to BB-
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Air Canada to BB- from BB.
Air Canada is the flag carrier and the largest airline of Canada by
fleet size and passengers carried. The airline, founded in 1937,
provides scheduled and charter air transport for passengers and
cargo to 207 destinations worldwide. It is a founding member of the
Star Alliance.
AK STEEL: Egan-Jones Lowers Senior Unsecured Ratings to B-
----------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by AK Steel Holding Corporation to B- from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
AK Steel Holding Corporation is a steelmaking company headquartered
in West Chester Township, Butler County, Ohio. In 2020, the company
was acquired by Cleveland-Cliffs.
AKORN INC: To File for Chapter 11 Protection no Later Than May 1
----------------------------------------------------------------
As previously disclosed, on Feb. 12, 2020, Akorn, Inc., certain of
its subsidiaries, an ad hoc group of lenders (the "Ad Hoc Group")
and certain other Lenders (together with the Ad Hoc Group, the
"Standstill Lenders") entered into a Second Amendment to Standstill
Agreement and Third Amendment to Credit Agreement to the Company's
Loan Agreement, dated as of April 17, 2014, with the lenders
thereunder and Wilmington Savings Fund Society, FSB, as
administrative agent. Pursuant to the terms of the Amended
Standstill Agreement, the duration of the "Standstill Period" was
extended from Feb. 7, 2020 until the earliest of the delivery of a
notice of termination of the Standstill Period by the Standstill
Lenders upon the occurrence of a default under the loan agreement,
or a breach of, or non-compliance with certain provisions of the
Amended Standstill Agreement. Among other things, the Amended
Standstill Agreement also (i) provides that, during the extended
Standstill Period, neither the Administrative Agent nor the Lenders
may exercise their default-related rights and remedies with respect
to specified events of default under the Term Loan Agreement, and
(ii) provides that the Company will market and conduct a sale
process for substantially all of its assets in accordance with
certain milestones.
As of March 28, 2020, there were no bids in the Sale Process
sufficient to pay all obligations under the Term Loan Agreement and
an immediate Event of Default under the Term Loan Agreement has
occurred. As a result, pursuant to the Term Loan Agreement, the
interest margin payable in cash under the Term Loan Agreement has
increased to LIBOR plus 12.50% (provided that 0.75% of such rate
shall be payable in kind by capitalizing and adding such amount to
the outstanding principal balance of the loans on the applicable
payment date). In addition, a default rate of 2.00% applies. The
Lenders may also accelerate the obligations under the Term Loan
Agreement, foreclose upon the collateral securing the debt and
exercise other rights and remedies.
As of April 1, 2020, the alternative milestones with respect to the
Sale Process set forth in the Amended Standstill Agreement will
apply. The Company will also be obligated to prepay, on a ratable
basis, all outstanding loans under the Term Loan Agreement in an
amount that after giving effect to the prepayment, leaves the
Company with a pro forma cash balance of not more than $87.5
million within five days prior to the commencement of the Chapter
11 cases.
As of April 1, 2020, the following alternative milestones will
apply under the Amended Standstill Agreement, unless otherwise
agreed between the Company and the required lenders:
* on or before April 27, 2020, the Company and the Ad Hoc
Group Advisors shall reach an agreement in principle with
respect to a restructuring support agreement;
* on or before May 1, 2020, the Company shall commence the
Chapter 11 cases to consummate either (A) a sale transaction
pursuant to a stalking horse asset purchase agreement, with
the Lenders serving as a stalking horse in order to exercise
their rights to credit bid under the Loan Documents or (B) a
transaction backstopped by an executed RSA; and
* certain additional milestones shall be applicable during the
Chapter 11 cases.
The Company continues to engage in discussions with the Standstill
Lenders regarding the Sale Process.
About Akorn
Headquartered in Lake Forest, Illinois, Akorn, Inc. --
http://www.akorn.com/-- is a specialty pharmaceutical company
engaged in the development, manufacture and marketing of
multi-source and branded pharmaceuticals. Akorn has manufacturing
facilities located in Decatur, Illinois; Somerset, New Jersey;
Amityville, New York; Hettlingen, Switzerland and Paonta Sahib,
India that manufacture ophthalmic, injectable and specialty sterile
and non-sterile pharmaceuticals.
Akorn reported a net loss of $226.8 million for the year ended Dec.
31, 2019, compared to a net loss of $401.91 million on $694.02
million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the
Company had $1.28 billion in total assets, $1.05 billion in total
liabilities, and $234.29 million in total shareholders' equity.
BDO USA, LLP, in Chicago, Illinois, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
Feb. 26, 2020, citing that the Company has suffered recurring
losses from operations and has a net working capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
* * *
As reported by the TCR on Feb. 24, 2020, Moody's Investors Service
downgraded the ratings of Akorn, Inc. including the Corporate
Family Rating to Caa3 from Caa1. The downgrade reflects the high
risk of a near-term bankruptcy filing by Akorn, given its ongoing
litigation and $845 million term loan maturity in April 2021.
Also in February 2020, S&P Global Ratings lowered its issuer credit
rating on Akorn Inc. to 'CCC-' from 'B-' with negative outlook.
The negative outlook reflects the increasing possibility that Akorn
will file for Chapter 11 protection under the U.S. Bankruptcy Code
in the next six months to facilitate repayment of its outstanding
debt.
ALLEGIANT TRAVEL: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Allegiant Travel Company to BB- from BB+.
Allegiant Air is an American low-cost airline that operates
scheduled and charter flights. As a major air carrier, it is the
ninth-largest commercial airline in the US. It is wholly owned by
Allegiant Travel Company, a publicly-traded company with 4,000
employees and over US$2.6 billion market capitalization.
ALLIANCE RESOURCE: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Alliance Resource Partners LP to BB+ from BBB+.
Alliance Resource Partners, L.P. is a diversified coal producer and
marketer with significant operations in the eastern United States.
ALLY FINANCIAL: Egan-Jones Lowers Local Curr. Unsec. Rating to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the local
currency senior unsecured ratings on debt issued by Ally Financial
Incorporated to BB+ from BBB-.
Ally Financial is a bank holding company organized in Delaware and
headquartered in Detroit, Michigan. The company provides financial
services including car finance, online banking via a direct bank,
corporate lending, vehicle insurance, mortgage loans, and an
electronic trading platform to trade financial assets.
AMERICAN AIRLINES: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B+
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Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by American Airlines Group Incorporated to B+ from
BB-.
American Airlines Group Incorporated is an American publicly traded
airline holding company headquartered in Fort Worth, Texas. It was
formed on December 9, 2013, in the merger of AMR Corporation, the
parent company of American Airlines, and US Airways Group, the
parent company of US Airways.
AMERICAN AIRLINES: Fitch Lowers Issuer Default Rating to B+
-----------------------------------------------------------
Fitch Ratings has taken rating actions on American Airlines
enhanced equipment trust certificates(EETC) transactions. The
rating actions are driven by the combined effects of Fitch's recent
downgrade of American's Issuer Default Rating (IDR) to 'B+' from
'BB-' and by new appraisal data indicating that levels of
overcollateralization is being pressured for certain transactions.
KEY RATING DRIVERS
Senior Certificates
Fitch has downgraded the class A certificates for American's 2015-1
and 2014-1 EETC transactions to 'A-' from 'A' and downgraded the
2013-1 class A certificates to 'BBB+ from 'A-'. Fitch has also
placed the 2017-1 class AA certificates and the 2013-2 class A
certificates on Rating Watch Negative (RWN). Ratings on the senior
certificates are primarily driven by updated appraisal data that
indicate lower levels of overcollateralization than was expected in
prior reviews. The 2015-1, 2014-1 and 2013-1 certificates have
heavy exposure to the 777-300ER where values have come under
pressure along with a general drop in demand for widebody aircraft.
The 2015-1 and 2014-1 transactions continue to pass Fitch's 'A'
level stress test, but with limited headroom, exposing them to
further negative actions should asset values depreciate faster than
Fitch's base assumptions. Given the ongoing disruption in the
aviation sector from the coronavirus, Fitch will continue to update
its models as Fitch receives updated appraisal data.
The Rating Watch on the 2017-1 class AA certificates reflects the
current uncertainty around aircraft values related to the impact of
the coronavirus. Certificates rated 'AA' denote a very low level of
total risk, and Fitch views near-term risk as elevated due to the
unprecedented nature of this disruption. The Rating Watch Negative
on the 2013-2 class A certificates reflects a provision in Fitch's
EETC criteria in which aircraft value stresses are assumed two
years in the future when the underlying airline is rated in the
'BB' category and one year in the future for airlines rated in the
'B' category. Fitch's recent downgrade of American to 'B+' affects
the timing of stress assumptions in its models. The 2013-2
transaction fails to pass Fitch's 'BBB' level stress test until
mid-2021, but is expected to pass the 'A' level stress test
thereafter as the 777-200ERs fall out of the collateral pool, and
the remaining collateral pool consists of relatively attractive
737-800s. This situation creates an elevated risk that senior
tranche holders could experience a shortfall in a bankruptcy
scenario in the near term (which is not Fitch's expectation), but
should become materially overcollateralized and maintain current
rating assuming American avoids financial distress over the next
year.
Affirmation of American's class A certificates reflect continuing
levels of overcollateralization that allow the transactions to pass
Fitch's 'A' level stress tests. It is not yet clear what impact the
coronavirus disruption will have on aircraft base values and
secondary market values, though it is clear that levels of
overcollateralization will weaken given the scale of the impact on
the aviation industry. Fitch will evaluate the stress rates that it
uses in its EETC models and determine whether further asset value
haircuts remain appropriate in what is likely to be an already
distressed market over the coming months.
Subordinated Certificates
Fitch has downgraded American's class B certificates by a notch to
reflect the recent downgrade of American's issuer rating to 'B+'
from 'BB-'. Fitch notches subordinated tranche EETC ratings from
the airline IDR based on three primary variables: 1) the
affirmation factor (0-3 notches for issuers in the 'B' category and
0-2 notches for issuers in the 'BB' category) 2) the presence of a
liquidity facility, (0-1 notch) and 3) recovery prospects (0-1
notch). Fitch has widened its affirmation factor notching to +3
notches for all rated transactions except for AAL 2013-2 and
2013-1, which receive lower affirmation factor scores due to age of
their collateral and relative pool size. Although affirmation
factor notching was widened, the downgrades reflect lower scores
for recovery prospects. Most transactions were revised to +0
notches from +1, due to the likelihood that aircraft values will
suffer from higher levels of inventory on the market as airlines
park aircraft due to the ongoing drop in demand. The US Airways
2012-2 class C certificates were affirmed at 'BB' reflecting a
wider notching for recovery and unchanged recovery notching (-1
notch based on subordinated position).
DERIVATION SUMMARY
The certificates rated 'AA' are in line with Fitch's ratings on
senior classes of EETCs issued by United, Spirit and Air Canada.
Fitch believes that these transactions compare well with recent
precedents. Stress scenario LTVs for 2017-1 and 2017-2 are in line
with or better than other transactions rated at 'AA'. The
collateral pools also compare well with other transactions rated
'AA', featuring diverse pools of collateral including newer vintage
737-800s, and 787s among others. Fitch will be evaluating
certificates of other carriers in the coming weeks to determine if
rating watches are warranted for other rated 'AA' tranches.
Class A certificates that are rated 'A' compare well with issuances
from United, Air Canada and British Airways that are also rated
'A'. Rating similarities are driven by similar levels of
overcollateralization and high quality pools of collateral. Class A
certificates rated at 'A-' are a notch lower than several other
comparable issuances primarily due to weaker levels of
overcollateralization.
The 'BBB-' ratings on the class B certificates rated at 'BBB-' are
derived through a four uplift from American's IDR. The four-notch
uplift reflects a high affirmation factor, benefit of a liquidity
facility and no benefit for recovery expectations. The 2013-2 class
Bs receive a two-notch affirmation uplift and a one-notch downward
adjustment for poor recovery prospects. The 2013-1 class Bs receive
a one-notch upward affirmation factor adjustment and one notch for
the benefit of a liquidity facility. The US Airways 2012-2 class C
certificates are two notches above American's corporate rating
reflecting a 3-notch affirmation factor adjustment offset by a one
notch downward adjustment for poor recovery prospects.
KEY ASSUMPTIONS
Key assumptions within the rating case for the issuer include a
harsh downside scenario in which American declares bankruptcy,
chooses to reject the collateral aircraft, and where the aircraft
are remarketed in the midst of a severe slump in aircraft values.
Fitch's models also incorporate a full draw on liquidity facilities
and include assumptions for repossession and remarketing costs.
Value stresses applied to key aircraft types in Fitch's models
include:
777-300ER - 25% A level stress
787-9 - 20% A level, 40% AA level
737-800 - 20% A level, 40% AA level
737 MAX 8 - 30% A level, 50% AA level
E-175 - 30% A level, 50% AA level
A321-200 - 20% A level
RATING SENSITIVITIES
Class AA and A certificates are primarily rated based on levels of
overcollateralization. Ratings may be downgraded due to asset value
declines that are sharper than assumed in Fitch's models. Class AA
certificates would also be downgraded below the 'AA' category if
American were to be downgraded to 'B-' or lower.
Class B and C certificates are notched up from the underlying
issuer rating. To the extent that if American's ratings were
downgraded, class B and C certificates would be downgraded in
kind.
Subordinated certificates could be upgraded by one notch if
recovery prospects were to solidify over time.
BEST/WORST CASE RATING SCENARIO
Ratings of Non-Financial Corporate issuers have a best-case rating
upgrade scenario (defined as the 99th percentile of rating
transitions, measured in a positive direction) of three notches
over a three-year rating horizon; and a worst-case rating downgrade
scenario (defined as the 99th percentile of rating transitions,
measured in a negative direction) of four notches over three years.
The complete span of best- and worst-case scenario credit ratings
for all rating categories ranges from 'AAA' to 'D'. Best- and
worst-case scenario credit ratings are based on historical
performance.
LIQUIDITY AND DEBT STRUCTURE
Class AA, A and B certificates all feature 18 month liquidity
facilities that would prevent an immediate event of default for the
certificates if American were to enter financial distress.
ESG Considerations
Relevant ESG issues for these transactions are related to the
issuing airline. Unless otherwise disclosed in this section, the
highest level of ESG credit relevance is a score of 3. ESG issues
are credit neutral or have only a minimal credit impact on the
entity, either due to their nature or the way in which they are
being managed by the entity.
AMERICAN TRANSPORTATION: A.M. Best Cuts Fin. Strength Rating to C++
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AM Best has downgraded the Financial Strength Rating to C++
(Marginal) from B (Fair) and the Long-Term Issuer Credit Rating to
"b" from "bb" of American Transportation Group Insurance Risk
Retention Group, Inc. (ATGI) (Raleigh, NC). The outlook of these
Credit Ratings (ratings) has been revised to negative from stable.
Concurrently, AM Best has withdrawn these ratings as the company
has requested to no longer participate in AM Best's interactive
rating process.
The ratings reflect ATGI's balance sheet strength, which AM Best
categorizes as very weak, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The rating downgrades and revision of outlooks to negative reflect
material erosion in ATGI's balance sheet strength as of Dec. 31,
2019, relative to its initial business plan. Annualized growth in
net written premiums and loss and loss adjustment expense reserves
has outpaced growth in policyholders' surplus significantly over
the past year, impacting not only underwriting and reserve leverage
measures—which compare unfavorably with those of the commercial
automobile industry composite—but also the balance of net
required capital to available capital depicted by the calculation
of risk-adjusted capitalization, as measured by Best's Capital
Adequacy Ratio (BCAR). These simultaneous conditions have resulted
in a significant shock to ATGI's balance sheet strength and created
uncertainty around AM Best's projections of the company's balance
sheet strength in the near term.
Operating performance over the past year fell below expectations
according to ATGI's initial business plan but remained broadly
consistent with what AM Best considered to be an adequate operating
performance assessment. The limited business profile assessment is
driven largely by ATGI's product concentration in the commercial
automobile insurance industry, which exposes results to potential
competitive, judicial, economic, or regulatory challenges. The
appropriate ERM assessment is driven by an evolving risk management
framework, and risk management capabilities that remain
appropriately commensurate with the complexity of the business.
AMKOR TECHNOLOGY: Egan-Jones Cuts Local Curr. Unsec. Rating to B+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the local
currency senior unsecured ratings on debt issued by Alliance
Resource Partners LP to B+ from BB-.
Amkor Technology, Incorporated is a semiconductor product packaging
and test services provider. The company has been headquartered in
Tempe, Arizona, since 2005, when it was moved from West Chester,
Pennsylvania, United States.
APARTMENT INVESTMENT: Egan-Jones Lowers Sr. Unsec. Ratings to BB+
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Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Apartment Investment & Management Company to BB+
from BBB-.
Apartment Investment & Management Company is a self-administered
and self-managed real estate investment trust. The trust owns a
geographically diversified portfolio of multifamily apartment
properties in the United States, the District of Columbia, and
Puerto Rico. Apartment Investment also provides property management
and asset management services.
APOLLO COMMERCIAL: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
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Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Apollo Commercial Real Estate Finance, Incorporated
to BB- from BBB.
Apollo Commercial Real Estate Finance, Incorporated is a real
estate investment trust. The Company primarily originates,
acquires, invests in and manages performing commercial first
mortgage loans, subordinate financings, commercial mortgage-backed
securities (CMBS) and other commercial real estate-related debt
investments.
ASBURY AUTOMOTIVE: Egan-Jones Lowers Unsec. Debt Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 25, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Asbury Automotive Group Incorporated to BB- from
BB+. EJR also downgraded the rating on commercial paper issued by
the Company to B from A3.
Asbury Automotive Group is a company based in Atlanta and was
founded in 1995. The company operates auto dealerships in various
parts of the United States. As of 2018, its rank in the Fortune 500
is 434 out of 500.
AUTODESK INC: Egan-Jones Lowers Sr. Unsec. Debt Ratings to BB
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Autodesk, Incorporated to BB from BB+.
Autodesk, Incorporated is an American multinational software
corporation that makes software services for the architecture,
engineering, construction, manufacturing, media, education, and
entertainment industries.
AYTU BIOSCIENCE: Delivers First Shipment of COVID-19 Rapid Tests
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Aytu BioScience, Inc. began shipping its Coronavirus Disease 2019
("COVID-2019") IgG/IgM Rapid Test to U.S. customers. Upon receipt
of the initial 100,000 tests, the company completed product
relabeling to ensure compliance with FDA guidance on COVID-19
serology test kits.
The Company has received orders for the COVID-19 IgG/IgM Rapid Test
from a broad range of healthcare customers including large medical
centers, municipalities, first responders, medical practices, and
other healthcare customers. The Company expects to have all
customer backorders filled in the coming days.
The Company's first 2,750 COVID-19 Rapid Tests have been purchased
by the Denver Police Department for use in screening Denver's first
responders. The test kits were delivered to Denver Chief of Police
Paul Pazen and members of his leadership team at Aytu BioScience's
corporate headquarters on April 2, 2020.
Josh Disbrow, chief executive officer of Aytu BioScience,
commented, "Upon receipt of our initial product shipment on March
31st, we immediately went to work to prepare the test kits for
commercial distribution. The Aytu team has worked very hard over
the last two days to relabel all 100,000 tests, and we're now
shipping product to our customers across the country. Importantly,
we are proud to be assisting our first responders here at home as
we delivered over 2,000 tests to Denver Police Chief Pazen and his
team. Our public safety personnel are doing outstanding work in
our communities throughout this crisis, so we're glad to be
partnering with Denver’s first responders in this fight."
Mr. Disbrow continued, "The demand for the COVID-19 IgG/IgM Rapid
Test has been substantial, so we have increased our order size to
500,000 tests (20,000 kits) to provide a larger supply to
healthcare professionals and first responders in need."
The COVID-19 IgG/IgM Rapid Test is a serology test used in the
rapid, qualitative and differential detection of IgG and IgM
antibodies to the 2019 Novel Coronavirus in human whole blood,
serum or plasma. This point-of-care test has been validated in a
126 patient clinical trial in China and is CE marked.
The Company believes that serology tests are a potentially powerful
tool for identifying anyone who has been infected, whether they had
symptoms or not. Antibodies to coronaviruses typically remain in
humans for up to 90 days or more. The Company believes that
serological testing is important in identifying the total number of
people who have been infected with COVID-19. This type of testing
could be particularly important for the immune surveillance of
health care workers, first responders, government workers, and
others whose infection risks could be heightened by working with
COVID-19 infected individuals.
About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) --
http://www.aytubio.com-- is a commercial-stage specialty
pharmaceutical company focused on commercializing novel products
that address significant patient needs. The company currently
markets a portfolio of prescription products addressing large
primary care and pediatric markets. The primary care portfolio
includes (i) Natesto, an FDA-approved nasal formulation of
testosterone for men with hypogonadism, (ii) ZolpiMist, an
FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra
XR, an FDA-approved 12-hour codeine-based antitussive syrup.
Aytu Bioscience reported a net loss of $27.13 million for the year
ended June 30, 2019, compared to a net loss of $10.18 million for
the year ended June 30, 2018. As of Dec. 31, 2019, the Company had
$74.48 million in total assets, $57.39 million in total
liabilities, and $16.76 million in total stockholders' equity.
Plante & Moran, PLLC, in Denver, CO, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
Sept. 26, 2019, on the Company's consolidated financial statements
for the year ended June 30, 2019, citing that the Company has
suffered recurring losses from operations and has an accumulated
deficit that raise substantial doubt about its ability to continue
as a going concern.
B&G FOODS: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B
---------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by B&G Foods, Incorporated to B from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
B&G Foods is a holding company for branded foods. It was founded in
1889 to sell pickles, relish and condiments. The B&G name is from
the Bloch and Guggenheimer families, sellers of pickles in
Manhattan. It is based in Parsippany, New Jersey and has about
2,500 employees.
BALLY TECHNOLOGIES: Egan-Jones Lowers Sr. Unsec. Ratings to BB+
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Bally Technologies, Incorporated to BB+ from BBB-.
Bally Technologies, Incorporated is an American manufacturer of
slot machines and other gaming technology based in Enterprise,
Nevada. It is owned by Scientific Games Corporation. The company
was founded in 1968 as Advanced Patent Technology.
BOISE CASCADE: Egan-Jones Lowers Senior Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Boise Cascade Company to BB- from BB.
Boise Cascade Company, which uses the trade name Boise Cascade, is
a North American manufacturer of wood products and wholesale
distributor of building materials, headquartered in Boise, Idaho.
BOYD GAMING: Egan-Jones Lowers Senior Unsecured Debt Ratings to CCC
-------------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Boyd Gaming Corporation to CCC from B-. EJR also
downgraded the rating on commercial paper issued by the Company to
C from B.
Boyd Gaming Corporation is an American gaming and hospitality
company based in Paradise, Nevada. The company continues to be run
by founder Sam Boyd's family under the management of Sam's son,
Bill Boyd, who currently serves as the company's executive chairman
after retiring as CEO in January 2008.
BREAULT RESEARCH: Unsecureds to Have 53% Recovery in Plan
---------------------------------------------------------
Debtor Breault Research Organization, Inc., filed with the U.S.
Bankruptcy Court for the District of Arizona a Plan of
Reorganization and a Disclosure Statement.
Class 4 unsecured non-priority claims of non-insiders total
$1,348,596. After Class 1 priority claims are paid in full, holders
of allowed Class 4 claims will be paid quarterly distributions of a
pro-rata share of all of the Disposable Income of the Debtor until
the Class 4 Claims have received 5% of their allowed claims. Then
holders of Class 4 claims will be paid quarterly distributions of a
pro-rata share of 25% of the Debtor's Disposable Income until the
earlier of 48 months after the Plan Effective Date, or the holders
of Class 4 claims are paid in full plus interest calculated at the
Federal judgment rate on the Plan Effective Date.
Class 5 consists of the unsecured non-priority claims of insiders.
After Class 4 claims are paid 5% of their allowed claims, holders
of allowed Class 5 claims will be paid quarterly distributions of a
pro-rata share of 10% of the Disposable Income of the Debtor.
After Class 4 Claims are paid 50% of their allowed claims, Class 5
creditors will be paid quarterly distributions of a pro-rata share
of 50% of the Disposable Income of the Debtor.
Class 6 consists of the equity interests in the Debtor. The Debtor
has 14 holders of common stock, and one preferred shareholders.
Holders of allowed Class 6 Interests will be cancelled on the
Effective Date and receive nothing under the Plan, unless such
Class 6 Equity Holder contributes cash to the on the Effective Date
equal to 8% of allowed Class 4 non-insider non-priority unsecured
claims (estimated to be $108,000). Shares in the Reorganized Debtor
will be issued only to the Class 6 Equity Holders that make the
required capital contribution.
The Debtor is a service provider, whose assets are likely to yield
under 10% of the amounts owed to creditors. The Debtor estimates
that under the Plan, priority unsecured claims will be paid in
full, while non-insider unsecured creditors will receive over 50%
of their allowed claims. Non-insider unsecured claims under the
Plan expect to be paid approximately 53% of their allowed claims,
while the liquidation analysis provides that unsecured creditors
will be paid just 12% of their allowed claims.
The Plan will be funded as follows: $232,000 of cash available on
the Effective Date; Effective Date Payments, estimated to total
$45,000, of which $108,000 comes from a new value; and/or Projected
net/disposable income of not less than $63,000 per quarter for a
term of 48 months.
A full-text copy of the Disclosure Statement dated March 20, 2020,
is available at https://tinyurl.com/vyglqhe from PacerMonitor at no
charge.
Counsel for Debtor:
Kasey C. Nye
WATERFALL, ECONOMIDIS, CALDWELL, HANSHAW & VILLAMANA,
P.C.
Williams Center, Suite 800
5210 E. Williams Circle
Tucson, AZ 85711
Tel: (520) 790-5828
E-mail: knye@waterfallattorneys.com
About Breault Research Organization
Breault Research Organization, Inc. -- http://www.breault.com/--is
an optical engineering firm providing optical software products and
training courses that help engineers turn creative visions into
working prototypes, and the Company's own engineers work on
projects for Fortune 500 companies, research institutions, and top
government labs. BRO provides optical engineering services for
companies requiring optical design solutions that outperform the
competition. Clients include Agilent, Raytheon, General Dynamics,
Lockheed Martin, NASA, and many other recognized names in industry.
BRO is a privately held company headquartered in Tucson, Arizona.
Breault Research Organization, based in Tucson, AZ, filed a Chapter
11 petition (Bankr. D. Ariz. Case No. 19-08754) on July 16, 2019.
In the petition signed by Matthew Pobloske, president, the Debtor
was estimated to have $500,000 to $1 million in assets and $1
million to $10 million in liabilities. Kasey C. Nye, Esq., at
Waterfall Economidis Caldwell Hanshaw & Villamana, P.C., serves as
bankruptcy counsel to the Debtor.
BRIGGS & STRATTON: Egan-Jones Lowers Unsec. Debt Ratings to CCC+
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Briggs & Stratton Corporation to CCC+ from B-.
Headquartered in Milwaukee, Wisconsin, Briggs & Stratton
Corporation is a producer of gasoline engines for outdoor power
equipment, and is a leading designer, manufacturer and marketer of
power generation, pressure washer, lawn and garden, turf care and
job site products through its Briggs & Stratton(R), Simplicity(R),
Snapper(R), Ferris(R), Vanguard(R), Allmand(R), Billy Goat(R),
Murray(R), Branco(R) and Victa(R) brands.
BRIGHT MOUNTAIN: Delays Filing of 2019 Annual Report
----------------------------------------------------
Bright Mountain Media, Inc., filed a Form 12b-25 with the
Securities and Exchange Commission notifying the delay in the
filing of its Annual Report on Form 10-K for the year ended Dec.
31, 2019. The Company was unable to file its Annual Report on Form
10-K without unreasonable effort or expense because of the
extensive and complex issues raised by the Company's recent
acquisitions. The Company expects to file its Form 10-K on or
before the fifteenth calendar day following the prescribed due
date.
About Bright Mountain
Based in Boca Raton, Fla., Bright Mountain Media, Inc. --
http://www.brightmountainmedia.com/-- is a digital media holding
company whose primary focus is connecting brands with consumers as
a full advertising services platform. Bright Mountain Media's
assets include an ad network, an ad exchange platform and 24
websites which are customized to provide its niche users, including
active, reserve and retired military, law enforcement, first
responders and other public safety employees with products,
information and news that the Company believes may be of interest
to them.
Bright Mountain reported a net loss attributable to common
shareholders of $5.33 million for the year ended Dec. 31, 2018,
compared to a net loss attributable to common shareholders of $3.01
million for the year ended Dec. 31, 2017. As of Sept. 30, 2019,
Bright Mountain had $28.36 million in total assets, $7.23 million
in total liabilities, and $21.13 million in total shareholders'
equity.
EisnerAmper LLP, in Iselin, New Jersey, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 12, 2019, on the Company's consolidated financial statements
for the year ended Dec. 31, 2018, stating that the Company has
experienced recurring net losses, cash outflows from operating
activities, and has an accumulated deficit that raise substantial
doubt about its ability to continue as a going concern.
CACI INTERNATIONAL: Egan-Jones Lowers Senior Unsec. Ratings to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by CACI International Incorporated to BB from BBB-.
CACI International Incorporated is an American multinational
professional services and information technology company
headquartered in Arlington, Virginia. CACI provides services to
many branches of the US federal government including defense,
homeland security, intelligence, and healthcare.
CAH ACQUISITION 16: Trustee's 200K Cash Sale of All Assets Approved
-------------------------------------------------------------------
Judge Joseph N. Callaway of the U.S. Bankruptcy Court for the
Eastern District of North Carolina authorized Thomas W. Waldrep,
Jr., the duly appointed Chapter 11 Trustee in the case of CAH
Acquisition Co. 16, LLC, doing business as Haskell County Community
Hospital, to sell all real property and associated personal
property of the Debtor, to Haskell Regional Hospital, Inc. for
$200,000 in cash and retention by the estate of 100% of the
accounts receivable.
The Agreement and all of the terms and conditions thereof are
approved.
The Sale is free and clear of all Liens, Claims, Encumbrances and
other interests, with such Liens, Claims, Encumbrances and other
interests to attach to the proceeds of the Sale.
At Closing, the Purchaser will remit to the Trustee the cash
purchase price of $200,000, less the amount of any deposit held by
the Trustee.
Pursuant to Sections 365(a), (b), (c), and (f) of the Bankruptcy
Code, the Trustee, on behalf of the Debtor, is authorized to assume
and assign the Assumed Executory Contracts, which are referred to
as the Assumed Contracts in the APA, subject to the procedures
provided. The Assumed Executory Contracts identified on Schedule
2.7 of the Agreement are deemed assumed by the Trustee and assigned
to the Purchaser effective as of the Closing Date.
The Order will take effect immediately, will not be stayed, and the
Court finds and concludes that good cause exists to waive any
applicable stay provided under Bankruptcy Rules 6004(g), 6004(h),
6006(d), 7062, 9014, or otherwise. Accordingly, any such stay is
waived, and the Trustee and the Purchaser are authorized to close
the Sale immediately upon entry of the Order in accordance with and
subject in all respects to the terms and conditions of the
Agreement.
The Order constitutes a final and appealable order within the
meaning of 28 U.S.C. Section 158(a) notwithstanding Bankruptcy
Rules 6004(h) and 6006(d).
A copy of the APA is available at https://tinyurl.com/sqwzaby from
PacerMonitor.com free of charge.
About Haskell County Community Hospital
CAH Acquisition Company 16, LLC, is a Delaware limited liability
company that owns a for-profit, 25-bed hospital 401 NW H Street,
Stigler, Oklahoma 74462. The Hospital is classified a Critical
Access Hospital by the Centers for Medicare and Medicaid Services.
It is currently owned by two members, HMC/CAH Consolidated, Inc.
and Health Acquisition Company, LLC. Prior to March 2017, the
Debtor was wholly owned by HMC/CAH.
On March 17, 2019, CAH Acquisition Company 16, LLC d/b/a Haskell
County Community Hospital, filed a voluntary petition for relief
under Chapter 11 of Title 11 of the United States Code (Bankr.
E.D.N.C. Case No. 19-01227-5).
The case is jointly administered along with six other critical
access hospitals under the Chapter 11 case of CAH Acquisition
Company #1, LLC d/b/a Washington County Hospital, Case No.
19-00730-5-JNC.
On March 15, 2019, Thomas W. Waldrep, Jr., was appointed as Chapter
11 Trustee for the Debtors. The Trustee's own firm, WALDREP LLP,
serves as counsel in the Chapter 11 case. Sherwood Partners, Inc.,
was appointed as sales agent to the Trustee.
CAN B CORP: Reports $4.59 Million Net Loss in 2019
--------------------------------------------------
Can B Corp. filed with the Securities and Exchange Commission its
Annual Report on Form 10-K reporting a loss and comprehensive loss
of $4.59 million on $2.31 million of total revenues for the year
ended Dec. 31, 2019, compared to a loss and comprehensive loss of
$4.11 million on $668,603 of total revenues for the year ended Dec.
31, 2018.
As of Dec. 31, 2019, the Company had $6.93 million in total assets,
$564,666 in total liabilities, and $6.37 million in total
stockholders' equity.
At Dec. 31, 2019, the Company had cash and cash equivalents of
$46,540 and a working capital of $2,881,147. Cash and cash
equivalents decreased $761,207 from $807,747 at Dec. 31, 2018 to
$46,540 at Dec. 31, 2019. For the year ended Dec. 31, 2019,
$3,312,495 was provided by financing activities, $2,413,420 was
used in operating activities, and $1,660,282 was used in investing
activities.
The Company currently has no agreements, arrangements or
understandings with any person to obtain funds through bank loans,
lines of credit or any other sources.
The Company currently has no commitments with any person for any
capital expenditures.
BMKR, LLP, in Hauppauge, NY, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated March
26, 2020 citing that the Company's significant operating losses
raise substantial doubt about its ability to continue as a going
concern.
On Jan. 30, 2020, the World Health Organization announced a global
health emergency because of a new strain of coronavirus originating
in Wuhan, China (the "COVID-19 outbreak") and the risks to the
international community as the virus spreads globally beyond its
point of origin. In March 2020, the WHO classified the COVID-19
outbreak as a pandemic, based on the rapid increase in exposure
globally.
The Company stated, "The full impact of the COVID-19 outbreak
continues to evolve as of the date of this report. As such, it is
uncertain as to the full magnitude that the pandemic will have on
our financial condition, liquidity, and future results of
operations. Management is actively monitoring the impact of the
global situation on our financial condition, liquidity, operations,
suppliers, industry, and workforce. Given the daily evolution of
the COVID-19 outbreak and the global responses to curb its spread,
we are not able to estimate the effects of the COVID-19 outbreak on
our results of operations, financial condition, or liquidity for
the year ended December 31, 2020."
A full-text copy of the Form 10-K is available for free at:
https://is.gd/BUUpnN
About Can B Corp
Headquartered in Hicksville New York, Canbiola, Inc. (now known as
Can B Corp) -- http://www.canbiola.com/-- develops, produces, and
sells products and delivery devices containing CBD. Cannabidiol
("CBD") is one of nearly 85 naturally occurring compounds
(cannabinoids) found in industrial hemp (it is also contained in
marijuana). The Company's products contain CBD derived from Hemp
and include products such as oils, creams, moisturizers, isolate,
and gel caps. In addition to offering white labeled products,
Canbiola has developed its own line of proprietary products, as
well as seeking synergistic value through acquisitions of products
and brands in the Hemp industry.
CAREVIEW COMMUNICATIONS: Incurs $14.1 Million Net Loss in 2019
--------------------------------------------------------------
Careview Communications, Inc., filed with the Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $14.14 million on $6.29 million of net revenues for the
year ended Dec. 31, 2019, compared to a net loss of $16.08 million
on $6.09 million of net revenues for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $5.29 million in total assets,
$97.03 million in total liabilities, and a total stockholders'
deficit of $91.74 million.
The Company's cash position at Dec. 31, 2019 was approximately
$269,741.
BDO USA, LLP, in Dallas, Texas, the Company's auditor since 2010,
issued a "going concern" qualification in its report dated March
30, 2020, citing that the Company has suffered recurring losses
from operations and has accumulated losses since inception that
raise substantial doubt about its ability to continue as a going
concern.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/qjW0tX
About CareView Communications
CareView Communications, Inc. -- http://www.care-view.com/-- is a
provider of products and on-demand application services for the
healthcare industry, specializing in bedside video monitoring,
software tools to improve hospital communications and operations,
and patient education and entertainment packages. Its proprietary,
high-speed data network system is the next generation of patient
care monitoring that allows real-time bedside and point-of-care
video monitoring designed to improve patient safety and overall
hospital costs. The entertainment packages and patient education
enhance the patient's quality of stay. CareView is dedicated to
working with all types of hospitals, nursing homes, adult living
centers and selected outpatient care facilities domestically and
internationally. The Company's corporate offices are located at
405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067.
CEDAR FAIR: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B-
-----------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cedar Fair, L.P. to B- from BB-. EJR also downgraded
the rating on commercial paper issued by the Company to B from A3.
Cedar Fair, L.P., doing business as the Cedar Fair Entertainment
Company, is a publicly-traded master limited partnership
headquartered at its Cedar Point amusement park in Sandusky, Ohio.
CHAMPION BLDRS: $1.5K Sale of Channel Trailer to Scott Approved
---------------------------------------------------------------
Judge Robert E, Nugent of the U.S. Bankruptcy Court for the
District of Kansas authorized Champion Bldrs., LLC's sale of its
personal property, specifically the 8 x 20 Channel trailer, VIN
1F9FS0372191086, to Tyson Scott for $1,500, for titling purposes.
The sale of the Trailer is complete. The Director of Motor
Vehicles, Title Division, Department of Revenue, is ordered to
issue title to Scott, 5400 NW Arroyo Drive, Topeka, Kansas 66618,
for the Trailer free and clear of all liens and encumbrances of
record.
About Champion Bldrs.
Champion Bldrs, LLC, based in Topeka, KS, filed a Chapter 11
petition (Bankr. D. Kan. Case No. 18-12175) on Nov. 6, 2018. In
the petition signed by Greg L. Murray, president/manager, the
Debtor disclosed $1,964,150 in assets and $3,411,715 in
liabilities. The Hon. Robert E. Nugent oversees the case. Edward
J. Nazar, Esq., at Hinkle Law Firm LLC, serves as bankruptcy
counsel.
CHAMPION BLDRS: $2.1K Sale of Channel Trailer to Scott Approved
---------------------------------------------------------------
Judge Robert E, Nugent of the U.S. Bankruptcy Court for the
District of Kansas authorized Champion Bldrs., LLC's sale of its
personal property, specifically the 8 x 20 Channel trailer, VIN
1F9FS0372119085, to Tyson Scott for $2,100, for titling purposes.
The sale of the Trailer is complete. The Director of Motor
Vehicles, Title Division, Department of Revenue, is ordered to
issue title to Scott, 5400 NW Arroyo Drive, Topeka, Kansas 66618,
for the Trailer free and clear of all liens and encumbrances of
record.
About Champion Bldrs.
Champion Bldrs, LLC, based in Topeka, KS, filed a Chapter 11
petition (Bankr. D. Kan. Case No. 18-12175) on Nov. 6, 2018. In
the petition signed by Greg L. Murray, president/manager, the
Debtor disclosed $1,964,150 in assets and $3,411,715 in
liabilities. The Hon. Robert E. Nugent oversees the case. Edward
J. Nazar, Esq., at Hinkle Law Firm LLC, serves as bankruptcy
counsel to the Debtor.
CHARLES RIVER: Egan-Jones Lowers Senior Unsecured Ratings to BB+
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Charles River Laboratories International
Incorporated to BB+ from BBB-.
Charles River Laboratories, Incorporated, is an American
corporation specializing in a variety of preclinical and clinical
laboratory services for the pharmaceutical, medical device, and
biotechnology industries.
CHARTER COMMUNICATIONS: Egan-Jones Lowers Sr. Unsec. Ratings to BB
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Charter Communications Incorporated to BB from BB+.
Charter Communications, Incorporated operates cable television
systems in the United States. The Company offers a full range of
traditional cable television services, as well as digital cable
television services to customers in some of its systems.
CHENIERE ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to B-
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cheniere Energy, Incorporated to B- from B+. EJR
also downgraded the rating on FC commercial paper issued by the
Company to B from A3.
Cheniere Energy, Incorporated is a liquefied natural gas company
headquartered in Houston, Texas. In February 2016, it became the
first U.S. company to export liquefied natural gas.
CHESAPEAKE ENERGY: Egan-Jones Lowers Sr. Unsecured Ratings to CCC-
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Chesapeake Energy Corporation to CCC- from B. EJR
also downgraded the rating on commercial paper issued by the
Company to C from B.
Chesapeake Energy Corporation is an American petroleum and natural
gas exploration and production company headquartered in Oklahoma
City. The company is named after the founder's love for the
Chesapeake Bay region.
CIMAREX ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cimarex Energy Company to BB+ from BBB.
Cimarex Energy Company is a company engaged in hydrocarbon
exploration. It is organized in Delaware and headquartered in
Denver, Colorado, with operations primarily in Texas, Oklahoma, and
New Mexico.
CITADEL EXPLORATION: Delays Form 10-K Over Coronavirus Pandemic
---------------------------------------------------------------
Citadel Exploration, Inc. was unable to file its Annual Report on
Form 10-K for the year ended Dec. 31, 2019 within the prescribed
time period due to the coronavirus pandemic. The Annual Report
will be filed on or before the fifteenth calendar day following the
prescribed due date.
About Citadel
Headquartered in Newport Beach, CA, Citadel --
http://www.citadelexploration.com/-- is an energy company engaged
in the exploration and development of oil and natural gas
properties. The Company's primary focus is on properties located
in the San Joaquin Basin of California.
Citadel reported a net loss of $2.53 million for the year ended
Dec. 31, 2018, compared to a net loss of $1.75 million for the year
ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had $5.93
million in total assets, $7.41 million in total liabilities, and a
total stockholders' deficit of $1.47 million.
MaloneBailey, LLP, in Houston, Texas, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 16, 2019, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
CLEVELAND BIOLABS: Delays Filing of 2019 Annual Report
------------------------------------------------------
Cleveland BioLabs, Inc., was not, without unreasonable effort or
expense, able to file its Annual Report on Form 10-K for the fiscal
year ended Dec. 31, 2019 by the applicable due date due to the
Company not having resolved an issue pertaining to the accounting
treatment of certain cost overrun amounts under certain of its
contracts. The Company continues to discuss these matters and
assess their materiality with its independent registered public
accounting firm and intends to file the Form 10-K within the 15-day
extension period provided by Rule 12b-25.
Due to the ongoing work of the Registrant in determining the effect
of the error on its current and prior-period financial results, the
Registrant is unable to make a reasonable estimate of any changes
in results of operations for the year ended Dec. 31, 2019 compared
to Dec. 31, 2018 until such work is completed. However, the
Company expects to report that operating results for the fiscal
year ended Dec. 31, 2019 will reflect (i) a decrease in revenue due
to a decrease in revenue from the Registrant's Incuron service
contract and from its Joint Warfighter Medical Research Program
contract for preclinical studies, partially offset by an increase
in revenues under its Peer Reviewed Medical Research Program
contract due to the commencement of preparatory activities for a
clinical study, (ii) a decrease in research and development
expenses due to reductions of funds spent on entolimod for
biodefense due to reduced preclinical development activity in
connection with delays related to the biocomparability study and
(iii) a reduction in net loss.
About Cleveland BioLabs
Cleveland BioLabs, Inc. -- http://www.cbiolabs.com/-- is a
biopharmaceutical company developing novel approaches to activate
the immune system and address serious medical needs. The Company's
proprietary platform of Toll-like immune receptor activators has
applications in radiation mitigation and oncology. The Company's
most advanced product candidate is entolimod, which is being
developed as a medical radiation countermeasure for the prevention
of death from acute radiation syndrome and other indications in
radiation oncology. The Company was incorporated in Delaware in
June 2003 and is headquartered in Buffalo, New York.
Cleveland BioLabs incurred a net loss of $3.70 million during the
year ended Dec. 31, 2018, and a net loss of $9.84 million during
the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company
had $2.23 million in total assets, $565,682 in total liabilities,
and $1.66 million in total stockholders' equity.
Meaden & Moore, Ltd., in Cleveland, Ohio, the Company's auditor
since 2005, issued a "going concern" qualification in its report
dated March 7, 2019, citing that the Company continues to have
negative cash flow from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
CLEVELAND-CLIFFS INC: Egan-Jones Lowers Sr. Unsecured Ratings to B
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cleveland-Cliffs, Incorporated to B from BB-. EJR
also downgraded the rating on commercial paper issued by the
Company to B from A3.
Cleveland-Cliffs, Incorporated, formerly Cliffs Natural Resources,
is a Cleveland, Ohio, business firm that specializes in the mining,
beneficiation, and pelletizing of iron ore. The firm is a public
company.
COEUR MINING: Egan-Jones Lowers Local Curr. Unsecured Rating to CCC
-------------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the local
currency senior unsecured ratings on debt issued by Coeur Mining,
Incorporated to CCC from B-. EJR also downgraded the rating on LC
commercial paper issued by the Company to C from B.
Coeur Mining, Incorporated is a precious metal mining company
listed on the New York Stock exchange. It operates five mines
located in North America.
CONTINENTAL RESOURCES: Egan-Jones Lowers Sr. Unsec. Ratings to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Continental Resources, Incorporated to BB from BBB-.
Continental Resources, Incorporated, based in Oklahoma City, is
focused on the exploration and production of on-shore oil-prone
plays in the United States. The Company concentrates its leasehold
and production strategies in the Bakken of North Dakota and
Montana, as well as Oklahoma in its recently discovered SCOOP play
and the Northwest Cana play.
CORECIVIC INC: Egan-Jones Lowers Sr. Unsec. Debt Ratings to BB
--------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by CoreCivic, Incorporated to BB from BBB.
CoreCivic, Incorporated formerly the Corrections Corporation of
America, is a company that owns and manages private prisons and
detention centers and operates others on a concession basis.
CORNERSTONE PAVERS: Judge Approves Final Use of Cash Collateral
---------------------------------------------------------------
Judge G. Michael Halfenger of the U.S. Bankruptcy Court for the
Eastern District of Wisconsin issued an order approving Cornerstone
Pavers LLC and Burlington Pavers Leasing, LLC's final use of the
cash collateral in which Community State Bank ("Bank") and West
Bend Mutual Insurance Company ("Surety") may have an interest.
The Debtors' authority to use cash collateral will terminate upon
the appointment of a trustee, the dismissal of the chapter 11
cases, entry of a permanent order permitting the use of cash
collateral or further order of the Court.
Pursuant to the Order:
(a) The Debtors will grant the Bank a replacement lien of the
same priority to the same extent and in the same collateral as the
Bank had prior to the chapter 11 filing. The Bank will retain its
lien on machinery and equipment having a value of more than $3.3
million as well as any other assets that are the Bank's
collateral.
(b) The Debtors will make interest only payments to the Bank
from funds that are not "trust funds."
(c) The Debtors will provide reports of its receipts and
disbursements once a month consistent with the Debtors' monthly
operating report requirements for its chapter 11 case, inclusive of
monthly balance sheets and income statements.
(d) The Debtors will maintain insurance on all their assets.
Cornerstone Pavers is also authorized to pay Burlington Pavers the
lease payments for use of machinery and equipment as has been done
in the ordinary and usual course of their business relationship.
However, such payments must not exceed the sum of Burlington
Pavers' (i) lease payments to third-party non-debtor entities, (ii)
interest payments to the Bank, (iii) wages with all associated
benefits and taxes, (iv) quarterly fees owed the U.S. Trustee, (v)
professional fees incurred during the chapter 11 cases and approved
by the Court, and (vi) costs of repairs for the machinery and
equipment, which the Debtors estimate will be approximately $20,000
per month through April 30 and $10,000 afterwards, excluding
machinery and equipment repair costs. The lease payments will not
be made from "trust funds."
A copy of the Order is available for free at https://is.gd/sgJK5i
from PacerMonitor.com.
About Cornerstone Pavers
Cornerstone Pavers, LLC -- https://www.cornerstonepaversusa.com/ --
is a heavy and highway concrete paving company that has performed a
wide variety of concrete paving, patching, grading, sidewalk and
curb & gutter work as a prime contractor and as a subcontractor
since its incorporation in 2005.
The Debtor filed a Chapter 11 petition (Bankr. E.D. Wis. Case No.
20-20882) on Feb, 4, 2020. On the Petition Date, the Debtor was
estimated to have between $1 million and $10 million in both assets
and liabilities. The petition was signed by Christopher C. Cape,
manager. Judge Katherine M. Perhach oversees the case. Kerkman &
Dunn is the Debtor's counsel.
CPI INTERNATIONAL: S&P Downgrades ICR to 'B-', Outlook Stable
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on CPI
International Inc. to 'B-' from 'B'. The outlook is stable. At the
same time, S&P lowered its rating on the company's proposed $188
million incremental first-lien term loan, as well as existing $35
million revolving credit facility, and $470 million first-lien term
loan to 'B-' from 'B'. The '4' recovery rating is unchanged.
S&P also lowered its rating on the company's $100 million
second-lien term loan to 'CCC' from 'CCC+'. The '6' recovery rating
is unchanged.
CPI's credit metrics will be weaker than S&P previously expected as
a result of the coronavirus. Although the magnitude and timing of
the COVID-19's impacts remain uncertain, the virus will likely have
a material effect on CPI's credit metrics. About half of CPI's
revenue comes from its communications segment, with slightly over
half of sales to commercial customers, which includes in-flight
entertainment and connectivity.
"We expect demand for these products to decline as airlines try to
conserve cash. The pandemic could also disrupt the company's
operations or those of its suppliers. We expect its defense
business, about a third of revenues, to remain more stable. We now
expect debt to EBITDA of 8.7x-9.1x in fiscal 2020 (ending Sept. 30,
2020), compared to our previous expectations of 7.5x-8x," S&P
said.
The stable outlook on CPI reflects S&P's expectation that, although
leverage will increase due to potential coronavirus impacts and the
proposed GD SATCOM transaction, the rating agency believes the
company's liquidity will remain adequate. S&P expects pro forma
debt to EBITDA of about 8.7x-9.1x in 2020 (including one-time
transaction costs of $15 million), improving to 6.8x-7.2x in 2021,
due to the absence of one-time costs and improved profitability.
"We could lower our ratings on CPI if we expect negative free cash
flow to result in deteriorating liquidity. This could occur if the
impact from the coronavirus pandemic is larger than we anticipate,
integration issues, continued program delays, weakness in key
markets, or additional debt-financed acquisitions. We could also
lower the rating if these factors increase leverage to the point
that we no longer believe the company's capital structure is
sustainable," S&P said.
"Although unlikely given the uncertainties over the coronavirus
pandemic, the delayed GD SATCOM acquisition close, and
underperformance of CPI's legacy business, we could raise our
rating on CPI within the next 12 months if its debt to EBITDA
declines below 7x and we expect it to remain there. This could
occur if the impact of the coronavirus is less than we forecast,
the company successfully integrates the acquired business, and
CPI's earnings increase more than we expect. We would also expect
the company's owners to commit to maintain debt to EBITDA below 7x
even with future dividends or acquisitions," the rating agency
said.
CSG SYSTEMS: Egan-Jones Lowers Senior Unsecured Ratings to BB
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by CSG Systems International Incorporated to BB from
BBB.
CSG is a multinational corporation headquartered in Greenwood
Village, Colorado. It provides Business Support Systems software
and services, primarily to the telecommunications industry. CSG was
founded by Neal Hansen as a division of First Data in 1982.
DANA INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB
-------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Dana Incorporated to BB from BBB-.
Dana Incorporated is an American supplier of axles, driveshafts,
transmissions, and electrodynamic, thermal, sealing, and digital
equipment for conventional, hybrid, and electric-powered vehicles.
The company's products and services are aimed at the light vehicle,
commercial vehicle, and off-highway equipment markets.
DARDEN RESTAURANTS: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Darden Restaurants, Incorporated to BB+ from BBB-.
Darden Restaurants, Incorporated is an American multi-brand
restaurant operator headquartered in Orlando.
DAVITA INC: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
--------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by DaVita Incorporated to BB- from BB.
DaVita Incorporated provides kidney dialysis services through a
network of 2,753 outpatient dialysis centers in the United States,
serving 206,900 patients, and 259 outpatient dialysis centers in 10
other countries serving 28,700 patients.
DELUXE CORP: Egan-Jones Lowers Sr. Unsecured Debt Ratings to BB
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Deluxe Corporation to BB from BBB-.
Deluxe Corporation is an American small business financial services
company. Deluxe produces personal and business checks, logo design,
website development, hosting, email marketing, social media
management, search engine marketing, and fraud protection
services.
DENBURY RESOURCES: Egan-Jones Lowers Sr. Unsecured Ratings to CCC-
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 26, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Denbury Resources Incorporated to CCC- from B-. EJR
also downgraded the rating on LC commercial paper issued by the
Company to C from B.
Denbury Resources is a company engaged in hydrocarbon exploration.
It is organized in Delaware and headquartered in Plano, Texas. The
company extracts petroleum via enhanced oil recovery, which
utilizes carbon dioxide to extract petroleum from fields that have
been previously exploited.
DEVON ENERGY: Egan-Jones Lowers Sr. Unsec. Debt Ratings to BB
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Devon Energy Corporation to BB from BBB.
Devon Energy Corporation is a company engaged in hydrocarbon
exploration in the United States. It is organized in Delaware and
headquartered in the 50-story Devon Energy Center in Oklahoma City,
Oklahoma.
DIAMONDBACK ENERY: Egan-Jones Cuts Loc. Curr. Unsec. Rating to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the local
currency senior unsecured rating on debt issued by Diamondback
Energy Incorporated to BB from BBB.
Diamondback Energy is a company engaged in hydrocarbon exploration.
It is organized in Delaware and headquartered in Midland, Texas.
DIGITAL RIVER: S&P Downgrades ICR to 'CCC+', Outlook Stable
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Digital
River Inc. to 'CCC+' from 'B-'. S&P lowered its issue-level rating
on the company's first-lien term loan to 'B-' from 'B'. The
recovery rating is '2'. S&P also lowered its issue-level rating on
the company's second-lien term loan to 'CCC' from 'CCC+'. The
recovery rating is '5'.
"The downgrade is based on our expectation of negative free cash
flow persisting through 2020, primarily stemming from continued
investment into its business as well as the planned attrition of a
large client , which accounted for ~9% of revenue in 2019. The lost
client was the second largest customer that started pulling
e-commerce sales from Digital River, although it only used its
services for U.S. sales and will comprise a minute portion of
revenue in 2020. Furthermore, the company's negative free operation
cash flow could persist longer from increased costs associated with
optimizing its platform and the timing of realization of one-time
restructuring costs, which we do not add to the EBITDA base," S&P
said.
The stable outlook reflects S&P's expectation that despite
sufficient cash on hand over the near term, Digital River depends
on favorable business turnaround and improving financial conditions
to meet its debt obligations longer term.
"We could lower our issuer credit rating on Digital River if we
expect a heightened risk of default over the next 12 months.
Further client attrition or increasingly negative FOCF beyond 2020
could lead to that scenario," S&P said.
"We could raise the rating if the company returns to sustained
positive FOCF from stabilized organic revenue growth from
successful execution of its new go-to-market strategy and improve
EBITDA margin. We would also expect leverage to be on a path of
decline," the rating agency said.
DOLLAR TREE: Egan-Jones Lowers Senior Unsecured Ratings to BB
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Dollar Tree Incorporated to BB from BB+.
Dollar Tree Stores, Incorporated, formerly known as Only $1.00, is
an American chain of discount variety stores that sells items for
$1 or less. Headquartered in Chesapeake, Virginia, it is a Fortune
500 company and operates 15,115 stores throughout the 48 contiguous
U.S. states and Canada.
DOLPHIN ENTERTAINMENT: Incurs $1.19 Million Net Loss in 2019
------------------------------------------------------------
Dolphin Entertainment, Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K reporting a net loss of
$1.19 million on $25 million of total revenues for the year ended
Dec. 31, 2019, compared to a net loss of $2.91 million on $22.55
million of total revenues for the year ended Dec. 31, 2018.
Bill O'Dowd, CEO of Dolphin Entertainment, commented: "I'm happy to
report that results exceeded consensus expectations for both
revenues and earnings per share. All members of our PR and
marketing "Super Group" had a strong 4th quarter, pushing our
annual revenues just past $25,000,000, which was terrific. This
represents an 11% increase year-over-year.
"Furthermore, our net loss in the 4th quarter was just $71,427,
which was less than half a cent per share, and this number includes
Depreciation and Amortization costs of approximately $500,000, or a
little over 3 cents per share. This result also exceeds consensus
expectations, which we attribute to the cross-selling of services
between members of our entertainment marketing super group.
"Also, we received tremendous recognition in December with the
publishing of this year's Power 50 list of the top PR firms by the
New York Observer. All 3 of our PR firms made the list, with
42West at #4, the highest-ranking of any entertainment PR firm.
Putting that in perspective, it is estimated that there are over
12,000 PR firms in this country. Yet, all 3 of ours made the Top
50 list. Secondly, we believe we are the only company to own more
than 1 PR firm on the list. This is our differentiating factor. We
have what we call an Entertainment Marketing Super Group, led by
our 3 PR firms -- 42West for movies and television; The Door for
celebrity chefs, hospitality and consumer products; and Shore Fire
Media for music. The combination of these best-in-class companies
represents a platform for future growth that is the heart of the
investment thesis into Dolphin."
As of Dec. 31, 2019, the Company had $42.57 million in total
assets, $32.88 million in total liabilities, and $9.69 million in
total stockholders' equity.
BDO USA, LLP, in Miami, Florida, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated March
30, 2020 citing that the Company has suffered recurring losses from
operations from prior years, has an accumulated deficit, and a
working capital deficit that raise substantial doubt about its
ability to continue as a going concern.
On Jan. 30, 2020, the World Health Organization ("WHO") announced a
global health emergency because of a new strain of coronavirus
originating in Wuhan, China (the "COVID-19 outbreak") and the risks
to the international community as the virus spreads globally beyond
its point of origin. In March 2020, the WHO classified the
COVID-19 outbreak as a pandemic, based on the rapid increase in
exposure globally.
The Company stated, "he full impact of the COVID-19 outbreak
continues to evolve as of the date of this report. As such, it is
uncertain as to the full magnitude that the pandemic will have on
the Company's financial condition, liquidity, and future results of
operations. Management is actively monitoring the situation on its
financial condition, liquidity, operations, suppliers, industry,
and workforce. Given the daily evolution of the COVID-19 outbreak
and the global responses to curb its spread, the Company is not
able to estimate the effects of the COVID-19 outbreak on its
results of operations, financial condition, or liquidity for fiscal
year 2020."
A full-text copy of the Form 10-K is available for free at:
https://is.gd/cvN74j
About Dolphin Entertainment
Headquartered in Coral Gables, Florida, Dolphin Entertainment, Inc.
-- http://www.dolphinentertainment.com/-- is an independent
entertainment marketing and premium content development company.
Through its subsidiaries, 42West LLC, The Door Marketing Group LLC
and Shore Fire Media, Ltd, the Company provides expert strategic
marketing and publicity services to many of the top brands, both
individual and corporate, in the entertainment, hospitality and
music industries.
DOUBLE L FARMS: D.L. Evans Bank Objects to Amended Disclosures
--------------------------------------------------------------
D.L. Evans Bank objects to the Second Amended Disclosure Statement
filed by Debtor Double L Farms, Inc., pointing out that:
* The Plan in no way attempts to segregate the creditors and/or
assets of each entity. Rather, it seeks to lump the creditors and
assets of each entity together to share as creditors in a common
asset pool. This particularly impacts unsecured creditors.
* The Debtor's Second Amended Disclosure Statement and Plan do not
address some issues raised by D.L. Evans in its objection to the
previous version of the Disclosure Statement and attached Plan.
D.L. Evans believes the Disclosure Statement and/or Plan need to be
updated so that all concerned parties understand that, in the event
a sale of collateral under Classes 14 or 15 generates proceeds
beyond the amount necessary to satisfy Claims 7 or 8, the
additional proceeds will first be paid to D.L. Evans as a result of
the Bank’s cross-collateralization provisions.
* Since the filing of Debtor's last proposed Plan, D.L. Evans
filed an amended Claim No. 8, showing it was not secured by the
silage trailer. Debtor's Plan, however, still indicates Class 15 is
secured by the silage trailer.
* The Disclosure Statement and Plan, in order to provide
sufficient information for parties to be able to make an informed
decision as to appropriateness of the Plan, should be revised to
indicate (1) the silage trailer will be an unencumbered asset
available for liquidation under the Plan, and (2) D.L. Evans may be
a partially unsecured creditor with the right to participate in any
distributions to unsecured creditors in the event there is a
shortfall as a result of any collateral sale.
A full-text copy of D.L. Evans' objection to Amended Disclosure
Statement, which objection wasfiled March 20, 2020, is available at
https://tinyurl.com/vbh6eye from PacerMonitor at no charge.
Attorneys for D.L. Evans Bank:
Jason R. Naess
PARSONS, SMITH, STONE, LOVELAND & SHIRLEY, LLP
137 West 13th Street
P. O. Box 910
Burley, ID 83318
E-mail: jason@pmt.org
About Double L Farms
Double L Farms, Inc.'s farm operation consists of 3,200 acres in
Eastern Idaho. It owns approximately 1,777 acres and leases the
difference. The farm ground is located primarily in Roberts and
Rigby, Idaho. Double L operates a dairy, raises beef cattle, and
grows potatoes, barley, wheat, corn and hay.
Double L Farms sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Idaho Case No. 18-40910) on Oct. 9, 2018. In the
petition signed by Jared Keith Lewis, president, the Debtor was
estimated to have assets of $1 million to $10 million and
liabilities of $10 million to $50 million. Judge Joseph M. Meier
is the presiding judge. The Debtor tapped Maynes Taggart PLLC as
its legal counsel.
DURA AUTOMOTIVE: PBGC Objects to Disclosure Statement
-----------------------------------------------------
The Pension Benefit Guaranty Corporation, an agency of the United
States Government and an unsecured creditor in Dura Automotive
Systems, LLC's case, on its own and on behalf of the Dura Combined
Pension Plan, filed an objection to the motion for entry of an
order approving the adequacy of the Disclosure Statement.
The PBGC points out that the Disclosure Statement does not provide
adequate information about the Pension Plan. The Disclosure
Statement is completely silent with respect to the Pension Plan.
That alone, according to the PBGC, shows the lack of adequate
information required by 11 U.S.C. Sec. 1125(a).
The PBGC further points out that the Disclosure Statement does not
provide adequate information about discharge, releases and
injunction relating to the Pension Plan. The Disclosure
Statement's and Plan of Reorganization's ("POR") provisions
regarding discharge, release and injunction may lead to the
misconception that the POR will release Pension Plan liabilities
under Title I and IV of Employee Retirement Security Act of 1974,
as amended ("ERISA") and that PBGC and the Pension Plan will be
precluded from investigation and collection. That is incorrect and
improper.
About Dura Automotive Systems
Dura Automotive Systems, LLC, together with its affiliates, is an
independent designer and manufacturer of automotive systems,
including mechatronic systems, exterior systems, and lightweight
structural systems, among others. It is nationally certified in
the United States by the Women's Business Enterprise Council, and
operates 25 facilities in 13 countries throughout North America,
South America, Europe and Asia. Headquartered in Auburn Hills,
Mich., the company -- https://www.duraauto.com/ -- employs
approximately 7,400 individuals.
Dura Automotive Systems sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 19-06741) on Oct.
17, 2019.
At the time of the filing, the Debtors had estimated assets of
between $100 million and $500 million and liabilities of between
$100 million and $500 million.
The cases have been assigned to Judge Randal S. Mashburn.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as bankruptcy counsel; Bradley Arant Boult
Cummings LLP as local counsel; Portage Point Partners, LLC as
restructuring advisor; Jefferies LLC as financial advisor and
Investment banker; and Prime Clerk LLC as claims agent.
ENCOUNTER MEDICAL: Agreement Reached; Plan Confirmed
----------------------------------------------------
Judge James R. Sacca has ordered that the First Amended Disclosure
Statement of Encounter Medical Associates, LLC, is APPROVED and the
Debtor's First Amended Plan of Reorganization filed on Jan. 24,
2020, is CONFIRMED.
The Debtor announced that an agreement had been reached with
Harkins/Barrett Property Partnership and Douglas Pediatrics
Associates, Inc., concerning the treatment of said claims, which
treatment varies from the treatment provided in the Plan.
Accordingly, the provisions in the Plan for the treatment of the
Class D Allowed Claim of Douglas Pediatric Associates, Inc. and the
treatment of the Class E Claim of Harkins/Barrett Property
Partnership contained in the Plan shall be modified as follows:
* Class D: Allowed Claim of Douglas Pediatric Associates, Inc.
Encounter Medical purchased its medical practice in Douglasville,
Georgia from Douglas Pediatrics in 2016 by way of an asset purchase
agreement and, in consideration for the purchase, entered a
Promissory Note in the original principal amount of $190,000 and
granted Douglas Pediatrics Associates, Inc., a security interest
in, among other things, all accounts, inventory, equipment and
general intangible property, which Douglas Pediatrics perfected by
filing a UCC Financing Statement on Nov. 11, 2016. As additional
security on this obligation, Ayoola Holdings, LLC pledged real
property that it acquired from Harkins/Barrett Property Partnership
to Douglas Pediatrics. Douglas Pediatrics filed a Claim in this
Case, Claim No. 17, in the amount of $82,112, which includes
principal and interest of $67,500, interest of $3,154, Fees and
charges of $860.06, and attorney's fees of $10,598. The Debtor
agrees to allow Douglas Pediatric's claims as a secured allowed
claim in these amounts as updated above. Interest on the principal
accrued initially at the non-default rate of 3.5%, which was to
escalate to 6.5% in May of 2017. The Plan proposes to pay the full
outstanding principal amount of $76,979 as of April 1, 2020 with
interest at the rate of interest of 5% in the amount of $2,277 per
month for approximately 37 months. The Debtor has been provided
with and has agreed to be bound by the amortization schedule
provided by Douglas Pediatrics. After the payment in full of the
amortized portion of the loan, the Plan will continue to pay
Douglas Pediatrics at the rate of $2,277 per month until the
allowed attorneys' fees in the amount of $10,811 are paid in full.
* Class E: Claim of Harkins/Barrett Property Partnership.
Alfred Ifarinde, the sole equity holder in Encounter Medical
Associates, is also the sole equity holder in Ayoola Holdings, LLC.
Concurrent with the acquisition of Douglas Pediatrics by Debtor,
Ayoola Holdings purchased from Harkins/Barrett Property Partnership
the improved real property located at 9280 GA. Hwy 5, Douglasville,
Georgia, out of which Debtor conducts its medical practice. Ayoola
Holdings, LLC signed a secured promissory note in favor of
Harkins/Barrett Property Partnership in the original principal
amount of $475,000, and having an initial interest rate of 3.5%,
and which was to escalate to $6.5% in May of 2017. Harkins/Barrett
Property Partnership filed a claim in this Case, Claim No. 16 in
the amount of $260,156, consisting of principal and interest of
$206,314, accrued interest of $16,167, fees and expenses of $4,303,
and attorney’s fees of $33,372. Ayoola Holdings, LLC executed a
Deed to Secure Debt in favor of Harkins/Barrett Property
Partnership on the property located at 9280 GA. Hwy 5,
Douglasville, Georgia. Encounter Medical Associates executed a
guaranty of the Ayoola Holdings note. Upon confirmation of the
Plan, Ayoola Holdings will transfer the Property to Encounter
Medical Associates by way of limited warranty deed. Harkins/Barrett
Property Partnership has provided updated information on their
claim, asserting a principal and interest claim of $247,514 as of
April 1, 2020 which includes an allowed administrative claim of
$31,189 and attorney’s fees of $33,996. The Debtor agrees to
allow Harkins/Barrett Property Partnership's claim as a secured
allowed claim in these amounts as updated above. The Plan will pay
the allowed principal and interest claim of the Harkins/Barrett
Property Partnership of $247,514 as of April 1, 2020 with interest
at the rate of 5%, in the amount of $6,312 per month for
approximately 43 months. The Debtor has been provided with and has
agreed to be bound by the amortization schedule provided by
Harkins/Barrett Partnership. After the payment in full of the
amortized loan, the Plan will pay Harkins/Barrett Property
Partnership the amount of $6,312 per month until the allowed
attorney's fees in the amount of $33,996 are paid in full.
LiftForward, Inc., filed an Objection to Chapter 11 Plan, and the
parties announced that an agreement had been reached concerning the
terms and conditions for the payment of the LiftForward Inc. claim
which resolved the Objection filed by LiftForward, Inc.
Accordingly, the Class F claimant and the treatment of the Class F
Claim of LifForward, Inc contained in the Plan shall be modified as
follows:
Class F: Allowed Claim of Lift Forward. LiftForward filed a Claim
in the amount of 259,372, consisting of a principal claim of
$243,876, together with a pre-payment fee of $14,821, interest of
$325.12, and an administrative fee of $350. Encounter Medical is
indebted to Lift Forward as a result of a Credit Agreement and
Promissory Note dated May 31, 2018. The Promissory Note is in the
principal amount of $315,000 and was modified on Nov. 1, 2018, at
which time the principal sum was listed at $243,875, and at which
time Ayoola Holdings pledged the Property at 9280 GA-5 Parkway
Units 1&2, Douglasville, Georgia to secure the indebtedness.
Neither the Lift Forward Credit Agreement nor the Promissory Note
state the rate of interest to be paid. The Plan proposes to
continue making payments of $1,250 per month to LiftForward, which
is the amount currently being paid as adequate protection during
this Case, until such time as the allowed claims of Hawkins/Barnett
Property Partnership and Douglas Pediatric Associates, Inc., are
paid. Once the Hawkins/Barnett Property Partnership claim is paid,
the payments to LiftForward will increase by $3,713.00 per month.
When the claim of Douglas Pediatric Associates, Inc., is paid, the
payment to LiftForward will increase by an additional $1,029.00 per
month. Payments will continue until the allowed claim has been
paid.
A full-text copy of the Order dated March 18, 2020, is available at
https://tinyurl.com/r6b2h4r from PacerMonitor.com at no charge.
The Debtor's counsel:
Edward F. Danowitz
Danowitz Legal, PC
300 Galleria Parkway
Suite 960
Atlanta, Georgia 30339
770-933-0960
E-mail: Edanowitz@danowitzlegal.com
About Encounter Medical Associates
Encounter Medical Associates, LLC, a medical group in Cumming,
Georgia, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ga. Case No. 19-20009) on Jan. 3, 2019. The petition
was signed by Alfred Ifarinde, managing member. At the time of the
filing, the Debtor was estimated to have assets of less than
$50,000 and liabilities of $1 million to $10 million. Danowitz
Legal, P.C., serves as its legal counsel.
EUROAMERICAN FOODS: Cash Collateral Use Allowed Until April 17
--------------------------------------------------------------
Judge Donald R. Cassling of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized Euroamerican Foods, Inc.
to use cash collateral for the period through April 17, 2020 to pay
post-petition expenses owed to third parties to the extent set
forth on the budget plus 10% variance.
In return for the Debtor's use of cash collateral, Wells Street
Management LLC and Hispanic Hospitality Group, LLC are granted,
among others, with replacement liens to the extent of their
pre-petition lien.
The Debtor is also required to: (i) maintain and pay premiums for
insurance to cover all of its assets from fire, theft and water
damage; (ii) properly maintain and manage the collateral; (iii)
permit Wells and HHG to inspect Debtor's books and records; and
(iv) make available to the Bank evidence of that which purported
constitutes their collateral or proceeds.
Final hearing on the motion is set for April 14, 2020 at 10:30
a.m.
About Euroamerican Foods
Euroamerican Foods, Inc., sought Chapter 11 protection (Bankr. N.D.
Ill. Case No. 20-00305) on Jan. 6, 2020. Judge Donald R. Cassling
is assigned to the case. Crane, Simon, Clar & Dan represents the
Debtor.
EUROPEAN FOREIGN: Authorized to Continue Using Cash Collateral
--------------------------------------------------------------
Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern
District of Florida authorized European Foreign Domestic Auto
Repair Centre, Inc. Boca East to use the cash collateral of
Paradise Bank/U.S. Small Business Administration in the manner set
forth in the Fifth Interim Order.
The Debtor is permitted to use cash collateral up to the amounts
shown in the budget on an interim basis for sixty days from Feb.
18. The monthly budget provides total expenses of approximately
$88,585.
As a condition to its use of cash collateral, the Debtor will
operate strictly in accordance with the Budget and to spend cash
collateral not to exceed 10% above the amount shown in the Budget.
However, the quarterly U.S. Trustee fees will be paid and are
permitted to exceed the budgeted amount.
As adequate protection, Paradise Bank/SBA is granted a valid,
perfected replacement lien upon and security interest in all cash
generated post-petition by the Property, to the extent and in the
order of priority of any valid lien pre-petition. The post-petition
liens and security interests granted to Paradise Bank/SBA will be
valid and perfected, to the extent of the validity and priority of
the prepetition lien, post-petition without the need for execution
or filing of any further documents or instruments otherwise
required to be filed or be executed or filed under non-bankruptcy
law.
About European Foreign Domestic Auto
Repair Centre
European Foreign Domestic Auto Repair Centre, Inc., a company that
provides automotive repair and maintenance services, sought Chapter
11 protection (Bankr. S.D. Fla. Case No. 19-22870) on Sept. 26,
2019 in West Palm Beach, Fla. In the petition signed by Steve
Kranitz, president, the Debtor was estimated to have assets of at
least $50,000 and liabilities between $1 million to $10 million.
The case is assigned to Judge Erik P. Kimball. FurrCohen P.A. is
the Debtor's counsel.
EVOLV SOLUTIONS: Court Confirms Chapter 11 Plan
-----------------------------------------------
Debtor Evolv Solutions, L.L.C., filed a summary of balloting
indicating that ballots in the requisite number representing the
requisite amount under Chapter 11 were received by the Debtor and
have accepted and voted for the Plan. All classes voting for the
Plan are impaired by the Plan and have accepted the Plan. The
Court finds that the provisions of 11 U.S.C. Sec. 1129(10) have
been met as two impaired Class voted for the Plan.
The Debtor's representative testified or a proffer was made and
provided testimony regarding the Chapter 11 Plan. The Court thus
finds, with respect to the Plan, that the applicable provisions of
11 U.S.C. Sec. 1129 have been met.
After hearing the statements of counsel and witnesses for the
Debtor and reviewing the file and the Summary of Ballots submitted
by Debtor's counsel, the Court finds and it is ordered as follows:
The Plan has been accepted in writing by at least one impaired
Class of Creditors whose acceptance is required by law.
The provisions of Chapter 11 of the Bankruptcy Code have been
complied with and the Plan has been proposed in good faith and not
by any means forbidden by law.
Each holder of a Claim or interest accepting the Plan will receive
or retain under the Plan property of a value, as of the effective
date of the Plan, that is not less than the amount that such holder
would receive or retain if the Debtor was liquidated under Chapter
7 of the Code on such date.
All payments made or promised by the Debtor or by any person
issuing securities, if applicable, or acquiring property under the
Plan or by any other person for services or for costs and expenses
in, or in connection with, the Plan and incident to the case, have
been fully disclosed to the Court and are reasonable or, if to be
fixed after Confirmation of the Plan, will be subject to the
approval of the Court
All payments made or promised by the Debtor in connection with the
Plan have been fully disclosed to the Court and are reasonable.
The Plan is feasible.
The Debtor shall pay all outstanding amounts due the United States
Trustee upon confirmation and, on and after the Confirmation Date,
Debtor shall be liable for, and will pay the fees due the United
States Trustee pursuant to 28 U.S.C. Sec. 1930(a)(6) until the
entry of a final decree in this case or until the case is converted
or dismissed. After confirmation, the Debtor will file with the
Court, and serve on the United States Trustee, a quarterly
financial report for each month (or portion thereof) the case
remains open.
The Debtor filed an amendment to the Disclosure Statement and Plan
(Doc. 113) that resolved the U.S. Trustee's Objection and does not
require another round of balloting.
The Plan and Disclosure Statement Dated February 21, 2020 and
Amendment to
Plan should be and is confirmed.
Notwithstanding anything else in the Plan, the Disclosure Statement
or in this Order to the contrary, in resolution of MAPS Objection
to the Plan, MAPS Motion for Administrative Expense, MAPS, Inc.,
and MAPS amending its vote to support the Plan.
A full-text copy of the Order dated March 18, 2020, is available at
https://tinyurl.com/tqeksqf from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Colin N. Gotham
7225 Renner Road, Suite 200
Shawnee, KS 66217
Tel: (913) 962-8700
Fax: (913) 962-8701
E-mail: cgotham@emlawkc.com
Attorneys for MAPS, Inc.:
Andrew J. Nazar
POLSINELLI PC
900 W. 48 Place, Suite 900
Kansas City, MO 64112
Tel: (816) 753-1000
Fax: (816) 753-1536
E-mail: anazar@polsinelli.com
About Evolv Solutions
Established in 2001, Evolv Solutions LLC was founded as a document
management and information firm. Today, the company focuses on
providing Managed Print Services (MPS) and outsourced digital print
solutions for a variety of commercial, municipal and federal
clients.
Evolv Solutions filed a voluntary Chapter 11 petition (Bankr. D.
Kan. Case No. 19-21440) on July 12, 2019. In the petition signed
by Ronald Harland Sr., president, the Debtor disclosed $1,190,692
in assets and $893,268 in liabilities. The case is assigned to
Judge Dale L. Somers. Colin N. Gotham, Esq., at Evans & Mullinix,
P.A., is the Debtor's counsel.
EXIDE TECHNOLOGIES: Dispute over UST Fee Hike Goes to 3rd Circuit
-----------------------------------------------------------------
Alex Wolf, writing for Bloomberg Law News, reported that Exide
Technologies LLC's dispute over the constitutionality of a hike in
U.S. Trustee quarterly fees could soon be heard by the Third
Circuit after the battery maker received a lower court's blessing
for a direct appeal. Exide and Acting U.S. Trustee Andrew R. Vara
jointly asked for a direct appeal to the U.S. Court of Appeals for
the Third Circuit after the U.S. Bankruptcy Court for the District
of Delaware found constitutional fee increases that remain in
bankruptcy, even after confirming reorganization plans.
Magistrate Judge Mary Pat Thynge previously recommended that the
case captioned EXIDE TECHNOLOGIES, LLC, Appellant, v. ANDREW R.
VARA, ACTING UNITED STATES TRUSTEE FOR REGION 3, Appellee, C. A.
No. 20-76-LPS (D. Del.), be withdrawn from mandatory referral for
mediation and proceed through the appellate process of the District
Court. Magistrate Judge Thynge reviewed the documents filed on the
court's docket regarding an appeal of an opinion and order from the
Bankruptcy Court entered Jan. 9, 2020, to determine the
appropriateness of mediation in this matter.
As a result of the screening process, the opinion and order on
appeal addressed issues that are not amenable to mediation, and
mediation at this stage would not be a productive exercise, a
worthwhile use of judicial resources nor warrant the expense of the
process. Specifically, the opinion and order of Jan. 9, 2020 dealt
with purely legal issues, that is, a constitutional challenge to
the enactment and application of federal law.
Daniel Gill, writing for Bloomberg Law News, reported in January
that the Delaware bankruptcy court said a huge increase in U.S.
Trustee quarterly fees facing Exide is constitutional even though
the hike was imposed years after its reorganization plan was
approved in 2015. The fee increases aren't really applied
retroactively, Judge Mary Walrath ruled. They're triggered when
the bankrupt debtor makes distributions and are similar to a new
tax created after a bankruptcy filing, she said.
Exide sought to invalidate a 833% fee increase after reorganization
plan was confirmed. Its quarterly fee increased from $30,000 to
$250,000 after Congress passed a rate increase in 2017, according
to Aisha Al-Muslim, writing for The Wall Street Journal.
Judge Walrath rejected Exide's argument that the fee hike wasn't
uniformly applied across the country, Bloomberg reported.
A copy of Magistrate Judge Thynge's Recommendation dated Feb. 24,
2020 is available at https://bit.ly/2W4xi5H from Leagle.com.
Exide Technologies, LLC, Appellant, represented by Laura Davis
Jones -- ljones@pszjlaw.com -- Pachulski, Stang, Ziehl & Jones, LLP
& James E. O'Neill, III -- joneill@pszjlaw.com -- Pachulski, Stang,
Ziehl & Jones, LLP.
Andrew R. Vara, Acting United States Trustee for Region 3,
Appellee, represented by Sumi K. Sakata , U.S. Department of
Justice, T. Patrick Tinker , Exec. Office/U.S. Trustee & Robert J.
Schneider, Jr. , U.S. Department of Justice.
About Exide Technologies
Headquartered in Milton, Ga., Exide Technologies (NASDAQ: XIDE) --
http://www.exide.com/-- manufactures and distributes lead acid
batteries and other related electrical energy storage products.
Exide first sought Chapter 11 protection (Bankr. Del. Case No.
02-11125) on April 14, 2002, and exited bankruptcy two years after.
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland &
Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones
LLP, represented the Debtors in their successful restructuring.
Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No.
13-11482) on June 10, 2013. Exide disclosed $1.89 billion in
assets and $1.14 billion in liabilities as of March 31, 2013.
Exide's international operations were not included in the filing
and will continue their business operations without supervision
from the U.S. courts.
For the new case, Exide has tapped Anthony W. Clark, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl
& Jones LLP as counsel; Alvarez & Marsal as financial advisor;
Sitrick and Company Inc. as public relations consultant and GCG as
claims agent. Schnader Harrison Segal & Lewis LLP was tapped as
special counsel.
The Official Committee of Unsecured Creditors was represented by
Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as
co-counsel. Zolfo Cooper, LLC served as its bankruptcy consultants
and financial advisors. Geosyntec Consultants was tapped as
environmental consultants to the Committee.
Robert J. Keach of the law firm Bernstein Shur was appointed as fee
examiner. He hired his own firm as counsel.
Exide said its Plan of Reorganization became effective on April 30,
2015, and that the Company emerged from Chapter 11 as a newly
reorganized company. The Bankruptcy Court confirmed the Plan on
March 27, 2015.
FGI ACQUISITION: S&P Downgrades ICR to CCC+ on End Market Pressure
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on FGI
Acquisition Corp. (d/b/a The Flexitallic Group) to 'CCC+' from
'B-'. At the same time, S&P lowered its rating on the company's
senior secured first-lien facilities to 'CCC+' from 'B-'.
The downgrade and negative outlook reflect S&P's expectation for
severely reduced demand for Flexitallic's products in a
recessionary environment. S&P expects debt leverage to increase in
2020 (at 8x or more), and believes it will increase to the point
where compliance with financial covenants becomes an issue.
The negative outlook reflects S&P's expectation that the rating
could be lowered if it anticipates leverage will continue to rise
such that it envisions a specific default scenario over the next 12
months.
"We could lower our rating on Flexitallic if cushion to its
financial covenants is severely reduced and we foresee a default
over the next 12 months. This could happen if demand from its end
markets deteriorates beyond what we currently expect such that the
company is unable to cease burning cash flow," S&P said.
"We could raise the ratings on Flexitallic if we see an improvement
in the company's end markets such that we believe the company is
able to improve its liquidity position and debt leverage," the
rating agency said.
FORMER CHARTER COMMUNICATIONS: Egan-Jones Cuts Unsec. Rating to BB
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the local
currency senior unsecured ratings on debt issued by Former Charter
Communications Parent Inc. to BB from BB+.
Former Charter Communications Parent, Inc. offers broadband
Internet communications services. The Company offers high-speed
Internet access, Internet telephone services, business-to-business
Internet access, data networking, video and music entertainment
services, and business telephone, and digital cable video
entertainment services.
GADSDEN PROPERTIES: Delays Filing of 2019 Annual Report
-------------------------------------------------------
Gadsden Properties, Inc. was unable to file its Annual Report on
Form 10-K for the period ended Dec. 31, 2019 within the prescribed
time period because of a recent change in its independent audit
firm. On Feb. 25, 2020, the Company announced that its independent
auditors had resigned. The Company is now in the process of
selecting a new independent auditing firm; however, that process
has been delayed by the recent events in the country with regard to
the coronavirus crisis. Once the new firm has been selected, it
will require time in which to conduct and complete its review of
the Company's current financial statements and its assessment of
the Company's internal control over financial reporting. The
Company does not currently expect to file its Form 10-K by the
prescribed due date allowed pursuant to Rule 12b-25.
About Gadsden
Willow Grove, PA-based Gadsden Properties, Inc. fka FC Global
Realty Incorporated is a Nevada corporation that was formed on Dec.
28, 2010. Gadsden concentrates primarily on investments in high
quality income-producing assets, residential developments and other
opportunistic commercial properties in secondary and tertiary
markets across the United States.
FC Global reported a net loss attributable to comon stockholders
and participating securities of $4.67 million for the year ended
Dec. 31, 2018, compared to a net loss attributable to common
stockholders and participating securities of $19.38 million for the
year ended Dec. 31, 2017. As of June 30, 2019, Gadsden Properties
had $134.31 million in total assets, $52.88 million in total
liabilities, $22.23 million in series A redeemable convertible
preferred stock, $3 million in Class B OPCO Units subject to
redemption, and $56.20 million in total stockholders' equity.
Fahn Kanne & Co. Grant Thornton Israel, in Tel Aviv, Israel, the
Company's auditor since 2011, issued a "going concern"
qualification in its report dated April 1, 2019, citing that the
Company has incurred net losses for each of the years ended Dec.
31, 2018 and 2017 and has not yet generated any significant
revenues from real estate activities. As of Dec. 31, 2018, there
is an accumulated deficit of $139,690,000. These conditions, along
with other matters raise substantial doubt about the Company's
ability to continue as a going concern.
GAMESTOP CORP: S&P Downgrades ICR to 'B-' on COVID-19 Hurdles
-------------------------------------------------------------
S&P Global Ratings lowered all of its ratings on U.S. based
video-game retailer GameStop Corp. and its debt to 'B-' from 'B+'.
The downgrade reflects an uncertain operating environment and lower
projected performance, along with increasing refinancing risks
because of the COVID-19 pandemic.
"We believe GameStop's physically based video game sales will
weaken further from already low levels for most of the year. The
company recently closed its stores to direct customer access, but
it is providing curbside pickup, in response to social distancing
measures enacted to combat the COVID-19 pandemic. We believe
consumers will curb discretionary spending in the weak economic
environment that we expect to continue into 2021. We also believe
customer purchasing habits will change over this time period,
possibly shifting more toward digital channels. We estimate
GameStop's digital sales represented only about 3% of total sales
in 2019. We see this environment exaggerating the cyclical
headwinds GameStop's already facing ahead of the next-generation
console launch and likely dampening the boost that would have
resulted from the launch beginning in late 2020," S&P said.
The developing outlook reflects uncertainty regarding the company's
operating performance amid expected economic volatility because of
the ongoing COVID-19 pandemic, as well as its plan to address its
near-term maturities. The outlook also reflects the potential
stabilization of operating performance that could occur following
the launch of the next generation of gaming consoles later this
year.
"We could lower the rating if we believe GameStop cannot refinance
its unsecured notes in a timely manner, leading us to view its
capital structure as potentially unsustainable or precipitating a
liquidity crisis. In this scenario, operating performance would
remain weak because of extended social distancing measures,
protracted economic uncertainty, or a possible delay in the
next-generation console launch," S&P said.
"We could raise the rating if GameStop refinances its unsecured
notes, the timing of the next-generation console launch becomes
certain, and we expect sales of the new consoles to be largely
insulated from the weak economic environment. This scenario would
likely coincide GameStop sustaining leverage below 4x and
consistently generating positive free operating cash flow," the
rating agency said.
GENERAL MOTORS: Egan-Jones Cuts Local Curr. Unsecured Rating to BB+
-------------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the local
currency senior unsecured ratings on debt issued by General Motors
Company to BB+ from BBB.
General Motors Company, commonly referred to as General Motors, is
an American multinational corporation headquartered in Detroit that
designs, manufactures, markets, and distributes vehicles and
vehicle parts, and sells financial services, with global
headquarters in Detroit's Renaissance Center.
GENWORTH FINANCIAL: Egan-Jones Lowers Sr. Unsecured Ratings to B
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Genworth Financial Incorporated to B from BB-. EJR
also downgraded the rating on commercial paper issued by the
Company to C from B.
Genworth Financial was founded as The Life Insurance Company of
Virginia in 1871. In 1986, Life of Virginia was acquired by
Combined Insurance, which became Aon plc in 1987. In 1996, the Life
of Virginia was sold to GE Capital.
GEORGE WASHINGTON: Plan Solicitation Period Extended to June 5
--------------------------------------------------------------
Judge Shelley Chapman of the U.S. Bankruptcy Court for the Southern
District of New York extended to June 5 the period during which
George Washington Bridge Bus Station can solicit acceptances for
its Chapter 11 plan.
The exclusive period to file the plan expired on April 6.
About George Washington Bridge
Bus Station Development Venture LLC
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 Debtor's assets are estimated between $50 million and
$100 million, and liabilities between $100 million and $500
million, according to bankruptcy documents.
Judge Shelley C. Chapman oversees the case.
The Debtor tapped Cole Schotz P.C. as its legal counsel, and BAK
Advisors Inc. as its financial advisor. BAK's Bernard A. Katz is
the Debtor's sole manager.
GK HOLDINGS: S&P Cuts Senior Secured Second-Lien Debt Rating to 'C'
-------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on GK Holdings
Inc.'s (doing business as Global Knowledge) to 'CC' from 'CCC-',
saying the company's liquidity remains very weak and it faces
substantial near-term debt maturities.
The rating agency expects that the company will likely restructure
its debt in the coming months or face a payment default when its
$35.5 million revolving credit facilities and $167.1 million
outstanding first-lien term loan mature on Dec. 30, 2020, and Jan.
20, 2021, respectively. The company also has a second-lien term
loan due Jan. 20, 2022.
Meanwhile, S&P lowered its issue level rating on the company's
senior secured first-lien debt to 'CC' from 'CCC-' and its
issue-level rating on the company's senior secured second-lien term
loan to 'C' from 'CC'.
"The downgrade reflects our view that Global Knowledge will be
unable to repay its debt maturities coming due in the next 10
months or refinance them at par. We believe the company's credit
conditions are deteriorating given its unsustainable capital
structure as well as the restrictions on travel and social
gatherings, the anticipated macroeconomic downturn, and the limited
access to the capital markets due to the coronavirus pandemic. We
note that Global Knowledge's various tranches of debt continue to
trade at a steep discount to par," S&P said.
The negative outlook on Global Knowledge reflects S&P's expectation
that a restructuring or default is inevitable barring unforeseen
positive developments because of the company's cash flow shortfall
and need to address its unsustainable capital structure.
"We could lower our rating on Global Knowledge over the next
several months if it misses interest or principal payments, pursues
a debt restructuring, or files for bankruptcy," S&P said.
"We would consider upgrading Global Knowledge if it is able to
refinance its capital structure without undertaking a sub-par debt
exchange and substantially improves its operating performance such
that we believe its cash flow will be sufficient to cover its debt
obligations," the rating agency said.
GONZALEZ & COLON: May 7 Hearing on Disclosure Statement
-------------------------------------------------------
Judge Edward A. Godoy has ordered that the hearing on the
Disclosure Statement filed by Gonzalez & Colon Investment Group
Inc, the Debtor in this case, scheduled for March 26, 2020 at 9:30
AM is canceled. The same is rescheduled for May 7, 2020 at 9:30
a.m. at the United States Bankruptcy Court, Southwestern Divisional
Office, MCS Building, Second Floor, 880 Tito Castro Avenue, Ponce,
Puerto Rico.
About Gonzalez & Colon Investment Group
Gonzalez & Colon Investment Group Inc., is authorized by Puerto
Rico Department of State to operate as a privately owned
corporation. It Debtor classifies as single asset property,
constituting a single property with 4 commercial units, that
generates substantially all of the gross income of the debtor.
Gonzalez & Colon Investment Group sought Chapter 11 protection
(Bankr. D.P.R. Case No. 19-05905) on Oct. 11, 2019. Miriam A.
Murphy-Lightbourn, Esq., at MIRIAM A. MURPHY & ASSOCIATES PSC, is
the Debtor's counsel.
GREAT WESTERN PETROLEUM: S&P Cuts ICR to 'CCC+'; Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Denver-based
crude oil and natural gas exploration and production (E&P) company
Great Western Petroleum LLC to 'CCC+' from 'B-'. The outlook is
negative.
At the same time, S&P is lowering the issue-level rating on the
company's senior unsecured notes due September 2021 to 'B-' from
'B'. The '2' recovery rating indicates S&P's expectation for
substantial (70%-90%; rounded estimate: 85%) recovery of principal
in the event of a payment default.
"Our downgrade reflects the company's heightened refinancing risk
and tight liquidity. Given Great Western's current debt trading
levels, the September 2021 debt maturity, and the weak capital
market conditions, we foresee an increased possibility that the
company could engage in a transaction that we could consider to be
distressed. The company has $300 million in senior unsecured notes
maturing in September 2021, which currently trade at deeply
depressed levels. In addition, we believe the recent collapse in
oil prices increases the risk that the company's RBL facility size
could be reduced at its next bank redetermination, which would
place further strain on its liquidity position. The company had
drawn $324 million on its RBL facility on Dec. 31, 2019, slightly
more than 50% of its $630 million elected commitment amount. The
RBL has a springing maturity date of March 2021 if the company has
not repaid or refinanced its September 2021 notes by that date,"
S&P said.
"The negative outlook reflects our expectation that liquidity could
deteriorate if the company were unable to refinance or repay its
notes maturing in September 2021 in a timely manner, which would
result in the company's RBL maturity springing to March 2021. In
addition, given the recent collapse in oil prices, we believe there
is an elevated risk that the company's RBL size could be reduced at
its spring redetermination, further reducing liquidity. Given
current capital market conditions and the trading levels of Great
Western Petroleum's debt, we also foresee an increased risk that
the company could engage in a transaction that we could view as
distressed. We currently expect FFO to debt of 35%-40% in 2020,
dropping to about 25% in 2021 as hedging rolls off," the rating
agency said.
S&P could lower the rating if the company's liquidity weakened
further, most likely through a reduction in the company's borrowing
base. In addition, if S&P envisioned an increased likelihood of the
company engaging in a debt transaction that it would view as
distressed, the rating agency could lower the rating.
"We could revise the outlook to stable if the company addressed its
September 2021 debt maturity through a transaction that we did not
view as distressed while also maintaining adequate liquidity. This
would likely occur if commodity prices improved, enabling the
company to maintain its RBL size and access capital markets well
ahead of its maturity," S&P said.
GREENBRIER COS: Egan-Jones Lowers Senior Unsecured Ratings to BB
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by The Greenbrier Cos Incorporated to BB from BBB-.
The Greenbrier Companies, Incorporated supplies transportation
equipment and services to the railroad and related industries. The
Company's manufacturing segment produces railcars and marine
vessels. Greenbrier also provides repair and refurbishment for
intermodal and conventional railcars. In addition, the Company
provides complementary leasing and services activities.
GROW CAPITAL: CEO Bonnette Becomes Chief Technology Officer
-----------------------------------------------------------
Jonathan Bonnette, who has been the president and chief executive
officer of Grow Capital, Inc. since July 1, 2018, has transitioned
out of his role as president and chief executive officer and became
the Company's chief technology officer and the chief executive
officer of the Company's subsidiary, Bombshell Technologies, Inc, a
Nevada corporation.
Appointment of Terry Kennedy
The Company's Board of Directors has appointed Terry Kennedy, 43,
to succeed Mr. Bonnette as the president and chief executive
officer of the Company, effective April 1, 2020. Mr. Kennedy will
serve as the president and chief executive officer until his
successor is appointed by the Board, or until his earlier
resignation, removal or death. In connection with Mr. Kennedy's
appointment, the Company and Mr. Kennedy entered into an executive
compensation agreement with an effective date of
April 1, 2020. Pursuant to the Compensation Agreement, Mr. Kennedy
will have the duties and responsibilities as are commensurate with
the positions of president and chief executive officer, as
reasonably and lawfully directed by the Board. Mr. Kennedy will
continue to provide services to clients of Appreciation Financial,
a business Mr. Kennedy founded and owns, as well as to otherwise be
individually employed by another entity or entities. Mr. Kennedy
will, however, be required to devote his time and apply his
attention, skill and best efforts to the faithful performance of
his duties as president and chief executive officer of the Company
in a professional manner.
The Compensation Agreement governs the terms and conditions
regarding Mr. Kennedy's compensation for the three-month period
beginning on April 1, 2020, and ending on June 30, 2020, and may be
terminated "for cause" only. Pursuant to the Compensation
Agreement, following his appointment as president and chief
executive officer, Mr. Kennedy will be issued one million
unregistered, restricted shares of the Company's common stock
within 10 days of the execution of the Compensation Agreement, as
compensation for the three-month period ending June 30, 2020.
During the initial three-month term of the Compensation Agreement,
the Board and Mr. Kennedy have agreed to put forth their best
efforts to negotiate and consummate a more permanent executive
compensation or employment agreement, anticipated to become
effective July 1, 2020. If such a permanent executive
compensation/employment agreement is not consummated prior to July
1, 2020, the Compensation Agreement will automatically renew for
one additional three-month period beginning on July 1, 2020, with
Mr. Kennedy entitled to receive up to an additional one million
unregistered, restricted shares of the Company's common stock, with
the actual number of shares being prorated for the portion of the
extended period actually served until the more permanent executive
compensation/employment agreement is consummated.
The shares of common stock issuable pursuant to the Compensation
Agreement will be immediately and fully vested, and deemed to be
fully earned, upon their issuance. The Shares will be issued
without registration under the Securities Act of 1933, as amended,
in reliance on Section 4(a)(2) of the Securities Act and the rules
and regulations promulgated thereunder, based in part upon the
following factors: (a) the issuance of the securities was in
connection with an isolated private transaction which did not
involve any public offering; (b) there was a single offeree; and
(c) there were no subsequent or contemporaneous public offerings of
the securities by the Company.
Since 2008, Mr. Kennedy has served as the president and CEO of
Appreciation Financial, a company Mr. Kennedy founded. Appreciation
Financial is a full-service national financial company with
headquarters in Las Vegas and an Inc. 5000 company two years in a
row (2018 and 2019). Mr. Kennedy received the 2019 Gold American
Business Awards Stevie Award for Entrepreneur of the Year-Financial
Services and was a Finalist for Ernst & Young Entrepreneur Of The
Year 2019. Mr. Kennedy has been a consultant to the Company since
July 1, 2018.
Mr. Kennedy has a broad background in general management, strategy,
marketing, services, and financial matters. Under Mr. Kennedy's
leadership, Appreciation Financial received the Gold award for
"Company of the Year-West US" by the Best in Biz awards and was
also named one of the "Best Entrepreneurial Companies in America"
by Entrepreneur Magazine's Entrepreneur 360 list.
The Company acquired Bombshell pursuant to a stock exchange
agreement dated June 26, 2019, by and among the Company, Bombshell
and the shareholders of Bombshell. As consideration for the
acquisition of Bombshell, the Bombshell shareholders received
110,675,328 unregistered, restricted shares of the Company's common
stock with an approximate dollar value of $16,822,524. At the time
of the Bombshell Transaction, Mr. Kennedy was a beneficial owner of
more than 10% of the Company's common stock, as well as a
beneficial owner of Bombshell. Of the 110,675,328 unregistered,
restricted shares of the Company's common stock issued to Bombshell
shareholders, Mr. Kennedy, or entities under his control, received
66,404,700 unregistered, restricted shares of the Company's common
stock with an approximate dollar value of $12,616,893. The
approximate dollar values set forth for the unregistered,
restricted shares of the Company's common stock issued in
connection with the Bombshell Transaction are the approximate fair
market value of such shares at the time of the Bombshell
transaction. As disclosed in the Company's Quarterly Report on
Form 10-Q filed with the Commission on Feb. 19, 2020, the Bombshell
Transaction was not accounted for under the acquisition method of
accounting in accordance with ASC Topic 805, Business Combinations.
Due to the related party and common control relationships held
between Bombshell and the Company, the assets and liabilities of
Bombshell transferred over to the Company at their historical
carrying values.
About Grow Capital
Grow Capital (f/k/a Grown Condos, Inc.) --
http://www.growcapitalinc.com/-- operates as a call center and
expanded its business plan to include the development of a social
networking site called JabberMonkey (Jabbermonkey.com) and the
development of a location based social networking application for
smart phones called Fanatic Fans.
Grow Capital reported a net loss of $2.40 million for the fiscal
year ended June 30, 2019, compared to a net loss of $2.48 million
for the fiscal year ended June 30, 2018. As of Dec. 31, 2019, the
Company had $2.57 million in total assets, $1.62 million in total
liabilities, and $943,879 in total stockholders' equity.
L J Soldinger Associates, LLC, in Deer Park, Illinois, the
Company's auditor since 2017, issued a "going concern"
qualification in its report dated Oct. 15, 2019, citing that the
Company's significant operating losses raise substantial doubt
about its ability to continue as a going concern.
GROWCO INC: Court Tosses McKowen Bid to Stay Paulson Suit
---------------------------------------------------------
Magistrate Judge Nina Y. Wang denies Defendant John R. McKowen's
motion to stay the case captioned JOHN PAULSON, Plaintiff, v. TWO
RIVERS WATER AND FARMING COMPANY, JOHN R. McKOWEN, WAYNE HARDING,
and TIMOTHY BEALL, Defendants, Civil Action No. 19-cv-02639-PAB-NYW
(D. Colo.).
Plaintiff John Paulson initiated this civil action on behalf of
himself and a putative class of "all persons or entities who
purchased or otherwise acquired securities of GrowCo, [Inc.], a
Colorado corporation, from January 2015 until March 2017." Mr.
Paulson alleges that he is an investor from California who
purchased securities in GrowCo, Inc., a wholly owned subsidiary of
Two Rivers Water and Farming Company, between January 2015 and
March 2017. According to Plaintiff, GrowCo's securities offerings
documents contained material omissions, such as Defendant McKowen's
"fraudulent sales of securities," which led to investors like Mr.
Paulson purchasing GrowCo securities in reliance upon misleading
information.
In 2019, GrowCo filed for voluntary Chapter 11 bankruptcy with the
United States Bankruptcy Court for the District of Colorado.
Plaintiff alleges that this rendered his investments in GrowCo
"effectively worthless." Currently, GrowCo's Chapter 11 bankruptcy
case is proceeding with a hearing on GrowCo's disclosure statement
(a condition precedent to plan confirmation). Originally, the
hearing was scheduled for Jan. 29, 2020, with a deadline to submit
proofs of claim by Feb. 3, 2020. Since the filing of the Motion to
Stay, the Bankruptcy Court ordered an Amended Disclosure Statement
to be filed by Feb. 12, 2020, which a hearing is scheduled for
March 10, 2020, with a last day to oppose the disclosure statement
of March 4, 2020.
Plaintiff filed the securities action in the District Court for the
City and County of Denver. Mr. Paulson asserts five Colorado
Securities Act claims against Defendants for: (1) sale of
securities in violation of the Colorado Securities Act ("Claim 1");
(2) providing substantial assistance in the sale of securities by
means of untrue statements or omissions in violation of the
Colorado Securities Act (pleaded in the alternative) ("Claim 2");
(3) control person liability in the sale of securities by means of
untrue statements or omissions in violation of the Colorado
Securities Act (also pleaded in the alternative) ("Claim 3"); (4)
negligence ("Claim 4"); and (5) negligent misrepresentations and
omissions ("Claim 5"), as well as two individual claims against
Defendant McKowen for: (6) fraud ("Claim 6") and (7) sale of
securities through fraud ("Claim 7"). On Sept. 16, 2019, Defendants
removed this matter to the federal district court because the civil
action related to GrowCo's bankruptcy action.
In the Bankruptcy court, GrowCo then filed an adversary proceeding
against Plaintiff and sought a temporary restraining order. In the
adversary proceeding, GrowCo argued that the automatic stay under
11 U.S.C. section 362 extended to this action. The Honorable Joseph
G. Rosania, Bankruptcy Judge, denied the motion for temporary
restraining order, finding that there was no basis to extend the
automatic stay or preclude Mr. Paulson from pursuing this action.
According to Judge Wang, whether to stay discovery is a matter left
to the sound discretion of the trial court. Indeed, the Federal
Rules of Civil Procedure do not expressly provide for a stay of
proceedings, but the power to stay "is incidental to the power
inherent in every court to control the disposition of the causes on
its docket with economy of time and effort for itself, for counsel,
and for litigants." In determining whether a stay is appropriate,
the court weighs interests such as whether defendants are likely to
prevail in the civil action, whether defendants will suffer
irreparable harm, whether the stay will cause substantial harm to
other parties to the proceeding, and the public interests at stake.
The court may also consider plaintiff's interests in proceeding
expeditiously with the civil action and the potential prejudice to
plaintiff of a delay, the burden on the defendants, and the
convenience to the court. String Cheese Incident, LLC v. Stylus
Shows, Inc.
Defendant McKowen argues that two main reasons warrant a stay of
this civil action for 180 days. First, Defendant McKowen contends
Mr. Paulson's requested relief necessarily implicates GrowCo's
bankruptcy estate and is therefore subject to the automatic stay of
discovery in the Bankruptcy court. Second, a weighing of the String
Cheese factors warrants a stay. The Court disagrees and does not
find a stay warranted under the circumstances.
Mr. McKowen seeks to invoke the narrow exception to general rule
that a debtor's automatic bankruptcy stay does not extend to
nondebtor co-defendants. The court does not find that exception
applicable. The court found this narrow exception to apply where
the plaintiff alleged claims against a solvent co-defendant who was
a member and President of the debtor co-defendant and the debtor
co-defendant asserted identical and/or similar claims against the
solvent co-defendant in the bankruptcy proceedings. No similar
circumstances arise here, and the Bankruptcy court has already
rejected GrowCo's request to extend the automatic stay to Mr.
McKowen or any other party in this civil action. Accordingly, the
Court finds that Mr. Paulson's requested relief against Mr. McKowen
does not implicate or affect GrowCo's bankruptcy estate and does
not warrant a stay of discovery for this reason alone.
In considering the String Cheese factors, the Court also concludes
that a stay of discovery is not warranted.
The Court disagrees that Mr. Paulson does not have an interest in
proceeding with this matter expeditiously, or that his pursuit of
this civil action and involvement in GrowCo's bankruptcy proceeding
evinces some sort of dilatory motive. To be sure, class actions,
such as Mr. Paulson's class claims, may be time consuming, and the
Court has concerns with the apparent lack of formal discovery to
date. But this, in addition to Mr. Paulson's participation in
GrowCo's bankruptcy proceeding, does not countervail any interest
Mr. Paulson has in proceeding expeditiously here. Ultimately,
granting a 180-day stay of this matter pending the confirmation of
GrowCo's Chapter 11 Reorganization Plan "could substantially delay
the ultimate resolution of the matter, with injurious
consequences."
The Court is not convinced that allowing discovery to proceed would
unduly burden Mr. McKowen. Parties are always burdened in some
respect by discovery.
The Court finds that a stay of this civil matter for 180 days is
not convenient for the court, nor does it preserve any judicial
resources. Mr. McKowen's lone argument is that GrowCo's Chapter 11
Reorganization Plan may impact the court's Rule 23 class
certification determination. But this is mere speculation at this
point, and Mr. McKowen fails to demonstrate why this necessitates a
stay now, especially when the deadline to file a Rule 23 motion is
June 30, 2020, another four months away.
The interests of non-parties and the public interest are neutral at
best. Mr. McKowen largely regurgitates his arguments as to how Mr.
Paulson's requested relief impacts GrowCo and its bankruptcy estate
as well as the interest putative class members may have in that
estate. But as discussed above, this court is not convinced that
this is so. Thus, the Court finds these factors neutral at best if
not slightly weighing against a stay.
On balance, the String Cheese factors do not warrant a stay of this
matter.
A copy of the Court's Order dated March 6, 2020 is available at
https://bit.ly/3a4evM6 from Leagle.com.
John Paulson, individually and on behalf of all others similarly
situated, Plaintiff, represented by Alan L. Rosca --
rosca@lawgsp.com -- Goldman Scarlato & Penny P.C., Christian A.
Pfeiffer -- Pfeiffer@lawgsp.com -- Goldman Scarlato & Penny P.C.,
Paul J. Scarlato -- scarlato@lawgsp.com -- Goldman Scarlato & Penny
P.C. & Steve A. Miller -- sampc01@gmail.com -- Steve A. Miller,
P.C.
Two Rivers Water and Farming Company, a Colorado corporation,
Defendant, represented by Herbert Roy Donica , Donica Law Firm PA.
John R. McKowen, an individual, Defendant, represented by James E.
Fogg -- James.Fogg@omtrial.com -- Ogborn Mihm, LLP, Susan Hardie
Jacks -- Susie.Jacks@omtrial.com -- Ogborn Mihm, LLP, Thomas Dean
Neville -- thomas.neville@omtrial.com -- Ogborn Mihm, LLP &
Michael T. Mihm -- michael.mihm@omtrial.com -- Ogborn Mihm, LLP.
Wayne Harding, an individual, Defendant, pro se.
About GrowCo Inc.
GrowCo, Inc., was incorporated on May 4, 2014 by John R. McKowen
as
the funding vehicle for two large scale commercial greenhouse
operations in Pueblo, Colorado. It was originally intended tha t
the greenhouses would be leased to commercial marijuana growers.
It
was also intended that after the greenhouses were operational,
GrowCo would provide financial management services for tenants who
would lease the greenhouses. GrowCo was originally organized as
a
wholly-owned subsidiary of Two Rivers Water and Farming Company.
Three related entities were also created between 2014 and the
bankruptcy filing: GCP 1 was formed to own the first greenhouse;
GCP 2 was formed to own the second greenhouse; and GCP SU was
formed to provide additional capital for the greenhouse buildouts.
GrowCo, Inc., sought Chapter 11 protection (Bankr. D.D.C. Case No.
19-10512) on Jan. 24, 2019. At the time of filing, the Debtor was
estimated to have assets and debt are $1 million to $10 million.
The case is assigned to Hon. Joseph G. Rosania Jr. The Debtor is
represented by:
WADSWORTH GARBER WARNER CONRARDY, P.C.
David V. Wadsworth
David J. Warner
2580 W. Main St., Suite 200
Littleton, CO 80120
Tel: (303) 296-1999
Fax: (303) 296-7600
GROWLIFE INC: Incurs $7.4 Million Net Loss in 2019
--------------------------------------------------
GrowLife, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K reporting a net loss of $7.37
million on $8.22 million of net revenue for the year ended Dec. 31,
2019, compared to a net loss of $11.47 million on $4.57 million of
net revenue for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $4.05 million in total assets,
$6.90 million in total current liabilities, $1.78 million in total
long term liabilities, and a total stockholders' deficit of $4.63
million.
BPM LLP, in Walnut Creek, California, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
April 1, 2020 citing that the Company has sustained a net loss from
operations and has an accumulated deficit since inception. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
Since inception, the Company has sustained significant operating
losses and such losses are expected to continue for the foreseeable
future. As of Dec. 31, 2019, the Company had an accumulated
deficit of $148,461,532, cash and cash equivalents of $40,834 and a
working capital deficit of $1,815,503, (less derivative liability,
convertible debt and right of use liability). Additionally, the
Company used in operating activities $2,910,000, $3,855,000, and
$2,082,000 for the years ended Dec. 31, 2019, 2018 and 2017
respectively. The Company will require additional cash funding to
fund operations through June 30, 2020. Accordingly, management has
concluded that the Company does not have sufficient funds to
support operations within one year after the date the financial
statements are issued and, therefore, the Company concluded there
was substantial doubt about its ability to continue as a going
concern.
Growlife said, "To fund further operations, we will need to raise
additional capital. We may obtain additional financing in the
future through the issuance of its common stock, or through other
equity or debt financings. Our ability to continue as a going
concern or meet the minimum liquidity requirements in the future is
dependent on its ability to raise significant additional capital,
of which there can be no assurance. If the necessary financing is
not obtained or achieved, we will likely be required to reduce its
planned expenditures, which could have an adverse impact on the
results of operations, financial condition and our ability to
achieve its strategic objective. There can be no assurance that
financing will be available on acceptable terms, or at all."
A full-text copy of the Form 10-K is available for free at:
https://is.gd/U144ha
About GrowLife
GrowLife, Inc. (PHOT)-- http://www.shopgrowlife.com/-- is a
nationally recognized cultivation brand, providing world-class
hydroponic equipment, lighting, nutrients, media, and other
cultivation supplies to commercial and urban operations. With a
complete selection of cultivation products combined with logistics
and distribution services, GrowLife consultants help cultivation
operations efficiently control supply costs, manage build-out
investments, track supply usage, streamline workflows and create
custom solutions to aid in a wide range of grow concerns.
GUARDION HEALTH: Incurs $10.9 Million Net Loss in 2019
------------------------------------------------------
Guardion Health Sciences, Inc. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K reporting a net
loss of $10.88 million on $902,937 of total revenue for the year
ended Dec. 31, 2019, compared to a net loss of $7.77 million on
$942,153 of total revenue for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $12.88 million in total
assets, $844,981 in total liabilities, and $12.03 million in total
stockholders' equity.
Weinberg & Company, P.A., in Los Angeles, California, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated March 30, 2020 citing that the Company has experienced
recurring losses and negative operating cash flows since inception.
These matters raise substantial doubt about the Company's ability
to continue as a going concern.
Houston American said, "The Company will continue to incur
significant expenses for commercialization activities related to
its medical foods, the MapcatSF medical device, VectorVision
diagnostic equipment, the TDSI business, the new NutriGuard line of
nutraceuticals and with respect to efforts to continue to build the
Company's infrastructure. Development and commercialization of
medical foods and medical devices involves a lengthy and complex
process. Additionally, the Company's long-term viability and
growth may depend upon the successful development and
commercialization of new complementary products or product lines.
"The Company is seeking to raise additional debt and/or equity
capital to fund future operations, but there can be no assurances
that the Company will be able to secure such additional financing
in the amounts necessary to fully fund its operating requirements
on acceptable terms or at all. If the Company is unable to access
sufficient capital resources on a timely basis, the Company may be
forced to reduce or discontinue its technology and product
development programs and curtail or cease operations."
NASDAQ Notice
On Sept. 20, 2019, the Company received a notification letter from
the Nasdaq Listing Qualifications Staff of the Nasdaq Stock Market
LLC notifying the Company that, for the last 30 consecutive
business days, the closing bid price for the Company's common stock
was below the minimum $1.00 per share requirement for continued
listing on The Nasdaq Capital Market as set forth in Nasdaq Listing
Rule 5550(a)(2). The Nasdaq letter has no immediate effect on the
listing of the Company's common stock on the Nasdaq Capital
Market.
In accordance with Nasdaq listing rules, the Company has been
provided an initial period of 180 calendar days, or until March 18,
2020, to regain compliance with the Minimum Bid Price Requirement.
If, at any time during this 180-day period, the closing bid price
of the Company's common stock is at least $1.00 for a minimum of 10
consecutive business days, the Staff will provide the Company
written confirmation of compliance with the Minimum Bid Price
Requirement and the matter will be closed. If the Company does not
regain compliance by the Compliance Date, the Company may be
eligible for an additional 180 calendar day compliance period. To
qualify for such additional compliance period, the Company would
have to meet the continued listing requirements of the NASDAQ
Capital Market, except for the Minimum Bid Price Requirement, and
the Company would need to provide written notice of its intention
to cure the deficiency during the additional compliance period. If
the Company is not eligible for the additional compliance period or
it appears to the Staff that the Company will not be able to cure
the deficiency or if the Staff exercises its discretion to not
provide such additional compliance period, the Staff will provide
written notice to the Company that its common stock will be subject
to delisting. At that time, the Company may appeal the Staff's
delisting determination to a Nasdaq Hearing Panel.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/zQfCFf
About Guardion Health Sciences
Headquartered in San Diego, California, Guardion --
http:///www.guardionhealth.com/-- is a specialty health sciences
company (i) that has developed medical foods and medical devices in
the ocular health marketplace and (ii) that is developing
condition-specific nutraceuticals that the Company believes will
provide medicinal and health benefits to consumers.
GUARDION HEALTH: Receives Initial Order from Astramune Sdn Bhd
--------------------------------------------------------------
Guardion Health Sciences, Inc. received an initial order from
Astramune Sdn Bhd, a subsidiary of Ho Wah Genting Berhad (KLSE:
9601), a Malaysian company listed on the Malaysian Stock Exchange
(Industrial Products sector), for a sample order of its proprietary
immuno-supportive formula. Guardion currently anticipates shipping
this sample order by June 30, 2020.
The Company had previously announced in February 2020 that HWGB
contracted Guardion and its wholly-owned subsidiary, NutriGuard, to
develop an immuno-supportive formula for the HWGB consumer base.
Dr. Mark McCarty, the original founder of NutriGuard, and now a
senior scientist/consultant to Guardion, has led the development of
this proprietary formulation.
Michael Favish, CEO of Guardion Health Sciences, commented, "We
were pleased to have been selected by HWGB to utilize our expertise
and resources to develop a proprietary product that is specifically
designed to boost immune system capability. Given the demand
expected from HWGB's customer base, we are advised that HWGB is
ramping up this business line, and we are preparing to be able to
meet HWGB's product requirements during 2020 and thereafter."
Dr. McCarty is a leader in the scientific validation of
nutrition-based therapies for potentiating the type 1 interferon
response to RNA viruses. The formula is designed to provide
immuno-supportive benefits to its users. The formulation has not
been used or tested for, nor is it intended to specifically
address, symptoms of the coronavirus (COVID-19).
About Guardion Health Sciences
Headquartered in San Diego, California, Guardion --
http://www.guardionhealth.com/-- is a specialty health sciences
company (i) that has developed medical foods and medical devices in
the ocular health marketplace and (ii) that is developing
condition-specific nutraceuticals that the Company believes will
provide medicinal and health benefits to consumers.
Guardion Health reported a net loss of $10.88 million on $902,937
of total revenue for the year ended Dec. 31, 2019, compared to a
net loss of $7.77 million on $942,153 of total revenue for the year
ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $12.88
million in total assets, $844,981 in total liabilities, and $12.03
million in total stockholders' equity.
Weinberg & Company, P.A., in Los Angeles, California, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated March 30, 2020 citing that the Company has experienced
recurring losses and negative operating cash flows since inception.
These matters raise substantial doubt about the Company's ability
to continue as a going concern.
HARTSHORNE HOLDINGS: Gets Court Approval to Hire OCPs
-----------------------------------------------------
Hartshorne Holdings, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Kentucky to hire professionals
used in the ordinary course of its business.
The court order authorized Hartshorne and its affiliates to hire
"ordinary course professionals" without the need to file separate
employment or fee applications.
The OCPs who are expected to be utilized in the Debtors' Chapter 11
cases are:
Professionals Services Fee Cap
------------- -------- -------
Quisenberry and Quisenberry Legal Services $250
Automatic Data Processing ADP) Payroll Services $5,200
Harding Shymanski & Company Accounting Services $1,000
Robyn Staples Title/Auditing Services $2,800
Associated Engineers Engineering Services $20,000
Advanced Coal Technology Maintenance Software $7,300
Marshall Miller & Associates Engineering Services $3,800
About Hartshorne Holdings
Hartshorne Holdings, LLC and affiliates are engaged in the
production and sale of thermal coal through the operation of the
Poplar Grove Mine, which is part of the Buck Creek Complex located
in the Illinois Coal Basin in Western Kentucky. The Buck Creek
Complex includes two mines: (i) the operating Poplar Grove Mine,
and (ii) the permitted, but not constructed, Cypress Mine.
On Feb. 20, 2020, Hartshorne Holdings, LLC and three affiliates
sought Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Lead Case
No. 20-40133).
Hartshorne Holdings was estimated to have $50 million to $100
million in assets and liabilities as of the bankruptcy filing.
The Hon. Thomas H. Fulton is the case judge.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Frost Brown Todd LLC as local counsel; FTI Consulting,
Inc. as financial advisor; and Perella Weinberg Partners LP as
investment banker. Stretto is the claims agent, maintaining the
page https://cases.stretto.com/hartshorne
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 10, 2020. The committee is represented by
Dentons Bingham Greenebaum LLP and Whiteford Taylor Preston, LLP.
HARTSHORNE HOLDINGS: Taps Frost Brown as Local Counsel
------------------------------------------------------
Hartshorne Holdings, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Kentucky to hire Frost Brown Todd
LLC as its local bankruptcy counsel.
Frost Brown will provide these services to Hartshorne and its
affiliates in connection with their Chapter 11 cases:
a. advise the Debtors of their powers and duties in the
continued management and operation of their business and property;
b. attend meetings and negotiate with representatives of
creditors and other parties, and advise the Debtors on the conduct
of their cases, including all of the legal and administrative
requirements of operating in Chapter 11;
c. take all necessary actions to protect and preserve the
Debtors' assets, including the prosecution of actions on behalf of
their estates, the defense of any actions commenced against the
estates, negotiations concerning litigation in which the Debtors
may be involved, and objections to claims filed against the
estates;
d. prepare legal papers;
e. prepare and negotiate a plan of reorganization, disclosure
statement and all related agreements or documents and take any
necessary actions to obtain confirmation of the plan;
f. advise the Debtors in connection with the sale of their
assets; and
g. appear before the bankruptcy court, appellate courts and
any other courts.
The firm will be paid at these rates:
Edward King Member $580 per hour
Ronald Gold Member $695 per hour
Bryan Mattingly Member $520 per hour
Bryan Sisto Associate $275 per hour
Shelby Bryant Senior Paralegal $220 per hour
Frost Brown received retainers from the Debtors in the aggregate
amount of $100,000.
Edward King, Esq., at Frost Brown, disclosed in court filings that
the firm and its attorneys are "disinterested" within the meaning
of Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
King disclosed that the firm did not agree to a variation of its
standard or customary billing arrangements for its employment with
the Debtors, and that no professional at the firm varied his rate
based on the geographic location of the Debtors' bankruptcy cases.
The attorney also disclosed that his firm has worked closely with
the Debtors and their lead bankruptcy counsel, Squire Patton Boggs
(US) LLP, to develop an estimated budget and staffing plan for
approximately the first four months of the Debtors' bankruptcy
proceedings.
All professionals other than Bryan Mattingly, Esq., first performed
work for the Debtors in connection with their bankruptcy cases.
The billing rates and material financial terms, for all
professionals other than Mr. Mattingly, for the pre-bankruptcy
petition period are the same in all respects as the billing rates
and material financial terms for the post-petition period. Mr.
Mattingly's rate is also the same in all respects save for a
standard annual rate adjustment at the beginning of 2020, by which
his rate increased by $25 per hour.
Frost Brown can be reached through:
Edward M. King, Esq.
Frost Brown Todd LLC
400 West Market Street, Suite 3200
Louisville, Kentucky 40202
Telephone: 502.5 89.5400
Facsimile: 502.581.1087
Email: tking@fbtlaw.com
About Hartshorne Holdings
Hartshorne Holdings, LLC and affiliates are engaged in the
production and sale of thermal coal through the operation of the
Poplar Grove Mine, which is part of the Buck Creek Complex located
in the Illinois Coal Basin in Western Kentucky. The Buck Creek
Complex includes two mines: (i) the operating Poplar Grove Mine,
and (ii) the permitted, but not constructed, Cypress Mine.
On Feb. 20, 2020, Hartshorne Holdings, LLC and three affiliates
sought Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Lead Case
No. 20-40133).
Hartshorne Holdings was estimated to have $50 million to $100
million in assets and liabilities as of the bankruptcy filing.
The Hon. Thomas H. Fulton is the case judge.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Frost Brown Todd LLC as local counsel; FTI Consulting,
Inc. as financial advisor; and Perella Weinberg Partners LP as
investment banker. Stretto is the claims agent, maintaining the
page https://cases.stretto.com/hartshorne
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 10, 2020. The committee is represented by
Dentons Bingham Greenebaum LLP and Whiteford Taylor Preston, LLP.
HARTSHORNE HOLDINGS: Taps Stretto as Administrative Advisor
-----------------------------------------------------------
Hartshorne Holdings, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Kentucky to hire Stretto as
administrative advisor.
Stretto will provide these bankruptcy administrative services to
Hartshorne and its affiliates in connection with their Chapter 11
cases:
a. assist with claims management and reconciliation, plan
solicitation, balloting, disbursements, and tabulation of votes,
and prepare any related reports in support of confirmation of a
Chapter 11 plan;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs, and
gather data in conjunction therewith;
d. provide a confidential data room; and
e. manage and coordinate any distributions pursuant to the
plan.
The firm received the sum of $25,000 from the Debtors prior to
their bankruptcy filing.
Sheryl Betance, managing director of Stretto, disclosed in court
filings that the firm is "disinterested" within the meaning of
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto
410 Exchange, Suite 100
Irvine, CA 92602
Tel: 714.716.1872
Email: sheryl.betance@stretto.com
About Hartshorne Holdings
Hartshorne Holdings, LLC and affiliates are engaged in the
production and sale of thermal coal through the operation of the
Poplar Grove Mine, which is part of the Buck Creek Complex located
in the Illinois Coal Basin in Western Kentucky. The Buck Creek
Complex includes two mines: (i) the operating Poplar Grove Mine,
and (ii) the permitted, but not constructed, Cypress Mine.
On Feb. 20, 2020, Hartshorne Holdings, LLC and three affiliates
sought Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Lead Case
No. 20-40133).
Hartshorne Holdings was estimated to have $50 million to $100
million in assets and liabilities as of the bankruptcy filing.
The Hon. Thomas H. Fulton is the case judge.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Frost Brown Todd LLC as local counsel; FTI Consulting,
Inc. as financial advisor; and Perella Weinberg Partners LP as
investment banker. Stretto is the claims agent, maintaining the
page https://cases.stretto.com/hartshorne
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 10, 2020. The committee is represented by
Dentons Bingham Greenebaum LLP and Whiteford Taylor Preston, LLP.
HHH CHOICES: Suit vs M. Farrett et al. Set for May 18 Trial
------------------------------------------------------------
District Judge Analisa Torres set for May 18, 2020, the trial in
the case captioned SEAN SOUTHARD, as Plan Administrator of the
Amended Chapter 11 Plan of Liquidation for Hebrew Hospital Senior
Housing, Inc., Plaintiff, v. MARY FRANCES FARRETT, BRIAN PERINO,
PETER SANNA, PETER CUTAIA, ALAN PEARCE, CHARLES GOLDBERGER, MICHAEL
LAUB, MARVIN LIFSON, DONNA JAKUBOVITZ, EDWARD SCHECTER, LEON
SILVERMAN, and DAVID KERSHNER, Defendants, No. 20 Civ. 290 (AT)
(S.D.N.Y.). The joint pretrial order is due April 10, 2020.
Mary Frances Barrett is president of all of the Debtors.
In accordance with Paragraph V.B of the Court's Individual
Practices in Civil Cases, the parties must submit a proposed joint
pretrial order to the Court by PDF attachment to an e-mail by April
10, 2020.
In accordance with Paragraphs V.C and V.D of the Court's Individual
Practices, each party must file and serve along with the joint
pretrial order all required pretrial filings, including joint
requests to charge, joint proposed verdict forms, and joint
proposed voir dire questions.
In accordance with Paragraph V.C(v) of the Court's Individual
Practices, the parties must deliver to the Court by April 10, 2020,
one copy of each documentary exhibit sought to be admitted,
pre-marked (i.e., labeled with exhibit stickers) and assembled
sequentially in a looseleaf binder or in separate manila folders
labeled with the exhibit numbers and placed in a suitable container
for ready reference.
In accordance with Paragraph V.F of the Court's Individual
Practices, by April 17, 2020, the parties must file, if necessary,
any objections to another party's requests to charge or proposed
voir dire questions and any opposition to any legal argument in a
pretrial memorandum.
A copy of the Court's Order dated Feb. 21, 2020 is available at
https://bit.ly/38Q865I from Leagle.com.
Sean Southard, as Plan Administrator of the Amended Chapter 11 Plan
of Liquidation for Hebrew Hospital Senior Housing, Inc., Plaintiff,
represented by David Jay Stone -- stone@bespc.com -- Bragar, Eagel
& Squire P.C., Jason W. Burge -- jburge@fishmanhaygood.com --
Fishman Haygood, L.L.P., pro hac vice, Lawrence P. Eagel , Bragar,
Eagel & Squire P.C. & Thomas Robert Califano --
thomas.califano@dlapiper.com -- DLA Piper US LLP.
Mary Frances Barrett, Brian Perino, Peter Sanna, Peter Cutaia, Alan
Pearce, Charles Goldberger, Michael Laub, Marvin Lifson, Donna
Jakubovitz, Edward Schecter, Leon Silverman & David Kershner,
Defendants, represented by Claire Marie Hankin-Wray --
chankinwray@goldbergsegalla.com -- Goldberg Segalla, LLP & Jill
Catherine Owens -- jowens@goldbergsegalla.com -- Goldberg Segalla,
LLP.
About HHH Choices Health Plan
Three alleged creditors owed about $1.9 million submitted an
involuntary Chapter 11 petition for HHH Choices Health Plan, LLC,
on May 4, 2015 (Bankr. S.D.N.Y. Case No. 15-11158) in Manhattan.
The petitioners are The Royal Care, Inc., (allegedly owed
$772,762), Amazing Home Care Services ($1,178,752), and InterGen
Health LLC ($42,298), all claiming that they are owed by the Debtor
for certain services rendered. They all tapped Marc A. Pergament,
Esq., at Weinberg, Gross & Pergament, LLP, in Garden City, New
York, as counsel.
With the consent from the board of directors, HHH Choices filed a
notice of consent to order for relief on June 1, 2015, and an order
for relief was entered on June 22, 2015. HHH Choices was engaged in
operating a managed long-term care program ("MLTCP"). HHH Choices,
which essentially was a health insurance maintenance plan, sold its
business in 2015.
On Dec. 9, 2015, Hebrew Hospital Senior Housing, Inc., commenced a
Chapter 11 case (Bankr. S.D.N.Y. Case No. 15-13264). HHSH is
engaged in the sponsorship and operation of a 120-unit continuing
care retirement community ("CCRC") with ancillary components
consisting of; a 20 bed skilled nursing facility ("SNF"), which
includes an adult day healthcare program ("ADHCP"), and a 10-bed
enriched housing unit. These programs are commonly known as,
Westchester Meadows and Fieldstone.
On Jan. 8, 2016, Hebrew Hospital Home of Westchester, Inc.,
commenced a Chapter 11 Case (Case No. 16-10028). HHHW's
predecessor, Hebrew Hospital Home, Inc. owned and operated a
480-bed skilled nursing facility located in the Bronx. In 1998,
HHHW opened a new 160-bed facility situated at 61 Grasslands Road,
Valhalla, New York. HHHW sold the Bronx SNF in 2007 and the
Westchester SNF in mid-2015. HHHW no longer has any active business
operations. However, it still has responsibilities to wind-up its
affairs, including finishing any remaining billing and processing,
filing reports with regulatory agencies and closing its books and
records. The true-up process and final reconciliation with the
purchasers of the Westchester SNF is incomplete.
The Debtors sought and obtained an order directing joint
administration of their cases under Case No. 15-11158. Judge
Michael E. Wiles oversees the cases.
Mary Frances Barrett is president of all of the Debtors.
The Debtors tapped Harter Secrest & Emery LLP as counsel and
Getzler Henrich & Associates LLC as financial advisor.
The Office of the U.S. Trustee appointed five creditors of HHH
Choices to serve on an official committee of unsecured creditors.
The HHH Choices Committee tapped Farrell Fritz, P.C., as counsel.
William K. Harrington, U.S. Trustee for Region 2, appointed five
creditors of Hebrew Hospital Home of Westchester Inc., an affiliate
of HHH Choices Health Plan LLC, to serve on an official committee
of unsecured creditors. The Hebrew Hospital Committee tapped Duane
Morris as counsel and Alston & Bird LLP as counsel.
The Official Committee of Unsecured Creditors of Hebrew Hospital
Senior Housing, Inc., hired Bragar Eagel & Squire, P.C., as special
litigation counsel.
* * *
Hebrew Hospital Home of Westchester, Inc., and its Official
Committee of Unsecured Creditors filed a joint Chapter 11 plan of
liquidation on Aug. 10, 2017.
The Official Committee of Unsecured Creditors of HHH Choices Health
Plan filed a Chapter 11 plan of liquidation for the Debtor on Aug.
15, 2017.
Hebrew Hospital Senior Housing, Inc., on April 18, 2018, filed a
Chapter 11 Plan of Liquidation. The Plan is not jointly filed by
the Official Committee of Unsecured Creditors.
INTERNATIONAL SEAWAYS: S&P Alters Outlook to Neg., Affirms B- ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on International Seaways
Inc. to negative from stable, and affirmed its 'B-' issuer credit
rating on the company and the 'B' issue-level rating on its $25
million senior unsecured notes.
"We assume a global recession could reduce the demand in
International Seaways' tanker markets and weaken the company's
credit measures. Our economists forecast a global recession this
year and expect global GDP to increase by just 1.0%-1.5% in 2020.
Therefore, we assume International Seaways' adjusted debt leverage
will increase substantially due to the reduced level of economic
activity and tanker demand," S&P said.
"The negative outlook reflects our view that the global recession
in 2020 will negatively affect the conditions in the international
tanker market. Therefore, we assume International Seaways' debt
leverage will increase this year," S&P said.
"We could lower our ratings on International Seaways if we assess
the company's liquidity as strained due to weaker-than-expected
conditions in the tanker markets. Although less likely, we could
also lower our ratings if we view the company's capital structure
as unsustainable even if it does not face a near-term (over the
next 12 months) credit or payment crisis," the rating agency said.
S&P said it could revise its outlook on International Seaways to
stable if the company's credit measures do not decline as much as
the rating agency anticipates and the company is able to maintain
debt leverage in the mid-4x area on a sustained basis. This could
occur if, for example, the conditions in the company's end markets
and its spot rates do not decline by as much as S&P currently
expects.
INTERTAPE POLYMER: Egan-Jones Lowers Sr. Unsecured Ratings to BB
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Intertape Polymer Group Incorporated to BB from
BBB-.
Intertape Polymer Group Incorporated is a packaging products and
systems company which supplies retailers and manufacturers, based
in Montreal and Sarasota, Florida, with 17 locations, 12
manufacturing locations in North America and one in Europe, and
2000 employees.
J-H-J INC: Proposes an Auction of University Ave Store Equipment
----------------------------------------------------------------
J-H-J, Inc., and Lafayette Piggly Wiggly, LLC, ask the U.S.
Bankruptcy Court for the Western District of Louisiana to authorize
the sale of all University Ave Store furniture, fixtures and
equipment at public auction free and clear of all liens, interests,
claims and encumbrances.
Lafayette PW currently owns and operates two grocery stores in
Lafayette, Louisiana: one store on Moss Street and one store at the
Leased Premises. Both stores operate under the name Shopper's
Value. In 2018, University Store operations resulted in losses for
Lafayette PW of nearly $65,000; and, in 2019, such losses totaled
over $202,000. Lafayette PW's losses from operation of the
University Store have continued to grow as the store and shopping
center, in which it is housed, continues to age and show signs of
wear. Nevertheless, based on its analysis of revenue history and
the market area of the University Store, Lafayette PW does not
believe that renovating the University Store would generate
increased revenues sufficient to justify the costs projected for
the substantial store renovations needed. Accordingly, Lafayette
PW has determined that permanent closure of the University Store is
necessary to eliminate future losses, improve its financial
viability and preserve estate assets.
JHJ provides administrative support for all of the Debtors as well
as other related chapter 11 Debtors, whose cases are pending before
the Court and are being jointly administered in In re SVFoods
Avondale, LLC, Case No. 19-51526 ("Avondale Debtors"). Through the
administrative role, JHJ has gained experience in store closing
procedures, including the associated liquidation of retail goods.
The Debtors ask authority to sell all of furniture, fixtures and
equipment of Lafayette PW, located at the University Store, free
and clear of all liens, interests, claims and encumbrances to the
highest bidder at a public auction on March 11, 2020. In
connection therewith, the Debtors ask authorization to enter into
the contract, with an auctioneer to conduct the proposed Auction.
Finally, the Debtors ask authority to pay the net proceeds from the
Auction to SuperValu, lienholder of the furniture, fixtures and
equipment at issue.
Through its Motion for Authority to Reject Four Corners Shopping
Center Lease Pursuant to 11 USC Section 365, Lafayette PW has
requested the Court's authority to reject, effective March 31,
2020, the lease of the commercial property at which the University
Store operates. That motion is currently scheduled for hearing on
March 10, 2020 at 10:00 a.m.
In addition, contemporaneously with the filing of the Motion, the
captioned chapter 11 debtors filed their Motion to Approve Transfer
of University Ave Store Inventory Pursuant to Section 363 of the
Bankruptcy Code and Waiving Requirements of Bankruptcy Rule
6004(h),
through which said debtors have sought authority to, pursuant to 11
U.S.C. Section 363, transfer and convey substantially all of the
Lafayette PW's inventory of retail goods, remaining at the time of
the University Store Closure, to the following Debtors: TSD
Markets, LLC and J-H-J, Inc.
In connection with the University Closure, Lafayette PW proposes to
sell all of its furniture, fixtures and equipment located at the
University Store ("FF&E") to the highest bidder at a public
auction. The proposed auctioneer, Grafe Auction Co., has agreed to
conduct the Auction on March 12, 2020. Such date will allow
sufficient time to finalize the FF&E sales, remove all FF&E and
timely return the leased premises to the lessor in the condition
required under the associated Lease.
The Auction will take place at the University Store; however, only
internet bidding on Grafe's website will be permitted. Grafe will
arrange for the public to preview the FF&E at the University Store
and/or online prior to the Auction.
The Debtors ask authority to engage Grafe to conduct an auction of
the FF&E on the terms set forth in the contract. Grafe was
established in 1959 and specializes in auctions of grocery store
equipment as well as industrial and commercial equipment. Grafe
conducts auctions of equipment and other commercial items
throughout the country.
The Grafe Contract provides for compensation of Grafe in the form
of a commission in the amount of 15% of the total sale proceeds
collected from sale of FF&E. In addition, Grafe will also be
entitled to collect and retain from third party buyers a 15%
buyer's premium/fee.
After the Auction, Grafe proposes to follow the settlement
procedures outlined in the Grafe Contract, including: within
twelve banking days (holidays and weekends are excluded), Grafe
will: (i) deduct from the Sales Proceeds the Commission on Property
Sold, and Sale Expenses due to Grafe Auction; (ii) remit, to Seller
pursuant to the instructions to be provided by Seller, the
remaining collected Sales Proceeds; and (iii) provide to Seller a
Final Report of Sale and an itemization of all Sale Expenses.
All Sale Expenses are identified in the Auction Contract; however,
the primary Sale Expenses associated with the Auction are: (i)
Advertising - Seller's advertising liability will not exceed
$2,500; (ii) Pre-auction Setup Fee - Grafe Auction will receive,
and Seller will pay $1,200 total for pre-auction setup fees; and
(iii) Post-auction Removal and Rigging Fee - Grafe Auction will
receive, and Seller will pay $4,000 total for post-auction removal
and rigging fees.
As set forth in the Third Interim Cash Collateral Order, SuperValu
asserts that Lafayette PW and all other captioned Debtors are
solidarily liable to SuperValu for various amounts which exceed at
least $7 million. Through security agreement dated Nov. 20, 2009
and related UCC-1 filing, SuperValu holds a perfected security
interest in all FF&E of Lafayette PW and proceeds thereof. Based
on the estimated value of the FF&E, the Debtors propose to pay all
net proceeds from Auction of the FF&E to SuperValu to be applied to
the aforementioned claim.
For the reasons set forth, the Debtors propose to sell the FF&E to
the highest bidder at the public Auction to be conducted on March
12, 2020 by third-party auctioneer, Grafe Auction.
To permit Lafayette PW, Grafe, and the purchasers of the FF&E at
Auction to proceed immediately to closing, the Debtors ask that the
stay provided by Bankruptcy Rule 6004(h) be waived.
A copy of the Auction Contract is available at
https://tinyurl.com/s59lznm from PacerMonitor.com free of charge.
About J-H-J Inc.
J-H-J, Inc. is the lead debtor in the jointly administered cases
with eight debtor affiliates (Bankr. W.D. La. Lead Case No.
19-51367) filed on November 15, 2019 in Lafayette, La.
JHJ, a Louisiana corporation, was formed in 1984 for the purpose
of
owning and operating retail grocery stores in the Baton Rouge
metropolitan area. Currently, JHJ owns and operates two such
stores. Beginning in 1998, the remaining Debtors were formed by
certain shareholders of JHJ for purposes of operating retail
grocery stores in various locations in southern Louisiana.
Collectively, the Debtors currently own and operate 12 grocery
stores under the names Piggly Wiggly or Shoppers Value. All
general administrative duties for the Debtors are handled by JHJ.
The Debtor affiliates are: (i) Lafayette Piggly Wiggly, LLC; (ii)
T.H.G. Enterprises, LLC; (iii) SVFoods Old Hammond, LLC; (iv)
SVFoods Jefferson, LLC; (v) T&S Markets, LLC; (vi) TSD Markets,
LLC; (vii) Baker Piggly Wiggly, LLC; and (viii) BR Pig, LLC.
As of the petition date, J-H-J is estimated with both assets and
liabilities at $10 million to $50 million. The petition was signed
by Garnett C. Jones, Jr., president. Judge John W. Kolwe is
assigned the cases. The Steffes Firm, LLC serves as counsel to the
Debtors.
JACKSON OVERLOOK: Sale of New York Property to Fort Tyron Approved
------------------------------------------------------------------
Judge James L. Garrity, Jr. of the U.S. Bankruptcy Court for the
Southern District of New York authorized Jackson Overlook Corp.,
and Fort Tryon Tower SPE, LLC to sell the real property located at
1 Bennett Park, New York, New York, also known as 33-35 Overlook
Terrace, 730-734 West 184th Street, and 524 Fort Washington Avenue,
Block 2180, Lots 62 and Part of 63 and 64, to Fort Tryon Overlook,
LLC.
The Sale is free and clear of all liens, claims, charges,
encumbrances or interests of any kind or nature, as provided in the
Plan, the Credit Bid Agreement, the Order and the Confirmation
Order.
Pursuant to Section 1142 of the Bankruptcy Code, the Office of the
Register of the City of New York in New York County will record any
recordable transfer document (including any deed, mortgage or other
instrument) without the payment of any New York State Real Estate
Transfer Tax imposed under article 31 of the New York Tax Law, any
New York City Real Property Transfer Tax imposed under section
11-2102 of the New York City Administrative Code, any filing fees
or recording fees with respect thereto, and any other tax within
the purview of section 1146(a) of the Bankruptcy Code.
The terms and conditions of the Order will be immediately effective
and enforceable upon its entry and the requirements of Bankruptcy
Rule 6004(h) are waived.
About Jackson Overlook Corp.
Jackson Overlook Corp. owns a 100% membership interest in Fort
Tryon Tower SPE LLC. Fort Tryon owns certain real property located
in the Hudson Heights section of Manhattan at 1 Bennett Park, New
York. The property is the site of an intended but still incomplete
23-storey, 114-unit condominium development project that was
originally scheduled to open years ago but ran into a host of
problems involving lenders, cessation of financing, cessation of
construction, and changing market conditions.
Jackson Overlook sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 18-12465) on Aug. 14,
2018. In the petition signed by Rutherford H.C. Thompson,
authorized manager, the Debtor was estimated to have assets of $10
million to $50 million and liabilities of $10 million to $50
million.
Goldberg Weprin Finkel Goldstein LLP is the Debtor's legal counsel.
William Henrich of Getzler Henrich & Associates LLC is the chief
restructuring officer.
JAGUAR HEALTH: Nantucket & Burford Report 0.3% Stake
----------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Nantucket Investments Limited and Burford Capital
Limited disclosed that as of March 31, 2020, they beneficially own
36,362 shares of common stock issuable upon conversion of
non-voting shares of common stock of Jaguar Health, Inc., which
represents 0.3 percent of the shares outstanding. Nantucket is
indirectly owned by Burford Capital Limited. The percentage was
based upon a total of 14,311,443 shares of Common Stock outstanding
as of Dec. 31, 2019, as reported by the Company in its Registration
Statement on Form S-1 filed on January 22, 2020.
A full-text copy of the regulatory filing is available for free
at:
https://is.gd/8cuH6B
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial
stage pharmaceuticals company focused on developing novel,
sustainably derived gastrointestinal products on a global basis.
Its wholly-owned subsidiary, Napo Pharmaceuticals, Inc., focuses on
developing and commercializing proprietary human gastrointestinal
pharmaceuticals for the global marketplace from plants used
traditionally in rainforest areas. Jaguar Health's principal
executive offices are located in San Francisco, California.
Jaguar Health reported a net loss of $38.54 million for the year
ended Dec. 31, 2019, compared to a net loss of $32.15 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$36.41 million in total assets, $15.84 million in total
liabilities, $9.89 million in series A redeemable convertible
preferred stock, and $10.67 million in total stockholders' equity.
Mayer Hoffman McCann P.C., in San Francisco, California, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated April 2, 2020 citing that the
Company has experienced losses since inception, significant cash
used in operations, and is dependent on future financing to meet
its obligations and fund its planned operations. These conditions
raise substantial doubt about its ability to continue as a going
concern.
JDUB'S BREWING: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: JDub's Brewing Company, LLC
1215 Mango Ave.
Sarasota, FL 34237
Business Description: JDub's Brewing Company, LLC is a privately
held company in the beverage manufacturing
industry.
Chapter 11 Petition Date: April 6, 2020
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 20-02926
Debtor's Counsel: Daniel Etlinger, Esq.
DAVID JENNIS, PA D/B/A JENNIS LAW FIRM
606 East Madison Street
Tampa, FL 33602
Tel: (813) 229-2800
Email: ecf@JennisLaw.com
Total Assets: $697,542
Total Liabilities: $1,687,781
The petition was signed by Jeremy Joerger, 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/tdIyPl
KC & KAJI: Case Summary & 2 Unsecured Creditors
-----------------------------------------------
Debtor: KC & KAJI, LLC
2819 I-30 Frontage Road
Caddo Mills, TX 75135
Chapter 11 Petition Date: April 6, 2020
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 20-40937
Judge: Hon. Brenda T. Rhoades
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS
12770 Coit Road
Suite 1100
Dallas, TX 75251
Tel: 972-991-5591
E-mail: eric@ealpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Gaurab Gasnet, managing member.
A copy of the petition containing, among other items, a list of the
Debtor's two unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/sGM5CM
KOHL'S CORP: Egan-Jones Lowers Sr. Unsecured Debt Ratings to BB
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Kohl's Corporation to BB from BB+.
Kohl's is an American department store retail chain, operated by
Kohl's Corporation. With 1,158 locations, it is the largest
department store chain in the United States as of February 2013.
The company was founded by a Polish immigrant Maxwell Kohl, who
opened a corner grocery store in Milwaukee, Wisconsin in 1927.
KUEHG CORP: S&P Downgrades ICR to 'CCC+' on COVID-19 Disruption
---------------------------------------------------------------
S&P Global Ratings lowered its ratings on KUEHG Corp. by one notch,
including the issuer credit rating to 'CCC+' from 'B-'.
The global COVID-19 pandemic and expected broader economic downturn
will likely negatively affect KUEHG's operations through at least
the second half of 2020. The pervasive effect of reported center
closures across the company's fleet will result in ongoing
deterioration of credit metrics with each additional closure.
"We believe the declining demand outlook for out-of-home childcare
services is much cloudier as a result of the nation's response to
COVID-19 and the accompanying rise in unemployment across affected
industries. While we have yet to see any substantial number of
cases linked to childcare centers as a vector, a larger percentage
of the workforce is working from home, which decreases the need for
an out-of-home provider. Although there is high uncertainty about
the duration and extent of the coronavirus outbreak, KUEHG's
long-term financial commitments are unsustainable in the current
environment," S&P said.
S&P's negative outlook on KUEHG reflects its expectations that the
global COVID-19 outbreak and resulting center closures and reduced
out of home demand for child care will significantly curb revenue
and further weaken KUEHG's already highly leveraged credit metrics.
It expects FOCF to be negative and for leverage to spike well above
its previous expectations of low-6x this year.
"We could lower the rating on KUEHG if we believe that a path to
default is likely, given performance challenges and liquidity
constraints arising from this pandemic. This could occur as a
result of a covenant breach or inability to sustain sufficient
liquidity to fund operations," S&P said.
"We could consider a stable outlook if we believe that the company
has a clear path to stabilize operations and restore and maintain
adequate liquidity. This could occur if we believe that economic
slowdown and the pandemic's effects will moderate and centers
return to historical levels of profitability that results in
sustained improvements cash flow generation, liquidity, and overall
debt leverage," S&P said.
LANSDOWNE CONSTRUCTION: Wins Avoidance Suit v Subcontractor
-----------------------------------------------------------
Bankruptcy Judge Brian F. Kenney granted the motion for summary
judgment filed by the bankruptcy trustee for Lansdowne
Construction, LLC and denied Defendant T&B Electric, LLC's motion
for summary judgment in the avoidance suit captioned H. JASON GOLD,
CHAPTER 7 TRUSTEE, Plaintiff, v. T & B ELECTRIC, L.L.C, Defendant,
Adversary Proceeding No. 19-01056-BFK (Bankr. E.D. Va.).
The Trustee contends T&B received preferential transfer payments
that enabled it to receive more than it would have received in a
liquidation.
In June 2016, Lansdowne Construction, LLC entered into a Standard
Form of Agreement as general contractor with 3 Boys, LLC, for the
construction of a project known as Rosner Stafford Toyota on
Garrisonville Road, in Stafford, Virginia. In August 2016,
Lansdowne entered into a Subcontract with T&B for electrical work
on the project. In October 2016, 3 Boys assigned the Contract to
Sheehy Stafford Property, LLC when Sheehy purchased the property.
On or about November 16, 2017, T&B submitted an invoice to
Lansdowne in the amount of $30,250.00. Lansdowne submitted an
Application in the amount of $27,225.00, the amount of the T&B
Invoice, less 10% retainage. On or about December 19, 2017, T&B
submitted an invoice to Lansdowne in the amount of $8,990.00.
Lansdowne submitted an Application in the amount of $8,091.00, the
amount of the T&B Invoice, less 10% retainage. On the same day,
T&B submitted its Final Application for Payment, in the amount of
$42,582.30, which included a Final Waiver of Lien and Unconditional
Release.
On or about March 27, 2018, Lansdowne submitted its Final
Application for Payment, in the amount of $4,642.00, which included
a General Contractor Final Waiver of Lien and Conditional Release.
On April 19, 2018, T&B filed a Memorandum of Mechanic's Lien in the
land records of Stafford County, claiming a mechanic's lien against
Sheehy's property in the amount of $82,489.00. On April 26, 2018,
David Brooks of Lansdowne sent an e-mail to Brian Ganow of T&B
notifying T&B that Sheehy was issuing joint checks to the
subcontractors and that the joint checks were available for pickup
from Sheehy's office. Sheehy Auto Stores, Inc. issued a joint
check payable to Lansdowne and T&B in the amount of $82,489.00. A
representative of Lansdowne endorsed the check.
Brian Ganow, the principal and owner of T&B, has told the Court
that "At no point did either myself or anyone representing T&B
enter into any discussion with Lansdowne regarding a joint check
agreement or execute such an agreement with Lansdowne." When T&B
picked up the check, it executed and delivered a Certificate of
Release of its Memorandum of Mechanic's Lien and a Final Lien
Waiver.
On May 15, 2018, Lansdowne filed a Voluntary Petition under Chapter
7 in this Court. Mr. Gold was appointed as the Trustee.
On Sept. 7, 2018, Sheehy filed a Consent Motion for Modification of
the Automatic Stay. Sheehy represented that it owed the Debtor
$534,139.48, subject to certain offsets for costs to complete the
project ($24,000), and amounts that it had paid to the
subcontractors so that it could obtain the releases of mechanic's
liens ($276,464.87). Sheehy further alleged that an additional
$334,347.30 was owed to subcontractors, and that therefore, there
was no remaining balance due on its contract with Lansdowne.
On Oct. 3, 2018, the Court entered a Consent Order Modifying the
Automatic Stay so that Sheehy could accomplish its setoff and pay
the remaining subcontractor claims. Sheehy filed a Proof of Claim
in the amount of $634,812.17. In its Proof of Claim, Sheehy claimed
that it had a right of setoff in the contract proceeds of
$534,139.48.
Pursuant to Bankruptcy Code Section 547(b), the Court held that
there is no genuine dispute that T&B was a creditor of the Debtor
at the time of the transfer. The debts were antecedent debts. The
Debtor is presumed statutorily to be insolvent within the 90 days
preceding the case, and T&B has not raised a solvency defense. The
transfer was made within 90 days of the bankruptcy filing. The
Trustee has submitted an Affidavit, attesting to the fact that the
payment enabled T&B to receive more than it would have received in
a liquidation.
The Court finds, therefore, that the Trustee has met his burden of
proof on the elements of a preference under Section 547(b), subject
to an examination of T&B's affirmative defense.
T&B argues that because the check came from Sheehy Auto Stores, the
Debtor suffered "no damages" as a result of the payment. However,
according to the Court, the Debtor had a contractual right to
payment from Sheehy, subject to any offsets by Sheehy, and had
rights as a payee on the joint check. Had Lansdowne refused to
endorse the check, T&B could not have deposited it. T&B's argument
further would mean that Lansdowne could have sued Sheehy for breach
of contract for payment of the $82,489, notwithstanding the payment
by Sheehy Auto Stores. Had Lansdowne done so, Sheehy Auto Stores
could have sued T&B for unjust enrichment. T&B's argument has no
support in the case law. If nothing else, the parties clearly
intended the joint check to represent a credit on the balance owed
by Sheehy to Lansdowne under their contract. The Court rejects this
argument as an affirmative defense.
T&B argues that the funds provided by Sheehy Auto Stores were
earmarked for payment to the Debtor. The Fourth Circuit has held
that the earmarking defense only applies where "the debtor borrows
money from one creditor and the terms of that agreement require the
debtor to use the loan proceeds to extinguish specific, designated,
existing debt." The proceeds of an earmarked loan never become
property of the Debtor's estate whether or not the funds pass
through the Debtor's hands, "so long as the proceeds are clearly
'earmarked.'" Therefore, "no preference is created because the
transfer does not diminish the value of the Debtor's estate."
There is no evidence that Sheehy Auto Stores made a loan to
Lansdowne so that Lansdowne could pay T&B. If anything, Sheehy Auto
Stores made an intercompany loan to its affiliate, Sheehy, to pay
T&B. Lansdowne simply endorsed the joint check. The fact that a
joint check was issued does not, however, standing alone, satisfy
the requirements for earmarking.
The earmarking defense is not available to T&B in the case because
there is no evidence that Sheehy Auto Stores made a loan to the
Debtor for the purposes of paying its debt to T&B.
A copy of the Court's Memorandum Decision dated Feb. 21, 2020 is
available at https://bit.ly/2QrFJ7N from Leagle.com.
H. Jason Gold, in his capacity as Trustee for Lansdowne
Construction LLC, Plaintiff, represented by Valerie P. Morrison --
val.morrison@nelsonmullins.com -- Nelson Mullins Riley &
Scarborough LLP.
T&B Electric, L.L.C., Defendant, represented by Richard G. Hall.
The bankruptcy case is In re: LANSDOWNE CONSTRUCTION, LLC, Chapter
7, Debtor, Case No. 18-11754-BFK (Bankr. E.D. Va.)
LAW OFFICES OF JONATHAN: Case Summary & 12 Unsecured Creditors
--------------------------------------------------------------
Debtor: The Law Offices of Jonathan S. Resnick, PLLC
3655A Old Court Road, Ste. 1
Baltimore, MD 21208
Business Description: The Law Offices of Jonathan S. Resnick, PLLC
is a legal services provider based in
Baltimore, Maryland.
Chapter 11 Petition Date: April 6, 2020
Court: United States Bankruptcy Court
District of Maryland
Case No.: 20-14188
Judge: Hon. Nancy V. Alquist
Debtor's Counsel: Craig M. Palik, Esq.
MCNAMEE HOSEA
6411 Ivy Lane, Ste. 200
Greenbelt, MD 20770
Tel: (301) 441-2420
Email: cpalik@mhlawyers.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Jonathan S. Resnick, managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 12 unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/GIPhOf
LEXARIA BIOSCIENCE: Incurs $997K Net Loss in Second Quarter
-----------------------------------------------------------
Lexaria Bioscience Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
and comprehensive loss of $997,492 on $107,299 of revenue for the
three months ended Feb. 29, 2020 compared to a net loss and
comprehensive loss of $1.15 million on $15,349 of revenue for the
three months ended Feb. 28, 2019.
For the six months ended Feb. 29, 2020 the Company reported a net
loss and comprehensive loss of $1.92 million on $169,381 of revenue
compared to a net loss and comprehensive loss of $1.85 million on
$37,558 of revenue for the six months ended Feb. 28, 2019.
As of Feb. 29, 2020, the Company had $1.98 million in total assets,
$63,290 in total liabilities, and $1.92 million in total
stockholders' equity.
Net cash used in operating activities was $1,366,471 for the period
compared with cash used in operating activities of $1,167,569
during the same period in 2019. This difference was largely due to
the increased costs pertaining to research and development
supporting our Technology and personnel wages.
Net cash used in investing activities was $5,711 (2019 ($503,107))
for the period to support patent filings. This includes reductions
to patent filings and capital asset purchases.
Net cash provided from financing activities was $827,020 during the
period ended Feb. 29, 2020 from a private placement and option
exercise compared to net cash provided of $3,030,489 ($2,075,619
from private placements and exercises and $1,000,000 from the
16.67% acquisition of Lexaria Nicotine by Altria) during the same
period in 2019.
The Company said, "We have accumulated a large deficit since
inception that has primarily resulted from executing our business
plan including research and development expenditures we have made
in seeking to identify and develop our intellectual property
patents for licensing and product creation. We expect to continue
to incur losses for at least the short term.
"To date, we have obtained cash and funded our operations primarily
through equity financings and limited amounts from revenue
generation while our licensees ramp up production and expansions.
We expect to continue to evaluate various funding alternatives on
an ongoing basis as needed to maintain operations, to continue our
research programs and to expand our patent portfolio. If we
determine it is advisable to raise additional funds, there is no
assurance that adequate funding will be available to us or, if
available, that such funding will be available on terms that we or
our stockholders view as favorable. Market volatility and concerns
over a global recession may have a significant impact on the
availability of funding sources and the terms at which any funding
may be available."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/d6oFKd
About Lexaria
Lexaria Bioscience Corp. -- http://www.lexariabioscience.com/-- is
a global innovator in drug delivery technology. Its patented
DehydraTECH drug delivery technology changes the way active
pharmaceutical ingredients enter the bloodstream, promoting
healthier ingestion methods, lower overall dosing and higher
effectiveness for lipophilic active molecules. DehydraTECH
increases bio-absorption; reduces time of onset; and masks unwanted
tastes for orally administered bioactive molecules including
nicotine, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs)
and other molecules. Lexaria has licensed DehydraTECH to multiple
companies for use in various oral application formats, including to
a world-leading tobacco producer for the development of smokeless,
oral-based nicotine products. Lexaria operates a licensed in-house
research laboratory and holds a robust intellectual property
portfolio with 16 patents granted and over 60 patents pending
worldwide.
Lexaria reported a net loss and comprehensive loss of $4.16 million
for the year ended Aug. 31, 2019, compared to a net loss and
comprehensive loss of $6.61 million for the year ended Aug. 31,
2018.
Davidson & Company LLP, in Vancouver, Canada, the Company's
independent accounting firm since 2016, issued a "going concern"
qualification in its report dated Nov. 13, 2019 citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
LUVU BRANDS: Receives Order for 35,000 Reusable Isolation Gowns
---------------------------------------------------------------
Luvu Brands, Inc. received an order for 35,000 reusable isolation
gowns from an Atlanta-based health system that has 2,800 doctors,
250 locations and 11 hospitals. The company also continues to
receive orders for medical face masks with the largest order
to-date being 5,000 masks for a seven-state hospital network.
Louis Friedman, the company's founder and chief executive officer
said the Company is doing what it can to produce masks and now
isolation gowns. "We continue to ramp up production of our face
masks and, at this point, we are keeping pace with consumer orders
and healthcare provider orders for medical face masks. This new
order for medical gowns is exciting for us as it allows us to
deploy our conveyor material handling sewing system and efficiently
move the gowns from one operation to the next."
Mr. Friedman commented "the safety of our employees is our highest
priority now. No one is allowed in the facility without a
temperature check and all work stations are being outfitted with
isolation barriers. We are disinfecting all work surfaces during
the day, and lunch and break periods have been added to increase
the separation of employees in the dining areas."
The consumer face masks are now offered for sale on Walmart.com and
on its AvanaComfort.com website, and the Company continues to
solicit orders from other private and governmental agencies.
About Luvu Brands
Luvu Brands, Inc. -- http://www.luvubrands.com/-- designs,
manufactures and markets a portfolio of consumer lifestyle brands
through the Company's websites, online mass / drug merchants and
specialty retail stores worldwide. Brands include: Liberator, a
brand category of iconic products for enhancing sensuality and
intimacy; Avana, medical products and inclined bed therapy
products, assistive in relieving medical conditions associated with
acid reflux, surgery recovery and chronic pain; and Jaxx, a diverse
range of casual fashion daybeds, sofas and beanbags made from
virgin and re-purposed polyurethane foam. The Company is
considered an essential business and is continuing to operate,
despite the state-wide "stay at home" order. Headquartered in
Atlanta, Georgia, the Company occupies a 140,000 square foot
vertically-integrated manufacturing facility and employs over 150
people. The Company's brand sites include: www.liberator.com,
www.jaxxliving.com, www.avanacomfort.com plus other global
e-commerce sites.
Luvu Brands reported a net loss of $157,000 for the year ended June
30, 2019, compared to net income of $147,000 for the year ended
June 30, 2018. As of Dec. 31, 2019, the Company had $4.76 million
in total assets, $6.69 million in total liabilities, and a total
stockholders' deficit of $1.93 million.
Liggett & Webb, P.A., in Boynton Beach, Florida, the Company's
auditor since 2012, issued a "going concern" qualification in its
report dated Oct. 11, 2019, citing that the Company has a working
capital deficit and an accumulated deficit. The Company has
financed its working capital requirements primarily through the
issuance of debt. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
MACK-CALI REALTY: S&P Lowers ICR to 'B+'; Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on New
Jersey-based office REIT Mack-Cali Realty Corp. (CLI) to 'B+' from
'BB-'. The outlook is negative.
S&P lowered its issue-level ratings on CLI's unsecured debt to
'BB-' from 'BB' based on its expectations for substantial recovery
(70%-90%; rounded estimate: 85%) in a hypothetical default
scenario. Its recovery rating on the notes is '2'.
"The downgrade reflects our view that the economic recession,
resulting from the COVID-19 pandemic, will likely hurt CLI's
operating performance and constrain its ability to execute on asset
sales as anticipated, deteriorating credit metrics further," S&P
said.
The outlook is negative and reflects S&P's view that CLI is highly
reliant on the execution of planned asset sales to meet debt
reduction targets, which the rating agency views as uncertain.
"We could lower the rating if CLI's liquidity position tightens
further. This could be the case if the company cannot execute
planned asset sales to address upcoming unsecured debt well ahead
of maturities that start in 2022. Also, a material deterioration in
occupancy rates or high rent concessions that further weakens
operating performance could result in a downgrade," S&P said.
"We could revise the outlook to stable if CLI is successful in
executing its planned asset sales contributing to credit metrics
improvement, or refinances upcoming debt maturities without
deteriorating coverage metrics. Additionally, we would require
stabilized performance within the office portfolio and debt to
EBITDA sustained below 13x," the rating agency said.
MAG DS CORP: S&P Assigns 'B' Issuer Credit Rating; Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to MAG DS
Corp. The outlook is stable. At the same time, S&P assigned its 'B'
issue-level and '3' recovery ratings to the company's proposed
first-lien credit facility, which consists of a $60 million
revolver and a $291 million term loan B.
"Our rating on MAG DS Corp. reflects its small size, limited range
of capabilities, some contract concentration, and high leverage,
offset somewhat by a leading position in a growing niche market. We
expect pro forma debt to EBITDA to be 5.5x-6x in 2020 (assuming a
full year of earnings from AASKI Technology Inc.), declining to 5x
in 2021 due to revenue growth from increased demand and potential
acquisitions. Although leverage may improve further as earnings
increase, we do not expect debt to EBITDA to decline below 5x for a
sustained period, due to the company's financial sponsor
ownership," S&P said.
The stable outlook on MAG reflects S&P's expectation that the
company's pro forma leverage will be 5.5x-6x in 2020 after
accounting for transaction-related fees and expenses. It expects
leverage to decrease closer to 5x thereafter due to the ramp up of
existing contracts. While it expects credit ratios to improve as
earnings increase due to growth in revenues, S&P believes the
financial sponsor will likely pursue additional debt-financed
acquisitions--and possibly, dividends--if leverage declines much
below 5x.
"We could lower the rating on MAG if debt to EBITDA rises and stays
above 7x one year after the transaction closes and we don't expect
it to improve. This could result from poor operating performance,
integration issues, or significant debt-financed acquisitions or
dividends," S&P said.
"Although unlikely due to current sponsor ownership, we could raise
the rating on MAG if debt to EBITDA decreases to and stays below
5x. This could result from ongoing operational improvements that
result in earnings and cash flows higher than we expect and the
company's owners refraining from large debt-financed dividends or
acquisitions," S&P said.
MARRIOTT INT'L: Egan-Jones Cuts Sr. Unsec. Debt Ratings to BB+
--------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Marriott International, Incorporated to BB+ from
BBB-.
Marriott International, Incorporated is an American multinational
diversified hospitality company that manages and franchises a broad
portfolio of hotels and related lodging facilities.
MEDNAX INC: S&P Cuts ICR to BB- on Economic Fallout From COVID-19
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
MEDNAX Inc. to 'BB-' from 'BB' and maintained a negative outlook.
At the same time, S&P lowered its issue-level ratings on MEDNAX's
unsecured debt to 'BB-' from 'BB'. The recovery rating remains
'4'.
The downgrade reflects S&P's expectation that leverage will be
above 5x for an extended time due to severe EBITDA pressure from
COVID-19 combined with pressure from UnitedHealth's terminations
and elevated restructuring costs.
The company announced that portions of its operations, including
anesthesia, radiology, and maternal-fetal medicine, have been
materially impaired by declines in patient volumes due to the
evolving pandemic. The company expects that closure of facilities
following federal advisories to cancel nonurgent procedures and the
prohibition of such procedures by several states will likely cause
severe declines in anesthesia and radiology while office-based
practices that specialize in maternal-fetal medicine and pediatric
subspecialties will likely see ongoing appointment cancellations.
"While we expect the company to experience pent-up demand in the
second half of the year from deferred procedures, we expect the
severity of the EBITDA decline from COVID-19, UnitedHealth contract
terminations, and restructuring costs to be such that leverage
would not return to under 5x until 2022," S&P said.
The negative outlook reflects significant downside risk to the base
case, including material performance deterioration from the
economic fallout from COVID-19 as well as more severe terminations
and contract negotiations with UnitedHealth and higher
restructuring costs, such that S&P does not expect leverage to
decline to 4x by 2022.
"We would consider lowering our ratings if MEDNAX reports negative
earnings stemming from the COVID-19 fallout and UnitedHealth cuts
are worse than projected, resulting in leverage remaining above 5x
by 2022," S&P said.
"We could affirm the rating and revise the outlook to stable if it
is likely the company will not suffer losses greater than our
current base case, such that we would expect elevated leverage of
about 5.5x in 2020 and 2021 to decline to 4x by 2022," the rating
agency said.
MEMENTO MORI: Academy Buying Mayton Inn for $8.1 Million
--------------------------------------------------------
Memento Mori, LLC, asks the U.S. Bankruptcy Court for the Eastern
District of Norther Carolina to authorize the bidding procedures in
connection with the sale of The Mayton Inn located at 301 S.
Academy Street, Cary, North Carolina to Academy Park Hospitality,
LLC for $8.1 million, subject to overbid.
The Debtor is a North Carolina limited liability company that owns
and operates two boutique hotels in Cary and Durham. Specifically,
the Debtor is the owner of the Mayton Inn.
On June 28, 2019, the Court entered an Order Confirming Plan. As
part of the confirmed plan, the Debtor was authorized and directed
to market and sell the Mayton Inn.
The Debtor also owns related real property located at 106 and 110
East Park Street, Cary, North Carolina ("Real Property"). In
addition to the Real Property, the Debtor owns the personal
property contents of the Mayton Inn ("Personal Property").
On May 7, 2019, the Court entered a Consent Order Allowing Debtor's
Application for Approval of Employment and Compensation of Real
Estate Broker. The order allowed the Debtor to employ Moss Withers
and Lee & Associates Raleigh Durham, LLC as the Debtor's broker for
the Mayton Inn. Mr. Wither's employment was extended to Feb. 29,
2020.
With the assistance of Mr. Withers, the Debtor has had productive
discussions with several potential buyers during the marketing
period, and the Debtor has ultimately determined that the highest
and best offer received was a non-contingent offer submitted by
Academy Park Hospitality, LLC in the amount of $8.1 million.
Following negotiations, the Debtor and Academy executed a Purchase
and Sale Agreement for the sale of the Property, which is expressly
subject to Bankruptcy Court approval in all respects.
The salient terms of the APA are:
a. Purchase Price: $8.1 million
b. Earnest Money Deposit: $100,000
c. Overbid Period: 30 days following approval of Academy as
Stalking Horse
d. Closing: will occur within 30 days after the order
approving the sale of the Property to Academy
e. Due Diligence: 45 days from the Effective Date
f. Closing Costs: Paid by the Debtor (i) prorated ad valorem
taxes for current year; (ii) unpaid ad valorem taxes for prior
years
g. Closing Costs: Paid by the Purchaser (i) recording fees;
(iii) prorated ad valorem taxes for current year
h. Break-Up Fee: 3% of the approved sales price of the highest
bidder
i. Timing of Payment of Break-Up Fee: Third business day after
closing to bidder other than Academy
Each party is responsible for its own attorneys' and other
professionals' fees incurred in connection with the Purchase
Contract, the Bankruptcy Case and the transactions or other matters
contemplated hereby or thereby, except as provided in the
Confirmation Order.
Based upon the amount of the Purchase Price set forth in the
Purchase Contract, the Debtor asks authority to pay the commission
to Mr. Withers from the sales proceeds at closing pursuant to the
Consent Order Allowing Debtor's Application for Approval of
Employment and Compensation of Real Estate Broker and without
separate application to the Court. Based upon the purchase price of
$8.1 million, the anticipated commission would be the sum of
$324,000, representing 4% of the purchase price.
The Debtor, through the Motion, now wishes to establish a procedure
for the orderly sale of the Property to further maximize the
recovery for the estate. Pursuant to the Motion, the Debtor wishes
to allow for the sale of the Property on the terms set forth,
according to the Bidding Procedures. The Debtor believes the
Bidding Procedures allow maximum flexibility when evaluating
potential competing offers or bids for the Property, thereby
providing the greatest potential to further maximize value to the
estate.
The Debtor asks that the Court require interested bidders to
deliver the following items to the Debtor's counsel before the
expiration of the Overbid Period to be deemed "Qualified Bidders"
and participate in the auction of the Property:
a. Overbid Purchase Agreement;
b. Earnest money deposit of $100,000 by wire transfer or
official bank funds as required under the Overbid Purchase
Agreement; and
c. Financials and/or a loan commitment demonstrating the
interested bidder's ability to close on the purchase of the
Property with immediately available funds.
In the event that a Qualified Bidder is the winning bid and fails
to close on the sale of the Property, the next highest bidder will
be required to honor its next highest bid and close on the sale,
and so on until a closing takes place.
In addition, the Debtor asks that the Court establishes a Final
Hearing Date whereby the Property will be auctioned if one or more
Qualified Bidders submit a qualifying overbid and that, following
the auction, the Court conducts a hearing to approve the proposed
sale and enter a final sale Order.
Lastly, based upon the amount of the Purchase Price set forth in
the Purchase Contract, the Debtor respectfully requests
authorization to pay the commission of Mr. Withers pursuant to the
Consent Order Allowing Debtor's Application for Approval of
Employment and Compensation of Real Estate Broker from the sales
proceeds at closing without separate application to the Court.
The Debtor asks the Court to approve overbid protection for Academy
in the amount equal to 5% of the proposed Purchase Price, resulting
in a minimum overbid from other potential bidders in an amount of
at least $8,424,000.
The Closing will occur in accordance with the terms of either the
Purchase and Sale Contract executed by the stalking horse or the
Overbid Purchase Agreement, depending on whether the stalking horse
is the Successful Bidder, and the Sale Order. Unless Seller agrees
otherwise, the Closing will take place no later than 30 days after
entry by the Bankruptcy Court of a non-appealable Order approving
the sale of the Property.
A copy of Agreement and the Bidding Procedures is available at
https://tinyurl.com/vswfwb9 from PacerMonitor.com free of charge.
About Memento Mori
Based in Cary, North Carolina, Memento Mori, LLC, d/b/a Tonic
Remedies, f/d/b/a Mayton Landlord, LLC, d/b/a The Verandah, f/d/b/a
King's Daughter Landlord, LLC, dba The King's Daughters Inn,
f/d/b/a Kings Daughter Tenant, LLC, fdba DMC Historic Restoration,
LLC, d/b/a Rhea Hospitality, d/b/a The Mayton Inn, filed a
voluntary Chapter 11 petition (Bankr. E.D. N.C. Case No. 18-04661)
on Sept. 20, 2018. In the petition signed by Colin Crossman,
manager, the Debtor disclosed total assets of $24,198,540 and total
liabilities of $20,809,509. The case is assigned to Hon. David M.
Warren.
MERITOR INC: Egan-Jones Lowers Sr. Unsec. Debt Ratings to B+
------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Meritor, Incorporated to B+ from BB+.
Meritor, Incorporated is an American corporation headquartered in
Troy, Michigan, which manufactures automobile components for
military suppliers, trucks, and trailers. Meritor is a Fortune 500
company. In 1997, Rockwell International spun off its automotive
business as Meritor.
MESA MARKETPLACE: SMS Cash Collateral Stipulation Approved
----------------------------------------------------------
Judge Paul Sala of the U.S. Bankruptcy Court for the District of
Arizona issued an order approving the Stipulation authorizing Mesa
Marketplace Center, LLC's interim use of cash collateral.
Mesa and SMS Financial Strategic Investments, LLC have entered into
a Stipulation to resolve SMS' previous objection. Pursuant to the
Stipulation, SMS consents to Mesa's use of cash collateral to
operate its business pursuant to the budget.
As shown in the stipulated budget, Mesa is allowed to use up to
$20,558 cash collateral. In addition to the budgeted expenses, the
Stipulation provides that Mesa will pay SMS a monthly adequate
protection payment of $17,766.
About Mesa Marketplace Center
Mesa Marketplace Center, LLC is a single asset real estate debtor
(as defined in 11 U.S.C. Section 101(51B)).
Mesa Marketplace Center sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 20-01335) on Feb. 10,
2020. The Debtor previously sought bankruptcy protection (Bankr.
D. Ariz. Case No. 16-10094) on Aug. 31, 2016.
In the petition signed by Kenny Eng, member, the Debtor was
estimated to have $1 million to $10 million in assets and
liabilities.
James Portman Webster, Esq., serves as the Debtor's legal counsel.
MILLMAC CORP: Sale of Bartow Business Equipment Approved
--------------------------------------------------------
Judge Michael G. Williamson of the U.S. Bankruptcy Court for the
Middle District of Florida authorized Millmac Corp.' sale of
business equipment located at its 3390 US Highway 17 N., Bartow,
Florida, facility through an absolute auction free and clear of all
liens, claims, and encumbrances.
The Order amends and supersedes the Initial Order.
Dejong & Lebet, Inc.'s objection is overruled; provided, however,
the Debtor will exclude the following items from the Auction: (i)
Panel Saw – Milwaukee Commercial (purchased 2019); (ii) three
Workbenches (purchased 2019); and (iii) two Rolling Scaffold
(Yellow) (purchased 2019).
The Chase Objection is overruled based on the agreement reached
between the Debtor and Chase.
Title to the Auctioned Assets will be transferred in "As Is"
condition, free and clear any and all liens, claims, and
encumbrances of any nature whatsoever, including any liens in favor
of Chase. The net proceeds received from the sale of the Auction
Assets, after payment of the approved fee of the Auctioneer, will
be disbursed to the Debtor.
Chase's liens will attach to the Net Proceeds, which will be
considered cash collateral of Chase. The Net Proceeds will be held
by the Debtor in escrow. The Debtor will be authorized to use the
Net Proceeds only to make the monthly adequate protection payments
payable by the Debtor to Chase pursuant to the agreed terms on the
Debtor's use of cash collateral, which will be set forth in a
separate order.
Notwithstanding the foregoing, the Debtor will be entitled to make
a written request to Chase to use of any portion of the Net
Proceeds in its ordinary course of business. It will be authorized
to grant Chase a replacement lien in cash collateral as part of
such request. The Debtor will not be authorized to use the Net
Proceeds in the ordinary course of its business unless it receives
the prior written consent of Chase.
A hearing on the Motion was held on Feb. 5, 2020 at 9:30 a.m.
About Millmac Corporation
Millmac Corporation is a provider of specialized marine labor, ship
repair and dredging for industrial and residential uses.
Based in Bartow, Fla., Millmac Corporation filed for Chapter 11
bankruptcy protection (Bankr. M.D. Fla. Case No. 19-11877) on Dec.
18, 2019. In the petition signed by Michael J. Miller, president,
the Debtor disclosed $1,308,639 in assets and $1,619,039 in
liabilities. Susan Heath Sharp, Esq., at Stichter, Riedel, Blain &
Postler, P.A., is the Debtor's legal counsel.
MINNESOTA SCHOOL: Proposes Two-Structure Plan
---------------------------------------------
On Nov. 20, 2019, Minnesota School of Business, Inc., and Globe
University, Inc., filed a reorganization plan that contemplates two
possible alternative plan structures (the "Plan Toggle"):
(1) reorganization of the Debtors and payment in full of Allowed
General Unsecured Claims from cash on hand and the proceeds of exit
financing from two sources: (i) loans from a commercial lender,
which will be secured by mortgages on property of MSB's
subsidiaries and guaranteed by the Debtors' principal shareholder;
and (ii) loans from the Debtors’ principal shareholder, which
will be secured by junior mortgages on property of MSB's
subsidiaries (the "Reorganization Option"); or
(2) if the Allowed General Unsecured Claims exceed $20,000,000
as of the Confirmation Date, the transfer of all property of the
estate to a settlement fund (the "Liquidation Option"). The
applicable Plan Toggle option will be determined in connection with
plan confirmation and will be specified in the Confirmation Order.
As of the Filing Date, the Debtors had cash on hand of
approximately $3.2 million. The Debtors project that the cash on
hand will be approximately the same as of the Confirmation Date.
In addition, MSB owns six subsidiaries that own and operate
commercial real property. Prior to the shutdown of the school
operations, the commercial properties mainly housed the school
operations, but are now leased for the most part to unrelated
third-party tenants and in some cases to non-debtor affiliates.
The Debtors estimate that the subsidiaries have a net equity value
(on a liquidation basis and net of secured debt to commercial
banks) of $29,680,000.
The Plan proposes to treat claims as follows:
* Class 1 Convenience Class of Unsecured Claims of $500 or Less.
Under the reorganization option, the Debtor will pay allowed
claims in full. In liquidation option, there will be an immediate
payment of lesser of $500 and allowed claim.
* Class 2 Lake Area Bank. Under the reorganization option, the
Debtor will reaffirm obligations under lake area loan agreement.
In a liquidation option, the claims will receive payment from
proceeds of collateral; treated in class 4 for any deficiency.
* Class 3 Home Federal Savings. Under the reorganization option,
Debtor will reaffirm obligations under home federal loan agreement.
In a liquidation option, the claims will receive payment from
proceeds of collateral; treated in class 4 for any deficiency.
* Class 4 General Unsecured Claims. Under a reorganization
option, the Debtor will pay allowed claims in full. In a
liquidation option, the claims will receive a pro-rata share of
liquidation fund after payment of administrative expenses claims
and priority claims.
* Class 5 Claims of Insiders. Under reorganization option, the
claims will be paid according to existing terms (but subordinated
to class 4 claims). In a liquidation option, the claims will be
treated in class 4.
* Class 7 Equity Interests in MSB. Under the reorganization
option, MSW will retain retain equity interests. In liquidation
option, MSW will receive a pro-rata share of liquidation fund after
payments of all allowed Claims.
Class 8 - Equity Interests in Globe. Under reorganization option,
equity interests cancelled. In liquidation option, equity interests
cancelled.
A full-text copy of the Disclosure Statement dated March 18, 2020,
is available at https://tinyurl.com/uoxyj3h from PacerMonitor.com
at no charge.
Attorneys for the Debtors:
Clinton E. Cutler
James C. Brand
Samuel M. Andre
FREDRIKSON & BYRON, P.A.
200 South Sixth Street, Suite 4000
Minneapolis, MN 55402-1425
Tel: (612) 492-7000
About Minnesota School of Business
Minnesota School of Business, Inc., provides specialized training
programs in business, medical, legal, information technology,
massage, vet tech and drafting/design fields.
Minnesota School of Business, Inc., based in Woodbury, MN, filed a
Chapter 11 petition (Bankr. D. Minn. Case No. 19-33629) on Nov. 20,
2019. In the petition signed by Terry L. Myhre,
chairman/president, the Debtor was estimated to have $10 million to
$50 million in both assets and liabilities. The Hon. Kathleen H.
Sanberg is the presiding judge. Clinton E. Cutler, Esq., at
Fredrikson & Byron, P.A., serves as bankruptcy counsel to the
Debtor.
MORRIS SCHNEIDER: Trustee Selling Remnant Assets to Oak for $15K
----------------------------------------------------------------
Lynn L. Tavenner, the Liquidating Trustee for the Liquidating Trust
of Morris Schneider Wittstadt Va., PLLC, asks the U.S. Bankruptcy
Court for the Eastern District of Virginia to authorize the sale of
all remnant assets of Trust to Oak Point Partners, LLC, for
$15,000, subject to overbid.
Since being appointed, the Trustee has administered the Trust for
the benefit of its beneficiaries in accordance with the Trustee's
power and duties. The Trustee is now in the process of winding
down the administration of these cases. To that end, she is
engaged in efforts to ensure that the maximum value of the Trust's
remaining assets is realized, which efforts include pursuing the
sale of any remaining assets.
The Trustee has determined that there might exist property of the
Trust, consisting of known or unknown assets or claims, which have
not been previously sold, assigned, or transferred. Potential
unknown assets might include unscheduled refunds, overpayments,
deposits, judgments, claims, or other payment rights that would
accrue in the future.
The Trustee has conducted due diligence and remains unaware of the
existence of any Remnant Assets, and certainly none that could
return value to the Trust greater than the Purchase Price.
Accordingly, she has determined that the cost of pursuing the
Remnant Assets will likely exceed the benefit that the Trust would
possibly receive on account of the Remnant Assets.
By the Motion, the Trustee asks the Court to enter an Order(a)
authorizing the Trustee to sell the Remnant Assets free and clear
of all liens, claims, interests, and encumbrances; and (b)
approving the terms of the Purchase Agreement.
The Purchase Agreement generally provides for a purchase price of
$15,000 for all Remnant Assets to be paid by Oak Point to the
Trustee for the benefit of the Trust. In accordance with the
Purchase Agreement, the Remnant Assets do not include (i) cash held
at the time of the Purchase Agreement in the Trustee's fiduciary
bank account for the Trust.
Contemporaneously with the Motion, the Trustee has filed a notice
of the Motion, which establishes a deadline by which objections or
responses to the Motion must be filed with the Court.
While the Trustee is prepared to consummate the sale of the Remnant
Assets to Oak Point pursuant to the terms set forth and in the
Purchase Agreement, in the event a party other than Oak Point
wishes to purchase the Remnant Assets, the Trustee asks that the
Court approves the following overbid procedures:
a. Each Competing Bidder who wants to participate in the
overbid process must notify the Trustee of their intention to do so
in accordance with the Notice on or before the Response Deadline;
b. the first overbid for the Remnant Assets by a Competing
Bidder must be at least $5,000 more than the Purchase Price, or a
total of $20,000;
c. each Competing Bidder must submit a Cashier's Check to the
Trustee in the amount of such Competing Bidder's first overbid at
the time such overbid is made;
d. each subsequent overbid for the Remnant Assets must be in
additional increments of $1,000, unless otherwise agreed by the
parties or directed by the Court;
e. the bidder must purchase the Remnant Assets under the same
terms and conditions set forth in the Purchase Agreement, other
than the purchase price; and
f. in the event of an overbid that meets the foregoing
conditions, the Trustee will schedule an auction of the Remnant
Assets in advance of the hearing date and will request that the
Court approve the winning bidder at the auction as the purchaser at
the hearing on the Motion.
The Trustee believes that the sale of the Remnant Assets in
accordance with the terms of the Purchase Agreement, and as
provided in the Motion, serves the best interests of the Trust and
beneficiaries, as the sale will allow the Trustee to realize
additional funds for the benefit of the Trust. Accordingly, the
sale to Oak Point should be approved as requested.
To successfully implement the Purchase Agreement, the Trustee also
asks a waiver of the 14-day stay under Bankruptcy Rule 6004(h).
A copy of the Agreement is available at https://tinyurl.com/w6z8kjn
from PacerMonitor.com free of charge.
About Morris | Schneider | Wittstadt
Morris | Schneider | Wittstadt Va., PLLC, and affiliates filed for
Chapter 11 Protection (Bankr. E.D. Va. Case Nos. 15-33370 to
15-33375 and 15-12323) on July 5, 2015. The petition was signed by
Mark H. Wittstadt, Esquire, managing partner.
Jennifer McLain McLemore, Esq., at Christian & Barton, LLP,
represents the Debtors in their restructuring effort. The Debtor
was estimated to have assets at $1 million to $10 million and debts
at $10 million to $50 million. Three of the Debtors were each
estimated to have assets and debt at $0 to $50,000.
The Georgia-based law firm sued its former managing partner in 2014
for allegedly embezzling $30 million from the firm's accounts and
the accounts of the firm's subsidiary, LandCastle Title.
MOTORS LIQUIDATION: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Motors Liquidation Company to BB+ from BBB-.
Motors Liquidation Company, formerly General Motors Corporation,
was the company left to settle past liability claims from Chapter
11 reorganization of American car manufacturer General Motors.
MURPHY OIL: S&P Lowers ICR to 'BB' on Difficult Market Conditions
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating and unsecured
debt ratings on U.S.-based exploration and production company
Murphy Oil Corp. to 'BB' from 'BB+'.
S&P estimates credit metrics will be weak for the rating over the
next two years. Based on its revised oil and natural gas price
deck assumptions, S&P expects Murphy Oil Corp.'s funds from
operations (FFO) to debt to fall to the 20%-25% range in 2020
through 2021 from the high-30% range in 2019. Moreover, the company
has modest hedging at approximately 32% of its crude oil and
natural gas production limiting cash flow protection.
"The negative outlook incorporates a deteriorated commodity price
backdrop, as well as a weaker capital markets environment where the
company could increasingly be challenged to refinance its near-term
maturities. We project FFO to approach 20%, with a material
increase in debt to EBITDA over the next two years," S&P said.
"We could lower the rating if commodity prices fall below
expectations, with FFO to debt falling well below 20% while debt to
EBITDA rises above 4.0x. Alternatively, we could lower the rating
should Murphy fail to address its upcoming 2022 debt maturities in
a timely fashion," the rating agency said.
Upside scenario
S&P could revise the outlook to stable should Murphy's credit
ratios improve such that both FFO to debt and debt to EBITDA remain
in the mid- to high-20% range and well below 4.0x, respectively.
This would most likely occur if commodity prices rose above S&P's
current expectations. Alternatively, the rating agency could revise
the outlook to stable if the company proactively addresses its 2022
maturities by reducing discretionary spending or refinancing notes
before becoming current.
NUVISTA ENERGY: S&P Lowers Long-Term ICR to 'CCC+'; Outlook Stable
------------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
NuVista Energy Ltd. to 'CCC+' from 'B' and lowered its issue-level
rating on the company's C$220 million unsecured notes due March
2023 to 'B-' from 'B+'. The '2' recovery rating is unchanged,
reflecting S&P's expectation of substantial recovery in a default
scenario.
The downgrade reflects the company's weaker-than-anticipated
financial measures in the current tough industry environment, and
the downward revision of S&P's oil and gas price assumptions. S&P
Global Ratings drastically lowered its oil price assumptions
following dampened demand due to the spread of coronavirus and the
resulting price war between Saudi Arabia and Russia.
"In particular, we expect West Texas Intermediate (WTI) to average
about $30 per barrel in 2020, improving to $45 per barrel in 2021.
Natural gas prices have also remained pressured, largely due to the
oversupply conditions in North America. At these prices, we expect
NuVista's cash flows will be meaningfully weaker relative to
previous expectations. Specifically, we expect the company's funds
from operations (FFO)-to-debt ratio will average 25% in 2020 and
2021, down from our previous expectation of 50%," S&P said.
The stable outlook reflects S&P's view that NuVista will have
sufficient availability under the credit facility (even after a
potential size reduction) to absorb unanticipated negative events
over the next 12 months without facing a liquidity or payment
crisis.
"We could lower the ratings within the next 12 months if the
company's liquidity position deteriorated at an accelerated pace,
as a result of larger-than-expected cash flow deficits or a
substantial reduction in its revolving credit facility size. In our
opinion, these events would compromise NuVista's ability to fund
its capital spending and financing obligations during the next 12
months," S&P said.
"We could raise the rating if we no longer expected NuVista to
outspend cash flow and its liquidity improved. This would likely
occur if hydrocarbon prices increased and the company achieved a
favorable resolution on its borrowing base, which would provide
sufficient liquidity cushion," the rating agency said.
O'LOUGHLIN LTD: May 5 Hearing on Disclosure Statement
-----------------------------------------------------
Judge John P. Gustafson has ordered that the hearing to consider
the approval of the disclosure statement filed by O'Loughlin Ltd.,
the Debtor in this case, will be held at Courtroom No. 1, Room 119,
United States Courthouse, 1716 Spielbusch Avenue, Toledo, Ohio, on
May 5, 2020 at 10:00 a.m.
April 27, 2020, is fixed as the last day for filing with the court
and serving written objections to the disclosure statement.
About O'Loughlin Ltd.
O'Loughlin Ltd. is a privately held company whose principal assets
are located at 2130 Collinway Ottawa Hills, Ohio.
O'Loughlin sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ohio Case No. 19-31036) on April 8, 2019. At the
time of the filing, the Debtor was estimated to have assets of less
than $1 million and liabilities of $1 million to $10 million. The
case is assigned to Judge John P. Gustafson. Diller and Rice, LLC,
is the Debtor's legal counsel.
OMNIQ CORP: To Host Conference Call to Provide Year End Update
--------------------------------------------------------------
OMNIQ Corp. will host a conference call and webcast on Tuesday,
April 7, 2020 at 11:00 a.m. Eastern Time to provide an update on
the year ended Dec. 31, 2019.
To access the live webcast, go to the Company's website at
www.questsolution.com, and click on the Investor Relations tab.
To participate in the call by phone, dial (877) 407-9210
approximately five minutes prior to the scheduled start time.
International callers please dial (201) 689-8049.
A replay of the teleconference will be available until April 21,
2020 and may be accessed by dialing (877) 481-4010. International
callers may dial (919) 882-2331. Callers should use conference ID:
34018.
About OMNIQ, Corp.
Headquartered in South, Salt Lake City, UT, OMNIQ Corp. (OMQS) --
http://www.omniq.com/-- provides computerized and machine vision
image processing solutions that use patented and proprietary AI
technology to deliver data collection, real time surveillance and
monitoring for supply chain management, homeland security, public
safety, traffic & parking management and access control
applications. The technology and services provided by the Company
help clients move people, assets and data safely and securely
through airports, warehouses, schools, national borders, and many
other applications and environments.
Omniq reported a net loss attributable to common stockholders of
$5.31 million for the year ended Dec. 31, 2019, compared to a net
loss attributable to common stockholders of $5.41 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$34.45 million in total assets, $32.64 million in total
liabilities, and $1.81 million in total stockholders' equity.
Haynie & Company, in Salt Lake City, Utah, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated March 30, 2020 citing that the Company has a deficit in
stockholders' equity, and has sustained recurring losses from
operations. This raises substantial doubt about the Company's
ability to continue as a going concern.
ORYX MIDSTREAM: S&P Cuts ICR to 'B-' on Revised Price Assumptions
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Oryx
Midstream Holdings LLC to 'B-' from 'B' based on its expectation of
lower adjusted EBITDA.
At the same time, S&P lowered its issue-level rating to 'B-' from
'B'. The recovery rating is unchanged at '3', indicating the rating
agency's expectation for meaningful (50%-70%; rounded estimate:
55%) recovery in the event of default.
"The downgrade follows the downward revision of our commodity price
assumptions, which we expect will cause Oryx to have lower adjusted
EBITDA and volume flow levels than we previously forecast. We
expect the company will face a more challenging marketplace for the
remainder of 2020 and 2021, as producers reevaluate their
development timelines and production forecasts. We forecast that
Oryx will sustain an adjusted debt-to-EBITDA ratio of about 7.0x
over the next 12 months," S&P said.
The negative outlook reflects S&P's expectation that Oryx will
realize lower throughput volumes than the rating agency previously
forecast and leverage metrics will remain elevated over the next 12
months, with debt to EBITDA of about 7.0x.
"We could lower the rating if the company's capital structure
becomes unsustainable or if its liquidity deteriorates. This could
occur due to continued underperformance on its throughput volumes
or if it sustained higher-than-expected operating expenses and
capital expenditures (capex) without additional support from its
sponsors," S&P said.
"We could revise the outlook to stable if the company maintains a
debt-to-EBITDA ratio of less than 6.5x while increasing its
throughput volumes and consistently sweeping cash to pay down its
outstanding term loan balance," the rating agency said.
PARAMOUNT RESOURCES: S&P Downgrades ICR to 'CCC+'; Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Paramount
Resources Ltd. three notches to 'CCC+' from 'B+'.
"The three-notch downgrade reflects the drastic decline in our oil
price assumptions. Our oil price assumptions have significantly
declined, including West Texas Intermediate (WTI) at $25 per barrel
for the rest of 2020 and $45 per barrel for 2021. The drastic cut
reflects the price war between Saudi Arabia and Russia as well as a
likely massive drop in global demand due to the spread of the
coronavirus. Natural gas prices have also remained pressured
largely due to the oversupply conditions in North America. Despite
the company having some hedges in place, we estimate its cash flows
will meaningfully deteriorate in 2020, before recovering in line
with our price assumptions in 2021. Specifically, we expect
adjusted FFO-to-debt of about 5% in 2020, before improving to 15%
in 2021. At these levels, we view the company's capital structure
as unsustainable and increasingly reliant on its credit facility,"
S&P said.
The stable outlook reflects S&P's view that Paramount will have
sufficient availability under the credit facility to absorb
unanticipated negative events over the next 12 months without
facing a liquidity or payment crisis.
"We could lower the ratings within the next 12 months if the
company's liquidity position deteriorated at an accelerated pace,
as a result of larger-than-expected cash flow deficits or reduction
in its revolving credit facility size. In our opinion, this would
compromise Paramount's ability to fund the company's capital
spending and financial obligations during the next 12 months," S&P
said.
"We could consider an upgrade if we no longer view Paramount's
capital structure as unsustainable. This could occur if the company
limited outspending its cash flows and oil and gas prices improved
beyond our current expectations," the rating agency said.
PEARL RESOURCES: Ch. 11 Bankruptcy Filing Abates Appeal vs Transcon
-------------------------------------------------------------------
The Texas Court of Appeals removed and abated the appellate case
captioned PEARL RESOURCES OPERATION CO. LLC, AND PEARL RESOURCES,
LLC, Appellants, v. TRANSCON CAPITAL, LLC, Appellee, No.
08-19-00288-CV (Tex. App.) due to Appellants' notice of chapter 11
bankruptcy. Any further action in this appeal is automatically
stayed.
The appeal will be reinstated upon proper motion showing that the
stay has been lifted and specifying the action required by the
Court.
A copy of the Court's Order dated March 6, 2020 is available at
https://bit.ly/2UolubX from Leagle.com.
Joe W. Beverly , for Pearl Resources Operation Co. LLC, and Pearl
Resources, LLC, Appellant.
Ryan Bigbee -- Ryan@BigbeeCurtislaw.com -- Andrew Curtis --
Andrew@BigbeeCurtislaw.com -- for Transcon Capital, LLC.,
Appellee.
Pearl Resources Operating Co, LLC and its affiliate Pearl Resources
LLC filed for chapter 11 bankruptcy protection (Bankr. S.D. Tex.
Case Nos. 20-31585-86) on March 3, 2020. Pearl Resources is a
privately held company in the oil and gas extraction industry. Both
company’s estimated assets and liabilities are $10 million to $50
million respectively. The petitions were signed by Myra Dria,
manager and sole member of of Pearl Resources Operating and manager
of Pearl Resources LLC.
PLATINUM GROUP: Reports Impala's Waterberg Amended Purchase Deal
----------------------------------------------------------------
Platinum Group Metals Ltd. reports that shareholders of Waterberg
JV Resources Proprietary Limited have executed a formal Amended
Purchase and Development Option agreement with Impala Platinum
Holdings Ltd. ("Implats").
In consideration for the amendment, announced Feb. 27, 2020,
Implats is funding 100% of a new implementation budget and work
program effective Feb. 1, 2020. The Work Program, as approved by
Waterberg JV Co., is aimed at increasing confidence in specific
areas of the Waterberg DFS while awaiting the expected grant of a
Mining Right and Environmental Authorization and is estimated to
cost approximately Rand 55 million. The Work Program is being
carried out remotely and in compliance with current South African
health related stay at home restrictions.
The termination date of Implats' Purchase and Development Option
was amended from the original date of April 17, 2020 to 90 calendar
days following receipt of an executed Mining Right for the
Waterberg Project. All other terms of the Purchase and Development
Option remain unchanged. Amounts spent by Implats for the Work
Program will be offset against Implats' future development funding
commitment should it elect to exercise the Purchase and Development
Option. The previous guidance for the grant of the Mining Right in
Q2 2020 may be delayed by the current South African stay at home
restrictions.
Platinum Group will continue to be the Manager of the Waterberg
Project, as directed by the technical committee of Waterberg JV Co.
A majority of the Company's South African personnel are engaged to
complete the Work Program, which is being directed by Implats'
technical personnel.
Further detail on the Purchase and Development Option
On Nov. 6, 2017, Implats purchased 15% of the Waterberg JV Co. for
US$30 million. Implats was also granted a Purchase and Development
Option to increase its stake to 50.01% through additional share
purchases from Japan Oil, Gas and Metals National Corporation
("JOGMEC") for an amount of US$34.8 million and earn-in
arrangements for US$130 million paid to Waterberg JV Co. to fund
development work, as well as a right of first refusal to smelt and
refine Waterberg concentrate.
About Platinum Group Metals
Headquartered in British Columbia, Canada, Platinum Group Metals
Ltd. -- http://www.platinumgroupmetals.net/-- is a platinum and
palladium focused exploration, development and operating company
conducting work primarily on mineral properties it has staked or
acquired by way of option agreements or applications in the
Republic of South Africa and in Canada. The Company's sole
material mineral property is the Waterberg Project. The Company
continues to evaluate exploration opportunities both on currently
owned properties and on new prospects.
PricewaterhouseCoopers LLP, in Vancouver, Canada, the Company's
auditor since 2007, issued a "going concern" qualification in its
report dated Nov. 25, 2019, citing that the Company has suffered
recurring losses from operations and has significant amounts of
debt payable without any current source of operating income. The
Company also has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern.
Platinum Group reported a net loss of $16.77 million for the year
ended Aug. 31, 2019, compared to a net loss of $41.02 million for
the year ended Aug. 31, 2018. As of Aug. 31, 2019, Platinum Group
had $43.66 million in total assets, $44.82 million in total
liabilities, and a total shareholders' deficit of $1.16 million.
PLUS THERAPEUTICS: Incurs $10.9 Million Net Loss in 2019
--------------------------------------------------------
Plus Therapeutics, Inc., filed with the Securities and Exchange
Commission its Annual Report on Form 10-K reporting a net loss of
$10.89 million on $7 million of development revenues for the year
ended Dec. 31, 2019, compared to a net loss of $12.63 million on
$2.98 million of development revenues for the year ended Dec. 31,
2018.
Fiscal 2019 fourth quarter net income from continuing operations
was $0.92 million, or $0.12 per share. Total net income for the
quarter after factoring in discontinued operations was $0.88
million, or $0.11 per share. Net cash provided by operating
activities for Q4 was approximately $1.03 million. Plus ended Q4
with approximately $17.6 million of cash and cash equivalents.
For the year ended Dec. 31, 2019, net loss from continuing
operations was ($3.3) million, or ($2.77) per share. Total net
loss for the year after factoring in discontinued operations was
($10.9) million, or ($8.27) per share. Net cash used in operating
activities for year 2019 was approximately $5.9 million. Plus
ended 2019 with approximately $17.6 million of cash and cash
equivalents.
"Last year was a remarkable year of transformation for the
Company," said Dr. Marc Hedrick, president and chief executive
officer of Plus Therapeutics. "The combination of key
transactions, pipeline reformation, corporate rebranding and
geographic relocation have combined to reposition the new company
to achieve long-term viability and growth by bringing extraordinary
new drugs to market."
As of Dec. 31, 2019, the Company had $23.23 million in total
assets, $22.07 million in total liabilities, and $1.16 million in
total stockholders' equity.
BDO USA, LLP, in San Diego, California, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
March 30, 2020 citing that the Company has suffered recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going
concern.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/xqvlhB
About Plus Therapeutics
Headquartered in Austin, Texas, Plus Therapeutics, Inc. --
http://www.plustherapeutics.com/-- is a clinical-stage
pharmaceutical company focused on the discovery, development, and
manufacturing scale up of complex and innovative treatments for
patients battling cancer and other life-threatening diseases.
PLUS THERAPEUTICS: Licenses Novel Oncology Platform
---------------------------------------------------
Plus Therapeutics, Inc. has entered into a definitive agreement to
license multiple rare cancer drug product candidates from private
Texas-based radiotherapeutic company NanoTx Therapeutics, Inc.
The transaction terms include an upfront payment of $400,000 in
cash and $300,000 in Plus voting stock. Furthermore, the company
may pay up to $136.5 million in development and sales milestone
payments and a tiered single-digit royalty on U.S. and European
sales. The transaction, subject to customary closing conditions,
is expected to close in the second quarter of fiscal 2020.
The licensed drug portfolio is anchored around
nanoliposome-encapsulated radionuclides for several cancer targets.
The lead drug asset is a chelated Rhenium NanoLiposome (RNLTM),
initially being developed for recurrent glioblastoma. RNL is
infused directly into the brain tumor via precision brain mapping
and convection enhanced delivery technology to deliver very high
therapeutic doses of radiation to patients whose cancer has
recurred following initial surgical resection and treatment with
chemotherapy and radiation.
The licensed radiolabeled nanoliposome platform was developed by a
multi-institutional consortium based in Texas at the Mays Cancer
Center / UT Health San Antonio MD Anderson Cancer Center led by Dr.
Andrew Brenner, MD, PhD, who is the Kolitz Chair in Neuro-Oncology
Research and Co-Leader of the Experimental and Developmental
Therapeutics Program. The licensed technology was previously
funded by both the National Institutes of Health/National Cancer
Institute (NIH/NCI) and the Cancer Prevention and Research
Institute of Texas (CPRIT). There is an active $3M award from
NIH/NCI which will financially support the continued clinical
development of RNL for recurrent glioblastoma.
"Dr. Brenner and his team have developed a very unique and
promising novel cancer drug portfolio to address a significant
number of unmet needs," said Dr. Marc Hedrick, president and chief
executive officer of Plus Therapeutics. "Nanoliposome-encapsulated
radionuclides are a natural extension of our pipeline and will
become an increasing focus of our activities."
"We are pleased to partner with Plus Therapeutics, a company with
significant expertise in nanoparticle development," said Dr.
Brenner. "The clinical needs we are targeting are great and our
lead drug for recurrent glioblastoma has shown tremendous promise
in both safety and efficacy signals thus far, and we are excited
about our partnership with Plus Therapeutics as we advance this and
related programs to the next steps."
Plus Therapeutics is licensing multiple BMEDA-chelated rhenium
nanoliposome product candidates as part of this transaction The
lead drug asset is being developed for recurrent glioblastoma, a
rare, incurable, and fatal disease. A Phase 1, dose-finding trial
is ongoing at the Mays Cancer Center where 13 patients have been
enrolled to-date. Thus far, no serious adverse events have
occurred, and further dose escalation is planned. A similar
product candidate is in preclinical development for several
additional indications including breast cancer, head and neck
cancer, leptomeningeal carcinomatosis, liver cancer, and ovarian
cancers.
Additionally, Plus Therapeutics is licensing a second preclinical
product candidate, a co-encapsulated doxorubicin and BMEDA-chelated
Rhenium NanoLiposome (DRNLTM) for treating squamous cell carcinoma
of the head and neck. These licensed assets are supported by 19
preclinical publications.
"With RNL, we aim to precisely deliver a safe and effective dose of
radiation directly to the tumor, bypassing the blood brain barrier,
that is approximately 30 times greater than that currently being
given to these patients using external beam radiation," said Dr.
Gregory Stein, senior vice president of Clinical Development at
Plus Therapeutics. "Dr. Brenner and his colleagues have developed
an approach and technology that we believe may prolong survival in
patients with recurrent glioblastoma, a cancer that affects about
12,000 people per year in the U.S. and for which there are
currently no effective treatments available."
Plus Therapeutics' growing pipeline will feature product candidates
characterized by previously approved small molecules or widely-used
radionuclides, enhanced with delivery and formulation innovations,
each potentially eligible for U.S. FDA and European Medicines
Agency designations intended to expedite development and
application review.
About Plus Therapeutics
Headquartered in Austin, Texas, Plus Therapeutics, Inc. --
http://www.plustherapeutics.com/-- is a clinical-stage
pharmaceutical company focused on the discovery, development, and
manufacturing scale up of complex and innovative treatments for
patients battling cancer and other life-threatening diseases.
Plus Therapeutics reported a net loss of $10.89 million for the
year ended Dec. 31, 2019, compared to a net loss of $12.63 million
for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had $23.23 million in total assets, $22.07 million in total
liabilities, and $1.16 million in total stockholders' equity.
BDO USA, LLP, in San Diego, California, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
March 30, 2020 citing that the Company has suffered recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern.
PREMIER HOME: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Premier Home Solutions, LLC
12543 South Solameer Ave.
Herriman, UT 84096
Chapter 11 Petition Date: April 6, 2020
Court: United States Bankruptcy Court
District of Utah
Case No.: 20-22160
Judge: Hon. William T. Thurman
Debtor's Counsel: Ted F. Stokes, Esq.
STOKES LAW PLLC
2072 North Main Suite 102
North Logan, UT 84341
Tel: (435) 213-4771
E-mail: ted@stokeslawpllc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bryan W. Lund, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/PnjUOY
PROFESSIONAL DIVERSITY: Board Elects Hao Zhang as Chairman
----------------------------------------------------------
At a meeting of the Board of Directors of Professional Diversity
Network, Inc. on March 20, 2020, the Board unanimously elected Mr.
Hao (Howard) Zhang to be the chairman of the Board. Mr. Zhang was
nominated as the Chairman of the Board by Cosmic Forward Limited,
the largest shareholder of the Company, pursuant to the
Shareholders' Agreement, dated as of Nov. 7, 2016, between CFL and
the Company and other parties. Mr. Zhang has been serving as a
director of the Company since November 2016.
Inability to Timely File Annual Report
The Company said it was not be able to file its 2019 Annual Report
on Form 10-K for the fiscal year ended Dec. 31, 2019 by the
original deadline of March 30, 2020 due to circumstances related to
COVID-19. The Company's operations in China and the U.S. have been
seriously impacted by the COVID-19 epidemic. As a result, the
Company and its professional advisors was not be able to complete
the preparation of the Company's consolidated financial statements
and the Form 10-K until after March 30, 2020. The Company is
relying on the SEC order dated March 4, 2020 (Release No. 34-88318)
to extend the due date for the filing of its Form 10-K until May
14, 2020 (45 days after the original due date). The Company will
work diligently to comply with such requirement and, at this time,
management believes that it will need the entire available
extension period.
Additional Risk Factor Disclosure
"The occurrence of an uncontrollable event such as the COVID-19
pandemic is likely to negatively affect our operations. A pandemic
typically results in social distancing, travel bans and quarantine,
and this has limited access to our facilities, customers,
management, support staff and professional advisors. These, in
turn, will not only impact our operations, financial condition and
demand for our goods and services but our overall ability to react
timely to mitigate the impact of this event. Also, it will
substantially hamper our efforts to provide our investors with
timely information and comply with our filing obligations with the
Securities and Exchange Commission.
About Professional Diversity
Headquartered in Chicago, Illinois, Professional Diversity Network,
Inc. -- https://www.prodivnet.com -- is a dynamic operator of
professional networks with a focus on diversity. The Company uses
the term "diversity" to describe communities, or "affinities," that
are distinctly based on a wide array of criteria which may change
from time to time, including ethnic, national, cultural, racial,
religious or gender classification. It serves a variety of such
communities, including Women, Hispanic-Americans,
African-Americans, Asian-Americans, Disabled, Military
Professionals, and Lesbian, Gay, Bisexual and Transgender. Its
goal is (i) to assist its registered users and members in their
efforts to connect with like-minded individuals, identify career
opportunities within the network and (ii) connect members with
prospective employers while helping the employers address their
workforce diversity needs.
The Company reported a net loss of $15.08 million in 2018 following
a net loss of $22.29 million in 2017. As of Sept. 30, 2019, the
Company had $9.30 million in total assets, $5.74 million in total
liabilities, and $3.56 million in total stockholders' equity.
At Sept. 30, 2019 the Company's principal sources of liquidity were
its cash and cash equivalents and the net proceeds from the sales
of shares of common stock in the first nine months of 2019.
The Company had an accumulated deficit of approximately $87,534,000
at Sept. 30, 2019. During the nine months ended Sept. 30, 2019,
the Company generated a net loss from continuing operations of
approximately $2,726,000, used cash in continuing operations of
approximately $3,424,000, and the Company expects that it will
continue to generate operating losses for the foreseeable future.
At Sept. 30, 2019, the Company had a cash balance of approximately
$4,862,000. Total revenues were approximately $1,348,000 and
$1,895,000 for the three months ended Sept. 30, 2019 and 2018,
respectively, and approximately $4,021,000 and $6,327,000 for the
nine months ended Sept. 30, 2019 and 2018, respectively. The
Company had working capital of approximately $149,000 and working
capital deficit of $3,384,000 at Sept. 30, 2019 and Dec. 31, 2018,
respectively. The Company said these conditions raise substantial
doubt about its ability to continue as a going concern.
PROGRESSIVE SOLUTIONS: Court Junks Bid to Amend Ch. 11 Petition
---------------------------------------------------------------
Bankruptcy Judge Scott C. Clarkson denied Debtor Progressive
Solutions, Inc.'s Motion for Order Authorizing Amendment of Chapter
11 Petition regarding Subchapter V Election and Extension of Plan
Deadline and Motion for Order Confirming Amended Chapter 11 Small
Business Plan.
Progressive Solutions, the debtor in a Small Business-designated
Chapter 11 case (not to be confused with a Subchapter V small
business case), filed on Nov. 21, 2018, requests that the Court
authorize the amendment of the original Chapter 11 petition to
permit the re-designation of its status as a Subchapter V small
business debtor, and, further, that the Court establish or modify
certain deadlines set out in the newly enacted Small Business
Reorganization Act of 2019 ("SBRA").
Progressive Solutions also requests that the Court confirm an
amended Chapter 11 Plan that supposedly complied with the terms of
the SBRA.
The Court denies the first request because the actual requests made
in the Motion (to approve such a re-designation) are procedurally
infirm.
The Court says an amendment to a Bankruptcy Petition can be made at
any time as a matter of course at any time before the case is
closed. The Court notes that the last sentence of Fed.R.Bankr.P.
1009 subsection (a) is non-applicable to debtor motions, as
clarified in the 1987 Committee Comments to the Rules. That
concluding sentence presents for times when non-debtor parties are
demanding that the debtor make changes to the petition or
schedules.
The Court explains that, to set a standard or precedent requiring a
debtor to seek leave to amend a petition or schedule is improper,
especially in light of Rule 1009. As there is no legal requirement
to have a court grant leave to amend the petition or schedules, and
there are clear procedures for parties to later object to any
amendments or designations (including a designation as a Subchapter
V debtor within the new federal rules for the SBRA), the Court
finds that the Motion is unnecessary and not required by law. When
and if there is a designation by amendment to the Petition,
opposing parties may file objections on a timely basis, and the
Court may undertake eligibility considerations.
The Court says the second request within the Motion desires this
Court to set deadlines appropriate to the implementation of the
SBRA. This request is premature, as no Subchapter V designation had
been made by the Debtor at the time of the filing of the motion and
the hearing.
Finally, the Debtor seeks by its Motion to Confirm a Subchapter V
Plan of Reorganization, recently filed. This Motion is premature
and is denied without prejudice
A copy of the Court's Order dated Feb. 21, 2020 is available at
https://bit.ly/38HGW0Q from Leagle.com.
About Progressive Solutions
Founded in 1979, Progressive Solutions, Inc. --
http://www.progressivesolutions.com/-- is a provider of software
and support services to governmental entities. The Company is
headquartered in Brea, California. Progressive Solutions commenced
a Chapter 11 case (Bankr. C.D. Cal. Case No. 18-14277) on Nov. 21,
2018. In the petition signed by Glenn Vodhanel, president, the
Debtor estimated $500,000 to $1 million in assets and $1 million to
$10 million in liabilities. Lewis R. Landau, Attorney-at-Law,
represents the Debtor.
RANGE RESOURCES: S&P Lowers ICR to 'B' on Lower Commodity Prices
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Range
Resources Corp. to 'B' from 'BB-' and on the senior unsecured debt
to 'B+' from 'BB-', and revised the recovery rating to '2' from
'3'.
The rating agency estimates credit measures will fall below its
expectations for the rating over the next two years. Based on its
revised oil and natural gas price deck assumptions, S&P expects
Range's funds from operations (FFO) to debt to fall to the 10% to
15% range in 2020 through 2021, from 20% in 2019. While the company
has approximately 70% of its natural gas and 85% of its crude oil
production hedged in 2020 limiting the cash flow impact from lower
prices, these hedges roll off in 2021.
S&P's negative ratings outlook on Range reflects low gas prices,
which could pressure existing covenants, as well as weakened
capital market conditions, which could result in challenges
refinancing its near-term maturities. The rating agency projects
2020 FFO to debt to be in the low teens with a material increase in
debt to EBITDA over the next two years.
"We could lower the rating should Range fail to address its
upcoming 2022 and 2023 debt maturities in a timely fashion.
Alternatively, we could lower the rating if the company breaches
its 2.5x interest coverage covenant and had difficulty achieving an
amendment or waiver, weakening liquidity," S&P said.
"We could revise the outlook to stable should the company
proactively address its 2022 and 2023 maturities through either
secured financing or potentially asset sales should capital markets
allow. Alternatively, this could occur if Range began generating
meaningful positive free operating cash flow most likely due to
higher-than-assumed commodity prices," the rating agency said.
RILEY DRIVE: Not Compelled to Give Bankruptcy Notice to Employees
-----------------------------------------------------------------
Chief Bankruptcy Judge Dale L. Somers issued an order denying the
United States Trustee's motion to compel Riley Drive Entertainment
XIX, LLC to give notice to employee-creditors.
Two days after filing for Chapter 11 protection, the Debtor filed
several first-day motions, including an Application for Approval of
Payment of Prepetition Payroll. The United States Trustee responded
with his Motion to Compel The Debtor to Give Notice to
Employee-Creditors. He seeks an order "compelling the Debtor to
give notice to its employee-creditors of this bankruptcy -- and,
specifically the payroll motion immediately affecting their
rights." A hearing on the Application and the Motion was held on
Jan. 22, 2020. The Court granted the Application and took the
Motion under advisement.
The Debtor does business as Ignite Wood Fire Grill, a high-end
restaurant in Lenexa, Kansas. The Debtor has about 40 employees.
When the Debtor filed the petition, its payroll obligations were
current through the last payday scheduled prepetition. The Debtor
sought to pay the employees for the partial pay period after the
end of the last prepetition pay period up to the date of filing the
petition. The Application did not include a request to omit lists
of employees from the matrix and Schedule E/F. The total owed to
the employee-creditors was approximately $28,000.
The Debtor filed its creditor matrix one day after the bankruptcy
filing, but it did not include the creditor-employees. The
Application was filed before the schedules were submitted. The
Debtor served the motion on the Trustee and eight creditors, but
not on the employee-creditors. Thus, these employee-creditors were
not given notice of the filing of the Chapter 11 petition or of the
Application. The most senior employees were informed by management
of the bankruptcy filing.
The Bankruptcy Code and bankruptcy rules clearly impose upon a
debtor the duty to file a schedule identifying all unsecured
creditors and a matrix listing all creditors. Section 521(a)(1)4
provides, "[t]he the Debtor shall (1) file (A) a list of creditors;
and (B) unless the court orders otherwise -- (i) a schedule of
assets and liabilities." Rule 1007(b)5 provides, "the Debtor,
unless the court orders otherwise, shall file the following
schedules, ... prepared as prescribed by the appropriate Official
Forms, if any: (A) schedules of assets and liabilities." Official
Form 106E/F requires the listing of all creditors who have
unsecured claims. Rule 1007(a)(1) provides, "[i]n a voluntary case,
the Debtor shall file with the petition a list containing the name
and address of each entity included or to be included on Schedules
D, E/F, G, and H as prescribed by the Official Forms." This is
commonly called the creditor matrix.
In this case, the employee-creditors are unsecured creditors. The
Trustee relies on section 551(a)(1) and Rule 1007(a) and (b) when
moving for an order to compel The Debtor to give notice to its
employee-creditors of the bankruptcy case through their inclusion
on the creditor matrix and service of the Application. He also
submits that the employee-creditors should be included on Schedule
E/F.
The Court declines to grant the motion to compel. Inclusion of the
phrase "unless the court orders otherwise" in both section
521(a)(1) and Rule 1007(b) provides authority for the Court to
excuse strict compliance with the Debtor's notice duty. A factual
basis for the Court to exercise its discretion to excuse service on
the employee-creditors exists in this case, and the Trustee has not
demonstrated any adverse consequences from the denial of his
Motion.
There is no evidence that it would not be just to deny the
Trustee's motion to compel. The evidence establishes that when the
bankruptcy petition was filed, the employee-creditors had been paid
current through the last payday scheduled prepetition and had no
claims other than for unpaid wages earned after the close of that
pay period and the date of filing. The Court is convinced that the
Debtor is not attempting to deprive employees from participating in
the bankruptcy case.
A copy of the Court's Memorandum Opinion and Order dated March 6,
2020 is available at https://bit.ly/399dYam from Leagle.com.
About Riley Drive Entertainment XIX
Riley Drive Entertainment XIX, LLC, a privately held company that
owns and operates restaurants, filed a voluntary Chapter 11
petition (Bankr. D. Kan. Case No. 20-40046) on Jan. 15, 2020. In
the petition signed by Scott William Anderson, LLC, managing
member, the Debtor estimated $100,000 to $500,000 in assets and $1
million to $10 million in liabilities. Judge Dale L. Somers
oversees the case. Adam M Mack, Esq., at Mack & Associates, LLC,
is the Debtor's legal counsel.
SEANERGY MARITIME: Empery Asset, et al. Report 9.9% Equity Stake
----------------------------------------------------------------
Empery Asset Master, Ltd., Empery Tax Efficient II, LP, Empery
Asset Management, LP, Mr. Ryan M. Lane, and Mr. Martin D. Hoe
disclosed in a Schedule 13G filed with the Securities and Exchange
Commission that as of March 31, 2020, they beneficially own the
following securities of Seanergy Maritime Holdings Corp.:
(1) Empery Asset Master, Ltd.
* 3,179,267 Common Shares
* 2,708,264 Common Shares issuable upon exercise of Pre-Funded
Warrants
* 5,887,531 Common Shares issuable upon exercise of Warrants
Percent of Class: 9.99%
(2) Empery Tax Efficient II, LP
* 1,963,613 Common Shares
* 1,672,707 Common Shares issuable upon exercise of Pre-Funded
Warrants
* 3,947,843 Common Shares issuable upon exercise of Warrants
Percent of Class: 9.99%
(3) Empery Asset Management, LP
* 5,400,000 Common Shares
* 4,600,000 Common Shares issuable upon exercise of Pre-Funded
Warrants
* 10,311,523 Common Shares issuable upon exercise of Warrants
Percent of Class: 9.99%
(4) Ryan M. Lane
* 5,400,000 Common Shares
* 4,600,000 Common Shares issuable upon exercise of Pre-Funded
Warrants
* 10,311,523 Common Shares issuable upon exercise of Warrants
Percent of Class: 9.99%
(5) Martin D. Hoe
* 5,400,000 Common Shares
* 4,600,000 Common Shares issuable upon exercise of Pre-Funded
Warrants
* 10,311,523 Common Shares issuable upon exercise of Warrants
Percent of Class: 9.99%
Pursuant to the terms of the Reported Warrants, the Reporting
Persons cannot exercise the Reported Warrants to the extent the
Reporting Persons would beneficially own, after any such exercise,
more than 4.99% of the outstanding Common Shares (other than the
Pre-Funded Warrants, which cannot be exercised to the extent the
Reporting Person would beneficially own, after such exercise, more
than 9.99% of the outstanding Common Shares) (the "Blockers"), and
the percentage set forth in Row 11 of the cover page for each
Reporting Person gives effect to the Blockers. Consequently, as of
the date of the event which requires the filing of this statement,
the Reporting Persons were not able to exercise all of the Reported
Warrants due to the Blockers.
A full-text copy of the regulatory filing is available for free
at:
https://is.gd/TUGfWM
About Seanergy Maritime
Greece-based Seanergy Maritime Holdings Corp. --
http://www.seanergymaritime.com/-- is an international shipping
company that provides marine dry bulk transportation services
through the ownership and operation of dry bulk vessels. Seanergy
provides marine dry bulk transportation services through a modern
fleet of 10 Capesize vessels, with a cargo-carrying capacity of
approximately 1,748,581 dwt and an average fleet age of
approximately 11 years. The Company is incorporated in the
Marshall Islands and has executive offices in Athens, Greece and an
office in Hong Kong.
Seanergy Maritime reported a net loss of US$11.70 million for the
Dec. 31, 2019, a net loss of US$21.06 million for the year ended
Dec. 31, 2018, and a net loss of US$3.23 million for the year ended
Dec. 31, 2017. As of Dec. 31, 2019, the Company had US$282.55
million in total assets, US$252.69 million in total liabilities,
and US$29.86 million in total stockholders' equity.
Ernst & Young (Hellas) Certified Auditors Accountants S.A., in
Athens, Greece, the Company's auditor since 2012, issued a "going
concern" qualification in its report dated March 5, 2020 citing
that the Company has a working capital deficiency and has stated
that substantial doubt exists about the Company's ability to
continue as a going concern. In addition, the Company has not
complied with a certain covenant of a loan agreement with a bank.
SETTLERS JERKY: Unsecureds Will be Paid in Full in Plan
-------------------------------------------------------
Settlers Jerky Inc. filed a Chapter 11 Plan that will be funded by
a combination of (1) the Debtor's cash on hand; and (2) "Net
Profit" from the Debtor's future operations for the four-year
period following the Effective Date. The Debtor estimates that the
amount of its cash on hand will be approximately $120,000 as of the
Effective Date.
Class 1 under the Plan consists of the allowed claim of Akers Inc.,
which has been listed by the Debtor on Schedule D of the Debtor's
Schedules of Assets and Liabilities, in the amount of $8,487. The
Debtor scheduled Akers Inc. on Schedule D based on the Debtor's
prepetition agreement with Akers Inc. pursuant to which Akers Inc.
made a loan to the Debtor and was entitled to receive a security
interest in the Debtor's assets. However, Akers Inc. has not filed
or recorded any financing statement which would entitle Akers Inc.
to a security interest in any of the Debtor's assets. Akers Inc.'s
scheduled claim will therefore be treated as a class 4 general
unsecured claim under the Plan, and Akers Inc.'s allowed claim will
receive treatment identical to the treatment of allowed class 4
general unsecured claims under the Plan. Akers Inc. is owned by
the parents of Carrie Anderson, who is a 25% shareholder and
officer of the Debtor.
Class 2 under the Plan consists of the allowed claim of Small
Business Financial Solutions, LLC, d/b/a Rapid Advance, which is
secured by substantially all of the Debtor's assets. Under the
Plan, Rapid Advance's allowed class 2 claim is impaired, will be
secured by the same assets and with the same priority in which
Rapid Advance had a perfected security interest as of the Petition
Date, and will be paid in full as follows: all of the terms and
conditions of the Debtor's prepetition agreement with Rapid Advance
will remain in full force and effect, except that, in full
satisfaction of Rapid Advance's allowed class 2 claim, as of the
Effective Date, there will not be deemed to be or exist any
defaults or breaches under the Debtor's prepetition agreement with
Rapid Advance by any person, including any guarantors, and the
Debtor will commence making monthly payments to Rapid Advance on
the first full month following the Effective Date of the Plan, for
a total of 24 months, at a rate of interest of 6.5% per annum. By
way of illustration, as of March 18, 2020, the Debtor is advised
that the total outstanding amount of Rapid Advance's class 2 claim
is approximately $121,000.
Class 3 under the Plan consists of the allowed claim of USB Leasing
LT (referred to in the Debtor's Schedules as Range Rover Leasing),
which is secured by an interest in a 2018 Range Rover. Under the
Plan, USB Leasing LT's allowed class 3 claim is not impaired, and
all of the terms and conditions of the Debtor's prepetition
agreement with USB Leasing LT will remain in full force and effect,
and the allowed class 3 claim of USB Leasing LT will be paid in
full pursuant to the terms and conditions of the Debtor's
prepetition agreement with USB Leasing LT. To the extent the
agreement is considered to be an unexpired lease, it shall be
deemed assumed on the Effective Date.
Class 4 under the Plan consists of all allowed general unsecured
claims. Under the Plan, allowed class 4 claims will receive a pro
rata share of "Net Profit" on a quarterly basis until their allowed
claim has been paid in full, with interest at the rate of 2% per
annum (which interest rate is more than the federal interest rate
applicable as of the Petition Date under 28 U.S.C. Sec. 1961(a)).
"Net Profit" will mean the net profits of the Reorganized Debtor
calculated as the remaining cash in an applicable calendar quarter
after subtracting from the gross cash revenue collected by the
Reorganized Debtor for such quarter the following items: (a) a
reserve equal to the expenses (including tax obligations accrued
but not yet due) incurred in such month but not paid in such
quarter; (b) all expenses (including any tax obligations) paid in
such quarter; (c) any payments required to be made to secured
creditors, lessors whose leases have been assumed, counter-parties
to executory contracts whose contracts have been assumed,
administrative creditors, and priority creditors; and (d) a general
operating reserve of $10,000 per quarter. Payments to holders of
allowed Class 4 claims will commence during the second full
calendar quarter after the Effective Date, and such commencement
payment shall be based upon the Net Profit of the first full
calendar quarter after the Effective Date. For example, if the
Effective Date of the Plan is June 30, 2020, the first payment to
holders of allowed class 4 claims shall be made by not later than
Dec. 31, 2020, based on Net Profit for the period from July 1, 2020
through Sept. 30, 2020. The Reorganized Debtor anticipates that it
will be able to pay all allowed class 4 claims in full, with
interest, within 48 eight months following the Effective Date.
Class 5 under the Plan consists of the current existing equity
interests of the shareholders of the Debtor. Such equity interests
will remain intact, but will not receive any monetary distribution
under the Plan.
The Disclosure Statement hearing is slated for:
Date: April 29, 2020
Time: 2:00 p.m.
Place: Courtroom 1539
255 E. Temple Street
Los Angeles, CA 90012
A full-text copy of the Disclosure Statement dated March 18, 2020,
is available at https://tinyurl.com/uqvasej from PacerMonitor.com
at no charge.
About Settlers Jerky Inc.
Settlers Jerky Inc., a family-operated enterprise which has been in
business since 1977, with facilities and operations are located in
Walnut, California, develops, prepares, and sells gourmet,
hand-crafted, and hand-packaged artisan beef jerky snacks. It
currently produces and distributes fifty different flavors and
styles of beef jerky to over sixty companies.
Settlers Jerky filed a Chapter 11 petition (Bankr. C.D. Cal. Case
No. 19-22339) on Oct. 18, 2019. Judge Sheri Bluebond is assigned
to the case. Levene, Neale, Bender, Yoo & Brill LLP is the
Debtor's counsel.
SHARON E. HARRIS: D&K Buying 2014 Peterbilt for $28K
----------------------------------------------------
Sharon Elizabeth Harris asks the U.S. Bankruptcy Court for the
Eastern District of Tennessee to authorize the sale of her 2014
Peterbilt, VIN 1NPXGGGG10D268031, to D & K Logistics, LLC for
28,000.
Objections, if any, must be filed within 21 days from the Notice
filing.
BMO Harris Bank has a secured interest in the Vehicle. The
approximate amount owed is $27,312.
The Debtor asks approval to sell the Vehicle to D&K of
Madisonville, Tennessee, for $28,000, and for authorization to
allow D&K to pay BMO directly $28,000. Upon receipt of the $28,000
as payment in full for the Vehicle, BMO to release its lien and
convey title of the Vehicle to D&K.
Sharon Elizabeth Harris sought Chapter 11 protection (Bankr. E.D.
Tenn. Case No. 20-10742) on Feb. 25, 2020. The Debtor tapped
Richard Banks, Esq., as counsel.
SIERRA ENTERPRISES: S&P Lowers ICR to 'B-' on Pandemic Effects
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Sierra
Enterprises LLC to 'B-' from 'B' and its issue-level rating on its
first-lien senior secured facilities (including a $35 million
first-lien revolver due November 2022 and a $282 million first-lien
term loan due November 2024) to 'B-' from 'B'. S&P's '3' recovery
rating on the senior secured debt remains unchanged, indicating its
expectation for meaningful (50%-70%; rounded estimate: 55%)
recovery for lenders in a default scenario.
Economic disruptions due to the accelerating spread of the
coronavirus will severely impair Sierra's 2020 results and could
pressure its credit measures through fiscal year 2021.
Coronavirus-related business closures, government-mandated
lockdowns, and social distancing measures in the U.S. are
significantly reducing the volume of restaurant traffic.
"Although Sierra's key national customers, such as McDonald's and
Starbucks, have pivoted toward offering takeout, delivery, and
other off-premise options, we expect that their sales volume will
drop sharply and reduce their earnings and cash flow generation. We
also recognize that continued weakness in the foodservice
distribution channel could further strain the company's credit
metrics. Although demand could pick up relatively quickly once the
outbreak is contained, we are unsure that Sierra will be able to
withstand the decline in its revenue for an extended period," S&P
said.
The CreditWatch placement reflects the potential for a further
downgrade if its business conditions deteriorate further in the
next few months. Given the uncertainty around the duration of the
outbreak, including the potential that it will reemerge after the
summer, the ratings could remain on CreditWatch for a longer than
normal period. S&P plans to resolve the CreditWatch placement when
it has further information about the evolution and spread of the
coronavirus, the expected length of its effects on the U.S.
out-of-home dining industry, and its impact on the company's
profitability, credit measures, covenant compliance, and liquidity.
SIMPLICITY CATERERS: Has April 17 Deadline to File Plan
-------------------------------------------------------
The deadline to file the Debtor's Amended Chapter 11 Plan is fixed
as Friday, April 17, 2020, by 5:00 p.m., CDT.
A telephonic hearing on confirmation of the Plan will be held on
Wednesday, May 27, 2020, at 11:00 a.m., before the Honorable
Clifton R. Jessup, Jr.
Monday, May 18, 2020 by 5:00 p.m., CDT, is fixed as the deadline by
which the holders of claims and interests against the Debtor must
file ballots accepting or rejecting the Plan.
Monday, May 18, 2020 by 5:00 p.m., CDT, is fixed as the last day by
which creditors and parties-in-interest must file any objections to
confirmation of the Plan.
The Debtor must tabulate all acceptances and rejections of the Plan
and file a ballot summary with the Court on or before Thursday, May
21, 2020, by 12:00 p.m., Noon, CDT.
The Debtor must file a Memorandum in Support of Confirmation
explaining how the Plan satisfies the requirements for
confirmation, including evidence of feasibility on or before
Thursday, May 21, 2020 by 12:00 p.m., Noon, CDT.
About Simplicity Caterers
Simplicity Caterers, LLC, is a government contractor located in
Huntsville, Alabama. It manages the government's dining facility
for the National Guard in Smyrna, TN, under a federal contract.
Sole shareholder Stephanie Lanier formed the company on July 12,
2013.
Simplicity Caterers sought Chapter 11 protection (Bankr. N.D. Ala.
Case No. 19-82798) on Sept. 17, 2019.
Attorneys for the Debtor:
SPARKMAN, SHEPARD & MORRIS, P.C.
P.O. Box 19045
Huntsville, AL 35804
Tel: (256) 512-9924
Fax: (256) 512-9837
SMARTER TODDLER: To Seek Plan Confirmation on April 28
------------------------------------------------------
Judge Shelley C. Chapman has ordered that the Disclosure Statement
filed by Smarter Toddler Group, LLC, is conditionally approved.
An omnibus hearing will be held before the Honorable Shelley C.
Chapman, United States Bankruptcy Judge, at the United States
Bankruptcy Courthouse, One Bowling Green, Courtroom 623, New York,
New York 10004 on April 28, 2020 at 10:00 a.m. EST, to: (1)
consider final approval of the Disclosure Statement; and (2)
consider confirmation of the Plan.
April 21, 2020 is fixed as the last date for filing and serving
written objections to (a) final approval of the Disclosure
Statement and (b) confirmation of the Plan.
About Smarter Toddler Group
Smarter Toddler Group, LLC -- https://www.smartertoddler.net/ -- is
a child care - pre school in New York. It offers early childhood
education, top tier private preschools, pre-k, child day care
centers, nursery, infant childcare, baby activities, toddler
enrichment classes, art, music, movement classes, science, yoga,
dance, languages, sign language, literacy, kindergarten prep, GNT
gifted and talented test prep tutoring, G&T preparation.
Smarter Toddler Group sought Chapter 11 protection (Bankr. S.D.N.Y.
Case No. 19-13097) on Sept. 27, 2019, in Manhattan, New York. In
the petition signed by Kettia Ming, manager, the Debtor was
estimated to have assets between $1 million and $10 million, and
liabilities of the same range. Judge Shelley C. Chapman is
assigned the case. Storch Amini PC is the Debtor's legal counsel.
SOUTHERN INDUSTRIAL: Former Employees' Bid for Discovery Junked
---------------------------------------------------------------
The case captioned SHANNON RULE, ET AL., v. SOUTHERN INDUSTRIAL
MECHANICAL MAINTENANCE CO., L.L.C., ET AL., Civil Action No.
16-CV-01408 (W.D. La.) arises out of a dispute between employees
and their employer, Southern Industrial Mechanical Maintenance
Company, LLC ("SIMMCO"), about whether payments SIMMCO made to its
traveling employees were properly excluded from their regular rate
of pay under the Fair Labor Standards Act. Before the Court are
three motions: a Motion for Discovery Pursuant to Rule 56(d) filed
by Plaintiffs, a Motion for Summary Judgment filed by Defendants
David and Ginger Blurton, the owners of SIMMCO, and a Motion for
Summary Judgment as to FLSA Liability filed by Plaintiffs.
Upon analysis, District Judge Elizabeth E. Foote denied Plaintiffs'
Motion for Discovery. The Blurtons' Motion for Summary Judgment is
granted in part and denied in part. The motion is granted as to the
applicable statute of limitations and denied as to FLSA liability
and liquidated damages. Plaintiffs' Motion for Summary Judgment as
to FLSA liability is denied.
On Oct. 7, 2016, Plaintiffs Shannon Rule and Karina Esquivel filed
the collective action under the FLSA on behalf of themselves and
all other similarly-situated current and former employees of
SIMMCO, seeking unpaid overtime pay, liquidated damages,
prejudgment interest, attorneys' fees, and costs. Plaintiffs allege
that they were hourly, non-exempt employees who were entitled to
overtime pay under the FLSA. Plaintiffs claim that SIMMCO paid them
per diems for travel expenses and then failed to include those per
diems in their regular rate of pay when calculating their overtime
pay, in violation of the FLSA. Plaintiffs argue that the per diems
should have been included in their regular rate of pay because
SIMMCO's policy tied the amount of the per diems to the number of
hours an employee worked.
The Blurtons filed a motion for summary judgment arguing that they
are entitled to a dismissal of Plaintiffs' claims because the facts
show that SIMMCO's per diem policy did not violate the FLSA as a
matter of law. In the alternative, they argue that if they are
found liable for an FLSA violation, the Court should also find (1)
that the FLSA's standard two-year statute of limitations should
apply in this case rather than the three-year statute of
limitations for willful violations and (2) that Plaintiffs are not
entitled to recover liquidated damages under the FLSA. Plaintiffs
subsequently filed a motion for discovery pursuant to Federal Rule
of Civil Procedure 56(d), requesting further discovery on the issue
of whether Defendants willfully violated the FLSA. Finally,
Plaintiffs filed their own motion for summary judgment on the issue
of FLSA liability.
Plaintiffs have filed a Motion for Discovery pursuant to Federal
Rule of Civil Procedure 56(d), requesting additional time for
discovery on the issue of willfulness.
The Court finds that "ample time and opportunities for discovery
have already lapsed" and that Plaintiffs have not identified the
specific facts that they hope to produce through additional
discovery but have merely asserted that additional discovery will
produce "needed, but unspecified, facts." Therefore, Plaintiffs'
Rule 56(d) motion [Record Document 163] is denied. The Court also
denies Plaintiffs' request for the costs and attorneys' fees
incurred in filing this motion and declines to enter any order
regarding Defendants' alleged failure to comply with discovery
obligations.
Regarding the Blurton's motion for summary judgment, the Fifth
Circuit has stated that each case should be judged by its own facts
when evaluating whether a per diem paid under the FLSA is
reasonable and therefore properly excluded from the regular rate of
pay. The Blurtons contend that if the Court finds SIMMCO's per diem
policy to be impermissible under the FLSA, the Court would be
rejecting the Fifth Circuit's case-by-case approach and
"effectively ban[ning] all proportionate payments of per diem." To
the contrary, by finding that the per diems should have been
included in SIMMCO's employees' regular rate of pay, the Court
announces no such categorical ban. Instead, the Court finds that,
based on the facts and circumstances unique to this case, what
SIMMCO labeled as per diems were not "reasonable payments for
traveling expenses" that could be excluded from the regular rate of
pay pursuant to 29 U.S.C. section 207(e)(7). The Court holds that
the FLSA does not permit employers to combine a per diem and an
attendance incentive into one payment as SIMMCO has done in this
case. Because the Court finds that SIMMCO's policy violated the
FLSA, the Blurtons' motion for summary judgment is denied as to
FLSA liability.
On the Plaintiff's cross-motion for summary judgment, the Court
holds that Plaintiffs have not attempted to argue that any
Defendants are employers under the FLSA, nor have they identified
evidence in the record that could support such a finding. Based on
the portions of the record the Court has reviewed, the Court
suspects that it may contain evidence showing that at least the
Blurtons could be considered employers for FLSA purposes. However,
the Court declines to sift through the record in search of such
evidence or to make a legal argument on behalf of Plaintiffs that
they have explicitly declined to assert for themselves. By filing
this motion, Plaintiffs have sought judgment as a matter of law as
to Defendants' liability under the FLSA, which they are not
entitled to without producing any evidence that Defendants are
employers under the FLSA. Accordingly, Plaintiffs' motion for
summary judgment as to FLSA liability is denied.
A copy of the Court's Memorandum Ruling dated March 6, 2020 is
available at https://bit.ly/2vwLsSg from Leagle.com.
Shannon Rule et al. represented by Christopher Lane Williams,
Williams Litigation.
Southern Industrial Mechanical Maintenance Co L L C, David Blurton,
Ginger Blurton, Southern Industrial Mechanical Maintenance Co II L
L C & Blurton Group L L C, Defendants, represented by Elizabeth
Anderson Roussel -- elizabeth.roussel@arlaw.com -- Adams & Reese.
About Southern Industrial Mechanical
Maintenance Company, LLC
Southern Industrial Mechanical Maintenance Company, LLC --
http://www.simmco.net/-- dba SIMMCO, dba SIMMCO LLC, a division
of the Blurton Group, is a construction maintenance & fabrication
company based in Brownsville, Tennessee. SIMMCO offers pipe
fabrication, industrial construction, facility maintenance, vessel
fabrication, rigging and heavy hauling, as well as flushing &
filtration services. The Debtor was founded in 1977.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. W.D.
Tenn. Case No. 18-10261) on Feb. 9, 2018, estimating its assets
and
liabilities at between $10 million and $50 million each. The
petition was signed by David R. Blurton, president and chief
executive officer.
Judge Jimmy L. Croom presides over the case.
Gene Humphreys, Esq., Paul G. Jennings, Esq., and Glenn B. Rose,
Esq., at Bass, Berry & Sims, PLC, serve as the Debtor's bankruptcy
counsel. Louisiana First Financial Group, Inc., is the financial
advisor.
STAR PETROLEUM: Unsecureds to Get 100% Without Interest
-------------------------------------------------------
Star Petroleum Corp. filed a Chapter 11 Plan and a Disclosure
Statement.
The Debtor will effect payment of Administrative Expense Claims,
Priority Tax Claims, Allowed Secured, and General Unsecured Claims
from the cash flows generated from the leasing of its service
stations.
The Plan proposes to treat claims and interests as follows:
* Class 1 - The Claim of Bautista Cayman Asset Company secured
by mortgages on the Debtor's realty. Impaired. Total claim of
$5,160,840 with estimated recovery of 57%. The partially secured
claim of Bautista Cayman secured by Debtor's real properties, will
be paid $2,956,000, representing the appraised values of the
properties (the secured claim) in 240 equal consecutive monthly
payments of $21,178 each, including principal and interests at 6%,
with the deficiency portion of the claim for $2,204,840 to be
treated under Class 6.
* Class 4 - The Claim of Puma Energy Caribe, LLC. Impaired.
Total claim of $350,000 with estimated recovery of 100%. Puma's
allowed prepetition cure claim arising from the Debtor's assumption
of Abraham Petroleum Corporation's executory contracts with Puma,
will be paid in 35 consecutive monthly installments of $10,000
each, without interest.
* Class 5 - Bautista Cayman Asset Company's Deficiency Claim.
Impaired. Total claim of $3,341,518 with estimated recovery of 5%.
Bautista Cayman's Unsecured Claim guaranteed by Debtor's principal
and his spouse and by a mortgage on realty the property of Samir
Abraham, will be paid 5% thereof in full satisfaction of this
claim, through 60 equal consecutive monthly payments, without
interest.
* Class 6 - Holders of Allowed General Unsecured Claims.
Impaired. Total claim of $102,859 with estimated recovery of 100%.
Holders of Allowed General Unsecured Claims in excess of $3,000,
including Banco Popular de Puerto Rico, will be paid in full
satisfaction of such claims 5% thereof, trough 60 equal consecutive
monthly payments, without interest. Holders of Allowed General
Unsecured Claims for $3,000 or less will be paid in full
satisfaction of such claims 5% thereof on the Effective Date.
A full-text copy of the Disclosure Statement dated March 18, 2020,
is available at https://tinyurl.com/ubmzjo2 from PacerMonitor.com
at no charge.
Counsel for the Debtor:
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 Star Petroleum Corp.
Star Petroleum, Corp., based in Toa Alta, PR, filed a Chapter 11
petition (Bankr. D.P.R. Case No. 20-00558) on Feb. 5, 2020. In the
petition signed by Sami Abraham, president, the Debtor disclosed
$6,782,500 in liabilities. CHARLES A. CUPRILL, PSC LAW OFFICES,
serves as bankruptcy counsel.
STEEL DYNAMICS: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Steel Dynamics Incorporated to BB+ from BBB.
Steel Dynamics, Incorporated, sometimes abbreviated as "SDI", is a
steel producer based in Fort Wayne, Indiana. With a production
capacity of 13 million tons, Steel Dynamics is the 3rd largest
producer of carbon steel products in the United States.
SUPERIOR ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to C
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Superior Energy Services, Incorporated to C from CC.
EJR also downgraded the rating on commercial paper issued by the
Company to D from C.
Superior Energy Services, Incorporated is an oilfield services
company. In 2014 it ranked 534 on the Fortune 1000.
TAILWIND SMITH: S&P Lowers ICR to 'B-' on Expected High Leverage
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit on U.S.-based
piping-system component manufacturer Tailwind Smith Cooper Holdings
Corp. to 'B-' from 'B' and assigned a negative outlook. At the same
time, S&P lowered its issue-level ratings on the company's
first-lien term loan to 'B-' from 'B' and on its second-lien term
loan to 'CCC' from 'CCC+'.
The rating action reflects the probability that weak global
macroeconomic conditions sparked by the coronavirus pandemic will
make demand for Tailwind's products decline moderately over the
near term and cause credit ratios to decline materially, including
adjusted leverage sustained above 6.5x. The negative outlook
reflects the likelihood that declining sales and EBITDA from the
coronavirus fallout and the oil price war cause negative cash flow
and result in an unsustainable capital structure.
The negative outlook reflects the uncertainty in Tailwind's
cyclical end markets, which may put pressure on revenues over the
next 12 months. S&P expects liquidity to remain adequate and expect
modest positive free cash flow during the stressed scenario.
"We could lower our rating on Tailwind if the company's free
operating cash flow turns negative and its liquidity position
weakens. We believe negative cash flow could also lead to increased
revolver usage, which would subject the company to financial
maintenance covenants and reduce its cushion under these covenants.
Additionally, we could lower our rating if we deem the capital
structure to be unsustainable," S&P said.
"We could revise our outlook to stable if there is a significant
rebound in the company's end markets and we expect a restoration of
operating trends to levels supporting sustainable positive free
cash flow, sufficient liquidity, and a sustainable capital
structure," the rating agency said.
TATA CHEMICALS: S&P Places 'B+' ICR on CreditWatch Negative
-----------------------------------------------------------
S&P Global Ratings placed its 'B+' issuer credit rating and 'BB'
issue-level rating on U.S.-based Tata Chemicals North America Inc.
(TCNA) on CreditWatch with negative implications.
S&P plans to resolve the CreditWatch placement as soon as TCNA
refinances its capital structure or if it believes the company
cannot extend maturities.
The CreditWatch placement follows Tata Chemicals North America
Inc.'s (TCNA's) decision to postpone refinancing its current
capital structure due to unfavorable market conditions. Previously,
TCNA had planned to issue a new $380 million term loan B and $25
million revolver to refinance existing debt at TCNA and Valley
Holdings.
"The CreditWatch negative placement indicates that there is a
one-in-two likelihood we will lower our rating on TCNA in the next
90 days. We intend to resolve the CreditWatch placement as soon as
TCNA refinances its capital structure and addresses the upcoming
maturities. We would likely lower our ratings on the company and
its debt if it becomes clear that TCNA cannot successfully
refinance its capital structure, further straining liquidity and
heightening refinancing risk. Alternatively, we could remove the
ratings from CreditWatch if TCNA refinances its capital structure
or extends its maturities," S&P said.
THURSTON MANUFACTURING: $65.4K Sale of Thurston Property Approved
-----------------------------------------------------------------
Judge Shon Hastings of the U.S. Bankruptcy Court for the District
of Nebraska authorized Thurston Manufacturing Co.'s sale of
approximately 10 acres of farm land located directly east of 1708 H
Avenue, Thurston, Nebraska to Nutrien Ag Solutions, Inc. for
$65,400.
The sale is free and clear of all Interests, with all Interests
that represent interests in property attaching to the net proceeds
of the Transaction.
Notwithstanding the applicability, or the possible applicability,
of Bankruptcy Rules 4001, 6004(h), 6006(d), 7062, 9014, the Order
will not be stayed and will be immediately effective and
enforceable upon its entry. The Debtor is not subject to any stay
in the implementation, enforcement, or realization of the relief
granted in the Order.
The Debtor is authorized and empowered to take all actions
necessary to effectuate the relief granted in the Order and the
Agreement.
About Thurston Manufacturing Co
Thurston Manufacturing Co., a company based in Thurston, Neb.,
filed a Chapter 11 petition (Bankr. D. Neb. Case No. 19-80108) on
Jan. 23, 2019. In the petition signed by CEO Ryan J. Jensen, the
Debtor was estimated to have $1 million to $10 million in both
assets and liabilities. The Hon. Shon Hastings oversees the case.
Elizabeth M. Lally, Esq., at Goosman Law Firm PLC, serves as
bankruptcy counsel to the Debtor.
THURSTON MANUFACTURING: Jensen Buying Thurston Equipment for $855K
------------------------------------------------------------------
Thurston Manufacturing Co. asks the U.S. Bankruptcy Court for the
District of Nebraska to authorize the sale of its Thurston,
Nebraska facility equipment as outlined in Exhibit 1 to Layton
Jensen for $855,000.
On Oct. 25, 2019, the Debtor ceased manufacturing operations at its
Thurston, Nebraska facility and significantly reduced its
workforce. It has only retained essential employees as it
continues to winddown the business.
The Debtor believes it has a sound business justification to sell
its Nebraska Equipment now that it has ceased operations at its
facility in Thurston and the Nebraska Equipment is no longer being
used.
The Debtor has determined that the continued maintenance and upkeep
of the Nebraska Equipment is now financially burdensome and is no
longer necessary as its business winddowns.
The Debtor has spent the last several months conducting a thorough
marketing process to obtain the best price for the Nebraska
Equipment. It accepted the written offer of one potential buyer,
the Buyer. The Buyer is a Director and Shareholder of the Debtor.
The Buyer is an insider as defined by 11 U.S.C. Section 101(31).
The Debtor and the Buyer propose to enter into an agreement for the
sale of the Nebraska Equipment for $855,000. The Buyer's offer to
purchase the Nebraska Equipment is $5,000 higher than the next
highest bid received by the Debtor. The Buyer's offer is fair and
reasonable and constitutes the highest and best offer.
The Debtor reserves the right to file and serve any supplemental
pleading or declaration that the Debtor deems appropriate or
necessary in support of their request for entry of the Order
authorizing the sale of the Nebraska Equipment before the
Transaction
finalized.
The Debtor submits that the proposed purchase price of $855,000 for
the Nebraska Equipment constitutes the highest and best offer for
the Nebraska Equipment, on balance of the current facts and
circumstances. As such, the Debtor's determination to enter into
the Transaction to sell the Nebraska Equipment will be a valid and
sound exercise of the Debtor's business judgment. Therefore, the
Debtor requests that the Court makes a finding that the Transaction
is a proper exercise of the Debtor's business judgment and is
rightly authorized. Accordingly, the Debtor asks authority to
convey the Nebraska Equipment free and clear of all interests
including liens, claims, rights, interests, charges, and
encumbrances, with any such liens, claims, rights, interests,
charges, and encumbrances to attach to the proceeds of the
Transaction.
To implement the foregoing successfully, the Debtor asks a waiver
of the notice requirements under Bankruptcy Rule 6004(a) and the
requirements under Local Rule 6004-1.
A copy of Exhibit 1 is available at https://tinyurl.com/qwa3yh5
from PacerMonitor.com free of charge.
About Thurston Manufacturing Co
Thurston Manufacturing Co., a company based in Thurston, Neb.,
filed a Chapter 11 petition (Bankr. D. Neb. Case No. 19-80108) on
Jan. 23, 2019. In the petition signed by CEO Ryan J. Jensen, the
Debtor was estimated to have $1 million to $10 million in both
assets and liabilities. The Hon. Shon Hastings oversees the case.
Elizabeth M. Lally, Esq., at Goosman Law Firm PLC, serves as
bankruptcy counsel.
TOYS R US: Alderwood Loses Appeal Regarding Sale of Lease
---------------------------------------------------------
18601 Alderwood Mall Pkwy LLC's in the case captioned 18601
ALDERWOOD MALL PKWY LLC, Appellant, v. PROPCO I DEBTORS, et. al,
Appellees, Case No. 3:19cv408 (E.D. Va.), appeal from the May 22,
2019 Order of the Honorable Keith L. Phillips, United States
Bankruptcy Court Judge, approving the private sale of a lease over
Alderwood's objections. Upon review, District Judge M. Hannah Lauck
affirms the Bankruptcy Court's judgment.
This appeal primarily concerns the meaning of a commercial lease
provision that triggers a significant rent increase when certain
conditions are satisfied. On appeal, the Parties ask the Court to
resolve: (1) whether statutory mootness bars this dispute; (2)
whether the Bankruptcy Court erred in its interpretation of Lease
Section 2.03; (3) whether the Bankruptcy Court erred when finding
that the rent escalation clause contained in Lease Section 2.03
functions as an anti-assignment clause; and (4) whether the
Bankruptcy Court committed clear error when it did not append a
property maintenance report to the Sale Order.
On May 1, 1981, Toy Property Associates II, acting as landlord,
entered an amended and restated lease with Toys "R" Us, Inc.,
acting as tenant, for the premises located at 18601 Alderwood
Parkway, Lynnwood, Washington. That Lease underlies this appeal.
Pursuant to the Lease, the initial rent period between the landlord
and the tenant expired on May 31, 2006. Thereafter, the Lease
contemplated that the tenant "shall have the option to renew" the
lease for five consecutive five-year renewal periods. The Lease
further specified that "[e]ach installment of Fixed Rent payable
during each Renewal Period. shall be $23,265, and shall be payable
monthly in arrears on the last day of each month during such
period."
Section 2.03 of the Lease increased the rent owed during the last
four five-year renewal periods if certain conditions were
satisfied.
On Nov. 30, 2005, Toys "R" Us assigned the Lease to TRU 2005 RE I,
LLC, "a Delaware limited liability company, having an address at
c/o Toys `R' Us, One Geoffrey Way, Wayne, NJ, 07470." The parties
to the assignment did not exchange money for the lease because TRU
2005 RE I, LLC operated as an affiliate of Toys "R" Us. As
reflected in the assignment, "[t]his Instrument is a conveyance
with no change in beneficial interest."
On Sept. 11, 2017, Toys "R" Us, Inc. and certain of its affiliates
filed for Chapter 11 bankruptcy. Through the bankruptcy process,
Toys "R" Us and its affiliates "commenced these [bankruptcy] cases
to resolve issues with landlords and manage their properties in a
unified forum, maximizing the value of their estates for the
benefit of all stakeholders." Such efforts included monetizing
leasehold interests, such as the Lease at issue. To that end, on
Oct. 16, 2018, Propco I Debtors ("Propco") filed pursuant to 11
U.S.C. section 365(f) a "Notice of Assumption" regarding the
unexpired Lease for 18601 Alderwood Mall Pkwy LLC, asserting that
Propco would assume the unexpired Lease. Propco further asserted
that the amount to cure all defaults presently existing under the
Lease totaled zero dollars.
Alderwood objected to the Notice of Assumption. Shortly after
Alderwood filed its objection to the Notice of Assignment, Propco
-- the holder of the Lease -- moved the Bankruptcy Court to enter
an order approving the private sale of the Lease free and clear of
liens, claims, and encumbrances. Such an order would allow Propco
(and later, Hill Street,) to sell their Lease interest to
Southwestern Furniture. Alderwood objected to Propco's motion,
raising many of the same arguments that it raised in its objection
to the Notice of Assignment.
The Bankruptcy Court held two hearings regarding the sale and
approved the private sale of the lease.
After a thorough analysis, the District Court holds that the
Bankruptcy Court did not err when it found that the 2005 assignment
to an affiliate of the tenant, Toys "R" Us, did not trigger the
rent increase in Section 2.03 based on the plain language of the
Lease and the Parties' assertion that the Lease included that
provision for tax purposes. In reaching this conclusion, the
Bankruptcy Court appropriately considered the language of Section
2.03 and the tax rationale behind that provision, raised by both
Parties, and found that the parties to the Lease would not have
intended the 2005 assignment from Toys "R" Us to TRU 2005 RE I,
LLC, an affiliate of Toys "R" Us, to trigger the rent increase in
Section 2.03.
The Bankruptcy Court did not err when concluding that Section 2.03
offended 11 U.S.C. section 365(f) because that provision restricted
the ability to assign the Lease. Because the Bankruptcy Court found
that an assignment and sale of the Lease to Southwestern Furniture
would trigger Section 2.03, raising the rent by roughly forty
percent, from $23,000 per month to nearly $33,000 per month, the
Bankruptcy Court correctly concluded that Section 2.03 functioned
as an anti-assignment clause in violation of section 365(f).
The Bankruptcy Court also did not err when it determined that
Section 2.03 constitutes an unenforceable anti-assignment clause
because, if enforced, that provision would increase the amount of
monthly rent owed upon assignment of the Lease to Southwestern
Furniture. Simply put, monthly rent is an obligation under the
Lease. Enforcing Section 2.03 as to Southwestern Furniture
increases that obligation. As a result, because applying Section
2.03 would modify the obligations under the Lease, the Bankruptcy
Court did not err when it concluded that the provision violates 11.
U.S.C. section 365(f)(3).
A copy of the Court's Memorandum Opinion dated March 4, 2020 is
available at https://bit.ly/3abIhP4 from Leagle.com.
18601 Alderwood Mall Pkwy LLC, Appellant, represented by Corey S.
Booker -- cbooker@wtplaw.com -- Whiteford Taylor & Preston LLP,
Anastasia Lauren McCusker -- alm@shapirosher.com -- Shapiro, Sher,
Guinot & Sandler, pro hac vice, Jennifer Ellen Wuebker --
jwuebker@Hunton.com -- Hunton Andrews Kurth LLP & Joel Ira Sher,
Shapiro, Sher, Guinot & Sandler, pro hac vice.
Propco I Debtors & Hill Street Properties, LLC, Appellees,
represented by Michael Allen Condyles, Kutak Rock LLP, Jeremy Shane
Williams -- jeremy.williams@kutakrock.com -- Kutak Rock LLP & Peter
John Barrett -- peter.barrett@kutakrock.com -- Kutak Rock LLP.
Southwestern Furniture of Wisconsin, LLC, Intervenor, represented
by William Daniel Prince, IV -- wprince@t-mlaw.com -- Thompson
McMullan PC.
About Toys "R" Us
Toys "R" Us, Inc., was an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey, in
the New York City metropolitan area. Merchandise was sold in 880
Toys "R" Us and Babies "R" Us stores in the United States, Puerto
Rico and Guam, and in more than 780 international stores and more
than 245 licensed stores in 37 countries and jurisdictions.
Merchandise was also sold at e-commerce sites including Toysrus.com
and Babiesrus.com.
On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts, and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the company.
Toys "R" Us became a privately owned entity but still filed with
the U.S. Securities and Exchange Commission as required by its debt
agreements.
Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017. In addition, the Company's Canadian
subsidiary voluntarily commenced parallel proceedings under the
Companies' Creditors Arrangement Act ("CCAA") in Canada in the
Ontario Superior Court of Justice. The Company's operations
outside of the U.S. and Canada, including its 255 licensed stores
and joint venture partnership in Asia, which are separate entities,
were not part of the Chapter 11 filing and CCAA proceedings.
The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.
Judge Keith L. Phillips presides over the Chapter 11 cases.
In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis
International LLP serve as the Debtors' legal counsel. Kutak Rock
LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal
North America, LLC as its restructuring advisor; and Lazard Freres
& Co. LLC as its investment banker. It hired Prime Clerk LLC as
claims and noticing agent. Consensus Advisory Services LLC and
Consensus Securities LLC, serve as sale process investment banker.
A&G Realty Partners, LLC, serves as its real estate advisor.
On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors. The Committee retained
Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott
Rivers, P.C., as local counsel; FTI Consulting, Inc., as financial
advisor; and Moelis & Company LLC as investment banker.
Grant Thornton is the monitor appointed in the CCAA case.
Toys "R" Us UK
Toys "R" Us Limited, Toys "R" Us, Inc.'s UK arm with 105 stores
and
3,000 employees, was sent into administration in the United
Kingdom
in February 2018.
Arron Kendall and Simon Thomas of Moorfields Advisory Limited were
appointed Joint Administrators on Feb. 28, 2018. The
Administrators
now manage the affairs, business and property of the Company. The
Administrators act as agents only and without personal liability.
Liquidation of U.S. Stores
Toys "R" Us, Inc., on March 15, 2018, filed with the U.S.
Bankruptcy Court a motion seeking Bankruptcy Court approval to
start the process of conducting an orderly wind-down of its U.S.
business and liquidation of inventory in all 735 of the Company's
U.S. stores, including stores in Puerto Rico.
Propco I Debtors
Toys "R" Us Property Company I, LLC and its subsidiaries own fee
and leasehold interests in more than 300 properties in the United
States. The Debtors lease the properties on a triple-net basis
under a master lease to Toys-Delaware, the operating entity for
all
of TRU's North American businesses, which operates the majority of
the properties as Toys "R" Us stores, Babies "R" Us stores or
side-by-side stores, or subleases them to alternative retailers.
Toys "R" Us Property was founded in 2005 and is headquartered in
Wayne, New Jersey. Toys 'R' Us Property operates as a subsidiary
of
Toys "R" Us Inc.
Company LLC, MAP Real Estate LLC, TRU 2005 RE I LLC, TRU 2005 RE
II
Trust, and Wayne Real Estate Company LLC -- Propco I Debtors --
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
E.D. Va. Lead Case No. 18-31429) on March 20, 2018. The Propco I
Debtors sought and obtained procedural consolidation and joint
administration of their Chapter 11 cases, separate from the Toys
"R" Us Debtors' Chapter 11 cases.
The Propco I Debtors estimated assets of $500 million to $1
billion
and liabilities of $500 million to $1 billion.
Judge Keith L. Phillips presides over the Propco I Debtors' cases.
The Propco I Debtors hired Klehr Harrison Harvey Branzburg, LLP;
and Crowley, Liberatore, Ryan & Brogan, P.C., as co-counsel. The
Debtors also tapped Kutak Rock LLP. They hired Goldin Associates,
LLC, as financial advisors.
TRI-STATE ENTERPRISES: Court Approves Disclosure Statement
----------------------------------------------------------
Judge Jason D. Woodard has ordered that the Disclosure Statement
filed by Tri-State Enterprises, LLC, is conditionally approved.
April 17, 2020, is fixed as the last day for filing ballots
accepting or rejecting the Plan.
April 17, 2020, is fixed as the last day for filing and serving
written objections to the Disclosure Statement and confirmation of
the Plan.
April 28, 2020, at 10:00 a.m., in the Cochran U.S. Bankruptcy
Courthouse, 703 Highway 145 North, Aberdeen, MS, is fixed for the
hearing on final approval of the Disclosure Statement (if a written
objection has been timely filed) and for the evidentiary hearing on
confirmation of the Plan.
About Tri-State Enterprises
Tri-State Enterprises, LLC, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Miss. Case No. 19-10292) on Jan.
22, 2019. At the time of the filing, the Debtor was estimated to
have assets of less than $1 million and liabilities of less than
$500,000. The case is assigned to Judge Jason D. Woodard. The
Debtor hired the Law Offices of Craig M. Geno, PLLC, as its legal
counsel.
TRONOX INC: Court Junks Avoca Plaintiffs' Amended Complaint
-----------------------------------------------------------
In the case captioned STANLEY WALESKI, on his own behalf and on
behalf of all others similarly situated, Plaintiff, v. MONTGOMERY,
McCRACKEN, WALKER & RHOADS, LLP, et al., Defendants, Adv. Pro. No.
19-01087 (MEW) (Bankr. S.D.N.Y.), Bankruptcy Judge Michael E. Wiles
dismissed the Plaintiff's amended complaint with prejudice as
barred by the statute of limitations.
Waleski filed suit on his own behalf and on behalf of a purported
class of persons who claim they were injured by exposures to
chemicals that were released from a plant in Avoca, Pennsylvania.
Waleski alleges that Montgomery, McCracken, Walker & Rhoads, LLP
("MMWR") committed legal malpractice in its representation of Mr.
Waleski and the Avoca Plaintiffs during the bankruptcy cases of
Tronox Incorporated and its affiliates and that as a result the
Avoca Plaintiffs' recoveries were less than they should have been.
Two individual defendants were named in the original Complaint but
have since been dropped from the action.
Plaintiff asserts claims that he characterizes as breach of
contract claims "arising from MMWR's action and inactions committed
while representing the [Plaintiff]." Plaintiff alleges that by
filing the Avoca Plaintiffs' collective claims in an "unknown"
amount rather than $5.3 billion, MMWR "undervalued and failed to
reflect the full value of the claims," resulting in reduced
recoveries. Plaintiff further alleges that it was an error and
breach of contract to fail to amend the proofs of claim or move to
liquidate the claims. Plaintiff alleges that if the Avoca
Plaintiffs' claims had been properly valued when originally filed,
or if the filing had been corrected by amendment, or if the claims
had been liquidated and fixed by an appropriate motion, the Avoca
Plaintiffs' claims would have been approved in the amount of $5.3
billion instead of the "greatly reduced amount of $949 million."
Plaintiff alleges that MMWR "was contractually obligated to file,
advocate, protect and maximize the claims of the Avoca Plaintiffs"
in the bankruptcy case and breached this contractual duty.
This action was filed on April 11, 2018. MMWR argues that
Plaintiff's claims are in reality tort claims (not breach of
contract claims) and that the claims therefore are barred by
Pennsylvania's two-year statute of limitations for tort claims.
Alternatively, MMWR argues that, even if Plaintiff were entitled to
assert breach of contract claims, those claims accrued prior to
April 11, 2014, and therefore they are barred by Pennsylvania's
four-year statute of limitations for contract claims. The Court
agrees with both contentions.
According to Judge Wiles, it is possible that a party who does
business with another party may be entitled to assert claims for
breach of contract as well as tort claims. However, there are often
instances in the law when parties try to treat a contract claim as
though it were a tort claim, or to treat a tort claim as though it
were a contract claim, in order to obtain a perceived advantage in
terms of the damages that may be awarded, the limitations period
that may apply, or for other reasons. Pennsylvania courts use the
"gist of the action" doctrine to resolve disputes as to whether a
particular claim sounds in tort or in contract. Bruno v. Erie Ins.
Co.
Plaintiff has argued that the "gist of the action" doctrine is only
applicable when someone asserts tort and contract claims at the
same time and that the doctrine does not apply when a plaintiff
chooses to characterize claims in only one way. However, there is
no logic to that assertion, Judge Waleski says, and no support for
it in the case law. It is true that in some of the cited decisions
plaintiffs sought to pursue both tort and contract claims, but none
of the decisions cited that as a factor that is relevant in any way
to the application of the "gist of the action" doctrine. Instead,
Judge Waleski explains, the doctrine was described as one of
general applicability, and at least one of the decisions cited
above involved a case where (as here) the plaintiff sought to
characterize a legal malpractice claim as a contract claim and did
not otherwise seek to pursue a tort claim.
Plaintiff argues that rulings about the "gist of the action"
require the resolution of factual issues and can only be made by a
jury at trial. However, the Bruno decision contemplates that a
court should determine the correct character of a claim based on
the pleadings. In any event, Plaintiff has not identified any
factual issues that need to be resolved, and the Court can think of
none.
The Court, therefore, concludes that the allegations in the Amended
Complaint assert tort claims, not contract claims, and that the
claims are barred by Pennsylvania's two-year statute of
limitations. Even if the Amended Complaint properly asserted
breach of contract claims, and even if a four-year statute of
limitations applied, the claims asserted in the Amended Complaint
would still be time-barred.
Under Pennsylvania law, the time within which an action must be
commenced is computed "from the time the cause of action accrued."
An action accrues "when the plaintiff could have first maintained
the action to a successful conclusion."
In this case, the lawsuit was commenced on April 11, 2018.
Plaintiff asserts that the claims did not accrue until July 7, 2014
at the earliest -- the date to file objections to the Bankruptcy
Court's report recommending to the District Court that it approve
the settlement of the fraudulent transfer claims -- on the theory
that damages are a critical element of such a suit and based on the
contention that the Avoca Plaintiffs could not assess the amount of
damages until after the objection deadline for approval of the
fraudulent transfer settlement had expired.
Plaintiff's contention is misguided, Judge Waleski says.
Pennsylvania contract law recognizes a party's entitlement to at
least nominal damages immediately upon the occurrence of a material
breach of a contract.
Thus, all of the claims asserted in the Amended Complaint are
barred by the applicable statutes of limitation, and the Amended
Complaint should be dismissed, with prejudice.
A copy of the Court's Memorandum Decision dated Feb. 21, 2020 is
available at https://bit.ly/2wQkTYA from Leagle.com.
Stanley Waleski, on his own behalf and on behalf of all others
similarly situated, Plaintiff, represented by Richard G. Haddad ,
Otterbourg Steindler Houston & Rosen P.C, Scott Michael Hare , Law
Office of Scott M. Hare, Ashley Keller -- ack@kellerlenkner.com --
Keller Lenkner LLC, Travis D. Lenkner -- tdl@kellerlenkner.com --
Keller Lenkner LLC & Seth Meyer -- sam@kellerlenkner.com -- Keller
Lenkner LLC.
Montgomery, McCracken, Walker & Rhoads, LLP, Natalie D. Ramsey &
Leonard A. Busby, Defendants, represented by Daniel Brier --
dbrier@mbklaw.com -- Myers Brier & Kelly, LLP, Suzanne Conaboy --
sconaboy@mbklaw.com -- Myers, Brier & Kelly, LLP, Robert P. Johnson
-- Rob.Johnson@ThompsonHine.com -- Thompson Hine LLP, Barry M.
Kazan -- Barry.Kazan@ThompsonHine.com -- Thompson Hine LLP, Emily
G. Moniton , Thompson Hine LLP, Emily Montion , Thompson Hine LLP &
Donna A. Walsh – dwalsh@mbklaw.com -- Myers Brier & Kelly, LLP.
About Tronox Inc.
Tronox Inc., a/k/a New-Co Chemical, Inc., and 14 other affiliates
filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No.
09-10156) on Jan. 13, 2009, before Hon. Allan L. Gropper. Richard
M. Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq.,
at Kirkland & Ellis LLP in New York, represented the Debtors. The
Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel;
Rothschild Inc. as investment bankers; Alvarez & Marsal North
America LLC, as restructuring consultants; and Kurtzman Carson
Consultants served as notice and claims agent.
An official committee of unsecured creditors and an official
committee of equity security holders were appointed in the cases.
The Creditors Committee retained Paul, Weiss, Rifkind, Wharton &
Garrison LLP as counsel.
Until Sept. 30, 2008, Tronox was publicly traded on the New
York Stock Exchange under the symbols TRX and TRX.B. Since then,
Tronox has traded on the Over the Counter Bulletin Board under the
symbols TROX.A.PK and TROX.B.PK. As of Dec. 31, 2008, Tronox
had 19,107,367 outstanding shares of class A common stock and
22,889,431 outstanding shares of class B common stock.
On Nov. 17, 2010, the Bankruptcy Court confirmed the Debtors'
First Amended Joint Plan of Reorganization under Chapter 11 of the
Bankruptcy Code, dated Nov. 5, 2010. Under the Plan, Tronox
reorganized around its existing operating businesses, including
its facilities at Oklahoma City, Oklahoma; Hamilton, Mississippi;
Henderson, Nevada; Botlek, The Netherlands and Kwinana, Australia.
UFS HOLDINGS: S&P Downgrades ICR to 'CCC'; Outlook Negative
-----------------------------------------------------------
S&P Global Ratings downgraded U.S.-based chemical producer UFS
Holdings Inc.'s issuer credit rating to 'CCC' from 'B-'.
At the same time, S&P is lowering its issue-level rating on the
company's revolver and first-lien term loan to 'CCC+' from 'B' and
its issue-level rating on the company's second-lien term loan to
'CC' from 'CCC'. S&P's '2' (rounded estimate: 70%) recovery rating
on the revolver and first-lien loan and '6' (rounded estimate: 5%)
recovery rating on the second-lien loan remain unchanged.
"We think UFS will likely breach its financial covenants over the
next 12 months, absent potential positive developments, which
increases the risk of a debt restructuring. Given our base-case
assumption for a U.S. recession, we believe the risk is high that
the company will breach its covenants absent an equity cure or a
waiver or amendment from its lenders. While the company could
negotiate with its lenders for a covenant waiver or request an
equity cure from its sponsor, we believe that with the passage of
time, credit risks related to this situation are increasing,
especially given our view that credit markets will be less
supportive in a recessionary environment. It is our understanding
that all of UFS's debt (including the first- and second-lien term
loans) will be accelerated and become due immediately if it
breaches its covenants without a cure. We do not believe that the
company has enough financial flexibility to weather a crisis that
reduces its top-line revenue. Our rating downgrade factors a
combination of weaker operating results and risk related to
covenant compliance and the ensuing maturity of large amounts of
debt," S&P said.
The negative outlook reflects that S&P will lower its rating on UFS
if the company appears unable to avoid the consequence of violating
its covenants, including an acceleration of some of its debt, or if
the company announces a distressed exchange or restructuring.
"We could lower our ratings over the next 12 months if liquidity
weakens further as a result of a covenant violation or if a
default, restructuring, or distressed exchange appears inevitable,"
S&P said.
"We could raise our rating on UFS if we believe its operating
performance will improve and we expect it to maintain adequate
headroom under its financial maintenance covenant over the next 12
months. Before raising our rating, we would expect the company to
have a solid plan to address its term loan covenants and
maturities," the rating agency said.
USA COMPRESSION: S&P Alters Outlook to Negative, Affirms B+ ICR
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on USA
Compression Partners L.P. and revised the outlook to negative from
stable.
S&P's recovery rating on the company's debt remains '4', indicating
its expectation of average (30%-50%; rounded estimate: 35%)
recovery in the event of a default
"We expect current market conditions to pressure service rates. We
revised the outlook to negative based on our expectation that there
will be pressure on service rates due to a material decline in
energy commodity prices in 2020. We expect the company and its
compression peers will face a more challenging marketplace for the
remainder of 2020 and 2021, as producers reevaluate their
development timelines and production forecasts. We expect
revenue-generating horsepower to remain at the same levels as of
Dec. 31, 2019, due to USAC's contract profile with top 10 customers
having fixed-fee take-or-pay contracts. However, given the declines
in energy commodity prices, the competitive nature of the
compression industry, and the high switching costs, we expect that
customers will ask for discounts and pressure service rates," S&P
said.
The negative outlook reflects S&P's expectation of reduced demand
for USAC's compression services. It expects an adjusted debt to
EBITDA approaching 6x over the next 12 months. It also expects the
partnership to have adequate liquidity under its credit facility
and that the distribution coverage ratio of about 1.0x will be
under pressure.
"We could lower the rating if debt to EBITDA exceeds 6.0x on a
sustained basis, and we do not see a clear path for improvement, or
if liquidity becomes constrained," S&P said.
"We could revise the outlook to stable if we see considerable
improvement in USAC's financial risk profile, namely adjusted debt
to EBITDA trending toward 5.0x on a sustained basis and stronger
distribution coverage above 1x," the rating agency said.
VENUS CONCEPT: EWHP Investors Own 33.3% of Preferred Shares
-----------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, these entities and individuals reported beneficial
ownership of shares of preferred stock, par value $0.0001 per
share, of Venus Concept, Inc. as of March 18, 2020:
Shares Percent
Beneficially of
Reporting Person Owned Class
---------------- ------------- --------
EW Healthcare Partners L.P. 12,667,742 32.03%
EW Healthcare Partners-A L.P. 509,233 1.29%
Essex Woodlands Fund IX-GP, L.P. 13,176,975 33.31%
Essex Woodlands IX, LLC 13,176,975 33.31%
Martin P. Sutter 13,176,975 33.31%
R. Scott Barry 13,176,975 33.31%
Ronald Eastman 13,176,975 33.31%
Petri Vainio 13,176,975 33.31%
Steve Wiggins 13,176,975 33.31%
A full-text copy of the Form 10-K is available for free at:
https://is.gd/z6dTaV
About Venus Concept
Headquartered in Toronto, Ontario, Venus Concept --
https://www.venusconcept.com/ -- is an innovative global medical
aesthetic technology company with a broad product portfolio of
minimally invasive and non-invasive medical aesthetic and hair
restoration technologies and reach in over 60 countries and 29
direct markets. Venus Concept focuses its product sales strategy
on a subscription-based business model in North America and in its
well-established direct global markets. Venus Concept's product
portfolio consists of aesthetic device platforms, including Venus
Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus
Freeze Plus, and Venus Bliss. Venus Concept's hair restoration
systems includes NeoGraft, an automated hair restoration system
that facilitates the harvesting of follicles during a FUE process
and the ARTAS and ARTAS iX Robotic Hair Restoration Systems, which
harvest follicular units directly from the scalp and create
recipient implant sites using proprietary algorithms.
Venus Concept reportied a net loss of $42.29 million for the year
ended Dec. 31, 2019, compared to a net loss of $14.21 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$191.13 million in total assets, $114.45 million in total
liabilities, and $76.68 million in stockholders' equity.
MNP LLP, in Toronto, Canada, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
30, 2020 citing that the Company has reported recurring net losses
and negative cash flows from operations, which raises substantial
doubt about the Company's ability to continue as a going concern.
VERICAST CORP: S&P Lowers Senior Secured Debt Rating to 'CCC+'
--------------------------------------------------------------
S&P Global Ratings lowered its issue-level rating on Vericast
Corp.'s senior secured debt to 'CCC+' from 'B-' and revised its
recovery rating on the debt to '3' from '2'. The '3' recovery
rating indicates its expectation for meaningful recovery (50%-70%;
rounded estimate: 65%) of principal in a hypothetical payment
default.
"We lowered our issue-level rating and revised our recovery rating
on the senior secured debt to reflect the company's new $325
million 12.5% senior secured notes due 2024, which it recently
placed to facilitate a partial exchange for its outstanding 9.25%
senior unsecured notes due 2021. We believe the exchange of the
unsecured notes for secured notes reduced the recovery prospects
for the lenders of the company's secured debt relative to our
estimated enterprise value at default," S&P said.
S&P's 'CCC+' issuer credit rating and negative outlook on Vericast
reflect its view that the company's capital structure will remain
challenged due to its elevated leverage (above the 7x area),
revenue pressures stemming from the secular decline in print
advertising, and expected operational challenges due to the
coronavirus pandemic.
"We could lower our issuer credit rating on Vericast if we
anticipate a payment default or distressed debt restructuring in
the next 12 months," S&P said.
"Although unlikely, we could raise our rating on the company if we
are convinced it can sustain leverage of less than 5.5x, a free
operating cash flow-to-debt ratio of more than 5%, and return to
organic revenue and EBITDA growth," the rating agency said.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario contemplates a payment default
occurring in 2021 due to a confluence of factors, including an
economic downturn, an acceleration of structural trends (such as
declines in print check volumes and market acceptance of new coupon
marketing solutions, including online coupons), and an inability to
refinance its current capital structure.
-- S&P believes the company's lenders would pursue a
reorganization rather than a liquidation in a hypothetical default
due to the demand for paper checks and related products from small
to mid-size businesses and the company's direct mail marketing
turnkey solutions.
-- The company's capital structure comprises the following three
classes of debt: an unrated priority $250 million asset-based
lending (ABL) revolving credit facility due 2022, a secured class
($1.564 billion outstanding on the secured term loan maturing in
2023 as of Dec. 31, 2019, and senior secured notes with $1.125
billion outstanding maturing in 2022 and 2024), and an unsecured
class ($361 million of outstanding senior unsecured notes due
2021).
-- Vericast Corp. and certain domestic subsidiaries are the
borrowers or issuers of the company's debt. The ABL facility
benefits from a first-priority lien on inventory, receivables,
payment intangibles, and other current assets and a second-priority
lien on the remaining collateral. The senior secured term loan and
senior secured notes rank pari passu, are guaranteed by the
company's domestic subsidiaries, and rank junior to the ABL lenders
up to the value of their collateral. The senior secured lenders
benefit from a first- priority lien on the non-ABL collateral.
-- Other default assumptions include a 60% draw on the ABL
revolving credit facility, LIBOR is 2.5%, and all debt amounts
include six months of prepetition interest.
Simulated default assumptions
-- Simulated year of default: 2021
-- EBITDA at emergence: About $410 million
-- Implied enterprise value multiple: 5.0x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $2.0
billion
-- Senior secured debt: $2.7 billion
-- Recovery expectations: 50%-70% (rounded estimate: 65%)
-- Senior unsecured debt and pari passu claims: $1.3 billion
-- Recovery expectations: 0%-10% (rounded estimate: 0%)
VINES AT TABOR: Taps Gabriel Liberman as Legal Counsel
------------------------------------------------------
The Vines at Tabor received approval from the U.S. Bankruptcy Court
for the Eastern District of California to hire the Law Offices of
Gabriel Liberman, APC 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.
Gabriel Liberman, Esq., the firm's attorney who will be handling
the case, charges an hourly fee of $300. Paraprofessionals charge
$150 per hour.
The Debtor paid the firm a pre-bankruptcy retainer in the sum of
$20,000.
The firm and its attorneys are "disinterested" within the meaning
of Section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Gabriel E. Liberman, Esq.
Law Offices of Gabriel Liberman, APC
1545 River Park Drive, Suite 530
Sacramento, California 95815
Telephone: (916) 485-1111
Facsimile: (916) 485-1111
Email: Gabe@4851111.com
About The Vines at Tabor
The Vines at Tabor, a California limited partnership, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.
Cal. Case No. 20-20975) on Feb. 24, 2020. At the time of the
filing, the Debtor disclosed assets of between $1,000,001 and $10
million and liabilities of the same range. Judge Christopher D.
Jaime oversees the case. The Debtor tapped the Law Offices of
Gabriel Liberman, APC, as its legal counsel.
VISTAGEN THERAPEUTICS: Receives Noncompliance Notice from Nasdaq
----------------------------------------------------------------
VistaGen Therapeutics, Inc., received a letter from the Listing
Qualifications Staff of The Nasdaq Stock Market, LLC on March 30,
2020, notifying the Company that the listing of its shares of
common stock, par value $0.001 per share, was not in compliance
with Nasdaq Listing Rule 5550(b)(2) (the "MVLS Rule") for continued
listing on the Nasdaq Capital Market, as the market value of the
Company's listed securities was less than $35 million for the
previous 30 consecutive business days. Under Nasdaq Listing Rule
5810(c)(3)(C), the Company has a period of 180 calendar days, or
until Sept. 28, 2020, to regain compliance with the MVLS Rule. To
regain compliance, during this 180-day compliance period, the
market value of the Company's listed securities must be $35 million
or more for a minimum of 10 consecutive business days.
The Letter has no immediate effect on the continued listing status
of the Company's Common Stock on the Nasdaq Capital Market, and,
therefore, the Company's listing remains fully effective.
The Company said there can be no assurance that it will regain
compliance with the MVLS Rule during the 180-day period in which to
regain compliance or maintain compliance with the other Nasdaq
listing requirements. Regardless of any outcome in connection with
the MVLS Rule, as disclosed in the Company's Current Report on Form
8-K, filed on Jan. 31, 2020, if the Company fails to regain
compliance with the minimum bid price requirement set forth in
Nasdaq Listing Rule 5550(a)(2) for at least ten consecutive
business days prior to July 29, 2020, its Common Stock will
continue to be subject to delisting by Nasdaq, provided, however,
that, if such requirement is not met by
July 29, 2020, Nasdaq may grant the Company a second 180 calendar
day period to regain compliance if, by such date, the Company (i)
is in compliance with the MVLS Rule and all other initial listing
standards for the Nasdaq Capital Market, other than the minimum
closing bid price requirement and (ii) notifies Nasdaq of its
intent to cure the deficiency.
About VistaGen
Headquartered in San Francisco, California, VistaGen Therapeutics
-- http://www.vistagen.com/-- is a clinical-stage
biopharmaceutical
company developing new generation medicines for CNS diseases and
disorders where current treatments are inadequate, resulting in
high unmet need. VistaGen's pipeline is focused on clinical-stage
CNS drug candidates with a differentiated mechanism of action, an
exceptional safety profile in all clinical studies to date, and
therapeutic potential in multiple large and growing CNS markets.
VistaGen reported a net loss attributable to common stockholders of
$25.73 million for the fiscal year ended March 31, 2019, compared
to a net loss attributable to common stockholders of $15.57 million
for the year ended March 31, 2018. As of Dec. 31, 2019, the
Company had $5.33 million in total assets, $11.42 million in total
liabilities, and a total stockholders' deficit of $6.09 million.
OUM & CO. LLP, in San Francisco, California, the Company's auditor
since 2006, issued a "going concern" qualification in its report
dated June 25, 2019, citing that the Company has not yet generated
sustainable revenues, has suffered recurring losses and negative
cash flows from operations and has minimal stockholders' equity,
all of which raise substantial doubt about its ability to continue
as a going concern.
WALL STREET: To Seek Plan Confirmation on April 27
--------------------------------------------------
Judge Philip J. Shefferly has ordered that the Disclosure Statement
explaining the Chapter 11 Plan filed by debtor Wall Street
Productions, Ltd., is granted preliminary approval, subject to any
timely and proper objections.
The deadline to return ballots on the Plan, as well as to file
objections to final approval of the adequacy of the information in
the disclosure statement and objections to confirmation of the plan
is April 20, 2020.
The hearing on objections to final approval of the adequacy of the
information in the Disclosure Statement and confirmation of the
Plan will be held on April 27, 2020 at 2:00 p.m., before the
Honorable Phillip J. Shefferly, United States Bankruptcy Judge, in
Courtroom 1975, 211 West Fort Street, Detroit, Michigan 48226.
About Wall Street Productions
Wall Street Productions, LTD, d/b/a Wall Street Music; d/b/a Wall
Street Productions; and d/b/a Museum Magic, is a promotional video
production specialist in Southfield, Michigan.
Wall Street Productions sought Chapter 11 protection (Bankr. E.D.
Mich. Case No. 19-53212) on Sept. 16, 2019, in Detroit, Michigan.
In the petition signed by Timothy Rochon, president, the Debtor
disclosed $64,442 in total assets and $1,015,719 in total
liabilities as of the Petition Date. The petition was signed by
Timothy Rochon, president. The case is assigned to Judge Phillip
J. Shefferly. GUDEMAN & ASSOCIATES, P.C., is the Debtor's counsel.
WESTWIND MANOR: Court Approves Disclosure Statement
---------------------------------------------------
Judge David R. Jones has ordered that the Disclosure Statement
filed by Westwind Manor Resort Association, Inc., et al., contains
adequate information in accordance with section 1125 of the
Bankruptcy Code and is approved as complying with the Bankruptcy
Code and Bankruptcy Rules in all respects.
The ballots, substantially in the forms are approved.
The hearing to consider confirmation of the Plan will be held on
June 15, 2020 at 2:00 p.m. (Central Time).
Any responses or objections to the confirmation of the Plan must be
filed and served on or before June 5, 2020.
The Debtors shall file the Plan Supplement on or before May 8,
2020.
About Westwind Manor Resort Association
Westwind Manor Resort Association, Inc., and its subsidiaries
operate two distinct business segments. Warrior Custom Golf
focuses on the manufacture and sale of custom golf clubs. Warrior
Acquisitions manages affiliates, like Warrior Golf, LLC, which own
and manage golf courses.
Warrior Custom Golf was founded in 1998 by Brendan Flaherty. It
develops, manufactures, markets and sells affordable custom golf
clubs and related equipment worldwide. Warrior Custom Golf's
products are custom built to the specifications of each customer.
Warrior Acquisitions is the manager of six entities that own and
operate 18 golf courses and parcels of land located throughout the
United States. Both segments of the business are headquartered in
Irvine, Calif.
Westwind Manor Resort Association and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 19-50026) on March 4, 2019.
The Debtors were estimated to have both assets and debt between $1
million and $10 million.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; Sidley
Austin LLP, as special counsel; ForceTen Partners LLC as financial
advisor; and Donlin, Recano & Company, Inc. as claims and noticing
agent.
Henry Hobbs Jr., the acting U.S. trustee for Region 7, appointed an
official committee of unsecured creditors on March 19, 2019. The
committee is represented by Cozen O'Connor.
WESTWIND MANOR: Unsecureds to Recover 6% to 30% in Plan
-------------------------------------------------------
Westwind Manor Resort Association, Inc. and its affiliated debtors
with the Official Committee of Unsecured Creditors filed the First
Amended Disclosure Statement for the First Amended Joint Plan of
Reorganization.
Under the Plan, the Creditor Trust will own all of the equity of
the three post-Effective Date entities -- Reorganized Custom Golf,
Op.Co. and Prop.Co. -- collectively defined as the Reorganized
Debtors in the Plan.
The Creditor Trustee will be Jeremy Rosenthal (the current CRO of
the Debtors). Mr. Rosenthal's proposed Trustee compensation is
currently contemplated to be determined on an hourly basis based on
his then prevailing hourly rate for professional services.
Reorganized Custom Golf is and will remain a California
Corporation, and its Board of Directors will initially consist of 7
members. Op.Co., and Prop.Co. will each be limited liability
companies. The Managers of Op.Co. and Prop.Co. will be the same as
the members of the Board of Directors of Reorganized Custom Golf.
It is anticipated that on the Effective Date of the Plan, that the
officers of the Reorganized Debtors will remain as currently
existing: Jeremy Rosenthal - Chief Executive Officer; and Dave
Cottrell - CFO. Following the Effective Date of the Plan, the
Custom Golf Board will consider retaining new executive officers as
appropriate in the operation of the Reorganized Debtors.
The distributions to Allowed General Unsecured Creditors, LLC
Investors and Convertible Noteholders will come from the sale of
golf courses, and the operating improvements and the efficient
management of the Golf Equipment Business. The golf courses will
be operated for a period to improve values and ultimately will be
sold. The Golf Equipment Business will continue to be improved
with an intention to ultimately sell the business as a going
concern.
Class 4 General Unsecured Claims will recover 6% to 30% in the form
of a pro rata share of the Class A interests in the Creditor Trust.
Class 5 Investment Claims will recover 2% to 10% in the form of a
pro rata share of the Class B interests in the Creditor Trust.
Class 6 Convertible Note Claims will recover 2% to 10% in the form
of a pro rata share of the Class C interests in the Creditor
Trust.
A full-text copy of the Amended Disclosure Statement dated March
20, 2020, is available at https://tinyurl.com/uvwyl74 from
PacerMonitor at no charge.
Counsel for the Debtors:
Michael D. Warner
Benjamin L. Wallen
COLE SCHOTZ P.C.
301 Commerce Street, Suite 1700
Ft. Worth, TX 76102
Tel: (817) 810-5250
Fax: (817) 810-5255
E-mail: mwarner@coleschotz.com
bwallen@coleshotz.com
About Westwind Manor Resort Association
Westwind Manor Resort Association, Inc., and its subsidiaries
operate two distinct business segments. Warrior Custom Golf focuses
on the manufacture and sale of custom golf clubs. Warrior
Acquisitions manages affiliates, like Warrior Golf, LLC, which own
and manage golf courses.
Warrior Custom Golf was founded in 1998 by Brendan Flaherty. It
develops, manufactures, markets and sells affordable custom golf
clubs and related equipment worldwide. Warrior Custom Golf's
products are custom built to the specifications of each customer.
Warrior Acquisitions is the manager of six entities that own and
operate 18 golf courses and parcels of land located throughout the
United States. Both segments of the business are headquartered in
Irvine, Calif.
Westwind Manor Resort Association and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 19-50026) on March 4, 2019.
The Debtors were estimated to have both assets and debt between $1
million and $10 million.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Cole Schotz P.C. as bankruptcy counsel; Sidley
Austin LLP, as special counsel; ForceTen Partners LLC as financial
advisor; and Donlin, Recano & Company, Inc. as claims and noticing
agent.
Henry Hobbs Jr., the acting U.S. trustee for Region 7, appointed an
official committee of unsecured creditors on March 19, 2019. The
Committee is represented by Cozen O'Connor.
WORKDAY INC: Egan-Jones Lowers Sr. Unsec. Ratings to B
------------------------------------------------------
Egan-Jones Ratings Company, on March 27, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Workday, Incorporated to B from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
Workday, Incorporated is an American on-demand financial management
and human capital management software, vendor. It was founded by
David Duffield, founder and former CEO of ERP company PeopleSoft,
and former PeopleSoft chief strategist Aneel Bhusri following
Oracle's hostile takeover of PeopleSoft in 2005.
[*] S&P Takes Various Rating Actions on Physical Therapy Providers
------------------------------------------------------------------
In the context of the pandemic, S&P Global Ratings views physical
therapy services as relatively discretionary compared with other
health care services, because most patients have a relatively low
level of acuity.
"Although difficult to quantify, we expect the COVID-19 pandemic to
materially reduce revenue for outpatient PT providers over the next
few months. We expect a significant increase in patient deferrals
even where regulations treat PT as "an essential service" (and may
therefore legally remain open) from patients apprehensive to
venture out more than necessary (for fear of the virus or being in
full quarantine). Although precautions can reduce the risk of
exposure (limiting number of patients at once, facility cleaning
etc.), PT sessions often occur in relatively close proximity to
other patients, involve physical interaction with the therapist,
and the use of exercise and other equipment. Moreover, we expect
revenue softness to be exacerbated by staffing shortages associated
with increased sick leave and absenteeism, for example, relating to
the closure of schools," S&P said.
Although Telehealth is gaining attention and adoptions by health
care providers, coverage for telehealth services provided by
physical therapists is still unclear, especially as therapy
sessions typically include specialized equipment and high-touch
interaction by the therapist.
"On the other hand, we believe companies can significantly reduce
their variable costs (labor) via furloughs or layoffs if needed,
but it would take some time to optimize employee hours in the
current environment. The option to furlough employees provides
companies the ability to significantly reduce expenses, but does
not offer the same degree of flexibility as with hourly employees.
That said, companies would still bear some fixed costs, including
rent, interest, corporate costs, and any employee benefits not
suspended," S&P said.
"Moreover, we expect a portion of patients will likely continue
treatment in person, despite any concerns about social distancing,
such as those recovering from a recent surgery or acute medical
condition or those whose workers compensation benefits depend on
the employee attending PT sessions etc.," the rating agency said.
Athletico Holdings LLC
"We are placing our 'B' rating on Athletico Holdings LLC on
CreditWatch with negative implications. During the pandemic, we
expect Athletico to focus on short-term liquidity by suspending its
growth strategy and drawing on its $100 million revolving credit
facility. Athletico generated about 50% of its 2019 revenue from
the state of Illinois, where officials have implemented
stay-at-home mandates that require the population to stay home for
everything except essential needs. We expect further mandates
across the U.S., which will likely lower volumes and materially
reduce revenue," S&P said.
Athletico's growth strategy is more conservative than peers (such
as ATI, Confluent, and Upstream), which helps support the company's
higher EBITDA margins (24%-26%), lower adjusted debt leverage
(5x-6x), and good free operating cash flows ($30 million-$40
million).
"We could lower the rating on Athletico if we expected leverage to
rise to 8x or above or if the ratio of discretionary cash flow to
debt fell below 3% in 2020, absent a belief that it would
significantly improve in 2021. We could also lower the rating if
the company pursued a renegotiation of any debt obligations,
including a delay in payments or principal that we would
characterize as a distressed exchange," S&P said.
"We expect to resolve the CreditWatch when we have further clarity
on the financial impact to the company's operations. Although we
expect the duration of the pandemic to be temporary, there is
uncertainty as to when social distancing initiatives might
significantly ease in the U.S., allowing volumes to recover to
historical levels," the rating agency said.
ATI Holdings Acquisition LLC
S&P is lowering the issuer credit rating on ATI Holdings
Acquisition LLC to 'B-' from 'B' (and instrument ratings one notch)
and placing the ratings on CreditWatch with negative implications.
The downgrade reflects the company's already elevated leverage and
negligible free operating cash flow expectations. S&P expects the
company to focus on short-term liquidity by suspending its growth
strategy and drawing on its $70 million revolving credit facility.
ATI has a significant concentration in the state of Illinois, where
officials have implemented stay-at-home mandates, which require the
population to stay home for everything except essential needs. S&P
expects further mandates across the U.S., which will likely lower
volumes and materially reduce revenues.
Despite ATI's improving financial metrics in the first three
quarters of 2019, leverage remains very high, at 9x as of Sept. 30,
2019. S&P expects lower patient traffic to cause leverage to remain
above 9x or to possibly rise further. It expects ATI Holdings'
liquidity to tighten and estimate that its cash on hand and
available sources of liquidity would cover fixed charges for only
the next several months, in the event that there is negligible
EBITDA in second and third quarters in 2020.
"We could lower the rating on ATI Holdings further if the company
generated large cash flow deficits leading to constrained
liquidity. We could also lower the rating if the company pursued a
renegotiation of any debt obligations, including a delay in
payments or principal that we would characterize as a distressed
exchange," S&P said.
"We expect to resolve the CreditWatch when we have further clarity
on the financial impact to the company's operations. Although we
expect the duration of the pandemic to be temporary, there is
uncertainty as to when social distancing initiatives might
significantly ease in the U.S., allowing volumes to recover to
historical levels," the rating agency said.
Upstream Newco Inc.
"We are placing our 'B' rating on Upstream Newco Inc. on
CreditWatch with negative implications. We expect the company to
focus on short-term liquidity by suspending its growth strategy and
drawing on its $50 million revolving credit facility. Although the
company operates largely in southeastern U.S. (largest state is
Georgia, at 26% of revenues) and has not seen significant
disruption from the stay-at-home mandates, some cities have
implemented mandates, including Atlanta, and we expect more states
to implement restrictions across the U.S., likely lowering volumes
and materially reducing revenues," S&P said.
Upstream has grown rapidly in recent years as the third-largest
provider of outpatient rehabilitation, with clinics growing to over
700 from about 305 in 2015, including a large acquisition in 2018
that added 160 clinics. Upstream implements a therapist partnership
model allowing it to implement an aggressive growth strategy
relative to peers, with approximately 75-100 annual de novo clinics
(compared with Athletico's 35-40 de novos annually). Upstream
operates with good free operating cash flows of about $30
million-$50 million annually at modest leverage levels (6x-6.5x).
"We could lower the rating if we expected adjusted leverage to rise
to about 8x with negligible free operating cash flows, likely from
a significant drop in EBITDA stemming from reduced demand, absent a
belief that it would significantly improve in 2021. We could also
lower the rating if the company pursued a renegotiation of any debt
obligations, including a delay in payments or principal that we
would characterize as a distressed exchange," S&P said.
"We expect to resolve the CreditWatch when we have further clarity
on the financial impact to the company's operations. Although we
expect the duration of the pandemic to be temporary, there is
uncertainty as to when social distancing initiatives might
significantly ease in the U.S., allowing volumes to recover to
historical levels," the rating agency said.
Confluent Health LLC
"We are placing our 'B-' rating on Confluent Health LLC on
CreditWatch with negative implications. Although Confluent has a
more diversified business, 85% of its revenues come from outpatient
rehabilitation services, and it has limited scale of about 200
clinics across the U.S. We believe the company's two other segments
are more resilient through the pandemic with the educational
services business being almost entirely on-line and the
occupational health and safety business seeing little disruption."
However, this assessment could change as employees increasingly
work remotely," S&P said.
Confluent operates with a therapist partnership model and
implements a more conservative de novo growth strategy targeting
about 10 de novo clinics annually. The company's operations are
largely outside of the stay-at-home mandates, with over 55% of
revenues from Texas, Washington, and Oklahoma. However, as more
regions take cautionary measures, S&P believes the company will
start seeing revenue declines.
S&P expects the company to focus on short-term liquidity by
suspending its growth strategy and drawing on its $50 million
revolving credit facility.
"We could lower the rating if we concluded the company's liquidity
position would deteriorate more rapidly than we currently expected
or if the leverage spiked to higher-than-anticipated levels and
indicated an unsustainable capital structure. We could also lower
the rating if the company pursued a renegotiation of any debt
obligations, including a delay in payments or principal that we
would characterize as a distressed exchange," S&P said.
"We expect to resolve the CreditWatch when we have further clarity
on the financial impact to the company's operations. Although we
expect the duration of the pandemic to be temporary, there is
uncertainty as to when social distancing initiatives might
significantly ease in the U.S., allowing volumes to recover to
historical levels," the rating agency said.
Ratings List
To From
CreditWatch Action
Athletico Holdings LLC
Issuer Credit Rating B/Watch Neg/-- B/Stable/--
Upstream Newco Inc.
Issuer Credit Rating B/Watch Neg/-- B/Stable/--
Confluent Health LLC
Issuer Credit Rating B-/Watch Neg/-- B-/Stable/--
Downgraded; CreditWatch Action
ATI Holdings Acquisition LLC
Issuer Credit Rating B-/Watch Neg/-- B/Negative/--
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ABBVIE INC ABBV US 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB TE 89,115.0 (8,172.0) 33,934.0
ABBVIE INC ABBV AV 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB GZ 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB TH 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB QT 89,115.0 (8,172.0) 33,934.0
ABBVIE INC ABBVEUR EU 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB GR 89,115.0 (8,172.0) 33,934.0
ABBVIE INC ABBV SW 89,115.0 (8,172.0) 33,934.0
ABBVIE INC ABBV* MM 89,115.0 (8,172.0) 33,934.0
ABBVIE INC-BDR ABBV34 BZ 89,115.0 (8,172.0) 33,934.0
ABSOLUTE SOFTWRE ALSWF US 105.1 (46.5) (26.7)
ABSOLUTE SOFTWRE ABT CN 105.1 (46.5) (26.7)
ABSOLUTE SOFTWRE OU1 GR 105.1 (46.5) (26.7)
ABSOLUTE SOFTWRE ABT2EUR EU 105.1 (46.5) (26.7)
ACCELERATE DIAGN 1A8 GR 134.4 (7.4) 113.7
ACCELERATE DIAGN AXDX US 134.4 (7.4) 113.7
ACCELERATE DIAGN AXDX* MM 134.4 (7.4) 113.7
ADAPTHEALTH CORP AHCO US 546.1 (29.2) 30.5
AGILITI INC AGLY US 745.0 (67.7) 17.3
ALKAME HOLDINGS 1794056D EB 0.2 (4.9) (4.9)
AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2)
AMERICAN AIR-BDR AALL34 BZ 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE AAL TE 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE A1G SW 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE A1G GZ 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE AAL11EUR EU 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE AAL AV 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE A1G QT 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE AAL US 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE A1G GR 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE AAL* MM 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE A1G TH 59,995.0 (118.0) (10,105.0)
AUTODESK I - BDR A1UT34 BZ 6,179.3 (139.1) (559.9)
AUTODESK INC AUD GR 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK US 6,179.3 (139.1) (559.9)
AUTODESK INC AUD TH 6,179.3 (139.1) (559.9)
AUTODESK INC ADSKEUR EU 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK TE 6,179.3 (139.1) (559.9)
AUTODESK INC AUD GZ 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK AV 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK* MM 6,179.3 (139.1) (559.9)
AUTODESK INC AUD QT 6,179.3 (139.1) (559.9)
AUTOZONE INC AZ5 TH 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 GR 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 GZ 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO AV 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 TE 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO* MM 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZOEUR EU 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 QT 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO US 12,863.7 (1,711.1) (479.0)
AUTOZONE INC-BDR AZOI34 BZ 12,863.7 (1,711.1) (479.0)
AVID TECHNOLOGY AVID US 304.3 (155.1) (3.5)
AVID TECHNOLOGY AVD GR 304.3 (155.1) (3.5)
BENEFITFOCUS INC BNFTEUR EU 331.7 (25.6) 110.6
BENEFITFOCUS INC BNFT US 331.7 (25.6) 110.6
BENEFITFOCUS INC BTF GR 331.7 (25.6) 110.6
BEYONDSPRING INC BYSI US 34.1 22.3 21.9
BIOHAVEN PHARMAC 2VN TH 344.3 (7.4) 262.1
BIOHAVEN PHARMAC BHVN US 344.3 (7.4) 262.1
BIOHAVEN PHARMAC 2VN GR 344.3 (7.4) 262.1
BIOHAVEN PHARMAC BHVNEUR EU 344.3 (7.4) 262.1
BJ'S WHOLESALE C BJ US 5,269.8 (54.3) (441.4)
BJ'S WHOLESALE C 8BJ GR 5,269.8 (54.3) (441.4)
BJ'S WHOLESALE C 8BJ TH 5,269.8 (54.3) (441.4)
BJ'S WHOLESALE C 8BJ QT 5,269.8 (54.3) (441.4)
BLOOM ENERGY C-A 1ZB GR 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A BE1EUR EU 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A 1ZB QT 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A 1ZB TH 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A BE US 1,322.6 (167.9) (101.3)
BLUE BIRD CORP 4RB GR 360.9 (67.9) 29.9
BLUE BIRD CORP 4RB GZ 360.9 (67.9) 29.9
BLUE BIRD CORP BLBDEUR EU 360.9 (67.9) 29.9
BLUE BIRD CORP BLBD US 360.9 (67.9) 29.9
BOEING CO-BDR BOEI34 BZ 133,625.0 (8,300.0) 4,917.0
BOEING CO-CED BA AR 133,625.0 (8,300.0) 4,917.0
BOEING CO-CED BAD AR 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA TE 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BAEUR EU 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA EU 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BCO GR 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BOE LN 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BCO TH 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BOEI BB 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA US 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA SW 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA* MM 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BAUSD SW 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BCO GZ 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA AV 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BCO QT 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE BA CI 133,625.0 (8,300.0) 4,917.0
BOEING CO/THE TR TCXBOE AU 133,625.0 (8,300.0) 4,917.0
BOMBARDIER INC-B BBDBN MM 24,972.0 (5,911.0) (1,832.0)
BRINKER INTL BKJ GR 2,503.7 (568.9) (328.1)
BRINKER INTL EAT US 2,503.7 (568.9) (328.1)
BRINKER INTL BKJ QT 2,503.7 (568.9) (328.1)
BRINKER INTL EAT2EUR EU 2,503.7 (568.9) (328.1)
BRP INC/CA-SUB V B15A GR 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOOO US 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOOEUR EU 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V B15A GZ 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOO CN 3,767.1 (589.7) (211.9)
CADIZ INC CDZI US 76.7 (82.1) 11.3
CADIZ INC CDZIEUR EU 76.7 (82.1) 11.3
CADIZ INC 2ZC GR 76.7 (82.1) 11.3
CAMPING WORLD-A CWH US 3,376.2 (159.2) 394.7
CAMPING WORLD-A C83 GR 3,376.2 (159.2) 394.7
CAMPING WORLD-A CWHEUR EU 3,376.2 (159.2) 394.7
CAMPING WORLD-A C83 TH 3,376.2 (159.2) 394.7
CAMPING WORLD-A C83 QT 3,376.2 (159.2) 394.7
CATASYS INC CATS US 23.9 (23.9) 6.3
CATASYS INC HY1N GR 23.9 (23.9) 6.3
CATASYS INC CATSEUR EU 23.9 (23.9) 6.3
CATASYS INC HY1N GZ 23.9 (23.9) 6.3
CDK GLOBAL INC C2G QT 2,935.9 (627.0) 314.0
CDK GLOBAL INC CDK* MM 2,935.9 (627.0) 314.0
CDK GLOBAL INC CDKEUR EU 2,935.9 (627.0) 314.0
CDK GLOBAL INC C2G TH 2,935.9 (627.0) 314.0
CDK GLOBAL INC C2G GR 2,935.9 (627.0) 314.0
CDK GLOBAL INC CDK US 2,935.9 (627.0) 314.0
CEDAR FAIR LP FUN US 2,581.1 (10.0) (30.0)
CEDAR FAIR LP 7CF GR 2,581.1 (10.0) (30.0)
CEDAR FAIR LP FUN1EUR EU 2,581.1 (10.0) (30.0)
CHEWY INC- CL A CHWY US 932.3 (404.0) (470.7)
CHOICE HOTELS CZH GR 1,386.7 (23.5) (89.3)
CHOICE HOTELS CHH US 1,386.7 (23.5) (89.3)
CINCINNATI BELL CBB US 2,653.8 (140.0) (119.7)
CINCINNATI BELL CIB1 GR 2,653.8 (140.0) (119.7)
CINCINNATI BELL CBBEUR EU 2,653.8 (140.0) (119.7)
CLOVIS ONCOLOGY C6O GR 669.6 (174.3) 233.4
CLOVIS ONCOLOGY CLVS US 669.6 (174.3) 233.4
CLOVIS ONCOLOGY C6O QT 669.6 (174.3) 233.4
CLOVIS ONCOLOGY C6O TH 669.6 (174.3) 233.4
CLOVIS ONCOLOGY CLVSEUR EU 669.6 (174.3) 233.4
COGENT COMMUNICA CCOI US 932.1 (203.7) 386.0
COGENT COMMUNICA OGM1 GR 932.1 (203.7) 386.0
COGENT COMMUNICA CCOIEUR EU 932.1 (203.7) 386.0
CYTOKINETICS INC KK3A GR 289.8 (10.9) 207.7
CYTOKINETICS INC CYTK US 289.8 (10.9) 207.7
CYTOKINETICS INC KK3A TH 289.8 (10.9) 207.7
CYTOKINETICS INC KK3A QT 289.8 (10.9) 207.7
CYTOKINETICS INC CYTKEUR EU 289.8 (10.9) 207.7
DELEK LOGISTICS DKL US 744.4 (151.1) (1.5)
DELEK LOGISTICS D6L GR 744.4 (151.1) (1.5)
DENNY'S CORP DENN US 460.4 (138.1) (42.8)
DENNY'S CORP DENNEUR EU 460.4 (138.1) (42.8)
DENNY'S CORP DE8 GR 460.4 (138.1) (42.8)
DIEBOLD NIXDORF DBD US 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DBD GR 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DBD SW 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DBDEUR EU 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DLD TH 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DLD QT 3,790.6 (506.3) 292.4
DINE BRANDS GLOB IHP GR 2,049.5 (241.8) (11.0)
DINE BRANDS GLOB DIN US 2,049.5 (241.8) (11.0)
DOCEBO INC DCBO CN 20.3 (18.6) (12.9)
DOLLARAMA INC DOL CN 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 GR 3,716.5 (92.2) (328.0)
DOLLARAMA INC DLMAF US 3,716.5 (92.2) (328.0)
DOLLARAMA INC DOLEUR EU 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 GZ 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 TH 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 QT 3,716.5 (92.2) (328.0)
DOMINO'S PIZZA EZV GR 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA DPZ US 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA EZV SW 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA DPZEUR EU 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA DPZ AV 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA DPZ* MM 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA EZV GZ 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA EZV TH 1,382.1 (3,415.8) 333.8
DOMINO'S PIZZA EZV QT 1,382.1 (3,415.8) 333.8
DOMO INC- CL B DOMO US 216.7 (49.2) 18.2
DOMO INC- CL B 1ON GR 216.7 (49.2) 18.2
DOMO INC- CL B 1ON GZ 216.7 (49.2) 18.2
DOMO INC- CL B DOMOEUR EU 216.7 (49.2) 18.2
DOMO INC- CL B 1ON TH 216.7 (49.2) 18.2
DUNKIN' BRANDS G DNKN US 3,920.0 (588.0) 324.9
DUNKIN' BRANDS G 2DB GR 3,920.0 (588.0) 324.9
DUNKIN' BRANDS G 2DB TH 3,920.0 (588.0) 324.9
DUNKIN' BRANDS G 2DB GZ 3,920.0 (588.0) 324.9
DUNKIN' BRANDS G DNKNEUR EU 3,920.0 (588.0) 324.9
DUNKIN' BRANDS G 2DB QT 3,920.0 (588.0) 324.9
EMISPHERE TECH EMIS US 5.2 (155.3) (1.4)
FLEXION THERAPEU F02 TH 217.6 (20.1) 159.5
FLEXION THERAPEU FLXNEUR EU 217.6 (20.1) 159.5
FLEXION THERAPEU F02 QT 217.6 (20.1) 159.5
FLEXION THERAPEU FLXN US 217.6 (20.1) 159.5
FLEXION THERAPEU F02 GR 217.6 (20.1) 159.5
FRONTDOOR IN FTDR US 1,250.0 (179.0) 97.0
FRONTDOOR IN FTDREUR EU 1,250.0 (179.0) 97.0
FRONTDOOR IN 3I5 GR 1,250.0 (179.0) 97.0
GOLDEN STAR RES GSC CN 374.1 (32.1) (16.6)
GOOSEHEAD INSU-A GSHD US 64.6 (31.0) 13.3
GOOSEHEAD INSU-A 2OX GR 64.6 (31.0) 13.3
GOOSEHEAD INSU-A GSHDEUR EU 64.6 (31.0) 13.3
GRAFTECH INTERNA EAF US 1,526.2 (691.1) 462.4
GRAFTECH INTERNA EAFEUR EU 1,526.2 (691.1) 462.4
GRAFTECH INTERNA G6G GR 1,526.2 (691.1) 462.4
GRAFTECH INTERNA G6G TH 1,526.2 (691.1) 462.4
GRAFTECH INTERNA G6G QT 1,526.2 (691.1) 462.4
GRAFTECH INTERNA G6G GZ 1,526.2 (691.1) 462.4
GREENSKY INC-A GSKY US 951.0 (54.9) 285.5
H&R BLOCK - BDR H1RB34 BZ 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB TH 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB GR 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB US 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRBEUR EU 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB QT 3,452.4 (318.4) (35.7)
HCA HEALTHC-BDR H1CA34 BZ 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I 2BH GR 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I 2BH TH 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I HCA US 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I HCA* MM 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I HCAEUR EU 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I 2BH TE 45,058.0 (565.0) 3,439.0
HERBALIFE NUTRIT HOO GR 2,678.6 (390.0) 523.8
HERBALIFE NUTRIT HLF US 2,678.6 (390.0) 523.8
HERBALIFE NUTRIT HOO GZ 2,678.6 (390.0) 523.8
HERBALIFE NUTRIT HLFEUR EU 2,678.6 (390.0) 523.8
HERBALIFE NUTRIT HOO QT 2,678.6 (390.0) 523.8
HEWLETT-CEDEAR HPQ AR 31,656.0 (1,634.0) (6,390.0)
HEWLETT-CEDEAR HPQC AR 31,656.0 (1,634.0) (6,390.0)
HEWLETT-CEDEAR HPQD AR 31,656.0 (1,634.0) (6,390.0)
HILTON WORLD-BDR H1LT34 BZ 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HI91 SW 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HLTEUR EU 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HLT* MM 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HLT US 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HLTW AV 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HI91 TE 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HI91 TH 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HI91 GR 14,957.0 (472.0) (778.0)
HOME DEPOT - BDR HOME34 BZ 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD TE 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI TH 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI GR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD US 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD* MM 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDUSD SW 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI GZ 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD AV 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC 0R1G LN 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDEUR EU 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI QT 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD SW 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD CI 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HDD AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HDC AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HD AR 51,236.0 (3,116.0) 1,435.0
HP COMPANY-BDR HPQB34 BZ 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP TH 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP GR 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ US 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ* MM 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ TE 31,656.0 (1,634.0) (6,390.0)
HP INC 0J2E LN 31,656.0 (1,634.0) (6,390.0)
HP INC HPQUSD SW 31,656.0 (1,634.0) (6,390.0)
HP INC HPQEUR EU 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP GZ 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ AV 31,656.0 (1,634.0) (6,390.0)
HP INC HWP QT 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ SW 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ CI 31,656.0 (1,634.0) (6,390.0)
IAA INC IAA US 2,151.2 (137.2) 216.3
IAA INC 3NI GR 2,151.2 (137.2) 216.3
IAA INC IAA-WEUR EU 2,151.2 (137.2) 216.3
IMMUNOGEN INC IMU TH 235.3 (76.1) 131.5
IMMUNOGEN INC IMU GR 235.3 (76.1) 131.5
IMMUNOGEN INC IMGN US 235.3 (76.1) 131.5
IMMUNOGEN INC IMU GZ 235.3 (76.1) 131.5
IMMUNOGEN INC IMGNEUR EU 235.3 (76.1) 131.5
IMMUNOGEN INC IMU QT 235.3 (76.1) 131.5
IMMUNOGEN INC IMGN* MM 235.3 (76.1) 131.5
INSEEGO CORP INO TH 161.4 (37.4) 19.6
INSEEGO CORP INO QT 161.4 (37.4) 19.6
INSEEGO CORP INSG US 161.4 (37.4) 19.6
INSEEGO CORP INSGEUR EU 161.4 (37.4) 19.6
INSEEGO CORP INO GR 161.4 (37.4) 19.6
INSEEGO CORP INO GZ 161.4 (37.4) 19.6
IRONWOOD PHARMAC IRWD US 402.7 (93.3) 265.9
IRONWOOD PHARMAC I76 GR 402.7 (93.3) 265.9
IRONWOOD PHARMAC I76 TH 402.7 (93.3) 265.9
IRONWOOD PHARMAC I76 QT 402.7 (93.3) 265.9
IRONWOOD PHARMAC IRWDEUR EU 402.7 (93.3) 265.9
JACK IN THE BOX JBX GR 1,690.3 (841.2) (196.0)
JACK IN THE BOX JACK US 1,690.3 (841.2) (196.0)
JACK IN THE BOX JBX GZ 1,690.3 (841.2) (196.0)
JACK IN THE BOX JBX QT 1,690.3 (841.2) (196.0)
JACK IN THE BOX JACK1EUR EU 1,690.3 (841.2) (196.0)
JOSEMARIA RESOUR JOSES I2 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSE SS 18.7 (16.4) (20.9)
JOSEMARIA RESOUR NGQSEK EU 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSES IX 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSES EB 18.7 (16.4) (20.9)
L BRANDS INC LTD TH 10,125.0 (1,495.0) 873.0
L BRANDS INC LB US 10,125.0 (1,495.0) 873.0
L BRANDS INC LTD SW 10,125.0 (1,495.0) 873.0
L BRANDS INC LBRA AV 10,125.0 (1,495.0) 873.0
L BRANDS INC LTD GR 10,125.0 (1,495.0) 873.0
L BRANDS INC LBEUR EU 10,125.0 (1,495.0) 873.0
L BRANDS INC LB* MM 10,125.0 (1,495.0) 873.0
L BRANDS INC LTD QT 10,125.0 (1,495.0) 873.0
L BRANDS INC-BDR LBRN34 BZ 10,125.0 (1,495.0) 873.0
LENNOX INTL INC LII US 2,034.9 (170.2) 118.2
LENNOX INTL INC LXI GR 2,034.9 (170.2) 118.2
LENNOX INTL INC LXI TH 2,034.9 (170.2) 118.2
LENNOX INTL INC LII* MM 2,034.9 (170.2) 118.2
LENNOX INTL INC LII1EUR EU 2,034.9 (170.2) 118.2
MASCO CORP MSQ TH 5,027.0 (56.0) 1,163.0
MASCO CORP MSQ GZ 5,027.0 (56.0) 1,163.0
MASCO CORP MSQ GR 5,027.0 (56.0) 1,163.0
MASCO CORP MAS US 5,027.0 (56.0) 1,163.0
MASCO CORP MAS1EUR EU 5,027.0 (56.0) 1,163.0
MASCO CORP MSQ QT 5,027.0 (56.0) 1,163.0
MASCO CORP MAS* MM 5,027.0 (56.0) 1,163.0
MASCO CORP-BDR M1AS34 BZ 5,027.0 (56.0) 1,163.0
MCDONALD'S CORP TCXMCD AU 47,510.8 (8,210.3) (63.1)
MCDONALDS - BDR MCDC34 BZ 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD TE 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO TH 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD SW 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD US 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO GR 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD* MM 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCDUSD SW 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCDEUR EU 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO GZ 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD AV 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP 0R16 LN 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO QT 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCDUSD EU 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD CI 47,510.8 (8,210.3) (63.1)
MCDONALDS-CEDEAR MCD AR 47,510.8 (8,210.3) (63.1)
MCDONALDS-CEDEAR MCDC AR 47,510.8 (8,210.3) (63.1)
MCDONALDS-CEDEAR MCDD AR 47,510.8 (8,210.3) (63.1)
MERCER PARK BR-A MRCQF US 408.6 (2.8) 4.1
MERCER PARK BR-A BRND/A/U CN 408.6 (2.8) 4.1
MOTOROLA SOL-BDR M1SI34 BZ 10,642.0 (683.0) 739.0
MOTOROLA SOL-CED MSI AR 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA GR 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA TH 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MOT TE 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MSI US 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MSI1EUR EU 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA GZ 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MOSI AV 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA QT 10,642.0 (683.0) 739.0
MSCI INC 3HM GR 4,204.4 (76.7) 1,181.0
MSCI INC MSCI US 4,204.4 (76.7) 1,181.0
MSCI INC 3HM SW 4,204.4 (76.7) 1,181.0
MSCI INC 3HM QT 4,204.4 (76.7) 1,181.0
MSCI INC 3HM GZ 4,204.4 (76.7) 1,181.0
MSCI INC MSCI* MM 4,204.4 (76.7) 1,181.0
MSCI INC-BDR M1SC34 BZ 4,204.4 (76.7) 1,181.0
MSG NETWORKS- A MSGN US 784.8 (623.0) 212.8
MSG NETWORKS- A MSGNEUR EU 784.8 (623.0) 212.8
MSG NETWORKS- A 1M4 QT 784.8 (623.0) 212.8
MSG NETWORKS- A 1M4 TH 784.8 (623.0) 212.8
MSG NETWORKS- A 1M4 GR 784.8 (623.0) 212.8
N/A BJEUR EU 5,269.8 (54.3) (441.4)
NATHANS FAMOUS NATH US 104.9 (64.2) 77.8
NATHANS FAMOUS NFA GR 104.9 (64.2) 77.8
NATHANS FAMOUS NATHEUR EU 104.9 (64.2) 77.8
NAVISTAR INTL IHR TH 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR GR 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL NAV US 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL NAVEUR EU 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR QT 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR GZ 6,363.0 (3,739.0) 1,256.0
NOVAVAX INC NVV1 TH 173.0 (186.0) 71.5
NOVAVAX INC NVV1 GZ 173.0 (186.0) 71.5
NOVAVAX INC NVAXEUR EU 173.0 (186.0) 71.5
NOVAVAX INC NVV1 GR 173.0 (186.0) 71.5
NOVAVAX INC NVAX US 173.0 (186.0) 71.5
NUNZIA PHARMACEU NUNZ US 0.1 (3.2) (2.5)
NUTANIX INC - A 0NU SW 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU GZ 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU GR 1,863.3 (66.1) 467.0
NUTANIX INC - A NTNXEUR EU 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU TH 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU QT 1,863.3 (66.1) 467.0
NUTANIX INC - A NTNX US 1,863.3 (66.1) 467.0
OCULAR THERAPEUT 0OT TH 78.7 (3.6) 48.1
OCULAR THERAPEUT OCULEUR EU 78.7 (3.6) 48.1
OCULAR THERAPEUT 0OT GZ 78.7 (3.6) 48.1
OCULAR THERAPEUT OCUL US 78.7 (3.6) 48.1
OCULAR THERAPEUT 0OT GR 78.7 (3.6) 48.1
OMEROS CORP OMER US 137.0 (109.0) 48.3
OMEROS CORP 3O8 GR 137.0 (109.0) 48.3
OMEROS CORP 3O8 TH 137.0 (109.0) 48.3
OMEROS CORP OMEREUR EU 137.0 (109.0) 48.3
OMEROS CORP 3O8 QT 137.0 (109.0) 48.3
OMNIA WELLNESS I GLLXD US 0.0 (0.0) (0.0)
PAPA JOHN'S INTL PP1 SW 730.7 (59.7) (26.4)
PAPA JOHN'S INTL PZZAEUR EU 730.7 (59.7) (26.4)
PAPA JOHN'S INTL PP1 GZ 730.7 (59.7) (26.4)
PAPA JOHN'S INTL PP1 GR 730.7 (59.7) (26.4)
PAPA JOHN'S INTL PZZA US 730.7 (59.7) (26.4)
PHATHOM PHARMACE PHAT US 79.7 (152.5) (129.8)
PHILIP MORRI-BDR PHMO34 BZ 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PM1 TE 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN 4I1 TH 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PM1EUR EU 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PMI SW 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN 4I1 GR 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PM US 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PM1CHF EU 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN 0M8V LN 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PMOR AV 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN 4I1 GZ 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PMIZ EB 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PMIZ IX 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN PM* MM 42,875.0 (9,599.0) 1,681.0
PHILIP MORRIS IN 4I1 QT 42,875.0 (9,599.0) 1,681.0
PLANET FITNESS-A 3PL QT 1,717.2 (707.8) 394.7
PLANET FITNESS-A PLNT1EUR EU 1,717.2 (707.8) 394.7
PLANET FITNESS-A PLNT US 1,717.2 (707.8) 394.7
PLANET FITNESS-A 3PL TH 1,717.2 (707.8) 394.7
PLANET FITNESS-A 3PL GR 1,717.2 (707.8) 394.7
PPD INC PPD US 5,556.2 (2,668.1) (288.1)
PURPLE INNOVATIO PRPL US 147.7 (4.7) 27.3
RADIUS HEALTH IN RDUS US 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 TH 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 QT 219.2 (42.3) 141.8
RADIUS HEALTH IN RDUSEUR EU 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 GR 219.2 (42.3) 141.8
RECRO PHARMA INC REPH US 110.5 (6.7) 53.7
REVLON INC-A REV US 2,980.6 (1,221.2) 154.5
REVLON INC-A RVL1 GR 2,980.6 (1,221.2) 154.5
REVLON INC-A RVL1 TH 2,980.6 (1,221.2) 154.5
REVLON INC-A REVEUR EU 2,980.6 (1,221.2) 154.5
REVLON INC-A REV* MM 2,980.6 (1,221.2) 154.5
REYNOLDS CONSUME REYN US 4,160.0 (818.0) 192.0
REYNOLDS CONSUME 3ZT GZ 4,160.0 (818.0) 192.0
REYNOLDS CONSUME REYNEUR EU 4,160.0 (818.0) 192.0
REYNOLDS CONSUME 3ZT QT 4,160.0 (818.0) 192.0
REYNOLDS CONSUME 3ZT GR 4,160.0 (818.0) 192.0
REYNOLDS CONSUME 3ZT TH 4,160.0 (818.0) 192.0
RIMINI STREET IN RMNI US 201.2 (91.3) (82.4)
ROSETTA STONE IN RST US 201.1 (16.2) (68.6)
ROSETTA STONE IN RS8 TH 201.1 (16.2) (68.6)
ROSETTA STONE IN RS8 GR 201.1 (16.2) (68.6)
ROSETTA STONE IN RST1EUR EU 201.1 (16.2) (68.6)
SBA COMM CORP 4SB GZ 9,759.9 (3,651.0) (714.0)
SBA COMM CORP SBAC US 9,759.9 (3,651.0) (714.0)
SBA COMM CORP 4SB GR 9,759.9 (3,651.0) (714.0)
SBA COMM CORP SBAC* MM 9,759.9 (3,651.0) (714.0)
SBA COMM CORP 4SB QT 9,759.9 (3,651.0) (714.0)
SBA COMM CORP SBACEUR EU 9,759.9 (3,651.0) (714.0)
SBA COMM CORP SBJ TH 9,759.9 (3,651.0) (714.0)
SBA COMMUN - BDR S1BA34 BZ 9,759.9 (3,651.0) (714.0)
SCIENTIFIC GAMES TJW GZ 7,809.0 (2,108.0) 849.0
SCIENTIFIC GAMES SGMS US 7,809.0 (2,108.0) 849.0
SCIENTIFIC GAMES TJW GR 7,809.0 (2,108.0) 849.0
SCIENTIFIC GAMES TJW TH 7,809.0 (2,108.0) 849.0
SEALED AIR C-BDR S1EA34 BZ 5,765.2 (196.2) 127.8
SEALED AIR CORP SEE US 5,765.2 (196.2) 127.8
SEALED AIR CORP SDA GR 5,765.2 (196.2) 127.8
SEALED AIR CORP SEE1EUR EU 5,765.2 (196.2) 127.8
SEALED AIR CORP SDA TH 5,765.2 (196.2) 127.8
SEALED AIR CORP SDA QT 5,765.2 (196.2) 127.8
SERES THERAPEUTI MCRB1EUR EU 132.4 (48.3) 54.2
SERES THERAPEUTI MCRB US 132.4 (48.3) 54.2
SERES THERAPEUTI 1S9 GR 132.4 (48.3) 54.2
SHELL MIDSTREAM 49M GR 2,019.0 (749.0) 313.0
SHELL MIDSTREAM 49M TH 2,019.0 (749.0) 313.0
SHELL MIDSTREAM SHLX US 2,019.0 (749.0) 313.0
SIRIUS XM HO-BDR SRXM34 BZ 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN SIRI US 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN RDO TH 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN RDO GR 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN SIRIEUR EU 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN RDO GZ 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN SIRI AV 11,149.0 (736.0) (2,290.0)
SIRIUS XM HOLDIN RDO QT 11,149.0 (736.0) (2,290.0)
SIX FLAGS ENTERT 6FE GR 2,882.5 (186.9) 36.5
SIX FLAGS ENTERT SIXEUR EU 2,882.5 (186.9) 36.5
SIX FLAGS ENTERT SIX US 2,882.5 (186.9) 36.5
SIX FLAGS ENTERT 6FE TH 2,882.5 (186.9) 36.5
SIX FLAGS ENTERT 6FE QT 2,882.5 (186.9) 36.5
SLEEP NUMBER COR SNBR US 806.0 (159.4) (434.4)
SLEEP NUMBER COR SL2 GR 806.0 (159.4) (434.4)
SLEEP NUMBER COR SNBREUR EU 806.0 (159.4) (434.4)
STARBUCKS CORP SRB TH 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX* MM 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SRB GR 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUXEUR EU 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX TE 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX IM 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUXUSD SW 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SRB GZ 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX AV 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX PE 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX US 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP TCXSBU AU 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP 0QZH LI 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SRB QT 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX SW 27,731.3 (6,759.1) (2,775.8)
STARBUCKS CORP SBUX CI 27,731.3 (6,759.1) (2,775.8)
STARBUCKS-BDR SBUB34 BZ 27,731.3 (6,759.1) (2,775.8)
STARBUCKS-CEDEAR SBUX AR 27,731.3 (6,759.1) (2,775.8)
STARBUCKS-CEDEAR SBUXD AR 27,731.3 (6,759.1) (2,775.8)
TAILORED BRANDS TLRD* MM 2,419.0 (98.3) 206.4
TAUBMAN CENTERS TCO2EUR EU 4,515.5 (177.4) -
TAUBMAN CENTERS TU8 GR 4,515.5 (177.4) -
TAUBMAN CENTERS TCO US 4,515.5 (177.4) -
TRANSDIGM - BDR T1DG34 BZ 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP TDG US 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP T7D GR 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP TDG* MM 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP T7D TH 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP TDGEUR EU 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP T7D QT 18,156.0 (4,299.0) 3,302.0
TRILLIUM THERAPE TRIL US 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP GR 33.0 (0.2) 12.7
TRILLIUM THERAPE TRIL CN 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP TH 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP GZ 33.0 (0.2) 12.7
TRILLIUM THERAPE TREUR EU 33.0 (0.2) 12.7
TRIUMPH GROUP TG7 GR 2,625.4 (532.9) 212.9
TRIUMPH GROUP TGI US 2,625.4 (532.9) 212.9
TRIUMPH GROUP TGIEUR EU 2,625.4 (532.9) 212.9
UBIQUITI INC 3UB GR 667.1 (292.1) 324.7
UBIQUITI INC UI US 667.1 (292.1) 324.7
UBIQUITI INC 3UB GZ 667.1 (292.1) 324.7
UBIQUITI INC UBNTEUR EU 667.1 (292.1) 324.7
UNISYS CORP UIS1 SW 2,504.0 (1,228.3) 294.0
UNISYS CORP UIS US 2,504.0 (1,228.3) 294.0
UNISYS CORP UISEUR EU 2,504.0 (1,228.3) 294.0
UNISYS CORP UISCHF EU 2,504.0 (1,228.3) 294.0
UNISYS CORP USY1 TH 2,504.0 (1,228.3) 294.0
UNISYS CORP USY1 GR 2,504.0 (1,228.3) 294.0
UNISYS CORP USY1 GZ 2,504.0 (1,228.3) 294.0
UNISYS CORP USY1 QT 2,504.0 (1,228.3) 294.0
UNITI GROUP INC 8XC TH 5,017.0 (1,483.2) -
UNITI GROUP INC UNIT US 5,017.0 (1,483.2) -
UNITI GROUP INC 8XC GR 5,017.0 (1,483.2) -
VALVOLINE INC 0V4 GR 2,297.0 (196.0) 373.0
VALVOLINE INC 0V4 TH 2,297.0 (196.0) 373.0
VALVOLINE INC VVVEUR EU 2,297.0 (196.0) 373.0
VALVOLINE INC 0V4 QT 2,297.0 (196.0) 373.0
VALVOLINE INC VVV US 2,297.0 (196.0) 373.0
VECTOR GROUP LTD VGR GR 1,505.1 (685.0) 220.5
VECTOR GROUP LTD VGR US 1,505.1 (685.0) 220.5
VECTOR GROUP LTD VGREUR EU 1,505.1 (685.0) 220.5
VECTOR GROUP LTD VGR TH 1,505.1 (685.0) 220.5
VECTOR GROUP LTD VGR QT 1,505.1 (685.0) 220.5
VERISIGN INC VRS TH 1,854.0 (1,490.1) 313.4
VERISIGN INC VRS GR 1,854.0 (1,490.1) 313.4
VERISIGN INC VRSN US 1,854.0 (1,490.1) 313.4
VERISIGN INC VRS SW 1,854.0 (1,490.1) 313.4
VERISIGN INC VRSN* MM 1,854.0 (1,490.1) 313.4
VERISIGN INC VRSNEUR EU 1,854.0 (1,490.1) 313.4
VERISIGN INC VRS GZ 1,854.0 (1,490.1) 313.4
VERISIGN INC VRS QT 1,854.0 (1,490.1) 313.4
VERISIGN INC-BDR VRSN34 BZ 1,854.0 (1,490.1) 313.4
VERTIV HOLDINGS VERT/U US 4,657.4 (704.8) 497.7
VERTIV HOLDINGS VRT US 4,657.4 (704.8) 497.7
VERTIV HOLDINGS 49V GZ 4,657.4 (704.8) 497.7
VERTIV HOLDINGS VRT2EUR EU 4,657.4 (704.8) 497.7
VERTIV HOLDINGS 49V GR 4,657.4 (704.8) 497.7
WATERS CORP WAZ GR 2,557.1 (216.3) 721.2
WATERS CORP WAT US 2,557.1 (216.3) 721.2
WATERS CORP WAZ TH 2,557.1 (216.3) 721.2
WATERS CORP WAT* MM 2,557.1 (216.3) 721.2
WATERS CORP WAZ QT 2,557.1 (216.3) 721.2
WATERS CORP WATEUR EU 2,557.1 (216.3) 721.2
WAYFAIR INC- A W US 2,953.0 (944.2) (234.4)
WAYFAIR INC- A 1WF QT 2,953.0 (944.2) (234.4)
WAYFAIR INC- A 1WF GZ 2,953.0 (944.2) (234.4)
WAYFAIR INC- A 1WF GR 2,953.0 (944.2) (234.4)
WAYFAIR INC- A WEUR EU 2,953.0 (944.2) (234.4)
WESTERN UNIO-BDR WUNI34 BZ 8,758.5 (39.5) (171.1)
WESTERN UNION WU US 8,758.5 (39.5) (171.1)
WESTERN UNION W3U GR 8,758.5 (39.5) (171.1)
WESTERN UNION W3U TH 8,758.5 (39.5) (171.1)
WESTERN UNION WU* MM 8,758.5 (39.5) (171.1)
WESTERN UNION WUEUR EU 8,758.5 (39.5) (171.1)
WESTERN UNION W3U GZ 8,758.5 (39.5) (171.1)
WESTERN UNION W3U QT 8,758.5 (39.5) (171.1)
WIDEOPENWEST INC WOW US 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WOW1EUR EU 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WU5 QT 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WU5 TH 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WU5 GR 2,471.6 (245.9) (108.7)
WINGSTOP INC WING1EUR EU 166.1 (209.4) (2.7)
WINGSTOP INC WING US 166.1 (209.4) (2.7)
WINGSTOP INC EWG GR 166.1 (209.4) (2.7)
WW INTERNATIONAL WW US 1,498.3 (681.8) (98.7)
WW INTERNATIONAL WW6 GR 1,498.3 (681.8) (98.7)
WW INTERNATIONAL WW6 GZ 1,498.3 (681.8) (98.7)
WW INTERNATIONAL WTW AV 1,498.3 (681.8) (98.7)
WW INTERNATIONAL WTWEUR EU 1,498.3 (681.8) (98.7)
WW INTERNATIONAL WW6 QT 1,498.3 (681.8) (98.7)
WW INTERNATIONAL WW6 TH 1,498.3 (681.8) (98.7)
WYNDHAM DESTINAT WD5 TH 7,453.0 (524.0) 479.0
WYNDHAM DESTINAT WD5 GR 7,453.0 (524.0) 479.0
WYNDHAM DESTINAT WYNEUR EU 7,453.0 (524.0) 479.0
WYNDHAM DESTINAT WD5 QT 7,453.0 (524.0) 479.0
WYNDHAM DESTINAT WYND US 7,453.0 (524.0) 479.0
YELLOW PAGES LTD Y CN 326.9 (16.7) 75.2
YUM! BRANDS -BDR YUMR34 BZ 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC TGR TH 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC TGR GR 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC YUM* MM 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC YUMUSD SW 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC TGR GZ 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC YUM US 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC YUM AV 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC TGR TE 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC YUMEUR EU 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC TGR QT 5,231.0 (8,016.0) (14.0)
YUM! BRANDS INC YUM SW 5,231.0 (8,016.0) (14.0)
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9474.
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