/raid1/www/Hosts/bankrupt/TCR_Public/200414.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 14, 2020, Vol. 24, No. 104
Headlines
1141 SOUTH TAYLOR: Case Summary & 17 Unsecured Creditors
2178 ATLANTIC: April 30 Hearing on Disclosure Statement
7 HILLS: Wants May 30 Extension of Deadline to File Plan
929485 FLORIDA: Has Until April 15 to File Bankruptcy Plan
A. MANOS SERVICES: Gets Interim Access to Cash Collateral
ABERCROMBIE & FITCH: S&P Lowers ICR to 'B+'; Outlook Negative
ABSOLUT FACILITIES: May 5 Hearing on Plan & Disclosures
ADAIR MECHANICAL: Disclosure Statement Conditionally Approved
ADVANCE AUTO: Egan-Jones Lowers Senior Unsecured Ratings to BB-
ADVANCED MEDIA: Taps Buether Joe as Special Counsel
AEROCENTURY CORP: BDO USA, LLP Raises Going Concern Doubt
ALPHA ENTERTAINMENT: Case Summary & 25 Largest Unsecured Creditors
AMAZING ENERGY: Derek A. Henderson Represents Miesner, 2 Others
AMERICAN AXLE: S&P Cuts ICR to 'B+'; Ratings on Watch Negative
AMERICAN RENAL: S&P Alters Outlook to Negative, Affirms 'B-' ICR
AMNEAL PHARMACEUTICALS: Crescent Says $3.2M Loan at 90% of Face
ANCHORAGE MIDTOWN: Plan & Disclosures Hearing on April 15
APCO HOLDINGS: Moody's Cuts CFR to Caa1 & Alters Outook to Neg.
APEX ENERGY: Disclosure Statement Conditionally Approved
ARETE HEALTHCARE: IRS Looking for Floresville Tax Returns
BANESCO USA: Fitch Places 'BB-' LT IDR on Watch Negative
BARKATH PROPERTIES: Unsec. Creditors to Get At Least 10% in Plan
BASS PRO GROUP: S&P Lowers ICR to 'B'; Outlook Negative
BED BATH: Egan-Jones Lowers Senior Unsecured Ratings to C
BERGIO INTERNATIONAL: Delays Filing of Annual Report
BLACKHAWK NETWORK: S&P Lowers ICR to 'B-'; Outlook Stable
BLACKWOOD REDEVELOPMENT: May 7 Hearing on Disclosure Statement
BLACKWOOD REDEVELOPMENT: U.S. Trustee Objects to Disclosure
BOBBY DEAN JONES: Parker Poe Represents BOTW, BEFCOR
BOY SCOUTS: New York Court Stays Eric Burrus Sexual Abuse Lawsuit
BRINKER INT'L: Egan-Jones Cuts Local Curr. Unsecured Rating to B
BROADVISION INC: Seeks to Hire DLA Piper as Counsel
BROADVISION INC: Seeks to Hire Epiq as Administrative Advisor
BROWNLEE FARM: Unsecureds to Get Net Sale Proceeds
BRUNSWICK CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB
BW HOMECARE: S&P Hikes ICR to 'CCC' Following Distressed Exchange
BY CROWN: S&P Downgrades ICR to 'B-' on Weakened Credit Metrics
CAPITAL TRUST: S&P Lowers Revenue Bond Ratings to 'CCC(sf)'
CARMAX INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB
CENTURY ALUMINUM: S&P Cuts ICR to 'CCC+'; Ratings on Watch Negative
CENTURY TOWNHOMES: Has Until July 1 to File Plan & Disclosures
CHARLES RIVER: Egan-Jones Lowers Senior Unsecured Ratings to BB-
CHERRY BOMB: Has Interim Cash Collateral Access Thru April 16
CITY POWER: Has Plan for Up to 100% Payout for Creditors in 5 Years
CJ AUTO: Disclosure Statement Conditionally Approved
CONCHO RESOURCES: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
CONSTELLATION BRANDS: Egan-Jones Lowers Sr. Unsec. Ratings to BB+
CRISTIAN LIQUORS: May Use Cash Collateral Thru April 14
CUENTAS INC: Incurs $1.32 Million Net Loss in 2019
DANA INC: Egan-Jones Lowers Senior Unsecured Ratings to B
DANCEL LLC: Seeks April 20 Extension of Deadline for Amended Plan
DEPENDABLE BUILDING: Unsecured Creditors to Get 10% in 5 Years
DOMINION DIAMOND: Fitch Cuts LT IDR to 'CCC' on Weaker Performance
DRIVETIME AUTOMOTIVE: S&P Lowers ICR to 'CCC+'; Outlook Negative
DROPCAR INC: Friedman LLP Raises Substantial Going Concern Doubt
DUNCAN MORGAN: Trustee Wants Until June 5 to File Plan & Disclosure
EASTERN NIAGARA HOSPITAL: PCO Files 1st Report
ELK PETROLEUM: Exclusivity Period Extended Until May 16
ENERGY VENTURES: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
ENVISION HEALTHCARE: Crescent Says $1.5M Loan at 86% Face Value
EVERI PAYMENTS: S&P Cuts ICR to 'B' on Disruption From Coronavirus
FCPR ACQUISITION: Trustee Retains Jennis Law as Special Counsel
FENDER MUSICAL: S&P Places 'B' ICR on CreditWatch Negative
FERRO CORP: Egan-Jones Lowers Senior Unsecured Ratings to B
FIRST BANCORP: Fitch Affirms LT IDR at 'B+', Outlook Stable
FLUOR CORP: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
FOOT LOCKER: Egan-Jones Lowers Senior Unsecured Ratings to B
FOOTHILLS EXPLORATION: Delays Filing of Form 10-K Over COVID-19
FOURTEENTH AVENUE: Disc. Statement Has Preliminary Approval
FRANK INVESTMENTS: Disclosure Hearing Continued to April 16
FRE 355 INVESTMENT: Case Summary & 2 Unsecured Creditors
FRONTIER COMMUNICATIONS: Egan-Jones Lowers Sr. Unsec. Ratings to D
GENIUS BRANDS: Squar Milner LLP Raises Going Concern Doubt
GI TOYS: Seeks to Extend the Deadline to File Plan Through May 29
GLOBAL EAGLE: To Temporarily Reduce Top Executives' Pay
GNC CORP: Egan-Jones Lowers Senior Unsecured Ratings to C
GOODYEAR TIRE: Egan-Jones Lowers Senior Unsecured Ratings to B-
GREEN VISION: Reports $160K Net Loss for Sept. 30, 2018 Quarter
GREENWAY SERVICES: UST Says Action Needed on Receivables
GROWCO INC: Disclosure Statement Hearing Continued to May 19
GUITAR CENTER: Moody's Lowers CFR to Caa3, Outlook Negative
HADDAD RESTAURANT: Gets Interim Access to Cash Collateral
HANOVER INSURANCE: Fitch Affirms Junior Subordinated Debt at BB+
HARRAH WHITES: Gets Final Approval to Use Cash Collateral
HAWAII MOTORSPORTS: Has Interim, Final OK on Wells Fargo Agreement
HAWAII MOTORSPORTS: May Continue Borrowing from Insiders
HELLER EHRMAN: Paravue's Claim Barred by Statute of Limitations
HOOPERS CONCRETE: Exclusivity Period Extended Until May 23
HUSKY ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB
IBIO INC: Eastern Capital Has 28.7% Stake as of March 19
IBIO INC: Expands COVID-19 Vaccine Collaboration to Include IDRI
ICONIX BRAND: Signs Amendment to Cortland Credit Agreement
INTERNATIONAL FOOD: Seeks to Hire Modesto Bigas as Counsel
INTERNATIONAL GAME: Egan-Jones Lowers Sr. Unsecured Ratings to B
ITT INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
IXS HOLDINGS: S&P Affirms 'B' ICR; Ratings on CreditWatch Negative
JILL ACQUISITION: Moody's Cuts CFR to Caa3, Outlook Negative
K-MAC HOLDINGS: S&P Alters Outlook to Negative, Affirms 'B-' ICR
L BRANDS: Egan-Jones Lowers Senior Unsecured Ratings to CCC
LASALLE GROUP: PCO Files 4th Consolidated Report
LBJ HEALTHCARE: PCO Files 19th Interim Report
LENNAR CORP: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
LEVEL 3 HOMES: Hires Profound Financial as Accountant
LIFEPOINT HEALTH: S&P Rates $500MM Senior Secured Notes 'B'
LOBLAW COMPANIES: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
LSC COMMUNICATIONS: Case Summary & 50 Largest Unsecured Creditors
LTI HOLDINGS: Crescent Says $992,000 Loan at 90% Face Value
MACY'S INC: Egan-Jones Lowers Sr. Unsecured Ratings to B
MALLINCKRODT INT'L: Crescent Says $957,000 Loan at 90% Face Value
MARTIN MARIETTA: Egan-Jones Lowers Senior Unsecured Ratings to BB+
MATRA PETROLEUM: Exclusivity Period Extended to April 17
MCCLATCHY COMPANY: Hires Deloitte & Touche as Independent Auditor
MCL NURSING: Unsecureds to Get 100% With Interest Over 5 Years
MCORPCX INC: MaloneBailey Raises Going Concern Doubt
MEN'S WEARHOUSE: Crescent Says $1.5M Loan at 81% Face Value
MFA FINANCIAL: Egan-Jones Lowers Senior Unsecured Ratings to BB
MICHAELS STORES/OLD: Egan-Jones Lowers Sr. Unsecured Ratings to B-
MJJW PORTFOLIO: Durham Questions Plan Feasibility, Infusions
MOSS CREEK: S&P Cuts ICR to 'CCC+' After Commodity Price Drop
MOUNTAIN PROVINCE: Fitch Cuts IDR to 'B-', Outlook Negative
MOUNTAIN STATES: Hires Dennis & Company as Accountant
MTE HOLDINGS: Potter Anderson 5th Update on Service Providers
MUSEUM OF AMERICAN JEWISH: Court Grants Interim Cash Access
MYERS INDUSTRIES: Egan-Jones Lowers Senior Unsecured Ratings to BB
NABORS INDUSTRIES: Egan-Jones Lowers Sr. Unsecured Ratings to B-
NATEL ENGINEERING: S&P Cuts ICR to 'CCC+'; Outlook Negative
NATHAN'S FAMOUS: Egan-Jones Lowers Senior Unsecured Ratings to CCC
NCR AUTO CORES: Seeks to Hire Jones LLP as Special Counsel
NEW ENERGY: Has Until April 30 to Exclusively File Chapter 11 Plan
NEW MILLENNIUM HOLDCO: S&P Lowers ICR to 'D' on Missed Payments
NEWELL BRANDS: S&P Alters Outlook to Negative, Affirms 'BB+' ICR
NEXTIER OILFIELD: S&P Downgrades ICR to 'B'; Outlook Negative
NINE ENERGY: Sirkes Succeeds Roeder as Chief Financial Officer
NOBLE ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
NORTHERN OIL: S&P Lowers ICR to 'CCC+' on Lower Commodity Prices
O'HARE FOUNDRY: Seeks to Extend Exclusivity Period to April 30
OBSIDIAN ENERGY: Ernst & Young LLP Raises Going Concern Doubt
OCEANEERING INTERNATIONAL: S&P Cuts ICR to 'B+; Outlook Negative
OIL STATES: Egan-Jones Lowers Senior Unsecured Ratings to B
OMNI BAY COLONY: Seeks to Hire Hajjar Peters as Counsel
OMNIQ CORP: Reports $5.3 Million Net Loss for 2019
ONE CALL: S&P Alters Outlook to Negative, Affirms 'B-' ICR
ORBSAT CORP: RBSM LLP Raises Substantial Going Concern Doubt
OUTCOMES GROUP: S&P Alters Outlook to Negative, Affirms 'B' ICR
PAID INC: KMJ Corbin & Company LLP Raises Going Concern Doubt
PAR PETROLEUM: S&P Alters Outlook to Stable, Affirms 'B+' ICR
PBF ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
PDC ENERGY: S&P Affirms 'BB' Issuer Credit Rating, Outlook Neg.
PG&E CORP: Gets OK to Expand Scope of Jenner & Block's Employment
PH BEAUTY: Moody's Cuts CFR to Caa1, Outlook Negative
PINNACLE GROUP: April 28 Hearing on Disclosure Statement
PIXIUS COMMUNICATIONS: Taps Hinkle Law Firm as Special Counsel
PLAINS ALL: Egan-Jones Lowers Senior Unsecured Ratings to BB+
PMHC II: Crescent Says $747,000 Loan at 90% Face Value
POINTE SCHOOLS, AZ: S&P Lowers 2015 Revenue Bond Rating to 'B'
POLARIS INTERMEDIATE: S&P Alters Outlook to Neg., Affirms 'B+' ICR
POPULAR INC: Fitch Affirms LT IDR at BB, Outlook Stable
PRECISION CASTPARTS: Egan-Jones Lowers Sr. Unsecured Ratings to B
PREGIS TOPCO: S&P Cuts ICR to 'B-' on Expectation for Lower Demand
PRESTIGE HEATING: April 28 Plan & Disclosure Hearing Set
PROFRAC SERVICES: S&P Lowers ICR to 'CCC' on Tightening Liquidity
PYXUS INTERNATIONAL: S&P Lowers ICR to 'CCC-'; Outlook Negative
QUIDDITCH ACQUISITION: S&P Lowers ICR to 'CCC+'; Outlook Negative
QURATE RETAIL: S&P Lowers ICR to 'BB-'; Outlook Negative
REALNETWORKS INC: KPMG LLP Raises Substantial Going Concern Doubt
REDWOOD TRUST: Egan-Jones Lowers Senior Unsecured Ratings to BB-
REFLECT SCIENTIFIC: Sadler Gibb Raises Going Concern Doubt
RHC LLC: Exclusivity Period Extended Until April 24
RITE AID: Egan-Jones Lowers Senior Unsecured Ratings to CC
SEACOR HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to CCC
SERVICE CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB-
SG BLOCKS: Whitley Penn LLP Raises Substantial Going Concern Doubt
SHAE MANAGEMENT: April 21 Plan Confirmation Hearing Set
SIMON PROPERTY: Egan-Jones Lowers Senior Unsecured Ratings to BB+
SOLERA PARENT: S&P Alters Outlook to Negative, Affirms 'B-' ICR
SONIC AUTOMOTIVE: Egan-Jones Lowers Senior Unsecured Ratings to B
SOUTH COAST BEHAVIORAL: Trustee Taps Ringstad & Sanders as Counsel
STONE OAK MEMORY: PCO Files 2nd Interim Report
TACALA LLC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
TARWATER REAL ESTATE: Hires Michael Familetti as Counsel
TENNECO INC: Egan-Jones Lowers Sr. Unsec. Ratings to B-
TEREX CORP: Egan-Jones Cuts Local Curr. Unsecured Rating to B
TIVITY HEALTH: S&P Cuts ICR to 'B'; Ratings on Watch Negative
TRANSALTA CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB
TRUE RELIGION: Case Summary & 30 Largest Unsecured Creditors
TUPPERWARE BRANDS: S&P Lowers ICR to 'CCC+' on Coronavirus Impact
TWO RIVERS: Delays Form 10-K Filing Amid COVID-19 Pandemic
U.S. STEM CELL: Delays Filing of Form 10-K Over COVID-19 Pandemic
UAL CORP/OLD: Egan-Jones Lowers Senior Unsecured Ratings to B
VENUS CONCEPT: Incurs $42.3 Million Net Loss in 2019
VERITY HEALTH SYSTEM: PCO Files 8th Report
VIKING ENERGY: Turner, Stone & Company Raises Going Concern Doubt
VISHAY INTERTECHNOLOGY: Egan-Jones Lowers Sr. Unsec. Ratings to B+
VULCAN MATERIALS: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
WATSON VALVE: Hires Cummings & Houston as Accountant
WESTERN DIGITAL: Fitch Alters Outlook on 'BB+' LT IDR to Stable
WINSTEAD'S COMPANY: Has Interim OK on Cash Use, May 21 Hearing Set
WOLVERINE WORLD: Egan-Jones Lowers Senior Unsecured Ratings to BB-
WOODLAWN COMMUNITY: Appointment of Chapter 11 Trustee Upheld
WPX ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to B-
YRC WORLDWIDE: S&P Lowers ICR to 'CCC+'; Outlook Negative
ZELIS HOLDINGS: S&P Alters Outlook to Negative & Affirms 'B' ICR
[*] Fitch: Neg. Rating Actions on North American Airlines Sector
[*] S&P Alters Various REIT Outlooks to Stable From Positive
[^] Large Companies with Insolvent Balance Sheet
*********
1141 SOUTH TAYLOR: Case Summary & 17 Unsecured Creditors
--------------------------------------------------------
Debtor: 1141 South Taylor Avenue, LLC
11255 Hannaford Dr.
Tustin, CA 92782
Business Description: 1141 South Taylor Avenue, LLC is a Single
Asset Real Estate (as defined in 11 U.S.C.
Section 101(51B)). The Company owns in fee
simple a small office and commercial lot
located at 1141 S. Taylor Ave., Montebello,
California, valued at $650,000.
Chapter 11 Petition Date: April 10, 2020
Court: United States Bankruptcy Court
Central District of California
Case No.: 20-11154
Judge: Hon. Scott C. Clarkson
Debtor's Counsel: Michael R. Totaro, Esq.
TOTARO & SHANAHAN
P.O. Box 789
Pacific Palisades, CA 90272
Tel: (800) 541-2802
E-mail: Ocbkatty@aol.com
Total Assets: $650,000
Total Liabilities: $3,227,022
The petition was signed by John Katangian, managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 17 unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/wWt9Ut
2178 ATLANTIC: April 30 Hearing on Disclosure Statement
-------------------------------------------------------
The hearing to consider the adequacy of the Disclosure Statement
filed by 2178 Atlantic Ave. HDFC, any objections to the Disclosure
Statement, confirmation of the Plan, any objections thereto, and
any other matter that may properly come before the Court will be
held before the Honorable Elizabeth S. Stong, United States
Bankruptcy Judge, at the United States Bankruptcy Court, 271-C
Cadman Plaza East, Brooklyn, New York 11201, on April 30, 2020 at
11:00 a.m. (prevailing Eastern Time).
Any objections to the Disclosure Statement and the Plan, must be
filed and served on or before April 17, 2020 at 5:00 p.m.
(prevailing Eastern Time).
Counsel to the Debtor:
Douglas H. Mannal
Joseph A. Shifer
Rose Hill Bagley
Hunter Blain
KRAMER LEVIN NAFTALIS & FRANKEL LLP
1177 Avenue of the Americas
New York, New York 10036
Telephone: (212) 715-9100
Facsimile: (212) 715-8000
E-mail: dmannal@kramerlevin.com
jshifer@kramerlevin.com
rbagley@kramerlevin.com
hblain@kramerlevin.com
About 2178 Atlantic Ave HDFC
Based in Brooklyn, N.Y., 2178 Atlantic Ave HDFC filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 19-47287) on Dec. 4, 2019, listing under $1 million in
both assets and liabilities.
7 HILLS: Wants May 30 Extension of Deadline to File Plan
--------------------------------------------------------
7 Hills, Inc., moves the Court to extend by a period of 60 days its
deadline to file an amended disclosure statement and amended plan
of reorganization.
The Debtor filed this case on June 12, 2019, and has operated as
debtor in possession since that time.
Just as the Debtor had opened one of its gas stations/convenience
stores and was about to open the other, the coronavirus epidemic
occurred and southwest Virginia, in addition to the remainder of
the world, currently experiences economic conditions that are at
the least, completely unpredictable, and at the worst, of historic
proportions.
Without belaboring the economic circumstances, of which all parties
to this case are fully aware, the Debtor asserts that circumstances
are such that it is not in a position to reliably and accurately
file its amended disclosure statement and amended plan of
reorganization. The Debtor is hopeful, as is everyone reading this
pleading, that the circumstances will curtail and be back to normal
in a relatively short period of time. If they are, the Debtor
anticipates being able to file a reliable and accurate amended
disclosure statement and amended plan of reorganization within 60
days from the original deadline of March 31, 2020.
Counsel for the Debtor:
Andrew S. Goldstein, Esq.
Magee Goldstein Lasky & Sayers, P.C.
P.O. Box 404
Roanoke, Virginia 24003-0404
Telephone: (540) 343-9800
Facsimile: (540) 343-9898
E-mail: agoldstein@mglspc.com
About 7 Hills Inc.
7 Hills, Inc., based in Shawsville, VA, filed a Chapter 11
bankruptcy petition (Bankr. W.D. Va. Case No. 19-70804) on June 12,
2019. In the petition signed by Rajendra Patel, president, the
Debtor was estimated to have $1 million to $10 million in both
assets and liabilities. The Hon. Paul M. Black oversees the case.
Andrew S. Goldstein, Esq., at Magee Goldstein Lasky & Sayers, P.C.,
serves as bankruptcy counsel to the Debtor.
929485 FLORIDA: Has Until April 15 to File Bankruptcy Plan
----------------------------------------------------------
929485 Florida, Inc. has until April 15 to file its Chapter 11 plan
and disclosure statement.
The period during which only the company can file a plan will also
expire tomorrow, according to an order signed by Judge Caryl Delano
of the U.S. Bankruptcy Court for the Middle District of Florida.
About 929485 Florida
929485 Florida, Inc., classifies its business as single asset real
estate (as defined in 11 U.S.C. Section 101(51B)).
929485 Florida sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 19-09424) on Oct. 3, 2019. At the
time of the filing, the Debtor disclosed assets of between $1
million and $10 million and liabilities of the same range. The
case is assigned to Judge Caryl E. Delano. The Debtor is
represented by Edmund S. Whitson, III, Esq., at Adams and Reese,
LLP.
A. MANOS SERVICES: Gets Interim Access to Cash Collateral
---------------------------------------------------------
Judge Michael G. Williamson authorized A. Manos Services, Inc., to
use cash collateral to pay current and necessary expenses, pursuant
to the budget, as well as U.S. Trustee quarterly fees, until
further Court order. The budget provided for $56,000 in materials
cost, $42,000 for labor and $28,000 for overhead, for the month of
April 2020.
Each of the Debtor's creditor with a security interest in the cash
collateral will have a perfected postpetition lien to the same
extent and with the same validity and priority as its prepetition
lien.
About A. Manos Services
A. Manos Services, Inc. -- http://www.amanosroofing.com/-- is a
small, family-owned and operated roofing company serving the
Hillsborough, Pinellas, Pasco and Hernando counties. It
specializes in roof leak repairs and roof replacement services.
A. Manos Services sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-09721) on Oct. 14,
2019. At the time of the filing, the Debtor disclosed $1,377,003
in assets and $910,210 in liabilities.
ABERCROMBIE & FITCH: S&P Lowers ICR to 'B+'; Outlook Negative
-------------------------------------------------------------
S&P Global Ratings lowered all ratings on Abercrombie & Fitch Co.
(ANF), including its issuer credit rating to 'B+' from 'BB-'.
The downgrade reflects S&P's view of Abercrombie & Fitch Co.'s
(ANF's) earnings prospects as significantly weakened and its
expectation for significant deterioration in credit metrics this
year. In addition to closing a majority of its stores in mainland
China during February (most of which have subsequently reopened),
ANF recently announced the temporary closure of all its stores
across North America and Europe from mid-March through an
unspecified date. S&P believes closures could continue for an
extended period given the increasingly drastic actions governments
are taking to quell the rapid rise in new COVID-19 cases. It notes
that ANF's online channel, representing a significant (33%)
percentage of total revenues remains operational. In addition, S&P
understands that stores in the APAC region, accounting for a modest
(10%) of total revenues, are now open. Collectively, S&P thinks
these channels could offset some of the impact from the closed
stores in North America and EMEA. Still, S&P believes consumer
demand will be significantly depressed over the next few quarters
as confidence rapidly deflates from mounting uncertainty over the
severity and duration of the outbreak. As a result, the rating
agency believes credit metrics will deteriorate significantly in
the next several quarters, resulting in leverage spiking above 4x
at the end of fiscal 2020 (ending Feb. 1, 2021), up from the mid-2x
area at the end of fiscal 2019 (ended Feb. 1, 2020). As pressures
alleviate beginning in the second half of calendar year 2020, S&P
expects gradual improvement in ANF's credit metrics, with leverage
declining to the mid-3x area at the end of fiscal 2021. As a result
of its projection for higher leverage, the rating agency is
revising its financial risk profile assessment to significant from
intermediate.
The negative outlook reflects the heightened uncertainty regarding
the impact of the coronavirus pandemic and impending recession on
ANF's financial condition. A prolonged store closure, coupled with
a slowdown in consumer spending could affect the company's ability
to refinance its 2021 debt maturity and restore its credit metrics
in fiscal 2021.
"We could lower the rating if the effects of pandemic or the
subsequent recessionary macroeconomic environment is more severe
and prolonged than we currently anticipate, such that we expect the
company will be unable to secure refinancing for its 2021 debt
maturity before it becomes current, or if we expect debt to EBITDA
to remain above 4x at the end of fiscal 2021," S&P said.
"We could revise the outlook to stable if the impact of the
pandemic is less severe than we currently anticipate and the
company is able to quickly recover from the impact and successfully
refinance its 2021 debt maturity. Additionally, under this
scenario, ANF's sales and earnings would begin to rebound later
this year and we would anticipate debt to EBITDA below 4x on a
sustained basis," the rating agency said.
ABSOLUT FACILITIES: May 5 Hearing on Plan & Disclosures
-------------------------------------------------------
Upon the motion of the Official Committee of Unsecured Creditors
for an order (a) establishing procedures for soliciting and
tabulating votes to accept or reject the Committee's proposed,
second amended joint chapter 11 plan, (b) approving the form of
ballots to be utilized to solicit votes to accept or reject the
Plan, and notices of non-voting status and the notice of the
combined hearing to consider Plan confirmation and approval of the
second amended disclosure statement to accompany the Plan, (c)
scheduling a Combined Hearing, and (d) granting related relief,
filed March 16, 2020 of the bankruptcy case of Absolut Facilities
Management, LLC, et al., Judge Alan S. Trust has ordered that the
motion is granted.
The following dates are hereby established and approved, subject to
modification as necessary:
* The voting deadline is on April 24, 2020, at 5:00 p.m.
* The deadline to file Objections to Disclosure Statement
Approval or Plan Confirmation is on April 24, 2020.
* The deadline to file affidavits or affirmations in support of
confirmation and/or objections is on April 30, 2020.
* The deadline to file ballot summary and vote certification is
on April 30, 2020.
* Deadline to file confirmation brief is on April 30, 2020.
* The combined hearing to consider approval of the Disclosure
Statement and Plan is on May 5, 2020, at 11:00 a.m.
The Committee will cause the Solicitation Packages to be
distributed to all holders of claims in Class 4 and Class 5
entitled to vote on the Plan on or before the Solicitation
Deadline. In addition, the Committee shall distribute a complete
Solicitation Package (excluding the Ballot) to the Office of the
U.S. Trustee and to the Debtors.
The Ballots adequately address the particular needs of these
chapter 11 cases, are appropriate for holders of claims entitled to
vote to accept or reject the Plan, comply with the applicable Rules
and are hereby approved.
A full-text copy of order dated March 30, 2020, is available at
https://tinyurl.com/twjhyuu from PacerMonitor.com at no charge.
About Absolut Facilities Management
Absolut Facilities Management, LLC, through its subsidiaries, owns
six skilled nursing facilities and one assisted living facility in
the state of New York, have sought Chapter 11 protection.
On Sept. 10, 2019, Absolut Facilities Management, LLC and seven
related entities each filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 19-76260).
Loeb & Loeb LLP is the Debtors' counsel. Prime Clerk LLC is the
claims and noticing agent.
The Office of the U.S. Trustee on Oct. 3, 2019, appointed five
creditors to serve on the official committee of unsecured
creditors
in the Chapter 11 cases.
ADAIR MECHANICAL: Disclosure Statement Conditionally Approved
-------------------------------------------------------------
Judge Brenda T. Rhoades ruled that the Amended Disclosure Statement
accompanying the Chapter 11 Plan filed by Adair Mechanical
Services, LLC, on March 25, 2020 is conditionally approved.
The hearing to consider final approval of the Debtor's Disclosure
Statement (if a written objection has been timely filed) and to
consider the confirmation of the Debtor's proposed Chapter 11 Plan
is fixed and will be held on May 26, 2020 at 9:30 a.m. in the Plano
Bankruptcy Courtroom, 660 N. Central Expressway, Third Floor,
Plano, Texas 75074.
May 19, 2020 is fixed as the last day for filing and serving
written
objections to: (1) final approval of the Debtor's Disclosure
Statement; or (2) confirmation of the Debtor's proposed Chapter 11
plan pursuant to Federal Rule of Bankruptcy Procedure 3020(b)(1)
and all comments or objections not timely filed and served by such
deadline shall be deemed waived.
May 21, 2020 is fixed as the last day for filing written
acceptances or
rejections of the Debtor's proposed Chapter 11 plan which must be
received by 5:00 p.m. (CDT).
Adair Mechanical Services operates a mechanical contracting
company. The Debtor proposes to restructure its current
indebtedness and continue its operations to provide a dividend to
the unsecured creditors of Debtor.
The Debtor anticipates the continued operations of the business to
fund the Plan.
The Plan treats claims as follows:
* Class 2 Claimants (Allowed Ad Valorem Tax Claims). IMPAIRED.
Denton County has filed a Proof of Claim in the amount of $3,292.99
for business property taxes. The Ad Valorem Taxes due and owing
they will receive post-petition pre-confirmation interest at the
state statutory rate of 12% per annum and post-confirmation
interest at the rate of 12% per annum. Based upon the Proof of
Claim the Debtor would show the monthly payment on the Class 2
claim will be approximately $100.
* Class 3 Claimants (Allowed Tax Claim of the Internal Revenue
Service). IMPAIRED. The IRS has filed a Secured and Priority Proof
of Claim in the amount of $110,534.92. The IRS Priority and Secured
Claims will be paid in full over a 60 month period commencing on
the Effective Date, with interest at a rate of 5% per annum. The
Debtor believes the monthly payment will be approximately $2,086.
* Class 4 Claimants (Allowed Secured Claims of Ally
Bank).IMPAIRED. The Debtor and Ally entered into an Agreed Order
whereby the Debtor surrendered 7 of the vehicles and agreed to make
payments on the remaining two vehicles.
* Class 5 Claimant (Allowed Secured Claims of Simmons Bank).
IMPAIRED. Bank shall have an Allowed Secured Claim in the amount of
$501,986.11 which will be paid in 120 equal monthly installments
with interest at the rate of 5% per annum commencing on the
Effective Date.
* Class 6 Claimant (Allowed Secured Claims of Texas Bank).
IMPAIRED. As of the Petition Date, the Debtor believes the amount
owed to Texas was $84,672. The Debtor would show the value of the
Collateral is $10,000. Texas will have a secured claim in the
amount of $10,000 and a Class 7 unsecured claim fort the remaining
balance of the Note. The Debtor will pay the Class 6 claim in 24
equal payments with interest at the rate of 5% per annum commencing
on the Effective Date.
* Class 7 Claimants (Allowed Unsecured Creditors). IMPAIRED. All
allowed unsecured creditors will share pro rata in the unsecured
creditors pool. The Debtor will make monthly payments commencing
on the Effective Date of $5,000 into the unsecured creditors' pool.
The Debtor will make distributions to the Class 7 creditors every
90 days commencing 90 days after the Effective Date. The Debtor
will make a total of 60 payments into the unsecured creditors pool
with the first payment being made on the Effective Date. The
Debtor may prepay any Class 7 Claim at any time without penalty.
A full-text copy of the Amended Disclosure Statement dated March
25, 2020, is available at https://tinyurl.com/vnzn5fb from
PacerMonitor.com at no charge.
Proposed Attorneys for the Debtor:
Eric A. Liepins
ERIC A. LIEPINS, P.C.
12770 Coit Road
Suite 1100
Dallas, Texas 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
About Adair Mechanical Services
Adair Mechanical Services, Inc., is a commercial and industrial
HVAC, refrigeration, and plumbing contractor with 27 combined years
of experience working with a variety of brands and systems in the
DFW Metroplex.
Based in Argyle, Texas, Adair Mechanical Services filed a voluntary
petition for relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Tex. Case No. 19-41928) on July 19, 2019. The Hon.
Brenda T. Rhoades is assigned the Debtor's case. Eric A. Liepins,
Esq. at the law firm of Eric A. Liepins, P.C., is the Debtor's
counsel.
ADVANCE AUTO: Egan-Jones Lowers Senior Unsecured Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Advance Auto Parts Incorporated to BB- from BB+.
Advance Auto Parts, Inc. 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.
ADVANCED MEDIA: Taps Buether Joe as Special Counsel
---------------------------------------------------
Advanced Media Networks, LLC, received approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Buether, Joe & Carpenter, LLC as special counsel.
Buether will assist Debtor with special legal matters, including
litigation matters, that may arise during the pendency of its
Chapter 11 case.
The firm's hourly rates are as follows:
Attorneys $300 - $700
Paralegal $200
Technical Specialist $200
Secretaries $75
Case Clerk $75
Brian Carpenter, Esq., the firm's attorney who will be providing
the services, charges an hourly fee of $600.
Mr. Carpenter disclosed in court filings that he neither holds nor
represents any adverse interest with respect to the matter on which
he is to be employed.
Buether can be reached through:
Brian A. Carpenter, Esq.
Buether, Joe & Carpenter, LLC
1700 Pacific, Suite 4750
Dallas, Texas 75201
Phone: (214) 466-1273
Fax: (214) 635-1829
E-mail: Brian.Carpenter@BJCIPLaw.com
About Advanced Media Networks
Advanced Media Networks, LLC, provides commercial video
conferencing services and a proprietary mobile telecomputer network
for film and television services.
Advanced Media Networks sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-10846) on May 6,
2019. At the time of the filing, Debtor was estimated to have
assets of between $1 million and $10 million and liabilities of the
same range. Judge Deborah J. Saltzman oversees the case.
Steinberg Nutter & Brent, Law Corporation, is Debtor's legal
counsel.
AEROCENTURY CORP: BDO USA, LLP Raises Going Concern Doubt
---------------------------------------------------------
AeroCentury Corp. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$16,658,500 on $43,599,100 of total revenue and other income for
the year ended Dec. 31, 2019, compared to a net loss of $8,081,200
on $27,116,400 of total revenue and other income for the year ended
in 2018.
The audit report of BDO USA, LLP states that the Company is in
default of its debt obligations under the credit facility that
raises substantial doubt about its ability to continue as a going
concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $149,595,800, total liabilities of $126,337,200, and a total
stockholders' equity of $23,258,600.
A copy of the Form 10-K is available at:
https://is.gd/17xUNf
AeroCentury Corp. is engaged in the business of investing in used
regional aircraft equipment and leasing the equipment to foreign
and domestic regional air carriers. The Company's principal
business objective is to acquire aircraft assets and manage those
assets in order to provide a return on investment through lease
revenue and, eventually, sale proceeds. The Company strives to
achieve this objective by reinvesting cash flow from operations and
using short-term and long-term debt and/or equity financing. The
Company believes its ability to achieve this objective depends in
large part on its success in three areas: asset selection and
acquisition, lessee selection and obtaining financing to acquire
aircraft and engines.
As of Dec. 31, 2019, the Company's aircraft portfolio consisted of
eleven aircraft held for lease, six aircraft held under sales-type
or direct finance leases and seven aircraft held for sale two of
which are being sold in parts. Most of the Company's aircraft are
mid-life regional aircraft, and its globally diverse customer base
consists of nine airlines operating in seven countries.
ALPHA ENTERTAINMENT: Case Summary & 25 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Alpha Entertainment LLC
1266 East Main Street
Stamford, CT 06902
Business Description: Alpha Entertainment LLC, which does business
as the XFL, is a professional American
football league. The XFL kicked off with
games beginning on Feb. 8, 2020. The XFL
offered fast-paced, three-hour games with
fewer play stoppages and simpler rules. The
XFL featured eight teams, 46-man active
rosters, and a 10-week regular season
schedule, with a postseason consisting of
two semifinal playoff games and a
championship game. The eight XFL teams were
the DC Defenders, the Dallas Renegades, the
Houston Roughnecks, the Los Angeles
Wildcats, the New York Guardians, the
St. Louis BattleHawks, the Seattle Dragons,
and the Tampa Bay Vipers. For more
information, visit
https://www.alphaentllc.com.
Chapter 11 Petition Date: April 13, 2020
Court: United States Bankruptcy Court
District of Delaware
Case No.: 20-10940
Judge: Hon. Hon. Laurie Selber Silverstein
Debtor's Counsel: Michael R. Nestor, Esq.
Matthew B. Lunn, Esq.
Kenneth J. Enos, Esq.
Travis G. Buchanan, Esq.
Shane M. Reil, Esq.
Matthew P. Milana, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
E-mail: mnestor@ycst.com
mlunn@ycst.com
kenos@ycst.com
tbuchanan@ycst.com
sreil@ycst.com
mmilana@ycst.com
Debtors'
Claims &
Noticing
Agent: DONLIN, RECANO & CO., INC.
https://www.donlinrecano.com/Clients/alpha/Index
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by John Brecker, independent manager.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/dpkJiO
List of Debtor's 25 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. St. Louis Sports Commission Contract $1,600,000
308 N. 21st Street Suite 500
St. Louis MO 63103
2. Bexel NEP Integrated Contract $1,208,832
Solutions
2 Beta Drive
Pittsburgh, PA 15238
3. Robert Stoops Employee $1,083,333
1266 E Main St Contract
Stamford 06902 06902
4. XOS Contract $887,752
PO Box 742251
Atlanta, GA 30374-2251
5. Elevate Sports Partners Services $856,175
4949 Marie P. Debartolo Way
Santa Clara CA 95054
6. 47 Brand Goods $846,000
PO Box 419648
Boston MA 02241
7. Marc Trestman Employee $777,777
1266 E. Main St. Contract
Stamford 06902 06902
8. Ticketmaster Bluedigital Services $655,148
14643 Collections Center Drive
Chicago, IL 60693
9. Jonathan Hayes Employee $633,333
1266 Main St. Contract
Stamford 06902 06902
10. Winston Moss Employee $583,333
1266 Main St Contract
Stamford 06902 06902
11. Kevin Gilbride Employee $583,333
1266 E Main St Contract
Stamford 06902 06902
12. June Jones Employee $583,333
1266 E Main St. Contract
Stamford 06902 06902
13. James Zorn Employee $583,333
1266 E Main St Contract
Stamford 06902 06902
14. CP Communications Services $378,303
9965 18th Street N
St. Petersburg FL 33716
15. New Meadowlands Stadium Venue Costs $368,000
Company, LLC
One Metlife Stadium Drive
East Rutherford NJ 07073
16. Something Inked Goods $355,000
1018 Elm Hill Pike
Nashville TN 37210
17. Infront IX.COM Services $354,750
1261 Broadway
Suite 200
New York NY 10001
18. DC Stadium LLC Venue Costs $316,112
100 Potomac Ave SW
Washington DC 20024
19. Houston Athletics Venue Costs $294,461
3874 Holman Street, Suite C
Houston TX 77004
20. Jones Lang LaSalle Services $290,203
Americas, Inc. JLL
200 East Randolf Drive
43rd Floor
Chicago IL 60601
21. Tampa Sports Authority Venue Costs $260,000
4201 N. Dale Mabry Hwy
Tampa, FL 33607
22. Yinzcam Services $250,000
5541 Walnut Street
Pittsburgh PA 15232
23. Evolution Media Capital, LLC Contract $250,000
11620 Wilshire Blvd
Suite 460
Los Angeles CA 90025
24. Biggame Goods $217,311
13835 Welch Road
Dallas TX 75244
25. Champion Data Services $215,000
Level 3 6 Riverside Quay
Southbank 3006
Australia
AMAZING ENERGY: Derek A. Henderson Represents Miesner, 2 Others
---------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
Attorney at Law, Derek A. Henderson submitted a verified statement
that it is representing these creditors in the Chapter 11 cases of
Amazing Energy Holdings, LLC:
Arnold Jed Miesner
Lesa Renee Miesner
1 Woodstone Street
Amarillo, TX 79106
* Note and Leasehold Deed of Trust and
Shareholder of Parent Company
Petro Pro, Ltd.
701 South Taylor Street
Suite 470 LB 113
Amarillo, TX 79101
* Note and Leasehold Deed of Trust
JLM Strategic Investments, LP
701 South Taylor Street
Suite 470 LB 113
Amarillo, TX 79101
* Note and Leasehold Deed of Trust
Counsel for Arnold Jed Miesner, Lesa Renee Miesner, JLM Strategic
Investments, LP and Petro Pro, Ltd. can be reached at:
Derek A. Henderson, Esq.
1765-A Lelia Drive, Suite 103
Jackson, MS 39216
Tel: (601) 948-3167
E-mail: derek@derekhendersonlaw.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://is.gd/Nixem2
The Chapter 11 case is In re Amazing Energy Holdings, LLC (Banks.
S.D. Miss. Case No. 20-01245 NPO).
AMERICAN AXLE: S&P Cuts ICR to 'B+'; Ratings on Watch Negative
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on American
Axle Manufacturing Holdings Inc. to 'B+' from 'BB-', its
issue-level rating on its senior secured term loan to 'BB-' from
'BB', and its issue-level rating on its unsecured notes to 'B-'
from 'B'. S&P's '2' (rounded estimate: 80%) recovery rating on the
term loan and '6' (rounded estimate: 5%) recovery rating on the
unsecured notes remain unchanged.
Governments have implemented unprecedented containment actions to
slow the spread of the coronavirus, including shutting down many
businesses. Major automakers have announced they are halting
production to protect their workers and support the containment
effort. Therefore, American Axle is withdrawing its 2020 financial
outlook. The company has also implemented measures to match its
level of operations with its customers' revised production
schedules, which will will involve adjusting its variable cost
structure and reducing expenses.
"Due to the severity of the pandemic, our economists now forecast
that the U.S. will enter a recession this year (assuming it is not
already in one). In addition, we revised our U.S. GDP growth
expectation for the second quarter to a 12% contraction, down from
a 6% decline previously. Therefore, we assume U.S. light-vehicle
sales will fall to 13.4 million in 2020 before rebounding to 15.6
million in 2021. We also anticipate that American Axle's revenue
will decline by 20% in 2020 and rise by 12% in 2021. We expect the
company's debt to EBITDA to increase to 5.2x and its free operating
cash flow (FOCF)-to-debt ratio to fall to 2.3% in 2020. On a
weighted basis, American Axle's FOCF to debt has already declined
to near 5%, which is a key factor behind the downgrade," S&P said.
CreditWatch
"The CreditWatch placement reflects that there is at least a 50%
chance we will lower our ratings on American Axle by one notch if
its plants remain idle for longer than we expect, causing its cash
flow generation to turn negative, eroding its liquidity, and
increasing its debt leverage with no signs of an imminent
improvement. The length of the shutdown will depend on how soon the
pace of coronavirus infections flattens and governments relax their
restrictions on movements. The pandemic's effect on American Axle's
creditworthiness will also depend upon how soon consumers regain
confidence and begin purchasing big-ticket items, such as vehicles,
after the outbreak is contained," S&P said.
Environmental, social, and governance (ESG) factors were involved
in this credit rating change because social risks related to health
and safety factors stemming from the coronavirus pandemic have
affected its customers' production. Environmental risks will
significantly influence S&P's assessment of American Axle's
competitive advantage over the next few years. With a
higher-than-average exposure to electrification, its ability to
offset losses in its engine- and transmission-related business
largely depends on increasing the content per vehicle in its
differential and axle electrification businesses. A
faster-than-expected transition to battery electric vehicles,
coupled with slow adoption of the company's technology, is a major
downside risk. Through ongoing investments in lightweight axles and
advanced drive units, the company has the technological capability
to support the increased electrification of vehicle powertrains at
a competitive cost. S&P expects high research and development costs
to increase American Axle's selling, general, and administrative
(SG&A) expenses to near 6% of its sales over the next two to three
years as its capital expenditure remains high at 5%-7% of sales.
This will likely limit any improvement in its EBITDA margins and
FOCF in the coming years.
The company's social risks remain somewhat high but manageable.
American Axle has stopped work in the past due to unfavorable
negotiations because about 55% of its associates are covered by
collective bargaining agreements with various labor unions.
American Axle's governance risks are low because it will likely
extend its good track record of disciplined capital allocation and
sound management of the executional risks related to its launch
activity. This should help the combined company navigate through
potential operational issues as it works with its new customers to
launch new technology.
AMERICAN RENAL: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings affirmed all of its ratings on American Renal
Associates Holdings Inc. and its debt, including its 'B-' issuer
credit rating. It revised the outlook to negative from stable,
reflecting the risk of a covenant violation and sustained free cash
flow deficits (after noncontrolling interest distribution but
before growth capital expenditure).
The key driver for the outlook revision is the risk of a covenant
violation, given the significant uncertainties that COVID-19
introduces. Although S&P believes American Renal Associates
Holdings Inc. could secure a covenant amendment if required, higher
interest costs from a potential credit agreement amendment may
result in sustained free cash flow deficits (after maintenance
capital expenditure (capex) and noncontrolling interest (NCI)
distribution, but before growth capex), which would leads it to
view the capital structure as unsustainable.
The negative outlook reflects the risk of a covenant violation this
year, as well as S&P views that any amendment that increases
interest expense could result in sustained free cash flow deficits
(after maintenance capex and NCI distribution but before growth
capex). Maintenance capex is 0.5%-1% of revenue.
"We could lower the rating if we expect American Renal to produce
sustained free cash flow deficits (after NCI distribution but
before growth capex). This could happen via higher interest expense
if the company is granted a covenant amendment. It could also
happen via a negative payor mix change (possibly due to high
unemployment rates) or higher expenses this year as a result of the
pandemic," S&P said.
"We could revise the outlook to stable if we gain confidence that
American Renal can comfortably remain in compliance with its
financial covenants. In addition, the company needs to consistently
produce positive free cash flow after distribution to NCI but
before growth capex," the rating agency said.
AMNEAL PHARMACEUTICALS: Crescent Says $3.2M Loan at 90% of Face
---------------------------------------------------------------
Crescent Capital BDC, Inc., has marked its $3,226,688 in loans
extended to Amneal Pharmaceuticals LLC to market at $2,916,926 or
90% of the outstanding amount, as of Dec. 31, 2019, according to a
disclosure contained in Crescent's Form 10-K filing with the
Securities and Exchange Commission for the fiscal year ended Dec.
31, 2019.
Crescent provided the Company a Senior Secured First Lien Loan that
is scheduled to mature May 1, 2025. The loan charges interest at
LIBOR + 350. The weighted average current interest rate in effect
at December 31, 2019, is 5.31%.
Amneal is a drug company.
ANCHORAGE MIDTOWN: Plan & Disclosures Hearing on April 15
---------------------------------------------------------
On March 25, 2020, the Bankruptcy Court held a status conference of
Anchorage Midtown Motel, Inc.
Judge Gary Spraker has ordered that the following matters currently
scheduled for hearing on Monday, March 30, 2020 are CONTINUED to
April 15, 2020 at 2:30 p.m. in the Herbert A. Ross Historic
Courtroom, 605 West 4th Avenue, Anchorage, AK 99501:
* First National Bank Alaska's (FNBA) Motion to Dismiss or
Convert;
* Application for Order Authorizing Debtor to Employ Curt Nading
as Real Estate Licensee;
* Application for Order Authorizing Debtor to Employ Martin
Severin to Provide Financial Services to the Estate; and
* A case status and planning conference.
A hearing on the Debtor's Chapter 11 Plan and Disclosure Statement
currently scheduled for April 15, 2020 at 9:30 a.m. will be called
by the court at that time and continued to April 15, 2020 at 2:30
p.m.
No later than April 6, 2020, the parties must file with the court
and serve on the opposing party the following regarding the
evidentiary hearing on the Motion to Dismiss:
* Declarations in lieu of direct testimony; and
* An exhibit list, with exhibits attached.
No later than April 10, 2020, the Debtor must file with the court
and serve on United States Trustee the following regarding the
hearing on the Debtor's Chapter 11 Plan and Disclosure Statement:
* A written brief in support of plan confirmation;
* Declarations in lieu of direct testimony; and
* An exhibit list, with exhibits attached.
All appearances will be telephonic, and counsels are responsible
for calling into the court's teleconference phone number.
About Anchorage Midtown Motel
Anchorage Midtown Motel, Inc., is a single asset real estate as
defined in 11 U.S.C. Section 101(51B). It owns the Anchorage
Midtown Motel, a centrally located motel/boarding house consisting
of four buildings with more than 62 rooms.
Anchorage Midtown Motel, based in Anchorage, Arkansas, filed a
Chapter 11 petition (Bankr. D. Alaska Case No. 17-00148) on April
25, 2017, listing $1 million to $10 million in assets and less
than
$1 million in liabilities. A Chapter 11 plan was confirmed on
Dec.
5, 2017.
The 2017 petition was signed by Kelly M. Millen, the Debtor's
vice-president and secretary. Judge Gary Spraker presided over
the
2017 case. Michael R. Mills, Esq., at Dorsey & Whitney LLP,
served
as the Debtor's bankruptcy counsel in that case.
Anchorage Midtown Motel again filed for Chapter 11 bankruptcy
(Bankr. Alaska Case No. 19-00369) on Nov. 21, 2019, listing under
$10 million in assets and $500,001 to $1 million in liabilities.
Dorsey & Whitney LLP also serves as bankruptcy counsel in the case.
APCO HOLDINGS: Moody's Cuts CFR to Caa1 & Alters Outook to Neg.
---------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of APCO Holdings Inc. to Caa1 from B3, and the probability
of default rating to Caa1-PD from B3-PD. The downgrade reflects
APCO's likely decline in business activity resulting from the
coronavirus and the related economic shock. The rating agency also
downgraded APCO's senior secured term loan and revolving credit
facility to Caa1 from B3. Moody's changed APCO's rating outlook to
negative from stable based on uncertainty about its prospective
earnings and free cash flow over the next few quarters and its
limited borrowing capacity under the revolving credit facility.
RATINGS RATIONALE
The downgrade of APCO's ratings reflects Moody's expectation that
the coronavirus-related economic downturn will weigh on this
service company's revenue, earnings and cash flow given its focus
on marketing and administering vehicle service contracts and other
ancillary products associated with North American auto sales. More
than half of APCO's revenue is directly related to sales of new and
used vehicles. Moody's expects that US light vehicle sales will
fall by at least 15% in 2020, and perhaps by 30% in the second
quarter, as many production facilities and dealerships have put
their operations on hold.
APCO has significant variable costs that will decline with falling
revenue, and it is taking steps to reduce other expenses to
conserve liquidity. The company has also drawn on its revolving
credit facility to bolster its cash position. Nevertheless, Moody's
expects that APCO's leverage and coverage metrics will deteriorate
over the next few quarters. The negative rating outlook reflects
uncertainty over the duration and severity of state mandated
restrictions on business activity and the ultimate impact on APCO's
financial performance.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety and the resulting slowdown in business activity. Its
action reflects the impact on APCO of the breadth and severity of
the shock, and the deterioration in credit quality it has
triggered.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative rating outlook, a ratings' upgrade for APCO is
unlikely. Factors that could return the outlook to stable include
sustained improvement in operating performance, liquidity and
financial leverage and interest coverage metrics. Factors that
could lead to a rating downgrade include: (i) sustained
deterioration in revenue, (ii) (EBITDA - capex) coverage of
interest remaining below 1x, or (iii) free cash flow remaining
negative.
Moody's has downgraded the following ratings of APCO:
Corporate family rating to Caa1 from B3;
Probability of default rating to Caa1-PD from B3-PD;
$20 million first-lien senior secured revolving credit facility
maturing in 2023 to Caa1 (LGD3) from B3 (LGD3);
$220 million first-lien senior secured term loan maturing in 2025
to Caa1 (LGD3) from B3 (LGD3).
The rating outlook for APCO has been revised to negative from
stable.
The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in June 2018.
Based in Georgia, APCO is a leading marketer and administrator of
vehicle service contracts and complementary products sold by auto
dealers throughout the US and Canada. The company operates two
distinct brands, EasyCare, which focuses on franchise dealers, and
GWC Warranty, which focuses on independent dealers selling
primarily used cars. APCO designs the VSCs, services customer
claims on behalf of a number of insurers, and shares in profits
when underwriting results are favorable. However, the company does
not bear material underwriting risk on the VSCs. In January 2016,
the Ontario Teachers' Pension Plan acquired a controlling stake in
the company through a leveraged buyout.
APEX ENERGY: Disclosure Statement Conditionally Approved
--------------------------------------------------------
Judge Benjamin P. Hursh has ordered that the Apex Energy, LLC's
Disclosure Statement filed March 23, 2020, is conditionally
approved.
In this small business Chapter 11 bankruptcy, the Debtor filed on
March 23, 2020, a Plan of Reorganization for Small Business Under
Chapter 11 and a Disclosure Statement.
The hearing on confirmation of the Debtor's Plan and on final
approval of Debtor's Disclosure Statement will be held Tuesday,
April 28, 2020, at 9:00 a.m., or as soon thereafter as the parties
can be heard, in the Ella Knowles Courtroom, 4th Floor Room 4805,
James F. Battin United States Courthouse, 2601 2nd Avenue North,
Billings, Montana.
April 17, 2020, is fixed as the last day for filing and serving
written objections to confirmation of Debtor's Plan, and for filing
written acceptances or rejections of said Plan.
The Chapter 11 case is In re Apex Energy, LLC (Bankr. D. Mont. Case
No. 19-60676).
ARETE HEALTHCARE: IRS Looking for Floresville Tax Returns
---------------------------------------------------------
The United States of America, on behalf of the Internal Revenue
Service, filed an objection to Arete Healthcare, LLC, et al's
Disclosure Statement.
The United States points out that the Debtor The Emergency Clinic
of Floresville, LLC, Bankruptcy Case No. 19-52579, has not filed
employment tax returns for the 4th quarter of 2017, all four
quarters of 2018 and all four quarters of 2019, as well as form 940
for 2017 and 2018. The United States requests that such returns be
filed before the disclosure statement is approved.
The United States asserts that the employment tax returns for the
4th quarter of 2017, all four quarters of 2018, and all four
quarters of 2019, as well as form 940 for 2017 and 2018 be filed
before the disclosure statement is approved so that the feasibility
of the plan can be determined.
About Arete Healthcare
Arete Healthcare, LLC and its affiliates The Emergency Clinic of
Floresville LLC, Schertz-Cibolo Emergency Center LLC and Southcross
Hospital LLC, provide health care services.
Schertz-Cibolo Emergency Center owns and operates the Schertz
Cibolo Emergency Clinic -- http://www.schertzhealth.com/-- a
free-standing facility that is a fully equipped ER, staffed with
board-certified physicians and registered nurses. It has an
on-site laboratory and a complete radiology department including CT
scanner, ultrasound, and digital X-ray.
The Emergency Clinic of Floresville owns and operates Emergency
Care of Floresville, an emergency clinic offering a full-service,
24-hour emergency room, an on-site lab, CT, digital x-ray, and
ultrasound.
Southcross Hospital Llc is a general acute care hospital in San
Antonio, Texas, while Arete Healthcare manages the other three
debtors.
Arete Healthcare and its affiliate sought protection under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Tex. Lead Case No. 19-52578)
on Nov. 3, 2019.
At the time of the filing, Southcross Hospital had estimated assets
of between $500,000 and $1 million and liabilities of between $1
million and $10 million. The other companies each disclosed assets
of between $1 million and $10 million and liabilities of the same
range.
Judge Craig A. Gargotta oversees the cases.
The Debtors tapped Allen M. DeBard, Esq., at Langley & Banack,
Inc., as their legal counsel.
The Office of the U.S. Trustee appointed creditors to serve on the
committee of unsecured creditors on Nov. 27, 2019. The committee
is represented by Brinkman Portillo Ronk, APC.
BANESCO USA: Fitch Places 'BB-' LT IDR on Watch Negative
--------------------------------------------------------
Fitch Ratings has placed Banesco USA's Long-Term Issuer Default
Rating of 'BB-' on Rating Watch Negative and simultaneously removed
it from Rating Outlook Positive. This action follows the revision
of Fitch's sector and rating Outlook for U.S. banks to Negative
from Stable due to the coronavirus pandemic.
KEY RATING DRIVERS
IDR and Viability Rating
The placement of BNSC's Long-Term IDR on Rating Watch Negative
reflects concerns over the financial impact of the coronavirus
pandemic on the company's financial profile, particularly in light
of elevated exposure to commercial real estate and the travel and
leisure segments, reliance on spread income and an increasing
loan-to-deposit ratio.
Fitch expects global economic growth to decline sharply in 2020 and
now estimates that GDP could decline 1.9% globally and 3.3% in the
U.S. in 2020 in its baseline forecast. Fitch considers these
conditions as inconsistent with improving asset quality and
earnings measures, which had previously supported BNSC's Positive
Outlook. Fitch believes industries related to travel and leisure,
which are key components of the South Florida economy, could be
especially impacted. Additionally, South Florida is a gateway to
Latin America and a severe economic downturn is likely to curtail
foreign trade.
BNSC is largely reliant on spread income, which typically accounts
for 83%-85% of total revenue. As a result, Fitch expects lower
asset yields stemming from the Federal Reserve's dramatic 150bp cut
in interest rates to negatively impact net interest income.
Additionally, fee income from activities such as correspondent
banking could slacken as economic activity declines globally.
Fitch has historically viewed BNSC's lack of a holding company
structure as a ratings constraint since it limits BNSC's ability to
raise capital in adverse conditions. While BNSC's owners have
demonstrated a willingness to provide additional capital, Fitch's
ratings do not incorporate any expectation of additional capital
support.
BNSC's deposit base has traditionally included a large proportion
of international deposits, sourced primarily from Venezuelan
depositors. Over time, these deposits have provided the bank with a
very stable and price insensitive source of funding. More recent
growth in domestically sourced deposits has been in higher cost and
less stable time deposits. While Fitch views BNSC's liquidity as
adequate, lower deposit balances have caused its loans-to-deposits
ratio to trend above historical norms. Although this increase has
come about as part of the bank's efforts to rebalance its deposit
mix, it has tightened liquidity.
SUPPORT RATING AND SUPPORT RATING FLOOR
BNSC has a Support Rating of '5' and Support Rating Floor of 'NF'.
In Fitch's view, BNSC is not systemically important. Fitch's
support rating and support floor assume neither institutional
support from any of its sister entities, nor sovereign support from
the U.S. The IDR and VR do not incorporate any support.
Historically, BNSC's principal shareholders have demonstrated a
willingness to provide capital.
LONG- AND SHORT-TERM DEPOSIT RATINGS
BNSC's uninsured deposit ratings are rated one notch higher than
the company's IDR because U.S. uninsured deposits benefit from
depositor preference. U.S. depositor preference gives deposit
liabilities superior recovery prospects in the event of default.
RATING SENSITIVITIES
IDR & VR
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
In resolving the Rating Watch Negative, Fitch will focus on BNSC's
commercial real estate portfolio which has notable exposure to
segments that may become particularly stressed during this crisis.
Additionally, BNSC operates almost exclusively in South Florida and
Puerto Rico, where the regional economies are significantly
influenced by the travel and leisure industries, which may be
especially hard hit. Its review will incorporate an assessment of
potential loss content in portfolios that may come under greater
stress. Banesco USA's ratings would be sensitive to the extent loss
expectations would be higher than for community banks.
While profitability metrics have improved over the last three
years, earnings have historically been volatile, since, as
relatively small bank, idiosyncratic events can have an outsized
impact on profitability. Ratings could be pressured should earnings
be adversely impacted, resulting in more than one quarter of loss
as a result of the coronavirus pandemic, either from large credit
losses or from weaker demand for loans or correspondent banking
services.
While Fitch views current capital levels as sufficient for the
rating, negative rating pressure could build should losses stemming
from the potentially severe economic impact of the coronavirus
outbreak diminish capital levels such that its Tier 1 capital ratio
trends below its five-year average of 11.8% by more than 200bps.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
The Rating Outlook could be revised to Stable, should the bank
experience loan losses through the coronavirus pandemic that are in
line with community bank peers. Thereafter, factors that could
influence a ratings upgrade over the longer-term could include
consistently improved profitability in line with community bank
peers; asset quality metrics superior to peers through the current
economic disruption and greater loan diversification and a
commercial real estate (CRE) concentration below the regulatory
threshold of 300% of risk-based capital.
LONG- AND SHORT-TERM DEPOSIT RATINGS
The long- and short-term deposit ratings are sensitive to any
change to Banesco USA's Long- and Short-Term IDRs.
ESG CONSIDERATIONS
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.
BEST/WORST CASE RATING SCENARIO
Ratings of Financial Institutions 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.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
BARKATH PROPERTIES: Unsec. Creditors to Get At Least 10% in Plan
----------------------------------------------------------------
Debtors Barkath Properties, LLC, Libertyville Imaging Associates,
Inc., and MRI of Libertyville, LLC, filed with the U.S. Bankruptcy
Court for the Northern District of Illinois, Eastern Division, a
Plan of Reorganization and a Disclosure Statement on March 26,
2020.
This Plan is intended to recognize the economic reality that MRI
operates the business that generates the income that LIA collects
to pay its much more minor bills and passes down to MRI to pay its
operating expenses, including rent to Barkath, and that all three
entities are jointly liable to pay the claims of Byline Bank, which
holds security interests in virtually all of the Debtors combined
real and personal property.
Class 11 (M) MRI General Unsecured Claims of Non-Insiders total
$184,581. The claim will be paid 10% in equal monthly installments
over 5 years beginning on the Effective Date, plus a pro-rata share
with all other unsecured classes of 50% of the Annual Net Profits
paid annually 30 days after the three Debtors file their Federal
Income Tax Returns.
Class 12 (L) LIA General Unsecured Claims of Non-Insiders total
$422,887. This claim will be paid 10% in equal monthly
installments over 5 years beginning on the Effective Date, plus a
pro-rata share with all other unsecured classes of 50% of the
Annual Net Profits paid annually 30 days after the three Debtors
file their Federal Income Tax Returns.
Class 13 (B) Barkath General Unsecured Creditors of Non-Insiders
total $15,153. This claim will be paid 10% in equal monthly
installments over 5 years beginning on the Effective Date, plus a
pro-rata share with all other unsecured classes of 50% of the
Annual Net Profits paid annually 30 days after the three Debtors
file their Federal Income Tax Returns.
Class 15 (M) MRI General Unsecured Claims of Insiders of $887,945
held by Shoukath and Raana Ahmed against MRI. The claims will not
be paid anything under the Plan.
Class 16 (L) LIA General Unsecured Claim of Insider of $738,115
held by MRI against LIA. The claim of $738,115 owed by LIA to MRI
will receive no dividend.
The Debtors will pay the monthly payments due under the Plan
through operations of the business.
The Debtors will retain all of their assets on and after the
Effective Date. MRI will serve as the Disbursing Agent for the
Plan and MRI will administer the Plan and any payments called for
herein. No separate compensation will be paid to the Disbursing
Agent for performing the services called for under the Plan.
A full-text copy of the Joint Disclosure Statement dated March 27,
2020, is available at https://tinyurl.com/uocksby from PacerMonitor
at no charge.
Counsel for Barkath Properties:
O. Allan Fridman
Law Office of O. Allan Fridman
555 Skokie Blvd. Street, Suite 500
Northbrook, IL 60062
Tel: 847.412. 0788
Counsel for Libertyville Imaging:
Chester H. Foster, Jr.
Foster Legal Services, PLLC
16311 Byron Dr.
Orland Park, IL 60462
Tel: 708.403.3800
Counsel for MRI:
Keevan D. Morgan
Alanna G. Morgan
Morgan & Bley, Ltd.
900 W. Jackson Blvd., Suite 4 East
Chicago, IL 60607
Tel: 312.243.0006
About Barkath Properties
Barkath Properties is a privately held company engaged in
activities related to real estate. The Company owns in fee simple a
shopping mall unit in Libertyville, Illinois valued at $1.80
million and a commercial building in Waukegan, Illinois valued at
$150,000.
Barkath Properties sought Chapter 11 protection (Bankr. N.D. Ill.
Case No. 19-23544) on Aug. 21, 2019. The petition was signed by
Shoukath Ahmed, manager. As of the Petition Date, Debtor recorded
$2,097,271 in total assets and $5,177,277 in total liabilities.
The LAW OFFICE OF O. ALLAN FRIDMAN is serving as the Debtor's
counsel.
BASS PRO GROUP: S&P Lowers ICR to 'B'; Outlook Negative
-------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Bass Pro
Group LLC to 'B' from 'B+'. S&P also lowered its issue-level rating
on the company's term loan facility to 'B' from 'B+'. The '3'
recovery rating is unchanged.
"The downgrade reflects the weakened operating environment we
expect resulting from the coronavirus pandemic as well as our
economist's expectation for a recession in the U.S. in 2020. We
have therefore revised our projections for Bass Pro and are now
expecting a significant decline in revenue and profit this year,
with a modest recovery in 2021. This leads to adjusted leverage in
the 8x range in 2020 but improving to the mid 6-x area the
following year. This compares to our previous forecast for leverage
in the low-5x area in 2020," S&P said.
The negative outlook reflects the risk for a lower rating if
business disruptions related to the coronavirus and ensuing
economic downturn are more severe than S&P expects, leading the
rating agency to reassess the company's business and financial
prospects.
"We could lower the ratings on Bass Pro if operational performance
meaningfully weakens compared with our expectations because of a
protracted decline in the economy and consumer spending, indicating
a deterioration in its competitive standing. Under this scenario,
Bass Pro's experiential store elements could lose customer appeal.
We could also lower the ratings if we no longer believe leverage
will improve to the mid-6x area in 2021," S&P said.
"We could revise the outlook to stable if we see a clear path to
sustainable sales and profit growth such that leverage improves to
the mid-6x area. Under this scenario, we would expect performance
to improve in line with our expectations, with the company
leveraging its destination store model," the rating agency said.
BED BATH: Egan-Jones Lowers Senior Unsecured Ratings to C
---------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Bed Bath & Beyond Incorporated to C from CCC. EJR
also downgraded the rating on commercial paper issued by the
Company to D from C.
Founded in 1971, Bed Bath & Beyond Incorporated is an American
chain of domestic merchandise retail stores. The Company operates
many stores in the United States, Canada, and Mexico.
BERGIO INTERNATIONAL: Delays Filing of Annual Report
----------------------------------------------------
Bergio International, Inc. seeks an extension of 45 days to file
its annual report on Form 10-K for the fiscal year ended Dec. 31,
2019, based on the SEC Order under Section 36 of the Exchange Act,
set forth in Release No. 34-88318, issued March 4, 2020, which
authorizes the Commission to exempt, either conditionally or
unconditionally, any person, security or transaction, or any class
or classes of persons, securities, or transactions, from any
provision or provisions of the Exchange Act or any rule or
regulation thereunder, to the extent that such exemption is
necessary or appropriate in the public interest, and is consistent
with the protection of investors.
The Company noted that the governments and authorities in many
cities and countries in the globe have implemented various severe
measures in controlling the spread of COVID-19 such as imposing
travel restrictions and quarantine arrangements that impeded the
Company's staff in preparing the final financial statements.
Accounting confirmations from the Company's debtors and vendors for
audit purposes have been delayed. Therefore, the Company needs to
extend its filing date of its Annual Report within the time frame
of the extension, on or before May 14, 2020.
About Bergio International
Headquartered in Fairfield, NJ, Bergio International, Inc. --
https://bergio.com -- is engaged in the product design,
manufacturing, distribution of fine jewelry primarily in the United
States. The Company also have two retail stores located in
Closter, NJ and Atlantic City, NJ.
Bergio reported a net loss of $417,314 for the year ended Dec. 31,
2018, compared to a net loss of $214,472 for the year ended Dec.
31, 2017. As of Sept. 30, 2019, the Company had $1.43 million in
total assets, $2.33 million in total liabilities, and a total
stockholders' deficit of $895,015.
Tama, Budaj and Raab, LLP, in Farmington Hills, Michigan, the
Company's auditor since 2018, issued a "going concern"
qualification in its report dated Aug. 20, 2020 citing that the
Company has suffered recurring losses, has a stockholders' deficit,
has no cash on hand and has convertible debt that is overdue.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
BLACKHAWK NETWORK: S&P Lowers ICR to 'B-'; Outlook Stable
---------------------------------------------------------
S&P Global Ratings downgraded Blackhawk Network Holdings Inc. to
'B-' from 'B'. The outlook is stable. S&P also lowered its
issue-level rating on the company's senior secured first-lien debt
and senior secured second-lien debt to 'B-' and 'CCC',
respectively, from 'B' and 'CCC+'.
"The downgrade reflects our view that a deteriorating U.S.
macroeconomic environment will lead to revenue and EBITDA decline
at Blackhawk Networks and that leverage will exceed 9x while free
cash flow turns negative for 2020. Since Blackhawk derives
approximately 35% of revenue from the sale of physical gift cards
at retail stores, we expect it will experience significant downside
from a slowdown in consumer spending and retail traffic. Although
we currently forecast U.S. economic growth to stabilize in the
fourth quarter--when Blackhawk books a substantial share of its
annual revenue--there might be further downside to Blackhawk's
business if consumer spending continues to contract through the
holiday season. The depth and longevity of the anticipated U.S.
recessions/lockdowns are significant downside risks to our
forecast, and we believe there is significant uncertainty regarding
near-term consumer discretionary spending. We do expect the
company's employee incentive and digital gift card businesses to
fare better than the physical product, but believe that Blackhawk's
relatively low share of recurring revenue is also likely to drive
volatility in operating results," S&P said.
"Our stable outlook on Blackhawk is based on our expectation that
Blackhawk will experience a double-digit organic revenue decline in
fiscal 2020 but still maintain a relatively strong balance sheet.
However, we believe that the balance of risks remain firmly tilted
to the downside with respect to the significant uncertainties
surrounding the U.S. consumer, the duration of the coronavirus
pandemic, and the anticipated recovery in second half of 2020. All
of these factors could potentially have outsized impacts on
revenue, especially due to the inherent seasonality in Blackhawk,"
the rating agency said.
S&P forecasts that leverage will rise to the mid-9x area by the end
of 2020 and anticipates free cash flow to remain negative. Its base
case scenario assumes Blackhawk will not pursue additional major
acquisitions over the next 12 months and the rating agency expects
Blackhawk to be modestly free cash flow negative for 2020.
"We could lower the outlook over the next year if the company
experienced a significant deterioration in revenue and we believed
that it were unlikely to return to positive free cash flow in 2020.
We believe that this would be most likely to occur if the economic
impact from COVID-19 led to a prolonged downturn that severely
impaired consumer spending through the 2020 holiday season," S&P
said.
"We could raise the rating if adjusted debt to EBITDA were
sustained at below 7.5x and we believed management intended to
maintain leverage at or below this level through acquisitions and
business cycles. In addition, we could also revise the outlook to
stable if free cash flow improved significantly into positive
territory or if the economy improved significantly," S&P said.
BLACKWOOD REDEVELOPMENT: May 7 Hearing on Disclosure Statement
--------------------------------------------------------------
A hearing on the adequacy of the Disclosure Statement filed by
Blackwood Redevelopment Co. Inc., will be held before the Honorable
Jerrold N. Poslusny Jr. on May 7, 2020 at 10:00 AM, in Courtroom
4C, US Bankruptcy Court, 4th and Cooper Streets, Camden, NJ 08101.
Written objections to the adequacy of the Disclosure Statement must
be filed and served no later than 14 days prior to the hearing
before this Court.
About Blackwood Redevelopment
Blackwood Redevelopment Co. Inc., based in Blackwood, NJ, filed a
Chapter 11 petition (Bankr. D.N.J. Case No. 19-15937) on March 25,
2019. In the petition signed by Daniel Riiff, president, the
Debtor
disclosed $1,400,000 in assets and $4,342,768 in liabilities.
Scott
H. Marcus, Esq., at Nehmad Perrillo Davis & Goldstein, PC, serves
as bankruptcy counsel to the Debtor.
BLACKWOOD REDEVELOPMENT: U.S. Trustee Objects to Disclosure
-----------------------------------------------------------
Andrew R. Vara, the United States Trustee for Region 3, objects to
the adequacy of the Disclosure Statement describing the Chapter 11
Plan of Liquidation proposed by Debtor Blackwood Redevelopment Co.,
Inc.
The United States Trustee raises these issues:
* The Debtor proposes to fund the Plan through the sale of its
asset, the real property located at 109 N. Blackhorse Pike,
Blackwood, NJ along with a liquor license owned by an associated
but distinct entity J.A.L.C., LLC. There is no information provided
concerning the potential sale of the property located at 109 N.
Blackhorse Pike, Blackwood, New Jersey.
* Pursuant to the Disclosure Statement, the Debtor sets forth
that JALC will allow its liquor license to be sold, with those
proceeds being provided to the Debtor to fund the Plan. As JALC is
a separate but related company, the Debtor should be required to
provide some evidence of JALC's agreement to use its funds for the
benefit of the Debtor's Plan.
* The Liquidation Analysis refers to HSBC as holding a secured
claim. However, Prinsbank and ATCF II appear to be secured
creditors in this case, not HSBC.
* The Disclosure Statement should provide more information to
unsecured creditors concerning the fact that unsecured creditors
may or may not receive a distribution. This should be notated
conspicuously for unsecured creditors to review.
A full-text copy of the U.S. Trustee's objection dated March 27,
2020, is available at https://tinyurl.com/sumglav from PacerMonitor
at no charge.
About Blackwood Redevelopment
Blackwood Redevelopment Co. Inc., based in Blackwood, NJ, filed a
Chapter 11 petition (Bankr. D.N.J. Case No. 19-15937) on March 25,
2019. In the petition signed by Daniel Riiff, president, the Debtor
disclosed $1,400,000 in assets and $4,342,768 in liabilities.
Scott H. Marcus, Esq., at Nehmad Perrillo Davis & Goldstein, PC,
serves as bankruptcy counsel to the Debtor.
BOBBY DEAN JONES: Parker Poe Represents BOTW, BEFCOR
----------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firm of Parker Poe Adams & Bernstein LLP submitted a
verified disclosure that it is representing Bank of the West and
Business Expansion Funding Corporation in the Chapter 11 cases of
Bobby Dean Jones, Jr. dba Buzz Kutz dba Melons and Bloomers, and
Lisa Ginn Jones fka Lisa Carmen Ginn.
Patricia M. Adcroft is an attorney with the law firm of Parker Poe,
301 Fayetteville Street, Suite 1400, Raleigh, North Carolina 27601;
Telephone (919) 828-0564; Facsimile (919) 834-4564.
Parker Poe currently represents the following creditors in this
proceeding:
a. Bank of the West ("BOTW"); and
b. Business Expansion Funding Corporation ("BEFCOR").
Reserving the right to assert additional claims or to file Proofs
of Claim in any amount as such claims are discovered, the nature of
each of the foregoing entity's currently-known claims and/or
interests are as follows:
a. BOTW is a secured creditor with respect to certain equipment
collateral of the Debtor.
b. BEFCOR is a secured creditor with respect to certain real
property collateral of the Debtor.
Parker Poe has fully disclosed to BOTW and BEFCOR this joint
representation and both parties consent to the joint
representation.
Parker Poe claims no interest or amounts with respect to this case,
but instead represents the clients named herein and their claims
and/or interests.
This statement is made by Patricia M. Adcroft, an attorney duly
admitted to the Bar of the State of North Carolina and an associate
with the firm of Parker Poe, under penalty of perjury and is
verified to be true and correct as of the date hereof and to the
best of her knowledge and belief.
The Firm can be reached at:
Patricia M. Adcroft, Esq.
Parker Poe Adams & Bernstein LLP
301 Fayetteville Street, Suite 1400
Raleigh, NC 27602
Telephone: (919) 828-0564
E-mail: pattyadcroft@parkerpoe.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://is.gd/zeR8Qh
The Chapter 11 case is In re BOBBY DEAN JONES, JR. d/b/a Buzz Kutz
dba Melons and Bloomers, and LISA GINN JONES f/k/a Lisa Carmen Ginn
(Banks. E.D.N.C. Case No. 20-00780-5-SWH).
BOY SCOUTS: New York Court Stays Eric Burrus Sexual Abuse Lawsuit
-----------------------------------------------------------------
District Judge Brian M. Cogan stays the case captioned ERIC R.
BURRUS, Plaintiff, v. BOY SCOUTS OF AMERICA and BOY SCOUTS OF
AMERICA, Pack 494, Defendants, No. 20-cv-0876 (BMC) (E.D.N.Y.)
pending further order of the district court for the District of
Delaware.
Plaintiff brought the action in the Supreme Court for the State of
New York, Kings County, against defendants, Boy Scouts of America
and BSA, Pack 494, alleging that he was sexually abused by a BSA
Scoutmaster many years ago. Defendants' notice of removal alleges
that the instant action is one of more than 274 similar civil
actions currently pending in various state and federal courts
across the country that assert personal injury tort claims against
the BSA and other co-defendants arising from the alleged abuse of
children. It further asserts that on Feb. 18, 2020, the BSA and
Delaware BSA, LLC, an affiliated non-profit corporation, each filed
a voluntary petition for relief under Chapter 11 of the Bankruptcy
Code in the United States Bankruptcy Court for the District of
Delaware. Defendants removed the case under 28 U.S.C. section
1452(a), invoking New York District Court's bankruptcy jurisdiction
under 28 U.S.C. section 1334(b).
The notice of removal also recites that defendants have filed a
nationwide transfer motion in the United States District Court for
the District of Delaware under 28 U.S.C. section 157(b)(5), seeking
an order from that court transferring all of the abuse claims to
that district. That seems highly likely to be granted since it
would be inimical to the Chapter 11 process to require the debtors
to litigate 274 personal injury claims in nearly as many courts
across the country. Accordingly, the New York District Court
ordered plaintiff to show cause why the Court should not transfer
the case to the District of Delaware rather than awaiting a
disposition of the nationwide transfer motion.
Notwithstanding plaintiff's failure to respond to the Order to Show
Cause, the New York District Court concludes that the appropriate
remedy is to stay this action pending disposition of the nationwide
transfer motion by the Delaware District Court. Section 362(a)(1)
of the Bankruptcy Code, 11 U.S.C. section 362(a)(1), makes it clear
that the automatic stay applies to this action, and Section
157(b)(5) of the Judicial Code, 28 U.S.C. section 157(b)(5), makes
it equally clear that it is within the discretion of the district
court where the Chapter 11 case is pending to determine whether
personal injury cases like this one should be tried in the venue in
which they were commenced or where the Chapter 11 case is pending.
A copy of the Court's Memorandum Decision and Order dated March 1,
2020 is available at https://bit.ly/2UEuU4J from Leagle.com.
Eric R Burrus, Plaintiff, represented by Sanford A. Rubenstein,
Rubenstein & Rynecki.
Boy Scouts of America, Defendant, represented by John Anthony
Anselmo -- John.Anselmo@lewisbrisbois.com -- Lewis Brisbois
Bisgaard & Smith.
About the Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets at least $500 million in liabilities as of the
bankruptcy filing.
The Debtors tapped SIDLEY AUSTIN LLP as general bankruptcy counsel;
MORRIS, NICHOLS, ARSHT & TUNNELL LLP as Delaware counsel; and
ALVAREZ & MARSAL NORTH AMERICA, LLC as financial advisor. OMNI
AGENT SOLUTIONS is the claims agent.
BRINKER INT'L: Egan-Jones Cuts Local Curr. Unsecured Rating to B
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the local
currency senior unsecured ratings on debt issued by Brinker
International, Incorporated to B from BB-. EJR also downgraded the
rating on LC commercial paper issued by the Company to B from A3.
Brinker International, Inc. is an American multinational
hospitality industry company that owns Chili's and Maggiano's
Little Italy restaurant chains.
BROADVISION INC: Seeks to Hire DLA Piper as Counsel
---------------------------------------------------
BroadVision, Inc., seeks authority from the U.S. Bankruptcy Court
for the District of Delaware to employ DLA Piper LLP (US), as
counsel to the Debtor.
BroadVision, Inc., requires DLA Piper to:
(a) advise the Debtor of its rights, powers and duties as
the Debtor and debtor in possession while operating and
managing its business and properties under chapter 11 of
the Bankruptcy Code;
(b) advise the Debtor in connection with the prosecution of
the Plan and related transactional documents;
(c) prepare on behalf of the Debtor all necessary and
appropriate applications, motions, proposed orders, other
pleadings, notices, schedules and other documents, and
reviewing all financial and other reports to be filed in
this Chapter 11 Case;
(d) advise the Debtor concerning and preparing responses to,
applications, motions, other pleadings, notices and other
papers that may be filed by other parties in this Chapter
11 Case;
(e) advise the Debtor with respect to, and assisting in the
negotiation and documentation of, vendor contracts, asset
purchase agreements, financing agreements and related
transactions and tax matters;
(f) advise the Debtor concerning executory contract and
unexpired lease assumptions, assignments and rejections;
(g) advise the Debtor in connection with any sales of its
assets;
(h) assist the Debtor in reviewing, estimating and resolving
claims asserted against the Debtor's estate;
(i) assist the Debtor with compliance with applicable laws and
governmental regulations;
(j) commence and conduct litigation necessary and appropriate
to assert rights held by the Debtor, protect assets of the
Debtor's chapter 11 estate or otherwise further the goals
of the Debtor in this Chapter 11 Case; and
(k) provide non-bankruptcy services for the Debtor to the
extent requested by the Debtor.
DLA Piper will be paid at these hourly rates:
R. Craig Martin, Partner, Wilmington $1,075
Joshua D. Morse, Partner, San Francisco $1,070
Katie Allison, Associate, Chicago $785
Nathan Sheps, Associate, New York $690
Caitlin Canahai, Associate, Chicago $555
William Countryman, Paralegal, Baltimore $400
Carolyn Fox, Paralegal, Wilmington $320
Michele Gillen, Paralegal, Wilmington $295
In the 90 days prior to the Petition Date, DLA Piper received
aggregate payments comprised solely of the Retainer in the
aggregate amount of $400,000 for its prepetition services and
expenses incurred for or on behalf of the Debtor in connection with
the preparation and commencement of this chapter 11 case and other
matters. Specifically, on March 5, 12, 20 and 25, DLA Piper
received a total of $100,000 from the Debtor held in the firm's
trust account.
DLA Piper will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Joshua D. Morse, a partner of DLA Piper LLP (US), assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
DLA Piper can be reached at:
Joshua D. Morse, Esq.
DLA Piper LLP (US)
555 Mission Street, Suite 2400
San Francisco, CA 94105-2933
Tel: (415) 836 2500
Fax: (415) 836 2501
E-mail: joshua.morse@dlapiper.com
About BroadVision
BroadVision -- https://broadvision.com/ -- develops, markets, and
supports enterprise portal applications that enable companies to
unify their e-business infrastructure and conduct interactions and
transactions with employees, partners, and customers through a
personalized self-service model.
BroadVision, Inc., based in Redwood City, CA, filed a Chapter 11
petition (Bankr. D. Del. Case No. 20-10701) on March 30, 2020. In
the petition signed by Pehong Chen, president, CEO and interim CFO,
the Debtor disclosed $4,447,000 in assets and $2,489,000 in
liabilities. The Hon. Christopher S. Sontchi oversees the case.
DLA PIPER LLP(US) serves as bankruptcy counsel. EPIQ CORPORATE
RESTRUCTURING, LLC, is the claims and noticing agent.
BROADVISION INC: Seeks to Hire Epiq as Administrative Advisor
-------------------------------------------------------------
BroadVision, Inc., seeks authority from the U.S. Bankruptcy Court
for the District of Delaware to employ Epiq Corporate
Restructuring, LLC, as administrative advisor to the Debtor.
BroadVision, Inc. requires Epiq to:
(a) assist with, among other things, the preparation of the
Debtor's schedules of assets and liabilities, schedules of
executory contracts and unexpired leases, and statements
of financial affairs;
(b) assist with, among other things, solicitation, balloting,
tabulation and calculation of votes, as well as preparing
any appropriate reports required in furtherance of
confirmation of any chapter 11 plan;
(c) generate an official ballot certification and testifying,
if necessary, in support of the ballot tabulation results
for any chapter 11 plan(s) in this Chapter 11 Case;
(d) generate, provide and assist with claims objections,
exhibits, claims reconciliation and related matters; and
(e) provide such other claims processing, noticing,
solicitation, balloting, and administrative services, but
not included in the Section 156(c) Application, as may be
requested by the Debtor from time to time.
Epiq will be paid at these hourly rates:
Executives No Charge
Executive Vice President, Solicitation $215
Solicitation Consultant $190
Consultants/Directors/Vice Presidents $160-$190
Case Managers $70-$165
IT/Programming $65-$85
Clerical/Administrative Support $25-$45
Epiq will be paid a retainer in the amount of $40,000.
Epiq will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Kathryn Tran, consulting director of Epiq Corporate Restructuring,
LLC, assured the Court that the firm is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy Code and
does not represent any interest adverse to the Debtor and its
estates.
Epiq can be reached at:
Kathryn Tran
EPIQ CORPORATE RESTRUCTURING, LLC
777 3rd Ave., 12th Floor
New York, NY 10017
Tel: (212) 225-9200
About BroadVision
BroadVision, Inc. -- https://broadvision.com/ -- develops, markets,
and supports enterprise portal applications that enable companies
to unify their e-business infrastructure and conduct interactions
and transactions with employees, partners, and customers through a
personalized self-service model.
BroadVision, Inc., based in Redwood City, CA, filed a Chapter 11
petition (Bankr. D. Del. Case No. 20-10701) on March 30, 2020. In
the petition signed by Pehong Chen, president, CEO and interim CFO,
the Debtor disclosed $4,447,000 in assets and $2,489,000 in
liabilities. The Hon. Christopher S. Sontchi oversees the case.
DLA PIPER LLP(US) serves as bankruptcy counsel to the Debtor. EPIQ
CORPORATE RESTRUCTURING, LLC is claims and noticing agent.
BROWNLEE FARM: Unsecureds to Get Net Sale Proceeds
--------------------------------------------------
Brownlee Farm Center, Inc., filed on March 25, 2020, a Disclosure
Statement explaining the terms of its proposed Plan of
Reorganization dated Jan. 23, 2020.
The Plan provides that the allowed claims of the Debtor's creditors
will be paid from the sale or other disposition of the Debtor's
property. Although the Debtor's Plan calls for the sale of all of
its property by an independent broker, the Debtor submits that a
forced liquidation of all of the Debtor's property by a trustee is
not in the best interest of its case or the Debtor's creditors, and
would risk delaying considerably the payment proposals described in
the plan, increase the administrative costs in its case, and most
probably result in a smaller dividend to unsecured creditors.
Therefore, Debtor urges creditors to vote to accept the plan.
The Debtor owns 29 residential building lots located in Olen
Heights Subdivision, on Bellflower Road in Tifton, Georgia that are
scheduled to be sold under the Plan. The Debtor values the lots at
an average price of $30,000 each, for a total estimated value of
$870,000. The residential lots are encumbered by liens for ad
Valorum taxes and a senior lien in favor of Ag Georgia Farm Credit,
ACA, with a balance of approximately $650,000.
The Debtor owns one 1996 International 4700 dump truck; one 1997
GMC Sierra K1500 truck, one 2005 Chevrolet Silverado Duramax, and
one 1995 Chevrolet K3500 truck, all of which are to be liquidated
under the Plan. The Debtor values these vehicles collectively at
$24,800. The motor vehicles are unencumbered.
The Debtor has scheduled Spreaders, Tenders, and land application
equipment it values at $390,300, which it intends to sell under the
Plan.
The Debtor's inventory consists of chemical fungicides; chemical
insecticides, specialty chemicals, other chemicals, game feed,
gypsum, fertilizer, lime and lime plaster, The Debtor valued its
current inventory in its schedules at $71,800.
The Plan proposes to treat claims and interests as follows:
* Class 2 Allowed Secured Claim of Ag Georgia Farm Credit, ACA.
IMPAIRED. Class 2 includes the Allowed Secured Claim of Ag Georgia
Farm Credit, ACA, in the approximate amount of $650,000
collateralized by a senior lien on Lots with an estimated aggregate
value of approximately $870,000 as of the Effective Date. The
Debtor will continue marketing for sale and shall endeavor to sell
the Class 2 Collateral, free and clear of liens, claims, or
interests pursuant to 11 U.S.C. Sec. 1123(b)(4), with such liens,
claims, or interests attaching to the proceeds of the sale.
Allowed Secured Claims in Class 2 will be paid the lesser of the
Allowed Amount of such claim, or the Net Proceeds of each such sale
at the Closing of each such sale.
* Class 3 Secured Claim of Synovus Bank. IMPAIRED. The Secured
Claim of Synovus Bank collateralized by a lien on a 6.25 acre tract
of land on Highway 41, in Tifton, Georgia adjacent to the leased
premises of the Debtor, will be satisfied in full by abandonment of
the property to Synovus in full satisfaction of such Allowed
Secured Claim.
* Class 5 Unknown Secured Claims. IMPAIRED. Any Holder of an
Allowed Class 5 Claim shall be paid as follows: Debtor shall market
for sale and endeavor to sell the collateral securing any such
Class 5 Claim under the Plan, free and clear of liens, claims, or
interests pursuant to 11 U.S.C. Sec. 1123(b)(4), with such liens,
claims, or interests attaching to the proceeds of the sale, and
Debtor and any Holder of such Class 5 Claim will comply with 11
U.S.C. Sec. 1142(b) with respect to the transfer of such collateral
free and clear of liens, claims, and interests.
* Class 6 Allowed Unsecured Deficiency Claims. IMPAIRED. Each
Holder of an Allowed Unsecured Deficiency Claim in Class 6 will be
paid by the Disbursing Agent, on the Final Distribution Date and in
tandem with payments to Holders of Allowed Unsecured Claims in
Classes 6, 7, and 8 its pro-rata share of the Net Proceeds of
Debtor's estate remaining following payment of Allowed Claims in
Classes 1 – 5 in full as provided by this Plan.
* Class 7 Allowed Unsecured Claims of General Unsecured
Creditors (other than Allowed Unsecured Claims included in Classes
6 and 8). IMPAIRED. The Allowed Unsecured Claims of General
Unsecured Creditors are estimated to total $528,871 as of the
Confirmation Date. Each Holder of an Allowed Unsecured Deficiency
Claim in Class 6 and Allowed Unsecured Claim in Class 7 will be
paid by the Disbursing Agent on the Effective Date its pro-rata
share of the Net Proceeds of Debtor's estate.
* Class 8 Allowed Unsecured Administrative Convenience Class
Claims of $500 or Less. IMPAIRED. The Allowed Unsecured
Administrative Convenience Class Claims of $500 or Less are
estimated to total approximately $2,400. The Debtor will satisfy
such Allowed Class 8 Claims by paying such Claims in full within 14
days after the Effective Date.
* Class 9 Interests of Debtor. IMPAIRED. Shareholders of the
Debtor will neither receive nor retain property under the Plan, and
the common shares of Debtor will be surrendered and cancelled of
record following the Distribution Date.
The funds required for implementation of the Plan and the
distributions thereunder shall be provided from of sales or other
dispositions of the Assets of the Debtor.
A full-text copy of the Disclosure Statement dated March 25, 2020,
is available at https://tinyurl.com/uqt34oa from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Ward Stone, Jr.
G. Daniel Taylor
Stone & Baxter, LLP
Suite 800, 577 Mulberry Street
Macon, Georgia 31201
About Brownlee Farm
Brownlee Farm Center, Inc. and Gypsum Supply Company, Inc., buy
and
sell various agricultural products, principally gypsum and
fertilizer, from and to dealers in Georgia, Florida, and Alabama.
They are also engaged in the building rental business.
Brownlee Farm Center and Gypsum Supply filed voluntary Chapter 11
petitions (Bankr. M.D. Ga. Lead Case No. 18-71300) on Oct. 29,
2018. At the time of the filing, each Debtor had estimated assets
of less than $1 million and liabilities of between $1 million and
$10 million.
Ward Stone, Jr., Esq., at Stone & Baxter, LLP, represents the
Debtors.
BRUNSWICK CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB
----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Brunswick Corp/DE to BB from BB+.
Brunswick Corporation manufactures consumer products serving the
outdoor and indoor active recreation markets. The Company's
products include stern drives, outboard, and inboard marine
engines, fitness, billiards, and bowling equipment. Brunswick also
manufactures pleasure, fishing, and high-performance boats.
BW HOMECARE: S&P Hikes ICR to 'CCC' Following Distressed Exchange
-----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on BW Homecare
Holdings LLC (doing business as Elara Caring) to 'CCC' from 'SD'
(selective default) with developing outlook.
The rating action comes after Elara Caring completed a distressed
exchange of its second-lien debt in December 2019, where it
exchanged $186 million of second-lien debt for new 1.5-lien debt.
S&P views the improved liquidity profile associated with the
exchange and equity injection as a material positive to the credit
profile.
Meanwhile, S&P raised its issue-level rating on the second-lien
debt to 'CC' from 'D'. The rating on the first-lien debt is
unchanged at 'CCC'.
The rating actions reflect S&P's expectation for Elara Caring to
have adjusted leverage above 15x, including the rating agency's
treatment of preferred shares as debt-like (about 12.5x excluding
preferred shares) and for minimal cash flow or cash flow deficits
in 2020. S&P believes the effect of Medicare's new Patient-Driven
Groupings Model (PDGM) reimbursement and the potential fallout from
the coronavirus pandemic could depress revenues and strain
liquidity over the next 12 months. It believes there is a
reasonable likelihood for further distressed exchanges, despite a
marked improvement in liquidity, stemming from a reduction in cash
interest and $60 million of additional liquidity provided by the
sponsor in the form of 1.75-lien debt.
The developing outlook reflects S&P's view that the likelihood of
an upgrade or downgrade is substantial over the next year. S&P sees
substantial uncertainty around the company's ability to navigate
the transition to the revised Medicare reimbursement plan (PDGM)
for home health, which began on Jan. 1st, 2020, concurrent with
potential disruption from the COVID-19 pandemic. The potential
upgrade reflects the company's good liquidity position.
"We could lower our rating on Elara Caring if we saw a tangible
risk of default within the next six months, most likely as a result
of continued deterioration in operating performance. Under this
scenario, we believe the company would have difficulty meeting its
springing covenant tests on the revolver, resulting in a liquidity
crisis and increasing the likelihood of a distressed exchange type
transaction," S&P said.
"We could raise our rating if the company is successful with its
cost reductions and if its operations stabilize through the
transition to PDGM and the COVID-19 pandemic. This would provide us
with more confidence that the company will generate material free
cash flow, meet its covenant requirements, and sustain sufficient
liquidity to continue pursuing volume growth and improving
profitability," the rating agency said.
BY CROWN: S&P Downgrades ICR to 'B-' on Weakened Credit Metrics
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on supply chain
software provider Blue Yonder's parent, BY Crown Parent LLC, to
'B-' from 'B'. S&P also lowered its issue-level ratings on the
company's secured instruments to 'B-' from 'B', and it lowered its
issue-level rating on its unsecured notes to 'CCC' from 'CCC+'.
The downgrade reflects credit metrics that had already weakened as
of Dec. 31, 2019, due to Blue Yonder's transition to a subscription
revenue model as lower-margin cloud revenue replaced license and
maintenance revenue, and as the company made investments to
cloud-enable and integrate products. Added to that will be the
coming recession resulting from the efforts to contain the spread
of COVID-19. Leverage at the end of 2019 was 11.2x, with about 3.5x
representing the company's class B common shares, which S&P treats
as debt. Unadjusted free operating cash flow (FOCF) was just $22
million, due to growth-related working capital investments
(increased accounts receivable and prepaid commissions as a result
of good sales performance).
The stable outlook reflects S&P's view that Blue Yonder can sustain
its capital structure, despite the coming macroeconomic downturn,
due to its solid liquidity, good mix of customers in defensive
segments, and its adequate base of recurring revenue.
"We could lower the rating if high-margin license revenue falls
more than we expect among cyclical clients, causing EBITDA to fall
below our forecast of $125 million-$145 million in 2020, free cash
flow to be negative, and financial covenants to restrict full
access to the revolving credit facility such that total liquidity
falls below $60 million. We could also lower the rating if we see
an increased risk of a distressed exchange or debt repurchase at a
discount as a result of distressed market prices on its debt
instruments," S&P said.
"We could raise the rating if we believe Blue Yonder can sustain
S&P Global Ratings-adjusted leverage below 10x (including the class
B common shares as debt) and FOCF to debt in the mid-single digits
or higher. We think this would likely occur no earlier than 2021
and would require a robust rebound from the weak macroeconomic
environment," the rating agency said.
CAPITAL TRUST: S&P Lowers Revenue Bond Ratings to 'CCC(sf)'
-----------------------------------------------------------
S&P Global Ratings lowered its long-term ratings to 'CCC(sf)' from
'BBB-(sf)', 'BBB-(sf)' and 'BB(sf)' on Capital Trust Agency, Fla.'s
series 2018A-1, 2018A-2, and 2018B senior-living revenue bonds,
respectively, issued for American Eagle Delaware Holding Co. LLC.
At the same time, S&P placed the ratings on CreditWatch with
negative implications. S&P intended to resolve the CreditWatch
placement within the next three months.
The rating action and CreditWatch placement affect approximately
$218 million in debt outstanding, issued to fund the acquisition of
a pool of 17 senior-living communities, totaling 1,292 total
units--assisted living (56%), independent living (28%), and memory
care (16%). The communities are located in Alabama, Colorado,
Florida, Minnesota, Ohio, Tennessee, Texas, and Wisconsin. American
Eagle Delaware Holding Co. LLC, the borrower, has as its sole
member American Eagle LifeCare Corp., a Tennessee 501(c)(3)
nonprofit tax-exempt corporation.
The downgrade reflects S&P's opinion of the transaction's liquidity
troubles, insufficient debt service coverage, and the lack of a
debt service reserve fund for the senior 2018A-1 and A-2 bonds.
In S&P's opinion, potentially severe and ongoing impacts associated
with the COVID-19 pandemic exacerbate the above factors. Thus, the
ratings also reflect the uncertainty that the transaction will meet
its debt service payments on a timely basis resulting from health
and safety concerns--which S&P considers a social risk under its
environmental, social, and governance factors--and the associated
high potential for the adverse economic and financial conditions
resulting from COVID-19 to impair the owner's capacity and
willingness to honor these obligations on time and in full.
"Incorporated into the rating and CreditWatch status are social
risks that we view as being above the sector standard, reflected in
the project's vulnerability to declines in occupancy and revenue as
well as increased expenses," said S&P Global Ratings credit analyst
Aulii Limtiaco.
The CreditWatch placement with negative implications reflects S&P's
expectation that increased operational costs and reductions in
revenue as a result of the COVID-19 pandemic, and the associated
economic downturn, could impair the pool's ability to make timely
debt service payments on the bonds while covering the increased
costs of protecting residents and staff.
CARMAX INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB
---------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by CarMax Incorporated to BB from BB+.
CarMax is America's largest used-car retailer and a Fortune 500
company. The corporate entity behind the formation of CarMax was
Circuit City Stores, Inc. The first CarMax used-car store opened in
September 1993, 1.7 miles from Circuit City's corporate offices in
Richmond, Virginia.
CENTURY ALUMINUM: S&P Cuts ICR to 'CCC+'; Ratings on Watch Negative
-------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Chicago-based aluminum producer Century Aluminum Co. to 'CCC+' from
'B-' and its issue-level rating to 'B-'. The '2' recovery rating is
unchanged.
Due to the debt becoming current in June 2020, S&P is placing its
ratings on Century on CreditWatch with negative implications.
The time to maturity on Century's debt is nearing 12 months. The
rating action reflects that Century has not as of yet addressed its
$250 million senior secured notes due June 2021 (the company's
total reported debt balance as of Dec. 31, 2019, was $300
million).
"We believe the outbreak of COVID-19 is materially hindering
capital market accessibility and the risk of weak aluminum prices
persisting might make it more challenging for Century to refinance
its debt. In the next six to 12 months as the bond maturity gets
closer and Century's quarterly cash flow begins to reflect weaker
aluminum prices, we expect it could experience a potential
liquidity shortfall," S&P said.
S&P aims to resolve the CreditWatch placement within the next
couple of months when the bond maturity approaches 12 months. It
could lower the rating to 'CCC' if the company does not address the
maturity by June 2020.
CENTURY TOWNHOMES: Has Until July 1 to File Plan & Disclosures
--------------------------------------------------------------
Judge Jeffery A. Deller has ordered that debtor Century Townhomes
Association will have until July 1, 2020 to file its Plan and
Disclosure Statement.
About Century Townhomes Association
Century Townhomes Association is a Pennsylvania non-profit
corporation that operates a homeowners association for residential
townhomes located in Clairton, Pennsylvania, known as Century
Townhomes. Century Townhomes was a project of Action Housing,
Inc., designed to provide affordable housing in the City of
Clairton. The development consists of over 425 residential
townhomes, owned by individual homeowners, landlords who rent units
to leaseholders, and a non-profit organization that provides
housing to individuals with disabilities in its units.
Century Townhomes Association sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. Pa. Case No. 18-21925) on May 10,
2018.
In the petition signed by Eric Hatchett, president, the Debtor was
estimated to have assets of less than $100,000 and liabilities of
less than $500,000. Judge Jeffery A. Deller is the presiding
judge. The Debtor hired Campbell & Levine, LLC, as its legal
counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
CHARLES RIVER: Egan-Jones Lowers Senior Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Charles River Laboratories International Inc. to BB-
from BB+.
Charles River Laboratories International, Inc. provides research
tools and support services for drug discovery and development. The
Company offers animal research models in research and development
for new drugs, devices, and therapies. Charles River Laboratories
International serves pharmaceutical and biotechnology companies,
hospitals, and academic institutions worldwide.
CHERRY BOMB: Has Interim Cash Collateral Access Thru April 16
-------------------------------------------------------------
Cherry Bomb Electric, Inc., sought and obtained authority to use
cash collateral until April 16, 2020 at 2:45 p.m. at which time the
Court will convene to consider the Debtor's continued access to
cash collateral. Judge Lori V. Vaughan authorized the Debtor to
pay current and necessary expenses, pursuant to the budget.
The Court further ruled that:
(a) Tomahawk Drive Associates, LLC, d/b/a Beachside Storage and
Business Park, will have a perfected postpetition lien against the
cash collateral to the same extent and with the same validity and
priority as its prepetition lien(s).
(b) all contractors, customers and other parties that owe the
Debtor money will pay their obligations directly to the Debtor,
notwithstanding any writs of garnishment that have been issued by
Tomahawk Drive Associates or any other party.
As of the Petition Date, Tomahawk Drive Associates may assert liens
against the Debtor based on certain writs of garnishment issued in
the state-court case pending in the Circuit Court of the Eighteenth
Judicial Circuit, in and for Brevard County, Florida. The Debtor
disputes any secured status claimed by Tomahawk Drive Associates,
and contends that the garnishment liens are avoidable as
preferential transfers under Section 547 of the Bankruptcy Code.
The Court ruled that the Debtor may continue to dispute the
validity, priority and extent of the creditor's alleged
pre-petition liens, and therefore the post-petition liens, and may
seek a determination of the creditor's secured status under Section
506(c) of the Bankruptcy Code.
About Cherry Bomb Electric
Cherry Bomb Electric is an electrical contractor from Satellite
Beach. They provide electrical wiring, recessed lighting and other
services.
Cherry Bomb Electric, Inc., sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-01234) on Feb.
28, 2020, listing under $1 million in both assets and liabilities.
Kenneth D. Herron, Jr., Esq. at Herron Hill Law Group, PLLC, is the
Debtor's counsel.
CITY POWER: Has Plan for Up to 100% Payout for Creditors in 5 Years
-------------------------------------------------------------------
City Power and Gas, LLC, on March 25, 2020, filed a Chapter 11 Plan
and a Disclosure Statement.
The Plan provides a means by which injection of additional equity
capital, proceeds from pursuit of various claims held by the
Debtor, and a sustainable portion of the profit from the Debtor's
continuing business operations over the five years following the
Petition Date, will be distributed under the Code, and sets forth
the treatment of all claims and interests against the Debtor.
Within 10 days after the Effective Date of the Plan, there will be
an initial distribution of at least $500,000, plus an amount
sufficient to satisfy all administrative, superpriority, and
postpetition secured claims (or of a larger amount if the Debtor so
elects), for the benefit of the Holders. As of Jan. 31, 2020,
before accounting for professional fees, the Debtor has earned
$1,954,003 in net profit, and been consistently profitable. The
Debtor expects to enter into a senior lending facility as a
Reorganized Debtor with Capital Foundry Funding, its current DIP
Lender.
From the Effective Date until November 7, 2023 (five years after
the Petition Date), the Debtor will make monthly payments of
$35,000 for the benefit of remaining claimants. If the Effective
Date is July 1, 2020, that would amount to $1,400,000 in payments
over the life of the Plan. If the Effective Date is later, the
Debtor's pre-Effective Date retained earnings will be higher, and a
higher Initial Distribution is likely.
Within 30 months after the Effective Date, unless the Debtor pays
all allowed creditor claims in full, the Debtor will secure a New
Equity Holder, who will purchase the Debtor's equity with a New
Value Contribution. The transaction will occur under circumstances
where opportunity for competitive bids, agreement of the Parties,
or order of the Court ensures it is of value reasonably equivalent
to the equity acquired by the New Equity Holder. The proceeds of
the New Value Contribution will be distributed to the remaining
Holders of Claims and Interests. The Debtor's management believes
it can acquire more value for the Estate by delaying an equity sale
for 30 months after the Effective Date, rather than conducting it
prior to the Effective Date. This will provide a longer period of
positive earnings history, sales and earnings growth, which should
translate into a larger investment than would occur if the New
Value Contribution occurred at or prior to the Effective Date.
The Debtor estimates that the going concern enterprise value will
yield a valuation at the specified time between $4,000,000 and
$7,500,000, and a New Value Contribution of between $3,600,000 and
$6,750,000 (as the New Equity Holder will purchase the Company
subject to up to 10% ownership by the Reorganization Managers).
For the purposes of the Plan and for all calculations within the
Plan, the Debtor is using the low-end of the estimate of $3,600,000
as the Contribution of New Value.
The Plan treats claims as follows:
* Class 1: Secured Superpriority Administrative Claims.
IMPAIRED. The balance due under the DIP Facility shall be paid in
full in cash by the earlier of ten (10) days after the Plan’s
Effective Date or upon the date required under the DIP Loan
Agreements and the Final DIP Order. Payments to the DIP Lender
shall have priority over all administrative claims, except those
subject to carve-out under the Court’s Final Order governing the
DIP Facility.
* Class 2: Priority Tax Claims. IMPAIRED. Priority Tax Claims
shall be the first to receive funds from the Effective Date
Disbursement, the New Value Contribution, the Monthly Installments,
and Cause of Action Proceeds, until their claims are paid in full.
Funds reflecting the pro rata share attributable to the NYCDOF’s
claim will be placed in escrow, pending resolution of the
Debtor’s challenge to that claim is resolved.
* Class 3: General Unsecured Claims. IMPAIRED. After the
Priority Tax Claims have been paid in full, Class 3 Claims will
receive pro rata shares of any remaining distributions through the
Effective Date Disbursement, the New Value Contribution, the
Monthly Installments, and Cause of Action Proceeds, until their
claims are paid in full.
* Class 4 Equity Interests. IMPAIRED. After the General
Unsecured Claims have been paid in full, Class 4 Claims will
receive pro rata shares of any remaining distributions through the
Effective Date Disbursement, the New Value Contribution, the
Monthly Installments, and Cause of Action Proceeds.
A full-text copy of the Disclosure Statement dated March 25, 2020,
is available at https://tinyurl.com/uokz7bg from PacerMonitor.com
at no charge.
Counsel for the Debtor:
CLIFFORD M. GINN
GINN LAW, LLC
62 Marion Jordan Road
Scarborough, ME 04074
Tel: (207) 274-0001
About City Power and Gas LLC
City Power and Gas, LLC -- https://www.citypowerandgas.com/ -- is
an electricity and natural gas company servicing homes and small
businesses. It is a licensed energy and gas supplier and
regulated
by the New York Public Service Commission.
City Power and Gas sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 18-77685) on Nov. 7,
2018. The case is assigned to Judge Alan S. Trust. Clifford M.
Ginn, Esq., at Ginn Law, LLC is the Debtor's bankruptcy counsel.
CJ AUTO: Disclosure Statement Conditionally Approved
----------------------------------------------------
Judge Stephani W. Humrickhouse has ordered that the disclosure
statement filed by CJ Auto Used Parts, LLC, Debtor, is
conditionally approved.
May 4, 2020 is fixed as the last day for filing and serving written
objections to the disclosure statement.
The hearing on confirmation of the plan will be on Tuesday, May 5,
2020 at 10:00 AM in room 208, 300 Fayetteville Street, Raleigh, NC
27601.
May 4, 2020 is fixed as the last day for filing written acceptances
or rejections of the plan.
May 4, 2020 is fixed as the last day for filing and serving written
objections to confirmation of the plan.
About CJ Auto Used Parts
CJ Auto Used Parts, LLC, sought Chapter 11 protection (Bankr.
E.D.N.C. Case No. 19-04737) on Oct. 14, 2019, estimating less than
$1 million in assets and liabilities. The case has been assigned
to Judge Stephani W. Humrickhouse. John G. Rhyne, Esq., is the
Debtor's legal counsel.
CONCHO RESOURCES: Egan-Jones Lowers Sr. Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Concho Resources Incorporated to BB- from BB+.
Concho Resources Incorporated is a company engaged in hydrocarbon
exploration. It is organized in Delaware and headquartered in
Midland, Texas, with operations exclusively in the Permian Basin.
CONSTELLATION BRANDS: Egan-Jones Lowers Sr. Unsec. Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Constellation Brands, Inc. to BB+ from BBB.
Constellation Brands, Inc. is an international producer and
marketer of beer, wine, and spirits. Constellation is the largest
beer import company in the US, measured by sales, and has the
third-largest market share of all major beer suppliers. It also
has investments in medical marijuana.
CRISTIAN LIQUORS: May Use Cash Collateral Thru April 14
-------------------------------------------------------
Judge Barbara Ellis-Monro authorized Cristian Liquors LLC to use
cash collateral on an interim basis, pursuant to the budget, until
11:59 p.m. on the date of the final hearing on the motion or as
otherwise extended by order of the Bankruptcy Court.
Judge Ellis-Monro ruled that Citizens Bank is granted a lien on the
Debtor's postpetition collateral to the extent of cash collateral
used. Citizens Bank asserts a claim amounting to $1,145,525 for
which it filed a UCC financing statement in the Superior Court of
Paulding County, in Georgia.
A final hearing on the motion is set for April 14, 2020 at 11 a.m.
About Cristian Liquors
Cristian Liquors LLC, dba Lotus Liquors, owns and operates a liquor
store in Hiram, GA. The company filed a Chapter 11 petition
(Bankr. N.D. Ga. Case No. 20-40499) on March 2, 2020.
In the petition signed by Cristian Herlo, sole member, the Debtor
reported $401,215 in total assets and $1,447,765 in total
liabilities. Judge Barbara Ellis-Monro is assigned to the case.
Jones & Walden, LLC is the Debtor's counsel.
CUENTAS INC: Incurs $1.32 Million Net Loss in 2019
--------------------------------------------------
Cuentas, Inc. filed with the Securities and Exchange Commission its
Annual Report on Form 10-K reporting a net loss attributable to the
company of $1.32 million on $967,000 of revenue for the year ended
Dec. 31, 2019, compared to a net loss attributable to the company
of $3.56 million on $74.65 million of revenue for the year ended
Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $9.17 million in total assets,
$3.92 million in total liabilities, and $5.25 million in total
stockholders' equity.
As of Dec. 31, 2019, the Company had $16,000 of cash, total current
assets of $165,000 and total current liabilities of $3,917,000
creating a working capital deficit of $3,752,000. Current assets as
of Dec. 31, 2019 consisted of $16,000 of cash, marketable
securities in the amount of $1,000, related parties of $54,000 and
other current assets of $94,000.
The decrease in the Company's working capital deficit was mainly
attributable to the decrease of $1,659,000 in its trade account
payables and decrease of $4,927,000 in its short-term related
parties' payables, which was mitigated by a decrease of $3,673,000
in its trade account receivables.
Net cash used in operating activities was $1,315,000 for the year
ended Dec. 31, 2019, as compared to cash used in operating
activities of $517,000 for the year ended Dec. 31, 2018. The
Company's primary uses of cash have been for professional support,
marketing expenses and working capital purposes.
Net cash used in investing activities was $0 for the year ended
Dec. 31, 2019, as compared to net cash generated from investing
activities of $9,000 for the year ended Dec. 31, 2018.
Net cash provided by financing activities was approximately
$1,177,000 for the year ended Dec. 31, 2019, as compared to
approximately $587,000 for the year ended Dec. 31, 2018. The
Company has principally financed its operations in 2019 through the
sale of its Common Stock and the issuance of debt.
Due to the Company's operational losses, it has principally
financed its operations through the sale of its common stock and
the issuance of convertible debt.
Halperin Ilanit, in Tel Aviv, Israel, the Company's auditor since
2018, issued a "going concern" qualification in its report on the
consolidated financial statements for the year ended March 30, 2020
citng that as of Dec. 31, 2019, the Company has incurred
accumulated deficit of $19,390,000 and negative operating cash
flows. These factor, among others, 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/w1tkG6
About Cuentas
Headquartered in Miami, Florida, Cuentas, Inc. --
http://www.cuentas.com/-- is focused on financial technology
services, delivering mobile banking, online banking, prepaid debit
and digital content services to unbanked, underbanked and
underserved communities. The Company derives its revenue from the
sales of prepaid and wholesale calling minutes.
DANA INC: Egan-Jones Lowers Senior Unsecured Ratings to B
---------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Dana Incorporated to B from BB. EJR also downgraded
the rating on commercial paper issued by the Company to B from A2.
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.
DANCEL LLC: Seeks April 20 Extension of Deadline for Amended Plan
-----------------------------------------------------------------
Dancel, L.L.C., moves the Bankruptcy Court to extend to April 20,
2020, its deadline to file a First Amended Disclosure Statement.
Debtor has been working diligently towards a resolution of the
issues identified in Different Rules, LLC’s Objection to
Debtor’s Initial Disclosure Statement. The Objection concerned
issues relating to Plan confirmation as well as the Initial
Disclosure Statement.
The Debtor and Franchisor spoke as recently as today and Franchisor
does not object to Debtor being permitted approximately 30 days to
submit a First Amended Disclosure Statement (and amended plan).
The parties are eyeing a First Amended Plan that could be
consensual in nature, which would obviate much the issues raised by
Franchisor that were specific to the Debtor’s Initial Disclosure
Statement. Extending the Debtor's deadline would also afford the
Debtor and other parties in interest the time necessary to
ascertain the effect that the COVID-19 virus might have on
Debtor’s income and overall operations -- i.e., Plan
Feasibility.
Depending on how COVID-19 affects the Debtor and Bernalillo County
more generally, the Debtor may seek to modify the proposed cash
collateral budget prior to its proposed June 2020 expiration.
Proposed Attorney for Debtor:
Charles R. Hyde
THE LAW OFFICES OF C.R. HYDE, PLC
ATTORNEY AT LAW
2810 N. SWAN RD., SUITE 160
TUCSON, ARIZONA 85712
TELEPHONE: (520) 270-1110
About Dancel L.L.C.
Dancel, L.L.C., owns and operates restaurants with multiple
locations in Bernalillo County, N.M. Dancel filed a voluntary
Chapter 11 petition (Bankr. D. Ariz. Case No. 19-10446) on August
20, 2019. In the petition signed by Laura Olguin, manager, the
Debtor was estimated to have $500,000 to $1 million in assets and
$1 million to $10 million in liabilities. The case is assigned to
Judge Scott H. Gan. Charles R. Hyde, Esq., at The Law Offices of
C.R. Hyde, PLC, serves as the Debtor's counsel.
DEPENDABLE BUILDING: Unsecured Creditors to Get 10% in 5 Years
--------------------------------------------------------------
Dependable Building Services, Inc., submitted a First Amended
Disclosure Statement and a First Amended Plan of Reorganization.
The Debtor believes that the total amount of unsecured claims of
IRS, IDR & IDES is $3,398,944. In full satisfaction, settlement,
release, and discharge of and in exchange for the Allowed Unsecured
Claims in Class 3, IRS, IDR & IDES shall be paid, pro rata, 10
percent of their allowed claims, with no interest, in monthly
installments over a period of 60 months from the Effective Date,
beginning 30 days after the Effective Date. The total amount to be
paid to the claimants in Class 3 is $339,895. The monthly payment
will be $5,665. This Class is impaired under the Plan.
Class 4 allowed unsecured claims, excluding the unsecured claims of
taxing bodies, total $355,262. In full satisfaction, settlement,
release, and discharge of and in exchange for the Allowed Claims in
Class 4, these Claims shall be paid, pro rata, in the amount of 10
percent of the Allowed Unsecured Claims, without interest, in 60
monthly payments, commencing 30 days after the Effective Date.
Accordingly the Class 4 creditors will receive, pro rata, a total
of $35,526. The monthly payment will be $592.
The allowed equity Interest of the shareholder of the Debtor,
Janette Tomaselli, shall be retained by Tomaselli in exchange for a
new value contribution of S2,500 payable in monthly installments
over 36 months, commencing 30 days after the Effective Date.
Distributions under the Plan shall be made from cash deposits
existing at the time of Confirmation and form proceeds realized
from Debtor's postpetition earnings.
A full-text copy of the First Amended Disclosure Statement dated
March 25, 2020, is available at https://tinyurl.com/vopuc3y from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Joel A. Schechter
LAW OFFICES OF JOEL A. SCHECHTER
53 W. Jackson Blvd., Suite 1522
Chicago, Illinois 60604
Tel: (312) 332-0267
About Dependable Building Services
Founded in 1992, Dependable Building Services, Inc. --
http://www.dependablebuildingservices.com/-- is a commercial
contractor that performs HVAC, electrical, fire suppression, and
generator service and construction. It serves commercial, retail,
industrial and telecom industries.
Dependable Building Services previously filed a Chapter 11
petition
(Bankr. N.D. Ill. Case No. 17-24129) on Aug. 11, 2017.
Dependable Building Services again sought protection under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 19-19772) on
July 15, 2019. At the time of the filing, the Debtor was estimated
to have assets of between $100,000 and $500,000 and liabilities of
between $1 million and $10 million. The case is assigned to Judge
Deborah L. Thorne. The Law Offices of Joel A. Schechter is the
Debtor's counsel.
DOMINION DIAMOND: Fitch Cuts LT IDR to 'CCC' on Weaker Performance
------------------------------------------------------------------
Fitch Ratings has downgraded Dominion Diamond Holdings LLC's
(formerly known as Dominion Diamond Mines ULC) Long-Term Issuer
Default Rating to 'CCC' from 'B+'. In addition, Fitch has
downgraded Washington Diamond Investments LLC's (formerly known as
Washington Diamond Investments B.V.) Long-Term IDR to 'CCC' from
'B+'. Fitch has also downgraded Dominion Diamond's 1st lien secured
revolving credit facility to 'B'/'RR1' from 'BB+'/'RR1' and 2nd
lien secured notes to 'CCC+'/'RR3' from 'BB'/'RR2'.
The downgrade reflects consistently weaker than expected financial
performance, resulting in the company needing to negotiate covenant
relief for the past three consecutive quarters beginning with the
quarter ended June 30, 2019. The downgrade also reflects Fitch's
expectation of weak liquidity and Dominion Diamond Holdings'
expectation that an alternative financing arrangement or equity
injection from Washington Companies or a third-party partner will
be required in 2020. Given weak diamond market conditions,
consistent underperformance and uncertain return expectations
partially due to the coronavirus, Fitch believes the current
high-yield debt market may not be receptive to a refinancing, and
believes it may be difficult to secure a financing alternative,
although it remains a possibility. Fitch believes the coronavirus
pandemic creates further difficulty in securing financing in the
near term.
The ratings reflect the continued underperformance and need to
consistently negotiate covenant relief exacerbated by the
uncertainty associated with the coronavirus pandemic, which
resulted in DD announcing a decision on March 19, 2020 to suspend
operations at Ekati with no current timeline for restarting
production. Fitch believes an extended period of suspended
production or an extended period with the inability to sell
diamonds would quickly result in weak liquidity and create covenant
pressure in the near term.
The ratings reflect DD's modest size, concentrated operations with
exposure to a single commodity, weak diamond market conditions and
consistent underperformance partially offset by mining operations
located in a favorable jurisdiction. The ratings also reflect the
possibility DD may breach its financial covenant in 2020. In
addition, Fitch believes DD will require a capital injection within
the next 12-24 months.
KEY RATING DRIVERS
Consistent Underperformance: Lower grade recoveries at Ekati and
Diavik and increased costs at Diavik resulted in EBITDA
substantially lower in 2018 compared with prior year expectations.
Lower carat recoveries and lower than expected average selling
prices at both Ekati and Diavik resulted in significantly lower
EBITDA in 2019 compared with expectations. DD revised its forecasts
in June 2019 for lower carat recoveries (5.7 million tonnes updated
vs. 6.2 million tonnes previously) and lower EBITDA expectations
($159 million updated vs. $226 million previously). Fitch believes
the variability in operational performance compared with forecasts
meaningfully increases the risk of underperformance.
DD announced an almost entirely new executive management team in
2018 and a new interim CEO in 2020. Fitch believes the variability
in management somewhat increases execution risk.
Covenant Relief Negotiations: DD was required to negotiate covenant
relief for 2Q19 and 3Q19. In 1Q20, DD announced another amendment
to the credit facility to provide covenant relief which increased
the maximum net leverage ratio to 4.25x for 4Q19 and 4.30 for 1Q20,
with subsequent decreases until reaching 2.55x in 4Q21. The
amendment also permanently reduced commitments under the revolver
to $150 million from $200 million and requires mandatory prepayment
of the outstanding loans to reduce the maximum outstanding balance
to $25 million by the end of 1Q21.
Ekati Production Suspended: On March 19, 2020, DD announced a
decision to suspend operations at Ekati to safeguard employees and
the surrounding remote communities from the coronavirus pandemic.
DD intends to suspend mining and production activities until the
coronavirus pandemic is under control, with no current timeline
established for restarting production. Fitch believes an extended
period of suspended production would result in weak liquidity and
create covenant pressure in the near term.
Coronavirus Pandemic Creates Uncertainty: On March 22, 2020, India,
which accounts for roughly 90% of the global diamond cutting and
polishing industry, announced a 21-day lockdown. Fitch believes the
uncertainty associated with the length of time lockdowns will last
creates significant risk in the timing of future diamonds sales. An
extended period with the inability to sell diamonds would quickly
result in weak liquidity, negative FCF and require a capital
injection.
Capital Injection Likely Needed: Fitch believes weak diamond market
conditions in the near term will result in negative FCF in 2020 and
2021 based of Fitch's conservative price and production
assumptions. DD anticipates that an alternative financing
arrangement or equity injection from Washington Companies or a
third-party partner will be required in 2020. Fitch views weak
diamond market conditions, consistent underperformance and the
coronavirus pandemic as creating difficulty in securing financing
in the near term.
2022 Maturity Approaching: Fitch believes DD will likely need an
equity investment to secure a third-party partner or may require
support from Washington Companies to provide funding to provide
capital to repay the 2022 notes. Given weak diamond market
conditions and consistent underperformance, Fitch believes the
current high-yield debt market may not be receptive to a
refinancing and it may difficult to secure a financing alternative,
however, it remains a possibility.
Updated LOM Plan Complete: DD provided an updated LOM Plan in 4Q19,
in line with timing expectations. DD decided to pursue production
from the Point Lake pipe as the next sequenced source of production
to extend the mine life beyond 2023. The Point Lake pipe initially
adds 8.8 million carats and extends mine life by 3.5 years and
requires minimal development capex of $6.4 million expected to be
spent between 2020 and 2022. First production of the Point Lake
pipe is expected to occur in 2Q23 and sustaining capex is modest,
estimated to be $15.2 million.
Significant Undeveloped Jay Deposit: Fitch believes Jay provides
the ability to significantly improve the production profile and
extend the mine life at Ekati by nine years, given its large size
and relatively high grade. Jay development capex is projected to be
$478 million and sustaining capex is projected to be $134 million.
In 4Q19, the board authorized management to pursue a full spectrum
of capital and/or partnership options to fund development capex for
Jay. First production is now expected to occur in 1Q26, provided a
funding source is secured.
DERIVATION SUMMARY
DD is larger, although has lower margins, a less stable production
profile and currently lower mine life compared with Canadian-based
diamond miner Mountain Province Diamonds (B/Stable). DD is
significantly smaller than Russian-based leading global diamond
producer PJSC Alrosa (BBB-/Stable). Alrosa accounts for over 25% of
global diamond production, has low cash costs, robust margins and
conservative financial leverage. Gold miner Gran Colombia Corp.
(B/Stable) has favorable leverage metrics although has lower
margins and higher country risk compared with DD. Iron pellet
producer Ferrexpo plc (BB-/Stable) is larger and has favorable
leverage metrics compared with DD; however, Ferrexpo's credit
quality is constrained by the operating environment in Ukraine.
KEY ASSUMPTIONS
-- Lower production in 2020 compared with the updated LOM plan
reflective of the suspension of operations at Ekati and the
currently uncertain operating environment due to coronavirus;
-- 95% of production after 2020 compared with the updated LOM
plan;
-- Capex consistent with the updated LOM plan;
-- Capital injection is required in 2021.
The recovery analysis assumes DD would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Assumptions for the going concern
approach:
Fitch assumed a bankruptcy scenario exit going concern EBITDA of
$140 million. The EBITDA estimate is reflective of variable
production levels, which tend to fluctuate with kimberlite mix
shifts and could potentially heighten refinancing risk. The lower
GC EBITDA estimate incorporates a scenario of material supply chain
disruption and prolonged ongoing weakness in the diamond market.
The GC EBITDA estimate also reflects the volatility and
unpredictability of diamond prices.
Fitch applies EBITDA multiples generally ranging from 4.0x-6.0x for
mining issuers, given the cyclical nature of commodity prices. DD's
4.0x multiple is at the low end of the range, reflecting its
concentration in a single commodity. The 4.0x multiple compares
with The Washington Companies' purchase multiple for DD of roughly
4.2x LTM July 31, 2017 EBITDA of $287 million.
Fitch applies a going concern EBITDA of $140 million and a 4.0x
enterprise value multiple, which results in an enterprise value of
$588 million and compares relatively closely with its estimated
liquidation value. Fitch assumed the revolving credit facility is
fully drawn and a 10% administrative claim in the recovery
analysis. Its recovery analysis results in a 100% recovery for the
first-lien senior secured revolver rated 'B'/'RR1' and a 68%
recovery for the second-lien senior secured notes rated
'CCC+'/'RR3'.
RATING SENSITIVITIES
Fitch could stabilize the Outlook with higher visibility into DD's
strategy to improve liquidity in the near term and address the 2022
notes.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Expectation of stronger than expected FCF generation driven by
a combination of higher prices, improved carat recoveries, higher
grade and/or further cost reduction;
-- Financing secured which addresses weak liquidity in the next
12-20 months and addresses the 2022 notes maturity.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Inability to secure financing which addresses weak liquidity
in the next 12-20 months and addresses the 2022 notes maturity;
-- Carat recoveries significantly below expectations;
-- A combination of lower diamond prices, production, higher
costs and/or lower grade resulting in FCF significantly below
expectations.
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
Weak Liquidity: As of Dec. 31, 2019, DD had $77.1 million in cash
and cash equivalents and $48.9 million under its $150 million
revolver due 2021. As of Dec. 31, 2019, there was $43 million
outstanding under the revolver and an amendment requires mandatory
prepayment of the outstanding loan balance to reduce the maximum
outstanding balance to $25 million by the end of 1Q21. The company
anticipates that an alternative financing arrangement or equity
injection from Washington Companies or third-party partner will be
required in 2020. Fitch believes a liquidity crisis is likely
unavoidable in the next 12 to 24 months unless a fundamental change
takes place, such as fresh third-party support.
DRIVETIME AUTOMOTIVE: S&P Lowers ICR to 'CCC+'; Outlook Negative
----------------------------------------------------------------
S&P Global Ratings said it lowered its issuer credit rating and
secured debt rating on DriveTime Automotive Group Inc. to 'CCC+'
from 'B-'. The outlook is negative.
"Our downgrade reflects the expected impact from the COVID-19
pandemic. We believe the fallout will result in heightened
delinquencies and charge-offs on DriveTime's loan portfolio, which
will increase the risk of the company breaching delinquency
covenant triggers on its warehouse lines. The company has multiple
levels of triggers that at first result in advance rate decreases
on one of the lines and then amortization. We believe delinquencies
could rise enough to surpass level 3 triggers, though this may
depend on the amount of extensions DriveTime is able to give
borrowers, which would decrease delinquency metrics," S&P said.
The negative outlook on DriveTime reflects S&P's expectation that
delinquencies and charge-offs are highly likely to increase given
the current consumer environment. S&P believes this is likely to
erode much of the current cushion to the company's delinquency
covenants on its warehouse lines. Additionally, the rating agency
expects earnings and originations to deteriorate over the next 12
months.
"We could lower the rating on DriveTime over the next 12 months if
credit quality deteriorates such that the company is likely to
breach its level 3 delinquency covenant triggers or its leverage
covenant," S&P said.
"We could revise our outlook on DriveTime to stable over the next
12 months if macroeconomic conditions improve and the company is
not at risk of breaching level 3 covenant triggers," the rating
agency said.
DROPCAR INC: Friedman LLP Raises Substantial Going Concern Doubt
----------------------------------------------------------------
DropCar, Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$4,902,383 on $0 of revenue for the year ended Dec. 31, 2019,
compared to a net loss of $18,749,163 on $0 of revenue for the year
ended in 2018.
The audit report of Friedman LLP states that the Company has
recurring losses and negative cash flows from operations. These
conditions, among others, raise substantial doubt about the
Company's ability to continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $5,257,477, total liabilities of $2,389,132, and a total
stockholders' equity of $2,868,345.
A copy of the Form 10-K is available at:
https://is.gd/gny5CM
DropCar, Inc. provides automotive vehicle support, fleet logistics,
and concierge services for consumers and businesses in
automotive-related industries. The company offers Vehicle
Assistance and Logistics (VAL) platform and mobile application
(app) to assist consumers and automotive-related companies. Its
VAL platform is a Web-based interface that facilitates service by
coordinating the movements and schedules of valets who pick up and
drop off cars at dealerships, customer, and other locations; and
app tracks progress and provides real-time email and/or text
notifications on status to customers. The company operates
business-to-consumer services within the greater New York City
metropolitan area and operates business-to-business services across
the greater New York City metropolitan area, New Jersey, Washington
D.C., Baltimore, Los Angeles, and San Francisco. DropCar, Inc. is
based in New York, New York.
DUNCAN MORGAN: Trustee Wants Until June 5 to File Plan & Disclosure
-------------------------------------------------------------------
Kevin L. Sink, Chapter 11 Trustee, moves the Court pursuant to 11
U.S.C Sec. 1121(d) and Bankruptcy Rule 9006(b) for entry of an
order authorizing and allowing an additional extension of time
within which the Trustee may file its Plan of Reorganization and
Disclosure Statement for 60 days, to and including June 5, 2020.
Since his appointment, the Trustee has actively been working to
administer this Chapter 11 estate and to determine the amount and
nature of claims against this Debtor. A substantial number of
proofs of claims were filed against the Debtor, primarily by
insiders of the Debtor. The Trustee has discussed these claims
with the Bankruptcy Administrator's Office and both parties believe
that discovery is necessary to determine the validity, if any, and
amount of such claims. As the Court is well aware, certain parties
have delayed the discovery process which has impaired the
Trustee’s ability to administer the estate. The determination of
these claim issues will help determine issues relating to any plan
of reorganization/liquidation.
The Trustee is actively working on plan formulation however needs
time to review the recently provided documents requested in the
Subpoena before being able to fully assess the validity of the
Claims filed against the Debtor and the proper administration of
the Debtor's assets. The Trustee requests an additional 60 days to
file a Plan and Disclosure Statement for the Debtor.
Chapter 11 Trustee:
Kevin L. Sink
NICHOLLS & CRAMPTON, PA.
P. O. Box 18237
Raleigh, NC 27619
Telephone: 919-781-1311
Facsimile: 919-782-0465
E-mail: ksink@nichollscrampton.com
About Duncan Morgan
Duncan Morgan LLC is primarily engaged in renting and leasing real
estate properties.
Duncan Morgan sought Chapter 11 protection (Bankr. E.D.N.C. Case
No. 19-03113) on Oct. 10, 2019. The Debtor was estimated to have
$1
million to $10 million in assets and liabilities as of the
bankruptcy filing.
The Hon. David M. Warren is the case judge.
J.M. Cook, Esq., is the Debtor's counsel.
Kevin L. Sink was appointed as Chapter 11 trustee on Aug. 21,
2019.
The Chapter 11 Trustee can be reached at:
Kevin L. Sink
NICHOLLS & CRAMPTON, PA.
P.O. Box 18237
Raleigh, NC 27619
Telephone: 919-781-1311
Facsimile: 919-782-0465
E-mail: ksink@nichollscrampton.com
On Dec. 31, 2019, the Court appointed Jeff Horton of Allen Tate
Realty as the realtor for the Trustee.
EASTERN NIAGARA HOSPITAL: PCO Files 1st Report
----------------------------------------------
Michele McKay, MSN, RN, the Patient Care Ombudsman for Eastern
Niagara Hospital, Inc., submits to the U.S. Bankruptcy Court for
the Western District of New York her first report regarding the
quality of patient care provided by the Debtor following visits to
the Debtor's facility on December 19, 2019, January 22, 2020 and
January 23, 2020.
The PCO, together with Maralyn Militello, the Senior Director of
Nursing, visited both the acute care hospital and the outpatient
site which includes the surgery center and urgent care center.
During the time of the report, there were no complaints from
patients, their families or staff that indicate any substantial
decline in patient care. Staff and patients were randomly chosen
for these interviews. Patients report being satisfied with their
nursing care and medical treatment during their hospital stay. One
patient did comment that during their time in the Emergency Room
(ER), there was a length of time that they felt like they were
waiting in the ER bed and nothing was being done. Review of charts
and ER records during that time frame revealed that the patient was
attended to and that the wait time was justified.
The PCO was able to review patient safety indicator reports
including fall records and infection rates from January through
November 2019, and there have been no increases in falls or
infection rates since the initiation of the bankruptcy proceedings.
December reports were not yet available during her January visit.
From questions to staff and from general observations, all supplies
and resources required for routine patient care are available in
both the inpatient and outpatient settings. Treatment supply rooms
and medication cabinets have been adequately stocked and staff
report having all supplies needed for routine patient care
including linens and disinfection agents. The facilities are clean
and staff has been observed adhering to infection control
practices. One ICU nurse said they had a patient with a wound that
needed a specially-sized dressing and that they were awaiting more
of these from the wound care nurse; the nursing administration was
aware of this and was following up to ensure that this dressing was
received.
Inpatient and outpatient units have been staffed according to the
facility's usual patterns, and there have been no reports of unsafe
staffing on any of the inpatient or outpatient units. Census is
maintaining at 28-30 patients on the inpatient medical-surgical
unit, 15-20 on the inpatient chemical dependency unit and from 4-5
patients in the intensive care unit. Outpatient surgery is
adequately staffed and the caseload has been maintained and in some
areas increased since the beginning of November 2019. The
outpatient center includes two areas, the Express Care Center and
an Occupational Health center; nursing, medical, allied health, and
administrative staff in both centers all indicate that they have
required staffing and resources to meet the needs of their patients
and clients.
About Eastern Niagara Hospital
Eastern Niagara Hospital, Inc. -- http://www.enhs.org/-- is a
not-for-profit organization, focused on providing general medical
and surgical services. It offers radiology, surgical services,
rehabilitation services, cardiac services, respiratory therapy,
obstetrics and women's health, emergency services, acute and
intensive care, chemical dependency treatment, occupational
medicine services, DOT medical exams, dialysis, laboratory
services, child and adolescent psychiatry, and express care.
Eastern Niagara Hospital sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 19-12342) on Nov. 7,
2019. At the time of the filing, the Debtor disclosed assets of
between $10 million and $50 million and liabilities of the same
range.
The Debtor tapped Jeffrey Austin Dove, Esq., at Barclay Damon LLP,
as its legal counsel.
The U.S. Trustee for Region 2 appointed creditors to serve on the
official committee of unsecured creditors on Nov. 22, 2019. The
committee is represented by Bond, Schoeneck & King, PLLC.
Michele McKay was appointed as health care ombudsman in the
Debtor's bankruptcy case.
ELK PETROLEUM: Exclusivity Period Extended Until May 16
-------------------------------------------------------
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for
the District of Delaware extended to May 16 the exclusive period
during which Elk Petroleum Inc. can file a Chapter 11 plan. The
company has the exclusive right to solicit votes on its plan until
July 15.
Elk Petroleum sought the extension to enable the company and its
key constituents to explore and develop consensual terms for a
liquidating plan at minimal cost and preserve and capitalize on the
company's progress to date in the pursuit of a successful
liquidation of its remaining assets.
Elk Petroleum has continued to work expeditiously to address
critical issues and move its bankruptcy case forward. The global
settlement, the sale of Elk Operating Services LLC, and the
confirmation of the plan for Elk Petroleum Aneth, LLC and Resolute
Aneth, LLC reflect substantial steps in Elk Petroleum's progress
towards developing and filing a liquidating plan in its case.
About Elk Petroleum
Elk Petroleum Inc. -- https://www.elkpet.com/ -- is an oil and gas
company specializing in enhanced oil recovery (EOR).
Elk Petroleum and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-11157) on
May 22, 2019. At the time of the filing, Elk Petroleum estimated
assets of between $1 million and $10 million and liabilities of
less than $50,000. The petition was signed by Scott M.
Pinsonnault, chief restructuring officer.
Debtors tapped Norton Rose Fulbright US LLP and Womble Bond
Dickinson (US) LLP as legal counsel; Ankura Consulting Group, LLC,
as restructuring advisor; Seaport Global Securities LLC as
investment banker; Opportune LLP as valuation analysis provider;
and Bankruptcy Management Solutions, Inc., as claims and noticing
agent.
Andrew Vara, acting U.S. trustee for Region 3, appointed a
committee of preferred equity security holders on June 19, 2019.
The equity committee tapped Morris, Nichols, Arsht & Tunnell LLP as
its legal counsel, and Teneo Capital Llc as its financial advisor
and investment banker.
No official committee of unsecured creditors has been appointed in
Debtors' cases.
ENERGY VENTURES: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Investors Service downgraded Energy Ventures GoM LLC's
Corporate Family Rating to Caa1 from B3, Probability of Default
Rating to Caa1-PD from B3-PD and senior secured second lien notes
rating to Caa2 from Caa1. The outlook was changed to negative from
stable.
"The downgrade of EnVen's ratings reflects the negative impact of
the weak oil and gas price environment on the company's credit
quality as well as rising risks of restructuring and default over
time," said Jonathan Teitel, Moody's Analyst.
Downgrades:
Issuer: Energy Ventures GoM LLC
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD
Corporate Family Rating, Downgraded to Caa1 from B3
Senior Secured Notes, Downgraded to Caa2 (LGD5) from Caa1 (LGD5)
Outlook Actions:
Issuer: Energy Ventures GoM LLC
Outlook, Changed to Negative from Stable
RATINGS RATIONALE
The downgrade of EnVen's ratings reflects negative effects of weak
commodity prices. Over time, there are rising risks of
restructuring and default, including a distressed exchange which
could be deemed a default by Moody's. Notwithstanding these risks,
the company has some time to address its refinancing needs as its
undrawn revolver expires in January 2022 and its bonds mature in
February 2023. The negative outlook reflects that increasing risks
of a default over time and further erosion of liquidity.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The E&P sector has
been one of the sectors most significantly affected by the shock
given its sensitivity to demand and oil prices. More specifically,
the weaknesses in EnVen's credit profile have left it vulnerable to
shifts in market sentiment in these unprecedented operating
conditions and EnVen remains vulnerable to the outbreak continuing
to spread and oil prices remaining weak. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
Its action reflects the impact on EnVen of the breadth and severity
of the oil demand and supply shocks, and the broad deterioration in
credit quality it has triggered.
Moody's expects that EnVen will maintain adequate liquidity in
2020. The revolver expires in January 2022 and the second lien
notes mature in February 2023. EnVen's revolver has $350 million of
elected commitments and a $400 million borrowing base. Reduction in
the borrowing base during spring redetermination is possible though
adequate liquidity is likely maintained in 2020 since the revolver
was undrawn as of December 31, 2019 (a small number of letters of
credit were outstanding). Providing support to liquidity is a cash
balance of $122 million as of December 31, 2019 (excluding
restricted cash).
EnVen's Caa1 CFR reflects challenges posed by a weak commodity
price environment and that over time, refinancing risks and default
risks increase, including risk of a distressed exchange which could
be deemed a default by Moody's. The company has small scale and
offshore concentration in the deep-water Gulf of Mexico along with
the associated operating risks. EnVen's offshore activities carry
large well abandonment liabilities partially offset by restricted
cash on the balance sheet held for these obligations. These
liabilities (much of which are long-term) signify higher underlying
leverage and have ongoing cash expenditures. EnVen's credit quality
benefits from oil-weighted production notwithstanding weakening
prices, as well as existing infrastructure in the Gulf of Mexico.
Moreover, its oil has low basis differentials, or even premiums at
times. EnVen is a small producer and average daily production
declined meaningfully during the first three quarters of 2019,
hindered by shut-ins and weather disruptions, before rebounding in
the fourth quarter.
Environmental considerations that exploration and production
companies such as EnVen contend with are the effects of
environmental regulations on their operations, including those
specific to offshore operators, as well as limitations on where
they can explore for new resources.
Energy Ventures GoM LLC's $325 million of senior secured second
lien notes maturing in February 2023 are rated Caa2. This is one
notch below the CFR and reflects a second lien on the assets
securing the revolver. EnVen Energy Corporation, the parent
company, is a guarantor of the notes.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to a downgrade include increasing default
risk including distressed exchanges, weakening of liquidity or
Moody's view on expected recoveries is lowered.
Factors that could lead to an upgrade include refinanced debt with
longer tenors, less debt, sustainable production and reserves
growth, and adequate liquidity.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
EnVen, headquartered in Houston, Texas, is a privately-owned
exploration and production company operating in the deep-water Gulf
of Mexico. The company's owners are affiliates of Bain Capital
Credit, Adage Capital Partners, L.P., EIG Global Partners and
company management. Average daily production in 2019 was 26 Mboe/d.
ENVISION HEALTHCARE: Crescent Says $1.5M Loan at 86% Face Value
---------------------------------------------------------------
Crescent Capital BDC, Inc., has marked its $1,486,861 in loans
extended to Envision Healthcare Corporation to market at $1,275,600
or 86% of the outstanding amount, as of Dec. 31, 2019, according to
a disclosure contained in Crescent's Form 10-K filing with the
Securities and Exchange Commission for the fiscal year ended Dec.
31, 2019.
Crescent provided the Company a Senior Secured First Lien Loan that
is scheduled to mature Oct. 1, 2025. The loan charges interest at
LIBOR + 375. The weighted average current interest rate in effect
at December 31, 2019, is 5.55%.
Katherine Doherty, writing for Bloomberg News, has reported that
the medical staffing company is seeking to ease its debt load by
asking creditors to accept cuts of about 50% on their holdings.
Bondholders who agree to swap their notes for a new term loan would
get a higher priority and an earlier due date, according to people
with knowledge of the proposal, which was made privately to
investors. The plan, the report says, calls for swapping
Envision's 8.75% unsecured notes maturing in October 2026 for a
first-lien, senior secured loan that matures in October 2025, the
people said. They asked not to be identified discussing a private
transaction.
According to the report, if investors sign on by April 16, they'll
get $470 to $550 principal amount of term loans for every $1,000 of
bonds they turn in. If they wait until the final expiration on
April 30, they get $440 to $520 of the term loans, the sources told
Bloomberg.
The company has more than $1.2 billion of 2026 notes outstanding,
with some of them quoted at less than 20 cents on the dollar.
Nashville, Tennessee-based Envision is backed by KKR & Co., which
bought the company in a leveraged buyout in October 2018.
EVERI PAYMENTS: S&P Cuts ICR to 'B' on Disruption From Coronavirus
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
gaming and payments equipment and software provider Everi Payments
Inc. to 'B' from 'B+', and lowered all issue-level ratings one
notch in line with the issuer credit rating. Ratings remain on
CreditWatch with negative implications.
The downgrade reflects the heightened liquidity risk in light of
the temporary closure of casinos to prevent the spread of COVID-19.
Gaming machine manufacturers such as Everi will generate negative
EBITDA and burn cash for as long as casinos are closed, because it
will not be earning revenue from gaming machines or financial
technology equipment placed on casino floors. Furthermore, S&P
believes it is unlikely that gaming operators will replace gaming
machines while they are closed or even once they reopen, but will
focus on preserving liquidity, managing operating costs, and
reducing capital expenditures.
"In resolving the CreditWatch listing, we plan to assess the
company's cash burn rate while casinos are closed; additional steps
it might take to reduce operating expenses; and evaluate the
company's liquidity position in light of the uncertain duration of
the casino closures. In addition, we plan to assess how the U.S.
recession and potential continued social distancing measures might
affect consumer discretionary spending at casinos, and the impact
on how quickly Everi's EBITDA and discretionary cash flow
generation might recover later in 2020 and into 2021. We will also
assess how quickly Everi's credit measures can recover following a
spike in 2020 and whether the company will be able to rebuild cash
balances that may have been depleted during the casino closures,"
S&P said.
FCPR ACQUISITION: Trustee Retains Jennis Law as Special Counsel
---------------------------------------------------------------
Judge Caryl E. Delano approved the application of Alex Moglia, the
Chapter 11 Trustee of debtors FCPR Acquisition, LLC, Cedar
Plastics, LLC, and Cedar Trucking, LLC, to retain David Jennis,
P.A. d/b/a Jennis Law Firm (Jennis Law) as special counsel.
The Court finds that the Trustee's retention of Jennis Law as
special counsel is in the best interest of the estates; and, that
Jennis Law does not represent or hold any interest adverse to the
Debtors or to the estates with respect to the matters on which
Jennis Law is to be employed.
A full-text copy of the order dated March 27, 2020, is available at
https://tinyurl.com/vv4uobr from PacerMonitor at no charge.
About FCPR Acquisition
FCPR Acquisition, LLC, provides carpet recycling services. The
company is doing business as Florida Carpet & Pad Recycling.
FCPR sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 19-08611) on Sept. 11, 2019. Its
affiliates, Cedar Plastics, LLC (Bankr. M.D. Fla. Case No.19-09429)
and Cedar Trucking, LLC (Bankr. M.D. Fla. Case No.19-09430) filed
Chapter 11 petitions on Oct. 3, 2019. The cases are jointly
administered under Case No. 19-08611.
At the time of the filing, FCPR and Cedar Plastics were estimated
to have assets of less than $50,000 and debts of less than $10
million. Cedar Trucking had estimated assets of less than $50,000
and liabilities of less than $1 million.
The cases have been assigned to Judge Caryl E. Delano.
The Debtors are represented by Daniel E. Etlinger, Esq., at Jennis
Law Firm.
The U.S. Trustee for Region 21 on Nov. 15, 2019, appointed three
creditors to serve on the official committee of unsecured
creditors. The Committee hires Buss Ross, P.A., as counsel.
FENDER MUSICAL: S&P Places 'B' ICR on CreditWatch Negative
----------------------------------------------------------
S&P Global Ratings placed all of the ratings on Fender Musical
Instruments Corp., including its 'B' issuer credit rating, on
CreditWatch with negative implications.
Although Fender should have adequate liquidity to handle a
significant near-term drop in sales and EBITDA, there is
considerable uncertainty about their severity. Fender has enjoyed
revenue growth well above GDP growth and improving margins over the
last several years, primarily due to product innovation and
operational improvements.
"We estimate leverage was in the mid-3x area at the end of 2019 (or
about 5x including a put option held by its majority owner, which
we treat as a debt-like obligation). However, the COVID-19 pandemic
has led to an unprecedented wave of musical instrument store
closures for Fender's retail customers, and consumers are pulling
back on discretionary purchases such as guitars. We project the
company will have adequate liquidity to weather a significant drop
in sales and EBITDA even in our base-case assumption that leverage
temporarily spikes above our downgrade threshold of 7x total debt
to EBITDA (8.5x including the put option). However, there is
considerable uncertainty about how long stores will remain closed
and the severity of sales declines over the next few months. As of
Sept. 30, 2019, Fender had more than 2x cushion under its 5.5x
total leverage covenant. Still, we believe there is some risk
Fender's liquidity could become constrained or covenants breached
if sales are worse than our forecast," S&P said.
The CreditWatch with negative implications reflects the uncertainty
of the magnitude of sales and cash flow declines over the next few
months amid the COVID-19 pandemic and unprecedented closures of its
customers' retail stores.
S&P will resolve the CreditWatch once musical instruments retailers
such as Guitar Center re-open their brick-and-mortar stores and it
has more clarity on the magnitude of second-quarter revenue and
EBITDA declines.
FERRO CORP: Egan-Jones Lowers Senior Unsecured Ratings to B
-----------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Ferro Corporation to B from B+. EJR also downgraded
the rating on commercial paper issued by the Company to B from A3.
Ferro Corporation is an American producer of technology-based
performance materials for manufacturers, focusing on four core
segments: performance colors and glass; pigments, powders, and
oxides; porcelain enamel; and tile coatings systems. Ferro was
founded in 1919 by Harry D. Cushman in Cleveland.
FIRST BANCORP: Fitch Affirms LT IDR at 'B+', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed First Bancorp's Long-Term Issuer Default
Rating at 'B+'. The Rating Outlook remains Stable. Fitch affirmed
FBP's ratings with a Stable Outlook on Oct. 23, 2019, following the
announcement that FBP will acquire Banco Santander Puerto Rico.
While the ultimate economic implications of the coronavirus
pandemic are unclear and the risk to banks' financial profiles is
clearly skewed to the downside, Fitch believes these risks are
already captured in FBP's current ratings levels. In addition,
fiscal, monetary and liquidity programs launched by the U.S.
federal government are expected to mitigate the full effect on
banks' financial performance. Although asset quality and earnings
may be challenged over the Outlook horizon, Fitch believes FBP is
entering this stress period from a position of relative strength.
KEY RATING DRIVERS
IDRs and VRs
Fitch expects that the coronavirus pandemic and associated
lockdowns in Puerto Rico will have a negative impact on Puerto
Rico's economic activity in the near term. However, Fitch expects
Puerto Rico's reliance on federal transfer payments, fiscal
stimulus programs enacted by the federal government, and lower
energy prices to provide support for Puerto Rico's economy. As a
result, Puerto Rico's economy may be less impacted than the U.S.
mainland as a result of the coronavirus pandemic.
FBP's ratings continue to be constrained by a challenging and
uncertain operating environment in Puerto Rico over the longer
term. Fitch expects that federal aid from the U.S. government and
rebuilding efforts will have a positive medium-term impact on the
island's economy. Additionally, Fitch believes the size of the aid
package outweighs some of the uncertainty around the timing and
amount of federal aid that will Puerto Rico will ultimately
receive. The latest approved fiscal plan from the Government of
Puerto Rico estimates total aid of approximately $82 billion
consisting of federal aid and insurance proceeds over a 15-year
time period. Longer-term prospects for the island's economy,
outside of the current Outlook horizon, depend heavily on the
effectiveness of fiscal and structural reforms.
The BSPR acquisition was in line with Fitch's expectations that FBP
would seek to improve its market share in Puerto Rico through M&A.
Upon close, FBP's pro forma loan and deposit market share would
increase to around 30% and 20%, from 19% and 11%, respectively, and
would solidify FBP's market position as 2nd in Puerto Rico,
following OFG Bancorp's acquisition of Scotiabank de Puerto Rico
announced in June 2019. Fitch expects that the coronavirus pandemic
could delay the close of the acquisition, which is currently
expected to occur in 2Q20.
FBP's financial profile has proven to be resilient despite the
challenging fiscal situation in Puerto Rico and damage stemming
from the hurricanes. Fitch expects that asset quality metrics will
likely deteriorate in the near term, with the ultimate impact on
credit losses will depend heavily on the severity and duration of
the negative economic impact of the coronavirus pandemic, and to
what degree fiscal interventions by the U.S. federal government are
able to mitigate the impact on businesses and consumers. Asset
quality metrics such as net charge-offs and nonperforming assets to
loans and other real estate owned have improved meaningfully over
the last few years.
FBP's capital ratios are among the highest in Fitch's rated
universe and should provide an adequate buffer to potential losses
stemming from credit quality deterioration. FBP's CET1 capital
ratio is expected to fall to 15.3% as a result of the transaction
from 21.6% at year-end 2019 (excluding the impact of CECL). Given
FBP's risk profile and uncertainties that remain regarding the
Puerto Rico economy, the company's higher capital ratios are viewed
as prudent and supportive of the ratings.
FBP's core earnings have improved meaningfully over the last few
years and, importantly, stabilized despite challenges caused by the
fiscal situation and hurricanes in Puerto Rico. Fitch still expects
that earnings could face headwinds due to lower interest rates and
increased provision expenses stemming from the coronavirus
pandemic, as well as merger-related charges in the short term,
which is incorporated in Fitch's action.
FBP's funding profile is well situated for its current ratings.
Fitch observes that there has been modest improvement over time
with the company reducing its reliance on noncore funding sources,
particularly brokered deposits. Historically, FBP's funding profile
has been weaker when compared to U.S. bank peers, given greater
reliance on non-core funding sources. The degree to which the BSPR
acquisition will strengthen FBP's funding profile will depend
heavily on the level of customer attrition experienced on close.
LONG- AND SHORT-TERM DEPOSIT RATINGS
FBP's uninsured deposits at its subsidiary bank are rated one notch
higher than FBP's Long-Term IDR because U.S. uninsured deposits
benefit from depositor preference. U.S. depositor preference gives
deposit liabilities superior recovery prospects in the event of
default.
HOLDING COMPANY
FBP has a bank holding company (BHC) structure with the bank as the
main subsidiary. The company's IDRs and VRs are equalized with
those of the operating company and bank, reflecting its role as the
bank holding company, which is mandated in the U.S. to act as a
source of strength for its bank subsidiary. Double leverage is
below 120% for the FBP parent company.
SUPPORT RATING AND SUPPORT RATING FLOOR
The Support Rating of '5' and Support Ratings Floor of 'NF' reflect
Fitch's view that FBP is not considered systemically important, and
therefore the probability of support is unlikely. The IDRs and VRs
do not incorporate any support.
RATING SENSITIVITIES
IDRs and VRs
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Positive rating momentum could build over time if structural and
fiscal reforms in Puerto Rico result in stabilized and improved
demographic trends, economic growth and a more favorable business
climate. Positive rating momentum could also result from
improvement in asset quality performance while maintaining capital
levels in-line with or higher than peers. FBP's ratings could also
benefit from a sustained stronger market position in Puerto Rico,
which has historically constrained its ratings.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A more prolonged coronavirus-related economic downturn or
sustained lockdown measures that result in a structurally weaker
asset quality and earnings performance would be negative for
ratings. FBP's ratings could be negatively impacted if
environmental factors such as severe weather events that result in
weaker demographic or economic growth trends and/or sustained asset
quality deterioration. While not expected, Fitch could take
negative action should FBP engage in additional M&A resulting in
capital ratios falling further than FBP's pro forma projections.
LONG- AND SHORT-TERM DEPOSIT RATINGS
FBP's long-term deposit rating is sensitive to changes in the
company's Long-Term IDR. The short-term deposit rating is sensitive
to changes in the long-term deposit rating and Fitch's assessment
of FBP's funding and liquidity profile.
HOLDING COMPANY
If FBP became undercapitalized or increased double leverage
significantly, Fitch could notch the holding company IDR and VR
down from the ratings of the bank subsidiary. Additionally, upward
momentum at the holding company could be limited should FBP manage
its holding company liquidity more aggressively over time evidenced
by cash coverage of less than four quarters of required cash
outlays.
SUPPORT RATING AND SUPPORT RATING FLOOR
The Support Rating and Support Rating Floor are sensitive to
Fitch's assumption around capacity to procure extraordinary support
in case of need.
BEST/WORST CASE RATING SCENARIO
Ratings of Financial Institutions 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.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
FBP has an ESG Relevance Score of 4 for Environmental Impacts as
the impact of Hurricanes Irma and Maria have complicated the
Commonwealth of Puerto Rico's efforts to reverse outward migration,
generate sustainable economic growth, and address its fiscal and
debt imbalances, which has a negative impact on the credit profile,
and is relevant to the rating in conjunction with other factors.
Except for the matters discussed, the highest level of ESG credit
relevance, if present, is a score of 3. This means ESG issues are
credit-neutral or have only a minimal credit impact on the
entity(ies), either due to their nature or to the way in which they
are being managed by the entity(ies).
FLUOR CORP: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Fluor Corporation to BB+ from BBB-.
Fluor Corporation is an American multinational engineering and
construction firm headquartered in Irving, Texas. It is a holding
company that provides services through its subsidiaries in the
following areas: oil and gas, industrial and infrastructure,
government and power.
FOOT LOCKER: Egan-Jones Lowers Senior Unsecured Ratings to B
------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Foot Locker Incorporated to B from BB. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A2.
Foot Locker Retail, Inc. is an American sportswear and footwear
retailer, with its headquarters in Midtown Manhattan, New York
City, and operating in 28 countries.
FOOTHILLS EXPLORATION: Delays Filing of Form 10-K Over COVID-19
---------------------------------------------------------------
Foothills Exploratoin, Inc., has been unable to compile and review
certain information required in order to permit the Company to file
a timely and accurate annual report on Form 10-K for its year ended
Dec. 31, 2019 by the prescribed date without unreasonable effort or
expense due to circumstances related to COVID-19.
The Company said certain of its officers and management as well as
professional staff and consultants are unable to conduct work
required to prepare its financial report for the year ended Dec.
31, 2019. On March 19, 2020 the State of California Governor,
Gavin Newsom and Los Angeles Mayor Garcetti issued an emergency
shelter-in-place order for the State of California and city of Los
Angeles, where the Company's principal offices are located ordering
the closure of all non-essential businesses. In addition, the
Company is concerned with issues raised concerning shelter-in-place
orders issued by governors in states where its officers, directors,
management, professional staff, auditors and consultants are
located, including New York, New Mexico, Nevada and Maryland, where
COVID-19 infections have been identified. Each of these states has
declared a state of emergency and safety concerns are paramount.
On March 4, 2020 the Securities and Exchange Commission issued an
Order under Section 36 (Release No. 34-88318) of the Securities
Exchange Act of 1934 granting exemptions from specified provisions
of the Exchange Act and certain rules thereunder. The Order
provides that a registrant (as defined in Exchange Act Rule 12b-2)
subject to the reporting requirements of Exchange Act Section 13(a)
or 15(d), and any person required to make any flings with respect
to such a registrant, is exempt from any requirement to file or
furnish materials with the Commission under Exchange Act Sections
13(a), 13(f), 13(g), 14(a), 14(c), 14(f), 15(d) and Regulations
13A, Regulation 13D-G (except for those provisions mandating the
fling of Schedule 13D or amendments to Schedule 13D), 14A, 14C and
15D, and Exchange Act Rules 13f-1, and 14f-1, as applicable, where
certain conditions are satisfied.
The Company is relying on this Order for filing of its Form 10-K
the later of March 31, 2020 or original filing deadline of the
report and expects to file its annual report on Form 10-K
approximately 45 days after March 31, 2020.
The Company is supplementing the risk factors previously disclosed
in the Company's Annual Report on Form 10-K for the year ended Dec.
31, 2019 and its subsequent Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, with the following risk factor:
"War, terrorism, other acts of violence or natural or manmade
disasters such as a global pandemic may affect the markets in which
the Company operates, the Company's customers, the Company's
delivery of products and customer service, and could have a
material adverse impact on our business, results of operations, or
financial condition.
"The Company's business may be adversely affected by instability,
disruption or destruction in a geographic region in which it
operates, regardless of cause, including war, terrorism, riot,
civil insurrection or social unrest, and natural or manmade
disasters, including famine, food, fire, earthquake, storm or
pandemic events and spread of disease (including the recent
outbreak of the coronavirus commonly referred to as "COVID-19").
Several of the Company's financiers and key stakeholders are
located in Southeast Asia, including Hong Kong, which has been
severely affected by COVID-19 since December 2019. As such, these
events have had a negative impact on the Company's ability to raise
additional investment capital from current stakeholders.
Furthermore, the recent crude oil price war initiated between
Russia and OPEC, caused primarily by the drastic decline in demand
growth for crude oil due to COVID-19, has further negatively
impacted the Company's oil and gas operations, which could
materially adversely affect the Company's financial results.
"Any significant disruption to communications and travel, including
travel restrictions and other potential protective quarantine
measures against COVID-19 by governmental agencies, may increase
the difficulty and could make it extremely difficult to market its
products. The extent to which COVID-19 impacts the Company's
business, sales and results of operations will depend on future
developments, which are highly uncertain and cannot be predicted.
"We believe the novel coronavirus (COVID-19) has negatively
affected our corporate operations necessary to prepare and maintain
accurate accounting and reporting, and could continue to do so in
the foreseeable future. COVID-19 has resulted in restrictions,
postponements and cancellations and the impact, extent and duration
of the government-imposed restrictions on travel and public
gatherings as well as the overall effect of the COVID-19 virus is
currently unknown.
"The ongoing circumstances resulting from the COVID-19 virus
outbreak magnify the challenges faced from our continuing efforts
to develop, build and finance our business operations and could
have an impact on our business and financial results."
About Foothills Exploration
Foothills Exploration, Inc. -- http://www.foothillspetro.com/-- is
a growth stage oil and gas exploration and production company with
a focus in the acquisition and development of undervalued and
underdeveloped properties. The Company's assets are located across
well-established plays in the U.S. Rocky Mountain region.
Foothills Exploration incurred a net loss of $6.58 million in 2018
following a net loss of $6.49 million in 2017. As of Sept. 30,
2019, the Company had $13.49 million in total assets, $23.60
million in total liabilities, and a total stockholders' deficit of
$10.11 million.
RBSM LLP, in Henderson, Nevada, the Company's auditor since 2015,
issued a "going concern" opinion in its report dated April 16,
2019, on the Company's consolidated financial statements for the
year ended Dec. 31, 2018, citing that the Company has an
accumulated deficit, recurring losses, and expects continuing
future losses, and has stated that substantial doubt exists about
the Company's ability to continue as a going concern.
FOURTEENTH AVENUE: Disc. Statement Has Preliminary Approval
-----------------------------------------------------------
Judge Maria L. Oxholm has ordered that the disclosure statement
filed by Fourteenth Avenue Cartage Company, Inc., is granted
preliminary approval.
The deadline to return ballots on the Plan, as well as to file
objections to final approval of the Disclosure Statement and
objections to confirmation of the Plan, is April 23, 2020.
The hearing on objections to final approval of the Disclosure
Statement and confirmation of the Plan will be held on Thursday,
May 7, 2020 at 11:00 a.m. in Room 1875, 211 W. Fort Street,
Detroit, Michigan.
About Fourteenth Avenue Cartage Co.
Fourteenth Avenue Cartage Company, Inc. --
http://www.fourteenth.com/-- is a trucking company in Dearborn,
Mich. It provides intermodal, truck load and cross-border
deliveries across Michigan, Ohio, Ontario, Indiana, Illinois and
Wisconsin. Fourteenth Avenue owns and operates a fleet of over 75
tractors and over 500 trailers.
Fourteenth Avenue Cartage Company sought protection under Chapter
11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 19-54128) on
Oct. 3, 2019. In the petition signed by COO James V. Ryan, the
Debtor was estimated to have assets and debt of less than $10
million. Judge Marci B. McIvor oversees the case.
The Debtor tapped Wernette Heilman, PLLC as its legal counsel, and
Mies and Company, Inc. as its financial advisor.
The U.S. Trustee for Region 9 appointed a committee of unsecured
creditors on Oct. 31, 2019. The committee tapped Schafer and
Weiner, PLLC as its legal counsel.
FRANK INVESTMENTS: Disclosure Hearing Continued to April 16
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, considered the ex parte motion to
continue hearing on approval of Disclosure Statements filed by
debtors Frank Investments, Inc., a New Jersey corporation, and
Frank Theatres Management, LLC.
On March 31, 2020, Judge Erik P. Kimball granted the motion and
ordered that:
* The hearing on approval of the Debtors' disclosure statements
that is currently scheduled for April 2, 2020, is continued to
April 16, 2020, at 10:30 A.M. at the United States Bankruptcy
Court, The Flagler Waterview Building, 1515 North Flagler Drive,
8th Floor, Courtroom B, West Palm Beach, Florida 33401.
* The Debtors shall file amended disclosure statements and, if
necessary, amended plans by April 9, 2020.
* April 14, 2020, is the last day for filing and serving
objections to the amended disclosure statements.
A full-text copy of the order dated March 31, 2020, is available at
https://tinyurl.com/ucgatja from PacerMonitor at no charge.
The Debtors are represented by:
Patrick Dorsey, Esq.
SHRAIBERG, LANDAU & PAGE, P.A.
2385 NW Executive Center Drive, Suite 300
Boca Raton, Florida 33431
Telephone: 561-443-0800
Facsimile: 561-998-0047
E-mail: pdorsey@slp.law
About Frank Investments
Frank Investments Inc., Frank Theatres Management LLC and Frank
Entertainment Companies, LLC are affiliates of Rio Mall, LLC, which
sought bankruptcy protection (Bankr. S.D. Fla. Case No. 18-17840)
on June 28, 2018. Rio Mall, LLC, owns and operates commercial real
property that comprises the shopping center known as Rio Mall
located at 3801 Route 9 South, Rio Grande, N.J.
Frank Investments and its debtor-affiliates sought Chapter 11
protection (Bankr. S.D. Fla. Lead Case No. 18-20019) on Aug. 17,
2018. At the time of the filing, Frank Investments and Frank
Entertainment had estimated assets of between $10 million and $50
million and liabilities of the same range. Frank Theaters had
estimated assets of between $10 million and $50 million and
liabilities of between $50 million and $100 million.
Bradley S. Shraiberg, Esq., at Shraiberg Landau & Page, P.A., is
the Debtors' bankruptcy counsel.
No official committee of unsecured creditors has been appointed.
FRE 355 INVESTMENT: Case Summary & 2 Unsecured Creditors
--------------------------------------------------------
Debtor: FRE 355 Investment Group, LLC
d/b/a FRE 355
10700 Mora Drive
Los Altos, CA 94024
Business Description: FRE 355 Investment Group, LLC is a Single
Asset Real Estate (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: April 13, 2020
Court: United States Bankruptcy Court
Northern District of California
Case No.: 20-50628
Judge: Hon. Stephen L. Johnson
Debtor's Counsel: Michael W. Malter, Esq.
BINDER & MALTER, LLP
2775 Park Avenue
Santa Clara, CA 95050
Tel: (408) 295-1700
E-mail: Michael@bindermalter.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Melvin Vaugh, managing member.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/2pwtCk
List of Debtor's Two Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Dzine Staging Company $350,000
128 Utah Street Contract
San Francisco, CA 94103
Eve Forbord
Tel: 415-674-9430
2. EPS Plumbing Sub-Contractor $25,000
307 N. Amphlett Blvd. for work on
San Mateo, CA 94401 premises
Nick Bechwati, Owner
Tel: 650-343-9477
FRONTIER COMMUNICATIONS: Egan-Jones Lowers Sr. Unsec. Ratings to D
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Frontier Communications Corporation to D from CCC.
EJR also downgraded the rating on commercial paper issued by the
Company to D from C.
Frontier Communications Corporation is a telecommunications company
in the United States. It was known as Citizens Utilities Company
until May 2000 and Citizens Communications Company until July 31,
2008.
GENIUS BRANDS: Squar Milner LLP Raises Going Concern Doubt
----------------------------------------------------------
Genius Brands International, Inc., filed with the U.S. Securities
and Exchange Commission its annual report on Form 10-K, disclosing
a net loss (applicable to common shareholders) of $14,861,534 on
$5,907,899 of total revenues for the year ended Dec. 31, 2019,
compared to a net loss (applicable to common shareholders) of
$9,357,234 on $993,452 of total revenues for the year ended in
2018.
The audit report of Squar Milner LLP states that the Company has
suffered recurring losses, negative cash flows from operations and
has an accumulated deficit that raise substantial doubt about its
ability to continue as a going concern. In addition, with respect
to the ongoing and evolving coronavirus (COVID-19) outbreak, which
was designated as a pandemic by the World Health Organization on
March 11, 2020, the outbreak has caused substantial disruption in
international and U.S. economies and markets and if repercussions
of the outbreak are prolonged, could have a significant adverse
impact on the Company's business.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $29,413,237, total liabilities of $20,326,535, and a total
stockholders' equity of $9,086,702.
A copy of the Form 10-K is available at:
https://is.gd/WYYDcL
Genius Brands International, Inc., is a global content and brand
management. The Company provides entertaining and enriching
content and products with a purpose for toddlers to tweens. The
Company produces original content and licenses the rights to that
content to a range of partners.
GI TOYS: Seeks to Extend the Deadline to File Plan Through May 29
-----------------------------------------------------------------
GI Toys Holdings, Inc. asked the U.S. Bankruptcy Court for the
Central District of California to extend the deadline to file its
Chapter 11 plan and disclosure statement to May 29.
GI Toys has been in negotiation with the primary supplier of its
inventory, which the company sees as a "promising" investor,
funding source or stakeholder. The COVID-19 pandemic, however, has
delayed the company's accountant from preparing the most up-to-date
financial statements for the supplier's consideration.
The company said it needs additional time to present its current
financial statements to the supplier and continue with their
negotiations. The extension will also give the company enough time
to evaluate plan feasibility in the light of the current financial
circumstances with or without the input of the supplier.
About GI Toys Holdings
GI Toys Holdings, Inc., sought Chapter 11 protection (Bankr. C.D.
Cal. Case No. 20-11362) on Feb. 7, 2020. Debtor was estimated to
have up to $50,000 in assets and $1 million to $10 million in
liabilities. Judge Barry Russell oversees the case. The Law
Offices of Robert S. Altagen, is Debtor's legal counsel.
GLOBAL EAGLE: To Temporarily Reduce Top Executives' Pay
-------------------------------------------------------
In response to the COVID-19 pandemic, Global Eagle Entertainment
Inc. plans to temporarily, for a three-month period starting April
1, 2020, reduce the annual base salaries of its chief executive
officer by 33%, chief financial officer and president by 25%, and
chief accounting officer by 20%, subject to applicable legal
requirements. Additionally, the Company began the collective
consultation process for employees in certain international
facilities as it executes Phase III of its previously announced
cost-savings program.
About Global Eagle
Headquartered in Los Angeles, California, Global Eagle --
http://www.GlobalEagle.com/-- is a provider of media, content,
connectivity and data analytics to markets across air, sea, and
land. Global Eagle offers a fully integrated suite of rich media
content and seamless connectivity solutions to airlines, cruise
lines, commercial ships, high-end yachts, ferries and land
locations worldwide.
Global Eagle incurred a net loss of $236.60 million for the year
ended Dec. 31, 2018, compared to a net loss of $357.11 million for
the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company
had $683.41 million in total assets, $1.02 billion in total
liabilities, and a total stockholders' deficit of $340.34 million.
* * *
In July 2019, S&P Global Ratings affirmed all ratings on Global
Eagle Entertainment Inc., including its issuer credit rating of
'CCC', and revised the outlook to developing to reflect greater
flexibility to allow management to execute on its growth
initiatives. The outlook change reflects a significantly improved
liquidity profile following the recent incremental term loan and
credit agreement amendment, which buys the company more time to
execute on its growth plan.
As reported by the TCR on April 8, 2020, Moody's Investors Service
downgraded the corporate family rating of Global Eagle
Entertainment, Inc. to Caa2 from B3. The downgrade of Global
Eagle's CFR to Caa2 reflects Moody's expectations that the
company's revenue and EBITDA will experience declines in the
double-digit percentage range in 2020 leading to very high leverage
(Moody's adjusted debt to EBITDA) and weak liquidity.
GNC CORP: Egan-Jones Lowers Senior Unsecured Ratings to C
---------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by GNC Corporation to C from CCC. EJR also downgraded
the rating on commercial paper issued by the Company to D from C.
GNC Corporation retails nutritional supplements. The Company
provides sports nutritional products, diet products, vitamins,
minerals, and herbal supplements. GNC operates in the United
States.
GOODYEAR TIRE: Egan-Jones Lowers Senior Unsecured Ratings to B-
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by The Goodyear Tire & Rubber Company to B- from B+.
EJR also downgraded the rating on commercial paper issued by the
Company to B from A3.
The Goodyear Tire & Rubber Company is an American multinational
tire manufacturing company founded in 1898 by Frank Seiberling and
based in Akron, Ohio. Goodyear manufactures tires for automobiles,
commercial trucks, light trucks, motorcycles, SUVs, race cars,
airplanes, farm equipment, and heavy earth-mover machinery.
GREEN VISION: Reports $160K Net Loss for Sept. 30, 2018 Quarter
---------------------------------------------------------------
On March 27, 2020, Green Vision Biotechnology Corp. filed its
quarterly report on Form 10-Q, disclosing a net loss of $159,742 on
$257 of net revenue for the three months ended Sept. 30, 2018,
compared to a net loss of $603,678 on $16,234 of net revenue for
the same period in 2017.
At Sept. 30, 2018, the Company had total assets of $3,934,923,
total liabilities of $9,594,776, and $5,659,853 in total
stockholders' deficit.
The Company said, "The independent auditors' report accompanying
our December 31, 2017 audited financial statements filed in Form
10-K on April 17, 2018 contained an explanatory paragraph
expressing substantial doubt about our ability to continue as a
going concern.
"As of September 30, 2018 and December 31, 2017, the Company has an
accumulated deficit of $5,476,692 and $4,883,120 respectively, and
its current liabilities exceed its current assets resulting in
negative working capital of $9,255,186 and $9,029,045 respectively.
In view of the matters described above, recoverability of a major
portion of the recorded asset amounts and realization of the
portion of current liabilities into revenue shown in the
accompanying balance sheets are dependent upon continued operations
of the Company, which in turn are dependent upon the Company's
ability to raise additional financing and to succeed in its future
operations. The Company may need additional cash resources to
operate during the upcoming 12 months, and the continuation of the
Company may be dependent upon the continuing financial support of
investors and/or stockholders of the Company. However, there is no
assurance that equity or debt offerings will be successful in
raising sufficient funds to assure the eventual profitability of
the Company. These financial statements do not include any
adjustments relating to the recoverability and classification of
recorded asset amounts or amounts and classification of liabilities
that might be necessary should the Company be unable to continue as
a going concern.
"Management has taken the following steps to revise its operating
and financial requirements, which it believes are sufficient to
provide the Company with the ability to continue as a going
concern. The Company is actively pursuing (i) additional funding
which would enhance capital employed; and (ii) strategic partners
which would increase revenue bases or reduce operation expenses.
Management believes that the above actions will allow the Company
to continue its operations throughout this fiscal year."
A copy of the Form 10-Q is available at:
https://is.gd/OtuAYG
Tempe, Ariz.-based Green Vision Biotechnology Corp., formerly Vibe
Wireless Corp., is a shell company. The Company is focused in the
process of exploring business opportunities. The Company focuses
on identifying business opportunities to either develop and market
products and services, enter into strategic alliances and
relationships, or acquire existing companies or assets in selected
markets.
GREENWAY SERVICES: UST Says Action Needed on Receivables
--------------------------------------------------------
John P. Fitzgerald, III, Acting United States Trustee for Region
Four, moves the Court for the entry of orders denying approval of
the Debtor's amended disclosure statement and converting the
Debtor's case to chapter 7 or, in the alternative, appointing a
chapter 11 trustee.
The United States Trustee points out that the Debtor's modest
accrued revenues for January and February 2020 indicate that,
without taking meaningful action to collect prepetition receivables
(which the Debtor, nearly a year into this case, has failed to do),
the Debtor has no likelihood of being able to perform under its
proposed plan or rehabilitating its business.
United States Trustee further points out that the Report at Form
9-AB-4 indicates the Debtor may not be timely paying all
post-petition taxes. But even if the Debtor provides evidence it
has paid its accrued post petition taxes, at a minimum, the Debtor
is not properly segregating tax withholdings as required by the
Debtor-In-Possession Order.
In connection with the Motion, the United States Trustee issued
certain discovery requests.
The United States Trustee complains that the Debtor has been making
various payday advances to employees. It is unclear what relation,
if any, Logan Collins is to Ms. Collins, but as of Feb. 28, 2020,
he had received multiple advances and owed $730 to the Debtor.
About Greenway Services
Greenway Services, Inc. -- http://greenwayservicesincorporated.com/
-- offers clearing and demolition, earthwork, storm drainage,
utilities, and paving and concrete services. Since 1989, the
Company has been serving the NC, SC, VA, TN and KY areas.
Greenway was founded in 2008 by Mark Osborne and its initial
business was to provide reclamation services to the coal industry.
Thereafter, it branched into the excavating business. The company
filed its Chapter 11 petition because of a series of lawsuits
against it as a result of past due balances due to creditors and
threats of repossession of its equipment.
Greenway Services, Inc., based in Abingdon, VA, filed a Chapter 11
petition (Bankr. W.D. Va. Case No. 19-70750) on May 31, 2019. In
the petition signed by Mark D. Osborne, president, the Debtor was
estimated to have $1 million to $10 million in both assets and
liabilities. The Hon. Paul M. Black oversees the case. The Debtor
hired Copeland Law Firm, P.C, as bankruptcy counsel to the Debtor.
GROWCO INC: Disclosure Statement Hearing Continued to May 19
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado held a
hearing to consider the motion of Debtor GrowCo, Inc., for
extension of time to file Amended Disclosure Statement.
On March 27, 2020, Judge Joseph G. Rosania granted the motion and
ordered that:
* The Debtor shall have up to and including April 24, 2020,
within which to file its Second Amended Disclosure Statement.
* Interested parties shall have up to and including May 8, 2020,
within which to file objections to the Second Amended Disclosure
Statement.
* The hearing on adequacy of the Debtor's Second Amended
Disclosure Statemen set for April 14, 2020 at 2:00 p.m. is vacated
and continued to May 19, 2020 at 2:00 p.m. in Courtroom B, U.S.
Custom House, 721 19th Street, Denver, CO 80202.
A full-text copy of the order dated March 27, 2020, is available at
https://tinyurl.com/sz32mrq from PacerMonitor at no charge.
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 that 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
GUITAR CENTER: Moody's Lowers CFR to Caa3, Outlook Negative
-----------------------------------------------------------
Moody's Investors Service downgraded Guitar Center Inc.'s corporate
family rating to Caa3 from Caa2, probability of default rating to
Caa3-PD from Caa2-PD, and the senior unsecured notes rating to Ca
from Caa3. Concurrently, Moody's affirmed the Caa2 senior secured
notes rating. The outlook remains negative.
The CFR, PDR and unsecured notes downgrades reflect the increased
probability of a debt restructuring due to the capital markets
disruption caused by the coronavirus outbreak, as well as expected
significant earnings declines in 2020 due to temporary store
closures and declines in discretionary consumer spending. In
Moody's view these factors, together with the company's high
leverage and approaching 2021 secured notes maturity, raise the
company's probability of default.
The affirmation of the secured notes rating reflects Moody's
expectation for a relatively good recovery for secured note holders
in an event of default, reflecting the company's enterprise value
and the loss abruption provided by the unsecured notes in the
capital structure.
Moody's took the following rating actions for Guitar Center Inc.:
Corporate family rating, downgraded to Caa3 from Caa2
Probability of default rating, downgraded to Caa3-PD from
Caa2-PD
$635 million senior secured regular bond/debenture due 2021,
affirmed Caa2 (LGD3)
$325 million ($358 million outstanding amount) senior
unsecured regular bond/debenture due 2022, downgraded to
Ca (LGD5) from Caa3 (LGD5)
Outlook, remains negative
RATINGS RATIONALE
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The non-food
retail sector has been one of the sectors most significantly
affected by the shock given its sensitivity to consumer demand and
sentiment. More specifically, the weaknesses in Guitar Center's
credit profile, including its exposure to widespread store closures
and US discretionary consumer spending have left it vulnerable to
these unprecedented operating conditions, and Guitar Center remains
vulnerable to the outbreak continuing to spread. Moody's regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
Its action reflects the impact on Guitar Center of the breadth and
severity of the shock, and the broad deterioration in credit
quality it has triggered.
The Caa3 CFR reflects Moody's view that Guitar Center faces a
heightened probability of a debt restructuring as a result of its
October 2021 secured notes maturity, high leverage and expected
earnings deterioration over the next 12 months. Moody's expects
leverage to increase significantly in 2020 from 7.1 times
(Moody's-adjusted, as of February 1, 2020), driven by steep EBITDA
declines from COVID-19-related temporary store closures and weak
consumer spending. While the company's e-commerce sales and cost
reduction measures will mitigate the initial impact of store
closures, demand for musical instruments is highly discretionary
and unlikely to recover rapidly when stores reopen. Moody's expects
the company to have weak liquidity over the next 12-18 months, but
sufficient liquidity to support its operations during a limited
period of store closures assuming significant expense and CapEx
cuts and deferrals. The rating also reflects governance risks,
specifically aggressive financial strategies associated with GCI's
ownership. In addition as a retailer, GCI needs to make ongoing
investments in its brand and infrastructure, as well as in social
and environmental drivers including responsible sourcing, product
and supply sustainability, privacy and data protection.
The ratings benefit from GCI's leading market position and very
strong brand awareness within the highly fragmented specialty
retailing segment for musical instrument sales and rentals. GCI's
revenue and earnings increases over the past several years prior to
the coronavirus outbreak also support the ratings.
The negative outlook reflects the risk of greater than anticipated
liquidity pressure as a result of extended store closures, or a
steeper than expected decline in demand once stores reopen.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if earnings or liquidity weaken
more than anticipated, or if Moody's recovery estimates in an event
of default decline.
The ratings could be upgraded if the company addresses its capital
structure and debt maturities in a manner that leaves it with
adequate liquidity.
Guitar Center Inc. is the largest retailer of music products in the
United States based on revenues. The company operates stores and
websites under the Guitar Center and Music & Arts brands, and the
Musician's Friend website. GCI has been controlled by Ares Partners
following a distressed exchange in 2014. Revenues for the fiscal
year ended February 1, 2020 were approximately $2.3 billion.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
HADDAD RESTAURANT: Gets Interim Access to Cash Collateral
---------------------------------------------------------
Judge Robert D. Berger authorized Haddad Restaurant Group, Inc., to
use cash collateral on an interim basis through March 30, 2020 to
pay expenses pursuant to the budget, and fees owing to the U.S.
Trustee.
The Court ruled that the Debtor's creditors are each granted
replacement security interests in, and liens on, all of the
Debtor's and the estate's post-Petition Date acquired property that
is of the same type as the pre-petition property to the extent of
the validity and priority of said interests, liens, or security
interests.
The Debtor is indebted to Citizen's Bank and Trust Company,
pursuant to a business loan agreement, and to US Foods, Inc., under
a business loan agreement.
The Court further ruled that each creditor is granted an
administrative expense claim with priority in payment under Section
507(b) of the Bankruptcy Code to the extent the replacement liens
prove inadequate to protect the creditors from a demonstrated
diminution in value of collateral positions from the Petition
Date.
A rescheduled final hearing will be held on May 21, 2020 at 1:30
p.m.
About Haddad Restaurant Group
Haddad Restaurant Group, Inc., operates a Plaza III Restaurant
located in Overland Park, Kansas.
The company filed a Chapter 11 petition (Bankr. D. Kan. Case No.
20-20282) on Feb. 24, 2020. At the time of the filing, the Debtor
had cash and bank balances, and account receivables of
approximately $20,000. Evans & Mullinix, P.A., is the Debtor's
counsel.
HANOVER INSURANCE: Fitch Affirms Junior Subordinated Debt at BB+
----------------------------------------------------------------
Fitch Ratings has affirmed the 'A' (Strong) Insurer Financial
Strength rating of The Hanover Insurance Company, the principal
operating subsidiary of The Hanover Insurance Group (NYSE: THG).
Fitch has also affirmed THG's senior unsecured notes at 'BBB'. The
Rating Outlook is Stable.
KEY RATING DRIVERS
The above rating actions are being taken as part of Fitch's routine
annual review of THG. The review considered Fitch's current
assessment of the impact of the coronavirus pandemic, including its
economic impact, under a set of ratings assumptions related to
interest-rate levels; declines in the market values of stocks,
bonds, derivatives and other capital market instruments typically
owned or traded by insurance companies; market liquidity; and the
magnitude of claim/benefit exposures related to the coronavirus
pandemic. These assumptions were used by Fitch to develop pro-forma
financial metrics for THG that Fitch compared with both rating
guidelines defined in its criteria, and relative to previously
established Rating Sensitivities.
Assumptions for Coronavirus Impact (Rating Case):
Fitch used the following key assumptions in support of the
pro-forma ratings analysis discussed above:
-- Decline in key stock market indices by 35% relative to Jan. 1,
2020.
-- Increase in two-year cumulative high-yield bond default rate
to 16%, applied to current non-investment grade assets, as well as
a portion of 'BBB' assets.
-- Both upward and downward pressure on interest rates, with
spreads widening (including high yield by 400bps) coupled with
notable declines in government rates.
-- Capital markets access is limited for issuers at senior debt
levels of 'BBB' and below.
-- An infection rate from coronavirus of 5% and a mortality rate
(as a percent of infected) of 1%.
-- For the non-life and reinsurance sectors, a negative impact on
the industry-level accident year loss ratio from claims related to
the coronavirus pandemic at 3.5 percentage points, partially offset
by a favorable impact from the auto line averaging 1.5 percentage
points.
The rationale for the affirmation of THG's ratings reflect the
company's business profile, strong capitalization, improved
underlying underwriting performance, excluding catastrophes, and a
reserve position that Fitch views as sufficient.
THG has a moderate business profile with competitive advantages in
the U.S. independent agency space, and $4.6 billion in net written
premium (NWP) in 2019. The company's business risk profile has a
material exposure to regional natural catastrophes, but the
inherent volatility was reduced somewhat from changes in property
risk aggregations with an expanding geographic profile and shifts
in business mix. Product diversification is moderate with a focus
on short-tail lines.
Although capital formation has been relatively modest due to return
of capital to shareholders through dividends and share repurchase,
Fitch Ratings believes THG's capital sufficiently supports the
company's business profile. At YE 2019, GAAP operating leverage and
net leverage were 1.6x and 4.0x. Under Fitch's coronavirus rating
case, the pro forma operating leverage and net leverage increase to
1.7x and 4.5x, respectively. The financial leverage ratio (FLR) was
19.3% at YE 2019 and increases to 21.1% under the pro forma rating
case. The company's Prism capital model score remained 'Strong' at
YE 2018.
Fitch expects THG's capital management framework to remain
unchanged, with inorganic growth consistent with its prior track
record of bolt-on acquisitions, and renewal rights transactions.
THG's underwriting performance improved modestly in 2019, primarily
due to an expense ratio improvement from growth leverage.
Catastrophes were lower in 2019 at 3.8 percentage points of earned
premiums, compared with 5.2 points in 2018. Underlying
accident-year (AY) loss ratios excluding catastrophes, deteriorated
modestly to 60.2% in 2019, from 58.8% the prior year, primarily due
to elevated property loss experience in several lines such as
homeowners' insurance and certain specialty businesses.
In 2019, THG's combined ratio of 95.6%, down from 96.1% the prior
year, produced an operating ROE of 11.3%. Under the pro forma
rating case the combined ratio increases to 98.5% and the operating
ROE declines to 8.1%. GAAP EBIT coverage was 12.1x in 2019 and
deteriorates to 8.7x in the pro forma rating case. Fitch believes
THG's overall underwriting performance is sustainable at current
levels with underwriting and expense discipline as the current
business portfolio matures. The expense ratio is likely to
stabilize at 31.6% in 2019, as savings initiatives and growth
leverage are offset by continued investments to keep pace with
technology advances.
Additional balance sheet strengths include THG's high-quality,
liquid investment portfolio that provides ample liquidity to cover
its insurance reserves. Fitch believes THG's reserves are
sufficient following reserve strengthening in 2016, primarily in
commercial lines. The risky asset ratio of 40% at YE 2019 was lower
than industry average.
RATING SENSITIVITIES
The ratings remain sensitive to any material change in Fitch's
Rating Case assumptions with respect the coronavirus pandemic.
Periodic updates to its assumptions are possible given the rapid
pace of changes in government actions in response to the pandemic,
and the pace with which new information is available on the medical
aspects of the outbreak.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A material adverse change in Fitch's Ratings Assumptions with
respect coronavirus impact;
-- A shift in either Fitch's assumed pro forma, or THG's actual
underwriting to losses;
-- A shift in either Fitch's assumed pro forma, or THG's actual
loss reserves to material adverse development;
-- An increase in either Fitch's assumed pro forma, or THG's
actual run-rate FLR to 28% or greater;
-- An increase in either Fitch's assumed pro forma, or THG's
actual run-rate GAAP operating interest coverage of 5x or lower.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A positive rating action is prefaced by Fitch's ability to
reliably forecast the impact of the coronavirus pandemic on the
financial profile of both the non-life sector in the U.S. of the
insurance industry and THG;
-- An improvement in both Fitch's assumed pro forma and the
company's actual GAAP net leverage (premiums written plus total
liabilities less debt less reinsurance recoverable divided by
shareholders' equity) of 3.8x or better;
-- Sustaining both Fitch's assumed pro forma and the company's
actual Prism score of 'Strong';
-- Sustaining both Fitch's assumed pro forma and the company's
actual GAAP operating interest coverage at 10x or better.
Stress Case Sensitivity Analysis
-- Fitch's Stress Case assumes a 60% stock market decline,
two-year cumulative high yield bond default rate of 22%, high yield
bond spreads widening by 600 bps and more prolonged declines in
government rates, heightened pressure on capital markets access, an
infection rate from coronavirus of 15% and mortality rate of 0.75%,
an adverse non-life industry-level loss ratio impact of seven
percentage points for claims from coronavirus partially offset by a
favorable two points for personal and commercial auto.
-- The implied rating impact under the Stress Case would not be
greater than a one notch downgrade.
BEST/WORST CASE RATING SCENARIO
Ratings of Financial Institutions 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.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).
Citizens Insurance Company of America
- Ins Fin Str A; Affirmed
Hanover Insurance Company (The)
- Ins Fin Str A; Affirmed
The Hanover Insurance Group, Inc.
- LT IDR BBB+; Affirmed
- Senior unsecured; LT BBB; Affirmed
- Subordinated; LT BB+; Affirmed
- Junior subordinated; LT BB+; Affirmed
HARRAH WHITES: Gets Final Approval to Use Cash Collateral
---------------------------------------------------------
Judge Barbara Ellis-Monro authorized Harrah Whites Meadows Nursing
LLC to use cash collateral on a final basis, pursuant to the
budget. The final budget provided for $1,768,185 in total expenses
over a 16-week period from March 9, 2020 to June 22, 2020, a copy
of which is available free of charge at https://is.gd/7MBOrv from
PacerMonitor.com.
Pursuant to the final order:
* Southern Bank is granted, retroactive to the Petition Date,
valid and perfected, security interests in, and liens upon all
present and after-acquired property of the Debtor of the same
character, nature type, and scope as the prepetition liens held by
Southern Bank, and
* Southern is granted allowed super priority claims against the
Debtor's estate pursuant to Section 507(b) of the Bankruptcy Code
to the extent the replacement liens and any adequate protection
payments are insufficient to provide adequate protection for
Southern Bank.
The Debtor and other affiliate companies are jointly and severally
liable to Southern Bank for approximately $1,749,807.79 in the
aggregate with respect to a certain pre-petition loan agreement
secured by valid, enforceable, duly perfected liens and security
interests in all or substantially all of the Debtor's assets.
About Harrah Whites Meadows Nursing
Harrah Whites Meadows Nursing LLC owns and operates a skilled
nursing facility in Harrah, Okla.
Harrah Whites Meadows Nursing LLC filed its voluntary petition
initiating this Chapter 11 case (Bankr. N.D. Ga. Case No. 19-65376)
on Sept. 27, 2019. In the petition signed by Christopher F.
Brogdon, manager, the Debtor was estimated to have $100,000 to
$500,000 in assets and $1 million to $10 million in liabilities.
The case has been assigned to Judge Barbara Ellis-Monro.
The Debtor hired Theodore N. Stapleton P.C. as its legal counsel.
Nancy J. Gargula, U.S. trustee for Region 21, appointed Tony
Fullbright to serve as patient care ombudsman in the Debtor's case.
HAWAII MOTORSPORTS: Has Interim, Final OK on Wells Fargo Agreement
------------------------------------------------------------------
Hawaii Motorsports LLC sought the approval of the Bankruptcy Court
to continue, post-petition, the terms of the inventory financing
agreement the Debtor entered into with Wells Fargo Commercial
Distribution Finance, LLC before the Petition Date.
Pursuant to the inventory financing agreement, Wells Fargo extends
credit to the Debtor for the purchase of inventory from Wells
Fargo-approved vendors, subject to a first priority security
interest granted to Wells Fargo in the financed inventory as well
as in substantially all of the DIP's other personal property. As
of the Petition Date, the Debtor owed Wells Fargo $586,1 58.57
under said agreement.
Judge Benjamin P. Hursh granted the Debtor's request on an interim
basis and on a final basis.
Blanket lienholders Hawaii State Federal Credit Union and
Automotive Finance Corporation, including Wells Fargo Commercial
Distribution Finance, LLC, will be granted replacement liens on the
excess value of the PMSI (purchase money security liens) floored
inventory to the extent the value exceeds the value of the PMSI
liens.
About Hawaii Motorsports
Hawaii Motorsports LLC is a motorcycle dealer in Kahului, Hawaii.
Hawaii Motorsports LLC, based in Kahului, HI, filed a Chapter 11
petition (Bankr. D. Mont. Case No. 20-10006) on Jan. 22, 2020. In
the petition signed by Barry Usher, manager, the Debtor was
estimated to have $500,000 to $1 million in assets and $1 million
to $10 million in liabilities. The Hon. Benjamin P. Hursh is the
presiding judge. James A. Patten, Esq., at Patten Peterman
Bekkedahl & Green, PLLC, serves as bankruptcy counsel to the
Debtor.
HAWAII MOTORSPORTS: May Continue Borrowing from Insiders
--------------------------------------------------------
Hawaii Motorsports LLC sought permission from the Bankruptcy Court
for the District of Montana to obtain credit from Brian Cebull and
Barry Usher. Mr. Cebull is the sole member of Transpacific
Holdings, LLC, which is a member of the Debtor, along with Mr.
Usher.
Messrs. Cebull and Usher have agree to provide post-petition credit
by allowing the Debtor to continue using their personal revolving
line of credit at First Interstate Bank, without interest. The
line of credit has an available balance of approximately $60,000 as
of the Petition Date.
Judge Benjamin P. Hursh approved the motion on an interim basis,
and thereafter, on a final basis.
Pursuant to the final order, the Court ruled that credit obtained
from Messrs. Cebull and Usher shall not exceed, at any single point
in time, the sum of $60,000 and that no interest will be charged on
the credit. The unpaid amount will be accorded administrative
priority status, subject to a carve-out for the allowed
professional fees in the Debtor's case and costs of administration
should the Debtor's case be converted to a case under Chapter 7.
About Hawaii Motorsports
Hawaii Motorsports LLC is a motorcycle dealer in Kahului, Hawaii.
Hawaii Motorsports, based in Kahului, HI, filed a Chapter 11
petition (Bankr. D. Mont. Case No. 20-10006) on Jan. 22, 2020. In
the petition signed by Barry Usher, manager, the Debtor was
estimated to have $500,000 to $1 million in assets and $1 million
to $10 million in liabilities. The Hon. Benjamin P. Hursh is the
presiding judge. James A. Patten, Esq., at Patten Peterman
Bekkedahl & Green, PLLC, serves as bankruptcy counsel to the
Debtor.
HELLER EHRMAN: Paravue's Claim Barred by Statute of Limitations
---------------------------------------------------------------
On remand from the Court of Appeals for the Ninth Circuit,
Bankruptcy Judge Hannah L. Blumenstiel disallows Paravue
Corporation's claim against Debtor Heller Ehrman LLP in the
bankruptcy case captioned In re: HELLER EHRMAN LLP, Chapter 11,
Debtor, Case No. 08-32514 DM (Bankr. N.D. Cal.).
On May 4, 2018, the Court of Appeals for the Ninth Circuit issued
an amended decision that reversed the court's order granting
summary judgment in favor of Debtor Heller Ehrman LLP and
disallowing Paravue Corporation's proof of claim no. 1019. The
Ninth Circuit concluded that genuine issues of material fact
existed regarding when the attorney-client relationship between
Heller and Paravue terminated, which dictated whether the Claim was
barred by the statute of limitations. Following remand, the court
conducted a trial on Dec. 9 and 10, 2019, and thereafter took the
matter under advisement.
On July 14, 2008, Paravue and Heller executed an agreement to toll
the statute of limitations governing Paravue's claims against
Heller. The Tolling Agreement expressly excluded claims time-barred
as of the July 14, 2008 effective date.
On Dec. 28, 2008, Heller filed a Chapter 11 petition in this court.
On April 27, 2009, Paravue filed the Claim in which it asserted an
unsecured nonpriority claim in the amount of $20 million based on
Heller's alleged malpractice in representing Paravue in matters
pertaining to its relationship with Acuity Ventures.
On Sept. 6, 2011, Heller objected to the Claim, asserting (among
other things) that it was time-barred. After years of discovery and
motion practice, on March 28, 2014, Heller filed a motion for
summary judgment with respect to the Claim Objection. Paravue
opposed the Motion for Summary Judgment.
On May 28, 2014, the court held a hearing on the Motion for Summary
Judgment and took the matter under advisement. On July 18, 2014,
the court entered the Summary Judgment Order granting the Motion
for Summary Judgment and disallowing the Claim.
Paravue appealed the Summary Judgment Order to the District Court
for the Northern District of California. On Oct. 7, 2015, the
District Court affirmed the Summary Judgment Order. Paravue
appealed to the Ninth Circuit who reversed the Summary Judgment
Order.
The parties agree that the issue before the court is whether the
attorney-client relationship between Heller and Paravue ended on or
before July 11, 2007. Because the Tolling Agreement was executed on
Monday, July 14, 2008, the parties agree that if the one-year
statute of limitations pertaining to Paravue's claims began to run
on July 12 or 13, 2007, such claims would be timely if brought on
July 14, 2008. Thus, July 11, 2007 is the critical date for
purposes of this case. Heller argues that the attorney-client
relationship ended on or before July 11, 2007 and the Claim is
time-barred; Paravue, in turn, argues that the attorney-client
relationship did not end until at least July 17, 2007, if not
later.
The continuous representation rule is thus "not triggered by the
mere existence of an attorney-client relationship." And, for
purposes of the statute of limitations, termination of the
attorney-client relationship "does not depend on a formal
termination like withdrawing as counsel of record." The
representation may end upon express notification to the client or
may be inferred from the circumstances where the attorney remains
silent. Similarly, where a client asks another attorney to serve as
replacement counsel, the representation terminates for purposes of
the statute of limitations. Transitional activities, such as
transferring files, do not constitute representation for purposes
of tolling.
The Court notes that the Claim is premised on Heller's alleged
malpractice in connection with Paravue's relationship with Acuity.
The question is whether Paravue actually or reasonably should have
believed that Heller continued to represent its interests vis-a-vis
Acuity after July 11, 2007. The facts established at trial prove
that the answer is "no."
According to the Court, the facts established at trial prove
conclusively that Heller provided express notification of its
intention to withdraw as counsel on July 6 and July 9, 2007, and
stopped providing Paravue with legal services no later than July
11, 2007. At that point, Paravue could not have reasonably expected
Heller to perform legal services on its behalf, in the Acuity
Action or otherwise. Rather, Paravue could (and did) look to
attorneys Jack Russo and Michael Ackerman for legal assistance.
Accordingly, the Court concludes that the statute of limitations
bars the Claim asserted against Heller and the Claim is
disallowed.
A copy of the Court's Memorandum Decision dated March 2, 2020 is
available at https://bit.ly/2Uz64TE from Leagle.com.
Heller Ehrman LLP, Debtor, represented by Joel D. Adler --
jadler@marlowadler.com -- Adler Law Firm, Henry I. Bornstein --
hbornstein@bzbm.com -- Bartko, Zankel, Bunzel & Miller, Kenneth H.
Brown -- kbrown@pszjlaw.com -- Pachulski, Stang, Ziehl, Young and
Jones, Ellen Ruth Fenichel -- efenichel@vallemakoff.com -- Valle
Makoff LLP, John D. Fiero -- jfiero@pszjlaw.com -- Pachulski,
Stang, Ziehl, and Jones, Gail S. Greenwood --
ggreenwood@pszjlaw.com -- Pachulski Stang Ziehl and Jones, J.
Thomas Hannan , Lovitt and Hannan, Inc., Jonathan Hughes , Arnold &
Porter LLP, Ivan L. Kallick , Manatt, Phelps and Phillips, Teddy M.
Kapur -- tkapur@pszjlaw.com --Pachulski, Stang Ziehl and Jones LLP,
Jessica MacGregor , Long and Levit LLP, Miriam Manning , Pachulski
Stang Ziehl and Jones, Mario R. Nicholas , Stoel Rives LLP, Pamela
Phillips , Arnold & Porter LLP, Jason E. Rios , Felderstein,
Fitzgerald et al, Keith J. Shapiro , Greenberg Traurig, LLP,
Christopher D. Sullivan , Diamond McCarthy LLP & Thomas A.
Willoughby , Felderstein, Fitzgerald et al.
Office of the U.S. Trustee / SF, U.S. Trustee, represented by
Trevor Ross Fehr , Office of the U.S. Trustee & Thomas A.
Willoughby , Felderstein, Fitzgerald et al.
Official Committee of Unsecured Creditors, Creditor Committee,
represented by Melissa Lor , Schnader Harrison Segal and Lewis LLP,
Jason E. Rios , Felderstein, Fitzgerald et al, Christopher D.
Sullivan , Diamond McCarthy LLP & Thomas A. Willoughby --
twilloughby@ffwplaw.com -- Felderstein, Fitzgerald et al.
About Heller Ehrman
Headquartered in San Francisco, California, Heller Ehrman, LLP --
http://www.hewm.com/-- was an international law firm of more than
730 attorneys in 15 offices in the United States, Europe, and Asia.
Heller Ehrman filed a voluntary Chapter 11 petition (Bankr. N.D.
Cal., Case No. 08-32514) on Dec. 28, 2008. Members of the firm's
dissolution committee led by Peter J. Benvenutti approved a plan
dated Sept. 26, 2008, to dissolve the firm.
According to reports, the firm had roughly $63 million in assets
and 54 employees at the time of its filing. In its bankruptcy
petition, the firm estimated assets and debt at $50 million to $100
million as of the Petition Date.
The Hon. Dennis Montali presides over the case.
Pachulski Stang Ziehl & Jones LLP assisted the Debtor in its
restructuring effort. The Official Committee of Unsecured
Creditors is represented by Felderstein Fitzgerald Willoughby &
Pascuzzi LLP.
On Aug. 13, 2010, the Court confirmed Heller's Joint Plan of
Liquidation.
HOOPERS CONCRETE: Exclusivity Period Extended Until May 23
----------------------------------------------------------
Judge Caryl Delano of the U.S. Bankruptcy Court for the Middle
District of Florida extended to May 23 the deadline for Hoopers
Concrete & Block, LLC to file its Chapter 11 plan and disclosure
statement.
Judge Delano also extended to May 23 the period during which only
Hoopers Concrete can file a plan. The company has the exclusive
right to solicit votes until the conclusion of the hearing on
confirmation of the plan.
About Hoopers Concrete & Block
Hoopers Concrete & Block, LLC, a Florida limited liability company
established in 2014, provides services and specialized concrete
products and materials for general and specialized construction
projects, including light commercial, gas stations, retail stores,
high-rise buildings, and light residential.
Hoopers Concrete & Block sought Chapter 11 protection (Bankr. M.D.
Fla. Case No. 19-11198) on Nov. 25, 2019. Judge Caryl E. Delano
oversees the case. Stichter, Riedel, Blain & Postler, PA, is the
Debtor's counsel.
HUSKY ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB
--------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Husky Energy Incorporated to BB from BBB-.
Husky Energy Inc. is a Canadian integrated energy company,
headquartered in Calgary, Alberta. Its common shares are publicly
traded on the Toronto Stock Exchange under the symbol HSE.
IBIO INC: Eastern Capital Has 28.7% Stake as of March 19
--------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Eastern Capital Limited disclosed that as of March 19,
2020 it beneficially owns 37,382,734 shares of common stock of
iBio, Inc., representing 28.7% of the Issuer's outstanding Common
Stock. Eastern Capital Limited has shared voting and dispositive
power of the shares it beneficially owns with its parent, Portfolio
Services Ltd. and Kenneth B. Dart.
Portfolio Services Ltd., as the owner of all of the outstanding
shares of Eastern Capital Limited, indirectly beneficially owns
37,382,734 shares of the Issuer's Common stock, representing 28.7%
of the Issuer's outstanding Common Stock.
As a result of Kenneth B. Dart's ownership of all of the
outstanding shares of Portfolio Services Ltd., he indirectly
beneficially owns 37,382,734 shares of the Issuer's Common Stock,
representing 28.7% of the Issuer's outstanding Common Stock.
A full-text copy of the regulatory filing is available for free
at:
https://is.gd/7Q5ynO
About iBio Inc.
iBio, Inc. -- http://www.ibioinc.com/-- is a full-service
plant-based expression biologics CDMO equipped to deliver
pre-clinical development through regulatory approval, commercial
product launch and on-going commercial phase requirements. iBio's
FastPharming expression system, iBio's proprietary approach to
plant-made pharmaceutical (PMP) production, can produce a range of
recombinant products including monoclonal antibodies, antigens for
subunit vaccine design, lysosomal enzymes, virus-like particles
(VLP), blood factors and cytokines, scaffolds, maturogens and
materials for 3D bio-printing and bio-fabrication,
biopharmaceutical intermediates and others, as well as create and
produce proprietary derivatives of pre-existing products with
improved properties.
iBio reported a net loss attributable to the Company of $17.85
million for the year ended June 30, 2019, compared to a net loss
attributable to the Company of $16.36 million for the year ended
June 30, 2018. As of Dec. 31, 2019, iBio had $36.38 million in
total assets, $36.90 million in total liabilities, and a total
deficiency of $520,000.
CohnReznick LLP, in Roseland, New Jersey, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated Aug. 26, 2019, citing that the Company has incurred net
losses and negative cash flows from operating activities for the
years ended June 30, 2019 and 2018 and has an accumulated deficit
as of June 30, 2019. These matters, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
IBIO INC: Expands COVID-19 Vaccine Collaboration to Include IDRI
----------------------------------------------------------------
iBio, Inc. had signed two Master Services Agreements and a
Memorandum of Understanding with the Infectious Disease Research
Institute in support of iBio's SARS-CoV-2 Virus-Like Particle
vaccine development.
Under the MSAs, IDRI will support pre-clinical development and
provide clinical trial oversight, while iBio will provide process
development and manufacturing services to IDRI, as needed.
Additionally, the MoU calls for iBio and IDRI to establish a
separate, additional agreement within the next 60 days if the
Company opts to include one of IDRI's novel adjuvants in the
COVID-19 vaccine development program ("IBIO-200"). The MSAs and
the MoU integrate IDRI into iBio's collaboration with the Texas A&M
University System to create a strong partnership that brings deep
experience and advanced technologies and capabilities to the task
of moving IBIO-200 into the clinic.
"We are delighted to have IDRI contribute its deep understanding of
infectious diseases and vaccine development expertise to the team,"
said Tom Isett, co-chairman & chief executive officer of iBio. "We
are also looking forward to evaluating the novel adjuvants in
IDRI's portfolio that may deliver even greater immunostimulatory
effects. A more potent antigen-adjuvant combination would further
increase our projected manufacturing capacity for production of a
vaccine for COVID-19 disease."
"We are excited to be a partner in the development of IBIO-200,"
said Corey Casper, M.D., MPH, chief executive officer of the IDRI
and Clinical Professor of Medicine and Global Health at the
University of Washington. "Combining iBio's VLP antigen with an
IDRI adjuvant provides for promising safety and efficacy
characteristics, and importantly, the ready ability to scale-up
manufacturing to help meet the projected global demand for a
suitable vaccine."
About iBio Inc.
iBio, Inc. -- http://www.ibioinc.com-- is a full-service
plant-based expression biologics CDMO equipped to deliver
pre-clinical development through regulatory approval, commercial
product launch and on-going commercial phase requirements. iBio's
FastPharming expression system, iBio's proprietary approach to
plant-made pharmaceutical (PMP) production, can produce a range of
recombinant products including monoclonal antibodies, antigens for
subunit vaccine design, lysosomal enzymes, virus-like particles
(VLP), blood factors and cytokines, scaffolds, maturogens and
materials for 3D bio-printing and bio-fabrication,
biopharmaceutical intermediates and others, as well as create and
produce proprietary derivatives of pre-existing products with
improved properties.
iBio reported a net loss attributable to the Company of $17.85
million for the year ended June 30, 2019, compared to a net loss
attributable to the Company of $16.36 million for the year ended
June 30, 2018. As of Dec. 31, 2019, iBio had $36.38 million in
total assets, $36.90 million in total liabilities, and a total
deficiency of $520,000.
CohnReznick LLP, in Roseland, New Jersey, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated Aug. 26, 2019, citing that the Company has incurred net
losses and negative cash flows from operating activities for the
years ended June 30, 2019 and 2018 and has an accumulated deficit
as of June 30, 2019. These matters, among others, raise
substantial doubt about the Company's ability to continue as a
going concern.
ICONIX BRAND: Signs Amendment to Cortland Credit Agreement
----------------------------------------------------------
Iconix Brand Group, Inc., through IBG Borrower LLC, the Company's
wholly-owned direct subsidiary, entered into a fifth amendment and
waiver to its credit agreement with Cortland Capital Market
Services LLC as administrative agent and collateral agent, and the
lenders party thereto from time to time to, among other things: (i)
waive an event of default under the Credit Facility due to the
Company's receipt of a going concern qualified audit opinion and
(ii) modify the asset sale prepayment obligation to obligate the
Company to pay 75% of the net proceeds from one or more asset sales
in any fiscal year to the extent the aggregate amount of asset sale
net proceeds exceeds $5.0 million.
About Iconix Brand
Iconix Brand Group, Inc. owns, licenses and markets a portfolio of
consumer brands including: CANDIE'S, BONGO, JOE BOXER, RAMPAGE,
MUDD, MOSSIMO, LONDON FOG, OCEAN PACIFIC, DANSKIN, ROCAWEAR,
CANNON, ROYAL VELVET, FIELDCREST, CHARISMA, STARTER, WAVERLY, ZOO
YORK, UMBRO, LEE COOPER, ECKO UNLTD., MARC ECKO, ARTFUL DODGER, and
HYDRAULIC. In addition, Iconix owns interests in the MATERIAL
GIRL, ED HARDY, TRUTH OR DARE, MODERN AMUSEMENT, BUFFALO and PONY
brands. The Company licenses its brands to a network of retailers
and manufacturers. Through its in-house business development,
merchandising, advertising and public relations departments, Iconix
manages its brands to drive greater consumer awareness and brand
loyalty.
Iconix reported a net loss attributable to the company of $111.51
million for the year ended Dec. 31, 2019, compared to a net loss
attributable to the company of $100.52 million for the year ended
Dec. 31, 2018. As of Dec. 31, 2019, the Company had $506.06
million in total assets, $727.96 million in total liabilities, and
$34.46 million in redeemable non-controlling interests, and a total
stockholders' deficit of $256.36 million.
BDO USA, LLP, in New York, New York, the Company's auditor since
1998, issued a "going concern" qualification in its report dated
March 30, 2020 citing that the Company has suffered recurring
losses and has certain debt agreements which require compliance
with financial covenants. The COVID 19 pandemic is expected to
have a material adverse effect on the Company's results of
operation, cash flows and liquidity, including compliance with
future debt covenants. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
INTERNATIONAL FOOD: Seeks to Hire Modesto Bigas as Counsel
----------------------------------------------------------
International Food Service Purchasing Group, Inc., seeks authority
from the U.S. Bankruptcy Court for the District of Puerto Rico to
employ Modesto Bigas Law Office, as counsel to the Debtor.
International Food requires Modesto Bigas to represent and provide
legal services to the Debtor in the Chapter 11 bankruptcy
proceedings.
Modesto Bigas will be paid at the hourly rate of $250. Modesto
Bigas will be paid a retainer in the amount of $10,000.
Modesto Bigas will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Alexandra Bigas Valedon, partner of Modesto Bigas Law Office,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtor and its estates.
Modesto Bigas can be reached at:
Alexandra Bigas Valedon, Esq.
MODESTO BIGAS LAW OFFICE
PO Box 7462
Ponce, PR 00732-7462
Tel: (787) 844-1444
E-mail: alexandra.bigas@gmail.com
About International Food Service
Purchasing Group, Inc.
International Food Service Purchasing Group Inc. is a non-profit
organization that provides supply chain analysis and management
services for the restaurant industry.
International Food Service Purchasing Group Inc., based in San
Juan, PR, filed a Chapter 11 petition (Bankr. D.P.R. Case No.
20-01458) on March 20, 2020. In the petition signed by Charles A
Maxwell, president, the Debtor was estimated to have $1 million to
$10 million in both assets and liabilities. Alexandra Bigas
Valedon, Esq., at Modesto Bigas Law Office, serves as bankruptcy
counsel to the Debtor.
INTERNATIONAL GAME: Egan-Jones Lowers Sr. Unsecured Ratings to B
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by International Game Technology to B from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
International Game Technology PLC (IGT), formerly Gtech S.p.A. and
Lottomatica S.p.A., is a multinational gambling company that
produces slot machines and other gambling technology. The company
is headquartered in London, with major offices in Rome, Providence,
Rhode Island, and Las Vegas.
ITT INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
-------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by ITT Inc., formerly ITT Corporation to BB+ from BBB-.
ITT Inc., formerly ITT Corporation, is an American worldwide
manufacturing company based in White Plains, New York. The company
produces specialty components for the aerospace, transportation,
energy and industrial markets.
IXS HOLDINGS: S&P Affirms 'B' ICR; Ratings on CreditWatch Negative
------------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on IXS
Holdings Inc.
IXS' exposure to the original equipment auto market (accounting for
over 75% of sales), aftermarket exposure (about 20%), and elevated
leverage following its recent refinancing in February 2020 renders
it exposed to the ongoing coronavirus pandemic. Although there
continues to be significant uncertainty around the length of the
current pandemic, IXS' operating performance will be negatively
affected over the next few months or longer as original equipment
manufacturers (OEMs) keep their production shuttered.
"Additionally, we believe demand for the discretionary aftermarket
spray-in bedliners will fall significantly in the near term as
people stay home and focus on their nondiscretionary needs. We now
expect IXS' credit metrics will weaken materially from our prior
assumptions of debt to EBITDA of around 5x in 2020, improving to
4.0x-4.5x in 2021, and free operating cash flow to debt of 6%-10%."
The pandemic's ultimate effect on IXS' cash flows depends on the
timing of recovery toward full production, the extent of pent-up
demand in the second half of 2020, and the company's margin profile
once production does resume," S&P said.
CreditWatch
The CreditWatch placement indicates the increased risk that
production shutdowns could extend beyond S&P's current base case
and that demand for light vehicles might not recover in line with
its base-case post the pandemic. S&P could lower the ratings by one
notch if it appears that IXS' debt to EBITDA will remain above 6x
in 2021, or free operating cash flow (FOCF) to debt of below 3% in
2021. Although less likely, S&P could also lower the rating if
liquidity became a greater concern.
JILL ACQUISITION: Moody's Cuts CFR to Caa3, Outlook Negative
------------------------------------------------------------
Moody's Investors Service downgraded Jill Acquisition LLC's
corporate family rating to Caa3 from Caa1, probability of default
rating to Caa3-PD from Caa1-PD, and senior secured first lien term
loan rating to Caa3 from Caa1. The SGL-3 speculative grade
liquidity rating remains unchanged and the outlook is negative.
The CFR, PDR and term loan downgrades reflect Moody's view that
J.Jill faces a heightened probability of debt restructuring due to
significant COVID-19-driven earnings declines that would hinder its
ability to address the May 2022 term loan maturity in a timely and
economical manner.
Moody's took the following rating actions for Jill Acquisition
LLC:
Corporate family rating, downgraded to Caa3 from Caa1
Probability of default rating, downgraded to Caa3-PD from Caa1-PD
Senior secured bank credit facility due 2022, downgraded to Caa3
(LGD3) from Caa1 (LGD3)
Outlook, remains negative
RATINGS RATIONALE
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The non-food
retail sector has been one of the sectors most significantly
affected by the shock given its sensitivity to consumer demand and
sentiment. More specifically, the weaknesses in J.Jill's credit
profile, including its exposure to widespread store closures and US
discretionary consumer spending have left it vulnerable to these
unprecedented operating conditions, and J.Jill remains vulnerable
to the outbreak continuing to spread. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
Its action reflects the impact on J.Jill's of the breadth and
severity of the shock, and the broad deterioration in credit
quality it has triggered.
The Caa3 CFR reflects Moody's view that J.Jill faces a heightened
probability of debt restructuring as a result of its near-dated
debt maturities and significant expected earnings declines over the
next 12 months. Following product, marketing and inventory
management missteps in 2019 that led to markdowns, the company had
focused on a 2020 turnaround. However, broad coronavirus-driven
disruption across the apparel sector places further pressure on
J.Jill's operating results and will challenge its ability to turn
around operations and make necessary digital and omnichannel
investments. Moody's expects leverage to increase to unsustainably
high levels in 2020 from 4.5 times as of February 1, 2020
(Moody's-adjusted, pro-forma for the subsequently reported revolver
borrowings). The credit profile also incorporates J.Jill's exposure
to fashion risk, growing competition in the women's apparel sector,
and margin pressure from e-commerce investments. Further, the
rating reflects governance considerations, specifically the
aggressive financial strategies associated with majority ownership
by private equity sponsor Towerbrook Partners, including the
special dividend paid in early 2019. In addition, as a retailer,
J.Jill needs to make ongoing investments in social and
environmental factors, including responsible sourcing, product and
supply sustainability, privacy and data protection.
J.Jill's rating is supported by the company's recognized brand and
loyal customer base. The company also has a relatively high
e-commerce penetration at about 40% of sales, mitigating its
reliance on physical store locations.
The SGL-3 rating reflects Moody's expectations that J.Jill will
have adequate liquidity over the next 12 months, but will weaken
from current level due to store closures. As of February 1, 2020
and pro-forma for the subsequently reported ABL revolver borrowing,
the company had $53 million of balance sheet cash and little to no
remaining revolver availability. Cash balances will provide J.Jill
with sufficient liquidity to operate the business through a limited
period of store closures, assuming significant cost cuts and
deferrals. However, Moody's expects the company to have negative
free cash flow for the full year 2020, which will reduce its cash
balance and constrain liquidity in 2021. Based on Moody's
projections for steep EBITDA declines, J.Jill will not meet its
covenant test starting in Q1 2020.
The negative outlook reflects the risk of greater than anticipated
liquidity pressure as a result of extended store closures or a
steeper than expected decline in demand once stores reopen.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if liquidity weakens or recovery
prospects deteriorate.
The ratings could be upgraded if the company addresses its capital
structure and maturities and improves its operating performance.
Headquartered in Quincy, Massachusetts, Jill Acquisition LLC, a
subsidiary of J.Jill, Inc. (J.Jill, NYSE: Jill), is a retailer of
women's apparel, footwear and accessories sold through its
e-commerce website, catalogs and 287 retail stores. The company is
publicly traded, but majority-owned by TowerBrook Capital Partners
L.P. J.Jill generated revenues of about $691 million for the fiscal
year ended February 1, 2020.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
K-MAC HOLDINGS: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed all of its ratings on K-Mac Holdings Corp., including its
'B-' issuer credit rating.
"We expect significant same-store sales declines as consumers
practice social distancing and prepare more meals at home. The
outlook revision reflects our view that current conditions will
significantly pressure K-Mac Holdings Corp.'s operating
performance, as it operates drive-thru and delivery service only at
its Taco Bell locations." Its six Golden Corral restaurants are all
temporarily closed, which adds to the burden," S&P said.
The negative outlook reflects the heightened uncertainty regarding
the duration of the COVID-19 pandemic and its impact on consumer
behavior and K-Mac's financial condition. Prolonged crowd avoidance
and social distancing mandates beyond S&P's expectation or mandated
restaurant closures could lead it to believe the company's capital
structure is no longer sustainable.
"We could lower the rating if we believe K-Mac's capital structure
is unsustainable as a result of significantly deteriorated
operating performance and pressured ability to service debt
obligations. This could occur if cash burn is more severe than we
anticipate or if we believe its operations cannot recover from the
setback caused by the pandemic," S&P said.
"We could revise our outlook to stable once the operational threats
posed by the pandemic have subsided, if we believe sales and
profitability will rebound to about what they were in fiscal 2019,
with expected sustained positive free operating cash flow and
improving leverage. For a stable outlook, we would also need to
believe that changing consumer behaviors, as a result of the new
recessionary environment or otherwise, will not be detrimental to
K-Mac's profitability," the rating agency said.
L BRANDS: Egan-Jones Lowers Senior Unsecured Ratings to CCC
-----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by L Brands Incorporated to CCC from BB-. EJR also
downgraded the rating on commercial paper issued by the Company to
C from A3.
L Brands, Inc. is an American fashion retailer based in Columbus,
Ohio. Its flagship brands include Victoria's Secret and Bath & Body
Works.
LASALLE GROUP: PCO Files 4th Consolidated Report
------------------------------------------------
Susan N. Goodman, the Patient Care Ombudsman in the Chapter 11
cases of The LaSalle Group, Inc., submits with the U.S. Bankruptcy
Court for the Northern District of Texas her Fourth Interim
Consolidated Report regarding the quality of care at four of the
Debtors' locations: West Houston Memory Care, Cinco Ranch Memory
Care, LLC, Pearland Memory Care, LLC and, Riverstone Memory Care,
LLC.
Since the second reporting cycle, the Riverstone location moved
under new management. The PCO reached out to that location to
confirm that appropriate record transitions had occurred and the
2015. Posting in lieu of personal service on residents had been
removed as of the reported October 2, 2019 effective date.
During the interim reporting cycle, the Cinco Ranch and Pearland
locations moved under new management. The PCO confirmed this move
and has engaged over the phone with the Cinco Ranch and Pearland
Executive Director's after this transition. Other than personal
concerns associated with paid time off accrued under previous
management, the EDs denied staffing and supply concerns.
The ED at the West Houston location resigned in the interim
reporting cycle after expressing bankruptcy-associated frustration
related to delays in the completion of life safety inspections and
associated repairs to renew the facility license that had expired
in the Fall of 2019. Further, management cancelled the thermostat
control software contract without ensuring that all the HVAC units
had direct thermostat controls on the units, leaving some resident
rooms without the ability to independently adjust the room
temperature.
After the ED's departure, management assigned this facility to the
regional operations director as the Interim ED. The PCO has
remained engaged remotely with the Interim ED who has reported
completion of the thermostat installations, the annual life safety
testing and associated extinguisher replacements, and the gas line
inspection. Generator repair was reported as scheduled.
The PCO will remain engaged and file a supplemental report if the
West Houston license renewal lags more than 10 days beyond the
filing of this report. Further, the PCO will attempt to perform an
unscheduled site visit to the West Houston location if a definitive
plan for this location is not announced by the plan confirmation
hearing scheduled for the Pearland and Cinco Ranch locations.
Therefore, the PCO will continue to seek opportunities to bundle
site visit timing with other case travel to Texas.
The PCO can be reached at:
Susan N. Goodman
Pivot Health Law, LLC
P.O. Box 69734
Oro Valley, AZ 85737
Telephone: (520) 744-7061
Facsimile: (520) 575-4075
E-mail: sgoodman@pivothealthaz.com
About The LaSalle Group
The LaSalle Group, Inc., along with certain of its subsidiaries,
designs, develops, builds, and owns interests in memory care
assisted living communities designed specifically for people with
Alzheimer's and other forms of dementia. The communities operate
under the name Autumn Leaves.
LaSalle is a holding company for numerous wholly owned, non-debtor
subsidiaries and affiliates. It directly and indirectly owns
interests in 40 memory care assisted living communities located in
Texas, Illinois, Georgia, Florida, Kansas, Missouri, Oklahoma,
South Carolina, and Wisconsin.
LaSalle and its subsidiaries sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 19-31484) on
May 2, 2019. At the time of the filing, the Debtors estimated
assets of between $10 million and $50 million and liabilities of
the same range.
The cases are assigned to Judge Stacey G. Jernigan.
The Debtors tapped Crowe & Dunlevy, P.C. as their legal counsel;
Haynes and Boone, LLP as special counsel; Karen Nicolaou of Harney
Partners Management, LLC as chief restructuring officer; and
Donlin, Recano & Company, Inc. as claims and noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on July 3, 2019. The committee is represented by Drinker
Biddle & Reath LLP.
LBJ HEALTHCARE: PCO Files 19th Interim Report
---------------------------------------------
Tamar Terzian, the successor of Constance Doyle as Patient Care
Ombudsman for LBJ Healthcare Partners, Inc., submits her 19th PCO
report with the U.S. Bankruptcy Court of the Central District of
California.
The PCO finds that all care provided to the patients at the Villa
Luren Resident Home is within the standard of care.
LBJ Healthcare Partners, Inc., owns the Adult Residential Facility
called Villa Luren since 2008 with a capacity of 80 residents. The
primary diagnosis of the residents is psychiatric, such as Bi-Polar
or Schizophrenia, male and female. SSI/Disability is the primary
source of income of LBJ.
The PCO's observation:
-- Three vacancies available;
-- No issues received;
-- No changes of physicians that regularly evaluate the
residents and all medical records;
-- The building overall needs significant repair and
improvement;
-- Two medical physicians come each month as does the
Psychiatrist;
-- A Psychologist visits weekly;
-- Podiatry visits every 3 months, unless called, as does all
the mentioned professionals; and
-- Optometry and Dental services are off campus.
Some residents/clients require nursing services for things as blood
pressure and/or glucose checking. The facility is able to provide
this services, and have nurses come twice a day for some clients. A
medical or nursing professional is required to perform the task and
set or follow medial orders.
The Department of Mental Health visits the facility each week to
discuss each case. The Department's primary concerns for each
patients include:
-- medical compliance;
-- behavioral concerns
-- any incidents related to the patient; and
-- any need for hospitalization.
The maintenance issues of the facilities have been completed in
terms of replacing the roof. The Debtor now intends to slowly paint
the interior of the facility.
The PCO will continue to monitor and is available to respond to any
concerns or questions of the Court or interested party.
The PCO can be reached at:
Tamar Terzian, Esq.
Terzian Law Group,
A Professional Corporation
1122 E. Green Street
Pasadena, CA 91106
Telephone: (818) 242-1100
Facsimile: (818) 242-1012
Email: tamar@terzlaw.com
About LBJ Healthcare Partners
Headquartered in Whittier, Calif., LBJ Healthcare Partners Inc.,
formerly doing business as Bayshore Villa Healthcare Partners,
Inc., filed for Chapter 11 bankruptcy protection (Bankr. C.D. Cal.
Case No. 16-15197) on April 21, 2016, disclosing $49,370 in assets
and $1.27 million in liabilities. The petition was signed by Brian
Buenviaje, president and CEO. Judge Vincent P. Zurzolo presides
over the case.
Robert M. Aronson, Esq., at the Law Office of Robert M. Aronson,
serves as the Debtor's bankruptcy counsel.
Constance Doyle was appointed patient care ombudsman for the
Debtor. She was later replaced by Tamar Terzian on February 21,
2018.
LENNAR CORP: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
-----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Lennar Corporation to BB+ from BBB-.
Lennar Corporation is home construction and real estate company
based in Miami, Florida. In 2017, the company was the largest home
construction company in the United States after its purchase of
CalAtlantic Homes.
LEVEL 3 HOMES: Hires Profound Financial as Accountant
-----------------------------------------------------
Level 3 Homes & Design, LLC, and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of Oregon
to employ Profound Financial, PLLC, as accountant and bookkeeper to
the Debtors.
Level 3 Homes requires Profound Financial to:
(1) coordinate and manage Debtors' monthly payroll;
(2) prepare and file payroll tax returns with taxing
authorities;
(3) manage payment of employees and submission of tax
withholding payments to taxing authorities;
(4) handle bookkeeping and record keeping services for all
income and expenses;
(5) prepare monthly operating reports, including additional
detailed reports requested by the United States Trustee;
(6) review the Debtors' pre-petition bookkeeping records and
correct any erroneous bookkeeping entries therein; and
(7) prepare the Debtors' 2019 tax returns.
Profound Financial will be paid at these hourly rates:
Dannett Gardiner, Principal/CPA $185
Brian George, CPA $185
Angela Gutierrez, Accounting Manager $85
Sheryl Larena, Accountant $45
Charo Flores, Accountant $45
Ging Calumpang, Clerk $45
Teri Kramer, Clerk $30
Nikki Garcia, Clerk $30
Bernardita Olor, Clerk $30
Profound Financial will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Dannett Gardiner, partner of Profound Financial, PLLC, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Profound Financial can be reached at:
Dannett Gardiner
PROFOUND FINANCIAL, PLLC
7121 W. Bell Road Suite 210
Glendale, AZ 85308
Tel: (623) 566-9821
Fax: (623) 566-9847
About Level 3 Homes & Design
Level 3 Homes & Design, LLC, offers general construction and
manufacturing of tiny homes. The company filed a Chapter 11
petition (Bankr. D. Ore. Case No. 20-30271) on Jan. 27, 2020. In
the petition signed by Jeremy Killian, member, the Debtor was
estimated to have etween $1 million and $10 million in both assets
and liabilities. Motschenbacher & Blattner, LLP, represents the
Debtor.
LIFEPOINT HEALTH: S&P Rates $500MM Senior Secured Notes 'B'
-----------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '1'
recovery rating to acute-care hospital services provider LifePoint
Health Inc.'s proposed $80 million asset-based first-in, last-out
(FILO) term loan. The '1' recovery rating indicates S&P's
expectation for very high (90%-100%; rounded estimate: 95%)
recovery for lenders in the event of a payment default.
At the same time, S&P assigned its 'B' issue-level rating and '3'
recovery rating to the company's $500 million senior secured notes.
The '3' recovery rating indicates S&P's expectation for meaningful
(50%-70%; rounded estimate: 60%) recovery for lenders in the event
of a payment default.
"At the same time, we are lowering our issue-level ratings on all
of the company's secured debt to 'B' and are revising our recovery
ratings to '3' due to the increase in its total amount of senior
secured debt. LifePoint is issuing the notes to provide it with
extra liquidity while it manages through a substantial decline in
patient volume related to the deferral of elective procedures due
to the coronavirus pandemic. While the transaction will slightly
increase the company's leverage, our 'B' issuer credit rating and
stable outlook on LifePoint remain unchanged," S&P said.
"Our rating on LifePoint reflects the company's recently improving
operating performance and cash flows and steadily declining
leverage. While we believe its operating performance will be
negatively affected by the current outbreak, we expect the
company's performance to return to more normal levels over the
intermediate term," the rating agency said.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- LifePoint's capital structure comprises an $800 million
asset-based lending (ABL) facility, an $80 million asset-based FILO
term loan, a $3.715 billion term loan B, $600 million of senior
secured notes maturing in 2027, the $500 million of newly issued
senior secured notes, and $1.425 billion of senior unsecured notes.
S&P assumes the FILO term loan is fully drawn and the ABL facility
is 60% drawn at the time of default.
-- S&P values the company on a going-concern basis using a 6x
multiple of the rating agency's projected emergence EBITDA.
-- S&P estimates that for the company to default its EBITDA would
need to decline significantly, most likely due to an increase in
uncompensated care in combination with a decline in reimbursement
rates.
Simulated default assumptions
-- Simulated year of default: 2023
-- EBITDA at emergence: $691 million
-- EBITDA multiple: 6x
Simplified waterfall
-- Net emergence value (after 5% administrative costs): $3.938
billion
-- Valuation split (obligors/nonobligors): 100%/0%
-- Priority claims: $573 million
-- Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Collateral value available to senior secured lenders: $3.365
billion
-- Senior secured notes: $5.205 billion
-- Recovery expectations: 50%-70% (rounded estimate: 60%)
-- Collateral value available to senior unsecured lenders: $0
-- Senior unsecured debt: $3.334 billion
-- Recovery expectations: 0%-10% (rounded estimate: 0%)
LOBLAW COMPANIES: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Loblaw Companies Limited to BB+ from BBB-.
Loblaw Companies Limited is the largest Canadian food retailer,
encompassing corporate and franchise supermarkets operating under
22 regional and market segment banners, as well as pharmacies,
banking, and apparel.
LSC COMMUNICATIONS: Case Summary & 50 Largest Unsecured Creditors
-----------------------------------------------------------------
Lead Debtor: LSC Communications, Inc.
191 North Wacker Drive, Suite 1400
Chicago, IL 60606
Business Description: LSC Communications, Inc. -- www.lsccom.com
-- is a Delaware corporation established in
2016 with its headquarters located in
Chicago, Illinois. The Debtors offer a
broad range of traditional and digital print
products, print-related services, and office
products. The Company serves the needs of
publishers, merchandisers, and retailers
worldwide, with a service offering that
includes e-services, logistics, warehousing
and fulfillment and supply chain management
services. The Company prints magazines,
catalogs, directories, books, and some
direct mail products, and manufactures
office products, including filing products,
envelopes, note-taking products, binder
products, and forms. The Company has
offices, plants, and other facilities in 28
states, as well as operations in Mexico,
Canada, and the United Kingdom.
Chapter 11
Petition Date: April 13, 2020
Court: United States Bankruptcy Court
Southern District of New York
Twenty-two affiliates that concurrently filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
LSC Communications, Inc. (Lead Debtor) 20-10950
Courier Communications LLC 20-10955
Courier Kendallville, Inc. 20-10957
Courier New Media, Inc. 20-10958
Dover Publications, Inc. 20-10949
LSC Communications Logistics, LLC 20-10962
LSC Communications MM LLC 20-10963
LSC Communications US, LLC 20-10965
LSC International Holdings, Inc. 20-10966
National Publishing Company 20-10967
Publishers Press, LLC 20-10968
Continuum Management Company, LLC 20-10954
Clark Distribution Systems, Inc. 20-10951
Clark Holdings Inc. 20-10952
Clark Worldwide Transportation, Inc. 20-10953
The Clark Group, Inc. 20-10970
Courier Companies, Inc. 20-10956
Courier Publishing, Inc. 20-10959
F.T.C. Transport, Inc. 20-10960
LibreDigital, Inc. 20-10961
LSC Communications Printing Company 20-10964
Research & Education Association, Inc. 20-10969
Debtors'
General
Bankruptcy
Counsel: Andrew G. Dietderich, Esq.
Brian D. Glueckstein, Esq.
Alexa J. Kranzley, Esq.
Christian P. Jensen, Esq.
SULLIVAN & CROMWELL LLP
125 Broad Street
New York, New York 10004
Tel: (212) 558-4000
Fax: (212) 558-3588
E-mail: dietdericha@sullcrom.com
gluecksteinb@sullcrom.com
kranzleya@sullcrom.com
jensenc@sullcrom.com
Debtors'
Bankruptcy
Co-Counsel: YOUNG CONAWAY STARGATT & TAYLOR, LLP
Debtors'
Investment
Banker: EVERCORE GROUP L.L.C.
Debtors'
Restructuring
Advisor: ALIXPARTNERS LLP
Debtors'
Notice,
Claims &
Balloting
Agent: PRIME CLERK LLC
https://cases.primeclerk.com/LSC
Total Assets as of December 31, 2019: $1,649,000,000
Total Debts as of December 31, 2019: $1,721,000,000
The petitions were signed by Andrew B. Coxhead, chief financial
officer.
A copy of LSC Communications' petition is available for free at
PacerMonitor.com at:
https://is.gd/gt0NyZ
Consolidated List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. GCIU-Employer Multi Employer $19,994,440
Retirement Fund Pension Plan
Doug Wisman
2323 Eastlake Avenue East
Seattle, WA 98102
Tel: (206) 753-1066
Fax: (206) 324-5717
Email: DWisman@nwadmin.com
2. Graphic Communications Multi Employer $19,982,651
Conference of the Pension Plan
International
Brotherhood of Teamsters
National Pension Fund
Jimmy Thomos
455 Kehoe Blvd.,
Suite 101
Carol Stream, IL 60188
Tel: (630) 871-7733 Ext. 515
Fax: (630) 871-0666
Email: JThomos@gccibt-npf.org
3. Graphic Arts Industry Multi Employer $10,289,821
Joint Pension Trust Pension Plan
Angela Alvey
25 Louisiana Ave NW
Washington, DC 20001
Angela Alvey
Tel: (202) 508-6670
Fax: (202) 508-6671
Email: aalvey@gciu.org
4. Flint Group Trade Debts $6,403,270
North America Corp
Michael Podd
1333 N Kirk Rd,
Batavia, IL 60510
Tel: 630-587-9238
Email: michael.podd@flintgrp.com
5. EHS Partners, LLC Trade Debts $4,659,675
Kathleen Tallman
747 Third Avenue
2nd Floor
New York, NY 10017
Kathleen Tallman
Tel: 212-691-4800
Email: ktallman@ehspartners.com
6. Nat'l Restaurant Trade Debts $3,009,423
Assoc SOLS
Michael DiLillo
233 S. Wacker Drive
Suite 3600
Chicago, IL 60606-638
Tel: 312-715-5358
Email: mdilillo@restaurant.org
7. James T Mauck SERP $2,500,001-
PO Box 1627 $3,000,000
Skiffles House,
AI-2640 Anguilla
Tel: 63-613-1108
Email: mauckjames@gmail.com
8. National Transportation Trade Debts $2,900,000
Services
Garry Oswald
Vice President, Sales
and Marketing
21838 84th Avenue
Kent, WA 98032
Garry Oswald
Tel: 800-775-8253, ext 206
Email: goswald@targetfmi.com
9. Jeffrey A. Cunix SERP $2,000,001-
9014 N Karlov $2,500,000
Skokie, IL 60076- 1716
Tel: 847-673-7911 (home)
Tel: 847-269-7911 (work)
Email: jeffcunix@gmail.com
10. Charles Winchester SERP $2,000,001-
3320 Sanctuary Point $2,500,000
Fort Myers, FL 33905
Tel: 908-403-6895 (home)
Email: joyce.winchester@gmail.com
11. RR Donnelley Trade Debts $2,073,530
1000 Windham Parkway
Bolingbrook, IL 60490
Brian Lundberg
Tel: 630-226-6433
Email: brian.lundberg@rrd.com
12. Eastman Kodak Company Trade Debts $2,050,992
Jim Continenza
343 State Street
Rochester, NY 14650
Tel: 585-781-5808
Email: jim.continenza@kodak.com
13. Phoenix Color Corp Trade Debts $1,762,589
Brian Keck
18249 Phoenix Drive
Hagerstown, MD 21742
Tel: 800-632-4111 x2227
Fax: 240-527.2227
Email: bkeck@phoenixcolor.com
14. Stewart Brownlee SERP $1,500,001-
615 White Pelican Way $2,000,000
Jupiter, FL 33477
Tel: 561-768-9482 (home)
Email: sfbrownlee@yahoo.com
15. Michael Allen SERP $1,500,001-
433 S Lincoln St $2,000,000
Hinsdale, IL 60521
Tel: 630-986-5009 (home)
Email: 4mike.allen@sbcglobal.net
16. John Walter SERP $1,500,001-
4351 Gulf Shore Blvd N $2,000,000
Naples, FL 34103
Tel: 312-284-2516 (home)
Fax: 847-922-4256 (work)
Email: john@johnrwalter.com
17. William Cozad SERP $1,500,001-
951 Raleigh Road $2,000,000
Glenview, IL 60025
Tel: 847-729-1843 (home)
Fax: 847-372-7337 (work)
Email: wscozad@gmail.com
18. Verso Paper Holding LLC Trade Debts $1,498,451
8540 Gander Creek Drive
Miamisburg, OH 45342
Terril Collier
Email: terril.collier@versoco.com
19. JB Hunt Transport Inc. Trade Debts $1,484,696
615 JB Hunt
Corporate Drive
Lowell, AR 72745
Brian Dieringer
Tel: 734-231-9053
Email: brian.dieringer@jbhunt.com
20. Staffmark Investment LLC Trade Debts $1,252,821
Eugeno Cutolo (Geno)
201 E. 4th Street, Suite 800
Cincinnati, OH 45202
Email: geno.cutolo@staffmarkgroup.com
21. William Baird Deferred $1,000,001-
10225 N Autumn Compensation $1,500,000
Leaf Circle
Magnolia, TX 77354
Tel: 956-369-4715 (cell)
Email: bill.baird@lsccom.com
22. Edward Lane SERP $1,000,001-
27 Mulberry Rd $1,500,000
Bluffton, SC 29910
Tel: 847-476-5263 (home)
Tel: 843 836 5263 (work)
Email: edwardelane@gmail.com
23. Richard McClish SERP $1,000,001-
1303 Covey Trail $1,500,000
Prescott, AZ 86305
Tel: 928-227-1217 (home)
Email: mcclish63@gmail.com
24. Logistics Resource Inc. Trade Debts $1,156,624
William Erzig
1000 Windham Parkway
Bolingbrook, IL 60490
William Erzig
Tel: 630-226-6386
Email: william.erzig@lsccom.com
25. RR Donnelley Logistics Trade Debts $1,145,050
Service
1000 Windham Parkway
Bolingbrook, IL 60490
Brian Lundberg
Tel: 630-226-6433
Email: brian.lundberg@rrd.com
26. Robert Oneil SERP $1,000,001-
100 North Collier Blvd $1,500,000
Marco Island, FL 34145
Tel: 630-399-1254 (home)
Email: rjo5511@comcast.net
27. Kevin Mannion SERP $1,000,001-
107 Woodside Dr. $1,500,000
Syracuse, NY 13224
Tel: 315-383-5828 (home)
Email: gmann69487@aol.com
28. International Paper Co Trade Debts $1,108,572
Greg Gibson
6400 Poplar Ave,
Memphis TN 38197
Tel: (901) 419-7000
Email: greg.gibson@ipaper.com
29. Robert Scribner SERP $1,000,001-
PO Box 70 $1,500,000
Folly Beach, SC 29439
Tel: 843-364-7332 (home)
Tel: 843-588-2031 (work)
30. William Major SERP $1,000,001-
2570 Brookhaven $1,500,000
Chase Lane NE
Atlanta, GA 30319
Email: bill.major@bellsouth.net
31. Jonathan Ward SERP $1,000,001-
115 Sago Palm Road $1,500,000
Vero Beach, FL 32963
Tel: 847-234-3681 (home)
Tel: 312-961-9049 (work)
32. Ensono LP Trade Debts $1,049,587
Jeff VonDeylen
3333 Finley Road
Downers Grove, IL 60515
Tel: 630-944-9042
Email: jeff.vondeylen@ensono.com
33. Robert Logan Jr. SERP $500,000-
Itel Labortories $1,000,000
Jacksonville, FL 32256
Tel: 305-803-1354 (home)
Tel: 904-596-5724
Email: robert@loslogan.com
34. Scot Smith SERP $500,000-
9325 Viaggio Way $1,000,000
Highlands Ranch, CO 80126
Email: scot.smith107@gmail.com
35. AGFA Corporation Trade Debts $927,361
Gunther Mertens
611 River Drive, Center 3
Elmwood Park, NJ 07407
Gunther Mertens
Tel: 201-373-4001
Email: gunther.mertens@agfa.com
36. Craig McCarthy Deferred $500,000-
1805 Hunting Cove Pl Compensation $1,000,000
Alexandria, VA 22307
Tel: 703-623-6219 (cell)
Email: Craig.Mccarthy@lsccom.com
37. Richard F. Marcoux SERP $500,000-
19 Durham Rd $1,000,000
Bronxville, NY 10708-5419
Tel: 914-961-5356 (home)
Tel: 212-503-1300 (work)
Email: rick.marcoux@lsccom.com
38. Magnus Nicolin SERP $500,000-
130 Avenue Moliere $1,000,000
Brussels 01050
Belgium
Email: sofiemagnus@msn.com
39. Richard Stewart SERP $500,000-
8001 Greenwich Woods $1,000,000
Mc Lean, VA 22102
Tel: 302-743-9813 (home)
Email: Robert.Stewart@lsccom.com
40. Southern Refrigerated Trade Debts $782,614
Transport Inc.
Donny Sparkman
8055 US-67
Texarkana, AR 71854
Tel: 423-463-3255
Email: DSpartkman@covenanttransport.com
41. Ronald Daly SERP $500,000-
20002 Old George's Way $1,000,000
Olympia Fields, IL 60461
Tel: 312-217-5971 (home)
Email: rondaly5@comcast.net
42. FedEx Trade Networks Trade Debts $755,244
PO Box 840
Harrison, AR 72602
Perry Munir
Tel: 630-731-2070
Email: pmunir@fedex.com
43. Henkel Adhesives Corporation Trade Debts $738,473
Mike Bunge
10 Finderne Avenue,
Suite B Bridgewater
NJ 08807
Tel: 630-210-6443
Email: mike.bunge@henkel.com
44. Joseph M Steining SERP/Deferred $500,000-
900 Canyon Oak Drive Compensation $1,000,000
Euless, TX 76039
Tel: 817-807-8489 (cell)
Email: jmsteining@gmail.com
Joseph.Steining@lsccom.com
45. William Tyler SERP $500,000-
434 S Ann St $1,000,000
Lancaster, PA 17602
Tel: 717-515-6723 (home)
Email: william.d.tyler@lsccom.com
46. Metro Staff Incorporated Trade Debts $671,285
Joe Klisz
1601 Weld Rd
Elgin, IL 60123
Tel: 630-327-8517
Email: joe@msistaff.com
47. Philip J. Damiano SERP $500,000-
15 Green Road $1,000,000
Amherst, NH 03031
Tel: 603-249-5805 (home)
Email: pdamiano@mac.com
48. Ronald Weir SERP $500,000-
735 Spindletree $1,000,000
Naperville, IL 60565
Tel: 630-961-9722 (home)
Email: ronald.j.weir@gmail.com
49. John Paloian SERP $500,000-
265 Longmeadow Rd $1,000,000
Fairfield, CT 06824
Tel: 203-259-4646 (home)
Email: Socaljp@optonline.net
50. Robert Pyzdrowski SERP $500,000-
124 W 8th St $1,000,000
Hinsdale, IL 60521
Tel: 630-325-6102 (home)
Tel: 630-772-0007 (work)
Email: bob@rspyzdrowski.com
LTI HOLDINGS: Crescent Says $992,000 Loan at 90% Face Value
-----------------------------------------------------------
Crescent Capital BDC, Inc. has marked its $992,462 in loans
extended to LTI Holdings, Inc. to market at $897,469 or 90% of the
outstanding amount, as of Dec. 31, 2019, according to a disclosure
contained in Crescent's Form 10-K filing with the Securities and
Exchange Commission for the fiscal year ended Dec. 31, 2019.
Crescent provided the Company a Senior Secured First Lien Loan that
is scheduled to mature September 1, 2025. The loan charges
interest at LIBOR + 350. The weighted average current interest
rate in effect at December 31, 2019, is 5.3%.
LTI is an industrial equipment company.
MACY'S INC: Egan-Jones Lowers Sr. Unsecured Ratings to B
--------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Macy's Incorporated to B from BB+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A2.
Macy's Incorporated is an American department store chain founded
in 1858 by Rowland Hussey Macy. It became a division of the
Cincinnati-based Federated Department Stores in 1994, through which
it is affiliated with the Bloomingdale's department store chain;
the holding company was renamed Macy's, Inc. in 2007.
MALLINCKRODT INT'L: Crescent Says $957,000 Loan at 90% Face Value
-----------------------------------------------------------------
Crescent Capital BDC, Inc., has marked its $957,341 in loans
extended to Mallinckrodt International Finance S.A. to market at
$782,229 or 82% of the outstanding amount, as of Dec. 31, 2019,
according to a disclosure contained in Crescent's Form 10-K filing
with the Securities and Exchange Commission for the fiscal year
ended Dec. 31, 2019.
Crescent provided the drugmaker a Senior Secured First Lien Loan
that is scheduled to mature February 1, 2025. The loan charges
interest at LIBOR + 300. The weighted average current interest
rate in effect at December 31, 2019, is 4.91%.
MARTIN MARIETTA: Egan-Jones Lowers Senior Unsecured Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Martin Marietta Materials, Inc. to BB+ from BBB-.
Based in Raleigh, North Carolina, Martin Marietta Materials, Inc.
produces aggregates for the construction industry, including
highways, infrastructure, commercial, and residential. The Company
also manufactures and markets magnesia-based products, including
heat-resistant refractory products for the steel industry, chemical
products for industrial and environmental uses, and dolomitic
lime.
MATRA PETROLEUM: Exclusivity Period Extended to April 17
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
extended to April 17 the exclusivity period for Matra Petroleum
USA, Inc. and its affiliates to file a Chapter 11 plan.
If the companies file a Chapter 11 plan by April 17, the
exclusivity period will be automatically extended for an additional
60 days thereafter to allow the companies an opportunity to confirm
the plan.
The companies have already prepared a liquidating plan, however,
they are still circulating comments regarding the plan and the
potential resolution of certain outstanding issues.
About Matra Petroleum
Matra Petroleum USA Inc. and its subsidiaries are Houston-based
independent oil and gas companies focusing on oil and gas
production. The companies sought Chapter 11 protection (Bankr.
S.D. Tex. Lead Case No. 19-34190) on July 31, 2019.
Matra Petroleum USA estimated $10 million to $50 million in assets
and $50 million to $100 million in liabilities. As of July 1,
2019, the Debtors had combined secured debt in excess of $70
million, secured by liens on substantially all of the Debtors'
assets, cash and equity. Judge David R. Jones oversees the case.
The Debtors tapped Hoover Slovacek LLP as their legal counsel;
Macco Restructuring Group, LLC as financial advisor; and MMS
Certified Public Accountants, PLLC as
accountant.
MCCLATCHY COMPANY: Hires Deloitte & Touche as Independent Auditor
-----------------------------------------------------------------
The McClatchy Company, and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Deloitte & Touche LLP, as independent auditor to the
Debtors.
McClatchy Company requires Deloitte & Touche to:
a. perform financial statement audits in accordance with the
standards of the Public Company Accounting Oversight Board
(the "PCAOB Standards") and expressing an opinion on
whether the Debtors' financial statements for the years
ending December 29, 2019 and December 27, 2020,
respectively, are presented fairly in all material
respects, in accordance with accounting principles
generally accepted in the United States of America.
b. review the Debtors' condensed interim financial information
in accordance with the PCAOB Standards for each of the
quarters in the periods ended December 29, 2019 and ending
December 27, 2020, respectively.
Deloitte & Touche will be paid at these hourly rates:
Partner/Principal/Managing Director $500
Senior Manager $375
Manager $300
Senior $200
Staff $100
Prior to the Petition Date, Deloitte & Touche received $600,000 in
retainer amounts from the Debtors for services to be performed. In
the 90 days prior to the Petition Date, the Debtors paid Deloitte &
Touche $885,500, including retainer amounts, for services performed
or to be performed for the Debtors. As of the Petition Date, no
amounts were outstanding with respect to the invoices issued by
Deloitte & Touche prior to such date, and $350,000 of the retainer
amounts remained as of such date.
Deloitte & Touche will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Trisha Siegel, a partner at Deloitte & Touche, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Deloitte & Touche can be reached at:
Trisha Siegel
DELOITTE & TOUCHE LLP
555 Mission Street, Suite 1400
San Francisco, CA 94105
Tel: (415) 783-4000
About The McClatchy Company
The McClatchy Co. (OTC-MNIQQ) -- https://www.mcclatchy.com/ --
operates 30 media companies in 14 states, providing each of its
communities local journalism in the public interest and advertising
services in a wide array of digital and print formats.
McClatchypublishes iconic local brands including the Miami Herald,
The Kansas City Star, The Sacramento Bee, The Charlotte Observer,
The (Raleigh) News & Observer, and the Fort Worth Star-Telegram.
McClatchy is headquartered in Sacramento, Calif., and listed on the
New York Stock Exchange American under the symbol MNI.
On Feb. 13, 2020, The McClatchy Company and 53 affiliates sought
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-10418) with
a Plan of Reorganization that will cut $700 million of funded debt
in half.
McClatchy was estimated to have $500 million to $1 billion in
assets and debt of at least $1 billion as of the bankruptcy
filing.
The cases are pending before the Honorable Michael E. Wiles.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as
general bankruptcy counsel; Togut, Segal & Segal LLP as
co-bankruptcy counsel with Skadden; Groom Law Group as special
counsel; FTI Consulting, Inc. as financial advisor; and Evercore
Inc. as investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
MCL NURSING: Unsecureds to Get 100% With Interest Over 5 Years
--------------------------------------------------------------
Debtor MCL Nursing, LLC, filed with the U.S. Bankruptcy Court for
the Northern District of Georgia, Atlanta Division, a Plan of
Reorganization and a Disclosure Statement on March 31, 2020.
Class 2B General Unsecured Claims will be paid 100% of each Allowed
Claim with regular quarterly payments beginning the first Business
Day of the month, 30 days following the Effective Date.
Holders of Allowed Unsecured Claims not separately classified under
the Plan shall receive payments in cash in an amount equal to 100
percent of each holder's Allowed Unsecured Claim plus interest
accruing at the rate of 5.0% APR payable in quarterly payments
beginning the first Business Day of the month 30 days following the
Effective Date until the earlier of (a) five years after the
Effective Date, or (b) until the Allowed Unsecured Claims are paid
in full plus interest at the rate of 5.0% APR.
Class 3 equity interest holders Connie B. Brogdon and Mark
Berkowitz will retain their interests in the Debtor as such
interests existed as of the Petition Date.
All payments under the Plan which are due on the Effective Date
will be funded from the Cash on hand, and operating revenues.
A full-text copy of the Disclosure Statement on March 31, 2020, is
available at https://tinyurl.com/rw46mbo from PacerMonitor at no
charge.
Attorneys for the Debtor:
THEODORE N. STAPLETON, PC
Theodore N. Stapleton
Georgia Bar No. 675850, Suite 100-B
2802 Paces Ferry Road
Atlanta, Georgia, 30339
Telephone: (770) 436-3334
E-mail: tstaple@tstaple.com
About MCL Nursing LLC
MCL Nursing, LLC, owns and operates a skilled nursing facility in
McLoud, Oklahoma.
MCL Nursing filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 19-67513) on Nov. 1,
2019. In the petition signed by Christopher F. Brogdon, manager,
the Debtor was estimated to have up to $50,000 in assets and $1
million to $10 million in liabilities. The case is assigned to
Judge Barbara Ellis-Monro. Theodore N. Stapleton, Esq., at
Theodore N. Stapleton, P.C., represents the Debtor.
MCORPCX INC: MaloneBailey Raises Going Concern Doubt
----------------------------------------------------
McorpCX, Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$760,955 on $3,240,009 of total net revenue for the year ended Dec.
31, 2019, compared to a net loss of $411,216 on $3,987,199 of total
net revenue for the year ended in 2018.
The audit report of MaloneBailey, LLP states that the Company has
suffered recurring losses from operations and negative operating
cash flows that raises substantial doubt about its ability to
continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $1,218,160, total liabilities of $295,403, and a total
shareholders' equity of $922,757.
A copy of the Form 10-K is available at:
https://is.gd/tySPGs
McorpCX, Inc., was incorporated in the State of California on
December 14, 2001. It is a customer experience (CX) management
solutions company dedicated to helping organizations improve
customer experiences, increase customer loyalty, reduce costs and
increase revenue.
MEN'S WEARHOUSE: Crescent Says $1.5M Loan at 81% Face Value
-----------------------------------------------------------
Crescent Capital BDC, Inc., has marked its $1,484,225 in loans
extended to retailer The Men's Wearhouse, Inc. to market at
$1,198,512 or 81% of the outstanding amount, as of Dec. 31, 2019,
according to a disclosure contained in Crescent's Form 10-K filing
with the Securities and Exchange Commission for the fiscal year
ended Dec. 31, 2019.
Crescent provided the Company a Senior Secured First Lien Loan that
is scheduled to mature April 1, 2025. The loan charges interest at
LIBOR + 325. The weighted average current interest rate in effect
at December 31, 2019, is 4.94%.
MFA FINANCIAL: Egan-Jones Lowers Senior Unsecured Ratings to BB
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by MFA Financial Incorporated to BB from BBB-.
MFA Financial, Inc. is a real estate investment trust primarily
engaged in the business of investing, on a leveraged basis, in
residential mortgage assets, including residential mortgage-backed
securities and residential whole loans.
MICHAELS STORES/OLD: Egan-Jones Lowers Sr. Unsecured Ratings to B-
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Michaels Stores Inc/Old to B- from B.
Michaels Stores Inc. retails specialty arts and crafts products.
The Company offers a range of products and supplies including art
supplies, bakeware, beads, craft painting, floral, framing, general
crafts, holiday supplies, home decor, teacher supplies,
scrapbooking, and yarn. Michaels Stores serves consumers at retail
locations throughout North America.
MJJW PORTFOLIO: Durham Questions Plan Feasibility, Infusions
------------------------------------------------------------
Creditor Samarra Durham objects to the Second Plan of
Reorganization and Disclosure Statement of debtor MJJW Portfolio,
Inc., and in support states as follows:
* The Debtor gives no reasonable assurance of success of the
Plan. The Plan provides merely that it will be funded by the
continued operations of the Debtor and/or refinancing of the
Debtor’s post-confirmation secured debt by third parties and in
the event of any operational cash shortfall, Marlon Wright and
Vondalyn Crawford will assist the Debtor with cash infusions.
* The Debtor's proposed fallback, cash infusions from Mr. Wright
and Ms. Crawford, also does not make the Plan feasible because
Debtor has not shown that either individual has the financial
wherewithal to pay Durham $540,000 over five years.
* The Plan provides that Debtor's principal, Marlon Wright, is to
retain his 100 percent equity interest in Debtor while unsecured
creditor Durham will not receive property with a value equal to the
allowed amount of her unsecured claim.
* The Debtor's Plan is not fair and equitable because its
purported compliance with Section 1129(a)(7) has no basis in fact
or law. For a plan to be confirmed, each impaired creditor must
receive no less than what the same creditor would receive if the
debtor were liquidated in a chapter 7 bankruptcy.
A full-text copy of Durham's objection dated March 31, 2020, is
available at https://tinyurl.com/up3c4jy from PacerMonitor at no
charge.
Attorneys for Samarra Durham:
IURILLO LAW GROUP, P.A.
CAMILLE J. IURILLO, ESQUIRE
ALEXANDER ZESCH, ESQUIRE
5628 Central Avenue
St. Petersburg, Florida 33707
Telephone: (727) 895-8050
Facsimile: (727) 895-8057
E-mail: ciurillo@iurillolaw.com
azesch@iurillolaw.com
About MJJW Portfolio
MJJW Portfolio, Inc., owns in fee simple a night club known as Club
1828 in Tampa, Florida, with an appraised value of $730,000. It
also owns in fee simple a six-unit strip mall with an appraised
value of $540,000, also in Tampa, Fla.
MJJW Portfolio sought Chapter 11 protection (Bankr. M.D. Fla. Case
No. 19-08680) on Sept. 13, 2019. In the petition signed by Marlon
Wright, its president, the Debtor listed total assets at $1,270,420
and total liabilities at $384,207. Buddy D. Ford, P.A., is the
Debtor's legal counsel.
MOSS CREEK: S&P Cuts ICR to 'CCC+' After Commodity Price Drop
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
oil and gas exploration and production company Moss Creek Resources
Holdings Inc. to 'CCC+' from 'B' and its rating on the senior
unsecured debt to 'B-' from 'B+'.
"We view the capital structure as unsustainable at our current
commodity price assumptions. We anticipate Moss Creek Resources
Holdings Inc. will produce negative free cash flow while leverage
rises over the next two years, despite cutting capex to below
maintenance levels. Driven in part by a high production decline
rate and given many wells are newer, we expect production will
decrease both in 2020 and 2021," S&P said.
S&P's negative outlook reflects its expectation that Moss Creek
will outspend cash flows over the next year despite sharply cutting
capex. It expects the company's credit metrics will weaken such
that funds from operations (FFO) to debt declines to the mid-teens
over the next year.
"We could lower the rating on Moss Creek if the company breaches
its 4x debt-to-EBITDA covenant or if liquidity weakens," S&P said.
"We could revise the outlook to stable if we believe Moss Creek
will remain in compliance with its covenants and maintain a
sustainable capital structure. This would most likely occur if
commodity prices materially improve over the next two years," the
rating agency said.
MOUNTAIN PROVINCE: Fitch Cuts IDR to 'B-', Outlook Negative
-----------------------------------------------------------
Fitch downgraded Mountain Province Diamonds Inc.'s Issuer Default
Rating to 'B-' from 'B' and revised the Outlook to Negative from
Stable. Fitch also downgraded the first-lien revolving credit
facility to 'BB-'/'RR1' from 'BB'/'RR1' and downgraded the
second-lien secured notes to 'B-'/'RR4' from 'BB-'/'RR2'.
The downgrade reflects materially lower diamond prices, FFO net
leverage expected to be sustained above 3.5x and Fitch's
expectation the company may face near-term covenant pressure. The
downgrade also reflects Fitch's view that an extended period with
the inability to sell diamonds or any shortfall in business
performance due to the coronavirus will quickly erode the company's
liquidity.
The Negative Outlook reflects the uncertainty associated with the
global coronavirus pandemic, which resulted in MPVD having to
suspend its third sale and could potentially adversely affect
liquidity and cause further covenant pressure.
MPVD's rating reflects its relatively small size, concentrated
operations with exposure to a single commodity and short operating
history. This is offset by a solid mine life, mining operations
located in a favorable jurisdiction, an experienced operator,
strong margins and expectations for relatively neutral FCF
generation. The rating is supported by a relatively steady
production profile over the tenor of the notes and the potential to
add resources and extend the life of mine (LOM) plan.
KEY RATING DRIVERS
Significant Price Pressure: Lower consumer confidence driven by
geopolitical and macroeconomic uncertainties partially driven by
U.S./China trade tensions resulted in significant price pressure in
the diamond market in 2019. MPVD's average selling prices fell
roughly 15% in 2019 compared with 2018. The coronavirus global
pandemic creates further uncertainty and may result in additional
diamond price and demand pressures. The magnitude and timing of a
recovery in the diamond market is highly uncertain.
Coronavirus Pandemic Creates Uncertainty: Citywide closures in
Antwerp, Belgium, where MPVD sells its diamonds, resulted in the
company postponing its third sale of 2020 indefinitely. India,
which accounts for roughly 90% of the global diamond cutting and
polishing industry, announced a 21-day lockdown on March 22, 2020.
Fitch believes the uncertainty associated with the length lockdowns
will last creates significant risk in the timing of future diamond
sales. An extended period with the inability to sell diamonds would
quickly result in weak liquidity and covenant pressure in the near
term. Additionally, Fitch views operating a single mine site as
heightening the risk of operational disruption from the
coronavirus.
Near-Term Covenant Pressure: Fitch expects total debt/EBITDA to
peak in the near term at around 4.9x in 2020, driven mainly by
lower average prices and Fitch's conservative assumption of lower
than expected carats sold due to current lockdowns in India and
Belgium disrupting cutting, polishing and sales, in addition to
future uncertainty surrounding the coronavirus pandemic. Lower
sales result in significant near-term covenant pressure, although
MPVD may be able to negotiate another amendment to provide covenant
relief. MPVD announced on March 31, 2020 an amendment to covenants,
including increasing the maximum leverage ratio to 4.5x for the
quarter ended March 31, 2020; 5.0x for the quarter ended June 30,
2020; and 4.25x for the quarter ended Sept. 30, 2020.
Fitch expects leverage to decline in 2021, with stronger earnings
driven by a boost in carats sold partially driven by the
accumulation of inventory and modestly higher prices. However,
Fitch expects total debt/EBITDA to be sustained above 4.0x
thereafter. MPVD prepaid CAD26 million of its senior secured notes
in the first full year of operations in 2018 and an additional
CAD13 million in 2019. Fitch views management's prudent approach to
debt repayment, following cash flow generation, as supportive to
its credit profile.
Stable Production Profile: The Gahcho Kue mine is located in
Canada's Northwest Territories, a mining-friendly and politically
stable jurisdiction. MPVD has a limited track record with the GK
mine, declaring commercial production on March 1, 2017. However, De
Beers Canada, the majority owner and operator of the GK mine, has
extensive mining operating history, which helps mitigate risk.
MPVD's small size and limited operating history is also offset by a
relatively long LOM plan, which extends to 2030. Additionally, all
mining at the GK mine is currently open pit, reducing operational
risk. Fitch expects MPVD's share of diamond production to average
around 3 million carats annually over the next four years, barring
any unexpected coronavirus-linked production curtailments.
Strong Margins: MPVD benefits from strong EBITDA margins, even in
the currently weak diamond price environment, driven by relatively
high-grade and low-cost mining. Solid margins and manageable
capital spending, at relatively stable prices, are expected to
result in neutral FCF generation on average.
Kennady Provides Potential Flexibility: MPVD completed its
all-share acquisition of Kennady, an advanced diamond exploration
project, on April 13, 2018. The acquisition adds 13.62 million
carats of indicated resources, 5.02 million carats of inferred
resources and a 100% interest in exploration ground strategically
surrounding the GK mine. Incorporating Kennady into the GK joint
venture would add operational flexibility and could help offset a
period of relatively low-grade mining at Tuzo beginning in 2023.
Fitch would view the addition of Kennady into the LOM plan as
credit positive, given it provides the opportunity to extend the
mine life and complements the GK mine assets well.
DERIVATION SUMMARY
MPVD has higher margins and a more stable production profile
compared with Canadian-based diamond miner Dominion Diamond
Holdings LLC (CCC), although DD compares favorably in terms of
size. MPVD is significantly smaller than Russian-based leading
global diamond producer PJSC ALROSA (BBB-/Stable). Alrosa accounts
for over 25% of global diamond production, has low cash costs,
robust margins and conservative financial leverage. Gold miner Gran
Colombia Gold Corp. (B/Stable) has favorable leverage metrics, but
it has lower margins and higher country risk compared with MPVD.
Iron pellet producer Ferrexpo plc (BB-/Stable) is larger and has
favorable leverage metrics compared with MPVD. However, Ferrexpo's
credit quality is constrained by the operating environment in
Ukraine.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within its Rating Case for the Issuer
Include:
-- Average diamond prices decline in 2020, recover modestly to
2019 average prices in 2021 and remain relatively flat thereafter;
-- Production averages roughly 3 million carats per year, on a
49% basis, through 2023;
-- Carats sold lower in 2020 due to suspended third 2020 sale and
high uncertainty associated with the coronavirus' impact on the
business, which then rebounds in 2021, partially driven by
inventory build;
-- Minimal exploration spending until 2023;
-- No dividends or share repurchases.
The recovery analysis assumes MPVD would be considered a going
concern in bankruptcy and the company would be reorganized rather
than liquidated. Assumptions for the going concern approach
include:
Fitch assumes a bankruptcy scenario exit going concern EBITDA of
CAD65 million. The EBITDA estimate is reflective of variable
production levels that tend to fluctuate with kimberlite mix shifts
and could potentially heighten refinancing risk. The lower EBITDA
estimate incorporates a scenario of material supply chain
disruption and prolonged weakness in the diamond market. The GC
EBITDA estimate also reflects the volatility and unpredictability
of diamond prices.
Fitch applies EBITDA multiples that generally range from 4.0x-6.0x
for mining issuers, given the cyclical nature of commodity prices.
MPVD's 4.0x multiple is at the low end of the range reflecting its
short operating history and concentration in a single commodity.
Fitch applies a going concern EBITDA of CAD65 million and a 4.0x
enterprise value multiple, which results in an enterprise value of
CAD260 million and compares closely to Fitch's estimated
liquidation value. Fitch assumed the revolving credit facility is
fully drawn and a 10% administrative claim in the recovery
analysis. Fitch's recovery analysis results in a 100% recovery for
the first-lien senior secured revolver rated 'BB-'/'RR1' and a 45%
recovery for the second- lien senior secured notes rated
'B-'/'RR4'.
RATING SENSITIVITIES
Fitch could stabilize the Outlook with higher visibility into
MPVD's strategy to improve liquidity and address the 2022 notes.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Expectations of sustainably higher FCF generation and/or
improved liquidity;
-- Total debt/EBITDA sustained below 3.5x;
-- Improved production profile from additional resources
economically added to the LOM plan;
-- Successful refinancing of the 2022 notes.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- An extended inability to sell diamonds resulting in a weakened
liquidity position;
-- Diamond prices materially decline;
-- Expectations for negative FCF in consecutive years;
-- Total debt/EBITDA expected to be sustained above 4.0x and/or
covenant pressure;
-- Inability to refinance or raise equity by mid-2022 to pay the
2022 notes.
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
Minimal Headroom: MPVD had cash and cash equivalents of roughly
CAD35million and USD50 million, respectively, available under its
undrawn revolver due 2020 as of Dec. 31, 2019. Fitch believes
revolver availability could be limited in the near term to remain
in compliance with financial covenants. Fitch believes MPVD may
have near-term covenant pressure and any shortfall in business
performance may quickly exhaust remaining liquidity.
The coronavirus resulted in the company having to suspend its third
sale of 2020 until further notice. Fitch believes an extended
period with the inability to sell diamonds will quickly erode the
company's liquidity position.
MOUNTAIN STATES: Hires Dennis & Company as Accountant
-----------------------------------------------------
Mountain States Rosen, LLC, seeks authority from the U.S.
Bankruptcy Court for the District of Wyoming to employ Dennis &
Company P.C., as accountant to the Debtor.
Mountain States requires Dennis & Company to:
(1) prepare all needed income and payroll and other tax
returns and related tax and accounting matters for the
Debtor;
(2) assist with any reporting required under the Bankruptcy
Code or by the Court, including financial disclosures,
monthly operating reports, cash flow projections, and
post-confirmation quarterly reports; and
(3) assist in the preparation and execution of filings
necessary to satisfy the Debtor's responsibilities under
the Bankruptcy Code, such as its schedules and statement
of financial affairs.
Dennis & Company will be paid at these hourly rates:
Mark Dennis $300
David Dennis $300
Staffs $150
Dennis & Company will be paid a retainer in the amount of $10,500.
Dennis & Company will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Mark Dennis, partner of Dennis & Company P.C., assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Dennis & Company can be reached at:
Mark Dennis
DENNIS & COMPANY P.C.
8400 E Crescent Pkwy, Suite 600
Greenwood Village, CO 80111
Tel: (720) 528-4087
About Mountain States Rosen
Mountain States Rosen LLC -- http://mountainstatesrosen.com/-- is
a privately held company in the animal slaughtering and processing
business.
Mountain States Rosen sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Wyo. Case No. 20-20111) on March 19,
2020. At the time of the filing, the Debtor disclosed assets of
between $10 million and $50 million and liabilities of the same
range. Judge Cathleen D. Parker oversees the case. The Debtor
tapped Markus Williams Young & Hunsicker LLC as its legal counsel.
MTE HOLDINGS: Potter Anderson 5th Update on Service Providers
-------------------------------------------------------------
In the Chapter 11 cases of MTE Holdings LLC, et al., the law firm
of Potter Anderson & Corroon LLP submitted a fifth amended
verified statement under Rule 2019 of the Federal Rules of
Bankruptcy Procedure, to provide an updated list of the Ad Hoc
Committee of Service Providers that it is representing.
On Oct. 22, 2019, October 23, 2019, and November 8, 2019, each of
the Debtors filed a voluntary petition for relief under chapter 11
of title 11 of the United States Code.
On Nov. 20, 2019, the Office of the United States Trustee held a
meeting to form an official committee of unsecured creditors. The
U.S. Trustee did not appoint an official committee of unsecured
creditors at the meeting, and on December 3, 2019, the U.S. Trustee
filed the Statement that a Committee of Unsecured Creditors Has Not
Been Appointed [Docket No. 164].
Many of the creditors comprising the Ad Hoc Committee submitted
questionnaires to the U.S. Trustee and appeared at the Formation
Meeting; however, many, if not all, of these creditors have
statutory liens pursuant to Chapter 56 of Title 5 of the Texas
Property Code. See generally Tex. Prop. Code Ann. Section 56 et
seq. Following the Formation Meeting, the creditors that make up
the Ad Hoc Committee organized as a group to protect and preserve
their rights and the rights of similarly situated creditors in
these cases [Docket No. 160]. The Ad Hoc Committee consists of
parties who performed labor or provided services to, or furnished
or hauled material, machinery, or supplies used in, the Debtors'
mineral activities.
As of April 10, 2020, members of the Ad Hoc Group and their
disclosable economic interests are:
Materialmen's Lien
------------------
Alamo Pressure Pumping, LLC
1101 N. Little School Road
Arlington, TX 76017 $19,517,624.27
Anchor Drilling Fluids USA
11700 Katy Freeway, Suite 200
Houston, TX 77079 $1,422,536.24
Apergy ESP Systems, LLC
2445 Technology Forest Blvd.
Building 4, 12th Floor
The Woodlands, TX 77381 $4,851,753.78
Baseline Energy Services, LP
201 Foch Street
Fort Worth, TX 76107 $1,226,077.16
Basic Energy Services, LP
801 Cherry Street, Suite 2100
Fort Worth, TX 76102 $3,217,315.85
Covenant Testing Technologies, LLC
1600 Highway 6, Suite 360
Sugar Land, TX 77478 $809,630.80
DuraChem Services
2719 W County Road 114
Midland, TX 79706 $4,474,085.56
FESCO, Ltd.
1000 FESCO Ave.
Alice, TX 78332 $1,586,814.77
Flowco Production Solutions, LLC
18511 Imperial Valley Dr.
Houston, TX 77073 $601,186.06
Globe Chemical, LLC
P.O. Box 51168
Midland, TX 79710 $11,044,806.44
Gravity Oilfield Services, LLC
3300 North A Street
Building 4, Suite 100
Midland, TX 79705 $2,224,476.61
JW Powerline, LLC
2401 E. Interstate 20
Midland, TX 79701 $5,820,435.78
Knight Energy Services, LLC
19500 State Highway 249, Suite 600
Houston, TX 77070 $156,395.04
Legacy Directional Drilling, LLC
103 Abigayles Row
Scott, LA 70583 $5,200,891.18
Peak Oilfield Services, LLC
P.O. Box 548
Birdgeport, TX 76426 $928,797.42
ProPetro Services, Inc.
1706 S. Midkiff Building B
Midland, TX 79701 $850,377.42
Repeat Precision, LLC
19450 State Highway 249
Suite 200
Houston, TX 77070 $40,142.52
RWLS d/b/a Renegade Services
1937 West Avenue (PO Box 862)
Levelland, TX 79336 $3,330,708.55
Select Energy Services, LLC
1233 West Loop South
Suite 1400
Houston, TX 77027 $1,674,758.47
Sidewinder Drilling LLC
20475 Highway 249, Suite 300
Houston, TX 77070 $501,662.25
Spectrum Tracer Services LLC
d/b/a NCS Multistage
Tracer Diagnostics $134,352.00
STEP Energy Services Holdings Ltd.
480 Wildwood Forest Drive
Suite 300
Spring, TX 77380 $3,784,145.08
Texas Fueling Services
4220 Laura Koppe
Houston, TX 77016 $2,245,209.15
Trio Equipment Co.
3683 E Highway 44
Alice, TX 78332 $812,540.30
WaterBridge Texas Midstream LLC
Attn: General Counsel
840 Gessner Road, Suite 100
Houston, TX 77024 $7,894,812.21
Nothing contained in this Verified Statement (or Exhibit A hereto)
should be construed as a limitation upon, or waiver of any Ad Hoc
Committee member's rights to assert, file and/or amend its claim(s)
in accordance with applicable law and any orders entered in these
cases establishing procedures for filing proofs of claim.
The Ad Hoc Committee reserves the right to amend or supplement this
Verified Statement in accordance with the requirements set forth in
Bankruptcy Rule 2019.
Counsel to the Ad Hoc Committee of Service Providers can be reached
at:
POTTER ANDERSON & CORROON LLP
Christopher M. Samis, Esq.
L. Katherine Good, Esq.
R. Stephen McNeill, Esq.
Aaron H. Stulman, Esq.
1313 North Market Street, Sixth Floor
P.O. Box 951
Wilmington, DE 19899
Telephone: (302) 984-6000
Facsimile: (302) 658-1192
E-mail: csamis@potteranderson.com
kgood@potteranderson.com
rmcneill@potteranderson.com
astulman@potteranderson.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://is.gd/Io8tqD and https://is.gd/gSUWKQ
About MTE Holdings
MTE Holdings LLC is a privately held company in the oil and gas
extraction business. MTE sought protection under Chapter 11 of
the
Bankruptcy Code (Bankr. D. Del. Case No. 19-12269) on Oct. 22,
2019. In the petition signed by its authorized representative,
Mark A. Siffin, the Debtor disclosed debts of less than $500
million. Judge Karen B. Owens has been assigned to the case. The
Debtor tapped Kasowitz Benson Torres LLP as its bankruptcy
counsel;
Morris, Nichols, Arsht & Tunnell, LLP as its local counsel; and
Stretto as its claims and noticing agent.
MUSEUM OF AMERICAN JEWISH: Court Grants Interim Cash Access
-----------------------------------------------------------
The Museum of American Jewish History sought and obtained interim
permission from the Bankruptcy Court for the Eastern District of
Pennsylvania to use cash collateral through April 19, 2020,
pursuant to a second interim order.
Previously, the Court has granted the Debtor access to cash
collateral pursuant to a first interim order, a copy of which is
available free of charge at https://is.gd/SqtveE from
PacerMonitor.com.
Pursuant to the second interim order, the Court grants UMB Bank,
NA., as indenture trustee and successor to T.D. Bank, N.A.,
replacement security interests in and replacement liens on all of
the Debtor's post-petition assets (on which the indenture trustee
held a pre-petition lien) to the extent of the aggregate diminution
in value of the pre-petition cash collateral.
The trust indenture, dated June 30, 2015, was between the
Philadelphia Authority for Industrial Development and T.D. Bank,
N.A., as indenture trustee, pursuant to which the Authority issued
revenue bonds in the aggregate principal amount of $30,750,000 to
provide funding to the museum (to finance the museum's
construction, fund certain reserves, interest and certain costs
associated with the bonds). UMB Bank, N.A. succeeded T.D. Bank
N.A. as the indenture trustee as of October 18, 2019.
Further hearing on the motion is scheduled for April 15, 2020, at
11:30 a.m.
About Museum of American Jewish History
The Museum of American Jewish History -- https://www.nmajh.org/ --
is a Pennsylvania non-profit organization which operates the
National Museum of American Jewish History, the only museum in the
nation dedicated exclusively to exploring and interpreting the
American Jewish experience. The museum presents educational and
public programs that preserve, explore and celebrate the history of
Jews in America. The museum was established in 1976 and is housed
in the Philadelphia's Independence Mall.
On March 1, 2020, Museum of American Jewish History sought Chapter
11 protection (Bankr. E.D. Pa. Case No. 20-11285). The Debtor was
estimated to have $10 million to $50 million in assets and
liabilities. Judge Magdeline D. Coleman oversees the case. The
Debtor tapped Dilworth Paxson, LLP as its legal counsel and Donlin,
Recano & Company, Inc. as its claims agent.
MYERS INDUSTRIES: Egan-Jones Lowers Senior Unsecured Ratings to BB
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Myers Industries Inc. to BB from BB+.
Founded in 1933 in Akron, Ohio, Myers Industries, Inc. is a leading
manufacturer of polymer products for material handling and a
distributor of tire retread and repair products, serving growing
markets from agricultural to medical and automotive to commercial.
NABORS INDUSTRIES: Egan-Jones Lowers Sr. Unsecured Ratings to B-
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Nabors Industries Limited to B- from B.
Nabors Industries is a global oil and gas drilling company based in
Houston, Texas. Nabors owns the largest land drilling fleet in the
world with approximately 400 rigs in more than 20 countries.
NATEL ENGINEERING: S&P Cuts ICR to 'CCC+'; Outlook Negative
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Natel
Engineering Co. Inc. to 'CCC+' from 'B'. The outlook is negative.
At the same time, S&P lowered its issue-level rating on the
company's senior secured term loan to 'CCC+' from 'B'. The '3'
recovery rating is unchanged, indicating its expectation for
meaningful (50%-70%; rounded estimate: 60%) recovery in a default.
S&P had downgraded Natel, which does business under the NEO
Technology Solutions (NEO Tech) brand, to 'B' from 'B+' on March
12. S&P is taking action again because, in the subsequent three
weeks, the social distancing measures adopted to slow the spread of
the coronavirus have significantly worsened its macroeconomic
expectations, and the rating agency now believes that the risk of
default scenarios is material, including acceleration of the term
loan due to a financial covenant breach, a debt exchange or
restructuring, or a distressed repurchase of debt at a discount, in
which case it would lower its issuer rating to 'D' or 'SD'
(selective default). S&P might consider a debt exchange, a
restructuring, or a repurchase of debt at a discount as a default
if it viewed the transaction as being distressed, rather than
opportunistic. S&P would view the transaction as being distressed
if it thought there were a realistic possibility of a conventional
default in the absence of the transaction and the creditors were
motivated to accept the transaction because of this risk. If Natel
were to pursue such a transaction, S&P would likely view it as
distressed given the current macroeconomic environment and the
potential for a violation of financial covenants.
The negative outlook reflects S&P's view that macroeconomic
weakness related to the new coronavirus elevates the risk of
acceleration of the term loan due to a financial covenant breach, a
debt exchange or restructuring, or a distressed repurchase of debt
at a discount.
"We could downgrade NEO Tech if we came to believe that a term loan
acceleration, exchange or restructuring, or distressed debt
repurchase were more likely than not to occur within the next 12
months, due to a severe impact on operating performance from a
weakening macroeconomic environment," S&P said.
"We could revise our outlook on NEO Tech to stable if it steadied
its business performance such that it could preserve its revenue
and EBITDA levels while generating positive free cash flow and
maintaining compliance with the financial covenants of its term
loan. This would likely occur as a result of the containment of new
coronavirus infections in the U.S. during the second calendar
quarter, followed by a strong macroeconomic rebound in the second
half of the year," the rating agency said.
NATHAN'S FAMOUS: Egan-Jones Lowers Senior Unsecured Ratings to CCC
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Nathan's Famous, Incorporated to CCC from B. EJR
also downgraded the rating on commercial paper issued by the
Company to C from B.
Nathan's Famous, Inc. is an American company that operates a chain
of fast-food restaurants specializing in hot dogs. The original
Nathan's restaurant stands at the corner of Surf and Stillwell
Avenues in the Coney Island neighborhood of the Brooklyn borough of
New York City, New York.
NCR AUTO CORES: Seeks to Hire Jones LLP as Special Counsel
----------------------------------------------------------
NCR Auto Cores & Security, Inc., seeks authority from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Jones LLP, as special counsel to the Debtor.
NCR Auto Cores requires Jones LLP to represent the Debtor against
Techemet L.P., and other companies that owe money to the Debtor by
methods including but not limited to litigation to recover these
assets.
Jones LLP will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey Briem, partner of Jones LLP, assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtor and its estates.
Jones LLP can be reached at:
Jeffrey Briem, Esq.
JONES LLP
670 White Plains Road
Scarsdale, NY 10583
Tel: (914) 713-9307
E-mail: jbriem@joneslawllp.com
About NCR Auto Cores & Security
NCR Auto Cores & Security Inc. is a privately held company whose
principal assets are located at 222 City Island Ave., Bronx, N.Y.
NCR Auto Cores & Security filed a voluntary Chapter 11 petition
(Bankr. S.D.N.Y. Case No. 19-23869) on Oct. 22, 2019. In the
petition signed by CEO Joseph Forti, the Debtor was estimated
$50,000 to $100,000 in assets and $1 million to $10 million in
liabilities. Judge Robert D. Drain oversees the case. The Debtor
tapped Bruce H. Bronson Jr., Esq., at Bronson Law Offices, P.C., as
its legal counsel.
NEW ENERGY: Has Until April 30 to Exclusively File Chapter 11 Plan
------------------------------------------------------------------
Bankruptcy Judge Enrique Lamoutte extended to April 30 the
exclusive period for New Energy Consultants & Contractors LLC to
file its Chapter 11 plan of reorganization and disclosure
statement.
NECC sought exclusivity extension to allow conclusion of its
ongoing negotiations with Sunrun and AEE Solar. At the same time,
the company had to reassess the need of the capital contribution by
way of new value that will be requested from its members. As a
matter of fact, a meeting of the members will be held early in the
month of April 2020. The result of such negotiations will be
instrumental to the plan to be filed.
In addition, NECC had to re-evaluate the financial consequences
caused by the unprecedented lockdown caused by the COVID-19
pandemic, as well as its impact in the cash flow and the
projections that form an integral part of the projections to be
included in the disclosure statement.
NECC is confident that it can conclude the negotiations and be able
to file a disclosure statement and plan of reorganization by April
30.
About New Energy Consultants
New Energy Consultants & Contractors LLC is a Puerto Rican company
with a mission to serve residential and commercial renewable energy
markets.
New Energy Consultants filed a Chapter 11 petition (Bankr. D.P.R.
Case No. 19-05891) on Oct. 10, 2019. In the petition signed by
Yolanda Gonzalez Gomez, chief financial officer and chief
restructuring officer, the Debtor estimated $50,000 in assets and
$10 million to $50 million in liabilities. Judge Enrique S.
Lamoutte Inclan oversees the case.
Jose F. Cardona Jimenez, Esq., at Cardona Jimenez Law Offices, PSC,
is the Debtor's legal counsel.
NEW MILLENNIUM HOLDCO: S&P Lowers ICR to 'D' on Missed Payments
---------------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating on San
Diego-based clinical toxicology laboratory services provider New
Millennium Holdco Inc. to 'D' from 'CC'.
At the same time, S&P is lowering the issue-level rating on the
company's term loan to 'D' from 'CC' to reflect the payment
default.
"We lowered the ratings to 'D' because New Millennium did not pay
principal and interest on its first-lien term loan, both due March
31. We do not expect the company to make payments within the grace
period. New Millennium had $557 million outstanding on the original
$600 million facility, the only debt in the capital structure," S&P
said.
NEWELL BRANDS: S&P Alters Outlook to Negative, Affirms 'BB+' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Newell Brands Inc. to
negative from stable and affirmed its 'BB+' long term, and 'B'
short term, issuer credit rating on the company.
Store closures and a sharp decline in consumer spending due to the
coronavirus pandemic will reduce the company's revenue and EBITDA.
"Our negative outlook reflects the risk that Newell's credit
metrics will deteriorate as the coronavirus spreads. It also
incorporates our belief that the recession will materially affect
the company's topline and profit growth. Newell generates about a
third of its sales from its Outdoor and Recreation and Appliance
and Cookware segments, which already faced a significant level of
stress and reported declining sales in fiscal year 2019. The
company's Baby segment, which is less discretionary, should exhibit
relatively lower volatility. In addition, we expect that its
Commercial business could potentially help offset the revenues
declines in its other segments given the strong demand for cleaning
and sanitation products. Still, we believe demand will decline as
consumer confidence rapidly deteriorates because of the mounting
uncertainty over the severity and duration of the outbreak," S&P
said.
The negative outlook reflects the heightened risk that Newell's
credit metrics will materially weaken as its operating performance
suffers due to store closures and S&P's forecast for a global
economic recession in the first half of 2020. An extended period of
store closures in North America or a sharper-than-expected drop in
consumer spending could hinder the company's ability to recover
operationally and strengthen its credit metrics.
"We could lower our rating on Newell if we forecast that a
prolonged slowdown in consumer spending will prevent it from
improving its leverage to the low-4x area in 2021. An unfavorable
outcome for the ongoing SEC investigation, such as the necessity to
restate its prior financial statements or significant fines that
would increase its leverage, could also leads us to downgrade the
company," S&P said.
"We could revise our outlook on Newell to stable if its sales and
earnings prospects improve because of increasing consumer
confidence such that we believe it will be able to maintain
leverage of less than 4.25x on a sustained basis," the rating
agency said.
NEXTIER OILFIELD: S&P Downgrades ICR to 'B'; Outlook Negative
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on NexTier
Oilfield Solutions Inc. to 'B' from 'B+'.
At the same time, S&P is lowering its issue-level rating on the
company's $350 million senior secured term loan due in 2025 to
'BB-' from 'BB'. The recovery rating is '1', indicating S&P's
expectation for very high (90%-100%; rounded estimate: 95%)
recovery of principal in the event of a payment default.
"We expect demand for onshore U.S. oilfield services to crater,
following the oil price collapse. The recent fall in oil prices has
led many E&P companies to announce sharp reductions in capital
spending and activity levels, leading us to reduce our demand
expectations for the oilfield services (OFS) sector. In addition,
we expect the pressure-pumping segment will be particularly
hard-hit as E&P's are likely to defer well completions given the
currently uneconomic commodity prices. As a result, we are
projecting revenues for NexTier to decline by as much as 40%-50% in
2020, compared with 2019, on a pro forma basis. We are also
expecting margins to erode further as E&P companies seek pricing
concessions from OFS companies and as an oversupply of equipment
continues to weigh on the sector," S&P said.
The negative outlook reflects the risk that demand for oilfield
services including pressure pumping could deteriorate further if
oil and gas prices remain low. In addition, S&P expects the
sector's oversupply of equipment to continue to weigh on margins
and profitability, pressuring the company's cash flow and leverage
metrics. S&P expects FFO to debt to average close to 30% in 2020,
improving next year as commodity prices recover under the rating
agency's price deck assumptions.
"We could lower the rating if we expect NexTier's FFO to debt to
average less than 20% for a sustained period without a clear path
to improvement. This would most likely occur from further weakness
in commodity prices that leads to additional and prolonged cutbacks
in E&P spending and completions activity, reducing demand for
NexTier's services," S&P said.
"We could consider a stable outlook if we expect NexTier's FFO to
debt to approach 45% for a sustained period. This would most likely
be driven by higher oil and gas prices fueling increased E&P
spending, which would increase the demand for oilfield services
provided by companies like NexTier," the rating agency said.
NINE ENERGY: Sirkes Succeeds Roeder as Chief Financial Officer
--------------------------------------------------------------
Clinton Roeder, senior vice president and chief financial officer,
has departed Nine Energy Service by mutual consent effective March
31, 2020.
Guy Sirkes, vice president, strategic development, has assumed the
role of senior vice president and chief financial officer. Prior
to joining the Company in March 2019, he was an executive director
with J.P. Morgan's Energy Investment Banking Group. The Company
stated there are no issues involving its financial results,
internal controls or financial reporting procedures that led to Mr.
Roeder's departure.
Ann Fox, Nine's president and chief executive officer said:
"Clinton has been a valued member of the management team since he
joined the Company in 2017. On behalf of the management team and
the Board, I would like to thank him for his contributions and wish
him well in his future endeavors."
Ms. Fox continued: "We are excited to have Guy assume the CFO role.
I have great confidence in his ability to help lead the Company in
this challenging market."
In connection with his appointment, Mr. Sirkes entered into an
employment agreement with the Company and its subsidiary, Nine
Energy Service, LLC, effective as of March 31, 2020. The Sirkes
Employment Agreement provides for a three-year initial term with
automatic renewals for additional one-year periods unless either
Mr. Sirkes or the Employer gives written notice of non-renewal at
least 60 days prior to the expiration of the then-current initial
term or renewal term.
The Sirkes Employment Agreement provides for an initial annualized
base salary of $380,000 and a discretionary annual bonus under the
Employer's annual cash incentive bonus program based on the
achievement of certain performance targets established by the
Board. The Sirkes Employment Agreement provides for an initial
target bonus opportunity of 80% of base salary and initial maximum
bonus opportunity of 160% of base salary. In addition, pursuant to
the Sirkes Employment Agreement, Mr. Sirkes is eligible to receive
annual equity compensation awards pursuant to the Company's 2011
Stock Incentive Plan on such terms and conditions as determined by
the Board or a committee thereof.
About Nine Energy Service
Nine Energy Service is an oilfield services company that offers
completion solutions within North America and abroad. The Company
brings years of experience with a deep commitment to serving
clients with smarter, customized solutions and resources that drive
efficiencies. Serving the global oil and gas industry, Nine
continues to differentiate itself through superior service quality,
wellsite execution and cutting-edge technology. Nine is
headquartered in Houston, Texas with operating facilities in the
Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett, Bakken,
Marcellus, Utica and throughout Canada.
Nine Energy incurred net losses of $217.75 million in 2019, $52.98
million in 2018, and $67.68 million in 2017. As of
Dec. 31, 2019, the Company had $850.89 million in total assets,
$461.02 million in total liabilities, and $389.88 million in total
stockholders' equity.
* * *
As reported by the TCR on March 30, 2020 Moody's Investors Service
downgraded Nine Energy Service, Inc.'s Corporate Family Rating to
Caa1 from B2, Probability of Default Rating to Caa1-PD from B2-PD
and senior unsecured notes rating to Caa2 from B3. Nine's
Speculative Grade Liquidity rating remains unchanged at SGL-2. The
outlook remains negative. "Nine's rating downgrades reflect
pressures on credit quality in the weak commodity price environment
and lower capital spending by the upstream energy sector," said
Jonathan Teitel, Moody's Analyst.
Also in March 2020, S&P Global Ratings lowered the issuer credit
rating on Nine Energy Service Inc. to 'CCC+' from 'B-'. "The
downgrade reflects our view that Nine and its oilfield services
peers will be exceptionally challenged this year as many producers
cut drilling and completion expenditures by 30% or more."
NOBLE ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Noble Energy Incorporated to BB- from BB+.
Noble Energy, Incorporated is a company engaged in hydrocarbon
exploration. It is headquartered in Houston, Texas. The company is
ranked 583rd on the Fortune 1000. The company was known as Noble
Affiliates, Inc. until 2002.
NORTHERN OIL: S&P Lowers ICR to 'CCC+' on Lower Commodity Prices
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.–based
crude oil and natural exploration and production (E&P) company
Northern Oil and Gas Resources to 'CCC+' from 'B-'. The outlook is
negative.
"Our downgrade reflects the company's tight liquidity and history
of distressed exchanges. The recent collapse in oil prices
increases the risk that the company's reserve-based lending (RBL)
facility size could be reduced at its next bank redetermination,
which could further strain its limited capacity. Northern Oil and
Gas's $800 million credit facility currently has approximately 73%
drawn at $580 million. Still, we note the company's borrowing base
is primarily backed by proved developed reserves and expect the
company to generate cash in 2020 through its hedging program," S&P
said.
The negative outlook reflects the elevated risk that the company's
RBL size could be reduced at its second quarter redetermination,
further reducing tight availability. The outlook also reflects
current capital market conditions and the trading levels of
Northern Oil and Gas's debt as well as the company's history of
distressed exchanges. S&P currently expects FFO to debt in the low
30% to high 20% range over the next two years.
"We could lower the rating if the company's liquidity profile
deteriorated, most likely due to a reduction the company's
borrowing base. In addition, we could lower the rating if the
company engaged in a debt transaction that we would view as
distressed," S&P said.
S&P could revise the outlook back to stable should the company pay
down what's outstanding on its RBL. This would most likely take
place if commodity prices improved materially.
O'HARE FOUNDRY: Seeks to Extend Exclusivity Period to April 30
--------------------------------------------------------------
O'Hare Foundry Corporation asked the U.S. Bankruptcy Court for the
Eastern District of Missouri to extend the exclusivity period for
filing its plan and disclosure statement through April 30, and the
period to solicit acceptances for the plan through July 5.
Currently, O'Hare Foundry is working with a consultant to improve
its pricing and profitability, and continues to work on the
financing necessary to its reorganization. The company wants to
have those price increases implemented and financing in place
before determining the exact terms of its plan. In addition, the
company recently devised a plan for eliminating an unprofitable
line of work, which will enable it to liquidate some of its
equipment and reduce its space requirements, allowing it to
eliminate substantial occupancy expense and increase its
profitability.
About O'Hare Foundry Corporation
Established in 1921, O'Hare Foundry Corporation --
http://www.oharefoundry.com-- manufactures sand castings from
brass, brass and bronze alloys, and aluminum alloys.
O'Hare Foundry Corporation sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Mo. Case No. 19-41834) on March
27, 2019. At the time of the filing, the Debtor estimated assets
of between $1 million and $10 million and liabilities of between $1
million and $10 million. The case is assigned to Judge Charles E.
Rendlen III.
The Debtor tapped Danna McKitrick, P.C. as legal counsel; Tueth,
Keeney, Cooper, Mohan, and Jackstadt, PC as special counsel; and
Stark & Company, P.C. as accountant.
OBSIDIAN ENERGY: Ernst & Young LLP Raises Going Concern Doubt
-------------------------------------------------------------
Obsidian Energy Ltd. filed with the U.S. Securities and Exchange
Commission its annual report on Form 40-F, disclosing a net and
comprehensive loss of CAD788 million on CAD387 million of revenues
for the year ended Dec. 31, 2019, compared to a net and
comprehensive loss of CAD305 million on CAD408 million of revenues
for the year ended in 2018.
The audit report of Ernst & Young LLP states that the Company may
need additional liquidity and has stated that substantial doubt
exists about the Company’s ability to continue as a going
concern.
The Company said, "As at December 31, 2019, Obsidian Energy was in
compliance with all financial covenants on our syndicated credit
facility and senior notes and had sufficient liquidity under our
syndicated credit facility. Subsequent to December 31, 2019, the
Company has negotiated to eliminate our Debt to Adjusted EBITDA
covenant, thus Management's going concern assessment at December
31, 2019 focused on liquidity capacity over the next 12 months.
Based on strip pricing as of March 27, 2020, the Company is
currently forecasting that sufficient liquidity exists under our
syndicated credit facility. Additionally, under the Company's
current forecast, sufficient liquidity exists under situations
where further potential strip price reductions occur due to a
combination of excess capacity and the ability to implement
additional proactive actions within the Company's control.
"However, due to significant commodity price volatility currently
due to the COVID-19 pandemic, potential increased production supply
from OPEC and Russia and potential lack of storage forcing
production shut-ins, future significant decreases to commodity
prices may occur which could impact future cash flows and cause
uncertainty as to whether the Company has sufficient liquidity
throughout 2020. As a result, the Company may be required to
obtain additional financing to increase liquidity, which is
uncertain at this time. As such, there is a material uncertainty
that casts substantial doubt on the Company's ability to continue
as a going concern. These financial statements do not include
adjustments in the carrying values of the assets and liabilities
that would be necessary if the going concern assumption were not
appropriate. Such adjustments could be material."
The Company's balance sheet at Dec. 31, 2019, showed total assets
of CAD1,904 million, total liabilities of CAD812 million, and a
total shareholders' equity of CAD1,092 million.
A copy of the Form 40-F is available at:
https://is.gd/fSZx7F
Obsidian Energy Ltd. is an exploration and production company and
is governed by the laws of the Province of Alberta, Canada. The
Company operates in one segment, to explore for, develop and hold
interests in oil and natural gas properties and related production
infrastructure in the Western Canada Sedimentary Basin directly and
through investments in securities of subsidiaries holding such
interests.
OCEANEERING INTERNATIONAL: S&P Cuts ICR to 'B+; Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Oceaneering
International Inc. to 'B+' from 'BB'.
At the same time, S&P lowered its issue-level rating on the
company's senior unsecured notes to 'B+' from 'BB'. The recovery
rating remains '3', indicating S&P's expectation of meaningful
(50%-70%; rounded estimate: 65%) recovery of principal in the event
of a payment default.
"We expect demand for the oilfield services sector will be hurt by
the collapse in oil prices. Following the drop in oil prices,
exploration and production (E&P) companies have announced material
reductions to capital spending and activity plans, which will
translate to less demand for oilfield services. We expect the
offshore sector will see a sharp decline in exploration activity,
postponements in reaching final investment decisions (FIDs) on new
projects, and delayed starts to certain projects that had already
been sanctioned. Furthermore, offshore producers will likely remain
more cautious in their willingness to commit capital to longer-term
projects until macroeconomic fundamentals are more stable, which
could slow any improvement in Oceaneering's revenues, margins, and
credit measures," S&P said.
The negative outlook reflects S&P's expectation that Oceaneering's
leverage metrics will remain weak in 2020 and 2021, with average
FFO to debt of about 15%, and the risk that continued low oil
prices could further hurt demand for the offshore oilfield services
sector.
"We could lower the rating if Oceaneering's leverage metrics
deteriorate, such that FFO to debt falls below 12% on a sustained
basis without a clear path to recovery. This would most likely
result from a prolonged period of weak oil prices, which would put
downward pressure on pricing and margins for Oceaneering's
services. We could also lower the rating if liquidity weakened and
we no longer considered it to be strong," S&P said.
"We could revise the outlook to stable if leverage metrics improve
ahead of our current expectations, such that FFO to debt surpasses
20% for a sustained period. This would most likely occur from a
quicker-than-anticipated recovery in oil prices and uptick in
demand for offshore services," the rating agency said.
OIL STATES: Egan-Jones Lowers Senior Unsecured Ratings to B
-----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Oil States International Incorporated to B from B+.
EJR also downgraded the rating on commercial paper issued by the
Company to B from A3.
Oil States International is an American multinational corporation.
It focuses on providing services to oil and gas companies. It is a
public company listed on the New York Stock Exchange.
OMNI BAY COLONY: Seeks to Hire Hajjar Peters as Counsel
-------------------------------------------------------
Omni Bay Colony, L.P., seeks authority from the U.S. Bankruptcy
Court for the Western District of Texas to employ Hajjar Peters,
LLP, as counsel to the Debtor.
Omni Bay Colony requires Hajjar Peters to:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor-in-Possession in the continued operation
of its business and management of his property;
b. advise the Debtor of its responsibilities under the
Bankruptcy Code and assist with such;
c. prepare and file the voluntary petition and other paperwork
necessary to commence the bankruptcy proceeding;
d. assist the Debtor in preparing and filing the required
Schedules, Statement of Affairs, Monthly Financial Reports,
the Initial Debtor Report and other documents required by
the Bankruptcy Code, the Federal Rules of Bankruptcy
Procedure, the Local Rules of this Court and the
administrative procedures of the Office of the United
States Trustee;
e. represent the Debtor in connection with adversary
proceedings and other contested and uncontested matters,
both in this Court and in other courts of competent
jurisdiction, concerning any and all matters related to
these bankruptcy proceedings and the financial affairs of
the Debtor, including, but not limited to, litigation
affecting property of the Estate, suits to avoid or
determine lien rights or other property interests of
creditors and other parties in interest, objections to
disputed claims, motions to assume or reject leases and
other executory contracts, motions for relief from the
automatic stay and motions concerning the discovery of
documents and other information relating to any of the
foregoing;
f. represent the Debtor in the negotiation and documentation
of any sales or refinancing of property of the estate, and
in obtaining the necessary approvals of such sales or
refinancing by this Court; and
g. assist the Debtor in the formulation of a plan of
reorganization and disclosure statement, and in taking the
necessary steps in this Court to obtain approval of such
disclosure statement and confirmation of such plan of
reorganization.
Hajjar Peters will be paid at these hourly rates:
Ron Satija $425
Associates $250 to $350
Paralegals $150
Prior to the filing of the bankruptcy case, Hajjar Peters received
from the Debtor the amount of $2,000, of which $1,717 was used to
pay the filing fee, leaving a retainer on hand of $283.
Hajjar Peters will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ron Satija, partner of Hajjar Peters, LLP, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Hajjar Peters can be reached at:
Ron Satija, Esq.
HAJJAR PETERS LLP
3144 Bee Caves Rd
Austin, TX 78746
Tel: (512) 637-4956
Fax: (512) 637-4958
About Omni Bay Colony
Omni Bay Colony, L.P., is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
Omni Bay Colony sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Texas Case No. 20-10178) on Feb. 3,
2020. At the time of the filing, the Debtor was estimated to have
assets of between $1 million and $10 million and liabilities of the
same range. Judge Christopher H. Mott oversees the case. Ron
Satija, Esq., at Hajjar Peters, LLP, is the Debtor's legal counsel.
OMNIQ CORP: Reports $5.3 Million Net Loss for 2019
--------------------------------------------------
OMNIQ Corp. announced its financial results for the three month and
year-end periods ended Dec. 31, 2019.
Shai Lustgarten, CEO, commented, "OMNIQ made tremendous progress
during 2019, achieving $57.2 million in revenue, with gross profit
improving by $1 million and we also reduced operating expenses
before Research and Development and Depreciation and Amortization
by $1 million. We increased our R&D investment for the continued
development of AI-Machine Vision technologies because we believe
there is a significant opportunity to capitalize on these
technologies that are essential components for the
multi-billion-dollar Supply Chain market, where we have a strong
and solid existing customer base of Fortune 500 corporations.
Additionally, we are partnering with our customers to provide a
technology that imitates the human neural network in a machine
vision engine with industry leading accuracy and a shortened
machine learning process. This is the growth engine for our
Company given our solutions' ability to improve operating
efficiencies and support applications across a broad variety of end
markets such as Public Safety, Traffic Management, Autonomous Cars,
Parking Automation and Access Control."
OMNIQ has recorded several major achievements that have transformed
the Company into an AI - Machine Vision Object Recognition leader:
- Launch of the Company's SeeCube solution which is a
comprehensive patented Vehicle Make and Color classification.
The Company's solution is currently deployed by security
authorities in the Middle East for terror prevention and
serves as the base for the "Quest Shield" package for
schools, religious centers, cultural centers and public
safety.
- Automatic Machine Identification of Containers for Logistics
Yard Management (YMS), joining forces with a multi-billion-
dollar company.
- Implementation of the Company's unique SeeTire solution for
tire identification which facilitates more efficient
inventory management and assists the collection of point of
sales data. Developed in conjunction with one of the
world's largest tire manufacturers.
- Recently acquired the IP and certain other assets of Eyepax
USA, a provider of customizable software and hardware
packages for cloud-based parking management solutions.
Establishes OMNIQ as a Prime Contractor offering an
innovative, comprehensive solution and to capture whole
project, and recurring revenue.
- "Hands Free" object recognition integrated in Google Glass.
Revolutionary development that enables workers to Machine
Read objects and characters while keeping their hands free.
"During 2019, our AI technology was implemented in Homeland
Security projects in critical areas of the Middle East as well as
in several select areas of the U.S., including the installation of
our solution at a pre-K-12 preparatory school in Florida to enhance
the safety of students and teachers. We also integrated our
vehicle recognition system with the municipal law enforcement
database of a large state. In addition to its security and safety
applications, our enhanced portfolio of patented pattern
recognition technology also captures important data for use in
parking automation and warehouse management. We're excited about
the interest we're seeing in the multi-billion-dollar markets we
participate in and believe that our AI solutions represent a
significant opportunity for growth and profitability."
"Fourth quarter revenue decreased in the overall supply chain
business which impacted gross margins. In spite of the revenue
decrease for the quarter, our adjusted EBITDA was relatively
consistent with last year's fourth quarter."
"Complementing our innovative product offering, we substantially
increased our sales team and improved our finance team and its
infrastructure allowing us to maintain real-time financial analysis
and control."
Mr. Lustgarten concluded, "We recently announced the receipt of two
large purchase orders, one from a Fortune 500 supermarket chain and
one from a logistic trucking company. These were both follow-on
orders, from companies who are continuing to operate during the
COVID-19 situation. We are encouraged by their trust and proud to
help them to serve their customers. During this unprecedented
time, we are managing the business carefully, but given the
critical nature of our services, despite the difficult situation
the world is facing, we continue to see strong interest around our
solutions. The current situation highlights the importance of
hands-free, automated solutions to public safety and our solutions
also provide an effective and cost saving alternative to drive
supply chain efficiencies. First and foremost, we are prioritizing
the safety of our employees, partners and customers and have
implemented protocols to minimize risk in this difficult time. I
would like to thank our employees for their devotion and loyalty
and thank all shareholders and friends of the Company for their
support. We wish everybody health and prosperity and a quick
return to normal days as soon as possible."
Full Year 2019
For the year ended Dec. 31, 2019, OMNIQ reported revenue of $57.2
million as compared to $56.2 million in the prior year. The
increase was primarily related to growth in the sales of image
processing solutions. Gross Profit increased by approximately $1
million to $14 million in 2019, compared to $13 million in 2018.
The increase was primarily related to the inclusion of revenues
from the Company's image processing subsidiary which has
historically had a higher gross margin. Total operating expenses
for 2019 were $16.9 million compared to $16.1 million in 2018.
While the Company reduced overhead by $1.3M in 2019 this was offset
by an increase of approximately $1.5 million in R&D expenses
compared to 2018. Management believes that investment in R&D will
lead to future growth in revenue and gross margins as the Company
becomes a leader in AI - Machine Vision technology.
Net loss attributable to common stockholders was $5.3 million, or a
loss of $1.37 per share on a full year basis, compared to a net
loss of $5.4 million, or a loss of $2.18 per share, for full year
2018.
Total stockholders' equity at Dec. 31, 2019 was $1,807,740 compared
to $2,292,602 at Dec. 31, 2018.
Fourth Quarter 2019
OMNIQ reported revenue of $11.4 million for the quarter ended Dec.
31, 2019, as compared to $13.8 million in the comparable 2018
period. The revenue decrease for the quarter ended Dec. 31, 2019
was primarily related to strong fulfillment and deliveries by the
Company's subsidiary HTS Image Processing in the fourth quarter
2018. Total operating expenses for the fourth quarter of 2019 were
$4.3 million as compared to $5.4 million in the fourth quarter last
year. The decrease in operating expenses was largely related to
non-cash stock-based compensation and professional fees related to
the Company's acquisition and integration of HTS and financing
activities in the three months ended Dec. 31, 2018.
Net loss for the quarter was $2.8 million, compared to $0.9
million, for the fourth quarter of last year. Adjusted EBITDA
(Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization) for the fourth quarter of 2019 was a loss of $1.1
million compared to Adjusted EBITDA of $1.2 million in fourth
quarter 2018.
About OMNIQ, Corp.
OMNIQ Corp. (OMQS) 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.
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 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.
ONE CALL: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------
S&P Global Ratings said it revised its outlook on One Call Corp. to
negative from stable. At the same time, S&P affirmed the long-term
issuer credit rating on One Call Corp. at 'B-'. It has also
affirmed the 'B-' issue rating and '4' recovery rating (rounded
estimate: 45%) on the company's first lien term loan, notes, and
revolver. S&P has also affirmed to 'CCC' issue rating and '6'
recovery rating (rounded estimate: 0%) on the company's unsecured
notes and second lien debt.
"One Call's business faces revenue and earnings headwinds from
COVID-19-related shelter-in-place and social-distancing measures.
We expect material volume declines in many of its product lines,
such as physical therapy, transportation, dental, and diagnostics,
as both patients and providers opt to delay certain nonessential
treatments. While the company benefits from much variability in its
cost structure, and a possible shift to virtual treatments in
certain lines, we expect earnings could decline materially over the
next couple of quarters, with recovery dependent on the depth and
duration of the pandemic," S&P said.
As of year-end, the company's liquidity position was adequate, but
it could weaken substantially throughout the year depending on the
magnitude of the pandemic's impact on the company's business. The
company benefited from its late 2019 recapitalization transaction
that materially reduced its debt position and related
debt-servicing requirements, and the firm has no near-term
maturities (the earliest material maturity is 2022). As of year-end
2019, the company had nearly full capacity on its $56.6 million
revolving credit facility (it since borrowed $17.5 million as a
precautionary measure) and $21.4 million balance-sheet cash (which
has since grown due to favorable financial results in the first
part of the first quarter of 2020). Its covenant cushion relative
to the springing first-lien leverage cushion, which only applies to
the company's revolving credit facility, was 22% as of year-end
(max leverage of 7x at year-end 2019, stepping down to 6.75x at
year-end 2020). This leaves the company with a decent liquidity
buffer to withstand S&P's expectations of likely greater than 25%
revenue declines year over year. However, depending on how severe
the declines are and how long they last, and the extent of the
company's expense- and cash-management initiatives to mitigate the
effect to the bottom line, liquidity could tighten and financial
leverage could be elevated.
The negative outlook reflects the heightened uncertainty about the
impact of the new coronavirus pandemic and related economic
slowdown on One Call's liquidity, cash flow generation, and credit
protection measures. S&P projects gross revenue declines (adjusted
for revenue-accounting standard ASC 606) of 20% to 30% for
full-year 2020, mitigated by flat-to-slightly improving margins
after deep cost cutting measures, resulting in leverage
deteriorating to almost 15x (nearing 10x excluding the preferred)
and EBITDA coverage of around 1x (including PIK interest on the
company's PIK Toggle notes and PIK preferred dividends on it's
Preferred B equity, per S&P's criteria) for the year. Despite the
strain, under this base-case scenario, the company would remain
compliant with financial covenants and has sufficient liquidity to
meet its debt-servicing requirements through the end of the year.
"We could lower our ratings at any point over the next 12 months if
we believe the company's liquidity position deteriorates
meaningfully such that we believe it will breach its revolver
covenant or if we view capital structure as unsustainable as
reflected in coverage less than 1x and leverage (excluding the
preferred) above 10x," S&P said.
"Given the current market environment, we see an upgrade as
unlikely over the next 12 months. However, we could revise the
outlook back to stable if the company demonstrates revenue and
earnings stability, resulting in sustained adequate liquidity and
credit-protection measures inching back to 2019 levels (leverage
12x including preferred and 8x excluding preferred)," the rating
agency said.
ORBSAT CORP: RBSM LLP Raises Substantial Going Concern Doubt
------------------------------------------------------------
Orbsat Corp filed with the U.S. Securities and Exchange Commission
its annual report on Form 10-K, disclosing a comprehensive loss of
$1,375,736 on $5,869,558 of net sales for the year ended Dec. 31,
2019, compared to a comprehensive loss of $1,200,479 on $5,726,572
of net sales for the year ended in 2018.
The audit report of RBSM LLP states that the Company has suffered
recurring losses from operations, generated negative cash flows
from operating activities, has an accumulated deficit that raise
substantial doubt exists about Company’s ability to continue as a
going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $2,427,312, total liabilities of $1,787,603, and a total
stockholders' equity of $639,709.
A copy of the Form 10-K is available at:
https://is.gd/lanLlv
Orbsat Corp provides services and solutions globally for
commercial, government and individual users, enabling them to
communicate, track assets and personnel, or request SOS assistance
via satellite from anywhere in the world. The Company's key
services include satellite communication solutions, emergency
location systems, high-speed satellite internet, global asset and
personnel monitoring, customized ground station systems and custom
product design. The Company provides these products and services
to customers located both in the United States and internationally
through the Company's subsidiaries, U.S. based Orbital Satcom Corp.
("Orbital Satcom") and U.K. based Global Telesat Communications
Limited ("GTCL"). The Company is based in Aventura, Florida.
OUTCOMES GROUP: S&P Alters Outlook to Negative, Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Outcomes Group
Holdings Inc. (Paradigm) to negative from stable. At the same time,
S&P affirmed its 'B' issuer credit rating on the company.
S&P believes Paradigm's revenue could decline in the second and
third quarters of 2020 in connection with COVID-19-related business
disruption.
"Our base case now anticipates Paradigm will generate flat revenue
growth in 2020, with an EBITDA margin of 10%. If the company
achieves our expectations, financial leverage and EBITDA interest
coverage would be about 7.0x and 2.0x-2.5x, respectively. However,
we believe margins could be pressured over the next 12 months as
the company adjusts to less stable operating conditions, with a
possible need to realign its cost structure," S&P said.
The negative outlook reflects heightened risk of operating
performance and cash flow disruption, resulting in credit metrics
eroding to a level unsupportive of the current rating.
"We could lower our rating in the next 12 months if leverage
remains elevated above 7.0x or EBITDA interest coverage falls below
2x on a sustained basis. This could result from suppressed demand
for services, which could vary based on the duration and magnitude
of COVID-19. Moderate revenue contraction coupled with EBITDA
margin compression of near 2% could likely result in adjusted
leverage well above 7.0x. We would also consider a downgrade if
liquidity becomes constrained such that it reflects a sustained
source/use deficit in the latter half of 2020," S&P said.
"We could revise the outlook to stable if Paradigm demonstrates
strong operating performance in the current challenging economy,
with organic revenue growth, stable EBITDA margins, and positive
free cash flow generation resulting in our expectation that
leverage will decline comfortably below 7x," the rating agency
said.
PAID INC: KMJ Corbin & Company LLP Raises Going Concern Doubt
-------------------------------------------------------------
PAID, Inc., filed with the U.S. Securities and Exchange Commission
its annual report on Form 10-K, disclosing a net income (available
to common shareholders) of $90,006 on $10,548,295 of net revenues
for the year ended Dec. 31, 2019, compared to a net loss (available
to common shareholders) of $11,447,989 on $9,253,450 of net
revenues for the year ended in 2018.
The audit report of KMJ Corbin & Company LLP states that the
Company has suffered recurring losses from operations and has a
working capital deficit of $397,891 and an accumulated deficit of
$67,008,347 as of December 31, 2019, which raises substantial doubt
about its ability to continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $4,991,418, total liabilities of $2,296,218, and a total
shareholders' equity of $2,695,200.
A copy of the Form 10-K is available at:
https://is.gd/5n0am3
PAID, Inc., provides online shipping and tax management tools. It
operates through three segments, Entertainment Services, Shipping
Calculator Services, and Brewery Management Software. The Company
was founded in 1986 and is headquartered in Marlborough,
Massachusetts.
PAR PETROLEUM: S&P Alters Outlook to Stable, Affirms 'B+' ICR
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on Par
Petroleum LLC and revised the outlook to stable from positive.
"Our outlook revision is driven by our expectations that Par will
produce meaningfully lower EBITDA in 2020, relative to both 2019
and our previous expectations. A sharp decline in refined products
demand will lead to lower throughput levels, particularly in the
first half of the year. Coronavirus-driven lockdowns across Par's
key markets will depress consumer and industrial demand for
gasoline, distillates, and fuel oils, resulting in lower throughput
at Par's facilities. We expect this throughput reduction will be
most acute in Hawaii--where a significant amount of Par's products
are sold to airlines, a segment that will be materially affected in
2020--and Wyoming, where Par operates in fairly small market. This
decline in demand and throughput will limit volumes sold and will
have a direct impact on the company's 2020 EBITDA generation," S&P
said.
The stable outlook reflects S&P's view that Par Petroleum's
adjusted leverage has enough cushion below the rating agency's
downgrade threshold to withstand the expected EBITDA decline and
financial uncertainty over the next several quarters.
"We could lower the rating if financial performance worsened and
leverage increased above 4.5x on a sustained basis or if leverage
metrics at the parent, Par Pacific Holdings, deteriorated," S&P
said.
"While unlikely at this time, we could raise the ratings if the
current downcycle were shorter or less severe than expected and if
Par managed to increase both its size and diversification levels
while sustaining leverage below 3x. In addition, in order to raise
the ratings, we would expect Par to realize increased stability due
to cash flows increasing from the midstream and retail segments,"
the rating agency said.
PBF ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by PBF Energy Incorporated to BB- from BB+.
PBF Energy Inc. is a petroleum refiner and supplier of unbranded
transportation fuels, heating oils, lubricants, petrochemical
feedstocks, and other petroleum products.
PDC ENERGY: S&P Affirms 'BB' Issuer Credit Rating, Outlook Neg.
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term issuer credit rating
and senior unsecured issue-level rating on exploration and
production (E&P) company PDC Energy Inc.; the outlook is negative.
The drop in oil prices will result in weaker-than-expected
financial measures for the current rating.
The negative outlook reflects the significant decline in S&P's oil
price assumptions due to the unprecedented reduction in demand
stemming from the coronavirus pandemic, as well as the cessation of
OPEC's (and others') production limits and the resulting price war
between Saudi Arabia and Russia. In particular, S&P expects crude
oil prices to be significantly lower on average in 2020, including
WTI at $25 per barrel and Brent at $30 per barrel. Therefore, S&P
expects PDC's financial measures to weaken this year before
recovering along with the rating agency's price assumptions in
2021. Specifically, S&P expects the company's funds from operations
(FFO) to debt to average around 45% in 2020, before materially
improving in 2021, when the rating agency forecasts average prices
of $45 per barrel for WTI. S&P also assumes PDC will initiate cost
reductions and moderate the pace of capital spending to maintain
its balance sheet.
"The negative outlook on PDC reflects weakening financial measures
resulting from lower hydrocarbon prices and weaker demand.
Additionally, the outlook takes into account weak capital markets
in which we expect oil and gas companies will face challenges when
attempting to access to the markets. However, PDC has relatively
low debt levels, adequate liquidity, and no immediate need to
access the capital markets, all of which currently supports the
rating," S&P said.
S&P could lower the rating if FFO to debt dropped below 45% for a
sustained period or if liquidity weakened. This could occur if oil
and natural gas prices remain below $25 per barrel (bbl) and
$2.00/mmBtu for an extended period and the company does not reduce
its capital spending.
"We could return the outlook to stable if the company's FFO to debt
is comfortably above 45% while maintaining at least adequate
liquidity. Such a scenario could occur if hydrocarbon prices
increase and the company continues to align capital spending with
cash generation," S&P said.
PG&E CORP: Gets OK to Expand Scope of Jenner & Block's Employment
-----------------------------------------------------------------
PG&E Corporation and Pacific Gas and Electric Company obtained an
order from the U.S. Bankruptcy Court for the Northern District of
California approving their supplemental application to employ
Jenner & Block LLP.
The supplemental application sought to amend the court's employment
order issued on April 24, 2019, to further clarify and modify
Jenner & Block's employment in three respects:
(1) The 2019 rate structure provided for in the engagement
agreement dated Jan. 22, 2018 between Debtors and Jenner & Block
expired effective as of Dec. 31, 2019. The 2019 rate structure
involved a 15 percent discount from the firm's standard 2018 rates,
along with certain additional volume discounts. Recently, the firm
and the Debtors negotiated a new rate structure under which the
firm will continue to use its 2018 rate structure but without a
percentage or volume discount off that rate structure. The
following summarizes the expected difference between the 2019 rate
structure and 2020 rate structure as to each category of billing
professionals:
Estimated Blended Rate
2019 Rate 2020 Rate
Position Structure Structure
-------- --------- ---------
Partners $785 $881
Special Counsel/Associates $490 $586
Attorney Total $586 $669
Paralegals $292 $323
All Timekeepers $572 $656
Debtors and Jenner & Block have agreed that the 2020 rate structure
will take effect as of Feb. 1, 2020 and will expire on Dec. 31,
2020. The 2020 rate structure constitutes an approximately 15
percent discount off of Jenner & Block's customary rates in effect
as of Jan. 1, 2020.
(2) Jenner & Block will provide additional services under the
same terms described in the initial employment application and
approved in the court's April 24 order (except that the 2020 rate
structure will apply to any services rendered on or after Feb. 1,
2020):
* investigate, litigate, and provide strategic advice related
to an order to show cause and to an order instituting investigation
issued by the CPUC in November 2019 regarding the 2019 Public
Safety Power Shutoff events;
* conduct an investigation into metrics regarding gas
operations procedures and processes; and
* assist Debtors in litigation arising out of a fatality that
occurred in 2015 when an excavator struck a PG&E natural gas line.
For the Bakersfield litigation, Jenner & Block has agreed to cap
its fees at $75,000 for services associated with preparing an
initial case assessment and settlement analysis. Following
completion of that work, Jenner & Block will resume billing in
accordance with the fee structure approved in the court's April 24
order.
(3) Jenner & Block will provide these services on a fixed-rate
basis as contemplated by section 328(a) of the Bankruptcy Code:
* provide Debtors with legal assistance in monitoring
substantive orders, rules, policy statements, notices of proposed
rulemaking, notices of investigation, notices of technical
conferences, guidances and other official issuances of select state
and federal regulatory agencies and departments that, on their
face, create or propose to create new law applicable to PG&E, that
impose new compliance obligations on PG&E, or that would materially
alter pre-existing law applicable to, or compliance obligations of,
Debtors.
Jenner & Block has agreed to charge a fixed rate for each "agency
monitoring matter" on an entity-by-entity basis. For the U.S.
Department of Homeland Security and U.S. Department of Health &
Human Services, Jenner & Block will charge an annual fee of $32,400
($2,700 per month) each. For each of the other entities in the
initial agencies identified, the firm has agreed to charge an
annual fee of $21,600 ($1,800 per month). Additionally, for any
new matters arising from monitoring services rendered, the firm has
agreed to provide a credit equal to the lesser of: (a) 10 percent
of the value of services rendered in connection with such new
matter; and (b) the annual fee for the applicable agency monitoring
matter.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a
Fortune 200 energy-based holding company, headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric
Company, an energy company that serves 16 million Californians
across a 70,000-square-mile service area in Northern and Central
California.
As of Sept. 30, 2018, the Debtors, on a consolidated basis, had
reported $71.4 billion in assets on a book value basis and $51.7
billion in liabilities on a book value basis.
PG&E Corp. and Pacific Gas employ approximately 24,000 regular
employees, approximately 20 of whom are employed by PG&E Corp. Of
Pacific Gas' regular employees, approximately 15,000 are covered by
collective bargaining agreements with local chapters of three Labor
unions: (i) the International Brotherhood of Electrical Workers;
(ii) the Engineers and Scientists of California; and (iii) the
Service Employees International Union.
On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary,
Pacific Gas and Electric Company, filed voluntary Chapter 11
petitions (Bankr. N.D. Cal. Lead Case No. 19-30088).
PG&E Corporation and its regulated utility subsidiary, Pacific Gas
and Electric Company, said they are facing extraordinary challenges
relating to a series of catastrophic wildfires that occurred in
Northern California in 2017 and 2018. The utility said it faces an
estimated $30 billion in potential liability damages from
California's deadliest wildfires of 2017 and 2018.
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP are
serving as PG&E's legal counsel, Lazard is serving as its
investment banker and AlixPartners, LLP is serving as the
restructuring advisor to PG&E. Prime Clerk LLC is the claims and
noticing agent.
In order to help support the Company through the reorganization
process, PG&E has appointed James A. Mesterharm, a managing
director at AlixPartners, LLP, and an authorized representative of
AP Services, LLC, to serve as Chief Restructuring Officer. In
addition, PG&E appointed John Boken also a Managing Director at
AlixPartners and an authorized representative of APS, to serve as
Deputy Chief Restructuring Officer. Mr. Mesterharm, Mr. Boken and
their colleagues at AlixPartners will continue to assist PG&E with
the reorganization process and related activities. Morrison &
Foerster LLP, as special regulatory counsel. Munger Tolles & Olson
LLP, as special counsel.
The Office of the U.S. Trustee appointed an official committee of
creditors on Feb. 12, 2019. The Committee retained Milbank LLP as
counsel; FTI Consulting, Inc., as financial advisor; Centerview
Partners LLC as investment banker; and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
On Feb. 15, 2019, the U.S. trustee appointed an official committee
of tort claimants. The tort claimants' committee is represented by
Baker & Hostetler LLP.
PH BEAUTY: Moody's Cuts CFR to Caa1, Outlook Negative
-----------------------------------------------------
Moody's Investors Service downgraded pH Beauty Holdings III, Inc.'s
Corporate Family Rating to Caa1 from B3 and its Probability of
Default rating to Caa1-PD from B3-PD. Moody's also downgraded the
company's first lien secured revolving credit facility and first
lien tern loan to B3 from B2, and its second lien term loan to Caa3
from Caa2. The rating outlook is negative.
The downgrade reflects Moody's view that pH Beauty will generate
weaker than previously expected sales and earnings over the next 12
months. Sales and earnings will be challenged in the intensely
competitive and crowded cosmetic accessories and facial skin care
beauty categories. In addition, pH Beauty has a limited track
record at its current operating scale and the majority of its
operations were assembled through a series of acquisitions over the
last five years. pH Beauty has delivered good growth in a favorable
economic environment and through actions such as increasing
distribution.
However, the company does not have a track record of operating its
portfolio of brands through a range of economic and competitive
environments. pH Beauty will also be challenged by governmental
recommendations for social distancing in an attempt to contain the
coronavirus. While the company's major distribution channels --
drug stores and grocery stores -- remain open, recommendations for
social distancing will keep store traffic modest while increased
unemployment is reducing discretionary consumer income that can
weaken demand for the company's products. These factors will
negatively affect the company's revenue, operating earnings and
cash flow over the next 6-12 months. For the twelve months ended
September 30, 2019, debt to EBITDA was 6.9x and Moody's estimates
that soft operating performance will push financial leverage
higher.
Ratings Downgraded:
ph Beauty Holdings III, Inc
Corporate Family Rating to Caa1 from B3
Probability of Default Rating at Caa1-PD from B3-PD
Senior Secured Revolving Credit Facility to B3 (LGD3) from B2
(LGD3)
Senior Secured First Lien Term Loan to B3 (LGD3) from B2 (LGD3)
Secured Second Lien Term Loan to Caa3 (LGD5) from Caa2 (LGD5)
The ratings outlook is negative (previously stable)
RATINGS RATIONALE
The Caa1 CFR reflects pH Beauty's high financial leverage, small
scale as compared to larger competitors, and event risk related to
its majority ownership by a financial sponsor. The cosmetic
accessories and facial skin care industries are also highly
competitive, and demand for these products is vulnerable to
weakness in household income, retailers' shelf space allocation and
marketing support. Further, pH Beauty faces steep competition from
branded product companies that are significantly larger, more
diverse, financially stronger, and which have much greater
investment capacity. The rating is supported by pH Beauty's strong
brand name recognition in niche markets.
The negative outlook reflects Moody's view that the cosmetic
accessories and facial skin care categories will remain
challenging. The negative outlook also reflects Moody's view that
pH Beauty's operating performance will remain weak over the next
year and that continued revenue and earnings declines could further
weaken operating cash flow, increase financial leverage and elevate
default risk.
In terms of Environmental, Social and Governance considerations,
the most important factor for pH Beauty's ratings are governance
considerations related to its financial policies. Moody's views pH
Beauty's financial policies as aggressive given its appetite for
debt financed acquisitions. Social considerations impact pH Beauty
in that the company is largely a beauty company. The company sells
products that appeal to customers almost entirely due to "social"
considerations. To the extent such social customs and mores change,
it could have an impact -- positive or negative -- on the company's
sales and earnings.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The consumer
products sector has been one of the sectors affected by the shock
given its sensitivity to consumer demand and sentiment. More
specifically, the weaknesses in pH Beauty's credit profile,
including its exposure to multiple affected countries have left it
vulnerable to shifts in market sentiment in these unprecedented
operating conditions and the company remains vulnerable to the
outbreak continuing to spread. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety. Its action
in part reflects the impact on pH Beauty of the breadth and
severity of the shock, and the broad deterioration in credit
quality it has triggered.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if pH Beauty experiences customer
or competitor actions that pressure revenues and earnings, or if it
fails to generate positive free cash flow. Acquisitions,
shareholder distributions, earnings weakness or other actions that
prevent the company from reducing leverage, or a deterioration in
liquidity could also result in a downgrade.
An upgrade could be considered if pH Beauty demonstrates a track
record of profitable growth, reduces Moody's adjusted
debt-to-EBITDA to below 6.0x, and maintains good liquidity.
The principal methodology used in these ratings was Consumer
Packaged Goods Methodology published in February 2020.
pH Beauty is a designer of cosmetic accessories, bath accessories
and facial skin care products. Key brands include Real Techniques,
EcoTools and Freeman. The company is owned by Yellow Wood Partners
and generates roughly $244 million in annual revenues.
PINNACLE GROUP: April 28 Hearing on Disclosure Statement
--------------------------------------------------------
Judge Paul G. Hyman, Jr. has ordered that Disclosure hearing of
Pinnacle Group, Llc, Paradigm Gateway International, Inc., and
Partes Mundo, Sa, Inc., the Debtors in this case, will be on April
28, 2020 at 9:30 a.m. in United States Bankruptcy Court, 299 East
Broward Boulevard, Room 301, Ft. Lauderdale, FL 33301. The
deadline for objections to Disclosure Statement will be on April
21, 2020.
The Debtor's counsel:
Jordan L. Rappaport, Esquire
RAPPAPORT OSBORNE & RAPPAPORT, PLLC
1300 N. Federal Highway, Suite 203
Boca Raton, FL 33432
Telephone: (561) 368-2200
Facsimile: (561) 338-0350
About Pinnacle Group
Based in Sunrise, Fla., Pinnacle Group and its subsidiaries are
wholesalers of motor vehicle parts and accessories. Pinnacle
Group
and its subsidiaries sought Chapter 11 protection (Bankr. S.D.
Fla.
Lead Case No. 19-13519) on March 19, 2019. In its petition,
Pinnacle Group was estimated to have assets of $500,000 to $1
million and liabilities of $1 million to $10 million. Judge John
K. Olson oversees the case. Jordan L. Rappaport, Esq., at
Rappaport Osborne & Rappaport, PLLC, is the Debtor's bankruptcy
counsel.
PIXIUS COMMUNICATIONS: Taps Hinkle Law Firm as Special Counsel
--------------------------------------------------------------
Pixius Communications LLC received approval from the U.S.
Bankruptcy Court for the District of Kansas to hire Hinkle Law
Firm, LLC, as its special counsel.
Debtor selected the firm to wind up its 401(k) plan. Hinkle Law
Firm will be paid a flat fee of $750 for its services.
Eric Namee, Esq., the firm's attorney who will be providing the
services, disclosed in court filings that he and his firm do not
represent interests adverse to the Debtor's bankruptcy estate.
Hinkle Law can be reached through:
Eric S. Namee, Esq.
Hinkle Law Firm, LLC
1617 North Waterfront Parkway, Suite 400
Wichita, KS 67206-6639
Phone: 316-267-2000
Fax: 316-660-6003
316-630-8466
E-mail: enamee@hinklaw.com
About Pixius Communications
Pixius Communications LLC -- https://www.pixius.com/ -- is an
internet service provider in Wichita, Kansas. It offers
comprehensive solutions to its customers to meet their internet and
technology needs, where traditional services fail or do not reach.
Pixius Communications sought Chapter 11 protection (Bankr. D. Kan.
Case No. 19-11749) on Sept. 13, 2019. The Debtor was estimated to
have assets between $1 million and $10 million, and liabilities
between $10 million to $50 million. The petition was signed by
Michael Langer, manager. Hon. Robert E. Nugent is the case judge.
Klenda Austerman LLC is the Debtor's counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors in Debtor's case. The committee is represented by
Spencer Fane, LLP.
PLAINS ALL: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Plains All American Pipeline LP to BB+ from BBB+.
Plains All American Pipeline is an American publicly traded Master
limited partnership in the oil pipeline transportation, marketing,
and storage business in the United States, liquefied petroleum gas
business in Canada, and natural gas storage business in Michigan
and Louisiana.
PMHC II: Crescent Says $747,000 Loan at 90% Face Value
------------------------------------------------------
Crescent Capital BDC, Inc., has marked its $747,437 in loans
extended to PMHC II, Inc. to market at $670,824 or 90% of the
outstanding amount, as of Dec. 31, 2019, according to a disclosure
contained in Crescent's Form 10-K filing with the Securities and
Exchange Commission for the fiscal year ended Dec. 31, 2019.
Crescent provided the Company a Senior Secured First Lien Loan that
is scheduled to mature March 1, 2025. The loan charges interest at
LIBOR + 350. The weighted average current interest rate in effect
at December 31, 2019, is 5.44%.
PMHC II, Inc., is a chemicals and plastics company.
POINTE SCHOOLS, AZ: S&P Lowers 2015 Revenue Bond Rating to 'B'
--------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on the Phoenix
Industrial Development Authority, Ariz.'s series 2015 education
facility revenue bonds, issued for Pointe Schools (f.k.a. Pointe
Educational Services) to 'B' from 'B+'. The outlook is negative.
"The downgrade reflects our view of Pointe School's pressured
credit characteristics, with a significant drop in enrollment in
fall 2019 marking the third year of double-digit enrollment
declines, combined with weakening financial performance in fiscal
2020, which will lead to an operating deficit and debt service
coverage below the 1.2x covenant," said S&P Global Ratings credit
analyst Peter Murphy.
The negative outlook reflects a trend of weakened financial metrics
anticipated for fiscal 2020. The negative outlook also reflects
weak enterprise credit fundamentals with a trend of declining
enrollment. A higher rating is unlikely until management can show
signs of effectiveness by stabilizing the enrollment profile and
restoring budget balance.
S&P understands that due to the COVID-19 outbreak and given broader
public safety concerns, Arizona's governor recently extended to the
end of the school year, the directive that the state's public
schools close. Pointe had previously invested in technology for
remote online learning, and is well positioned to implement
e-learning for the duration of the closure of the physical school
sites at a manageable cost. During the period that its school sites
are not operating, Pointe will see modest budget savings in the
areas of custodial services, bus transportation, and air
conditioning. While there is a high level of uncertainty regarding
the duration and extent of the impact of the COVID-19 outbreak and
the related effects on S&P's rated charter schools' performance,
including the ability to resume classes, the rating agency
currently expects the state of Arizona will continue per-pupil
funding for fiscal 2020. S&P believes the pandemic and economic
uncertainties could hamper Pointe's fiscal 2021 budget in the event
that state funding is impaired, if enrollment does not reverse
recent declining trends, or if the school incurs additional
unexpected expenses. In S&P's view, this is a risk given Pointe's
thin liquidity, although the impact of state and federal funding,
and emergency reimbursements are unknown at this point. S&P will
closely monitor developments for potential credit effects on Pointe
and take appropriate actions as it deems appropriate.
S&P could consider lowering the rating if the fiscal 2021 budget
does not restore structural balance, and if management is unable to
reverse the long trend of enrollment declines. In addition,
although S&P thinks that Pointe has taken proactive steps to
address operating issues related to COVID-19, and the rating agency
understands it to be a global risk, it could also lower the rating
should unforeseen pressures related to the pandemic materially
affect demand, finances, or the school's trajectory.
S&P could revise the outlook to stable if Pointe is able to return
to positive financial operations, and rebuild reserves. A higher
rating is unlikely unless there was strengthening of the enterprise
profile with evidence of enrollment stabilization.
POLARIS INTERMEDIATE: S&P Alters Outlook to Neg., Affirms 'B+' ICR
------------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Polaris
Intermediate Corp. (d/b/a MultiPlan) to negative from stable. At
the same time, S&P affirmed its 'B+' issuer credit rating on the
company.
S&P also affirmed its 'B-' issue rating on MultiPlan's senior
unsecured debt and its 'B+' rating on the company's senior secured
debt. The recovery rating on the unsecured debt remains '6',
indicating S&P's expectation for negligible (0%-10%; rounded
estimate: 0%) recovery in the event of a payment default. S&P's
recovery rating on the secured debt remains '3', indicating its
expectation for meaningful (50%-70%; rounded estimate: 60%)
recovery in the event of default.
"The negative outlook reflects our expectation that business
disruption resulting from nationwide efforts to contain COVID-19
will result in top-line losses and potentially strain MultiPlan's
debt to EBITDA to rise above 7x on a sustained basis. As hospitals
across the country have canceled or postponed all elective
procedures, we expect the volume of claims that MultiPlan processes
to decline--most notably in the second quarter. However, in line
with S&P Global economists' base case for a U-shaped recovery
beginning in the second half of 2020, we anticipate revenue and
EBITDA growth by the fourth quarter of 2020," S&P said.
Before social distancing and shelter-in-place policies throughout
the U.S., MultiPlan ended fiscal-year 2019 with a mid-single-digit
revenue decline. Although the company reports to have worked
through customer implementation delays that drove the 5.6%
year-over-year loss, performance below the 2019 budget, in S&P's
view, provides MultiPlan with limited capacity for underperformance
against the current rating.
The negative outlook captures the risk to the rating as S&P
forecasts a significant drop in nonemergency and deferrable claims
revenue through the peak of COVID-19. S&P expects MultiPlan's
above-average EBITDA margins to remain in line with historical
levels, thus limiting further stress to EBITDA beyond top-line
losses. Additionally, while the company has drawn on its revolving
credit facility, S&P does not foresee any liquidity or covenant
concerns at this time. The rating agency's base case anticipates
that MultiPlan will end 2020 with leverage between 7.0x-7.5x, with
a decline below 7x by mid-2021 and EBITDA interest coverage of
2.0x-2.5x.
"We could lower our rating in the next 12 month if financial
leverage were to exceed 7x or EBITDA interest coverage falls below
2x on a sustained basis due to a more-aggressive financial policy
or deteriorating cash flow generation. We could also lower the
ratings if the company's business profile weakens as evidenced by
strained revenue development or margin compression, which could
also stem from the delay or loss of key contracts," S&P said.
"We could revise the outlook to stable if MultiPlan achieves our
growth expectations and sustains its historically strong operating
performance in the current challenging economic environment, with
organic revenue growth, stable EBITDA margins, and positive free
cash flow generation resulting in financial leverage declining
below 7x," the rating agency said.
POPULAR INC: Fitch Affirms LT IDR at BB, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Popular Inc.'s Long-Term Issuer Default
Rating at 'BB'. The Rating Outlook remains Stable.
While the ultimate economic implications of the coronavirus
pandemic are unclear and the risk to banks' financial profiles is
clearly skewed to the downside, Fitch believes these risks are
already captured in BPOP's current ratings levels. In addition,
fiscal, monetary and liquidity programs launched by U.S. federal
government are expected to mitigate the full effect on banks'
financial performance. Although asset quality and earnings may be
challenged over the Outlook Horizon, Fitch believes BPOP is
entering this stress period from a position of relative strength.
KEY RATING DRIVERS
IDRs and VRs and Senior Debt
Fitch expects that the coronavirus pandemic and associated
lockdowns in Puerto Rico will have a negative impact on the
island's economic activity in the near term. However, Fitch expects
Puerto Rico's reliance on federal transfer payments, fiscal
stimulus programs enacted by the federal government, and lower
energy prices to provide support for Puerto Rico's economy. As a
result, Puerto Rico's economy may be less impacted than the U.S.
mainland as a result of the coronavirus pandemic.
BPOP's ratings continue to be constrained by a challenging and
uncertain operating environment in Puerto Rico over the longer
term. Fitch expects that federal aid from the federal government
and rebuilding efforts will have a positive medium-term impact on
the island's economy. Additionally, Fitch believes the size of the
aid package outweighs some of the uncertainty around the timing and
amount of federal aid that will Puerto Rico will ultimately
receive. The latest approved fiscal plan from the Government of
Puerto Rico estimates total aid of approximately $82 billion
consisting of federal aid and insurance proceeds over a 15-year
time period. Longer-term prospects for the island's economy,
outside of the current Outlook horizon, depend heavily on the
effectiveness of fiscal and structural reforms.
BPOP's risk appetite is in line with its current rating level and
could limit upward rating potential for BPOP over the longer term.
Positively, BPOP has meaningfully reduced its exposure to
construction and commercial loans to SMEs in Puerto Rico over the
last several years, which were responsible for the vast majority of
BPOP's commercial net charge-offs on the island since the financial
crisis. However, BPOP has exhibited outsized growth in its U.S.
mainland CRE portfolio over the last several years. Fitch has
voiced concerns about outsized growth in CRE, particularly in
multifamily lending, due to weakening underwriting standards and
the risk stemming from overvaluation within the sector.
BPOP's financial profile has proven to be resilient despite the
challenging fiscal situation in Puerto Rico and damage stemming
from the hurricanes. Although BPOP's asset quality is weaker
relative to U.S. mainland banks, deterioration in asset quality
stemming from the hurricanes and fiscal challenges in Puerto Rico
has been minimal. Fitch expects that asset quality metrics will
likely deteriorate in the near term, with the ultimate impact on
credit losses will depend heavily on the severity and duration of
the negative economic impact of the coronavirus pandemic, and to
what degree fiscal interventions by the U.S. federal government are
able to mitigate the impact on businesses and consumers.
BPOP's capital ratios remain a rating strength and should provide
an adequate buffer to potential losses stemming from credit quality
deterioration. BPOP's CET1 ratio stood at 17.8% at YE 2019, up from
16.4% from the prior year, and is among the highest in Fitch's
rated universe in the U.S. Fitch views the company's higher capital
ratios as prudent and supportive of ratings and expects that
capital ratios may come down modestly from current levels over the
next few years through increased shareholder returns.
BPOP's earnings have been relatively stable in recent quarters and
should provide a good buffer against potential credit quality
deterioration. Fitch still expects that earnings could face
headwinds due to lower interest rates and increased provision
expenses as a result of the coronavirus pandemic.
BPOP has a solid funding profile driven by its leading deposit
franchise in Puerto Rico and a favorable loan-to-deposit ratio. The
company's loan-to-deposit ratio has decreased over the past couple
of years to 63% at YE 2019 driven in part by weak organic loan
demand in Puerto Rico and an influx of public sector deposits that
are collateralized by high quality liquid securities.
LONG- AND SHORT-TERM DEPOSIT RATINGS
Long-term deposits at BPOP's subsidiary banks are rated one notch
higher than BPOP's Long-Term IDR because U.S. uninsured deposits
benefit from depositor preference. U.S. depositor preference gives
deposit liabilities superior recovery prospects in the event of
default.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
BPOP's hybrid capital instruments issued are notched down from the
company's Viability Rating in accordance with Fitch's assessment of
each instrument's respective non-performance and relative loss
severity risk profiles, which may vary considerably.
BPOP's preferred stock and trust preferred stock rating are rated
three notches below its VR in accordance with Fitch's assessment of
the instruments' non-performance and loss severity risk profiles
for issuers with VRs in the 'bb' category.
HOLDING COMPANY
BPOP has a bank holding company structure with the bank as the main
subsidiary. The company's IDRs and VRs are equalized with those of
the operating company and bank, reflecting its role as the bank
holding company, which is mandated in the U.S. to act as a source
of strength for its bank subsidiary. Double leverage is below 120%
for the BPOP parent company.
SUPPORT RATING AND SUPPORT RATING FLOOR
The Support Rating of '5' and Support Ratings Floor of 'NF' reflect
Fitch's view that BPOP is not considered systemically important;
and therefore, the probability of support is unlikely. The IDRs and
VRs do not incorporate any support.
RATING SENSITIVITIES
IDRs and VRs and Senior Debt
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Positive rating momentum could build over time if structural and
fiscal reforms in Puerto Rico result in stabilized and improved
demographic trends, economic growth and a more favorable business
climate. Positive rating pressure could develop should BPOP exhibit
a reduced risk appetite relative to current levels, particularly if
accompanied by stable capital levels.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
A more prolonged coronavirus-related economic downturn or sustained
lockdown measures that result in a structurally weaker asset
quality and earnings performance would be negative for ratings.
BPOP's ratings would also be sensitive to changes in risk appetite
such that credit, market, or operational risk is likely to increase
over time from current levels. Negative rating pressure could
result from loan growth in excess of economic growth or increased
exposure to higher-risk loan types, particularly if accompanied by
materially weaker capital ratios. BPOP's ratings could be
negatively impacted if environmental factors such as severe weather
events that result in weaker demographic or economic growth trends
and/or sustained asset quality deterioration.
LONG- AND SHORT-TERM DEPOSIT RATINGS
The long-term deposit ratings of BPOP's subsidiary banks are
sensitive to changes in the company's Long-Term IDR. The short-term
deposit rating is sensitive to changes in the long-term deposit
rating and Fitch's assessment of BPOP's funding and liquidity
profile.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
The ratings of hybrid securities are sensitive to any change in
BPOP's Long-Term IDR or to changes in BPOP's propensity to make
coupon payments that are permitted but not compulsory under the
instruments' documentation.
HOLDING COMPANY
If BPOP became undercapitalized or increased double leverage
significantly, Fitch could notch the holding company IDR and VR
down from the ratings of the bank subsidiary. Additionally, upward
momentum at the holding company could be limited should BPOP manage
its holding company liquidity more aggressively over time evidenced
by cash coverage of less than four quarters of required cash
outlays.
SUPPORT RATING AND SUPPORT RATING FLOOR
The Support Rating and Support Rating Floor are sensitive to
Fitch's assumption around capacity to procure extraordinary support
in case of need.
BEST/WORST CASE RATING SCENARIO
Ratings of Financial Institutions 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.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Popular, Inc.: 4; Exposure to Environmental Impacts: 4
BPOP has an ESG Relevance Score of 4 for Environmental Impacts as
the impact of Hurricanes Irma and Maria have complicated the
Commonwealth of Puerto Rico's efforts to reverse outward migration,
generate sustainable economic growth, and address its fiscal and
debt imbalances, which has a negative impact on the credit profile,
and is relevant to the rating in conjunction with other factors.
PRECISION CASTPARTS: Egan-Jones Lowers Sr. Unsecured Ratings to B
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Precision Castparts Corporation to B from B+. EJR
also downgraded the rating on commercial paper issued by the
Company to B from A3.
Precision Castparts Corporation is an American industrial goods and
metal fabrication company that manufactures investment castings,
forged components, and airfoil castings for use in the aerospace,
industrial gas turbine, and defense industries.
PREGIS TOPCO: S&P Cuts ICR to 'B-' on Expectation for Lower Demand
------------------------------------------------------------------
S&P Global Ratings lowered its issuer rating to 'B-' from 'B' on
Pregis TopCo Corp. and revised the outlook to negative. At the same
time, S&P lowered its issue-level rating to 'B-' from 'B' on the
$125 million senior secured credit facility due 2024 and $614
million senior secured term loan due 2026. S&P does not rate the
$220 million second-lien term loan.
A recession in the U.S. and Europe stemming from COVID-19 could
weaken volume demand beyond S&P's expectations. S&P's economists
now believe a recession in the U.S. and Europe is likely, as the
fallout from the coronavirus is expected to meaningfully affect
consumer spending and business investment. Although the severity
and longevity of the COVID-19 pandemic remains uncertain, there is
increasing risk that reduced demand will limit Pregis' organic
revenue growth in 2020, most likely leading to significant revenue
declines. The company is entering the recessionary period with
elevated leverage because of the new debt issued as part of the
recent sponsor-to-sponsor sale of the company in 2019, and sharply
worse macroeconomic conditions could lead to deteriorating volume
demand and significantly weaker credit measures.
The negative outlook reflects the potential that S&P could lower
the rating if Pregis experiences lower revenues and free cash flow
over the next few quarters, particularly given Pregis' material
exposure to the industrial and automotive end markets.
"We could lower our rating if Pregis' free operating cash flow
remains negative with limited prospects of turning positive 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 due to high
leverage," S&P said.
"We could revise our outlook to stable if the company's end markets
rebound and we expect operating trends to be restored to levels
that support continued positive free cash flow, sufficient
liquidity, and a sustainable capital structure," the rating agency
said.
PRESTIGE HEATING: April 28 Plan & Disclosure Hearing Set
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, held a hearing to consider the motion of debtor
Prestige Heating and Air Conditioning, LLC, to conditionally
approve the Disclosure Statement.
On March 27, 2020, Judge Eduardo V. Rodriguez conditionally
approved the Disclosure Statement and established the following
dates and deadlines:
* April 21, 2020, at 5:00 p.m. is the deadline for filing and
serving written objections to confirmation of the Plan or final
approval of the Disclosure Statement.
* April 21, 2020, at 5:00 p.m. is the deadline for filing
ballots accepting or rejecting the Plan.
* April 28, 2020, at 3:30 p.m. in Courtroom 402, 4th floor, 515
Rusk, Houston, Texas, 77002 is the evidentiary hearing to consider
final approval of the Disclosure Statement and confirmation of the
Plan.
A full-text copy of the order dated March 27, 2020, is available at
https://tinyurl.com/s4d64zl from PacerMonitor at no charge.
About Prestige Heating
Prestige Heating and Air Conditioning, LLC filed Chapter 11
Petition (Bankr. S.D. Tex. Case No. 19-3529) on Sept. 23, 2019.
The Debtor is represented by Susan Tran Adams, Esq., of CORRAL TRAN
SINGH LLP.
PROFRAC SERVICES: S&P Lowers ICR to 'CCC' on Tightening Liquidity
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on ProFrac
Services LLC and its issue-level rating on the company's senior
secured debt to 'CCC' from 'B-'.
S&P expects the demand for OFS in North America to significantly
decline in 2020. E&P companies have announced significant
reductions in their spending due to the severe decline in crude oil
and natural gas prices. S&P now expects North American demand for
OFS to contract by up to 40% in 2020 before a potential modest
recovery in 2021. In particular, the rating agency believes
completions activity, ProFrac's sole line of business, will decline
precipitously because the specter of producing WTI at $25/bbl will
likely lead many companies to reconsider expanding their
production.
The negative outlook reflects ProFrac's continued liquidity
concerns amid the volatile market conditions. It also incorporates
that the company's availability under its ABL facility depends
largely on its accounts receivable and market conditions, which S&P
expects to weaken over the next 12 months. While ProFrac was able
to gain business in the first few months of 2020, S&P believes that
the expected drop in its utilization could negatively affect the
availability under itd ABL. Given its limited scale of operations,
exposure to the often erratic level of completion activity in the
North American E&P sector, and the weak capital market access for
its industry, S&P views the company's liquidity and financial
performance as highly susceptible to the decline in its markets in
2020, particularly given the weak crude oil prices and falling
capital budgets in the E&P industry.
"We could lower our rating on ProFrac if it fails to sustainably
improve its liquidity or its financial measures weaken further.
This could occur over the next 12 months if the company is unable
to reduce its outstanding ABL borrowings and market conditions
contract due to persistently weak oil and natural gas prices,
leading to lower E&P spending, reduced accounts receivable, and a
resulting decline in its borrowing base," S&P said.
"We could revise our outlook on ProFrac to stable if we expect its
liquidity to improve on a sustained basis. This would likely occur
due to an increase in the size of its ABL facility combined with
our expectation for higher fleet utilization rates that would
support improving cash flows and debt repayment. The company could
also improve its fleet utilization and increase its accounts
receivable if crude oil prices substantially improve and the
companies in the E&P sector increase their completions activity,"
the rating agency said.
PYXUS INTERNATIONAL: S&P Lowers ICR to 'CCC-'; Outlook Negative
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
tobacco leaf merchant Pyxus International Inc. to 'CCC-' from
'CCC'. The outlook is negative. At the same time, S&P lowered its
issue-level ratings on the company's $60 million asset-based
lending (ABL) facility due January 2021 to 'B-' from 'B', on its
first-lien secured notes due April 2021 to 'CCC' from 'CCC+', and
on its second-lien notes due July 2021 to 'CC' from ' CCC-'.
The negative outlook reflects S&P's view that a debt restructuring
or a distressed exchange appears inevitable within six months due
to persistent operating challenges and the looming maturity of its
first- and second-lien notes.
The downgrade reflects increased refinancing risk as a result of
near-term debt maturities, for which an orderly refinancing appears
unlikely due to the current economic disruption caused by the
COVID-19 pandemic. The downgrade follows Pyxus' announcement that
the company has appointed financial and legal advisers for a
potential restructuring of the group's capital structure. S&P
believes that the company is considering a range of strategic,
operational, and financial alternatives, which may include a sale
of the business or a recapitalization of the credit facilities.
Although the company has not provided any indications of the
potential timeline of the review process, S&P believes it will
likely occur in the coming months given the company's near-term
maturities. Specifically, its $60 million ABL facility is already
current and matures in January 2021. The company's $275 million
first-lien secured notes are due in April 2021, and the $635
million (as of March 31, 2019) second-lien notes are due in July
2021.
"The negative outlook on Pyxus reflects our view that the company
might be unable to refinance its capital structure and that a
default is imminent in the coming quarters," S&P said.
"We could lower our ratings on Pyxus if we expected a default to be
a virtual certainty. This could occur if the company did not make
significant progress toward refinancing or faced a payment default
or a liquidity crisis. Given its continuously weak operating
trends, declining liquidity, and negative cash flows, we believe
the company could default on its payments or seek to restructure
its debt to right-size its capital structure. We could also lower
the rating if the company announced a restructuring transaction or
a distressed exchange," S&P said.
Absent a capital injection that enables the company to refinance
its debt while making lenders whole, an upgrade that avoids a
default is highly unlikely.
QUIDDITCH ACQUISITION: S&P Lowers ICR to 'CCC+'; Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on fast casual
restaurant franchisor and operator Quidditch Acquisition Inc.
(Qdoba) to 'CCC+' from 'B-'. The outlook is negative. At the same
time, S&P lowered its issue-level rating on its senior secured
credit facilities to 'CCC+'. The recovery rating remains '3'.
The downgrade reflects S&P's view that Qdoba's capital structure is
potentially unsustainable this fiscal year as cash flow and
profitability prospects have weakened significantly, while
liquidity is rapidly deteriorating.
The negative outlook reflects the heightened uncertainty regarding
the impact and duration of the coronavirus pandemic and ensuing
recession on Qdoba's financial position. Prolonged crowd avoidance
and social distancing mandates beyond S&P's expectation could
affect the company's ability to recover operationally.
"We could lower our rating on Qdoba if we believe there is an
increased risk of a default in the next 12 months. This could occur
if the company's performance does not rebound in line with our
expectation such that we anticipate a liquidity shortfall. We could
also lower the rating if a financial covenant violation appears
increasingly likely or if we believe the likelihood of a below-par
repurchase materially increases," S&P said.
"We could raise our rating on Qdoba or revise our outlook to stable
if performance rebounds following the pandemic, resulting in an
improved liquidity position and we expect sustained positive free
operating cash flow (FOCF). To raise the rating, we would also need
to believe below par debt repurchases are unlikely," the rating
agency said.
QURATE RETAIL: S&P Lowers ICR to 'BB-'; Outlook Negative
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Qurate
Retail Inc. to 'BB-' from 'BB'. The outlook is negative. S&P also
lowered its issue-level rating on subsidiary QVC Inc.'s secured
debt to 'BB+' from 'BBB-'. The recovery ratings remain '1'.
"The downgrade reflects our view of Qurate Retail Inc.'s weakened
business prospects amid a recessionary environment. Our economists'
expectation for a 1.4% decline in consumer spending and sagging
employment this year will create hurdles for Qurate as it attempts
to recover from a deteriorating performance in 2019. Qurate's
consolidated revenues declined each quarter on a year-over-year
basis on execution issues across several product categories,
including fashion and beauty, as well as difficulties integrating
HSN Inc., which it acquired more than two years ago. We now
anticipate a significant revenue decline in 2020, which would cause
leverage to spike above 5x. For 2021, we expect a modest recovery
in performance will improve leverage. However, this improvement
would come against the backdrop of a challenging macroeconomic
environment and intensified competitive pressures that could lead
to a higher promotional cadence to sustain sales. As a result, we
have revised our business risk profile assessment to fair from
satisfactory," S&P said.
The negative outlook reflects the uncertainty regarding the depth
and severity of an economic recession that could affect Qurate's
ability to improve credit metrics in 2021.
"We could lower the rating if we no longer believe Qurate can
reduce leverage to less than 5x in 2021 or if we believe Qurate
would have difficulty securing a waiver or amendment under adequate
terms, if required. Additionally, we could lower the rating if we
believe Qurate's competitive standing has weakened or cord-cutting
is greater than we expect, which could lead to depressed sales and
profits," S&P said.
"We could revise the outlook to stable if we see a clear path to
sustained healthy sales and profit growth such that leverage
improves to less than 5x. We would also need to be convinced that
Qurate is reducing its exposure to the secular risk of declining TV
viewership by broadening its content distribution away from
traditional TV," the rating agency said.
REALNETWORKS INC: KPMG LLP Raises Substantial Going Concern Doubt
-----------------------------------------------------------------
RealNetworks, Inc., filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss
(attributable to RealNetworks) of $20,001,000 on $172,113,000 of
net revenue for the year ended Dec. 31, 2019, compared to a net
loss (attributable to RealNetworks) of $24,989,000 on $69,510,000
of net revenue for the year ended in 2018.
The audit report of KPMG LLP states that the Company has suffered
recurring losses from operations and anticipates negative operating
cash flows that raise substantial doubt about its ability to
continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $159,754,000, total liabilities of $121,481,000, and a total
equity of $38,273,000.
A copy of the Form 10-K is available at:
https://is.gd/MH64xj
RealNetworks, Inc., provides network-delivered digital media
applications and services to manage, play, and share digital media.
RealNetworks was founded in 1994 and is headquartered in Seattle,
Washington.
REDWOOD TRUST: Egan-Jones Lowers Senior Unsecured Ratings to BB-
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Redwood Trust Incorporated to BB- from BB+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
Based in California, Redwood Trust, Inc. is an internally-managed
specialty finance company focused on making credit-sensitive
investments in residential loans and other mortgage-related assets,
as well as residential mortgage banking activities.
REFLECT SCIENTIFIC: Sadler Gibb Raises Going Concern Doubt
----------------------------------------------------------
Reflect Scientific, Inc., filed with the U.S. Securities and
Exchange Commission its annual report on Form 10-K, disclosing a
net loss of $195,588 on $1,609,241 of revenues for the year ended
Dec. 31, 2019, compared to a net loss of $249,523 on $1,551,985 of
revenues for the year ended in 2018.
The audit report of Sadler, Gibb & Associates, LLC states 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.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $1,078,780, total liabilities of $525,754, and a total
shareholders' equity of $553,026.
A copy of the Form 10-K is available at:
https://is.gd/sTozWo
Orem, Utah-based Reflect Scientific, Inc., is engaged in the
manufacture and distribution of innovative products targeted at the
life science market. Customers include hospitals and diagnostic
laboratories, pharmaceutical and biotech companies, universities,
government and private sector research facilities, and chemical and
industrial companies.
RHC LLC: Exclusivity Period Extended Until April 24
---------------------------------------------------
Judge Caryl Delano of the U.S. Bankruptcy Court for the Middle
District of Florida extended to April 24 the deadline during which
RHC, LLC can file a Chapter 11 plan and disclosure statement.
The company has the exclusive right to file a plan and to solicit
votes from creditors on the plan until April 24.
RHC has entered into agreements to sell its two real properties in
Naples, Fla. The company said that once the properties are sold,
all issues will be resolved in its bankruptcy case without the need
to file a plan, and that it will seek a dismissal of the case
immediately after the closing of the sale.
The sale of the properties is scheduled to close on April 15.
About RHC LLC
Founded on March 13, 2018, RHC, LLC, is a holding company engaged
in real estate development, operations and ownership in Naples,
Fla. It owns the real properties located at 1800 Snook Drive and
1660 Dolphin Court, Naples, Fla.
RHC sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 19-11853) on Dec. 17, 2019. At the time
of the filing, the Debtor was estimated to have assets of between
$1 million and $10 million and liabilities of the same range. The
Debtor tapped Dal Lago Law as its legal counsel.
RITE AID: Egan-Jones Lowers Senior Unsecured Ratings to CC
----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Rite Aid Corporation to CC from CCC.
Rite Aid Corporation is a drugstore chain in the United States. It
is headquartered in Camp Hill, Pennsylvania, near Harrisburg.
SEACOR HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to CCC
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by SEACOR Holdings Incorporated to CCC from B-. EJR
also downgraded the rating on commercial paper issued by the
Company to C from B.
SEACOR Holdings is a Fort Lauderdale based public company in the
marine services business. It has 5,316 employees as of 2013 and
sales of annual sales of $1.6 billion.
SERVICE CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB-
---------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Service Corporation International/US to BB- from BB.
Service Corporation International provides deathcare services
worldwide. The Company operates funeral service locations,
cemeteries, and crematoria. Service also sells prearranged funeral
services in most of its service markets.
SG BLOCKS: Whitley Penn LLP Raises Substantial Going Concern Doubt
------------------------------------------------------------------
SG Blocks, Inc., filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$6,920,540 on $2,984,835 of total revenue for the year ended Dec.
31, 2019, compared to a net loss of $4,844,021 on $8,190,712 of
total revenue for the year ended in 2018.
The audit report of Whitley Penn LLP states that the Company has
suffered recurring losses from operations and has negative
operating cash flows and has stated that substantial doubt exists
about its ability to continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $6,634,611, total liabilities of $2,274,462, and a total
stockholders' equity of $4,360,149.
A copy of the Form 10-K is available at:
https://is.gd/Ch5Jy3
SG Blocks, Inc. engages in fabricating modules for construction of
buildings in the United States. It was founded in 2007 and is
headquartered in Brooklyn, New York.
SHAE MANAGEMENT: April 21 Plan Confirmation Hearing Set
-------------------------------------------------------
On March 24, 2020, Debtor Shae Management, Inc., filed with the
U.S. Bankruptcy Court for the Northern District of Georgia, Rome
Division, a Plan of Reorganization and Disclosure Statement for
Plan of Reorganization.
On March 27, 2020, Judge Paul W. Bonapfel conditionally approved
the Disclosure Statement and established the following dates and
deadlines:
* April 16, 2020, is fixed as the last day for filing written
acceptances or rejections of Debtor’s Plan.
* April 16, 2020, is fixed as the last day for filing and serving
written objections to the Disclosure Statement or to confirmation
of the Plan.
* April 21, 2020, at 10:00 a.m. in Courtroom 1401, U.S.
Courthouse, 75 Ted Turner Drive, Atlanta, Georgia 30303 is the
hearing to consider any objections to the Disclosure Statement, to
consider confirmation of the Plan, and to determine the value of
collateral and extent to which claims are secured.
A full-text copy of the order dated March 27, 2020, is available at
https://tinyurl.com/ws5w4j6 from PacerMonitor at no charge.
Attorneys for the Debtor:
JONES & WALDEN, LLC,
Cameron M. McCord
699 Piedmont Ave., NE
Atlanta, Georgia 30308
Tel: (404) 564-9300
E-mail: cmccord@joneswalden.com
About Shae Management
Shae Management, Inc., a property management company in Dalton,
Ga., filed a petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Case No. 19-42833) on Dec. 2, 2019. In the
petition was signed by Mark A. Dyer, president, the Debtor was
estimated to have $1 million to $10 million in both assets and
liabilities. Cameron M. McCord, Esq., at Jones & Walden, LLC, is
the Debtor's counsel.
SIMON PROPERTY: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Simon Property Group Inc. to BB+ from BBB.
Simon Property Group, Inc. is an American commercial real estate
company, the largest retail real estate investment trust, and the
largest shopping mall operator in the US.
SOLERA PARENT: S&P Alters Outlook to Negative, Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Solera Parent Holding LLC
to negative from stable and affirmed all of its ratings on the
company, including its 'B-' issuer credit rating.
The weaker global growth and disruption stemming from the
coronavirus pandemic will likely materially impair Solera's revenue
performance. While the company has a material base of flat-fee
recurring revenue, the risk that its transaction-based revenue
streams will decline exacerbates its weakening organic revenue
growth rates in the low-single digit percent area over the past few
years.
"We estimate that approximately one-third of Solera's revenue is
tied to its transaction volume, which we expect to decline in
fiscal year 2021 (ending March 2021). The company's transaction
volume is primarily related to the number and value of
auto-accident claims made. We expect that the number of accident
claims will likely decline materially, at least in March and April
2020, mainly because people are driving fewer miles due to the new
social distancing mandates to stem the spread of the coronavirus,"
S&P said.
The negative outlook reflects S&P's expectation for a material and
potentially unrecoverable decline in Solera's transaction-based
revenue over the next 12 months due to weaker economic growth
stemming from the efforts to contain the coronavirus outbreak. This
will likely keep the company's S&P-adjusted leverage elevated at
about 13x (including preferred stock) and lead it to maintain a
weak FOCF-to-debt ratio in the 0%-3% range. The outlook also
incorporate that the company's $300 million revolver will expire in
less than 12 months.
"We could lower our rating on Solera if its FOCF generation turns
negative or its liquidity weakens due a worse-than-expected
operational performance or a steeper-than-anticipated decline in
its transaction-based revenue. The company's elevated adjusted
leverage and weakening FOCF would likely lead us to believe that
its capital structure is unsustainable. This scenario could occur
due to protracted economic weakness related to the pandemic or key
customer losses or business disruptions related to management's
global restructuring efforts," S&P said.
"We could revise our outlook on Solera to stable if its revenue
expands as the conditions in its macroeconomic environment improve
and the company is able to increase its EBITDA margins to the
mid-30% area over time such that we expect its adjusted leverage to
trend toward 10x and its FOCF-to-debt ratio to remain above at
least 3%," the rating agency said.
SONIC AUTOMOTIVE: Egan-Jones Lowers Senior Unsecured Ratings to B
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Sonic Automotive Incorporated to B from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
C from B.
Based in Charlotte, North Carolina, Sonic Automotive is the
fifth-largest automotive retailer in the United States. The
company's founder and Executive Chairman O. Bruton Smith are also
the Executive Chairman and director of Speedway Motorsports.
SOUTH COAST BEHAVIORAL: Trustee Taps Ringstad & Sanders as Counsel
------------------------------------------------------------------
Thomas Casey, the Chapter 11 trustee for South Coast Behavioral
Health, Inc., received approval from the U.S. Bankruptcy Court for
the Central District of California to hire Ringstad & Sanders LLP
as his legal counsel.
Ringstad will provide these services:
(1) provide general legal advice on matters relating to the
administration of Debtor's Chapter 11 case;
(2) undertake legal analysis and prepare legal papers;
(3) assist the trustee in the preparation of schedules and
regular Chapter 11 status reports;
(4) advise the trustee on legal issues that may arise in
connection with the operations of Debtor's business;
(5) commence actions and provide legal advice regarding the
marshalling and protection of Debtor's assets for the benefit of
creditors;
(6) investigate and prosecute preference, turnover or
fraudulent conveyance actions which may exist for the benefit of
creditors;
(7) assist the trustee in the preparation of a bankruptcy plan
and disclosure statement should the trustee determine that course
of action, or in the alternative, assist in the sale or disposition
of Debtor's business; and
(8) object to claims, if any, after review by the trustee.
The firm will be paid at these rates:
Attorneys 2020 Rates
--------- ----------
Todd Ringstad $695
Nanette Sanders $695
William N. Burd (Of Counsel) $695
Karen Sue Naylor $595
Christopher Minier $550
R. Chase Donahoo $350
Paralegals 2020 Rates
---------- ----------
Becky Metzner $195
Jaimee Zayicek $120
Ringstad neither holds nor represents any adverse interest in
connection with Debtor's bankruptcy case.
The firm can be reached through:
Todd C. Ringstad, Esq.
Karen Sue Naylor, Esq.
R Chase Donahoo, Esq.
Ringstad & Sanders LLP
4343 Von Karman Avenue, Suite 300
Newport Beach, CA 92660
Telephone: 949-851-7450
Facsimile: 949-851-6926
E-mail: todd@ringstadlaw.com
karen@ringstadlaw.com
chase@ringstadlaw.com
About South Coast Behavioral Health
South Coast Behavioral Health, Inc. -- https://www.scbh.com/ -- is
a healthcare company that specializes in the in-patient and
outpatient treatment of addicts, alcoholics, and persons dealing
with mental health issues. It offers a clinically supervised
residential sub-acute detox services, therapeutic and residential
treatment centers, intensive outpatient treatment services, and
partial hospitalization programs.
South Coast Behavioral Health sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-12375) on June
20, 2019. At the time of the filing, Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range. Judge Mark S. Wallace oversees the case.
Debtor hired Nicastro & Associates, P.C. as its bankruptcy
counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors in Debtor's case. The committee tapped Weiland Golden
Goodrich LLP as its legal counsel, and Bryars Tolleson Spires +
Whitton LLP as its financial advisor.
On Feb. 27, 2020, the U.S. Trustee appointed Thomas Casey as
Debtor's Chapter 11 trustee. Mr. Casey tapped Ringstad & Sanders
LLP as his bankruptcy counsel, and Nicastro & Associates, PC as
special counsel.
STONE OAK MEMORY: PCO Files 2nd Interim Report
----------------------------------------------
Susan N. Goodman, the Patient Care Ombudsman for Stone Oak Memory
Care, LLC, submits to the U.S. Bankruptcy Court for the Western
District of Texas her Second Interim Report.
The PCO's Observations:
-- The facility manager had resigned;
-- The census of 33 cases still the same during the first
visit;
-- There is a significant turnover of caregiver staff, but not
related to bankruptcy process;
-- The Executive Director completed her monthly review of the
kitchen area; and
-- The dry stock food stores appeared consistent.
The management team was engaged in preparing for an open house at
the end of February along with other efforts to market to the
community under its new name and management.
The PCO did not observe care decline or concern as contemplated
under 11 U.S.C. Section 333(b). Further, the PCO has been
appreciative of the timeliness and transparency reflected in
communications with the Debtor's counsel, the management company,
and the site team.
The management company leadership indicated that it would share its
facility dashboard tracking with the PCO. If that information
offers an opportunity for PCO to extend time between site visits,
the PCO will certainly consider such an option so long as the
current level of staffing and information transparency continues.
The PCO can be reached at:
Susan N. Goodman, Esq.
Pivot Health Law, LLC
P.O. Box 69734
Oro Valley, AZ 85737
Telephone: (520) 744-7061
E-mail: sgoodman@pivothealthaz.com
About Stone Oak Memory Care
Stone Oak Memory Care, LLC, which conducts business under the name
Autumn Leaves of Stone Oak, owns and operates an adult memory care
facility in Dallas, Texas.
Stone Oak Memory Care sought Chapter 11 protection (Bankr. W.D.
Tex. Case No. 19-52375) on Sept. 30, 2019 in San Antonio, Texas.
The petition was signed by Darryl Freling, president of
MedProperties Stone Oak Mgr, LL. As of the petition date, the
Debtor was estimated to have $1 million to $10 million in assets
and liabilities. Judge Ronald B. King oversees the Debtor's case.
The Debtor tapped the Law Offices of Ray Battaglia, PLLC as its
legal counsel, and HMP Advisory Holdings, LLC as its financial
advisor.
Susan N. Goodman is the patient care ombudsman for the company.
TACALA LLC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook on Tacala LLC to negative
from stable and affirmed all its ratings, including its 'B-' issuer
credit rating.
"We expect significant same-store sales declines as consumers
prepare more meals at home due to social distancing and quarantine
mandates. The outlook revision reflects our view that Tacala's
operating performance will be significantly pressured under current
conditions, as it operates drive-thru and delivery service only. We
expect sharp declines in traffic over at least the next several
weeks, though we believe that quick service restaurant (QSR)
operators are slightly less exposed to the effects of the pandemic
based on higher penetration of take-out service. Under normal
conditions, Tacala generates about 70% of its revenues via
drive-thru. Thus far, there have been no large-scale government
mandates in the U.S. to shut restaurants entirely and we do not
foresee such drastic actions being taken at either the state or
federal levels, supporting our assumption for continuing drive-thru
operations," S&P said.
The negative outlook reflects the heightened uncertainty regarding
the duration of the coronavirus pandemic and its impact on consumer
behavior and Tacala's financial condition. Prolonged crowd
avoidance and social distancing mandates beyond S&P's expectation
or mandated store closures could lead it to believe its capital
structure is no longer sustainable.
"We could lower the rating if we believe Tacala's capital structure
is unsustainable as a result of significantly deteriorated
operating performance and pressured ability to service debt
obligations. This could occur if cash burn is more severe than we
anticipate or if we no longer believe its operations can recover
from the setback caused by the coronavirus pandemic," S&P said.
"We could revise our outlook to stable once the operational threats
posed by the pandemic have subsided, if we believe sales and
profitability will rebound to around the same levels as fiscal 2019
with expected sustained positive free operating cash flow and
improving leverage. For a stable outlook, we would also need to
believe that changing consumer behaviors, as a result of the new
recessionary environment or otherwise, will not be detrimental to
Tacala's profitability," the rating agency said.
TARWATER REAL ESTATE: Hires Michael Familetti as Counsel
--------------------------------------------------------
Tarwater Real Estate Holdings, seeks authority from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Michael Familetti, as counsel to the Debtor.
Tarwater Real Estate requires Michael Familetti to:
a. provide legal advice as to duties and powers of debtor;
b. advocate the best interests of debtor, file motions,
adversaries, forms, defending creditor action of all kind,
excepting state court matters;
c. obtain confirmation of Plan, after gaining approval of
disclosure statement, and negotiation of position with
creditors and parties in interest.
Michael Familetti will be paid at the hourly rate of $235.
Michael Familetti will be paid a retainer in the amount of
$10,000.
Michael Familetti will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Michael Familetti assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estates.
Michael Familetti can be reached at:
Michael Familetti, Esq.
142 S. Park Square
Marietta, GA 30060
Tel: (770) 794-8005
About Tarwater Real Estate Holdings
Tarwater Real Estate Holdings, LLC, based in Acworth, GA, filed a
Chapter 11 petition (Bankr. N.D. Ga. Case No. 20-65242) on April 2,
2020. The Hon. Sage M. Sigler oversees the case. Michael
Familetti, Esq., serves as bankruptcy counsel to the Debtor.
TENNECO INC: Egan-Jones Lowers Sr. Unsec. Ratings to B-
-------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Tenneco Incorporated to B- from B.
Based in Illinois, Tenneco Inc. designs, manufactures, and markets
emission control and ride control products and systems for the
automotive original equipment market and the aftermarket. The
Company's products include shocks and struts, shock absorbers,
mufflers, and performance exhaust products, as well as noise,
vibration, and harshness control components.
TEREX CORP: Egan-Jones Cuts Local Curr. Unsecured Rating to B
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the local
currency senior unsecured rating on debt issued by Terex
Corporation to B from BB. EJR also downgraded the rating on LC
commercial paper issued by the Company to B from A2.
Terex Corporation is an American worldwide manufacturer of lifting
and material-handling plants for a variety of industries, including
construction, infrastructure, quarrying, recycling, energy, mining,
shipping, transportation, refining, and utilities.
TIVITY HEALTH: S&P Cuts ICR to 'B'; Ratings on Watch Negative
-------------------------------------------------------------
S&P Global Ratings lowered Franklin, Tenn.-based Tivity Health
Inc.'s issuer credit rating and its first-lien credit facility
issue rating to 'B' from 'B+'. At the same time, S&P placed all
ratings on CreditWatch with negative implications.
"The downgrade reflects our expectation that temporary closures of
the fitness network within Tivity's healthcare unit due to the
spread of the coronavirus and reduced demand in their nutrition
segments will result in S&P Global Ratings-adjusted leverage to
remain above our previous downgrade threshold of 5.0x in 2020.
Additionally, lower-than-anticipated earnings resulting from the
spread of the coronavirus could increase leverage and tighten
headroom as its total net leverage maintenance covenant steps down
to 5.25x on Dec. 30, 2020, from 5.75x. With that said, we
anticipate Tivity will seek to amend its credit agreement to
provide more cushion under its covenants to accommodate near term
pressure," S&P said.
S&P expects to resolve the CreditWatch placement within the next 30
to 90 days upon review of the company's first-quarter financial
results and covenant headroom, its response to the weak U.S.
macroeconomic conditions, the status its managed care providers, as
well as the demand for its fitness and nutrition products.
"Furthermore, it indicates at least a one-in-two chance that we
could lower the rating by one or more notches over the next 90
days. Over that time horizon, we will refine our view of the
company's liquidity position, including our forecast for free
operating cash flow and covenant headroom," S&P said.
TRANSALTA CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB
----------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by TransAlta Corporation to BB from BB+.
TransAlta Corporation is an electricity power generator and
wholesale marketing company headquartered in Calgary, Alberta,
Canada. It is a privately owned corporation and its shares are
traded publicly. It operates over 70 power plants in Canada, the
United States, and Australia.
TRUE RELIGION: Case Summary & 30 Largest Unsecured Creditors
------------------------------------------------------------
Lead Debtor: True Religion Apparel, Inc.
1888 Rosecrans Ave.
Manhattan Beach, CA 90266
Business Description: Founded in Los Angeles, California in 2002,
True Religion Apparel, Inc. and its
affiliates design, market, sell, and
distribute premium fashion apparel,
centered on its core denim products using
the brand names "True Religion" and "True
Religion Brand Jeans." The Company's
products are distributed through wholesale
and retail channels and through the website
at www.truereligion.com. On a global basis,
as of the Petition Date, the Company had
87 retail stores and over 1,000 employees.
Chapter 11 Petition Date: April 13, 2020
Court: United States Bankruptcy Court
District of Delaware
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
True Religion Apparel, Inc. (Lead Debtor) 20-10941
TRLG Intermediate Holdings, LLC 20-10942
True Religion Sales, LLC 20-10943
TRLGGC Services, LLC 20-10944
Guru Denim LLC 20-10945
Judge: Hon. Christopher S. Sontchi
Debtors'
Bankruptcy
Counsel: Justin R. Alberto, Esq.
COLE SCHOTZ P.C.
500 Delaware Avenue, Suite 1410
Wilmington, Delaware 19801
Tel: (302) 652-3131
(302) 651-2006
Fax: (302) 652-3117
Email: jalberto@coleschotz.com
- and -
Seth Van Aalten, Esq.
1325 Avenue of the Americas, 19th Floor
New York, New York 10019
Tel: (212) 752-8000
Fax: (212) 752-8393
Email: svanaalten@coleschotz.com
- and -
Michael Trentin, Esq.
Court Plaza North
P.O Box 800
25 Main Street
Hackensack, New Jersey 07601
Tel: (201) 489-3000
Fax: (201) 489-1536
Email: mtrentin@coleschotz.com
Debtors'
General
Corporate
Counsel: Arik Preis, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
New York, New York
Tel: (212) 872-1000
Fax: (212) 872-1002
Email: apreis@akingump.com
– and –
Kevin M. Eide, Esq.
2001 K Street, N.W.
Washington, D.C. 20006
Tel: (202) 887-4000
Fax: (212) 887-4288
Email: keide@akingump.com
Debtors'
Financial
Advisor: PROVINCE, INC.
Debtors'
Real Estate
Advisor: RETAIL CONSULTING SERVICES, INC. D/B/A
RCS REAL ESTATE ADVISORS
Debtors'
Interim
Chief
Financial
Officer: RICHARD LYNCH
HRC ADVISORY, LP
Debtors'
Claims &
Noticing
Agent: STRETTO
https://cases.stretto.com/TrueReligion
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $100 million to $500 million
The petitions were signed by Richard Lynch, interim chief financial
officer.
A copy of True Religion Apparel's petition is available for free
at PacerMonitor.com at:
https://is.gd/3yXL6Z
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. OA S.A. De C.V. Trade Debts $6,876,818
Zona Franca Internacional
Edif 2 Km 285 Carretera A
Comalapa Olocuilta
Zacatecoluca, LA Paz El Salvador
Attn: Jose Martinez
Tel: 503-2304-9988
Email: vidal.m@oa2012.com
2. Lya Group Trade Debts $3,368,514
1317 S Grand Ave
Los Angeles, CA 90015
Attn: Claudia Blanco
Tel: 213-683-1123
Email: claudiab@lyagroup.com
3. DHRUV Global Ltd. Trade Debts $3,285,406
14, Mile Stone, Delhi
Mathura Road
Faridabad, Haryana India
Attn: Sharvan Kumar
Tel: 91-0129-2256503
Fax: 91-0129-2275740
Email: atularola@dhruvglobals.com
4. Excel Kind Industrial Ltd. Trade Debts $2,826,319
Attn: Jeff H Grant & Joshua Bornstein
Constellation Place
10250 Constellation Blvd
Suite 900
Los Angeles, CA 90067
c/o Fox Rothschild LLP
Tel: 310-598-4150
Email: kenneth@excelkind.com
5. Manchester United Football Trade Debts $2,587,695
Club Limited
Corporation Service Company
1180 Avenue of the Americas
Suite 210
New York, NY 10036
c/o Mu Raml Ltd.
Tel: 800-927-9801
Email: farhad.karodia@manutd.co.uk
6. Oved Premium LLC Trade Debts $1,583,538
31 W 34th St
4th Floor
New York, NY 10001
Attn: Stephanie Brooks &
Stuart Bender
Tel: 212-563-4999
Email: stephanie@ovedapparel.com
7. Frontline Clothing Limited Trade Debts $1,510,421
6/F, 828 Cheung Sha Wan Rd
Kowloon
Hong Kong, China
Attn: Vickey Chan
Tel: 852-2659-5425
Fax: 852-2959-5400
Email: vickeychan@frontline.com.jk
8. Matrix Clothing (P) Ltd. Trade Debts $1,466,703
Plot No. 3, Udyog Vihar
Phase IV, Sec 37
Gurgaon, Haryana 122001
India
Attn: Mansoor Ali
Tel: 124-451-0512
Fax: 91-124-4510660
Email: mansoor.ali@matrixclothing.in
9. CFL Distribution Inc. Trade Debts $1,332,140
9949 Tabor Place
Santa Fe Springs, CA 90670
Attn: Lynda Wong
Tel: 852-239-9139
Fax: 028-8127-7001
Emai: mgt@cfldist.com
10. Facebook, Inc. Trade Debts $1,309,203
1601 Willow Road
Menlo Park, CA 94025
Attn: Emily Rubin
Tel: 650-847-9592
Fax: 650-543-4801
Email: payment@fb.com
11. Google, Inc. Trade Debts $950,303
1600 Ampitheatre Parkway
Mountain View, CA 94043
Attn: Drishti
Tel: 650-253-0000
Fax: 650-253-0001
Email: collections@google.com
12. QWW, Inc. DBA Quality Worldwide Trade Debts $808,858
1 Peter Canyon Ste 160
Irvine, CA 92606
Attn: Stacy Lai
Tel: 714-361-8888 Ext 104
Email: stacy@qualityworldwide.com
13. Bleckmann Belgie NV Trade Debts $713,928
Industriezone 6C
Kruishoutem, East Flanders
B-9770
Belgium
Attn: Glenn Van Melckebeke
Tel: 32(0)9 248-56-85
Email: glenn.vanmelckebeke@bleckmann.com
14. North American Trading LLC Trade Debts $693,729
827 Union Pacific Street
PMB 83256
Laredo, TX 78045
Attn: Lourdes Ramirez
Tel: 213-596-8916
Email: lramirez@yasiro.com.mx
15. Kennedy International Corp Trade Debts $649,018
20934 S Santa Fe Ave
Carson, CA 90810
Attn: Tim Kennedy
Tel: 800-225-4401
Fax: 323-269-7969;
609-409-4518
Email: tim@califame.com
16. Taskus Inc. Trade Debts $616,013
3221 Donald Douglas Loop S
Sanda Monica, CA 90405
Attn: David Oh
Tel: 646-403-6030
Email: davidoh@taskus.com/
ar@taskus.com
17. Salesforce.com, Inc. Trade Debts $580,860
One Market Street, Suite 300
San Francisco, CA 94105
Attn: Blake Ulrey
Tel: 317-524-0723
Fax: 415-901-7040
Email: billing@salesforce.com
18. Unity Inlov Trade Debts $556,118
2301 Rainer Avenue
Rowland Heights, CA 91748
Attn: Allen Lee
Tel: 861-352-4598 X 616
Email: ee@legend-formosa
19. UPS Trade Debts $428,355
28013 Network Place
Chicago, IL 60673-1280
Attn: Jeanine Adams
Tel: 800-811-1648
Email: jladams@ups.com
20. Aptos Inc. Trade Debts $404,231
945 East Paces Ferry Road
Suite 2500
Atlanta, GA 30326
Attn: Nathalie Roy
Tel: 514-428-2278
Email: nroy@aptos.com
21. A N Buying Services Trade Debts $379,608
Plot No. 60A, 2nd Floor
Sector - 18
Gurgaon/Haryana, Haryana
12201
India
Attn: Ashish Sharma
Tel: 91-124-410-8120
Fax: 91-124-427-8123
Email: sharvan@anbuying.com
22. Paramount Apparel Intl, Inc. Trade Debts $345,320
1 Paramount Drive
Bourbon, MO 65441
Attn: Heather Thomeczek
Tel: 866-274-4287
Email: jdanz@paifashion.com
23. Snell & Wilmer LLP Professional $340,121
One Arizona Center Services
Phoenix, AZ 85004
Attn: Eric Kintner
Tel: 602-382-6000
Fax: 602-382-6070
Email: ekintner@swlaw.com
24. Anthem Blue Cross Trade Debts $318,595
225 North Michigan Ave
Chicago, IL 60601
Attn: Cheryl Jackson
Tel: 888-290-9160
888-630-2583
Fax: 800-376-0247
Email: cheryl.jackson3@anthem.com
25. Erak Gumus San Ve TIC as Trade Debts $309,016
Gumus Suyu Cad Faith Sehitleri
SK No.: 3 kat 1 A1
Topkaps
Maltepe, Istanbul 34020
Turkey
Attn: Ozgenur Hacioglu
Tel: 90(212) 467 18 00
Fax: 90(212) 544 60 62
Email: ozgenur.hacioglu@erak.com
26. Apollo International Limited Trade Debts $253,574
C-48, Sector-58
Noida, Uttar Pradesh 201301
India
Attn: Mr. Pradeep Gupta
Tel: 991-044-5671
Fax: 91-124-4197222
Email: pradeepk@apolloleather.com
27. Continental Rosecrans Landlord $249,650
Aviation LP
2041 Rosecrans Avenue #200
El Segundo, CA 90245
Attn: Adreinne Adelsperger
Tel: 310-640-1520
Email: aadelsperger@continentaldevelopment.com
28. Yesim Satis Magazalari Ve Trade Debts $227,400
Tekstil FAB AS
Ankara Yolu 11
KM Guso kavsagi
Bursa, Anatolia, Marmara
16580
Turkey
Attn: Ali Pamir
Tel: 90-224-280-86
Fax: 224-331-72-22
Email: ali.pamir@negris.com.tr
29. Bhartiya International Ltd. Trade Debts $206,201
N. 27/2 Gottigere Village
Uttarhalli Hobli
Bannerghatta
Main road
Bangalore South, Kranataka
560083
India
Attn: Mr. Prakash Nair
Tel: 080-4352-4555
Fax: 91-124-4888500
Email: prakash.nair@bhartiya.com
30. Radius Point - Trade Debts $204,812
True Religion Utility ESC
1211 State Road 436
Suite 295
Classelberry, FL 32707
Attn: Allison Long
Tel: 407-567-4169
Fax: 407-604-0206
Email: along@radiuspoint.com
TUPPERWARE BRANDS: S&P Lowers ICR to 'CCC+' on Coronavirus Impact
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
Tupperware Brands Corp. (Tupperware) to 'CCC+' from 'B' to reflect
heightened refinancing risk and its belief that operating
performance for fiscal 2020 will weaken substantially as many
markets close and stay-at-home orders are prolonged, limiting the
operations of sales representatives.
Concurrent with the downgrade, S&P is lowering the issue-level
rating on Tupperware's $600 million senior unsecured notes due 2021
to 'CCC' from 'B-'. The recovery rating is '5', indicating S&P's
expectation for modest (10%-30%) recovery in the event of a payment
default.
The downgrade reflects the likelihood of further profitability and
cash flow deterioration.
"Because of the rapid spread of the coronavirus pandemic, we
believe that Tupperware will experience accelerated declines in
revenues and EBITDA for fiscal 2020, resulting in debt leverage
rising above 5x. Given social distancing requirements and
stay-at-home orders in many regions globally, sales representatives
have been limited to digital sales and virtual gatherings. We
believe this will substantially hamper sales, because the company's
products are deemed nonessential in many regions and are
discretionary. Furthermore, China, one of the company's largest
markets is still recovering from the impact of the virus and we
believe the pace of studio openings will remain slow," S&P said.
The negative outlook reflects the risk of further downgrades within
the next few months to quarters, driven by S&P's belief that a
default could occur without an unforeseen positive development in
the debt markets and a quick recovery from the pandemic fallout.
"We could lower the ratings if the company does not refinance its
notes due June 2021 with reasonable terms or if it pursues a debt
restructuring such that debt-holders receive less than par," S&P
said.
"We could raise our ratings if the company launches and completes a
refinancing that we believe will be completed in a timely manner
and with reasonable terms, and the global macroeconomic environment
shows signs of recovery from the pandemic," the rating agency said.
TWO RIVERS: Delays Form 10-K Filing Amid COVID-19 Pandemic
----------------------------------------------------------
Two Rivers Water & Farming Company filed a Current Report on Form
8-K with the Securities and Exchange Commission as a condition to
seeking relief provided by the Securities and Exchange Commission
Order under Section 36 of the Securities and Exchange Act of 1934,
as amended, granting exemptions from specified provisions of the
Exchange Act, as set forth in SEC Release No. 34-88318. By filing
the Current Report on Form 8-K, the Company is relying on the Order
to receive an additional 45 days to file its Annual Report on Form
10-K for the fiscal year ended Dec. 31, 2019. The 10-K would have
been due on March 30, 2020. With this extension the Company
expects to file the 10-K on or before May 14, 2020.
As a result of the COVID-19 outbreak and the chain reactions it has
caused throughout the world, the Company has been adversely
affected due to its location and inability to work as normal. This
has affected the efficiency of the Company's annual audit and the
overall timeline of the Company's preparation of the 10-K to be
filed with the SEC. Specifically, the corporate offices and
records of the Company are located in the Denver, Colorado
metropolitan area, which has been subject to a "stay at home" order
by the government authorities, and the expiration date of this
order us indeterminate at this time. Therefore, access to records,
many of which are in "hard copy", has been severely limited. These
records are required to be provided to the Company's auditors in
order for them to complete their work so that their opinion on the
financial statements may be included in the 10-K.
The Company has attempted to take measures to overcome the adverse
impact derived from the COVID-19 outbreak related to the annual
audit and filing of the 10-K. To the best of the Company's
knowledge, despite the challenge of the slow recovery to normal
operations under various restrictions, the Company believes that it
will be able to complete the annual audit and file the 10-K within
the additional 45 days granted by the Order on or before May 14,
2020.
The Company supplements the following risk factor due to the
uncertainty of the COVID-19 outbreak:
"The current phase of the Company's business plan requires the
investment of additional capital to support the preservation and
improvement of assets which are critical to the Company maintaining
its value for stockholders and ensuring continued performance. The
impact of COVID-19 on investors has been significant and therefore
has a direct effect on the Company at this time.
"The Company currently requires the investment of additional
capital. Efforts to raise such capital have been hampered due to
the impact of COVID-19, which includes the fact that the capital
markets have been extremely unpredictable and volatile, causing
some potential investors to refrain from making any new
investments. Given the uncertainty of the nation's and the world's
economy for the near-term, some potential investors have been
reluctant to risk any cash."
About Two Rivers
Two Rivers is a Colorado-based agribusiness company pursing a
mission to become a leading hemp-based seed-to-sale operator. The
company owns agricultural land and water rights in Southern
Colorado where it grows various strains of hemp with proprietary
genetics. Two Rivers sells biomass, processes and extracts
phytocannabinoids and is developing a consumer brand based on its
Nature's Whole Spectrum(TM) approach. To learn more about Two
Rivers, visit http://www.2riverswater.com/and
http://www.vaxaglobal.com/
As of Sept. 30, 2019, the Company had $45.50 million in total
assets, $22.45 million in total liabilities, and $23.05 million in
total stockholders' equity.
M&K CPAS, PLLC, in Houston, Texas, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
April 15, 2019, citing that the Company suffered a net loss from
operations and negative cash flows from operations, which raises
substantial doubt about its ability to continue as a going concern.
U.S. STEM CELL: Delays Filing of Form 10-K Over COVID-19 Pandemic
-----------------------------------------------------------------
Due to the outbreak of, and local, state and federal governmental
responses to, the COVID-19 coronavirus pandemic, U.S. Stem Cell
Inc. had availed itself of an extension to file its Annual Report
on Form 10-K for the year ended Dec. 31, 2019, originally due on
March 30, 2020. Specifically, the Company relied on an order
issued by the Securities and Exchange Commission on March 25, 2020
(which extended and superseded a prior order issued on March 4,
2020), pursuant to Section 36 of the Securities Exchange Act of
1934, as amended (Release No. 34-88465), regarding exemptions
granted to certain public companies. The Order allows a registrant
up to an additional 45 days after the original due date of certain
reports required to be filed with the SEC if a registrant's ability
to file such report timely is affected due to COVID-19.
The Company's operations and business have experienced disruptions
due to the unprecedented conditions surrounding the COVID-19
pandemic spreading throughout the United States and the world. As
a result of the COVID-19 epidemic, management's full efforts have
been focused on operating its business and evaluating available
funding. Further, the Company has been following the
recommendations of local health authorities to minimize exposure
risk for its team members for the past several weeks, including the
temporary closures of its corporate offices and having team members
work remotely. These disruptions include, but are not limited to,
the unavailability of key Company personnel required to prepare the
Company's financial statements for the year ended Dec. 31, 2019 due
to suggested, and mandated, social quarantining and work from home
orders, including the capacity of our auditors to complete their
audit of year ended Dec. 31, 2019. As a result, the Company's
finance team has been unable to complete the preparation of the
Company's consolidated financial statements and the Form 10-K until
after the original deadline and the permissible extension
requesting in the Company's filing of Form 12b-25.
As such, the Company relied on the Order and will be making use of
the 45-day grace period provided by the Order to delay filing of
its Annual Report. The Company plans to file its Annual Report by
no later than May 14, 2020, 45 days after the original due date of
its Annual Report.
The Company has supplemented its risk factors previously disclosed
in the Company's Annual Report on Form 10-K for the year ended Dec.
31, 2018 with the following risk factors:
"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 the effects of, and response to, the COVID-19 pandemic has
limited access to our facilities, customers, management, support
staff and professional advisors. These, in turn, have not only
negatively impacted our operations, financial condition and demand
for our services, but our overall ability to react timely to
mitigate the impact of this event. We anticipate that our first
quarter and second quarter 2020 financial results, at a minimum,
will be significantly negatively affected by COVID-19; however, the
full effect on our business and operation is currently unknown."
About U.S. Stemcell
Headquartered in Sunrise, Florida, U.S. Stem Cell, Inc. --
http://www.us-stemcell.com/-- is a biotechnology company focused
on the discovery, development and, subject to regulatory approval,
commercialization of autologous cell therapies for the treatment of
disease and injury. The Company is also a regenerative medicine
company specializing in physician/veterinary training and
certification and stem cell products, stem cell banking, and the
creation and management of stem cell clinics. Its lead cardiac
product candidate is MyoCell, an innovative clinical therapy
designed to populate regions of scar tissue within a patient's
heart with autologous muscle cells, or cells from a patient's body,
for the purpose of improving cardiac function in chronic heart
failure patients. Its lead product for in clinic use is Adipocell,
a proprietary kit for the isolation of adipose derived stem cells.
U.S. Stem Cell reported a net loss of $2.16 million for the year
ended Dec. 31, 2018, compared to a net loss of $3.48 million for
the year ended Dec. 31, 2017.
RBSM LLP, in New York, NY, the Company's auditor since 2018, issued
a "going concern" qualification in its report dated March 13, 2019
citing that the Company has suffered recurring losses from
operations, will require additional capital to fund its current
operating plan, and has stated that substantial doubt exists about
the Company's ability to continue as a going concern.
UAL CORP/OLD: Egan-Jones Lowers Senior Unsecured Ratings to B
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 1, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by UAL Corporation/Old to B from BBB-. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A1.
UAL Corporation is the former name of United Airlines Holdings, an
airline holding company, incorporated in Delaware with headquarters
in Chicago, Illinois. UAL held a 100 percent controlling interest
in United Airlines, Inc., one of the world's largest air carriers,
and is a founding member of the Star Alliance.
VENUS CONCEPT: Incurs $42.3 Million Net Loss in 2019
----------------------------------------------------
Venus Concept Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K reporting 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.
Total revenue for the fiscal year 2019 increased $7.8 million, or
8%, to $110.4 million, compared to $102.6 million for the fiscal
year 2018. The increase in total revenue, by geography, was driven
by an increase of $6.4 million, or 11%, in international sales and
an increase of $1.4 million, or 3%, in U.S. sales.
Total product and services revenue for the fiscal year 2019
increased $14.2 million, or 46%, to $45.4 million, compared to
$31.1 million for the fiscal year 2018. Total lease revenue for
the fiscal year 2019 declined $6.4 million, or 9%, to $65.2
million, compared to $71.5 million for the fiscal year 2018. Total
revenue for the fiscal year 2019 included revenue of $2.8 million
from Venus Concept Inc. (formerly Restoration Robotics, Inc.) from
Nov. 7, 2019 to Dec. 31, 2019.
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.
The Company had $15.7 million and $6.8 million of cash and cash
equivalents as of Dec. 31, 2019 and Dec. 31, 2018, respectively,
and total debt obligations of approximately $69.0 million and $56.5
million as of Dec. 31, 2019 and Dec. 31, 2018, respectively.
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.
Fourth Quarter 2019 Financial Results
Total revenue for the fourth quarter of 2019 increased $3.2
million, or 11%, to $31.9 million, compared to $28.6 million for
the fourth quarter of 2018. Total products and services revenue
for the fourth quarter of 2019 increased $5.5 million, or 55%, to
$15.5 million, compared to $10.0 million for the fourth quarter of
2018. Total leases revenue declined $2.3 million, or 12%, to $16.4
million, compared to $18.7 million for the fourth quarter of 2018.
The increase in total revenue, by geography, for the fourth quarter
of 2019 was primarily attributable to an increase of $3.5 million,
or 29%, in international revenue, offsetting a decrease of $0.3
million, or 2%, in U.S. revenue, compared to the prior year period.
The increase in international revenue for the fourth quarter of
2019 was driven primarily by improved performance in Europe,
compared to the prior year period.
The increase in total revenue, by product category, for the fourth
quarter of 2019 was attributable to an increase of $3.1 million, or
42%, in system revenue, an increase of $1.7 million, or 129%, in
service revenue and an increase of $0.7 million, or 57%, in product
revenue, which was partially offset by a decrease of $2.3 million,
or 12%, in lease revenue. The increase in system revenue for the
fourth quarter of 2019 was driven by a 21% increase in revenue from
systems sold by Venus Concept Ltd. and the contribution of revenue
from the sale of ARTAS and ARTAS iX systems, products and services
following the merger closing on Nov. 7, 2019. The increase in
service revenue for the fourth quarter of 2019 was driven by a 42%
in service revenue by Venus Concept Ltd. and the contribution of
service revenue associated with the ARTAS and ARTAS iX systems
following the merger closing on Nov. 7, 2019. The decrease in
lease revenue for the fourth quarter of 2019 was driven primarily
by a mix shift of Venus Concept Ltd. system revenue from leases to
purchases as compared to the prior year period.
Gross profit for the fourth quarter of 2019 decreased $2.3 million,
or 10%, to $19.7 million, compared to $22.0 million for the fourth
quarter of 2018. The decrease in gross profit is primarily due to
revenue mix by product, service and geography as compared to the
prior year period. Gross margin was 62.0% of revenue for the
fourth quarter of 2019, compared to 77.0% of revenue for the fourth
quarter of 2018. The decrease in gross profit percentage is
primarily related to an increase in cost of goods sold mainly due
to revenue mix by product, service and geography as compared to the
prior year period.
Operating expenses for the fourth quarter of 2019 increased $6.4
million, or 21%, to $37.6 million, compared to $31.2 million for
the fourth quarter of 2018. The year-over-year increase in
operating expenses was primarily driven by an increase of $7.0
million, or 79% year-over-year, in general and administrative
expenses and an increase of $1.4 million, or 13%, in sales and
marketing expenses, partially offset by a decrease of $2.1 million,
or 23%, in provision for bad debt expense. Total operating
expenses, specifically general and administrative expenses, for the
fourth quarter of 2019 include approximately $5.0 million of costs
related to the merger, which did not impact results in the prior
year period. Excluding the costs related to the merger in the
period, total general and administrative expenses increased
approximately $2.0 million, or 23%, to $10.8 million, compared to
$8.8 million for the fourth quarter of 2018.
Operating loss for the fourth quarter of 2019 was $17.9 million,
compared to operating loss of $9.1 million for the fourth quarter
of 2018.
Net loss attributable to Venus Concept Inc. stockholders for the
fourth quarter of 2019 was $20.8 million, or $1.07 per share,
compared to net loss attributable to Venus Concept Inc.
stockholders of $13.2 million, or $2.77 per share, for the fourth
quarter of 2018. Weighted average shares used to compute net loss
attributable to Venus Concept Inc. stockholders per share were 19.5
million and 4.8 million for the fourth quarters of 2019 and 2018,
respectively.
Adjusted EBITDA loss for the fourth quarter of 2019 was $11.5
million, compared to adjusted EBITDA income of $2.4 million for the
fourth quarter of 2018.
"2019 was a year of significant advancement and change for Venus
Concept," said Domenic Serafino, chief executive officer of Venus
Concept. "We delivered solid commercial execution, received new
regulatory clearances and launched two new products in the U.S.,
and a total of four in international markets; we closed our merger
transaction on November 7, 2019 and we made significant progress in
enhancing our financial condition with multiple financing
transactions. The integration of our two companies is progressing
rapidly and we remain excited by the long-term prospects of both
the combined global commercial team, and the potentially powerful
combination of Venus' expertise in non-invasive energy-based
technologies for aesthetic applications and Restoration Robotics'
expertise in robotic technology, 3D pre-operative planning and
software. We ended the year by delivering fourth quarter revenue,
giving effect to the merger for the full year, at the high-end of
our preliminary range, driven by 2% growth in the legacy Venus
Concept business, which offset the expected softer sales
performance in the former Restoration Robotics business compared to
the prior year."
Mr. Serafino continued: "We entered 2020 with an expectation of
driving sales growth in the range of 9% to 13% year-over-year as we
previously announced on January 13, 2020. We expected this growth
to be fueled by compelling new product introductions, like our
Venus Bliss, and improving adoption of the ARTAS and ARTAS iX
robotic hair restoration systems. We had a strategic plan to drive
growth with strong commercial execution across our team of more
than 200 direct selling representatives around the world and by
implementing an enhanced go-to-market strategy for our robotic hair
restoration business. We entered 2020 focused on a successful
integration of the two companies, with a specific emphasis on
improving the profitability profile of the combined organization
and had identified approximately $18 million of synergies and cost
reductions that we expected to realize over the course of 2020."
"Unfortunately, the global pandemic caused by the novel coronavirus
(COVID-19) has significantly impacted our growth trends during the
first three months of 2020, which, while difficult to predict, is
expected to continue to impact our results in the second quarter of
2020 and possibly beyond. During this period of unprecedented
disruption, we remain focused on supporting our global customers
and on protecting the health and safety of our employees. Venus
Concept is truly a global business, having established a commercial
presence in more than 60 countries over the course of our ten-year
history. A little more than 30% of our 2019 sales came from the
APAC and European regions which were impacted by the pandemic
throughout the first quarter, and we have also seen a pronounced
decline in both procedures and system adoption in the U.S.
beginning in March. Given the rapidly evolving environment and
continued uncertainties from the impact of COVID-19 we are
withdrawing our full year 2020 revenue guidance and plan to update
the investment community as part of our first quarter earnings
report in May."
"We raised $22.25 million of gross proceeds through an equity
private placement in early March which further enhanced our
financial condition and, in response to the challenging sales
trends in recent months, we conducted a full review of our 2020
budget. Importantly, this review has identified new operating
expense reduction opportunities of at least $20 million, which we
expect to implement beginning in the second quarter. We also
continue to identify additional expense cuts that will be made if
we experience a prolonged recovery from this pandemic. While the
near-term outlook has been challenged by this global pandemic, we
continue to believe the long-term opportunity remains extremely
compelling as a leading player in both the global minimally
invasive/non-invasive medical aesthetics market and the minimally
invasive surgical hair restoration market."
A full-text copy of the Form 10-K is available for free at:
https://is.gd/UAJSrF
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.
VERITY HEALTH SYSTEM: PCO Files 8th Report
------------------------------------------
Jacob Nathan Rubin, MD, FAAC, the Patient Care Ombudsman appointed
for Verity Health System of California, Inc., submits to the U.S.
Bankruptcy Court for the Central District of California his eighth
report for the period from December 3, 2019 through February 3,
2020 pursuant to 11 U.S.C. Section 333(b) regarding the quality of
patient care provided to patients of the affected Debtors.
During this period, the PCO has extensively monitored the transfer
disposition of SVMC's Liver Transplant and Kidney/Pancreas
Transplant Programs. The closure of SVMC and the Hemodialysis
center raised patient care issues. The PCO worked diligently with
the Debtors to ensure the safe transfer of patients from the SVMC
Liver Transplant Program, Kidney/Pancreas Transplant Program and
the Hemodialysis Center and the Professional Office Building after
the emergent closure of SVMC.
The PCO has spent several months investigating the suspension and
ultimate closure of SVMC's Liver Transplant Service and the
potential patient harm inherent in the closure.
The patients were safely discharged or transferred, the patients of
the Kidney/Pancreas Transplant Program, the Hemodialysis Center and
the patients of the doctors of the POB scheduled for closure April
30, 2020, require ongoing care and a safe transition.
All the Liver Transplant Program patients have been transferred to
other programs,opted to stay with Dr. Anamalai, opted out of the
transplant program, or sadly expired while waiting for a Liver
Transplant. The emergent closure of SVMC affected the patients in
SVMC Kidney and Pancreas Transplant Program patients.
Administration sent the appropriate procedural paperwork to United
Network for Organ Sharing to close the program and initiate
transfer of the program's patients.
There are three categories of patients of the Kidney/Pancreas
Transplant Program.
1. Post-Transplanted Patients:
SVMC's Kidney and Pancreas Transplant program's surgeon has assumed
care of the all the transplanted patients. They will be followed at
an established Good Samaritan Hospital Clinic.
2. Patients on the wait list:
The wait listed patients were approved by UNOS to be transferred to
St. Joseph Hospital of Orange. Kidney/Pancreas Transplant patients
are unique in that they require only minimal postoperative care at
the transplanting facility once the transplant has been performed.
The patients will follow-up locally with their Surgeon and
Nephrologist post-transplant. The impact of inconvenient travel to
Orange is minimal and not recognized as a barrier to success in
these patients.
3. Patients awaiting evaluation for transplant:
The transplant surgeon has verified that all the 300 (100%)
patients waiting for transplant evaluation will be followed at the
Good Samaritan Hospital Clinic. The PCO is satisfied that all the
program's patients have been successfully transferred to
appropriate centers for further care.
The PCO is satisfied that all the program's patients have been
successfully transferred to appropriate centers for further care.
The PCO followed guidelines to assure save transfer of SVMC
transplant programs.
The PCO verified that SVMC submitted the appropriate documents to
terminate the SVMC Liver Transplant program and Kidney and Pancreas
Transplant Program in accordance with OPTN/UNOS regulations. SVMC
Transplant Programs and clinics suspended accepting and evaluating
any further patients. The same is true for the Kidney/Pancreas
Transplant Program.
OPTN bylaws require institutions to follow detailed steps when
terminating transplant programs to ensure a safe transition of
their patients that safeguards a smooth disposition of patients. In
order to avoid reader confusion, defining the authority and
jurisdictions of Organ Procurement and Transplantation Network and
United Network for Organ Sharing will lead to a better
understanding of the two entities as they are frequently referenced
in this section of the PCO report.
OPTN is a public-private network that provides a link between all
professionals involved in the United States donation and
transplantation system. While, UNOS is a private, non-profit
organization under contract with the Health Resources and Services
Administration of the U.S. Department of Health and Human Services
and serves as the OPTN.
Accordingly, St.Joseph Hospital of Orange has accepted the wait
listed patients. The transplant surgeon now has staff privileges at
St. Joseph Hospital of Orange. The transplant surgeon will follow
all of the 300 patients waiting for transplant evaluation at his
Good Samaritan Hospital office.
The POB was ordered vacated by April 30, 2020. The PCO is concerned
about patient continuity of care and ability of the doctors to
follow up with their patients without offices in the geographic
area. The doctors will have to sign leases in the local area,
design their offices, obtain permits and build the offices in order
to start seeing patients. The process will likely take longer than
120-days to complete. Most of the doctors are attempting to comply.
The PCO will stay in contact with the doctors of the POB and advise
the court if any issues arise.
Attorneys for PCO:
Ron Bender, Esq.
Monica Y. Kim, Esq.
LEVENE, NEALE, BENDER, YOO & BRILL L.L.P.
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Tel: (310) 229-1234
Fax: (310) 229-1244
E-mail: myk@lnbyb.com
myk@lnbyb.com
www.lnbyb.com
A full-text copy of the PCO's Eighth Report is available at
https://tinyurl.com/qjwt8mm from PacerMonitor.com at no charge.
About Verity Health System
Verity Health System -- https://www.verity.org/ -- operates as a
non-profit health care system in the state of California, with
approximately 1,680 inpatient beds, six active emergency rooms, a
trauma center, and a host of medical specialties, including
tertiary and quaternary care. Verity's two Southern California
hospitals are St. Francis Medical Center in Lynwood and St. Vincent
Medical Center in Los Angeles. In Northern California, O'Connor
Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton
Medical Center in Daly City and Seton Coastside in Moss Beach are
part of Verity Health. Verity Health also includes Verity Medical
Foundation.
With more than 100 primary care and specialty physicians, VMF
offers medical, surgical and related healthcare services for people
of all ages at community-based, multi-specialty clinics
conveniently located in areas served by the Verity hospitals.
Verity Health System was created in a transaction approved by
California Attorney General Kamala Harris and completed in December
2015.
Verity Health System of California, Inc., and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Lead Case No. 18-20151) on Aug. 31, 2018. In the petition
signed by CEO Richard Adcock, Verity Health estimated assets of
$500 million to $1 billion and liabilities of $500 million to $1
billion.
Judge Ernest M. Robles oversees the cases.
The Debtors tapped Dentons US LLP as their bankruptcy counsel;
Berkeley Research Group, LLC, as financial advisor; Cain Brothers
as investment banker; and Kurtzman Carson Consultants as claims
agent.
The official committee of unsecured creditors formed in the case
retained Milbank, Tweed, Hadley & McCloy LLP as counsel.
VIKING ENERGY: Turner, Stone & Company Raises Going Concern Doubt
-----------------------------------------------------------------
Viking Energy Group, Inc. filed with the U.S. Securities and
Exchange Commission its annual report on Form 10-K, disclosing a
net loss of $19,390,850 on $34,592,850 of revenue for the year
ended Dec. 31, 2019, compared to a net loss of $15,117,547 on
$7,967,972 of revenue for the year ended in 2018.
The audit report of Turner, Stone & Company, L.L.P. states that the
Company has suffered recurring losses from operations since
inception and has a significant working capital deficiency both of
which raise substantial doubt about its ability to continue as a
going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $131,745,476, total liabilities of $123,078,621, and a total
stockholders' equity of $8,666,855.
A copy of the Form 10-K is available at:
https://is.gd/TNyXze
Viking Energy Group, Inc., an independent exploration and
production company, focuses on the acquisition and development of
oil and natural gas properties in North America. The company owns
oil and gas leases in Kansas, Missouri, Texas, Louisiana,
Mississippi, and Alberta. The Company was formerly known as Viking
Investments Group, Inc. and changed its name to Viking Energy
Group, Inc. in March 2017. Viking Energy Group was founded in 1989
and is headquartered in Houston, Texas. Viking Energy Group is a
subsidiary of Viking Investments Group, LLC.
VISHAY INTERTECHNOLOGY: Egan-Jones Lowers Sr. Unsec. Ratings to B+
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Vishay Intertechnology Inc. to B+ from BB-.
Vishay Intertechnology, Inc. is an American manufacturer of
discrete semiconductors and passive electronic components founded
by Polish-born businessman Felix Zandman.
VULCAN MATERIALS: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 30, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Vulcan Materials Company to BB+ from BBB-.
Vulcan Materials Company is an American company based in
Birmingham, Alabama. It is principally engaged in the production,
distribution, and sale of construction materials.
WATSON VALVE: Hires Cummings & Houston as Accountant
----------------------------------------------------
Watson Valve Services, Inc., seeks authority from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Cummings & Houston, L.L.P., as accountant to the Debtor.
Watson Valve requires Cummings & Houston to:
a) prepare any necessary federal and state income, payroll,
sales, franchise and excise tax returns and reports of the
bankruptcy estate; and
b) provide evaluations and advice to the Debtor on tax matters
which may arise, including the determination of the tax
basis of estate assets and the evaluation of the tax
effects of the sale of assets of the estate.
Cummings & Houston will be paid at the hourly rates of $110 to
$380.
Cummings & Houston will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Charles C. Cummings, Jr., a partner of Cummings & Houston, assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Cummings & Houston can be reached at:
Charles C. Cummings, Jr.
CUMMINGS & HOUSTON, L.L.P.
440 Louisiana St., Suite 650
Houston, TX 77002
Tel: (713) 224-8890
About Watson Valve Services
Watson Valve Services, Inc., founded in 2002 in Houston, Texas,
supplies specialty and custom valves, with a specialty in valves
for autoclaves used to mine gold. The company filed a Chapter 11
petition (Bankr. S.D. Tex. Case No. 20-30968) on Feb. 6, 2020 in
Houston, Texas. John Watson is the Debtor's chief executive
officer. Judge Marvin Isgur oversees the case. McDowell
Hetherington LLP is serving as the Debtor's counsel.
WESTERN DIGITAL: Fitch Alters Outlook on 'BB+' LT IDR to Stable
---------------------------------------------------------------
Fitch Ratings has affirmed the ratings for Western Digital Corp.,
including the Long-Term Issuer Default Rating at 'BB+' and
first-lien senior revolving credit facility and term loans at
'BBB-'/'RR1'. Fitch also revised the Rating Outlook to Stable from
Positive. These ratings affect $12.1 billion of total debt,
including the undrawn $2.25 billion RCF and WD's $150 million
repayment of term-loan borrowings noted in the company's 10-Q for
the quarter ended Jan. 3, 2020.
The ratings and Outlook reflect Fitch's expectation for weak
near-term cash flow that should constrain WD's capacity for debt
reduction, even as the company focuses on de-levering after the May
2016 acquisition of SanDisk. WD used all of its $671 million of
first-half fiscal 2020 FCF for term loan prepayments, but Fitch
expects higher capital spending will consume second-half fiscal
2020 FCF. Fitch anticipates more constructive supply conditions in
calendar 2020 after industrywide capital spending cuts in 2019.
However, the impact of the coronavirus pandemic should materially
impact WD's revenue for the calendar year.
Lower near-term revenue will weigh on profitability given
significant operating leverage in the model that will be partially
offset by lower retail and consumer sales mix, which have lower
gross margins. In addition, WD's contributions to the joint venture
to co-fund equipment and start-up costs for a new fabrication
facility are back-end loaded for fiscal 2020, and $265 million of
prepayments to the JV partner for building depreciation remain.
Leverage metrics will remain elevated (albeit exiting a trough in
calendar 2019) while the company faces roughly $6.5 billion of term
loans maturing in the first half of calendar 2023.
KEY RATING DRIVERS
Capital Allocation Priority: Fitch expects WD to use substantially
all of its FCF for debt reduction over at least the next two
calendar years in order to de-lever and position the company to
refinance a portion of its roughly $6.5 billion of term loans
maturing in the first half of calendar 2023. Significant average
selling price declines from fiscals 2018-2019 constrained WD's
debt-reduction capacity, as did $1.2 billion of share repurchases
in fiscal 2018 and the first fiscal quarter of 2019. Nonetheless,
the company has publicly prioritized term loan prepayment over
stock buybacks under WD's outstanding authorization, which was $4.5
billion as of Jan. 3, 2020.
Cyclical Memory ASPs: Fitch expects memory ASPs will remain highly
cyclical, driven by production technology transitions and excess
supply additions across a fragmented industry, limiting WD's
control over profit margins. The significant NAND ASP declines in
2018-2019 were driven by the unique challenges transitioning to 3D
from 2D-NAND manufacturing and comparisons to record high 2018
levels. Fitch previously expected the industry to absorb excess
capacity mid-calendar 2020, although the coronavirus pandemic will
likely push achieving balanced supply and demand into the second
half of the calendar 2020. Fitch estimates operating EBITDA margins
in the high single digits for the latest 12 months ended Jan. 3,
2020, with expectations for mid-teens in calendar 2020 and the
high-teens to low-20% on average through a cycle. Fitch expects
ever increasing complexity and costs will result in less frequent
technology transitions, which should moderate memory cycles.
Significant Technology Risk: Despite WD's current technology
leadership in both HDD and NAND flash, Fitch expects technology
risk will remain significant, driven by areal density increases in
HDDs and technology transitions in manufacturing NAND-flash memory.
Meaningful new product introduction delays, driven by lagging
technology, would result in market share losses and significantly
lower profitability from lost revenue from ASP reductions. The
break down in Moore's Law reflects the flash memory industry
approaching the limitations of physics and economics using
conventional manufacturing methodologies, while the HDD industry
has had to achieve stable drives using energy assisted technologies
to achieve an aerial-density increase roadmap through 2025.
Agnostic Storage Technology Portfolio: Fitch believes WD will
benefit from an agnostic storage technology portfolio, which
enables the company to supply storage solutions to both a wide
range of performance and capacity storage workloads. WD's secure
supply of NAND for SSD strengthens the company's products and
solutions in high-performance markets where SSDs are cannibalizing
HDDs, including personal computers and mission-critical enterprise
drives. HDDs continue to benefit from lower total cost of ownership
for certain applications such as capacity drives and surveillance
products.
JV Consolidation Risk: Although WD's capital intensity is modest,
investment intensity for NAND-process technology development and
capacity additions is high, which the JV structure partially
de-risks. However, Toshiba's sale of its 51% ownership share of the
JV to a private-equity-led consortium helped stave off Toshiba's
bankruptcy but also left the JV under non-strategic long-term
control. Meanwhile, WD's contributions to the JV via receivables
notes and prepayments amplify cash flow volatility. Fitch believes
any meaningful consolidation of WD's ownership interest in the JV
would be credit negative due to increases in investment intensity
and a likely leveraging transaction.
DERIVATION SUMMARY
Through the cycle, WD is positioned in line with higher-rated
direct peers, given strong market positions, de-risking via the JV
and technology leadership. WD's focus on debt reduction with
substantially all of FCF positions the company to achieve
meaningful deleveraging upon the resumption of revenue growth, and
the ability to maintain total debt to operating EBITDA below 3.5x
on average through the cycle.
WD compares in line with higher-rated Seagate from a growth
potential perspective; Seagate also supplies HDDs but lacks WD's
SSD business scale, having only recently secured committed and
economical NAND supply. However, WD faces meaningfully greater
cyclicality due to NAND ASP cycles and investment intensity, which
the company partially mitigates with the JV. Fitch believes that
average pre-dividend FCF is roughly similar for WD and Seagate,
although WD's financial structure is considerably more leveraged.
WD is largely in line with higher-rated Micron Technology Inc.,
which experiences similarly deep cyclicality from excess supply
resulting in uneven operating performance. Micron's direct exposure
to DRAM and NAND rather than storage solutions should result in
greater cyclicality but also greater control over technology and
manufacturing roadmaps. Micron's financial structure is
meaningfully more conservative, having used windfall cash flow from
record memory prices in 2017-2018 for permanent debt reduction.
KEY ASSUMPTIONS
-- Weak enterprise spending drives mid-single digit negative
revenue growth in fiscal 2020 followed by the resumption of
positive revenue growth in fiscal 2021.
-- Operating leverage-driven profit margin contraction in fiscal
2020 with the abruptness of the downturn limiting visibility and
the company's reaction, while comparatively gradual recovery drives
lower operating leverage.
-- Capital intensity should be back-end loaded for fiscal 2020
but remain in the mid-single digits over the longer term.
-- Modest dividend growth through the forecast period.
-- The use of substantially all FCF for debt reduction rather
than stock buybacks for at least the next two years.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
-- Average organic revenue growth in the low- to mid-single
digits and operating EBITDA margins averaging in the mid-20s
through a memory cycle;
-- Expectations for total debt to FCF to average roughly 5x
through the cycle; total debt to operating EBITDA to average near
2.5x through the cycle.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Upgrade:
-- Sustained negative organic revenue growth from weaker than
expected capacity HDD growth or the acceleration of SSD
substitution;
-- Use of FCF for purposes other than debt reduction;
-- Structural profitability erosion resulting in total debt to
FCF sustained in the high single digits or total debt to operating
EBITDA sustained above 3.5x, on average.
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
Solid liquidity: Fitch expects liquidity will remain adequate, and
as of Jan. 3, 2020, was supported by: i) $3.1 billion of cash and
cash equivalents, and ii) an undrawn $2.25 billion secured RCF
expiring Feb. 27, 2023. Fitch's expectation for $1 billion of
annual FCF on average over the rating horizon also supports
liquidity, although Fitch anticipates modest FCF for the second
half of fiscal 2020 after generating $671 million in the first half
of the fiscal year, in part due to higher than typical proceeds
from the JV's notes receivable. Debt maturities over the next three
years consist of minimal mandatory amortization under the
approximately $6.5 billion of first-lien term loans, which mature
in the first half of calendar 2023.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).
WINSTEAD'S COMPANY: Has Interim OK on Cash Use, May 21 Hearing Set
------------------------------------------------------------------
Judge Robert D. Berger authorized Winstead's Company to use cash
collateral and inventory on a temporary basis through March 30,
2020, pursuant to the budget, as well as pay fees owing to the
United States Trustee.
As adequate protection for the use of cash collateral, the Debtor
is directed to pay Citizen's Bank &Trust Company $15,000 monthly on
March 25, 2020 and the 2nd of each month thereafter.
Moreover, the Debtor is authorized to grant replacement security
interests and liens to Citizens Bank and US Foods, Inc., on all of
the Debtor's postpetition date acquired property that is of the
same type in which the interested party holds a prepetition
interest, lien or security interest. Each of the creditors is also
granted an administrative expense claim under Section 503(b) with
priority in payment under Section 507(b) of the Bankruptcy Code to
the extent the replacement liens prove inadequate.
The Debtor has not fully analyzed the creditors' loan documents,
but believes that each creditor may hold a lien in its assets.
The final hearing initially scheduled for March 26, 2020 is
rescheduled to May 21, 2020 at 1:30 p.m.
About Winstead's Company
Winstead's Company operates 3 Winstead's Restaurant located at (i)
101 Emanuel Cleaver II Blvd., Kansas City, Mo.; (ii) 10711 Roe,
Overland Park, Kansas; and (iii) 4971 W. 135th St., Leawood,
Kansas.
Winstead's Company filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Case No.
20-20288) on Feb. 24, 2020, listing under $1 million in both assets
and liabilities. Judge Robert D. Berger oversees the case. Colin
Gotham, Esq., at Evans & Mullinix, P.A., is the Debtor's legal
counsel.
WOLVERINE WORLD: Egan-Jones Lowers Senior Unsecured Ratings to BB-
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Wolverine World Wide Incorporated to BB- from BB.
Wolverine World Wide, Inc. or Wolverine Worldwide is a
publicly-traded American footwear manufacturer based in Rockford,
Michigan, known for its own brand, Wolverine Boots and Shoes, as
well as other brands such as Hush Puppies and Merrell.
WOODLAWN COMMUNITY: Appointment of Chapter 11 Trustee Upheld
------------------------------------------------------------
In the case captioned WOODLAWN COMMUNITY DEVELOPMENT CORP.,
Appellant, v. OFFICIAL COMMITTEE OF UNSECURED CREDITORS, Appellee,
No. 19 CV 1605 (N.D. Ill.), District Judge Manish S. Shah affirmed
the Bankruptcy Court's ruling granting the Unsecured Committee's
motion to appoint a trustee in the chapter 11 case of Debtor
Woodlawn Community Development Corporation.
For almost 50 years, Dr. Leon Finney ran the Woodlawn Community
Development Corporation, a nonprofit organization that provided
affordable housing and advocated for social justice in the Woodlawn
neighborhood on the south side of Chicago. The organization had a
board of directors and senior-level managers in place, but, in
practice, Finney single-handedly ran the organization with nearly
unlimited discretion. Among his decisions with dire consequences
for the organization, Finney diverted over a million dollars in
employee payroll taxes into Woodlawn's operating account. The IRS
tax lien that followed then caused Woodlawn to file a Chapter 11
bankruptcy petition. Woodlawn's unsecured creditors moved the
bankruptcy court to appoint a trustee under 11 U.S.C. section
1104(a) to take over management of the debtor's estate. The
unsecured creditors' committee, the U.S. Trustee, and the Chicago
Housing Authority, Woodlawn's largest client, all supported
appointment of a trustee.
After three hearings, the bankruptcy judge granted the motion. She
found that Finney's conduct amounted to gross mismanagement, fraud,
and self-dealing. And although Woodlawn had hired a member of its
board of directors to be its new CEO, the judge found that,
overall, Woodlawn's management had continued largely unchanged. A
trustee would be in the creditors' interest, according to the
judge, because the creditors had lost confidence in Woodlawn's
management. Woodlawn appeals the order appointing a trustee,
insisting that the court insufficiently weighed Woodlawn's change
in management.
Woodlawn says that the bankruptcy judge erred by failing to conduct
an evidentiary hearing before appointing the trustee. And, it
argues, she abused her discretion in appointing a trustee both for
cause and in the interests of the creditors, because Woodlawn was
under new management and had offered the court a reorganization
plan. The U.S. Trustee and the Committee argue that the bankruptcy
judge appropriately exercised her discretion.
According to the District Court, incompetence, dishonesty, gross
mismanagement, and fraud "cover a wide range of conduct." Thus, a
bankruptcy court has "wide latitude" to determine whether alleged
misconduct rises to the level of cause. In considering whether
cause exists, a court must focus on the debtor's current
management, not its past management. A trustee is not warranted if
current management is "free from the previous management's taint."
According to the District Court, the bankruptcy judge properly
exercised her discretion in finding cause to appoint a trustee
under 11 U.S.C. section 1104(a). The record supports the conclusion
that Woodlawn engaged in gross mismanagement and dishonesty. The
judge primarily focused on three instances of misconduct: the
unpaid taxes, the unpaid rent from Lincoln South, and Nixon's
consulting fee, which violated the cash collateral order. Any one
of those circumstances supported a finding of gross mismanagement,
fraud, or dishonesty. For example, Finney engaged in a deliberate
scheme to access employee payroll taxes by switching payroll
processing companies and telling the new company that Woodlawn
would handle payroll taxes internally in order to gain access to
that money. He then treated employees' wages as an all-purpose fund
that he could dip into for whatever purpose he saw fit. As the
bankruptcy judge found, Finney essentially stole employees' wages.
On top of that, Finney lied when, in the organization's Chapter 11
petition, he stated that management was surprised by the unpaid tax
liabilities -- he was the manager who personally directed the
diversion of the payroll taxes.
The District Court says the bankruptcy judge appropriately
exercised her discretion in refusing an evidentiary hearing. First,
she gave Woodlawn ample opportunity to develop the factual record.
She held two hearings before granting the Committee's motion and,
at the first hearing, invited Woodlawn to submit a response in
writing to that motion and to include all relevant disputed facts.
The judge specifically told Woodlawn's attorney to address whether
there was "an issue of fact that matters." If Woodlawn had
convinced the judge that disputed facts warranted exploration at an
evidentiary hearing, the judge would have considered holding one.
Given that Woodlawn had the chance to present disputed facts and
did not, it cannot now complain that it was denied an opportunity
to develop the record. Absent any factual dispute, the judge
properly granted the Committee's motion without an evidentiary
hearing.
The bankruptcy judge did not abuse her discretion in finding cause
for appointment of a trustee.
Section 1104(a)(2) of the Bankruptcy Code is designed to be a
"flexible standard" that gives the bankruptcy court discretion to
appoint a trustee "when to do so would serve the parties' and
estate's interests." A number of factors inform the decision,
including the debtor's trustworthiness, the debtor's performance
and likelihood of rehabilitation, the confidence of creditors and
the business community in current management, and the costs and
benefits of appointing a trustee. A trustee "can be appointed based
solely on the creditor's lack of confidence" in the debtor.
The District Court says the bankruptcy judge did not abuse her
discretion in finding that appointing a trustee was in the
interests of the creditors. All of the creditors who followed the
case by appearing at the court's hearings supported the motion.
That group included a representative from the Committee, as well as
a representative from a secured creditor. In addition to the
creditors, both the U.S. Trustee and the CHA, Woodlawn's largest
client, supported appointing a trustee. Given the agreement of
everyone except Woodlawn itself, and the unanimous lack of
confidence in Woodlawn's existing leadership, appointment of a
trustee was justified.
A copy of the Court's Memorandum Opinion and Order dated March 13,
2020 is available at https://bit.ly/3bNMZCU from Leagle.com.
WoodLawn Community Development Corp, an Illinois not for profit
corporation, Appellant, represented by David R. Herzog, Herzog &
Schwartz, P.C.
Official Committee of Unsecured Creditors, Appellee, represented by
Arthur Gary Simon , Crane, Heyman, Simon, Welch & Clar & Jeffrey
Chad Dan -- jdan@cranesimon.com -- Crane, Simon, Clar & Dan.
Patrick S. Layng, U.S. Trustee, Trustee, represented by Cameron M.
Gulden , U.S. Department of Justice Office of the United States
Trustee & Stephen G. Wolfe , Office of the United States Trustee.
About Woodlawn Community Development
Founded in 1972, Woodlawn Community Development Corp. --
https://www.wcdcchicago.com/ -- manages and develops affordable
housing for families in the Greater Metro Chicago area.
Woodlawn Community Development Corp., based in Chicago, Illinois,
filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 18-29862) on
Oct. 24, 2018. In the petition signed by Leon Finney, Jr.,
president and CEO, the Debtor was estimated to have $50 million to
$100 million in both assets and liabilities. The Hon. Carol A.
Doyle oversees the case. David R. Herzog, Esq., at Herzog &
Schwartz, P.C., serves as bankruptcy counsel.
WPX ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to B-
------------------------------------------------------------
Egan-Jones Ratings Company, on March 31, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by WPX Energy Incorporated to B- from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
B from A3.
WPX Energy, Inc. is a company engaged in hydrocarbon exploration.
It is organized in Delaware and headquartered in Tulsa, Oklahoma.
All of the company's assets are in either the Williston Basin or
the Permian Basin.
YRC WORLDWIDE: S&P Lowers ICR to 'CCC+'; Outlook Negative
---------------------------------------------------------
S&P Global Ratings lowered its rating on Overland Park, Kan.,
less-than-truckload and logistics company, YRC Worldwide Inc. to
'CCC+' from 'B-' and its issue-level rating on the company's term
loan to 'B-' from 'B'.
"The downgrade reflects our view that YRC Worldwide Inc.'s 2020
operating prospects will be weaker than previously expected due to
the coronavirus pandemic, which leads us to believe that its
capital structure may be unsustainable over the long term. YRC
plays an important role in the North American supply chain, and
continues to serve its customers and keep essential freight and
medical supplies moving across North America." However, YRC has a
significant concentration of customers in the manufacturing and
retail industries, which will likely face lower volumes due to
factory and store closures," S&P said.
The negative outlook reflects uncertainty regarding the duration
and extent of the coronavirus impact and recessionary environment.
Although the company has modest near-term debt principal
maturities, a decline in earnings could cause a shortfall in
operating cash liquidity over the coming year.
"We could lower the rating if we believe the company will likely
default without an unforeseen positive development in the following
12 months. For example, if cash balances decline and we believe the
company will face a near-term liquidity crisis, or will consider a
distressed exchange offer or redemption in the next 12 months. We
could also lower the rating if the company does not receive a
covenant waiver or amendment in a timely manner," S&P said.
"We could revise the outlook to stable if the company improves its
liquidity position, with sufficient liquidity to operate its
business and maintain covenant headroom of at least 15% under all
applicable covenants. In addition, we would look for the company to
generate positive free operating cash flow," the rating agency
said.
ZELIS HOLDINGS: S&P Alters Outlook to Negative & Affirms 'B' ICR
----------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Zelis Holdings
L.P. to negative from stable. At the same time, S&P affirmed its
'B' long-term issuer credit rating on Zelis and its 'B' debt
rating, as well as the '3' recovery rating -- indicating its
expectation for meaningful (50%) recovery of principal in the event
of a default -- on the company's senior secured facility consisting
of a $150 million revolver due 2024 and $1.5 billion term loan due
2026.
"The revised outlook reflects our expectation for S&PGR-adjusted
debt to EBITDA to deteriorate and perhaps surpass our downside
trigger over the next 12 months. To contain the spread of COVID-19
and dedicate resources and beds to those infected, hospitals across
the U.S. have cancelled or postponed all elective procedures.
Similarly, the American Dental Assn. has recommended that all
dental providers delay elective procedures. In light of these
actions, we expect the volume of claims that Zelis typically
processes to significantly decline, with the second-quarter likely
to experience the largest drop. We expect this to result in a
contraction in revenues and EBITDA in 2020, with leverage
potentially exceeding 7.0x. Previously, we anticipated deleveraging
of 5.0-5.5x by year-end 2020 due to revenue growth of 15%-20% and
EBITDA expansion arising from cross-selling in connection with its
recent merger with RedCard in third-quarter 2019 and a highly
recurring revenue base. Pro forma leverage as of the 12 months
ended Sept. 30, 2019, was 6.4x," S&P said.
The negative outlook reflects S&P's view that the Covid-19 pandemic
will result in weakening profitability for Zelis and an increased
risk for S&PGR-adjusted leverage to approach or exceed 7x over the
next 12 months. In line with its economists' viewpoints, S&P
expects the shock to be short term and for the firm's revenues and
EBITDA to significantly improve once the U.S. economy returns to
normal.
"We could lower the rating in the next 12 months if a decline in
claims volume extends through year-end 2020 and into 2021,
resulting in significant pressure on profitability and sustained
leverage over 7x and EBITDA interest coverage below 2x," S&P said.
"We could revise the outlook to stable if Zelis' business model
appears resilient despite the slowing economy, and the company
maintains S&PGR-adjusted leverage below 7x with EBITDA interest
coverage above 2x. This could occur if Zelis quickly rebounds from
the disruption to its business operations while benefitting from
its highly recurring revenue base, cross-selling opportunities, and
potential pent-up demand due to the recent economic fallout," the
rating agency said.
[*] Fitch: Neg. Rating Actions on North American Airlines Sector
----------------------------------------------------------------
Fitch Ratings has taken negative rating actions across the North
American airline sector after completing a portfolio review of most
of the airlines in the region. The review resulted in eight rating
downgrades and one rating affirmation, which are listed below and
discussed in the Key Ratings Driver Section. Eight of the ratings
have Negative Outlooks and one is on Rating Watch Negative. This is
the second portfolio review Fitch has conducted since the
coronavirus pandemic accelerated in North America and EMEA. The
review included an analysis of monthly estimated liquidity and an
analysis of projected credit profiles at the end of 2021,
consistent with the firm's "through-the-cycle" rating approach.
Fitch believes the pandemic will undo some of the credit
improvement seen over the past decade at North American airlines.
Most airlines will exit the worst of the crisis with higher debt
levels and lower liquidity, leaving the sector more exposed to
additional exogenous shocks.
The depth of the decline in traffic related to the pandemic is
causing substantial cash outflows for airlines in the near-term.
Looking past the worst of the crisis, it has become increasingly
likely that the economic impact of the pandemic will cause a much
slower than previously anticipated rebound in air traffic. A longer
period of depressed airline traffic, combined with debt raised to
manage liquidity, will cause all carriers to operate with weakened
credit metrics and reduced financial flexibility at least through
2021. Airlines are one of the hardest hit sectors globally. While
exogenous shocks have always posed risks for the sector, the
severity of this disruption is materially different than what was
contemplated in its ratings prior to the pandemic, contributing to
the ratings downgrades.
Fitch forecasts the response to the pandemic will lead to a deep
economic recession, including an elongated recovery for the
transportation sector. Fitch has revised its North American airline
forecasts to include revenues down roughly 90% through 2Q20, down
as much as 60%-65% in the third quarter, and down at least 30% in
the fourth quarter for domestic-focused carriers and closer to 50%
for carriers with more international exposure. These assumptions
result in annual revenue declines for 2020 of 50% or more.
Fitch's assumptions include the possibility of periodic
restrictions on international travel in the second half of the year
driven by potential resurgence of the pandemic in the fall or
winter. The global economic impact of the pandemic will likely lead
to reduced levels of traffic for longer than previously expected.
Its current base case reflects traffic only slowly recovering
toward 2019 levels by the end of 2021, with a full rebound to 2019
levels only occurring by 2022 or 2023.
Passage of the CARES Act provides material relief from near-term
liquidity pressures for US carriers, and will likely reduce the
amount of employee furloughs for the next six months. Under the
legislation, US carrier are eligible for up to $25 billion in
grants to cover payroll expenses, subject to the stipulation that
the airlines refrain from involuntary furloughs or workforce
reductions through September. The airlines will also have access to
up to $25 billion in loans or loan guarantees from the government.
Terms of the government loans are not fully clear at this time, but
the government will require warrants or equity stakes in the
airlines in exchange for any government backed loans, making them
less palatable for carriers that have sufficient commercial
alternatives available.
A key part of Fitch's review was a monthly analysis of estimated
liquidity for each airline. Fitch believes carriers will be able to
manage through the worst of the crisis without running out of cash
as a result of the payroll grants, debt issuance that has either
already been completed or is in progress, cost reductions, and
beginning liquidity. However, most airlines will exit the year with
higher debt and lower liquidity levels, including fewer
unencumbered assets. Large-scale workforce reductions would have
been likely without the government program. Fitch anticipates that
material reductions in workforce will be necessary beyond the six
months covered by the CARES act as the airlines adjust to operating
at a reduced size for at least the next two years. Fitch's ratings
do not take into account the possibility of further government
assistance.
Even with the actions listed above, cash burn over the next several
months will be substantial. Fitch believes that most carriers have
sufficient alternatives that they may not need to access the $25
billion in available government loans, but for other carriers this
loan program will provide a necessary backstop.
Lower fuel prices remain a key consideration, but will be more
impactful in 2021 than 2020 as fuel usage is low due to substantial
capacity reductions. Fitch believes that low fuel prices, driven by
oversupply and macro weakness, could play a key part in airline
recovery in 2021. Relatively low fuel prices combined with material
cost reductions may push most North American airlines back to
profitability in 2021 even at traffic levels that remain well below
2019 volumes.
Alternatively, Fitch believes that airlines would have a difficult
time passing higher fuel costs through to customers amid ongoing
economic pressures should crude prices rise above its current
expectations. Such a scenario would delay airline recovery and
potentially push further negative rating actions.
Fitch's rating review did not cover airline EETC transactions.
Fitch expects to review its EETC ratings within the next one to two
weeks.
KEY RATING DRIVERS
Southwest Airlines
Fitch has downgraded Southwest to 'BBB+' from 'A-', the rating
Outlook remains Negative. Fitch views Southwest as the best
positioned US carrier to manage through the pandemic given its
strong balance sheet, unencumbered asset base and domestic focus.
The downgrade reflects its view that additional borrowing to shore
up near-term liquidity reduces financial flexibility by such a
degree that the 'A' category rating is no longer appropriate. The
downgrade also reflects risks to the airline sector in general,
which is being particularly hard hit by the pandemic. Even assuming
a relatively slow recovery to passenger traffic, Fitch expects that
Southwest's credit metrics should rebound to levels that are
supportive of the 'BBB+' rating by YE 2021 or early 2022. The
Negative Outlook reflects its uncertainty around the trajectory and
timing of a recovery.
Fitch believes that debt raised to date, along with proceeds from
government grants under the CARES act, may be sufficient that
Southwest can manage through the remainder of the year without
raising additional funds. The company procured a $3.3 billion
364-day secured credit facility and fully drew on its $1 billion
revolver in March. Southwest still maintains a fairly large balance
of unencumbered assets that could be used for further funding if
needed.
Delta Airlines
Fitch has downgraded Delta to 'BB+' from 'BBB-'; the Rating Outlook
is Negative. Though Delta remains a stronger credit than its
network peers, debt raised to sustain liquidity through the
pandemic will drive credit metrics outside of a range supportive of
investment-grade ratings at least through 2021 and likely into
2022. Fitch calculated adjusted debt/EBITDAR at just under 2x at YE
2019, which it considered to be strong for the 'BBB-' rating. In
its initial assessment of the pandemic, Fitch forecasted that Delta
could return leverage to the mid-to-high 2x range by YE 2021. Fitch
now expects leverage to remain above 3x through 2022 after spiking
this year. The Negative Outlook reflects high levels of uncertainty
around the length of the pandemic and pace of recovery.
Delta has already taken significant actions to raise liquidity as
demand has fallen, and Fitch believes that the company will have
sufficient liquidity when paired with government grants to manage
through the crisis. Actions taken to date include a $2.6 billion
secured term loan, a $1 billion EETC transaction to refinance a $1
billion unsecured maturity, a $3 billion draw on existing
revolvers. In all, Fitch expects Delta to borrow more than $8
billion during the year, which is essential for near-term
liquidity, but will raise leverage by more than a turn over prior
expectations when combined with its forecasts for a smaller top
line over the next several years.
Delta has more financial flexibility than some peers. The company's
pension plan has no required funding through 2024, and it has
announced that it will defer its previously planned $500 million
pension payment this year. Delta has also deferred $3.5 billion in
planned capex. They have also ceased share repurchases and
dividends, which accounted for more than $3 billion in cash outflow
in 2019.
American Airlines
Fitch has downgraded American Airlines by one notch to 'B', and the
ratings are on Rating Watch Negative. This follows Fitch's
downgrade of American to 'B+' from 'BB-' on March 20, 2020. Fitch
expects that the company will have sufficient liquidity and access
to capital to manage through the year, however significant
additional borrowing and the likelihood of a slow recovery make it
likely that the company's credit metrics will remain well outside
of its prior expectations at least through 2021 or 2022. The
company also has material debt payments this year and next, making
continued access to capital markets essential.
Fitch's base case forecast from its 2019 review anticipated that
total adjusted leverage would fall to the low 4x range by 2021 or
2022. It now anticipates that leverage could remain above 6x
through 2022. American's credit metrics had already been under
pressure prior to the pandemic from a combination of events
including labor issues, the 737 MAX grounding, rising labor costs
and an intensely competitive environment. Fitch had expected
metrics to improve over the next one to two years, as declining
capex allowed for debt reduction, and as various revenue
initiatives took hold. However, the current environment pushes that
improvement further into the future.
Cash burn over the next several months will be substantial.
Near-term liquidity is supported by government grant money, debt
issuances that have already been completed, and significant cost
cutting measures. However, Fitch believes that American will need
to raise significantly more capital this year and next to maintain
sufficient liquidity. Fitch believes that American has remaining
ability to raise additional funds, including government loans under
the CARES Act, subordinate tranches on existing EETC transactions,
and the potential to engage in forward sales of miles to credit
card partners. Disruptions to the credit markets, or unexpected
problems in obtaining government loans could quickly cause
financial flexibility to deteriorate, which drives the Negative
Rating Watch.
United Airlines
Fitch has downgraded United to 'BB-' from 'BB', and the Rating
Outlook remains Negative. Fitch's forecasts indicate that United
should be able manage through the worst of the pandemic without
raising additional debt, assuming that it obtains government grants
under the CARES Act. However, the additional debt raised to date
and the likelihood of a smaller top-line over the next two to three
years, along with the uncertain pace of recovery, push the
one-notch downgrade. United is also the most international-focused
US network carrier, with only 62.3% of its 2019 revenue coming from
domestic service. International travel bears the risk of a
prolonged drop in demand should certain countries or regions
continue to restrict travel in the face of continued outbreaks.
17.1% of United's 2019 passenger revenue was derived from
trans-Atlantic travel and 11.8% from the Pacific region, both of
which are being severely restricted in the current environment.
Prior to the coronavirus pandemic, Fitch had viewed United's credit
profile as improving. Credit metrics were solid for the 'BB'
rating, and FCF was expected to improve over its forecast period.
Should recovery occur in line with its forecasts, United's credit
metrics could move back towards levels that support a 'BB' rating
by 2022.
Like the other network carriers United has shored up liquidity to
weather the downturn. United obtained a $2 billion term loan
secured by aircraft and a $500 million spare parts facility,
leaving it with more than $8 billion in liquidity going into this
event. The company has also recently reported an unencumbered asset
balance that it estimates at $20 billion, inclusive of its Mileage
Plus plan, that can be leveraged to raise cash if needed. United
announced a hiring freeze and is pursuing voluntary unpaid leave
for its employees. The company cut its capex forecast for 2020 to
$4.5 billion, down from roughly $7 billion in its prior plans. Debt
maturities for the year are manageable. Total principal payments on
debt and finance leases total roughly $1.5 billion for 2020, which
should be addressable with cash on hand along with other available
liquidity options.
Alaska Airlines
Fitch has downgraded Alaska Air to 'BB+' from 'BBB-', and the
Rating Outlook remains Negative. Fitch views Alaska, along with
Southwest and Delta, to be one of the better-positioned US carriers
to weather the expected downturn. Fitch believes that ALK's credit
metrics could return to levels supportive of a 'BBB-' rating within
two years. However, the downgrade reflects Alaska's concentration
along the West Coast where the coronavirus pandemic has been
particularly severe, and which could see prolonged demand
destruction. The downgrade also incorporates general industry
uncertainty around the pace of recovery.
Alaska maintains a manageable debt balance that stood at $1.5
billion at YE 2019, leaving the company in a net cash position. 133
of the Alaska's 332 aircraft were unencumbered at YE 2019,
providing a substantial base of assets on which to borrow to
maintain liquidity. The company raised a significant amount of
capital at attractive rates in a similar manner when it purchased
Virgin America in 2016.
The company has recently drawn on its revolving credit facilities
and procured a $425 million 364 day term loan secured by 25 of its
previously unencumbered aircraft. Fitch believes that Alaska should
have sufficient cash to manage through the crisis without raising
additional debt assuming a modest recovery in the second half. The
company has the capacity to raise additional capital if needed.
Debt maturities are manageable in the near-term, totaling $235
million in 2020, which can be addressed through cash on hand even
in a sharp downturn scenario. Capex is also manageable,
particularly as aircraft deliveries originally scheduled for this
year consisted of 10 737 MAXs, which are unlikely to all be
delivered in 2020 due to the ongoing grounding of that aircraft.
JetBlue Airways
Fitch has downgraded JetBlue to 'BB' from 'BB+'; the Rating Outlook
remains Negative. The downgrade is primarily prompted by
expectations for a slower recovery in demand such that credit
metrics will be modestly outside of levels that support a 'BB+'
rating at least through 2021. JetBlue is going in to this crisis
with a material amount of liquidity and modest near-term cash
needs, which should allow the company to maintain adequate cash on
hand. JetBlue recently obtained a $1 billion term loan secured by
aircraft and spare engines. After utilizing some of its
unencumbered fleet to secure the new term loan, it maintains more
than 60 unencumbered A320s. Near-term debt maturities are
manageable at $341 million in 2020. Fitch believes that JetBlue
should have sufficient cash to manage through the crisis without
raising additional debt assuming a modest recovery in the second
half, and should not have to rely on government sponsored loans
under the CARES Act.
JBLU is also in a better position than some carriers as it does not
have material pension obligations. The company has also cut off
share repurchases, which accounted for $542 million in cash outflow
in 2019. Like the other major carriers, JBLU has announced capex
deferrals, payment delays to suppliers, and plans to defer
maintenance on aircraft.
Spirit Airlines
Spirit Airlines has been downgraded to 'BB-' from 'BB'. The Rating
Outlook is Negative. The downgrade is based on its revised
forecasts, which anticipate additional borrowing and slower
expected recovery will push leverage outside of its negative rating
guidelines at least through 2021. The Negative Outlook reflects
uncertainty around the pace of recovery and Fitch's view that
Spirit may have fewer assets to tap to raise additional funds in
the case of a prolonged downturn compared to some competitors.
Fitch believes that Spirit's low cost structure and liquidity act
as meaningful cushions to further downside risks. The company may
fare better than larger network carriers due to its domestic focus
and presence in Latin American markets which may recover more
quickly than international travel. Spirit had $1.08 billion in cash
and equivalents on the balance sheet at YE 2019 or 28% of LTM
revenue, which is higher than most peers. Spirit already has
committed funding for aircraft deliveries scheduled for this year,
mitigating the cash burn from pending capex. The company has also
recently procured a $110 million revolving credit facility that is
undrawn to date. Though Fitch expects cash balances to fall through
the year, Fitch believes that Spirit has sufficient liquidity to
manage through the crisis with little need for additional
borrowing. As of March 9, Spirit reported holding roughly $700
million in unencumbered assets, primarily consisting of aircraft
that can be used to raise cash if needed, though a portion of that
balance has been used to secure the revolver.
Air Canada
Fitch has affirmed Air Canada's IDR at 'BB' with a Negative
Outlook. Given its expectation for a slower recovery in demand,
Fitch expects Air Canada's credit metrics will fall outside levels
that would support a 'BB' rating during 2020 before returning to
supportive levels around the end of 2021. The Negative Outlook
reflects the still-evolving situation with the pandemic, and
possibility of a material impact to its credit metrics should a
substantial recovery be delayed beyond 2021.
The company has fully drawn its revolving credit facility, and is
currently marketing a new secured $500 million term loan facility
to aid liquidity. The company could raise further capital from
financing its remaining unencumbered fleet valued at $3.5 billion.
The company furloughed about 50% of its hourly staff, and recently
announced that staff would be re-hired under a government program
which would replace wages with a government subsidy. Fitch expects
some 2020 capex will be delayed until 2021, and the company has
announced delayed payments to suppliers and expectations of reduced
maintenance.
AC entered 2020 in a strong liquidity position with over $6 billion
in cash. Fitch believes that Air Canada should have sufficient
liquidity to manage through the crisis assuming a modest recovery
which begins in the 2H20 which continues into 2021.
Hawaiian Holdings
Fitch has downgraded Hawaiian to 'B+' from 'BB-'; the rating
outlook is Negative. The downgrade reflects credit metrics that are
likely to stay outside of Fitch's downgrade sensitives through YE
2021. Fitch is also concerned that Hawaiian may experience a slower
recovery than some airlines from the prolonged economic effects of
the pandemic given the premium/non-essential nature of Hawaiian
vacations. Fitch previously expected leverage to spike in 2020 and
decline to the mid 4x range in 2021 and into the 3x range in 2022.
Its updated forecasts show leverage remaining above 5x through
2021. Metrics may move back to levels that support 'BB' category
ratings beyond 2021 depending on the pace of recovery.
Despite the rating downgrade, Fitch believes that Hawaiian has
sufficient financial flexibility to manage through the crisis.
Hawaiian has a manageable debt maturity schedule with $55.4 million
due in 2020. As of Dec. 31, 2019, liquidity totaled $853.7 million,
which consists of unrestricted cash and equivalents, short-term
investments and a $235 million secured revolver, which has now been
drawn. The airline also has 36 unencumbered planes, accounting for
almost half of its fleet. Low planned capex in 2020 also provides
some cushion for the downturn. Additional borrowings are likely
with Hawaiian potentially utilizing some unencumbered assets to
raise cash.
KEY ASSUMPTIONS
Key Assumptions in Fitch's rating case include a steep drop in
demand through 2020, with full recovery only occurring by 2022 or
2023. During 2020 Fitch's base case includes revenues down roughly
90% through the second quarter of the year, down as much as 60%-65%
in the third quarter, and down at least 30% in the fourth quarter
for domestic focused carriers and closer to 50% for carriers with
more international exposure. Its base case reflects traffic only
slowly recovering toward 2019 levels by the end of 2021, with a
full rebound to 2019 levels only occurring by 2022 or 2023. Jet
fuel prices for the year are assumed at around $1.50/gallon, and
rise to about $1.65/gallon in 2021. Fitch expects all US carriers
to apply for and accept government grant money under the CARES Act.
Fitch also assumes that airlines broadly reduce capex in 2020.
RATING SENSITIVITIES
Southwest Airlines
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Positive rating actions are unlikely at this time
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Extended reduction in demand for air travel caused by the
pandemic leading to additional borrowing that makes it unlikely for
the company to return to 'BBB+' level credit metrics in the next
one to two years
-- Sustained adjusted debt/EBITDAR above 2.5x
-- FCF margins declining to neutral on a sustained basis
-- FFO fixed-charge coverage falling below 4.0x on a sustained
basis
-- A change in fuel-hedging policies leading to significant
exposure to volatile crude oil
-- Change in management strategy that favors shareholder returns
at the expense of a healthy balance sheet
Delta Air Lines
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- FCF margins moving back to the low single digits
-- EBIT margins in the mid-teens
-- Sustained commitment to conservative financial policies
-- Adjusted debt/EBITDAR sustained around or below 2.5x
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- An extended drop in travel due to the coronavirus pandemic;
-- Sustained adjusted debt/EBITDAR above 3.3x
-- FCF margins declining to neutral on a sustained basis
-- FFO fixed-charge coverage falling below 3.5x on a sustained
basis
-- Change in management strategy that favors shareholder returns
at the expense of a healthy balance sheet
American Airlines
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Adjusted debt/EBITDAR sustained below 4.3x
-- FFO fixed-charge coverage sustained around 2.5x
-- FCF generation above Fitch's base case expectations;
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Adjusted debt/EBITDAR sustained above 6x
-- Failure to obtain government grants and/or sufficient outside
funds to maintain liquidity
-- Evidence of trouble refinancing pending debt maturities
-- EBIT margins failing to return to mid to high single digits
United Airlines
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Adjusted debt/EBITDAR trending towards 3.25x
-- FFO fixed-charge sustained at or above 3x
-- Neutral to positive sustained FCF
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Adjusted debt/EBITDAR sustained above 4x
-- FFO fixed-charge coverage sustained below 2x
-- EBITDAR margins deteriorating into the low double-digit range
-- Persistently negative or negligible FCF
Alaska Air
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Adjusted debt/EBITDAR sustained around or below 2.25x
-- FFO fixed-charge coverage increasing toward 4.0x
-- FCF margins sustained in the mid-single digits
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Gross adjusted leverage rising and remaining above 3.5x
-- FFO fixed-charge coverage towards 3x
-- Sustained EBIT margins in the single digits
JetBlue Airways
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- EBIT margins remaining in high single digits
-- Adjusted debt/EBITDAR sustained below 3.25x
-- FFO fixed-charge coverage remaining above 3.5x
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A prolonged downturn caused by the pandemic that strains
liquidity and materially alters Fitch's forecasts for credit
metrics to return to prior levels by YE 2021
-- Sustained adjusted debt/EBITDAR above 3.75x
-- FFO fixed-charge coverage falling below 3.0x on a sustained
basis
-- EBIT margins remaining in the mid-to-low single digits.
Spirit Airlines
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Adjusted debt/EBITDAR sustained below 4.25x
-- FFO fixed-charge coverage sustained around 3.0x
-- FCF generation above Fitch's base case expectations
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Adjusted debt/EBITDAR sustained above 4.75x
-- EBITDAR margins deteriorating into the low double-digit range
-- FFO fixed-charge coverage sustained at 2x or below
-- Liquidity declining towards 10% of LTM revenue
Air Canada
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Sustained adjusted debt/EBITDAR around 3.0x
-- FFO fixed-charge coverage sustained above 3.5x
-- EBITDAR margins sustained above 15%, EBIT margins above 10%
-- Positive FCF generation over the intermediate term
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Weaker than expected margin performance or higher than
expected borrowing causing leverage to reach or exceed 4.0x
-- FFO fixed-charge coverage around or below 3x
-- Weaker than expected financial performance causing FCF to be
notably below Fitch's expectations
-- A decline in the company's EBIT margin to the low single
digits, EBITDAR margins into the high single digits
Hawaiian Airlines
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Sustained adjusted debt/EBITDAR below 3.75x
-- FFO fixed charge coverage at or above 2.75x
-- Expectations for sustained positive FCF generation
-- EBITDAR margins toward 20%
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Adjusted debt/EBITDAR rising and remaining at or above 4.5x
-- FFO fixed-charge coverage falling below 1.75x
-- A notable drop in tourism to Hawaii caused by a natural
disaster or economic downturn
-- EBITDAR margins falling and remaining in the low teens or
lower
BEST/WORST CASE RATING SCENARIO
Best/Worst Case Rating Scenarios Non-Financial Corporate:
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.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).
Hawaiian Holdings, Inc.
- LT IDR B+; Downgrade
Hawaiian Airlines, Inc.
- LT IDR B+; Downgrade
American Airlines Group, Inc.
- LT IDR B; Downgrade
- Senior unsecured; LT B-; Downgrade
Southwest Airlines Co.
- LT IDR BBB+; Downgrade
- Senior unsecured; LT BBB+; Downgrade
- Senior secured; LT A-; Downgrade
American Airlines, Inc.
- LT IDR B; Downgrade
- Senior secured; LT BB; Downgrade
- Senior unsecured; LT BB-; Downgrade
- Senior secured; LT BB-; Downgrade
United Airlines, Inc.
- LT IDR BB-; Downgrade
- Senior secured; LT BB+; Affirmed
Air Canada
- LT IDR BB; Affirmed
- Senior secured; LT BB+; Affirmed
- Senior unsecured; LT BB; Affirmed
Spirit Airlines, Inc.
- LT IDR BB-; Downgrade
Delta Air Lines
- LT IDR BB+; Downgrade
- Senior unsecured; LT BB+; Downgrade
JetBlue Airways Corporation
- LT IDR BB; Downgrade
- Senior secured; LT BBB-; Affirmed
United Airlines Holdings, Inc.
- LT IDR BB-; Downgrade
- Senior unsecured; LT BB-; Downgrade
Alaska Air Group Inc.
- LT IDR BB+; Downgrade
[*] S&P Alters Various REIT Outlooks to Stable From Positive
------------------------------------------------------------
S&P Global Ratings said REITs are facing unprecedented operational
disruptions and it anticipates rent deferrals will be likely over
the next few months as worldwide social distancing sanctions force
nonessential business to temporarily suspend operations and
consumers to stay indoors. Most businesses are experiencing
short-term closures , and the timing of operations resuming is
uncertain.
"We believe the economic recession as a result of the COVID-19
pandemic, will mute ratings upside over the medium term. Therefore,
we are revising our outlooks to stable from positive on the
entities below. These actions follow a number of downgrades and
outlook changes we have already taken in the North American REIT
sector in the past several weeks, and we will continue to monitor
developments for potential additional impact in the sector," S&P
said.
CareTrust REIT Inc. (BB-/Stable/--)
S&P is affirming the 'BB-' issuer rating on CareTrust REIT Inc.
(CTRE) and the 'BB' issue-level rating on its unsecured notes. It
is revising the outlook to stable from positive given the recent
COVID-19 pandemic and its expectation that the forthcoming economic
fallout will likely pressure its operator rent coverage levels over
the next year while delaying a significant portion of its
acquisition activities into 2021. As of Dec. 31, 2019, CTRE's top
10 operator EBITDAR coverage (which encompasses 84% of its
annualized total rents) was 1.97x, hence providing some cushion to
the expected pressure from rent deferrals or restructured lease
agreements. Moreover, the company recently announced a $150 million
share repurchase program that expires March 31, 2023, which S&P
believes could lead to an uptick in leverage for 2020 depending on
the magnitude and timing of the buybacks. Nevertheless, as of Dec.
31, 2019, CTRE had no significant upcoming debt maturities until
2025 when its $300 million senior unsecured notes come due. CTRE's
portfolio is also entirely unencumbered and the company had
approximately $540 million of capacity under its $600 million
revolving credit facility at year end, augmenting its liquidity
position. Lastly, although S&P believes CTRE has a relatively
smaller and more concentrated portfolio than other health care REIT
peers, the company benefits from having mostly long-term,
triple-net-leases that tend to reduce cash flow volatility.
Corporate Office Properties Trust (BBB-/Stable/--)
S&P is affirming the 'BBB-' issuer and issue-level ratings on
Corporate Office Properties Trust (COPT) and are revising the
outlook to stable from positive. It believes COPT's properties are
relatively well positioned to weather the economic recession as
these are largely critical assets for defense/IT and cyber security
operations for the U.S. government agencies and contractors. As a
result, S&P does not expect a material deterioration in the
company's operating performance. However, S&P believes it is
unlikely that the company will reduce leverage below 5.5x, the
rating agency's trigger for an upgrade in the short to medium term.
As of year-end 2019, COPT had a development pipeline of $683.4
million with 52% yet to be funded through 2022, and the company's
adjusted debt to EBITDA was 6.1x."
Regency Centers Corp. (BBB+/Stable/--)
S&P is affirming the 'BBB+' issuer and issue-level ratings on
Regency and are revising the outlook to stable from positive. It
believes the COVID-19 pandemic will pressure Regency's operating
and credit protection measures over the next year, as the rating
agency anticipates the company will need to give rent deferrals to
an unspecified amount of tenants. While the majority of Regency's
portfolio is grocery-focused and located in densely populated,
affluent coastal markets that have high barriers to entry, S&P
believes Regency will be unable to deleverage to the low-5x area
over the next 12 months, which is a trigger for an upgrade. Regency
has historically managed a conservative balance sheet and a strong
liquidity profile that S&P believes will help it manage the tenant
distress the rating agency anticipates to be pronounced over the
next few months.
W.P. Carey Inc. (BBB/Stable/--)
S&P is affirming the 'BBB' issuer and issue-level ratings on W.P.
Carey Inc. (WPC) and is revising the outlook to stable from
positive. It sees limited operating disruption at WPC's operating
properties, in general, given the company's well diversified
portfolio by property type, geographies, and tenants under
triple-net leases. S&P also thinks the company's long-term leases
and contractual rent increases, will likely provide additional
resiliency through this economic downturn. Moreover, WPC's
portfolio largely consists of sale and lease back properties, which
S&P believes further increases tenant's willingness to maintain
those properties operational. S&P notes that WPC's exposure to
retail customers (20.9% of ABR) could result in modest rent
deferrals or concessions, as well as its exposure to hotels with
Marriot Corporation (BBB-/CreditWatch Negative) accounting for 1.8%
of ABR. However, S&P expects only a limited impact on the overall
performance at this point. WPC does not have any significant
upcoming debt maturities and has ample access under its revolving
credit facility which was recently renewed and is due in 2025. S&P
expects the company will fund its capital requirements with
internal cash flows and the revolving facility and the rating
agency expects credit metrics will remain relatively stable.
However, S&P believes it's unlikely that WPC will reduce debt to
EBITDA further from the 6.0x it showed as of year-end 2019.
[^] 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 AAL* MM 59,995.0 (118.0) (10,105.0)
AMERICAN AIRLINE A1G GR 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 AZO US 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-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 BHVNEUR EU 344.3 (7.4) 262.1
BIOHAVEN PHARMAC 2VN GR 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 TH 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A BE US 1,322.6 (167.9) (101.3)
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)
BLUE BIRD CORP 4RB GR 360.9 (67.9) 29.9
BLUE BIRD CORP BLBDEUR EU 360.9 (67.9) 29.9
BLUE BIRD CORP 4RB GZ 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 BCO GR 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 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 EAT US 2,503.7 (568.9) (328.1)
BRINKER INTL BKJ GR 2,503.7 (568.9) (328.1)
BRINKER INTL EAT2EUR EU 2,503.7 (568.9) (328.1)
BRINKER INTL BKJ QT 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 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
CAMPING WORLD-A CWH US 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 C2G TH 2,935.9 (627.0) 314.0
CDK GLOBAL INC CDKEUR EU 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 7CF GR 2,581.1 (10.0) (30.0)
CEDAR FAIR LP FUN1EUR EU 2,581.1 (10.0) (30.0)
CEDAR FAIR LP FUN US 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 CBBEUR EU 2,653.8 (140.0) (119.7)
CINCINNATI BELL CBB US 2,653.8 (140.0) (119.7)
CINCINNATI BELL CIB1 GR 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
COMMUNITY HEALTH CYH US 15,609.0 (1,639.0) 1,145.0
COMMUNITY HEALTH CG5 GR 15,609.0 (1,639.0) 1,145.0
COMMUNITY HEALTH CG5 QT 15,609.0 (1,639.0) 1,145.0
COMMUNITY HEALTH CYH1EUR EU 15,609.0 (1,639.0) 1,145.0
COMMUNITY HEALTH CG5 TH 15,609.0 (1,639.0) 1,145.0
CYTOKINETICS INC KK3A GR 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
CYTOKINETICS INC CYTK US 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 SW 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DBD GR 3,790.6 (506.3) 292.4
DIEBOLD NIXDORF DBD US 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 DIN US 2,049.5 (241.8) (11.0)
DINE BRANDS GLOB IHP GR 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 DR3 GZ 3,716.5 (92.2) (328.0)
DOLLARAMA INC DOLEUR EU 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 TH 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 EZV GZ 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 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 2DB QT 3,920.0 (588.0) 324.9
DUNKIN' BRANDS G DNKNEUR EU 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
GLOBALSCAPE INC GSB US 34.6 (36.3) (7.5)
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 G6G GR 1,526.2 (691.1) 462.4
GRAFTECH INTERNA G6G TH 1,526.2 (691.1) 462.4
GRAFTECH INTERNA EAFEUR EU 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 US 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 QT 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRBEUR EU 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 2BH TE 45,058.0 (565.0) 3,439.0
HCA HEALTHCARE I HCAEUR EU 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 HD AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HDC 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 HPQ US 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 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 HPQ* MM 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 GR 235.3 (76.1) 131.5
IMMUNOGEN INC IMU TH 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 IMGN* MM 235.3 (76.1) 131.5
IMMUNOGEN INC IMU QT 235.3 (76.1) 131.5
IMMUNOGEN INC IMGN US 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 INO GR 161.4 (37.4) 19.6
INSEEGO CORP INSGEUR EU 161.4 (37.4) 19.6
INSEEGO CORP INO GZ 161.4 (37.4) 19.6
IRONWOOD PHARMAC I76 GR 402.7 (93.3) 265.9
IRONWOOD PHARMAC I76 TH 402.7 (93.3) 265.9
IRONWOOD PHARMAC IRWD US 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 EB 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSES IX 18.7 (16.4) (20.9)
L BRANDS INC LTD GR 10,125.0 (1,495.0) 873.0
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 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
LA JOLLA PHARM LJPC US 132.2 (56.0) 72.9
LA JOLLA PHARM LJPP QT 132.2 (56.0) 72.9
LA JOLLA PHARM LJPP GR 132.2 (56.0) 72.9
LENNOX INTL INC LXI GR 2,034.9 (170.2) 118.2
LENNOX INTL INC LII US 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 MAS US 5,027.0 (56.0) 1,163.0
MASCO CORP MSQ GR 5,027.0 (56.0) 1,163.0
MASCO CORP MSQ QT 5,027.0 (56.0) 1,163.0
MASCO CORP MAS1EUR EU 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 US 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD SW 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 TH 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA GR 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 MTLA GZ 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MSI1EUR EU 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 1M4 GR 784.8 (623.0) 212.8
MSG NETWORKS- A 1M4 QT 784.8 (623.0) 212.8
MSG NETWORKS- A MSGNEUR EU 784.8 (623.0) 212.8
MSG NETWORKS- A 1M4 TH 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 NAVEUR EU 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 IHR QT 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR GZ 6,363.0 (3,739.0) 1,256.0
NEW ENG RLTY-LP NEN US 294.3 (37.8) -
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 3O8 GR 137.0 (109.0) 48.3
OMEROS CORP OMER US 137.0 (109.0) 48.3
OMEROS CORP 3O8 QT 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
OMNIA WELLNESS I GLLXD US 0.0 (0.0) (0.0)
PAPA JOHN'S INTL PP1 GR 730.7 (59.7) (26.4)
PAPA JOHN'S INTL PZZA US 730.7 (59.7) (26.4)
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)
PARATEK PHARMACE N4CN GR 251.1 (39.6) 219.2
PARATEK PHARMACE N4CN TH 251.1 (39.6) 219.2
PARATEK PHARMACE PRTK US 251.1 (39.6) 219.2
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 PLNT1EUR EU 1,717.2 (707.8) 394.7
PLANET FITNESS-A 3PL QT 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 RDUSEUR EU 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 QT 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
RECRO PHARMA INC RAH GR 110.5 (6.7) 53.7
REVLON INC-A RVL1 GR 2,980.6 (1,221.2) 154.5
REVLON INC-A REV US 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 QT 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 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* MM 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 US 9,759.9 (3,651.0) (714.0)
SBA COMM CORP SBACEUR EU 9,759.9 (3,651.0) (714.0)
SBA COMM CORP 4SB QT 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 RDO TH 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 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 6FE TH 2,882.5 (186.9) 36.5
SIX FLAGS ENTERT 6FE QT 2,882.5 (186.9) 36.5
SIX FLAGS ENTERT SIX US 2,882.5 (186.9) 36.5
SLEEP NUMBER COR SL2 GR 806.0 (159.4) (434.4)
SLEEP NUMBER COR SNBR US 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 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 SBUX PE 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 US 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 SBUXD AR 27,731.3 (6,759.1) (2,775.8)
STARBUCKS-CEDEAR SBUX AR 27,731.3 (6,759.1) (2,775.8)
TAILORED BRANDS TLRD* MM 2,419.0 (98.3) 206.4
TAUBMAN CENTERS TU8 GR 4,515.5 (177.4) -
TAUBMAN CENTERS TCO US 4,515.5 (177.4) -
TAUBMAN CENTERS TCO2EUR EU 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 T7D QT 18,156.0 (4,299.0) 3,302.0
TRANSDIGM GROUP TDGEUR EU 18,156.0 (4,299.0) 3,302.0
TRILLIUM THERAPE TRIL US 33.0 (0.2) 12.7
TRILLIUM THERAPE TRIL CN 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP GR 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 UIS US 2,504.0 (1,228.3) 294.0
UNISYS CORP UIS1 SW 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 TH 2,557.1 (216.3) 721.2
WATERS CORP WAT US 2,557.1 (216.3) 721.2
WATERS CORP WAZ GR 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 1WF TH 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 W3U GR 8,758.5 (39.5) (171.1)
WESTERN UNION WU US 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 W3U GZ 8,758.5 (39.5) (171.1)
WESTERN UNION WUEUR EU 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 WU5 TH 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WU5 GR 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)
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 WYND US 7,453.0 (524.0) 479.0
WYNDHAM DESTINAT WD5 QT 7,453.0 (524.0) 479.0
WYNDHAM DESTINAT WYNEUR EU 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 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 YUM US 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.
This material is copyrighted and any commercial use, resale or
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*** End of Transmission ***