/raid1/www/Hosts/bankrupt/TCR_Public/200505.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, May 5, 2020, Vol. 24, No. 125
Headlines
A-1 INTERNATIONAL: May 26 Disclosure Statement Hearing Set
ABRAXAS PETROLEUM: Egan-Jones Cuts Senior Unsecured Ratings to B+
ADT SECURITY: Egan-Jones Withdraws B Senior Unsecured Ratings
AIKIDO PHARMA: Falls Short of Nasdaq Minimum Bid Requirement
AKORN INC: Falls Short of Nasdaq Minimum Bid Requirement
ALL SORTS OF SERVICES: Plan & Disclosures Due July 2, 2020
AMAGAZI LLC: Unsecureds get 50% of net Profit Each Year
AMERICAN STEEL: May 21 Hearing on Disclosure Statement
ANDES INDUSTRIES: $54.4K Private Sale of PCT's Mesa Assets Approved
ANICHINI INC: Says Suppliers, Customers Hurt by Outbreak
APACHE CORP: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
APX GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR
ARCHDIOCESE OF NEW ORLEANS: Claimants Say Chapter 11 Unnecessary
ARCHDIOCESE OF NEW ORLEANS: In Chapter 11 Due to Abuse Litigation
ARCHDIOCESE OF NEW ORLEANS: Moody's Cuts Rating on $38MM Debt to B1
ARCONIC CORP: S&P Rates New $600MM First-Lien Notes 'BB+'
AUTHENTIC AIR: Unsec. Creditors to Get Up to 100% Under Plan
AVIANCA HOLDINGS: Passenger Numbers Drop 53.3% in March
AVINGER INC: Closes $3.15 Million Equity Offering
AYTU BIOSCIENCE: 500K Rapid Tests Cleared for Shipment from China
BALLY TECHNOLOGIES: Egan-Jones Cuts Senior Unsecured Ratings to BB
BES LLC: Unsecured Creditors to Recover 10% in Plan
BIORESTORATIVE THERAPIES: Ex-Director Has $500K Offer in Bankruptcy
BIOSTAGE INC: Grosses $1.4 Million From Common Stock Sale
BOMBARDIER REC: Moody's Rates New $600MM Sr. Sec. Term Loan 'B1'
BONAVISTA ENERGY: Egan-Jones Cuts Senior Unsecured Ratings to CCC
BRIGGS & STRATTON: Signs 4th Amendment to JPMorgan Credit Agreement
BROWNIE'S MARINE: Awards 1.3 Million Shares to Two Employees
CABOT OIL: Egan-Jones Lowers Senior Unsecured Ratings to BB+
CALCEUS ACQUISITION: Moody's Cuts CFR & Sr. Sec. Rating to B2
CANDELARIO LORA: $1.6M Sale of Rolling Hills Property Dismissed
CAPSTEAD MORTGAGE: Egan-Jones Withdraws B+ Sr. Unsecured Ratings
CARBO CERAMICS: Seeks to Hire Ernst & Young as Auditor
CARBO CERAMICS: Seeks to Hire Okin Adams as Co-Counsel
CARBO CERAMICS: Seeks to Hire Vinson & Elkins as Legal Counsel
CARE FOR LIFE: Unsecureds to Get 1% of Allowed Claims
CARROLL COUNTY ENERGY: Moody's Affirms Ba2 Senior Secured Rating
CBAK ENERGY: Agrees with Atlas to Swap $100,000 Note for Equity
CD II FASHIONS: Involuntary Chapter 11 Case Summary
CEN BIOTECH: Has $5.7M Net Loss for Year Ended Dec. 31, 2019
CENGAGE LEARNING: S&P Removes 'B-' ICR From CreditWatch Positive
CHICK LUMBER: Has Permission to Use Cash Collateral Until June 30
CIMAREX ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB
CIRCLE BAR: Unsecureds Will be Paid At Least 5% of Their Claims
CLOUDCOMMERCE INC: M&K CPAS PLLC Raises Going Concern Doubt
CNX RESOURCES: Egan-Jones Lowers Senior Unsecured Ratings to CC
COLORADO WINDOW: Gets Final OK to Use Cash Collateral Until July 31
CONCHO RESOURCES: Egan-Jones Cuts Senior Unsecured Ratings to B+
CONN'S INC: S&P Downgrades ICR to 'B-'; Outlook Negative
CORVALLIS FEED: Time to Object to Personal Property Sale Shortened
CREATIVE REALITIES: Receives Noncompliance Notice from Nasdaq
CREATIVE REALITIES: Secures $1.55M PPP Loan from Old National
CRIDER AVENUE: Court Approves Disclosure Statement
CSM BAKERY: S&P Downgrades ICR to 'SD' on Maturity Extension
CYTODYN INC: Accumulated Deficit Casts Going Concern Doubt
DEAN FOODS: DOJ Approves Sale Amid Antitrust Concerns
DEL MONTE: Moody's Hikes CFR to Caa1 & Rates $500MM Notes Caa2
DELL INC: Egan-Jones Withdraws BB Sr. Unsecured Ratings
DENBURY RESOURCES: Egan-Jones Cuts Senior Unsecured Ratings to CC
DEVON ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
DIAMOND OFFSHORE: Egan-Jones Lowers Senior Unsecured Ratings to C
DOMINION DIAMOND: Gets CCAA Initial Order; FTI Named Monitor
DOVE REAL ESTATE: Unsecured Creditors to Get 5% in Plan
DOW CHEMICAL: Egan-Jones Withdraws B Senior Unsecured Ratings
DPW HOLDINGS: Adjourns Special Meeting Due to Lack of Quorum
EDGEMARC ENERGY: Unsecureds to Get 2.4% to 13.8% in Plan
ELLSWORTH HANSEN: May 27 Hearing on Disclosure Statement
ENERPLUS CORP: Egan-Jones Cuts Sr. Unsecured Ratings to BB+
EQT CORP: Egan-Jones Lowers Senior Unsecured Ratings to B
ETC SUNOCO: Egan-Jones Withdraws BB- Senior Unsecured Ratings
EVERI PAYMENTS: S&P Affirms 'B' Issuer Credit Rating; Outlook Neg.
FCPR ACQUISITION: Trustee's $305K Sale of All Trucking's Assets OKd
FCPR ACQUISITION: Trustee's $325K Sale of All Plastics' Assets OK'd
FCPR ACQUISITION: Trustee's Approved $660K Sale of Assets Vacated
FEMUR BUYER: Moody's Lowers CFR to Caa2 & Alters Outlook to Stable
FIRST CLASS PRINTING: Judge Prohibits Further Use of IRS Collateral
FORESIGHT ENERGY: Gets Final Nod on DIP Financing, Cash Collateral
GA PAVING: Has Until Aug. 31 to File Plan & Disclosure Statement
GENERAL CANNABIS: CEO & Chairman Agree to Salary Reductions
GLOBAL PARTNERS: S&P Alters Outlook to Negative, Affirms 'B+' ICR
GREENPOINT TACTICAL: CEMI as Broker & Specimens Sale Approved
HADDAD RESTAURANT: May Continue Using Cash Collateral Until May 30
HANKEY O'ROURKE: Cash Collateral Hearing Scheduled for May 14
HOLLYFRONTIER CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB
HUSKY ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
IMAGEWARE SYSTEMS: Delays Filing of 2019 Annual Report
IMAGEWARE SYSTEMS: Lincoln Parks Commits to Buy $10.25M Shares
IMMUCOR INC: S&P Lowers ICR to 'CCC' on Increased Refinancing Risk
IQSTEL INC: Has $5.5MM Net Loss for the Year Ended Dec. 31, 2019
J CREW GROUP: Case Summary & 30 Largest Unsecured Creditors
J.CREW GROUP: Enters Chapter 11 With $1.65B Debt-fo-Equity Deal
JACK IN THE BOX: Egan-Jones Lowers Senior Unsecured Ratings to B-
JDUB'S BREWING: Judge Approves Second Cash Collateral Order
JIMMY LEE THRASH: Burnham Buying Pearl Properties for $400K
JMU LIMITED: Changes Name to "Mercurity Fintech Holding Inc."
LA VINAS: Court Confirms Reorganization Plan
LAREDO PETROLEUM: Egan-Jones Cuts Senior Unsecured Ratings to CCC
LEADING LIFE: S&P Cuts 2017A-B Revenue Bond Rating to 'B(sf)'
LIBBEY INC: Deadline for Making $12M Debt Prepayment Extended
LUMENTUM HOLDINGS: S&P Raises Rating on Convertible Debt to 'BB-'
MAGELLAN HEALTH: Moody's Places Ba1 CFR on Review for Downgrade
MARATHON OIL: Egan-Jones Lowers Senior Unsecured Ratings to BB
MARATHON PETROLEUM: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
MCGRAW-HILL EDUCATION: S&P Lowers ICR to 'B-'; Outlook Negative
MEREDITH CORP: S&P Downgrades ICR to 'B'; Outlook Negative
MLN US HOLDCO: Moody's Lowers CFR to Caa1 & PDR to Caa1-PD
MOBILE ADDICTION: May 21 Disclosure Statement Hearing Set
MODELL’S SPORTING: Case Gets 2nd Reprieve Under Sec. 305
MONTICELLO PIZZA: Unsecureds to Get 100% Without Interest in Plan
MURPHY OIL: Egan-Jones Lowers Senior Unsecured Ratings to CCC
NAB HOLDINGS: S&P Downgrades ICR to 'B-' on Macroeconomic Weakness
NATGASOLINE LLC: S&P Affirms BB- Rating on Senior Secured Debt
NEOVASC INC: Receives Nasdaq Extension to Satisfy Market Cap Rule
NESCO HOLDINGS: S&P Downgrades ICR to CCC+ on Tightening Liquidity
OASIS PETROLEUM: Egan-Jones Cuts Senior Unsecured Ratings to CCC-
OCEAN POWER: Receives $0.9 Million of Non-Dilutive Funding
OECONNECTION LLC: Moody's Affirms 'B3' Corp. Family Rating
OLEUM EXPLORATION: June 4 Disclosure Statement Hearing Set
OREGON CLEAN: S&P Affirms BB- Rating on $530MM Senior Secured Debt
ORIGINCLEAR INC: Holders Convert $10,500 Note Into Equity
PERMICO MIDSTREAM: Case Summary & 18 Unsecured Creditors
PRECIPIO INC: Receives Noncompliance Notice from Nasdaq
PURADYN FILTER: Liggett & Webb, P.A. Raises Going Concern Doubt
QEP RESOURCES: Egan-Jones Lowers Senior Unsecured Ratings to CCC
QUALTEK USA: S&P Lowers ICR to 'B-'; Outlook Negative
RANGE RESOURCES: Egan-Jones Cuts Senior Unsecured Ratings to CCC-
RAVN AIR: Files Plan to Liquidate Assets
REJUVI LABORATORY: Judgment Creditor Proposes 100% Plan
RENAISSANCE HEALTH: Has Until May 8 to File Plan & Disclosures
RENTPATH LLC: S&P Rates $74MM First-Lien DIP Term Loan 'B'
REVLON CONSUMER: Secures $65M Incremental Revolving Commitments
ROCKET SOFTWARE: Moody's Lowers CFR to B3, Outlook Stable
ROCKET SOFTWARE: S&P Lowers ICR to 'B-' on Macroeconomic Weakness
RODRIGUEZ INVESTMENTS: Counsel Must Return $22,500
ROSEHILL RESOURCES: BDO USA LLP Raises Going Concern Doubt
RUBY PIPELINE: S&P Lowers ICR to 'B+'; Outlook Negative
RYERSON HOLDING: S&P Alters Outlook to Negative, Affirms 'B' ICR
SAEXPLORATION HOLDINGS: Board Appoints John Simmons as VP
SAFE FLEET: S&P Alters Outlook to Neg. on Weaker Near-Term Demand
SAKS FIFTH AVENUE: Misses Payment, Reportedly Eyeing Bankruptcy
SEANERGY MARITIME: Prices Approximately $5.2 Million Offering
SILICA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to C
SINTX TECHNOLOGIES: Gets $391K PPP Loan from First State Community
SLM CORP: Egan-Jones Withdraws BB+ Senior Unsecured Ratings
SM ENERGY: Moody's Cuts CFR to Caa1 & Sr. Unsec. Rating to Ca
SOURCE ENERGY: S&P Downgrades ICR to 'CCC-; Outlook Negative
STAR GROUP: Egan-Jones Lowers Senior Unsecured Ratings to BB
SUNESIS PHARMACEUTICALS: Former CFO Serving as Consultant
TARONIS TECHNOLOGIES: Updates its Corporate Headquarters' Address
TOOJAY'S MANAGEMENT: Files for Chapter 11, Plans to Remain Open
TRANS WORLD: Delays Filing of Reports Amid COVID-19 Pandemic
ULTRA PETROLEUM: Ernst & Young LLP Raises Going Concern Doubt
VASCULAR ACCESS: Trustee Hires SSG Advisors as Investment Banker
VERONI BRANDS: L J Soldinger Associates Raises Going Concern Doubt
VIANT MEDICAL: S&P Downgrades ICR to CCC+ on Tightening Liquidity
VILLAGE EAST: May Continue Using Cash Collateral Through May 31
VORNADO REALTY: Egan-Jones Lowers Senior Unsecured Ratings to BB+
WABASH NATIONAL: S&P Lowers ICR to 'BB-'; Outlook Negative
WINSTEAD'S COMPANY: Cash Collateral Use Continued Through May 30
WIREPATH LLC: Moody's Alters Outlook on B3 CFR to Negative
WOLVERINE WORLD WIDE: S&P Downgrades ICR to 'BB'; Outlook Negative
[^] Large Companies with Insolvent Balance Sheet
*********
A-1 INTERNATIONAL: May 26 Disclosure Statement Hearing Set
----------------------------------------------------------
Donald W. Clarke, attorney for Debtor A-1 International, Inc.,
filed with the U.S. Bankruptcy Court for the District of New Jersey
Debtor's Plan and Disclosure Statement.
On April 16, 2020, Judge Stacey L. Meisel ordered that:
* May 26, 2020 at 11:00 A.M. in Courtroom 3A, United States
Bankruptcy Court, 50 Walnut Street, 3rd Floor, Newark, New Jersey
07102 is the hearing on the adequacy of the disclosure statement.
* Notice of said hearing shall be sent by the Clerk of the
Bankruptcy Court in accordance with the provisions of Bankruptcy
Rule 3017(a) at least 28 days prior to the hearing date.
* Written objections to the adequacy of the Disclosure Statement
shall be filed with the Clerk of this Court and served no later
than 14 days prior to the hearing.
A full-text copy of the order dated April 16, 2020, is available at
https://tinyurl.com/y8yggyro from PacerMonitor at no charge.
About A-1 International
A-1 International, Inc. -- http://www.aoneonline.com/-- provides
mail center and related office management services, logistics and
warehouse solutions, and local same-day rush delivery services in
New York, New Jersey, Michigan, and Pennsylvania markets. A-1
International is a privately held company with headquarters based
in Union, New Jersey.
A-1 International filed a Chapter 11 petition (Bankr. D.N.J. Case
No. 18-28512) on Sept. 17, 2018. In the petition signed by Ronald
DeSena, president, the Debtor disclosed $2,449,826 in assets
and$2,305,684 in liabilities. Judge Stacey L. Meisel is the case
judge. The Debtor is represented by Daniel Stolz, Esq. at
Wasserman, Jurista & Stolz, P.C.
ABRAXAS PETROLEUM: Egan-Jones Cuts Senior Unsecured Ratings to B+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Abraxas Petroleum Corporation to B+ from BB-.
Headquartered in San Antonio, Texas, Abraxas Petroleum Corporation
operates as an exploration and production company. The Company
explores and develops oil and natural gas.
ADT SECURITY: Egan-Jones Withdraws B Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 23, 2020, withdrew its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by The ADT Security Corporation. EJR also withdrew its
'C' rating on LC commercial paper and downgraded the rating on FC
commercial paper issued by the Company to C from A3.
Headquartered in Boca Raton, Florida, The ADT Security Corporation
provides security systems. The Company offers home security,
cameras, fire alarms, smoke detectors, flood sensors, and automated
door locks.
AIKIDO PHARMA: Falls Short of Nasdaq Minimum Bid Requirement
------------------------------------------------------------
AIkido Pharma Inc. received a staff deficiency notice from The
Nasdaq Stock Market on April 28, 2020, informing the Company that
its common stock, par value $0.0001 per share, failed to comply
with the $1.00 minimum bid price required for continued listing on
The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2).
Nasdaq's letter advised the Company that, based upon the closing
bid price during the period from March 16, 2020 to April 27, 2020,
the Company no longer meets this test.
Given the current extraordinary market conditions, Nasdaq has
determined to toll the compliance periods for the bid price and
market value of publicly held shares requirements through June 30,
2020. Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the
Company has been provided with a compliance period of 180 calendar
days, or until Dec. 28, 2020, to regain compliance with the minimum
bid price requirement. To regain compliance, the closing bid price
of the Company's common stock must meet or exceed $1.00 per share
for a minimum of 10 consecutive business days prior to Dec. 28,
2020.
About AIkido
AIkido fka Spherix Incorporated was initially formed in 1967 and is
a biotechnology company with a diverse portfolio of small-molecule
anti-cancer therapeutics. The Company's platform consists of
patented technology from leading universities and researchers and
it is currently in the process of developing an innovative
therapeutic drug platform through strong partnerships with world
renowned educational institutions, including The University of
Texas at Austin and Wake Forest University. The Company's diverse
pipeline of therapeutics includes therapies for pancreatic cancer,
acute myeloid leukemia (AML) and acute lymphoblastic leukemia
(ALL). In addition, the Company is constantly seeking to grow its
pipeline to treat unmet medical needs in oncology.
Spherix Incorporated reported a net loss of $4.18 million for the
year ended Dec. 31, 2019, compared to net income of $1.73 million
for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had $11.28 million in total assets, $750,000 in total liabilities,
and $10.53 million in total stockholders' equity.
Marcum LLP, in New York, NY, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated Jan. 31,
2020 citing that the Company has historically incurred losses from
operations and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
AKORN INC: Falls Short of Nasdaq Minimum Bid Requirement
--------------------------------------------------------
Akorn, Inc. received written notice from the staff of the Listing
Qualifications Department of The Nasdaq Stock Market on April 27,
2020 that the Company was not in compliance with Nasdaq's Listing
Rule 5450(a)(1), as the closing bid price of the Company's common
stock had been below $1.00 per share for 30 consecutive business
days.
Nasdaq also notified the Company that, due to the global market
impact caused by coronavirus, Nasdaq has tolled the compliance
period for the Minimum Bid Price Requirement through June 30, 2020.
The compliance period for the Minimum Bid Price Requirement will
be reinstated on July 1, 2020. As a result, the Company will have
180 calendar days from July 1, 2020, or until Dec. 28, 2020, to
regain compliance.
The Company may regain compliance with the Minimum Bid Price
Requirement if the closing bid price of its common stock is $1.00
per share or more for a minimum of ten consecutive business days at
any time prior to December 28, 2020. If the Company is not in
compliance by Dec. 28, 2020, the Company may be eligible for
additional time. The Company's failure to regain compliance during
this period, including any extensions that may be granted by
Nasdaq, could result in delisting.
The notification of noncompliance had no immediate effect on the
listing or trading of the Company’s common stock, which continues
to trade on The Nasdaq Global Select Market under the symbol AKRX.
No determination regarding the Company's response has been made at
this time. There can be no assurance that the Company will be able
to regain compliance with the Minimum Bid Price Requirement or will
otherwise be in compliance with other Nasdaq listing criteria.
About Akorn
Headquartered in Lake Forest, Illinois, Akorn, Inc. --
http://www.akorn.com/-- is a specialty pharmaceutical company
engaged in the development, manufacture and marketing of
multi-source and branded pharmaceuticals. Akorn has manufacturing
facilities located in Decatur, Illinois; Somerset, New Jersey;
Amityville, New York; Hettlingen, Switzerland and Paonta Sahib,
India that manufacture ophthalmic, injectable and specialty sterile
and non-sterile pharmaceuticals.
Akorn reported a net loss of $226.8 million for the year ended Dec.
31, 2019, compared to a net loss of $401.91 million on $694.02
million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the
Company had $1.28 billion in total assets, $1.05 billion in total
liabilities, and $234.29 million in total shareholders' equity.
BDO USA, LLP, in Chicago, Illinois, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
Feb. 26, 2020, citing that the Company has suffered recurring
losses from operations and has a net working capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
* * *
As reported by the TCR on Feb. 24, 2020, Moody's Investors Service
downgraded the ratings of Akorn, Inc. including the Corporate
Family Rating to Caa3 from Caa1. The downgrade reflects the high
risk of a near-term bankruptcy filing by Akorn, given its ongoing
litigation and $845 million term loan maturity in April 2021.
Also in February 2020, S&P Global Ratings lowered its issuer credit
rating on Akorn Inc. to 'CCC-' from 'B-' with negative outlook.
The negative outlook reflects the increasing possibility that Akorn
will file for Chapter 11 protection under the U.S. Bankruptcy Code
in the next six months to facilitate repayment of its outstanding
debt.
ALL SORTS OF SERVICES: Plan & Disclosures Due July 2, 2020
----------------------------------------------------------
Judge Michael G. Williamson in Tampa, Florida, has entered an order
setting a July 2, 2020 deadline for All Sorts of Services of
America, Inc. d/b/a Chimney Cricket, to file a plan and disclosure
statement.
If the Debtor fails to file a Plan and Disclosure Statement by the
Filing Deadline, the Court shall issue an Order to Show Cause why
the case should not be dismissed or converted to a Chapter 7 case
pursuant to section 1112(b)(1) of the Bankruptcy Code.
About All Sorts of Services of America
Headquartered in Plymouth, Mich., All Sorts of Services of America,
Inc. provides masonry work, fireplace, and chimney services,
serving the entire Cleveland-Metro and Toledo, Ohio areas. It
conducts business under the name Chimney Cricket. For more
information, visit https://www.chimneycricket.com
All Sorts of Services of America sought protection under Chapter
11
of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-01953) on
March 5, 2020. At the time of the filing, the Debtor had estimated
assets of between $100,000 and $500,000 and liabilities of between
$1 million and $10 million. The Debtor is represented by Cole &
Cole Law, P.A.
AMAGAZI LLC: Unsecureds get 50% of net Profit Each Year
-------------------------------------------------------
Amagazi, Inc., has proposed a Chapter 11 plan.
General Unsecured Claims are iImpaired. The allowed general
unsecured creditors will be paid as much of what they are owed as
possible and will be mailed Amagazi, Inc.'s previous year's
financial statement each year for five years, during the term of
the five-year Plan. Each year, if the Reorganized Debtor made a
profit, the Reorganized Debtor shall pay to the allowed unsecured
creditors their pro rata share of 50% of the net profit for the
previous year, in 12 monthly payments beginning on September 15th
of the year in which the financial statement is mailed to these
creditors.
Insiders will not be paid any prepetition claims during the term of
the Plan and their claims will be discharged upon confirmation of
the Plan.
Shareholder Christopher Johnsen (100% owner) will retain his
interest in the Reorganized Debtor but will not receive dividends
during the term of the plan of reorganization.
Payments and distributions under the Plan will be funded by through
future income from the operations of the company.
A full-text copy of the Disclosure Statement dated April 15, 2020,
is available at https://tinyurl.com/ybealn59 from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Margaret M. McClure
909 Fannin, Suite 3810
Houston, Texas 77010
Tel: (713) 659-1333
Fax: (713) 658-0334
E-mail: Margaret@mmmcclurelaw.com
About Amagazi LLC
Amagazi LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Tex. Case No. 19-35476) on Sept. 30, 2019. At
the time of the filing, the Debtor disclosed assets of between
$100,001 and $500,000 and liabilities of the same range. The case
is assigned to Judge Jeffrey P. Norman. The Debtor tapped the Law
Office of Margaret M. McClure as its legal counsel.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
AMERICAN STEEL: May 21 Hearing on Disclosure Statement
------------------------------------------------------
Judge Karen K. Specie has ordered that the hearing to consider the
approval of the amended disclosure statement filed by American
Steel Processing Company will be held via CourtCall on May 21, 2020
at 02:00 PM, Eastern Time.
May 14, 2020, is fixed as the last day for filing and serving
written objections to the amended disclosure statement.
About American Steel Processing Company
American Steel Processing Company is a steel fabricator in Panama
City, Florida, founded in July 1998. American Steel Processing
filed a Chapter 11 petition (Bankr. N.D. Fla. Case No. 18-50060) on
Feb. 26, 2018. In the petition signed by Thomas J. Fanell,
president and CEO, the Debtor estimated assets and liabilities at
$1 million to $10 million. The case is assigned to Judge Karen K.
Specie. The Charles Wynn Law Offices, P.A., is the Debtor's
counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
ANDES INDUSTRIES: $54.4K Private Sale of PCT's Mesa Assets Approved
-------------------------------------------------------------------
Judge Paul Sala of the U.S. Bankruptcy Court for the District of
Arizona authorized the private sales by Andes Industries, Inc. and
PCT International, Inc. of the following PCT assets that were
located at 2260 West Broadway Road, Building 9, Mesa, Arizona: (i)
pallet racks, consisting of several racks previously used in PCT's
facility, to Casters of Arizona for $15,210; (ii) equipment,
consisting of various pieces of industrial machinery and related
items, to McFarland Machine and Engineering for $30,000; (iii)
electronics, consisting of various pieces of electronic equipment
that PCT no longer needs and certain other miscellaneous items, to
certain employees for $2,095; and (iv) two forklifts to Recon
Enterprise, LLC for $7,000.
The sale is free and clear of all liens, claims, encumbrances, and
interests.
The 14-day stay imposed by Bankruptcy Rule 6004(h) is waived so
that the sale of the Property may occur any time after entry of
this Order.
About Andes Industries
and PCT International
Creditors EZconn Corporation, Crestwood Capital Corporation, and
Devon Investment Inc. filed involuntary bankruptcy petitions
against Andes Industries, Inc. and PCT International, Inc. under
Chapter 7 of the Bankruptcy Code in the U.S. Bankruptcy Court for
the District of Arizona.
On Dec. 4, 2019, the Chapter 7 cases were converted to cases under
Chapter 11 (Bankr. D. Ariz. Lead Case No. 19-14585).
Judge Paul Sala oversees the cases.
Sacks Tierney P.A. is the Debtors' legal counsel.
ANICHINI INC: Says Suppliers, Customers Hurt by Outbreak
--------------------------------------------------------
John Lippman, reporting for Valley News Business, reports that
Tunbridge, Vermont-based Anichini Inc. has sought bankruptcy
protection
as the COVID-19 impacted its suppliers and customers.
According to the report, the luxury designer and manufacturer of
home furnishings, linens and beddings sources its majority of its
fabrics from Italian mills and the hotel industry is its largest
customer. Anichini has a retail store in Quechee and sells online
to customers, both suffered massive customer spending pullback.
Anichini also has a retail store in Quechee and sells online to
customers, both of which have suffered from massive pullback in
consumer spending.
"Many of our suppliers are in Italy. Hotels are a major market.
Customers travel from around the world to visit our store. We
could have weathered any of these challenges, possibly more,"
Anichini owner Susan Dollenmaier wrote to Valley News' John Lippman
in an email. "But to fight on many fronts while dealing with
COVID-19 was more than a little company can bear."
Anichini owner Susan Doenmaier said, "Many of our suppliers are in
Italy. Hotels are a major market. Customers travel from around
the world to visit our store. We could have weathered any of these
challenges, possibly more. But to fight on many fronts while
dealing with COVID-19 was more than a little company can bear."
In March 2020, it filed for Chapter 11 reorganization, allowing
Anichini to continue business operations while negotiating with
creditors. The approval and signing of Small Business
Reorganization Act in 2019 streamlines the small business
bankruptcy process, making it easier for Dollenmaier to control
Anichini despite the challenges from previous investor who holds
secured claim of $600,000.
The company’s bankruptcy petition lists $1.1 million of secured
claims, $362,000 of unsecured claims, and $953,000 in assets.
About Anichini
Anichini, Inc. -- https://anichini.com -- is an American luxury
textiles company based in Tunbridge, Vermont. The company is a
manufacturer and importer of luxury linens and textiles and
produces hand made products. Anichini supplies hotels, resorts, and
spas, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. Vt. Case No. 20-10090), on March 12, 2020. The petition
was signed by Susan Dollenmaier, its sole shareholder. As of the
time of filing, the Debtor had estimated assets of $500,000 to $1
million and estimated liabilities of $1 million to $10 million.
The Hon. Colleen A. Brown oversees the case. The Debtor tapped
Drummond Woodsum as its counsel.
APACHE CORP: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
---------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Apache Corporation to BB- from BB.
Apache Corporation is a company engaged in hydrocarbon exploration.
It is organized in Delaware and headquartered in Houston.
APX GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR
-----------------------------------------------------------
S&P Global Ratings revised its rating outlook on Provo, Utah-based
APX Group Holdings Inc. (d.b.a. Vivint) to negative from stable.
Concurrently, S&P affirmed all of its ratings on the company,
including its 'B-' issuer credit rating.
Lower expected consumer spending could hurt demand for Vivint
products. Given the weak economic environment that has resulted
from the COVID-19 pandemic (U.S. GDP to contract 5.2% in 2020,
assuming a recovery in the second half of the year), high levels of
unemployment (U.S. unemployment could reach 19% in May), and weak
consumer confidence (with consumer spending plunging 33.5% in
second-quarter 2020), S&P now anticipates lower new subscriber
growth for Vivint. In addition, 2020 subscriber renewals could see
a spike in attrition if consumer confidence does not improve. Those
factors will affect recurring monthly revenue and pressure credit
metrics, with leverage remaining well above 7x.
The negative outlook reflects the risk that the U.S. economic
recession, extended impact of COVID-19, or weaker-than-expected
consumer spending on residential alarm monitoring could hurt new
subscriber growth, subscriber attrition, payment forbearance or
bad-debt expense, and potentially result in ongoing cash flow
deficits.
"We could lower our rating on Vivint within the next 12-18 months
if we expect ongoing cash flow deficits that impair its liquidity
position or operating performance such that we conclude that it
will struggle to refinance its debt maturities on a timely basis.
We could also lower our rating if ongoing cash flow deficits or
high leverage cause use to conclude the company's capital structure
is unsustainable," S&P said.
"We could revise the outlook to stable if we expect a restoration
of operating trends with new subscriber growth, stable attrition,
cash flow generation, and sufficient liquidity," S&P said.
ARCHDIOCESE OF NEW ORLEANS: Claimants Say Chapter 11 Unnecessary
----------------------------------------------------------------
The Archdiocese of New Orleans filed Chapter 11 bankruptcy
protection on May 2, 2020 to re-organize its finances and to deal
with its ongoing clergy sex abuse lawsuits and the shutdown of the
church due to COVID-19.
However, the attorneys who represent several victims say it is
unnecessary, WVUE reports.
Attorney Roger Stetter has represented dozens of clergy sex abuse
victims and says he was currently awaiting mediation in five cases.
Now all that is on hold.
"This is a scheme to evade its moral obligation to the victim,"
Stetter said.
A group of attorneys involved in the sexual abuse litigation is
likely to form a committee that will oppose the Archdiocese's
reorganization plan.
Several years ago, Archbishop Gregory Aymond presided dozens of
clergy sex abuse-related lawsuits that dated back decades and these
lawsuits and those upcoming trials weren't going away.
WVUE asked Aymond, "Are these expenses about to get a whole lot
worse?" "Yes, lawsuits and mediation and as the numbers increased
it made us look at this in a different way," Archbishop Aymond
replied.
According to Aymond, all the pending sexual abuse cases are
expected to move to the federal bankruptcy court and a federal
judge will handle these cases on a case by case basis.
"We believe this is the most charitable and just way to do it all
victims are treated equally that we want to compensate all of
them,"
said Aymond.
"We're not trying to avoid anything. We're trying to walk with
them and be as generous as we can," Aymond said.
About the Archdiocese of New Orleans
The Roman Catholic Church of the Archdiocese of New Orleans --
https://www.nolacatholic.org -- is a non-profit religious
corporation incorporated under the laws of the State of Louisiana.
Created as a diocese in 1793, and established as an archdiocese in
1850, the Archdiocese of New Orleans has educated hundreds of
thousands in its schools, provided religious services to its
churches and provided charitable assistance to individuals in need,
including those affected by hurricanes, floods, natural disasters,
war, civil unrest, plagues, epidemics, and illness. Currently, the
Archdiocese's geographic footprint occupies over 4,200 square miles
in southeast Louisiana and includes eight civil parishes -
Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St.
John the Baptist, St. Tammany, and Washington.
The Roman Catholic Church for the Archdiocese of New Orleans sought
Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1,
2020.
The Archdiocese was estimated to have $100 million to $500 million
in assets and liabilities as of the bankruptcy filing.
The Hon. Meredith S. Grabill is the case judge.
Jones Walker LLP, led by Mark A. Mintz, R. Patrick Vance, Elizabeth
J. Futrell, and Laura F. Ashley, serves as counsel to the Debtor.
Donlin, Recano & Company, Inc., is the claims agent.
ARCHDIOCESE OF NEW ORLEANS: In Chapter 11 Due to Abuse Litigation
-----------------------------------------------------------------
The Administrative Offices of the Archdiocese of New Orleans said
May 1, 2020, that in order to continue effectively ministering to
the needs of the church community and victims and survivors of
clergy abuse, it has filed for reorganization under Chapter 11 of
the Bankruptcy Code.
The move was necessitated by the growing financial strain caused by
litigation stemming from decades-old incidents of clergy abuse as
well as ongoing budget challenges. The unforeseen circumstances
surrounding COVID-19 have added more financial hardships to an
already difficult situation.
This filing only affects the Archdiocesan administrative offices
housed mostly at Walmsley Ave. and Howard Ave. The Archdiocese's
action will not affect individual church parishes, their schools,
schools run by the various religious orders, or ministries of the
church. These offices will continue daily ministry as usual.
"Most importantly, I extend daily prayers to those who are victims
and survivors. May God give you healing and renewed hope," wrote
the archbishop. In a letter to the clergy, religious, and laity of
the archdiocese released today, Archbishop Gregory M. Aymond, said
the voluntary filing will allow the Archdiocese to implement a
financial reorganization plan that prioritizes the continuance of
the ministry of Christ.
"I, along with a team of advisors, believe that reorganization will
create an opportunity for us to renew our commitment to God’s
people and the New Orleans community by restructuring our
financials and creating a path forward in hopes that we can
continue and strengthen our core mission: bringing Christ to
others."
The intention of the filing is to allow time to develop a
reorganization plan detailing how available assets and insurance
coverage will be used to settle outstanding claims and to negotiate
reasonable settlements while enabling the administrative offices to
continue and emerge better prepared for the future. This
reorganization will also allow the Archdiocese to address remaining
clergy abuse cases in a way that will allow funds to go directly to
victims instead of funding prolonged, costly litigation.
"I strongly believe that this path will allow victims and survivors
of clergy abuse to resolve their claims in a fair and timely
manner," said Archbishop Aymond. "No parish funds will be used to
settle claims. It is a pastor’s responsibility to decide how
parish funds should be used to support parish ministry and this
process preserves that principle."
Again, this reorganization applies only to the archdiocesan
administrative offices. There is no official timetable for the
reorganization, but Archbishop Aymond said he hopes to conclude
this process as soon as possible. "God is faithful, and he will
guide us in this process. It is my prayer that through His grace,
the Archdiocese of New Orleans will emerge from this experience
stronger with a renewed commitment to our mission."
Information on the Archdiocese of New Orleans' reorganization and a
video message from Archbishop Aymond is available at
http://www.nolacatholic.org/renew
About the Archdiocese of New Orleans
The Roman Catholic Church of the Archdiocese of New Orleans --
https://www.nolacatholic.org -- is a non-profit religious
corporation incorporated under the laws of the State of Louisiana.
Created as a diocese in 1793, and established as an archdiocese in
1850, the Archdiocese of New Orleans has educated hundreds of
thousands in its schools, provided religious services to its
churches and provided charitable assistance to individuals in need,
including those affected by hurricanes, floods, natural disasters,
war, civil unrest, plagues, epidemics, and illness. Currently, the
Archdiocese's geographic footprint occupies over 4,200 square miles
in southeast Louisiana and includes eight civil parishes --
Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St.
John the Baptist, St. Tammany, and Washington.
The Roman Catholic Church for the Archdiocese of New Orleans sought
Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1,
2020.
The Archdiocese was estimated to have $100 million to $500 million
in assets and liabilities as of the bankruptcy filing.
The Hon. Meredith S. Grabill is the case judge.
Jones Walker LLP, led by Mark A. Mintz, R. Patrick Vance, Elizabeth
J. Futrell, and Laura F. Ashley, serves as counsel to the Debtor.
Donlin, Recano & Company, Inc., is the claims agent.
ARCHDIOCESE OF NEW ORLEANS: Moody's Cuts Rating on $38MM Debt to B1
-------------------------------------------------------------------
Moody's Investors Service has downgraded the rating of the
Archdiocese of New Orleans to B1 from Baa1 and placed the rating on
review for further downgrade. The action impacts approximately $38
million of rated debt issued through the Louisiana Public
Facilities Authority. The outlook was changed to rating under
review from negative.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATING
The downgrade to B1 is driven by the Archdiocese's announcement [1]
that it has filed for Chapter 11 bankruptcy and the undetermined
status of its ability to fulfill a broad variety of financial
obligations and legal claims, including sexual misconduct claims.
Given the Archdiocese's already pressured operating cash flow, at a
low 7% for fiscal 2019, the impact of coronavirus is likely to
further strain operations due to suspension of church and school
activities that provide revenue for the Archdiocese. Additionally,
it has a large pension obligation and its own insurance programs,
which will potentially negatively impact expenses in fiscal 2020
and 2021.
The B1 is supported by the Archdiocese's significant financial
reserves, with spendable cash and investments of over $160 million
as of fiscal 2019. It also favorably incorporates its good brand
and strategic positioning as Louisiana's only archdiocese and the
nation's second oldest, with large membership. The rating further
incorporates its understanding, based on bankruptcy filing
documents and Canon law, that the Archdiocese currently has no
intent to default on rated bonds although disposition in bankruptcy
proceedings is uncertain.
Its review will consider additional information regarding the
Archdiocese's ability to fulfill debt obligations, including the
guarantee for St. Anthony's Gardens, as well as potential and
outstanding litigation regarding sexual abuse claims and
vulnerability to the prolonged coronavirus-related impact on
finances and operations.
While it is unlikely over the next one to two years, the rating
could be upgraded in the future if the Archdiocese emerges from
bankruptcy without defaulting on its rated debt, with sufficient
liquidity and operating performance to indicate fiscal stability.
The rating could be downgraded if there are indications of likely
default on or significant impairment of rated debt.
The coronavirus situation has created dislocation across industries
and geographies and triggered urgent challenges for many businesses
and organizations to address. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety. The pandemic
has additional implications for the Archdiocese given its location
in an outbreak epicenter and its widespread operations, including
affiliated schools, churches, and nursing homes. The Archdiocese
cited coronavirus implications in its bankruptcy filing.
LEGAL SECURITY
Bonds are a general unsecured obligation of the archdiocese,
payable from gross revenues, the Archdiocese's general fund and
other legally available funds. A debt service reserve fund is
required if the liquidity covenant falls below 1.0x.
The bonds have three financial covenants. For the debt
calculations, the Archdiocese is required to include 20% of debt of
St. Anthony's Gardens, a senior living facility with fiscal 2019
$48 million of debt guaranteed by the Archdiocese. There is a 1.1 x
liquidity covenant; for fiscal 2019, the Archdiocese reported
3.13x. The Net Worth covenant is at least 1.0x and the Archdiocese
reported 3.66x, declining to 1.9x with 100% SAG debt. The Debt
Service Coverage Ratio is at least 1.0x and the Archdiocese
reported 2.77x in fiscal 2019.
Its rating incorporates the Archdiocese's guarantee of SAG debt to
be 100% of debt service. The guarantee drops to 35% when: 1) the
project is completed; 2) reaches a 1.25x debt service coverage for
the immediately preceding year; and 3) has over 120 days cash on
hand. The guarantee is eliminated when debt service coverage of
1.4x or better is achieved. Once the guarantee is reduced or
eliminated, it cannot be restored.
PROFILE
The Archdiocese of New Orleans, the second oldest archdiocese in
the country, currently operates in the eight civil parishes in the
metropolitan New Orleans area. With almost 520,000 parishioners,
the archdiocese consists of 112 parishes and supports and
administers 79 schools with over 34,000 students. It also provides
administrative support for separately incorporated nursing homes,
affordable senior living facilities and other community service
facilities consistent with the mission of the Archdiocese.
METHODOLOGY
The principal methodology used in these ratings was Nonprofit
Organizations (Other Than Healthcare and Higher Education)
published in May 2019.
ARCONIC CORP: S&P Rates New $600MM First-Lien Notes 'BB+'
---------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '2'
recovery rating to Arconic Corp.'s proposed $600 million first-lien
notes. The '2' recovery rating indicates S&P's expectation for high
recovery (70%-90%; rounded estimate: 75%) in the event of a
default. S&P expects the company to use the proceeds from these
notes to repay its $600 million term loan B. All of its existing
ratings on Arconic remain unchanged following the proposed
transaction, which also includes a $750 million asset-based lending
(ABL) facility to replace its $1 billion cash flow revolver given
its working-capital intensive business.
"We incorporated a significant downside cushion into our credit
ratios when we first assigned our 'BB' long-term issuer credit
rating to Arconic Corp. in January 2020. However, the slowdown in
the aerospace and automotive markets has eroded this buffer against
a deeper or multi-year downturn. After updating our ratio
expectations for the rapidly worsening economic scenarios and
incorporating the company's first-quarter financial indicators from
April 27, we expect its debt leverage to exceed our downgrade
threshold in 2020 before returning below this level in 2021," S&P
said.
Until recently, S&P's ratios had included an about 15% downside
EBITDA buffer for the company to withstand the already slowing
automotive market or the unexpected costs and revenue disruptions
that can occur with the transformation of complex enterprises like
Arconic and its previous parent Howmet. S&P's base-case scenario
now incorporates 15% lower revenue this year based on the company's
sharply reduced aerospace and automotive volumes in the third and
fourth quarters as well as its lower metal price assumptions. About
one-third of Arconic's revenue is exposed to the automotive and
transportation sector, about one-third is exposed to industrial and
packaging, almost 20% is exposed to aerospace, and about 15% is
exposed to construction. A double-digit percent rebound in the
company's volume in 2021 due to S&P's slightly higher metal price
assumptions could contribute to a 10%-15% improvement in its
revenue, though this would still be below its 2019 levels.
"Arconic's gross and EBITDA margins should also decline this year
as lower energy costs and management's measures to limit increased
corporate costs in its first year of stand-alone operation will
only partially offset the rapid drop in its revenue. We assume
reported EBITDA of about $500 million for 2020, which is about 20%
lower than our previous assumption, before potentially rebounding
by 15% in 2021. As such, we estimate that the company's fully
adjusted debt to EBITDA including pension obligations could be 4.5x
in 2020, though it should still be able to convert its weak
earnings into about $150 million of free cash flow after modest
capital expenditure of about $180 million and the release of
working capital from its lower revenue. In contrast, Arconic might
consume cash for working capital amid the improvement in its credit
ratios if its volumes and prices bounce back in early 2021 as we
currently assume," S&P said.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
S&P is updating its recovery analysis on Arconic for the announced
transaction. Its simulated default scenario incorporates a default
occurring because of a decline in earnings from market share losses
or materials substitution. S&P's simulated default scenario assumes
Arconic's creditors would receive the greatest recovery if the
company emerged from bankruptcy as a going concern.
Simulated default assumptions
-- S&P assumes that Arconic defaults in 2025 after losing key
customers because of competition or substitution that is
potentially worsened by prolonged weakness in its core markets.
Therefore, the company's cash flow from operations would be
insufficient to cover its fixed charges related to interest, debt
amortization, and capital outlays.
-- At default, S&P's recovery analysis incorporates a $750 million
ABL credit facility (60% drawn and net of letters of credit), $600
million of proposed first-lien notes, and $600 million in
second-lien notes.
-- Estimated debt claims include about six months of accrued but
unpaid interest outstanding at the point of default.
-- S&P estimates a distressed gross recovery value of
approximately $1.8 billion based on emergence EBITDA of about $325
million (consistent with fixed charges) and a 5.5x EBITDA multiple.
This multiple is in line with the multiples it uses for its
downstream metals peers.
-- S&P's emergence EBITDA assumption incorporates its recovery
assumptions for minimum capital expenditure (2.5% based on
historical evidence) and its standard 15% cyclicality adjustment
for metals processors.
Simplified waterfall
-- Net enterprise value after 5% administrative costs and $750
million of pension obligations: $950 million
-- Estimated first-lien claims at default: $620 million (excluding
60% drawn ABL)
--Recovery expectations for first-lien claims: 70%-90% (rounded
estimate: 75%)
-- Remaining value: $0
AUTHENTIC AIR: Unsec. Creditors to Get Up to 100% Under Plan
------------------------------------------------------------
Debtor Authentic Air, LLC, a Louisiana limited liability company,
filed with the U.S. Bankruptcy Court for the Eastern District of
Louisiana a Plan of Reorganization and a Disclosure Statement on
April 16, 2020.
The Debtor will fund the five-year Plan with revenue generated from
the operation of its HVAC business. General Unsecured Claims will
be paid the full amount of their allowed claim; or a pro rata share
of $60,000. The payments to General Unsecured Claims will be paid
in the amount of $1,000 per month for 60 months.
On the Effective Date, any equity interest of the equity holders
will be terminated and any certificates evidencing same shall be
cancelled, and all such Equity Interests shall be cancelled on the
books of the Debtor. Further, on the Effective Date, Anthony
Ragusa and Jacqueline Ragusa will purchase a new membership
interest in the reorganized Debtor for the sum of $20,000, which
$5,000 will be paid to the Debtor on the Effective Date, and the
remainder will be paid in equal installments of $625 over 24
months.
The Debtor will have approximately $75,000 in cash, including new
capital contribution from Anthony Ragusa in the amount of $5,000 as
of the Effective Date. The Debtor's income varies by season, with
higher income projections in the warmer months and lower income
projections in the cooler months. The Debtor expects business to
pick back up in May and June.
A full-text copy of the Disclosure Statement dated April 16, 2020,
is available at https://tinyurl.com/y95wjp7s from PacerMonitor at
no charge.
Attorneys for the Debtor:
THE DERBES LAW FIRM, L.L.C.
Eric J. Derbes
Frederick L. Bunol
David M. Serio
3027 Ridgelake Drive
Metairie, LA 70002
Tel: (504) 837-1230
Fax: (504) 832-0322
About Authentic Air
Authentic Air, LLC -- http://www.authenticairllc.com/-- is an air
conditioning and heating contractor serving the residential and
commercial clients.
Authentic Air filed for Chapter 11 bankruptcy protection (Bankr.
E.D. La. Case No. 19-13273) on Dec. 6, 2019. In the petition
signed by Anthony Ragusa, managing member, the Debtor listed
$641,751 in assets and $1,801,274 in liabilities. The Debtor is
represented by Eric J. Derbes, Esq., at The Derbes Law Firm, LLC.
AVIANCA HOLDINGS: Passenger Numbers Drop 53.3% in March
-------------------------------------------------------
In March 2020, prior to the cancellation of substantially all of
its passenger flights, Avianca Holdings and its subsidiaries
carried 1,211,810 passengers, a 53.3% decrease over the same period
in 2019. The decrease is driven by the temporary grounding of the
Company's passenger fleet, due to the global coronavirus outbreak.
Capacity, measured in ASKs (available seat kilometers), decreased
41.7%, while passenger traffic, measured in RPKs (revenue passenger
kilometers), decreased 53.5%. The load factor for the month was
64.8%, a decrease of 1,655 bps compared to the same period of 2019.
The decrease across Avianca Holdings 'operating statistics is
driven by the gradual grounding of the Company's passenger fleet
over the course of March 2020, as a result of the global
coronavirus outbreak. The Company's passenger fleet has been fully
grounded since March 25, 2020. Consequently, the Company expects
its operational figures for the month of April to show an even
further year-over-year decrease.
Domestic markets in Colombia, Peru, and Ecuador
In March, the subsidiary airlines of Avianca Holdings transported
within each of these markets a total of 733,818 travelers, down
49.7% when compared to the same period of 2019. Capacity (ASKs)
decreased 40.1% while passenger traffic (RPKs) decreased 51.2%. The
load factor for the month was 64.9%, a 1,473 bps decrease when
compared to the same month of 2019.
International markets
In March, the affiliated airlines of Avianca Holdings transported
477,992 passengers on international routes, down 57.9% when
compared to the same period of 2019. Capacity (ASKs) decreased
42.0%, while passenger traffic (RPKs) decreased 54.0%. The load
factor for the month was 64.7%, an decrease of 1,693 bps when
compared to March 2019.
About Avianca
Avianca is a commercial brand for a collection of passenger
airlines and cargo airlines under the umbrella company Avianca
Holdings S.A. Avianca has a fleet of 158 aircraft, serving 76
destinations in 27 countries within the Americas and Europe.
Avianca reported a net loss of US$893.99 million for the year ended
Dec. 31, 2019, compared to net profit of US$1.14 million the year
ended Dec. 31, 2018.
KPMG S.A.S., in Bogota, Colombia, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated April
26, 2019, on the Company's consolidated financial statements for
the year ended Dec. 31, 2018, citing that the controlling
shareholder of the Company obtained a loan and pledged its shares
in Avianca Holdings S.A. as security for this loan agreement (the
loan agreement), which requires compliance with certain covenants
by the controlling shareholder, including compliance with the
Company financial ratios. Breach of these covenants provides the
lender the right to enforce the security, leading to a change of
control over the Company. A change of control over the Company
would breach covenants included in some loan and financing,
aircraft rental, and other agreements of the Company, which in turn
could trigger early termination or cancelation of these contracts.
On April 10, 2019, the Company was informed by the controlling
shareholder and its lender, that there was a non-compliance with
covenants established in the controlling shareholder's loan
agreement, and no waiver was in place; thus, there is a potential
risk of change of control. The auditors said this circumstance
raises a substantial doubt about the Company's ability to continue
as a going concern.
* * *
In April 2020, Fitch Ratings downgraded Avianca Holdings' Long-Term
Foreign and Local Currency Issuer Default Rating (IDR) to 'C from
'CCC-'. Fitch said Avianca's 'C' rating reflects the announcement
of deferred payments on certain long-term leases and deferred
principal payments on certain loan obligations.
In March 2020, S&P Global Ratings lowered its issuer credit rating
on Colombia-based airline operator Avianca Holdings S.A. (Avianca)
to 'CCC' from 'B-'. S&P said reduced travel demand and capacity
will affect Avianca's credits metrics.
AVINGER INC: Closes $3.15 Million Equity Offering
-------------------------------------------------
Avinger, Inc., has closed an underwritten public offering of
12,600,000 shares of its common stock at a price of $0.25 per
share, for total gross proceeds of approximately $3.15 million,
before deducting underwriting discounts, commissions and other
offering expenses payable by the Company. Additionally, the
Company has granted the underwriters a 45-day option to purchase up
to 15% additional shares of common stock to cover over-allotments,
if any. The shares were offered pursuant to a registration
statement on Form S-1 previously filed with and declared effective
by the Securities and Exchange Commission (SEC). A final
prospectus relating to the offering was filed with the SEC and is
available on the SEC's website at www.sec.gov.
Aegis Capital Corp. is acting as sole bookrunner for the offering.
About Avinger
Headquartered in Redwood City, California, Avinger --
http://www.avinger.com/-- is a commercial-stage medical device
company that designs and develops image-guided, catheter-based
system for the diagnosis and treatment of patients with Peripheral
Artery Disease (PAD).
Avinger reported a net loss applicable to common stockholders of
$23.03 million for the year ended Dec. 31, 2019, compared to a net
loss applicable to common stockholders of $35.69 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$23.82 million in total assets, $16.93 million in total
liabilities, and $6.89 million in total stockholders' equity.
Moss Adams LLP, in San Francisco, California, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 5, 2020, citing that the Company's recurring losses
from operations and its need for additional capital raise
substantial doubt about its ability to continue as a going concern.
AYTU BIOSCIENCE: 500K Rapid Tests Cleared for Shipment from China
-----------------------------------------------------------------
Aytu BioScience, Inc., has received confirmation of export approval
for product shipment by China's Ministry of Commerce for the
Company's COVID-19 IgG/IgM Rapid Test.
Josh Disbrow, chief executive officer of Aytu BioScience,
commented, "The backlog of medical products being exported from
China created a shipment delay, but Aytu's next 500,000 rapid tests
have now been cleared for shipment to the U.S. This export
clearance from China, along with the additional supply we have
secured through our new relationship with Biolidics, gives us great
confidence in our supply chain and ability to provide these needed
test kits to the U.S. medical community. Our shipments remain on
track for delivery and, upon receipt, will be distributed to U.S.
customers."
About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) --
http://www.aytubio.com-- is a commercial-stage specialty
pharmaceutical company focused on commercializing novel products
that address significant patient needs. The company currently
markets a portfolio of prescription products addressing large
primary care and pediatric markets. The primary care portfolio
includes (i) Natesto, an FDA-approved nasal formulation of
testosterone for men with hypogonadism, (ii) ZolpiMist, an
FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra
XR, an FDA-approved 12-hour codeine-based antitussive syrup.
Aytu Bioscience reported a net loss of $27.13 million for the year
ended June 30, 2019, compared to a net loss of $10.18 million for
the year ended June 30, 2018. As of Dec. 31, 2019, the Company had
$74.48 million in total assets, $57.39 million in total
liabilities, and $16.76 million in total stockholders' equity.
Plante & Moran, PLLC, in Denver, CO, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
Sept. 26, 2019, on the Company's consolidated financial statements
for the year ended June 30, 2019, citing that the Company has
suffered recurring losses from operations and has an accumulated
deficit that raise substantial doubt about its ability to continue
as a going concern.
BALLY TECHNOLOGIES: Egan-Jones Cuts Senior Unsecured Ratings to BB
------------------------------------------------------------------
Egan-Jones Ratings Company, on April 23, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Bally Technologies Inc. to BB from BB+.
Bally Technologies, Inc. is an American manufacturer of slot
machines and other gaming technology based in Enterprise, Nevada.
BES LLC: Unsecured Creditors to Recover 10% in Plan
---------------------------------------------------
BES LLC filed a First Amended Plan of Reorganization, amending its
Plan of Reorganization filed on March 9, 2020.
The Debtor proposes to pay creditors of Debtor from cash flow from
Debtor's ongoing business operations and from new value invested by
Debtor's sole member.
The Plan provides for five classes of secured claims, one class of
non-priority general unsecured claims not otherwise treated herein,
and one class of equity holders. The Plan also provides for the
payment of administrative and priority claims. Unless agreed
otherwise, non-priority unsecured creditors holding allowed claims
will receive monthly pro rata distributions of $2,000 until they
receive 10 cents on the dollar.
The Class 2 Claim of Swift Financial, LLC is impaired. The current
payoff amount is $66,700. Under the Plan, Debtor will pay the
$66,700 claim amount by making monthly installment payments,
beginning on May 1, 2020 and on the first day of each consecutive
month thereafter, as follows: 12 consecutive monthly payments of
$1,000 each, then 12 consecutive monthly payments of $2,000 each,
then 7 consecutive monthly payments of $ 4,386 each with the final
payment due on or before November 1, 2022 whereupon the claim shall
be paid in full.
The Class 3 Claim of National Funding is impaired. Under the Plan,
the Debtor will pay the $94,690 claim by making monthly installment
payments, beginning on May 1, 2020 and on the first day of each
consecutive month thereafter, as follows: 12 consecutive monthly
payments of $1,000 each, then 12 consecutive monthly payments of
$2,000 each, then 18 consecutive monthly payments of $3,261 each
with the final payment due on or before May 1, 2023 whereupon the
claim will be paid in full.
The Class 4 Claim of Kabbage, Inc., is impaired. The aggregate
Loan Amount is $85,000, the Annual Percentage Rate is 25.82%, each
loan had a term of 6 months, and the aggregate minimum monthly
payment amount was $15,229.12.
Class 5 Secured claim of American Express Company is impaired. The
loan amount was $20,000, with the following fee schedule: 1.75% fee
for 30 days, 3.50% fee for 60 days, 5.25% fee for 90 days. Late
fees apply. Jeremy Black personally guaranteed the loan. Payments
were to be automatically drafted from the Debtor's operating
account. Upon information and belief, the current payoff amount is
approximately $20,398.
Class 6 General Unsecured Claims are impaired. This class consists
of all non-insider persons and entities not otherwise classified
and treated herein holding court allowed general unsecured claims
(including the Class 3 claim of National Funding, the Class 4 claim
of Kabbage, and the Class 5 claim of American Express Company), all
in the estimated aggregate amount of $337,520.35. Under the Plan,
beginning on the first (1st) day of the first (1st) calendar month
following the Effective Date of the Plan and on the like day of
each consecutive month thereafter, Debtor shall pay a pro rata
share of $2,000.00 per month to the creditors holding allowed Class
6 claims until each Class 6 claimant holding an allowed claim shall
receive 10% of its respective allowed claim amount in full
satisfaction of its allowed claims.
THe Class 7 Equity Security Holder is impaired. On the first
calendar month following the Effective Date of the Plan, Jeremy
Black shall pay $5,000.00 personal funds to Debtor to be used
towards payment of Article IV administrative expense claims, and
U.S. Trustee's fees, with the balance to be applied towards other
Plan payments.
A full-text copy of the First Amended Plan of Reorganization dated
April 13, 2020, is available at https://tinyurl.com/ybbes5qu from
PacerMonitor.com at no charge.
The Debtor's counsel:
Paul Reece Marr
PAUL REECE MARR, P.C.
Georgia Bar No. 471230
300 Galleria Parkway, N.W., Suite 960
Atlanta, Georgia 30339
Tel: 770-984-2255
About BES LLC
BES LLC, doing business as Black Electric Service, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.
Case No. 19-57615) on May 15, 2019. At the time of the filing, the
Debtor had estimated assets of less than $500,000 and liabilities
of less than $1 million. The case has been assigned to Judge Paul
Baisier. Paul Reece Marr P.C. is the Debtor's legal counsel.
BIORESTORATIVE THERAPIES: Ex-Director Has $500K Offer in Bankruptcy
-------------------------------------------------------------------
James T. Madore, reporting for News Day, reports that
Melville-based biothechnology company BioRestorative Therapies
Inc., received filed for Chapter 11 protection to sell off its
assets.
The company will be auctioned off in Central Islip Bankruptcy
Court. John M. Desmarais has bid $500,000 through entity that he
owns, Phoenix Cell Group Holdings LLC. Phoenix is also providing
$1.4 million to keep BioRestorative operating, the filings
mentioned.
Mr. Desmarais' acquisition of BioRestorative is subject to better
or higher offers and for the approval of the bankruptcy court.
Desmarais is an intellectual property lawyer. He served as board
of director of the company until January 2020 and provided $1.3
million worth of loan to BioRestorative in 2016 to 2017.
News Day notes that BioRestorative Therapies previously received
hundreds of thousands of dollars in state and county tax breaks
News Day recounts that the U.S. Food and Drug Administration in
2017 authorized the company to begin a stem-cell therapy clinical
trial for bulging discs. Unable to raise money between $10 million
and $12 million for its clinical trials, the company sought
bankruptcy protection.
About BioRestorative Therapies
BioRestorative Therapies, Inc. -- http://www.biorestorative.com/--
is a life science company focused on stem cell-based therapies. It
develops therapeutic products and medical therapies using cell and
tissue protocols, primarily involving adult stem cells. Its shares
traded on the Over-the-Counter Pink Sheet Market.
BioRestorative Therapies sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-71757) on March 20,
2020. At the time of the filing, the Debtor had estimated assets
of between $50 million and $100 million and liabilities of between
$10 million and $50 million. The Debtor is represented by
Certilman Balin Adler & Hyman, LLP.
BIOSTAGE INC: Grosses $1.4 Million From Common Stock Sale
---------------------------------------------------------
Biostage, Inc. issued additional shares in a private placement that
caused the number of shares issued in private placements since its
last report filed under this Item 3.02 (as filed Jan. 2, 2020) to
exceed 5% of the number of shares of the outstanding common stock
of the Company. Those private placements resulted in gross
proceeds of approximately $1,422,000 and were comprised of:
(i) sales on Jan. 9, 2020 and Jan. 31, 2020 of an aggregate of
57,500 shares of common stock and warrants to purchase
57,500 shares of common stock a purchase price per share
and warrant of $3.70, resulting in proceeds of
approximately $212,750 to the Company. In such placements
the other investors each executed a securities purchase
agreement and received a warrant with an exercise price of
$3.70 per share, subject to adjustments as provided under
the terms thereof, immediately exercisable until April 30,
2020, which such date was subsequently extended to June 30,
2020 for the portion of such warrants that were not
exercised on or prior to April 30, 2020;
(ii) an aggregate of 62,500 shares issued in connection with
investors who exercised warrants on or about Jan. 31,
2020 issued by the Company in December 2017 which the
investors had acquired via assignment by DST Capital LLC.
In connection with such exercise, the Company received
proceeds of approximately $125,000;
(iii) sales on or about March 9, 2020 and March 12, 2020 of an
aggregate of 93,527 shares of common stock and warrants to
purchase 93,527 shares of common stock a purchase price per
share and warrant of $3.70, resulting in proceeds of
approximately $346,500 to the Company. In such placements
the other investors each executed a securities purchase
agreement and received a warrant with an exercise price of
$3.70 per share, subject to adjustments as provided under
the terms thereof, immediately exercisable until April 30,
2020, which such date was subsequently extended to June 30,
2020 for the portion of such warrants that were not
exercised on or prior to April 30, 2020;
(iv) an aggregate of 151,500 shares issued in connection with
investors who exercised warrants on or about March 9, 2020
and March 20, 2020 issued by the Company in December 2017
which the investors had acquired via assignment by DST
Capital LLC. In connection with such exercise, the Company
received proceeds of approximately $303,000; and
(v) an aggregate of 117,594 shares issued in connection with
investors who exercised warrants on or about April 30, 2020
previously issued by the Company. In connection with such
exercise, the Company received proceeds of approximately
$435,098.
The Company previously issued warrants to acquire shares of common
stock with an exercise price of $3.70 per share that were
immediately exercisable until April 30, 2020. The Company has
extended the expiration date of such warrants to June 30, 2020
pertaining to warrants exercisable for an aggregate of 521,837
shares of common stock.
About Biostage Inc.
Headquartered in Holliston, Massachusetts, Biostage --
http://www.biostage.com-- is a bioengineering company that is
developing next-generation esophageal implants. The Company's
Cellspan technology combines a proprietary, biocompatible scaffold
with a patient's own cells to create an esophageal implant that
could potentially be used to treat pediatric esophageal atresia and
other conditions that affect the esophagus. The Company's
esophageal implant leverages the body's inherent capacity to heal
itself as it is a "living tube" that facilitates regeneration of
esophageal tissue and triggers a positive host response resulting
in a tissue-engineered neo-conduit that restores continuity of the
esophagus. These implants have the potential to dramatically
improve the quality of life for children and adults.
Biostage reported a net loss of $8.33 million for the year ended
Dec. 31, 2019, compared to a net loss of $7.53 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$1.99 million in total assets, $903,000 in total liabilities, and
$1.09 million in total stockholders' equity.
RSM US LLP, in Boston, Massachusetts, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
March 27, 2020 citing that the Company has suffered recurring
losses from operations, has an accumulated deficit, uses cash flows
in operations, and will require additional financing to continue to
fund operations. This raises substantial doubt about the Company's
ability to continue as a going concern.
BOMBARDIER REC: Moody's Rates New $600MM Sr. Sec. Term Loan 'B1'
----------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Bombardier Rec
Products, Inc.'s proposed $600 million senior secured term loan
B-2. Moody's also affirmed BRP's Corporate Family Rating at B1, its
probability of default rating at B1-PD, its first lien senior
secured revolver at Ba1 and upgraded the rating on BRP's senior
secured term loan B to B1 from B2. The Speculative Grade Liquidity
rating was upgraded to SGL-2 from SGL-3. The outlook remains
negative.
"The B1 rating on the proposed and existing senior secured term
loans is in-line the company's CFR, reflecting the preponderance of
senior secured term loan debt in the company's capital structure,"
said Louis Ko, VP-Senior Analyst with Moody's. The liquidity
upgrade to SGL-2 reflects the proceeds from the proposed term loan
being used to bolster liquidity.
Upgrades:
Issuer: Bombardier Rec Products, Inc.
Senior Secured Term Loan, Upgraded to B1 (LGD4) from B2 (LGD4)
Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3
Assignments:
Issuer: Bombardier Rec Products, Inc.
Senior Secured Term Loan, Assigned B1 (LGD4)
Affirmations:
Issuer: Bombardier Rec Products, Inc.
Probability of Default Rating, Affirmed B1-PD
Corporate Family Rating, Affirmed B1
Senior Secured Revolving Credit Facility, Affirmed Ba1 (LGD1 from
LGD2)
Outlook Actions:
Issuer: Bombardier Rec Products, Inc.
Outlook, Remains Negative
RATINGS RATIONALE
BRP's rating is constrained by: (1) the significant impact that the
coronavirus crisis will have on its revenues and EBITDA over the
next 12 to 18 months due to the decrease in consumer demand; (2)
leverage that will exceed 10x over the next 12 months before
recovering to around 4.3x in FY2023; and (3) the company's focus on
high-priced, discretionary products, which could extend BRP's
recovery period to beyond fiscal 2021, even after the current
challenging economic conditions improve.
However, BRP benefits from: (1) good market positions in
snowmobiles, personal watercraft, all-terrain vehicles and
side-by-side vehicles, defended with diversified product profile
and well-recognized global brands; (2) BRP's demonstrated ability
to successfully launch new products and increase revenue channels;
and (3) an adequate liquidity position.
BRP has good liquidity (SGL-2). Sources are approximately C$1.5
billion compared to about C$450 million of cash usage over the next
12 months. In March 2020, BRP drew the full amount of its C$700
million revolving credit facility and retained the cash on its
balance sheet. Moody's expects BRP's cash balance will be
approximately C$750 million at the end of April. BRP will also
receive the proceeds from the $600 million term loan B-2 which will
provide additional liquidity of approximately C$800 million net of
transaction fees. BRP's cash usage over the next 12 months includes
approximately C$25 million of term loan amortization and Moody's
estimate of over C$425 million of negative free cash flow. It is
expected that a significant amount of cash will be used over the
next 3 to 6 months to repay trades payable accounts, which accrued
during the first quarter prior to the coronavirus outbreak. BRP's
liquidity position is expected to improve in the fourth quarter as
the economy begins to recover and BRP is able to sell some of its
inventory. BRP's revolver is subject to a minimum fixed charge
ratio covenant at 1.1x, against which it estimates BRP will have a
30% cushion over the next four quarters. BRP has limited
flexibility to boost liquidity from asset sales, however, the
company does not have refinancing risk until 2024, when the
revolving credit facility becomes due.
The negative outlook reflects the potential that the corona-based
recession could be worse, and last longer, than currently expected.
This could further constrain BRP's cash flow, liquidity position
and demand for its discretionary products.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if adjusted debt/EBITDA is
sustainable below 4.0x (3.0x for FY2020), EBIT/Interest is above
2.5x (5.7x for FY2020), and liquidity improves.
The ratings could be downgraded if a prolonged period of negative
free cash flow is expected, liquidity weakens, or leverage is
expected to exceed 5x (3.0x for FY2020) at the end of fiscal 2022.
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
durables 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 BRP's credit
profile, including its exposure to the decreased demand for
discretionary consumer products have left it vulnerable to shifts
in market sentiment in these unprecedented operating conditions and
BRP 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 increase in BRP's leverage as a
result the additional debt issuance which was necessary to provide
sufficient liquidity for BRP through this challenging period.
Governance risks are moderate as BRP is publicly traded on the
Toronto Stock Exchange and NASDAQ and has consistently demonstrated
its strong financial oversight and data transparency. Governance
considerations include the company's track record of maintaining
conservative financial policies as demonstrated by its history of
low leverage (around 3x) prior to the coronavirus outbreak.
Bombardier Recreational Products Inc., headquartered in Valcourt,
Quebec, Canada, is a global manufacturer and distributor of
powersports vehicles and marine products. Revenue for the fiscal
year ended January 31, 2020 was C$6.1 billion.
BONAVISTA ENERGY: Egan-Jones Cuts Senior Unsecured Ratings to CCC
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Bonavista Energy Corporation to CCC from B-.
Bonavista Energy Corporation is a Calgary-based and independent
producer of oil and natural gas in Western Canadian.
BRIGGS & STRATTON: Signs 4th Amendment to JPMorgan Credit Agreement
-------------------------------------------------------------------
Briggs & Stratton Corporation and Briggs & Stratton AG entered into
Amendment No. 4 to Revolving Credit Agreement among the Company,
B&S AG, the lenders party thereto and JPMorgan Chase Bank, N.A., as
administrative agent. The Amendment No. 4 amends the Revolving
Credit Agreement, dated as of Sept. 27, 2019, among the Company,
B&S AG, the other subsidiary borrowers from time to time party
thereto, the lenders and issuing banks from time to time party
thereto and the Agent. The Amendment No. 4 amends certain
provisions of the Existing Credit Agreement to, among other things,
(a) during the period commencing on the effective date of the
Amendment No. 4 and ending on July 26, 2020, (i) suspend the
requirement that the Company maintain a consolidated fixed charge
coverage ratio of no less than 1.0 to 1.0 whenever its borrowing
availability under the revolving credit facility is less than $50
million and (ii) instead require the Company and its subsidiaries
to maintain at least $12.5 million of borrowing availability under
the revolving credit facility; (b) increase the amount that the
Company and its subsidiaries may borrow outside of the Credit
Agreement to an amount equal to the greater of $300 million and
22.5% of the Company's consolidated total assets (this amount is in
addition to amounts borrowed pursuant to specific exceptions under
the Credit Agreement); (c) reduce the maximum aggregate amount
available for borrowing or letters of credit under the revolving
credit facility that the Existing Credit Agreement contemplated by
$25 million to $600 million; (d) increase the applicable margins
paid to lenders as part of the variable interest rates for both
LIBOR and base rate borrowings by 100 basis points in each case;
(e) incorporate a LIBOR floor equal to 1.0%; (f) add certain events
of default, including with respect to raising capital; and (g)
impose certain financial, operational and liquidity maintenance and
reporting obligations on the Company.
On April 27, 2020, after the effectiveness of the Amendment No. 4,
the Company and its subsidiaries had $366.8 million of borrowings
and $52.8 million of letters of credit outstanding under the Credit
Agreement.
About Briggs & Stratton
Briggs & Stratton Corporation (NYSE: BGG), headquartered in
Milwaukee, Wisconsin, is a producer of gasoline engines for outdoor
power equipment, and is a designer, manufacturer and marketer of
power generation, pressure washer, lawn and garden, turf care and
job site products through its Briggs & Stratton, Simplicity,
Snapper, Ferris, Vanguard, Allmand, Billy Goat, Murray, Branco, and
Victa brands. Briggs & Stratton products are designed,
manufactured, marketed and serviced in over 100 countries on six
continents. Visit http://www.basco.com/and
http://www.briggsandstratton.com
Briggs & Stratton reported a net loss of $54.08 million for the
year ended June 30, 2019, compared to a net loss of $11.32 million
for the year ended July 1, 2018. As of Dec. 29, 2019, the Company
had $1.80 billion in total assets, $557.30 million in total current
liabilities, $844.04 million in total other liabilities, and
$399.53 million in total shareholders' investment.
* * *
As reported by the TCR on Feb. 21, 2020, S&P Global Ratings lowered
its issuer credit rating on U.S.-based manufacturer of small
engines Briggs & Stratton Corp. (BGG) to 'CCC' from 'B-'. S&P
believes the company might not be able to use its asset-based
lending (ABL) revolving credit facility availability to repay the
unsecured notes and maintain enough liquidity to meet the working
capital needs of its highly seasonal business.
As reported by the TCR on April 16, 2020, Moody's Investors Service
downgraded its ratings for Briggs & Stratton Corporation, including
the company's corporate family rating and probability of default
rating (to Caa3 and Ca-PD, from B3 and B3-PD, respectively). The
downgrades reflect Moody's expectation of an increased likelihood
of default via a pre-emptive debt restructuring due to the
company's perceived inability to refinance its $195 million of
senior unsecured notes due December 2020, as compounded by its high
financial leverage and deemed untenable capital structure.
BROWNIE'S MARINE: Awards 1.3 Million Shares to Two Employees
------------------------------------------------------------
Brownie's Marine Group, Inc. awarded two of its employees an
aggregate of 1,333,333 shares of its common stock as additional
compensation for their services to the Company pursuant to the
terms of a Restricted Stock Award Agreement. The recipients were
sophisticated investors who had access to business and financial
information on the company, and the issuances were exempt from
registration under the Securities Act of 1933, as amended, in
reliance on exemptions provided by Section 4(a)(2) of that act.
About Brownie's Marine
Headquartered in Pompano Beach, Florida, Brownie's Marine Group,
Inc. -- http://www.browniesmarinegroup.com/-- designs, tests,
manufactures, and distributes recreational hookah diving, yacht
based scuba air compressor and nitrox generation systems, scuba and
water safety products through its wholly owned subsidiary Trebor
Industries, Inc. and manufactures and sells high pressure air and
industrial gas compressor packages through its wholly owned
subsidiary Brownie's High Pressure Compressor Services, Inc. The
Company sells its products both on a wholesale and retail basis,
and does so from its headquarters and manufacturing facility in
Pompano Beach, Florida. The Company does business as (dba)
Brownie's Third Lung, the d/b/a name of Trebor Industries, Inc. and
Brownie's High Pressure Compressor Services, Inc.
Brownies Marine reported a net loss of $1.30 million for the year
ended Dec. 31, 2018, compared to a net loss of $248,744 for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$1.78 million in total assets, $1.68 million in total liabilities,
and $103,938 in total stockholders' equity.
Liggett & Webb, P.A., in Boynton Beach, Florida, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated June 7, 2019, citing that the Company has experienced
net losses for consecutive periods and has a large accumulated
deficit. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
CABOT OIL: Egan-Jones Lowers Senior Unsecured Ratings to BB+
------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cabot Oil & Gas Corporation to BB+ from BBB-.
Cabot Oil & Gas Corporation is a company engaged in hydrocarbon
exploration. It is organized in Delaware and based in Houston,
Texas.
CALCEUS ACQUISITION: Moody's Cuts CFR & Sr. Sec. Rating to B2
-------------------------------------------------------------
Moody's Investors Service downgraded Calceus Acquisition, Inc.'s
corporate family rating to B2 from B1, probability of default
rating to B2-PD from B1-PD, and senior secured term loan rating to
B2 from B1. The outlook remains negative.
The downgrades reflect Moody's expectations that operating
performance and liquidity will be weaker than Moody's initial
projections, based on forecasts for weaker consumer discretionary
spending than previously expected, as well as disruption in the
apparel and footwear sector from curtailed orders, liquidity stress
and discounting. Revenues and earnings are now expected to decline
steeply over the next quarters, followed by a prolonged recovery,
such that FYE May 2022 earnings will be meaningfully below current
levels. In Moody's view, Cole Haan has adequate liquidity over the
next 12 months, including sufficient liquidity to support
operations during a limited period of store closures at its
operated stores and retail partners. As of February 29, 2020, the
company had $28 million of cash and full availability under its
$115 million asset-based revolving credit facility. Cole Haan
subsequently borrowed $75 million on its revolver, and had an
estimated $29 million remaining availability before cash dominion
limitations. The company has taken a broad range of cost cuts and
deferral measures to limit cash burn, however Moody's projects that
liquidity will decline over the next three quarters due to both
lower earnings and seasonal working capital needs.
Moody's took the following rating actions for Calceus Acquisition,
Inc.:
- Corporate family rating, downgraded to B2 from B1
- Probability of default rating, downgraded to
B2-PD from B1-PD
- $290 million senior secured term loan, downgraded
to B2 (LGD4) from B1 (LGD4)
- Outlook, remains negative
RATINGS RATIONALE
The rapid 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 Cole Haan's credit profile,
including its exposure to discretionary consumer spending and
widespread store closures have left it vulnerable to shifts in
market sentiment in these unprecedented operating conditions.
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 Cole Haan of the
breadth and severity of the shock, and the broad deterioration in
credit quality it has triggered.
Cole Haan's B2 CFR is constrained by Moody's expectations that
earnings and liquidity will deteriorate significantly as a result
of a highly promotional environment and lower consumer spending.
Temporary closures at its stores and retail partner locations will
result in sharp earnings declines in Q4 FY 2020, followed by
continued but decelerating declines through Q3 FY 2021. As a
result, Moody's projects FYE May 2021 EBITDA to be down over 50%
from the LTM period ended February 29, 2020, leading to debt/EBITDA
increasing to about 4.5 times from 2.6 times and EBITA/interest
expense declining to below 1 time from 3 times. Operating
performance should improve in FY 2022 as the company laps the
significant earnings declines from the prior year. However, Moody's
expects FYE May 2022 EBITDA to be 30-40% below LTM February 2020,
with debt/EBITDA of 3.5 times and EBITA/interest expense of 1.8
times. Cole Haan's relatively small scale and operations in the
highly competitive footwear market also constrain its credit
profile. In addition, the rating incorporates governance
considerations, specifically financial strategy risk associated
with private equity ownership. As a mono-brand premium price point
retailer, Cole Haan is also exposed to changes in fashion trends
and consumers' brand perception. Continued reinvestment in product
design, marketing and infrastructure, as well as social factors
including responsible sourcing and robust data protection, are
necessary to sustain brand value.
Nevertheless, the rating is supported by Cole Haan's strong
execution over the past two years prior to the coronavirus
outbreak, well-recognized dual-gender brand and diverse
distribution channels, including a growing and profitable digital
business. These factors will position the company better than other
apparel and footwear companies to emerge from the current period of
disruption. Moody's expects the company to continue capitalizing on
the trend towards fashion casualization and online shopping, both
of which will likely accelerate. The rating is also supported by
the company's adequate liquidity over the next 12 months.
The negative outlook reflects the risk of greater declines in
liquidity or earnings or a slower recovery than currently
anticipated.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be downgraded if liquidity deteriorates more than
anticipated, or if there is no clear path to earnings improvement
in FY 2022 to levels 30-40% below LTM February 29, 2020.
Quantitatively, the ratings could be downgraded if Moody's-adjusted
debt/EBITDA is sustained above 4.5 times and EBITA/interest expense
below 1.75 times beyond 2021.
The ratings could be upgraded if liquidity improves and the company
returns to solid earnings growth following near-term declines.
Quantitatively, the ratings could be upgraded if Moody's-adjusted
debt/EBITDA is sustained below 4.0 times and EBITA/interest expense
above 2.25 times.
Headquartered in Greenland, NH, Cole Haan is a designer and
retailer of men's and women's footwear, handbags, and accessories.
Net revenues for twelve months ended February 29, 2020 were
approximately $767 million. Apax Partners and the company's
management team acquired the company from NIKE Inc. in early 2013.
CANDELARIO LORA: $1.6M Sale of Rolling Hills Property Dismissed
---------------------------------------------------------------
Judge Neil W. Bason of the U.S. Bankruptcy Court for the Central
District of California approved the stipulation dismissing
Candelario Lora's sale of the real property at 11 Shadow Lane,
Rolling Hills, California to Shawn Reynolds or assignee for $1.6
million, pursuant to their California Residential Purchase
Agreement and Joint Escrow Instructions, free and clear of liens,
subject to overbid.
A hearing on the Motion was held on May 5, 2020 at 1:00 p.m.
Candelario Lora sought Chapter 11 protection (Bankr. C.D. Cal. Case
No. 19-23303) on Nov. 11, 2019. The Debtor tapped Onyinye N.
Anyama, Esq., at Anyama Law Firm, a Professional Corp., as
counsel.
CAPSTEAD MORTGAGE: Egan-Jones Withdraws B+ Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, withdrew its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Capstead Mortgage Corporation. EJR also withdrew its
'B' rating on commercial paper issued by the Company.
Headquartered in Dallas, Texas, Capstead Mortgage Corporation is a
real estate investment trust and earns income from investing in
real-estate-related assets on a leveraged basis.
CARBO CERAMICS: Seeks to Hire Ernst & Young as Auditor
------------------------------------------------------
CARBO Ceramics Inc. and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Ernst & Young, LLP as their auditor.
E&Y will conduct an audit of the consolidated financial statements
of the Debtors for the year ended December 31, 2019. In connection
with the audit, the firm will review the Debtors' unaudited interim
financial information before they file their Form 10-Q.
The firm will charge these fees for the audit services:
Executive Director/Principal/Partner $1,100 per hour
Senior Manager $400 per hour
Manager $200 per hour
Staff/Senior $100 per hour
E&Y's fees for non-core audit services are as follows:
Executive Director/Principal/Partner $1,100 per hour
Senior Manager $400 per hour
Manager $200 per hour
Staff/Senior $100 per hour
The firm received a retainer from the Debtors in the amount of
approximately $100,000 for audit services.
Brian Rotolo, partner of Ernst & Young, assures the court that E&Y
is a "disinterested person" as that term is defined in section 101
(14) of the Bankruptcy Code.
The firm can be reached through:
Brian J. Rotolo
Ernst & Young LLP
701 Poydras Street, Suite 3900
New Orleans, LA 70139
Tel: 501-581-4200
About CARBO Ceramics
CARBO Ceramics Inc. -- https://carboceramics.com/ -- is a global
technology company providing products and services to the oil and
gas, industrial, and environmental markets. CARBO offers oilfield
ceramic technology products, base ceramic proppant, and frac sand
proppant for use in the hydraulic fracturing of oil and natural gas
wells.
Asset Guard Products Inc., a subsidiary of CARBO, offers products
intended to protect operators' assets, minimize environmental
risks, and lower lease operating expenses through spill prevention,
containment, and countermeasure systems for the oil and gas
industry.
StrataGen, Inc., another subsidiary, offers fracture consulting and
data services and provides a suite of stimulation software
solutions used for designing fracture treatments and for on-site
real-time analysis to assist E&P companies in the efficient
completion of wells and enhancement of oil and natural gas
production.
CARBO Ceramics Inc. and its subsidiaries sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
20-31973) on March 29, 2020. At the time of the filing, Debtors
disclosed assets of between $100,000,001 and $500 million and
liabilities of the same range.
Judge Marvin Isgur oversees the cases.
Debtors tapped Vinson & Elkins LLP as bankruptcy counsel; Okin
Adams LLP as co-counsel with Vinson & Elkins; Perella Weinberg
Partners L.P. and Tudor Pickering, Holt & Co. as investment banker;
FTI Consulting, Inc. as financial advisor; Ernst & Young LLP, KPMG
LLP, and Weaver and Tidwell L.L.P. as accountants and tax advisors.
Prime Clerk, the claims agent, maintains this website
https://dm.epiq11.com/case/crc/info.
CARBO CERAMICS: Seeks to Hire Okin Adams as Co-Counsel
------------------------------------------------------
CARBO Ceramics Inc. and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Okin Adams LLP.
Okin Adams will serve as co-counsel with Vinson & Elkins LLP, the
firm handling the Debtors' Chapter 11 cases.
Okin Adams's current hourly rates are:
Matthew S. Okin, Partner $575
Christopher Adams, Partner $500
Ryan O'Connor, Associate $310
Johnie Maraist, Associate $265
The firm received a retainer of $25,000.
Matthew Okin, Esq., a partner at Okin Adams, attests that the firm
is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
Okin Adams can be reached through:
Matthew S. Okin, Esq.
Johnie A. Maraist, Esq.
1113 Vine St., Suite 240
Houston, TX 77002
Tel: 713-228-4100
Fax: 888-865-2118
Email: mokin@okinadams.com
jamaraist@okinadams.com
About CARBO Ceramics
CARBO Ceramics Inc. -- https://carboceramics.com/ -- is a global
technology company providing products and services to the oil and
gas, industrial, and environmental markets. CARBO offers oilfield
ceramic technology products, base ceramic proppant, and frac sand
proppant for use in the hydraulic fracturing of oil and natural gas
wells.
Asset Guard Products Inc., a subsidiary of CARBO, offers products
intended to protect operators' assets, minimize environmental
risks, and lower lease operating expenses through spill prevention,
containment, and countermeasure systems for the oil and gas
industry.
StrataGen, Inc., another subsidiary, offers fracture consulting and
data services and provides a suite of stimulation software
solutions used for designing fracture treatments and for on-site
real-time analysis to assist E&P companies in the efficient
completion of wells and enhancement of oil and natural gas
production.
CARBO Ceramics Inc. and its subsidiaries sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
20-31973) on March 29, 2020. At the time of the filing, Debtors
disclosed assets of between $100,000,001 and $500 million and
liabilities of the same range.
Judge Marvin Isgur oversees the cases.
Debtors tapped Vinson & Elkins LLP as bankruptcy counsel; Okin
Adams LLP as co-counsel with Vinson & Elkins; Perella Weinberg
Partners L.P. and Tudor Pickering, Holt & Co. as investment banker;
FTI Consulting, Inc. as financial advisor; Ernst & Young LLP, KPMG
LLP, and Weaver and Tidwell L.L.P. as accountants and tax advisors.
Prime Clerk, the claims agent, maintains this website
https://dm.epiq11.com/case/crc/info.
CARBO CERAMICS: Seeks to Hire Vinson & Elkins as Legal Counsel
--------------------------------------------------------------
CARBO Ceramics Inc. and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Vinson & Elkins L.L.P. as their legal counsel.
CARBO Ceramics requires Vinson & Elkins to:
a. provide legal advice with respect to the Debtors' powers
and duties in the operation of their businesses and the management
of estate property;
b. serve as counsel of record for the Debtors in all aspects
of their Chapter 11 cases including, without limitation, the
prosecution of certain actions, the defense of any actions
commenced against the Debtors and any objections to claims filed
against the Debtors' estates;
c. prepare legal papers;
d. take necessary action to negotiate, prepare and obtain
approval of a disclosure statement and confirmation of a plan of
reorganization;
e. advise the Debtors regarding tax matters;
f. advise the Debtors in connection with any potential sale of
assets or stock and take necessary action to guide the Debtors
through such potential sale;
g. analyze proofs of claim filed against the Debtors and
potential objections to such claims;
h. analyze certain executory contracts and unexpired leases
and the potential assumption, assignment or rejection of such
contracts and leases;
i. represent the Debtors in connection with obtaining
authority for debtor-in-possession financing and the continued use
of cash collateral;
j. advise the Debtors with respect to corporate and litigation
matters as well as compliance with non-bankruptcy law;
k. consult with the United States Trustee for the Southern
District of Texas, any official committee appointed in the Debtors'
Chapter 11 cases, creditors and other parties concerning the
administration of the cases; and
l. provide representation and all other legal services
required by the Debtors in discharging their duties.
Vinson & Elkins will be paid at these hourly rates:
Attorneys $565 to $1,630
Paraprofessionals $180 to $720
The Debtors paid the firm an "advance payment retainer" in the
amount of $600,000.
Paul Heath, Esq., a partner at Vinson & Elkins, assured the court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Heath disclosed that:
-- Vinson & Elkins has agreed to a discount of 10 percent
which increases to 15 percent once calendar year billings exceed
$500,000. The firm will continue to use the discounted hourly rates
during the pendency of the Debtors' cases.
-- No Vinson & Elkins professional included in the engagement
varied his rate based on the geographic location of the cases;
-- For 2019, the firm's hourly rates for services rendered on
behalf of the Debtors are as follows:
Partners $975 - $1,550
Counsel/Of Counsel $930 - $1,550
Associates $525 - $1,065
Paraprofessionals $170 - $685
Effective Jan. 1, 2020, the firm has represented the
Debtors using the following hourly rates:
Partners $1,025 - $1,630
Counsel/Of Counsel $1,025 - $1,630
Associates $565 - $1,125
Paraprofessionals $180 - $720
-- Vinson & Elkins has approved the budget and staffing plan
for the period of March 30 to June 29, 2020.
The firm can be reached through:
Paul E. Heath, Esq.
Vinson & Elkins L.L.P.
666 Fifth Avenue, 26th Floor
New York, NY 10103-0040
Tel: (212) 237-0000
Fax: (212) 237-0100
About CARBO Ceramics
CARBO Ceramics Inc. -- https://carboceramics.com/ -- is a global
technology company providing products and services to the oil and
gas, industrial, and environmental markets. CARBO offers oilfield
ceramic technology products, base ceramic proppant, and frac sand
proppant for use in the hydraulic fracturing of oil and natural gas
wells.
Asset Guard Products Inc., a subsidiary of CARBO, offers products
intended to protect operators' assets, minimize environmental
risks, and lower lease operating expenses through spill prevention,
containment, and countermeasure systems for the oil and gas
industry.
StrataGen, Inc., another subsidiary, offers fracture consulting and
data services and provides a suite of stimulation software
solutions used for designing fracture treatments and for on-site
real-time analysis to assist E&P companies in the efficient
completion of wells and enhancement of oil and natural gas
production.
CARBO Ceramics Inc. and its subsidiaries sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
20-31973) on March 29, 2020. At the time of the filing, Debtors
disclosed assets of between $100,000,001 and $500 million and
liabilities of the same range.
Judge Marvin Isgur oversees the cases.
Debtors tapped Vinson & Elkins LLP as bankruptcy counsel; Okin
Adams LLP as co-counsel with Vinson & Elkins; Perella Weinberg
Partners L.P. and Tudor Pickering, Holt & Co. as investment banker;
FTI Consulting, Inc. as financial advisor; Ernst & Young LLP, KPMG
LLP, and Weaver and Tidwell L.L.P. as accountants and tax advisors.
Prime Clerk, the claims agent, maintains this website
https://dm.epiq11.com/case/crc/info.
CARE FOR LIFE: Unsecureds to Get 1% of Allowed Claims
-----------------------------------------------------
Care for Life Home Health, Inc., filed a Chapter 11 plan and
disclosure statement.
Secured creditors will receive monthly payments, until paid in
full, with interest of 4.25%.
General unsecured creditors are classified in Class 4, and will
receive a distribution of 1% of their allowed claims, to be
distributed in a lump sum on the effective date of the Plan. This
class is impaired with a total payment of $8,424 which is
equivalent to 1% of claims.
The Debtor shall make payments under the Plan from the income from
its operations. Mia Pacheco will be the disbursing agent for the
Debtor.
A full-text copy of the Disclosure Statement dated April 13, 2020,
is available at https://tinyurl.com/ya6k9y4b from PacerMonitor.com
at no charge.
Attorney for the Plan Proponent:
Ben Schneider
8424 Skokie Blvd., Suite 200
Skokie, IL 60077
Tel: 847-933-0300
E-mail: ben@windycitylawgroup.com
About Care For Life Home Health
Based in South Elgin, Ill., Care For Life Home Health, Inc. filed
a
Chapter 11 petition (Bankr. N.D. Ill. Case No. 19-33113) on Nov.
21, 2019, listing less than $1 million in both assets and
liabilities. Ben L Schneider, Esq., at Schneider & Stone, is the
Debtor's legal counsel.
CARROLL COUNTY ENERGY: Moody's Affirms Ba2 Senior Secured Rating
----------------------------------------------------------------
Moody's Investors Service has affirmed the Ba2 rating on Carroll
County Energy LLC's senior secured credit facilities consisting of
a $456.5 million (about $433 million outstanding as of 12/31/19)
senior secured term loan B due 2026, and a $70 million senior
secured revolving credit facility also due 2026. The rating outlook
remains stable.
The Project owns a 700 MW natural gas-fired, combined-cycle
generation plant called Carroll County Energy, which reached
commercial operation in December 2017, and is based in Carroll
County, OH. The Project is in turn indirectly owned by an affiliate
of Advanced Power Services Inc., the North American arm of a
privately-held company that develops, owns and manages power plants
in Europe and North America, as well as a group of co-investors.
Affirmations:
Issuer: Carroll County Energy, LLC
Senior Secured Bank Credit Facility, Affirmed Ba2
Outlook Actions:
Issuer: Carroll County Energy, LLC
Outlook, Remains Stable
RATINGS RATIONALE
The affirmation of Carroll County's Ba2 rating reflects the cash
flow stability provided by known capacity revenues through May 2022
as well as cash flow benefits from an active rolling hedging
strategy that is mitigating the spark spread compression occurring
for several wholesale power generators in PJM. Specifically, the
Project hedges its energy margin and spark spread exposure by
selling power forward contracts and buying gas forward contracts.
Through the first part of 2020, this strategy has already provided
Carroll County with positive hedge settlement payments, which
meaningfully offset the decline in net energy margin during a
period of lower power prices. In an extreme low-price environment,
Carroll County also has downside protection of its energy margin
via a Revenue Put that provides an energy margin floor of $34
million per year through March 2023. In addition, Carroll County
benefits from revenues from ancillary services provided to PJM
(black start and reactive power/voltage support). Moody's
calculates that these sources of contracted revenues provide over
70% of gross margin.
An additional consideration supporting the rating affirmation is
the ownership make-up of the Sponsor group, which includes
affiliates of financial and industrial groups who it believes have
a longer-term investment horizon than the typical private equity
group. In that regard, Moody's believes that the Project's
corporate governance includes several elements of financial
conservatism, including the degree of financial leverage, the
implementation of an active rolling hedging strategy, the existence
of the RP to provide downside protection and an adequately sized
revolving credit facility with an expiry date that matches the
maturity of the term loan.
Notwithstanding these credit positive considerations, the Project
is exposed to cash flow volatility as a merchant generator in an
environment that has been impacted by weak power market
fundamentals resulting from lower natural gas and power prices and
mild weather conditions this past winter. These conditions are now
exacerbated by reduced electric demand across the region owing to
regional lock-down measures taken to slow the spread of the
coronavirus.
That said, from a financial perspective, Carroll County performed
in 2019 in line with expectations and is expected to do so in 2020
based on the Project's latest budget for 2020, which incorporates
known performance through Q1 2020 and current forward curves for
the rest of 2020. According to its calculations, the Project's
EBITDA in 2019 was $80.6 million, which was slightly better than
Moody's base case forecast of $76.1 million. Carroll County's
financial performance was largely in line with its expectations
despite the incurrence of somewhat higher major maintenance/capex
in 2019 to complete the Project's black start capability. For
example, the debt service coverage ratio in 2019 measured 2.31x as
compared to its forecast of 2.37x; the ratio of Project CFO to Debt
measured 10.4% versus 11.5% in the forecast; and Debt to EBITDA was
5.38x relative to its forecast of 5.48x.
The latest budget for 2020 shows a decline in EBITDA to $66.4
million owing the anticipated decrease in the PJM capacity price to
$100.00/MW-day for capacity year 2019/2020 from $164.77/MW-day for
capacity year 2018/19 and a decline in the energy margin because of
lower power prices. However, the decline in the energy margin is
partially offset by the above-referenced positive settlement payout
expected under the hedges, which together with lower major
maintenance/capex in 2020 and lower debt service result in expected
financial metrics in 2020 that are in line with its base line case.
Specifically, the DSCR for 2020 is budgeted to be 2.19x, which is
identical to its Moody's base case forecast; Project CFO to Debt is
expected to measure 10.0% as compared to 10.4% in its case; and
2020 Debt/EBITDA is budgeted to be 6.0x version 5.8x in its
forecast.
Looking ahead, and also supporting the Ba2 rating affirmation, is
its belief that 2021 financial performance will show improvement
over 2020 owing in large part to the higher capacity revenues
anticipated from the increase in the PJM capacity price auction to
$140/MW-day for the 2021/22 capacity year from $76.53/MW-day in the
2020/21 capacity year. In addition, it notes forward prices for
2021 are holding up relative to recent wholesale power prices,
indicating the possibility of some improvement in the PJM merchant
wholesale power market over the medium term. Once the stay at home
orders are lifted, electricity demand during 2021 is expected to
gradually increase to higher levels relative to 2020.
Carroll County has adequate liquidity currently totaling $29.5
million. This is made up of $10 million available under the
revolving credit facility, plus $15 million in a 6-month debt
service reserve LOC issued under the revolver and about $4.5
million in unrestricted cash. Moody's notes that the revolving
credit facility matures in 2026, the same year as the maturity of
the term loan.
The stable outlook reflects Carroll County's on target 2019
financial performance and a belief that the Project will produce
financial results during 2020 that remain in line with its base
case expectations owing to an active hedging strategy, which
mitigates the decline in capacity revenues and the downward
pressure on energy margins from lower demand. The stable rating
outlook also recognizes Carroll County's competitive advantage as a
new efficient plant, the Project's location in the Utica and
Marcellus shale region and its position on the Tennessee Gas
Pipeline with its access to low cost natural gas. The stable
outlook also reflects the expectation of continued solid operating
performance.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating is currently well-placed and has limited prospects for a
rating upgrade in the near term. Over the longer term, positive
trends that could lead to an upgrade include greater than expected
cash flows that lead to stronger and more resilient financial
metrics and a faster pay down of debt.
The rating or the outlook could face downward pressure should the
Project face credit deterioration in the way of materially weaker
credit metrics, and/or poor operating performance. Specifically,
the Project will face downward rating pressure if its sustained
financial performance is not able to achieve minimum Ba metrics of
Project CFO/Debt of 10.0%, DSCR of 2.00x and Debt/EBITDA of 6.0x.
The Project owns a 700 MW natural gas-fired, combined-cycle
generation plant called Carroll County Energy, which reached
commercial operation in December 2017, and is based in Carroll
County, OH. The Project is in turn indirectly owned by an affiliate
of Advanced Power, the North American arm of a privately-held
company that develops, owns and manages power plants in Europe and
North America, as well as a group of co-investors.
CBAK ENERGY: Agrees with Atlas to Swap $100,000 Note for Equity
---------------------------------------------------------------
CBAK Energy Technology, Inc., entered into an exchange agreement
with Atlas Sciences, LLC, pursuant to which the Company and the
Lender agreed to (i) partition a new promissory note in the
original principal amount equal to $100,000 from the outstanding
balance of certain promissory note that the Company issued to the
Lender on July 24, 2019, which has an original principal amount of
$1,395,000, and (ii) exchange the Partitioned Promissory Note for
the issuance of 312,500 shares of the Company's common stock, par
value $0.001 per share to the Lender. According to the Exchange
Agreement, the Shares are required to be delivered to the Lender on
or before May 1, 2020 and the exchange will occur upon the Lender's
surrender of the Partitioned Promissory Note to the Company on the
date when the Shares are eligible for free trading.
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn-- is engaged in the
business of developing, manufacturing and selling new energy high
power lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of $1.95 million for the year ended
Dec. 31, 2018, compared with a net loss of $21.46 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, CBAK Energy had
$110.40 million in total assets, $98.90 million in total
liabilities, and $11.50 million in total equity.
Centurion ZD CPA & Co., in Hong Kong, China, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated April 16, 2019, on the Company's consolidated financial
statements for the year ended Dec. 31, 2018, citing that the
Company has a working capital deficiency, accumulated deficit from
recurring net losses and significant short-term debt obligations
maturing in less than one year as of Dec. 31, 2018. All these
factors raise substantial doubt about its ability to continue as a
going concern.
CD II FASHIONS: Involuntary Chapter 11 Case Summary
---------------------------------------------------
Alleged Debtor: CD II Fashions, LLC
1400 Broadway
New York, NY 10018-0000
Case Number: 20-11101
Business Description: CD II Fashions is in the women's and
children's clothing business.
Involuntary
Chapter 11
Petition Date: May 4, 2020
Court: United States Bankruptcy Court
Southern District of New York
Judge: Hon. Michael E. Wiles
Petitioners' Counsel: David L. Stevens, Esq.
SCURA, WIGFIELD, HEYER, STEVENS & CAMMAROTA
1599 Hamburg Turnpike
Wayne, NJ 07470-0000
Tel: 973-696-8391
E-mail: ecfbkfilings@scuramealey.com
- and -
Michael Langer, Esq.
LAW OFFICES OF MICHAEL J. LANGER, P.C.
114 Old Country Road, Ste. 690
Mineola NY 11501-0000
Tel: 516-308-2740
E-mail: michael@langerpc.com
Alleged creditors who signed the involuntary petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
RAS International Goods/ $5,644,094
126 Aristotle Way Services Provided
East Windsor, NJ
08512-0000
Nantong Kyueda Trading Co. Ltd Goods/ $990,166
LiuWei Industrial Park, Services Provided
Qutang Town
Hai'an City, Jiangsu Provice
China
Temost Investments Ltd. Goods/ $3,693,061
Unit 902, Kwai Cheong Centre Services Provided
40-52 Kwai Cheong Road
Kwai Cheung, Hong Kong
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://is.gd/CbC3Ck
CEN BIOTECH: Has $5.7M Net Loss for Year Ended Dec. 31, 2019
------------------------------------------------------------
CEN Biotech, Inc., filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$5,655,119 on $0 of revenue for the year ended Dec. 31, 2019,
compared to a net loss of $7,530,361 on $0 of revenue for the year
ended in 2018.
The audit report of Mazars USA LLP states that the Company has
incurred significant operating losses and negative cash flows from
operations since inception. The Company also had an accumulated
deficit of $41,310,172 at December 31, 2019. The Company is
dependent on obtaining necessary funding from outside sources,
including obtaining additional funding from the sale of securities
in order to continue their operations. The COVID-19 pandemic has
hindered the Company’s ability to raise capital. These conditions
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 $7,296,422, total liabilities of $32,831,584, and a total
shareholders' deficit of $25,535,162.
A copy of the Form 10-K is available at:
https://is.gd/Ljxrcn
CEN Biotech, Inc. focuses on the manufacture, production, and
development of products within the cannabis industry, including LED
lighting technology and hemp-based products. It intends to
cultivate hemp for usage in industrial, medical, and food products.
The company was founded in 2013 and is based in Windsor, Canada.
CENGAGE LEARNING: S&P Removes 'B-' ICR From CreditWatch Positive
----------------------------------------------------------------
S&P Global Ratings removed all of its ratings on U.S.-based
educational material and learning solutions provider Cengage
Learning Holdings II Inc., including its 'B-' issuer credit rating,
from CreditWatch, where S&P placed them with positive implications
on May 1, 2019, and affirmed them.
Credit Measures are expected to remain weak. The affirmation,
removal from CreditWatch and negative outlook reflects S&P's view
that Cengage's operating performance declines could accelerate
given the uncertainty around enrollment trends over the next
several months due to the coronavirus pandemic. The company's
fiscal second quarter (ended September 30) accounts for roughly 30%
of its revenue and about 55% of its adjusted EBITDA for the year.
S&P believes this could adversely affect the company's liquidity
and debt refinancing prospects because its credit metrics are weak
and the rating agency does not expect it to see any potential
improvement stemming from the cost efficiencies associated with the
proposed merger until at least 24 months after the transaction
closes. The integration and execution risks related to the merger
remain high for the merger given the size of both companies and the
potential to realize material synergies. S&P expects to review the
company's strategic plan after any potential asset divestitures as
well as its refinancing plans once the transaction is approved. MHE
and Cengage are both highly leveraged as each carry roughly $2.2
billion of debt.
The negative outlook reflects the risk that the company's cash
flows will remain constrained over the next 12 months and that
uncertainty around its enrollment trends over the next several
months due to the coronavirus pandemic, which would further
pressure its credit metrics. In addition, if Cengage is unable to
receive regulatory approval for its merger with MHE and its credit
metrics remain elevated, the company could face refinancing
challenges.
"We could lower our rating on Cengage if the merger does not close
and its operating performance deteriorates such that its FOCF turns
negative and we believe it would face challenges in refinancing its
capital structure. This underperformance assumes accelerated higher
education revenue declines that the company is unable to offset by
expanding its digital sales as well as elevated competition and
market share losses," S&P said.
"We could revise our outlook on Cengage to stable if the company is
able to increase its EBITDA and maintain a FOCF-to-debt ratio in
the 3%-5% range, which would require any impact from the COVID-19
pandemic on higher education enrollments and courseware purchases
to be modest. Additionally, Cengage would need a viable refinancing
plan," S&P said.
CHICK LUMBER: Has Permission to Use Cash Collateral Until June 30
-----------------------------------------------------------------
Judge Bruce Hardwood of the U.S. Bankruptcy Court for the District
of New Hampshire authorized Chick Lumber, Inc. to use and expend
cash collateral to pay the costs and expenses of up to
$1,293,567.48 incurred in the ordinary course of business through
June 30 to the extent provided for in the Budget.
The Debtor is directed to make the following adequate protection
payments on the last day of each month:
* $481.70 to JELD-WED, Inc.;
* $24.66 to BFG Corporation (H2H NC Paint Tinter);
* $77.86 to BFG Corporation (H2H Windham Paint Tinter)
* $37.83 to GreatAmerica Financial Services Corp.;
* $219.06; $226.60 and $211.94 to Citizens One Auto Finance;
* $39.52 to Wells Fargo Equipment Finance, Inc. - Forklift;
* $632.68 to Ford Motor Credit;
* $63.25 to Wells Fargo Equipment Finance, Inc. - Moffett
Machine;
* $82.22 to Hitachi Capital Financial; and
* $6,215.28 to an escrow account for Citizens Financial Group,
Inc., and American Express Bank, FSB.
Given the dispute between the Debtor, RBS Citizen and Amex FSB, the
Debtor's counsel, who acts as the escrow agent, will deposit with
Citizens Bank, N.A., or another banking institution each App Escrow
Payment in a non-interest bearing IOLTA account in the name of the
escrow agent, as escrow agent for the benefit of RBS Citizen, Amex
Bank and the Debtor.
A hearing to consider Debtor's further use of cash collateral will
take place on June 24, 2020 at 2:00 p.m. Objections are due by June
17.
A copy of the interim order is available for free at
https://is.gd/fChc82 from PacerMonitor.com
About Chick Lumber
Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer
of lumber, plywood, steel beams, engineered wood, trusses, steel
and asphalt roofing, windows, doors, siding, trim, stair parts, and
finish materials. It also offers drafting and design, installation,
delivery, outside sales, and plan reading and estimating services.
Chick Lumber sought Chapter 11 protection (Bankr. D.N.H. Case No.
19-11252) on Sept. 9, 2019, in Concord, N.H. In the petition
signed by Salvatore Massa, president, the Debtor disclosed between
$1 million and $10 million in both assets and liabilities. Judge
Bruce A. Harwood oversees the case. William S. Gannon PLLC is the
Debtor's legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on Oct. 3, 2019. The Committee is represented by
Goldstein & McClintock, LLLP as its legal counsel.
CIMAREX ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB
----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Cimarex Energy Company to BB from BB+.
Cimarex Energy Co. is a company engaged in hydrocarbon exploration.
It is organized in Delaware and headquartered in Denver, Colorado.
CIRCLE BAR: Unsecureds Will be Paid At Least 5% of Their Claims
---------------------------------------------------------------
Circle Bar T Demolition and Grading, LLC, has proposed a Chapter 11
plan.
Class 1 Secured claims are proposed to be repaid out of the income
produced by the collateral:
* Commercial Credit Group, Inc. (CCG): The Debtor values CCG's
Claim at $250,000; CCG shall be paid the value of its collateral by
making deferred monthly cash payments with interest at the rate of
4% per annum and based upon an amortized period of 5 years for 60
months. Payments of principal and interest on the CCG Class 1 Claim
shall be in the amount of $4,655.00 and shall begin on the
Effective Date.
* Internal Revenue Service (IRS): The IRS Claim will be paid in
full by making deferred monthly cash payments with interest at the
rate of 4% per annum and based upon an amortized period of 5 years
for 60 months. Payments of principal and interest on the IRS Class
1 Claim shall be in the amount of $1,367.00 and shall begin on the
Effective Date.
* Internal Revenue Service (IRS) IRS filed a claim
(unclassified) for $20.83 as Heavy Vehicle Tax; Debtor will pay the
entire claim of $20.83 in one payment on the Effective Date.
Class 2 Other secured claims will be paid as unsecured Class 4
claims.
Branch Banking & Trust Company filed a secured claim for $14,688.
Everest Business Funding filed a secured claim for $36,730.
Platinum Rapid Funding Group, Ltd. filed a secured claim for
$32,434.
Holders of Class 4 General unsecured claims will be paid 5% of
their claims, without interest, in equal payments over 60 months,
beginning on the Effective Date. These creditors are as follows:
* Flint Equipment Company: Creditor will be paid 5% of $6,525.00
at $6.00 per month for 60 months;
* Morrell Farms LLC: Creditor will be paid 5% of $92,900.00 at
$78.00 per month for 60 months;
* U.S. Dept. of Labor-wage hour division - The Debtor disputes
this claim and reserves the right to object to this claim and
Debtor does not offer any payment to this creditor at this time.
* Colonial fuel and Lubricant Services, Inc. - Creditor will be
paid 5% of $2,615 at $2.18 per month for 60 months;
* Colonial Fuel and Lubricant Services, Inc. - Creditor will be
paid 5% of $3,944 at $3.30 per month for 60 months;
* Ferris Dupree Bolen-Debtor disputes this claim and reserves
the right to object to this claim and Debtor does not offer any
payment to this creditor at this time.
The Debtor may increase the percentage to Class 4 Claims as revenue
permits.
Payments and distributions under the Plan will be funded by the
continued operation of the Debtor of its business.
A full-text copy of the Disclosure Statement dated April 13, 2020,
is available at https://tinyurl.com/y8hb5z6s from PacerMonitor.com
at no charge.
Attorney for the Debtor:
J. Carolyn Stringer
PO Box 25345
Columbia, SC 29224-5345
Tel: (803) 786-1405
Fax: (803) 786-1406
E-mail: Jcarolynstringer03@gmail.com
About Circle Bar T Demolition
Circle Bar T Demolition and Grading, Inc., sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 19-04350)
on Aug. 16, 2019. In the petition signed by Tom Coker Lee,
president, the Debtor was estimated to have assets of between
$100,001 and $500,000 and liabilities of between $500,001 and $1
million. The case is assigned to Judge David R. Duncan. The
Debtor is represented by Eddye L. Lane, Esq., and J. Carolyn
Stringer, Esq.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
CLOUDCOMMERCE INC: M&K CPAS PLLC Raises Going Concern Doubt
-----------------------------------------------------------
CloudCommerce, Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$10,123,380 on $9,246,463 of total revenue for the year ended Dec.
31, 2019, compared to a net loss of $2,870,013 on $11,756,828 of
total revenue for the year ended in 2018.
The audit report of M&K CPAS, PLLC states that the Company suffered
a net loss from operations and has a net capital deficiency, 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 $2,752,166, total liabilities of $7,860,212, and a total
shareholders' deficit of $5,108,046.
A copy of the Form 10-K is available at:
https://is.gd/ILqUuC
CloudCommerce, Inc. provides data driven solutions worldwide. Its
solutions help its clients to acquire, engage, and retain their
customers by leveraging digital strategies and technologies. The
company offers data analytics for retail, wholesale, distribution,
logistics, manufacturing, political, and other industries; digital
marketing services; branding and creative services; and development
and managed infrastructure support services. The company was
formerly known as Warp 9, Inc. and changed its name to
CloudCommerce, Inc. in September 2015. CloudCommerce, Inc. was
founded in 1998 and is based in San Antonio, Texas.
CNX RESOURCES: Egan-Jones Lowers Senior Unsecured Ratings to CC
---------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by CNX Resources Corporation to CC from B+. EJR also
downgraded the rating on commercial paper issued by the Company to
C from A3.
Headquartered in Canonsburg, Pennsylvania, CNX Resources
Corporation is a natural gas company based in Pittsburgh.
COLORADO WINDOW: Gets Final OK to Use Cash Collateral Until July 31
-------------------------------------------------------------------
Judge Thomas McNamara of the U.S. Bankruptcy Court for the District
of Colorado authorized Colorado Window Source, Inc., to use cash
collateral on a final basis.
The Debtor's use of cash collateral will expire on the earlier of
July 31, 2020 or entry of an Order converting the Debtor's case to
a case under Chapter 7.
Pursuant to the Final Order, QuarterSpot, Inc., Kalamata Capital
Group, Inc., and Complete Business Solutions Group, Inc. are
granted these adequate protection:
(a) The Debtor will provide its secured creditors with a
post-petition lien on all post-petition inventory and income
derived from the operation of the business and assets, to the
extent the use of the cash results in a decrease in the value of
the secured creditors' interest in the collateral.
(b) The Debtor will only use cash collateral in accordance
with the Budget, subject to a deviation on line item expenses not
to exceed 10% without the prior agreement of Secured Creditors or
an order of the Court;
(c) The Debtor will keep the Secured Creditors' collateral
fully insured;
(d) The Debtor will provide the Secured Creditors with a
complete accounting, on a monthly basis, of all revenue,
expenditures, and collections through the filing of the Debtor's
Monthly Operating Reports; and
(e) The Debtor will maintain in good repair all the Secured
Creditors' collateral.
A copy of the Final Order is available for free at
https://is.gd/5s7aMX from PacerMonitor.com.
About Colorado Window Source
Colorado Window Source, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D. Colo. Case No. 20-11561) on March 4, 2020,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by Keri L. Riley, Esq., at Kutner Brinen,
P.C.
CONCHO RESOURCES: Egan-Jones Cuts Senior Unsecured Ratings to B+
----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Concho Resources Inc. to B+ from BB-.
Concho Resources Inc. is a company engaged in hydrocarbon
exploration. It is organized in Delaware and headquartered in
Midland, Texas.
CONN'S INC: S&P Downgrades ICR to 'B-'; Outlook Negative
--------------------------------------------------------
S&P Global Ratings lowered itsr issuer credit rating on Woodlands,
Texas-based specialty retailer Conn's Inc. to 'B-' from 'B.' The
outlook is negative. At the same time, S&P lowered its issue-level
ratings on the company in line with the lowering of the issuer
credit rating. The recovery ratings are unchanged.
"We expect a substantial near-term hit to Conn's retail sales as
consumers practice social distancing and reduce discretionary
spending. Roughly 95% of Conn's stores continue to operate, but
many operate with reduced hours and capacity for customers and
associates to comply with social distancing mandates. The company
noted in its recent earnings call that same-store sales have
leveled out at down roughly 30%, of which roughly half the negative
impact is due to a tightening of underwriting to control the
quality of the portfolio. We understand that Conn's is allowed to
operate as an essential retailer, and we believe that the company
has seen benefits to sales of currently relevant products,
including appliances and home office," S&P said.
The negative outlook reflects substantial risks to Conn's operating
performance as a result of the coronavirus pandemic, with the pace
of recovery and magnitude of the impact on the company's credit
segment currently unclear.
"We could lower the rating if we believed that the company's
capital structure had become unsustainable. This could occur if
performance were worse than our expectations, leading to a drastic
deterioration in portfolio quality and subsequent decline in
profitability. Under this scenario, we believe the company could
face difficulties refinancing its 2022 maturities at par. We would
also lower the rating if we expected the company would face
covenant violations and would be unable to get relief from its
lenders," S&P said.
"We could revise the outlook to stable if it we expected the credit
portfolio would stabilize and we saw a clear path to recovery for
both retail sales and performance of the credit operations. This
would likely require the coronavirus pandemic to subside and an
improved macroeconomic outlook," S&P said.
CORVALLIS FEED: Time to Object to Personal Property Sale Shortened
------------------------------------------------------------------
Judge Benjamin P. Hursh of the U.S. Bankruptcy Court for the
District of Montana has entered an order shortening the time within
which the creditors may object to Corvallis Feed & Seed, Inc.'s
proposed sale of personal property located in Linn County, Oregon
to Bailey Seed Co., Inc. for the gross sales price of $1.35
million, subject to adjustments.
The creditors and other parties in interest will have seven days
rather than 21 days to file written opposition to the Debtor's
Motion to Sell and to Assign Unexpired Lease of Personal Property
wherein the Debtor proposes to sell personal property located in
Linn County, Oregon, free and clear of liens, and to assign an
unexpired lease of personal property with Toyota Industries
Commercial Finance, Inc.
About Corvallis Feed & Seed
Corvallis Feed & Seed Inc. owns and operates a farm store that
sells pet food and supplies, hardware, electric fencing materials,
livestock supplies, and lawn and garden supplies. The company was
founded in 1940.
Based in Kalispell, Mont., Corvallis Feed & Seed filed a petition
under Chapter 11 of the Bankruptcy Code (Bankr. D. Mont. Case No.
19-60386) on April 26, 2019. In the petition signed by Timothy R.
Birk, president, the Debtor disclosed $1,572,425 in assets and
$2,175,200 in liabilities. Patten, Peterman, Bekkedahl & Green
PLLC is the Debtor's legal counsel.
CREATIVE REALITIES: Receives Noncompliance Notice from Nasdaq
-------------------------------------------------------------
Creative Realities, Inc. received a letter from The Nasdaq Stock
Market LLC on April 28, 2020, advising the Company that for 30
consecutive trading days preceding the date of the Notice, the bid
price of the Company's common stock had closed below the $1.00 per
share minimum required for continued listing on The Nasdaq Capital
Market pursuant to Nasdaq Listing Rule 5550(a)(2). The Notice has
no effect on the listing of the Company's common stock at this
time, and the Company's common stock continues to trade on The
Nasdaq Capital Market under the symbol "CREX".
Under Nasdaq Listing Rule 5810(c)(3)(A), if during the 180 calendar
day period following the date of the Notice the closing bid price
of the Company's common stock is at or above $1.00 for a minimum of
10 consecutive business days, the Company will regain compliance
with the Minimum Bid Price Requirement and its common stock will
continue to be eligible for listing on The Nasdaq Capital Market,
absent noncompliance with any other requirement for continued
listing.
On April 16, 2020, Nasdaq announced it was providing temporary
relief from continued listing bid price requirements through June
30, 2020. Under the relief, the Company will have additional time
to regain compliance with the listing bid price requirements with
the compliance period beginning July 1, 2020. As such, the
compliance period for the Company will expire on
Dec. 28, 2020.
The Notice also disclosed that in the event the Company does not
regain compliance with the Minimum Bid Price Requirement by the end
of the Compliance Period, the Company may be eligible for
additional time. To qualify for additional time, the Company would
be required to meet the continued listing requirement for market
value of publicly held shares and all other initial listing
standards for The Nasdaq Capital Market, with the exception of the
Minimum Bid Price Requirement, and would need to provide written
notice of its intention to cure the deficiency during the second
compliance period, by effecting a reverse stock split, if
necessary. However, if it appears to Nasdaq that the Company will
not be able to cure the deficiency, or if the Company is otherwise
not eligible, Nasdaq would notify the Company that its securities
would be subject to delisting. In the event of such notification,
the Company may appeal Nasdaq's determination to delist its
securities, but there can be no assurance that Nasdaq would grant
the Company's request for continued listing.
The Company intends to monitor the closing bid price of its common
stock and may, if appropriate, consider implementing available
options to regain compliance with the Minimum Bid Price Requirement
under the Nasdaq Listing Rules.
About Creative Realities
Creative Realities, Inc. -- http://www.cri.com/-- is a Minnesota
corporation that provides innovative digital marketing technology
and solutions to retail companies, individual retail brands,
enterprises and organizations throughout the United States and in
certain international markets. The Company has expertise in a
broad range of existing and emerging digital marketing
technologies, as well as the related media management and
distribution software platforms and networks, device management,
product management, customized software service layers, systems,
experiences, workflows, and integrated solutions.
Creative Realities reported net income of $1.04 million for the
year ended Dec. 31, 2019, following a net loss of $10.62 million
for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had $33.97 million in total assets, $15.65 million in total
liabilities, and $18.51 million in total shareholders' equity.
Management believes that, based on (i) the extension of the
maturity date on the Company's term loan and revolving loans, and
(ii) the Company's operational forecast through 2021, the Company
can continue as a going concern through at least March 31, 2021.
However, given the Company's history of net losses, cash used in
operating activities and working capital deficit, the Company
obtained a continued support letter from Slipstream through March
31, 2021. The Company can provide no assurance that its ongoing
operational efforts will be successful which could have a material
adverse effect on its results of operations and cash flows.
CREATIVE REALITIES: Secures $1.55M PPP Loan from Old National
-------------------------------------------------------------
Creative Realities, Inc. entered into a promissory note with Old
National Bank, which provides for an unsecured loan of $1,551,800
pursuant to the Paycheck Protection Program under the Coronavirus
Aid, Relief, and Economic Security Act and applicable regulations
(the "CARES Act"). The Promissory Note has a term of two years
with a 1% per annum interest rate. Payments are deferred for six
months from the date of the Promissory Note and the Company can
apply for forgiveness of the Promissory Note after 60 days.
Forgiveness of the Promissory Note will be determined in accordance
with the provisions of the CARES Act and applicable regulations.
Any principal and interest amounts outstanding after the
determination of amounts forgiven will be repaid on a monthly
basis.
About Creative Realities
Creative Realities, Inc. -- http://www.cri.com/-- is a Minnesota
corporation that provides innovative digital marketing technology
and solutions to retail companies, individual retail brands,
enterprises and organizations throughout the United States and in
certain international markets. The Company has expertise in a
broad range of existing and emerging digital marketing
technologies, as well as the related media management and
distribution software platforms and networks, device management,
product management, customized software service layers, systems,
experiences, workflows, and integrated solutions.
Creative Realities reported net income of $1.04 million for the
year ended Dec. 31, 2019, following a net loss of $10.62 million
for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had $33.97 million in total assets, $15.65 million in total
liabilities, and $18.51 million in total shareholders' equity.
Management believes that, based on (i) the extension of the
maturity date on the Company's term loan and revolving loans, and
(ii) the Company's operational forecast through 2021, the Company
can continue as a going concern through at least March 31, 2021.
However, given the Company's history of net losses, cash used in
operating activities and working capital deficit, the Company
obtained a continued support letter from Slipstream through March
31, 2021. The Company can provide no assurance that its ongoing
operational efforts will be successful which could have a material
adverse effect on its results of operations and cash flows.
CRIDER AVENUE: Court Approves Disclosure Statement
--------------------------------------------------
Judge Andrew B. Altenburg, Jr., has ordered that the disclosure
statement explaining the Chapter 11 plan filed by debtor Crider
Avenue Properties, dated March 4, 2020 is approved.
May 28, 2020, at 10 a.m., is fixed as the date and time for the
hearing on confirmation of the Plan.
Written acceptances, rejections or objections to the plan referred
to above must be filed and served not less than seven days before
the hearing on confirmation of the plan.
About Crider Avenue Properties
Crider Avenue Properties, LLC, a Single Asset Real Estate Debtor,
sought Chapter 11 protection (Bankr. D.N.J. Case No. 19-18343) on
April 25, 2019. In the petition signed by Ronald Brodie, managing
member, the Debtor was estimated to have assets of less than
$50,000, and $1 million to $10 million in debt. The case is
assigned to Judge Andrew B. Altenburg Jr. The Debtor tapped Paul
J. Winterhalter, Esq., at Offit Kurman, P.A., as counsel.
CSM BAKERY: S&P Downgrades ICR to 'SD' on Maturity Extension
------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
CSM Bakery Solutions LLC to 'SD' (selective default) from 'CCC'.
S&P lowered its issue-level ratings on the company's first-lien
term loan to 'CC' from 'CCC+' and on its second-lien term loan to
'C' from 'CC'. The '2' and '6' recovery ratings, respectively, on
the loans are unchanged.
CSM Bakery Solutions LLC has executed an amendment to extend the
maturity of its $105 million asset-backed lending facility (ABL,
unrated) to June 4, 2020, from its previous springing maturity date
of May 4, 2020. The springing maturity was likely to be in effect
because the company has not completed a refinancing of its
first-lien term loan due July 2020.
S&P treat the amendment as tantamount to a selective default
because, in its view, CSM is distressed and the amendment is a
modification to the credit agreement whereby lenders are receiving
less than promised without material compensation.
The downgrade to 'SD' reflects the company's distressed position
and modification to its ABL agreement.
CYTODYN INC: Accumulated Deficit Casts Going Concern Doubt
----------------------------------------------------------
CytoDyn Inc. filed its quarterly report on Form 10-Q, disclosing a
net loss of $35,767,729 on $0 of revenue for the three months ended
Feb. 29, 2020, compared to a net loss of $12,573,811 on $0 of
revenue for the same period in 2019.
At Feb. 29, 2020, the Company had total assets of $38,817,936,
total liabilities of $43,201,047, and $4,383,111 in total
stockholders' deficit.
Company President Nader Z. Pourhassan and Chief Financial Officer
Craig S. Eastwood stated, "The Company had losses for all periods
presented. The Company incurred a net loss of $66,792,196 for the
nine months ended February 29, 2020 and has an accumulated deficit
of $296,683,031 as of February 29, 2020. These factors, among
others, raise substantial doubt about the Company's ability to
continue as a going concern."
A copy of the Form 10-Q is available at:
https://is.gd/3kjF24
CytoDyn Inc., a late-stage biotechnology company, focuses on the
clinical development and commercialization of humanized monoclonal
antibodies to treat human immunodeficiency virus (HIV) infection.
Its lead product is PRO 140, a therapeutic anti-viral agent, which
is in Phase IIb extension study for HIV as monotherapy, rollover
study for HIV as a combination therapy, Phase IIb/III investigative
trial for HIV, Phase Ib/II trial for triple-negative breast cancer,
and Phase II trial for graft-versus-host disease. CytoDyn Inc. has
strategic agreement with Samsung BioLogics Co. Ltd. for the
clinical and commercial manufacturing of leronlimab. The company
was formerly known as RexRay Corporation. CytoDyn Inc. was
incorporated in 2002 and is based in Vancouver, Washington.
DEAN FOODS: DOJ Approves Sale Amid Antitrust Concerns
-----------------------------------------------------
The Department of Justice announced the conclusion of its
investigation into proposed acquisitions by Dairy Farmers of
America Inc. (DFA) and Prairie Farms Dairy Inc. (Prairie Farms) of
fluid milk processing plants from Dean Foods Company (Dean) out of
bankruptcy. The department's investigation was conducted against
the backdrop of unprecedented challenges in the dairy industry,
with the two largest fluid milk processors in the U.S., Dean and
Borden Dairy Company, in bankruptcy, and Dean faced with imminent
liquidation.
The department's Antitrust Division, along with the offices of the
Massachusetts and Wisconsin attorneys general (Plaintiff States),
filed a civil antitrust lawsuit May 1, 2020, in the U.S. District
Court for the Northern District of Illinois to block DFA's proposed
acquisition of three fluid milk processing plants from Dean, which
are located in northeastern Illinois, Wisconsin, and New England.
At the same time, the department filed a proposed settlement that,
if approved by the court, would resolve the competitive harm
alleged in the lawsuit through the divestiture of plants located in
in Harvard, Illinois; De Pere, Wisconsin; and Franklin,
Massachusetts, as well as associated equipment and other assets
related to fluid milk production, to an acquirer or acquirers
approved by the U.S. During its investigation, the department also
expressed concerns to DFA and Dean about the potential loss of
competition if DFA were to acquire a number of Dean's fluid milk
processing plants in the Upper Midwest, and DFA subsequently ceased
its efforts to acquire those plants.
The department is also closing its investigation into Prairie
Farms' proposed acquisition of fluid milk processing plants from
Dean in the South and Midwest after concluding that the plants at
issue likely would be shut down if not purchased by Prairie Farms
because of Dean’s distressed financial condition and the lack of
alternate operators who could timely buy the plants.
"This is a tumultuous time for the dairy industry, with the two
largest fluid milk processors, Dean and Borden Dairy Company, in
bankruptcy, and a pandemic causing demand for milk by schools and
restaurants to collapse. In the face of these challenges and
Dean's worsening financial condition, the department conducted a
fast but comprehensive investigation, and our actions today
preserve competition for fluid milk processing in northeastern
Illinois, Wisconsin, and in New England," said Assistant Attorney
General Makan Delrahim of the Antitrust Division. "In addition,
the closing of the department’s investigation into Prairie Farms'
acquisition will preserve necessary outlets for dairy farmers and
keep milk on consumers' refrigerator shelves by keeping the plants
in operation."
"I am very happy that we've been able to help protect competition
in the dairy industry here in Wisconsin," said Wisconsin Attorney
General Joshua L. Kaul. "While strong competition in the market is
always important, it’s incredibly important now, as we’re
living through a pandemic. Our supply chain must have robust
competition to ensure a continued supply of milk to those who need
it."
Today's settlement with DFA and Dean will ensure the continued
operation of dozens of fluid milk plants and that supermarkets,
schools, convenience stores, hospitals, and other consumers of
fluid milk are not harmed by the loss of Dean’s processing plants
due to its bankruptcy.
DFA is a Kansas cooperative marketing association headquartered in
Kansas City, Kansas. It has nearly 14,000 farmer-members across
the United States. DFA had 2018 revenues of $13.6 billion.
Prairie Farms is an Illinois corporation headquartered in
Edwardsville, Illinois. It has over 700 farmer-members and annual
revenues of over $3 billion.
As required by the Tunney Act, the proposed settlement, along with
a competitive impact statement, will be published in the Federal
Register. Any person may submit written comments concerning the
proposed settlement during a 60-day comment period to Eric Welsh,
Acting Chief, Healthcare and Consumer Products Section, Antitrust
Division, U.S. Department of Justice, 450 Fifth Street NW, Suite
4100, Washington, DC 20530. At the conclusion of the 60-day
comment period, the U.S. District Court for the Northern District
of Illinois may enter the final judgment upon finding it is in the
public interest.
About Southern Foods Group
Southern Foods Group, LLC, d/b/a Dean Foods, is a food and beverage
company and a processor and direct-to-store distributor of fresh
fluid milk and other dairy and dairy case products in the United
States.
The Company and its 40+ affiliates filed for bankruptcy protection
on Nov. 12, 2019 (Bankr. S.D. Texas, Lead Case No. 19-36313). The
petitions were signed by Gary Rahlfs, senior vice president and
chief financial officer. Dean Foods was estimated to have assets
and liabilities of $1 billion to $10 billion as of the bankruptcy
filing.
Judge David Jones oversees the cases.
David Polk & Wardell LLP serves as general bankruptcy counsel to
the Debtors, and Norton Rose Fulbright US LLP serves as local
counsel. Alvarez Marsal is financial advisor to the Debtors,
Evercore Group LLC is investment banker, and Epiq Corporate
Restructuring LLC is notice and claims agent.
DEL MONTE: Moody's Hikes CFR to Caa1 & Rates $500MM Notes Caa2
--------------------------------------------------------------
Moody's Investors Service, Inc. upgraded ratings of Del Monte
Foods, Inc. in anticipation of the company's successful refinancing
of its secured bank facilities. Ratings upgraded include Del
Monte's Corporate Family Rating to Caa1 from Caa2, Probability of
Default Rating to Caa1-PD from Caa2-PD and Speculative Grade
Liquidity Rating to SGL-3 from SGL-4. Moody's also assigned a Caa2
rating to Del Monte's proposed $500 million five-year senior
secured notes that are expected to close today. Finally, the
outlook was revised to positive from negative.
The proposed secured notes offering is part of a recapitalization
that will result in the full repayment of Del Monte's first-lien
secured term loan (Caa2) and second-lien secured term loan (Caa3).
The ratings on these secured term loan instruments are not affected
and will be withdrawn when the loans are repaid, anticipated at
closing of the notes.
The proposed refinancing includes a $366 million equity
contribution from an indirect holding company, consisting of an
equitization of $216 million of Del Monte's second-lien debt that
it previously purchased on the open market, and a $150 million cash
purchase of Del Monte's common shares. Moody's considers the
equitization a continuation of the distressed exchange that was
initiated with discounted debt repurchases in July 2018, and not a
separate default. Concurrent with the equity contribution, Del
Monte will issue the proposed $500 million five-year secured
notes.
Del Monte will utilize the net proceeds from the new notes, cash
equity contribution and approximately $93 million of incremental
drawings under an expanded ABL facility to retire its $667 million
first-lien secured term loan maturing February 2021 and $23 million
of the second lien term loan held by outside investors. Finally, as
part of the recapitalization, the company will expand the size of
its ABL facility to $450 million from $443 million and extend the
maturity to a date three years from closing. The existing ABL
facility expires in November 2020.
The upgrade reflects that the debt reduction and refinancing will
improve the company's leverage and liquidity and will provide Del
Monte flexibility to execute its cost reduction initiatives. The
upgrade also reflects increased demand for shelf stable foods as a
result of the coronavirus that, while temporary, provide additional
cash for Del Monte. The transaction follows a similar proposed
refinancing launched on March 4, 2020 that was later cancelled due
to volatile market conditions caused by coronavirus disruptions.
The cancellation resulted in a CFR downgrade on March 18, 2020 to
Caa2 from Caa1 and an outlook revision to negative.
Moody's has taken the following rating actions today on Del Monte
Foods, Inc.:
Del Monte Foods, Inc.
Ratings upgraded:
Corporate Family Rating to Caa1 from Caa2;
Probability of Default Rating to Caa1-PD from Caa2-PD;
Speculative Grade Liquidity Rating to SGL-3 from SGL-4.
Rating assigned:
Proposed $500 million senior secured notes due 2025 at Caa2 (LGD
5).
The following ratings will be withdrawn upon repayment:
$667 million outstanding first-lien senior secured term loan due 18
Feb 2021 at Caa2 (LGD 4);
$260 million outstanding second-lien senior secured term loan due
18 Aug 2021 at Caa3 (LGD 5).
The outlook has been revised to positive from negative.
The Caa2 rating on the new senior secured notes is a notch lower
than the Caa1 Corporate Family Rating reflecting the subordinated
lien on the collateral relative to the proposed $450 million asset
backed revolving credit facility (not rated by Moody's). This
notching also reflects the absence of any significant debt
instruments that are subordinate to the secured notes, following
the pending retirement of the company's second-lien debt
instruments.
RATINGS RATIONALE
The Caa1 Corporate Family Rating reflects Del Monte's high
financial leverage, declining category sales volume in U.S. canned
fruit and vegetables, and high execution risk related to a major
operational restructuring underway. The company's ratings are
supported by the strength of the Del Monte brand, which holds
leading shares in core shelf stable fruits and vegetables. In
regard to governance, the ratings are also supported by a history
of liquidity support provided by parent company Del Monte Pacific
Ltd. ("DMPL", not rated) that Moody's expects will continue.
The rating actions reflect Moody's assumption that the company's
proposed recapitalization and asset lite strategy will be completed
successfully under tenable terms.
If consummated, the proposed recapitalization at closing will
reduce proforma fiscal 2020 year-end debt-to-EBITDA from about
7.25x to 6.25x, by Moody's estimates. Leverage could fall below
5.0x debt-to-EBITDA if the company is able to achieve its cost
savings target of $68 million by the end of fiscal year ending
April 2021.
Del Monte is in the midst of a major operational shift to an
asset-lite model designed to significantly improve profitability.
The initiative is budgeted to save the company $68 million in
annual costs through reduced fixed overhead costs, raw materials
and labor, net of incremental co-packer and variable costs. In
addition, the company plans new product innovation aimed at
increasing sales and profit margins and improving product mix.
However, because of the high complexity of the strategy, along with
weak category fundamentals, execution risk is very high.
The speculative grade liquidity rating upgrade to SGL-3 reflects
the refinancing of maturing debt. Del Monte's adequate liquidity
reflects the absence of debt maturities until the ABL revolver
expires in 2023, approximately $300 million of unused capacity on
the $450 million revolver, and Moody's expectation for positive
free cash flow over the next year. Moody's also anticipates that
Del Monte will maintain good cushion within the revolver's minimum
1.0x fixed charge coverage covenant, which applies if ABL revolver
borrowings exceed certain levels.
The positive outlook reflects that Del Monte could meaningfully
reduce leverage and free cash flow through the operational
restructuring.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Del Monte's ratings could be downgraded if the company is unable to
consummate the proposed recapitalization or is otherwise unable to
significantly improve liquidity. A downgrade could also occur if
the company fails to successfully execute its asset-lite strategy,
including improving annual EBITDA to at least $100 million by the
end of fiscal 2021 from about $80 million currently.
To warrant an upgrade, Del Monte would need to reduce debt/EBITDA
below 7.0x, demonstrate the ability to generate positive operating
cash flow excluding working capital reductions, and sustain
adequate liquidity.
ESG CONSIDERATIONS
Moody's views the coronavirus outbreak as a social risk given the
substantial credit implications of public health and safety. 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. Notwithstanding
these risks, some shelf stable packaged foods companies, including
Del Monte, are currently experiencing higher than normal sales
volume due to consumer behavioral shifts related to the coronavirus
epidemic. Moody's believe that these shifts, which include pantry
loading and more at-home dining, are generally favorable for the
retail packaged foods sector even through some volatility can be
expected in 2020 due to uncertain demand characteristics, channel
shifting, and the potential for supply chain disruptions.
Headquartered in Walnut Creek, California, Del Monte Foods, Inc. is
a manufacturer and marketer of branded and private label food
products for the US and South American retail market. Its brands
include Del Monte in shelf stable fruit, vegetable and tomatoes;
Contadina in tomato-based products; College Inn in broth products;
and S&W in shelf stable fruit, vegetable and tomato products. The
company generates annual sales of approximately $1.3 billion.
DELL INC: Egan-Jones Withdraws BB Sr. Unsecured Ratings
-------------------------------------------------------
Egan-Jones Ratings Company, on April 20, 2020, withdrew its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Dell Incorporated.
Headquartered in Round Rock, Texas, Dell is an American
multinational computer technology company that develops, sells,
repairs, and supports computers and related products and services.
DENBURY RESOURCES: Egan-Jones Cuts Senior Unsecured Ratings to CC
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Denbury Resources Inc. to CC from CCC-.
Denbury Resources is a company engaged in hydrocarbon exploration.
It is organized in Delaware and headquartered in Plano, Texas.
DEVON ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Devon Energy Corporation to BB- from BB.
Devon Energy Corporation is a company engaged in hydrocarbon
exploration. It is organized in Delaware and headquartered in the
50-story Devon Energy Center in Oklahoma City, Oklahoma.
DIAMOND OFFSHORE: Egan-Jones Lowers Senior Unsecured Ratings to C
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 20, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Diamond Offshore Drilling, Inc. to C from CCC-. EJR
also downgraded the rating on FC commercial paper issued by the
Company to D from C.
Diamond Offshore Drilling, Inc. is an offshore drilling contractor.
The company is headquartered in Katy, Texas, United States.
DOMINION DIAMOND: Gets CCAA Initial Order; FTI Named Monitor
------------------------------------------------------------
Dominion Diamond Mines ULC, Dominion Diamond Delaware Company, LLC,
Dominion Diamond Canada ULC, Washington Diamond Investments, LLC,
Dominion Diamond Holdings, LLC, and Dominion Finco Inc. sought and
obtained an initial order from the Court of the Queen's Bench of
Alberta under the Companies' Creditors Arrangement Act.
The Initial Order provides, among other things, a stay of
proceedings which may be extended from time to time. Pursuant to
the Initial Order FTI Consulting Canada Inc. was appointed monitor
of the Companies.
A copy of the Initial Order and copies of the materials filed in
the CCAA proceedings may be obtained at
http://cfcanada.fticonsulting.com/dominion/or on request from the
Monitor by calling 1-833-277-3986 or e-mailing
Dominion.Diamond@fticonsulting.com.
Canadian Counsel to Dominion Diamond Mines ULC:
Blake, Cassels & Graydon LLP
Suite 2600, 595 Burrard St.
PO Box 49314
Vancouver BC V7X 1L3
Peter Rubin
Email: peter.rubin@blakes.com
Linc Rogers
Email: linc.rogers@blakes.com
Peter Bychawski
Email: peter.bychawski@blakes.com
Morgan Crilly
Email: morgan.crilly@blakes.com
Claire Hildebrand
Email: Claire.hildebrand@blakes.com
US Counsel to Dominion Diamond Mines ULC:
FTI Consulting Inc.
Suite 1610. 520 5th Ave. SW
Calgary AB T2P 3R7
Deryck Helkaa
Email: deryck.helkaa@fticonsulting.com
Tom Powell
Email: tom.powell@fticonsulting.com
Lindsay Shierman
Email: lindsay.shierman@fticonsulting.com
Dustin Olver
Email: dustin.olver@fticonsulting.com
Craig Munro
Email: craig.munro@fticonsulting.com
Robert Kleebaum
Email: robert.kleebaum@fticonsulting.com
Canadian Counsel to Washington Group of Companies:
Goodmans LLP
Suite 3400, 333 Bay Street
Toronto ON M5H 2S7
Brendan O'Neill
Email: boneill@goodmans.ca
Bradley Wiffen
Email: bwiffen@goodmans.ca
Michael Partridge
Email: mpartridge@goodmans.ca
Jeff Citron - jcitron@goodmans.ca
US Counsel to Washington Group of Companies:
Skadden, Arps, Slate, Meagher & Flom LLP
One Manhattan West
New York, NY 10001-8602
Robert Fitzgerald
Email: Robert.Fitzgerald@skadden.com
Stephen Arcano
Email: Stephen.Arcano@skadden.com
Ron Meisler
Email: Ron.Meisler@skadden.com
Stephanie Teicher
Email: Stephanie.Teicher@skadden.com
Richard West
Email: Richard.West@skadden.com
Sally Thurston
Email: Sally.Thurston@skadden.com
Marie Gibson
Email: Marie.Gibson@skadden.com
Danielle Li
Email: Danielle.Li@skadden.com
Sherry Xie
Email: Sherry.Xie@skadden.com
Counsel to the Monitor:
Bennett Jones LLP
4500 Bankers Hall East
855 - 2nd Street SW
Calgary, AB T2P 4K7
Chris Simard
Email: simardc@bennettjones.com
Mike Selnes
Email: selnesm@bennettjones.com
Dominion Diamond Mines -- https://www.ddmines.com/ -- is a Canadian
diamond mining company with ownership interests in two major
producing diamond mines situated approximately 200 kilometers south
of the Arctic Circle in Canada's Northwest Territories.
DOVE REAL ESTATE: Unsecured Creditors to Get 5% in Plan
-------------------------------------------------------
Debtor Dove Real Estate & Association Management LLC filed on April
16, 2020, a Second Amended Disclosure Statement describing its
Chapter 11 Plan of Reorganization dated March 24, 2020.
The Plan will be funded from two sources consisting of the Debtor's
cash on hand on the Effective Date and the revenue generated from
the Debtor's business operations. The Debtor estimates that the
sum of approximately $18,116 will be necessary to fund the Plan on
the Effective Date, compared to $35,000 necessary to fund from the
prior iteration of the Plan.
The Plan provides that allowed claims will be paid as follows: the
secured claim of JP Morgan Chase Bank, N.A., will be paid over
seven years at seven percent interest; the secured claim of Brooker
Associates will be paid over three years at seven percent
interest; the secured claim of MacArthur will be paid over four
years at seven percent interest; administrative claims will be paid
in full on the later of the Effective Date or the date such claims
are allowed by the Court unless such parties agree to different
treatment, which is expected to occur; the priority tax claim of
the Franchise Tax Boardshall be paid in 12 equal installments at 6
percent interest; and general unsecured creditors will be paid an
amount equal to 5% of their allowed claims in quarterly
installments over a three year term following Plan confirmation.
The Debtor shall assume and continue to perform its real property
lease.
A full-text copy of the Second Amended Disclosure Statement dated
April 16, 2020, is available at https://tinyurl.com/y6w4twmx from
PacerMonitor at no charge.
The Debtor is represented by:
Daniel J. Weintraub
James R. Selth
Crystle J. Lindsey
WEINTRAUB & SELTH, APC
11766 Wilshire Boulevard, Suite 1170
Los Angeles, CA 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-mail: crystle@wsrlaw.net
About Dove Real Estate
Dove Real Estate & Association Management LLC filed a Chapter 11
petition (Bankr. C.D. Cal. Case No. 19-13770) on Sept. 27, 2019, in
Santa Ana, California. In the petition signed by its CEO, Kevin
Shelton, the Debtor was estimated to have assets of less than
$100,000 and debt under $1 million. WEINTRAUB & SELTH APC is the
Debtor's counsel.
DOW CHEMICAL: Egan-Jones Withdraws B Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, withdrew 'B' foreign
currency and local currency senior unsecured ratings on debt issued
by Dow Chemical Co/The.
The Dow Chemical Company is an American multinational chemical
corporation headquartered in Midland, Michigan.
DPW HOLDINGS: Adjourns Special Meeting Due to Lack of Quorum
------------------------------------------------------------
DPW Holdings, Inc.'s special meeting of stockholders, scheduled as
a virtual meeting format only, on April 30, 2020 at 9:00 a.m. PT.
was adjourned due to a lack of quorum.
A quorum consists of a majority of the shares entitled to vote.
There were fewer than a majority of shares entitled to vote
present, either in person or by proxy at this meeting. The special
meeting of stockholders therefore had no quorum and the meeting was
adjourned.
The Company will hold another special meeting on June 8, 2020 at
which it will seek approval for the same proposals as was sought
for the meeting held on April 30, 2020, as well as the ratification
of the appointment of Marcum LLP as its independent auditor. The
record date for the new special meeting will be established by the
Company, but will be set at a future date; the former record date
of March 2, 2020 is no longer valid.
About DPW Holdings
DPW Holdings, Inc. -- http://www.DPWHoldings.com/-- is a
diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through its wholly and majority-owned subsidiaries and
strategic investments, the Company provides mission-critical
products that support a diverse range of industries, including
defense/aerospace, industrial, telecommunications, medical,
crypto-mining, and textiles. In addition, the Company owns a
select portfolio of commercial hospitality properties and extends
credit to select entrepreneurial businesses through a licensed
lending subsidiary. DPW's headquarters are located at 201 Shipyard
Way, Suite E, Newport Beach, CA 92663.
DPW Holdings incurred a net loss of $32.98 million in 2018,
following a net loss of $10.89 million in 2017. As of Sept. 30,
2019, the Company had $47.42 million in total assets, $29.50
million in total liabilities, and $17.92 million in total
stockholders' equity.
Marcum LLP, in New York, the Company's auditor since 2016, issued a
"going concern" qualification in its report dated April 16, 2019,
on the Company's consolidated financial statements for the year
ended Dec. 31, 2018, stating that the Company has a significant
working capital deficiency, has incurred significant losses, and
needs to raise additional funds to meet its obligations and sustain
its operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
EDGEMARC ENERGY: Unsecureds to Get 2.4% to 13.8% in Plan
--------------------------------------------------------
EdgeMarc Energy Holdings, LLC, which has sold most of its assets,
has filed a Chapter 11 plan that implements a global settlement
with its unsecured creditors and its lenders.
The Debtors filed their Chapter 11 cases to engage in a process to
sell substantially all of their assets so that they could maximize
the value of their Estates for the benefit of all of their
constituents and preserve their ongoing business. On Sept. 18,
2019, the Debtors consummated the sale of the Monroe/Washington
Assets. On Feb. 24, 2020, the Debtors closed on the sale of the
Monroe Assets.
The Plan implements the global settlement reached with the Official
Committee of Unsecured Creditors, KeyBank National Association and
ETC Northeast Pipeline, LLC, and distributes the consideration
contained therein to holders of allowed claims as further set forth
in the Plan. Pursuant to the Global Settlement, the released
parties provided a substantial contribution with more than $90
million in aggregate value to the Debtors' Estates. KeyBank (a)
purchased the Butler Assets through a credit bid and cash of
$9,684,637, satisfying in full its outstanding secured DIP Facility
of approximately $60 million; (b) shall pay an additional
$17,000,000, plus interest, in cash in installments (the "KeyBank
Settlement Installment Payments"). ETC contributed $1,000,000 to
the Debtors' Estates in exchange for the consideration received
under the Global Settlement. MarkWest and Axip each agreed to
material modifications of their current executory contracts in
connection with their assumption and assignment to KeyBank in
connection with the Butler Sale, providing KeyBank with additional
liquidity to make the Key Bank Installment Payments.
The Plan provides for the liquidation of the Debtors' remaining
assets following the sale of substantially all of the Debtor's
assets to the Buyers, under 11 U.S.C. Sec. 363.
Holders of Class 4 General Unsecured Claims expected to total
$250,000,000 to $1,000,000,000 are projected to recover 2.4% to
13.8%. Each holder of the Allowed General Unsecured Claim will
receive its pro rata share of the Beneficial Trust Interests, which
Beneficial Trust Interests shall entitle the holders thereof to
receive their pro rata share of the Liquidation Trust Assets.
Holders of Class 7 Interests will receive no distribution under the
Plan.
A full-text copy of the Disclosure Statement dated April 13, 2020,
is available at https://tinyurl.com/y6wzo3fr from PacerMonitor.com
at no charge.
Counsel to the Debtors:
Darren S. Klein
Lara Samet Buchwald
Aryeh E. Falk
Jonah A. Peppiatt
DAVIS POLK & WARDWELL LLP
450 Lexington Avenue
New York, New York 10017
Telephone: (212) 450-4000
Facsimile: (212) 701-5800
- and -
Adam G. Landis
Kerri K. Mumford
Matthew R. Pierce
LANDIS RATH & COBB LLP
919 Market Street, Suite 1800
Wilmington, DE 19801
Telephone: (302) 467-4400
Facsimile: (302) 467-4450
About EdgeMarc Energy
EdgeMarc Energy Holdings, LLC -- http://www.edgemarcenergy.com/--
is a locally based natural gas exploration and production company
headquartered in Canonsburg, Pa. It is engaged in the acquisition,
production, exploration and development of natural gas and natural
gas liquids from underground deposits in the Appalachian Basin.
EdgeMarc Energy conducts its drilling and exploration activities in
the "stacked" liquid-rich Marcellus shale in Pennsylvania and dry
gas Utica shale in Ohio.
EdgeMarc Energy and its 8 affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 19-11104) on May 15, 2019.
EdgeMarc Energy estimated assets of $100 million to $500 million
and liabilities of the same range as of the bankruptcy filing.
The Hon. Brendan Linehan Shannon is the case judge.
The Debtors tapped Landis Rath & Cobb LLP as counsel; Davis Polk &
Wardwell LLP as corporate counsel; Evercore Partners as investment
banker; Oportune LLC and Dacarba LLC as financial advisor; and
Prime Clerk LLC as claims agent.
ELLSWORTH HANSEN: May 27 Hearing on Disclosure Statement
--------------------------------------------------------
Judge Robert A. Gordon has ordered that the hearing to consider the
approval of the Disclosure Statement filed by Ellsworth Hansen
Associates LLC will be held in Courtroom 1B of the U.S. Bankruptcy
Court, U.S. Courthouse, 101 West Lombard Street, Baltimore,
Maryland 21201, on May 27, 2020, at 10:00 a.m.
May 18, 2020, is fixed as the last day for filing and serving in
accordance with Federal Bankruptcy Rule 3017(a) written objections
to the Disclosure Statement.
May 18, 2020, is fixed as the last day for filing and serving in
accordance with Federal Bankruptcy Rule 3017(a) written objections
to the Disclosure Statement.
Counsel for the Debtor:
Edward M. Miller
Miller and Miller, LLP
39 N. Court St.
Westminster, MD 21157
About Ellsworth Hansen Associates
Ellsworth Hansen Associates LLC, filed a Chapter 11 bankruptcy
petition (Bankr. D. Md. Case No. 19-21159) on Aug. 20, 2019,
estimating under $1 million in both assets and liabilities. The
Debtor is represented by Edward M. Miller, Esq., at Miller &
Miller, LLP.
ENERPLUS CORP: Egan-Jones Cuts Sr. Unsecured Ratings to BB+
-----------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Enerplus Corporation to BB+ from BBB-.
Headquartered in Calgary, Canada, Enerplus Corporation is one of
Canada's largest independent oil and gas producers.
EQT CORP: Egan-Jones Lowers Senior Unsecured Ratings to B
---------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by EQT Corporation to B from B+. EJR also downgraded
the rating on commercial paper issued by the Company to B from A3.
EQT Corporation is a company engaged in hydrocarbon exploration and
pipeline transport. It is headquartered in EQT Plaza in Pittsburgh,
Pennsylvania.
ETC SUNOCO: Egan-Jones Withdraws BB- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 24, 2020, withdrew its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by ETC Sunoco Holdings LLC.
Headquartered in Philadelphia, Pennsylvania, ETC Sunoco Holdings
LLC distributes gasoline products.
EVERI PAYMENTS: S&P Affirms 'B' Issuer Credit Rating; Outlook Neg.
------------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Everi
Payments Inc. because it believes the company has sufficient
liquidity to weather this unprecedented disruption and could
improve leverage under 6x in 2021 in its assumed recovery
scenario.
S&P is also lowering the issue-level ratings on the company's
existing secured debt by one notch to 'B+' from 'BB-' and revising
the recovery rating to '2' from '1', reflecting impaired recovery
prospects for existing secured debt lenders as a result of the new
incremental secured debt in the capital structure.
S&P is also removing all ratings from CreditWatch, where it had
placed them with negative implications on March 20, 2020.
"Despite our forecast for a significant spike in leverage in 2020
because of unprecedented casino closures, we affirmed our 'B+'
rating because we believe Everi could improve leverage under 6x in
2021 in our assumed recovery scenario whereby casinos begin to
reopen in the second half of 2020. In our revised base case
assumptions, we assume Everi's leverage will spike in 2020 because
Everi will generate near-zero revenue and will burn cash while
casinos are temporarily closed because of the COVID-19 pandemic. We
believe casinos will generally remain closed through the second
quarter and we assume governmental authorities will allow casinos
to begin reopening in the third quarter. However, we believe casino
operators may be required to implement social distancing measures,
such as turning off every other slot machine and reducing the
number of seats at table games to spread out patrons. This would
reduce available gaming capacity, as well as fees that Everi can
earn from its machines on casino floors," S&P said.
"Additionally, we believe consumers may be reluctant to enter
public spaces and this fear, along with a recession, could result
in a slow recovery for casinos. Nevertheless, we believe recovery
in casino visitation and spending in 2021 and our belief that
casinos will be open all of next year could support significant
EBITDA growth in 2021 compared to 2020, but still recovering to
below 2019 levels. As a result, we assume Everi's adjusted leverage
may improve below 6x next year, which would provide some cushion
compared to our 6.5x downgrade threshold for Everi at the 'B'
rating," the rating agency said.
The negative outlook on Everi reflects the possibility that S&P
could lower Everi's ratings if it no longer believes the
coronavirus will be contained by the middle of 2020 such that
casinos can begin to reopen in the second half of 2020 or if the
recovery of gaming demand upon reopening is weaker than the rating
agency is currently assuming, causing the company's leverage and
liquidity to worsen relative to its current forecast. The outlook
also incorporates the uncertainty in S&P's updated base case
recovery assumptions around the extent of the coronavirus' impact
on the company's performance.
"We could lower the rating if Everi begins to exhaust its liquidity
sources because of extended casino closures. We could also lower
the rating if we no longer believe Everi's credit measures will
recover from the coronavirus shock in a manner that supports
leverage improving below 6.5x in 2021. For example, this could
occur if casino closures are more prolonged than we currently
assume, if prolonged economic weakness results in weaker traffic or
reduced player spend at casinos relative to our current assumptions
or casino operators materially cut back on their gaming machine
orders for an extended period of time," S&P said.
"It is unlikely that we would revise our outlook on Everi to stable
over the next year given high uncertainty around when the
coronavirus might be contained, how long it may take gaming demand
to recover, and the effect that could have on our base case
recovery assumptions. We could consider revising the outlook to
stable after casinos reopen and we can assess the pace of Everi's
cash flow recovery later this year and into 2021. Higher ratings
are unlikely given our forecast for adjusted leverage above 5x in
2021. Nevertheless, once operations recover, we could consider
higher ratings if we believe Everi could sustain adjusted leverage
under 5x," the rating agency said.
FCPR ACQUISITION: Trustee's $305K Sale of All Trucking's Assets OKd
-------------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Alex Moglia, the chapter 11 Trustee
for FCPR Acquisition, LLC, Cedar Plastics, LLC, and Cedar Trucking,
LLC, to sell substantially all of Trucking's assets to Phillip W.
Teague and Michael C. Givorns for $305,000.
A hearing on the Motion was held on April 2, 2020 at 1:00 p.m.
The Trucking Sale is on an "As-Is, Where-Is" basis but free and
clear of all claims, liens, interest and encumbrances with any
liens to attach to the Sale Proceeds.
The purchase price to be paid under the Trucking Offer less an
amount equal to 17.5% of the Sale Process to pay (a) the fees
payable to the United States Treasury, (b) then to the allowed
administrative expenses for compensation and reimbursement for the
Trustee, the Jennis Law Firm (as the counsel to the Debtors and
special counsel to the Trustee) and the counsel to the Committee of
Unsecured Creditors.
In consideration of the Carve Out, the Trustee waives any right to
surcharge with respect to any of the Sale Assets under Section 506.
A party asserting a competing claim to the Sale Proceeds or
claiming a lien, security interest, or other interest in the Sale
Proceeds, must file a claim notice with the Court on May 18, 2020,
including all supporting documentation for attachment and the basis
of perfection of such interest. Any claims to the Sale Proceeds
will be considered at a preliminary hearing on May 29, 2020, at
2:00 p.m.
On Friday of each week beginning on April 24, 2020, the Trustee
will report a summary of his activity related to the Sale Order.
The purchaser(s) of any Sale Assets as approved by the Order is
entitled to immediate and exclusive possession of the Sale Assets
wherever and however the purchaser may locate the Sale Assets.
Based on the circumstances of these cases, the Court finds it is
appropriate to establish an expedited procedure for additional
sales of property to the extent identified and located by the
Trustee or his agents. Any motion seeking approval of Additional
Sales will be considered on an expedited basis with any claims to
any sale proceeds for Additional Sales as provided in the Order.
All motions for Additional Sales may be heard on May 11, 2020 at
2:30 p.m., May 29, 2020 at 2:00 p.m., or specially set.
Effective, March 16, 2020, and continuing until further notice, the
Judges in all Divisions will conduct all preliminary and
non-evidentiary hearings by telephone. For Judge Delano, parties
should arrange a telephone appearance through Court Call
(866-582-6878).
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 retained Buss Ross, P.A., as counsel.
FCPR ACQUISITION: Trustee's $325K Sale of All Plastics' Assets OK'd
-------------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Alex Moglia, the chapter 11 Trustee
for FCPR Acquisition, LLC, Cedar Plastics, LLC, and Cedar Trucking,
LLC, to sell substantially all of Plastics' assets to Winchester
Carpets. Inc. for $325,000.
A hearing on the Motion was held on April 2, 2020 at 1:00 p.m.
The Trucking Sale is on an "As-Is, Where-Is" basis but free and
clear of all claims, liens, interest and encumbrances with any
liens to attach to the Sale Proceeds.
The purchase price to be paid under the Trucking Offer less an
amount equal to 17.5% of the Sale Process to pay (a) the fees
payable to the United States Treasury, (b) then to the allowed
administrative expenses for compensation and reimbursement for the
Trustee, the Jennis Law Firm (as the counsel to the Debtors and
special counsel to the Trustee) and the counsel to the Committee of
Unsecured Creditors.
In consideration of the Carve Out, the Trustee waives any right to
surcharge with respect to any of the Sale Assets under Section 506.
The Purchaser purchased the assets identified on the Appraisal.
The Sale Assets donot include the (1) 2019 Dell'Orco & Villani
Carpet U Puller that was the subject of the NMCT Objection. The
U-Puller is not authorized to be sold pursuant to the Order.
A party asserting a competing claim to the Sale Proceeds or
claiming a lien, security interest, or other interest in the Sale
Proceeds, must file a claim notice with the Court on May 18, 2020,
including all supporting documentation for attachment and the basis
of perfection of such interest. Any claims to the Sale Proceeds
will be considered at a preliminary hearing on May 29, 2020, at
2:00 p.m.
On Friday of each week beginning on April 24, 2020, the Trustee
will report a summary of his activity related to the Sale Order.
The purchaser(s) of any Sale Assets as approved by the Order is
entitled to immediate and exclusive possession of the Sale Assets
wherever and however the purchaser may locate the Sale Assets.
Based on the circumstances of these cases, the Court finds it is
appropriate to establish an expedited procedure for additional
sales of property to the extent identified and located by the
Trustee or his agents. Any motion seeking approval of Additional
Sales will be considered on an expedited basis with any claims to
any sale proceeds for Additional Sales as provided in the Order.
All motions for Additional Sales may be heard on May 11, 2020 at
2:30 p.m., May 29, 2020 at 2:00 p.m., or specially set.
Effective, March 16, 2020, and continuing until further notice, the
Judges in all Divisions will conduct all preliminary and
non-evidentiary hearings by telephone. For Judge Delano, parties
should arrange a telephone appearance through Court Call
(866-582-6878).
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.
FCPR ACQUISITION: Trustee's Approved $660K Sale of Assets Vacated
-----------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida vacated the preliminary order authorizing Alex
Moglia, the chapter 11 Trustee for FCPR Acquisition, LLC, Cedar
Plastics, LLC, and Cedar Trucking, LLC, to sell substantially all
of the Debtors' assets free and clear of all liens, claims and
interests as follows: (i) all of Plastics' assets to Winchester
Carpets. Inc. for $325,000; (ii) FCPR's trucks to DC Foam Recycle,
Inc. for $30,000; and (iii) all of Trucking's assets to for
$305,000.
Creditor North Mill Credit Trust sought to vacate the preliminary
order. The Court will enter separate preliminary orders approving
the sales identified in the Chapter 11 Trustee's Emergency Motion
to Sell Debtors' Assets Free and Clear of All Liens,
Claims, and Interests.
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 retained Buss Ross, P.A., as counsel.
FEMUR BUYER: Moody's Lowers CFR to Caa2 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service downgraded Femur Buyer, Inc.'s Corporate
Family Rating to Caa2 from B3 and its Probability of Default Rating
to Caa2-PD from B3-PD. Moody's also downgraded Femur's senior
secured 1st lien term loan and revolving credit facility's ratings
to Caa1 from B2. The outlook is stable.
The downgrade of Femur's ratings reflects the company's very high
leverage, ongoing operational issues, and high likelihood of
negative cash flow in the coming quarters. These existing
challenges will be exacerbated by the impact of the COVID-19
outbreak. Femur has a high concentration of revenue tied to
orthopedic implants and tools used in orthopedic procedures.
Moody's believes that orthopedic procedures will be one of the most
heavily impacted by the pandemic, due to the postponement of
elective procedures. This is likely to lead to a slowdown in demand
for Femur's contract manufacturing services.
The company's profitability was already under pressure in late 2019
due to operating issues at its Santa Ana and Oregon production
facilities and increased labor and compliance costs. While Moody's
believes that the company has largely addressed these issues, the
pace of earnings improvement will likely be slow because of
challenges posed by temporary plant closures and employee
absenteeism in the wake of coronavirus crisis. The company may also
see delayed realization of returns from the significant investments
it has made in automation and growth. The company has incurred
incremental costs for compliance enhancement after the company
received an FDA warning letter for its Detroit facility in 2019.
These incremental costs are likely to taper off in 2020.
Nevertheless, Moody's believes that a complete resolution of this
warning letter could be delayed due to the pandemic.
The stable outlook reflects Moody's expectation that the company
will have adequate near-term liquidity. The company had
approximately $68 million of cash after almost entirely drawing its
revolver. Liquidity is also supported by the company's ability to
pay-in-kind about $8 million of the annual interest expense on its
second lien term loan (unrated). However, the PIK feature expires
in early 2021, at which point all interest expense will convert to
cash. This will further strain the company's cash flow and
liquidity absent a significant improvement in operating
performance.
The following ratings were downgraded:
Issuer: Femur Buyer, Inc.
- Corporate Family Rating, to Caa2 from B3
- Probability of Default Rating, to Caa2-PD from
B3-PD
- $100 million Senior Secured 1st lien Revolving
Credit Facility expiring 2024 to Caa1(LGD3) from
B2 (LGD3)
- $485 million Senior Secured 1st lien Term Loan due
2026 to Caa1(LGD3) from B2 (LGD3)
Outlook Actions:
Issuer: Femur Buyer, Inc.
- Outlook changed to stable from negative
RATINGS RATIONALE
The Caa2 CFR reflects Femur's very high financial leverage,
moderate scale, primary focus on the orthopedic market and customer
concentration. Moody's estimates that Femur's adjusted debt/EBITDA
will exceed 10.0x in mid-to-late 2020 due to a combination of
internal and external circumstances. As a result of the high
leverage, Moody's expects negative free cash flow and weak interest
coverage. That said, Femur's medical products contract
manufacturing business is characterized by high barriers to entry
and switching costs. This is because of the significant amount of
time and investment required for its customers to obtain product
regulatory approvals, of which Femur is an integrated part.
Consequently, the company tends to have long-term relationships
with its customers, lending stability to revenue.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Its rating action partially reflects the impact of this
risk, which has grown in recent weeks. For Femur, social risks also
involve responsible production including compliance with regulatory
requirements for the safety of medical devices as well as adverse
reputational risks arising from recalls associated with
manufacturing defects. The company recently faced several execution
issues at select plants, an FDA warning letter and management
turnover, pointing to somewhat higher than average governance
risk.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if the company's liquidity and/or
operating performance deteriorates. The ratings could also be
downgraded if the likelihood of an event of default (including a
distressed exchange) increases, or recovery prospects for creditors
erodes.
Ratings could be upgraded if Femur reduces its leverage and
resolves operational issues and obtains a clean audit by the FDA.
If Moody's expects the company to generate positive free cash flow
and maintain adequate liquidity, the ratings could be upgraded.
Femur Buyer Inc. is the parent company of several companies doing
business under the "Orchid Orthopedics" brand name. Femur is a
provider of medical device outsourcing services. The company
specializes in casting, coating, forging and finishing of implants
and instruments used primarily in joint reconstruction, spine,
trauma, and sports medicine procedures. The company's pro forma
revenues are approximately $342 million.
FIRST CLASS PRINTING: Judge Prohibits Further Use of IRS Collateral
-------------------------------------------------------------------
Judge Shelley Rucker of the U.S. Bankruptcy Court for the Eastern
District of Tennessee, at the behest of the Internal Revenue
Service, prohibited First Class Printing, Inc. from using cash
collateral secured to the IRS.
About First Class Printing
First Class Printing, Inc., based in Fayetteville, TN, filed a
Chapter 11 petition (Bankr. E.D. Tenn. Case No. 19-14730) on Nov.
6, 2019. In the petition signed by Calvin Bruce Tanner, owner, the
Debtor disclosed $392,470 in assets and $1,187,031 in liabilities.
The Hon. Shelley D. Rucker is the presiding judge. Steven L.
Lefkovitz, Esq., at Lefkovitz & Lefkovitz, serves as bankruptcy
counsel to the Debtor.
FORESIGHT ENERGY: Gets Final Nod on DIP Financing, Cash Collateral
------------------------------------------------------------------
Judge Kathy Surratt-States of the U.S. Bankruptcy Court for the
Eastern District of Missouri authorized Foresight Energy LP and its
affiliates to obtain postpetition financing in an aggregate
principal amount of up to $100 million in New Money DIP Loans and
an aggregate principal amount of $75 million in Roll-Up Loans in
accordance with the terms of the Final Order.
The Debtors may only use cash collateral and the proceeds of the
DIP Facility for: (A) working capital requirements; (B) general
corporate purposes; (C) to cash collateralize existing letters of
credit; and (D) the costs and expenses, including making payments
on account of the Adequate Protection Obligations and payment of
the allowed fees and expenses of professionals retained by the
Debtors' estates of administering the cases.
The Court ordered that all of the DIP Obligations will constitute
allowed senior administrative expense claims of the DIP Agent, the
DIP Lenders, and the DIP Secured Designated Coal Contract
Counterparties. As security for the DIP Obligations, the DIP Agent
and the other DIP Parties are granted:
(a) Valid, binding, continuing, enforceable, fully-perfected
first priority senior security interest in and lien upon all
prepetition and post-petition property of the Debtors, whether
existing on the Petition Date or thereafter acquired, that, on or
as of the Petition Date is not subject to valid, perfected and
non-avoidable liens (or perfected after the Petition Date to the
extent permitted by Bankruptcy Code), whether in existence on the
Petition Date or thereafter created, acquired, or arising and
wherever located. .
(b) Valid, binding, continuing, enforceable, fully-perfected
first priority senior priming security interest in and lien upon
all prepetition and post-petition property of the Debtors, whether
in existence on the Petition Date or thereafter created, acquired,
or arising and wherever located, that is subject to any of the
Prepetition Liens securing the Prepetition Secured Obligations.
(c) Valid, binding, continuing, enforceable, fully-perfected
security interest in and lien upon all prepetition and postpetition
property of the Debtors, whether now existing or hereafter
acquired, that is subject to valid, perfected and unavoidable liens
in existence immediately prior to the Petition Date, if any, that
are senior to the liens securing the Prepetition First Lien
Obligations, or to valid and unavoidable liens in existence
immediately prior to the Petition Date, if any, that are perfected
subsequent to the Petition Date that are senior to the liens
securing the Prepetition First Lien Obligations, which security
interests and liens in favor of the DIP Agent and the other DIP
Parties are junior only to such valid, perfected and unavoidable
liens.
A copy of the Final Order is available for free at
http://bankrupt.com/misc/moeb20-41308-267.pdf
About Foresight Energy
Foresight Energy and its subsidiaries -- http://www.foresight.com/
-- are producers of thermal coal, with four mining complexes and
nearly 2.1 billion tons of proven and probably coal reserves
strategically located near multiple rail and river transportation
access points in the Illinois Basin. They also own a barge-loading
river terminal on the Ohio River. From this strategic position,
they sell their coal primarily to electric utility and industrial
companies located in the eastern half of the United States and
across the international market.
Foresight Energy LP and its affiliates sought Chapter 11 protection
(Bankr. E.D. Mo. Lead Case No. 20-41308) on March 10, 2020.
The Debtors were estimated to have $1 billion to $10 billion in
assets and liabilities.
The Hon. Kathy A. Surratt-States is the case judge.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison LLP as
legal counsel; Jefferies Group as investment banker; and FTI
Consulting, Inc. as financial advisor. Prime Clerk LLC is the
claims agent at https://cases.primeclerk.com/ForesightEnergy
Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel and
Lazard Freres & Co. LLC is acting as investment banker to the Ad
Hoc Lender Group representing lenders under the first lien credit
agreement.
Milbank LLP is acting as legal counsel and Perella Weinberg
Partners LP is acting as investment banker to the Ad Hoc Lender
Group representing crossover lenders under each of the second lien
indenture and first lien credit agreement.
GA PAVING: Has Until Aug. 31 to File Plan & Disclosure Statement
----------------------------------------------------------------
Judge Deborah L. Thorne has ordered Debtor G.A. Paving LLC to file
Plan and Disclosure Statement by Aug. 31, 2020.
June 18, 2020, at 9:30 a.m. in Courtroom 613, Everett McKinley
Dirksen United States Courthouse, 219 South Dearborn Street,
Chicago, Illinois is the hearing to consider the status of the Plan
and Disclosure Statement.
A full-text copy of the order dated April 16, 2020, is available at
https://tinyurl.com/ycqd6fky from PacerMonitor at no charge.
About G.A. Paving
GA Paving LLC, a paving contractor in Bellwood, Ill., sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ill. Case No. 19-21753) on Aug. 2, 2019. At the time of the
filing, the Debtor disclosed $3,255,141 in assets and $3,345,313 in
liabilities. Judge Deborah L. Thorne oversees the case. The
Debtor tapped the Law Offices of Bradley H. Foreman, P.C., as its
bankruptcy counsel.
GENERAL CANNABIS: CEO & Chairman Agree to Salary Reductions
-----------------------------------------------------------
In light of the uncertainty and adverse economic conditions caused
by the COVID-19 pandemic and its potential impact on the business
of General Cannabis Corp, Steve Gutterman, the Company's chief
executive officer, and Michael Feinsod, the executive chairman of
the Board of Directors of the Company, each have agreed to a
reduction of their base salaries. Mr. Gutterman agreed to a 50%
reduction in his base salary, and Mr. Feinsod agreed to a 100%
reduction in his base salary, in each case effective immediately.
Mr. Gutterman entered into an amendment dated April 29, 2020, to
his prior employment agreement with the Company dated Dec. 13,
2019, in order to reflect the salary reduction, and Mr. Feinsod
entered into an amendment dated
April 24, 2020, to his prior employment agreement with the Company
dated Dec. 8, 2017, in order to reflect the salary reduction.
About General Cannabis Corp
Headquartered in Denver, Colorado, General Cannabis Corp --
http://www.generalcann.com/-- provides products, services and
capital to the regulated cannabis industry and non-cannabis
customers. General Cannabis operates through its four wholly-owned
subsidiaries: (a) 6565 E. Evans Owner LLC, a Colorado limited
liability company formed in 2014; (b) General Cannabis Capital
Corporation, a Colorado corporation formed in 2015; (c) GC Security
LLC, a Colorado limited liability company formed in 2015; and (d)
GC Corp., a Colorado corporation, originally formed in 2013 under
ACS Corp.
General Cannabis reported a net loss of $16.97 million for the year
ended Dec. 31, 2019, following a net loss of $8.22 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$4.61 million in total assets, $5.70 million in total liabilities,
and a total stockholders' deficit of $1.09 million.
Hall & Company, in Irvine, California, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
March 8, 2019, on the consolidated financial statements for the
year ended Dec. 31, 2018, citing that the Company's cash balance of
approximately $8.0 million is not sufficient to absorb the
Company's operating losses and retire their debt of $6,849,000 due
May 1, 2019. Accordingly, there is substantial doubt about the
Company's ability to continue as a going concern.
GLOBAL PARTNERS: S&P Alters Outlook to Negative, Affirms 'B+' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on U.S. midstream logistics
and marketing partnership Global Partners L.P. to negative from
stable. The rating agency affirmed its 'B+' rating on Global
Partners as well as its 'BB' issue-level rating on the company's
senior secured debt and its 'B+' issue-level rating on the
company's senior unsecured debt.
"Our outlook revision reflects our assessment that credit metrics
at Global Partners will weaken in 2020 in response to economic
contraction. Our rating also considers that management will
continue to be prudent in managing its cash, liquidity, and debt
levels," S&P said.
The negative outlook reflects S&P's view that Global Partners'
adjusted leverage will be between 5.5x-6x in 2020. S&P expects the
partnership to maintain its view of adequate liquidity and to
continue to make its quarterly distribution.
"We could lower ratings if Global Partners underperforms our base
case in 2020 such that its EBITDA to interest coverage ratio falls
below 2.5x or if adjusted debt to EBITDA remains above 5.25x on a
sustained basis in 2021. Additionally we could take a negative
rating action if the partnership's distribution coverage falls
below 1x and the partnership does not take action to restore
financial flexibility and maintain liquidity, which could include a
failure to secure a covenant waiver if the company approaches its
financial covenant levels," S&P said.
"We could revise our outlook to stable if 2020 performance is
better than expected and the company maintains adjusted debt to
EBITDA below 5x with an EBITDA to interest coverage ratio above
3.5x," S&P said.
GREENPOINT TACTICAL: CEMI as Broker & Specimens Sale Approved
-------------------------------------------------------------
Judge G. Michael Halfenger of the U.S. Bankruptcy Court for the
Eastern District of Wisconsin authorized GP Rare Earth Trading
Account, LLC ("GPRE"), an affilliate of Greenpoint Tactical Income
Fund, LLC ("GPTIF"), to employ Collector's Edge Minerals Inc.
("CEMI") pursuant to the terms of a Consignment Agreement as its
broker to act as exclusive sales agent for the sale of the fine
minerals described in Exhibit A and compensation for services.
The Debtor is authorized to disburse the commission fees to the
Broker upon the sale of each Specimen.
CEMI will act as the exclusive broker for the sale of the
Specimens. The complete version of Exhibit A to the Consignment
Agreement will remain confidential. The Consignment Agreement and
a redacted version of Exhibit A are attached to the Order.
The Order modifies the Consignment Agreement and in case of
conflict of provisions, the provisions of the Order control while
this case remains pending. The Consignment Agreement will become
effective upon the entry of the Order.
The Consignment Agreement will be for a three year term, unless
terminated earlier pursuant to the provisions therein, except that
the Consignment Agreement may be terminated at the sole option of
Debtor in the following events:
a. if Bryan K. Lees dies,
b. if Bryan K. Lees becomes 100% disabled,
c. if CEMI is the debtor in a bankruptcy or receivership,
d. if Bryan K. Lees sells his interest in or otherwise
disassociates from CEMI,
e. if on or after the first anniversary of the effective date
of the Consignment Agreement, no sales have been made (sales to
CEMI, CEMI's insiders, the Debtors, or the Debtors' insiders will
be excluded from this determination) and $250,000 in liquidated
damages is paid by Debtor to CEMI, or f. if on or after the second
anniversary of the effective date of the Consignment Agreement, no
sales (sales to CEMI, CEMI's insiders, the Debtors, or the Debtors'
insiders will be excluded from this determination) have been made
and $500,000 in liquidated damages is paid by Debtor to CEMI.
CEMI will maintain a business insurance policy with Jewelers'
Mutual Insurance with a liability limit adequate to cover all
consigned Specimens. CEMI will insure all Specimens at CEMI's
expense. The limit of insurance coverage will not be less than the
OWNER's NET.
Prior to CEMI taking possession of the minerals, CEMI will increase
its "stock" insurance limit from its current amount of its
insurance policy with Jewelers Mutual Insurance for an additional
$37 million, and will provide a certificate of insurance,
Declaration page, or other acceptable documentation to Debtors and
counsel for the U.S. Trustee and the Committee. Additionally, CEMI
will obtain at its own expense insurance coverage for travel with
or transportation of the Specimens. A certificate of insurance,
Declaration page, or other acceptable documentation regarding this
coverage will also be provided to Debtors and counsel for the U.S.
Trustee and the Committee prior to transport. CEMI will be
responsible for any applicable deductible for any claim paid by
CEMI's insurer. CEMI will instruct the insurer(s) to pay any
claims arising related to the GPRE Specimens or the marketing
thereof directly to GPRE. CEMI will endeavor to list GPRE as an
additional insured on all insurance policies relating to the
Specimens.
CEMI will show, advertise, clean, and exhibit the Specimens through
multiple channels to try to obtain the highest value for the
Specimens.
CEMI will communicate with potential purchasers and act as an
intermediary between Debtor and the purchaser to process the
paperwork to complete the sale, and will arrange shipping/delivery
of the Specimens to the final purchaser.
Pursuant to the Consignment Agreement, each Specimen will have a
guaranteed minimum seller's proceeds, as identified in Exhibit A to
the Consignment Agreement as "Owner's Net," which will be the
minimum net proceeds paid to GPRE. The Exhibit A containing the
OWNER'S NET column was provided as a confidential document to the
counsel for the U.S. Trustee and the Committee.
CEMI will earn a 30% commission of all sales, subject to the
minimum identified as Owner's Net and notwithstanding a transaction
with a novel buyer produced by the Debtor GTIF or their insiders,
managers or insiders of the managers as set forth.
A novel buyer is as novel is defined at www.dictionary.com as of a
new and unusual kind; different from anything seen or known before;
not previously detected or reported. The Debtor, GTIF, their
managers, and insiders of the Debtor, GTIF, and their managers
agree that they constitute novel buyers produced by the Debtor.
The sale price of any Specimen may not be less than the agreed upon
Owner's Net sales price, unless there is written authorization
(including email correspondence) from the Owner, which
authorization will be conditioned upon approval by the Committee
and U.S. Trustee, or approval by the Court.
GPRE or GTIF (including their insiders, managers, and insiders of
the managers) may produce a novel potential buyer to CEMI and if
that buyer subsequently buys any Specimen(s), then CEMI's earned
commission will be as follows, with all other terms, calculations,
and mechanics being equal:
a. The first $10 million of aggregate gross sales will be 5%
if the sale is agreed within the initial 180 effective days, and
10% thereafter.
b. The next $10,000,001 through $20 million of aggregate
gross sales will be 5%.
c. The next $20,000,001 through $30 million of aggregate
gross sales will be 4%.
d. The next $30,000,001 through $40 million of aggregate
gross sales will be 3%.
e. The next $40,000,001 through $50 million of aggregate
gross sales will be 2%.
f. The next $50,000,001 or more of aggregate gross sales will
be 1%.
CEMI will be entitled to the compensation upon completion of the
sale of a Specimen and paid from the sale proceeds. CEMI is not
required to file any further fee applications. The Debtor requests
that the Court approves payment of the commission upon the sale.
However, CEMI will not earn a commission or be entitled to a
finder's fee on any sales to CEMI or any insiders of CEMI.
The sale will be free and clear of liens, claims, and encumbrances,
including, but not limited to, if the interest in the sold Specimen
is in bona fide dispute.
CEMI will deposit all sales proceeds (including all amounts to be
paid as commission) funds into a segregated bank account at Wells
Fargo Bank N.A. at the Golden, Colorado branch, which funds will be
held for the benefit of the Debtor. Upon receipt or availability of
the bank statements, they will be provided to counsel for the U.S.
Trustee and the Committee along with the corresponding cancelled
checks, wire information, or other supporting documents for
transactions contained therein.
CEMI may not commingle sale proceeds with business operating or
personal accounts. If the Debtor discovers that CEMI has commingled
estate sale proceeds with business operating or personal accounts,
the Debtor must immediately notify the U.S. Trustee and Committee.
An accounting of each culminated sale, with the gross sales
proceeds, net proceeds, and the detail of the amounts reducing the
gross proceeds, including the identity of the purchaser, will be
provided confidentially by CEMI to the U.S. Trustee on a monthly
basis by the fifth day of the month following the consummation of
each sale, along with proof of the amount paid for the Specimen.
The identities of purchasers provided to the U.S. Trustee will be
treated as Confidential Information pursuant to the Court's
Protective Order of Nov. 14, 2019.
The accounting of each sale will be provided to Debtor without
disclosing the name of the purchaser, which Debtor will forward
immediately to counsel for the Committee, and said sales will be
included in the applicable GPRE monthly operating report for the
month in which the sale funds are received by GPRE, without
disclosing the name of the purchaser.
The Debtor will actively supervise the activities of CEMI to ensure
that estate property is protected against loss, that property is
sold for reasonable prices to independent buyers, that sale
proceeds are promptly and fully remitted, that CEMI timely submits
accurate sale reports.
The Debtor will keep an inventory of the items stored with CEMI,
and periodically verify that the assets still exist and are in good
condition. The Debtor must immediately advise the U.S. Trustee and
Committee of concerns with respect to CEMI and must immediately
report situations which could result in a loss to the estate.
In the event CEMI, any insider of CEMI, any insider of the Debtor
or GTIF, or any insider of the Debtor's managers wishes to purchase
a Specimen, the Debtor must give seven days' notice and opportunity
to object to the Committee and the U.S. Trustee.
CEMI will not be permitted to sell any Specimens as a trade-in-kind
or in exchange for any other mineral.
Any dispute between CEMI and the Debtor arising under or related to
the Order or the Consignment Agreement will be litigated before
this Court so long as the Debtor's bankruptcy case remains pending.
Upon the dismissal of the Debtor's bankruptcy case, any disputes
between CEMI and the Debtor will be resolved by arbitration to be
held in Denver, Colorado as set forth in the Consignment Agreement.
A copy of the Agreement is available at
https://tinyurl.com/y8h78nff from PacerMonitor.com free of charge.
About Greenpoint Tactical Income Fund
Greenpoint Tactical Income Fund LLC is Wisconsin limited liability
company with its principal place of business in Madison, Wisconsin.
Greenpoint Tactical Income Fund is a private investment fund. GP
Rare Earth Trading Account LLC is wholly owned subsidiary of
Greenpoint Tactical Income Fund. GP Rare Earth is the entity that
holds the gems and minerals.
Greenpoint Tactical Income Fund LLC, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wis. Case No.
19-29613) on Oct. 4, 2019. The petition was signed by Hon. Michael
G. Halfenger.
At the time of filing, Greenpoint Tactical had estimated assets of
$100 million to $500 million and estimated liabilities of $10
million to $50 million. GP Rare Earth had estimated assets of $100
million to $500 million and estimated liabilities of $10 million to
$50 million.
HADDAD RESTAURANT: May Continue Using Cash Collateral Until May 30
------------------------------------------------------------------
Judge Robert Berger of the U.S. Bankruptcy Court for the District
of Kansas authorized Haddad Restaurant Group, Inc., to use cash
collateral on a temporary basis through May 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 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.
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.
HANKEY O'ROURKE: Cash Collateral Hearing Scheduled for May 14
-------------------------------------------------------------
Judge Elizabeth Katz of the U.S. Bankruptcy Court for the District
of Massachusetts authorized Hankey O'Rourke Enterprises LLC to use
cash collateral and scheduled a hearing on the company's further
use of cash collateral for May 14, 2020 at 12:00 p.m.
A copy of the Order is available for free at https://is.gd/DaQftb
from PacerMonitor.com.
About Hankey O'Rourke
Hankey O'Rourke Enterprises LLC, a privately held company in Great
Barrington, Mass., filed a voluntary petition under Chapter 11 of
the Bankruptcy Code (Bankr. D. Mass. Case No. 19-30500) on June 21,
2019. In the petition signed by Juanita O'Rourke, manager, the
Debtor was estimated to have $1 million to $10 million in both
assets and liabilities. The case is assigned to Judge Elizabeth D.
Katz. Shatz, Schwartz & Fentin, P.C., is the Debtor's counsel.
HOLLYFRONTIER CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB
------------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by HollyFrontier Corporation to BB from BB+.
Headquartered in Dallas, Texas, HollyFrontier is a petroleum
refiner and distributor of petroleum products, from gasoline to
petroleum-based lubricants and waxes.
HUSKY ENERGY: Egan-Jones Lowers Senior Unsecured Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Husky Energy Incorporated to BB- from BB.
Husky Energy Inc. is a Canadian integrated energy company,
headquartered in Calgary, Alberta.
IMAGEWARE SYSTEMS: Delays Filing of 2019 Annual Report
------------------------------------------------------
Imageware Systems, Inc. said in a Form 12b-25 filed with the
Securities and Exchange Commission that it was unable to compile
certain information required to prepare a timely filing of its
Annual Report on Form 10-K for the year ended Dec. 31, 2019.
Management requires additional time to incorporate certain
information into the Form 10-K necessary for a complete
presentation. The Company expects to file its Annual Report on
Form 10-K on or before the 15th calendar day following the
prescribed due date.
About ImageWare Systems
Headquartered in San Diego, CA, ImageWare Systems, Inc. --
http://www.iwsinc.com/-- is a developer of mobile and cloud-based
identity management solutions, providing two-factor, biometric and
multi-factor cloud-based authentication solutions for the
enterprise. The company delivers next-generation biometrics as an
interactive and scalable cloud-based solution. ImageWare brings
together cloud and mobile technology to offer two-factor,
biometric, and multi-factor authentication for smartphone users,
for the enterprise, and across industries.
ImageWare reported a net loss available to common shareholders of
$16.46 million for the year ended Dec. 31, 2018, compared to a net
loss available to common shareholders of $13.71 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$11.76 million in total assets, $8.66 million in total liabilities,
$8.71 million in series C convertible redeemable preferred stock,
and a total shareholders' deficit of $5.61 million.
Mayer Hoffman McCann P.C., in San Diego, California, the Company's
auditor since 2011, issued a "going concern" qualification in its
report dated March 27, 2019, citing that the Company has incurred
recurring operating losses and is dependent on additional financing
to fund operations. These conditions raise substantial doubt about
the Company's ability to continue as a going concern.
IMAGEWARE SYSTEMS: Lincoln Parks Commits to Buy $10.25M Shares
--------------------------------------------------------------
ImageWare Systems, Inc. entered into a purchase agreement, dated as
of April 28, 2020, and a registration rights agreement, dated as of
the Execution Date, with Lincoln Park Capital Fund, LLC, pursuant
to which Lincoln Park has committed to purchase up to $10,250,000
of the Company's common stock, $0.01 par value per share.
Under the terms and subject to the conditions of the Purchase
Agreement, including stockholder approval of an amendment to the
Company's Certificate of Incorporation to increase the number of
shares of the Company's capital stock to 350 million shares, the
Company has the right, but not the obligation, to sell to Lincoln
Park, and Lincoln Park is obligated to purchase up to $10,250,000
worth of shares of Common Stock. Such sales of Common Stock by the
Company, if any, will be subject to certain limitations, and may
occur from time to time, at the Company's sole discretion, over the
24-month period commencing on the date that a registration
statement covering the resale of shares of Common Stock that have
been and may be issued under the Purchase Agreement, which the
Company agreed to file with the Securities and Exchange Commission
pursuant to the Registration Rights Agreement, is declared
effective by the SEC and a final prospectus in connection therewith
is filed and the other conditions set forth in the Purchase
Agreement are satisfied, all of which are outside the control of
Lincoln Park. The Company has 30 business days to file the
registration statement from the Execution Date.
Under the Purchase Agreement, on any business day over the term of
the Purchase Agreement, the Company has the right, in its sole
discretion, to present Lincoln Park with a purchase notice
directing Lincoln Park to purchase up to 125,000 shares of Common
Stock per business day, which increases to up to 425,000 shares in
the event the price of the Company's Common Stock is not below
$0.40 per share (subject to adjustment for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock
split or other similar transaction as provided in the Purchase
Agreement). In each case, Lincoln Park's maximum commitment in any
single Regular Purchase may not exceed $500,000. The Purchase
Agreement provides for a purchase price per Purchase Share equal to
the lesser of:
* the lowest sale price of the Company's Common Stock on the
purchase date; and
* the average of the three lowest closing sale prices for the
Company's Common Stock during the fifteen consecutive
business days ending on the business day immediately
preceding the purchase date of such shares.
In addition, on any date on which the Company submits a Purchase
Notice to Lincoln Park, the Company also has the right, in its sole
discretion, to present Lincoln with an accelerated purchase notice
directing Lincoln Park to purchase an amount of stock equal to up
to the lesser of (i) three times the number of shares of Common
Stock purchased pursuant to such Regular Purchase; and (ii) 30% of
the aggregate shares of the Company's Common Stock traded during
all or, if certain trading volume or market price thresholds
specified in the Purchase Agreement are crossed on the applicable
Accelerated Purchase Date, the portion of the normal trading hours
on the applicable Accelerated Purchase Date prior to such time that
any one of such thresholds is crossed, provided that Lincoln Park
will not be required to buy shares of Common Stock pursuant to an
Accelerated Purchase Notice that was received by Lincoln Park on
any business day on which the last closing trade price of the
Company's Common Stock on the OTC Markets (or alternative national
exchange in accordance with the Purchase Agreement) is below $0.25
per share. The purchase price per share of Common Stock for each
such Accelerated Purchase will be equal to the lesser of:
* 95% of the volume weighted average price of the Company's
Common Stock during the applicable Accelerated Purchase
Measurement Period on the applicable Accelerated Purchase
Date; and
* the closing sale price of the Company's Common Stock on the
applicable Accelerated Purchase Date.
The Company may also direct Lincoln Park on any business day on
which an Accelerated Purchase has been completed and all of the
shares to be purchased thereunder have been properly delivered to
Lincoln Park in accordance with the Purchase Agreement, to purchase
an amount of stock equal to up to the lesser of (i) three times the
number of shares purchased pursuant to such Regular Purchase; and
(ii) 30% of the aggregate number of shares of the Company's Common
Stock traded during a certain portion of the normal trading hours
on the applicable Additional Accelerated Purchase date as
determined in accordance with the Purchase Agreement, provided that
the closing price of the Company's Common Stock on the business day
immediately preceding such business day is not below $0.25 (subject
to adjustment for any reorganization, recapitalization, non-cash
dividend, stock split, reverse stock split or other similar
transaction as provided in the Purchase Agreement). Additional
Accelerated Purchases will be equal to the lower of:
* 95% of the volume weighted average price of the Company's
Common Stock during the applicable Additional Accelerated
Purchase Measurement Period on the applicable Additional
Accelerated Purchase date; and
* the closing sale price of the Company's Common Stock on the
applicable Additional Accelerated Purchase date.
The aggregate number of shares that the Company can sell to Lincoln
Park under the Purchase Agreement may in no case exceed that number
which, together with Lincoln Park's then current holdings of Common
Stock, exceed 4.99% of the Common Stock outstanding immediately
prior to the delivery of the Purchase Notice.
Lincoln Park has no right to require the Company to sell any shares
of Common Stock to Lincoln Park, but Lincoln Park is obligated to
make purchases as the Company directs, subject to certain
conditions. There are no upper limits on the price per share that
Lincoln Park must pay for shares of Common Stock.
The Company has agreed with Lincoln Park that it will not enter
into any "variable rate" transactions with any third party for a
period defined in the Purchase Agreement.
The Company issued to Lincoln Park 2,500,000 shares of Common Stock
as commitment shares in consideration for entering into the
Purchase Agreement on the Execution Date.
The Purchase Agreement and the Registration Rights Agreement
contain customary representations, warranties, agreements and
conditions to completing future sale transactions, indemnification
rights and obligations of the parties. The Company has the right
to terminate the Purchase Agreement at any time, at no cost or
penalty, subject to the survival of certain provisions set forth in
the Purchase Agreement. During any "event of default" under the
Purchase Agreement, all of which are outside of Lincoln Park's
control, Lincoln Park does not have the right to terminate the
Purchase Agreement; however, the Company may not initiate any
regular or other purchase of shares by Lincoln Park, until such
event of default is cured. In addition, in the event of bankruptcy
proceedings by or against the Company, the Purchase Agreement will
automatically terminate.
Actual sales of shares of Common Stock to Lincoln Park under the
Purchase Agreement will depend on a variety of factors to be
determined by the Company from time to time, including, among
others, market conditions, the trading price of the Common Stock
and determinations by the Company as to the appropriate sources of
funding for the Company and its operations. Lincoln Park has no
right to require any sales by the Company but is obligated to make
purchases from the Company as it directs in accordance with the
Purchase Agreement. Lincoln Park has covenanted not to cause or
engage in any manner whatsoever, any direct or indirect short
selling or hedging of the Company's shares.
In connection with the execution of the Purchase Agreement, the
Company sold, and Lincoln Park purchased, 1.0 million shares of
Common Stock for a purchase price of $100,000.
Lincoln Park represented to the Company, among other things, that
it was an "accredited investor" (as such term is defined in Rule
501(a) of Regulation D under the Securities Act of 1933, as
amended), and the Company sold the securities in reliance upon an
exemption from registration contained in Section 4(a)(2) of the
Securities Act and Regulation D promulgated thereunder.
Triton Financing
As previously disclosed by the Company on its Current Report on
Form 8-K filed Feb. 27, 2020, the Company entered into a securities
purchase agreement with Triton Funds LP, a Delaware limited
partnership, which Agreement provides the Company the right to sell
to Triton, and Triton is obligated to purchase, up to $2.0 million
worth of shares of the Company's Common Stock under the Agreement.
On April 29, 2020, the Company closed on the offer and sale to
Triton of 6.0 million shares of Common Stock resulting in gross
proceeds to the Company of $765,000, or a per share purchase price
of $0.13 per share. The offering follows the offer and sale to
Triton of 4.0 million shares of Common Stock for $0.16 per share,
which offering closed on April 15, 2020, resulting in gross
proceeds to the Company of $640,000.
Management Financing
Two members of the Company's Board of Directors, Messrs. Neal
Goldman and James Miller, advanced $450,000 and $100,000,
respectively, to the Company. In consideration for the advances,
the Company expects to issue to Messrs. Goldman and Miller
convertible promissory notes convertible into shares of the
Company's Common Stock at $0.16 per share. In addition, Dana
Kammersgard, also a member of the Board of Directors, advanced
$360,000 to the Company, pursuant to a factoring arrangement
collateralized by certain receivables of the Company totaling
approximately $500,000. Amounts advanced by Mr. Kammersgard are
due within seven days of collection by the Company of the factored
accounts.
About ImageWare Systems
Headquartered in San Diego, CA, ImageWare Systems, Inc. --
http://www.iwsinc.com-- is a developer of mobile and cloud-based
identity management solutions, providing two-factor, biometric and
multi-factor cloud-based authentication solutions for the
enterprise. The company delivers next-generation biometrics as an
interactive and scalable cloud-based solution. ImageWare brings
together cloud and mobile technology to offer two-factor,
biometric, and multi-factor authentication for smartphone users,
for the enterprise, and across industries.
ImageWare reported a net loss available to common shareholders of
$16.46 million for the year ended Dec. 31, 2018, compared to a net
loss available to common shareholders of $13.71 million for the
year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had
$11.76 million in total assets, $8.66 million in total liabilities,
$8.71 million in series C convertible redeemable preferred stock,
and a total shareholders' deficit of $5.61 million.
Mayer Hoffman McCann P.C., in San Diego, California, the Company's
auditor since 2011, issued a "going concern" qualification in its
report dated March 27, 2019, citing that the Company has incurred
recurring operating losses and is dependent on additional financing
to fund operations. These conditions raise substantial doubt about
the Company's ability to continue as a going concern.
IMMUCOR INC: S&P Lowers ICR to 'CCC' on Increased Refinancing Risk
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on in vitro
diagnostics company Immucor Inc. to 'CCC' from 'CCC+'. The outlook
is negative.
At the same time, S&P is lowering its issue-level rating on the
senior secured credit facility to 'CCC+' from 'B-'. The recovery
rating remains '2', reflecting S&P's expectation for substantial
(70%-90%; rounded estimate: 85%) recovery in the event of default.
S&P is also lowering its issue-level rating on the senior secured
notes to 'CC' from 'CCC-'. The recovery rating remains '6',
reflecting S&P's expectation for negligible (0%-10%; rounded
estimate: 5%) recovery in the event of default.
Refinancing risk is highly elevated as Immucor approaches a large
maturity.
"The revolver and term loan B mature on March 17, 2021 and June 15,
2021, respectively, and we expect that Immucor will have difficulty
refinancing due to its mature business and the current credit
market conditions. Given Immucor's already heavy interest burden
and subsequent inability to generate sustainable cash flows, we
believe it is likely that it will seek to restructure rather than
refinance its existing capital structure during the next 12
months," S&P said.
The negative outlook on Immucor Inc. reflects S&P's expectation for
adjusted leverage to remain high above 10x and cash flow generation
to remain negative over the next 12 months. It also reflects the
rating agency's expectation for very strained liquidity and
increased refinancing risk given the COVID-19 pandemic.
"We could lower the rating if it appears likely that Immucor will
be unable to refinance its capital structure six months before the
June 2021 maturity of the senior secured credit facility. We could
also lower the rating if the COVID-19 pandemic extends longer than
expected or if the impact to EBITDA and cash flow is more than
expected, leading to fixed-charge shortfalls within the next six
months," S&P said.
"We could consider raising the rating if Immucor is able to
successfully refinance its capital structure, pushing out
maturities, and we become confident that liquidity will be
sufficient for the company's needs for more than 12 months," S&P
said.
IQSTEL INC: Has $5.5MM Net Loss for the Year Ended Dec. 31, 2019
----------------------------------------------------------------
iQSTEL Inc. filed with the U.S. Securities and Exchange Commission
its annual report on Form 10-K, disclosing a net loss (attributed
to shareholders) of $5,457,869 on $18,031,548 of revenues for the
year ended Dec. 31, 2019, compared to a net loss (attributed to
shareholders) of $2,104,161 on $13,775,361 of revenues for the year
ended in 2018.
The audit report of Boyle CPA, LLC states that the Company's
working capital deficiency and lack of an established source of
revenues raises substantial doubt about its ability to continue as
a going concern for one year from the issuance of these
consolidated financial statements.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $5,602,946, total liabilities of $11,373,361, and a total
shareholders' deficit of $5,770,415.
A copy of the Form 10-K is available at:
https://is.gd/R1PCas
iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, operates
as a technology company worldwide. The company provides
international long-distance voice services (ILD wholesale) for
telecommunications operator; and submarine fiber optic network
capacity for data carriers and Internet service providers,
including land-based and mobile services, such as 4G and 5G. It
offers its services through approximately 200 interconnections with
telecommunication carriers, PSTNs, PTTs, mobile operators, mobile
virtual network operators, long distance operators, and long
distance wholesale carriers. The company also provides
network-monitoring services through two network operation centers
located in the United States and Europe. iQSTEL Inc. is based in
Coral Gables, Florida.
J CREW GROUP: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Eighteen affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Chinos Holdings, Inc. (Lead Case) 20-32181
225 Liberty Street
New York, NY 10281
J. Crew Group, Inc. 20-32185
Chinos Intermediate Holdings A, Inc. 20-32182
Chinos Intermediate, Inc. 20-32183
Chinos Intermediate Holdings B, Inc. 20-32184
J. Crew Operating Corp. 20-32186
Grace Holmes, Inc. 20-32187
H.F.D. No. 55, Inc. 20-32188
J. Crew Inc. 20-32189
J. Crew International, Inc. 20-32190
J. Crew Virginia, Inc. 20-32180
Madewell Inc. 20-32191
J. Crew Brand Holdings, LLC 20-32192
J. Crew Brand Intermediate, LLC 20-32193
J. Crew Brand, LLC 20-32194
J. Crew Brand Corp. 20-32195
J. Crew Domestic Brand, LLC 20-32196
J. Crew International Brand, LLC 20-32197
Business Description: J.Crew Group, Inc. -- http://www.jcrew.com/
-- is an internationally recognized omni-
channel retailer of women's, men's and
children's apparel, shoes, and accessories.
As of March 2, 2020, the Company operates
182 J.Crew retail stores, 140 Madewell
stores, jcrew.com, jcrewfactory.com,
madewell.com, and 170 factory stores.
Chapter 11 Petition Date: May 4, 2020
Court: United States Bankruptcy Court
Eastern District of Virginia
Debtors'
General
Bankruptcy
Counsel: Ray C. Schrock, P.C.
Ryan Preston Dahl, Esq.
Candace M. Arthur, Esq.
Daniel Gwen, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
Email: ray.schrock@weil.com
ryan.dahl@weil.com
candace.arthur@weil.com
daniel.gwen@weil.com
Debtors'
Local
Counsel: Tyler P. Brown, Esq.
Henry P. (Toby) Long, III, Esq.
Nathan Kramer, Esq.
HUNTON ANDREWS KURTH LLP
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, Virginia 23219
Tel: (804) 788-8200
Fax: (804) 788-8218
Email: tpbrown@HuntonAK.com
hlong@HuntonAK.com
nkramer@HuntonAK.com
Debtors'
Investment
Banker: LAZARD FRERES & CO. LLC
30 Rockefeller Plaza
New York, New York 10112
Debtors'
Financial
Advisor: ALIXPARTNERS LLP
909 3rd Avenue
New York, NY 10022
Debtors'
Claims,
Noticing, &
Solicitation
Agent and
Administrative
Advisor: OMNI AGENT SOLUTIONS LLC
1120 Avenue of the Americas
4th Floor
New York, NY 10036
https://is.gd/wS9cAT
Debtors'
Real Estate
Advisor: HILCO REAL ESTATE, LLC
5 Revere Drive, Suite 320
Northbrook IL 60062
Debtors'
Tax
Consultants: KPMG LLP
345 Park Avenue
New York, NY 10154
Estimated Assets
(on a consolidated basis): $1 billion to $10 billion
Estimated Liabilities
(on a consolidated basis): $1 billion to $10 billion
The petitions were signed by Michael J. Nicholson, president and
chief operating officer.
A copy of Chinos Holdings, Inc.'s petition is available for free
at PacerMonitor.com at:
https://is.gd/AEubsM
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Deloitte Consulting Professional $22,747,294
Attn.: Nick Handrinos Services
30 Rockefeller Plaza, 41st Floor
New York, New York 10112‐0015
USA
Tel: (212) 492‐4000
Email: nhandrinos@deloitte.com
2. Cosmic Gear Limited General $14,305,544
Attn.: Sammy Hui Unsecured
25 Wang Chiu Road Claim
Kowloon Bay, KLN
Hong Kong
Tel: 34279988
Email: sammy.hui@cosmic‐gear.com
3. Sterling Apparel Ltd. General $13,683,285
Attn.: Sam Chung Unsecured
9 Sheung Hei Street Claim
San Po Kong, KLN
Hong Kong
Tel: 852 23091823
Email: sam.chung@sphk.com.hk
4. RGM Fashion Ltd. General $12,631,201
Attn.: Billy Wong Unsecured
88 Lei Muk Road Claim
Kwai Chung, NT
Hong Kong
Tel: 2421‐1212
Email: billyw@rgm‐hk.com
5. Fashion Accessories General $11,092,743
Attn.: Anoop Thatai Unsecured
Phase VI Sector 37 Claim
Gurgaon Haryana,
India
Tel: 91 124 4035046
Email: anoop@orientknits.com
6. Kyung Seung Co Ltd. General $10,250,359
Attn.: JJ Park Unsecured
408 Samseongro Gangnamgu Claim
Seoul, South Korea
Tel: 822 550 1440
Email: jjpark@kyungseung.com
7. Aquarelle Clothing Limited General $7,817,402
Attn.: Maneesh Patel Unsecured
Boundary Road Claim
Quatre Bornes, Mauritus
Tel: 230‐466‐0833
Email: mpatel@laguna‐clothing.mu
8. China Ting Garment General $7,729,955
Mfg. (Group) Unsecured
Attn.: Peter Cheung Claim
55 King Yip Street
Kwun Tong, KLN
Hong Kong
Tel: 86 571 8625 8180
Email: Peter@conceptcreator.com.hk
9. First Glory Limited General $7,511,182
Attn.: Steffi Chan Unsecured
2 Cheung Yue Street. Claim
Cheung Sha Wan, KLN
Hong Kong
Tel: 2786 1612
Email: steffic@firstglory.com
10. United Infinite Corp General $7,142,987
Taiwan Branch Unsecured
Attn.: Richard Lo Claim
Jihu Road Neihu District
Taipei City, 114
Taiwan
Tel: 886 2 8751 1768
Email: richard@kuohwa.com
11. R K Industries IV General $6,460,387
Attn.: Ajay Agarwal Unsecured
No. A 7&8 Thiru‐Vi‐Ka Indl Claim
Chennai 600032
India
Tel: 0961374/97‐98
Email: ajay@rk‐india.com
12. Saitex International Dong Nai General $5,924,440
Attn.: Sanjeev Bahl Unsecured
Amata Ind Park Long Binh Ward Claim
Bien Hoa City, 81000
Vietnam
Tel: 84 61 8877 100
Email: sanjeev@sai‐tex.com
13. Victory International Inc. General $5,890,914
Attn.: Michael Cioato Unsecured
No. 77 Shengli 12th Street Claim
Taichung, 310
China
Tel: 886 4 25317828
Email: michaelcioato@lfsourcing.com
14. Suy Co. Ltd. General $5,737,742
Attn.: Sunjian "SJ" Lee Unsecured
461 Yeoksam‐Ro Gangnam‐Ku Claim
Seoul, 135‐280
South Korea
Tel: 82 2 558 4870
Email: aydenlee@suy.co.kr
15. UPS General $5,393,857
Attn: Jason M. Owen Unsecured
1000 Semmes Ave Claim
Richmond, Virginia 23224
USA
Tel: (804) 814‐7952
Email: jowen@ups.com
16. Hing Shing Looping Manufacturing General $5,384,210
Attn.: Scarlett Cheung Unsecured
Flat B, 10/F, Wing Tai Centre Claim
12 Hing Yip Street
Kwun Tong, KLN
Hong Kong
Tel: 852 3761 6300
Email: scarlett.cheung@hingshing.com.hk
17. Hoi Meng Sourcing General $5,374,316
Attn.: Winny Pak Unsecured
No 371 Edificio Keng Ou 14 Andar D Claim
Em Macau
Macau
Tel: 853 2875 5101
Email: winny_pak@hoimeng.com
18. Manchu Times Fashion Limited General $5,352,295
Attn.: Michael Durbin Unsecured
North Blockway Skyway House 3 Claim
Sham Mong Road, Tai Kok Tsui
Kowloon SN
Hong Kong
Tel: 852 27816111
Email: MichaelDurbin@ManchuTimesFashion.com
19. Tien‐Hu Trading (Hong Kong) Ltd General
$5,271,049
Attn.: Sammy Wong Unsecured
55 Hung To Road Claim
Kwun Tong, KLN
Hong Kong
Tel: 852 2328 8065
Email: sammy.wong@tienhu.com.hk
20. Texma International Co. Ltd. General $4,995,724
Attn.: Roger Huang Unsecured
114 Nei‐Hu Claim
Taipei, Taiwan
Tel: 886‐2‐26598666
Email: roger@texma.com.tw
21. KNT Limited General $4,921,112
Attn.: Johnson Chong Unsecured
120‐124 Texaco Road Claim
Tsuen Wan 999077, NT
Hong Kong
Tel: 852 3655 9688
Email: johnson@knt.com.hk
22. Luen Thai Overseas Macao General $4,696,870
Attn.: Stephen Chin Unsecured
RMS 1001‐1005,10/F, Nanyang Plaza Claim
57 Hung To Road
Kwun Tong, Kowloon
Hong Kong
Tel: 853 2851 9106
Email: stephenchindg.dluxe‐bags.com
23. Pan Pacific Co. Ltd. General $4,422,706
Attn.: Simon Chong Unsecured
12 Digital Ro 31 Gil Claim
Guro Gu Seoul,
South Korea
Tel: 82 2 850 9437
Email: simonchong@pti‐pacific.com
24. Rio Apparel HK Ltd. General $4,356,988
Attn.: Susana Lee Unsecured
77 Mody Road, Suite 1019, Claim
10th Floor
Tsimshatsui East, KLN
Hong Kong
Tel: (917) 671‐8755
Email: susana.lee@rioapparel.com
25. Pro Sports Giao Thuy JSC General $4,039,440
Attn.: Chinthaka Ranasinghe Unsecured
4A Area Ngo Dong Town Claim
Nam Dinh Province, 10000
Vietnam
Tel: 84 903806132
Email: chinthaka@pro‐sports.com.vn
26. Deloitte Tax LLP Professional $3,977,309
Attn.: Brett Sherman Services
30 Rockefeller Plaza, 41st Floor
New York, New York 10112‐0015
USA
Tel: (212) 492‐4000
Email: bssherman@deloitte.com
27. Gaurav International General $3,719,593
Attn.: Vijay Uppal Unsecured
Plot No. 236 Udyog Vihar Claim
Gurgaon, 7
India
Tel: 91 124 4804000
Email: vijay@richagroup.com
28. D and J International Limited General $3,593,029
Attn.: Jennifer Lee Unsecured
610 Nathan Road Claim
Mongkok, KLN
Hong Kong
Tel: 852 2737 9933
Email: Jenniferlee@dandj.cn
29. Wilmington Savings Prepetition Undetermined
Fund Society, FSB Term Loan
Attn.: Gregg S. Bateman, Esq. Deficiency
500 Delaware Avenue
Wilmington, Delaware 19801
USA
Tel: (212) 574‐1436
Email: bateman@sewkis.com
- and -
Seward & Kissel LLP
Attn: Gregg S. Bateman, Esq.
One Battery Park Plaza
New York, New York 10004
USA
30. Eaton Vance Management Litigation Undetermined
c/o Brown Rudnick LLP
Attn.: Sigmund S. Wissner‐Gross, Esq.
Seven Times Square
New York, New York 10036, USA
Attn.: Sigmund S. Wissner‐Gross, Esq.
Tel: (212) 209‐4800
Email: swissner‐gross@brownrudnick.com
J.CREW GROUP: Enters Chapter 11 With $1.65B Debt-fo-Equity Deal
---------------------------------------------------------------
J.Crew Group, Inc., said May 4, 2020, it has reached an agreement
with its lenders holding approximately 71% of its Term Loan and
approximately 78% of its IPCo Notes, as well as with its financial
sponsors, under which the Company will restructure its debt and
deleverage its balance sheet, positioning brands J.Crew and
Madewell for long-term success.
Under the terms of the Transaction Support Agreement ("TSA"), the
Company's lenders will convert approximately $1.65 billion of the
Company's debt into equity.
To facilitate the restructuring contemplated by the TSA, the parent
company of J.Crew Group, Inc., Chinos Holdings, Inc., and certain
affiliates filed voluntary petitions for relief under Chapter 11 of
the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the
Eastern District of Virginia.
The Company has secured commitments for a debtor-in-possession
financing facility of $400 million and committed exit financing
provided by existing lenders Anchorage Capital Group, L.L.C., GSO
Capital Partners and Davidson Kempner Capital Management LP, among
others. Subject to Court approval, the DIP financing, combined with
the Company's projected cash flows, is expected to support its
operations during the restructuring process.
As part of the TSA, Madewell will remain part of J.Crew Group, Inc.
Libby Wadle will continue in her role as CEO of Madewell.
"This agreement with our lenders represents a critical milestone in
the ongoing process to transform our business with the goal of
driving long-term, sustainable growth for J.Crew and further
enhancing Madewell's growth momentum," said Jan Singer, Chief
Executive Officer, J.Crew Group. "Throughout this process, we will
continue to provide our customers with the exceptional merchandise
and service they expect from us, and we will continue all
day-to-day operations, albeit under these extraordinary
COVID-19-related circumstances. As we look to reopen our stores as
quickly and safely as possible, this comprehensive financial
restructuring should enable our business and brands to thrive for
years to come."
"J.Crew and Madewell are two classic American brands with deeply
loyal customers. We look forward to supporting Jan, Libby and the
management team to recognize their full potential. The significant
deleveraging contemplated by this agreement, coupled with J.Crew
Group's strategy to strengthen its robust e-commerce platform to
drive continued growth in its direct-to-consumer segment, will
position the Company for future success," said Kevin Ulrich, Chief
Executive Officer of Anchorage Capital Group.
The Company has filed a series of customary "first day" motions
with the Bankruptcy Court seeking to maintain its operations during
the restructuring process to help facilitate a smooth transition
into Chapter 11.
For additional information about J.Crew Group's restructuring,
including access to Court filings and other documents related to
the court-supervised process, please visit
www.omniagentsolutions.com/chinos, call (866) 991-8218 (U.S. &
Canada) and (818) 924-2298 (International), or email
chinosinquiries@omniagnt.com.
About Anchorage Capital
Anchorage Capital Group, L.L.C. is a New York-based registered
investment adviser founded in 2003. The firm manages private
investment funds across the credit, special situations and illiquid
investment markets of North America and Europe using an active long
and short basis, with particular focus on defaulted and leveraged
issuers.
About J.Crew Group
J.Crew Group, Inc. is an internationally recognized omni-channel
retailer of women's, men's and children's apparel, shoes and
accessories. As of May 4, 2020, the Company operates 181 J.Crew
retail stores, 140 Madewell stores, jcrew.com, jcrewfactory.com,
madewell.com and 170 factory stores.
J.Crew Group, Inc., and 17 related entities, including its parent,
Chinos Holdings, Inc., sought Chapter 11 protection on May 4, 2020
after reaching agreement with lenders on a deal that will convert
approximately $1.65 billion of the Company's debt into equity.
The lead case is In re Chinos Holdings, Inc. (Bankr. E.D. Va. Lead
Case No. 20-32181).
J.Crew was estimated to have at least $1 billion in assets and
liabilities as of the bankruptcy filing.
Weil, Gotshal & Manges LLP is serving as legal counsel, Lazard is
serving as investment banker and AlixPartners, LLP is serving as
restructuring advisor to J.Crew Group, Inc. Anchorage Capital Group
and other members of an ad hoc committee are represented by Milbank
LLP as legal counsel and PJT Partners LP as investment banker.
Omni Agent Solutions is the claims agent.
JACK IN THE BOX: Egan-Jones Lowers Senior Unsecured Ratings to B-
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 20, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Jack in the Box Incorporated to B- from B.
Jack in the Box is an American fast-food restaurant chain founded
on February 21, 1951, by Robert O. Peterson in San Diego,
California, where it is headquartered.
JDUB'S BREWING: Judge Approves Second Cash Collateral Order
-----------------------------------------------------------
Judge Michael Williamson of the U.S. Bankruptcy Court for the
Middle District of Florida inked his approval to a Second Order
authorizing JDub's Brewing Company, LLC to use cash collateral.
JDub's may use cash collateral solely to pay:
(a) amounts expressly authorized by the Court, including
payments of pre and post-petition wages and related amounts to
non-insider employees and payments to the U.S. Trustee for
quarterly fees;
(b) such additional amounts as may be expressly approved in
writing by American Momentum Bank; and
(c) such current and necessary expenses set forth in the
budget, provided that such expenses constitute ordinary
post-petition obligations and that the Debtor is able to pay the
same while maintaining a reasonably equivalent balance of accounts
receivable, cash on hand, and inventory.
JDub's is also authorized and directed to pay to the Jennis Law
Firm an additional retainer in the amount of $10,000 as
contemplated in the budget.
Pursuant to the Second Order, American Momentum Bank ("AMB") and
each creditor with a security interest in cash collateral will have
a perfected post-petition lien against cash collateral to the same
extent and with the same validity and priority as the prepetition
lien, without the need to file or execute any document as may
otherwise be required under non-bankruptcy law. AMB will also be
granted access to JDub's business records and premises for
inspection.
In addition, JDub's must maintain insurance coverage for its
property and all collateral of AMB in accordance with the
obligations of the loan and security documents with AMB.
A copy of the Second Order is available for free at
https://is.gd/3mrWfE from PacerMonitor.com.
About JDub's Brewing Company
JDub's Brewing Company, LLC is a privately held company in the
beverage manufacturing industry. The company sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
20-02926) on April 6, 2020. The Petition was signed by Jeremy
Joerger, CEO. The company is represented by Daniel Etlinger, Esq.
at DAVID JENNIS, PA D/B/A JENNIS LAW FIRM. At the time of filing,
the company had $697,542 in assets and $1,687,781 in debts.
Judge Michael G. Williamson is assigned to the case.
JIMMY LEE THRASH: Burnham Buying Pearl Properties for $400K
-----------------------------------------------------------
Jimmy Lee Thrash asks the U.S. Bankruptcy Court for the Southern
District of Mississippi to authorize the sale of two parcels of
commercial property located at 126 McKay Circle, Pearl, MS, and 226
McKay Circle, Pearl, Mississippi, comprising approximately 1.6
acres, more or less, to Joseph E. Burnham for $400,000, pursuant to
their Contract for the Sale and Purchase of Real Estate.
In the exercise of his best business judgment, the Debtor has made
the decision to liquidate the Properties in an effort to generate
cash to pay the indebtedness of creditors. The decision to
liquidate the Properties is in the best interest of all creditors
and
parties-in-interest.
The ad valorem taxes will be prorated at closing on the real
property from Jan. 1, 2020, to the date of closing.
The Debtor asks authority to execute such deed, transfer of the or
other related documents which are reasonably necessary to
consummate and close the sale of the Properties. He asks to sell
the Properties free and clear of liens, claims and security
interests with the exception of ad valorem tax claims which shall
be prorated from Jan. 1, 2020, to the date of closing, and paid at
closing, with all valid liens and claims to attach to the sales
proceeds. The first, and only, consensual lien is held by Bank of
Morton.
Upon closing, all funds from the closing, 1655 ad valorem real
estate taxes and closing costs, shall be paid directly to the Bank
of Morton who, as noted, holds a deed of trust on the property in
the amount of approximately $532,000 (less than the purchase
price).
The Debtor asks that Chandy Lee be authorized to execute the deed
of transfer and sale of the Properties to the Purchaser.
A copy of the Contract is available at https://tinyurl.com/y9jyzz3p
from PacerMonitor.com free of charge.
Jimmy Lee Thrash sought Chapter 11 protection (Bankr. S.D. Miss.
Case No. 15-02421) on Aug. 5, 2015.
JMU LIMITED: Changes Name to "Mercurity Fintech Holding Inc."
-------------------------------------------------------------
JMU Limited announced the results of its 2020 Annual General
Meeting which was held on April 30, 2020 in Beijing, where it
adopted a special resolution, effective immediately, to approve the
change of company name to "Mercurity Fintech Holding Inc."
The Company believes that the new name will better reflect the
Company's business scope since the divestment of the Company's food
supply chain business in 2019.
About JMU Limited
Headquartered in Shanghai, People's Republic of China, JMU Limited
currently operates an online platform for providing
business-to-business services to food-industry suppliers and
customers in China.
Michael T. Studer CPA P.C., in Freeport, New York, USA, the
company's auditor since 2019, issued a "going concern"
qualification in its report dated June 28, 2019, citing that the
Group experienced a net loss of approximately $25.3 million, $161.9
million and $123.2 million for the years ended Dec. 31, 2016, 2017
and 2018, respectively, and negative cash flows from operations of
approximately $5.8 million, $9.9 million and $4.3 million for the
years ended Dec. 31, 2016, 2017 and 2018, respectively. As at Dec.
31, 2018, the Group's current liabilities exceeded its current
asset by $15.7 million and there was a capital deficiency of $22.2
million. These conditions raise substantial doubt about the
Group's ability to continue as a going concern.
LA VINAS: Court Confirms Reorganization Plan
--------------------------------------------
Judge Erik P. Kimball has ordered that the Disclosure Statement
filed by L.A. Vinas, M.D., P.A. including any amendments via
interlineations filed therewith is approved on a final basis.
That the Plan of Reorganization including any amendments via
interlineations filed therewith is confirmed.
That the law firm of KELLEY, FULTON& KAPLAN, P.L., is named as
disbursing agent.
"The Plan is amended to change the Effective Date of the Plan to 60
days from the date of this Order. Any creditor or party in
interest that objects to this amendment shall file a written
objection within 14 days from the date of this Order," according to
the order entered April 13, 2020.
That the Court will conduct a post-confirmation status conference
on July 16, 2020 at 10:30 a.m. in the U.S. Bankruptcy Court, 1515
N. Flagler Drive, Courtroom B, West Palm Beach, Florida 33401.
The Debtor's counsel:
Dana Kaplan, Esquire
KELLEY, FULTON & KAPLAN, P.L.
1665 Palm Beach Lakes Blvd, Suite 1000
West Palm Beach, FL 33401
Tel. No. (561) 491-1200
Fax No. (561) 684-3773
e-mail: dana@kelleylawoffice.com
About L.A. Vinas
Based in West Palm Beach, Florida, L.A. Vinas, M.D., P.A., owns
plastic surgery, med spa & skin care centers. It offers breast
augmentation, body contouring, liposuction, breast lift, face lift,
gynecomastia, tummy tuck, facial, and butt lift services.
The Company previously sought bankruptcy protection on April 17,
2017 (Bankr. S.D. Fla. Case No. 17-14765).
L.A. Vinas, M.D., P.A., again filed a Chapter 11 petition (Bankr.
S.D. Tex. Case No. 19-17065) on May 29, 2019. At the time of the
filing, the Debtor estimated $0 to $50,000 in assets and $1 million
to $10 million in liabilities. Judge Erik P. Kimball oversees the
case. Kelley, Fulton & Kaplan, P.L., is the Debtor's legal
counsel.
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
L.A. Vinas.
LAREDO PETROLEUM: Egan-Jones Cuts Senior Unsecured Ratings to CCC
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Laredo Petroleum Incorporated to CCC from B-. EJR
also downgraded the rating on FC commercial paper issued by the
Company to C from B.
Laredo Petroleum, Inc. is a company engaged in hydrocarbon
exploration organized in Delaware and headquartered in Tulsa,
Oklahoma.
LEADING LIFE: S&P Cuts 2017A-B Revenue Bond Rating to 'B(sf)'
-------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Oklahoma
Development Finance Authority's, series 2017A-1 and 2017A-2
senior-living revenue bonds to 'B(sf)' from 'BBB+(sf)', and lowered
its long-term rating on the series 2017B senior living revenue
bonds to 'B(sf)' from 'B+(sf). Both series were issued for Leading
Life Senior Living Inc. The ratings are no longer under criteria
observation. At the same time, S&P placed these ratings on
CreditWatch with negative implications. S&P intends to resolve the
CreditWatch placement within the next three months.
The rating action and CreditWatch placement affect approximately
$19.5 million in debt outstanding, issued to fund the acquisition
of two memory care communities containing a total of 89 memory care
units. The communities are located in Oklahoma City and Edmond,
Okla.; Leading Life Senior Living Inc., is the borrower on the
transaction.
"The downgrade reflects an announcement from management that it
will request forbearance on its debt obligations for the remainder
of 2020 and potentially miss debt service payments, as well as our
opinion of the project's poor financial and operating performance,"
said S&P Global Ratings analyst Raymond Kim.
During the 90-day CreditWatch period, S&P will monitor whether
management of the project moves forward with forbearance requests
and/or does not make its next scheduled debt service payment on
July 1, 2020. S&P will monitor the project closely and make a
further rating determination within the 90-day CreditWatch as
additional information becomes available.
LIBBEY INC: Deadline for Making $12M Debt Prepayment Extended
-------------------------------------------------------------
Libbey Inc. entered into Amendment No. 2 to the Senior Secured
Credit Agreement, dated as of April 9, 2014, by and among the
Company, Libbey Glass Inc., as borrower, each of the Loan Parties
and the lenders party thereto, as amended by Amendment No. 1 to the
Credit Agreement on April 9, 2020. Amendment No. 2 provides for an
extension of the date on which the Borrower is required under the
Credit Agreement to make a prepayment of approximately $12 million
from the Borrower's Excess Cash Flow from April 30, 2020 to May 7,
2020, subject to certain conditions, including the Borrower's
provision of certain financial, operational and liquidity
information to the lenders, and the maintenance by the Loan Parties
of a minimum level of liquidity. As previously reported, Amendment
No. 1 extended the Borrower's Excess Cash Flow payment from April
9, 2020 to April 30, 2020.
Form 10-Q Filing Delayed
The SEC issued an order under Section 36 of the Securities Exchange
Act of 1934, as amended, Modifying Exemptions From the Reporting
and Proxy Delivery Requirements for Public Companies, dated March
25, 2020 (Release No. 34-88465). The Company will be relying on
this Order which provides conditional relief to registrants subject
to the reporting requirements of Section 13(a) or 15(d) of the
Exchange Act that are unable to meet a filing deadline due to
circumstances related to coronavirus disease 2019.
The Company stated, "As previously reported, we have experienced
significant disruptions to our business and operations due to
circumstances related to COVID-19. In particular, COVID-19 has
caused displacement of our staff in order to comply with "stay at
home" orders, which has limited our access to facilities and
certain technology systems that we rely upon to timely prepare our
quarterly reports. In addition, the disruptions to our business
caused by COVID-19 have resulted in a significant diversion of
resources to attend to the operational needs of the business. As a
result, we will require additional time to prepare and finalize our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020
(the "1Q 10Q") due to circumstances related to COVID-19.
Notwithstanding the foregoing, we expect to file the 1Q 10Q no
later than June 29, 2020 (which is 45 days from the 1Q 10Q's
original filing deadline of May 15, 2020)."
The Company is supplementing its Risk Factors previously disclosed
in the Company's Annual Report on Form 10-K for the fiscal year
ended Dec. 31, 2019 with the following risk factor:
"The COVID-19 pandemic has materially adversely affected, and will
continue to materially adversely affect, our business, financial
condition, liquidity and results of operations.
"The coronavirus disease 2019 ("COVID-19") pandemic has resulted in
a widespread health crisis that has adversely affected businesses,
economies and financial markets worldwide and has caused
significant volatility in U.S. and international debt and equity
markets and has adversely affected our access to and cost of
financing.
"Our business, financial condition, liquidity and operating results
have been, and will continue to be, adversely affected by the
COVID-19 pandemic. For example, the COVID-19 pandemic has caused a
widespread increase in unemployment and is expected to result in
reduced consumer spending and economic slowdown or recession.
Substantially all our revenue is generated from sales of our
products into the foodservice, hospitality and retail industries,
and our business, as well as that of our customers, is negatively
affected during times of lower consumer discretionary spending and
high unemployment.
"COVID-19, and measures taken by governments and organizations to
contain its effects, have already caused, and will likely continue
to cause, disruption to our operations, supply chain and the
business and operations of the industries we serve. Such
disruption may continue or increase in the future, and limits the
ability of our manufacturing facilities, distribution facilities,
partners, vendors and customers to operate efficiently or at all
and could result in further reduced sales and profitability.
"Our customers are vulnerable to reduced foodservice and
hospitality industry patronage as well as periods of economic
slowdown or recession and increased unemployment. Furthermore,
many restaurants, hotels and other hospitality providers have
temporarily or permanently closed and more may close in the near
future in light of the COVID-19 pandemic.
"In response to the COVID-19 pandemic, we have temporarily reduced
or suspended our manufacturing and distribution operations at
several of our facilities in North America and elsewhere to comply
with governmental orders related to the COVID-19 pandemic and to
protect the safety of our employees, and in-line with the lower
demand profile for our products. We have also borrowed additional
funds under our ABL Facility, extended certain repayment
obligations under our senior secured credit agreement, furloughed
certain employees and have implemented temporary salary reductions
for non-furloughed employees to address liquidity concerns. If the
COVID-19 pandemic and government measures intended to slow the
spread of COVID-19 continue to result in long-term continued
disruptions to our operations and the operations of the foodservice
and hospitality industries, our business, financial condition,
liquidity and results of operations will be further significantly
negatively affected and we may no longer be in compliance with the
covenants in our debt agreements, which may require us to seek
relief from the lenders to remain in compliance with such debt
agreements or pursue a debt restructuring.
"To the extent the COVID-19 pandemic adversely affects our business
and financial results, it may also have the effect of heightening
many of the other risks described in Item 1A, "Risk Factors" of our
annual report on Form 10-K for the year ended December 31, 2019,
among other risks. The full extent to which the COVID-19 pandemic
will impact our results is unknown and evolving, and will depend on
future developments, which are highly uncertain and cannot be
predicted. These include the severity, duration and spread of
COVID-19, the success of actions taken by governments and health
organizations to combat the disease and treat its effects, and the
extent to which, and the timing of, general economic and operating
conditions recover."
About Libbey Inc.
Based in Toledo, Ohio, Libbey Inc. is a glass tableware
manufacturer. Libbey operates manufacturing plants in the U.S.,
Mexico, China, Portugal, and the Netherlands. In existence since
1818, the Company supplies tabletop products to retail, foodservice
and business-to-business customers in over 100 countries. Libbey's
global brand portfolio, in addition to its namesake brand, includes
Libbey Signature, Master's Reserve, Crisa, Royal Leerdam, World
Tableware, Syracuse China, and Crisal Glass.
The Company reported a net loss of $69.02 million for the year
ended Dec. 31, 2019, compared to a net loss of $7.96 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$706.69 million in total assets, $732.47 million in total
liabilities, and a total shareholders' deficit of $25.79 million.
* * *
As reported by the TCR on April 21, 2020, S&P Global Ratings
lowered its issuer credit rating on U.S.-based Libbey Inc. to 'SD'
(selective default) from 'CCC'. "We are lowering our issuer credit
rating on Libbey to 'SD' and the senior secured rating to 'D',
because the company deferred a mandatory excess cash flow sweep
payment on its term loan B on April 9, 2020," S&P said.
LUMENTUM HOLDINGS: S&P Raises Rating on Convertible Debt to 'BB-'
-----------------------------------------------------------------
S&P Global Ratings raised its rating on Lumentum Holdings Inc.'s
convertible debt to 'BB-' from 'B+' and removed the ratings from
CreditWatch, where it placed them with negative implications on
December 18, 2019.
"Our rating on Lumentum reflects its adjusted gross leverage in the
high-3x area, the company's strong liquidity with greater than $1
billion in cash, and the solid execution on its integration of
Oclaro. With a single tranche capital structure, we expect better
recovery for the convertible debt. For a detailed analysis of the
business as well as our expectations for recovery on the
convertible debt, please see our research update on Lumentum
published Dec. 18, 2019," S&P said.
The stable outlook on Lumentum reflects S&P's expectation that the
company will continue to expand its lasers and consumer businesses,
maintain its strong cash position and generate free cash flow of
greater than $200 million annually.
"We could consider upgrading Lumentum if it continues to improve
the scale and diversity of its business while maintaining leverage
of less than 3x," S&P said.
"We could lower our rating on Lumentum if it continues to lose
business in China or faces stronger competition in its consumer
laser business such that its revenue and EBITDA margins decline and
cause its leverage to approach the 5x area. We could also lower the
rating if the company uses its large cash position to execute share
buybacks such that its balance sheet cash drops to about $500
million and it sustains leverage of more than 4x," S&P said.
MAGELLAN HEALTH: Moody's Places Ba1 CFR on Review for Downgrade
---------------------------------------------------------------
Moody's Investors Service placed the ratings of Magellan Health,
Inc. under review for downgrade. The ratings placed under review
include the Ba1 Corporate Family Rating, the Ba1-PD Probability of
Default Rating and the Ba1 (LGD 4) rating on Magellan's senior
unsecured notes. The Speculative Grade Liquidity Rating is
unchanged at SGL-1
The rating review is prompted by Magellan's decision to sell its
Magellan Complete Care business for $850 million. Despite an influx
of cash, the divestiture has certain negative credit implications
related to reduced scale and diversity. Magellan Complete Care
represented approximately 38% of the company's 2019 revenue.
Despite certain cost control challenges in Magellan Complete Care,
the Ba1 rating gave considerable weight to Magellan's broad product
offerings spanning numerous healthcare areas, ranging from
behavioral health to the comprehensive care management of complex
patients in Magellan Complete Care. In addition, Magellan Complete
Care was a core strategic focus area for Magellan in recent years.
Ratings placed under review for downgrade:
Corporate Family Rating, Ba1
Probability of Default Rating, Ba1-PD
Senior unsecured notes due 2024, Ba1 (LGD 4)
Outlook actions:
Changed to Ratings Under Review from Stable
The rating review will focus on Magellan's scale, diversity and
competitive position of its remaining business units including the
behavioral health and pharmacy benefit management businesses, as
well as its growth strategy following the transaction. The review
will also consider the use of divestiture proceeds and Magellan's
post-transaction capital structure.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Magellan's Ba1 Corporate Family Rating (under review for downgrade)
reflects its good scale and growth prospects in its two key
segments: healthcare and pharmacy. The company offers a broad mix
of services to a diverse customer group, with only one customer
exceeding 10% of revenue. The rating also reflects relatively low
financial leverage with gross debt/EBITDA likely to remain below
3.0x. Tempering these strengths, Magellan competes with much larger
health insurance competitors and pharmacy benefits management
companies. Other key risks include customer turnover and earnings
volatility. The credit profile is also constrained by the
uncertainty created by rapid industry consolidation involving
healthcare insurers and providers.
The SGL-1 Speculative Grade Liquidity reflects very good liquidity.
This results from positive free cash flow, unrestricted cash and
investments totaling over $200 million as of December 31, 2019, and
availability under a $400 million revolving credit facility
expiring in 2023.
Social and governance considerations are material to Magellan's
credit profile. Moody's regards the coronavirus outbreak as a
social risk under Moody's ESG framework, given the substantial
implications for public health and safety. 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. Magellan may temporarily experience improved
profitability because of reduced utilization of non-coronavirus
related healthcare services during social distancing. However,
significant coronavirus infection and hospital rates within
Magellan's membership could cause medical costs to substantially
rise, reducing Magellan's profitability. The full impact of the
coronavirus is highly uncertain and depends on its severity and
duration. Apart from coronavirus-related social risks, Magellan
also faces rising exposure to regulatory and legislative efforts
that in turn are driving industry consolidation. Among governance
considerations, the company's financial policies are generally
conservative.
Magellan Health, Inc. is a healthcare services company engaged in
managing the care of patients with complex healthcare needs,
pharmacy benefits and other specialty areas of healthcare.
Magellan's customers include health plans and other managed care
organizations, employers, labor unions, various military and
governmental agencies and third-party administrators. Revenues in
2019 totaled approximately $7.2 billion.
MARATHON OIL: Egan-Jones Lowers Senior Unsecured Ratings to BB
--------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Marathon Oil Corporation to BB from BB+.
Marathon Oil Corporation is an American petroleum and natural gas
exploration and production company headquartered in the Marathon
Oil Tower in Houston, Texas.
MARATHON PETROLEUM: Egan-Jones Lowers Sr. Unsecured Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Marathon Petroleum Corporation to BB+ from BBB-.
Marathon Petroleum Corporation is refining, marketing, and
transportation company headquartered in Findlay, Ohio.
MCGRAW-HILL EDUCATION: S&P Lowers ICR to 'B-'; Outlook Negative
---------------------------------------------------------------
S&P Global Ratings lowered all of its ratings on U.S.-based
education material and learning solutions provider McGraw-Hill
Education Inc. (MHE), including its issuer credit rating, by one
notch to 'B-' from 'B'.
"The downgrade reflects our expectation for sustained weakness in
MHE's credit metrics relative to those of other 'B'-rated
companies. The company's stand-alone credit metrics were weaker
than we expected in 2019. Specifically, MHE reported a 1.6% decline
in its revenue and a FOCF-to-debt ratio of 5.4% for the year. This
compares with our prior forecast for a 3% revenue increase and
FOCF-to-debt ratio of about 7% in a big adoption year," S&P said.
The drop in the company's revenue reflects a higher-than-expected
decline in its higher education segment, which continues to
experience secular challenges as the market shifts to digital
products (which benefits the company in the long run)and students
continue to seek cheaper alternatives, as well lower K-12 revenues.
S&P Global Rating's calculation of MHE's EBITDA was also
lower-than-anticipated due to restructuring costs and expenses
related to the proposed merger, which S&P expects will continue
over the next 12 months.
"We anticipate that MHE's credit metrics will remain weak and do
not expect any potential improvement from the cost efficiencies
associated with the proposed merger until at least 24 months after
the transaction closes. Integration and execution risks are high
for the merger given the size of both companies and the potential
to realize material synergies. MHE and Cengage are both highly
leveraged and each carry roughly $2.2 billion of debt. We expect
MHE's leverage to remain above 8x and its FOCF-to-debt ratio to
stay below 5% over the next 12 months, which we view as weak
compared with the ratios of other 'B' rated companies," S&P said.
The negative outlook reflects the risk that the company's cash flow
remains constrained and its refinancing risk stays elevated over
the next 12 months. This could occur if operating performance
declines accelerates because of lower enrollment trends over the
next several months due to the coronavirus pandemic amid other
cyclical and secular challenges, and MHE is unable to receive
regulatory approval for its merger with Cengage.
"We could lower our rating on MHE over the next 12 months if the
merger does not close and its operating performance deteriorates
such that its FOCF turns negative and we believe it will be
challenging for the company to refinance its capital structure.
This underperformance would include higher than anticipated
enrollment declines and pricing pressures, greater competition, and
market share losses that reduce its EBITDA margin by about 300
basis points," S&P said.
"We could revise our outlook on MHE to stable if it refinances or
extends the 2021 revolver maturity and has a viable refinancing
plan for its overall capital structure. The outlook revision would
also be contingent on the company's ability to increase its EBITDA
and maintain a FOCF-to-debt ratio in the 3%-5% range. This would
likely depend on the coronavirus pandemic having only a modest
effect on higher education enrollments and courseware purchases,"
S&P said.
MEREDITH CORP: S&P Downgrades ICR to 'B'; Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating on Meredith
Corp. to 'B' from 'B+' because it nows expect declines in
advertising will prevent the company from reducing leverage below
the rating agency's 5x downgrade threshold in its fiscal year
ending June 30, 2020, and that its leverage will likely remain
elevated through its fiscal 2021.
The downgrade and negative outlook reflects the increase in
Meredith's leverage stemming from the coronavirus pandemic and
resulting economic downturn and the uncertainty surrounding the
timing and speed of economic recovery.
"We expect Meredith's net leverage will remain above our 5x
downgrade threshold for the 'B+' rating in fiscal 2020 and fiscal
2021, and will temporarily increase above 6x during the next 12
months. Meredith's net leverage was 5.2x at the end of its second
fiscal quarter ending Dec. 31, 2019. We previously expected the
company to reduce leverage to the mid-4x area by the end of fiscal
2020 due to lower restructuring and transaction-related expenses as
well as more stable operating performance from Meredith's portfolio
of magazines and digital assets in its national media segment," S&P
said.
The negative outlook reflects the uncertainty around the extent and
duration of COVID-19's impact on the economy and Meredith's
operating performance and the risk that a prolonged economic
downturn could cause net leverage to increase above 6.5x and FOCF
to debt to decrease below 5% on a sustained basis.
"We could lower the rating if we expect Meredith's net leverage to
increase above 6.5x and FOCF to debt to decrease below 5% on a
sustained basis. This could occur if a severe recession extends
through 2021, and the company's cash preservation measures do not
sufficiently offset revenue declines," S&P said.
"We could revise the outlook to stable if economic conditions
improve in the second half of 2020, and we expect Meredith's
leverage to remain in the 5x to 6x range with FOCF to debt above
5%," S&P said.
MLN US HOLDCO: Moody's Lowers CFR to Caa1 & PDR to Caa1-PD
----------------------------------------------------------
Moody's Investors Service has downgraded MLN US Holdco LLC's
corporate family rating to Caa1 from B3, probability of default
rating to Caa1-PD from B3-PD, senior secured first lien bank credit
facility to B3 from B2 and senior secured second lien bank credit
facility to Caa3 from Caa2. The outlook remains stable.
"The downgrade reflects our expectation that Mitel's leverage will
remain high as the coronavirus impacts the small and medium
enterprises that the company primarily serves" said Jonathan Reid,
Moody's analyst.
Downgrades:
Issuer: MLN US Holdco LLC
Corporate Family Rating, Downgraded to Caa1 from B3
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD
GTD Senior Secured First Lien Term Loan, Downgraded to B3 (LGD3)
from B2 (LGD3)
GTD Senior Secured First Lien Revolving Credit Facility,
Downgraded to B3 (LGD3) from B2 (LGD3)
GTD Senior Secured Second Lien Term Loan, Downgraded to Caa3
(LGD5) from Caa2 (LGD5)
Outlook Actions:
Issuer: MLN US Holdco LLC
Outlook, Remains Stable
RATINGS RATIONALE
Mitel's Caa1 CFR is constrained by: (1) high financial leverage,
which will remain elevated above 8x over the next 12-18 months
(adjusted Debt/EBITDA was 9.1x at Q4/2019); (2) execution risks as
the company looks to shift towards a cloud-based
software-as-a-service (SaaS) model, attracting large new entrants
and away from its core SME-focused premise-based PBX telecom
business which has been experiencing declines in revenue; (3)
competition from large players and new entrants; and (4) aggressive
financial policies as a result of private equity ownership. The
company benefits from: (1) continued transformation towards a
recurring Unified Communications as a Service (UCaaS) revenue model
that will drive revenue stability, visibility and higher margins;
(2) favorable long-term market growth potential due to an aging
installed PBX base and low cloud penetration; and (3) adequate
liquidity and the potential for positive free cash flow generation
due to the low capital intensity of its software-only business.
Moody's expects Mitel's revenues will decline in 2020 as impacts
from the Coronavirus are felt by small and medium enterprises,
which are Mitel's primary focus. Moody's expects Mitel will take
actions to manage expenditures in 2020, and that adjusted EBITDA
will remain roughly flat in 2020 before improving in 2021. As a
result of slower EBITDA growth and drawing on the company's
revolver, Mitel's financial leverage will remain elevated over the
next 12-18 months (around 9x in 2020 declining towards 8.5x in
2021).
Mitel has adequate liquidity. Moody's expects Mitel's sources of
liquidity are around $50 million over the next four quarters versus
uses of about $20 million. Uses include expected negative free cash
flow of about $10 million and mandatory debt repayments of around
$10 million, and in its opinion, Mitel needs around $20 million to
operate the business. The company's $100m revolving credit facility
due November 2023 has a springing net leverage covenant, and
Moody's expects that Mitel will be in compliance with the covenant
over the next four quarters. The company has limited ability to
generate liquidity from asset sales as its assets are encumbered
and not readily divisible.
The stable outlook reflects Moody's expectations that Mitel will
maintain adequate liquidity over the next 12-18 months as it
continues its transformation towards focusing on the higher margin
UCaaS business.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Mitel's ratings could be downgraded if its liquidity position
deteriorates as a result of sustained negative free cash flow
generation or cash distributions to its PE sponsors.
The company's ratings could be upgraded if it's adjusted Debt to
EBITDA approaches 7x (9.1x at Dec 31, 2019), or if its liquidity
profile improved materially as a result of sequential positive free
cash flow generation.
Mitel is exposed to social risks relating to deteriorating global
economic outlook as a result of the widening spread of the
coronavirus outbreak. Reduced economic activities will put pressure
on Mitel's revenue, and limits revenue visibility in 2020. Mitel
faces governance risk as a result of its private equity ownership
and limited financial disclosures. The company's PE ownership
implies more aggressive financial policies which typically leads to
higher leverage and potential cash distributions to PE sponsors.
Mitel has two classes of debt: (1) B3-rated first lien secured
credit facilities -- a $100 million revolving credit facility due
November 2023 and a $1,120 million term loan due November 2025; and
(2) Caa3-rated $260 million second lien term loan due November
2026. Mitel's first lien credit facilities benefit from
first-ranking security as well as loss absorption cushion provided
by the second lien term loan, which results in their B3 rating,
which is one notch above the corporate family rating. The Caa3
rating on the second lien term loan is two notches below the CFR to
reflect their junior ranking behind the secured facilities.
The principal methodology used in these ratings was Diversified
Technology published in August 2018.
MLN or Mitel, headquartered in Ottawa, Canada, provides phone
systems, collaboration applications (voice, video calling, audio
and web conferencing, instant messaging etc.) and contact center
solutions - on-site and in the cloud - focused on small and medium
sized businesses. PE firm Searchlight Capital Partners acquired
Mitel in November 2018 in a leveraging transaction. Revenue was
$1.1 billion for 2019.
MOBILE ADDICTION: May 21 Disclosure Statement Hearing Set
---------------------------------------------------------
On Feb. 12, 2020, debtor Mobile Addiction, LLC, filed with the U.S.
Bankruptcy Court for the District of Kansas a Disclosure Statement
and a Plan.
On April 16, 2020, Judge Robert E. Nugent ordered that:
* May 21, 2020, at 2:00 p.m. is the hearing to consider the
approval of the disclosure statement to be held at US Courthouse,
401 North Market Room 150, Wichita, KS 67202.
* May 14, 2020, is fixed as the last day to file objections to
the Disclosure Statement.
A full-text copy of the order dated April 16, 2020, is available at
https://tinyurl.com/y87fngea from PacerMonitor at no charge.
The Debtor is represented by:
Nicholas R. Grillot
Hinkle Law Firm, LLC
1617 N. Waterfront Parkway, Suite 400
Wichita, KS 67206−6639
About Mobile Addiction
Mobile Addiction LLC, a wholesaler of gadgets such as i-pads,
smartphones, tablets and computers, filed a Chapter 11 petition
(Bankr. D. Kan. Case No. 19-11449) on July 31, 2019. In the
petition signed by Charles R. Thomas, owner, the Debtor was
estimated to have $10 million to $50 million in assets and $1
million to $10 million in liabilities. Judge Robert E. Nugent
oversees the case. Hinkle Law Firm LLC is the Debtor's bankruptcy
counsel.
The Office of the U.S. Trustee appointed creditors to serve on the
official committee of unsecured creditors on Nov. 26, 2019. The
committee is represented by Eron Law, P.A.
MODELL’S SPORTING: Case Gets 2nd Reprieve Under Sec. 305
----------------------------------------------------------
Marianne Wilson, writing for Chain Store Age, reports that Modell's
Sporting Goods was granted a second suspension of its bankruptcy
proceedings in light of the coronavirus pandemic.
The Debtor's counsel, Cole Schotz P.C., relied on an infrequently
used bankruptcy law provision, Sec. 305 of the Bankruptcy Code, to
temporarily freeze the Debtor's Chapter 11 case, first until April
30, 2020, and now to May 31, 2020.
In seeking a second suspension, the Debtor cited the extraordinary
circumstances that continue to be faced with the coronavirus
pandemic.
According to a report by Law.com, the second suspension was granted
by the federal judge over the objections of around 44 landlords,
slightly lesser than half of its 134 stores. During the hearing,
which was done via teleconferencing, the landlords claimed that
they experienced hardships with the loss of rent.
The Cole Schotz team was headed by Michael D. Sirota, co-chairman
of the firm's bankruptcy and corporate restructuring department,
and included members David M. Bass, Felice R. Yudkin and Rebecca
Hollander.
About Modell's Sporting Goods
Modell's Sporting Goods -- https://www.modells.com/ -- is a
family-owned and operated retailer of sporting goods, athletic
footwear, active apparel, and fan gear. Modell's Sporting Goods
operates stores throughout New York, New Jersey, Pennsylvania,
Connecticut, Massachusetts, New Hampshire, Delaware, Maryland,
Virginia and the District of Columbia.
Modell's Sporting Goods, Inc., and its affiliates sought Chapter 11
protection (Bankr. D.N.J. Lead Case No. 20-14179) on March 11,
2020.
Modell's Sporting Goods was estimated to have $500,000 to $1
million in assets and $1 million to $10 million in liabilities. The
Hon. Vincent F. Papalia is the case judge.
The Debtors tapped Cole Schotz P.C. as counsel; Berkeley Research
Group, LLC, as restructuring advisor; and Prime Clerk LLC as claims
agent.
On March 23, 2020, the Office of the United States Trustee
appointed the Official Committee of Unsecured Creditors of Modell's
Sporting Goods. The Committee hires Lowenstein Sandler LLP, as
counsel.
MONTICELLO PIZZA: Unsecureds to Get 100% Without Interest in Plan
-----------------------------------------------------------------
Debtor Monticello Pizza Co., LLC, d/b/a Little Caesars, Inc., filed
with the U.S. Bankruptcy Court for the District of Minnesota a Plan
of Reorganization and a Disclosure Statement on April 16, 2020.
Class 5 Unsecured Claims total $27,877. The Debtor's plan is to
pay the unsecured claims in full. No interest will be paid on the
unsecured claims. Annually, commencing one year from the Effective
Date, the Debtor will pay 25% of each Class 5 creditor's claim with
annual payments thereafter until the claims are paid in full.
Gary Persons and Candice Persons, the Equity Members of the Debtor,
will retain their interest in the Debtor.
Gary and Candice Persons will remain owners and employees of the
Debtor. The Debtor intends to make payments required under the
Plan from ongoing operations of the Debtor.
A full-text copy of the Disclosure Statement dated April 16, 2020,
is available at https://tinyurl.com/y89krw3q from PacerMonitor at
no charge.
About Monticello Pizza
Monticello Pizza Co., LLC, which conducts business under the name
Little Caesars, sought Chapter 11 protection (Bankr. D. Minn. Case
No. 19-43750) on Dec. 16, 2019. At the time of the filing, the
Debtor disclosed assets of between $500,001 and $1 million and
liabilities of the same range. Judge Kathleen H. Sanberg oversees
the case. Steven B. Nosek, P.A., is the Debtor's legal counsel.
MURPHY OIL: Egan-Jones Lowers Senior Unsecured Ratings to CCC
-------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Murphy Oil Corporation to CCC from B. EJR also
downgraded the rating on commercial paper issued by the Company to
C from B.
Murphy Oil Corporation is a company engaged in hydrocarbon
exploration headquartered in El Dorado, Arkansas.
NAB HOLDINGS: S&P Downgrades ICR to 'B-' on Macroeconomic Weakness
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on NAB Holdings
LLC to 'B-' from 'B'. The outlook is stable.
S&P also lowered its ratings on the company's secured term loan and
revolving credit facility to 'B-' from 'B' commensurate with the
downgrade. The recovery ratings remain '3', indicating 65% recovery
in the event of a payment default.
A sharp reduction in consumer discretionary spending from state
lockdowns and quarantines in response to the COVID-19 pandemic will
lead to steep revenue and EBITDA declines and elevated leverage.
NAB generated slightly lower net revenues year-over-year of $483
million due to the loss of a major EPX customer. The company
reported leverage of about 5.6x as of Dec. 31, 2019, while free
cash flow remained strong at $86 million.
"However, we assume social-distancing measures and low consumer
spending will cause a significant drop in sales over the next 12
months, contrary to our previous expectations of about a 3%-4%
revenue increase. We expect to see year-over-year transaction
volume to trough in the second quarter and remain soft for the rest
of the year, which will translate into a revenue decline of 20-30%
in 2020, with leverage reaching about 9x-10x by year-end. We also
believe the uncertain recovery pattern in consumer spending beyond
2020 will delay NAB's prospect of leverage reduction to below 7x
over 2021," S&P said.
The stable outlook reflects S&P's view that the company will have
ample liquidity to service its debt as its revenue and earnings
come under pressure over the next 12 months, despite the rating
agency's expectation for leverage in the 9x-10x at the end of
2020.
"We could lower the rating if delay in recovery or further
deterioration in consumer spending causes NAB to materially
underperform our base case. This scenario could lead to persistent
negative free cash flow and weakening liquidity position, at which
point, we would deem the company's capital structure
unsustainable," S&P said.
"We could raise the rating if the economy recovers quickly from
COVID-19 such that transaction volume rebounds leading to material
improvement in NAB's revenue and profitability and leverage
declines and is sustained below 7x," the rating agency said.
NATGASOLINE LLC: S&P Affirms BB- Rating on Senior Secured Debt
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' ratings on Natgasoline LLC's
senior secured debt but revised the outlook to negative from
stable. The '1' recovery rating is unchanged, indicating a very
high recovery (90%-100%) under a hypothetical payment default
scenario.
Natgasoline LLC is natural gas-based methanol production facility
in Beaumont, Texas with a capacity of up to approximately 1.75
million metric tons per year. Natgasoline has extensive access to
distribution and logistics infrastructure and a connection to the
Golden Triangle header system, which provides access to multiple
natural gas pipelines and to nearby storage. The project is a joint
venture of OCI N.V. and Consolidated Energy Ltd. (CEL)/G2X, with
each owning a 50% stake.
With the macroeconomic uncertainty caused by the COVID-19 pandemic
and recent collapse in oil prices, S&P Global Ratings revised its
view of Natgasoline's realized methanol price downward for the
balance of 2020 because prices could possibly fall to 2009 and 2016
levels--below the $240 per tonne area. A wide range of applications
drives methanol demand, with uses like formaldehyde, acetic acid,
MTBE (methyl tert-butyl ether), MTO (methanol-to-olefins) and a
number of fragmented segments of chemical intermediates that
collectively represent a portion of total demand. Formaldehyde is a
multipurpose chemical used to produce a wide range of products
across many industries like construction, automotive, and textiles.
MTBE is another end-use market for methanol in some countries for
fuel blending applications. While there are a number of outlets for
methanol due to its versatility, many industries have been affected
by the COVID-19 pandemic from shutdowns to supply chain
disruptions. These events will likely affect demand for
methanol-based intermediate and end-use products. S&P should begin
to see the impact of the pandemic on methanol prices starting this
quarter, and the recent collapse of oil prices will put additional
downward pressure on methanol prices given their positive
correlation.
The negative outlook on Natgasoline reflects the possibility that
realized methanol prices could become weaker than S&P's expectation
due to macroeconomic uncertainty, potentially resulting in a lower
DSCR than its revised forecast of 1.85x. Despite the current
macroeconomic environment, S&P expects Natgasoline's production
rate over the next 12 months to remain steady.
"We could lower our debt rating if Natgasoline's cash flow
deteriorates beyond our expectation such that DSCRs consistently
fall below 1.7x. This could stem from realized methanol prices over
the next 12 months falling below the previous lows experienced in
2009 and 2016, or lower-than-expected production volume due to
unforeseen operational events that require a plant shutdown for
extensive period," S&P said.
"We could revise the outlook back to stable over the next 12 months
if U.S. methanol prices experience a sustainable recovery, and if
Natgasoline demonstrates its ability to maintain DSCR of above 1.7x
over the next few quarters," S&P said.
NEOVASC INC: Receives Nasdaq Extension to Satisfy Market Cap Rule
-----------------------------------------------------------------
The Nasdaq Hearings Panel has granted Neovasc Inc.'s request for an
extension through Aug. 17, 2020 to evidence compliance with the $35
million minimum market value of listed securities requirement for
continued listing on The Nasdaq Capital Market. To evidence
compliance with the MVLS requirement, the Company must evidence an
MVLS of at least $35 million based upon the consolidated closing
bid price of Neovasc's common stock for a minimum of 10 consecutive
business days. The Company intends to pursue opportunities to
raise additional capital with the goal to timely evidence
compliance with the MVLS requirement.
The Company is also listed on the Toronto Stock Exchange. The
Company's non-compliance with the MVLS requirement does not affect
the Company's compliance status with the TSX.
About Neovasc Inc.
Neovasc -- http://www.neovasc.com-- is a specialty medical device
company that develops, manufactures and markets products for the
rapidly growing cardiovascular marketplace. Its products include
the Reducer, for the treatment of refractory angina, which is not
currently commercially available in the United States (2 U.S.
patients have been treated under Compassionate Use) and has been
commercially available in Europe since 2015, and Tiara, for the
transcatheter treatment of mitral valve disease, which is currently
under clinical investigation in the United States, Canada, Israel
and Europe.
Neovasc recorded a net loss of $35.13 million for the year ended
Dec. 31, 2019, compared to a net loss of 107.98 million for the
year ended Dec. 31, 2018. As at Dec. 31, 2019, the Company had
$10.10 million in total assets, $24.55 million in total
liabilities, and a total deficit of $14.44 million.
Grant Thornton LLP, in Vancouver, Canada, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated March 30, 2020 citing that the Company incurred a
comprehensive loss of $33,618,494 during the year ended Dec. 31,
2019, and as of that date, the Company's liabilities exceeded its
assets by $14,445,765. These conditions, along with other matters,
raise substantial doubt about the Company's ability to continue as
a going concern.
NESCO HOLDINGS: S&P Downgrades ICR to CCC+ on Tightening Liquidity
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit ratings on NESCO
Holdings Inc. and subsidiary Capitol Investment Merger Sub 2 LLC to
'CCC+' from 'B'. At the same time, S&P lowered its issue-level
rating on the company's subsidiary's second-lien notes to 'CCC'
from 'B' and revising the recovery rating to '5' from '4'.
"The downgrade and negative outlook reflect the increasing risk of
tightening liquidity given our expectation for slowing demand in
specialty equipment rental and sales during a recession. We believe
limited availability on NESCO's asset-based lending (ABL) facility
combined with our expectation of weak cash flow generation could
cause additional liquidity concerns over the next 12 months if
economic conditions worsen. Its ABL is heavily utilized partially
because the company pulled forward some capital spending, and we
believe it enters the macroeconomic recession with a large fleet of
equipment, which will pressure utilization rates. Although we
believe NESCO can curtail capital spending in response to weaker
market conditions, its liquidity position will be relatively tight
over the next 12 months, especially if the borrowing base shrinks,"
S&P said.
"The negative outlook reflects our expectation that we could lower
the rating if we anticipate a near-term liquidity crisis, a breach
of the company's springing financial covenant (not currently
tested), or negative free cash flow over the next 12 months," the
rating agency said.
S&P could lower its rating on NESCO over the next 12 months if it
begins to envision a specific default scenario over the next 12
months. This could occur if:
-- The company's operating performance deteriorates beyond what
S&P expects, and it believes liquidity uses could exceed sources;
-- It generates negative free operating cash flow (FOCF), and S&P
believes it many have difficulty funding fixed charges;
-- Borrowing capacity becomes more constrained, either through
higher borrowings or a lower borrowing base; or
-- A covenant breach becomes highly likely and the company cannot
amend its covenant.
S&P could raise the rating over the next 12 months if:
-- NESCO improves the borrowing availability under its ABL;
-- The economy rebounds and NESCO improves operating profits and
operates with comfortable liquidity; and
-- S&P believes the company will maintain covenant headroom of at
least 15%.
OASIS PETROLEUM: Egan-Jones Cuts Senior Unsecured Ratings to CCC-
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Oasis Petroleum Incorporated to CCC- from CCC.
Oasis Petroleum is a company engaged in hydrocarbon exploration and
hydraulic fracturing in the Williston Basin as well as in the
Delaware Basin of the Permian Basin in West Texas. It is organized
in Delaware and headquartered in Houston, Texas, with an office in
Williston, North Dakota.
OCEAN POWER: Receives $0.9 Million of Non-Dilutive Funding
----------------------------------------------------------
Ocean Power Technologies, Inc., recently received $0.9 million of
non-dilutive funding through the New Jersey Economic Development
Authority's Technology Business Tax Certificate Transfer Program.
The Program enables companies to raise funding to finance their
growth and operations and is administered by the New Jersey
Economic Development Authority (NJEDA) and the New Jersey
Department of the Treasury's Division of Taxation. Under the
Program, New Jersey-based technology and biotechnology companies
with fewer than 225 US employees may be eligible to sell net
operating losses (NOLs) and research and development tax credits to
unaffiliated corporations up to a maximum lifetime benefit of $15
million per business.
Matthew T. Shafer, chief financial officer of OPT, commented, "We
appreciate NJEDA's decision to approve our application to the
program again this year. As in prior years, we were fortunate to
work with Public Service Enterprise Group (PSEG) on the sale of our
NOLs and research and development tax credits. We appreciate the
continued support for technology companies like OPT by both the
State of New Jersey and PSEG. This Program continues to make an
important contribution to our on-going technology development
efforts."
About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey, OPT --
http://www.oceanpowertechnologies.com-- offers ocean wave power
conversion technology. Its PB3 PowerBuoy solution platform
provides clean and reliable electric power and real-time data
communications for remote offshore and subsea applications in
markets such as offshore oil and gas, defense and security, science
and research, and communications.
Ocean Power reported a net loss of $12.25 million for the 12 months
ended April 30, 2019, compared to a net loss of $10.16 million for
the 12 months ended April 30, 2018. As of Jan. 31, 2020, the
Company had $13.75 million in total assets, $3.98 million in total
liabilities, and $9.77 million in total stockholders' equity.
KPMG LLP, in Philadelphia, Pennsylvania, the Company's auditor
since 2004, issued a "going concern" qualification in its report
dated July 22, 2019, citing that as of April 30, 2019 the Company
has cash and cash equivalents of $16.7 million, and the Company has
suffered recurring losses from operations and has an accumulated
deficit. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
OECONNECTION LLC: Moody's Affirms 'B3' Corp. Family Rating
----------------------------------------------------------
Moody's Investors Service affirmed OEConnection LLC's B3 corporate
family rating and B3-PD probability of default rating. Moody's also
affirmed the B2 (LGD3) rating on the senior secured first lien
credit facilities and the Caa2 (LGD5) rating on the senior secured
second lien credit facility. The outlook is stable.
Affirmations:
Issuer: OEConnection LLC
Probability of Default Rating, Affirmed B3-PD
Corporate Family Rating, Affirmed B3
Senior Secured First Lien Bank Credit Facility, Affirmed B2 (LGD3)
Senior Secured Second Lien Bank Credit Facility, Affirmed Caa2
(LGD5)
Outlook Actions:
Issuer: OEConnection LLC
Outlook, Remains Stable
RATINGS RATIONALE
OEConnection's B3 corporate family rating reflects its small scale,
with $175 million in revenue as of December 2019, and very high
debt/EBITDA leverage above 9x (Moody's adjusted, adding capitalized
software costs as an expense and other adjustments) after the
acquisition by Genstar in 2019. OEC's revenue base is heavily
dependent on its relationship with Ford and GM, and their network
of affiliated dealerships, which creates customer concentration.
Social distancing measures, lower miles driven and the recessionary
environment caused by COVID-19 have caused a severe disruption to
OEC's cyclical client base, including auto dealerships and original
equipment manufacturers. These headwinds are partially mitigated by
OEC's subscription-based revenue model and the company's focus on
the highly profitable service and parts operations of large
franchised dealers. However, very high financial leverage and the
uncertainty around the duration of the COVID-19 shock elevate
credit risk and position OEC weakly in the B3 rating category.
Moody's expects OEC's financial strategy, a key governance
consideration under its ESG framework, will continue to pursue
aggressive financial policies and sustain very high leverage. It
anticipates OEC will utilize the $40 million delayed-draw term loan
committed capacity for M&A, which combined with growth headwinds
caused by COVID-19 will keep leverage very high over the next 12
months.
OEC benefits from a leading position in the niche original
equipment auto parts market in the US. A stable recurring base of
subscription revenues with high gross retention rates above 94% and
a sticky business model embedded in client workflows are credit
positive. Healthy SaaS EBITDA margins around 35% and low capital
expenditure requirements result in stable cash flow generation and
partially mitigate the exceptionally high level of financial
leverage. Long-standing relationships with OEM manufacturers,
affiliated dealers and auto repair shops create barriers to entry
and an attractive network for prospective new dealers seeking to
grow revenue from OE parts.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook 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. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety. A lingering
recessionary environment could exacerbate the disruption to OEC's
client base and shift consumer demand toward cheaper aftermarket
parts, which would create long-term headwinds to OEC's business
model and pressure the rating. However, the high contribution of
original parts to OEM's profitability partially mitigates this risk
and supports demand for OEC's solutions, which help OEMs compete
with aftermarket manufacturers.
The stable outlook reflects the expectation that OEC will generate
weak, but positive, free cash flow in 2020, despite a slowdown in
organic revenue growth due to COVID-19 headwinds. Debt/EBITDA will
remain very high in 2020 as deleveraging will be limited by weak
organic growth and incremental debt. Moody's expects OEC will use
the $40 million delayed draw term loan capacity for acquisitions.
EBITDA margins are expected to remain relatively stable around 35%
(Moody's adjusted) in 2020, as organic growth weakness will limit
the benefit of increasing scale and potential acquisitions pressure
profitability. After 2020, leverage will be reduced at a faster
pace, in the absence of leveraging transactions, as organic revenue
growth returns to mid-single-digit levels or above. Moody's expects
the coronavirus impact will be reflected in a weak 2Q20, with a
slow recovery starting in 3Q20, and overall, 2020 organic growth
below historical levels. The outlook and credit rating could be
pressured if social distancing measures remain in place longer than
anticipated or the recessionary environment caused by COVID-19 adds
additional pressure to OEC and its client base.
The ratings for the individual debt instruments incorporate OEC's
overall probability of default, reflected in the B3-PD PDR, and the
loss given default assessments for the individual instruments. The
first lien credit facilities, consisting of a $50 million revolver
expiring in 2024, a $422 million term loan maturing in 2026 and a
$40 million delayed draw term loan (maturing in 2021 if undrawn),
are rated B2, one notch higher than the B3 Corporate Family Rating,
with a loss given default assessment of LGD3. The B2 first lien
instrument rating reflects their relative size and senior position
ahead of the second lien term loan, that would drive a higher
recovery for first lien debt holders in the event of a default.
OEC's $185 million second lien term loan, due 2027, is rated Caa2,
two notches below the corporate family rating, with a loss given
default assessment of LGD5. The Caa2 second lien term loan rating
acknowledges its junior ranking as well as its relative size within
the capital structure.
Liquidity is adequate, with a cash balance of $18 million as of
March 2020 and its expectation for weak but positive free cash flow
to debt over the next 12-18 months. The $50 million revolver, with
a partial $10 million draw as of March 2020 (to cover seasonal
needs), is expected to be repaid over the next quarters and will
provide additional liquidity. In the past, OEC has drawn on the
revolver to finance debt-funded M&A, but has been able to fund
internal obligations with operating cash flow or cash on hand. The
company's software subscription SaaS business model with monthly
billing results in minimal working capital swings and low capex,
which also support liquidity. A $40 million delayed draw term loan
was undrawn as of March 2020, providing additional liquidity, but
Moody's expects OEC will use the incremental capacity to fund M&A.
The revolver (only) includes a 8.0x springing maximum first lien
net leverage covenant, applicable when the revolver is at least 35%
drawn. The term loans do not include any financial covenants.
Moody's expects OEC will stay in compliance with the springing
covenant if it were to draw on the revolver, given the generous
EBITDA add-backs and its current outlook. Amortization on the first
lien senior secured term loan (including the delayed draw facility,
when funded) is 1% annually.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely over the next 12 months given the
expectation for credit deterioration due to the recessionary
environment caused by the COVID-19 outbreak and the impact to OEC's
client base, which will negatively affect growth and deleveraging
trends. In the long term, the ratings could be upgraded (all metric
Moody's adjusted) if 1) Debt/EBITDA is expected to remain below
6.0x; 2) FCF/debt is sustained above 5.0%; 3) OEC, which is private
equity owned, can demonstrate a track record of conservative
financial policies; and 4) stronger than anticipated revenue
enables OEC to build meaningful scale
OEC's ratings could be downgraded if the impact of the coronavirus
outbreak lasts longer than anticipated, reducing OEC's ability to
improve its credit metrics through growth and creating further
uncertainty. The ratings could also be downgraded (all metrics
Moody's adjusted) if 1) organic revenue growth is sustained at low
single-digit percentages or below, reflecting client losses or a
slowdown in dealer penetration and cross-selling initiatives; 2)
OEC undertakes a large leveraging transaction, or Moody's expects
debt/EBITDA will be sustained above 8.0x; 3) Moody's expects
FCF/debt will be flat or negative; or 4) liquidity deteriorates.
The principal methodology used in these ratings was Software
Industry published in August 2018.
OEConnection provides cloud-based SaaS software solutions to
automotive dealers, OEMs and auto repair shops, that allow them to
efficiently identify, locate, and price original equipment parts
for the completion of repair services. As a result of the 2017
acquisition of Clifford Thames and Bluegrasscoms in 2018, OEC
expanded its presence into European markets and added electronic
parts catalogues and repair databases to its product suite. As of
the fiscal year ending December 2019, OEC reported $175 million in
revenue. In September 2019, private equity owner Genstar Capital
acquired a majority stake in the company.
OLEUM EXPLORATION: June 4 Disclosure Statement Hearing Set
----------------------------------------------------------
On April 15, 2020, Oleum Exploration, LLC's counsel filed with the
U.S. Bankruptcy Court for the Middle District of Pennsylvania a
Disclosure Statement and Plan.
On April 16, 2020, Judge Robert N. Opel, II ordered that:
* June 4, 2020, at 9:30 a.m. is the hearing to consider approval
of the disclosure statement.
* June 1, 2020, is fixed as the last day for filing and serving
written objections to the disclosure statement.
* The disclosure statement and plan shall be distributed in
accordance with Federal Rule of Bankruptcy Procedure 3017(a).
A full-text copy of the order dated April 16, 2020, is available at
https://tinyurl.com/yaxynb88 from PacerMonitor at no charge.
The Debtor is represented by:
Jeffrey D Kurtzman
Kurtzman Steady, LLC
401 South 2nd Street, Suite 200
Philadelphia, PA 19147
About Oleum Exploration
Oleum Exploration, LLC, a production and exploration company
operating in Gulf Coast Basin, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 19-00664) on Feb.
16, 2019. At the time of the filing, the Debtor disclosed
$2,164,154 in assets and $10,400,625 in liabilities. The case has
been assigned to Judge Robert N. Opel II. The Debtor tapped
Kurtzman Stead, LLC as its bankruptcy counsel, and Gray Reed &
McGraw LLP as its special counsel.
OREGON CLEAN: S&P Affirms BB- Rating on $530MM Senior Secured Debt
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' rating on Oregon Clean Energy
LLC's (OCE) $530 million senior secured term loan B (TLB) and its
$50 million senior revolving credit facility.
The '2' recovery rating on the debt is unchanged, which indicates
S&P's expectation of substantial (70%-90%; rounded estimate: 80%)
recovery in a default.
OCE is an 870-megawatt (MW) combined cycle gas-fired power plant in
Oregon, Ohio, located in the American Transmission Systems Inc.
(ATSI) zone of the PJM market. Ares EIF and I-Squared Capital own
the project through a 50-50 joint venture. Plant construction began
in November 2014, and was completed in July 2017 at a total cost of
approximately $856 million.
"Long asset life provides resilience to lower forward power prices
together with lower forward interest rates and fuel prices. Our
expectation for the amount of cash swept before the TLB's maturity
in early 2026 is now lower than at the time of our last review.
However, we believe that the project has some resilience to higher
debt service payments during the refinancing period, given the
relatively long remaining asset life compared with that of many of
its peers. In our view, this, coupled with lower-than-previously
modelled interest rates and fuels costs, means the project can
weather lower-than-previously-forecast power prices, in the absence
of further operating problems," S&P said.
Highly efficient CCGTs situate OCE at the bottom of the dispatch
stack, leading to very high capacity factors. OCE uses two Siemens
SGT6-8000H combustion turbines, which S&P views as among the most
efficient gas turbines on the market. In 2019, the plant achieved a
net heat rate of approximately 6,730 Btu/kWh, meeting expectations.
However, the project experienced some operating problems in 2019,
which S&P expects will be overcome with final maintenance work this
spring. Year to date in 2020, the project's capacity factor has
averaged about 99%, which is exceptional and exceeds the rating
agency's forecast.
Firm transportation agreements along two pipelines reduce fuel
procurement risk. OCE has a contractual agreement to receive up to
280,000 million Btu (MMBtu) of natural gas supply per day on the
Generation Pipeline Lateral, but requires approximately 150,000
MMBtu at most. Average daily needs are about 120,000 MMBtu per day,
and of this amount, 100,000 MMBtu per day is under firm gas
transport contracts along the ANR and Panhandle pipelines.
"We generally view merchant power assets with firm transportation
service arrangements favorably because they will be given the
highest priority on gas delivery through the pipeline during peak
demand. In our view, due to its firm transport contracts on the two
different pipelines, OCE has greater access to natural gas supply
compared to some of its peers. We also note that the Nexus Pipeline
has established a dedicated tap to OCE, which provides future
optionality for access to a third pipeline," S&P said.
A revenue put contract and cleared capacity mitigate market risk
through 2022, after which the plant is exposed to market risk. S&P
expects OCE's revenue put contract will contribute to cash flow
stability and reduce downside risk. The put provides a gross energy
margin floor of $50 million annually through August 2022. The
project also benefits from locked-in capacity payments through the
2021-2022 delivery year. In the absence of other risk management
strategies, the plant would subsequently be fully exposed to market
risk and might face spark spread volatility and lower-than-expected
cleared capacity prices in PJM ATSI.
The stable outlook reflects S&P's expectation that OCE will pay
down approximately $195 million of its TLB through its cash flow
sweep and mandatory amortization through 2025. S&P anticipates the
DSCR during the next 12 months will be about 1.62x, with a minimum
of 1.57x over the project's useful life.
"We could lower the rating if the project is unable to maintain a
minimum DSCR of 1.4x. This could stem from the deterioration of
energy margins, possibly caused by lower power demand or continued
low commodity prices. We could also take a negative rating action
if the project experienced unexpected operational issues that cause
a prolonged unforced outage, or if the project sweeps materially
less cash than we forecast," S&P said.
"While unlikely in the near term, we could raise the rating if we
expect the project will maintain a minimum base-case DSCR greater
than 1.85x in all years, including during the post-refinancing
period. This could stem from secular improvement in power and
capacity prices in PJM, continued procurement of inexpensive
natural gas feedstock, and implementation of risk management
strategies," S&P said.
ORIGINCLEAR INC: Holders Convert $10,500 Note Into Equity
---------------------------------------------------------
As previously reported, Originclear, Inc., entered into agreements
by and between the Company and various investors by which investors
hold convertible promissory notes convertible into shares of the
Company's common stock. On April 28, 2020, holders of convertible
promissory notes converted an aggregate principal and interest
amount of $10,500 into an aggregate of 350,000 shares of the
Company's common stock.
Conversion of Preferred Shares
As previously reported, on Dec. 17, 2019, the Company filed a
certificate of designation (the "Series M COD") of Series M
Preferred Stock. Pursuant to the Series M COD, the Company
designated 800,000 shares of preferred stock as Series M. The
Series M has a stated value of $25 per share and is convertible
into shares of the Company's common stock on the terms and
conditions set forth in the Series M COD.
Between April 15, 2020 and April 30, 2020, holders of Series M
Preferred Stock converted an aggregate of 320 Series M shares into
an aggregate of 137,052 shares of the Company's common stock.
Consultant Issuances
Between April 30, 2020 and May 1, 2020, the Company issued to
consultants an aggregate of 230,606 shares of the Company's common
stock for services.
Amendments to Articles of Incorporation
On April 27, 2020, the Company filed a certificate of designation
(the "Series O COD") of Series O Preferred Stock and a certificate
of designation of Series P Preferred Stock with the Secretary of
State of Nevada.
Pursuant to the Series O COD, the Company designated 2,000 shares
of preferred stock as Series O. The Series O will have a stated
value of $1,000 per share, and will be entitled to cumulative
dividends (i) in cash at an annual rate of 8% of the stated value,
and (ii) in shares of common stock of the Company (valued based on
the conversion price as in effect on the last trading day of the
applicable fiscal quarter) at an annual rate of 4% of the stated
value, payable quarterly within 60 days from the end of such fiscal
quarter. The Series O will not be entitled to any voting rights
except as may be required by applicable law. The Series O will be
convertible into common stock of the Company in an amount
determined by dividing 200% of the stated value of the Series O
being converted by the conversion price, provided that, the Series
O may not be converted into common stock to the extent such
conversion would result in the holder beneficially owning more than
4.99% of the Company's outstanding common stock. The conversion
price will be equal to the average closing sale price of the common
stock for the five trading days prior to the conversion date. The
Company will have the right (but no obligation) to redeem the
Series O at any time while the Series O are outstanding at a
redemption price equal to the stated value plus any accrued but
unpaid dividends.
Pursuant to the Series P COD, the Company designated 500 shares of
preferred stock as Series P. The Series P will have a stated value
of $1,000 per share, and will be entitled to receive dividends on
an as-converted basis with the Company's common stock. The Series
P will vote on an as-converted basis with the common stock,
subject, however, to the beneficial ownership limitation set forth
in the Series P COD. The Series P will be convertible into shares
of the Company's common stock, on the terms and conditions set
forth in the Series P COD, which includes certain make-good shares
for certain prior investors, and provided that, the Series P may
not be converted into common stock to the extent such conversion
would result in the holder beneficially owning more than 4.99% of
the Company's outstanding common stock.
About OriginClear
Headquartered in Los Angeles, California, OriginClear --
http://www.originclear.com/-- is a provider of water treatment
solutions and the developer of a breakthrough water cleanup
technology. Through its wholly owned subsidiaries, OriginClear
provides systems and services to treat water in a wide range of
industries, such as municipal, pharmaceutical, semiconductors,
industrial, and oil & gas.
OriginClear a net loss of $11.35 million for the year ended Dec.
31, 2018, following a net loss of $5.23 million for the year ended
Dec. 31, 2017. As of Sept. 30, 2019, the Company had $1.28 million
in total assets, $20.61 million in total liabilities, $1.68 million
in Series F 8% Convertible Preferred Stock, $530,000 in Series G 8%
Convertible Preferred Stock, $797,400 in Series I/J 8% Convertible
Preferred Stock, $1.26 million in Series K/L 8% Convertible
Preferred Stock, and a total shareholders' deficit of $23.59
million.
Liggett & Webb, P.A, in New York, NY, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 25, 2019, citing that the Company does not generate
significant revenue, incurred a net loss and has negative cash
flows from operations. This raises substantial doubt about the
Company's ability to continue as a going concern.
PERMICO MIDSTREAM: Case Summary & 18 Unsecured Creditors
--------------------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Permico Midstream Partners Holdings, LLC (Lead Case) 20-32437
9301 Southwest Freeway, Suite 308
Houston, TX 77074
Permico Midstream Partners LLC 20-32438
9301 Southwest Freeway, Suite 308
Houston, TX 77074
Business Description: The Debtors are subsidiaries of Permico
Energia LLC -- a U.S. based energy company
with offices in Houston, Texas and
Washington D.C. The Company is focused on
developing, constructing, and operating
midstream assets in Texas, as well as
domestic and international marketing of
hydrocarbons. For more information, visit
https://www.permicoenergia.com.
Chapter 11 Petition Date: May 4, 2020
Court: United States Bankruptcy Court
Southern District of Texas
Judge: Hon. Marvin Isgur
Debtors' Counsel: Joseph P. Rovira, Esq.
Timothy A. Davidson II, Esq.
Ashley L. Harper, Esq.
Catherine A. Diktaban, Esq.
HUNTON ANDREWS KURTH LLP
600 Travis Street, Suite 4200
Houston, Texas 77002
Tel: (713) 220-4200
Fax: (713) 220-4285
E-mail: taddavidson@huntonak.com
josephrovira@huntonak.com
ashleyharper@huntonak.com
cdiktaban@huntonak.com
Debtors'
Financial
Advisor: ANKURA CONSULTING GROUP, LLC
Permico Midstream Partners Holdings, LLC's
Estimated Assets: $0 to $50,000
Permico Midstream Partners Holdings, LLC's
Estimated Liabilities: $0 to $50,000
Permico Midstream Partners LLC's
Estimated Assets: $100 million to $500 million
Permico Midstream Partners LLC's
Estimated Liabilities: $100 million to $500 million
The petitions were signed by Bryan M. Gaston, chief restructuring
officer.
Copies of the petitions are available for free at PacerMonitor.com
at:
https://is.gd/I9A7U0
https://is.gd/x3XfRu
List of Debtors' 18 Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Corpac Steel Products Corp. Trade $95,782,042
20803 Biscayne Blvd, Suite 502
Miami, FL 33180
Jorge Woldenberg
Tel: (305) 918-0540
2. Edgen Murray Corporation Trade $81,657,931
10370 Richmond Ave, Suite 900
Houston, TX 77042
Dan O'Leary, Greg Baker
Tel: (713) 268-7200
3. Contract Land Staff Trade $2,251,922
2245 Texas Drive, Suite 200
Sugar Land, TX 77479
President, General Counsel
Tel: (281) 240-3370
Email: Info@contractlandstaff.com
4. Topographic Land Surveyors Trade $693,355
1400 Everman Pkwy, Ste 146
Fort Worth, TX 76140
President, General Counsel
Tel: (817) 744-7512
5. Tarsco Construction Trade $690,912
Corporation
25000 Pitkin Rd.
Spring, TX 77386
Marienna Medina
Tel: (832) 299-3200
6. Oso Developmental Partners Trade $671,586
10300 Town Park Dr. SE 1000
Houston, TX 77072
President, General Counsel and
Jason Holland
Email: jason.holland@osopartners.com
info@osopartners.com
7. Universal Pegasus International Trade $603,832
4848 Loop Central Dr., Suite 137
Houston, TX 77081
President, General Counsel
Tel: (713) 425-6000
8. Prime Trade $483,152
9. King & Spalding LLP Legal $189,452
1100 Louisiana St., #4000
Houston, TX 77002
General Counsel and
Tracie J. Renfroe
Tel: (713)751-3200
10. Whitenton Group Trade $175,868
3413 Hunter Road
San Marcos, TX 78666
President, General Counsel
Tel: (512) 353-3344
11. Wood Mackenzie Trade $175,000
5847 San Felipe
10th Floor, Suite 100
Houston, TX 77057
Anthea Pitt
Tel: (713)470-1600
12. Percheron Trade $92,968
1904 W. Grand Parkway N, Ste 200
Katy, TX 77449
Sidney Armer
Tel: (888)232-3149
13. Spearow Land LLC Trade $48,000
P.O. Box 17867
Sugar Land, TX 77496
Clint Spearow
Tel: (832) 844-1613
Email: sales@spearowland.com
14. Hillco Partners Consulting $21,000
823 Congress Ave., #900
Austin, TX 78701
President, General Counsel
Tel: (512) 480-8962
15. Dickinson & Wheelock, P.C. Professional $13,475
7660 Woodway Dr., Suite 460 Services
Houston, TX 77063
Thomas A. Dickinson
Jeffrey W. Wheelock
Tel: (713) 722-8118
Email: tdickinson@dwlegal.com
jwheelock@dwlegal.com
16. DrillingInfo/Enverus Trade $12,952
2901 Via Fortuna #200
Austin, TX 78746
Jeff Hughes
Tel: (800)282-4245
Email: drillinginfosupport@enverus.com
17. Hyde Regulatory Consulting $6,000
Consulting LLC
1561 Ruby Ranch Road
Buda, TX 78610
Richard Hyde
Tel: (512) 312-4012
18. Horizon Environmental Trade $2,495
Services, Inc.
1507 S. Interstate 35
Austin, TX 78741-2502
Russ Brownlow
Tel: (512) 328-2430
Email: info@horizing-esi.com
PRECIPIO INC: Receives Noncompliance Notice from Nasdaq
-------------------------------------------------------
Precipio, Inc. received a letter from the Listing Qualifications
Department of The Nasdaq Stock Market on April 29, 2020, notifying
the Company that for the past 30 consecutive business days, from
March 17, 2020 to April 28, 2020, the closing bid price per share
of its common stock was below the $1.00 minimum bid price
requirement for continued listing on Nasdaq pursuant to Nasdaq
Listing Rule 5550(a)(2). As a result, the Company was notified by
Nasdaq that it is not in compliance with the Minimum Bid Price
Requirement.
Nasdaq has provided the Company with 180 calendar days from the
date of notification in which to regain compliance with the Minimum
Bid Price Requirement. Additionally, due to the ongoing volatility
in the world financial markets, Nasdaq has determined to toll the
compliance period for the Minimum Bid Price Requirement through
June 30, 2020, and as a result, the Company has until Dec. 28, 2020
to regain compliance with the Minimum Bid Price Requirement. If at
any time prior to Dec. 28, 2020, the closing bid price of the
Company's common stock is at least $1.00 for a minimum of ten
consecutive business days, the Company will be considered by Nasdaq
to have regained compliance with the Minimum Bid Price
Requirement.
This notification has no immediate effect on the Company's listing
on The Nasdaq Capital Market or on the trading of the Company's
common stock.
To regain compliance with the Minimum Bid Price Requirement, the
closing bid price of the Company's common stock must meet or exceed
$1.00 per share for a minimum of ten consecutive business days
during the 180 day grace period. If the Company's common stock
does not regain compliance with the Minimum Bid Price Requirement
during this grace period, it will be eligible for an additional
grace period of 180 calendar days provided that the Company
satisfies Nasdaq's continued listing requirement for market value
of publicly held shares and all other initial listing standards for
listing on The Nasdaq Capital Market, other than the minimum bid
price requirement, and provides written notice to Nasdaq of its
intention to cure the delinquency during the second grace period.
If the Company meets these requirements, Nasdaq will inform the
Company that it has been granted an additional 180 calendar days.
However, if it appears to Staff that the Company will not be able
to cure the deficiency, or if the Company is otherwise not
eligible, Nasdaq will provide notice that its securities will be
subject to delisting.
The Company is presently evaluating various courses of action to
regain compliance with the Minimum Bid Price Requirement. However,
there can be no assurance that the Company will be able to regain
compliance.
About Precipio
Omaha, Nebraska-based Precipio, formerly known as Transgenomic,
Inc. -- http://www.precipiodx.com/-- is a cancer diagnostics
company providing diagnostic products and services to the oncology
market. The Company has developed a platform designed to eradicate
misdiagnoses by harnessing the intellect, expertise and technology
developed within academic institutions and delivering quality
diagnostic information to physicians and their patients worldwide.
Precipio operates a cancer diagnostic laboratory located in New
Haven, Connecticut and has partnered with the Yale School of
Medicine.
Precipio, Inc., reported a net loss of $13.24 million for the year
ended Dec. 31, 2019, compared to a net loss of $15.69 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$19.51 million in total assets, $6.31 million in total liabilities,
and $13.20 million in total stockholders' equity.
Marcum LLP, in Hartford, CT, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated March
27, 2020 citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
PURADYN FILTER: Liggett & Webb, P.A. Raises Going Concern Doubt
---------------------------------------------------------------
Puradyn Filter Technologies Incorporated filed with the U.S.
Securities and Exchange Commission its annual report on Form 10-K,
disclosing a net loss of $1,686,641 on $1,526,429 of net sales for
the year ended Dec. 31, 2019, compared to a net loss of $216,382 on
$4,203,556 of net sales for the year ended in 2018.
The audit report of Liggett & Webb, P.A. states that the Company
has experienced net losses since inception and has relied on
stockholder loans to fund its operations. The Company has a
working capital deficit and an accumulated deficit. These factors
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 $2,238,747, total liabilities of $12,901,621, and a total
stockholders' deficit of $10,662,874.
A copy of the Form 10-K is available at:
https://is.gd/6akpBI
Puradyn Filter Technologies Incorporated designs, manufactures,
markets, and distributes bypass oil filtration systems for use with
internal combustion engines and hydraulic equipment that use
lubricating oil worldwide. The company offers its products under
the Puradyn brand name. Its Puradyn system cleans oil by providing
a second circuit of oil filtration and treatment to continually
remove solid and liquid contaminants from the oil through a
filtration and absorption process. The company also manufactures
replacement filter elements for the Puradyn system. Its products
are marketed to various industries that include hydraulic
applications, and other users of engines or equipment that utilize
up to 50 weight oil for lubrication. The company sells its products
directly, as well as through manufacturer's representatives,
distributors, or other agents to OEMs, other distributors, and
national accounts. It serves oil and gas services, power
generation, construction and forestry, commercial marine, mining,
and transportation industries. The company was founded in 1987 and
is based in Boynton Beach, Florida.
QEP RESOURCES: Egan-Jones Lowers Senior Unsecured Ratings to CCC
----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by QEP Resources Incorporated to CCC from B-. EJR also
downgraded the rating on commercial paper issued by the Company to
C from B.
Headquartered in Denver, Colorado, QEP Resources, Inc. operates as
an independent natural gas, oil exploration, and production
company.
QUALTEK USA: S&P Lowers ICR to 'B-'; Outlook Negative
-----------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
telecommunications engineering and construction provider QualTek
USA LLC to 'B-' from 'B'. The outlook is negative.
At the same time, S&P is lowering its issue-level rating on
Qualtek's senior secured term loan to 'B-' from 'B'. The recovery
rating on this debt remains '4', indicating S&P's expectation for
average (30%-50%; rounded estimate: 45%) recovery in the event of a
payment default.
"We assume Qualtek's 2020 results will be below previous
expectations. Qualtek's projects are largely deemed essential and
able to continue despite coronavirus-related shutdowns in other
industries. That said, we do expect some impact due to the
coronavirus, which could take the form of project delays. We expect
that delays have the potential to impact the company's margins. As
a result, we forecast the company's adjusted debt to EBITDA will be
elevated in 2020," S&P said.
The negative outlook reflects the company's weaker than expected
operating performance in 2019 and potential risks to S&P's forecast
if the company encounters any unexpected project delays, working
capital outflows, or execution issues with current projects. S&P
expects the company's debt to EBITDA will be about 8x in 2020.
"We could lower our rating on QualTek over the next 12 months if
the company's results are worse than we anticipate with little
expectation for improvement, leading for us to conclude that
leverage has reached unsustainable levels. We could also lower the
rating if the company's liquidity is strained. This could occur if,
for example, coronavirus-related impacts or project delays result
in weaker earnings or working capital outflows," S&P said.
"We could revise the outlook to stable over the next 12 months if
Qualtek's leverage approaches 6.5x and FOCF to debt is in the
low-single-digit percent area on a sustained basis. This could be
caused by solid execution on projects and accompanying strength in
the company's telecommunications end markets," S&P said.
RANGE RESOURCES: Egan-Jones Cuts Senior Unsecured Ratings to CCC-
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Range Resources Corporation to CCC- from CCC.
Range Resources Corporation is a petroleum and natural gas
exploration and production company organized in Delaware and
headquartered in Fort Worth, Texas.
RAVN AIR: Files Plan to Liquidate Assets
----------------------------------------
Casey Grove, reporting for Alaska Public Media, reports that
regional airline company RavnAir has filed in bankruptcy court a
plan to sell all of its assets to satisfy claims.
According to APM, the liquidation plan, which is still subject to
approval by the court, signals that Ravn, once Alaska's largest
rural airline, is ready to call it quits.
APM relates that Ravn's proposed plan provides that its planes and
other assets would go into what's called a "liquidation trust"
overseen by a court-appointed trustee. That trustee and their
representatives would be responsible for selling off the assets and
figuring out how the proceeds would ultimately be paid to the
various entities Ravn owes money.
The airline stopped all air travel and grounded its fleet in
April.
About Ravn Air Group
Ravn Air Group, Inc. -- https://www.flyravn.com/ -- was formed
through the combination of five Alaskan air transportation
businesses in 2009, creating the largest regional air carrier and
network in the state. Ravn owns and, until the COVID-19-related
disruptions, operated 72 aircraft at 21 hub airports and 73
facilities, serving 115 destinations in Alaska with up to 400 daily
flights. Until the COVID-19-related disruptions, Ravn Air Group
and its affiliates had over 1,300 employees (non-union), and it
carried over 740,000 passengers on an annual basis.
Ravn Air Group provides air transportation and logistics services
to the passenger, mail, charter, and freight markets in Alaska,
pursuant to U.S. Department of Transportation approval as three
separate certificated air carriers. Two of the carriers (RavnAir
ALASKA and PenAir) operate under Federal Aviation Administration
Part 121 certificates and the other (RavnAir CONNECT) operates
under an FAA Part 135 certificate. In addition to carrying
passengers, many of whom fly on Medicaid-subsidized tickets, other
key customers include companies in the oil and gas industry, the
seafood industry, the mining industry, and the travel and tourism
industries.
Ravn Air Group and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-10755)
on April 5, 2020. At the time of the filing, Debtors was estimated
to have assets of between and $100 million to $500 million and
liabilities of the same range.
Judge Brendan Linehan Shannon oversees the cases.
Debtors tapped Keller Benvenutti Kim LLP as bankruptcy counsel;
Blank Rome LLP as special corporate and local bankruptcy counsel;
Conway Mackenzie, LLC as financial advisor; and Stretto as claims
and noticing agent.
REJUVI LABORATORY: Judgment Creditor Proposes 100% Plan
-------------------------------------------------------
Judgment creditor Maria Corso filed a competing Combined Chapter 11
Plan of Reorganization and Disclosure Statement for debtor Rejuvi
Laboratory, Inc. dated April 16, 2020.
There are no secured claims. General unsecured creditors will
recover 100% of their allowed claims, and taxes and other priority
claims would be paid in full.
Class 2(a) creditors Ashley Warwick and Summer Olson shall receive
a total of $30,000 in full satisfaction of their claim. In return
for the payment, the Class 2(a) creditors will execute a full
release of Debtor, its agents, representatives, employees,
successors, any potentially liable other parties and the parties’
insurers, from any of the allegations and claims in the District
Court Litigation and the claims filed by the Class 2(a) claimants.
Class 2(b) consists of the personal injury claim of Maria Corso
estimated to $1.45 million. The claim is based upon a default
judgment entered by the District Court of South Australia (the
trial court located in the Australian state of South Australia).
Once the amount of Corso's claim is determined by a court of
competent jurisdiction and that determination is final for all
purposes, Rejuvi will pay the claim in full pursuant to the
following schedule: $400,000 within five business days of the claim
being allowed and any such ruling becoming final; with the balance
to be paid in full in equal quarterly installments over a five-year
period which commences upon payment of the $400,000, interest to
accrue on Corso's claim at 6 percent. Corso's claim will be
secured by a perfected senior first deed of trust on the Debtor's
real property located at 360 Swift, Units 37 and 38, South San
Francisco, CA 94108 (the "Real Property"). The deed of trust shall
contain customary terms and protections.
Holders of Class 2(c) General Unsecured Claims, including Wei
"Wade" Cheng, will receive payment of their claims in full on the
Effective Date with postpetition interest accruing on the claim
calculated at the federal interest rate of 2.58% pursuant to 28
U.S.C. Sec. 1961(a) in effect as of September 20, 2018.
A full-text copy of the Creditor's Combined Plan and Disclosure
Statement dated April 16, 2020, is available at
https://tinyurl.com/yag4uvdl from PacerMonitor at no charge.
James E. Till of LimNexus LLP represents the Judgment Creditor:
About Rejuvi Laboratory
Founded in 1988 by Dr. Wade Cheng, Rejuvi Laboratory, Inc. --
http://www.rejuvilab.com/-- is an integrated cosmetic laboratory
with ongoing research, development and production capability.
Rejuvi Laboratory sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 18-31069) on Sept. 27,
2018. In the petition signed by Wei Cheng, president, the Debtor
disclosed $2,870,211 in assets and $1,357,213 in liabilities.
Judge Dennis Montali presides over the case.
Attorneys for the Debtor:
Stephen D. Finestone
Jennifer C. Hayes
FINESTONE HAYES LLP
456 Montgomery Street, 20th Floor
San Francisco, California 94104
Tel: (415) 421-2624
Fax: (415) 398-2820
E-mail: sfinestone@fhlawllp.com
RENAISSANCE HEALTH: Has Until May 8 to File Plan & Disclosures
--------------------------------------------------------------
On April 7, 2020, at 1:30 p.m., the U.S. Bankruptcy Court for the
Southern District of Florida, West Palm Beach Division, held a
hearing upon the motion of debtor Renaissance Health Publishing,
LLC, d/b/a Renown Health Products to extend deadline to File
Amended Plan and Amended Disclosure Statement.
On April 16, 2020, Judge Mindy A. Mora granted the Motion, and
ruled that the Debtor's deadline to file an amended Plan and
amended Disclosure Statement is extended to May 8, 2020.
A copy of the order dated April 16, 2020, is available at
https://tinyurl.com/ybhk3vjo from PacerMonitor at no charge.
The Debtor is represented by:
Wernick Law PLLC
2255 Glades Road, Suite 324A
Boca Raton, FL 33431
Tel: (561)961-0922
Fax: (561)431-2474
About Renaissance Health Publishing
Renaissance Health Publishing, LLC, doing business as Renown Health
Products, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla.
Case No. 19-13729) on March 22, 2019, disclosing under $1 million
in both assets and liabilities. The Debtor tapped Aaron A.
Wernick, Esq., at Furr Cohen, P.A., as bankruptcy counsel, and
Schneider Rothman IP Law Group, as special counsel.
RENTPATH LLC: S&P Rates $74MM First-Lien DIP Term Loan 'B'
----------------------------------------------------------
S&P Global Ratings assigned its point-in-time 'B' issue-level
rating to RentPath LLC's $74 million new money first-lien,
debtor-in-possession (DIP) term loan.
S&P's 'B' issue-level rating on RentPath's DIP term loan,
specifically the $74 million new money facility, reflects its view
of the credit risk borne by the DIP lenders. This includes S&P's
debtor credit profile (DCP) assessment, the prospects for full
repayment through the consummation of a sale to a third party or,
alternatively, through the company's reorganization and emergence
from Chapter 11 following a sale to its prepetition first-lien
lenders (via S&P's capacity for repayment at emergence [CRE]
assessment), and the potential for full repayment in a liquidation
scenario (via S&P's additional protection in a liquidation scenario
[APLS] assessment) as follows:
-- S&P's DCP assessment of 'b-' reflects the combination of its
vulnerable assessment of RentPath's business risk profile and its
highly leveraged assessment of its financial risk profile during
bankruptcy, as well as a slowdown in the apartment rentals market
likely due to the COVID-19 pandemic, which could hinder apartment
managers' abilities to fill vacant apartments, though it would
reduce performance marketing costs somewhat.
-- S&P's CRE assessment of more than sufficient coverage of the
DIP debt in an emergence scenario indicates coverage of over 250%.
Based on this, S&P raises the issue level rating by two notches to
'b+'. Although the DIP debt will be rolled over into exit financing
in the scenario in which the company is sold to the company's
prepetition first-lien lenders, S&P assessed the repayment
prospects for the CRE assessment as if the DIP facilities were
required to be repaid in full in cash at emergence.
-- S&P's APLS assessment indicates insufficient coverage of the
DIP term loans in a liquidation scenario.
-- S&P lowers the issue level rating by one notch as it will be
rolled over into the exit financing in the scenario in which the
company is sold to the company's prepetition first-lien lenders,
behind a potential super-priority revolving credit facility.
REVLON CONSUMER: Secures $65M Incremental Revolving Commitments
---------------------------------------------------------------
Revlon Consumer Products Corporation, the direct wholly-owned
operating subsidiary of Revlon, Inc., entered into a Joinder
Agreement, with Revlon, certain of their subsidiaries and certain
existing lenders under Products Corporation's Term Credit Agreement
dated as of Sept. 7, 2016 among Products Corporation, as borrower,
Revlon, the lenders from time to time party thereto and Citibank,
N.A., as administrative agent and collateral agent. The Joinder
Agreement establishes a $65 million incremental revolving credit
facility under the Credit Agreement. Products Corporation will use
the net proceeds of borrowings under the Incremental Facility for
working capital purposes.
Pursuant to the Joinder Agreement, the Incremental Lenders made $65
million of revolving commitments available to Products Corporation
on April 30, 2020 (the Effective Date). On that date, Products
Corporation borrowed $63.5 million of revolving loans under the
Incremental Facility. The commitments in respect of the
Incremental Facility terminate on Sept. 7, 2021, subject to a
springing maturity 91 days prior to the maturity date of Products
Corporations 5.75% Senior Notes due 2021 if, on such date, any of
the 5.75% Senior Notes remain outstanding and certain liquidity
requirements are not satisfied.
Outstanding amounts under the Incremental Facility will bear
interest at a rate of (x) LIBOR plus 16% or (y) an Alternate Base
Rate plus 15%, at Products Corporation's option.
Products Corporation will pay customary fees to the Incremental
Lenders in connection with the Incremental Facility, including
upfront fees and commitment fees.
The effectiveness of the Incremental Facility was subject to
customary conditions precedent, including customary certificates,
legal opinions, representations and warranties and absence of an
Event of Default under the Credit Agreement.
Except as to pricing, maturity and differences due to its revolving
nature, the terms of the Incremental Facility are otherwise
substantially consistent with the existing term loans under the
Credit Agreement.
Amendment and Restatement of Committed Debt Financing
On April 27, 2020, Products Corporation entered into an amendment
and restatement to the binding commitment letter, dated as of April
14, 2020, with certain financial institutions that are lenders
under the Credit Agreement. Pursuant to the Original Commitment
Letter and subject to the terms and conditions set forth therein,
the Commitment Parties committed to provide, among other things,
new senior secured term loan facilities in an aggregate principal
amount of up to $850 million. Pursuant to the Amended Commitment
Letter and subject to the terms and conditions set forth therein,
the Commitment Parties have committed to increase such senior
secured term loan facilities by $30 million to a total of $880
million, consisting of $815 million that will be available on the
closing date for the facilities and $65 million that will not be
funded on the Closing Date, but will instead be available to be
borrowed, at the Company's sole option, as a single delayed drawing
on or after 10 days after the Closing Date until the date that is
15 business days after the Closing Date, the proceeds of which
shall be used to repay loans outstanding under the Incremental
Facility.
The funding of the Facilities is contingent on the satisfaction of
a limited number of customary conditions and the Original
Commitment Letter is otherwise unchanged.
About Revlon
Revlon, Inc. (together with its subsidiaries) conducts its business
exclusively through its direct wholly-owned operating subsidiary,
Revlon Consumer Products Corporation, and its subsidiaries. The
Company manufactures, markets and sells an extensive array of
beauty and personal care products worldwide, including color
cosmetics; fragrances; skin care; hair color, hair care and hair
treatments; beauty tools; men's grooming products; anti-perspirant
deodorants; and other beauty care products.
Revlon Inc. and its subsidiaries reported a net loss of $157.7
million for the year ended Dec. 31, 2019, compared to a net loss of
$294.2 million for the year ended Dec. 31, 2018. As of
Dec. 31, 2019, the Company had $2.98 billion in total assets,
$956.9 million in total current liabilities, $2.90 billion in
long-term debt, $181.2 million in long-term pension and other
post-retirement plan liabilities, $157.5 million in other long-term
liabilities, and a total stockholders' deficiency of $1.22
billion.
* * *
As reported by the TCR on April 8, 2020, Moody's Investors Service
downgraded Revlon Consumer Products Corporation's Corporate Family
Rating to Caa3 from Caa1. The downgrade reflects Revlon's
unsustainably high financial leverage that Moody's estimates at
about 11x debt-to-EBITDA, negative free cash flow and high reliance
on discretionary spending, Revlon's largest categories include mass
color cosmetics and celebrity fragrances (about 60% of sales).
ROCKET SOFTWARE: Moody's Lowers CFR to B3, Outlook Stable
---------------------------------------------------------
Moody's Investors Service downgraded Rocket Software, Inc.'s
Corporate Family Rating to B3 from B2 and Probability of Default
Rating to B3-PD from B2-PD. Concurrently, Moody's downgraded the
ratings of Rocket's senior secured first lien bank credit
facilities to B2 from B1 and second lien term loan to Caa2 from
Caa1. The downgrade actions reflect the view that though the
company has made progress in stabilizing recent organic revenue
declines, Rocket's leverage will increase from current levels and
be sustained over its 6.5x downgrade trigger over the next 12-18
months. However, amid an economic recession driven by the
coronavirus pandemic, Rocket is expected to maintain positive free
cash flow supported by its high profitability, highly recurring
revenue base and expectations for a material reduction in one-time
cash outflows. The outlook is stable.
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 weaknesses in
Rocket's credit profile, stemming from its high leverage and recent
organic revenue declines, leave the company vulnerable to the
weakening demand amid efforts to stem the outbreak. Moody's regards
the coronavirus outbreak as a social risk under its ESG frame work,
given the substantial implications for public health and safety.
Its action reflects the potential impact on Rocket from the breadth
and severity of the shock, and the broad deterioration in credit
quality it has triggered.
Downgrades:
Issuer: Rocket Software, Inc.
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Corporate Family Rating, Downgraded to B3 from B2
Senior Secured First Lien Bank Credit Facilities, Downgraded to B2
(LGD3) from B1 (LGD3)
Senior Secured Second Lien Bank Credit Facility, Downgraded to Caa2
(LGD6) from Caa1 (LGD6)
Outlook Actions:
Issuer: Rocket Software, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Rocket's B3 CFR reflects the company's relatively small scale (with
revenues less than $500 million) compared to its infrastructure
software peers as well as the company's acquisition appetite which
can lead to temporary increases in debt. Rocket has somewhat
limited organic growth prospects and looks to strategic
acquisitions to augment growth and improved market position. Rocket
has historically used a combination of internally generated cash
flow and debt to fund acquisitions, though Moody's expects M&A
activity to be limited over the near-term.
The ratings are supported by Rocket's strong profitability with
historical EBITDA margins of about 50%, strong free cash flow
generation capabilities, its long-standing supply relationship with
IBM, and relatively high proportion of recurring revenues. As
evidenced by the high level of leverage used to finance the 2018
LBO of the company by private equity sponsors Bain Capital and
additional debt incurred for acquisitions, Rocket is expected to
maintain an aggressive financial strategy.
Rocket has made progress in stabilizing recent organic revenue
declines entering 2020, however the coronavirus pandemic and
resulting economic recession is expected to weigh on new license
sales and could result in increased customer churn, a weakening
maintenance revenue base and increases in debt to EBITDA leverage.
Rocket's leverage (about 7x at year-end 2019 including adjustments
for recently acquired EBITDA and one-time expenses) has remained
above levels from the close of the 2018 LBO transaction. The
persistently high leverage is largely attributable to recent
organic license and maintenance revenue declines resulting from a
lack of sales execution with the company's IBM related product
lines as well as additional debt incurred for recent tuck-in
acquisition activity. Substantial expenses related to post LBO
severance, consulting and restructuring costs are expected to wane
in 2020, which in combination with the effect of recent cost
reductions should support EBITDA and free cash flow generation even
in the face of potential further reduction in license sales.
Liquidity is adequate based on a cash balance of approximately $13
million at December 31, 2019, expectations for breakeven free cash
flow over the next 12 months and a committed $125 million revolver
($98 million drawn at December 31, 2019).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Rocket's ratings could be downgraded if leverage is expected to be
sustained above 7.5x or free cash flow to debt were negative on
other than a temporary basis. Moreover, the ratings could be
downgraded if Rocket were to lose a critical business partner or
face a material deterioration in maintenance revenue or liquidity.
Ratings could be upgraded if operating performance were to improve
such that Moody's adjusted leverage were sustained below 6.5x and
free cash flow (cash from operations less capex) to gross debt were
maintained at 5% or above.
Rocket Software, Inc. is a provider of IT management software tools
to the distributed and IBM mainframe markets. The company generated
pro forma revenues of approximately $402 million in 2019. Rocket,
which is headquartered in Waltham, MA, is owned by management and
funds affiliated with Bain Capital.
The principal methodology used in these ratings was Software
Industry published in August 2018.
ROCKET SOFTWARE: S&P Lowers ICR to 'B-' on Macroeconomic Weakness
-----------------------------------------------------------------
S&P Global Ratings lowered its rating on Rocket Software Inc. to
'B-' from 'B'. At the same time, S&P lowered its ratings on the
company's first-lien senior secured debt to 'B-' from 'B' and on
its second-lien senior secured debt to 'CCC+' from 'B-'.
"The rating action is driven by our view that Rocket could face
revenue declines in 2020 in line with GDP expectations, resulting
in leverage being sustained over the mid-7x area. While the company
had a good third quarter and had a solid 2020 plan before COVID-19,
we view the disruption from the pandemic to be a challenge for the
overall software industry and expect weakness in the company's
license and service revenues in 2020. We expect Rocket to generate
more than $70 million of free cash flow in 2020 and use it pay down
all its outstanding seller financing. Following the completion of
Project Orion, we expect Rocket's EBITDA margins to be sustained at
or above 50% in 2020," S&P said.
The stable outlook reflects S&P's view that the Rocket will
generate positive free cash flow, manage its near-term seller
financing liabilities and improve liquidity during 2020.
"We would lower our rating on Rocket if it continues to face
revenue declines or profitability falls such that free cash flow
turns negative and we view the capital structure to no longer be
sustainable," S&P said.
"We would raise our rating on Rocket if it can increase revenues,
improve its free cash flow to debt to about 4%, and improve its
leverage to the mid-7x area," the rating agency said.
RODRIGUEZ INVESTMENTS: Counsel Must Return $22,500
--------------------------------------------------
In the bankruptcy case captioned In re: RODRIGUEZ INVESTMENTS, LLC,
Chapter 11, Debtor, Case No. 19-00207-GS (Bankr. D. Ala.), T.
Edward Williams, counsel for the Debtor, seeks reconsideration of
the Court's order granting the U.S. Trustee's motion for
Disgorgement and Turnover that requires Mr. Williams to turn over
$22,577 to the debtor's principal. Upon review, Bankruptcy Judge
Gary Spraker denies the motion for reconsideration.
The U.s. Trustee filed its Motion for Disgorgement and Turnover of
Retainer on Sept. 16, 2019. The Motion to Disgorge is supported by
a declaration from the debtor's principal, Kisha Smaw, and
addresses the debtor's retention of Mr. Williams to file and
represent it within the debtor's chapter 11 proceeding in Alaska.
Mr. Williams is a New York attorney who practices in both New York
and Colorado. His practice focuses on litigation and bankruptcy.
Mr. Williams filed bankruptcy for the debtor Rodriguez Investments,
LLC, on July 1, 2019. He filed his employment application on July
12, 2019.
On Nov. 25, 2019, Mr. Williams filed his Motion to Reconsider Nov.
13, 2019 Order. Mr. Williams argues that the Order is manifestly
unjust, because (1) it "in effect acts as a default judgment
against the undersigned," and (2) was entered after Ms. Smaw
invoked the attorney-client privilege, hampering Mr. Williams's
ability to defend himself against the relief requested in the
Motion to Disgorge. Mr. Williams also contends that the court
committed errors of fact, namely (1) the court made no findings
about the amounts of the payments made by Ms. Smaw, and (2) the
figure the court stated Mr. Williams was paid does not account for
$686.41 in PayPal fees or $550 incurred for legal research costs.
In his Motion to Reconsider, Mr. Williams argues that "[t]he
Court's order in effect acts as a default judgment against the
undersigned notwithstanding that the undersigned has actively
participated in this case without issue." The Order is not a
default judgment. Mr. Williams was afforded the opportunity to
oppose the Motion to Disgorge, and he did so. He raised arguments,
including the attorney-client privilege, and attended hearings in
furtherance of resolution of the Motion to Disgorge.
While late-filed, he did file a declaration in support of his
opposition. Moreover, he participated in the evidentiary hearing
and was permitted to appear telephonically at that hearing rather
than travel to Anchorage, Alaska in a bankruptcy case that he
undertook to represent the debtor. Mr. Williams's cell phone was
disconnected after more than an hour of his participation in the
Nov. 5, 2019 hearing.
Mr. Williams failed to fully participate for the duration of the
evidentiary hearing. This is not an instance of default judgment,
the Bankruptcy Court says. Mr. Williams assumed the risks when he
chose to appear telephonically at a long-standing evidentiary
hearing. Moreover, there is still no explanation for why Mr.
Williams did not attempt to contact the court to rejoin the
proceeding after dropping the call. Mr. Williams's active
participation in this matter precludes his argument that he was
defaulted. The Order was entered based on the merits of the Motion
to Disgorge, after consideration of Mr. Williams's opposition
presented up to the point that he failed to participate in the
hearing.
Mr. Williams contends he was prevented from fully presenting his
opposition because Ms. Smaw sent him an email invoking the
attorney-client privilege, thereby precluding key information
regarding Mr. Williams's fees. According to Mr. Williams, based
upon Ms. Smaw's email, and possibly through comments with her
counsel as well, he decided not to disclose information to the
court. He posits that his decision was made in part because the
court's discussion of the attorney-client privilege vis-a-vis Ms.
Smaw at the Oct. 18, 2019 hearing in this matter was "not clear as
to what happens when Ms. Smaw submits an objection" to the
disclosure of protected information directly to Mr. Williams rather
than the court. Mr. Williams further argues that it would have been
"imprudent" for him to rely on the audio recordings for clarity
regarding his professed conundrum.
The Bankruptcy Court says it is unpersuaded by Mr. Williams's
arguments. First, he has not provided any evidence in support of
his statements regarding Ms. Smaw's alleged desire to invoke the
attorney-client privilege. He has failed to provide a declaration
to support his Motion to Reconsider, and has failed to attach the
email from Ms. Smaw. In short, the court has not been provided with
any evidence that Ms. Smaw objected to the waiver of the
attorney-client privilege as to any documents whatsoever. The court
is left with mere argument from Mr. Williams that is insufficient
to establish a question of manifest injustice.
Mr. Williams also argues that the court has committed clear errors
of fact by not reducing the total amounts of the transfers. He
argues that the total amount must be reduced by $550 for expenses
paid to Bloomberg Law Legal Research from the $8,577 payment.
According to the Bankruptcy Court, Mr. Williams failed to raise
this matter in his opposition or declaration. Rather, he raises the
issue for the first time in the Motion to Reconsider. More
importantly, Mr. Williams has provided no evidence in support of
any payment to Bloomberg Law Legal Research. And to the extent this
charge is for services provided to the debtor, no compensation has
been approved. For these reasons, the Bankruptcy Court says it
cannot reduce the amount to be disgorged by the $550 Mr. Williams
states was paid to Bloomberg Law Legal Research.
A copy of the Court's Memorandum Decision dated March 10, 2020 is
available at https://bit.ly/2V2i2W0 from Leagle.com.
Rodriguez Investments, LLC, Debtor, represented by T. Edward
Williams, Williams LLP.
Office of the U.S. Trustee, U.S. Trustee, represented by Kathryn
Perkins, DOJ-Ust.
About Rodriguez Investments, LLC
Based in Anchorage, Alaska, Rodriguez Investments, LLC, filed a
Voluntary Petition under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Alaska Case No. 19-00207) on
July
1, 2019, listing under $1 million on both assets and liabilities.
Edward Williams, Esq. at Peyrot and Associates P.C. represents the
Debtor as counsel.
ROSEHILL RESOURCES: BDO USA LLP Raises Going Concern Doubt
----------------------------------------------------------
Rosehill Resources Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$30,088,000 on $302,283,000 of total revenues for the year ended
Dec. 31, 2019, compared to a net income of $117,962,000 on
$301,875,000 of total revenues for the year ended in 2018.
The audit report of BDO USA, LLP states that there are significant
uncertainties in the near term regarding the Company’s ability to
generate sufficient cash flows from operations and maintain
compliance with provisions within its debt and preferred stock
agreements 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 $872,512,000, total liabilities of $496,370,000, and a total
stockholders' equity of $213,116,000.
A copy of the Form 10-K is available at:
https://is.gd/h9KyVV
Rosehill Resources Inc., is an independent oil and natural gas
company, focuses on the acquisition, exploration, development, and
production of unconventional oil and associated liquids-rich
natural gas reserves in the Permian Basin. The company was founded
in 2015 and is headquartered in Houston, Texas. Rosehill Resources
Inc. is a subsidiary of Tema Oil & Gas Company.
RUBY PIPELINE: S&P Lowers ICR to 'B+'; Outlook Negative
-------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating (ICR) on Ruby
Pipeline LLC to 'B+' from 'BB'. At the same time, S&P lowered its
issue-level rating to 'BB-' from 'BB' on the company's senior
unsecured notes. S&P revised the recovery rating to '2' from '3',
as it is no longer capped at '3' due to the rating agency's
lowering of the issuer credit rating. The recovery rating of '2'
suggests a substantial (70%-90%; rounded estimate: 85%) recovery in
the event of a payment default.
Depressed commodity prices and narrow pricing differentials could
put additional pressure on the renewal process and Ruby's
counterparties. S&P expects the market environment to remain
unfavorable to the renewal process over the next 12 months due to
depressed commodity prices. Before the recent commodity price
decline, the outlook for production in the Rockies was already
challenged due to prevailing economics and potentially more
stringent legislation in Colorado. This additional pressure on
commodity prices, combined with the low pricing spread between Opal
and Malin, could result in producers and marketers exiting this
market at a greater rate than anticipated. This is material for
Ruby because 65% of its firm take-or-pay contracts, mostly with
producers and marketers, are set to expire by mid-2021.
The negative outlook reflects S&P's view that counterparties are
likely to seek materially lower renewal rates for the contracts
coming due by mid-2021, which would negatively affect cash flows.
The current low commodity price environment is also likely to put
further pressure on producers. In addition, there is still
uncertainty regarding PG&E's emergence from bankruptcy. These
factors are likely to result in weakened credit metrics, given the
current capital structure and a less robust contractual profile.
While currently adequate, the liquidity profile could become weaker
over the next year, largely because of the upcoming maturity of the
2022 notes.
"We could lower the rating if credit metrics weakened such that
debt-to-EBITDA was consistently above 5.0x, which could result from
lower-than-expected recontracting rates. We could also consider a
negative rating action if PG&E fails to honor its contractual
obligations, if Ruby has sustained operational challenges, or if
the company's liquidity profile weakens," S&P said.
"We could revise the outlook to stable if Ruby successfully renews
its upcoming contracts at better-than-expected rates and average
life, while PG&E continues to honor its contract obligations,
leading to a sustainable capital structure such that debt-to-EBITDA
was below 4.0x for a sustained period," S&P said.
RYERSON HOLDING: S&P Alters Outlook to Negative, Affirms 'B' ICR
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Ryerson
Holding Corp. and revised its outlook to negative from stable. S&P
affirmed its 'B' issue-level rating on the company's senior secured
notes. The recovery rating is '4'.
Ryerson is likely to experience a material decline in order
activity this year as a result of the economic downturn driven by
the coronavirus pandemic.
S&P forecasts a 15% decline in volumes and a 10% decline in the
company's average selling price in 2020, leading to a roughly
one-third decline in EBITDA. The rating agency sees a risk that the
disruption to end markets and decline in order books could be worse
than it anticipated, leading to elevated leverage, potentially
approaching its downgrade trigger of 8x. S&P also views there to be
increasing refinancing risk for the company's asset-based lending
ABL facility (due November 2021) and notes (due May 2022) as time
elapses to their maturities under these weak market conditions.
"The negative outlook reflects the risk that the economic downturn
and customer shutdowns brought on by the global coronavirus
pandemic could lead to a more severe hit to Ryerson's business
activity resulting in adjusted leverage sustained above 8x or
EBITDA interest coverage below 1.5x," S&P said.
S&P could lower the rating over the next 12 months if adjusted
leverage is sustained above 8x or EBITDA interest coverage falls
below 1.5x as the time to maturity on the company's ABL (November
2021) and senior secured notes (May 2022) approaches. This could
result if Ryerson's customers experience longer shutdowns
prolonging the disruption to orders or if the economic downturn
resulting from the pandemic leads to a sharper decline and slower
recovery in business activity and volumes than anticipated.
"We could revise the outlook to stable if the company's end markets
remain more resilient resulting in a lower decline in business
activity and volumes, which leads to debt to EBITDA being sustained
below 6x. In addition, to return the outlook to stable within the
next 12 months, we would expect the company to be in a position to
address the future refinancing of its capital structure," S&P said.
SAEXPLORATION HOLDINGS: Board Appoints John Simmons as VP
---------------------------------------------------------
The Board of Directors of SAExploration Holdings, Inc. appointed
John Simmons as a vice president of the Company, effective May 1,
2020. Mr. Simmons will serve the Company in such capacity until
the day immediately following the date on which the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020
is filed with the Securities and Exchange Commission (the
"Transition Date"), at which time Mr. Simmons will also be
appointed as chief financial officer of the Company. Prior to
joining the Company, Mr. Simmons was the chief financial officer at
Dauphine Energy, LLC, a privately held oil and gas company, from
March 2019 until March 2020. Prior to that, Mr. Simmons held
various positions with BHP Petroleum from 2001 until April 2018,
including as a member of BHP Petroleum's executive leadership team
as the head of global planning from 2014 to 2018, as the chief
financial officer of Petrohawk Energy following its acquisition by
BHP Petroleum from 2011 until 2014, as global controller from 2005
to 2010 and as a finance and planning manager for the Americas
Division from 2001 to 2005. Prior to joining BHP, Mr. Simmons was
the planning manager at PetroCosm from 2000-2001 and, prior to
that, he worked at Union Oil Company of California (Unocal) serving
in a variety of roles within planning, finance, accounting and
economic evaluation from 1993 to 2000. Mr. Simmons has a Bachelor
of Science from McNeese State University and a Master of Business
Administration from Texas A&M University. He is also a Certified
Public Accountant in the State of Texas.
In connection with joining the Company, Mr. Simmons, age 52,
entered into an executive employment agreement with the Company for
an initial term ending on May 1, 2021, subject to earlier
termination in certain circumstances, with subsequent automatic
annual renewals for one year terms unless notice to terminate is
provided at least 90 days prior to the expiration of any such term.
The Agreement provides for an initial base salary of $308,600 per
year, which may be increased annually in the discretion of the
Board of Directors. The Agreement also provides for participation
in the Company's management incentive programs or arrangements,
including (i) an annual performance cash award at a target
percentage of 60% of base salary if certain performance goals are
reached as identified and approved by the Compensation Committee of
the Board of Directors, and (ii) equity incentive programs and
arrangements.
The Agreement provides that, in the event of a termination of Mr.
Simmons's employment by the Company without cause, by Mr. Simmons
for good reason (as defined in the Agreement), or by the Company on
account of its failure to renew the Agreement within twelve (12)
months following a Change of Control (as defined in the Agreement),
the Company will pay Mr. Simmons: (i) all accrued but unpaid base
salary and vacation, (ii) a severance amount equal to the sum of
(A) 12 months of base salary plus (b) the amount of the annual
performance cash award that Mr. Simmons would have earned at the
Target Percentage for the calendar year in which the termination
occurs, which severance amount will be paid in a single lump sum
payment, and (iii) reimbursement of premiums associated with
continuation of coverage through COBRA for a period of up to 12
months, subject, in the case of the payments to be made pursuant to
clauses (ii) and (iii), to the execution of a full and final
release in favor of the Company.
The Agreement restricts Mr. Simmons from using or disclosing
confidential information for purposes other than advancing the
Company's interests. Under the Agreement, during its term and for
one year following termination thereof, Mr. Simmons will not
directly or indirectly solicit or accept business from any of the
Company's customers, or solicit or induce any employee to leave the
Company.
Kevin Hubbard to Act as Advisor
Effective as of the Transition Date, Kevin Hubbard will no longer
serve as the Company's interim chief financial officer, but will
continue to serve the Company in an advisory role.
About SAExploration Holdings
SAExploration Holdings -- http://www.saexploration.com-- is an
international oilfield services company offering a full range of
vertically-integrated seismic data acquisition, data processing and
interpretation, and logistical support services throughout North
America, South America, Asia Pacific, Africa, and the Middle East.
In addition to the acquisition of 2D, 3D, time-lapse 4D and
multi-component seismic data on land, in transition zones and
offshore in depths reaching 3,000 meters, SAE offers a full suite
of data processing and interpretation services utilizing its
proprietary, patent-protected software, and also provides in-house
logistical support services, such as program design, planning and
permitting, camp services and infrastructure, surveying, drilling,
environmental assessment and reclamation, and community relations.
SAE operates crews around the world, performing major projects for
its blue-chip customer base, which includes major integrated oil
companies, national oil companies and large independent oil and gas
exploration companies. With its global headquarters in Houston,
Texas, SAE supports its operations through a multi-national
presence in the United States, United Kingdom, Canada, Peru,
Colombia, Bolivia, Malaysia, and Singapore.
SAExploration recorded a net loss of $22.61 million in 2019
compared to a net loss of $59.56 million in 2018. As of Dec. 31,
2019, the Company had $142.21 million in total assets, $166.60
million in total current liabilities, $7.14 million in long-term
debt, $4.28 million in other long-term liabilities, and a total
stockholders' deficit of $35.81 million.
Pannell Kerr Forster of Texas, P.C., in Houston, Texas, the
Company's auditor since 2014, issued a "going concern"
qualification in its report dated April 13, 2020 citing that the
Company has experienced recurring losses from operations and has
been unable to renegotiate its expiring senior loan facility which
raises substantial doubt about its ability to continue as a going
concern.
SAFE FLEET: S&P Alters Outlook to Neg. on Weaker Near-Term Demand
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Safe Fleet Holdings LLC
to negative from stable and are affirmed its ratings, including its
'B-' issue-level rating on its first-lien term loan and revolving
credit facility and its 'CCC' issue-level rating on its second-lien
term loan. S&P's '3' recovery rating on the company's first-lien
debt and its '6' recovery rating on its second-lien debt remain
unchanged.
"In our view, Safe Fleet's leverage was already relatively high;
however, we now believe that it could increase significantly and
begin to approach unsustainable levels. Safe Fleet ended fiscal
year 2019 with S&P-adjusted debt to EBITDA of approximately 7.3x.
Given the headwinds associated with the coronavirus pandemic, our
economists now expect U.S. GDP to contract by an annualized rate of
over 30% in the second quarter of 2020 and believe full-year GDP
will shrink by more than we previously anticipated. In our view,
these declines will lead to reduced demand for Safe Fleet's
products," S&P said.
On the other hand, the company produces some products that go into
critical uses, which S&P expects will fare well in this
environment, including equipment for first-responder vehicles.
However, S&P expects material weakness in some of Safe Fleet's
other end markets, including school bus-related products, given the
uncertainty around when schools will reopen and the pressure on
municipal budgets. Therefore, S&P expects many of the company's
customers to delay their orders into 2021, which would cause its
revenue to decline by at least the double-digit percent area for
the year. This would, in turn, lead its leverage to remain above 9x
over the next 12 months.
The negative outlook on Safe Fleet reflects S&P's belief that there
is at least a one-in-three chance the rating agency will lower its
rating on the company if the revenue declines by more than the
rating agency expects or the company's EBITDA margins to be
depressed in 2020. S&P expects the company's free cash flow
generation to be adequate over the next 12 months and anticipate
that its leverage will remain elevated over the next year.
"We could lower our rating on Safe Fleet if its end markets
deteriorate by more than we expect and lead it to consistently
generate negative free operating cash flow, which would constrain
its liquidity position. We could also downgrade the company if we
believe its leverage will continue to rise, causing us to view its
capital structure as unsustainable over the long term, S&P said.
"We could revise our outlook on Safe Fleet to stable if our
forecast for the company's end markets significantly improves. In
our view, this would allow the company to maintain adequate
liquidity, generate positive free operating cash flow, and enable
modest deleveraging," S&P said.
SAKS FIFTH AVENUE: Misses Payment, Reportedly Eyeing Bankruptcy
---------------------------------------------------------------
According to reports, New York-based retailer Saks Fifth Avenue
Enterprises Inc. is reportedly mulling a Chapter 11 bankruptcy
filing.
Saks Fifth Avenue has temporarily closed its retail stores across
the U.S. and Canada due to the Coronavirus pandemic since March 18,
2020. Saks Fifth Avenue joins Neiman Marcus, JCPenney and Macy's
among luxury department stores that have struggled to survive
during the lockdown.
According to a Bloomberg report, Saks' parent, Hudson's Bay Co.,
missed interest-only debt payments worth $3.2 million for April
2020 for several commercial mortgage-backed securities, which are
part of the $696 million in financing for Saks Fifth Avenue and
other stores.
The securities, originated in 2015, financed 34 properties -- 10
Saks and 24 Lord & Taylor stores. The Saks locations include
Beverly Hills, California, Atlanta, Chicago and Miami.
About Hudson's Bay
and Saks Fifth Avenue
The Hudson's Bay Company is a Canadian retail business group. A
fur trading business for much of its existence, HBC now owns and
operates retail stores in Canada and the United States.
Toronto-based HBC, originally established as a fur trading company
in the 17th century, was taken private this year, after selling off
Lord & Taylor, the company's European operations and flash-sale
e-commerce company Gilt.
Saks Fifth Avenue is renowned for its coveted edit of American and
international designer collections as well as its storied history
of creating breakthrough, experiential environments. Its exemplary
client service has made Saks a global authority in the category, a
focus since the brand’s inception in 1924. As part of the HBC
brand portfolio, Saks operates in 43 cities across the globe, its
online experience―saks.com, and its mobile experience―Saks App.
SEANERGY MARITIME: Prices Approximately $5.2 Million Offering
-------------------------------------------------------------
Seanergy Maritime Holdings Corp. has entered into a securities
purchase agreement with certain unaffiliated institutional
investors to purchase approximately $5.2 million of its common
shares in a registered direct offering and warrants to purchase
Common Shares in a concurrent private placement.
Under the terms of the securities purchase agreement, the Company
has agreed to sell 42,950,000 Common Shares. In a concurrent
private placement, the Company has agreed to issue warrants to
purchase up to 42,950,000 Common Shares. The warrants will be
exercisable upon issuance and have an exercise price of $0.12 per
share. The warrants will expire five years from the issuance date.
The purchase price for one Common Share and a corresponding warrant
will be $0.12. The gross proceeds to the Company from the
registered direct offering and concurrent private placement are
estimated to be approximately $5.2 million before deducting the
placement agent's fees and other estimated offering expenses. The
registered direct offering and concurrent private placement are
expected to close on or about May 4, 2020, subject to the
satisfaction of customary closing conditions.
Maxim Group LLC is acting as sole placement agent for the
offering.
About Seanergy Maritime
Greece-based Seanergy Maritime Holdings Corp. --
http://www.seanergymaritime.com/-- is an international shipping
company that provides marine dry bulk transportation services
through the ownership and operation of dry bulk vessels. Seanergy
provides marine dry bulk transportation services through a modern
fleet of 10 Capesize vessels, with a cargo-carrying capacity of
approximately 1,748,581 dwt and an average fleet age of
approximately 11 years. The Company is incorporated in the
Marshall Islands and has executive offices in Athens, Greece and an
office in Hong Kong.
Seanergy Maritime reported a net loss of US$11.70 million for the
Dec. 31, 2019, a net loss of US$21.06 million for the year ended
Dec. 31, 2018, and a net loss of US$3.23 million for the year ended
Dec. 31, 2017. As of Dec. 31, 2019, the Company had US$282.55
million in total assets, US$252.69 million in total liabilities,
and US$29.86 million in total stockholders' equity.
Ernst & Young (Hellas) Certified Auditors Accountants S.A., in
Athens, Greece, the Company's auditor since 2012, issued a "going
concern" qualification in its report dated March 5, 2020 citing
that the Company has a working capital deficiency and has stated
that substantial doubt exists about the Company's ability to
continue as a going concern. In addition, the Company has not
complied with a certain covenant of a loan agreement with a bank.
SILICA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to C
----------------------------------------------------------------
Egan-Jones Ratings Company, on April 20, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by US Silica Holdings Incorporated to C from CCC. EJR
also downgraded the rating on commercial paper issued by the
Company to D from C.
Headquartered in Katy, Texas, U.S. Silica Holdings, Inc. is a
domestic producer of commercial silica, a specialized mineral that
is input into a range of end markets.
SINTX TECHNOLOGIES: Gets $391K PPP Loan from First State Community
------------------------------------------------------------------
SINTX Technologies, Inc., received funding under a Paycheck
Protection Program loan on April 28, 2020, from First State
Community Bank. The principal amount of the PPP Loan is $390,820.
The PPP was established under the Coronavirus Aid, Relief, and
Economic Security Act and is administered by the U.S. Small
Business Administration.
The PPP Loan has a two-year term, maturing on April 28, 2022. The
interest rate on the PPP Loan is 1.0% per annum. Principal and
interest are payable in 18 monthly installments, beginning on Nov.
28, 2020, until maturity with respect to any portion of the PPP
Loan which is not forgiven. The Company did not provide any
collateral or guarantees for the PPP Loan, nor did the Company pay
any facility charge to obtain the PPP Loan. The PPP Loan provides
for customary events of default, including, among others, those
relating to failure to make payment, bankruptcy, breaches of
representations and material adverse effects. The Company is
permitted to prepay or partially prepay the PPP Loan at any time
with no prepayment penalties.
The PPP Loan may be partially or fully forgiven if the Company
complies with the provisions of the CARES Act, including the use of
PPP Loan proceeds for payroll costs, rent, utilities and other
expenses, provided that such amounts are incurred during the
eight-week period that commenced on April 28, 2020 and at least 75%
of any forgiven amount has been used for covered payroll costs as
defined by the CARES Act. Any forgiveness of the PPP Loan will be
subject to approval by the SBA and the Lender and will require the
Company to apply for such treatment in the future.
About SINTX Technologies
Headquartered in Salt Lake City, Utah, SINTX Technologies --
https://ir.sintx.com/ -- is an OEM ceramics company that develops
and commercializes silicon nitride for medical and non-medical
applications. The core strength of SINTX Technologies is the
manufacturing, research, and development of silicon nitride
ceramics for external partners. The Company presently manufactures
silicon nitride spinal implants in its ISO 13485 certified
manufacturing facility for CTL-Amedica, the exclusive retail
channel for silicon nitride spinal implants.
On March 24, 2020, the Company received a notice from the Nasdaq
Listing Qualifications Department of the Nasdaq Stock Market LLC
stating that the bid price of the Company's common stock for the
last 30 consecutive trading days had closed below the minimum $1.00
per share required for continued listing under Listing Rule
5550(a)(2).
SINTX reported a net loss attributable to common stockholders of
$7.50 million for the year ended Dec. 31, 2019, compared to a net
loss attributable to common stockholders of $22.55 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$9.15 million in total assets, $3.94 million in total liabilities,
and $5.20 million in total stockholders' equity.
SLM CORP: Egan-Jones Withdraws BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on April 22, 2020, withdrew its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by SLM Corporation.
Headquartered in Newark, Delaware, SLM Corporation, commonly known
as Sallie Mae, provides education funding, originating and
servicing of U.S. government guaranteed and private student loans.
SM ENERGY: Moody's Cuts CFR to Caa1 & Sr. Unsec. Rating to Ca
-------------------------------------------------------------
Moody's Investors Service downgraded SM Energy Company's Corporate
Family Rating to Caa1 from B3, Probability of Default Rating to
Ca-PD from B3-PD, senior unsecured rating to Ca from Caa1, and
senior unsecured shelf to (P)Ca from (P)Caa1. The rating outlook is
negative.
The downgrade reflects the company's intention to issue new secured
debt to exchange for up to $1,681 million of its senior unsecured
notes at a 35% to 50% discount to par, a transaction Moody's views
as a distressed exchange and thus, a default. Upon successful
completion of the exchange, an "--/LD" (limited default) signifier
will be appended to SM's PDR for a period of three days to
acknowledge the default.
Downgrades:
Issuer: SM Energy Company
Probability of Default Rating, Downgraded to Ca-PD from B3-PD
Corporate Family Rating, Downgraded to Caa1 from B3
Senior Unsecured Notes, Downgraded to Ca (LGD5) from Caa1 (LGD4)
Senior Unsecured Shelf, Downgraded to (P)Ca from (P)Caa1
Outlook Actions:
Issuer: SM Energy Company
Outlook, Remains Negative
RATINGS RATIONALE
SM's Ca PDR reflects its intention to undertake a debt exchange on
almost $1.7 billion of its unsecured notes at prices Moody's would
deem to be a distressed exchange, which Moody's considers a
default. If the exchange is successful, leverage will improve;
however, very weak oil prices into 2021 when SM's hedge position
weakens will continue to pressure cash flow-based metrics which is
incorporated into the Caa1 CFR. The high capital intensity and
steep initial decline rates of the company's shale assets limits
the company's ability to make deep capital spending cuts without a
rapid fall in production volume. SM benefits from a production base
(136 mboe/d in the first quarter of 2020) that is similar to most
Ba-rated producers and decent basin diversification. The company's
good inventory of Midland Basin drilling locations, capable of
generating positive returns in an oil price environment below
$40/bbl should allow the company to limit production declines while
generating modest free cash flow. Post-exchange, the company's debt
maturity profile will be considerably improved, easing the
potential for liquidity concerns.
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 SM's credit profile have left it vulnerable to
shifts in market sentiment in these unprecedented operating
conditions and SM 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 SM of the breadth and severity of
the oil demand and supply shocks, and the broad deterioration in
credit quality it has triggered.
SM's SGL-3 rating is based on its expectation that the company will
maintain adequate liquidity through early 2021, primarily due to
its large borrowing capacity under its revolving credit facility.
The company had negligible cash and $72 million drawn under the
$1.2 billion senior secured revolving credit facility as of March
31, 2020. The borrowing base was set at $1.1 billion in the April
2020 redetermination, providing more than $1 billion of
availability.
Cash flow is buttressed by the company's commodity hedging program,
with about 80% of expected oil production for the second, third and
fourth quarters of 2020 locked in at or above $55/bbl. Under SM's
current debt load and given Moody's expectations for very weak oil
prices into 2021, the company could breach its leverage covenant in
2021 if the debt exchange is not completed. SM's next bond maturity
is for its $172.5 million of senior convertible notes due July 1,
2021, followed by $477 million of senior unsecured notes coming due
in November 2022. Although SM's revolver does not mature until
September 2023, it has a springing feature that accelerates the
maturity to August 16, 2022 if more than $100 million of the 2022
notes remain outstanding at that date. In the event the exchange is
successfully executed, the company's maturity profile will be
markedly improved.
The Ca senior unsecured rating reflects an expected loss of 35% to
50% on SM's senior unsecured notes resulting from the planned debt
exchange under the proposed terms.
The negative outlook reflects the challenging commodity price
environment and potential the exchange is not completed at proposed
terms and ultimate recovery weakens.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if the exchange isn't completed, or the
terms of the exchange weaken such that expected recovery declines
significantly. A deterioration in liquidity could also lead to a
downgrade. Successful completion of the planned debt exchange and
improved liquidity could result in a ratings upgrade.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
SM Energy Company is a Denver, Colorado based publicly traded E&P
company with primary production operations in the Eagle Ford Shale
(Webb County) and the Midland Basin (Howard, Upton, Midland and
Martin Counties) of Texas.
SOURCE ENERGY: S&P Downgrades ICR to 'CCC-; Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Calgary-based Source Energy Services Ltd. to 'CCC-' from 'CCC' and
its issue-level rating on Source Energy Services Canada L.P. and
Source Energy Services Canada Holdings Ltd.'s first-lien secured
notes to 'CCC' from 'CCC+'. The '2' recovery rating on the notes is
unchanged.
The downgrade reflects the material deterioration in Source's
liquidity position and credit profile due to the dramatic softening
of industry fundamentals in the WCSB. The recent decline in
commodity prices will lead to a significant fall in exploration and
production (E&P) drilling and fracking activity and substantial
drop in the demand for Source's frac sand production. S&P now
estimates the company will generate minimal cash flows and
unsustainable leverage through this year.
The company has no cash on hand and minimal availability under the
existing covenant-based credit facility.
"We also believe it will generate minimal cash flows in
second-quarter 2020 based on low frac sand demand in Canada both
due to spring break-up and weaker industry activity levels.
Therefore, we believe Source is at risk of not meeting its next
interest payment of about C$8 million, due in June 2020, on its
secured notes, even considering its first-quarter operating
performance, which was in line with that for the same quarter in
2019. The company is also at risk of breaching the fixed-charge
coverage covenant under the facility and any breach of covenant has
the potential to cut access to the facility and require repayment
of the drawn amount. Beyond this, we believe Source will be
challenged to refinance its long-term financial commitments,
including its secured notes due December 2021, in the current
constrained debt capital markets. Based on these factors, we
believe a near-term conventional default, debt restructuring, or
distressed exchange is a very high possibility," S&P said.
The negative outlook reflects the risk that the company could
default on its obligations, as well as the heightened risk it will
not be able to refinance and extend its upcoming debt maturity and
credit facility, respectively, on favorable terms in the current
constrained capital markets.
"We would lower the rating if we foresee a default as a virtual
certainty. This would most likely occur if Source announced a debt
exchange or restructuring we viewed as distressed. This could also
occur if the company missed an interest payment or filed for
bankruptcy," S&P said.
"We could raise the rating if we no longer believe there is a high
probability of a default, distressed exchange, or other form of
debt restructuring. This would most likely occur if industry
conditions become significantly more favorable and the company
improves its liquidity position sufficient to cover its ongoing
financial commitments," S&P said.
STAR GROUP: Egan-Jones Lowers Senior Unsecured Ratings to BB
------------------------------------------------------------
Egan-Jones Ratings Company, on April 21, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Star Group LP to BB from BBB-.
Headquartered in Stamford, Connecticut, Star Group, L.P. provides
home heating products and services.
SUNESIS PHARMACEUTICALS: Former CFO Serving as Consultant
---------------------------------------------------------
Sunesis Pharmaceuticals, Inc., and William P. Quinn entered into a
consulting agreement, effective as of May 2, 2020, under which Mr.
Quinn will provide consulting services to the Company until Dec.
31, 2020 or earlier termination. Pursuant to the Consulting
Agreement, the options to purchase the Company's common stock held
by Mr. Quinn prior to his resignation will continue to vest through
June 30, 2020, when vesting as to all of his options will cease.
Mr. Quinn will have three months following the termination of the
Consulting Agreement to exercise his vested options. All other
rights and obligations with respect to Mr. Quinn's equity will be
as set forth in the applicable stock option agreements, grant
notices and plan documents.
On April 20, 2020, Mr. Quinn informed the Company of his
resignation as the Company's chief financial officer, senior vice
president, finance and corporate development, and secretary,
effective as of May 1, 2020.
In conjunction with Mr. Quinn's resignation, on April 28, 2020, the
Board appointed Dayton Misfeldt, the Company's interim chief
executive officer and member of the Board, as principal financial
officer and secretary, effective May 1, 2020.
On April 28, 2020, the Board appointed Tina Gullotta, 46, as vice
president, finance and principal accounting officer of the Company,
effective May 1, 2020. Ms. Gullotta joined the Company in August
2018 with extensive experience in accounting, finance, and investor
relations in the biotech industry. Prior to joining the Company,
Ms. Gullotta was the corporate controller and held various other
management positions at Atara Biotherapeutics, Inc. a public
immunotherapy company, from February 2014 to January 2018. Prior
to joining Atara Biotherapeutics, Inc. Ms. Gullotta held financial
management positions in various industries including retail and
telecommunications, and began her career in the business assurance
practice with PricewaterhouseCoopers LLP. Ms. Gullotta received a
B.S.C. in Accounting from Santa Clara University.
In connection with her appointment as vice president, finance and
principal accounting officer, Ms. Gullotta's annual base salary
will be set at $253,000, and she will be eligible for an annual
target bonus of 30% of her annual base salary. Ms. Gullotta will
also be granted an option to purchase 70,000 shares of the
Company's common stock on the last trading day of May 2020, in
accordance with the Company's stock option policy, subject to
approval by the Compensation Committee. 25% of the shares subject
to the option will vest on the first anniversary of the grant date,
and the remaining shares vest in 36 equal monthly installments
thereafter, until either the option is fully vested or Ms.
Gullotta's employment ends, whichever occurs first. The option
will be governed in all respects by the terms of an Option Grant
Notice and Option Agreement, and other applicable 2011 Equity
Incentive Plan documents in forms previously approved by the Board
and filed with the Securities and Exchange Commission.
In connection with her appointment, Ms. Gullotta will enter into
the Company's standard indemnification agreement.
About Sunesis Pharmaceuticals
Headquartered in San Francisco, California, Sunesis --
http://www.sunesis.com/-- is a biopharmaceutical company
developing novel targeted inhibitors for the treatment of
hematologic and solid cancers. Sunesis has built an experienced
drug development organization committed to improving the lives of
people with cancer. The Company is focused on advancing its novel
kinase inhibitor pipeline, including its oral non-covalent BTK
inhibitor vecabrutinib and first-in-class PDK1 inhibitor SNS-510.
Sunesis reported a net loss of $23.33 million for the year ended
Dec. 31, 2019, compared to a net loss of $26.61 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$37.24 million in total assets, $9.69 million in total liabilities,
and $27.54 million in total stockholders' equity.
Ernst & Young LLP, in Salt Lake City, Utah, the Company's auditor
since 1998, issued a "going concern" qualification in its report
dated March 10, 2020 citing that the Company has suffered recurring
losses from operations and has stated that substantial doubt exists
about the Company's ability to continue as a going concern.
TARONIS TECHNOLOGIES: Updates its Corporate Headquarters' Address
-----------------------------------------------------------------
Taronis Technologies, Inc. has updated the address of its corporate
headquarters to 24980 N. 83rd Avenue, Ste. 100, Peoria, AZ 85383.
About Taronis Technologies
Clearwater, Florida-based Taronis Technologies Taronis
Technologies, Inc. (TRNX) is a technology-based company that is
focused on addressing the global constraints on natural resources,
including fuel and water. The Company's two core technology
applications -- renewable fuel gasification and water
decontamination/sterilization -- are derived from its patented and
proprietary Plasma Arc Flow System. The Plasma Arc Flow System
works by generating a combination of electric current, heat,
ultraviolet light and ozone, that affects the feedstock run through
the system to create a chosen outcome, depending on whether the
system is in "gasification mode" or "sterilization mode".
Taronis incurred a net loss of $15.04 million in 2018 following a
net loss of $11.02 million in 2017. As of Sept. 30, 2019, Taronis
had $47.76 million in total assets, $11.49 million in total
liabilities, and $36.27 million in total stockholders' equity.
Marcum LLP, in New York, NY, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated April
12, 2019, citing that the Company has incurred significant losses,
continued to have negative cash flows from its operating
activities, and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
TOOJAY'S MANAGEMENT: Files for Chapter 11, Plans to Remain Open
---------------------------------------------------------------
South Florida-based deli TooJay has filed for bankruptcy protection
due to the economic impact of the COVID-19 pandemic.
Peter Burke, writing for WPTV, reports that TooJay's CEO and
president Maxwell Piet said in a statement that filing for
bankruptcy protection is "the best path forward" for the company
because it is the "direct result of the devastating economic impact
of COVID-19 pandemic on restaurants throughout Florida."
He added, "This course of action will enable us to remain open to
serve our communities with the same great food and service we are
known for. As we learn of the reopening plans for our dining rooms,
we will rehire more employees and expand our services as
restrictions allow."
WPTV notes that on April 29, 2020, Florida Governor Ron DeSantis
announced the plan tiered reopening of the state but it doesn't
include South Florida, the epicentre of COVID-19 outbreak, with
over 17,000 confirmed cases as well as hundreds of death.
About TooJay's Management
TooJay's Management LLC is a South Florida-based deli, bakery, and
restaurant chain that open in 1981 serving guests in Palm Beach and
Broward counties, the Treasure Coast, the West Coast of Florida,
the Orlando area and The Villages. TooJay's offers homemade
comfort foods, handcrafted sandwiches, and made-from-scratch soups,
salads, and baked goods. It operates 16 locations in different
counties in Florida.
TooJay's Management LLC and 31 affiliates sought Chapter 11
protection
(Bankr. S.D. Fla. Case No. 20-14792) on April 29, 2020.
TooJay's Management was estimated to have $50 million to $100
million in assets and $10 million to $50 million in liabilities as
of the bankruptcy filing.
The Hon. Erik P. Kimball is the case judge.
Michael Goldberg, Esq., at AKERMAN LLP, in Fort Lauderdale, Florida
is the Debtors' counsel.
TRANS WORLD: Delays Filing of Reports Amid COVID-19 Pandemic
------------------------------------------------------------
Trans World Entertainment Corporation furnished a Current Report on
Form 8-K with the Securities and Exchange Commission notifying the
delay the filing of its Annual Report on Form 10-K for the year
ended Feb. 1, 2020 (which would be required to be filed on May 1,
2020), its Definitive Proxy Statement on Form DEF 14A, including
the information omitted from the 10-K pursuant to General
Instruction G(3) of the Form 10-K, and the Company's Quarterly
Report on Form 10-Q for the quarter ended May 2, 2020 (which would
be required to be filed on June 16, 2020), in reliance on an order
issued by the U.S. Securities and Exchange Commission.
On March 25, 2020, the SEC issued orders under Section 36 (Release
No. 34-88465) 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 filings 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 filing 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 said its key employees are affected by travel and work
restrictions stemming from the COVID-19 pandemic. In particular,
the Company's operations are primarily located in New York and
Washington and both states have imposed continuing statewide
lockdowns to address the COVID-19 pandemic. As a consequence, the
Company's accounting personnel, who are working remotely, have only
limited access to the Company's financial records. In addition,
the COVID-19 outbreak has made collection of data slower and more
difficult. Management is therefore currently unable to timely
prepare and review the 10-K, Proxy Statement and First Quarter
10-Q, or to determine COVID-19's impact on the Company's financial
statements. As a result, the Company is unable to complete
financial statements and records that it needs to permit the
Company to file a timely and accurate 10-K, Proxy Statement and
First Quarter 10-Q by the prescribed dates without undue hardship
and expense to the Company. The Company expects to file its 10-K
on or before June 15, 2020, its Proxy Statement on or before July
15, 2020 and its first quarter 10-Q on or before July 31, 2020.
Also, as disclosed in the Company's previous filings with the SEC,
the Company has suffered recurring losses from operations, and in
the most recently filed Form 10-Q for the quarterly period ended
Nov. 2, 2019, disclosed that there was substantial doubt about the
Company's ability to continue as a going concern for a period of
one year after the date of filing the Third Quarter 10-Q. Recently,
the Company has disclosed the completion of several transactions,
including (i) the sale of its For Your Entertainment (fye) business
and the establishment of a new secured revolving credit facility
for etailz, Inc. with Encina Business Credit, LLC, as disclosed in
the Form 8-K (Feb. 17, 2020); (ii) the execution of a separate
subordinated loan agreement for etailz, Inc., as well as the
announcement of other operational and governance changes at the
Company, as disclosed in the Forms 8-K (March 30, 2020 and April 9,
2020); and (iii) the receipt by etailz, Inc. of loan proceeds
pursuant to the Paycheck Protection Plan under the Coronavirus Aid,
Relief, and Economic Security ("CARES") Act, as disclosed in the
Form 8-K (April 17, 2020).
These transactions (noted under (i) and (ii) above) were part of
the Company's efforts and planned activities towards its strategy
of shifting its focus solely to the operation of etailz, Inc.,
improving profitability and meeting future liquidity needs and
capital requirements. COVID-19 has caused delays in the timely
completion of the 10-K, and as a result, management has been unable
to complete its assessment as to whether substantial doubt
continues to exist about the Company's ability to continue as a
going concern for a period of one year after the date of filing of
the 10-K. In addition, as a result of the sale of the fye
business, the Company anticipates further impairment of certain
long-lived assets, and an adjustment to net realizable value of its
inventory associated with the sale of the fye business.
In addition, the Company has received waivers from Encina, which
permit the Company to deliver its audited consolidated financial
statements at the time the 10-K is filed, but in no event later
than June 15, 2020.
The Company will supplement its risk factors previously disclosed
in the Company's Annual Report on Form 10-K for the year ended Feb.
2, 2019 and its subsequent Quarterly Reports on Form 10-Q with a
risk factor, such as:
"A pandemic, epidemic or outbreak of an infectious disease, such as
COVID-19, may materially and adversely affect our business.
Our business, results of operations, and financial condition may be
materially adversely impacted if a public health outbreak,
including the recent COVID-19 pandemic, interferes with our
ability, or the ability of our employees, contractors, suppliers,
and other business partners to perform our and their respective
responsibilities and obligations relative to the conduct of our
business. In addition, the impact of the COVID-19 pandemic on the
global financial markets may reduce our ability to access capital,
which could negatively impact our business, results of operations,
and ability to continue as a going concern. Our business has been
disrupted by COVID-19. The ultimate disruption that may be caused
by the pandemic is uncertain; however, it may result in a material
adverse impact on the Company’s financial position, operations,
and cash flows. Possible effects may include, but are not limited
to, disruption to our customers and revenue, absenteeism in our
labor workforce, unavailability of products and supplies used in
our operations, shutdowns that may be mandated or requested by
governmental authorities, and a decline in the value of our assets,
including various long-lived assets."
About Trans World
Headquartered in Albany, New York, Trans World Entertainment
operates in two reportable segments: fye and etailz. The fye
segment operates a chain of retail entertainment stores and
e-commerce sites, http://www.fye.com/and
http://www.secondspin.com. The etailz segment is a digital
marketplace retailer and generates substantially all of its revenue
through Amazon Marketplace.
Trans World reported a net loss of $97.38 million for the year
ended Feb. 2, 2019, following a net loss of $42.55 million for the
year ended Feb. 3, 2018. As of Nov. 2, 2019, Trans World had
$141.48 million in total assets, $116.60 million in total
liabilities, and $24.87 million in total shareholders' equity.
The Company incurred net losses of $39.1 million and $31.7 million
for the thirty-nine weeks ended Nov. 2, 2019 and Nov. 3, 2018,
respectively, and has an accumulated deficit of $89.3 million at
Nov. 2, 2019. In addition, net cash used in operating activities
for the thirty-nine weeks ended Nov. 2, 2019 was $30.8 million.
Net cash used in operating activities for the thirty-nine weeks
ended Nov. 3, 2018 was $53.3 million. The Company also experienced
negative cash flows from operations during fiscal 2018 and 2017,
and expects to incur net losses in the foreseeable future. Based
on its recurring losses from operations, expectation of continuing
operating losses for the foreseeable future, and uncertainty with
respect to any available future funding, as well as the completion
of other strategic alternatives, the Company has concluded that
there is substantial doubt about its ability to continue as a going
concern for a period of one year after the date of filing of this
Quarterly Report on Form 10-Q (Dec. 23, 2019).
ULTRA PETROLEUM: Ernst & Young LLP Raises Going Concern Doubt
-------------------------------------------------------------
Ultra Petroleum Corp. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net income
of $107,988,000 on $742,032,000 of total operating revenues for the
year ended Dec. 31, 2019, compared to a net income of $85,207,000
on $892,499,000 of total operating revenues for the year ended in
2018.
The audit report of Ernst & Young LLP states that the Company has
significant indebtedness, and extremely challenging current market
conditions that have had an adverse impact on the Company's
business and has stated that substantial doubt exists about the
Company's ability to continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $1,815,276,000, total liabilities of $2,660,090,000, and a total
shareholders' deficit of $844,814,000.
A copy of the Form 10-K is available at:
https://is.gd/b1YecN
Ultra Petroleum Corp., an independent oil and gas company, engages
in the acquisition, exploration, development, operation, and
production of oil and natural gas properties. Its principal
business activities are developing its natural gas reserves in the
Green River Basin of southwest Wyoming, the Pinedale and Jonah
fields. The company was founded in 1979 and is headquartered in
Englewood, Colorado.
VASCULAR ACCESS: Trustee Hires SSG Advisors as Investment Banker
----------------------------------------------------------------
Stephen Falanga, the chapter 11 trustee for Vascular Access
Centers, L.P., seeks authority from the U.S. Bankruptcy Court for
the Eastern District of Pennsylvania to hire SSG Advisors, LLC, as
his investment banker.
The trustee requires SSG Advisors to:
a. prepare an information memorandum describing Debtor and its
historical performance and prospects, including existing contracts,
marketing and sales, labor force, management and financial
projections;
b. assist the trustee in operating a data room of documents
related to the sale of Debtor's assets;
c. assist the trustee in developing a list of suitable
potential buyers who will be contacted after its approval, and
update and review such list with the trustee on an ongoing basis;
d. coordinate the execution of confidentiality agreements for
potential buyers wishing to review the information memorandum;
e. assist the Debtor in coordinating site visits for
interested buyers and work with the management team to develop
appropriate presentations for such visits;
f. solicit competitive offers from potential buyers;
g. advise and assist the trustee and his other professionals
in structuring the sale and negotiating transaction agreements;
and
h. assist the trustee and his other professionals, as
necessary, through closing on a best efforts basis.
SSG Advisors will be paid as follows:
a. Monthly Fees. Continuing monthly fee of $5,000.
b. Sale Fees.
a. 5 percent of total consideration for the sale of the
operations of the Debtor as a whole, not including any operations
that have been shut down by the trustee; or
b. 7 percent of total consideration for the sale of the
operations of one or more of the Debtor's centers.
c. SSG shall be entitled to 75 percent of the sale fees in
the event a sale transaction is consummated to a person or entity
identified on the confidential list of pre-existing contacts
separately provided by the trustee to SSG; provided, however, that
SSG shall be entitled to the full sale fee for a sale transaction
to a pre-existing contact in the event there are competing
qualified bids at an auction sale and the pre-existing contact is
the successful bidder after one or more overbids and the sale
transaction is thereafter consummated and the purchase price paid.
c. Restructuring Fee: SSG shall be entitled to a restructuring
fee of $100,000.
d. Expenses. SSG Advisors will be reimbursed for reasonable
out-of-pocket expenses incurred.
J. Scott Victor, managing director of SSG, assured the court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
SSG can be reached at:
J. Scott Victor
SSG Advisors, LLC
300 Barr Harbor Drive
West Conshohocken, PA 19428
Tel: (610) 940-1094
About Vascular Access Centers
Vascular Access Centers -- https://www.vascularaccesscenters.com/
-- provides comprehensive dialysis access maintenance including
thrombectomy and thrombolysis, fistulagrams, fistula maturation
procedures, vessel mapping, central venous occlusion treatment and
complete catheter services. Its centers offer an alternative
setting for a wide spectrum of vascular interventional procedures,
including central venous access for oncology, nutritional and
medication delivery, venous insufficiency (including venous ulcer
and non-healing ulcer treatments), peripheral arterial disease
(PAD), limb salvage, uterine fibroid embolization and pain
management.
On Nov. 12, 2019, an involuntary Chapter 11 petition was filed
against Vascular Access Centers (Bankr. E.D. Pa. Case Number.
19-17117). The petition was filed by creditors Philadelphia
Vascular Institute, LLC, Metter & Company and Crestwood Associates,
LLC. David Smith, Esq., at Smith Kane Holman, LLC, is the
petitioners' counsel.
On Nov. 13, 2019, the Debtor consented to the relief sought under
Chapter 11.
Judge Ashely M. Chan is the presiding judge.
The Debtor tapped Dilworth Paxson LLP as its legal counsel.
VERONI BRANDS: L J Soldinger Associates Raises Going Concern Doubt
------------------------------------------------------------------
Veroni Brands Corp. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$600,813 on $6,678,790 of net revenue for the year ended Dec. 31,
2019, compared to a net loss of $258,830 on $61,333 of net revenue
for the year ended in 2018.
The audit report of L J Soldinger Associates, LLC states that the
Company has incurred losses since inception, has an accumulated
deficit of approximately $907,000 and a cash balance of
approximately $99,000 and working capital of $2,715 as of December
31, 2019. The Company needs to raise capital or debt to fund its
obligations and develop its operations and become profitable.
These conditions raise substantial doubt as to the Company's
ability to continue as a going concern.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $2,459,056, total liabilities of $2,448,747, and a total
stockholders' equity of $10,309.
A copy of the Form 10-K is available at:
https://is.gd/PKofql
Veroni Brands Corp. imports, sells and distributes premium
beverage, chocolate and snack products produced in Europe, engaging
with both domestic and international well-known retailers so that
its products are sold in thousands of stores in the United States.
Veroni is also a supplier of confectionery and beverage products
for major U.S. retailers under private label brands. Since
adopting its current business plan in late 2017, the Company has
been able to obtain and grow a distribution network, as well as
contract with reliable suppliers. Veroni prides itself on its
extensive market research with premium products, superior customer
service, steady relationships with suppliers and retailers, and its
success in developing private label collaborations and co-branded
chocolate products. The Company was incorporated as "Echo Sound
Acquisition Corporation" on December 7, 2016 under the laws of the
State of Delaware. In September 2017, the Company implemented a
change of control by issuing shares to new stockholders, redeeming
shares of existing stockholders, electing a new officer and
director and accepting the resignations of its then existing
officers and directors. The Company is headquartered in
Bannockburn, Illinois.
VIANT MEDICAL: S&P Downgrades ICR to CCC+ on Tightening Liquidity
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Viant
Medical Holdings Inc. to 'CCC+' from 'B-'. At the same time, S&P
lowered its rating on its first-lien debt to 'CCC+' from 'B-' and
lowered its rating on the company's second-lien debt to 'CCC-' from
'CCC'. S&P's '3' and '6' recovery ratings on the first- and
second-lien debt, respectively, are unaffected. The outlook is
negative.
"The rating action reflects the company's constrained liquidity,
elevated leverage, and our expectation that its cash flow deficit
may persist in 2021. The downgrade and negative outlook reflect
Viant Medical Holdings Inc.'s already constrained liquidity
position, following a challenging transition to a new revenue cycle
management system in its Advanced Surgical & Orthopedics (AS&O)
business in 2019, and our expectation that the coronavirus-related
disruption will increase leverage and may deplete the company's
liquidity even further with the reduction in revenues," S&P said.
The negative outlook reflects the risk that Viant's liquidity may
become constrained in the latter half of 2020 if the pandemic
repercussions are more severe than S&P currently anticipates.
"We could downgrade the rating if the company is unable to maintain
access to its revolver, most likely due to operating
underperformance that results in covenant tightness. We could also
lower the rating if the company's seem likely to exceed our current
estimate of deficits in 2020, leading us to believe a liquidity
crisis is likely within the next year," S&P said.
"We could revise the outlook to stable if it becomes more certain
that the company has sufficient liquidity to weather the impact of
the pandemic and we become more comfortable it can improve its cash
generation in 2021 after the pandemic-related uncertainty
dissipates," the rating agency said.
VILLAGE EAST: May Continue Using Cash Collateral Through May 31
---------------------------------------------------------------
Judge Joan Lloyd of the U.S. Bankruptcy Court for the Western
District of Kentucky authorized Village East, Inc. to continue to
use all cash collateral in the ordinary course of its business
through May 31, 2020.
A final hearing for the use of cash collateral will be held on May
26, 2020 at 10:00 a.m.
As adequate protection of its interest in the cash collateral,
Citizens Union Bank is deemed to have continued security interests
in all of the Debtor's inventory, equipment, accounts, other rights
to payment and performance, and general intangibles, whether then
existing or thereafter arising, whether then owned or thereafter
acquired, and all products and proceeds thereof, whether pre- or
post-petition, to the extent and in the order of priority of their
respective security interests as existed in the cash collateral
prior to commencement of the Debtor's bankruptcy case.
A copy of the Order is available for free at https://is.gd/oDu92I
from PacerMonitor.com.
About Village East
Village East, Inc. -- https://www.villageeastcommunity.com/ -- is a
Kentucky nonprofit corporation that operates a senior living
community. It offers assisted living apartments, independent
living patio homes, and apartments for Seniors. The company
formerly does business as Middletown Christian Village, Inc.
Village East sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Ky. Case No. 20-31144) on April 9, 2020. The
petition was signed by Tina Newman, executive director. The case
is assigned to Judge Joan A. Lloyd. The Debtor is represented by
Charity S. Bird, Esq. at KAPLAN JOHNSON ABATE & BIRD LLP. At the
time of filing, the Debtor had $8,143,599 in assets and $9,247,199
in liabilities.
VORNADO REALTY: Egan-Jones Lowers Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 20, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Vornado Realty Trust to BB+ from BBB+.
Vornado Realty Trust is a real estate investment trust formed in
Maryland, with its primary office in New York City.
WABASH NATIONAL: S&P Lowers ICR to 'BB-'; Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Wabash
National Corp. to 'BB-' from 'BB' and its issue-level rating on the
company's first-lien term loan to 'BB' from 'BB+'. In addition, S&P
lowered its issue-level rating on the company's $325 million senior
unsecured notes to 'B' from 'B+'. The recovery ratings remain '2'
and '6', respectively.
"We anticipate weakened credit metrics over the near term, driven
by significant declines in trailer demand. The weakened U.S.
economy and the impact of COVID-19 have likely exacerbated the
previously anticipated downturn in trailer demand this year. As a
result, we assume revenue will decline across all three of Wabash
National Corp.'s business segments. We assume EBITDA margin
deterioration will be limited compared to previous cyclical
downturns, due to the portion of variable expenses in the company's
cost structure. Overall, we expect adjusted leverage to
significantly increase in 2020 and later improve as industry demand
rebounds," S&P said.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
The negative outlook on Wabash reflects the risk of increasing
leverage in 2020 and the uncertainty related to the impact of
COVID-19, a U.S. recession, and timing of an eventual rebound in
the broader trailer market on Wabash's operating performance.
"Although not incorporated in our base-case forecast, we could
lower our rating on Wabash if we believe debt to EBITDA will exceed
4x over a sustained period into 2021 or if we believe FOCF to debt
will remain below 10% on a sustained basis. This could occur if,
for example, the cyclical North American trailer market is weaker
than we anticipate or the industry experiences a prolonged
downturn," S&P said.
"We could revise our outlook to stable if end-market conditions
stabilize, the company's leverage declines toward 3x, and free
operating cash flow to debt sustainably increases toward 15%," the
rating agency said.
WINSTEAD'S COMPANY: Cash Collateral Use Continued Through May 30
----------------------------------------------------------------
Judge Robert Berger of the U.S. Bankruptcy Court for the District
of Kansas authorized Winstead's Company to use cash collateral and
inventory on a temporary basis through May 30, 2020 to pay all
expenses set forth in the budget, including payment of fees owing
to the U.S. Trustee.
As adequate protection for the use of cash collateral, the Debtor
is directed to pay Citizen's Bank &Trust Company $5,000 per month.
Each of the Creditors is granted replacement security interests in
and liens 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 but only to
the extent of the validity and priority of such interests, liens,
or security interests, if any. The priority of the Replacement
Liens shall be in the same priority as each of the Creditors
pre-petition interests, liens and security interests in similar
property. They are 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.
A final hearing will be conducted on May 21, 2020 at 1:320 p.m. to
consider Debtor's motion on further cash collateral use and any
objection thereto filed by May 15.
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.
WIREPATH LLC: Moody's Alters Outlook on B3 CFR to Negative
----------------------------------------------------------
Moody's Investors Service affirmed Wirepath LLC's (dba "SnapAV") B3
Corporate Family Rating and B3-PD Probability of Default Rating. At
the same time, Moody's downgraded the company's senior secured
first lien bank credit facilities to B3 from B2. The outlook was
changed to negative from stable.
The anticipated disruption from the coronavirus outbreak on new
housing starts and consumer demand for high end home electronics
will reduce SnapAV's earnings and weaken the company's liquidity
during 2020. High leverage, the ongoing integration of Control4 and
associated restructuring costs heighten SnapAV's susceptibility to
the economic recession. Nevertheless, the ratings affirmation
reflects the company's adequate liquidity during this period of
economic stress and expected recovery in operating performance in
2021.
The downgrade of SnapAV's senior secured first lien ratings
reflects the company's all first lien debt capital structure as a
result of the postponement in placement of the proposed $100
million senior secured second lien term loan due to challenging
market conditions, which could persist for a prolonged period.
Ratings Affirmed:
Issuer: Wirepath LLC
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Ratings Downgraded:
Issuer: Wirepath LLC
Senior Secured 1st Lien Revolving Credit Facility, Downgraded to B3
(LGD3) from B2 (LGD3)
Senior Secured 1st Lien Term Loan, Downgraded to B3 (LGD3) from B2
(LGD3)
Outlook Actions:
Issuer: Wirepath LLC
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
SnapAV's B3 CFR reflects the company's high debt-to-EBITDA leverage
of about 8.2x as of December 27, 2019, negative free cash flow due
to acquisition expenses and reduced earnings attributed to certain
operational challenges, and the risk associated with the continuing
integration of Control4. The ratings are also constrained by
SnapAV's exposure to macroeconomic swings in the form of housing
market strength and consumer discretionary spend. Moody's expects a
significant decline in demand for the company's products as
consumers suspend high ticket discretionary purchases during the
economic recession. This will result in significantly weaker credit
metrics in 2020, however SnapAV is expected to prudently manage its
expenses and reduce capex to limit cash burn and preserve
liquidity. Moody's expects that with the start of the economic
recovery, SnapAV's metrics and free cash flow will gradually return
to the levels consistent with the rating. The ratings also consider
corporate governance considerations, which include SnapAV's private
equity ownership, history of debt funded acquisitions and tolerance
for high financial leverage.
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 home and small
business audio visual equipment sector is affected by this shock
given its sensitivity to business and consumer demand and
sentiment. More specifically, the weaknesses in SnapAV's credit
profile, including its exposure to global economies and
discretionary consumer spending have left it vulnerable to shifts
in market sentiment in these unprecedented operating conditions and
SnapAV 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 SnapAV of the breadth
and severity of the shock, and the broad deterioration in credit
quality it has triggered.
The ratings are supported by SnapAV's strong market presence and
the enhancement of scale, global distribution and market share with
the acquisition of Control4. SnapAV's direct-to-integrator sales
model is designed to eliminate the risk of intermediation by
lower-cost retail providers by replacing traditional design,
manufacturing, and distribution roles with a fully integrated
platform based on an efficient e-commerce platform. Moody's
believes that smart home industry has a favorable long-term outlook
as consumers embrace new technology that improve connectivity and
quality of life.
The negative outlook reflects Moody's expectation that SnapAV's
operating performance will deteriorate over the next several
quarters as a result of weakening consumer and business sentiment
arising from the economic recession. While leverage could exceed
10x with negative cash flow during 2020, Moody's expects a gradual
recovery after the pandemic abates which should return leverage to
below 7.5x by the end of 2022.
Moody's views SnapAV's liquidity as adequate, supported by about
$62 million of cash on the balance sheet as of March 31, 2020,
which should cover the expected cash outflow in 2020, including a
$6.8 million mandatory debt amortization. The company's $60 million
revolver has been fully drawn as of March 31, 2020. Moody's does
not expect the company to repay the revolver in 2020. The revolver
has a financial covenant: a static 8.15x first lien net leverage
maximum, tested when borrowings exceed 35% of the revolver
commitment. Given the full utilization of the revolver and the
substantial rise in leverage expected over the next several months,
the covenant could require an amendment from lenders. Ratings
pressure will arise if SnapAV is not able to obtain such a waiver
if necessary.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if SnapAV experiences higher than
anticipated revenue decline, margin deterioration or cash burn that
will result in weak liquidity.
Although unlikely in the near term, the ratings could be upgraded
if the company is able to successfully integrate Control4 while
maintaining strong levels of revenue and EBITDA growth such that
leverage is expected to be maintained below 5.5x and free cash flow
to debt is maintained above 5%.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Wirepath LLC (dba SnapAV) is a technology-enabled, value-added
wholesale supplier and distributor of products and services to
integrators in, primarily, the home and small business audio visual
equipment sector. SnapAV, which generated $763 million of revenues
(pro forma for the acquisition of Control4) in fiscal 2019, is
owned by funds affiliated with private equity sponsor Hellman &
Friedman. The company is headquartered in Charlotte, NC.
WOLVERINE WORLD WIDE: S&P Downgrades ICR to 'BB'; Outlook Negative
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Rockford,
Mich.-based footwear seller Wolverine World Wide Inc. (WWW) to 'BB'
from 'BB+'.
S&P is affirming its 'BBB-' issue-level rating on the company's
first-lien credit facility despite the issuer downgrade due to the
rating cap of 'BBB-' on secured debt of speculative-grade issuers.
The recovery rating remains '1', indicating S&P's expectation for
very high (90%-100%; rounded estimate 95%) recovery in the event of
a payment default.
At the same time, S&P is lowering its rating on the company's
unsecured notes to 'BB' from 'BB+'. The recovery rating remains
'4', indicating S&P's expectation for average (30%-50%; rounded
estimate 40%) recovery in the event of a payment default.
S&P expects the company's credit metrics to rapidly deteriorate in
2020, with lingering weakness through 2021. It believes a global
recession and a decline in consumer spending because of the
COVID-19 pandemic will negatively affect WWW's sales and
profitability. Although the company had a successful 2019 holiday
season and performed well the first two months of 2020, its
aggressive debt-funded share repurchases in 2019 left the company
with little room to weather the COVID-19 pandemic at the 'BB+'
rating level. The company ended 2019 with adjusted leverage in the
mid-3x area (mid- to high-2x area, excluding the approximately $80
million environmental mitigation cost accrual). S&P now forecasts
the company's leverage will peak above 4x in 2020 and will be
sustained in the 3x area in 2021. All of WWW's own retail stores
and most of its key customers' stores are closed. The company's and
its wholesale partners' digital channels remain open-–and demand
is growing in the double-digit percentsin this channel-–but,
because it represents about 30% of the company's overall revenue,
it will not offset the lost sales from the closed brick-and-mortar
stores. Additionally, S&P expects the second half of the year to be
weak as well, even as stores reopen, because wholesale customers
are reducing orders for fall 2020. S&P estimates the company's
wholesale revenue could drop as much as 50% in 2020. Longer term,
key retailers' potential inability to recover from the fallout of
the pandemic and weak consumer demand in a recession could further
impair WWW's recovery in 2021, which would lead to adjusted
leverage sustained above 4x.
The negative outlook reflects the potential for a lower rating if
S&P believes the company's leverage will be sustained above 4x in
2021.
"We could lower our rating if the COVID-19 pandemic's effect on WWW
is worse than we currently forecast. Prolonged store closures, low
consumer demand for the company's products, and potential
disruption from key customers not surviving the recession could
result in weaker cash flow generation for 2020 and 2021. This could
lead to WWW's adjusted leverage to be sustained above 4x in 2021,"
S&P said.
"We could revise the outlook to stable if WWW can weather the
pandemic and return to growth with leverage below 4x in 2021," S&P
said.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
ABBVIE INC ABBV US 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB 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 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 ABBVEUR EU 89,115.0 (8,172.0) 33,934.0
ABBVIE INC 4AB QT 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
AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2)
AMERICAN AIR-BDR AALL34 BZ 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL AV 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL TE 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G SW 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G GZ 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL11EUR EU 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G QT 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL US 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL* MM 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G GR 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G TH 58,580.0 (2,636.0) (12,038.0)
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 ADSK AV 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* MM 6,179.3 (139.1) (559.9)
AUTODESK INC AUD QT 6,179.3 (139.1) (559.9)
AUTOZONE INC AZO US 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 TH 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 GR 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 GZ 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO AV 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 TE 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO* MM 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZOEUR EU 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 QT 12,863.7 (1,711.1) (479.0)
AUTOZONE INC-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 BHVNEUR EU 344.3 (7.4) 262.1
BIOHAVEN PHARMAC 2VN TH 344.3 (7.4) 262.1
BIOHAVEN PHARMAC BHVN US 344.3 (7.4) 262.1
BIOHAVEN PHARMAC 2VN GR 344.3 (7.4) 262.1
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)
BJ'S WHOLESALE C BJ US 5,269.8 (54.3) (441.4)
BLOOM ENERGY C-A 1ZB GR 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A BE1EUR EU 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A 1ZB QT 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A 1ZB TH 1,322.6 (167.9) (101.3)
BLOOM ENERGY C-A BE US 1,322.6 (167.9) (101.3)
BLUE BIRD CORP 4RB GR 360.9 (67.9) 29.9
BLUE BIRD CORP 4RB GZ 360.9 (67.9) 29.9
BLUE BIRD CORP BLBDEUR EU 360.9 (67.9) 29.9
BLUE BIRD CORP BLBD US 360.9 (67.9) 29.9
BOEING CO-BDR BOEI34 BZ 143,075.0 (9,360.0) 16,509.0
BOEING CO-CED BA AR 143,075.0 (9,360.0) 16,509.0
BOEING CO-CED BAD AR 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BAEUR EU 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA EU 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO GR 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BOE LN 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO TH 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BOEI BB 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA US 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA SW 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA* MM 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA TE 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA CI 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA AV 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BAUSD SW 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO GZ 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO QT 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE TR TCXBOE AU 143,075.0 (9,360.0) 16,509.0
BOMBARDIER INC-B BBDBN MM 24,972.0 (5,911.0) (1,832.0)
BRAINSTORM CELL BCLI US 6.5 (12.2) (14.3)
BRAINSTORM CELL GHDN TH 6.5 (12.2) (14.3)
BRAINSTORM CELL GHDN GZ 6.5 (12.2) (14.3)
BRAINSTORM CELL GHDN QT 6.5 (12.2) (14.3)
BRAINSTORM CELL BCLIEUR EU 6.5 (12.2) (14.3)
BRINKER INTL BKJ GR 2,585.4 (574.7) (204.7)
BRINKER INTL EAT US 2,585.4 (574.7) (204.7)
BRINKER INTL BKJ QT 2,585.4 (574.7) (204.7)
BRINKER INTL EAT2EUR EU 2,585.4 (574.7) (204.7)
BRP INC/CA-SUB V DOO CN 3,767.1 (589.7) (211.9)
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 B15A GZ 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOOEUR EU 3,767.1 (589.7) (211.9)
CADIZ INC CDZI US 76.7 (82.1) 11.3
CADIZ INC CDZIEUR EU 76.7 (82.1) 11.3
CADIZ INC 2ZC GR 76.7 (82.1) 11.3
CAMPING WORLD-A CWH US 3,376.2 (159.2) 394.7
CAMPING WORLD-A C83 GR 3,376.2 (159.2) 394.7
CAMPING WORLD-A CWHEUR EU 3,376.2 (159.2) 394.7
CAMPING WORLD-A C83 TH 3,376.2 (159.2) 394.7
CAMPING WORLD-A C83 QT 3,376.2 (159.2) 394.7
CATASYS INC CATS US 23.9 (23.9) 6.3
CATASYS INC HY1N GR 23.9 (23.9) 6.3
CATASYS INC CATSEUR EU 23.9 (23.9) 6.3
CATASYS INC HY1N GZ 23.9 (23.9) 6.3
CDK GLOBAL INC C2G QT 2,935.9 (627.0) 314.0
CDK GLOBAL INC CDK* MM 2,935.9 (627.0) 314.0
CDK GLOBAL INC 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 CBB US 2,653.8 (140.0) (119.7)
CINCINNATI BELL CIB1 GR 2,653.8 (140.0) (119.7)
CINCINNATI BELL CBBEUR EU 2,653.8 (140.0) (119.7)
CITRIX SYS BDR C1TX34 BZ 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX TH 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS AV 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS TE 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS US 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX GR 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS* MM 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX GZ 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXSEUR EU 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX QT 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS SW 4,331.2 (218.9) (413.0)
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
COGENT COMMUNICA CCOI* MM 932.1 (203.7) 386.0
COMMUNITY HEALTH CG5 QT 15,445.0 (1,634.0) 1,195.0
COMMUNITY HEALTH CG5 TH 15,445.0 (1,634.0) 1,195.0
CYTODYN INC CYDY US 38.8 (4.4) (16.4)
CYTODYN INC CYDY GR 38.8 (4.4) (16.4)
CYTOKINETICS INC CYTK US 289.8 (10.9) 207.7
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
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 DBDEUR EU 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 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 2,185.5 (236.4) 209.4
DINE BRANDS GLOB IHP GR 2,185.5 (236.4) 209.4
DOCEBO INC DCBO CN 20.3 (18.6) (12.9)
DOCEBO INC DCBOF US 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 SW 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV TH 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZEUR EU 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV GZ 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV GR 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZ US 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZ AV 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZ* MM 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV QT 1,389.9 (3,392.2) 342.2
DOMO INC- CL B 1ON GR 216.7 (49.2) 18.2
DOMO INC- CL B DOMOEUR EU 216.7 (49.2) 18.2
DOMO INC- CL B 1ON GZ 216.7 (49.2) 18.2
DOMO INC- CL B 1ON TH 216.7 (49.2) 18.2
DOMO INC- CL B DOMO US 216.7 (49.2) 18.2
DUNKIN' BRANDS G DNKN US 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB GR 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB TH 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G DNKNEUR EU 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB QT 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB GZ 3,877.3 (636.3) 287.2
EMISPHERE TECH EMIS US 5.2 (155.3) (1.4)
FLEXION THERAPEU F02 TH 217.6 (20.1) 159.5
FLEXION THERAPEU F02 QT 217.6 (20.1) 159.5
FLEXION THERAPEU FLXNEUR EU 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 3I5 GR 1,250.0 (179.0) 97.0
FRONTDOOR IN FTDREUR EU 1,250.0 (179.0) 97.0
GLOBALSCAPE INC 32X GR 34.6 (36.3) (7.5)
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 75.9 (30.0) 13.9
GOOSEHEAD INSU-A 2OX GR 75.9 (30.0) 13.9
GOOSEHEAD INSU-A GSHDEUR EU 75.9 (30.0) 13.9
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 GR 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB US 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRBEUR EU 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB QT 3,452.4 (318.4) (35.7)
HCA HEALTHC-BDR H1CA34 BZ 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH TH 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCA US 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH GR 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCA* MM 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCAEUR EU 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH TE 45,421.0 (703.0) 3,997.0
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 HPQD AR 31,656.0 (1,634.0) (6,390.0)
HEWLETT-CEDEAR HPQC 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 HLT* MM 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HLT US 14,957.0 (472.0) (778.0)
HILTON WORLDWIDE HLTEUR EU 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 HD CI 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 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 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-CED HDD AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HDC AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HD AR 51,236.0 (3,116.0) 1,435.0
HP COMPANY-BDR HPQB34 BZ 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP TH 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP GR 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ US 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ TE 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ CI 31,656.0 (1,634.0) (6,390.0)
HP INC HPQUSD SW 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP GZ 31,656.0 (1,634.0) (6,390.0)
HP INC HPQEUR EU 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ* MM 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ 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)
IAA INC IAA US 2,151.2 (137.2) 216.3
IAA INC 3NI GR 2,151.2 (137.2) 216.3
IAA INC IAA-WEUR EU 2,151.2 (137.2) 216.3
IMMUNOGEN INC IMU TH 298.8 (4.1) 213.3
IMMUNOGEN INC IMGN US 298.8 (4.1) 213.3
IMMUNOGEN INC IMU GR 298.8 (4.1) 213.3
IMMUNOGEN INC IMGNEUR EU 298.8 (4.1) 213.3
IMMUNOGEN INC IMU GZ 298.8 (4.1) 213.3
IMMUNOGEN INC IMU QT 298.8 (4.1) 213.3
IMMUNOGEN INC IMGN* MM 298.8 (4.1) 213.3
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 IX 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSES EB 18.7 (16.4) (20.9)
KINIKSA PHARMA-A KNSA US 226.1 (382.5) 213.8
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 GR 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 TH 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 LII US 2,128.4 (318.3) 330.5
LENNOX INTL INC LXI GR 2,128.4 (318.3) 330.5
LENNOX INTL INC LII* MM 2,128.4 (318.3) 330.5
LENNOX INTL INC LXI TH 2,128.4 (318.3) 330.5
LENNOX INTL INC LII1EUR EU 2,128.4 (318.3) 330.5
LIVEXLIVE MEDIA LIVX US 55.0 (1.9) (21.9)
MASCO CORP MSQ TH 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ GZ 4,840.0 (165.0) 1,241.0
MASCO CORP MAS US 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ GR 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ QT 4,840.0 (165.0) 1,241.0
MASCO CORP MAS1EUR EU 4,840.0 (165.0) 1,241.0
MASCO CORP MAS* MM 4,840.0 (165.0) 1,241.0
MASCO CORP-BDR M1AS34 BZ 4,840.0 (165.0) 1,241.0
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 MCD SW 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD US 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD* MM 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO GR 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD CI 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCD AV 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCDUSD SW 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO GZ 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MCDEUR EU 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP 0R16 LN 47,510.8 (8,210.3) (63.1)
MCDONALDS CORP MDO TH 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-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 MOT TE 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MSI US 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA GR 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MSI1EUR EU 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA GZ 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MOSI AV 10,642.0 (683.0) 739.0
MOTOROLA SOLUTIO MTLA QT 10,642.0 (683.0) 739.0
MSCI INC 3HM GR 3,911.8 (354.3) 821.5
MSCI INC MSCI US 3,911.8 (354.3) 821.5
MSCI INC 3HM SW 3,911.8 (354.3) 821.5
MSCI INC 3HM GZ 3,911.8 (354.3) 821.5
MSCI INC 3HM QT 3,911.8 (354.3) 821.5
MSCI INC MSCI* MM 3,911.8 (354.3) 821.5
MSCI INC-BDR M1SC34 BZ 3,911.8 (354.3) 821.5
MSG NETWORKS- A MSGN US 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 QT 797.6 (612.0) 210.8
MSG NETWORKS- A MSGNEUR EU 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 TH 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 GR 797.6 (612.0) 210.8
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
NATIONAL CINEMED NCMI US 1,130.0 (121.2) 134.8
NATIONAL CINEMED XWM GR 1,130.0 (121.2) 134.8
NATIONAL CINEMED NCMIEUR EU 1,130.0 (121.2) 134.8
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 QT 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR GZ 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
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 GZ 78.7 (3.6) 48.1
OCULAR THERAPEUT 0OT TH 78.7 (3.6) 48.1
OCULAR THERAPEUT OCULEUR EU 78.7 (3.6) 48.1
OCULAR THERAPEUT 0OT GR 78.7 (3.6) 48.1
OCULAR THERAPEUT OCUL US 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
PAPA JOHN'S INTL PZZA US 730.7 (59.7) (26.4)
PAPA JOHN'S INTL PP1 GR 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
PHILIP MORRI-BDR PHMO34 BZ 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1EUR EU 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMI SW 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM US 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 GR 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1CHF EU 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1 TE 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 TH 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 0M8V LN 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMOR AV 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMIZ IX 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMIZ EB 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 GZ 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM* MM 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 QT 37,494.0 (11,063.0) 277.0
PLANET FITNESS-A 3PL QT 1,717.2 (707.8) 394.7
PLANET FITNESS-A PLNT1EUR EU 1,717.2 (707.8) 394.7
PLANET FITNESS-A PLNT US 1,717.2 (707.8) 394.7
PLANET FITNESS-A 3PL TH 1,717.2 (707.8) 394.7
PLANET FITNESS-A 3PL GR 1,717.2 (707.8) 394.7
PPD INC PPD US 5,556.2 (2,668.1) (288.1)
PURPLE INNOVATIO PRPL US 147.7 (4.7) 27.3
QUANTUM CORP QMCO US 165.3 (195.5) (16.1)
QUANTUM CORP QTM1EUR EU 165.3 (195.5) (16.1)
RADIUS HEALTH IN RDUS US 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 TH 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 QT 219.2 (42.3) 141.8
RADIUS HEALTH IN RDUSEUR EU 219.2 (42.3) 141.8
RADIUS HEALTH IN 1R8 GR 219.2 (42.3) 141.8
RECRO PHARMA INC REPH US 110.5 (6.7) 53.7
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 REV* MM 2,980.6 (1,221.2) 154.5
REVLON INC-A REVEUR EU 2,980.6 (1,221.2) 154.5
REVLON INC-A RVL1 TH 2,980.6 (1,221.2) 154.5
REYNOLDS CONSUME 3ZT GZ 4,160.0 (818.0) 192.0
REYNOLDS CONSUME 3ZT QT 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
REYNOLDS CONSUME REYN US 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 SBJ TH 9,759.9 (3,651.0) (714.0)
SBA COMM CORP 4SB GZ 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 SBAC* MM 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 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 SHLX US 2,019.0 (749.0) 313.0
SIRIUS XM HO-BDR SRXM34 BZ 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO GR 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO TH 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN SIRI US 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN SIRI AV 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO GZ 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN SIRIEUR EU 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO QT 10,935.0 (747.0) (2,219.0)
SIX FLAGS ENTERT 6FE GR 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT SIXEUR EU 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT 6FE QT 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT 6FE TH 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT SIX US 2,720.5 (323.6) (168.7)
SLEEP NUMBER COR SNBR US 1,013.8 (155.9) (422.3)
SLEEP NUMBER COR SL2 GR 1,013.8 (155.9) (422.3)
SLEEP NUMBER COR SNBREUR EU 1,013.8 (155.9) (422.3)
SOCIAL CAPITAL IPOC/U US - - -
STARBUCKS CORP SRB TH 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX* MM 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB GR 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX CI 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX AV 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX TE 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUXEUR EU 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX IM 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP TCXSBU AU 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUXUSD SW 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB GZ 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP 0QZH LI 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX PE 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX US 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB QT 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX SW 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-BDR SBUB34 BZ 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-CEDEAR SBUX AR 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-CEDEAR SBUXD AR 27,478.9 (7,532.9) (2,515.9)
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 R5WP GR 33.0 (0.2) 12.7
TRILLIUM THERAPE TRIL CN 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP TH 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP GZ 33.0 (0.2) 12.7
TRILLIUM THERAPE TRIL US 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 2,971.6 (209.4) 572.4
UNISYS CORP UISEUR EU 2,971.6 (209.4) 572.4
UNISYS CORP UISCHF EU 2,971.6 (209.4) 572.4
UNISYS CORP USY1 TH 2,971.6 (209.4) 572.4
UNISYS CORP USY1 GR 2,971.6 (209.4) 572.4
UNISYS CORP UIS1 SW 2,971.6 (209.4) 572.4
UNISYS CORP USY1 GZ 2,971.6 (209.4) 572.4
UNISYS CORP USY1 QT 2,971.6 (209.4) 572.4
UNITI GROUP INC 8XC GR 5,017.0 (1,483.2) -
UNITI GROUP INC 8XC TH 5,017.0 (1,483.2) -
UNITI GROUP INC UNIT US 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 VRSN US 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS GR 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSN* MM 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS GZ 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSNEUR EU 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS TH 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS QT 1,753.9 (1,409.1) 229.8
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 GR 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
WATERS CORP WAZ TH 2,666.5 (338.0) 776.7
WATERS CORP WAT US 2,666.5 (338.0) 776.7
WATERS CORP WAZ GR 2,666.5 (338.0) 776.7
WATERS CORP WAT* MM 2,666.5 (338.0) 776.7
WATERS CORP WAZ QT 2,666.5 (338.0) 776.7
WATERS CORP WATEUR EU 2,666.5 (338.0) 776.7
WATERS CORP-BDR WATC34 BZ 2,666.5 (338.0) 776.7
WAYFAIR INC- A W US 2,953.0 (944.2) (234.4)
WAYFAIR INC- A 1WF GZ 2,953.0 (944.2) (234.4)
WAYFAIR INC- A 1WF QT 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 W3U TH 8,758.5 (39.5) (171.1)
WESTERN UNION WU* MM 8,758.5 (39.5) (171.1)
WESTERN UNION WUEUR EU 8,758.5 (39.5) (171.1)
WESTERN UNION W3U GZ 8,758.5 (39.5) (171.1)
WESTERN UNION WU US 8,758.5 (39.5) (171.1)
WESTERN UNION W3U QT 8,758.5 (39.5) (171.1)
WIDEOPENWEST INC WU5 GR 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WU5 TH 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WU5 QT 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WOW1EUR EU 2,471.6 (245.9) (108.7)
WIDEOPENWEST INC WOW US 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)
WINMARK CORP WINA US 59.9 (29.8) 29.9
WINMARK CORP GBZ GR 59.9 (29.8) 29.9
WORKHORSE GROUP WKHS US 50.7 (34.9) (15.5)
WW INTERNATIONAL WW US 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 GR 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 GZ 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WTW AV 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WTWEUR EU 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 QT 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 TH 1,633.7 (700.8) (127.6)
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 TH 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
YELLOW PAGES LTD YLWDF US 326.9 (16.7) 75.2
YELLOW PAGES LTD YEUR EU 326.9 (16.7) 75.2
YELLOW PAGES LTD YMI GR 326.9 (16.7) 75.2
YUM! BRANDS -BDR YUMR34 BZ 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR TH 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR GR 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM* MM 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUMUSD SW 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR GZ 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM US 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM AV 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR TE 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUMEUR EU 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR QT 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM SW 6,085.0 (8,229.0) 491.0
*********
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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***