/raid1/www/Hosts/bankrupt/TCR_Public/200507.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, May 7, 2020, Vol. 24, No. 127
Headlines
ACPRODUCTS INC: S&P Alters Outlook to Negative, Affirms 'B' ICR
ADVANTAGE SALES: Bank Debt Trades at 20% Discount
ADVISOR GROUP: Bank Debt Trades at 17% Discount
AK BUILDERS: June 23 Plan Confirmation Hearing Set
AMC ENTERTAINMENT: Bank Debt Trades at 26% Discount
AMERICAN ENERGY: Moody's Cuts CFR to Ca & Sr. Sec. Rating to C
AMERICAN WOODMARK: S&P Alters Outlook to Neg., Affirms 'BB' ICR
ANICHINI INC: UST Appoints Levine as Chapter 11 Trustee
APEX ENERGY: Court Conditionally Approves Disclosure Statement
APOLLO ENDOSURGERY: Posts $10.3 Million Net Loss in First Quarter
AQUABOUNTY TECHNOLOGIES: Incurs $3.11M Net Loss in First Quarter
ARBOR PHARMACEUTICALS: S&P Lowers ICR to 'B-' on Higher Leverage
ARETEC GROUP: Bank Debt Trades at 16% Discount
AVALIGN HOLDINGS: Moody's Alters Outlook on B3 CFR to Negative
AVIS BUDGET: Bank Debt Trades at 30% Discount
AVSC HOLDING: Bank Debt Trades at 32% Discount
BALL METALPACK: Bank Debt Trades at 26% Discount
BAYSIDE WASTE: U.S. Trustee Unable to Appoint Committee
BCP RAPTOR: Bank Debt Trades at 47% Discount
BENTON ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
BIOPLAN USA: Bank Debt Trades at 30% Discount
BLESSED HOLDINGS: July 21 Hearing on Disclosure Statement
BLUE NILE: Bank Debt Trades at 38% Discount
BLVCK BVLLED: U.S. Trustee Unable to Appoint Committee
BOEING CO: To Cut 15% of Jobs in Commercial Jet Division
BOSS OYSTER: Court Conditionally Approves Disclosure Statement
BR HEALTHCARE: U.S. Trustee Unable to Appoint Committee
BROWN JORDAN: Bank Debt Trades at 24% Discount
BW NHHC: Bank Debt Trades at 57% Discount
CALAIS REGIONAL: Cuts 10% of Full-Time Workers
CASCADE ACQUISITION: U.S. Trustee Unable to Appoint Committee
CENGAGE LEARNING: Bank Debt Trades at 23% Discount
CENTURY ALUMINUM: Files Q1 Form 10-Q; Posts $2.7 Million Net Loss
CHECKOUT HOLDING: Bank Debt Trades at 25% Discount
CHESAPEAKE ENERGY: Reportedly Considering Bankruptcy Filing
CHESAPEAKE ENERGY: S&P Cuts $1.5BB Term Loan Rating to 'CCC'
CLEVELAND-CLIFFS INC: S&P Affirms 'B-' Issuer Credit Rating
CLUBCORP HOLDINGS: Bank Debt Trades at 25% Discount
COLOUROZ INVESTMENT: Bank Debt Trades at 38% Discount
COMPASS GROUP: Moody's Hikes Unsec. Notes to B1, Outlook Stable
COMPASS GROUP: S&P Alters Outlook to Negative, Affirms 'B+' ICR
COSI INC: Bankruptcy Judge Refuses TRO vs. SBA Over PPP
COTY INC: Bank Debt Trades at 16% Discount
COVIA HOLDINGS: Bank Debt Trades at 54% Discount
CP#1109 LLC: Affiliate Guaranty Ensures Creditors to Get 100%
CREATIVE HAIRDRESSERS: In Chapter 11 After Closing 80 Locations
CREATIVE HAIRDRESSERS: Russell Represents Utility Companies
CREATIVE HAIRDRESSERS: Selzer Represents Utility Companies
CREATIVE HAIRDRESSERS: U.S. Trustee Appoints Creditors' Committee
CROSSCODE INC: Case Summary & 20 Largest Unsecured Creditors
CWGS GROUP: Bank Debt Trades at 30% Discount
DANCOR TRANSIT: Says Pandemic Making Situation Worse
DATTO INC: S&P Alters Outlook to Negative, Affirms 'B' ICR
DAVID'S BRIDAL: Bank Debt Trades at 49% Discount
DECO ENTERPRISES: May Continue Using Cash Collateral Through June 3
DI-VERSIFIED LLC: Taps Whigham Tax as Accountant
DIRECTVIEW HOLDINGS: Oasis Capital Reports 9.9% Equity Stake
DUCOMMUN INC: S&P Downgrades ICR to 'B+'; Outlook Stable
ECO-STIM ENERGY: U.S. Trustee Appoints Creditors' Committee
ELITE AUTO: Case Summary & 20 Largest Unsecured Creditors
ENERGY SAVING: U.S. Trustee Unable to Appoint Committee
EVO PAYMENTS: S&P Alters Outlook to Negative, Affims 'B' ICR
FRANK & LUPE II: Seeks Court Approval to Hire A&A Accounting
FUELCELL ENERGY: BioFuels Project Construction Begins
GENERAL ELECTRIC: Aviation Unit to Cut 25% of Workforce
GGP NIMBUS: Bank Debt Trades at 25% Discount
GI DYNAMICS: Crystal Amber Extends Maturity of 2017 Note to May 15
GTT COMMUNICATIONS: Bank Debt Trades at 28% Discount
HARLEY LLC: Seeks Court Approval to Hire Accountant
HOMER CITY: Bank Debt Trades at 47% Discount
IMAGINE CHARTER: Moody's Rates Series 2020A & 2020B Bonds 'Ba2'
J CREW: $182.4MM Bank Debt Trades at 43% Discount
J CREW: Bank Debt Trades at 39% Discount
J. CREW: Moody's Cuts PDR to D-PD on Chapter 11 Filing
JC PENNEY: Bank Debt Trades at 53% Discount
KARISCOM LLC: Seeks Court Approval to Hire Wlezniak Accounting
LEGACY JH762: May 7 Disclosure Statement Hearing Set
LICK INDUSTRIES: To Sell University Property to Pay Chondrite Claim
LIFESCAN GLOBAL: Moody's Cuts CFR to B3 & Alters Outlook to Stable
LIGHTSTONE HOLDCO: Bank Debt Trades at 20% Discount
LINDBLAD EXPEDITIONS: Bank Debt Trades at 23% Discount
LUMASTREAM INC: May 27 Auction of All Assets Set
LUMENTUM HOLDINGS: Bank Debt Trades at 18% Discount
MACON CONCRETE: U.S. Trustee Unable to Appoint Committee
MALIBU CALIFORNIA: Seeks Access to Cash Collateral Through June 27
MAPLE HEIGHTS, OH: Moody's Ups Issuer Rating to B2, Outlook Stable
MATRA PETROLEUM: Assets Sold to Melody, Liquidating Plan Filed
MBH HIGHLAND: June 15 Auction of All Assets Set
MCDERMOTT TECHNOLOGY: Bank Debt Trades at 70% Discount
MCGRAW HILL: Bank Debt Trades at 19% Discount
MERIDIAN MARINA: MDP Sale to Provide Full Recovery for Unsecureds
MICHAELS STORES: Bank Debt Trades at 17% Discount
MILLERS LANE: Exclusivity Period Extended to May 29
MLN US: Bank Debt Trades at 27% Discount
MOOG INC: Moody's Alters Outlook on Ba2 CFR to Negative
MOUNTAIN PROVINCE DIAMONDS: S&P Cuts ICR to CCC-, Outlook Negative
MTN INFRASTRUCTURE: Moody's Alters Outlook on B2 CFR to Negative
MURRAY ENERGY: Bank Debt Trades at 93.3% Discount
NCL CORP: Moody's Rates New Secured Note 'Ba2', Outlook Negative
NEIMAN MARCUS: Bank Debt Trades at 62% Discount
NELSON EDUCATION: Bank Debt Trades at 43% Discount
NORTHWEST COMPANY: U.S. Trustee Appoints Creditors' Committee
OCEAN POWER: Will Receive $890,000 PPP Loan from Santander Bank
OLEUM EXPLORATION: Exclusive Plan Filing Period Extended to June 15
ON MARINE: Exclusivity Period Extended Until July 30
PACE INDUSTRIES: Unsecured Claims Unimpaired in Plan
PAUL A. LOGSDON: Unsecureds to Get 25% Payout in Plan
PETCO ANIMAL: Bank Debt Trades at 34% Discount
PETROCHOICE HOLDINGS: Bank Debt Trades at 18% Discount
PLANTRONICS INC: Bank Debt Trades at 17% Discount
PLH GROUP: Bank Debt Trades at 19% Discount
POWER SOLUTIONS: Swings to $8.2 Million Net Income in 2019
POWERTEAM SERVICES: Moody's Rates $575MM Sr. Sec. Notes 'B3'
PROFESSIONAL DIVERSITY: Lowers Net Loss to $3.8 Million in 2019
PROTEC INSTRUMENT: Unsecureds to Recover Up to 100% in 6 Years
REJUVI LABORATORY: Corso Objects to Debtor's Plan
REJUVI LABORATORY: May 7 Hearing on Corso Plan Set
RENFRO CORP: Bank Debt Trades at 53% Discount
REVLON CONSUMER: Bank Debt Trades at 58% Discount
RIOT BLOCKCHAIN: Reports April 2020 Production Update
RIVERBED TECHNOLOGY: Bank Debt Trades at 19% Discount
ROYAL ALICE: Unsecureds Estimated Percentage Recovery is 100%
RUBY'S FRANCHISE: Trustee Taps Dinsmore & Shohl as Legal Counsel
SCOOBEEZ INC: Amazon Raises Issue of Delay of Effective Date
SEAWORLD PARKS: Bank Debt Trades at 16% Discount
SERTA SIMMONS: Bank Debt Trades at 54% Discount
SHAPPHIRE RESOURCES: Unsecured Creditors Get 20% Dividend in Plan
SKFR LLC: Unsecureds Will Receive 100% of Their Claims
SOUTHERN FOODS: Exclusivity Period Extended Until May 25
STAPLES INC: Bank Debt Trades at 22% Discount
SUMMIT VIEW: Denlingers Want Violations Added to Disclosures
SUPERIOR AIR: JetSuite in Chapter 11 Due to Near Zero Revenues
SYNIVERSE HOLDINGS: Bank Debt Trades at 30% Discount
TAYLOR VILLAS: June 2 Plan & Disclosure Hearing Set
TEEKAY CORP: S&P Affirms 'B+' Long-Term ICR on Contract Strength
TENNECO INC: Bank Debt Trades at 22% Discount
TOWN SPORTS: Bank Debt Trades at 84% Discount
TRANSPLACE HOLDINGS: Bank Debt Trades at 26% Discount
TWEDDLE GROUP: Bank Debt Trades at 62% Discount
TWO GUNS CONSULTING: U.S. Trustee Unable to Appoint Committee
UNIT CORP: Extends Standstill Agreement with BOKF Until May 15
US SILICA: Bank Debt Trades at 45% Discount
VERICAST CORP: Bank Debt Trades at 36% Discount
VILLA VERDE: U.S. Trustee Unable to Appoint Committee
VILLAGE EAST: U.S. Trustee Appoints Creditors' Committee
WINDSTREAM HOLDINGS: Exclusivity Period Extended Until June 22
WINDSTREAM SERVICES: Bank Debt Trades at 45% Discount
WP CPP: Bank Debt Trades at 23% Discount
WP CPP: Moody's Cuts CFR to Caa1 & 1st Lien Sr. Sec. Rating to B3
YIPPIE DOODLE: Exclusivity Period Extended Until June 1
[*] Chapter 11 Debtors Push SBA for PPP Funding
[*] Forbes' List of Major Companies Failing Amid Lockdowns
[*] Neiman, JC Penney Could Join Top 20 Retail Bankruptcies
[*] S&P Alters Outlook on Non-Profit Higher Education Institutions
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
ACPRODUCTS INC: S&P Alters Outlook to Negative, Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed the 'B' issuer credit rating on U.S.-based ACProducts Inc.
At the same time, S&P affirmed its 'B' issue-level ratings on the
company's $1.1 billion first-lien term loan.
"We are revising the outlook on AC Products to negative from stable
because we expect sharply reduced remodeling spending and
homebuilding activity over the next one to two quarters. Efforts to
contain the COVID-19 outbreak has put the U.S. into recession. Our
economists expect GDP to drop nearly 12% peak-to-trough with
unemployment reaching 19% in May. This will hurt the GDP and
consumer spending, particularly for high-ticket discretionary items
such as kitchens and baths," S&P said.
"Also affecting the company's sales, in our view, will be a decline
in the level of U.S. housing starts, which is expected in this
climate. We currently forecast annualized housing starts to drop to
1.1 million in the second and third quarter of 2020, from a 1.3
million pace last year," the rating agency said.
The negative outlook reflects the potential for a deep and
prolonged downturn in housing starts and repair and remodeling
activity to occur in the U.S. S&P expecst most of the disruptions
to housing starts to occur in second- and third-quarters 2020, with
modest recovery beginning in early 2021. However, a longer downturn
would likely result in debt leverage exceeding 7x well into 2021.
S&P could lower the rating over the next 12 months if:
-- The fallout from the coronavirus spread continues and there is
a prolonged reduction in economic activity, particularly a
continued pullback in discretionary consumer spending,
-- Housing starts fell from current levels and repair and
remodeling slowed such that EBITDA generation declined by 20%,
-- Such a decline, would result in debt to EBITDA trending above
7x with reduced interest coverage metrics and negative cash flow
generation.
S&P could revise the outlook back to stable over the next 12 months
if:
-- The recession following the COVID-19 outbreak is shorter in
duration or has less of an impact on new home construction and
repair and remodeling spending,
-- The company has the ability to sustain debt to EBITDA of 6x by
the end of fiscal 2020 and continues levels of positive cash flow
generation.
ADVANTAGE SALES: Bank Debt Trades at 20% Discount
-------------------------------------------------
Participations in a syndicated loan under which Advantage Sales &
Marketing Inc is a borrower were trading in the secondary market
around 80 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $2 billion facility is a term loan. The loan is scheduled to
mature on July 25, 2021. About $1.9 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
ADVISOR GROUP: Bank Debt Trades at 17% Discount
-----------------------------------------------
Participations in a syndicated loan under which Advisor Group
Holdings Inc is a borrower were trading in the secondary market
around 83 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $1.5 billion facility is a term loan. The loan is scheduled to
mature on August 1, 2026. About $1.49 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
AK BUILDERS: June 23 Plan Confirmation Hearing Set
--------------------------------------------------
On Feb. 26, 2020, debtor AK Builders and Coatings, Inc. filed with
the U.S. Bankruptcy Court for the Eastern District of California a
Disclosure Statement referring to a Plan.
On April 17, 2020, Judge Fredrick E. Clement approved the
Disclosure Statement and established the following dates and
deadlines:
* May 12, 2020, is the deadline for creditors and equity
security holders to accept or reject the Plan.
* May 19, 2020, is the deadline for the Debtor to file with the
Court the tabulation of ballots.
* May 19, 2020, is the deadline for the Debtor to file the
motion to confirm the Chapter 11 Plan setting it for hearing on
June 23, 2020.
* June 9, 2020, is the deadline for a creditor or equity
security holder to file opposition to the Plan.
* June 16, 2020, is the deadline for Debtor to file any reply.
A full-text copy of the order dated April 17, 2020, is available at
https://tinyurl.com/y9vkcug7 from PacerMonitor at no charge.
Attorney for the Debtor:
Michael M. Noble
2017 5th Street
Sacramento, CA 95818
Tel: (916) 370-7742
E-mail: msntaxbk@aol.com
About AK Builders & Coatings
AK Builders and Coating Inc. is a home building contractor that
provides wine cellar design, custom home design, green construction
and more. The Company previously sought bankruptcy protection on
July 26, 2017 (Bank. E.D. Cal. Case No. 17-24904) and Aug. 23, 2016
(Bankr. E.D. Cal. Case No. 16-25556).
AK Builders and Coating, Inc., based in Sacramento, CA, filed a
Chapter 11 petition (Bankr. E.D. Cal. Case No. CA 95818) on July
29, 2019. In the petition signed by Alifeleti K. Vaituulala,
president, the Debtor was estimated to have $1 million to $10
million in both assets and liabilities. The Hon. Robert S. Bardwil
is the presiding judge. Michael M. Noble, Esq., serves as
bankruptcy counsel to the Debtor.
AMC ENTERTAINMENT: Bank Debt Trades at 26% Discount
---------------------------------------------------
Participations in a syndicated loan under which AMC Entertainment
Holdings Inc is a borrower were trading in the secondary market
around 74 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $2 billion facility is a term loan. About $1.98 billion of
the loan remains outstanding. The loan is scheduled to mature on
April 22, 2026.
The Company's country of domicile is United States.
AMERICAN ENERGY: Moody's Cuts CFR to Ca & Sr. Sec. Rating to C
--------------------------------------------------------------
Moody's Investors Service downgraded American Energy -- Permian
Basin, LLC's Probability of Default Rating to Ca-PD from Caa1-PD
and also appended the PDR with a "/LD" designation to indicate a
limited default as Moody's believes it is likely a default has
occurred or will occur in the very near future, under Moody's
definition of default. Concurrently, Moody's downgraded AEPB's
Corporate Family Rating to Ca from Caa1 and the senior secured
notes rating to C from Caa2. The ratings outlook was changed to
negative from stable.
The company did not make its interest payment due April 1, 2020 on
its senior secured notes due 2024 and the 30-day grace period has
expired.
Downgrades:
Issuer: American Energy - Permian Basin, LLC
Probability of Default Rating, Downgraded to Ca-PD/LD from Caa1-PD
Corporate Family Rating, Downgraded to Ca from Caa1
Senior Secured Notes, Downgraded to C (LGD5) from Caa2 (LGD5)
Outlook Actions:
Issuer: American Energy - Permian Basin, LLC
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
AEPB's downgrade to Ca CFR from Caa1 is driven by the company's
non-payment of interest, the potential for balance sheet
restructuring due to unsupportive capital markets combined with the
challenging macro commodity price environment, and also Moody's
view on potential overall recovery.
Moody's considers AEPB's non-payment of its interest beyond the
30-day grace period a default. As noted, Moody's appended the Ca-PD
PDR with a "/LD" designation indicating limited default.
AEBP's negative outlook reflects the company's likelihood of
balance sheet restructuring in light of its inability to meet its
debt service obligations.
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 AEPB's credit profile have left it vulnerable to
shifts in market sentiment in these unprecedented operating
conditions and AEPB remains vulnerable to the outbreak continuing
to spread and commodity 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 AEPB of the breadth and severity
of the commodity demand and supply shocks, and the broad
deterioration in credit quality it has triggered.
AEPB's liquidity is weak. AEPB's non-payment of interest has likely
resulted in a breach of its revolving credit agreement terms.
Moody's believes that the company's wholly owned subsidiary's
secured credit facility has significant borrowings outstanding and
that it could be at risk of a reduction in the borrowing base at
the next redetermination. The credit agreement also requires that
the total debt/EBITDAX ratio remains below 4x and the current ratio
remains above 1x. Moody's forecasts that there will be limited
headroom for future compliance with these covenants based on
current oil and gas prices.
AEPB's 2024 senior secured notes are rated C, one notch below the
CFR reflecting the priority ranking and structural seniority of its
wholly owned subsidiary's $700 million borrowing base senior
secured revolving credit facility (unrated) due 2024 (with a 90
days springing maturity covenant). The C rating on the senior
secured notes also reflects Moody's view of potential recovery.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
AEPB's PDR will be downgraded to D if the company files for
bankruptcy protection or if it engages in some form of balance
sheet restructuring. The CFR could be downgraded if Moody's view on
overall recovery were to be lowered.
AEPB's ratings are unlikely to be upgraded in the near-term. The
ratings could be considered for an upgrade if the company improves
its liquidity, reduces debt and oil and gasprices improve
significantly to result in significant reduction of the company's
restructuring risk.
American Energy -- Permian Basin, LLC (AEPB) is an independent oil
and natural gas company with reserves primarily in the Southern
Midland Basin within the Permian Basin of West Texas. AEPB is
headquartered in Houston, TX.
AMERICAN WOODMARK: S&P Alters Outlook to Neg., Affirms 'BB' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on U.S.-based American
Woodmark Corp. (AMWD) to negative from stable and affirmed the 'BB'
issuer credit rating on the company. At the same time, S&P affirmed
its 'BB' issue-level rating on its $350 million senior unsecured
notes.
"We revised our outlook on AMWD to negative because we expect
weakness in demand will adversely affect revenue and cash flow
generation. The company reported favorable credit metrics for the
12 months ended January 2020, with adjusted leverage of 2.6x and
FFO to debt of 27%, helped by strong free cash flows used for debt
reduction. However, over the next few quarters, we expect credit
measures will deteriorate as discretionary consumer spending slows
down from recessionary pressures," S&P said.
"The negative outlook reflects our view that extended recessionary
pressures could lead to earnings and credit ratios worsening more
than we expect under our base case scenario," the rating agency
said.
S&P could lower the ratings over the next 12 months if:
-- Continued softness in demand caused EBITDA to contract by over
40%;
-- Debt to EBITDA trended toward 4x, with little prospects of a
rapid recovery; and
-- Covenant headroom severely tightened and cash flows turned
negative.
S&P could revise the outlook back to stable over the next 12 months
if:
-- Overall business conditions and end markets' demand trends
improved, and
-- AMWD maintained leverage within the 2x-3x range and FFO to debt
in the 30%-45% range.
ANICHINI INC: UST Appoints Levine as Chapter 11 Trustee
-------------------------------------------------------
The United States Trustee in the U.S. Bankruptcy Court for the
District of Vermont has appointed as Sub-chapter V trustee pursuant
to 11 U.S.C. Section 1183(a) for Anichini, Inc.:
Paul A. Levine, Esq.
Lemery Greisler, LLC
50 Beaver Street, 2nd Floor
Albany, NY 12207
Tel: 518-433-8800
E-mail: plevine@lemerygreisler.com
The U.S. Trustee also appointed Levine as Sub-chapter V trustee
pursuant to 11 U.S.C. Section 1183(a) for Anichini Hospitality,
Inc.
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.
Hon. Colleen A. Brown oversees the case.
The Debtor tapped Drummond Woodsum as its counsel.
APEX ENERGY: Court Conditionally Approves Disclosure Statement
--------------------------------------------------------------
Judge Benjamin P. Hursh has ordered that the Disclosure Statement
of Apex Energy, LLC filed April 15, 2020, is conditionally
approved.
The hearing on confirmation of Debtor's Plan and on final approval
of the Debtor's Disclosure Statement scheduled for April 28, 2020,
will instead be held Tuesday, May 26, 2020, at 9:00 a.m., or as
soon thereafter as the parties can be heard, in the 2ND FLOOR
COURTROOM, FEDERAL BUILDING, 400 N. MAIN, BUTTE, MONTANA.
May 15, 2020, is fixed as the last day for filing ballots and for
filing and serving written objections to confirmation of Debtor's
Plan, and for filing written acceptances or rejections of said
Plan.
Terms of Plan
According to the Disclosure Statement, Apex Energy, LLC, filed a
Chapter 11 plan that provides that:L
* Class 2 Secured claim of Margaret Sannes. Impaired. Total
claim of $780,145. Payments begin on the Confirmation Date and end
when $300,000, with interest at 4.5% on the Confirmation Date, is
paid. Interest rate of 4.5%. The Class 2 creditor will be paid 10%
of the Net Profits Income received by the Debtor as provided by the
pre-bankruptcy Assignment of Net Profits Interest.
* Class 3 Secured claim of Name Interface Treating Solutions, LLC
and Nortana Grain Co. Impaired. Total claim of $65,145. The
secured claims of Interface Treating Solutions, LLC, and Nortana
Grain Co. will be paid through 24 pro-rata monthly distributions of
10% of the Net Profits Income commencing the first day of the
second month following the date the Minimum Price Achievement
occurs and continuing each month thereafter as long as the Minimum
Price Achievement continues to be met.
* Class 4 General Unsecured Class – non-priority claims of
$2,500 or more. Impaired. The Class 4 Non-Priority Class
Creditors will each receive a distribution of 8% of its allowed
claim through monthly payments, without interest, commencing on the
first day of the second month following the date the Minimum Price
Achievement occurs, and continuing each month thereafter for which
the Minimum Price Achievement is realized through payments of 10%
of the Net Profits Income received by the Debtor during such
month.
* Class 5 [1122(b) Convenience Class] – non-priority claims of
less than $2,500. Impaired. The Class 5 Non-Priority Convenience
Class Creditors will each receive a distribution of 8% of its
allowed claim, through a single payment on the Effective Date.
Payments and distributions under the Plan will be funded by net
profits received from the production and sale of crude oil.
Payments made are based upon the Debtor’s net profit income from
the sale of its crude oil. All crude oil produced is sold by a
marketer, currently 88 Oil; the marketer pays the West Texas
Intermediate price less the marketer’s costs, less the royalty
payments due all royalty owners, and the 10% net profits paid to
Sannes. The Debtor receives the remainder and pays its costs and
expenses, including the chapter 11 plan payments, other than the
Sannes payment, from the remainder.
A full-text copy of the Second Amended Disclosure Statement dated
April 15, 2020, is available at https://tinyurl.com/y7k39mww from
PacerMonitor.com at no charge.
About Apex Energy
The Apex Energy, LLC is a Montana limited liability company,
organized in 2017 when it purchased oil producing properties from
Ronald and Margaret Sannes. Since February 23, 2017, it has been
in the business of producing and selling crude oil from properties
in Richland and Dawson Counties, Montana.
In July,2019, Regency Energy Services, the work-over company
engaged by the Debtor, and which claimed a debt of approximately
$350,000, filed an involuntary bankruptcy against the Debtor. In
September, 2019, the Debtor consented to the relief sought by
Regency and converted the case to one under chapter 11
The Chapter 11 case is In re Apex Energy, LLC (Bankr. D. Mont. Case
No. 19-60676).
The Debtor is represented by counsel, JA Patten.
APOLLO ENDOSURGERY: Posts $10.3 Million Net Loss in First Quarter
-----------------------------------------------------------------
Apollo Endosurgery, Inc., reported a net loss of $10.25 million on
$10.72 million of revenues for the three months ended March 31,
2020, compared to a net loss of $2.80 million on $13.21 million of
revenues for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $66.69 million in total
assets, $72.15 million in total liabilities, and a total
stockholders' deficit of $5.45 million.
Todd Newton, CEO of Apollo, said, "The first two months of 2020
started very well for Apollo, particularly in respect of ESS demand
in our direct markets. However, the COVID-19 pandemic and
resulting actions brought an unprecedented decline in the
allocation of global healthcare resources for elective or
deferrable medical procedures, including those that use our
products, and the impact on our March sales was significant. We
expect the second quarter of 2020 will continue to be very
challenging. In response, we have implemented aggressive cost
reduction measures for the second quarter to preserve capital to
the maximum extent possible, while maintaining the flexibility to
respond to demand signals and positioning the Company to thrive
again as procedures return."
U.S. Endoscopic Suturing System (ESS) product sales increased 25%
to $3.8 million for the first quarter of 2020. Outside the US
("OUS"), ESS product sales decreased 12% (8% in constant currency)
to $3.1 million for the first quarter of 2020 primarily due to the
onset of the COVID-19 pandemic delaying distributor orders
scheduled to ship in March. OUS ESS product sales in direct
markets, excluding Brazil which the Company transitioned from a
direct market to a distributor market in early March, increased 11%
(15% in constant currency). Worldwide, ESS product sales increased
5% (8% in constant currency) to $6.8 million for the first quarter
of 2020.
U.S. IGB sales decreased by $0.6 million for the first quarter of
2020 and OUS IGB product sales decreased $0.2 million, or 8% (5% in
constant currency), for the first quarter of 2020 primarily due to
the COVID-19 impact in the Company's direct markets which offset an
increase in IGB distributor orders.
In total, U.S. Endoscopy sales increased 4% to $4.7 million for the
first quarter of 2020. Worldwide Endoscopy product sales decreased
4% (2% in constant currency) to $10.4 million for the first quarter
of 2020. ESS product sales represented 66% of total Endoscopy
sales for the first quarter of 2020, compared with 60% for the
first quarter of 2019.
Total GAAP revenue reported in the first quarter of 2019 included
$2.3 million related to transition services that the Company
rendered in that period related to the Surgical product line that
the Company divested in December of 2018 compared to $0.2 million
in the first quarter of 2020. As a result, total GAAP revenue
reported for the first quarter of 2020 declined by $2.5 million
compared to the first quarter of 2019.
Gross margin for the first quarter of 2020 was 53%, compared to 55%
for the first quarter of 2019 when the Company realized gross
margin on the continuing transition services rendered on the
Surgical product line. Gross margin realized on the Company's
Endoscopy products increased 124 basis points in the first quarter
of 2020 compared to the first quarter of 2019.
While total operating expenses, as reported, increased $2.5 million
for the first quarter of 2020 compared to the first quarter of
2019, this is due to a one-time settlement gain of $5.6 million
settlement gain that reduced operating expenses in the first
quarter of 2019. Excluding the one-time settlement gain, total
operating expenses decreased $3.1 million for the first quarter of
2020 and our loss from operations decreased by $1.5 million, or
18%. This reduction in recurring operating expenses was primarily
the result of lower direct to consumer advertising, lower selling
costs such as compensation and travel, and lower clinical trial
costs.
Cash, cash equivalents and restricted cash were $24.0 million as of
March 31, 2020.
COVID-19 Response
As a result of the COVID-19 outbreak, a number of countries,
particularly countries in Europe that comprise the majority of the
Company's OUS sales and the United States, implemented a variety of
public health interventions in March to reduce the risk of disease
transmission and conserve healthcare resources for addressing the
community health needs of COVID-19. These measures also to a large
degree paused patient access to elective or deferrable procedures,
including those that use the Company's products. In response,
Apollo has taken several interim actions to preserve cash while
maintaining customer support and critical growth projects. The
Company initially reduced 2019 cash bonuses, implemented
compensation reductions across its workforce, reduced or delayed
inventory purchase commitments, and cut operating expenditures
across the company. The Company took additional actions in
mid-April, including the furlough of approximately 90 employees
across its global workforce and capping annual compensation rates
at $100,000. The objective of these temporary cost reductions is
to keep the Company's cash use during the second quarter of 2020 at
the same level the Company was expecting prior to COVID-19.
Apollo said, "While taking these steps, we have maintained
sufficient commercial resources in key markets to support essential
customer needs and monitor product demand trends. We are also
proceeding with critical growth projects, including the MERIT trial
and other reimbursement initiatives, new product development
efforts for suturing in the lower GI tract, and select projects
expected to improve critical aspects of our supply chain."
A full-text copy of the Quarterly Report on Form 10-Q is available
for free at the Securities and Exchange Commission's website at:
https://is.gd/290lnz
About Apollo Endosurgery
Apollo Endosurgery, Inc. -- http://www.apolloendo.com/-- is a
medical technology company focused on less invasive therapies to
treat various gastrointestinal conditions, ranging from
gastrointestinal complications to the treatment of obesity.
Apollo's device-based therapies are an alternative to invasive
surgical procedures, thus lowering complication rates and reducing
total healthcare costs. Apollo's products are offered in over 75
countrie and include the OverStitch Endoscopic Suturing System, the
OverStitch Sx Endoscopic Suturing System, and the ORBERA
Intragastric Balloon.
Apollo Endosurgery incurred a net loss of $27.43 million in 2019
compared to a net loss of $45.78 million in 2018. As of Dec. 31,
2019, the Company had $74.58 million in total assets, $72.46
million in total liabilities, and $2.12 million in total
stockholders' equity.
KPMG LLP, in Austin, Texas, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated March
26, 2020 citing that the Company has suffered recurring losses from
operations, cash flow deficits and debt covenant violations and has
an accumulated deficit that raise substantial doubt about its
ability to continue as a going concern.
AQUABOUNTY TECHNOLOGIES: Incurs $3.11M Net Loss in First Quarter
----------------------------------------------------------------
AquaBounty Technologies, Inc., reported a net loss of $3.11 million
on $6,753 of product revenues for the three months ended March 31,
2020, compared to a net loss of $2.76 million on $97,885 of product
revenues for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $41.41 million in total
assets, $6.42 million in total liabilities, and $34.99 million in
total stockholders' equity.
Cash and cash equivalents were $14.7 million as of March 31, 2020,
compared with $2.8 million as of Dec. 31, 2019. The increase in
cash and cash equivalents was primarily due to the completion of a
public offering in February 2020, whereby the Company raised gross
proceeds of $15.5 million.
Cash used in operations in the first quarter of 2020 was $2.9
million, compared with cash used in operations of $2.1 million in
the same period of the prior year.
General and administrative expenses in the first quarter of 2020
were $1.6 million, compared to $1.3 million in the same period of
the prior year. This increase is primarily due to strengthening
the management team.
Research and development expenses in the first quarter of 2020 were
$569,000, compared to $663,000 in the same period of the prior
year. The decrease was primarily due to lower field trial costs.
Recent Company Highlights:
* Harvest schedules remain on-track, with first harvest of
conventional Atlantic salmon scheduled to begin in June
2020, and the first harvest of the Company's proprietary
AquAdvantage salmon (AAS) scheduled to begin in the fourth
quarter of 2020. Currently, AquaBounty has over 300 metric
tons of fish in the water between its two farms located in
Indiana and Rollo Bay.
* Implemented increased biosecurity and employee safety
measures in response to the COVID-19 pandemic.
* Appointed Theodore Fisher and Alana Czypinski to the board
of directors.
* Fortified balance sheet from an over-subscribed February
2020 public offering, securing $15.5 million in gross
proceeds.
* Planning for the next large-scale farm is in full
development pending the final selection of the engineering
and Recirculating Aquaculture System (RAS) technology firms.
* Retained MZ Group to lead strategic investor relations and
shareholder communication program across all key markets.
* Discussions with potential customers and distributors remain
on track with timing of harvests.
Management Commentary
Sylvia Wulf, chief executive officer of AquaBounty, stated: "The
COVID-19 pandemic is a significant challenge for the global
economy, and I am immensely proud of our employees for their
outstanding performance and unwavering care for our fish. A
challenge like this pandemic highlights the need for technology and
supply chain alternatives like ours, which address a safe,
sustainable, and secure food supply. Our operational experience
and expertise have helped us navigate through this unique
environment and effectively execute against our strategy."
"AquaBounty is rapidly approaching its commercialization phase, and
we are pleased to announce that our first harvest of conventional
Atlantic salmon remains on track to begin in June 2020, which will
provide our first revenues on a commercial scale. This also allows
us to continue demonstrating our expertise in aquaculture and
ensure our supply chain is in place prior to our first harvest of
AquAdvantage salmon, beginning in the fourth quarter of 2020.
Looking forward, we plan to increase production volumes in
subsequent months. With a world-class team in place and a
fortified balance sheet from our over-subscribed $15.5 million
public offering, we are better positioned than ever to execute our
strategic plan," continued Wulf.
Wulf added: "As we prepare for the future, we continue to work
through the process of formalizing offtake agreements with
processors and customers. We're also taking steps to plan the next
large-scale production farm, including identifying an ideal site
location to maximize logistics and best serve our customers,
selecting a design and construction firm, and choosing a
RAS-technology provider."
"We are confident in our ability to execute upon the biggest
milestones in the Company's history, while concurrently moving
forward with our longer-term operating plans to increase scale,
drive technology enhancements, and expand geographically -- all
while driving meaningful shareholder value and providing solutions
to feed the worlds' growing population," concluded Wulf.
A full-text copy of the Quarterly Report as filed with the
Securities and Exchange Commission is available for free at:
https://is.gd/SV5tyq
About AcquaBounty
Headquartered in Maynard, Massachusetts, AquaBounty Technologies,
Inc., is a publicly traded aquaculture company focused on improving
productivity and sustainability in commercial aquaculture. The
Company's objective is the application of biotechnology to ensure
the availability of seafood to meet global consumer
demand-addressing critical production constraints in the most
popular farmed species, including salmon, trout, and tilapia.
AquaBounty recorded a net loss of $13.23 million for the year ended
Dec. 31, 2019, compared to a net loss of $10.38 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$30.23 million in total assets, $6.47 million in total liabilities,
and $23.76 million in total stockholders' equity. The Company has
incurred losses from operations since its inception in 1991, and,
as of Dec. 31, 2019, the Company had an accumulated deficit of $132
million.
ARBOR PHARMACEUTICALS: S&P Lowers ICR to 'B-' on Higher Leverage
----------------------------------------------------------------
S&P Global Ratings lowered the long-term issuer rating on Arbor
Pharmaceuticals Inc. to 'B-' from 'B'. The outlook is negative.
"Our downgrade of Arbor reflects both our lowered sales
expectations of the overall business and our expectation of weaker
credit metrics. We are lowering our assessment of Arbor's overall
business due to a pattern of underperformance from operational
challenges including manufacturing suspensions and stock-outs,
canceled or delayed development projects, and product
underperformance," S&P said.
Arbor has had a series of setbacks and delays that have resulted in
a double-digit-percent decline in revenues for a potential fourth
consecutive year, as sales of its legacy products continue to fall,
leading to a steady erosion of its business position and financial
credit metrics. The latest setback, the stock-out of Sklice in 2019
and 2020 because of supply issues, will make it difficult for that
product to regain market share among a number of treatments even if
the over-the-counter (OTC) product is approved. The company is
still working through validating a new manufacturer for suspension
products.
S&P's negative outlook reflects the elevated uncertainty for the
business in light of COVID-19 and a record of overall
underperformance.
"We could consider a lower rating over the next 12 months if we
believe the capital structure is unsustainable. In this scenario,
we would believe Arbor will have difficulty refinancing its loans
in 2023 because of continued revenue declines and material risk to
core products in 2025. We could conclude the company will likely
have difficulty stabilizing revenue if it materially delays or
cancels projects, including the launch of the new Nymalize
formulation and Sklice OTC or the development of its ADHD
franchise," S&P said.
"We could revise the outlook to stable if we have confidence that
Arbor can stabilize and begin to grow revenue and EBITDA in 2021
from the success of its marketing and development efforts including
with Horizant, Edarbi franchise, AR19, Triptodur and Sklice OTC,
while maintaining the revenue for hospital products," the rating
agency said.
ARETEC GROUP: Bank Debt Trades at 16% Discount
----------------------------------------------
Participations in a syndicated loan under which Aretec Group Inc is
a borrower were trading in the secondary market around 84
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $105 million facility is a term loan. The loan is scheduled to
mature on October 1, 2025. About $104 million of the loan remains
outstanding.
The Company's country of domicile is United States.
AVALIGN HOLDINGS: Moody's Alters Outlook on B3 CFR to Negative
--------------------------------------------------------------
Moody's Investors Service changed Avalign Holdings Inc.'s outlook
to negative from stable. At the same time, Moody's affirmed the
company's B3 Corporate Family Rating, B3-PD Probability of Default
Rating and the B2 ratings of the senior secured first lien term
loan and revolving credit facility.
The change of outlook to negative reflects Moody's expectation of a
moderate decline in revenue and cash flow in the coming quarters
due to the postponement of elective procedures. Avalign's business
portfolio relies heavily on orthopedic implants and instruments
that will see a temporary decline in demand due to COVID-19
outbreak. 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
slow-down in demand for Avalign's contract manufacturing services.
The negative outlook also reflects the company's modest absolute
level of earnings, which can lead to significant volatility in
credit metrics.
The affirmation of the B3 rating reflects Moody's expectation that
the company will have adequate near-term liquidity to deal with the
impact of COVID-19 outbreak and the cash outflow in the next 2-3
quarters will be manageable. The company had approximately $33
million of cash after almost entirely drawing its revolver.
Ratings Affirmed:
Issuer: Avalign Holdings, Inc.
Corporate Family Rating at B3
Probability of Default Rating at B3-PD
$35 million Senior Secured 1st lien Revolving Credit Facility
expiring 2023 at B2 (LGD3)
$229 million Senior Secured 1st lien Term Loan due 2025 at B2
(LGD3)
Outlook Actions:
Issuer: Avalign Holdings, Inc.
Outlook changed to negative from stable
RATINGS RATIONALE
The B3 CFR reflects Avalign's high financial leverage, small scale
and customer concentration. The company's debt/EBITDA, including
pro forma adjustments, approximated 7.6 times at the end of
September 2019. Moody's expects this figure to increase 1.0-2.0
turns in 2020 due to COVID-19 related slowdown with a longer-term
expectation that debt/EBITDA will return to the mid-7.0x range.
Avalign's ratings benefit from high barriers to entry and switching
costs in the medical products contract manufacturing industry. This
is because of the significant amount of time and investment
required for its customers to obtain product regulatory approvals,
of which Avalign is an integrated part. For this reason, the
company tends to have long-term relationships with its customers,
lending stability to revenue and cash flow. The ratings also
reflect Moody's view that the pent-up demand for orthopedic
products, which constitute around 75% of Avalign's business, will
return once the US economy resumes normalcy in the next 6-12
months.
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 Avalign, 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. Avalign, owned by a private equity firm, has
been acquisitive in the last few years. The company also
experienced some senior level 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 company pursues an aggressive debt-funded
acquisition strategy or if free cash flow becomes negative on a
sustained basis.
Ratings could be upgraded if Avalign materially increases its size
and scale, diversifies its product portfolio and demonstrates
stable organic growth at the same time it effectively executes on
its expansion strategy. Adjusted debt/EBITDA will need to be
sustained below 5.0 times to support an upgrade.
Avalign is a developer, manufacturer and supplier of implants,
cutting tools, specialty surgical instruments and metal
thermoformed cases and trays for medical devices original equipment
manufacturers. It is owned by the private equity firm Linden
Capital Partners. The company's pro forma revenue for 2018 is
approximately $200 million.
The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.
AVIS BUDGET: Bank Debt Trades at 30% Discount
---------------------------------------------
Participations in a syndicated loan under which Avis Budget Car
Rental LLC is a borrower were trading in the secondary market
around 70 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $1.2 billion facility is a term loan. The loan is scheduled to
mature on August 6, 2027. About $1.2 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
AVSC HOLDING: Bank Debt Trades at 32% Discount
----------------------------------------------
Participations in a syndicated loan under which AVSC Holding Corp
is a borrower were trading in the secondary market around 68
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.3 billion facility is a term loan. The loan is scheduled to
mature on March 1, 2025. About $1.2 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
BALL METALPACK: Bank Debt Trades at 26% Discount
------------------------------------------------
Participations in a syndicated loan under which Ball Metalpack
Finco LLC is a borrower were trading in the secondary market around
74 cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $145 million facility is a term loan. The loan is scheduled to
mature on July 31, 2026. About $137 million of the loan remains
outstanding.
The Company's country of domicile is United States.
BAYSIDE WASTE: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
Bayside Waste Services LLC, according to court dockets.
About Bayside Waste Services
Bayside Waste Services, LLC, a Tampa, Florida-based provider of
environmental services, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-02359) on March 18,
2020. The petition was signed by Paul J. Simon, its manager. As of
February 29, 2020, the Debtor had $769,198 in total assets and
$1,376,899 in total liabilities. The Debtor tapped Stichter Riedel
Blain & Postler, P.A., as its counsel.
BCP RAPTOR: Bank Debt Trades at 47% Discount
--------------------------------------------
Participations in a syndicated loan under which BCP Raptor LLC is a
borrower were trading in the secondary market around 53
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.3 billion facility is a term loan. The loan is scheduled to
mature on June 30, 2024. About $1.2 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
BENTON ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Benton Enterprises, LLC
d/b/a Elk Ridge Almonds
d/b/a Heart Ridge Farms
18252 Avenue 20
Madera, CA 93637
Business Description: Benton Enterprises, LLC d/b/a Heart Ridge
Farms -- https://www.heartridgefarms.com --
produces snack products made from almonds.
Chapter 11 Petition Date: May 5, 2020
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 20-11612
Judge: Hon. Rene Lastreto II
Debtor's Counsel: Peter L. Fear, Esq.
FEAR WADDELL, P.C.
7650 North Palm Avenue, Suite 101
Fresno, CA 93711
Tel: 559.436.6575
E-mail: pfear@fearlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by William B. Pitman, CEO/managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/8kOfxO
BIOPLAN USA: Bank Debt Trades at 30% Discount
---------------------------------------------
Participations in a syndicated loan under which Bioplan USA Inc is
a borrower were trading in the secondary market around 71
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $105 million facility is a term loan. The loan is scheduled to
mature on September 23, 2022. About $102 million of the loan
remains outstanding.
The Company's country of domicile is United States.
BLESSED HOLDINGS: July 21 Hearing on Disclosure Statement
---------------------------------------------------------
Judge A. Jay Cristol has ordered that the hearing to consider
confirmation of Chapter 11 Plan and the approval of the Disclosure
Statement filed by Blessed Holdings Trust Corp. will be held on
July 21, 2020 at 3:00 p.m.
The deadline for service of the Chapter 11 Plan, Disclosure
Statement, Ballot, the Amended Order Setting Hearing on Approval of
Disclosure Statement and this Order is June 22, 2020.
The deadline for the filing of objections to claims is July 6,
2020.
The deadline for the filing of ballots accepting or rejecting the
plan is July 9, 2020.
The deadline for objections to the approval of the disclosure
statement or confirmation of the Chapter 11 Plan is July 15, 2020.
The Debtor's counsel:
Richard R. Robles, P.A.
905 Brickell Bay Drive
Four Ambassadors
Tower II, Mezzanine, Suite 228
Miami, Florida 33131
Tel: (305)755-9200
About Blessed Holdings Trust Corp.
Blessed Holdings Trust Corp. is a corporation based in Hialeah,
Florida. It is a small business debtor as defined in 11 U.S.C.
Section 101(51D).
Blessed Holdings Trust sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-25403) on Dec. 11,
2018. At the time of the filing, the Debtor had estimated assets
of $1 million to $10 million and liabilities of $1 million to $10
million. The case has been assigned to Judge Jay A. Cristol. The
Debtor tapped the Law Offices of Richard R. Robles, P.A., as its
legal counsel.
BLUE NILE: Bank Debt Trades at 38% Discount
-------------------------------------------
Participations in a syndicated loan under which Blue Nile Inc is a
borrower were trading in the secondary market around 62
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $185 million facility is a term loan. About $159.7 million
of the loan remains outstanding. The loan is scheduled to mature
on February 17, 2023.
The Company's country of domicile is United States.
BLVCK BVLLED: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The Office of the U.S. Trustee on May 4, 2020, disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Blvck Bvlled Investments, LLC.
About Blvck Bvlled Investments
Blvck Bvlled Investments, LLC, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 20-62128) on Feb.
3, 2020, listing under $1 million in both assets and liabilities.
Judge Paul Baisier oversees the case. Will B. Geer, Esq., at
Wiggam & Geer, LLC, is the Debtor's legal counsel.
BOEING CO: To Cut 15% of Jobs in Commercial Jet Division
--------------------------------------------------------
Boeing Co. at the end of April 2020 reported a first-quarter loss
of $641 million and told employees that it plans to cut more than
15 percent of jobs at its commercial jet business following the hit
to the airline business from the coronavirus pandemic.
"We will be a smaller company for a while," CEO Dave Calhoun told
analysts after the company announced a first-quarter loss of $641
million and a 26% drop in revenues. "The sharp reduction in demand
for our airplanes we see out over the next several years won't
support the size of the workforce we have today."
Boeing said a belt-tightening was needed to maintain adequate
liquidity at a time its revenues are depressed and said the company
is 'exploring potential government funding options' in the wake of
COVID-19.
"[T]hese further reductions in our production rates and the
continued impact of covid-19 on our businesses will force us to
reduce the size of our workforce. I'm sorry for having to deliver
this news, but I wanted you to hear it from me first – and I
recorded a video message so that you could hear it directly from
me," Calhoun said in a message to employees.
"We began to take steps to reduce our number of employees by
approximately 10% through a combination of voluntary layoffs (VLO),
natural turnover and involuntary layoffs, as needed, " according to
Boeing's CEO.
"This represents 10% in total for the company. We will have to make
even deeper reductions in the areas most exposed to the conditions
of our commercial customers – more than 15% in our service and
commercial aircraft business, as well as in our corporate
functions."
Boeing Commercial Airplanes employs some 65,000 workers, most of
them in Washington state.
About Boeing Co.
Chicago-based The Boeing Company (NYSE: BA) is the world's largest
aerospace company and leading provider of commercial airplanes,
defense, space and security systems, and global services. As a top
U.S. exporter, the company supports commercial and government
customers in more than 150 countries. Boeing employs more than
160,000 people worldwide and leverages the talents of a global
supplier base. Building on a legacy of aerospace leadership, Boeing
continues to lead in technology and innovation, deliver for its
customers and invest in its people and future growth.
* * *
The aviation industry has been severely affected by the economic
shutdowns and travel restrictions brought by the Coronavirus
pandemic.
Even before the outbreak, Boeing has been burning a lot of cash by
continuing to pay its suppliers and employees without much revenue
as its 737 Max is still grounded. The 737 Max grounding followed
two fatal crashes for that new model last year. Now with the
pandemic, airlines are now deferring orders since the virus has
brought global travel to a near standstill.
BOSS OYSTER: Court Conditionally Approves Disclosure Statement
--------------------------------------------------------------
Judge Karen K. Specie has ordered that the disclosure statement
filed on April 14, 2020, by Boss Oyster, Inc., and Seagrape
Enterprises Apalachicola, Inc., is conditionally approved.
A confirmation hearing will be held via CourtCall on May 21, 2020
at 10:30 AM, Eastern Time.
Objections to confirmation must be filed and served seven days
before the date set forth for confirmation hearing.
May 14, 2020, is fixed as the last day for filing and serving
written objections to the disclosure statement, and is fixed as the
last day for filing acceptances or rejections of the plan.
About Boss Oyster Inc.
Boss Oyster Inc. owns and operates an oyster bar restaurant in
Apalachicola, Fla.
Boss Oyster and its affiliate Seagrape Enterprises of
Apalachicola,
Inc., sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Fla. Lead Case No. 19-40357) on July 12, 2019. At
the
time of the filing, Boss Oyster was estimated to have assets of
between $1 million and $10 million and liabilities of the same
range. The cases have been assigned to Judge Karen K. Specie.
Bruner Wright, P.A., is the Debtors' bankruptcy counsel.
BR HEALTHCARE: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The Office of the U.S. Trustee on May 5, 2020, disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of BR Healthcare Solutions, LLC.
About BR Healthcare Solutions
BR Healthcare Solutions, LLC, based in Karnes City, TX, filed a
Chapter 11 petition (Bankr. W.D. Tex. Case No. 20-50627) on March
20, 2020. In its petition, Debtor estimated $500,000 to $1 million
in assets and $1 million to $10 million in liabilities. The
petition was signed by Sanjeev Bhatia, member. The Hon. Craig A.
Gargotta presides over the case. H. Anthony Hervol, Esq., at the
Law Office of H. Anthony Hervol, is Debtor's bankruptcy counsel.
BROWN JORDAN: Bank Debt Trades at 24% Discount
----------------------------------------------
Participations in a syndicated loan under which Brown Jordan Inc is
a borrower were trading in the secondary market around 76
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $165 million facility is a term loan. About $155 million of
the loan remains outstanding. The loan is scheduled to mature on
January 31, 2023.
The Company's country of domicile is United States.
BW NHHC: Bank Debt Trades at 57% Discount
-----------------------------------------
Participations in a syndicated loan under which BW NHHC Holdco Inc
is a borrower were trading in the secondary market around 43
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $195 million facility is a term loan. The loan is scheduled to
mature on May 15, 2026. About $10 million of the loan remains
outstanding.
The Company's country of domicile is United States.
CALAIS REGIONAL: Cuts 10% of Full-Time Workers
----------------------------------------------
Bill Trotter, reporting for Bangor Daily News, reports that Calais
Regional Hospital is cutting its about 10 percent of its fulltime
workforce.
Calais sent a memo to its employees announcing the reductions, as
it contends pandemic and bankruptcy. It marks the newest in
long-series reduction of services and staff at the critical access
hospital, which has continued to incur losses year after year.
According to Calais CEO Rod Boula's memo, the workforce reduction
will start in the fourth week of April 2020 through attrition,
layoffs and reorganization of positions with the organization. Over
40% of the job cuts will be among management and high level
positions.
Officials connected to Calais' bankruptcy case revealed that the
hospital received federal stimulus funds worth $623,000 in April
2020 under the CARES Act but can't secure additional financial
assistance through the federal government's Paycheck Protection
Program. Applicants aren't eligible with the PPP if they're in
bankruptcy.
Due to the hospital's "economic condition and Chapter 11
bankruptcy; the impact of COVID-19; and the inability to qualify or
secure adequate Federal and State funding relief, it is necessary
to implement measures to stabilize the financial situation of the
hospital," Mr. Boula said. "The current pandemic has impacted our
business so significantly that we must make some very difficult
personnel decisions."
About Calais Regional Hospital
Based in Calais, Maine, Calais Regional Hospital --
https://www.calaishospital.org/ -- operates as a non-profit
organization offering cardiac rehabilitation, emergency, food and
nutrition, home health, inpatient care unit, laboratory, nursing,
radiology, respiratory care and stress testing, surgery, and
social
services.
Calais Regional Hospital filed a Chapter 11 petition (Bankr. D.
Maine Case No. 19-10486) on Sept. 17, 2019. At the time of filing,
the Debtor had estimated assets and liabilities of $10 million to
$50 million. Judge Michael A. Fagone oversees the case. The
Debtor is represented by Murray Plumb & Murray.
CASCADE ACQUISITION: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Cascade Acquisition Partners, LLC.
About Cascade Acquisition Partners
Cascade Acquisition Partners, LLC is a real estate holding company
that owns various plots of land.
Cascade Acquisition Partners filed a voluntary petition under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
20-60333) on Jan. 6, 2020, listing under $1 million in both assets
and liabilities. Judge Sage M. Sigler oversees the case. The
Debtor is represented by Will B. Geer, LLC.
CENGAGE LEARNING: Bank Debt Trades at 23% Discount
--------------------------------------------------
Participations in a syndicated loan under which Cengage Learning
Inc is a borrower were trading in the secondary market around 77
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.71 billion facility is a term loan. The loan is scheduled
to mature on June 7, 2023. About $1.65 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
CENTURY ALUMINUM: Files Q1 Form 10-Q; Posts $2.7 Million Net Loss
-----------------------------------------------------------------
Century Aluminum Company reported a net loss of $2.7 million on
$421.2 million of total net sales for the three months ended March
31, 2020, compared to a net loss of $34.6 million on $490 million
of total net sales for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $1.59 billion in total
assets, $284.9 million in total current liabilities, $632.4 million
in total noncurrent liabilities, and $673.8 million in total
shareholders' equity.
Century Aluminum stated, "We believe that cash provided from
operations and financing will be adequate to cover our operations
and business needs over the next 12 months. As of March 31, 2020,
we had cash and cash equivalents totaling approximately $147.6
million and unused availability under our revolving credit
facilities of $55.5 million, resulting in a total liquidity
position of approximately $203.1 million....[W]e have also taken
preemptive action to preserve our liquidity and manage our cash
flow, such as reducing our discretionary spending and optimizing
working capital. We believe that we could also access the
financial markets to sell long-term debt or equity securities.
However, the COVID-19 pandemic could continue to create uncertainty
and volatility in the financial markets which may impact our
ability to access capital and/or the terms under which we can do
so.
"Adverse changes in the price of aluminum or our principal costs of
production could also materially impact our ability to generate and
raise cash. As the impact of the COVID-19 pandemic on the economy
and our operations is fluid and constantly evolving, we will
continue to assess a variety of measures to improve our financial
performance and liquidity. Such measures might include cuts to
discretionary spending and other variable costs as well as possible
reductions of our production volumes."
A full-text copy of the Quarterly Report as filed with the
Securities and Exchange Commission is available for free at:
https://is.gd/TCM2bi
About Century Aluminum Company
Century Aluminum Company -- http://www.centuryaluminum.com/-- is a
global producer of primary aluminum and operates aluminum reduction
facilities, or "smelters," in the United States and Iceland.
The Company reported a net loss of $80.8 million for the year ended
Dec. 31, 2019, compared to a net loss of $66.2 million for the year
ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $1.49
billion in total assets, $233.7 million in total current
liabilities, $591 million in total non-current liabilities, and
$675 million in total shareholders' equity.
* * *
As reported by the TCR on April 17, 2020, Moody's Investors Service
downgraded the Corporate Family Rating of Century Aluminum Company
to Caa1 from B3. "The ratings downgrade reflects Moody's
expectations of further deterioration in Century's credit profile
due to the impact of the coronavirus outbreak on the global
aluminum demand, prices and regional premiums, which have declined
materially since the beginning of 2020," said Botir Sharipov, vice
president and lead analyst for Century Aluminum.
Also in April 2020, S&P Global Ratings lowered its issuer credit
rating on Chicago-based aluminum producer Century Aluminum Co. to
'CCC+' from 'B-' and its issue-level rating to 'B-'. "We believe
the outbreak of COVID-19 is materially hindering capital market
accessibility and the risk of weak aluminum prices persisting might
make it more challenging for Century to refinance its debt. In the
next six to 12 months as the bond maturity gets closer and
Century's quarterly cash flow begins to reflect weaker aluminum
prices, we expect it could experience a potential liquidity
shortfall," S&P said.
CHECKOUT HOLDING: Bank Debt Trades at 25% Discount
--------------------------------------------------
Participations in a syndicated loan under which Checkout Holding
Corp is a borrower were trading in the secondary market around 75
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $125 million facility is a term loan. The loan is scheduled to
mature on February 15, 2023. About $123.8 million of the loan
remains outstanding.
The Company's country of domicile is United States.
CHESAPEAKE ENERGY: Reportedly Considering Bankruptcy Filing
-----------------------------------------------------------
Mike Spector and David French of Reuters reported that Chesapeake
Energy Corp. is contemplating a bankruptcy filing and is in talks
with lenders on funding for its restructuring.
Reuters, citing people familiar with the matter, said that the
Oklahoma City-based oil and gas exploration and production company
is preparing for bankruptcy as it wrestles with unprecedented rout
in energy prices.
Chesapeake negotiated with creditors on a possible loan of around
$1 billion to stay afloat while it undergoes a Chapter 11
restructuring, Reuters' sources said.
The company's discussions on obtaining possible bankruptcy funds
are in early stages and it hasn't decided yet on how to pay its
debts, the Reuters' sources cautioned.
Chesapeake is considering skipping a payment of $192 million due in
August, adding urgency to the discussions with creditors, one of
the sources said, according to Reuters. Chesapeake also faces a
$136 million obligation on July 1.
About Chesapeake Energy Corp.
Oklahoma City, Oklahoma-based Chesapeake Energy Corporation is a
large independent oil and gas exploration and production (E&P)
company that operates in different onshore U.S. basins. The
company's daily production averaged at 465 mboe/d in the quarter
ending December 31, 2019, 70% was natural gas.
The Company reported $16.19 billion in total assets against $2.392
billion in current liabilities and $9.400 billion in total
long-term liabilities as of Dec. 31, 2019.
It reported a net loss of $416 million on $8.595 billion of revenue
for 2019, compared with net profit of $133 million on $10.23
billion of revenue for 2018.
* * *
In April 2020, Moody's Investors Service downgraded Chesapeake
Energy's Corporate Family Rating to Ca from Caa1, its Probability
of Default Rating to Ca-PD from Caa1-PD, its first lien, "last out"
term loan rating to Caa1 from B3, its second lien notes rating to
Ca from Caa2, and its senior unsecured notes ratings to C from
Caa3. The outlook was revised to negative from stable.
According to Moody's, the downgrade reflects Chesapeake's eroding
liquidity, the prospect of significant production declines due to
substantially reduced capital investment, a depressed commodity
price environment, very limited access to capital, and the high
likelihood of a restructuring in the near term.
Chesapeake has a 'CCC' issuer credit rating and negative outlook
from Standard & Poor's.
CHESAPEAKE ENERGY: S&P Cuts $1.5BB Term Loan Rating to 'CCC'
------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Oklahoma
City-based oil and gas exploration and production company
Chesapeake Energy Corp. to 'CC' from 'CCC'. At the same time, S&P
lowered its issue-level ratings on the company's $1.5 billion
first-lien last-out term loan due 2024 and its $2.3 billion
second-lien notes due 2025 to 'CCC' from 'B-' (recovery rating:
'1'), and its unsecured debt to 'C' from 'CCC-' (recovery rating:
'5').
Despite adequate liquidity to fund debt service through at least
the end of the year, S&P believes default is highly likely.
Chesapeake has a $135 million interest payment due in July and a
$208 million debt maturity in August 2020, and its bonds currently
trade at less than $0.10 on the dollar, providing incentive for a
bankruptcy filing or restructuring. Although the company has more
than $1.0 billion in liquidity between cash on hand and
availability on its $3.0 billion secured credit facility (with a
current borrowing base of $3.0 billion), S&P believes liquidity
will deteriorate due to negative free cash flows, upcoming debt
maturities, and likely borrowing base reductions over the next few
months.
The outlook is negative, reflecting S&P's view that the company
will file for bankruptcy or announce a capital restructuring the
rating agency would view as distressed within the next few months.
"We would lower the rating if Chesapeake files for bankruptcy or
announces a distressed exchange or restructuring," S&P said.
"We could take a positive action if the company were able raise
external capital--which we view as highly unlikely--and use the
proceeds to repay a substantial portion of its debt at close to par
value," S&P said.
CLEVELAND-CLIFFS INC: S&P Affirms 'B-' Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
U.S.-based iron ore and steel producer Cleveland-Cliffs Inc.
(Cliffs).
S&P is lowering its issue-level ratings on Cliffs' senior secured
debt to 'B' from 'B+'. In addition, it is lowering its issue-level
ratings on Cliffs' guaranteed senior unsecured debt to 'CCC' from
'CCC+'. S&P affirmed its 'CCC' issue-level ratings on the company's
nonguaranteed senior unsecured debt.
"We view Cleveland-Cliffs' repurchase of approximately $736 million
of its senior unsecured notes at a discount as opportunistic given
our view that the risk of default on these instruments would
otherwise have been minimal over the near to medium term," S&P
said.
Cleveland-Cliffs issued senior secured notes due 2025 and used the
proceeds to repurchase various senior unsecured notes at a discount
of about 25%, reducing overall outstanding debt by about $181
million (or just over 5% of total reported debt). According to S&P,
the risk of principal or interest payment default is minimal over
the next three years because liquidity is ample (about $1.4 billion
of cash and committed borrowing capacity) and maturities are
negligible (about $40 million, in total, between 2020 and 2022).
Additionally, the long-dated maturities of the bonds repurchased
(2025–2040) supports S&P's view that this transaction is
opportunistic rather than a typical distressed scenario where
near-term maturities are extended to avoid default. The notes were
purchased near market prices. While the approximate 25% discount
would ordinarily indicate distress S&P believes pricing is more
reflective of dislocation in the high-yield debt markets due to the
coronavirus-driven recession, rather than fear of default in the
near to medium term.
The negative outlook reflects S&P's expectation that
Cleveland-Cliffs' debt leverage will peak in the 7x-10x range in
2020. S&P anticipates credit ratios will improve in 2021 under a
forecast that assumes U.S. economic growth resumes next year.
However, there is downside risk to the rating agency's base-case
scenario if the coronavirus is not contained and continues to
materially suppress the economy.
"We could lower the rating if Cliffs pursued a material amount of
additional discounted debt repurchases or exchanges such that we
viewed them to be akin to a restructuring of its balance sheet,"
S&P said.
"We could also lower the rating if we believe Cliffs is dependent
upon favorable business, financial, and economic conditions to meet
its financial commitments. In such a scenario, we could consider
financial commitments unsustainable, even if the company did not
face a liquidity shortfall within a year," the rating agency said.
Indicators of this scenario include:
-- If interest coverage was expected to stay below 1x beyond 2021,
or
-- Asset diminution or other causes that restrict revolving
borrowing capacity.
S&P could revise the outlook to stable if operating conditions
stabilized or improved, and it considered the company's liquidity
position adequate. This scenario would be supported by:
-- Positive discretionary cash flow (DCF; operating cash flow
minus capital spending), and
-- Leverage closer to the bottom of the 7x-10x range.
CLUBCORP HOLDINGS: Bank Debt Trades at 25% Discount
---------------------------------------------------
Participations in a syndicated loan under which ClubCorp Holdings
Inc is a borrower were trading in the secondary market around 75
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.2 billion facility is a term loan. The loan is scheduled to
mature on September 18, 2024. About $1.1 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
COLOUROZ INVESTMENT: Bank Debt Trades at 38% Discount
-----------------------------------------------------
Participations in a syndicated loan under which ColourOZ Investment
2 LLC is a borrower were trading in the secondary market around 63
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $205 million facility is a term loan. The loan is scheduled to
mature on September 7, 2022. About $120.8 million of the loan
remains outstanding.
The Company's country of domicile is United States.
COMPASS GROUP: Moody's Hikes Unsec. Notes to B1, Outlook Stable
---------------------------------------------------------------
Moody's Investors Service affirmed Compass Group Diversified
Holdings LLC's Corporate Family Rating at Ba3 and Probability of
Default Rating at Ba3-PD. Concurrently, Moody's upgraded the senior
secured revolving credit facility due 2023 rating to Ba1 from Ba2,
the senior unsecured notes due 2026 rating to B1 from B2, and
assigned a B1 rating to the proposed $200 million add-on senior
unsecured notes due 2026. The proceeds from the proposed add-on
notes, along with proceeds from an approximate $100 million common
equity offering will be used to repay existing revolver borrowings
and for general corporate purposes. The Speculative Grade Liquidity
rating remains SGL-1. The outlook is stable.
Its rating actions reflect Moody's expectations that Compass will
pursue a prudent acquisition strategy while maintaining financial
flexibility and moderate Moody's adjusted debt/EBITDA leverage
below 4x. Compass' moderate financial leverage with debt/EBITDA at
around 3.1x at fiscal yearend December 31, 2019 pro forma for
recent divestitures/acquisitions and the proposed transaction,
provides some cushion to absorb weaker operating results and credit
metrics within Moody's expectations for the rating. Moody's expects
the deteriorating operating environment and weak economic outlook
as a result of the coronavirus outbreak will negatively impact
revenue and earnings in fiscal 2020. Moody's projects pro forma
debt/EBITDA leverage will increase to around 3.7x and for free cash
flow generation to weaken in fiscal 2020. However, credit metrics
and cash flows will improve as the company deploys the proceeds
from its common equity offering for acquisitions.
The upgrade of the $600 million senior secured revolving facility
due 2023 reflects the revolver's priority of payment relative to
the senior unsecured notes and the increased loss absorption
provided by the proposed $200 million add-on to the senior
unsecured notes. The upgrade of the senior unsecured notes due 2026
reflects changes in the relative position in the overall capital
structure.
Upgrades:
Issuer: Compass Group Diversified Holdings LLC
Senior Secured Bank Credit Facility, Upgraded to Ba1 (LGD2) from
Ba2 (LGD2)
Senior Unsecured Regular Bond/Debenture, Upgraded to B1 (LGD5) from
B2 (LGD5)
Assignments:
Issuer: Compass Group Diversified Holdings LLC
Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD5)
Affirmations:
Issuer: Compass Group Diversified Holdings LLC
Probability of Default Rating, Affirmed Ba3-PD
Corporate Family Rating, Affirmed Ba3
Outlook Actions:
Issuer: Compass Group Diversified Holdings LLC
Outlook, Remains Stable
RATINGS RATIONALE
Compass' Ba3 CFR reflects its moderate financial leverage of 3.1x
debt/EBITDA as of fiscal year end December 31, 2019 pro forma for
divestitures/acquisitions and the proposed unsecured notes
offering, solid industry and product diversification resulting from
its controlling ownership in nine businesses, and very good
liquidity. Moody's expects that headwinds related to the
coronavirus outbreak will negatively impact revenue and earnings,
and projects debt/EBITDA leverage will increase to around 3.7x in
fiscal 2020. The company has a publicly stated commitment to a more
conservative financial policy which targets leverage of 2.5x to 3x
(per management's calculation), and Moody's expects the company
will maintain debt/EBITDA below 4x. The rating also reflects
governance factors including the company's policy of distributing
the majority of its operating cash flow to shareholders and the
expectation for future debt funded acquisitions, specifically
platform purchases of material size as opposed to bolt-on, that
could temporarily increase leverage above the stated target.
However, if that were to occur Moody's expects the company to
deleverage in a relatively short timeframe, either via the issuance
of additional equity or sale of a business.
The SGL-1 reflects Compass' very good liquidity supported by a cash
balance of over $190 million and full availability under its $600
million revolving credit facility as of March 31, 2020 pro forma
for the proposed transactions, and access to alternate liquidity
sources.
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 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 Compass' credit profile,
including its exposure weak economic conditions and consumer
spending, have left it vulnerable to shifts in market sentiment in
these unprecedented operating conditions and the company remains
vulnerable to the outbreak continuing to spread. Moody's regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
Its action reflects the impact on Compass of the breadth and
severity of the shock, and the broad deterioration in credit
quality it has triggered.
The stable outlook reflects Moody's expectations that Compass will
sustain debt/EBITDA below 4x over the next 12-18 months. Moody's
expects Compass to continue to distribute most of its cash flow to
shareholders and pursue add-on acquisitions over the next 12
months, but remain committed to debt reduction following such
acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Although not likely in the near term, ratings could be upgraded if
Compass demonstrates steady revenue growth, while maintaining
debt/EBITDA below 2.5x and free cash flow/debt above 10%. Ratings
could be downgraded if the company revises its business strategy
and targets acquisitions that do not have stable cash flow or if
Compass significantly increases debt to fund a distribution or
share repurchase. The ratings could also be downgraded if
debt/EBITDA approaches 4x, if EBIT/interest is below 2x, or if
liquidity significantly deteriorates.
Compass Group Diversified Holdings LLC is a publicly traded company
(NYSE: CODI) that holds majority ownership interests in nine
distinct operating subsidiaries including 5.11 Tactical, Velocity
Outdoor (formerly Crosman), Advanced Circuits, Sterno Group, Arnold
Magnetics, Liberty Safe, Ergobaby, Foam Fabricators, and Marucci
Sports. Compass' strategy is to acquire and manage businesses that
operate in industries with long term macroeconomic growth
opportunities, are expected to have positive and stable cash flows,
face minimal threat of technological and competitive obsolescence,
and have strong management teams in place. Pro-forma for the
divestitures of Clean Earth and Manitoba Harvest, the company
generated over $1.4 billion of revenue for the fiscal year end
period December 31, 2019.
The principal methodology used in this rating was Consumer Durables
Industry published in April 2017.
COMPASS GROUP: S&P Alters Outlook to Negative, Affirms 'B+' ICR
---------------------------------------------------------------
S&P Global Ratings said it affirmed its 'B+' long-term issuer
credit and debt ratings on Compass Group Diversified Holdings LLC.
The outlook was revised from positive to negative.
CODI's portfolio companies are somewhat vulnerable in the current
market environment.
"We believe that most of CODI's portfolio companies are likely to
have declining performance in 2020 given the stay-at-home orders
and recession. In our base-case scenario, the portfolio companies
will be able to continue making interest payments to CODI. However,
we believe that the company's cash flow coverage or LTV could
weaken and trigger the downside threshold for the rating," S&P
said.
CODI's LTV could increase above 45%. Declines in portfolio
companies' values could pressure CODI's LTV.
"Separately, the $200 million revolver drawdown earlier this year
to fund the acquisition of Marucci Sports has slightly increased
the company's LTV ratio compared with our expectations at year-end
2019. We believe that the company may remain acquisitive which is
expected of the investment holding company business model,
particularly in an environment where potential acquisitions have
attractive valuations." However, no debt is due until 2023, and
there is ample liquidity available through the company's revolver,"
S&P said.
CODI's cash flow adequacy would be affected if a portfolio company
were unable to make interest payments on its intercompany loans.
CODI's cash flow adequacy is somewhat low, at around 1.0x.
Disruption of interest payments may constrain CODI's ability to
cover operating expenses (such as management fees and interest) and
pay dividends to shareholders without borrowing on its revolver.
"About $110 million to $115 million is currently paid out as
dividends to CODI's investors annually, which we view as relatively
sizable. The company may be reluctant to cut its dividend in a
period of stress, which could reduce its liquidity cushion. The
company's liquidity is currently adequate in our base-case
scenario, though diminished following the $200 million drawdown,"
S&P said.
The company's ability to monetize investments quickly, if needed,
may be limited. CODI owns 70%-100% of its portfolio companies, and
all are privately held. The company's portfolio consists of low
speculative-grade investments (weighted average credit quality of
'B'), and performance of those investments has been mixed. About
40% of the portfolio value is concentrated in its largest
investment, and the top three investments account for nearly
two-thirds of the portfolio value, which S&P views as significantly
concentrated. Disruption in these companies could have an outsize
effect on CODI.
The negative outlook reflects S&P's expectation that portfolio
companies will continue to make expected interest payments on
intercompany loans and that cash flow adequacy will remain around
1.0x. However, should a portfolio company be unable to make
payments, CODI's cash flow adequacy could weaken. S&P also expects
LTV will remain near its 45% threshold.
"We could revise the outlook to stable if the company maintains an
LTV ratio between 30% and 45% in less volatile conditions and cash
flow adequacy remains above 0.7x," S&P said.
"We could lower the rating in the next 12-24 months if LTV
increases above 45% due to an increase in total debt or sustained
underperformance of the portfolio companies, or if cash flow
adequacy deteriorates below 0.7x," S&P said.
Compass Group Diversified Holdings LLC is an investment holding
company that invests in privately held, niche, middle-market
consumer product and industrial companies generating $30 million to
$50 million in EBITDA. As of March 31, 2020, CODI owns and controls
nine companies.
The company's strategy is to acquire controlling interests, sell
the businesses after increasing profitability (in some cases
acquiring small add-ons to these platform companies), and redeploy
the funds in new businesses. CODI funds acquisitions with revolver
drawdowns, which are paid off using free cash flow and business
divestitures. The company is the sole lender to its portfolio
companies as well as majority equityholder. The company is reliant
on interest income from intercompany loans to its portfolio
companies for cash flow.
"Compass has limited near-term debt maturities and meaningful
revolver availability, and we believe that sources of cash will
exceed uses by more than 1.2x over the next 12 months. "We also
believe that sources would continue to exceed uses even if EBITDA
were to decline by 15%. Our assessment of liquidity is constrained,
in part, by our view that CODI would not be able to absorb
high-impact, low-probability events without refinancing," S&P said.
COSI INC: Bankruptcy Judge Refuses TRO vs. SBA Over PPP
-------------------------------------------------------
Joyce Hanson and Vince Sullivan, writing for Law360, report that
U.S. Bankruptcy Judge Brendan L. Shannon's motion for an order that
would allow the company to seek federal coronavirus payroll
protection funds.
During a teleconference, Judge Shannon denied a bid by Cosi for
temporary restraining order that will bar the Small Business
Administration from disqualifying the company from applying for a
loan under the Paycheck Protection Program established by the CARES
Act.
Judge Shannon said that although he opposes the decision of SBA to
preclude bankruptcy debtors from obtaining PPP and "dismayed at the
consequences" and damage it brings Cosi by denying its relief bid
from the court, he would defer to the present SBA directive on how
loan funds are disbursed.
On April 28, 2020, SBA posted a rule that clarified issues on which
businesses are eligible to obtain loans under PPP.
"If the applicant or the owner of the applicant is the debtor in a
bankruptcy proceeding, either at the time it submits the
application or at any time before the loan is disbursed, the
applicant is ineligible to receive a PPP loan," the SBA rule
states.
In response, Cosi filed an adversary lawsuit in its Chapter 11
against SBA, claiming that the said rule jeopardizes its
reorganization plans because of its failure to obtain PPP relief to
relieve its financial woes amid the pandemic.
About COSI Inc.
Cosi, Inc. -- https://www.getcosi.com/ -- and its affiliates
operate fast-casual restaurants under the COSI brand. COSI
features flatbread made fresh throughout the day and specializes in
a variety of made-to-order hot and cold sandwiches, salads, bowls,
breakfast wraps, bagels, melts, soups, flatbread pizzas,
snacks,desserts, and a large offering of handcrafted, coffee-based,
and specialty beverages.
Cosi, Inc., and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 20-10417) on Feb. 24, 2020. Cosi, Inc., was
estimated to have $10 million to $50 million in assets and
liabilities.
The Debtors tapped Cozen O'Connor as counsel. Omni Agent Solutions
is the claims and noticing agent.
COTY INC: Bank Debt Trades at 16% Discount
------------------------------------------
Participations in a syndicated loan under which Coty Inc is a
borrower were trading in the secondary market around 84
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.4 billion facility is a term loan. The loan is scheduled to
mature on April 5, 2025. About $1.4 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
COVIA HOLDINGS: Bank Debt Trades at 54% Discount
------------------------------------------------
Participations in a syndicated loan under which Covia Holdings Corp
is a borrower were trading in the secondary market around 46
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.7 billion facility is a term loan. The loan is scheduled to
mature on June 1, 2025. About $1.6 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
CP#1109 LLC: Affiliate Guaranty Ensures Creditors to Get 100%
-------------------------------------------------------------
Debtor CP#1109, LLC filed with the Second Amended Disclosure
Statement describing its Amended Plan of Reorganization dated April
17, 2020.
On March 26, 2020, the Court entered the Order Granting Debtor's
Motion to Enter into Aircraft Repair Services Agreements with
Ly-Con Rebuilding Co. and Diaz Aircraft Services pursuant to which
the Debtor shipped the Engine of the Aircraft to Ly-Con Rebuilding
Co.'s California facility for testing and rebuilding. The initial
reports are positive and the Debtor believes it may be able to have
the Aircraft in service by September 2020 at which time it will
start earning income. The Aircraft is expected to rent for $600
per hour with operating costs approximately $380 per hour leaving a
$220 profit that will be used by the Debtor to start funding its
Plan.
Under the Plan each disputed or contested claim is not to be paid
until the claim and any pending claims of the Debtor against the
claimant are resolved in full. From the Claims Fund, the
Reorganized Debtor will pay the full Allowed Amount of each claim
with interest from the Petition Date within 30 days of an Order
allowing said claim. If the Claims Fund is insufficient at such
time, then the Debtor's affiliate will advance to the Debtor the
funds necessary to make the payment in full of the allowed claim.
Because the Debtor's affiliate will guarantee all payments of
Allowed Claims the ongoing operations of the Debtor are not as
material to the ability of the Debtor to fund the Plan. The
Guaranty of the Affiliate is the ultimate source of the funds in
the event the Debtor's net revenues are insufficient to fund the
Allowed Claims.
The Debtor is filing the Disclosure Statement and Plan which
provide an Affiliate Guaranty to ensure Allowed Claims are paid in
full with interest as Allowed by Final Order or Final Judgment
after expiration of the appeal period or Final Order resolving the
appeal.
The Debtor also has a potential claim against the Debtor's
insurance carrier, AXA XL Insurance, 3340 Peach Tree Road, Ste
2950, Atlanta GA 30326 any proceeds with such claim shall be used
to fund the Claims Fund.
A full-text copy of the Second Amended Disclosure Statement dated
April 17, 2020, is available at https://tinyurl.com/y997577h from
PacerMonitor at no charge.
Counsel for Debtor:
AM LAW
Gary Murphree, Esq.
7385 SW 87th Avenue, Suite 100
Miami, FL 33173
Tel: 305.441.9530
Fax: 305.595.5086
E-mail: gmm@amlaw-miami.com
pleadings@amlaw-miami.com
About CP#1109 LLC
CP#1109, LLC, sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 18-25821) on Dec. 20, 2018. At the
time of the filing, the Debtor was estimated to have assets of less
than $1 million and liabilities of less than $500,000. The case is
assigned to Judge Mindy A. Mora. AM Law, LLC, is the Debtor's
counsel.
CREATIVE HAIRDRESSERS: In Chapter 11 After Closing 80 Locations
---------------------------------------------------------------
Daniel J. Sernovitz, reporting for Washington Business Journal,
reports that hair salon chain Ratner Cos., the parent company of
Cielo, Bubbles, and Hair Cuttery, filed bankruptcy protection after
closing over 80 locations nationwide in March 2020.
Ratner is an evident coronavirus pandemic victim, that forced to
shut down many branches. On March 31, 2020, it posted coronavirus
notices on the websites of Bubbles and Hair Cuttery indicating its
hopes of reopening on April 1, 2020, but unfortunately not
realized.
The pandemic contributed financial concerns even prior to the
economic crisis, said Creative Hairdressers representative in the
statement issued on April 25, 2020. It signed a deal with HC Salon
Holdings Inc., a subsidiary of Tacit Salon Holdings Inc., to sell
majority of its assets.
Creative Hairdressers' statement read, "Creative Hairdressers has
been searching for a new financial partner for some time. The
impact of the coronavirus on the business accelerated this process
and is a strategic move to ensure the health and vitality of our
company in the future. We have a stable of strong brands and a
talented team of Salon Professionals, and our plan is to be
operating our stores as soon as we are able and it is safe to do
so."
The bankruptcy filing follows two class-action lawsuits from a
group of hair stylists against Ratner, claiming it violated the
fair wages law when it closed all retail operations.
About Creative Hairdressers
Creative Hairdressers, Inc. and Ratner Companies, L.C. --
http://www.ratnerco.com/-- operate over 750 salons nationwide
under the trade names Hair Cuttery, BUBBLES, and Salon Cielo. In
1974, Dennis and Ann Ratner launched their first Hair Cuttery salon
in West Springfield and later grew the business to a chain of hair
salons that included about 900 locations in 2018.
Creative Hairdressers and Ratner Companies, L.C., sought Chapter
11
protection (Bankr. D. Md. Case No. 20-14583 and 20-14584) on April
23, 2020.
Creative Hairdressers was estimated to have $1 million to $10
million in assets and $10 million to $50 million in liabilities.
Creative Hairdressers is represented by Shapiro Sher Guinot &
Sandler. Carl Marks Advisors is acting as strategic financial
advisor to assist the Company in the process. A&G Realty Partners
is the real estate advisor. Epiq Bankruptcy Solutions is the
claims agent.
HC Salon Holdings, Inc. is represented by DLA Piper LLP (US).
CREATIVE HAIRDRESSERS: Russell Represents Utility Companies
-----------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the Law Firm of Russell R. Johnson, PLC submitted a verified
statement to disclose that it is representing the utility companies
in the Chapter 11 cases of Creative Hairdressers, Inc., et al.
The names and addresses of the Utilities represented by the Firm
are:
a. Atlantic City Electric Company
Baltimore Gas and Electric Company
Delmarva Power & Light Company
PECO Energy Company
The Potomac Electric Power Company
Attn: Lynn R. Zack, Esq.
Assistant General Counsel
Exelon Corporation
230 I Market Street, S23-1
Philadelphia, PA 19103
b. Commonwealth Edison Company
Attn: Erin Buechler
Claims & Collection Counsel
3 Lincoln Centre
Oakbrook Terrace, IL 60181
c. Florida Power & Light Company
Attn: Gloria Lopez
RRD-LFO
4200 W. Flagler Street
Coral Cables, Florida 33134
d. Virginia Electric and Power Company
d/b/a Dominion Energy Virginia
Attn: Sherry Ward
600 East Canal Street, 10th floor
Richmond, VA 23219
e. Potomac Edison Company
Jersey Central Power & Light Company
Attn: Kathy M. Hofacre
FirstEnergy Corp.
76 S. Main St., A-GO-15
Akron, OH 44308
The nature and the amount of claims (interests) of the Utilities,
and the times of acquisition thereof are as follows:
a. The following Utilities have unsecured claims against the
above-referenced Debtors arising from prepetition utility usage:
Atlantic City Electric Company, Baltimore Gas and Electric Company,
Commonwealth Edison Company, Delmarva Power & Light Company,
Florida Power & Light Company, PECO Energy Company, The Potomac
Electric Power Company, Virginia Electric, Power Company d/b/a
Dominion Energy Virginia, Potomac Edison Company and Jersey Central
Power & Light Company.
b. For more information regarding the claims and interests of
the Utilities in these jointly-administered cases, refer to the
Motion and Memorandum of Certain Utility Companies To: Vacate,
and/or Reconsider, and/or Modify Order (I) Authorizing the Debtors'
Proposed Form of Adequate Assurance of Payment, (11) Establishing
Procedures For Resolving Objections By Utility Companies, and (111)
Prohibiting Utility Companies From Altering, Refusing, or
Discontinuing Service (Docket No. 123) filed in the
above-captioned, jointly-administered, bankruptcy cases.
The Law Firm of Russell R. Johnson III, PLC was retained to
represent the foregoing Utilities in April 2020. The circumstances
and terms and conditions of employment of the Firm by the Companies
is protected by the attorney-client privilege and attorney work
product doctrine.
The Firm can be reached at:
Russell R. Johnson III, Esq.
LAW FIRM OF RUSSELL R. JOHNSON III, PLC
2258 Wheatlands Drive
Manakin-Sabot, VA 23103
Telephone: (804) 749-8861
Facsimile: (804) 749-8862
E-mail: russell@russelljohnsonlawfirm.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://is.gd/Gtgqt1
About Creative Hairdressers
Creative Hairdressers, Inc. -- http://www.ratnerco.com/-- operates
over 750 salons nationwide under the trade names Hair Cuttery,
BUBBLES, and Salon Cielo. The company began in 1974 to create a
quality whole-family salon where stylists could make a good living.
Today, the family of salons continues to share this commitment
with a transparent, people-first culture that offers the best
career trajectory in the industry for salon professionals, field
leaders and corporate employees.
Creative Hairdressers and Ratner Companies, L.C., sought Chapter 11
protection (Bankr. D. Md. Case No. 20-14583 and 20-14584) on April
23, 2020.
Creative Hairdressers was estimated to have $1 million to $10
million in assets and $10 million to $50 million in liabilities.
Creative Hairdressers is represented by Shapiro Sher Guinot &
Sandler. Carl Marks Advisors is acting as strategic financial
advisor to assist the Company in the process. A&G Realty Partners
is the real estate advisor. Epiq Bankruptcy Solutions is the
claims agent.
HC Salon Holdings, Inc. is represented by DLA Piper LLP (US).
CREATIVE HAIRDRESSERS: Selzer Represents Utility Companies
----------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firm of Selzer, Gurvitch, Rabin, Wertheimer & Polott, P.C.
submitted a verified statement to disclose that it is representing
the utility companies in the Chapter 11 cases of Creative
Hairdressers, Inc., et al.
The names and addresses of the Utilities represented by the Firm
are:
a. Atlantic City Electric Company
Baltimore Gas and Electric Company
Delmarva Power & Light Company
PECO Energy Company
The Potomac Electric Power Company
Attn: Lynn R. Zack, Esq.
Assistant General Counsel
Exelon Corporation
230 I Market Street, S23-1
Philadelphia, PA 19103
b. Commonwealth Edison Company
Attn: Erin Buechler
Claims & Collection Counsel
3 Lincoln Centre
Oakbrook Terrace, IL 60181
c. Florida Power & Light Company
Attn: Gloria Lopez
RRD-LFO
4200 W. Flagler Street
Coral Cables, Florida 33134
d. Virginia Electric and Power Company
d/b/a Dominion Energy Virginia
Attn: Sherry Ward
600 East Canal Street, 10th floor
Richmond, VA 23219
e. Potomac Edison Company
Jersey Central Power & Light Company
Attn: Kathy M. Hofacre
FirstEnergy Corp.
76 S. Main St., A-GO-15
Akron, OH 44308
The nature and the amount of claims (interests) of the Utilities,
and the times of acquisition thereof are as follows:
a. The following Utilities have unsecured claims against the
above-referenced Debtors arising from prepetition utility usage:
Atlantic City Electric Company, Baltimore Gas and Electric Company,
Commonwealth Edison Company, Delmarva Power & Light Company,
Florida Power & Light Company, PECO Energy Company, The Potomac
Electric Power Company, Virginia Electric, Power Company d/b/a
Dominion Energy Virginia, Potomac Edison Company and Jersey Central
Power & Light Company.
b. For more information regarding the claims and interests of
the Utilities in these jointly-administered cases, refer to the
Motion and Memorandum of Certain Utility Companies To: Vacate,
and/or Reconsider, and/or Modify Order (I) Authorizing the Debtors'
Proposed Form of Adequate Assurance of Payment, (11) Establishing
Procedures For Resolving Objections By Utility Companies, and (111)
Prohibiting Utility Companies From Altering, Refusing, or
Discontinuing Service (Docket No. 123) filed in the
above-captioned, jointly-administered, bankruptcy cases.
The Law Firm of Selzer, Gurvitch, Rabin, Wertheimer & Polott, P.C.
was retained to represent the foregoing Utilities in April 2020.
The circumstances and terms and conditions of employment of the
Firm by the Companies is protected by the attorney-client privilege
and attorney work product doctrine.
The Firm can be reached at:
Patrick J. Kearney, Esq.
Selzer, Gurvitch, Rabin, Wertheimer & Polott, P.C.
4416 East West Highway
Fourth Floor
Bethesda, MD 20814-4568
Tel: (301) 634-3114
Fax: (301) 986-1301
Email: pkearney@sgrwlaw.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://is.gd/XrwG2e
About Creative Hairdressers
Creative Hairdressers, Inc. -- http://www.ratnerco.com/-- operates
over 750 salons nationwide under the trade names Hair Cuttery,
BUBBLES, and Salon Cielo. The company began in 1974 to create a
quality whole-family salon where stylists could make a good living.
Today, the family of salons continues to share this commitment
with a transparent, people-first culture that offers the best
career trajectory in the industry for salon professionals, field
leaders and corporate employees.
Creative Hairdressers and Ratner Companies, L.C., sought Chapter 11
protection (Bankr. D. Md. Case No. 20-14583 and 20-14584) on April
23, 2020.
Creative Hairdressers was estimated to have $1 million to $10
million in assets and $10 million to $50 million in liabilities.
Creative Hairdressers is represented by Shapiro Sher Guinot &
Sandler. Carl Marks Advisors is acting as strategic financial
advisor to assist the Company in the process. A&G Realty Partners
is the real estate advisor. Epiq Bankruptcy Solutions is the
claims agent.
HC Salon Holdings, Inc. is represented by DLA Piper LLP (US).
CREATIVE HAIRDRESSERS: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------------
John Fitzgerald, III, acting U.S. trustee for Region 4, appointed a
committee to represent unsecured creditors in the Chapter 11 cases
of Creative Hairdressers, Inc. and Ratner Companies, L.C.
The committee members are:
1. Regency Centers, L.P.
Ernst Bell, Esquire
Associate General Counsel
Vice President Legal
One Independent Drive, Suite 114
Jacksonville, Florida 32202
2. SITE Centers Corp
Eric C. Cotton, Esq.
Deputy General Counsel
Corporate Compliance Officer
3300 Enterprise Parkway
Beachwood, OH 44122
3. LaDove, Inc.
Julian Cecio
5701 Miami Lakes Drive, East
Miami Lakes, Florida 33014
4. J Global Printing d/b/a More Vang
Jonathan Budington
3670 Wheeler Avenue
Alexandria, VA 22304
5. Nicole Olson
c/o Matthew Dundon
440 Mamaroneck Ave., 5th Floor
Harrison, NY 10528
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Creative Hairdressers
Creative Hairdressers, Inc. operates over 750 salons nationwide
under the trade names Hair Cuttery, BUBBLES, and Salon Cielo. The
company began in 1974 to create a quality whole-family salon where
stylists could make a good living. Visit http://www.ratnerco.com/
Creative Hairdressers and Ratner Companies, L.C. sought Chapter 11
protection (Bankr. D. Md. Lead Case No. 20-14583) on April
23, 2020. Creative Hairdressers was estimated to have $1 million
to $10 million in assets and $10 million to $50 million in
liabilities.
Debtors tapped Shapiro Sher Guinot & Sandler as legal counsel; Carl
Marks Advisors as strategic financial advisor; A&G Realty Partners
as real estate advisor; and Epiq Bankruptcy Solutions as claims
agent.
CROSSCODE INC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Crosscode, Inc.
950 Tower Lane, Suite 2100
Foster City, CA 94404
Business Description: Crosscode, Inc. -- https://www.crosscode.com
-- designs and develops application
software.
Chapter 11 Petition Date: May 5, 2020
Court: United States Bankruptcy Court
Northern District of California
Case No.: 20-30383
Debtor's Counsel: Bao M. Vu, Esq.
Thomas A. Woods, Esq.
Andrew H. Morton, Esq.
STOEL RIVES LLP
500 Capitol Mall, Suite 1600
Sacramento, CA 95814
Tel: (415) 500-6572
E-mail: bao.vu@stoel.com
thomas.woods@stoel.com
andrew.morton@stoel.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Greg Wunderle, chief executive officer.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/ti80Aw
CWGS GROUP: Bank Debt Trades at 30% Discount
--------------------------------------------
Participations in a syndicated loan under which CWGS Group LLC is a
borrower were trading in the secondary market around 70
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.2 billion facility is a term loan. The loan is scheduled to
mature on November 8, 2023. About $1.1 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
DANCOR TRANSIT: Says Pandemic Making Situation Worse
----------------------------------------------------
Mark Friedman, writing for Arkansas Business, reports that already
facing issues before Covid-19, trucking companies are struggling
with the lockdowns and economic shutdowns brought by the pandemic.
Arkansas Business recounts that in February 2020, Dan Bearden's
Dancor Transit Inc. sought Chapter 11 protection. Bearden's
trucking company had been struggling with soaring insurance rates
and falling freight prices since last year.
And the coronavirus is making the business situation worse.
"What's going on out here is that the manufacturers are shut down,
which means the truck drivers have got nothing to haul," Bearden's
daughter, Jeri Lynn Bearden, vice president of the company, told
Arkansas Business.
Trucking companies are dropping their prices just to get freight,
she said, according to the report. "It's just making our situation
even harder."
Dancor, with about 80 trucks and 34 drivers, has sold some real
estate "just to keep afloat," she said.
Dan Bearden said Dancor, at least for now, is able to pay its
remaining 50 employees, although some have been laid off. And the
company continues to pay its utilities and mortgages. "We're making
all our payments," he said. "We're still running. We're still
hauling freight.
About Dancor Transit
Dancor Transit Inc. is a trucking company headquartered in Van
Buren, Arkansas. On Feb. 27, 2020, Dancor Transit sought Chapter
11 protection (Bankr. W.D. Ark. Case No. 20-70536). The Debtor was
estimated to have assets and liabilities of $1 million to $10
million. KEECH LAW FIRM, PA, led by Kevin P. Keech, Esq., is the
Debtor's counsel.
DATTO INC: S&P Alters Outlook to Negative, Affirms 'B' ICR
----------------------------------------------------------
S&P Global Ratings affirmed all of its ratings on U.S.-based Datto
Inc., including the 'B' issuer credit rating on the company, and
revised its outlook to negative from stable.
"COVID-19-related business disruption and deteriorating economic
conditions create heightened uncertainty around the financial
health of many small and midsize businesses, which, in our view,
might undermine Datto's business prospects for the next several
quarters," S&P said.
Datto operates predominantly under a software as a service revenue
model, with about 90% of its revenue recurring at the end of fiscal
2019. S&P believes, with strong booking activity over the past 12
months, Datto had prospects, pre-COVID, to increase its revenue in
the mid-teens percent area in fiscal 2020; however, Datto's strong
growth over the past 12 months has been largely offset by its free
operating cash flow deficit of roughly negative $30 million.
Mounting economic pressure, from the fallout from COVID-19, creates
uncertainty around the financial health of many SMBs, which Datto
exclusively caters to. Based on its expectation that many SMBs will
find it difficult to pay their monthly fees or become insolvent,
S&P sees an increased likelihood that Datto's new bookings activity
will be curtailed and its customer retention rates significantly
deteriorate below historical averages of 90%. While S&P expects
Datto to manage its expenses, including capital expenditures
(capex), this environment presents additional risks to its
profitability and cash flow generation in fiscal 2020.
The negative outlook reflects the possibility that S&P could lower
its ratings on Datto Inc. over the next 12 months if a prolonged
economic downturn significantly weakened the company's credit
metrics or hindered its ability to generate positive cash flows.
"We could lower our rating over the next 12 months if we expected
leverage to increase above 7x or free cash flow generation to
remain negative. We believe this would likely occur if Datto
experienced a significant increase in customer cancelations,
limited new bookings activity, or were unable to curtail operating
expenses," S&P said.
"We could revise our outlook to stable if we believed that Datto
could generate positive free operating cash flow and maintain
average leverage below 7x through the economic downturn and
top-line pressure by improving operational efficiencies and
reducing growth investments," S&P said.
DAVID'S BRIDAL: Bank Debt Trades at 49% Discount
------------------------------------------------
Participations in a syndicated loan under which David's Bridal LLC
is a borrower were trading in the secondary market around 51
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $240 million facility is a term loan. The loan is scheduled to
mature on January 18, 2024. About $13.3 million of the loan
remains outstanding.
The Company's country of domicile is United States.
DECO ENTERPRISES: May Continue Using Cash Collateral Through June 3
-------------------------------------------------------------------
Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central
District of California authorized Deco Enterprises, Inc. to
continue using cash collateral through and including June 3, 2020.
The Debtor may use the cash collateral (in which Siena Lending
Group, LLC claims a security interest) to pay ordinary and
necessary operating expenses and administrative expenses, and for
deposits/due diligence required by the Debtor and real estate
financing lenders in conformity with the budget, with a $1,148,694
limit on the total amount of cash collateral that may be expended.
Judge Bluebond further ordered that:
* Siena Lending is granted an additional and replacement
security interest and lien on the Debtor's postpetition assets,
and
* The Debtor's accounts receivable, cash and inventory, in which
Siena Lending holds a first priority perfected lien and security
interest, must not erode by more than $300,000 during the budget
period.
* The Debtor will provide Siena with daily reports identifying
(i) all of its outstanding accounts receivable; (ii) daily
collections of all accounts receivable, and daily sales and
credits; and (iii) the current amount of Debtor's inventory;
A copy of the Order is available for free at https://is.gd/Inpkr1
from PacerMonitor.com.
About Deco Enterprises
Deco Enterprises, Inc., manufactures lighting fixtures and
systems.
Deco Enterprises filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-11846) on Feb. 20,
2020. In the petition signed by Babak Sinai, president/chief
executive officer, the Debtor was estimated to have $1 million to
$10 million in assets and $10 million to $50 million in
liabilities. Raymond H. Aver, Esq., at the Law Offices of Raymond
H. Aver, APC, is the Debtor's counsel.
DI-VERSIFIED LLC: Taps Whigham Tax as Accountant
------------------------------------------------
Di-Versified, LLC, received approval from the U.S. Bankruptcy Court
for the Middle District of Florida to hire Whigham Tax & Accounting
Services, Inc. as its accountant.
Whigham Tax will assist Debtor in the preparation of its tax return
and will be paid a flat fee of $600 per year for each tax return
prepared.
John Whigham of Whigham Tax disclosed in court filings that his
firm is "disinterested" within the meaning of Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
John Whigham
Whigham Tax & Accounting Services, Inc.
200 E Commercial St., Suite 4
Sanford, FL 32771
Phone: 407-915-6847
E-mail: john@whighamaccounting.com
About Di-Versified LLC
Di-Versified, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-01779) on March 20,
2020, listing under $1 million in both assets and liabilities.
Judge Lori V. Vaughan oversees the case. Debtor is represented by
Anne-Marie L. Bowen, P.A. and Latham Luna Eden & Beaudine, LLP.
DIRECTVIEW HOLDINGS: Oasis Capital Reports 9.9% Equity Stake
------------------------------------------------------------
Oasis Capital, LLC, reported in a Schedule 13G filed with the
Securities and Exchange Commission that as of April 28, 2020, it
beneficially owns 667,918 shares of common stock of DirectView
Holdings, Inc., which represents 9.99 percent of the shares
outstanding. This percentage was calculated based on approximately
6,746,649 shares of common stock outstanding of DirectView
Holdings, Inc. as of April 28, 2020. Oasis Capital, LLC is deemed
to beneficially own 9.99% of the common stock of the Company, as a
result of OASIS's ownership of that certain convertible promissory
note, which gives Oasis the rights to own an aggregate number of
shares of the Company's common stock in an amount not to exceed
9.99% of shares of common stock then outstanding. A full-text copy
of the regulatory filing is available for free at:
https://is.gd/dc0cLl
About Directview Holdings
DirectView Holdings, Inc., (DIRV) together with its subsidiaries,
provides video surveillance solutions and teleconferencing products
and services to businesses and organizations. Based in Boca Raton,
Florida, the company operates in two divisions, Security (Video
Surveillance) and Video Conferencing. The Security division offers
technologies in surveillance systems providing onsite and remote
video and audio surveillance, digital video recording, and
services. It also sells and installs surveillance systems; and
sells maintenance agreements. The company sells its products and
services in the United States and internationally through direct
sales force, referrals, and its websites. The Video Conferencing
division offers teleconferencing products and services that enable
clients to conduct remote meetings by linking participants in
geographically dispersed locations. It is involved in the sale of
conferencing services based upon usage, the sale and installation
of video equipment, and the sale of maintenance agreements. This
division primarily provides conferencing products and services to
numerous organizations ranging from law firms, banks, high tech
companies and government organizations. DirectView Holdings
maintains two websites at http://www.directview.com/and
http://www.directviewsecurity.com
Directview reported a net loss of $10.05 million for the year ended
Dec. 31, 2018, compared to a net loss of $1.54 million for the year
ended Dec. 31, 2017. As of Sept. 30, 2019, DirectView Holdings had
$2.70 million in total assets, $33.72 million in total liabilities,
and a total stockholders' deficit of $31.01 million.
Assurance Dimensions, the Company's auditor since 2017, issued a
"going concern" qualification in its report dated April 12, 2019,
on the Company's consolidated financial statements for the year
ended Dec. 31, 2018, stating that the Company had a net loss and
cash used from operations of approximately $10,058,000 and
$1,854,000, respectively for the year ended of Dec. 31, 2018 and a
working capital deficit of approximately $21,351,000 as of Dec. 31,
2018. These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
DUCOMMUN INC: S&P Downgrades ICR to 'B+'; Outlook Stable
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Ducommun
Inc. to 'B+' from 'BB-'. At the same time, S&P lowered its rating
on the company's first-lien credit facility. The '4' recovery
rating on this debt is unchanged.
Ducommun's commercial aerospace segment (about 50% of revenues in
2019) will be hurt by production cuts announced by both and Boeing.
S&P already anticipated the company's 2020 revenue would be
impaired by the grounding and lower production levels of the 737
MAX (about 18% of revenues). Now with cuts to other models from
Boeing and Airbus due to the coronavirus, as well as even lower MAX
deliveries, S&P is now expecting debt to EBITDA of 4.5x-4.9x in
2020, improving to 3.8x-4.2x in 2021, which compares to its
previous forecast of 3.7x-4.1x and 2.9x-3.3x, respectively. The
company has taken actions such as headcount reductions and spending
cuts in its commercial aerospace segment to help offset production
declines.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
S&P's stable outlook on Ducommun reflects its expectations that its
defense business will help offset impacts to earnings and cash flow
from lower production levels in the commercial aerospace segment.
It expects debt to EBITDA of 4.5x-4.9x in 2020, improving to
3.8x-4.2x in 2021.
"We could lower our rating on Ducommun in the next 12 months if we
expect debt to EBITDA to increase above 5x for a sustained period
or if free cash flow becomes materially negative. This would most
likely occur if MAX production volumes are lower than forecast,
production levels in its other commercial programs are even weaker
than projected, or if the company is not able to reduce costs to
match the lower demand. Although less likely, this could also occur
if the company makes large debt-financed acquisitions," S&P said.
"Although unlikely, we could raise the rating over the next 12
months if debt to EBITDA declines below 4x and funds from
operations to debt increases above 20%. This could occur if
production levels overall are higher than forecast, if MAX
production resumes, and the company is able to control costs and
cash. We would not raise the rating while there are still
uncertainties over MAX production volumes," the rating agency said.
ECO-STIM ENERGY: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------
Henry Hobbs Jr., acting U.S. Trustee for Region 7, appointed a
committee to represent unsecured creditors in the Chapter 11 cases
of Eco-Stim Energy Solutions, Inc. and EcoStim, Inc.
The committee members are:
1. M.G. Bryan Equipment Co.
Attn: John Lehman
4441 W. Airport Freeway, Suite 355
Irving, TX 75062
Tel: 281-413-8933
Email: john.lehman@mgbryan.com
Counsel:
Michael Fishel, Esq.
Sidley Austin LLP
1000 Louisiana St., Suite 6000
Houston, TX 77002
Tel: 713-495-4645
Email: mfishel@sidley.com
2. Spectra Services, LLC
Attn: Jay Nabors
P.O. Box 14856
Odessa, TX 79768
Tel: 432-557-2859
Email: jnabors@spectraservices.net
Counsel:
Seth Meisel, Esq.
DuBois Bryant & Campbell, LLP
303 Colorado, Suite 2300
Austin, TX 78701
Tel: 512-381-8012
Fax: 512-457-8008
Email: smeisel@dbcllp.com
3. Valtek Industries, Inc.
Attn: Veronica Whitley
P.O. Box 70239
Odessa, TX 79769
Tel: 432-614-2886
Email: veronica.whitley@valtekind.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Eco-Stim Energy Solutions
and EcoStim Inc.
Eco-Stim Energy Solutions, Inc. is an oilfield service and
technology company offering pressure pumping and well completion
services and field management technologies to oil and gas producers
drilling in the U.S. and international unconventional shale
markets. In addition to conventional pumping equipment, Eco-Stim
offers its clients completion techniques that can dramatically
reduce horsepower requirements, emissions and surface footprint.
Eco-Stim Energy Solutions and EcoStim, Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No.
20-32167) on April 16, 2020.
At the time of the filing, Eco-Stim Energy had estimated assets of
between $1 million and $10 million and liabilities of between $10
million and $50 million. EcoStim, Inc. disclosed assets of between
$1 million and $10 million and liabilities of the same range.
Judge David R. Jones oversees the cases. The Debtors are
represented by Kilmer Crosby & Quadros, PLLC.
ELITE AUTO: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Elite Auto Dealer, Inc.
3115 Fremont Street
Las Vegas, NV 89104
Business Description: Elite Auto Dealer, Inc. is a car dealer in
Las Vegas, Nevada.
Chapter 11 Petition Date: May 5, 2020
Court: United States Bankruptcy Court
District of Nevada
Case No.: 20-12221
Judge: Hon. Mike K. Nakagawa
Debtor's Counsel: Brandy Brown, Esq.
KUNG & BROWN
214 S. Maryland Pkwy.
Las Vegas, NV 89101
Tel: 702-382-0883
E-mail: bbrown@ajkunglaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Anderson Voss, president.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/9T4zOp
ENERGY SAVING: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The Office of the U.S. Trustee on May 4, 2020, disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Energy Saving Solutions.
About Energy Saving Solutions
Energy Saving Solutions sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Ill. Case No. 20-70352) on March 12,
2020. At the time of the filing, Debtor had estimated assets of
less than $50,000 and liabilities of between $500,001 and $1
million. Judge Mary P. Gorman oversees the case. Andrew D.
Bourey, Esq., at Bourey Law Offices, is Debtor's legal counsel.
EVO PAYMENTS: S&P Alters Outlook to Negative, Affims 'B' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook on U.S.-based merchant
acquirer EVO Payments International LLC to negative from stable and
affirmed all of its ratings on the company, including its 'B'
issuer credit rating.
A sharp reduction in consumer discretionary spending from global
lockdowns in response to the COVID-19 pandemic will lead to steep
revenue and EBITDA declines and elevated leverage. EVO generated
a 6% gain (8% in constant currency) in gross revenues year over
year of $598 million, driven by recent acquisitions and organic
growth in international markets. The company reported leverage of
about 5.3x as of Dec. 31, 2019. Free cash flow for the year was a
deficit of about $10 million, primarily due to the timing of
settlement activities; changes in those working capital accounts
resulted in an outflow of $59 million. Contrary to S&P's previous
expectations of at least a mid-single-digit revenue increase, it
now expect to see year-over-year transaction volume to trough in
the second quarter (about a 25% decline) and remain soft for the
rest of the year. This translates to a revenue decline of 15%-20%
in 2020, raising leverage to the low-8x area over the coming
quarters (low-7x area excluding the company's preferred equity).
Similar to its peers, the company announced a few measures to
reduce costs and preserve cash, including lowering growth-oriented
capital expenditure (including merchant acquisition costs) by up to
75% and reducing fixed operating expenses by up to 20% for the
remainder of the year.
The negative outlook reflects the risk that sluggish consumer
spending from gradual easing on social distancing across the globe
could continue to pressure EVO's operational performance over the
next 12 months, causing leverage to remain elevated before a
significant recovery.
"We could lower the rating if a delayed recovery in consumer
spending causes EVO's financial performance to deteriorate further,
such that leverage remains above 7.5x over the coming year. We
could also lower the rating if debt-financed acquisitions or
shareholder returns cause its leverage to remain above 7.5x," S&P
said.
"We could revise the outlook on EVO to stable if the economy
recovers more quickly from COVID-19 such that transaction volume
rebounds, leading to a material improvement in EVO's revenue and
profitability causing leverage to decline below 7.5x," S&P said.
FRANK & LUPE II: Seeks Court Approval to Hire A&A Accounting
------------------------------------------------------------
Frank & Lupe II, LLC, seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to hire A&A Accounting and Tax
Services, LLC as its accountant.
A&A Accounting will provide these services:
a. review of Debtor's finances;
b. advice on Debtor's business assets and entity valuations for
its bankruptcy analysis;
c. preparation of monthly reports required by the United States
Trustee, if needed;
d. day-to-day bookkeeping and payroll; and
e. preparation of yearly, monthly and quarterly state and
federal tax returns.
The firm will be paid at its standard hourly rate of $225.
A&A Accounting does not represent any interest adverse to Debtor
and its bankruptcy estate, according to court filings.
About Frank & Lupe II
Frank & Lupe II, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 20-02778) on March 16, 2020, disclosing
under $1 million in both assets and liabilities. Judge Eddward P.
Ballinger Jr. oversees the case. The Debtor tapped Allen Barnes &
Jones as its legal counsel, and A&A Accounting and Tax Services,
LLC as its accountant.
FUELCELL ENERGY: BioFuels Project Construction Begins
-----------------------------------------------------
FuelCell Energy, Inc. reported the commencement of site
construction for its 1.4 megawatt SureSource 1500 biofuels fuel
cell project with the City of San Bernardino Municipal Water
Department (SBMWD) in California. The project is expected to
become commercially operational in December 2020.
Key highlights include:
* The SureSource 1500 power plant will operate on the City's
anaerobic digester gas (ADG), which will be treated by the
proprietary SureSource TreatmentTM system, cleanly producing
electricity and thermal energy to support the operation of
the SBMWD water reclamation plant.
* The SureSource TreatmentTM system is a proprietary clean up
technology optimized by FuelCell Energy's extensive
experience with on-site biogas treatment. This system
allows FuelCell Energy to clean up biofuel and use it on
site without injection into the common carrier gas pipeline.
Gas treatment requirements are reduced compared to pipeline
injection because of the ability of SureSource fuel cell
systems to utilize low-Btu biogas.
* Following the commercial operation date, the SBMWD will
purchase the clean electricity produced through a 20-year
Power Purchase Agreement (PPA).
* FuelCell Energy's SureSource power platform will use
methane–rich biogas that would otherwise be flared, wasting
energy and producing emissions, to produce clean, renewable,
carbon neutral power.
* Servicing a population of approximately 200,000 residents,
the SBMWD delivers more than 15.5 billion gallons of water
per year, and provides wastewater collection and treatment
at the water reclamation plant.
* Pursuant to FuelCell Energy's existing $200 million credit
agreement with Orion Energy Partners, Orion Energy Partners
has agreed that up to $3.5 million previously advanced by
Orion Energy Partners and currently in a FuelCell Energy
restricted account may be applied to reimburse the Company
for construction costs for the project incurred to date and
for future project construction costs.
"A few months ago, FuelCell Energy committed to executing on the
build-out of our PPA backlog. That is exactly what we are doing.
We are excited to enter the construction phase of our 1.4 megawatt
project with the city of San Bernardino Municipal Water Department.
The San Bernardino SureSource platform will utilize our
utility-scale fuel cell power and heat platform, coupled with our
proprietary engineered biogas treatment system," commented Jason
Few, president and chief executive officer, FuelCell Energy. "The
continuous power profile of our platforms makes them an excellent
fit with wastewater treatment plants. Specifically, our fuel cell
can operate at peak efficiency utilizing the on-site anaerobic
digester gas while providing important thermal heat that enhances
the treatment process. Perhaps most importantly, our platform will
enable the reduction in usage of another flare."
Miguel Guerrero, general manager of the San Bernardino Municipal
Water Department commented, "The FuelCell Energy fuel cell plant
will produce renewable energy for the Water Department by using the
biogas generated at the Water Reclamation Plant. Especially
important to our city is the reduction of the flaring of the waste
water treatment biogas, which is also a key element in the
Department's compliance plans with the South Coast Air Quality
Management District."
About FuelCell Energy
Headquartered in Danbury, Connecticut, FuelCell Energy, Inc. --
http://www.fuelcellenergy.com-- is a global developer of
environmentally responsible distributed baseload power solutions
through its proprietary fuel cell technology. The Company develops
turn-key distributed power generation solutions and operate and
provide comprehensive services for the life of the power plant.
The Company provides solutions for various applications, including
utility-scale distributed generation, on-site power generation and
combined heat and power, with the differentiating ability to do so
utilizing multiple sources of fuel including natural gas, Renewable
Biogas (i.e., landfill gas, anaerobic digester gas), propane and
various blends of such fuels.
Fuelcell reported a net loss attributable to common stockholders of
$100.25 million for the year ended Oct. 31, 2019, a net loss
attributable to common stockholders of $62.17 million for the year
ended Oct. 31, 2018, and a net loss attributable to common
stockholders of $57.10 million for the year ended Oct. 31, 2017.
As of Jan. 31, 2020, FuelCell had $391.4 million in total assets,
$267.0 million in total liabilities, $59.85 million in redeemable
series B preferred stock, and $64.58 million in total stockholders'
equity.
GENERAL ELECTRIC: Aviation Unit to Cut 25% of Workforce
-------------------------------------------------------
General Electric's aviation unit on May 4, 2020, revealed plans to
slash its workforce by up to 25% -- roughly 13,000 jobs -- this
year as the coronavirus pandemic threatens to drive down demand for
new aircraft.
"As this pandemic continues to advance, our understanding of its
impact on our industry and our business has also evolved. The deep
contraction of commercial aviation is unprecedented, affecting
every customer worldwide. Global traffic is expected to be down
approximately 80% in the second quarter when compared to the start
of the pandemic's effect in China in early February. Our aircraft
manufacturers have announced reduced production schedules that will
extend into 2021 and beyond reacting to the projected prolonged
recovery," GE (NYSE:GE) Vice Chair and President and CEO, GE
Aviation David Joyce said in a message to employees.
"To protect our business, we have responded with difficult
cost-cutting actions over the last two months. Unfortunately, more
is required as we scale the business to the realities of our
commercial market."
GE Aviation manufactures some of the most commonly used passenger
and military aircraft engines and provides services including
engine overhauls to the aviation sector.
"We are developing our plan for permanent reductions to our global
employee base that we anticipate will bring our total reductions
this year to as much as 25% (including both voluntary and
involuntary actions already announced).* In GE’s earnings call
last week, we shared that Aviation is developing $1 billion of cost
actions and $2 billion of cash actions in 2020, which includes
these anticipated reductions," Joyce said to employees.
"These plans, which we expect will be ready over the coming months,
are part of a comprehensive strategy we are developing for resizing
the business consistent with the forecast of our commercial market.
While extremely difficult, I am confident this is the required
response to the continued contraction of the industry, and its
protracted recovery. I am equally confident that the industry will
recover over time and that we will be positioned to win."
Reuters said that the job cuts are the latest mounting woes for the
aviation sector that are now expected to last into 2021 as U.S.
passenger air travel demand has fallen by 95%.
About General Electric
Headquartered in Boston, General Electric Company (NYSE:GE) is an
American multinational conglomerate that has been a household name
since it was founded by Thomas Edison in the 19th century.
Incorporated in 1892 as a result of a merger between the
Thomson-Houston Company and the Edison General Electric Company, GE
evolved into an iconic American company known for its record of
innovation. Over time it expanded across a range of industries,
and is presently in aviation, healthcare, power, renewable energy,
digital industry, additive manufacturing, venture capital and
finance, lighting, and oil and gas.
After former chemical engineer John F. Welch Jr. assumed the top
spot at GE in 1981, GE acquired RCA and NBC and expanded into the
financial services sector. By the time Mr. Welch stepped down in
2001, he had transformed GE from a $25 billion manufacturing
company into a $130 billion super-conglomerate.
GE used to be one of America's most valuable companies, with its
market value peaking at $594 billion in 2000.
GE has since saw a dramatic decline in performance and
profitability, burdened by debt, missteps about mergers and
acquisitions, and questions into its accounting practices. GE
foundered in several key industrial markets, and a diversion into
financial services steered it into the eye of the global financial
crisis in 2008.
On June 26, 2018, the stock was removed from the elite Dow Jones
Industrial Average, after over a century in the blue chip stock
index.
On Aug. 15, 2019, Harry Markopolos, who famously blew the whistle
on Bernie Madoff's Ponzi scheme, published a report claiming that
GE has been running a decades-long accounting fraud to the tune of
$38 billion.
* * *
The Company reported a net loss of $4.979 billion on $95.214
billion of revenue for 2019, compared with a net loss of $22.36
billion on $121.6 billion of revenue in 2018, and a net loss of
$8.849 billion on $118.2 billion of revenue in 2017.
The Company reported net earnings of $6.156 billion on $20.52
billion of revenue for the three months ended March 31, 2020,
compared with earnings of $3.549 million on $22.20 billion of
revenue in the same period in 2019.
The Company reported total assets of $262.0 billion against total
liabilities of $225.1 billion as of March 30, 2020.
GGP NIMBUS: Bank Debt Trades at 25% Discount
--------------------------------------------
Participations in a syndicated loan under which GGP Nimbus LLC is a
borrower were trading in the secondary market around 75
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $2 billion facility is a term loan. About $2 billion of the
loan remains outstanding. The loan is scheduled to mature on
August 24, 2025.
The Company's country of domicile is United States.
GI DYNAMICS: Crystal Amber Extends Maturity of 2017 Note to May 15
------------------------------------------------------------------
GI Dynamics Inc. said it is currently having detailed discussions
with institutional and private investors regarding a potential
fundraising. In addition, the Company is seeking to secure a
bridge loan in the event that its current cash reserves are
insufficient to sustain the Company's operations until the closing
of any financing that it may be able to secure. However, there is
no guarantee that the Company will be successful in securing a
bridge loan or funds from any potential investors. If such funds
cannot be secured, the Company would need to cease operations.
Crystal Amber Fund Limited has indicated to the Company that it
remains supportive of these ongoing financing efforts of the
Company. As a result, Crystal Amber has agreed to extend the
maturity date of the Senior Secured Convertible Note issued to
Crystal Amber on June 15, 2017 from May 1, 2020 to May 15, 2020.
As part of its ongoing financing efforts, the Company has also been
considering the possibility of delisting from the Official List of
the ASX and has recently applied to the ASX for in-principle advice
in this regard. The Company will provide an update on the
potential delisting upon receipt of the in-principle advice from
ASX, however, at this stage the Company anticipates that it will
shortly be seeking to hold a Special Meeting of Stockholders to
approve a resolution to delist the Company from the Official List
of the ASX.
COVID-19
The Company has implemented business continuity plans in response
to the COVID-19 pandemic. Patient safety for all patients enrolled
in the STEP-1 Pivotal Trial of EndoBarrier in the U.S., regulatory
compliance, and the scientific integrity of its work remains
paramount. In the short term, and as has been experienced
elsewhere, the pace of patient enrollment has been adversely
affected by the pandemic. The Company has proactively paused
recruitment in the STEP-1 Trial until further notice. Given the
morbidity and adverse outcome rates amongst patients suffering from
the pre-existing conditions of diabetes and obesity, the Company
believes the unmet clinical need for EndoBarrier has never been
more urgent and acute.
About GI Dynamics
Founded in 2003 and headquartered in Boston, Massachusetts, GI
Dynamics, Inc. (ASX:GID) is a developer of EndoBarrier, an
endoscopically-delivered medical device for the treatment of type 2
diabetes and the reduction of obesity. EndoBarrier is not approved
for sale and is limited by federal law to investigational use only.
EndoBarrier is subject to an Investigational Device Exemption by
the FDA in the United States and is entering concurrent pivotal
trials in the United States and India.
GI Dynamics reported a net loss of $17.33 million for the year
ended Dec. 31, 2019, compared to a net loss of $8.04 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$4.18 million in total assets, $7.38 million in total liabilities,
and a total stockholders' deficit of $3.20 million.
Wolf and Company, P.C., Boston, Massachusetts, the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated March 26, 2020 citing that the Company has suffered
losses from operations since inception and has an accumulated
deficit and working capital deficiency that raise substantial doubt
about the Company's ability to continue as a going concern.
GTT COMMUNICATIONS: Bank Debt Trades at 28% Discount
----------------------------------------------------
Participations in a syndicated loan under which GTT Communications
Inc is a borrower were trading in the secondary market around 72
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.8 billion facility is a term loan. The loan is scheduled to
mature on May 31, 2025. About $1.7 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
HARLEY LLC: Seeks Court Approval to Hire Accountant
---------------------------------------------------
Harley, LLC, seeks approval from the U.S. Bankruptcy Court for the
Southern District of Indiana to hire an accountant.
In its application, the Debtor proposes to employ Robyn Krutchkoff,
EA to provide these accounting services:
(a) assist Debtor in communications with Revenue Officers;
(b) assist Debtor in its reconstruction of missing
informational returns;
(c) assist in collecting and reviewing information requested
by Revenue Officers;
(d) negotiate with Revenue Officers to release liens and
levies against Debtor; and
(e) assist in negotiating of installment agreements for unpaid
taxes and penalties.
Ms. Krutchkoff will charge an hourly fee of $120.
Ms. Krutchkoff represents no other entity in connection with
Debtor's Chapter 11 case, according to court filings.
About Harley LLC
Harley, LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Ind. Case No. 19-70172) on Feb. 14, 2019. At the
time of the filing, Debtor had estimated assets of less than
$50,000 and liabilities of between $1 million and $10 million.
Judge Andrea K. Mccord oversees the case. John Andrew Goodridge,
Esq., is the Debtor's bankruptcy attorney.
HOMER CITY: Bank Debt Trades at 47% Discount
--------------------------------------------
Participations in a syndicated loan under which Homer City
Generation LP is a borrower were trading in the secondary market
around 53 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $145 million facility is a term loan. The loan is scheduled to
mature on April 6, 2023. About $141 million of the loan remains
outstanding.
The Company's country of domicile is United States.
IMAGINE CHARTER: Moody's Rates Series 2020A & 2020B Bonds 'Ba2'
---------------------------------------------------------------
Moody's Investors Service has assigned an initial Ba2 rating to
Imagine Charter School at Firestone, CO's $24.9 million Charter
School Revenue Bonds (Imagine Charter School at Firestone Project)
Series 2020A and $260,000 Charter School Revenue Bonds (Imagine
Charter School at Firestone Project) Federally Taxable Series
2020B. Following the sale, Imagine Charter School at Firestone will
have about $25 million in charter school revenue bonds outstanding.
The outlook is stable.
RATINGS RATIONALE
The underlying Ba2 rating reflects elevated leverage and fixed
costs associated with long-term debt and pension burdens and a very
weak waitlist that currently consists of a few dozen students in
kindergarten. The rating further incorporates stable financial
trends, a twelve-year operating history supported by several
charter renewals, adequate legal covenants and Colorado's intercept
mechanism.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. The coronavirus crisis is not a key driver for this
rating action. Moody's does not see any material immediate credit
risks for Imagine Charter School at Firestone. However, the
situation surrounding coronavirus is rapidly evolving and the
longer-term impact will depend on both the severity and duration of
the crisis. If its view of the credit quality of Imagine Charter
School at Firestone changes, Moody's will update the rating and/or
outlook at that time.
RATING OUTLOOK
The stable outlook reflects its expectation that the school's
established operating history coupled with management's ability to
maintain solid liquidity despite some enrollment fluctuations will
continue to support stable operations going forward.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Further bolstering of liquidity coupled with healthy and
sustained debt service coverage
- Enrollment growth that consistently fills the school to
capacity coupled with an improved waitlist
- Significant reduction in leverage related to long-term debt and
pension burdens
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Material declines in liquidity
- Enrollment declines
- Inability to provide adequate coverage following the issuance
of the 2020 bonds
LEGAL SECURITY
Proceeds of the Series 2020 bonds will be loaned to ISF Building
Corporation from the Colorado Educational and Cultural Facilities
Authority. The ISF Building Corporation will serve as the borrower
under a loan and security agreement and the lessor under the lease
agreement. The corporation's obligation to make payments under the
loan agreement are absolute and unconditional. Under the loan
agreement, the corporation agrees to effect direct payment of debt
service from Colorado's State Treasurer to the Trustee in 1/6
interest and 1/12 principal amounts. This puts into place
Colorado's intercept mechanism for charter schools. Imagine Charter
School at Firestone, per the lease agreement, will lease the school
from the corporation with base rents equal to debt service
payments. State aid payments are the school's primary source of
revenue and are the principal and expected source of repayment of
the bonds. However, the revenues under the pledge include all
revenues, rentals, fees, third-party payments, receipts,
contributions or other income derived from the facilities. The
bonds are additionally secured by a mortgage on, and security
interest in, the facility.
Bond covenants include a 40 days' cash on hand requirement and a
minimum of 1.1x annual debt service coverage. Bondholders
additionally benefit from a fully funded debt service reserve fund
at maximum annual debt service on the bonds. Imagine Charter School
at Firestone has no plans to issue additional debt at this time
though the current bonds have an Additional Bonds Test based both
on projected coverage and historical coverage. To issue addition
bonds the projected net revenue available for debt service in the
first two fiscal years following completion of the newly financed
project must equal at least 1.2x MADS on all debt or the historical
net revenue available for debt service in the most recent audited
fiscal year must equal at least 1.1x MADS on all debt.
USE OF PROCEEDS
The school's current facility sits on six acres of land and
includes a two-story building that is about 48,000 square feet with
29 classrooms, a library, a media center, a cafeteria/common area
and a parking lot with approximately 66 parking spaces. The
expansion project being financed with the Series 2020 bonds will
include the construction of a 16,000 square foot addition to the
existing facility that will house a full-size gymnasium and
additional classroom space designed for special education
classrooms.
PROFILE
Imagine Charter School at Firestone is a Colorado charter school
and nonprofit corporation, established under a charter contract
granted by St. Vrain Valley School District RE-1J (Aa2 stable). The
original charter contract became effective on July 1, 2008 and it
has been renewed on several occasions including the most recent
contract renewal on June 26, 2019. The charter school opened for
the Fiscal 2009 school year with an initial enrollment of 325 full
time students in grades kindergarten through eighth grade.
Enrollment in grades K-8 now totals 580 students and the school
operates a pre-school program serving about 80 students.
The charter school entered into an operating agreement on July 21,
2008 with Imagine Schools, Inc. Per the agreement, imagine provides
management services to the school including the administration and
supervisions of the personnel, materials, equipment and facilities
necessary for the provision of educational services to students,
and the management, operation and maintenance of the school.
METHODOLOGY
The principal methodology used in these ratings was US Charter
Schools published in September 2016.
J CREW: $182.4MM Bank Debt Trades at 43% Discount
-------------------------------------------------
Participations in a syndicated loan under which J Crew Group Inc is
a borrower were trading in the secondary market around 57
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $182.4 million facility is a term loan. About $176.9 million
of the loan remains outstanding. The loan is scheduled to mature
on March 5, 2021.
The Company's country of domicile is United States.
J CREW: Bank Debt Trades at 39% Discount
----------------------------------------
Participations in a syndicated loan under which J Crew Group Inc is
a borrower were trading in the secondary market around 61
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.3 billion facility is a term loan. The loan is scheduled to
mature on March 5, 2021. About $1.2 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
J. CREW: Moody's Cuts PDR to D-PD on Chapter 11 Filing
------------------------------------------------------
Moody's Investors Service downgraded J. Crew Group, Inc's
probability of default rating to D-PD from Ca-PD following the
company's announcement[1] that it has filed for protection under
Chapter 11 of the US Bankruptcy Code. Moody's concurrently affirmed
J.Crew's Caa3 corporate family rating and Caa3 rating on the senior
secured term loans. Additionally, Moody's affirmed the Caa3 ratings
on the senior secured notes and senior secured private placement
notes issued by J.Crew Brand, LLC. The speculative-grade liquidity
rating remains at SGL-4 and the ratings outlook has been changed to
stable from negative.
"The severe disruption to the apparel retail sector from
coronavirus-driven store closures, decline in apparel spending and
deep promotions have compounded J.Crew's challenges," said Moody's
Vice President and senior analyst Raya Sokolyanska. "The bankruptcy
will relieve liquidity stress by allowing the company to
substantially reduce its $2 billion pre-petition debt burden,
cancel and renegotiate leases, and reduce amounts owed to
suppliers."
Moody's took the following rating actions:
Issuer: J.Crew Group, Inc.
Corporate family rating, affirmed Caa3
Probability of default rating, downgraded to D-PD from Ca-PD
Senior secured bank credit facility, affirmed Caa3 (LGD3)
Outlook, changed to stable from negative
Issuer: J.Crew Brand, LLC
Senior secured regular bond/debenture, affirmed Caa3 (LGD3)
Outlook, changed to stable from negative
RATINGS RATIONALE
On May 4, 2020, J.Crew and its subsidiaries commenced voluntary
Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern
District of Virginia. The company has received commitments of $400
million in debtor-in-possession financing facility 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. J.Crew has also signed a transaction
support agreement with an ad hoc committee comprised of a majority
of the holders of its term loans, IpCo notes, preferred and common
equity. The agreement specifies that J.Crew's approximately $2
billion pre-petition debt will be converted into 82% of
post-petition common equity.
Subsequent to its actions, Moody's will withdraw all of its ratings
for J. Crew given the company's bankruptcy filing.
J.Crew Group, Inc. is a retailer of women's, men's and children's
apparel, shoes and accessories. For the fiscal year ended February
1, 2020, the company generated $2.5 billion of sales through its
stores (193 J.Crew, 172 J.Crew Factory and 132 Madewell locations),
websites, catalogs and retail partners. The company is owned by TPG
Capital, L.P., Leonard Green & Partners, L.P., former HoldCo
noteholders, and others.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
JC PENNEY: Bank Debt Trades at 53% Discount
-------------------------------------------
Participations in a syndicated loan under which JC Penney Corp Inc
is a borrower were trading in the secondary market around 47
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.7 billion facility is a term loan. The loan is scheduled to
mature on June 23, 2023. About $1.5 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
KARISCOM LLC: Seeks Court Approval to Hire Wlezniak Accounting
--------------------------------------------------------------
Kariscom, LLC, seeks approval from the U.S. Bankruptcy Court for
the District of Arizona to hire Wlezniak Accounting & Tax, LLC to
provide tax, accounting and bookkeeping advice.
Wlezniak will be paid a monthly flat fee of $3,000.
Joseph Wlezniak, managing member of Wlezniak, disclosed in court
filings that he and his firm do not have connections with Debtor
and its creditorsor any other "party in interest."
Wlezniak can be reached through:
Joseph W. Wlezniak
Wlezniak Accounting & Tax, LLC
16099 N. 82nd St., Suite B-2
Scottsdale, AZ 85260
About Kariscom LLC
Kariscom, LLC, d/b/a VeraPax -- https://www.verapax.com/ -- is an
online- based marketing company that provides a wide variety of
services for all printing needs. It prints banners, flyers,
postcards, brochures, graphic design, stickers, business cards,
short run posters, and booklets/magazines.
Kariscom, LLC, based in Scottsdale, Ariz., filed a Chapter 11
petition (Bankr. D. Ariz. Case No. 20-02878) on March 18, 2020. In
the petition signed by Heather Lisciarelli, president, Debtor
disclosed $364,572 in assets and $1,154,964 in liabilities. Judge
Madeleine C. Wanslee presides over the case. D. Lamar Hawkins,
Esq., at Guidant Law, PLC, is Debtor's bankruptcy counsel.
LEGACY JH762: May 7 Disclosure Statement Hearing Set
----------------------------------------------------
Debtor Legacy JH762, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Disclosure Statement. On April
17, 2020, Judge Mindy A. Mora ordered that:
* May 7, 2020, 2020 at 1:30 p.m. in the United States Bankruptcy
Court, Flagler Waterview Building, 1515 North Flagler Drive 8th
Floor, Courtroom A, West Palm Beach, FL 33401 is the hearing to
consider approval of the Disclosure Statement and the U.S.
Trustee's motion to dismiss.
* April 22, 2020, is the deadline for responses from opposing
counsel.
* April 24, 2020, is the deadline for responses for final
red-line and clean filing.
* May 1, 2020, is the deadline for final objections to disclosure
statement.
A full-text copy of the order dated April 17, 2020, is available at
https://tinyurl.com/uqofvnp from PacerMonitor at no charge.
About Legacy JH762 LLC
Legacy JH762, LLC, owns three real properties in Pinehurst, N.C.
and Jupiter, Fla., having a total comparable sale value of $5.1
million.
Legacy JH762 filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-16308) on May 23,
2019. In the petition signed by James W. Hall, managing member, the
Debtor disclosed $5,100,100 in assets and $3,456,044 in
liabilities. David L. Merrill, Esq., at The Associates, is the
Debtor's counsel.
LICK INDUSTRIES: To Sell University Property to Pay Chondrite Claim
-------------------------------------------------------------------
Debtor Lick Industries, LLC, filed the Fourth Amended Combined Plan
and Disclosure Statement.
The Class 5 claim of the Chondrite Asset Trust is impaired.
Chondrite has a prepetition claim in the amount of $305,665 against
the Debtor, secured by a mortgage lien on the real property located
at 312 East University Ave., Royal Oak, MI 48067. The fair market
value of the University Property is $250,000. Chondrite will have
an allowed secured claim in the amount of $240,000. Chondrite will
receive monthly interest payments in the amount of $1,000 (to be
contributed by Debtor's principal), beginning immediately upon
confirmation of the Plan and continuing on the 1st day of each
month thereafter. Such payments and maintaining of insurance will
continue until the University Property securing its lien, is sold
or Debtor obtains sufficient financing to pay Chondrite's claim in
full, or the property is surrendered to Chondrite. Chondrite will
retain its lien on the University Property, unless and until the
property is sold or alternate financing obtained by the Debtor
pursuant to the provisions of this Plan after which such lien shall
be promptly released.
Class 6 General Unsecured Claims are impaired. The Debtor intends
to pay these claims on a pro rata basis to the extent funds become
available from (1) the sale of at 637 S. Connecticut Ave., Royal
Oak, MI 48067, (2) recovery of Debtor's claim against Rockies
Renovations, and contribution of Debtor's disposable income.
The Debtor's ability to retain the Property by contribution of new
value will not impact Wells Fargo's claim or claims in any way;
these provisions are intended to specify the amount which would
need to be devoted to unsecured creditors for Debtor to retain an
interest in the property if the property is not sold within one
year and the Debtor is able to refinance the property and pay off
Wells Fargo's claim.
The Debtor wil have until Aug. 1, 2020 to sell the 312 East
University Ave. Property or for the Debtor to obtain alternate
financing to pay the Chondrite Allowed Secured Claim in full. The
Chondrite Allowed Secured Claim will be paid in full at closing or
contemporaneous with any alternate financing obtained by the
Debtor. In the event that the net proceeds from the sale or the
funds available from Debtor's alternate financing are insufficient
to pay the Chondrite Allowed Secured Claim in full, the Debtor's
principal (Craig Lick) or any third party acting on his behalf must
contribute at closing or contemporaneous with the alternate
financing the amount necessary to make up the difference so that
the Chondrite Allowed Secured Claim is paid in full at closing or
contemporaneous with any alternate financing.
A full-text copy of the Fourth Amended Disclosure Statement dated
April 17, 2020, is available at https://tinyurl.com/y9samrfe from
PacerMonitor at no charge.
The Debtor is represented by:
OSIPOV BIGELMAN P.C.
Anthony J. Miller
20700 Civic Center Drive, Suite 420
Southfield, MI 48076
Tel: (248) 663-1804
Fax: (248) 663-1801
E-mail: am@osbig.com
About Lick Industries
Lick Industries, LLC, is a Michigan Limited Liability Company in
the business of purchasing residential real estate in need of
repairs, completing such repairs, and subsequently selling the
rehabilitated real estate for a profit.
Lick Industries filed a voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 19-51017) on July 30,
2019, estimating under $1 million in both assets and liabilities.
Yuliy Osipov, Esq., at Osipov Bigelman, P.C., represents the
Debtor.
LIFESCAN GLOBAL: Moody's Cuts CFR to B3 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service downgraded LifeScan Global Corporation's
Corporate Family Rating to B3 from B2 and its Probability of
Default Rating to B3-PD from B2-PD. Moody's also downgraded the
company's first lien revolving credit facility rating to Ba3 from
Ba2, its senior secured term loan B rating to B3 from B2 and the
second lien term loan rating to Caa2 from Caa1. The outlook was
revised to stable from negative.
The downgrade reflects rising business risk for LifeScan as
revenues have continued to decline well beyond Moody's previous
expectations. LifeScan's revenues declined more than 11% in 2019
and Moody's expects revenues will continue to decline in the high
single digit range in 2020. This reflects the very rapid pace of
adoption of Continuous Glucose Monitoring sensors in key markets
such as the US, negatively affecting LifeScan's position in
traditional blood glucose monitoring. The CGM market has grown at a
rapid pace over the course of 2019, evidenced by Abbott
Laboratories (A3 stable) achieving more than 60% organic growth
rate in sales of its FreeStyle Libre CGM product in its most recent
fiscal quarter. The downgrade also reflects the narrowing cushion
for the company to maintain positive cash flow after all debt
servicing obligations including meaningful mandatory term loan
amortization.
The stable outlook reflects the company's good overall liquidity
profile with cash and undrawn revolver capacity in excess of $200
million as well as the company's moderate leverage with debt/EBITDA
near four times. The stable outlook also reflects the successful
competition of the separation of the company from its former parent
company Johnson & Johnson (Aaa negative).
Rating Actions:
LifeScan Global Corporation:
Corporate Family Rating downgraded to B3 from B2
Probability of Default Rating downgraded to B3-PD from B2-PD
Gtd 1st Lien Senior Secured Revolving Credit Facility downgraded to
Ba3 (LGD1) from Ba2 (LGD1)
Gtd 1st Lien Senior Secured Term Loan B downgraded to B3 (LGD4)
from B2 (LGD3)
$275 million Gtd 2nd Lien Senior Secured Term Loan downgraded to
Caa2 (LGD6) from Caa1 (LGD5)
Outlook Actions:
Revised to Stable from Negative
RATINGS RATIONALE
LifeScan's B3 CFR reflects Moody's expectation that revenue
declines will persist in the high single digit range for at least
the next 2 years due to structural declines in volume for BGM
products. While the company has acted to reduce operating costs and
has successfully executed the transition to a stand-alone operating
company, it remains uncertain if the company can maintain stable
levels of EBITDA and cash flow. LifeScan's ratings reflect the
company's moderate leverage with debt/EBITDA in the low four times
range as well as its position as the global market leader in BGM
products. The company has meaningful minimum debt amortization
requirements, thus offsetting at least in part the impact of
earnings pressure on credit ratios. However, the mandatory term
loan amortization absorbs a significant portion of operating cash
flow and the company may burn cash if EBITDA declines persist.
LifeScan also benefits from a good liquidity profile with access to
cash and undrawn revolving credit facilities of more than $200
million.
Medical device companies face moderate social risk. However, they
regularly encounter elevated elements of social risk, including
responsible production as well as other social and demographic
trends. Risks associated with responsible production include
compliance with regulatory requirements for safety of medical
devices as well as adverse reputational risks arising from recalls,
safety issues or product liability litigation. Medical device
companies will generally benefit from demographic trends, such as
the aging of the populations in developed countries. That said,
increasing utilization may pressure payors, including individuals,
commercial insurers or governments to seek to limit use and/or
reduce prices paid. Moody's believes the near-term risks to pricing
are manageable, but rising pressures may evolve over a longer
period.
The stable outlook reflects the company's good liquidity profile
and successful execution of the separation from its former parent
company.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if revenues and earnings stabilize, which
could occur over time as emerging markets, which are growing,
become a larger portion of the overall business. Quantitatively,
ratings could be upgraded if debt/EBITDA falls below 4 times while
maintain a good liquidity profile.
Ratings could be downgraded if revenue declines are sustained in
the high single digit range, negatively impacting earnings and cash
flow over times. Ratings could be downgraded if free cash flow to
debt trends toward the mid-single digits or the company's liquidity
profile were otherwise to erode.
Headquartered in Chesterbrook, PA and Zug, Switzerland LifeScan
Global Corporation is a global manufacturer and distributor of BGM
products including meters, testing strips, lancets, point of care
testing systems and related monitoring software. Revenues are
approximately $1.2 billion. LifeScan, previously a division of
Johnson & Johnson, was acquired by affiliates of Platinum Equity in
October 2018.
The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.
LIGHTSTONE HOLDCO: Bank Debt Trades at 20% Discount
---------------------------------------------------
Participations in a syndicated loan under which Lightstone Holdco
LLC is a borrower were trading in the secondary market around 80
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.9 billion facility is a term loan. The loan is scheduled to
mature on January 30, 2024. About $1.9 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
LINDBLAD EXPEDITIONS: Bank Debt Trades at 23% Discount
------------------------------------------------------
Participations in a syndicated loan under which Lindblad
Expeditions Inc is a borrower were trading in the secondary market
around 77 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $160 million facility is a term loan. About $157.2 million
of the loan remains outstanding. The loan is scheduled to mature
on March 27, 2025.
The Company's country of domicile is United States.
LUMASTREAM INC: May 27 Auction of All Assets Set
------------------------------------------------
Judge Catherine Peek McEwen of the U.S. Bankruptcy Court for the
Middle District of Florida authorized the bidding procedures of
LumaStream, Inc. in connection with the auction sale of
substantially all assets.
By no later than five days after the entry of the Bid Procedures
Order, the Debtor will serve the Sale Motion, which will ask entry
of an order approving the sale of the Offered Assets to the
bidder(s) with the highest and best offer for the Offered Assets,
or any combination of bids for certain portions of the Offered
Assets, which results in the highest and best total offer for the
Offered Assets consistent with the terms, conditions and dates set
forth in the Bid Procedures Order.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: May 22, 2020 at 5:00 p.m. (EST)
b. Initial Bid: A purchase price which is at least $6 million,
payable in cash only, and not subject to a financing contingency
(unless otherwise agreed by the Debtor).
c. Deposit: 10% of the Bid
d. Auction: If the Debtor receives a qualified Bid, acceptable
to the Debtor, at 5:00 p.m. (EST) on May 15, 2020, the Debtor may
file a motion with the Court asking approval to designate such
bidder as a Stalking Horse Bidder with any breakup fee or expense
reimbursement as may be approved by the Court. Any Breakup Fee
will be payable from the proceeds of any sale of the same portion
of the Offered Assets to a higher bidder as approved by the Court.
An auction to consider any Bids in respect of the Offered Assets
will be held at the office of Stichter Riedel on May 27, 2020 at
10:00 a.m. (EST), provided that Stichter Riedel will make
arrangements to allow Bidders to participate via video conference.
e. Bid Increments: $250,000
f. Sale Hearing: May 29, 2020 at 2:00 p.m.
g. Sale Objection Deadline: May 22, 2020 at 5:00 p.m. (EST)
As soon as practicable, but in any event no later than five
business days following entry of the Order, the Debtor will serve
the Assumption and Assignment Notice upon each counterparty to a
Contract. The Cure Amount Objection Deadline and Assumption
Objection Deadline is May 25, 2020.
About LumaStream Inc.
LumaStream, Inc., a St. Petersburg, Florida-based manufacturer of
low-voltage LED lighting systems for commercial and residential
applications, filed a Chapter 11 petition (Bankr. M.D. Fla. Case
No. 20-00999) on Feb. 5, 2020. At the time of the filing, the
Debtor estimated between $50 million and $100 million in assets,
and between $1 million and $10 million in liabilities. The
petition was signed by George Gordon, president.
Stichter, Riedel, Blain & Postler, P.A., is the Debtor's counsel.
LUMENTUM HOLDINGS: Bank Debt Trades at 18% Discount
---------------------------------------------------
Participations in a syndicated loan under which Lumentum Holdings
Inc is a borrower were trading in the secondary market around 82
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $500 million facility is a term loan. About $193.5 million of
the loan remains outstanding. The loan is scheduled to mature on
December 10, 2025.
The Company's country of domicile is United States.
MACON CONCRETE: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The Office of the U.S. Trustee on May 5, 2020, disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Macon Concrete Products, Inc.
About Macon Concrete Products
Macon Concrete Products, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. Texas Case No. 20-50628) on March
20, 2020. At the time of the filing, Debtor had estimated assets
of less than $50,000 and liabilities of between $100,001 and
$500,000. Debtor tapped Law Offices of Dean W. Greer as its legal
counsel.
MALIBU CALIFORNIA: Seeks Access to Cash Collateral Through June 27
------------------------------------------------------------------
Malibu California Model Drug Treatment Center, Inc., requests the
U.S. Bankruptcy Court for the Central District of California to
authorize its use of cash collateral in the ordinary course of its
business through June 27, 2020.
The Debtor seeks to use cash collateral in order to continue to
market, manage and operate its inpatient board and care facility
commonly known as Inspire Malibu.
The Debtor submits that the liens of creditors TVT 2.0 LLC and
Kalamata Capital Group LLC will be adequately protected by: (a)
payments to TVT in the amount of $2,000 per month and to Kalamata
in the amount of $1,500 per month; (b) the maintenance and
preservation of the going concern value of the Debtor; and (3)
replacement liens in any proceeds generated from continuation of
the Debtor's business.
The Debtor claims that TVT and Kalamata have voluntarily entered
into adequate protection stipulations allowing for monthly payments
while the Debtor uses the cash collateral.
A copy of the Motion is available for free at https://is.gd/cHs1Ut
from PacerMonitor.com.
About Malibu California Model
Drug Treatment Center, Inc.
Malibu California Model Drug Treatment Center, Inc., filed a
Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 20-10677)
on March 23, 2020, disclosing under $1 million in both assets and
liabilities. The Debtor is represented by Michael H. Raichelson,
Esq., at Michael H. Raichelson.
MAPLE HEIGHTS, OH: Moody's Ups Issuer Rating to B2, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service upgrades to B2 from B3 the issuer rating
of the City of Maple Heights, OH. Concurrently, Moody's upgrades to
B2 from B3 the rating on the city's outstanding general obligation
limited tax debt. The outlook has been revised to stable from
positive.
RATINGS RATIONALE
The upgrade to B2 reflects the city's improving but still very
narrow financial position which remains exposed to vulnerable
revenue streams and weak economic and demographic profiles. Also
considered are the city's modest debt burden and high pension
burden. The GOLT rating is the same as the issuer rating because
payment of limited tax debt service is a full faith and credit
obligation of the city.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
financial market 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. Its action reflects the impact of the crisis on Maple
Heights as the city is highly dependent on income tax revenue which
could experience a material shock in upcoming months.
RATING OUTLOOK
The stable outlook reflects its expectation that the city's
improved financial position limits the probability of a near-term
default, though weak economic conditions will challenge the city in
the coming years.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Sustained improvement in operating reserves and liquidity
- Strengthening of the demographic and economic profile
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Sustained economic challenges that pressure revenue and
operating reserves
- Substantial growth in leverage from debt and pensions
LEGAL SECURITY
Debt service on the city's outstanding GOLT debt is secured by its
full faith and credit and pledge to levy ad valorem property taxes
under the ten-mill limitation defined in Ohio law.
PROFILE
Maple Heights is a suburban community located approximately ten
miles southeast of downtown Cleveland (A1 stable). It provides
municipal services, including public safety, public works and
recreation, to approximately 22,539 residents.
METHODOLOGY
The principal methodology used in these ratings was US Local
Government General Obligation Debt published in September 2019.
MATRA PETROLEUM: Assets Sold to Melody, Liquidating Plan Filed
--------------------------------------------------------------
Matra Petroleum USA, Inc., Matra Petroleum Operating, LLC, Matra
Petroleum Oil & Gas, LLC, and Matra Terra, LLC (Matra Terra and
collectively with USA, Operating and O&G the Debtors) filed with
the U.S. Bankruptcy Court for the Southern District of Texas a
Joint Chapter 11 Plan of Liquidation and a Disclosure Statement on
April 17, 2020.
The Debtors seek to confirm the Plan which provides, in pertinent
part, for the liquidation of their remaining assets and distribute
the proceeds as provided and in the Plan.
In connection with the Matra USA Loan Agreement, Matra USA and
Melody entered into a Guaranty and Collateral Agreement, pursuant
to which Matra USA granted to Melody Business Finance, LLC, a first
priority lien on substantially all of Matra USA's assets.
As of the Petition Date, the Debtors' scheduled uncontested general
unsecured liabilities owed to non-insider creditors totaling $8.3
million. Of this, the Debtors scheduled $4,105,000 owed to Melody
and its affiliates.
The Debtors filed a motion to auction the Matra O&G Assets, Matra
Terra Assets and Matra USA Assets through an online platform called
EnergyNet.
None of the bids came close to satisfying Melody's secured debts in
the Matra USA and Matra Terra Asset Packages. Rather, Melody
credit bid $40 million for the Matra USA Assets and $4,314,074 for
the Matra Terra Assets. The Debtors requested permission to sell
the Matra USA Assets and Matra Terra Assets to Melody. After
considering the evidence, the Court entered an order approving the
sale to Melody.
The Plan provides:
* Class 5 Allowed Priority Claims. Allowed Class 5 Claims shall
receive a pro rata share of Net Distributable Cash.
* Class 6 Allowed General Unsecured Claims. After payment in
full of all Allowed Class 5 Claims, Allowed Class 6 Claims shall
receive a pro rata share of Net Distributable Cash.
* Class 9 Allowed Interests. The Holders of Class 9 Allowed
Interests in the respective Debtors will receive no distribution or
any property under the Plan on account of said Interests until
Allowed Class 1, Class 2, Class 3, Class 4, Class 5, Class 6, Class
7 and Class 8 Claims are paid as provided under the terms of the
Plan.
The Plan will be funded primarily by (1) funds contributed and
releases of claims by Melody as part of the Melody Settlement; (2)
release of administrative claims by the TRRC; (3) funds contributed
by the Officers as part of the Officers Settlement; (4) any cash
received from the sale or transfer of any Remaining Orphan Wells
which have been marketed since January 2020 and will continue to be
marketed for 30 days after the Effective Date; and (5) proceeds
from the Reserved Litigation Claims, if any.
A full-text copy of the Disclosure Statement dated April 17, 2020,
is available at https://tinyurl.com/y7cf6xun from PacerMonitor at
no charge.
The Debtors are represented by:
HOOVER SLOVACEK, LLP
Melissa A. Haselden
Deirdre Carey Brown
Vianey Garza
5051 Westheimer, Suite 1200
Galleria Tower II
Houston, Texas 77056
Telephone: (713) 977-8686
Facsimile: (713) 977-5395
E-mail: haselden@hooverslovacek.com
brown@hooverslovacek.com
garza@hooverslovacek.com
About Matra Petroleum
Matra Petroleum USA Inc. and its subsidiaries are Houston-based
independent oil and gas companies focusing on oil and gas
production. The companies sought Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 19-34190) on July 31, 2019.
Matra Petroleum USA estimated $10 million to $50 million in assets
and $50 million to $100 million in liabilities. As of July 1,
2019, the Debtors had combined secured debt in excess of $70
million, secured by liens on substantially all of the Debtors'
assets, cash and equity.
Judge David R. Jones oversees the case.
The Debtors tapped Hoover Slovacek LLP as their legal counsel;
Macco Restructuring Group, LLC as financial advisor; and MMS
Certified Public Accountants, PLLC as accountant.
MBH HIGHLAND: June 15 Auction of All Assets Set
-----------------------------------------------
Judge Charles M. Walker of the U.S. Bankruptcy Court for the Middle
District of Tennessee authorized the bidding procedures of MBH
Highland, LLC and affiliates in connection with the sale of
substantially all assets to Summit BHC West Virginia, LLC and DSKT,
LLC for $10 million, subject to overbid.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: June 10, 2020 at 4:00 p.m. (CT)
b. Initial Bid: The Bid must propose a Competing Purchase
Price for all or substantially all of the Assets, including any
assumption of liabilities, that has a value that equals or exceeds
the sum of the following: (i) the Purchase Price (as defined in the
Asset Purchase Agreement), (ii) the Bid Protections, (iii) the
Liquidated Damages, (iv) $150,000, to be paid to Tortola Advisors,
LLC if (x) the Assets are sold to a Qualified Bidder other than the
Stalking Horse Bidder, and (y) the Sale closes, and (iv) $100,000.
c. Deposit: 10% of the Competing Purchase Price
d. Auction: The Auction, to the extent that an Auction is
necessary under the Bidding Procedures, will take place at 10:00
a.m. (CT) on June 15, 2020 at the offices of Bass, Berry & Sims
PLC, 150 3rd Ave. S, Nashville, TN 37201 (or at any other time and
location as the Debtors may hereafter designate on proper notice).
e. Bid Increments: $900,000
f. Sale Hearing: June 18, 2020 at 10:00 a.m. (CT)
g. Sale Objection Deadline: June 5, 2020 at 4:00 p.m. (CT)
h. Closing: June 30, 2020
i. Break-Up Fee: $300,000
j. Expense Reimbursement: $100,000
The Stalking Horse Bidder's Credit Bid under the Asset Purchase
Agreement is approved. CHCT Lending, LLC is a secured creditor of
the Debtors, holding valid, perfected and non-avoidable liens,
claims and encumbrances in and against the Debtors, their estates,
and the Assets. It is well established among courts that creditors
can bid the full face value of their secured claims. The the
Stalking Horse Bidder is authorized to submit a Credit Bid on
behalf of CHCT Lending in an initial aggregate principal amount of
at least $10 million.
Further, in the event of a competing Qualified Bid, the Stalking
Horse Bidder will be entitled, but not obligated, to submit an
Overbid (as defined in the Bidding Procedures) and will be entitled
to include (i) the full amount of the Bid Protections, (ii) the
Liquidated Damages, and (iii) $200,000 to be paid to Tortola
Advisors, LLC if (x) the Assets are sold to a Qualified Bidder
other than the Stalking Horse Bidder, and (y) the Sale closes in
any and all such Overbids in lieu of cash for purposes of
evaluating the Stalking Horse Bidder’s Overbid against any
Qualified Bids and the then Prevailing Highest Bid.
The Debtors are authorized to enter into the Asset Purchase
Agreement, subject to higher or otherwise better offers received in
accordance with the Bidding Procedures. The Bid Protections
contained in the Asset Purchase Agreement are approved.
The Auction and Sale Notice is approved. The Sale of the Assets
will be free and clear of all Encumbrances. No later than May 6,
2020, the Debtors will serve the Auction and Sale Notice on all
Notice Parties.
The Assumption and Assignment Procedures are approved. No later
than May 6, 2020, the Debtors will file with the Bankruptcy Court
the Assumption and Assignment Notice. The Adequate Assurance
Deadline is June 16, 2020 at 4:00 p.m. (CT).
A copy of the Bidding Procedures is available at
https://tinyurl.com/ydhqweec from PacerMonitor.com free of charge.
About MBH Highland, LLC
MBH Highland, LLC operates Highland Hospital, a behavioral health
medical facility located in Charleston, West Virginia. MBH West
Virginia, LLC is the direct parent or owner of MBH Highland, LLC
and MBH Health Center LLC.
MBH Highland, LLC, sought Chapter 11 protection on (Bankr. M.D.
Tenn. Case No. 20-01940) on March 29, 2020. The case is assigned
to Judge Charles M. Walker.
The petition was signed by Wes Mason III, president of MBH West
Virginia, LLC, sole member of the Debtor.
The Debtor was estimated to have assets in the range of $1 million
to $10 million and $10 million to $50 million in debt.
The Debtor tapped Paul G. Jennings, Esq., Glenn B. Rose, Esq., and
Gene L. Humphreys, Esq., at Bass, Berry & Sims PLC as counsel.
MCDERMOTT TECHNOLOGY: Bank Debt Trades at 70% Discount
------------------------------------------------------
Participations in a syndicated loan under which McDermott
Technology Americas Inc is a borrower were trading in the secondary
market around 30 cents-on-the-dollar during the week ended Fri.,
May 1, 2020, according to Bloomberg's Evaluated Pricing service
data.
The $2.3 billion facility is a term loan. About $2.2 billion of
the loan remains outstanding. The loan is scheduled to mature on
May 10, 2025.
The Company's country of domicile is United States.
MCGRAW HILL: Bank Debt Trades at 19% Discount
---------------------------------------------
Participations in a syndicated loan under which McGraw Hill LLC is
a borrower were trading in the secondary market around 81
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.7 billion facility is a term loan. The loan is scheduled to
mature on May 4, 2022. About $1.6 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
MERIDIAN MARINA: MDP Sale to Provide Full Recovery for Unsecureds
-----------------------------------------------------------------
Meridian Marina and Yacht Club of Palm City, LLC filed an Amended
Disclosure Statement describing its Liquidating Plan dated April
17, 202, to provide for details regarding a proposed sale
transaction with Marina Development Partners.
The initial Disclosure Statement filed in this case indicated that
Debtor had obtained a buyer, 1400 Chapman, LLC, to purchase the
real property located at 1400 SW Chapman Way, as well as certain
assets. 1400 Chapman entered into the protest process through the
Government Accountability Office to protest the award of the GSA
Lease to Windward Marina Stuart.
During the GSA Lease protest by 1400 Chapman, the Debtor has been
in negotiations with a second party for the sale of the marina.
This second Letter of Intent that is not contingent on the
procurement and award of the GSA Lease. This Letter of Intent is
with Marina Development Partners (MDP LOI). Due to the GSA Lease
protest, the Debtor has been actively pursuing this back up offer.
As set forth in the MDP LOI, the sale will include both the
improved parcel, located at 1400 SW Chapman Way, as well as the
unimproved parcel located at 1120 SW Chapman Way. The agreed upon
price for the real property at 1400 Chapman Way and the associated
business assets is $6,500,000. The agreed upon price for the
unimproved parcel located at 1120 SW Chapman Way is $2,500,000.
Although award of the GSA Lease was vital to 1400 Chapman's
purchase of the assets, the GSA Lease was not vital or integral to
the sale of the Debtor's assets to any other party as the GSA Lease
was only for the Air and Marine Unit of Customs and Border Patrol
to lease an outbuilding for operations.
Once the Purchase and Sale Agreement with MDP is finalized, the
Debtor will file a Motion for Authorization to Sell Assets Free and
Clear of All Liens, Claims, Encumbrances and Interests to MDP.
The anticipated closing date is on or about June 11, 2020.
As set forth in the initial Plan and Disclosure Statement filed in
this case, it is still intended that at closing, the Buyer will pay
directly to the Secured Creditors in these cases payment in full
as set forth in each Secured Creditor's Proof of Claim, subject to
any objections sustained by the Court. Also, at closing, all
Priority Unsecured Claims and General Unsecured Claims will be
paid in full as set forth in each Creditor's Proof of Claim,
subject to any objections sustained by the Court ("Allowed Priority
and General Unsecured Claims"). The balance of the purchase
proceeds will be allocated to pay the expenses of the bankruptcy
estates, claims of administrative creditors with any remaining net
sales proceeding being paid to Debtor. The Debtor will have no
further operation upon closing of the transaction.
A full-text copy of the Amended Disclosure Statement dated April
17, 2020, is available at https://tinyurl.com/y7c4r362 from
PacerMonitor at no charge.
The Debtor is represented by:
KELLEY, FULTON & KAPLAN, P.A.
1665 Palm Beach Lakes Blvd.
The Forum - Suite 1000
West Palm Beach, FL 33401
Tel: (561) 491-1200
Fax: (561) 684-3773
About Meridian Marina & Yacht Club
Meridian Marina & Yacht Club of Palm City, LLC, based in Palm City,
FL, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No.19-18585)
on June 27, 2019. In the petition signed by Timothy Mullen, member
and manager, the Debtor disclosed $8,528,155 in assets and
$5,790,533 in liabilities. The Hon. Erik P. Kimball oversees the
case. Craig I. Kelley, Esq. at Kelley Fulton & Kaplan, P.L.,
serves as bankruptcy counsel to the Debtor.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
MICHAELS STORES: Bank Debt Trades at 17% Discount
-------------------------------------------------
Participations in a syndicated loan under which Michaels Stores Inc
is a borrower were trading in the secondary market around 83
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $2.2 billion facility is a term loan. About $2.1 billion of
the loan remains outstanding. The loan is scheduled to mature on
January 28, 2023.
The Company's country of domicile is United States.
MILLERS LANE: Exclusivity Period Extended to May 29
---------------------------------------------------
Judge Joan Lloyd of the U.S. Bankruptcy Court for the Western
District of Kentucky extended to May 29 the deadline for Millers
Lane Center, LLC to file a Chapter 11 plan and disclosure
statement.
The company has the exclusive right to solicit votes for its plan
until July 30.
About Millers Lane Center
Millers Lane Center LLC, a privately held company in the general
rental centers industry, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Ky. Case No. 19-32095) on July 2,
2019. In the petition signed by its managing member, Mark S.
Brewer, the Debtor was estimated to have assets and liabilities of
less than $10 million. Judge Joan A. Lloyd oversees the case.
The Debtor tapped Kaplan Johnson Abate & Bird LLP as bankruptcy
counsel; The Law Office of C. Thomas Hectus as special counsel; and
Winters Tax & Consulting Services, LLC as accountant.
MLN US: Bank Debt Trades at 27% Discount
----------------------------------------
Participations in a syndicated loan under which MLN US Holdco LLC
is a borrower were trading in the secondary market around 73
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.1 billion facility is a term loan. The loan is scheduled to
mature on November 30, 2025. About $1.1 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
MOOG INC: Moody's Alters Outlook on Ba2 CFR to Negative
-------------------------------------------------------
Moody's Investors Service, Inc. has affirmed its ratings of Moog,
Inc., including the corporate family rating of Ba2 and senior
unsecured rating of Ba3. Moody's changed the rating outlook to
negative from stable, reflecting the increased demand and operating
risks from the coronavirus pandemic.
"Moog derives about one third of revenue from end markets that have
been severely impacted since the coronavirus outbreak, including
industrial equipment and commercial aircraft, for both original
equipment and the aftermarket" said Moody's lead analyst, Bruce
Herskovics. "Nonetheless, Moody's expects Moog to maintain good
liquidity; having suspended the dividend and stock repurchases,
lowered operating costs/capital expenditures and likely putting
acquisitions on hold," continued Herskovics.
The spread of the coronavirus outbreak, the deteriorating global
economic outlook, very low 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 commercial aerospace and
defense sector have been adversely affected by the shock given its
indirect exposure to the severely pressured airline industry and
its sensitivity to consumer demand and market sentiment. Moog's
weakening credit profile and exposure to commercial aircraft
programs and industrial activity overall has 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 actions reflect the impact on
Moog of the breadth and severity of the shock, and the broad
deterioration in credit quality it has triggered.
RATINGS RATIONALE
The Ba2 CFR reflects good liquidity with measured financial
policies, a long-standing specialization within precision controls
and industrial automation components/applications, with products
covering many aircraft and weapon systems, a disciplined R&D
program and supportive credit metrics.
Moody's expects that Moog's revenues will decline by 20% to an
about $2.4 billion annualized run rate in the second half of fiscal
year 2020 and could remain at that level well into, if not through,
fiscal 2021. The sudden, sharp revenue contraction will pressure
operating profit margin and Moody's expects EBITDA margin will
decline by about 250 bps to about 10.5% from almost 14% for fiscal
2019 (Moody's adjusted basis). By eliminating the dividend and
reducing capital spending, Moog will be able to generate about
$200-250 million of free cash flow over the next 18 months. With
that cashflow going toward debt reduction, leverage will likely
peak between 4x and 4.25x from earnings pressure, declining
thereafter.
The speculative grade liquidity rating of SGL-2 continues
unchanged, reflecting a good liquidity profile, with expected free
cash flow generation notwithstanding the pressure on revenue
through 2021. The next debt maturity is the $130 million accounts
receivable securitization due in October 2021, then the $1.1
billion revolver in October 2024, and the rated notes in 2027. Over
$600 million of unused capacity existed under the $1.1 billion
revolving credit facility at March 31, 2020. Headroom under the
facility's maximum net leverage test will likely not permit full
access to the revolver's unused commitment but Moody's anticipates
more than $250 million of borrowing cushion can be maintained over
the next 18 months.
The negative rating outlook considers that while Moog should
possess financial flexibility to meet the challenging period ahead,
free cash flow generation may be weaker than expected as revenue
pressures could exceed its estimate, EBITDA margin may decline more
dramatically, or working capital efficiency—which Moog has
struggled to enhance in recent years-- could suffer.
The Ba3 senior unsecured note rating, one notch below the corporate
family rating, reflects its first loss position in the capital
structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating momentum would depend on the company's continued
evolution of engineering capabilities into contracts and products
that add scale and market prominence. Expectations of a good
liquidity profile with debt/EBITDA sustained in the mid-2x range
and EBIT margins above 12% could prompt consideration for a ratings
upgrade.
Downward rating pressure would mount with debt/EBITDA approaching
4.5x, or expectations of a weakening liquidity profile. A
significant reduction in R&D spending, particularly within areas of
Moog's portfolio less impacted by the near-term economic pressure,
would be viewed unfavorably.
Moog Inc., headquartered in East Aurora, New York, is a designer
and manufacturer of high-performance precision motion and fluid
controls and control systems for the commercial aerospace, defense,
industrial and medical markets. Moog reported FY2019 revenues (FYE
9/30) of $2.9 billion.
The principal methodology used in these ratings was Aerospace and
Defense Industry published in March 2018.
The following rating actions were taken:
Affirmations:
Issuer: Moog Inc.
Corporate Family Rating, Affirmed Ba2
Probability of Default Rating, Affirmed Ba2-PD
Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD5)
Outlook Actions:
Issuer: Moog Inc.
Outlook, Changed To Negative From Stable
MOUNTAIN PROVINCE DIAMONDS: S&P Cuts ICR to CCC-, Outlook Negative
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Toronto-based Mountain Province Diamonds Inc. (MPV) and its
issue-level rating on the company's second-lien secured notes to
'CCC-' from 'CCC+'. The '3' recovery rating on the notes is
unchanged.
"We believe MPV faces a high risk of exhausting its liquidity
within the next several months, and increased likelihood for
engaging in a debt restructuring transaction we view as a
distressed," S&P said.
The expected deterioration in the company's liquidity position is
directly linked to the ongoing COVID-19 pandemic; the social
distancing restrictions and business closures have effectively
ceased the sale of rough diamonds across the industry. It is
uncertain as to when (and to what extent) sales channels will
reopen.
"In addition, S&P Global Economics forecasts a global economic
recession, which in our view could result in sharply lower rough
diamond demand over the near-term that could exacerbate pressure on
already weak rough diamond industry fundamentals. In our view, MPV
has limited financial capacity to fund near-term cash outflows, and
fund its semi-annual US$12 million interest payment due June 2020
on its secured notes," S&P said.
The negative outlook reflects the heightened risk that the company
could default on its debt obligations or engage in a transaction
S&P considers a distressed exchange within the next six months.
"We could lower the rating if the company is not expected to fund
upcoming interest payments or announces a debt restructuring
transaction that we viewed as distressed," 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 MPV secured
necessary funding to cover its continuing fixed charge commitments
and diamond market conditions improve to an extent that limit or
remove near-term cash outflows incurred by the company," the rating
agency said.
MTN INFRASTRUCTURE: Moody's Alters Outlook on B2 CFR to Negative
----------------------------------------------------------------
Moody's Investors Service has affirmed all existing ratings of MTN
Infrastructure TopCo, including its B2 corporate family rating, and
changed outlook to negative from stable. The rating action assumes
that MTN's planned acquisition of NorthState Telecommunications
Corporation will close as previously anticipated and will be funded
with debt.
The following ratings/assessments are affected by its action:
Ratings Affirmed:
Issuer: MTN Infrastructure TopCo
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B3-PD
GTD Senior Secured Term Loan B, Affirmed B2 (LGD3)
GTD Senior Secured Revolving Credit Facility, Affirmed B2 (LGD3)
GTD Senior Secured Delayed Draw Term Loan, Affirmed B2 (LGD3)
Outlook Actions:
Issuer: MTN Infrastructure TopCo
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
The change in outlook to negative reflects Moody's view that the
NorthState acquisition will temper the pace of delevering and that
free cash flows will remain negative as the company continues to
invest in growth within its existing portfolio and the NorthState
business. Heavy capex spending and negative free cash flows have
led to increasing debt levels. Pro forma for the closing of the
NorthState acquisition, Moody's projects that leverage will remain
elevated at around 6.5x by the end of 2020 and around 6x (both
ratios are calculated using Moody's standard adjustments) at the
end of 2021, assuming no other debt-funded acquisitions. These
leverage levels are well above its prior expectations.
The change in outlook also considers execution risks in the planned
Northstate acquisition as MTN integrates the second large
acquisition in a two-year period (Spirit acquisition closed in
April 2018) and the likelihood that the company will continue to
aggressively seek market share increases through investing in its
network or bolt-on acquisitions.
Its rating affirmation reflects Moody's view that the acquisition
is strategically sound, MTN's good liquidity and positive revenue
growth trajectory. The B2 CFR of MTN is supported by multi-year
contracted recurring revenues, low churn, a diverse customer base,
and solid organic growth potential due to strong data demand
drivers underpinning the fiber infrastructure market. These credit
strengths are counterbalanced by MTN's small but growing scale,
high leverage, and negative free cash flow generation. Governance
risks Moody's considers in MTN's credit profile include an
aggressive financial strategy that is tolerant of operating with
high leverage and negative free cash flows for an extended period
of time and M&A-based growth.
The company benefits from revenue diversity across enterprise,
carrier and government customers and a robust network that includes
a large number of on-net buildings, connected data centers, and a
growing fiber-to-the-cell presence. Within the bulk of its second,
third and fourth tier markets, MTN faces competition limited to two
or fewer entities, comprised mainly of the incumbent local exchange
carrier and sole cable player. MTN utilizes its largely owned
fiber-based communication services network to drive revenues in its
data segment, representing around 80% of overall revenue. A
declining legacy voice segment targeting residential and small
business customers comprises the remainder of the business.
Moody's expects that MTN will maintain good liquidity over the next
12 months. The company currently has a $125 million revolver, which
Moody's expects will have substantial, over 70% availability, in
the next 12-18 months. The revolver is subject to a maximum total
first lien secured leverage covenant of 7x, springing at 25% draw.
Proforma for the NorthState acquisition, Moody's expects that MTN
will continue to have sufficient cushion over the springing
financial covenant, should it be tested, for the next 12-18 months.
The company owns valuable fiber assets but these are mainly
encumbered by the bank facilities.
The negative outlook reflects the delay in MTN's delevering as it
continues to invest in growth as well as execution risk associated
with the planned Northstate acquisition.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded should MTN fail to reduce
debt/EBITDA to under 6x (Moody's adjusted) or improve free cash
flows, or if liquidity deteriorates.
Although unlikely in the next 12-18 months given the negative
outlook, the ratings could be upgraded if leverage is sustained
below 4.5x (Moody's adjusted) and free cash flow to debt is above
10% (Moody's adjusted), with good liquidity.
The principal methodology used in these ratings was Communications
Infrastructure Industry published in September 2017.
Headquartered in Charlotte, North Carolina, MTN Infrastructure
TopCo is a wholly-owned subsidiary of an infrastructure investment
fund of EQT that owns and operates the combined businesses of its
subsidiaries, Lumos Networks Corp. and SCTG, LLC. The company goes
to market under the tradename "Segra" and operates as a fiber-based
bandwidth infrastructure and service provider in the Mid-Atlantic
and Southeast regions of the United States with a network of
long-haul fiber, metro Ethernet and Ethernet. The Company serves
carrier, business and residential customers over its fiber network
offering data, voice and IP services. The Company's principal
products and services include Multiprotocol Label Switching based
Ethernet, Metro Ethernet, Fiber to the Cell wireless backhaul and
fiber transport services, wavelength transport services, IP
services and other voice services. MTN generated approximately $444
million in revenues in 2019.
MURRAY ENERGY: Bank Debt Trades at 93.3% Discount
-------------------------------------------------
Participations in a syndicated loan under which Murray Energy Corp
is a borrower were trading in the secondary market around 6.8
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $175 million facility is a term loan. The loan was scheduled
to mature on April 17, 2020. About $12.9 million of the loan
remains outstanding.
The Company's country of domicile is United States.
NCL CORP: Moody's Rates New Secured Note 'Ba2', Outlook Negative
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to NCL Corporation
Ltd.'s proposed secured note issuance. There is no change to the
company's Ba2 Corporate Family Rating, Ba2-PD Probability of
Default Rating, existing Ba2 senior secured Bank Credit Facility
rating or B1 senior unsecured rating. The outlook remains
negative.
NCL is planning on raising a total of $2.0 billion through the
issuance of $1.65 billion of debt and $350 million of common equity
in order to bolster its liquidity. The debt issuance includes $600
million of four year secured notes, $650 million of four-year
unsecured convertible notes, and $400 million in a private
placement of six-year convertible senior notes with an affiliate of
L Catterton. "This proposed transaction is viewed favorably,
despite the increase in debt, as it provides NCL with additional
liquidity as the cruise industry in general is facing unprecedented
disruptions to operations from the global spread of the
coronavirus," stated Pete Trombetta, Moody's lodging and cruise
analyst. In an 8-K filing today, NCL stated that its independent
registered public accounting firm reissued its report covering the
financial statements included in NCL's 2019 10-K to include a
paragraph noting management's conclusion regarding substantial
doubt about the company's ability to continue as a going concern.
NCL's Ba2 Corporate Family Rating is based on Moody's understanding
that this going concern language will not cause any issues with any
covenants contained in the company's credit agreements or
indentures.
Assignments:
Issuer: NCL Corporation Ltd.
Senior Secured Regular Bond/Debenture, Assigned Ba2 (LGD3)
RATINGS RATIONALE
The rapid 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. The cruise 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
NCL's credit profile, including its exposure to increased travel
restrictions for US citizens have left it vulnerable to shifts in
market sentiment in these unprecedented operating conditions and
the company remains vulnerable to the outbreak continuing to
spread. Moody's regards the coronavirus outbreak as a social risk
under its ESG framework, given the substantial implications for
public health and safety.
NCL's credit profile is supported by its market position as the
third largest ocean cruise operator worldwide, as well as its
well-known brand names -- Norwegian Cruise Line, Oceania Cruises,
and Regent Seven Seas Cruises, as well as the strong performance of
its new ships in terms of pricing and bookings relative to its
other ships which enables the company to compete against larger
rivals across all its price points. Moody's believes that once the
coronavirus pandemic is under control, and the public is more
comfortable with traveling and cruising again, the cruise industry
will once again benefit from favorable macroeconomic and
demographic trends it has seen over the past 10 years. The value
proposition of a cruise vacation will support the continued
penetration of the vacation market by cruise operators which will
help drive NCL's future earnings growth. While industry wide
capacity will increase, over the long run, capacity expansion will
remain at a manageable level as a result of inherent supply
constraints driven by the number of ship yards that build the large
ocean vessels. In the short run, NCL's credit profile will be
dominated by the length of time that cruise operations continue to
be highly disrupted and the resulting impacts on the company's cash
consumption and its liquidity profile. The normal ongoing credit
risks include its high leverage, which Moody's forecasts will
approximate 5.5x at the end of 2021, the highly seasonal and
capital-intensive nature of cruise companies and the cruise
industry's exposure to economic and industry cycles, weather
incidents and geopolitical events.
The negative outlook reflects Moody's expectation that any further
increase in travel restrictions or change in public sentiment about
cruising in general will cause earnings deterioration beyond its
base assumption which will delay the company's deleveraging.
NCL has adequate liquidity represented by its good pro forma cash
balance of about $3.8 billion, which includes the drawdown of the
company's $875 million and $675 million revolving credit facilities
and the proposed transaction. This liquidity provides the company
with sufficient coverage of its current cash burn through at least
the end of 2020. The company currently has fully drawn its
committed $875 million revolver due 2024 or its $675 million
revolving credit facility due in June 2021, which will be further
extended to March 2022 upon completion of at least $1 billion of
this capital raise. The company's credit facilities contain one
covenant that is not tested unless total liquidity drops to below
$100 million. Moody's does not expect the covenant will be tested.
Most of NCL's assets are encumbered either to ship level debt, the
revolving credit facilities and term loans, or secured notes. Also
considered is that while it views cruise ships as valuable
long-term assets, Moody's does not believe the company could sell
ships quickly to raise cash, if necessary.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Factors that could lead to a downgrade include operations being
suspended for longer than its base case assumption or updated
expectations for a weaker recovery, that results in debt/EBITDA
remaining above 4.0x or EBITA/interest is below 4.5x over the next
two years. Any deterioration in liquidity could also cause negative
rating pressure. A stable outlook would be considered if it becomes
apparent that the current travel restrictions do not have an impact
on 2021 demand trends. Although unlikely in the short term,
positive rating action could come if debt/EBITDA and EBITA/interest
expense improved to below 3.75x and above 4.5x, respectively.
The principal methodology used in this rating was Business and
Consumer Service Industry published in October 2016.
NCL Corporation Ltd., headquartered in Miami, FL, is a wholly owned
subsidiary of Norwegian Cruise Line Holdings, Ltd. Norwegian
operates 28 cruise ships with approximately 59,150 berths under
three brand names; Norwegian Cruise Line, Oceania Cruises, and
Regent Seven Seas Cruises. Net revenues were about $5.0 billion for
the fiscal year ended December 31, 2019.
NEIMAN MARCUS: Bank Debt Trades at 62% Discount
-----------------------------------------------
Participations in a syndicated loan under which Neiman Marcus Group
Ltd LLC is a borrower were trading in the secondary market around
38 cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $2.9 billion facility is a term loan. About $12.7 million of
the loan remains outstanding and is scheduled to mature on October
25, 2020.
The Company's country of domicile is United States.
NELSON EDUCATION: Bank Debt Trades at 43% Discount
--------------------------------------------------
Participations in a syndicated loan under which Nelson Education
Ltd is a borrower were trading in the secondary market around 57
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $171.3 million facility is a term loan. The loan was scheduled
to mature on July 3, 2015. About $152 million of the loan remains
outstanding.
The Company's country of domicile is Canada.
NORTHWEST COMPANY: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------------
The U.S. Trustee for Region 2 appointed a committee to represent
unsecured creditors in the Chapter 11 cases of The Northwest
Company LLC and The Northwest.com LLC.
The committee members are:
1. Exeter 4755 Southpoint, LLC
101 West Elm Street, Suite 600
Conshohocken, PA 19428
Attention: Brian M. Fogarty, Esq., Counsel
Email: bfogarty@exeterpg.com
Telephone: (610) 234-3217
2. Standard Fiber, LLC
577 Airport Blvd., Suite 200
Burlingame, CA 94010
Attention: Brett Scharf, Managing Director
Email: brettscharf@standardfiber.com
Telephone: (650) 872-6528
3. NFL Properties LLC
345 Park Avenue
New York, NY 10154
Attention: Matthew Morgado, Senior Counsel
Email: matthew.morgado@nfl.com
Telephone: (212) 450-2760
4. Major League Baseball Properties, Inc.
1271 Avenue of the Americas
New York, NY 10020
Attention: Lara Pitaro Wisch, EVP and General Counsel
Email: amy.gold@mlb.com
Telephone: (212) 485-4683
5. Collegiate Licensing Company
1075 Peachtree St. NE, Ste. 3300
Atlanta, GA 30309
Attention: Ashley Page, SVP, General Counsel
Email: Ashley.page@LearfieldIMGCollege.com
Telephone: (470) 378-0706
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Northwest Company and Northwest.com
The Northwest Company LLC and The Northwest.com LLC are
manufacturers and sellers of branded home textiles, throws and
blankets. Their products are sold through major national retailers
and on-line channels. They operate from their showroom in midtown
Manhattan as well as corporate offices in Roslyn, N.Y. and
Bentonville, Ark. The Debtors also maintain a sourcing office in
Shanghai, China and operate a weaving facility in Ronda, N.C. For
more information, visit www.thenorthwest.com.
Northwest Company and Northwest.com sought protection under Chapter
11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 20-10990)
on April 18, 2020.
At the time of the filing, Northwest Company had estimated assets
of between $10 million and $50 million and liabilities of between
$50 million and $100 million.
Judge Michael E. Wiles oversees the cases.
Debtors tapped Sills Cummis & Gross, P.C. as bankruptcy counsel;
Clear Thinking Group, LLC as financial advisor; and Omni Agent
Solutions as claims, noticing and balloting agent.
OCEAN POWER: Will Receive $890,000 PPP Loan from Santander Bank
---------------------------------------------------------------
Ocean Power Technologies, Inc. was informed on May 1, 2020 that it
would receive approximately $890,000 in support from the U.S.
federal government under the Paycheck Protection Program
established as part of the Coronavirus Aid, Relief and Economic
Security Act, or the CARES Act through the Small Business
Association. The PPP Loan will be unsecured and evidenced by a
note in favor of Santander Bank, N.A. as the lender, and governed
by a Loan Agreement with Santander. The Company will update its
disclosure respecting the loan once documentation is finalized.
EGP Agreement
The Company and Enel Green Power S.p.A., part of the Enel Group, a
multinational energy company and global integrated electricity and
gas operator, have mutually agreed under the contracts between the
Company and subsidiaries of EGP dated Sept. 19, 2019, to extend the
required deployment date under the EGP Agreements for the PB3
PowerBuoy to Sept. 1, 2020, and to extend the date upon which
liquidated damages would begin to accrue for a failure to deploy by
such date to Sept. 30, 2020.
The extensions were agreed to in connection with the declaration of
a force majeure event effective May 2, 2020 by the Company under
the EGP Agreements. As a result of the global pandemic caused by
COVID-19, and the associated travel advisories put in place by the
U.S. government, as well as the related restrictions imposed by the
Chilean government, employees of the Company are unable to travel
to Chile to perform final testing and assembly of the PB3 PowerBuoy
prior to its deployment under the EGP Agreements. If the force
majeure event continues for more than 180 days, either party may
terminate the contracts.
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.
OLEUM EXPLORATION: Exclusive Plan Filing Period Extended to June 15
-------------------------------------------------------------------
Judge Robert Opel of the U.S. Bankruptcy Court for the Middle
District of Pennsylvania extended to June 15 the exclusive period
during which Oleum Exploration, LLC can solicit acceptances for its
Chapter 11 plan.
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. Kurtzman
Stead, LLC is Debtor's bankruptcy counsel.
Debtor filed a Chapter 11 plan of reorganization on April 15, 2020.
ON MARINE: Exclusivity Period Extended Until July 30
----------------------------------------------------
Judge Carlota Bohm of the U.S. Bankruptcy Court for the Western
District of Pennsylvania extended the periods during which only ON
Marine Services Company LLC can file and solicit acceptances for
its Chapter 11 plan to July 30 and Sept. 28, respectively.
ON Marine intended to seek confirmation of its plan of liquidation
filed on Jan. 2 that will provide for the establishment of a
liquidating trust into which some assets of the company, including
proceeds of insurance settlement agreements, will be transferred.
However, the company acknowledged the approval of certain
pre-bankruptcy settlement agreements with its insurers and
negotiations with the committee of asbestos personal injury
claimants regarding the plan as prerequisites for proceeding with
the solicitation of votes on the plan. ON Marine anticipated such
negotiations with the committee may lead to amendments to the
plan.
Currently, the committee is engaged in due diligence and an
assessment of the proposed insurance settlement agreements. Because
the agreements provide essential funding for the liquidation trust
proposed in the plan, ON Marine does not anticipate moving forward
with the confirmation process unless and until the agreements are
approved.
About ON Marine Services Company
ON Marine Services Company is the continuation of the entity
formerly known as Oglebay Norton Company, as part of which the
Ferro Division operated as an unincorporated division. In 1999,
Oglebay Norton Company changed its name to ON Marine Services
Company and became a wholly owned subsidiary of a newly formed
company known as Oglebay Norton Company, an Ohio corporation. The
Ferro Division and/or ON Marine manufactured and sold refractory
products for use exclusively in steelmaking. ON Marine Services
Company ceased all active business operations in 2010.
ON Marine Services Company filed for Chapter 11 bankruptcy
protection (Bankr. W.D. Pa. Case No. 20-20007) on Jan. 2, 2020.
Judge Carlota M. Bohm oversees the case.
In its petition, Debtor estimated $1 million to $10 million in
assets and $100,000 to $500,000 in liabilities. The petition was
signed by Kevin J. Whyte, senior vice president.
Debtor is represented by Paul M. Singer, Esq., at Reed Smith LLP.
A committee of asbestos personal injury claimants has been
appointed in Debtor's case. The committee is represented by Caplin
& Drysdale, Chartered.
PACE INDUSTRIES: Unsecured Claims Unimpaired in Plan
----------------------------------------------------
Pace Industries, LLC and its affiliated debtors submitted on April
15, 2020, a Disclosure Statement for its Joint Prepackaged Chapter
11 Plan dated April 11, 2020.
The Plan provides for the payment in full of all General Unsecured
Claims, with each holder of Senior Notes Claims receiving: (a) its
pro rata share of 100% of the new equity interests of a newly
formed entity ("New Pace Holdco") that will hold 100% of the total
amount of issued and outstanding membership interests of
Reorganized Pace Industries as of the Effective Date (the "New Pace
Holdco LLC Units") (which percentage shall be subject to dilution
for any warrants issued to New Pace Industries Term Loan Lenders
and any applicable management incentive plan adopted by the
Reorganized Debtors after the Effective Date); and (b) its pro rata
share of new loans to be issued by New Pace Holdco (the "New Pace
Holdco Loans").
The Debtors anticipate consummating the transactions on the
following timeline, subject to Bankruptcy Court approval and
availability:
* Plan Supplement Filing Deadline: 10 days prior to the
Plan/Disclosure Statement Objection Deadline.
* Plan/Disclosure Statement Objection Deadline: May 14, 2020
(subject to scheduling of the Confirmation Hearing).
* Reply Deadline: May 18, 2020 (subject to scheduling of
Confirmation Hearing.
* Confirmation Hearing (combined hearing on Adequacy of
Disclosure Statement and Confirmation of Plan): May 21, 2020 or as
soon as reasonably practicable thereafter subject to court approval
and availability.
The Prepackaged Plan proposes to treat claims as follows:
* Class 3 Senior Notes Claims. This class is impaired with
approximate recovery of 60% - 70%. Each holder of an Allowed Senior
Notes Claim shall receive its pro rata share of (a) the Class 3
Equity Distribution, and (b) the New Pace Holdco Loan Obligations.
* Class 4 General Unsecured Claims. This class is unimpaired
with approximate recovery of 100%. Each holder of an Allowed
General Unsecured Claim, at the option of the Debtors with the
consent of the Required Holders, shall (a) be paid in full in Cash,
(b) have its Allowed General Unsecured Claim reinstated, and paid
in full, on the later to occur of the Effective Date or when such
Allowed General Unsecured Claim becomes due in the ordinary course
of the Debtors’ or the Reorganized Debtors’ business
operations, or (c) have its Allowed General Unsecured Claim
otherwise rendered Unimpaired pursuant to section 1124 of the
Bankruptcy Code.
* Class 5 Existing Securities Law Claims. This class is
impaired. Holders of Existing Securities Law Claims will not
receive or retain any distribution under the Plan on account of
such Existing Securities Law Claims.
* Class 6 Existing Interests. This class is impaired. Holders of
Existing Interests shall be discharged, cancelled, released and
extinguished, and holders thereof shall not receive or retain any
distribution under the Plan on account of such Existing Interests.
The Debtors intend to continue operating their businesses in the
ordinary course during the pendency of the Chapter 11 Cases.
A full-text copy of the Disclosure Statement dated April 15, 2020,
is available at https://tinyurl.com/y9prlqf2 from PacerMonitor.com
at no charge.
Attorneys for the Debtors:
Robert S. Brady
Edmon L. Morton
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Joseph M. Mulvihill Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
- and -
Matthew A. Feldman
Rachel C. Strickland
Debra M. Sinclair
WILLKIE FARR & GALLAGHER LLP
787 Seventh Avenue New York, New York 10019
Telephone: (212) 728-8000
Facsimile: (212) 728-8111
About Pace Industries
Pace Industries, LLC -- http://www.paceind.com/-- is a
full-service aluminum, zinc and magnesium die casting company.
Headquartered in Fayetteville, Ark., Pace Industries offers
end-to-end, nonferrous, die cast supply chain solutions, and a wide
array of capabilities and services, including advanced engineering,
tool and die fabrication, prototyping, precision machining,
assembly, finishing and painting.
Pace Industries and 10 affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-10927)
on April 12, 2020. At the time of the filing, Debtors disclosed
assets of between $100 million and $500 million and liabilities of
the same range.
Judge Mary F. Walrath oversees the cases.
Debtors tapped Young Conaway Stargatt & Taylor, LLP and Willkie
Farr & Gallagher, LLP as bankruptcy counsel; FTI Consulting, Inc.
as financial advisor; Hughes Hubbard & Reed, LLP as special
counsel; and Kurtzman Carson Consultants, LLC as claims, noticing
and balloting agent.
PAUL A. LOGSDON: Unsecureds to Get 25% Payout in Plan
-----------------------------------------------------
Paul Logsdon, Inc. and Paul A. Logsdon filed a First Amended Joint
Disclosure Statement describing a proposed Plan of Reorganization.
The Plan proposes to pay holders of allowed claims against Paul
Logsdon, Inc. and Paul A. Logsdon from proceeds of Debtors' farming
operations. The Plan provides for continuation of Debtors' farming
operations and for cash distributions to holders of Allowed Claims,
including Administrative Expense Claims Secured Claims, Other
Priority Claims and General Unsecured Claims against Debtors'
Estates.
Secured Claims in Classes 2 to 15 are impaired. Except to the
extent that a holder of an Allowed Secured Claim (i) has been paid
by the Debtors, in whole or in part, prior to the Effective Date,
or (ii) agrees to a less favorable treatment, each holder of an
Allowed Secured Claim will receive from the Debtors, in full
satisfaction of such Claim, (a) such other distribution as
necessary to satisfy the requirements of section 1129 of the
Bankruptcy Code. No attorney's fees will be paid on any claim
unless the specific creditor claiming such fees files a request for
fees and costs with the Bankruptcy
Court within 30 days of the Effective Date.
General Unsecured Claims in Class 16 are impaired. Each holder of
an Allowed General Unsecured Claim will receive, in full and final
satisfaction of such holder's Claim, such holder's pro rata share
of distributions from the Debtors in the amount of $30,000 per
year. Debtors estimate that Allowed Unsecured Claims will be
approximately $600,000 for both Debtors. Funds available to pay
these claims will be $150,000 for a total payout of approximately
25%.
A full-text copy of the First Amended Joint Disclosure Statement
dated April 15, 2020, is available at https://tinyurl.com/y839fpyx
from PacerMonitor.com at no charge.
Attorney for the Debtors:
David M. Dare
HERREN, DARE & STREETT
439 S. Kirkwood, MO, Suite 204
St. Louis, Missouri 63122
Tel: (314) 965-3373
Fax: (314) 965-2225
E-mail: ddare@hdsstl.com
About Paul Logsdon
Paul Logsdon Inc. is a Missouri corporation that conducts crop
farming operations. Incorporated on Feb. 3, 2003, PLI Inc. farms
over 1,000 acres of land owned by Paul A. Logsdon in Lewis and
Clark Counties in Northeastern Missouri. Mr. Logsdon is the sole
shareholder.
Paul Logsdon, Inc. filed a Chapter 11 petition (Bankr. E.D. Mo.
Case No. 19-20081) on April 9, 2019. At the time of the filing,
the Debtor disclosed $695,400 in assets and $8,934,390 in
liabilities.
Mr. Paul A. Logsdon also filed his own Chapter 11 petition (Bankr.
E.D. Mo. Case No. 19-20082) on April 9, 2019.
David M. Dare, Esq., at Herren Dare & Street, serves as the
Debtors' bankruptcy counsel.
PETCO ANIMAL: Bank Debt Trades at 34% Discount
----------------------------------------------
Participations in a syndicated loan under which Petco Animal
Supplies Inc is a borrower were trading in the secondary market
around 66 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $2.5 billion facility is a term loan. About $2.4 billion of
the loan remains outstanding. The loan is scheduled to mature on
January 26, 2023.
The Company's country of domicile is United States.
PETROCHOICE HOLDINGS: Bank Debt Trades at 18% Discount
------------------------------------------------------
Participations in a syndicated loan under which Petrochoice
Holdings Inc is a borrower were trading in the secondary market
around 82 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $273.8 million facility is a term loan. About $179.8 million
of the loan remains outstanding. The loan is scheduled to mature
on August 19, 2022.
The Company's country of domicile is United States.
PLANTRONICS INC: Bank Debt Trades at 17% Discount
-------------------------------------------------
Participations in a syndicated loan under which Plantronics Inc is
a borrower were trading in the secondary market around 83
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.3 billion facility is a term loan. The loan is scheduled to
mature on July 2, 2025. About $1.1 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
PLH GROUP: Bank Debt Trades at 19% Discount
-------------------------------------------
Participations in a syndicated loan under which PLH Group Inc is a
borrower were trading in the secondary market around 81
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $175 million facility is a term loan. About $161.9 million of
the loan remains outstanding. The loan is scheduled to mature on
August 7, 2023.
The Company's country of domicile is United States.
POWER SOLUTIONS: Swings to $8.2 Million Net Income in 2019
----------------------------------------------------------
Power Solutions International, Inc., reported net income of $8.25
million for the year ended Dec. 31, 2019, compared to a net loss of
$54.73 million for the year ended Dec. 31, 2018.
Sales for the full year of 2019 were $546.1 million, an increase of
$50.0 million, or 10%, versus 2018, the result of increased sales
of $37.1 million and $34.0 million in the energy and transportation
end markets, respectively, partly offset by a sales decline of
$21.1 million in the industrial end market. Full year 2019 results
included sales of approximately $30 million associated with the
shipment of certain engines at the request of one of the Company's
customers in the fourth quarter of 2019 that were originally
scheduled for the first half of 2020. Gross margin for 2019 was
18.3%, a strong improvement of 6.5 percentage points versus 11.8%
in 2018. Gross profit was $99.9 million, an increase of $41.1
million, primarily the result of higher sales, favorable mix,
strategic pricing actions, operational productivity improvements
and an $8.5 million decline in warranty costs. Operating expenses
decreased by $12.8 million in 2019 in large part due to lower SG&A
expenses mostly attributable to a significantly reduced amount of
incremental financial reporting and government investigation
expenses and lower research, development and engineering expenses,
among other factors. Additionally, in 2019, the loss recorded from
the change in value and exercise of the warrant issued to Weichai
Power Co., Ltd. declined to $1.4 million from $10.4 million in
2018.
As of Dec. 31, 2019, the Company had $313.67 million in total
assets, $285.17 million in total liabilities, and $28.50 million in
total stockholders' equity.
Power Solutions stated that while the Company generated net income
in fiscal year 2019, it experienced substantial net losses in
fiscal year 2018 and has an accumulated deficit as of Dec. 31,
2019. The net losses experienced in 2018 were principally
attributable to unfavorable gross margin levels resulting from
manufacturing productivity challenges, increased warranty claims on
certain product lines, failure to pass cost increases on to
customers through pricing actions and significant unrecovered costs
associated with the transportation product line, along with a
noncash valuation loss associated with the issuance of the Weichai
Warrant, substantial legal and professional expenses associated
with efforts to restate the Company's prior financial statements,
respond to the government investigations and defend the lawsuits
related to the restatements, high outstanding debt, and borrowing
costs. The Company expects that many of these costs will remain
significant in future periods. Continued losses could reduce cash
available from operations to service or refinance the Company's
indebtedness as necessary, as well as limit the Company's ability
to finance future growth in its business and implement its
strategies.
BDO USA, LLP, in Chicago, Illinois, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
May 4, 2020 citing that significant uncertainties exist about the
Company's ability to refinance, extend, or repay outstanding
indebtedness and maintain sufficient liquidity to fund its business
activities. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
Fourth Quarter 2019 Results
Sales for the fourth quarter of 2019 were $153.1 million, an
increase of $14.9 million, or 11%, versus the comparable period
last year, the result of sales increases of $18.1 million and $13.9
million within the transportation and energy end markets,
respectively, partly offset by a sales decrease of $17.2 million
within the industrial end market. Higher transportation end market
sales were primarily attributable to increased demand for products
used in the medium-duty truck market and included approximately $30
million of sales associated with the shipment of certain engines at
the request of one of the Company's customers in the fourth quarter
of 2019 that were originally scheduled for the first half of 2020,
partly offset by lower demand for products used in the school bus
market. Higher sales within the energy end market were
attributable to stronger demand for demand response products,
partly offset by lower demand for other power generation products,
including those used within the oil and gas market. Lower sales in
the industrial end market were mostly caused by lower demand for
products used in the material handling/forklift market. Gross
margin in the fourth quarter of 2019 was 19.4%, a significant
improvement of 10.7 percentage points versus the same period last
year. Gross profit was $29.7 million, an increase of $17.7 million
versus the fourth quarter of 2018 primarily due to higher sales,
improved mix, a $3.8 million decline in warranty costs, strategic
price increases and operational productivity improvements.
Operating expenses decreased by $8.4 million, as compared to the
comparable period in 2018, in part attributable to lower selling,
general and administrative expenses (SG&A), mostly due to a reduced
amount of incremental financial reporting and government
investigation expenses given the completion of the restatement of
the Company's financial statements in May 2019, and the absence of
asset impairment charges, among other factors. Net income was $8.1
million, or $0.35 per share, versus a net loss of $9.9
million, or a loss of $0.84 per share for the comparable prior year
period. Adjusted net income was $11.6 million, or Adjusted
earnings per share of $0.51, versus an Adjusted net loss of $8.1
million, or an Adjusted net loss per share of $0.37 for the fourth
quarter of 2018. Adjusted EBITDA was $15.8 million compared to an
Adjusted EBITDA loss of $3.0 million for the fourth quarter of
2018.
Outlook for Full Year of 2020
Projected sales and profitability for the full year of 2020 are
currently expected to be substantially lower than 2019 levels in
large part due to the impact of the novel coronavirus COVID-19
pandemic, which has resulted in the implementation of significant
governmental measures to control the spread of the virus, including
quarantines, travel restrictions, business shutdowns and
restrictions on the movement of people in the United States and
abroad, and the related recent historic decline in oil prices.
Further, the aforementioned fourth quarter 2019 acceleration of
approximately $30 million of transportation end market sales, and
industrial end market headwinds are also anticipated to negatively
impact the Company's 2020 financial results. The Company is
aggressively beginning the execution of cost savings actions to
mitigate the expected significant negative impact of these
factors.
The Company is reviewing operating expenses as part of the
contingency planning process prioritizing certain R&D investments
in support of the Company's long-term growth objectives. The
Company currently expects lower SG&A expenses reflective of a
further decline in the amount of incremental financial reporting
and government investigation expenses and the impact of cost
savings actions. In 2020, the Company's incremental financial
reporting and government investigation expenses are expected to
relate to significant third-party professional fees primarily for
legal costs related to the Company's indemnification obligations,
in addition to its internal control remediation efforts.
The Company's total debt obligations were approximately $95 million
at Dec. 31, 2019, a decrease of approximately $15 million as
compared with total debt at Dec. 31, 2018. The decline in debt
includes the net impact of customer prepayments of approximately $6
million.
As previously disclosed, on April 2, 2020, the Company closed on a
new senior secured revolving credit facility pursuant to a credit
agreement with Standard Chartered Bank, which allows the Company to
borrow up to $130 million. The Company made an initial draw of $95
million under the Credit Agreement on April 2, 2020, and drew the
remaining balance of $35 million on April 29, 2020, which provides
the Company with greater financial flexibility. As of April 29,
2020, the Company had borrowings of $130 million under the Credit
Agreement and a cash balance of more than $45 million. These
amounts reflect a net positive cash impact from customer
prepayments of approximately $12 million.
Management Comments
John Miller, chief executive officer, commented, "We're pleased
with our 2019 financial results which mark the Company's third
consecutive year of annual sales growth on the strength of our
energy and transportation end markets. Importantly, our
profitability improved substantially aided by significantly higher
gross margin, due in part to favorable mix, productivity
improvements and lower warranty costs."
"We had numerous accomplishments in 2019, which include the
completion of the restatement of our financial statements, the
strengthening of our commercial sales team, and the addition of
several natural gas and diesel engines to our product lineup as a
result of the Weichai collaboration, which are expected to have a
positive contribution in the future. Further, in April 2020, we
closed on a new $130 million credit facility that lowers our
overall borrowing costs and provides us with enhanced financial
flexibility."
"Although current market and global economic conditions present
significant near-term challenges and uncertainty, we have
implemented temporary cost reduction measures and are aggressively
exploring other actions to mitigate the operating and financial
impact on our business. We also remain focused on the execution of
our strategic objectives as we strive to achieve long-term growth
and deliver value to our shareholders."
A full-text copy of the Form 10-K is available for free at the
Securities and Exchange Commission's website at:
https://is.gd/4UbQRr
About Power Solutions
Headquartered in Wood Dale, Illinois, Power Solutions
International, Inc. -- http://www.psiengines.com/-- designs,
engineers, and manufactures emissions-certified, alternative-fuel
power systems. PSI provides integrated turnkey solutions to global
original equipment manufacturers in the industrial and on-road
markets. The Company's unique in-house design, prototyping,
engineering and testing capacities allow PSI to customize clean,
high-performance engines that run on a wide variety of fuels,
including natural gas, propane, biogas, gasoline and diesel.
POWERTEAM SERVICES: Moody's Rates $575MM Sr. Sec. Notes 'B3'
------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to PowerTeam
Services, LLC's proposed $575 million senior secured notes. The
company plans to use the proceeds from the notes offering to redeem
recently issued notes that funded a portion of the acquisition of
MVerge. At the same time, Moody's affirmed PowerTeam's B3 Corporate
Family Rating, B3-PD Probability of Default Rating, B3 senior
secured first-lien revolver and term loan ratings and the Caa2
rating on its senior secured second-lien term. The ratings outlook
was changed to stable from negative.
"The acquisition of MVerge in April 2020 is credit positive since
it enhances PowerTeam's scale and diversity, provides the
opportunity for cost synergies and is a deleveraging transaction.
The outlook change to stable from negative incorporates the
benefits from this acquisition along with the expectation the
company's operating performance will not be materially impacted by
the coronavirus since it provides maintenance, repair and
replacement services to utility customers," said Michael Corelli,
Moody's Senior Vice President and lead analyst for PowerTeam
Services, LLC.
Affirmations:
Issuer: PowerTeam Services, LLC
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
GTD Senior Secured 1st Lien Revolving Credit Facility, Affirmed B3
(LGD3)
GTD Senior Secured 1st Lien Term Loan, Affirmed B3 (LGD3)
GTD Senior Secured 2nd Lien Term Loan, Affirmed Caa2 (LGD5)
Assignments:
Issuer: PowerTeam Services, LLC
GTD Senior Secured 1st Lien Notes, Assigned B3 (LGD3)
Outlook Actions:
Issuer: PowerTeam Services, LLC
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
PowerTeam's B3 corporate family rating reflects its high leverage,
weak interest coverage and limited end market diversity since it
primarily focuses on providing services to gas and electric
utilities. This work is typically covered by master service
agreements and blanket contracts, but work order releases can
fluctuate leading to periodic inefficiencies in labor and asset
utilization and margin compression. This has occurred over the past
two years as two key customers suspended work due to safety issues
in its electric segment in 2017 and has weighed on PowerTeam's
operating results. PowerTeam's rating is supported by the enhanced
scale and diversity and the deleveraging expected from the MVerge
acquisition along with the favorable industry fundamentals as
utilities continue to focus on replacing aging infrastructure and
outsourcing more engineering and construction services to third
parties.
PowerTeam Services, LLC acquired Miller Pipeline and Minnesota
Limited (collectively, MVerge) for $850 million from CenterPoint
Energy, Inc. (Baa2 negative) on 9 April 2020. Miller Pipeline and
Minnesota Limited are natural gas distribution and transmission
pipeline contractors in the US. The acquisition is credit positive
since it will raise PowerTeam's pro forma revenues to more than $2
billion and enhance its diversity with approximately 80 locations
in 26 states and more than 8,500 employees and creates a leading US
provider of maintenance and construction services for electric and
natural gas infrastructure. This transaction will also be
deleveraging due to PowerTeam's very high leverage prior to the
acquisition and the equity contribution by PowerTeam's owners
(principally Clayton, Dubilier & Rice) to fund a portion of this
transaction. The majority of the deal was funded with debt.
PowerTeam's operating performance remained weak for the second
consecutive year in 2019 as it continued to be affected by customer
suspensions combined with lower storm related activity and fewer
large transmission projects. These issues led to its adjusted
EBITDA declining by about 30% over the past two years and has
resulted in its leverage ratio (Debt/ EBITDA) rising to about 8.5x
in December 2019 from 5.1x in December 2017. The MVerge transaction
is materially deleveraging on a pro form basis and both companies
have had a strong start in 2020 due to improved productivity and
increased project and service work aided by favorable winter
weather. However, MVerge's operating performance in 2019 was much
stronger than in 2017-2018 partly due to strong midstream energy
pipeline project activity that may not be repeated.
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
economic and credit effects of these developments are unprecedented
and could impact PowerTeam and MVerge's operating performance in
2020. However, the company's focus on utility customers and its
exposure to maintenance, repair, replacement and upgrade work for
about two-thirds of its revenues should provide a downside buffer.
PowerTeam has an adequate liquidity profile. It typically maintains
only a modest cash balance, but as of December 2019 had $59.7
million of availability on its $60 million revolver expiring in
2023 and $110 million available on its $150 million accounts
receivable securitization facility which terminates in December
2021. The company upsized the revolver to $260 million in April
2020 when it completed the acquisition of MVerge.
The stable rating outlook incorporates its expectation that
PowerTeam's operating performance and credit metrics will
materially strengthen over the next 12 to 18 months due to the
MVerge acquisition.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
PowerTeam's ratings could be downgraded if its operating
performance remains weak or debt financed acquisitions or
shareholder dividends result in funds from operations (cash flow
from operations before working capital changes) being sustained
below 10% of outstanding debt and its leverage ratio remaining
above 6.0x. A deterioration in its liquidity profile could also
result in a downgrade.
The ratings could experience upward pressure if the company
maintains robust profit margins, generates funds from operations
(cash flow from operations before working capital changes) in
excess of 15% of outstanding debt, produces consistent free cash
flow, and sustains a leverage ratio below 5.0x.
Headquartered in Atlanta, Georgia, PowerTeam is a domestically
focused natural gas distribution, transmission and electric
services company for natural gas and electric utilities and
midstream operators offering a wide array of services that help
maintain and upgrade their infrastructure and operate more
efficiently and reliably. The company generated pro forma revenues
of more than $2 billion over the twelve months ended December 31,
2019. Clayton, Dubilier & Rice acquired majority ownership of
PowerTeam in 2018.
The principal methodology used in these ratings was Construction
Industry published in March 2017.
PROFESSIONAL DIVERSITY: Lowers Net Loss to $3.8 Million in 2019
---------------------------------------------------------------
Professional Diversity Network, Inc. reported a net loss of $3.84
million for the year ended Dec. 31, 2019, compared to a net loss of
$15.08 million for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $6.59 million in total assets,
$4.04 million in total liabilities, and $2.55 million in total
stockholders' equity.
Ciro E. Adams, CPA, LLC, in Wilmington, DE, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated May 1, 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.
The Company had an accumulated deficit of ($88,671,260) at Dec. 31,
2019. During the year ended Dec. 31, 2019, the Company generated a
net loss from continuing operations of ($2,792,129) and used cash
in continuing operations of $3,289,736. At Dec. 31, 2019, the
Company had a cash balance of $633,615. Total revenues were
approximately 5,025,000 and $7,621,000 for the years ended Dec. 31,
2019 and 2018, respectively. The Company had a working capital
deficiency from continuing operations of approximately ($2,114,000)
and ($3,384,000) at Dec. 31, 2019 and 2018, respectively. These
conditions raise substantial doubt about its ability to continue as
a going concern. The ability of the Company to continue as a going
concern is dependent on the Company's ability to further implement
its business plan, raise capital, and generate revenues.
Professional Diversity said, "The Company is closely monitoring
operating costs and capital requirements. Management of the
Company also made efforts in 2018 and 2019 to contain and reduce
cost, including implementing a new approval process over travel and
other expenses, significantly reducing the cash compensation for
independent board directors, terminating non-performing employees
and eliminating certain positions, and replacing and negotiating
with certain vendors. We also sold our Noble Voice business on May
25, 2018 to reduce operating losses and cash burns. If we are
still not successful in sufficiently reducing our costs, we may
then need to dispose our other assets or discontinue business
lines."
A full-text copy of the Form 10-K as filed with the Securities and
Exchange Commission is available for free at:
https://is.gd/qkpva9
About Professional Diversity
Headquartered in Chicago, Illinois, Professional Diversity Network,
Inc. -- https://www.prodivnet.com/ -- is a dynamic operator of
professional networks with a focus on diversity. The Company uses
the term "diversity" to describe communities, or "affinities," that
are distinctly based on a wide array of criteria which may change
from time to time, including ethnic, national, cultural, racial,
religious or gender classification. It serves a variety of such
communities, including Women, Hispanic-Americans,
African-Americans, Asian-Americans, Disabled, Military
Professionals, and Lesbian, Gay, Bisexual and Transgender. Its
goal is (i) to assist its registered users and members in their
efforts to connect with like-minded individuals, identify career
opportunities within the network and (ii) connect members with
prospective employers while helping the employers address their
workforce diversity needs.
PROTEC INSTRUMENT: Unsecureds to Recover Up to 100% in 6 Years
--------------------------------------------------------------
Protec Instrument Corporation and the related and jointly
administered debtor, Protec RE Holdings Inc., filed a Plan of
Reorganization and a Disclosure Statement.
Payments will be made from funds contributed as the new value
contribution by the 100% shareholder of the Debtor together with
sums generated from the reorganized Debtor's operations.
The Class 1 claim of Berkshire Bank, the holder of a first priority
secured claim in the principal amount of $1,525,736, is impaired.
The payment of the Class 1 Claim will be bifurcated as the Debtor
will pay the principal together with interest from the confirmation
date and at the same time, will pay the accrued Interest and Costs
of Collection in full, but said sums shall not bear interest. The
Class 1 Claimant will have an Allowed Secured Class 1 Claim in the
sum of principal in the sum of $1,525,736 (Class 1- A) plus
interest, attorney's fees and costs and appraisal fees, in the
total amount of $140,463 plus estimated attorneys' fees and costs
of collection through confirmation of the Debtor's Plan in the
amount of $5,000 for a total of $145,463 (Class 1-B).
Class 4 Unsecured Claims are impaired. Holders of Class 4 claims
will receive payment in an amount equal to up to 100% which sums
will be paid over a period of six years in six annual
installments.
Class 5 Claims of insiders with a total claim of $4,021,266 are
impaired. The Class 5 claimants will receive nothing under the
Plan and the claims shall be cancelled upon Confirmation.
The Debtor expects to have sufficient cash on hand to make the
payments required on the Confirmation Date.
A full-text copy of the Disclosure Statement dated April 15, 2020,
is available at https://tinyurl.com/y7b7rxkl from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Nina M. Parker, Esq.
Parker & Lipton
Parker & Associates LLC
10 Converse Place, Suite 201
Winchester, MA 01890
Fax: 781-729-0187
E-mail: nparker@parkerlipton.com
About Protec Instrument Corp.
Protec Instrument Corporation manufactures analytical instruments.
Protec RE Holdings owns a property located at 38-40 Edge Hill Road,
Waltham, Massachusetts having an appraised value of $2.17 million.
Protec Instrument Corp. and Protec RE Holdings sought Chapter 11
protection (Bankr. D. Mass. Lead Case No. 19-12164) on June 25,
2019. As of the Petition Date, Protec Instrument disclosed assets
of $3,472,694 and liabilities of $2,725,521; and Protec RE
disclosed assets of $2,170,000 and liabilities of $2,458,971. The
Hon. Christopher J. Panos is the case judge. Parker & Associates
is the Debtors' counsel.
REJUVI LABORATORY: Corso Objects to Debtor's Plan
-------------------------------------------------
Maria Corso, a judgment creditor of Debtor Rejuvi Laboratory Inc.,
objects to Rejuvi's Combined Plan of Reorganization and tentatively
approved Disclosure Statement filed by the Debtor on March 3,
2020.
Corso asserts that:
* The Debtor must provide evidence that there is a valid
business and economic justification for the separate classification
of general unsecured creditors because each of Class 2(a) and Class
2(c) creditors have separate and distinct rights of recovery
against the Debtor, and non-debtor third parties, that the Class
2(b) creditor does not have.
* Ms. Corso believes it will be impossible for Rejuvi to justify
the attempted discriminatory treatment of her claim given both the
Debtor's current economic position and historical performance.
* The Debtor has maintained an average of approximately $578,000
in its bank accounts postpetition; however, rather than paying
creditors in certain classes on the Effective Date, it proposes a
plan that pays these creditors 30 to 90 days from the Effective
Date.
* The Plan unfairly discriminates against Ms. Corso because it
more favorably treats insider Wei Cheng's general unsecured claim
of $80,000 in Class 2(c) by allowing it to be paid within two years
from the Effective Date, while stretching out payment to Ms. Corso
over at least 12 years.
A full-text copy of Maria Corso's objection to the Combined Plan
and Disclosure Statement dated April 17, 2020, is available at
https://tinyurl.com/yb9pmmgk from PacerMonitor at no charge.
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
REJUVI LABORATORY: May 7 Hearing on Corso Plan Set
--------------------------------------------------
Judgment creditor Maria Corso filed with the U.S. Bankruptcy Court
for the Northern District of California, San Francisco Division, a
Combined Plan and Disclosure Statement for Debtor Rejuvi
Laboratory, Inc.
On April 17, 2020, Judge Dennis Montali tentatively approved the
Disclosure Statement and established the following dates and
deadlines:
* May 6, 2020 is set as the last day to file and serve objections
to confirmation of the Corso Combined Plan and Disclosure
Statement.
* May 6, 2020 is fixed as the last day for submitting ballots to
accept or reject the Corso Combined Plan and Disclosure Statement.
* May 7, 2020 at 10:00 a.m. is set for a status conference
regarding confirmation of the Corso Combined Plan and Disclosure
Statement.
A full-text copy of the order dated April 17, 2020, is available at
https://tinyurl.com/yak2v7up from PacerMonitor at no charge.
Attorneys for Maria Corso:
Grant L. Kim
James E. Till
David Nealy
LIMNEXUS LLP
220 Montgomery Street, Suite 1411
San Francisco, CA 94104 US
Tel: (415) 619-3323
Fax: (213) 955-9511
707 Wilshire Boulevard, Suite 4600
Los Angeles, CA 90017
Tel: (213) 955-9500
Fax: (213) 955-9511
E-mail: Grant.Kim@limnexus.com
James.Till@limnexus.com
David.Nealy@limnexus.com
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 oversees 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
RENFRO CORP: Bank Debt Trades at 53% Discount
---------------------------------------------
Participations in a syndicated loan under which Renfro Corp is a
borrower were trading in the secondary market around 47
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $160.6 million facility is a term loan. The loan is scheduled
to mature on March 31, 2021. About $144 million of the loan
remains outstanding.
The Company's country of domicile is United States.
REVLON CONSUMER: Bank Debt Trades at 58% Discount
-------------------------------------------------
Participations in a syndicated loan under which Revlon Consumer
Products Corp is a borrower were trading in the secondary market
around 42 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $1.8 billion facility is a term loan. The loan is scheduled to
mature on September 7, 2023. About $1.7 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
RIOT BLOCKCHAIN: Reports April 2020 Production Update
-----------------------------------------------------
Riot Blockchain, Inc., announced its production update for the
month of April 2020.
* During April 2020, the Company produced 108 newly mined
bitcoins with its new Bitmain S17s being fully deployed for
the entire month of April 2020.
* Riot's BTC inventory increased by 13% since March 31, 2020 to
929 BTC as of April 30, 2020.
* The Company is currently operating approximately 4,000 S17s
with an aggregate hashing power capacity of 248 Petahash per
second ("PH/s") between the Riot Oklahoma City, Oklahoma and
the Coinmint Massena, New York locations.
* As announced April 30, 2020, Riot purchased an additional
1,000 Bitmain Antminer S19 Pros and expects delivery by early
July 2020. Once received and deployed, Riot estimates its
aggregate operating hash rate will increase by 46% to
approximately 358 PH/s.
Riot successfully transported 300 miners from its facility in
Oklahoma City, Oklahoma to Coinmint's facility in Massena, New
York. The initial batch of miners were online and fully
operational by April 19, 2020. The Coinmint facility is expected
to result in improved efficiency and potentially expanded hashing
capacity. Riot is using the initial batch of 300 miners to
validate its expectations.
Ashton Soniat, CEO of Coinmint stated, "Coinmint has expanded our
co-hosting services to meet the needs of first-in-class
cryptocurrency mining companies and we are excited to partner with
Riot Blockchain. With the upcoming halving, Coinmint's low-cost
electricity and 120MW of capacity will allow Riot to continue to
grow operations as bitcoin rewards are reduced."
Bitcoin Halving Update: On May 12, 2020 the bitcoin halving is
expected to occur, which is an event that halves the rate at which
new BTC are awarded (created). The event occurs once every 210,000
blocks (approximately every four years). Currently, a block reward
equals 12.5 BTC, and that will decrease to 6.25 BTC upon the
halving. The upcoming bitcoin halving affects both the production
and future supply of BTC. Historically, the value of bitcoin
post-halving, over time has increased. However, the potential
effects of the bitcoin halving are unknown.
COVID-19 Update: As published in its previous disclosures, Riot is
continuing to closely monitor COVID-19 and its potential impact on
the Company's workforce, operations, finance and liquidity. To
date, the impact has remained minimal.
About Riot Blockchain
Headquartered in Castle Rock, Colorado, Riot Blockchain --
http://www.RiotBlockchain.com/-- specializes in cryptocurrency
mining with a focus on bitcoin. Riot also holds non-controlling
investments in blockchain technology companies. Riot is
headquartered in Castle Rock, Colorado, and the Company's mining
facility is located in Oklahoma City.
Riot incurred a net loss of $20.30 million in 2019 compared to a
net loss of $60.21 million in 2018. As of Dec. 31, 2019, the
Company had $30.38 million in total assets, $4.14 million in total
liabilities, and $26.23 million in total stockholders' equity.
RIVERBED TECHNOLOGY: Bank Debt Trades at 19% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Riverbed Technology
Inc is a borrower were trading in the secondary market around 81
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.58 billion facility is a term loan. The loan is scheduled
to mature on April 24, 2022. About $1.53 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
ROYAL ALICE: Unsecureds Estimated Percentage Recovery is 100%
-------------------------------------------------------------
Royal Alice Properties, LLC, submitted a Disclosure Statement for
Amended Chapter 11 Plan dated April 15, 2020.
Class 1 consists of the allowed secured claim of AMAG with a claim
amount of $4,6223,618.26. This class is impaired with an estimated
percentage recovery of 100%. The Secured Creditor will receive the
net proceeds of the Real Estate Financing and the balance of the
Allowed Secured Claim (if any) shall be the face amount of the
Secured AMAG Substitute Note.
Class 2 Allowed Unsecured Claims totaling $182,200 are impaired.
The holders of Allowed General Unsecured Claims (including Allowed
Unsecured Deficiency Claims) will receive a pro rata share of the
Plan Assets. Unsecured creditors are projected to recover 100%.
The lists of creditors of this class with corresponding amount of
claims are as follows:
Arrowhead Capital Finance, Ltd. $0 (disputed)
Leo Duvernay, LLC $75,000 (subject to review)
Miltonberger Condo. Assoc. $1,760 (subject to review)
Phelps Dunbar $80,077
Princess of Monaco Condo. Assoc. $15,363 (subject to review)
Taggert Morton, LLC $10,000
Class 3 Allowed Interests are impaired. After payment in full of
Allowed Administrative Expense Claims, Allowed Class 1 Claims and
Allowed Class 2 Claims, the holders of Allowed Interests shall
receive the balance, if any, of the Plan Assets.
The Debtor believes that it will have sufficient Cash to pay its
Allowed Administrative Expenses and Allowed Claims based upon the
Cash on hand after funding of the Bridge Financing and, if
necessary, from rental revenues. Post Effective Date, payments to
Allowed Claims will be funded from the Real Estate Financing and,
if necessary, rental revenues.
A full-text copy of the Disclosure Statement dated April 15, 2020,
is available at https://tinyurl.com/ycp272sh from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Leo D. Congeni
The Congeni Law Firm, LLC
650 Poydras Street, Suite 2750
New Orleans, LA 70130
Tel: (504) 522-4848
E-mail: leo@congenilawfirm.com
About Royal Alice Properties
Royal Alice Properties, LLC, owns, manages and rents the building
and real estate located on the 900 block of Royal Street in the
French Quarter, New Orleans, Louisiana. The condominium units are
located at 906, 910-12 Royal St. New Orleans, LA 70116.
Royal Alice Properties sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. La. Case No. 19-12337) on Aug.
29, 2019. In the petition signed by Susan Hoffman, member/manager,
the Debtor was estimated to have $1 million to $10 million in both
assets and liabilities.
The case is assigned to Judge Elizabeth W. Magner.
Leo D. Congeni, Esq. at Congeni Law Firm, LLC, represents the
Debtor.
RUBY'S FRANCHISE: Trustee Taps Dinsmore & Shohl as Legal Counsel
----------------------------------------------------------------
Peter Mastan, the Chapter 11 trustee for Ruby's Franchise Systems,
Inc., seeks approval from the U.S. Bankruptcy Court for the Central
District of California to hire Dinsmore & Shohl LLP as his legal
counsel.
Dinsmore will provide these services in connection with Debtor's
Chapter 11 case:
1. prepare legal papers on behalf of the trustee related to
the administration of Debtor's bankruptcy estate;
2. represent the trustee at hearings;
3. investigate Debtor and its financial affairs;
4. prosecute and defend litigated matters that may arise
during Debtor's bankruptcy case;
5. advise the trustee with respect to the claims (and claims
objections) asserted in the case;
6. commence litigation or other actions necessary to assert
rights held by Debtor or its estate;
7. represent the trustee in the sale of real property and
other assets of the estate; and
8. advise the trustee concerning franchising, licensing, cash
collateral, secured lending carve-out, directors' and officers'
liability and operating issues.
The firm will be paid at these rates:
Christopher Celentino Partner $700 per hour
Ashleigh Danker Of Counsel $505 per hour
Peter Bowie Of Counsel $640 per hour
Travis Terry Paraprofessional $200 per hour
Caron Burke Paraprofessional $200 per hour
Dinsmore is "disinterested" within the meaning of Section 101(14)
of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Christopher Celentino, Esq.
Ashleigh A. Danker, Esq.
Peter W. Bowie, Esq.
Dinsmore & Shohl LLP
655 West Broadway, Suite 800
San Diego, CA 92101
Telephone: 619.400.0500
Facsimile: 619.400.0501
Email: christopher.celentino@dinsmore.com
ashleigh.danker@dinsmore.com
peter.bowie@dinsmore.com
About Ruby's Franchise
Ruby's Franchise Systems, Inc. -- https://www.rubys.com/franchising
-- is the creator of Ruby's Diner which serves burgers, handmade
milkshakes, in addition to a wide selection of breakfast, lunch and
dinner entrees. Ruby's Diner operates across California, Nevada and
Texas.
Ruby's Franchise Systems filed its voluntary petition for relief
under chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
18-13324) on Sept. 6, 2018. In the petition signed by Doug
Cavanaugh, president, Debtor was estimated to have up to $50,000 in
assets and $1 million to $10 million in liabilities.
Theodora Oringher PC, led by Eric J. Fromme, is the Debtor's legal
counsel. Armory Consulting Co. serves as financial advisor.
Peter J. Mastan was appointed as Chapter 11 trustee in Debtor's
bankruptcy case. The trustee is represented by Dinsmore & Shohl
LLP.
Debtor filed its Chapter 11 plan of reorganization on Oct. 21,
2019.
SCOOBEEZ INC: Amazon Raises Issue of Delay of Effective Date
------------------------------------------------------------
On April 9, 2020, the Court held a hearing on Scoobeez Inc., et
al.'s motion seeking an order approving its disclosure statement
and Amazon's objections to that disclosure statement. Among other
things, at the conclusion of that hearing, the Court requested that
the Debtors make certain amendments to their disclosure statement
and ruled that Amazon's objection to the disclosure statement and
plan regarding the potential delay in the Effective Date of the
plan (as amended) to December 31, 2020, was a confirmation issue
that would be reserved and determined at the plan confirmation
hearing.
Since that date, the Debtors have provided Amazon with drafts of
their proposed amended plan and disclosure statement, Amazon has
provided the Debtors with comments to those drafts and the Debtors
have filed an amended plan and disclosure statement. With one
exception, the proposed amended plan and disclosure statement
addressed the issues raised by Amazon's objection to the Debtor's
disclosure statement, exclusive of the issue regarding the delay in
the plan effective date to December 31, 2020 that the Court has
determined to address at the plan confirmation hearing.
Section IX(iii) of the Debtors' proposed amended plan now provides
that the Effective Date of the plan shall not occur until:
the earlier of (a) the entry of a final non-appealable
order resolving the Existing Amazon Litigation and (b) December 31,
2020, provided that the Debtors' estate at all times has sufficient
resources to pay Administrative Expense Claims (excluding
Professional Fees, which shall be capped at the line items therein
without allowance for any variance and the Estate Cash Payment) or
a binding commitment by Hillair to fund any shortfall of the same,
exists during such period; and ...
Amazon Logistics, Inc., submitted on April 15, 2020, a supplement
to its objection to Scoobeez, et al.'s Amended Disclosure
Statement.
Amazon points out that the Plan is silent as to how one is to
determine if the Debtors' estate has sufficient resources to pay
administrative expense claims. Amazon further points out that
however one determines if the Debtors' estate has sufficient
resources to pay administrative expense claims, if the Debtors'
fail that test at any time between the conclusion of the
confirmation hearing and the Effective Date, Hillair has discretion
to delay the Effective Date by refusing to provide a funding
commitment. Amazon asserts that whatever criteria the Debtors' may
apply, it is impossible to determine whether or when this condition
will be satisfied. Amazon complains that with this provision, the
Effective Date of the plan could be delayed for years if there is
litigation over the allowance of an administrative expense claim.
Amazon points out that this provision is yet another device to
delay the Effective Date of the plan and, thereby, continue the
automatic stay in effect to Amazon's prejudice.
Attorneys for Amazon Logistics:
MORGAN, LEWIS & BOCKIUS LLP
Richard W. Esterkin, SBN 70769
300 S Grand Ave Fl 22
Los Angeles CA 90071-3132
Tel: (213) 612-2500
Fax: (213) 612-2501
E-mail: richard.esterkin@morganlewis.com
About Scoobeez Inc.
Scoobeez Inc. -- https://www.scoobeez.com/ -- operates an on demand
door-to-door logistics and real time delivery service company. It
offers messaging, same day and preferred deliveries, and courier
services.
Scoobeez and its affiliates, Scoobeez Global Inc. and Scoobur LLC,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
C.D. Cal. Lead Case No. 19-14989) on April 30, 2019.
Judge Julia W. Brand oversees the cases.
At the time of the filing, Scoobeez had estimated assets and
liabilities of between $10 million and $50 million while Scoobur
had estimated assets and liabilities of less than $50,000.
Meanwhile, Scoobeez Global disclosed $6,274,654 in assets and
$7,886,579 in liabilities.
Foley & Lardner LLP is the Debtors' bankruptcy counsel. Conway
Mackenzie, Inc., is the Debtors' financial advisor.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on May 20, 2019. The committee retained Levene, Neale,
Bender, Yoo & Brill LLP as its counsel.
SEAWORLD PARKS: Bank Debt Trades at 16% Discount
------------------------------------------------
Participations in a syndicated loan under which SeaWorld Parks &
Entertainment Inc is a borrower were trading in the secondary
market around 84 cents-on-the-dollar during the week ended Fri.,
May 1, 2020, according to Bloomberg's Evaluated Pricing service
data.
The $1.542 billion facility is a term loan. The loan is scheduled
to mature on March 31, 2024. About $1.504 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
SERTA SIMMONS: Bank Debt Trades at 54% Discount
-----------------------------------------------
Participations in a syndicated loan under which Serta Simmons
Bedding LLC is a borrower were trading in the secondary market
around 46 cents-on-the-dollar during the week ended Fri., May 1,
2020, according to Bloomberg's Evaluated Pricing service data.
The $2 billion facility is a term loan. The loan is scheduled to
mature on November 8, 2023. About $1.9 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
SHAPPHIRE RESOURCES: Unsecured Creditors Get 20% Dividend in Plan
-----------------------------------------------------------------
Shapphire Resources, LLC, will seek approval of its Amended
Disclosure Statement on June 3, 2020 at 11:a.m. in Courtroom 1675,
Roybal Federal Building, United States Bankruptcy Court, 255 East
Temple Street, Los Angeles, California 90012.
According to the Amended Disclosure Statement, the Debtor has
proposed a reorganization plan. Shapphire Resources proposes to
restructure its debts through Plan and accomplish payments under
the Plan with cash on hand in the debtor in possession account,
rental income generated by those certain properties and initial and
periodic capital distributions from Debtor’s managing member,
Susana Tubianosa, or any other third party, to the extent necessary
to enable Shapphire Resources to meet its obligations under the
Plan.
Class 2 Secured claim of Hayland Trust Deed Lienholder with a total
claim amount of $722,720 is impared. The Class 2 claim will be
amortized over 30 years and paid, together with interest at the
rate of 5% per annum, through equal monthly principal and interest
payments in the amount of $3,087 on the 15th day of the 1st month
following entry of a final order confirming the Plan, and
continuing on the 15th day of each month thereafter for a period of
360 months.
Class 3 Secured claim of MTGLZ LP totaling $1,207,182 is impaired.
The treatment to be afforded to the Cold Plains Trust Deed
Lienholder will depend upon whether the Class 3 claimant chooses
Option #1 or Option #2. If the claimant chooses Option 1, the
latter will received monthly payment of $3,894 for 30 years with
interest rate of 5%. If the claimant chooses Option 2, the latter
will receive monthly payment of $2,822.84 for 40 years with
interest rate of 4%.
Class 5 General Unsecured Claims are impaired. Unsecured claims
are expected to total $130,508, exclusive of unsecured portions of
the claims of the Hayland Trust Deed Lienholder ($197,720) and the
Cold Plains Trust Deed Lienholder ($452,182). General unsecured
creditors will receive a dividend of 20% of their allowed claims,
paid in ninety equal quarterly installments of $290.02 each,
commencing on the first day of the first calendar quarter after the
effective date, exclusive of the ninety equal quarterly
installments of $1,016 that will be the Cold Plains Trust Deed
Lienholder if it chooses option# 2.
The Class 6 Interest Holder is impaired. Tubianosa will retain her
100% membership interest in Shapphire Resources.
The Plan will be funded by the following: (a) cash on hand
($94,385.00 as of March 31, 2020); (b) rental income generated by
the Hayland Street Property ($2,500 per month); (c) rental income
generated by the Cold Plains Drive Property ($3,500 per month); (d)
an initial capital contribution in the amount of $50,000 from
Tubianosa, and periodic contributions from Tubianosa or any other
third party to the extent necessary to enable Shapphire Resources
to meet its obligations under the Plan.
A full-text copy of the Amended Disclosure Statement dated April
15, 2020, is available at https://tinyurl.com/ybpczyqw from
PacerMonitor.com at no charge.
General Insolvency Counsel for the Debtor:
RAYMOND H. AVER
LAW OFFICES OF RAYMOND H. AVER
A Professional Corporation
10801 National Boulevard, Suite 100
Los Angeles, California 90064
Telephone: (310) 571-3511
Email: ray@averlaw.com
About Shapphire Resources
Shapphire Resources, LLC's principal assets are located at 2770
Cold Plains Drive Hacienda Heights, CA 91745.
Shapphire Resources previously filed for bankruptcy protection
(Bankr. C.D. Cal. Case No. 10-57493) on Nov. 4, 2010.
Shapphire Resources filed a Chapter 11 bankruptcy petition (Bankr.
C.D. Cal. Case No. 17-15033) on April 24, 2017. In the petition
signed by Susan Tubianosa, manager, the Debtor was estimated to
have $1 million to $10 million in both assets and liabilities.
The
Hon. Neil W. Bason oversees the case. The Law Offices of Raymond
H. Aver, a professional corporation, represents the Debtor.
SKFR LLC: Unsecureds Will Receive 100% of Their Claims
------------------------------------------------------
SKFR LLC has filed a proposed Chapter 11 plan and a Disclosure
Statement dated April 15, 2020.
It is the income projections along with cash from the completion of
the sales which will be used to fund the Plan to repaid creditors.
Class 5 Claimant (Allowed Secured Claim of Austin Bank) are
impaired and shall be satisfied as follows: Austin has filed a
secured Proof of Claim in the amount of $287,313. The Debtor shall
continue its efforts to sell the real property in the Austin
Collateral. In the interim, the Debtor shall pay the Allowed
Austin Secured Claim in 180 equal month installments with interest
at the rate of Wall Street Prime Rate plus 2% on the Effective
Date. The payments shall commence on the Effective Date. The
anticipated monthly payment to Austin should be approximately
$2,310. Austin shall retain its liens on the Austin Collateral,
until paid in full in accordance with the terms of the Plan.
Class 6 Claimant (Allowed Secured Claim of Mid South Bank) is
impaired and shall be satisfied as follows: Mid South has filed a
secured Proof of Claim in the amount of $718,341. The Debtor
currently has a sale of the property located at 801 ESE Loop 323,
Tyler, Smith County, Texas pending before the Court, upon approval
and closing of the sale, Mid South shall be paid $718,340.80. Upon
the closing of the sale Mid South shall release it lien on the Mid
South Collateral.
Class 7 Claimant (Allowed Secured Claim of UBank) is impaired and
will be satisfied as follows: Ubank is owed approximately $71,168.
The Debtor currently has a sale of the property located at 2627 Old
Henerson Highway, Tyler, Smith County, Texas pending before the
Court, upon approval and closing of the sale, Ubank will be paid
$70, 349.18. Upon the closing of the sale, UBank shall release it
lien on the Mid South Collateral.
Class 8 (Unsecured Creditors) are impaired under the Plan and will
be satisfied as follows: The Allowed Claims of Unsecured Creditors
will receive their pro rata portion of payments made by the Debtor
into the Class 8 Creditors Pool. The Debtor shall make 6 monthly
payments of $1,000 each commencing on the Effective Date. The
Debtor will make distributions to the Class 8 Allowed Claims every
90 days commencing 90 days after the Effective Date. Based upon
the Debtor's schedules, the Class 8 creditors will receive
approximately 100% on their claims.
The Debtor anticipates the cash on hand and continued operations of
the Properties and additional sale of property to fund the Plan.
A full-text copy of the Disclosure Statement dated April 15, 2020,
is available at https://tinyurl.com/ycjfjazx from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Eric A. Liepins
ERIC A. LIEPINS, P.C.
12770 Coit Road Suite
1100 Dallas, Texas 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
About SKFR, Inc.
SKFR, Inc., filed a Chapter 11 bankruptcy petition (Bankr. E.D.
Tex. Case No. 19-60674) on Dec. 4, 2019, disclosing under $1
million in both assets and liabilities. The Debtor is represented
by Eric A. Liepins, P.C.
SOUTHERN FOODS: Exclusivity Period Extended Until May 25
--------------------------------------------------------
Judge David Jones of the U.S. Bankruptcy Court for the Southern
District of Texas extended the exclusive periods during which
Southern Foods Group, LLC and its affiliates can file and solicit
votes on its Chapter 11 plan through May 25 and July 24,
respectively.
William Greendyke, Esq., at Norton Rose Fulbright US, LLP, said
extending the exclusive periods would allow the companies to
complete the marketing process for a potential reorganization or
sale of their assets. The companies are also working with the ad
hoc group of pre-bankruptcy unsecured noteholders regarding a
possible plan of reorganization for part or all of their
businesses.
About Southern Foods Group
dba Dean Foods
Southern Foods Group, LLC, which conducts business under the name
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.
Southern Foods and its 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. Judge David Jones presides over the
cases.
The Debtors posted estimated assets and liabilities of $1 billion
to $10 billion.
The Debtors tapped David Polk & Wardell LLPas general bankruptcy
counsel; Norton Rose Fulbright US LLP as local counsel; Alvarez
Marsal as financial advisor; Evercore Group LLC as investment
banker; and Epiq Corporate Restructuring LLC as notice and claims
agent.
The Office of the U.S. Trustee appointed creditors to serve on the
official committee of unsecured creditors on Nov. 22, 2019. The
committee is represented by Philip C. Dublin, Esq., at Akin Gump
Strauss Hauer & Feld LLP.
STAPLES INC: Bank Debt Trades at 22% Discount
---------------------------------------------
Participations in a syndicated loan under which Staples Inc is a
borrower were trading in the secondary market around 78
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $2 billion facility is a term loan. About $2 billion of the
loan remains outstanding. The loan is scheduled to mature on April
12, 2026.
The Company's country of domicile is United States.
SUMMIT VIEW: Denlingers Want Violations Added to Disclosures
------------------------------------------------------------
Harry Denlinger and Janet Denlinger, creditors and parties in
interest, filed a supplemental objection to the Disclosure
Statement for Plan of Reorganization of debtor Summit View, LLC:
* Pursuant to the Notice of Permit Violations, the Debtor was
given until May 8, 2020, to resolve the SWFWMD Permit violations.
Further, the Debtor's failure to comply with the SWFWMD Permit
conditions constitute a violation of Chapter 373, Florida Statutes,
and Chapter 40D-4, Florida Administrative Code.
* The Disclosure Statement fails to disclose the Notice of
Permit Violation and the impact on the Plan. The Debtor should be
required to amend the Disclosure Statement and disclose the impact
of the SWFWMD Permit upon the Plan, the costs to remedy the SWFWMD
Permit violations, and the impact on the feasibly of the Plan.
* The Debtor should be required to disclose which Permits the
Debtor failed to perform or breached, and the terms and obligations
of the Permits which the Debtor failed to perform or breach.
* The Disclosure Statement fails to provide any historic
prepetition financial disclosure of the Debtor's financial
operations. Without any historical financial disclosure about the
Debtors actual financial performance, the Disclosure Statement is
inadequate and cannot be approved.
* The Debtor fails to provide the current value of the Real
Property and the basis for that value. Although the Debtor
identifies the fair market value of the Real Property at
$5,200,000, the Debtor fails to provide the basis or support for
this value.
A full-text copy of the Denlingers' supplemental objection to the
Disclosure Statement dated April 17, 2020, is available at
https://tinyurl.com/ycjcnm9s from PacerMonitor at no charge.
Attorneys for Harry Denlinger and Janet Denlinger:
John J. Lamoureux
Donald E. Hemke
Carlton Fields, P.A.
P.O. Box 3239
Tampa, FL 33601-3239
Tel: 813-223-7000
Fax: 813-229-4133
E-mail: jlamoureux@carltonfields.com
delliottcarltonfields.com
dhemke@carltonfields.com
bwoolard@carltonfields.com
- and -
Joseph F. Southron
Four Rivers Law PLLC
400 N. Ashley Dr., Suite 1900
Tampa, Florida 33602
Tel: 813-773-5705
Fax: 813-773-5090
E-mail: joe@fourriverslaw.com
- and -
J. Michael Shea
6301 Bayshore Blvd.
Tampa, Florida 33611
Tel: (813) 310-8057
Fax: (813) 288-1927
E-mail: mike@jmichaelshea.com
jmarkette@smlctampa.org
About Summit View
Summit View, LLC is a single asset real estate debtor (as defined
in 11 U.S.C. Section 101(51B)). It previously filed Chapter 11
petition (Bankr. M.D. Fla. Case No. 09-06495) on April 2, 2009.
Summit View sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 19-10111) on Oct. 24, 2019. At the
time of the filing, the Debtor was estimated to have assets of
between $1 million and $10 million and liabilities of the same
range. Debtor tapped Johnson, Pope, Bokor, Ruppel & Burns, LLP as
its bankruptcy counsel; and Stearns Weaver Miller Weissler
Alhadeff & Sitterson, P.A. and Wright, Fulford, Moorhead & Brown,
PA as its special counsel.
SUPERIOR AIR: JetSuite in Chapter 11 Due to Near Zero Revenues
--------------------------------------------------------------
Martin Cook, reporting for AV Web, reports that charter airline
company JetSuite, formally known as Superior Air Charter LLC,
stopped operations in the middle of April 2020 and furloughed
employees. With near zero revenue due to lockdowns created by the
Coronavirus pandemic, JetSuite sought bankruptcy protection.
"JetSuite has always done its best to honor its commitments to
customers throughout its exemplary history, and JetSuite leadership
has spent and will continue to spend enormous time and effort
pursuing strategic and financial alternatives to restart
operations," JetSuite Chief Restructuring Officer Ted Gavin said,
according to AV Web.
"Unfortunately, the global circumstances brought by the Covid-19
pandemic have caused JetSuite's revenues to drop to near zero, and
the carnage across the economy and in the aviation industry in
particular is well reported and has no clear end in sight, so we
have made the regrettable but necessary decision to file for
chapter 11 bankruptcy protection."
JetSuite added that it operated over 111,000 flights in 11 years
and said it will seek bankruptcy protection to "preserve, to
maximize, and to reorganize the value of its assets and will resume
business operations potentially."
About JetSuite
Superior Air Charter, LLC-- https://www.jetsuite.com -- operates
charter air carrier JetSuite. With its current headquarters in
Dallas, Texas, JetSuite was founded in 2006 by Alex Wilcox, Keith
Rabin, and Brian Coulter. It is one of the biggest operators of
private air services in the United States. It operates chartered
services with a fleet of Phenom 100 and Citation CJ3 aircraft and
offer subscription-based air travel services to passengers to
western United States, Canada, and Mexico.
Superior Air Charter sought Chapter 11 protection (Bankr. D. Del.
Case No. 20-11007) on April 28, 2020. The Debtor was estimated to
have $1 million to $10 million in assets and $50 million to $100
million in liabilities. The Debtor tapped Bayard, P.A., as
counsel; and Stretto as claims agent.
SYNIVERSE HOLDINGS: Bank Debt Trades at 30% Discount
----------------------------------------------------
Participations in a syndicated loan under which Syniverse Holdings
Inc is a borrower were trading in the secondary market around 71
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.7 billion facility is a term loan. The loan is scheduled to
mature on March 9, 2023. About $1.7 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
TAYLOR VILLAS: June 2 Plan & Disclosure Hearing Set
---------------------------------------------------
Debtor Taylor Villas, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Texas, McAllen Division, a Combined Plan
of Reorganization and Disclosure Statement.
On April 17, 2020, Judge Eduardo V. Rodriguez conditionally
approved the Disclosure Statement and established the following
dates and deadlines:
* May 26, 2020, at 12:00 noon is the deadline for filing and
serving written objections to confirmation of the Plan or final
approval of the Disclosure Statement and written acceptances or
rejections of the plan.
* June 2, 2020, at 9:00 a.m. in the United States Bankruptcy
Court, 10th Floor, 1701 W. Business Hwy 83, McAllen, Texas 78501 is
the hearing to consider final approval of the Disclosure Statement
and confirmation of the Plan.
A full-text copy of the order dated April 17, 2020, is available at
https://tinyurl.com/y8k73chq from PacerMonitor at no charge.
About Taylor Villas
Taylor Villas, LLC, is a privately held company in the residential
building construction business. It filed for Chapter 11 bankruptcy
protection (Bankr. S.D. Tex. Case No. 19-70474) on Dec. 2, 2019.
In the petition signed by Jong Il Shin, president, the Debtor
disclosed $3,270,711 in assets and $1,182,424 in liabilities. The
Hon. Eduardo V. Rodriguez oversees the case. The Debtor is
represented by Jana Smith Whitworth, Esq., at JS Whitworth Law
Firm, PLLC.
TEEKAY CORP: S&P Affirms 'B+' Long-Term ICR on Contract Strength
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term issuer credit and
issue-level ratings on Teekay Corp. (TGP).
The rating agency expects the company's credit measures will remain
within its rating threshold. The affirmation largely reflects the
contracted revenue base at Teekay LNG Partners L.P., which provides
earnings stability. At the same time, S&P assumes cash flows for
Teekay Tankers Ltd. (TNK) will benefit in the near term as demand
for floating storage drives tanker rates high.
"Our ratings also incorporate our expectation for strong free cash
flow generation at each of these subsidiaries in 2020, which should
enable the company to continue to focus on its deleveraging trend.
Teekay's leverage declined from 8x in 2018 to mid 5x in 2019 as the
company benefitted from new LNG vessel deliveries and stronger
supply and demand fundamentals for both TGP and TNK. We expect
leverage will further improve from debt reduction and estimate
adjusted debt-to-EBITDA of about 5x and FFO-to-debt of about 15% in
2020 and 2021, which, in our view, are commensurate with the
rating," S&P said.
The stable outlook reflects S&P's expectation that the company's
fixed-rate LNG charters and expected positive trend in tanker rates
over the near term should enable Teekay to generate adjusted
FFO-to-debt above 12% over the next 12 months. S&P's estimates also
incorporate its expectation of sizable free operating cash flow
generation that will be used for debt reduction.
"We could lower the rating over the next 12 months if the company's
operating performance deviates from our expectations, with
FFO-to-debt declining to the mid-to-lower half of the 0%-12% range.
We believe this could occur if industry conditions lead to
unfavorable renegotiations of LNG contracts resulting in a
significant negative variation in revenues and cash flows relative
to current forecasts. A downgrade could also result if financial
policies are not aligned with our current expectation of free cash
flows being directed toward debt repayment. We could also lower the
rating if Teekay's liquidity deteriorates in the next 12 months as
a result of lower-than-expected earnings," S&P said.
"In our view, near-term rating upside is constrained by our
expectation of soft economic conditions in the next 12 months.
However, we could consider an upgrade if the financial risk profile
significantly improved, with adjusted FFO-to-debt consistently
above 20% and positive free operating cash flow to support the
company's future growth objectives without incurring additional
debt," S&P said.
TENNECO INC: Bank Debt Trades at 22% Discount
---------------------------------------------
Participations in a syndicated loan under which Tenneco Inc is a
borrower were trading in the secondary market around 78
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.7 billion facility is a term loan. The loan is scheduled to
mature on October 1, 2025. About $1.6 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
TOWN SPORTS: Bank Debt Trades at 84% Discount
---------------------------------------------
Participations in a syndicated loan under which Town Sports
International LLC is a borrower were trading in the secondary
market around 16 cents-on-the-dollar during the week ended Fri.,
May 1, 2020, according to Bloomberg's Evaluated Pricing service
data.
The $325 million facility is a term loan. About $193.2 million of
the loan remains outstanding. The loan is scheduled to mature on
November 15, 2020.
The Company's country of domicile is United States.
TRANSPLACE HOLDINGS: Bank Debt Trades at 26% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Transplace Holdings
Inc is a borrower were trading in the secondary market around 74
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $110 million facility is a term loan. The loan is scheduled to
mature on October 9, 2025. About $100 million of the loan remains
outstanding.
The Company's country of domicile is United States.
TWEDDLE GROUP: Bank Debt Trades at 62% Discount
-----------------------------------------------
Participations in a syndicated loan under which Tweddle Group Inc
is a borrower were trading in the secondary market around 38
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $225 million facility is a term loan. About $180 million of
the loan remains outstanding. The loan is scheduled to mature on
October 24, 2022.
The Company's country of domicile is United States.
TWO GUNS CONSULTING: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------------
The Office of the U.S. Trustee on May 5, 2020, disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Two Guns Consulting &
Construction, LLC.
About Two Guns Consulting & Construction
Two Guns Consulting & Construction, LLC, a privately held company
in the heavy and civil engineering construction industry, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Texas Case No. 20-20077) on Feb. 11, 2020. At the time of the
filing, Debtor disclosed assets of between $1 million and $10
million and liabilities of the same range. Judge David R. Jones
oversees the case. Shelby A. Jordan, Esq., at Jordan, Holzer &
Ortiz, P.C., is the Debtor's legal counsel.
UNIT CORP: Extends Standstill Agreement with BOKF Until May 15
--------------------------------------------------------------
Unit Corporation and certain of its subsidiaries entered into a
Standstill and Amendment Agreement on March 11, 2020, in respect of
that certain Senior Credit Agreement, dated as of Sept. 13, 2011
with the lenders party thereto and BOKF, NA dba Bank of Oklahoma,
as administrative agent for the Lenders, as amended by a First
Amendment to Standstill and Amendment Agreement dated April 15,
2020, and a Second Amendment to Standstill and Amendment Agreement
dated April 17, 2020, by and among the Borrowers and the
Administrative Agent on behalf of the Lenders.
On May 4, 2020, the Borrowers entered into a Third Amendment to
Standstill and Amendment Agreement with the Administrative Agent
that extended the Standstill Period under the Standstill Agreement
until the earlier of: (i) the receipt by any Credit Party from the
Administrative Agent of notice of the occurrence of any Termination
Event and (ii) 3:00 p.m. Central time on May 15, 2020.
"Termination Event" is defined in the Standstill Agreement to
include the occurrence of any one or more of the following: (i) any
representation or warranty made or deemed to have been made by any
Credit Party under the Standstill Agreement being false, misleading
or erroneous in any material respect when made or deemed to have
been made, (ii) any Credit Party failing to perform, observe or
comply with any covenant, agreement or term contained in the
Standstill Agreement or (iii) any Default which is not cured within
five business days or Event of Default occurring under the Credit
Agreement or any of the other Loan Documents.
About Unit Corporation
Unit Corporation -- http://www.unitcorp.com/-- is a Tulsa-based,
publicly held energy company engaged through its subsidiaries in
oil and gas exploration, production, contract drilling, and gas
gathering and processing. Unit's Common Stock is listed on the New
York Stock Exchange under the symbol UNT.
Unit Corporation reported a net loss attributable to the company of
$553.9 million for the year ended Dec. 31, 2019, compared to a net
loss attributable to the company of $45.29 million for the year
ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $2.09
billion in total assets, $260.05 million in total current
liabilities, $663.2 million in long-term debt less debt issuance
costs, $27,000 in non-current derivative liabilities, $2.07 million
in operating lease liability, $95.34 million in other long-term
liabilities, $13.71 million in deferred income taxes, and $1.05
billion in total shareholders' equity.
PricewaterhouseCoopers LLP, in Tulsa, Oklahoma, the Company's
auditor since 1989, issued a "going concern" qualification in its
report dated March 16, 2020, citing that the Company has incurred
significant losses, is in a negative working capital position, and
does not anticipate that forecasted cash and available credit
capacity will be sufficient to meet their commitments over the next
twelve months, which raises substantial doubt about its ability to
continue as a going concern.
* * *
As reported by the TCR on Nov. 15, 2019, Moody's Investors Service
downgraded Unit Corporation's Probability of Default Rating to
Ca-PD from B3-PD, Corporate Family Rating to Caa1 from B3, and
senior subordinated notes to Caa2 from Caa1. The downgrade of the
PDR reflects Unit's proposed debt exchange offer, which Moody's
views to be a distressed exchange. The Caa1 CFR and Caa2 rating on
the 2021 notes reflect Moody's view on expected recovery, which is
likely to be in the 80%-90% range. Prior to the exchange offer,
Unit was contending with depressed commodity prices, looming
maturities in a challenged refinancing environment and declining
cash flow, Moody's said.
As reported by the TCR on Jan. 21, 2020, Fitch Ratings downgraded
the Long-Term Issuer Default Rating of Unit Corporation to 'CC'
from 'CCC+'. Fitch's downgrade and watch reflect the company's
heightened refinancing and liquidity risks associated with
pro-longed operational deterioration since its bond exchange
announcement.
US SILICA: Bank Debt Trades at 45% Discount
-------------------------------------------
Participations in a syndicated loan under which US Silica Co is a
borrower were trading in the secondary market around 55
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.3 billion facility is a term loan. The loan is scheduled to
mature on May 1, 2025. About $1.2 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
VERICAST CORP: Bank Debt Trades at 36% Discount
-----------------------------------------------
Participations in a syndicated loan under which Vericast Corp is a
borrower were trading in the secondary market around 65
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.8 billion facility is a term loan. The loan is scheduled to
mature on November 3, 2023. About $1.5 billion of the loan
remains outstanding.
The Company's country of domicile is United States.
VILLA VERDE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
Villa Verde Condominium Association Inc., according to court
dockets.
About Villa Verde Condominium Association
Villa Verde Condominium Association, Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
20-00837) on Feb. 11, 2020. At the time of the filing, the Debtor
had estimated assets of less than $50,000 and liabilities of
between $100,001 and $500,000. Judge Karen Jennemann oversees the
case. Aldo G. Bartolone, Esq., at Bartolone Law, PLLC, is the
Debtor's legal counsel.
VILLAGE EAST: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 8 appointed a committee to represent
unsecured creditors in the Chapter 11 case of Village East, Inc.
The committee members are:
1. Vicki Schopmeyer
301 Christian Village Circle
Louisville, KY 40243
vschop@twc.com
2. Estate of Norma Sils
Theodore S. Sils Jr.
1572 Ashes Creek Lane
Bloomfield, KY 40008
Tsils@Bellsouth.net
3. Jean A Small
402 Christian Village Circle
Louisville, KY 40243
jasmall2@gmail.com
4. Carol Redd
c/o Stacey Mills POA
418 Christian Village Circle
Louisville, KY 40243
smillsprosperity12@gmail.com
5. Robert Janes
c/o Lisa Yancey POA
9805 Independence School Road
Louisville, KY 40291
lyancey4HIM@yahoo.com
6. Anthony Gadlage
414 Christian Village Circle
Louisville, KY 40243
7. Ralph N. Wilson
11506 Christian Village Circle
Louisville, KY 40243
ralphcilson57@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Village East
Village East, Inc. -- https://www.villageeastcommunity.com/ -- is a
Kentucky non-profit 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. At the
time of filing, Debtor had $8,143,599 in assets and $9,247,199 in
liabilities.
The case is assigned to Judge Joan A. Lloyd. The Debtor is
represented by Charity S. Bird, Esq., at Kaplan Johnson Abate &
Bird LLP.
WINDSTREAM HOLDINGS: Exclusivity Period Extended Until June 22
--------------------------------------------------------------
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern
District of New York extended to June 22 the period during which
only Windstream Holdings, Inc. and its subsidiaries can file a
Chapter 11 plan.
The companies have the exclusive right to solicit votes for their
plan until Aug. 22.
About Windstream Holdings
Windstream Holdings, Inc., and its subsidiaries provide advanced
network communications and technology solutions for businesses
across the United States. They also offer broadband, entertainment
and security solutions to consumers and small businesses primarily
in rural areas in 18 states.
Windstream Holding and its subsidiaries filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 19-22312) on Feb. 25,
2019.
Debtors had total assets of $13,126,435,000 and total debt of
$11,199,070,000 as of Jan. 31, 2019.
Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as legal counsel; PJT Partners LP as financial
advisor and investment banker; Alvarez & Marsal North America LLC
as restructuring advisor; and Kurtzman Carson Consultants as notice
and claims agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on March 12, 2019. The committee tapped
Morrison & Foerster LLP as its legal counsel, AlixPartners, LLP, as
its financial advisor, and Perella Weinberg Partners LP as
investment banker.
WINDSTREAM SERVICES: Bank Debt Trades at 45% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Windstream Services
LLC is a borrower were trading in the secondary market around 55
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.3 billion facility is a term loan. The loan is scheduled to
mature on March 30, 2021. About $1.2 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
WP CPP: Bank Debt Trades at 23% Discount
----------------------------------------
Participations in a syndicated loan under which WP CPP Holdings LLC
is a borrower were trading in the secondary market around 77
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.
The $1.1 billion facility is a term loan. The loan is scheduled to
mature on April 30, 2025. About $1.1 billion of the loan remains
outstanding.
The Company's country of domicile is United States.
WP CPP: Moody's Cuts CFR to Caa1 & 1st Lien Sr. Sec. Rating to B3
-----------------------------------------------------------------
Moody's Investors Service downgraded its ratings for WP CPP
Holdings, LLC, including the company's corporate family rating
(CFR, to Caa1 from B3) and probability of default rating (to
Caa1-PD from B3-PD), as well as the ratings for its first lien
senior secured credit facilities (to B3 from B2) and second lien
senior secured term loan (to Caa3 from Caa2). Its actions conclude
the review for downgrade that began on December 26, 2019. The
ratings outlook is negative.
RATINGS RATIONALE
The downgrades reflect Moody's expectation of a challenging
operating environment due to the disruptive effects of the
coronavirus that will lead to material earnings and cash flow
headwinds and a weakening liquidity profile. Moody's views CPP's
large exposure to commercial aerospace markets as making the
company particularly vulnerable to the pending downturn in
production rates for aerospace platforms. These lower rates are
anticipated to create meaningful earnings pressures, that will
result in an across-the-board weakening of credit metrics, better
reflected at the Caa1 rating level.
The Caa1 Corporate Family Rating balances CPP's modest scale and
highly levered balance sheet against the company's incumbency
position on multiple products that have significant barriers to
entry. Moody's recognizes CPP's expanding set of capabilities and
technologies that have translated into meaningful content wins on a
number of growth platforms in commercial aerospace and industrial
gas turbine markets. That said, leverage remains highly elevated
(estimated Moody's adjusted debt-to-EBITDA approaching 7x),
near-term cash generation is expected to remain weak and will be
against a backdrop of a difficult operating environment involving
lower production volumes and considerable execution challenges.
The rapid and widening spread of the coronavirus outbreak, the
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 aerospace
sector has been adversely affected by the shock given its indirect
sensitivity via the airline industry to consumer demand and market
sentiment. More specifically, CPP's weakening financial flexibility
and exposure to commercial aerospace leave it vulnerable to shifts
in market sentiment in these unprecedented operating conditions,
and the company remains vulnerable to the outbreak continuing to
spread. Moody's regards the coronavirus outbreak as a social risk
under its ESG framework, given the substantial implications for
public health and safety. Its actions reflect the impact on CPP of
the breadth and severity of the shock, and the broad deterioration
in credit quality it has triggered.
The negative outlook incorporates Moody's expectations of
challenging operating environment and earnings and cash flow
headwinds for at least the next 12 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade include an improving
liquidity profile involving expectations of free cash flow-to-debt
consistently in the low single-digits range, reduced reliance on
external sources of financing, and comfortable compliance with
financial covenants. Demonstrated ability to execute strongly and
along with resumption of production on the 737 MAX program would
also be prerequisites for a ratings upgrade.
Factors that could lead to a downgrade include expectations of
deteriorating liquidity with meaningful cash burn during 2020 or an
anticipated breach of financial covenants. A drop in sales or
earnings beyond what is already contemplated could also result in
downward ratings pressure. An extended shut-down of the 737 MAX
program into late 2020 could also lead to a downgrade.
The following summarizes its rating actions:
Issuer: WP CPP Holdings, LLC
Corporate Family Rating, Downgraded to Caa1 from B3, previously
on review for Downgrade
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD,
previously on review for Downgrade
Senior Secured First Lien Credit Facility, Downgraded to B3
(LGD3) from B2 (LGD3), previously on review for Downgrade
Senior Secured Second Lien Term Loan, Downgraded to Caa3 (LGD5)
from Caa2 (LGD5), previously on review for Downgrade
Outlook, Changed To Negative From Rating Under Review
Headquartered in Cleveland, Ohio, WP CPP Holdings, LLC -- d/b/a
Consolidated Precision Products -- is a castings manufacturer of
engineered components and subassemblies for the commercial
aerospace, military and defense and energy markets. The company is
majority-owned in equal parts by private equity firm Warburg Pincus
and Berkshire Partners.
The principal methodology used in these ratings was Aerospace and
Defense Industry published in March 2018.
YIPPIE DOODLE: Exclusivity Period Extended Until June 1
-------------------------------------------------------
Judge Christopher Lopez of the U.S. Bankruptcy Court for the
Southern District of Texas extended to June 1 the period during
which only Yippie Doodle Corp. can file its disclosure statement
and Chapter 11 plan.
About Yippie Doodle Corp.
Yippie Doodle Corp. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 19-35389) on Sept. 27,
2019. At the time of the filing, Debtor had estimated assets of
less than $50,000 and liabilities of between $100,001 and $500,000.
The case is assigned to Judge Christopher M. Lopez. Debtor is
represented by Russell Van Beustring, Esq., at The Lane Law Firm,
PLLC.
No official committee of unsecured creditors has been appointed in
Debtor's Chapter 11 case.
[*] Chapter 11 Debtors Push SBA for PPP Funding
-----------------------------------------------
Michael A. Mora, reporting for Daily Business Review, reports that
Chapter 11 debtors are challenging a decision by the Small Business
Administration to exclude bankruptcy filers from joining the
Paycheck Protection Program under the CARES Act.
Jordan Holzer & Ortiz partner and Texas attorney Nathaniel Peter
Holzer, representing Hidalgo County Emergency Services Foundation,
filed a complaint in the Bankruptcy Court for Southern District of
Texas to seek preliminary injunction and temporary restraining
order against SBA. Holzer argued that this requirement doesn't
appear in the CARES Act legislation.
On April 24, 2020, the court agreed by entering a temporary
restraining order and scheduling a preliminary injunction hearing
after two weeks.
There are also other litigants who raised challenges, like five
lawyers from Ballard Spahr to represent Payday Money Centers.
According to Michael Goldberg, chairman of fraud and recovery
practice at Akerman in Fort Lauderdae, there shouldn't be an
overall rule that a company in bankruptcy can't borrow under the
CARES Act loan program. It should depend on whether the economic
shutdown resulting from the coronavirus pandemic and social
distancing restrictions caused the company to file bankruptcy, or
it has previous underlying issues prior to the pandemic.
He added, "The congressional attempt by the loan package was to
help companies devastated by COVID. If the company was already in
a poor enough shape to go into bankruptcy, it goes against the
purpose of the loan."
[*] Forbes' List of Major Companies Failing Amid Lockdowns
----------------------------------------------------------
Hank Tucker, writing for Forbes, reports that the coronavirus
pandemic has accelerated the demise of major U.S. companies that
were already in trouble as Americans stay home amid lockdowns and
economic shutdowns.
As of May 4, 2020, Forbes said these are the major companies with
at least 500 employees that have filed for bankruptcy in 2020:
* Apex Parks Group, which had to close its 12 entertainment
centers and water parks due to the pandemic, filed for a Chapter 11
reorganization on April 8.
* Art Van Furniture, a midwestern retailer with 176 locations,
filed on March 8. As the economic crisis worsened, it converted its
Chapter 11 reorganization to a Chapter 7 liquidation in early
April.
* Bar Louie, a nationwide gastropub chain, filed on January 27
after closing 38 of its locations, leaving less than 100
remaining.
* Bluestem Brands, the parent company of seven e-commerce
subsidiaries, filed on March 9.
* Borden Dairy followed competitor Dean Foods DF into
bankruptcy on January 5, aiming to reduce its debt load while
continuing normal operations.
* British rent-to-own operation BrightHouse entered
administration—the equivalent of a bankruptcy process—on March
30, immediately halting all new rent-to-own and cash loan lending
activities.
* U.K.-based Italian restaurant chain Carluccio's entered
administration on March 30, shortly after its 73 locations were
required to close.
* CMX Cinemas, a movie theater chain that also owns dine-in
restaurants and bars, filed on April 25 with all 41 of its theaters
closed nationwide during the pandemic.
* Fast casual restaurant chain Cosi filed for Chapter 11 on
February 24 for the second time since 2016 after shuttering 30 of
its locations in December.
* Restaurant franchisor CraftWorks filed on March 3 to reduce
its debt by more than $140 million shortly after closing about 10%
of its locations.
* Dean & DeLuca, a luxury grocery store chain with 42
locations until it started downsizing in recent years, filed on
April 1.
* British fashion retailer Debenhams, which employs more than
20,000 people, entered administration on April 6 for the second
time in the last year as it struggled to stay afloat with its
stores closed. It is liquidating its business in Ireland,
permanently closing its 11 stores there.
* Diamond Offshore Drilling sought bankruptcy protection on
April 27 after skipping a payment to bondholders. It had billions
of dollars of debt even before oil prices plunged in recent weeks.
* Earth Fare, a North Carolina-based organic grocery chain,
filed on February 4, a day after announcing it was closing all of
its stores and liquidating its inventory.
* South African retailer Edcon filed for business rescue on
April 29, announcing that it had lost 2 billion rand in
sales—equivalent to more than $100 million—due to coronavirus.
* Tri-state grocery chain Fairway Market filed on January 23
and announced it was selling up to five New York City stores and
its distribution center to Village Super Market for $70 million.
* British airline Flybe, one of Europe's largest regional
carriers, entered administration and grounded all flights on March
5.
* Foodora, a food delivery app that is a subsidiary of
Berlin-based Delivery Hero, filed for insolvency in Canada on April
27 and announced it's ceasing operations in the country on May 11.
* St. Louis-based coal miner Foresight Energy filed on March
10 with $1.4 billion in debt.
* Frontier Communications FTR , one of America's largest
telecom companies, filed on April 14. Its reorganization plan is
expected to reduce its sizable debt load by $10 billion.
* Gold's Gym filed on May 4 after having to close its 700
fitness centers due to coronavirus lockdowns. Thirty gyms will
remain permanently closed.
* Helios and Matheson, the parent of movie-theater
subscription service MoviePass, filed for Chapter 7 bankruptcy on
January 29. MoviePass had more than 3 million subscribers at its
peak in 2018.
* Singapore-based oil trader Hin Leong, founded by
ex-billionaire Lim Oon Kuin, filed on April 18 as the company
revealed it had $800 million in previously undisclosed losses.
* Virginia-based cloud services provider Internap filed on
March 16 to renegotiate its debt. It was delisted from the Nasdaq
the next week.
* J.Crew was the first big American retail domino to fall amid
the pandemic, filing on May 4 to convert about $1.7 billion of debt
to equity. It still plans to reopen its 181 J.Crew stores, 170
factory stores and 140 stores for its women’s clothing brand
Madewell after coronavirus-related restrictions are lifted.
* Southeast burger chain Krystal filed on January 19, citing
debts of between $50 million and $100 million.
* Commercial magazine printer LSC Communications filed on
April 13 with nearly $1 billion in debt after an antitrust lawsuit
blocked an attempted $1.4 billion sale to competitor Quad/Graphics
QUAD last year.
* Organic grocer Lucky’s Market filed on January 27 and
plans to sell most of its stores to Aldi, Publix and other winning
bidders.
* Pharmaceutical manufacturer Mallinckrodt submitted a Chapter
11 filing for its specialty generics unit on February 25 and
offered to pay a $1.6 settlement under the weight of lawsuits
related to opioid abuse.
* McClatchy, which operates 30 newspapers in 14 states, filed
on February 13, ending 163 years of family control of the business
and signaling the continuing erosion of local news.
* McDermott International, a commercial construction and
engineering company, initiated a Chapter 11 process on January 21
to eliminate $4.6 billion in debt.
* Modell's Sporting Goods, a New York institution since 1889,
filed for Chapter 11 on March 11 and announced plans to close all
153 of its stores spread throughout the northeast.
* Swedish fashion retail chain MQ filed on April 16 as sales
plunged at its physical locations while customers stayed home due
to the pandemic.
* Clothing conglomerate Nygard Entities filed for Chapter 15,
which allows foreign creditors to participate in U.S. cases, on
March 19. The company was under fire after a class-action lawsuit
filed in February levied sex-trafficking allegations against
founder Peter Nygard.
* OneWeb, a satellite internet startup backed by SoftBank that
launched 74 satellites into space, filed on March 27.
* Pier 1, a home furniture chain with close to 1,000 locations
at the beginning of the store, began a Chapter 11 reorganization on
February 17, before the weight of the pandemic even reached the
U.S. Shares were trading at more than $460 in 2013 before beginning
a steep and steady decline.
* San Antonio-based oil and gas servicer Pioneer Energy filed
on March 2, though it is continuing operations.
* Rural hospital chain Quorum Health filed a prepackaged
chapter 11 plan on April 7 to reduce its debt by $500 million.
* RavnAir, an intrastate airline in Alaska, ceased operations
and laid off all staff when it filed for bankruptcy on April 5.
* RentPath, an online search platform for rental homes, filed
on February 11 while at the same time announcing it was being
bought out of bankruptcy by competitor CoStar Group CSGP for $588
million.
* Rubie's Costume Company, the world’s largest Halloween
costume manufacturer, filed on April 30 as sales declined while its
retail customers are closed due to COVID-19.
* Canadian auto parts manufacturer Spectra Premium filed on
March 10. In a press release, the company complained that efforts
to cut supply chain costs were hampered by tariffs the U.S. imposed
on China.
* Speedcast International, a satellite internet company that
provides connectivity to the embattled cruise industry when ships
are out at sea and serves 80% of cruise brands globally, filed on
April 23.
* True Religion, a designer jeans retailer with locations of
its own in 26 states and a presence in other major department
stores, filed on April 13 for the second time in less than three
years.
* Virgin Australia, one of Australia's largest airlines
co-founded by billionaire Richard Branson, filed on April 21 after
the Australian government denied the company’s pleas for a
bailout.
* Whiting Petroleum filed on April 1, though it said it would
continue to operate its business. Shares of the publicly-traded
shale driller dipped below $1 in March after trading at more than
$150 in 2015.
[*] Neiman, JC Penney Could Join Top 20 Retail Bankruptcies
-----------------------------------------------------------
Warren Shouberg, reporting for Forbes, reports J.C. Penney Co. and
Neiman Marcus Group could end up in bankruptcy due to unprecedented
circumstances of the Covid-19 pandemic. If they file, they will
join a list of iconic retail names that have succumbed to bad times
or bad management -- or both.
According to Forbes, here are the 20 biggest retail bankruptcies
ranked by assets (in the currency value at the time of the filing)
and their ultimate outcome:
Year Assets
Debtor Filed (billion) Outcome
------ ----- --------- -------
1. Kmart 2002 $14.0 Remains in business
2. Campeau 1990 $11.4 Remains in business (Macy's
M)
3. Sears Holdings 2018 $6.9 Remains in business
4. Toys "R" Us 2017 $6.9 Liquidated
5. Macy's 1992 $4.94 Remains in business
6. Montgomery Ward 1997 $4.9 Remained in business
7. Circuit City 2008 $3.75 Liquidated
8. Montgomery Ward 2000 $3.5 Liquidated
9. Carter Hawley Hale 1991 $2.1 Remains in business (Macy's)
10 Ames Dept. Stores 2001 $2.0 Liquidated
11 Spiegel 2003 $1.9 Liquidated
12 Revco 1988 $1.8 Liquidated
13 Zale 1992 $1.8 Remains in business
14 Linens 'N Things 2008 $1.74 Liquidated
15 A&P 2015 $1.6 Liquidated
16 Radio Shack 2015 $1.59 Liquidated
17 Bon-Ton 2018 $1.59 Liquidated
18 Blockbuster 2010 $1.54 Liquidated
19 Borders 2011 $1.42 Liquidated
20 Sports Authority 2016 $1.0 Liquidated
[*] S&P Alters Outlook on Non-Profit Higher Education Institutions
------------------------------------------------------------------
S&P Global Ratings revised the outlooks to negative from stable and
affirmed its ratings on certain U.S. not-for-profit colleges and
universities (including all related entities), due to the
heightened risks associated with the financial toll caused by the
COVID-19 pandemic and related recession. For the same reasons, S&P
Global Ratings revised the outlooks to stable from positive and
affirmed the ratings on certain other U.S. not-for-profit higher
education institutions.
S&P said, "The public and private colleges and universities
affected by these actions include primarily those with lower
ratings ('BBB' rating category and below), but also those entities
that, in our opinion, have less holistic flexibility (from both a
market position and financial standpoint) at their current rating
level. and operating expenses, was the primary metric assessed, an
Although liquidity, as measured by available resources compared to
debt institution's overall credit profile, including draw,
selectivity, matriculation rates, operating margins, and revenue
diversity, was also considered. For public institutions, reliance
on state operating appropriations and expectations around future
funding levels was also an important part of our assessment."
"A negative outlook reflects our view that there is at least a
one-in-three chance that operating and economic conditions will
worsen to a degree that affects the ability of the college or
university to maintain credit characteristics in line with the
current rating level."
"We will review all ratings individually to assess the degree to
which each is affected by COVID-19 and the related recession, and
assess underlying financial performance. However, on a case-by-case
basis, if credit metrics are upheld and economic activity resumes
at a pace greater than currently expected, we could revise the
negative outlook to stable on specific ratings during the outlook
period."
All Rated Higher Education Institutions Face COVID-19-Related
Credit Pressures
U.S. higher education providers are under pressure, and if
on-campus classes can't be resumed in fall 2020, could be under
greater pressure.
S&P said, "While S&P Global Ratings' outlook on the U.S.
not-for-profit higher education sector has been negative for three
consecutive years now, we believe that the COVID-19 pandemic and
related economic and financial impacts exacerbate pressures already
facing colleges and universities. The financial impact on
institutions from the loss of auxiliary revenue from housing and
dining fees, and parking fees; as well as revenues from athletics,
theater, and other events, is material for many. For schools with
health care systems, lost revenue from cancelled elective surgical
procedures could also be significant. The recently passed CARES Act
will provide some budgetary relief to higher education
institutions; however, despite this aid, we expect to see stressed
operating budgets, the scope of which will ultimately be determined
by the magnitude of lost revenues, the duration of the pandemic,
fall 2020 mode of instruction, and ultimate enrollment figures."
Colleges and universities have reacted rapidly to the challenges
presented by the pandemic. They have moved classes online to adhere
to social-distancing rules, adjusted admission policies to
accommodate disruptions to high school exams, and suspended
academic conferences and travel. At the same time, many have
implemented material expense cuts, including deferring capital
expenditures, and imposing furloughs and layoffs, in some cases,
with plans to continue to ramp up cost containment under various
fall scenarios. Many colleges and universities have disclosed
estimates of 2020 budget shortfalls, despite the inclusion of CARES
stimulus funds.
S&P said, "We expect that the colleges and universities we rate
will face an unprecedented level of operating stress and tightened
liquidity, which will worsen the longer and deeper the pandemic
lasts. For fiscal 2020, and likely fiscal 2021, we believe margins
will be further compressed and will be negative at some
institutions, potentially weighing on their financial performance
assessments. In our view, the credit pressures colleges and
universities face will grow the longer campuses remain largely
virtual or are governed by social-distancing rules."
S&P said, "Many of the colleges and universities that we rate have
some headroom to absorb the impacts associated with COVID-19 at
their current credit ratings, as they have built up reserves over
recent years, hold solid balance sheets, and have relatively low
debt levels. However, colleges and universities will face increased
downward pressure on their current ratings depending on the extent
to which economic disruptions associated with COVID-19 persist. If
global travel restrictions are prolonged, or the imminent recession
diminishes foreign students' financial means, then some could opt
to study or work in their home countries instead. In our opinion, a
fall 2020 with significantly fewer international students, as well
as lower domestic enrollments overall, will cause serious
operational pressures. At the same time, most U.S. colleges and
universities depend on endowments and fundraising for a significant
portion of revenues, and declining investment performance and
endowment market values along with weaker fundraising results could
negatively affect credit metrics during the outlook period. We
assess a college or university's balance sheet strength using a
measure of unrestricted financial resources, which excludes
financial assets that aren't available for debt service because
they are restricted for various reasons, and compare available
resources (expendable resources for private institutions and
adjusted unrestricted net assets for public institutions) to
operating expenses and total debt outstanding. If these ratios fall
significantly, we could lower our assessments of universities'
financial resources and debt and contingent liabilities. We believe
there will be greater pressure on those schools with limited
revenue and expense flexibility, lack of liquidity or balance sheet
cushion, and weaker fundraising capabilities."
As described in "An Already Historic U.S. Downturn Now Looks Even
Worse," published April 16, 2020, the recession's trajectory is
much deeper and faster than previously anticipated. S&P Global
Economics now projects that U.S. GDP will contract by 5.3% in 2020.
Although S&P expects the economy will begin to recover in the
second half of 2020, it anticipates that the recovery will be
gradual and will be constrained by some form of continued social
distancing as fears persist over the continued spread of COVID-19.
Importantly, if COVID-19's effect on university revenues is
transitory and offset by prudent management of expenditures and
liquidity, these colleges and universities' financial profile
assessments might not come under downward pressure. In addition,
students who are partially through academic courses have a strong
motivation to return once campuses reopen. This means revenues are
deferred rather than lost forever. If, on the other hand, the
duration of virtual teaching extends into 2021, S&P expects the
financial damage will be more severe and the pressure on credit
ratings will grow.
Outlook Revisions To Negative
The outlook revisions to negative on these college and university
ratings reflect our belief that these issuers have less flexibility
at their current rating level, and are more susceptible to
financial stress that could result in lower ratings over the
outlook period because they have limited financial cushion to
absorb an economic crisis such as the one we are experiencing at
their current rating level. In many cases, issuers with these
characteristics also have more limited market positions compared
with those of peers at their current rating level. The negative
outlook on these ratings reflects intensifying pressure on the
institutions' financial performance and liquidity, driven by lost
revenue streams as well as the current and forecast economic
conditions.
Several of our public and private college and university ratings
have multiple bond securities, or have associated entities, with
ratings that are directly linked to, and thus also affected by this
outlook revision to the related institution.
For public institutions, while almost all major revenue sources
described above are under pressure, we also expect that most states
will make cuts to higher education funding. While public colleges
and universities have benefited from annual increases in state
operating appropriations for several years now, funding for higher
education still remains below pre-recession levels in certain
states, and some schools are still coping with the lingering
effects of funding cuts on their finances. While the impact from
the pandemic and the current recession will vary greatly by state,
for some schools, it could mean significant reductions in state
funding. Even though the majority of public universities rely on
net tuition revenue for a greater percentage of their overall
budget than state funds, these state appropriations still make up a
considerable portion of schools' operating budgets, and strain on
these resources can have major negative impacts. Many states are
facing a structural gap in fiscal 2020, and while a few have
already withheld funds from higher education institutions for the
remainder of the fiscal year (including New Jersey and Missouri),
we believe the risk of state funding cuts and delays is much
greater in fiscal 2021. While decreases in state operating
appropriations will range in magnitude, we will continue to monitor
state revenue projections and budgets, and any possible adjustments
to state funding levels, on a state-by-state basis. As more details
become available on state budgets, we could take further action on
other public institutions that are not part of this outlook
revision.
Outlook Revisions To Stable
S&P said, "As of Dec. 31, 2019, only 3.2% of our rated colleges and
universities carried positive outlooks--with this action, all have
been revised to stable. The outlook revisions to stable from
positive reflect our view that previous upward momentum will likely
be stunted by the broad financial challenges facing these colleges
and universities due to the pandemic and recession. While we no
longer think a higher rating is likely during the outlook period,
we still consider these organizations' ratings stable at this
time."
Issuer-Specific Reviews Will Be Conducted
S&P said, "These outlook revisions reflect our view that the risks
posed by COVID-19 to public health and safety, which we view as a
social risk under our environmental, social, and governance (ESG)
factors, could continue to pressure individual college and
university enterprise and financial profiles over the near term. In
our opinion, the uncertainty about the timing and duration of
social-distancing directives across the country to protect the
health and safety of individuals from the community spread of
COVID-19 adds unprecedented lack of clarity to enrollment levels
for fall 2020 as well as mode of instruction, both of which will
affect tuition revenues."
"We intend to review all ratings individually to assess underlying
financial performance as well as the degree to which each is
affected by COVID-19-related events, including the recession. This
will include a case-by-case analysis of management's efforts to
offset revenue declines, and in certain cases where applicable, the
ability to bridge cash flow imbalances caused by the pandemic and
recession."
"A negative outlook is not necessarily a precursor to a rating
change, so we believe it is possible that we could revise some
outlooks to stable from negative as we assess risk mitigation;
however, we could also lower ratings during the outlook period."
S&P Global Ratings had 436 public ratings on U.S. private (287) and
public (149) colleges and universities, which are secured by a
general obligation or the equivalent.
S&P said, "Our U.S. higher education ratings range from 'AAA' to
'CC', with approximately 41% of our ratings in the 'A' category,
and 31% rated 'BBB+' or below. Approximately 8% of our rated
universe is in the speculative-grade category. Both the lower
investment-grade ('BBB') rating category and non-investment grade
categories ('BB+' and below) have grown over the past few years, as
more regional institutions have been increasingly challenged by
enrollment and operating pressures."
As of Dec. 31, 2019, only 9.2% of S&P rated higher education
institutions carried negative outlooks. Year to date and inclusive
of these outlook revisions today, that percentage has risen to
38%.
Certain Not-For-Profit Higher Education Institutions Excluded From
These Outlook Revisions
S&P has excluded from this rating action 50 not-for-profit colleges
and universities that already carry a negative outlook prior to
this event-driven outlook revision.
During the next few months, as S&P has more visibility on the mode
of instruction for fall, and what enrollments look like, it will
continue to evaluate the remainder of its portfolio and may take
further actions on specific issuers or groups of issuers as more
details become available.
A list of Affected Ratings can be viewed at:
https://bit.ly/35mHCsl
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Spain to Maine Hauling, LLC
Bankr. N.D. Miss. Case No. 20-11673
Chapter 11 Petition filed April 29, 2020
See https://is.gd/FqTrXS
represented by: James F. Valley, Esq.
J F VALLEY ESQ PA
E-mail: james@jamesfvalley.com
In re Cielo Vista Hospitality, LLC
Bankr. D.N.M. Case No. 20-10877
Chapter 11 Petition filed April 29, 2020
See https://is.gd/Te9inc
represented by: Michael K. Daniels, Esq.
MICHAEL K. DANIELS
In re Joseph Episcopo, III
Bankr. D.N.J. Case No. 20-15956
Chapter 11 Petition filed April 29, 2020
represented by: Milica A. Fatovich, Esq.
In re Dean Episcopo
Bankr. D.N.J. Case No. 20-15961
Chapter 11 Petition filed April 29, 2020
represented by: Milica A. Fatovich, Esq.
In re Maria L. Radwanski and David R. Radwanski
Bankr. E.D. Pa. Case No. 20-12159
Chapter 11 Petition filed April 29, 2020
represented by: John A. Digiamberardino, Esq.
In re Shui Yee Lee
Bankr. D.N.J. Case No. 20-15987
Chapter 11 Petition filed April 29, 2020
represented by: Christopher J. Reilly, Esq.
KLESTADT WINTERS JURELLER SOUTHARD &
STEVENS, LLP
In re Gateway Hospitality, LLC
Bankr. D.N.M. Case No. 20-10879
Chapter 11 Petition filed April 29, 2020
represented by: Michael K. Daniels, Esq.
In re Yarbrough Hospitality, LLC
Bankr. D.N.M. Case No. 20-10881
Chapter 11 Petition filed April 29, 2020
represented by: Michael K. Daniels, Esq.
In re 3301 HO, LLC
Bankr. N.D. Tex. Case No. 20-41586
Chapter 11 Petition filed April 30, 2020
See https://is.gd/TKUv1a
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re AAA Investment Group
Bankr. S.D. Fla. Case No. 20-14953
Chapter 11 Petition filed April 30, 2020
See https://is.gd/qVZdDP
represented by: Robert A. Stok, Esq.
STOK KON + BRAVEMAN
E-mail: rstok@stoklaw.com;
mbonner@stoklaw.com
In re Endeavor Consultants, LLC
Bankr. W.D. Wash. Case No. 20-41168
Chapter 11 Petition filed April 30, 2020
See https://is.gd/1tmRTh
represented by: John A. Sterbick, Esq.
STERBICK & ASSOCIATES, P.S
E-mail: jsterbick@sterbick.com;
LoreleiW@sterbick.com
In re Bronx City Service Auto Repair, Inc.
Bankr. S.D.N.Y. Case No. 20-11090
Chapter 11 Petition filed May 1, 2020
See https://is.gd/VHPv9G
represented by: Carlos J. Cuevas, Esq.
CARLOS J. CUEVAS, ESQ.
E-mail: ccuevas576@aol.com
In re Steps in Home Care, Inc.
Bankr. S.D.N.Y. Case No. 20-22615
Chapter 11 Petition filed May 1, 2020
See https://is.gd/s0jDL6
represented by: Lawrence F. Morrison, Esq.
MORRISON TENENBAUM, PLLC
E-mail: info@m-t-law.com
In re Penland Heating and Air Conditioning, Inc.
Bankr. E.D.N.C. Case No. 20-01795
Chapter 11 Petition filed May 1, 2020
See https://is.gd/gtuuc9
represented by: Clayton W. Cheek, Esq
THE LAW OFFICES OF OLIVER & CHEEK, PLLC
E-mail: clayton@olivercheek.com
In re Richard Carl Parisien
Bankr. D.N.D. Case No. 20-30258
Chapter 11 Petition filed April 30, 2020
represented by: James Lester, Esq.
In re Robert Dial Sparks
Bankr. N.D. Tex. Case No. 20-50079
Chapter 11 Petition filed May 1, 2020
represented by: Byrn R. Bass, Jr., Esq.
In re Kristen Marie Miller
Bankr. S.D. Tex. Case No. 20-32419
Chapter 11 Petition filed May 1, 2020
represented by: Jayson Ruff, Esq.
In re Anne Marie Catambay
Bankr. N.D. Cal. Case No. 20-30371
Chapter 11 Petition filed April 30, 2020
represented by: Brent Meyer, Esq.
In re TravelExperience LLC
Bankr. D.N.J. Case No. 20-16195
Chapter 11 Petition filed May 4, 2020
See https://is.gd/91L1hh
represented by: Andy Winchell, Esq.
LAW OFFICES OF ANDY WINCHELL
E-mail: andy@winchlaw.com
In re Wealyn, LLC
Bankr. D. Mass. Case No. 20-40525
Chapter 11 Petition filed May 4, 2020
See https://is.gd/oT3Nb3
represented by: D. Ethan Jeffery, Esq.
MURPHY & KING, PROFESSIONAL CORPORATION
E-mail: ejeffery@murphyking.com
In re Aly Eatery, Inc.
Bankr. D. Nev. Case No. 20-50471
Chapter 11 Petition filed May 4, 2020
See https://is.gd/QsGdhf
represented by: Kevin A. Darby, Esq.
DARBY LAW PRACTICE
E-mail: kevin@darbylawpractice.com
In re Mount Morris Mobile Home Park, LLC
Bankr. E.D. Mich. Case No. 20-30939
Chapter 11 Petition filed May 3, 2020
See https://is.gd/UWcj8X
represented by: Peter T. Mooney, Esq.
SIMEN, FIGURA & PARKER, PLC
E-mail: pmooney@sfplaw.com
In re Sally Wolf Grinnell
Bankr. W.D. Tex. Case No. 20-50872
Chapter 11 Petition filed May 4, 2020
represented by: Eric Terry, Esq.
In re Beverlee Kay Bohn
Bankr. M.D. Tenn. Case No. 20-02401
Chapter 11 Petition filed May 4, 2020
represented by: LEFKOVITZ AND LEFKOVITZ, PLLC
In re Gregory Micek
Bankr. S.D. Tex. Case No. 20-32441
Chapter 11 Petition filed May 4, 2020
represented by: Reese Baker, Esq.
In re William Edgar Bitters
Bankr. D.S.D. Case No. 20-40150
Chapter 11 Petition filed May 4, 2020
represented by: Clair Gerry, Esq.
In re Richard Lance Deal
Bankr. W.D. Tex. Case No. 20-60319
Chapter 11 Petition filed May 4, 2020
In re Michael Anthony Pena
Bankr. E.D. Cal. Case No. 20-11606
Chapter 11 Petition filed May 4, 2020
In re Golden Jubilee Inc.
Bankr. N.D. Tex. Case No. 20-41656
Chapter 11 Petition filed May 4, 2020
See https://is.gd/Efeh81
represented by: Kerry Lee Prisock, Esq.
LAW OFFICE OF KERRY LEE PRISOCK
E-mail: kprisocklegal@sbcglobal.net
In re Capvest Development LLC
Bankr. C.D. Calif. Case No. 20-14195
Chapter 11 Petition filed May 5, 2020
See https://is.gd/CLGapF
represented by: Robert S. Altagen, Esq.
LAW OFFICES OF ROBERT S. ALTAGEN APC
E-mail: robertaltagen@altagenlaw.com
In re Dean Jones Farms, Inc.
Bankr. E.D.N.C. Case No. 20-01829
Chapter 11 Petition filed May 5, 2020
See https://is.gd/WWRL6H
represented by: Jonathan E. Friesen, Esq.
GILLESPIE & MURPHY PA
E-mail: gmpa@lawyersforchrist.com
In re Lamil Diesel Services, LLC
Bankr. N.D. Tex. Case No. 20-31364
Chapter 11 Petition filed May 5, 2020
See https://is.gd/iWfolz
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
*********
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
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The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***