/raid1/www/Hosts/bankrupt/TCR_Public/200519.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, May 19, 2020, Vol. 24, No. 139
Headlines
131 MANHATTAN DELI: Seeks to Hire M.W. Expediting as Expeditor
267 SAW MILL: Seeks to Hire Hass & Gottlieb as Special Counsel
657-665 5TH AVENUE: Portfolio Acquisition Proposes Liquidating Plan
A.S. & C.B. GOULD: Seeks to Hire Austin Associates as Accountant
AES CORP: Moody's Affirms Ba1 CFR & Ba1 Sr. Unsec. Debt Rating
ALAN CASSIDY: $360K Sale of Naples Property to McMullens Approved
ALGOMA STEEL: Moody's Cuts CFR & Senior Secured Rating to Caa2
ALPHABET HOLDING: Moody's Alters Outlook on B3 CFR to Stable
AMERICAN WORKERS: Taps John Tittle of Harris & Dickey as CRO
ASTROTECH CORP: Incurs $2.07 Million Net Loss in Third Quarter
AVADEL SPECIALTY: Hires Baker & McKenzie as Co-Counsel
AVINGER INC: Posts $6.8 Million Net Loss in First Quarter
AYTU BIOSCIENCE: Incurs $5.33 Million Net Loss in Third Quarter
BALDWIN PATTIE: Seeks to Hire H & S Companies as Accountant
BIOPHARMX CORP: Stockholders Approve Merger with Timber
BIOPHARMX CORP: Will Effect a 1-for-12 Reverse Stock Split
BLACKRIDGE RESEARCH: Hires Harris Law as Bankruptcy Counsel
BOYD GAMING: S&P Downgrades ICR to 'B' on Elevated Leverage
BOYNE USA: S&P Alters Outlook to Negative, Affirms 'B' ICR
BRIGHT MOUNTAIN: Delays Filing of Quarterly Report Over COVID-19
BRIGHT MOUNTAIN: Incurs $3.40 Million Net Loss in 2019
BRINK'S CO: S&P Cuts ICR to 'BB' on Delayed Deleveraging
CAREVIEW COMMUNICATIONS: Incurs $2.9M Net Loss in First Quarter
CBL & ASSOCIATES: Fitch Affirms 'CC' IDR, Then Withdraws Ratings
CENTRIC BRANDS: Case Summary & 30 Largest Unsecured Creditors
CHINOS HOLDINGS: U.S. Trustee Appoints Creditors' Committee
CITRUS HOMES: June 11 Plan Confirmation Hearing Set
CLARIOS GLOBAL: S&P Rates New $500MM Senior Secured Notes 'B'
CMS ENERGY: Fitch Rates Junior Subordinated Notes Due 2050 'BB+'
COCRYSTAL PHARMA: Incurs $2 Million Net Loss in First Quarter
COMCAR INDUSTRIES: Case Summary & 30 Largest Unsecured Creditors
COMMERCIAL VEHICLE: Moody's Confirms B2 CFR & Sr. Sec. Debt Rating
COMMUNITY HEALTH: All Four Proposals Approved at Annual Meeting
COMPASS BEER: Case Summary & 11 Unsecured Creditors
COOPER TIRE: S&P Lowers ICR to 'BB-'; Outlook Stable
CORNELL ST HEMPSTEAD: Seeks to Hire Hasbani & Light as Counsel
DALI LOU RANCH: $1.42M Sale of Sun Valley Suit to Evans Approved
DEAN & DELUCA: Seeks to Hire Stretto as Administrative Advisor
DURA AUTOMOTIVE: Needs More Time to Finalize Sale, File Plan
FIRST CLASS: $65K Sale of Assets to Colonial Denied w/o Prejudice
FORUM ENERGY: Moody's Cuts CFR to Ca & Sr. Unsec. Debt Rating to C
FRANK & LUPE II: U.S. Trustee Unable to Appoint Committee
FTE NETWORKS: Incurs $46.6 Million Net Loss in 2018
GAUCHO GROUP: Obtains $242K PPP Loan from Santander Bank
GB SCIENCES: Gets Notice of Allowance for Claims Protecting MCCMs
GENWORTH HOLDINGS: Moody's Cuts Senior Unsecured Debt Rating to B3
GLENNS CLEANING: Hires Buechlein and Associates as Accountant
GOODRICH QUALITY: Committee Hires Pachulski Stang as Counsel
GOODRICH QUALITY: Committee Taps Dundon as Financial Advisor
GOODRICH QUALITY: Committee Taps Frost Brown as Co-Counsel
GOODYEAR TIRE: S&P Rates Senior Unsecured Notes 'B+'
GT REALTY: $950K Sale of Freeport Property to 501 Atlantic Approved
GYPSUM RESOURCES: Hires Cushman & Wakefield as Real Estate Broker
HARROGATE INC: Fitch Cuts Rating on $8.4MM 1997 Bonds to 'BB-'
HIGH RIDGE: Exclusive Plan Filing Period Extended to July 15
HUB INTERNATIONAL: S&P Rates $350MM Senior Unsecured Debt 'CCC+'
INDEANOMICS INC: Incurs $12.6 Million Net Loss in First Quarter
INLAND OASIS: Trustee Hires Stick A Fork as Broker
INSPIREMD INC: Posts $1.98 Million Net Loss in First Quarter
INTERNAP TECHNOLOGY: Taps Bank Street Group as Financial Advisor
INTERSTELLAR DISRUPTION: Case Summary & 20 Top Unsecured Creditors
IRON MOUNTAIN: S&P Alters Outlook to Negative, Affirms 'BB-' Rating
ISRS REALTY: Auction Sale of All Properties Set
J.D. BEAVERS: Unsecured Creditors to Have 15% Recovery under Plan
JAGUAR HEALTH: Reports $8.4 Million Net Loss for First Quarter
JAMES HARDIE: S&P Alters Outlook to Negative, Affirms 'BB' ICR
JB AND COMPANY: June 2 Plan & Disclosure Hearing Set
JONATHAN R. SORELLE: Taps Nicholas Rubin of Force Ten as CRO
JPW INDUSTRIES: Moody's Cuts CFR & Sr. Secured Rating to Caa1
KDJJ ENTERPRISES: U.S. Trustee Unable to Appoint Committee
KIM DOLLEH: Seeks to Hire Falcone Law as Counsel
LATEX FOAM: June 5 Auction of All Assets Set
LIVE NATION: S&P Cuts ICR to 'B+'; Outlook Negative
LSC COMMUNICATIONS: Hires AlixPartners as Financial Advisor
LSC COMMUNICATIONS: Hires Evercore Group as Investment Banker
LSC COMMUNICATIONS: Hires Prime Clerk LLC as Administrative Advisor
LSC COMMUNICATIONS: Seeks to Hire Sullivan & Cromwell as Counsel
MANCHESTER HOUSING: Moody's Alters Outlook on 2000 Bonds to Neg.
MARUTI REALSTATE: Case Summary & 4 Unsecured Creditors
MARVIN RANKIN: $600K Sale of Huntsville Property to Stonehenge OK'd
MCCLATCHY CO: July 8 Auction of All Assets Set
MERITAGE HOMES: Fitch Affirms BB LongTerm IDR, Outlook Positive
MISSION RECREATION: Hires Douglas A. Sutton as Accountant
MORAN FOODS: S&P Upgrades ICR to 'B-'; Outlook Negative
MOUNTAIN STATES ROSEN: Committee Hires Tucker Ellis as Counsel
MOUNTAIN STATES ROSEN: Committee Taps Patton & Davison as Counsel
MTE HOLDINGS: Seeks to Hire Mr. Davido of Ankura as CRO
NAVIENT CORP: S&P Alters Outlook to Neg., Affirms Long-Term BB- ICR
NEONODE INC: Incurs $1.29 Million Net Loss in First Quarter
NICHOLS EXECUTIVE: Has Until May 22 to File Plan & Disclosures
NORTHWEST FIBER: Moody's Rates $250MM Sr. Unsecured Notes 'Caa1'
NORTHWEST FIBER: S&P Assigns 'B-' ICR; Outlook Stable
OBITX INC: Robert Adams Elected to Board
OBITX INC: Signs $1.9-Mil. Deal to Sell its Social Media Platform
OUTERSTUFF LLC: S&P Lowers ICR to 'SD' on Missed Payment
OUTFRONT MEDIA: S&P Rates New $400MM Senior Unsecured Notes 'B+'
OVERSEAS SHIPHOLDING: Moody's Withdraws B3 Corp. Family Rating
PARADIGM TELECOM: June 23 Plan Confirmation Hearing Set
PARK-OHIO INDUSTRIES: Moody's Lowers CFR to B2, Outlook Stable
PINNACLE REGIONAL: Trustee's $1.6M Sale of Florissant Property OK'd
PINNACLE REGIONAL: Trustee's $1.75M Sale of Bates Property Approved
PRIMESOURCE INCORPORATED: Hires Wendy Weissman as Accountant
QUORUM HEALTH: Opposes Bid to Appoint Equity Committee
R&F GROUP: June 3 Hearing on Property Sale Set
RAVN AIR GROUP: Hires Sage-Popovich as Liquidation Advisor
RIO PROPERTY: U.S. Trustee Unable to Appoint Committee
ROCHESTER DRUG: Hires Epiq Corporate as Administrative Advisor
RONALD GOODWIN: Request to Sell Wichita Property for $1M Defective
SAN JOAQUIN AIDS: Voluntary Chapter 11 Case Summary
SCOOBEEZ INC: July 9 Plan Confirmation Hearing Set
SIGNATURE PACK: Sale of Metal Detector to Visionary Foods Approved
SINTX TECHNOLOGIES: Reports $8.1M Net Loss for First Quarter
SOUTHLAND ROYALTY: May 22 Auction of San Juan Basin Assets Set
STEM HOLDINGS: Incurs $4.77 Million Net Loss in Second Quarter
TAMKO BUILDING: S&P Affirms 'BB-' ICR; Outlook Negative
TARWATER REAL: Seeks to Hire Michael Familetti as Counsel
TONY'S FAMOUS: Aug. 12 Plan & Disclosures Hearing Set
TOOJAY'S MANAGEMENT: Hires Berger Singerman as Counsel
TRI-STATE ROOFING: Seeks to Hire John & John as Accountant
UBER TECHNOLOGIES: S&P Rates New Unsecured Notes 'CCC+'
ULTRA RESOURCES: Moody's Cuts PDR to D-PD on Chapter 11 Filing
WALDEN PALMS: June 22 Plan & Disclosure Hearing Set
WEST FLORIDA: June 11 Plan Confirmation Hearing Set
XPERI HOLDING: S&P Assigns 'BB-' ICR on Debt Issuance
[^] Large Companies with Insolvent Balance Sheet
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131 MANHATTAN DELI: Seeks to Hire M.W. Expediting as Expeditor
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131 Manhattan Deli Grocery Corp. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire M.W.
Expediting Inc. as its expeditor.
M.W. Expediting will facilitate the resolution of OATH/ECB
violations that have been assessed on the Business location.
MW anticipated that its billing rate will remain constant during
the pendency of this bankruptcy case for the services rendered. A
fee of approximately $2,700 will be needed for the services.
MW does not hold or represent an adverse interest to the estate,
and is a disinterested person, as that term is defined in 11 U.S.C.
Sec. 101(14).
The firm can be reached through:
Moshe Weinberg
M.W. Expediting, Inc.
36 Krieger Blvd
Woodridge, NY 12789
Phone: 347-757-0707
Email: Mosheweiberg7@gmail.com
About 131 Manhattan Deli Grocery Corp.
131 Manhattan Deli Grocery Corp. is a retail food store, which
specializes in a vast array of sandwiches, salads, organic
products, vegetarian and vegan products.
Based in Brooklyn, N.Y., 131 Manhattan Deli Grocery Corp. filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 19-47702) on Dec. 24, 2019, listing
under $1 million in both assets and liabilities. Judge Nancy
Hershey Lord oversees the case. Phillip Mahony, Esq., is the
Debtor's legal counsel.
267 SAW MILL: Seeks to Hire Hass & Gottlieb as Special Counsel
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267 Saw Mill LLC seeks authority from the United States Bankruptcy
Court for the Southern District of New York to hire Lawrence M.
Gottlieb, Esq. of Hass & Gottlieb to act as its special real estate
counsel with respect to the sale of the premises at 267 Saw Mill
River Road, Elmsford, NY 10523.
Hass & Gottlieb proposes to bill the Debtor at its customary hourly
rate of $500 per hour, and estimates the legal fee to fall in the
range of $7,500 to $10,000.
Hass & Gottlieb does not represent any interest adverse to the
interest of the Debtor or its estate in the retention upon which it
is to be engaged, according to court filings.
The firm can be reached through:
Lawrence M. Gottlieb, Esq.
Hass & Gottlieb
670 Post Rd
Scarsdale, NY 10583
Phone: +1 914-725-2600
About 267 Saw Mill LLC
267 Saw Mill LLC is a Single Asset Real Estate debtor (as defined
in 11 U.S.C. Section 101(51B). It owns in fee simple a property
located at 267 Saw Mill River Road, Elmsford, NY 10523 valued by
the company at $2.5 million.
267 Saw Mill LLC filed its voluntary petition under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 20-22281) on Feb. 20,
2020. In the petition signed by John Posimato, managing member, the
Debtor estimated $2,500,000 in assets and $3,700,000 in
liabilities. Anne Penachio, Esq. and PENACHIO MALARA, LLP, serves
as the Debtor's counsel.
657-665 5TH AVENUE: Portfolio Acquisition Proposes Liquidating Plan
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Portfolio Acquisition 4 2017, LLC, a senior secured creditor in the
Chapter 11 case, filed with the U.S. Bankruptcy Court for the
Eastern District of New York, Brooklyn, a Disclosure Statement
which relates to the Plan of Liquidation for debtor 657-665 5th
Avenue, LLC, dated May 1, 2020.
The fundamental premise underlying the Plan is the determination by
the Plan Proponent that maximum recoverable value, and the creation
of the funds required to make the Distributions provided for under
the Plan at the earliest possible time, can best be achieved for
the benefit of Holders of Allowed Claims through a prompt and
orderly implementation of a marketing process by which the
Mortgaged Property is sold after reasonable exposure to the
marketplace.
The Plan further provides that if the Stalking Horse Agreement is
determined to be the highest and/or best offer for the Mortgaged
Property in accordance with the Mortgaged Property Sale Procedures,
on the Effective Date, or as soon thereafter as may be practicable,
and in full settlement and satisfaction of the Allowed Class 1
Secured Claim, the fee title interest in the Mortgaged Property
shall be sold, transferred, conveyed and assigned to the Stalking
Horse Purchaser, with any such sale, transfer, conveyance and
assignment: (a) being subject to (i) the Prepetition Mortgage and
(ii) any existing rights of parties arising under the Loft Law, and
(b) otherwise being free and clear of any and all other existing
Liens, Claims, encumbrances and interests of whatever kind or
nature.
The Plan alternatively provides that in the event following
implementation of the Mortgaged Property Sale Procedures an Asset
Sale Transaction with a Purchaser other than the Stalking Horse
Purchaser is determined to be the highest and/or best offer for the
Mortgaged Property, on the Effective Date, or as soon thereafter as
may be practicable, the Plan Administrator shall (1) sell,
transfer, convey and assign the Mortgaged Property to the
successful Purchaser, with such sale, transfer, conveyance and
assignment: being free and clear of any and all other existing
Liens, Claims, encumbrances and interests of whatever kind or
nature, excluding only those existing rights of parties arising
under the Loft Law, and (2) pay the Holder of the Class 1 Allowed
Secured Claim Mortgaged Property Sale Proceeds, in Cash, in an
amount equal to the Allowed Class 1 Secured Claim.
Each Holder of an Class 4 Allowed General Unsecured Claim shall
receive in full and final satisfaction, compromise, settlement,
release, and discharge of each such Allowed Claim: (a) its Pro Rata
Share of net distributable Mortgaged Property Sale Proceeds after
the payment in full of the Allowed Class 1 Secured Claim, any
residual Allowed Priority Tax Claims, and any residual Allowed
Priority Claims, plus (b) its Pro Rata Share of net distributable
proceeds realized by the Plan Administrator from the prosecution
and/or settlement of any Causes of Action and/or Avoidance
Actions.
The Plan Proponent estimate that as of the Effective Date the
aggregate amount of Allowed Class 4 General Unsecured Claims will
be approximately $5,175,000.00.
Class 5 - Interests. On the Effective Date: (1) any certificate,
share, note, bond, indenture, purchase right, or other instrument
or document, directly or indirectly evidencing or creating any
indebtedness or obligation of or ownership interest, equity, or
portfolio interest in the Debtor or any warrants, options, or other
securities exercisable or exchangeable for, or convertible into,
debt, equity, ownership, or profits interests in the Debtor giving
rise to any Claim or Interest shall be canceled and deemed
surrendered as to the Debtor and shall not have any continuing
obligations thereunder; and (2) the obligations of the Debtor
pursuant, relating, or pertaining to any agreements, indentures,
certificates of designation, bylaws, or certificates or articles of
incorporation or similar documents governing shares, certificates,
notes, bonds, indenture, purchase rights, options, warrants, or
other instruments or documents evidencing or creating any
indebtedness or obligation of the Debtor shall be fully released,
settled, and compromised.
A full-text copy of the Disclosure Statement dated May 1, 2020, is
available at https://tinyurl.com/ya6znyt9 from PacerMonitor at no
charge.
Attorneys for the Plan Proponent:
RIEMER & BRAUNSTEIN LLP
Jeffrey D. Ganz, Esq.
Steven E. Fox, Esq.
Times Square Tower
Seven Times Square, Suite 206
New York, New York 10036
Tel: (212) 789-3100
About 657-665 5th Avenue
657-665 5th Avenue LLC, a privately held company engaged in
activities related to real estate, sought protection under Chapter
11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 19-45884) on
Sept. 26, 2019. At the time of the filing, the Debtor was
estimated to have assets of between $10 million and $50 million and
liabilities of the same range. The case is assigned to Judge Carla
E. Craig. Nutovic & Associates is the Debtor's counsel.
A.S. & C.B. GOULD: Seeks to Hire Austin Associates as Accountant
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A.S. & C.B. Gould & Sons, Inc. seeks authority from the United
States Bankruptcy Court for the District of Maine to employ Austin
Associates, P.A. as its accountant.
Austin Associates will serve as the accountant for the Debtor for
the purposes of preparing the state and federal income tax filings
of the Debtor for 2019 on a fixed-fee basis, as well as for
providing potential additional and
necessary accounting and tax advisory and tax filing services to
the Debtor on an hourly basis, to the extent required.
The Debtor seeks will pay Austin a fixed fee for preparing and
filing the 2019 tax returns in the amount of $2,000.
For hourly services, Austin's Autumn Dow, CPA, will bill the Debtor
her customary rate of $156 per hour.
Philip Doucette of Austin Associates assures the court that the
firm is a "disinterested person" as that term is defined in Sec.
101(14) of the Bankruptcy Code, as modified by Sec. 1107(b) of the
Bankruptcy Code.
The firm can be reached through:
Philip Doucette
AS & CB GOULD & SONS INC
9 Walton Mills Rd
Cornville, ME 04976
Phone: +1 207-474-3930
About A.S. & C.B. Gould & Sons, Inc.
A.S. & C.B. Gould & Sons, Inc. is a trucking company based in
Maine.
A.S. & C.B. Gould & Sons, Inc. filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Maine
Case No. 20-10093) On Feb 25, 2020. In the petition signed by
Michael R. Gould, president and stockholder, the Debtor estimated
$1 million to $10 million in both assets and liabilities. Adam R.
Prescott, Esq. at BERNSTEIN, SHUR, SAWYER & NELSON, P.A.
AES CORP: Moody's Affirms Ba1 CFR & Ba1 Sr. Unsec. Debt Rating
--------------------------------------------------------------
Moody's Investors Service assigned a Baa3 senior secured rating to
The AES Corporation's new issuance of up to $1.5 billion of senior
secured notes. Moody's affirmed the company's Ba1 Corporate Family
Rating, Ba1 senior unsecured rating and the Ba1-PD Probability of
Default rating. The Speculative Grade Liquidity Rating is unchanged
at SGL-2. The outlook for AES is stable.
AES intends to use the net proceeds from the secured notes to fund
the early redemption of senior unsecured notes, net of related
costs.
RATINGS RATIONALE
"The Baa3 rating assigned to AES Corporation's new secured notes
reflects the debt security's senior position in the capital
structure compared to its unsecured debt", said Natividad Martel,
VP-Senior Analyst. "This reflects a collateral package consisting
of a pledged stock of the company's subsidiaries", added Martel. We
note that the new secured notes indenture will include a fall away
provision that would release this collateral and any related
guarantees if AES achieves investment grade ratings from two rating
agencies. If the fallaway provision is triggered, this could
trigger a downgrade of the notes to Ba1, the company's current
senior unsecured rating.
AES' secured debt rating reflect Moody's Loss Given Default
methodology. Following the issuance of the new notes, the company's
secured debt will consist of both these notes and its committed
revolving credit facility (commitment $1 billion due in 2024),
which is also secured. The increase in the amount of secured debt
in the capital structure has weakened the recovery prospects of the
unsecured notes, although not enough to result in a downgrade of
the unsecured debt.
The affirmation of AES' Ba1 CFR reflects the scale and
diversification provided by the large number of subsidiaries
operating in twelve countries. The affirmation also factors in the
group's business risk with operations in the US representing around
35% of the group's financial performance at year-end 2019.
During the first quarter 2020 earnings call last week, management
disclosed the financial impact of the coronavirus outbreak on the
group's financial performance. A significant reduction in power
sales has particularly affected the company's US regulated
utilities, namely Indianapolis Power & Light Company (Baa1 stable)
and Dayton Power & Light Company (Baa2 negative). These utilities
do not benefit from decoupling mechanisms that insulate their cash
flows from volatility in sales volumes due to weather, economic
conditions or efficiency. The affirmation of AES' CFR considers,
however, the performance of the rest of the group's contracted
operations in the US and in emerging markets. A material portion of
these contracts are subject to take or pay clauses that help to
mitigate the impact of reduced sales amid the coronavirus on these
subsidiaries' cash flows. That said, the current economic situation
may eventually affect their off-takers' credit quality and cause an
increase in bad debt expenses and outstanding receivables.
The stable outlook reflects the material repayment of parent
company debt in recent years and the company's ability to exhibit
relatively stable consolidated credit metrics, including a ratio of
cash flow from operations excluding changes in working capital (CFO
pre-W/C) to debt of around 12.5% at year-end 2019. The ratio
dropped to around 11% for the last twelve-month period ended March
2020 due to a combination of the financial impact of the pandemic
and increased borrowings under its credit facility. An improvement
in consolidated credit metrics will depend on the ultimate impact
of the coronavirus outbreak. Metrics should be supported by AES
Southland LLC's full year of long-term contracted cash flows, after
achieving commercial operation earlier this year, and its
expectation of the repayment of majority of the $805 million
borrowed amount under the credit facility.
Liquidity
The SGL-2 reflects good liquidity from strong internal cash flow
generation, a robust cash balance and near-term asset sales.
Although the availability of external sources of liquidity is
currently highly constrained, Moody's anticipates that AES will
repay by year end a material portion of the $805 million currently
borrowed under its $1 billion committed credit by the end of the
second quarter Management has disclosed that around $250 million of
the borrowed amount was to protect the company's liquidity amid the
capital market shocks caused by the coronavirus outbreak while it
used the rest for corporate general purposes. The parent company's
cash balance approximated $350 million end of March 2020 compared
to $13 million at year-end 2019.
Borrowings under the facility are subject to conditionality
including a material adverse change clause representation. The
facility has two financial covenants including a minimum cash flow
coverage ratio of 2.5x and a maximum recourse debt to cash flow
ratio of not more than 5.75x (both metrics calculated on a parent
only basis). Moody's anticipates that AES will remain in compliance
with substantial headroom.
The SGL-2 also factors in management's expectation that the
company's free cash flow will range between $725 million and $775
million this year and that it will receive net proceeds from the
sale of assets of around $550 million. AES will also use group's
available cash flows to fund its planned equity contributions to
the subsidiaries of around $565 million during 2020, including
around $150 million to DPL Inc, (Ba1 negative) and AES Gener S.A.
(Baa3 stable).
Assignments:
Issuer: AES Corporation, (The)
Senior Secured Regular Bond/Debenture, Assigned Baa3 (LGD3)
Affirmations:
Issuer: AES Corporation, (The)
Corporate Family Rating, Affirmed Ba1
Probability of Default Rating, Affirmed Ba1-PD
Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 (LGD4)
Outlook Actions:
Issuer: AES Corporation, (The)
Outlook, Remains Stable
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FACTORS THAT COULD LEAD TO AN UPGRADE
AES' ratings could be upgraded if there is a further improvement of
AES' business risk and consolidated financial profile, where the
ratio of consolidated FFO to consolidated debt reaches at least 16%
on a sustained basis. This metric threshold is below what is
required for a "Baa" score for this factor in Moody's rating
methodology because of the company's diversification and contracted
cash flows. A ratings upgrade will also require that the company
maintains good liquidity and exhibit financial policies consistent
with an investment grade rating.
FACTORS THAT COULD LEAD TO A DOWNGRADE
A downgrade could occur if AES diverges from its de-risking
business strategy or implements more aggressive financial policies
or if a more contentious regulatory environment emerged in any of
AES' key subsidiary jurisdictions, particularly in Indiana.
Following the deterioration recorded end of March 2020, AES'
ratings could also be downgraded if the ratio of consolidated FFO
to consolidated debt remained below 12%, for a sustained period of
time.
The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.
AES is a globally diversified power holding company that owns a
portfolio of electricity generation and distribution businesses in
twelve countries. In total, AES has ownership interests in over
30,000 MW of generating capacity across the globe and serves retail
customers via its distribution subsidiaries in two countries.
ALAN CASSIDY: $360K Sale of Naples Property to McMullens Approved
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Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida authorized the private sale by David A.
Broadbent, the Trustee of the insolvency estate of Alan Cassidy, of
the real property located at 1310 Briarwood Court, Naples, Florida,
whose legal description is Lot 3, Block C, Briarwood, Unit Nine, a
subdivision according to the plat thereof as recorded in Plat Book
36, Pages 36 through 38, of the Public Records of Collier County,
Florida, to Keith A. McMullen and Beth L. McMullen for $360,000,
which purchase price is to be reduced by 2%, along with a separate
2% credit for closing costs and other items, pursuant to their
Sales Contract - As Is (Residential Improved Property).
The sale is free and clear of all liens, claims and encumbrances.
The provisions of Bankruptcy Rule 6004(h) will not apply to stay
consummation of the sale of the Real Property. Accordingly, the
Order will be effective and enforceable immediately upon entry by
the Court.
The Chapter 15 case is In re The Bankruptcy Estate of Alan Cassidy
(Bankr. M.D. Fla. Case No. 20-02992).
ALGOMA STEEL: Moody's Cuts CFR & Senior Secured Rating to Caa2
--------------------------------------------------------------
Moody's Investors Service downgraded Algoma Steel Inc.'s corporate
family rating to Caa2 from B3, its probability of default rating to
Caa2-PD from B3-PD and its senior secured rating to Caa2 from Ba3.
The ratings outlook remains negative.
"The downgrade of Algoma's rating reflects a capital structure is
that likely untenable without an improvement in demand for the
steel industry, very high leverage and expected cash consumption
over the next year," said Jamie Koutsoukis, Moody's Vice-President,
Senior Analyst.
Downgrades:
Issuer: Algoma Steel Inc.
Probability of Default Rating, Downgraded to Caa2-PD from B3-PD
Corporate Family Rating, Downgraded to Caa2 from B3
Senior Secured Bank Credit Facility, Downgraded to Caa2 (LGD4)
from B3 (LGD4)
Outlook Actions:
Issuer: Algoma Steel Inc.
Outlook, Remains Negative
RATINGS RATIONALE
Algoma's Caa2 CFR is constrained by 1) very high leverage, and
expected cash usage resulting from weak steel demand (over 20x
adjusted debt/EBITDA and cash usage of CAD$50 million expected in
F2021 ending March 31, assuming US$500-525/t hot rolled coil
price), 2) its small size (2.4 million tons/year of steel shipments
in F2020), 3) a single production site, with a single operating
blast furnace, 4) exposure to volatile steel prices, 5) capital
spending needed for strategic investment following its 2018 exit
from bankruptcy proceedings and 6) a competitive disadvantage
relative to North American peers because of incremental freight
costs from Sault Saint Marie, Ontario. Algoma benefits from 1) raw
material pricing that is tied to various index prices, but with a
lag, 2) relatively low cost hot rolled steel making capabilities,
using its Direct Strip Production Complex, 3) government (combined
federal and provincial) debt financing to assist with needed
modernization, and 4) adequate liquidity to fund its operations
over the next year despite expected cash consumption.
The steel industry globally is viewed as having elevated/emerging
environmental risks with air pollution and carbon regulations
categorized as high. Algoma, like all producers in the global steel
sector faces pressure to reduce greenhouse gas and air pollution
emissions, among a number of other sustainability issues and will
likely incur costs to meet increasingly stringent regulations.
Algoma and companies who produce steel using the blast furnace
process (using primarily coal and iron ore to produce steel) have
higher greenhouse gas emissions and face greater challenges than
producers who use the electric arc furnace, which have a greater
percentage of scrap (recycled steel) in the raw material mix.
Algoma has adequate liquidity. Sources total about CAD326 million
compared to uses of CAD50 million in the next four quarters.
Liquidity sources consist of about CAD61 million available under
its US$250 million ABL credit facility (due in 2023), and cash on
the balance sheet of CAD265 million as of March 2020. Uses include
Moody's expectation of CAD50 million of cash consumption over the
next four quarters, which includes a 1% mandatory term loan
amortization, and the company paying its interest in kind for the
$285 million term loan. Algoma's credit facility is subject to
springing fixed charge coverage covenant if credit facility's
availability falls below an amount defined in the agreement, but
Moody's does not expect the covenant to be applicable in the next
four quarters.
The negative outlook reflects a capital structure is that likely
untenable without an improvement in demand for the steel industry
currently impacted Covid-19. Leverage is very high, the company is
consuming cash at expected prices over the next year, and there is
uncertainty regarding any recovery in the steel market. It also
incorporates Moody's expectation Algoma's debt will increase as the
company pay its interest payments in kind on its term loan, and its
liquidity position will decline as its consumes cash through the
year.
FACTORS THAT COULD LEADE TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded should market conditions improve such
that higher prices are sustainable and the company is able to
generate breakeven free cash flow. An upgrade would also require
that adjusted debt/EBITDA is maintained below 7x (expected to be
above 20x at fiscal year-end 2021 (March 2021) and
(CFO-dividend)/debt is sustained above 5% (expected to be negative
in fiscal 2021).
The ratings could be downgraded should liquidity deteriorate or
access to the ABL be reduced due to an imbalance between the size
of the facility and the borrowing base. It also be downgraded if
Moody's believes there is increasing default risk.
The principal methodology used in these ratings was Steel Industry
published in September 2017.
Algoma Steel Inc., headquartered in Sault Saint Marie, Ontario, is
a privately-owned steel producer with one operating blast furnace,
which shipped 2.4 million tons during fiscal 2019. Algoma
manufactures sheet and plate, with sheet products accounting for
approximately 85% of its sales. Algoma's revenue for the fiscal
year 2019 ending March 31, 2019 was CAD2.7 billion.
ALPHABET HOLDING: Moody's Alters Outlook on B3 CFR to Stable
------------------------------------------------------------
Moody's Investors Service changed Alphabet Holding Company, Inc.'s
(dba as Nature's Bounty) rating outlook to stable from negative. At
the same time Moody's affirmed the company's B3 Corporate Family
Rating, B3-PD Probability of Default Rating, the Ba2 rating on the
company's asset-based lending facility, the B3 rating on the
company's first lien term loan, and the Caa2 rating on the
company's second lien term loan.
The change in outlook to stable from negative recognizes Nature's
Bounty good operating performance and Moody's expectation that the
company's improving free cash flow will continue. While sales
growth remains modest, Nature's Bounty's focus on new product
introductions combined with strong cost reduction initiatives and
productivity improvements has yielded good operating earnings and
cash flow. Further, a number of the company's immunity-based
products, such as its vitamin C and vitamin D products, are
benefitting from increased demand during the coronavirus pandemic
reflecting consumers' focus on wellness. Thus, organic revenue was
up 10% in the fiscal second quarter ending in March 2020. Moody's
expects Nature's Bounty's revenue and earnings to grow more
modestly over the next 12 months because consumers will pull back
from actions such as pantry loading, but Moody's projects revenue
and earnings growth will remain positive.
Moody's estimates that Nature's Bounty financial leverage will
continue to improve and approach 6.0x debt-to-EBITDA by the end of
the fiscal year ended September 2020 from about 6.9x for the twelve
months ended December 31, 2019 largely due to good earnings growth.
Moody's also anticipates Nature's Bounty will maintain good
liquidity over the next 12 months supported by $118 million of
unrestricted balance sheet cash as of March 31, 2020, good annual
free cash flow, $240 million available under its $350 million ABL,
and a covenant lite debt structure.
The following is a summary of Moody's actions:
Alphabet Holding Company, Inc.:
Ratings Affirmed:
Corporate Family Rating at B3
Probability of Default at B3-PD
$350 million senior secured first lien asset-based revolving
credit facility expiring 2022 at Ba2 (LGD2 from LGD1)
$1.5 billion senior secured first lien term loan maturing 2024
at B3 (LGD3)
$400 million senior secured second lien term loan maturing 2025
at Caa2 (LGD6 from LGD5)
The rating outlook has been revised to stable from negative.
RATINGS RATIONALE
Nature's Bounty's B3 CFR reflects the company's high financial
leverage of about 6.9x debt/EBITDA, and moderate scale when
compared to other corporate issuers within the same industry. In
addition, Moody's believes the operating environment of the
vitamin, mineral, and nutritional supplement industry will continue
to be challenging as competition for market share among existing
providers and new entrants remains intense and as more companies
enter the sector and launch new products. Moody's expects
competition for consumers and retail distribution as Nature's
Bounty continues to shift its VMNS product portfolio to branded
from private label and this will require continual investments in
product marketing and promotions that create downward pressure on
margins. The rating is supported by the company's portfolio of
well-known brands and good channel diversification, as well as the
growth potential of the VMNS industry. This growth is due, in part,
to the aging population, with older adults consuming more VMNS
products. Growth will also be favorably affected by consumers'
focus on health and wellness, a trend that is being accentuated by
the coronavirus. Moody's anticipates growing VMNS volumes as well
as Nature's Bounty's initiatives to streamline its supply chain and
cost structure will lead to relatively flat margins over the next
two years despite the competitive environment.
The Ba1 rating on the ABL reflects a one-notch override to the Ba2
model-derived outcome based on the loss given default framework.
The override reflects the structural features of the ABL that
Moody's anticipates would enhance recovery prospects in the event
of a default.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The consumer
products sector has been one of the sectors affected by the shock
given its sensitivity to consumer demand and sentiment. More
specifically, weaknesses in certain Nature's Bounty products such
as protein powder shakes, such as Body Fortress and Pure Protein,
and its exposure to multiple affected countries have left it
vulnerable to shifts in market sentiment in these unprecedented
operating conditions. Nature's Bounty remains vulnerable to the
outbreak continuing to spread if declines in consumer income lead
to weaker sales of a broader array of the company's products.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. The company's ratings in part reflects the impact on
Nature's Bounty of the breadth and severity of the shock, and the
broad risks to credit quality it has triggered.
Environmental and social risks are relatively low for the company.
However, consumption patterns are changing in the United States
with some consumers favoring healthier food options. This is
favorable for Nature's Bounty due to its focus on health and
fitness that include products such as vitamins, nutrition bars and
powders. The company's manufacturing facilities are also regulated
by the Food and Drug Administration for health and safety. Nature's
Bounty operates manufacturing facilities where efficient use of
energy, land and water are necessary to maintain a good
environmental record. Moody's considers Nature's Bounty financial
strategies as aggressive given its high financial leverage and
private equity ownership.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if the company's revenue and EBITDA
deteriorate because of competitive volume losses, adverse product
mix, pricing declines or cost increases. Debt funded acquisitions,
shareholder distributions, or a deterioration in liquidity could
also contribute to a downgrade. Debt to EBITDA sustained above 7.0x
or free cash flow to debt sustained below 2.0% could also prompt a
downgrade.
An upgrade would require that Nature's Bounty's demonstrate
consistent operating performance in a the highly competitive VMNS
market. The company would also need to sustain good liquidity with
debt to EBITDA approaching 6.0x before Moody's would consider an
upgrade.
The principal methodology used in these ratings was Consumer
Packaged Goods Methodology published in February 2020.
Nature's Bounty, headquartered in Ronkonkoma, NY, is a manufacturer
and marketer of VMNS primarily in the United States. Some of the
company's brands include Nature's Bounty, Sundown and Pure Protein.
Nature's Bounty is a subsidiary of Alphabet Holding Company, Inc.
The company is majority owned by private equity firm KKR with The
Carlyle Group owning a 30% minority interest. Nature's Bounty
generates nearly $2.0 billion in annual revenue.
AMERICAN WORKERS: Taps John Tittle of Harris & Dickey as CRO
------------------------------------------------------------
American Workers Insurance Services, Inc., and its-debtor
affiliates seek authority from the U.S. Bankruptcy Court for the
Northern District of Texas to employ Harris & Dickey, LLC to
provide a chief restructuring officer and certain additional
personnel to the Debtors, and designate John Tittle, Jr. as CRO.
The Debtors require Harris & Dickey to:
(a) review and analyze the financial and operational position
of the Debtors, and provide advice in connection with same;
(b) evaluate and investigate potential strategies for the
restructuring and refinancing of the Debtors, and provide advice in
connection with same;
(c) prepare data and analyses to meet the requests of the
Debtors' financial constituents, including but not limited to its
secured lender;
(d) provide oversight and support to the Debtors' other
professionals in connection with execution of their business plan,
any sales process and the overall administration of activities
within the chapter 11 proceeding;
(e) provide oversight and assistance in connection with the
preparation of financial related disclosures required by the
bankruptcy court, including the Monthly Operating Reports, and any
other disclosures required by the Debtors in connection with the
bankruptcy process;
(f) provide oversight and assistance in connection with the
preparation of financial information for distribution to creditors
and others, including, but not limited to, cash flow projections
and budgets, cash receipts and disbursements analysis of various
asset and liability accounts, and analysis of proposed transactions
for which court approval is sought;
(g) participate in meetings and provide assistance to any
official committee(s) appointed in the case, the U.S. Trustee,
other parties in interest, including contractual counterparties,
and professionals hired by the same;
(h) evaluate, make recommendations and implement strategic
alternatives as needed to maximize the value of the Debtors'
assets;
(i) evaluate, analyze, and make recommendations relating to
the Debtors' assets;
(j) provide oversight and assistance in connection with the
preparation of analysis of creditor claims;
(k) provide oversight and assistance in connection with the
evaluation and analysis of avoidance actions, including, fraudulent
conveyances and preferential transfers, and in the defense and
prosecution of other litigation, if necessary;
(l) provide testimony in litigation/bankruptcy matters as
required;
(m) evaluate the cash flow generation capabilities of the
Companies for valuation maximization opportunities;
(n) provide oversight and assistance in connection with
communications and negotiations with constituents including
investors and other critical constituents to the successful
restructuring of the Debtors;
(o) assist in development of a plan of reorganization or
liquidation and in the preparation of information and analysis
necessary for the confirmation of a plan in the chapter 11
proceeding; and
(p) perform other tasks as directed by the Debtors and agreed
to by Harris & Dickey.
Harris & Dickey will charge these hourly rates:
John Tittle, Jr., CRO $375
Consultants $260
Mr. Tittle disclosed in court filings that the firm is
"disinterested" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
John Tittle, Jr.
Harris and Dickey, LLC
4127 Wycliff Avenue
Dallas, TX 75219
Phone: (972) 672-7597
Email: john@harris-dickey.com
About American Workers Insurance Services
American Workers Insurance Services, Inc., is a health insurance
agency in Rockwall, Texas.
Association Health Care Management, Inc., doing business as Family
Care, provides health care services. AHCM offers assistance,
nursing, patient care, rehabilitation, and dental services.
AWIS and AHCM sought Chapter 11 protection (Bankr. N.D. Tex. Case
No. 19-44208 and 19-44209) on Oct, 14, 2019 in Fort Worth, Texas.
The petitions were signed by Harold Lyndon Brock, Jr., president of
American Workers Insurance, and Landon Jordan, chief executive
officer of Association Health Care.
On the petition date, AWIS was estimated to have $50 million to
$100 million in assets, and $10 million to $50 million in
liabilities; AHCM was estimated to have between $50 million and
$100 million in assets, and between $10 million and $50 million in
liabilities. The Hon. Mark X. Mullin is the case judge for Debtor
AWIS' case, and Hon. Edward L. Morris for Debtor AHCM's case.
Forshey & Prosto, LLP, serves as counsel to both Debtors.
ASTROTECH CORP: Incurs $2.07 Million Net Loss in Third Quarter
--------------------------------------------------------------
Astrotech Corporation reported a net loss of $2.07 million on
$118,000 of revenue for the three months ended March 31, 2020,
compared to a net loss of $1.39 million on $0 of revenue for the
three months ended March 31, 2019.
For the nine months ended March 31, 2020, the Company reported a
net loss of $6.22 million on $324,000 of revenue compared to a net
loss of $5.79 million on $40,000 of revenue for the nine months
ended March 31, 2019.
As of March 31, 2020, the Company had $7.51 million in total
assets, $4.86 million in total liabilities, and $2.65 million in
total stockholders' equity.
Third Quarter Fiscal Year 2020 Financial Highlights
* The Company continued its commercial sales of the TRACER
1000, leading to revenue of $118,000 for the third
quarter of fiscal 2020. Additional purchase orders have
already been received.
* Monthly cash outlay for this fiscal year has been reduced to
approximately $550,000, a 24.4% reduction from its cash
outlay through the first nine months of fiscal year 2019,
which is partially driven by its directors and officers
foregoing compensation.
* In February 2020, Astrotech secured a loan of $1.0 million
from its Chairman and CEO pursuant to a secured promissory
note.
* The Company completed two registered direct offerings of its
common stock at the end of the fiscal quarter, raising total
net proceeds of approximately $4.5 million.
Astrotech said this quarter was pivotal for the Company, as it
continued to generate interest for its new AgLAB-1000 product that
is being designed for process control and pesticide detection in
the hemp and cannabis industries. In addition, the Company's 1st
Detect subsidiary continued its sales of the TRACER 1000 explosives
trace detector (ETD) to a global shipping and logistics company.
Although the COVID-19 pandemic has caused some near-term
uncertainty for the travel industry, global shipping has been less
impacted and this is where the Company sees continued demand for
its product. Finally, the Company also launched a new company,
BreathTech Corporation, to focus on the breath analysis market to
potentially aid in the battle against COVID-19 and pneumonia.
"With both our hemp and cannabis product, the AgLAB-1000, and our
breath analysis product, the BreathTest-1000, we believe we will be
offering highly differentiated solutions compared to other
currently available options," stated Thomas B. Pickens, chairman
and chief executive officer of Astrotech Corporation. "Regarding
the BreathTest-1000, many current COVID-19 tests require either a
saliva or blood sample to be sent to a laboratory for testing,
which can take days to get the results, or require a long swab to
be inserted deep into the nasal cavity, which is uncomfortable and
not practical for every day testing. We are hopeful that, once
fully developed and approved, this could help make available
regular mass testing for factories, cruise lines, air travel,
sports, or other domains where people congregate in crowded
spaces."
The Company said no assurances can be given that it will be able to
successfully develop the BreathTest-1000 or the AgLAB-1000. The
governmental approval process could be lengthy, time consuming and
is inherently unpredictable, and the Company cannot guarantee that
these products will ever be approved for sale and marketing.
During the third quarter, the Company raised approximately $5.5
million in equity offerings and borrowings as it looks to expand
into the agriculture and breath analysis markets.
Financial Condition
As of March 31, 2020, the Company had cash and cash equivalents of
$4.7 million and restricted cash of $0.1 million, and working
capital was approximately $2.0 million. Restricted cash consists
of two letters of credit relating to purchase orders for the TRACER
1000 product. The Company reported a net loss of $7.5 million for
the fiscal year 2019 and a net loss of $6.2 million for the nine
months ended March 31, 2020, along with net cash used in operating
activities of $8.5 million for the fiscal year 2019 and net cash
used in operating activities of $5.0 million for the nine months
ended March 31, 2020. This raises substantial doubt about the
Company's ability to continue as a going concern.
Astrotech said, "The Company remains resolute in identifying the
optimal solution to its liquidity issue. The Company is currently
evaluating several potential sources for additional liquidity.
These include, but are not limited to, selling the Company or a
portion thereof, licensing some of its technology, raising
additional funds through capital markets, debt financing, equity
financing, merging, or engaging in a strategic partnership."
"The Company is currently evaluating potential offerings of any
combination of common stock, preferred stock, debt securities,
warrants to purchase common stock, preferred stock or debt
securities, or any combination of the foregoing, either
individually or as units comprised of one or more of the other
securities. However, additional funding may not be available when
needed or on terms acceptable to us. If we are unable to generate
funding within a reasonable timeframe, we may have to delay, reduce
or terminate our research and development programs, limit strategic
opportunities, or curtail our business activities. Astrotech's
consolidated financial statements as of March 31, 2020 do not
include any adjustments that might result from the outcome of this
uncertainty."
COVID-19
Astrotech added, "The extent of the impact of the COVID-19 pandemic
on the Company's business is highly uncertain and difficult to
predict, as the responses that the Company, other businesses and
governments are taking continue to evolve. Furthermore, capital
markets and economies worldwide have also been negatively impacted
by the COVID-19 pandemic, and it is possible that it could cause a
local and/or global economic recession. Policymakers around the
globe have responded with fiscal policy actions to support the
economy as a whole. The magnitude and overall effectiveness of
these actions remain uncertain.
"It is possible that the continued spread of COVID-19 could cause
disruption in the Company's supply chain; cause delay, or limit the
ability of customers to perform, including in making timely
payments to the Company; cause delay in regulatory certification
testing of the Company's instruments; impact investment
performance; and cause other unpredictable events. As of the date
of issuance of Company's financial statements, the extent to which
the COVID-19 pandemic may in the future materially impact the
Company's financial condition, liquidity, or results of operations
is uncertain."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/uFWfmD
About Astrotech
Astrotech Corporation (NASDAQ: ASTC) --
http://www.astrotechcorp.com/-- is a science and technology
development and commercialization company that launches, manages,
and builds scalable companies based on innovative technology in
order to maximize shareholder value. The Company currently
operates two reportable business units, 1st Detect Corporation and
Astral Images Corporation, and their efforts are focused on the
following: 1st Detect is a manufacturer of explosives and narcotics
trace detectors developed for use at airports, secured facilities,
and borders worldwide; and Astral is a developer of advanced film
restoration and enhancement software.
Astrotech reported a net loss of $7.53 million for the year ended
June 30, 2019, compared to a net loss of $13.25 million for the
year ended June 30, 2018. As of Dec. 31, 2019, the Company had
$3.67 million in total assets, $3.43 million in total liabilities,
and $247,000 in total stockholders' equity.
Armanino LLP, in San Francisco, California, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated Sept. 30, 2019, citing that the Company has suffered
recurring losses from operations and has net cash flows
deficiencies that raise substantial doubt about its ability to
continue as a going concern.
AVADEL SPECIALTY: Hires Baker & McKenzie as Co-Counsel
------------------------------------------------------
Avadel Specialty Pharmaceuticals, LLC, seeks authority from the
U.S. Bankruptcy Court for the District of Delaware to employ Baker
& McKenzie LLP, as co-counsel to the Debtor.
Avadel Specialty requires Baker & McKenzie to:
a. provide legal advice with respect to the Debtor's powers
and duties as debtor-in-possession in the continued
operation of its business and management of its property;
b. negotiate, draft and pursue all documentation necessary in
this Chapter 11 Case;
c. prepare, on behalf of the Debtor, applications, motions,
answers, orders, reports and other legal papers necessary
to the administration of the Debtor's estate;
d. appear in Court and protecting the interests of the Debtor
before the Court;
e. assist with any disposition of the Debtor's assets, by sale
or otherwise;
f. negotiate and take all necessary or appropriate actions in
connection with a chapter 11 plan or plans and all related
documents thereunder and transactions contemplated therein;
g. attend meetings and negotiating with representatives of
creditors, the United States Trustee and other parties-in-
interest;
h. provide legal advice regarding bankruptcy law, corporate
law, corporate governance, securities, employment,
transactional, tax, labor, litigation, intellectual
property and other issues to the Debtor in connection with
the Debtor's ongoing business operations;
i. take all necessary actions to protect and preserve the
Debtor's estate, including prosecuting actions on the
Debtor's behalf, defending any action commenced against the
Debtor and representing the Debtor in negotiations
concerning litigation in which the Debtor is involved,
including objections to claims filed against the Debtor's
estate; and
j. perform other legal services for, and providing other
necessary legal advice to, the Debtor, which may be
necessary and proper in this Chapter 11 Case.
Baker & McKenzie will be paid at these hourly rates:
Partners $715 to $1,380
Of Counsel $810 to $1,010
Associates $400 to $880
Legal Assistants/Paralegals $210 to $365
Baker & McKenzie will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Paul J. Keenan, Jr., partner of Baker & McKenzie LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Baker & McKenzie can be reached at:
Paul J. Keenan Jr., Esq.
John R. Dodd, Esq.
BAKER & MCKENZIE LLP
1111 Brickell Avenue, Suite 1700
Miami, FL 33131
Tel: (305) 789-8900
Fax: (305) 789-8953
E-mail: paul.keenan@bakermckenzie.com
john.dodd@bakermckenzie.com
About Avadel Specialty Pharmaceuticals
Avadel Specialty Pharmaceuticals, LLC, is a pharmaceutical company
whose sole commercial product is the FDA-approved NOCTIVA(TM).
NOCTIVA(TM) is a prescription medicine nasal (nose) spray used in
adults who wake up two or more times during the night to urinate
due to a condition called nocturnal polyuria. The company is a
special purpose entity and wholly owned subsidiary of Dublin,
Ireland-based Avadel Pharmaceuticals plc (Nasdaq: AVDL).
Avadel Specialty Pharmaceuticals sought Chapter 11 relief (Bankr.
D. Del. Case No. 19-10248) on Feb. 6, 2019. The Debtor disclosed
total assets of $79.67 million and liabilities of $167.39 million
as of Dec. 31, 2018.
The Hon. Christopher S. Sontchi is the case judge.
The Debtor tapped Greenberg Traurig, LLP as counsel; MCA Financial
Group, Ltd., as investment banker; and Epiq Corporate
Restructuring, LLC, as claims and noticing agent.
AVINGER INC: Posts $6.8 Million Net Loss in First Quarter
---------------------------------------------------------
Avinger, Inc. reported a net loss attributable to common
stockholders of $6.82 million for the three months ended March 31,
2020, compared to a net loss attributable to common stockholders of
$5.95 million for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $22.80 million in total
assets, $18.39 million in total liabilities, and $4.41 million in
total stockholders' equity.
Total revenue was $2.3 million for the first quarter of 2020, an
increase of 23% from the first quarter of 2019, driven by a 39%
year-over-year increase in catheter sales. Revenue growth was
offset by a decline in console sales and legacy catheter products.
Gross margin for the first quarter of 2020 was 22%, compared to 20%
in the first quarter of 2019. Operating expenses for the first
quarter of 2020 were $6.0 million, compared with $5.4 million in
the first quarter of 2019 due to continued investment in the
Company's commercial activities and increased research and
development activity in support of advancing the completion of the
company's Ocelaris and L300 products.
Adjusted EBITDA was a loss of $4.8 million, compared with a loss of
$4.1 million in the first quarter of 2019.
Cash and cash equivalents totaled $9.9 million as of March 31,
2020, compared with $10.9 million as of Dec. 31, 2019. In the
second quarter of 2020, Avinger announced $3.6 million in gross
proceeds from an underwritten public offering and the receipt of
$2.3 million pursuant to the Paycheck Protection Program.
First Quarter and Recent Highlights
* Increased total revenue 23% year-over-year, to $2.3 million,
driven by a 39% increase in catheter sales
* Grew total Pantheris revenue by 75% year-over-year, to $1.6
million
* Launched 11 new Lumivascular sites in the first quarter,
after adding 14 new accounts in the second half of 2019
* Expanded Pantheris SV penetration with shipments to more
than 70 accounts since commercial launch
* Received $4.5 million and $3.6 million of gross proceeds
from equity financing rounds in January 2020 and during the
second quarter of 2020, respectively
* In April 2020, received $2.3 million in loan proceeds
pursuant to the "Paycheck Protection Program" created under
Section 1102 of the Coronavirus Aid, Relief and Economic
Security Act
COVID-19 Updates and Response
* Case activity has been reduced since March as hospitals in
the US defer elective and non-critical patient procedures;
however, Avinger's Lumivascular products continue to be used
on a daily basis in more urgent cases.
* Avinger initiated a series of cost reductions, including a
temporary company-wide salary reduction program and
discretionary spending cuts, expected to reduce costs by
almost $1 million in the second quarter on a quarterly run-
rate.
* Avinger continues to prioritize the development and
completion of projects key to future growth, including the
expected filing of 510(k) submissions for Ocelaris, Avinger's
next generation CTO device, in the second quarter and the
L300 imaging console anticipated in the second half of this
year.
Jeff Soinski, Avinger's president and CEO, commented, "The first
quarter was off to a strong start in January and February, prior to
the onset of the COVID-19 pandemic in the U.S. Beginning in March,
hospitals prioritized resources for potential COVID-19 cases and
began to defer elective and non-critical procedures. Similar to
many medical device companies serving markets with elective
procedures, these restrictions had a significant impact on our case
activity in March and has continued into the second quarter.
"In response to this unprecedented shift in healthcare resources,
we have taken steps to reduce our operating costs. This includes a
temporary 20% salary reduction company-wide and a cut in
discretionary spending where available.
"Importantly, we continue to invest in key programs that we expect
will drive future revenue growth at Avinger, including our Ocelaris
image-guided CTO crossing catheter, which we plan to submit for
510(k) pre-marketing clearance in the U.S. this quarter, and the
development of our L300 imaging console, which will provide our
proprietary imaging capabilities in a much smaller form factor and
at a lower cost. We anticipate submitting a 510(k) application for
the L300 in the second half of this year. We are also moving ahead
on completing our INSIGHT IDE clinical study to evaluate the safety
and effectiveness of Pantheris for treating in-stent restenosis
(ISR) to support a future 510(k) submission for an expanded label
for Pantheris."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/bFZDnQ
About Avinger
Headquartered in Redwood City, California, Avinger --
http://www.avinger.com/-- is a commercial-stage medical device
company that designs and develops image-guided, catheter-based
system for the diagnosis and treatment of patients with Peripheral
Artery Disease (PAD).
Avinger reported a net loss applicable to common stockholders of
$23.03 million for the year ended Dec. 31, 2019, compared to a net
loss applicable to common stockholders of $35.69 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$23.82 million in total assets, $16.93 million in total
liabilities, and $6.89 million in total stockholders' equity.
Moss Adams LLP, in San Francisco, California, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated March 5, 2020, citing that the Company's recurring losses
from operations and its need for additional capital raise
substantial doubt about its ability to continue as a going concern.
AYTU BIOSCIENCE: Incurs $5.33 Million Net Loss in Third Quarter
---------------------------------------------------------------
Aytu Bioscience, Inc. reported a net loss of $5.33 million on $8.16
million of total revenues for the three months ended March 31,
2020, compared to a net loss of $4.49 million on $2.38 million of
total revenue for the three months ended March 31, 2019. The
Company's third quarter revenue results represent partial revenue
contribution from the acquisition of Innovus Pharmaceuticals, which
closed on Feb. 14, 2020, and zero revenue contribution from
COVID-19 IgG/IgM rapid tests first received at the start of the
fiscal fourth quarter on April 1, 2020.
For the nine months endeed March 31, 2020, the Company reported a
net loss of $10.47 million on $12.77 million of total revenue
compared to a net loss of $12.60 million on $5.60 million of total
revenue for the nine months ended March 31, 2019.
As of March 31, 2020, the Company had $158.95 million in total
assets, $73.25 million in total liabilities, and $85.70 million in
total stockholders' equity.
As of March 31, 2020, the Company had approximately $62.5 million
of cash, cash equivalents and restricted cash. The Company said
its operations have historically consumed cash and are expected to
continue to require cash, but at a declining rate.
Commenting on the third quarter of fiscal 2020, Josh Disbrow, chief
executive officer of Aytu BioScience, stated, "We had a
transformative third quarter and have had exceptional performance
in the period year to date. Starting with revenue, in Q3 we
reported our highest ever revenue quarter with $8.2 million in top
line, up 243% year over year. Additionally, through our recent
equity offerings and warrant exercises we strengthened our balance
sheet and have $62.5 million in cash, restricted cash, and cash
equivalents as of March 31st. Further, by signing two distribution
agreements for COVID-19 rapid tests and securing an exclusive
worldwide licensing agreement with Cedars-Sinai for the Healight
technology platform, the Company is well positioned to continue to
take the fight to COVID-19. With a large number of tests having
just arrived at our warehouse this week, we can now help even more
providers screen patients for COVID-19 IgG and IgM antibodies as we
collectively work to reopen the country."
Mr. Disbrow continued, "Looking at our growth drivers beyond fiscal
Q3, the Company has three strategic areas from which we expect to
make progress going forward: growth of our organic Rx and consumer
health business segments, continuing the distribution of the two
COVID-19 antibody test kits for which we've secured distribution
rights, and progressing the development of the Healight platform
technology as a prospective treatment for COVID-19 and other severe
infections. Organically in Q4, we will have our first full quarter
of revenue contribution from the newly acquired Innovus consumer
health segment. Importantly, the consumer business has already
launched Regoxidine, for hair regrowth, and more near-term consumer
health product launches are planned. With respect to the
prescription business, we reported recently published Phase IV data
for Natesto and demonstrated that a testosterone replacement
therapy can increase serum testosterone levels while maintaining
sperm concentration, motility, and total motile sperm count. We
believe this clinical development enables Natesto to stand apart
from other testosterone replacement therapies in offering a
treatment solution for hypogonadal men wishing to maintain
fertility. In terms of COVID-19 testing revenue, we began shipping
product in April, so we expect a significant increase in revenue in
Q4 now that those test sales are under way. Additionally, we signed
an exclusive global license with Cedars-Sinai for Healight, which
represents a novel opportunity as a potential treatment for
COVID-19 and other serious infections for hospitalized patients."
Mr. Disbrow concluded, "When considering our organic growth, a
$62.5 million cash balance, our expected revenue from the COVID-19
antibody test kits, the addition of the Healight opportunity, and a
cleaned-up capital structure, I have never been more optimistic
about the future of Aytu BioScience."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/J6WY1K
About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) --
http://www.aytubio.com/-- is a commercial-stage specialty
pharmaceutical company focused on commercializing novel products
that address significant patient needs. The company currently
markets a portfolio of prescription products addressing large
primary care and pediatric markets. The primary care portfolio
includes (i) Natesto, an FDA-approved nasal formulation of
testosterone for men with hypogonadism, (ii) ZolpiMist, an
FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra
XR, an FDA-approved 12-hour codeine-based antitussive syrup. Aytu
Bioscience reported a net loss of $27.13 million for the year ended
June 30, 2019, compared to a net loss of $10.18 million for the
year ended June 30, 2018. As of Dec. 31, 2019, the Company had
$74.48 million in total assets, $57.39 million in total
liabilities, and $16.76 million in total stockholders' equity.
Plante & Moran, PLLC, in Denver, CO, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
Sept. 26, 2019, on the Company's consolidated financial statements
for the year ended June 30, 2019, citing that the Company has
suffered recurring losses from operations and has an accumulated
deficit that raise substantial doubt about its ability to continue
as a going concern.
BALDWIN PATTIE: Seeks to Hire H & S Companies as Accountant
-----------------------------------------------------------
Baldwin Pattie Drug Store, LLC, seeks approval from the U.S.
Bankruptcy Court for the Western District of Michigan to hire H & S
Companies, PC, as its accountants.
Baldwin requires H & S to:
a) review financials to establish sustainability;
b) develop a budget to support Debtor's Chapter 11;
c) assist Debtor with preparing monthly budget reports, cash
collateral budgets and other reports as may be required of Debtor
during the Chapter 11;
d) perform all other necessary accounting and finance
assistance as may be needed during the Chapter 11.
H & S Companies has agreed monthly rate of $1500. If deemed more
prudent, hourly rates as follows: $150 an hour for Zak Carter, CPA,
and $100 an hour for staff accountants. H & S Companies will be
reimbursed for all expenses incurred in connection with its
representation of a client in a given matter.
H & S Companies is a "disinterested person" within the meaning of
Sec. 101(14), according to court filings.
The firm can be reached through:
Zak Carter, CPA
H & S Companies, PC
103 S Chestnut St.
PO Box 77
Reed City, MI 49677
Phone: 231-832-2799
About Baldwin Pattie Drug Store
Baldwin Pattie Drug Store, LLC, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. W.D. Mich. Case No. 20-01025) on
March 10, 2020. At the time of the filing, the Debtor had
estimated assets of between $100,001 and $500,000 and liabilities
of between $500,001 and $1 million. The Debtor is represented by
Bare & Clough PC.
BIOPHARMX CORP: Stockholders Approve Merger with Timber
-------------------------------------------------------
BioPharmX Corporation said that all proposals related to its
proposed merger with Timber Pharmaceuticals LLC were approved by
BioPharmX's stockholders at a special meeting held on May 13, 2020.
The proposed merger remains subject to further customary closing
conditions and regulatory approvals. BioPharmX and Timber expect
the closing of the merger to occur on or about
May 18, 2020.
Upon closing of the transaction, the combined company will change
its name to "Timber Pharmaceuticals, Inc." and it is anticipated
that the shares will commence trading on the NYSE American market
under the ticker symbol "TMBR." The officers and managers of
Timber will assume leadership of the combined company with Michael
Derby serving as Chairman and John Koconis as chief executive
officer.
Timber is a biopharmaceutical company focused on the development
and commercialization of treatments for orphan dermatologic
diseases. The combined company will have a robust pipeline
including Timber's two Phase 2b programs and a preclinical program
targeting multiple niche orphan indications with no approved
treatments as well as BioPharmX's two Phase 3-ready topical
minocycline programs. Following the closing of the merger, the
combined company will evaluate BioPharmX's Phase 3-ready programs
for a strategic partnership, co-development, or other non-dilutive
value creation opportunities.
About BioPharmX
Headquartered in San Jose, California, BioPharmX is a specialty
pharmaceutical company focused on developing prescription products
utilizing its proprietary HyantX Topical Delivery System for
dermatology indications.
BioPharmX recorded a net loss and comprehensive loss of $9.69
million for the year ended Jan. 31, 2020, compared to a net loss
and comprehensive loss of $17.26 million for the year ended Jan.
31, 2019. As of Jan. 31, 2020, the Company had $2.13 million in
total assets, $2.47 million in total liabilities, and a total
stockholders' deficit of $339,000.
BPM LLP, in San Jose, California, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated March
23, 2020 citing that the Company's recurring losses from
operations, available cash and accumulated deficit raise
substantial doubt about its ability to continue as a going concern.
BIOPHARMX CORP: Will Effect a 1-for-12 Reverse Stock Split
----------------------------------------------------------
In anticipation of closing its merger with Timber Pharmaceuticals,
BioPharmX Corporation said it will effect a 1-for-12 reverse stock
split of its outstanding common stock. The reverse stock split is
expected to be effective for trading purposes as of the
commencement of trading on Tuesday, May 19, 2020.
The reverse stock split is intended to increase the per share
trading price of BioPharmX common stock in order to meet NYSE
American Listing Requirements which will require, among other
things, a $2.00 per share price, post-split, upon the closing of
the merger. Upon the closing of the merger, which is expected to
occur on Monday, May 18, 2020, BioPharmX will change its name to
Timber Pharmaceuticals, Inc. and its common stock is expected to
begin trading on the NYSE American on Tuesday, May 19, 2020 on a
post reverse stock split basis under the symbol "TMBR" under a new
CUSIP number 887080109.
As a result of the reverse stock split, every twelve pre-split
shares of common stock outstanding will become one share of common
stock. The par value of the common stock will remain unchanged at
$0.001 per share after the reverse stock split. The reverse stock
split will not change the authorized number of shares of the
Company's common stock. The reverse stock split will affect all
stockholders uniformly and will not alter any stockholder's
percentage interest in the Company's equity, except to the extent
that the reverse stock split would result in some stockholders
owning a fractional share. In that regard, no fractional shares
will be issued in connection with the reverse split. Stockholders
who would otherwise be entitled to receive a fractional share will
instead receive a cash payment based on Monday's closing price of
the Company's common stock as reported on the NYSE American. The
reverse stock split will also apply to common stock issuable upon
the exercise of BioPharmX's outstanding warrants and stock options,
with a proportionate adjustment to the numbers of shares which can
be purchased upon the exercise of the warrants and stock options
and the exercise prices thereof, and under the Company's equity
incentive plans.
On May 13, 2020, the holders of a majority of the Company's
outstanding shares of common stock approved the reverse stock split
and gave the Company's board of directors discretionary authority
to select a ratio for the split ranging from 1-for-5 to 1-for-25.
The board of directors approved the reverse stock split at a ratio
of 1-for-12 on May 15, 2020.
Computershare Trust Company, N.A. is acting as the exchange agent
and transfer agent for the reverse stock split. Stockholders
holding their shares in book-entry form or in brokerage accounts
need not take any action in connection with the reverse stock
split. Beneficial holders are encouraged to contact their bank,
broker or custodian with any procedural questions.
About BioPharmX
Headquartered in San Jose, California, BioPharmX is a specialty
pharmaceutical company focused on developing prescription products
utilizing its proprietary HyantX Topical Delivery System for
dermatology indications.
BioPharmX recorded a net loss and comprehensive loss of $9.69
million for the year ended Jan. 31, 2020, compared to a net loss
and comprehensive loss of $17.26 million for the year ended Jan.
31, 2019. As of Jan. 31, 2020, the Company had $2.13 million in
total assets, $2.47 million in total liabilities, and a total
stockholders' deficit of $339,000.
BPM LLP, in San Jose, California, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated March
23, 2020 citing that the Company's recurring losses from
operations, available cash and accumulated deficit raise
substantial doubt about its ability to continue as a going concern.
BLACKRIDGE RESEARCH: Hires Harris Law as Bankruptcy Counsel
-----------------------------------------------------------
Blackridge Research Inc., seeks authority from the U.S. Bankruptcy
Court for the District of Nevada to employ Harris Law Practice, as
general bankruptcy counsel to the Debtor.
Blackridge Research requires Harris Law to:
a. assist in the examination and preparation of records and
reports as required by the Bankruptcy Code, Federal Rules
of Bankruptcy Procedure and Local Bankruptcy Rules;
b. prepare applications and proposed orders to be submitted to
the Court;
c. identify and prosecute claims and causes of action
assertable by the Debtor on behalf of the estate;
d. examine of proofs of claim anticipated to be filed and
the possible prosecution of objections to certain of such
claims;
e. advise the Debtor and prepare documents in connection with
the contemplated ongoing operations of the Debtor's
business, if any;
f. assist and advise the Debtor in performing other official
functions as set forth in Section 521, et seq., of the
Bankruptcy Code; and
g. advise and prepare a Plan of Reorganization, Disclosure
Statement and related documents and confirmation of said
Plan.
Harris Law will be paid at these hourly rates:
Attorneys $550
Paraprofessionals $150 to $300
The Debtor paid Harris Law the amount of $6,383.50 as advance
retainer.
Harris Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stephen R. Harris, a partner at Harris Law Practice, LLC, assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Harris Law Practice can be reached at:
Stephen R. Harris, Esq.
HARRIS LAW PRACTICE LLC
6151 Lakeside Dr, Ste 2100
Reno, NV 89511
Tel: (775) 786-7600
Fax: (775) 786-7764
E-mail: steve@harrislawreno.com
About Blackridge Research
Blackridge Research Inc. is a subsidiary of BlackRidge Technology,
which develops, markets, and supports a family of products that
provide cybersecurity solutions for protecting enterprise networks
and cloud services.
Blackridge Research Inc., based in Reno, NV, filed a Chapter 11
petition (Bankr. D. Nev. Case No. 20-50465) on April 30, 2020. In
the petition signed by John Hayes, president, the Debtor was
estimated to have $1 million to $10 million in both assets and
liabilities. The Hon. Bruce T. Beesley oversees the case. Stephen
R. Harris, Esq., at Harris Law Practice, LLC, serves as bankruptcy
counsel to the Debtor.
BOYD GAMING: S&P Downgrades ICR to 'B' on Elevated Leverage
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S. casino
operator Boyd Gaming Corp. to 'B' from 'B+' and its issue-level
ratings on its existing secured debt by one-notch.
Recovery prospects for unsecured lenders are impaired because of
the incremental secured debt in the capital structure from the full
revolver draw and a greater amount of unsecured debt. As a result,
S&P lowered its existing issue-level ratings on Boyd's unsecured
debt to 'B-' from 'B+' and revised the recovery rating to '5' from
'4'.
S&P is removing all of its ratings on the company from CreditWatch,
where it placed them with negative implications on March 20, 2020.
At the same time, S&P is assigning its 'B-' issue-level rating and
'5' recovery rating to Boyd's proposed notes.
S&P said, "The downgrade reflects the significant spike in Boyd's
leverage in 2020 because of the closure of its casinos due to the
COVID-19 pandemic, and our expectation that its leverage will not
improve below our 6x downgrade threshold for the 'B+' rating in
2021 even under our assumed recovery scenario. Boyd's leverage
will rise significantly in 2020 because the company will be unable
to generate revenue and continue to burn cash until it reopens its
portfolio of casinos. If the virus is contained by midyear 2020, we
believe Boyd could begin to reopen its properties in that time
frame. However, consumer apprehensions around entering enclosed
public spaces, the need to implement social distancing and other
health and safety measures (including those that reduce gaming
capacity and limit visitor volume), lingering fears around travel
(because a majority of Boyd's customers at its downtown Las Vegas
properties come from out of state and fly to the city), and the
recession could weigh on consumer discretionary spending--at least
through this year--and hamper its recovery. We believe local and
regional gaming markets, like Boyd's Midwest and South properties
and its Las Vegas locals properties (together accounting for over
90% of its 2019 net revenue), could recover faster than destination
markets such as the Las Vegas Strip because most customers drive to
these properties instead of fly, which reduces the cost of the trip
and potentially alleviates any lingering fears around travel.Boyd
Gaming Corp.
"In our revised base-case scenario, we assume most of Boyd's
casinos remain closed through the majority of the second quarter
and will reopen in the third quarter. However, some local and state
government authorities may allow casinos to reopen before the end
of June depending on the rate of the virus' spread in their area
because regional casinos are a significant source of tax revenue
for states and typically cater to local customers rather than
tourists. For instance, Louisiana recently announced that casinos
will be allowed to reopen at 25% capacity next week. Although we
assume most of Boyd's casinos will reopen in the third quarter, we
believe its downtown casinos, which rely heavily on fly-in
visitation from Hawaii, may reopen later in 2020 than the rest of
its portfolio."
Once state and local government authorities allow casinos to
reopen, they will likely be required to implement social distancing
and other health and safety measures to limit the spread of the
coronavirus. To achieve this, operators would likely turn off some
slot machines and reduce the number of seats at table games to
spread out their patrons. This would reduce their available gaming
capacity and may impair their recovery prospects.
S&P said, "We also expect Boyd to reduce the capacity in its bars
and restaurants and some amenities, like buffets, may remain closed
for some time after the casinos reopen. Additionally, we believe
there may be limitations on the number of visitors allowed into the
properties at any given time. To accommodate the reduced gaming
capacity and lower expected demand upon reopening, we believe Boyd
will choose to slowly bring back its cost structure as its
visitation and revenue increases. This includes taking a measured
approach to labor and marketing, which are two significant costs
that gaming operators can control. If the company's properties
reopen with limited capacity and amenities, we believe it will
staff them accordingly and slowly increase its labor pool as
additional capacity and demand warrants. We also expect operators
to be judicious with their promotions and marketing initially,
especially if capacity is limited. In addition, we believe they may
target their offers during peak times for their highest-value
customers to generate the greatest amount of cash flow possible
from their limited capacity and offer other lower-value customers
incentives to come during slower times."
S&P said, "Given its negative EBITDA while its properties remain
closed and our expectation for a slow recovery after reopening, we
believe Boyd's property-level EBITDAR could fall by more than 80%
this year and lead to a significant spike in its leverage. Under
our third-quarter reopening scenario (under which the majority of
its portfolio reopens and it begins to recover in the second half
of 2020), we believe Boyd's adjusted leverage would improve to the
low-7x area in 2021. Under our assumptions, we expect that Boyd's
recovery will be protracted and predict it takes multiple years for
its EBITDA to recover to pre-pandemic levels."
S&P's base-case scenario assumes the following for 2021:
-- Total net revenue is 10%-20% below 2019 levels. S&P assumes
Boyd's Midwest and South revenue recovers the fastest and is about
10% below 2019 levels because they cater to local and regional
customers. S&P assumes the Las Vegas locals properties generate
revenue that is between 15% and 20% lower than 2019 levels. The
rating agency expects the downtown Las Vegas segment, the smallest
of Boyd's regions, to experience the slowest recovery. This is
because many of its customers fly to Las Vegas from Hawaii and
there will be an additional resort opening downtown in late 2020 or
early 2021, which could further reduce the visitation and spending
at its properties. Therefore, S&P assumes Boyd's downtown Las Vegas
revenue is up to 40% below 2019 levels;
-- S&P assumes the company's margins recover significantly in 2021
relative to 2020 but remain somewhat depressed when compared with
2019 levels because of weaker demand and potential challenges in
appropriately managing its expense base due to the uncertain and
potentially volatile demand. S&P expect the company's margins to
recover faster in the Midwest and South segment given the rating
agency's assumption that the company's gaming revenue from these
regional markets recovers faster;
-- This translates into property-level EBITDAR of between 20% and
30% below 2019 levels;
-- S&P assumes corporate expenses increase over reduced 2020
levels but remain below 2019 levels;
-- Rent expense under Boyd's master lease is about $100 million in
2021;
-- This translates into EBITDA of $500 million-$550 million or
about 30%-35% lower than in 2019; and
-- Boyd focuses on maintenance capital projects and does not pay a
dividend or repurchase shares in 2021. Therefore, despite S&P's
slow assumed revenue and EBITDA recovery, the company generates
positive discretionary cash flow that it believes it will use to
repay debt to improve its leverage (as it has in recent years) and
return to its targeted leverage level of between 4x and 5x as
quickly as possible.
Boyd should have ample liquidity to weather a prolonged shutdown.
Boyd will lose a sizable amount of cash flow due to the temporary
closure of its casinos. In addition, the duration of the closures
remains uncertain at this time and, in some cases, could last for
an extended period. S&P believes the company has sufficient
liquidity in the form of cash balances to cover its estimated
monthly cash burn through at least the end of the year amid a zero
revenue environment. Management has significantly reduced the
company's average monthly cash requirement to about $60 million.
Boyd's cash requirements include operating and corporate expenses,
rent expense, debt service, and modest levels of maintenance
capital expenditure (capex). Following the property closures, Boyd
aggressively reduced its operating expenses by furloughing most of
its property and corporate staff in mid-April, implementing salary
reductions for its remaining employees, and eliminating its board
compensation. The company also suspended all of its major capital
projects, which reduced its expected capex to about $45 million for
the remaining nine months of 2020. The company also suspended its
dividend and share repurchase program.
As of March 31, 2020, Boyd had available cash of $831 million,
which includes its draw down of the remaining $670 million of
availability under its revolver in mid-March.
S&P said, "Incorporating the expected expenses for it to resume
operations and the required cage cash at opening, we believe the
company has sufficient liquidity to withstand a zero revenue
environment through the end of 2020 if its casinos remain closed
for longer than we currently assume. The proposed note issuance
will further lengthen that runway by providing Boyd with an
additional approximately eight months of liquidity."
Environmental, social, and governance (ESG) credit factors for this
credit rating change
-- Health and safety
The negative outlook reflects Boyd's very high anticipated leverage
in 2020 and the elevated degree of uncertainty in our updated
base-case scenario around the extent of the pandemic and the
related recession's effect on the company's performance.
S&P said, "We could lower our ratings on Boyd if we no longer
believe the coronavirus will be contained by the middle of 2020,
preventing Boyd from reopening its casinos in the second half of
2020, or if its recovery is weaker than we currently assume such
that its leverage and liquidity are weaker than we currently
forecast. In addition, we could lower our ratings if we no longer
believe Boyd's leverage will recover and improve below 7.5x in
2021."
"It is unlikely that we would revise our outlook on Boyd to stable
over the next year given the high degree of uncertainty around when
the coronavirus will be contained and how long it will take for the
company's casino visitation, gaming revenue, and cash flow to
recover. Prior to revising the outlook, Boyd's portfolio of
properties would need to reopen and we would need to assess
customer demand upon reopening, including the response to likely
social distancing measures and other operational changes concerning
health and safety and how plausible our assumed recovery path is in
light of that demand. If we believe the pace of Boyd's recovery
will allow it to more quickly reduce its leverage below our 7.5x
downgrade threshold in 2021, we could revise the outlook to stable.
Given our forecast credit measures over the next two years, we
believe an upgrade is unlikely. However, if Boyd's cash flow
recovers faster than we currently assume and we anticipate that it
can sustain leverage of less than 6x, we could consider raising our
ratings."
BOYNE USA: S&P Alters Outlook to Negative, Affirms 'B' ICR
----------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Boyne
USA Inc. and revised the outlook to negative from stable.
S&P is revising its recovery rating on the company's second-lien
notes to '4' from '3' with a weighted average recovery of 40% due
to lower recovery prospects for lenders from the proposed
incremental secured debt in the capital structure. However, S&P is
affirming the 'B' issue level rating on the company's existing
second-lien senior secured notes pro forma for the proposed
incremental $100 million notes because the '4' recovery rating
results in an issue-level rating the same as the 'B' issuer credit
rating.
The COVID-19 pandemic and U.S. recession will likely reduce Boyne's
cash flow and elevate its leverage in 2020 and 2021, but S&P
affirmed the 'B' issuer credit rating reflecting its base case
assumption that the company's leverage, which is above its 7x
downgrade threshold in 2020 improves to the high-6x range in 2021.
As a result of COVID-19 related closures over the next several
months, and the anticipated recession this year, S&P believes that
Boyne could experience revenue declines of 20% to 25% in 2020. The
rating agency assumes the company's resorts are able to open
sometime in the second half of 2020, and revenue will increase in
the 15% area in 2021 compared to 2020 as the direct effects of
pandemic-related closures are no longer reflected in the company's
financial performance. However, S&P's base case assumes revenue in
2021 is below 2019 levels by the low-single-digits percentage area
because of decreased skier visitation. In addition, the company
will have significant cash balances above $200 million pro forma
for the proposed notes issuance as of March 2020, which S&P
believes will provide ample liquidity to cover the company's
anticipated cash burn for the remainder of 2020. S&P assumes
resorts are closed from mid-March to the start of the 2020-2021 ski
season in the fourth quarter 2020, and the company burns more cash
than is typical during the period, resulting in negative operating
cash flow in 2020. S&P assumes resorts are open starting in the
2020-2021 ski season and the company returns to positive operating
cash flow in 2021.
The negative outlook reflects significant uncertainty in the
company's revenue and cash flow during its 2020-2021 ski season,
and the possibility that leverage could increase above S&P's 7x
downgrade threshold. Under S&P's current base case for leverage
to improve in 2021 and significant anticipated cash balances pro
forma for the proposed notes issuance, it is unlikely that the
rating agency would lower the 'B' issuer rating. However, the
COVID-19 pandemic and U.S. recession will likely reduce Boyne's
cash flow and elevate its leverage for the remainder of 2020 and
into the first half of 2021 compared to prior years. Nevertheless,
S&P's current assumption for a moderate economic and travel
recovery beginning sometime in the second half of 2020 could
mitigate the impact to the 2020-2021 winter season. Depending on
the depth and longevity of restrictions and closures of out-of-home
consumer entertainment, and the recession, the range of outcomes
may vary widely for revenue, EBITDA, and leverage. S&P's assumption
is that stay-at-home orders in many regions of the U.S. will be
lifted before the company's 2020-2021 winter ski season. However,
if there is a second wave of infections in the latter part of 2020,
it could result in closures of some of Boyne's resorts.
Additionally, depending on the path of recovery in the second half
of 2020, consumers may remain averse to travel, which could weaken
demand at the company's destination resort Big Sky, which S&P
believes has historically accounted for 20% to 25% of Boyne's total
revenue. If S&P believes weaker-than-expected demand will cause the
company to sustain leverage above the 7x area, the rating agency
could lower the rating.
S&P believes that Boyne's reduction in its leverage in 2019 prior
to the crisis, its good first quarter 2020 (ending March), as well
as its portfolio of primarily drive-to resorts, positions the
company to weather the COVID-19 pandemic and anticipated recession.
The company's lease-adjusted debt-to-EBITDA ratio was in the
high-4x area at the end of 2019 compared to just above 5x in 2018.
However, S&P believes the company's concentration in its Big Sky
resort could hurt Boyne's revenue, EBITDA, and cash flow if the
current travel downturn is prolonged. This concentration is
partially offset by the company's regional drive-to resorts, which
S&P believes account for 75% to 80% of the company's revenue. S&P
believes the anticipated recession and remaining consumer concerns
around COVID-19 will result in reduced air travel for the remainder
of calendar 2020. As a result, S&P believes that visitation to
regional and local drive-to ski resorts may not experience declines
to the same extent as destination ski resorts during the 2020-2021
ski season. As a result, S&P believes that Boyne's drive-to resorts
may not face as steep of a decline in skier visitations as
destination resorts.”
Environmental, Social, and Governance (ESG) credit factors for this
credit rating change:
-- Health and safety factors
The negative outlook reflects weak anticipated leverage in 2020 and
through the first half of 2021 compared to S&P's 7x downgrade
threshold due to property closures and its expectation that a
recessionary environment and consumer concerns around COVID-19 may
result in decreased ski visitation and consumer spending. While S&P
currently assumes leverage improves to the high-6x area in 2021,
ratings could be pressured if ski visitation remains low or
mountain closures extend or reoccur during the 2020-2021 winter
season.
"We could lower our rating if lease-adjusted debt to EBITDA is
sustained above the 7x area. This could occur because of materially
lower skier visitation in the second half of 2020 or earlier half
of 2021, or an extension or resumption in resort closures in the
latter half of 2020 and early 2021," S&P said.
"We could revise the outlook to stable once we are more certain
that resorts will be fully operational through the 2020-2021 winter
season and that leverage can be sustained below the 7x area. While
unlikely at this time, we could consider an upgrade if we believe
the company could sustain lease-adjusted debt to EBITDA below 5x,"
the rating agency said.
BRIGHT MOUNTAIN: Delays Filing of Quarterly Report Over COVID-19
----------------------------------------------------------------
Bright Mountain Media, Inc., has determined that due to
circumstances and uncertainty surrounding the effects of the
outbreak of the coronavirus (COVID-19) on the Company, the Company
will delay the filing of its quarterly report on Form 10-Q for the
fiscal quarter ended March 31, 2020 by up to 45 days in accordance
with the SEC's March 25, 2020 Order (Release No. 34-88465). The
Order allows for the delay of certain filings required under the
Securities and Exchange Act of 1934, as amended.
Bright Mountain said, "The Company's operations and business have
experienced disruptions due to the unprecedented conditions
surrounding the spread of COVID-19 throughout the United States and
the rest of the world. These disruptions include office closure
and the non-availability of key Company personnel required to
prepare the Quarterly Report due to suggested, and mandated, social
quarantining and work from home orders. Due to these disruptions,
the Company is unable to timely prepare and review its financial
statements and Quarterly Report. The Company anticipates that it
will file its Quarterly Report by no later than June 29, 2020, 45
days after the original due date of its Quarterly Report."
In addition, the Company will be supplementing the risk factors
previously disclosed in the Company's Annual Report on Form 10-K
for the year ended Dec. 31, 2019 with the following risk factor,
subject to adjustments reflecting any change in circumstances as of
the filing date:
"Our financial performance and operating results may be materially
and adversely affected by the outbreak of the novel coronavirus
("COVID-19").
"The recent global outbreak of COVID-19 has had an unfavorable
impact on our business operations. The COVID-19 pandemic has
caused disruptions in the services we provide. In addition, the
COVID-19 pandemic has resulted in many states and countries
imposing orders resulting in the closure of non-essential
businesses – including many companies which advertise digitally
We cannot foresee whether the outbreak of COVID-19 will be
effectively contained, nor can we predict the severity and duration
of its impact on our business and our financial results. If the
outbreak of COVID-19 is not effectively and timely controlled, our
business operations, financial condition, and liquidity may be
materially and adversely affected as a result of prolonged
disruptions in consumer spending, a lack of demand for our
services, and other factors that we cannot foresee. The extent to
which COVID-19 will impact our business and our financial results
will depend on future developments which are highly uncertain and
cannot be predicted."
About Bright Mountain
Based in Boca Raton, Fla., Bright Mountain Media, Inc. --
http://www.brightmountainmedia.com/-- is a digital media holding
company whose primary focus is connecting brands with consumers as
a full advertising services platform. Bright Mountain Media's
assets include an ad network, an ad exchange platform and 24
websites which are customized to provide its niche users, including
active, reserve and retired military, law enforcement, first
responders and other public safety employees with products,
information and news that the Company believes may be of interest
to them.
Bright Mountain reported a net loss of $3.40 million for the year
ended Dec. 31, 2019, compared to a net loss of $5.22 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$80.46 million in total assets, $12.96 million in total
liabilities, and $67.49 million in total shareholders' equity.
EisnerAmper LLP, in Iselin, New Jersey, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
May 14, 2020, citing that the Company has experienced recurring net
losses, cash outflows from operating activities, and has an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
BRIGHT MOUNTAIN: Incurs $3.40 Million Net Loss in 2019
------------------------------------------------------
Bright Mountain Media, Inc. reported a net loss of $3.40 million on
$6.99 million of revenues for the year ended Dec. 31, 2019,
compared to a net loss of $5.22 million on $1.74 million of
revenues for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had $80.46 million in total
assets, $12.96 million in total liabilities, and $67.49 million in
total shareholders' equity.
Net cash used in operating activities totaled $2,669,726 and
$3,970,013 for 2019 and 2018, respectively. During 2019, the
Company used cash primarily to fund its net loss of $3,402,023 for
the period as well as increases in prepaid expenses and expansion
plans. Cash used during 2018 was used primarily to fund its net
loss of $5,224,064 during the period.
Net cash provided by investing activities totaled $697,546 in 2019
as compared to net cash provided by investing activities of $13,970
for 2018. During 2019, cash was acquired in the acquisitions of
S&W and MediaHouse of $716,989. Cash used included the purchase of
fixed assets in 2019 and 2018 of $0 and $15,183.
Net cash provided by financing activities totaled $1,902,692 and
$4,919,312 during 2019 and 2018, respectively. In both periods,
cash was provided from the sale of the Company's securities, net of
repayments of debt obligations and the payable of cash dividends on
its Series E and F convertible preferred stock to related parties.
As of Dec. 31, 2019, the Company had a balance of cash and cash
equivalents of $957,013 and negative working capital of $6,384,412
as compared to cash and cash equivalents of $1,042,457 and working
capital of $881,949 at Dec. 31, 2018. The Company is in
discussions with various vendors to settle balances due for common
stock and/or common stock warrants as opposed to cash.
The Company's current assets increased approximately $3,299,000 or
233% at Dec. 31, 2019 from Dec. 31, 2018 which reflects the
substantial increase in its accounts receivable, current portion of
notes receivable, and increases in its prepaid expenses primarily
attributable to the two acquisitions during 2019, offset by a
decrease in assets of discontinued operations. The Company's
current liabilities increased approximately $10,566,000 or 664% at
Dec. 31, 2019 from Dec. 31, 2018 which primarily reflects an
increase of approximately $7,703,000 or 1,173% in accounts payable
and a $2,763,000 or 577% increase in accrued expenses, and
approximately $212,000 of the new right of use lease liability,
offset by a decrease of liabilities associated with discontinued
operations of approximately $143,000.
During 2019 the Company raised net proceeds of $1,644,480 through
the sale of its securities in private placements, as well as an
additional $600,000 through the sale of preferred stock to its
chief executive officer. During 2020 the Company has raised an
additional $3,001,250 in net proceeds through the sale of its
securities via a private placement memorandum which includes one
share and one stock warrant. The Company issued 6,002,500 shares
and 6,002,500 warrants in the transactions. $1,156,187 of the net
proceeds raised in 2019 were loaned to Inform, Inc. under the terms
of a 6% promissory note in advance of the MediaHouse acquisition.
The Company used the remaining net proceeds to fund its operating
losses during 2019.
"Our operations do not provide sufficient cash to pay our cash
operating expenses and we have historically been dependent upon
loans and equity purchases from Mr. Speyer and third-party
investors to provide sufficient funds for our operations. During
2019, we were also materially dependent upon the capital raised in
the private placements. If we are unable to increase our revenues
to a level which provides sufficient funds to pay our operating
expenses without relying upon loans and equity purchases from
related parties or third party investment capital, our ability to
continue to as a going concern are in jeopardy. We expect that we
will need to raise an additional $ 5,000,000 in capital during 2020
for use in our operations and acquisitions. We are discussing
capital raise options with various investment firms to achieve this
objective. Any delay in raising sufficient funds will delay the
continued implementation of our business strategy and could
adversely impact our ability to significantly increase our revenues
in future periods. In addition, if we are unable to raise the
necessary additional working capital, absent a significant increase
in our revenues, of which there is no assurance, we will be unable
to continue to grow our company and may be forced to reduce certain
operating expenses in an effort to conserve our working capital."
EisnerAmper LLP, in Iselin, New Jersey, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
May 14, 2020, citing that the Company has experienced recurring net
losses, cash outflows from operating activities, and has an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
A full-text copy of the Annual Report is available for free at the
Securities and Exchange Commission's website at:
https://is.gd/P4Wq7F
About Bright Mountain
Based in Boca Raton, Fla., Bright Mountain Media, Inc. --
http://www.brightmountainmedia.com/-- is a digital media holding
company whose primary focus is connecting brands with consumers as
a full advertising services platform. Bright Mountain Media's
assets include an ad network, an ad exchange platform and 24
websites which are customized to provide its niche users, including
active, reserve and retired military, law enforcement, first
responders and other public safety employees with products,
information and news that the Company believes may be of interest
to them.
BRINK'S CO: S&P Cuts ICR to 'BB' on Delayed Deleveraging
--------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating on Richmond,
Va.-based The Brink's Co. to 'BB' from 'BB+' and its issue-level
rating on the unsecured notes due 2027 to 'BB-' from 'BB'. S&P's
'5' recovery rating is unchanged.
As a result of COVID-19 and the recent G4S acquisitions, funds from
operations (FFO) to debt will remain below 20% until 2022. The
temporary closure of nonessential retail businesses to limit the
spread of COVID-19 has had a meaningful impact on the majority of
Brink's customer base globally. Service volume reductions since
mid-March resulted in a 4% revenue and 28% EBITDA decline in the
first quarter of 2020. Additionally, Brink's is beginning to
experience increased headwinds from unfavorable foreign exchange
(FX) translation impacts due to capital flight to quality and
resulting strengthening of the U.S. dollar. The company now expects
organic revenue to decline by around 25% in the second quarter of
2020, and a meaningfully higher contraction in EBITDA due to
reduced operating efficiency. Additionally, given the uncertainty
about how long pandemic-related restrictions will be in place and
the pace of business re-openings once these social distancing
restrictions are relaxed, S&P now forecasts organic revenue to
declines throughout the balance of the year, although with a
decreasing impact as the year progresses, with a full year organic
revenue decline around 13%. Furthermore, decreased volumes and
operating efficiency, increased cash restructuring, and integration
charges due to both reorganizing and integration costs related to
the recent G4S cash solutions business acquisitions, will likely
result in EBITDA margins declining to the low-double-digit area,
leverage rising above 7x, and FFO to debt falling below 10% in
2020. S&P expects performance to improve in 2021, with organic
revenue growth rates of at least 5%, and better profitability due
to regained operating leverage, decreasing restructuring costs, as
well as some synergies benefits from recent acquisitions to result
in EBITDA margins recovering back to about 16%.
Despite S&P's view that the gradual easing of COVID-19 restrictions
will support credit measures in 2021, uncertainties about the pace
of the business rebound cloud its revenue forecast back to
pre-pandemic levels. The current recession is likely to result in
reduced spending levels in the consumer discretionary end market
and economic activity in general, leading to many retailers
reducing their physical footprints or going out of business
entirely, and resulting in demand for Brink's services not reaching
pre-COVID levels until at least 2022 or later. Additionally,
consumer behavioral shifts resulting from social distancing
requirements could lead to an acceleration in the use of cashless
transaction, as more people are forced to sign up for debit or
credit cards, online banking, or other digital payment solutions to
shop online or access their savings or paychecks. Some fintech
start-ups and online-only banks are using the current environment
to aggressively build their customer base, and will likely target
unbanked or cash-based countries given the high opportunity. That
said, recessions have historically led to increased use of cash due
to constrained consumer credit, which could offset near-term
headwinds.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
S&P Global Ratings acknowledges a high degree of uncertainty about
the rate of spread and peak of the coronavirus outbreak.
"Some government authorities estimate the pandemic will peak about
midyear, and we are using this assumption in assessing the economic
and credit implications. We believe the measures adopted to contain
COVID-19 have pushed the global economy into recession. As the
situation evolves, we will update our assumptions and estimates
accordingly," S&P said.
The stable outlook reflects S&P's expectations that following
weakness in 2020 due to the COVID-19 outbreak, revenue and EBITDA
should continue to gradually recover in 2021, resulting in FFO to
debt in the mid-to-high-teens and leverage around 4x.
S&P could lower the ratings on Brink's should it expect FFO to debt
below 10% or leverage above 5x on a sustained basis, which could
result from:
-- A continued weak macroeconomic environment or structural shifts
in demand patterns resulting in continued revenue and profitability
shortfalls;
-- Difficulty in integrating acquisitions, incurring unforeseen
customer losses, or other operational missteps that lead to a
prolonged contraction in its profitability;
-- Further large debt-funded acquisitions leading to
higher-than-expected level of debt; and
-- A more aggressive financial policy that includes debt-funded
share repurchases.
"We could raise the rating should demand for Brink's services
demonstrate a faster-than-anticipated recovery in the second half
of 2020 and early 2021 result in healthy organic revenue growth
rates and improved profitability leading to FFO to debt improving
beyond 20%. Under such a scenario we would also expect to see
Brink's demonstrate solid execution on its integration of G4S' cash
solutions business and implementation of planned cost
improvements," S&P said.
CAREVIEW COMMUNICATIONS: Incurs $2.9M Net Loss in First Quarter
---------------------------------------------------------------
Careview Communications, Inc., reported a net loss of $2.94 million
on $1.71 million of net revenues for the three months ended March
31, 2020, compared to a net loss of $3.07 million on $1.47 million
of net revenues for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $6 million in total assets,
$100.66 million in total liabilities, and a total stockholders'
deficit of $94.66 million. The Company's cash position at March
31, 2020 was approximately $589,000
Careview stated, "We anticipate that our current resources, along
with cash generated from operations, will not be sufficient to meet
our cash requirements throughout the evaluation period, including
funding anticipated losses and scheduled debt maturities. We
expect to seek additional funds from a combination of dilutive
and/or nondilutive financings in the future. Because such
transactions have not been finalized, receipt of additional funding
is not considered probable under current accounting standards. If
we do not generate sufficient cash flows from operations and obtain
sufficient funds when needed, we expect that we would scale back
our operating plan by deferring or limiting some, or all, of our
capital spending, reducing our spending on travel, and/or
eliminating planned headcount additions, as well as other cost
reductions to be determined. Because such contingency plans have
not been finalized (the specifics would depend on the situation at
the time), such actions also are not considered probable for
purposes of current accounting standards. Because, under current
accounting standards, neither future cash generated from operating
activities, nor management's contingency plans to mitigate the risk
and extend cash resources through the evaluation period, are
considered probable, substantial doubt is deemed to exist about the
Company's ability to continue as a going concern. As we continue
to incur losses, our transition to profitability is dependent upon
achieving a level of revenues adequate to support its cost
structure. We may never achieve profitability, and unless and
until doing so, we intend to fund future operations through
additional dilutive or non-dilutive financings. There can be no
assurances, however, that additional funding will be available on
terms acceptable to us, if at all. Because, under current
accounting standards, neither future cash generated from operating
activities, nor management's contingency plans to mitigate the risk
and extend cash resources through the evaluation period, are
considered probable, substantial doubt is deemed to exist about the
Company's ability to continue as a going concern through May 15,
2021."
Careview added, "The Company has considered the effects of COVID-19
in the preparation of the financial statements as of and for the
period ended March 31, 2020. We have been able to continue
providing services to our current customer base and have not
experienced a slowdown in collections. However, the continued
shelter-in-place orders have limited our ability to install
currently contracted units as well as make sales visits to existing
and potential customers and market our new Gen-5 product.
"The full impact of the COVID-19 outbreak continues to evolve. As
such, it is uncertain as to the full magnitude that the pandemic
will have on the Company's financial condition, liquidity, and
future results of operations. Management is actively monitoring
the global situation on its financial condition, liquidity,
operations, industry, and workforce. Although the Company cannot
estimate the length or gravity of the impact of the COVID-19
outbreak at this time, if the pandemic continues, it may have an
adverse effect on the Company's results of future operations,
financial position, and liquidity in fiscal year 2020."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/2mXaS6
About CareView Communications
CareView Communications, Inc. -- http://www.care-view.com/-- is a
provider of products and on-demand application services for the
healthcare industry, specializing in bedside video monitoring,
software tools to improve hospital communications and operations,
and patient education and entertainment packages. Its proprietary,
high-speed data network system is the next generation of patient
care monitoring that allows real-time bedside and point-of-care
video monitoring designed to improve patient safety and overall
hospital costs. The entertainment packages and patient education
enhance the patient's quality of stay. CareView is dedicated to
working with all types of hospitals, nursing homes, adult living
centers and selected outpatient care facilities domestically and
internationally. The Company's corporate offices are located at
405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067.
Careview Communications reported a net loss of $14.14 million for
the year ended Dec. 31, 2019, compared to a net loss of $16.08
million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the
Company had $5.29 million in total assets, $97.03 million in total
liabilities, and a total stockholders' deficit of $91.74 million.
BDO USA, LLP, in Dallas, Texas, the Company's auditor since 2010,
issued a "going concern" qualification in its report dated March
30, 2020, citing that the Company has suffered recurring losses
from operations and has accumulated losses since inception that
raise substantial doubt about its ability to continue as a going
concern.
CBL & ASSOCIATES: Fitch Affirms 'CC' IDR, Then Withdraws Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the ratings of CBL &
Associates Properties, Inc. and its operating partnership.
The ratings were withdrawn with the following reason: For
Commercial Purposes.
KEY RATING DRIVERS
The affirmation of the 'CC' Issuer Default Ratings reflects Fitch's
belief that an event of default or an exchange/restructuring of
existing debt is probable within 12 months.
RATING SENSITIVITIES
Rating sensitivities are no longer relevant as the ratings have
been withdrawn.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
CBL & Associates Limited Partnership
- LT IDR CC; Affirmed
- LT IDR WD; Withdrawn
- Senior unsecured; LT CC; Affirmed
- Senior unsecured; LT WD; Withdrawn
- Senior secured; LT CCC+; Affirmed
- Senior secured; LT WD; Withdrawn
CBL & Associates Properties, Inc.
- LT IDR CC; Affirmed
- LT IDR WD; Withdrawn
- Preferred; LT C; Affirmed
- Preferred; LT WD; Withdrawn
CENTRIC BRANDS: Case Summary & 30 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: Centric Brands Inc.
f/k/a Differential Brands Group Inc.
f/k/a Joe's Jeans Inc.
f/k/a Innovo Group Inc.
350 Fifth Avenue
New York, NY 10018
Business Description: Centric Brands --
https://www.centricbrands.com --
designs, produces, merchandises, manages
and markets kidswear, accessories, and
men's and women's apparel under owned,
licensed and private label brands.
Currently, the Debtors license over
100 brands, including AllSaints, BCBG,
Buffalo, Calvin Klein, Disney, Frye,
Herve Leger, Jessica Simpson, Joe's,
Kate Spade, Kenneth Cole, Marvel,
Michael Kors, Nautica, Nickelodeon,
Spyder, Timberland, Tommy Hilfiger,
Under Armour, and Warner Brothers.
The Debtors sell licensed products
through both retail and wholesale
channels.
Chapter 11 Petition Date: May 18, 2020
Court: United States Bankruptcy Court
Southern District of New York
Thirty-five affiliates that concurrently filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Centric Brands Inc. (Lead Debtor) 20-22637
Added Extras LLC 20-22638
American Marketing Enterprises Inc. 20-22639
Briefly Stated Holdings, Inc. 20-22640
Briefly Stated Inc. 20-22641
Centric Bebe LLC 20-22644
Centric Brands Holding LLC 20-22645
DBG Holdings Subsidiary Inc. 20-22652
DBG Subsidiary Inc. 20-22653
DFBG Swims, LLC 20-22654
F&T Apparel LLC 20-22655
Centric Accessories Group LLC 20-22642
Centric Beauty LLC 20-22643
Centric Denim Retail LLC 20-22646
Centric Denim USA, LLC 20-22647
Centric Jewelry Inc. 20-22648
Centric Socks LLC 20-22649
Centric West LLC 20-22650
Centric-BCBG LLC 20-22651
Centric-BCBG Retail LLC 20-22636
HC Acquisition Holdings, Inc. 20-22656
Hudson Clothing, LLC 20-22658
Hudson Clothing Holdings, Inc. 20-22657
Innovo West Sales, Inc. 20-22659
KHQ Athletics LLC 20-22660
KHQ Investment LLC 20-22661
Lotta Luv Beauty LLC 20-22662
Marco Brunelli IP, LLC 20-22663
RG Parent LLC 20-22664
RGH Group LLC 20-22665
Robert Graham Designs, LLC 20-22666
Robert Graham Holdings, LLC 20-22667
Robert Graham Retail LLC 20-22668
Rosetti Handbags and Accessories, Ltd. 20-22669
VZI Investment Corp. 20-22670
Judge: Hon. Sean H. Lane
Debtors' Counsel: Gregg M. Galardi, Esq.
Cristine Pirro Schwarzman, Esq.
Daniel G. Egan, Esq.
Emily Kehoe, Esq.
ROPES & GRAY LLP
1211 Avenue of the Americas
New York, New York 10036-8704
Tel: (212) 596-9000
Fax: (212) 596-9090
Email: Gregg.Galardi@ropesgray.com
Cristine.Schwarzman@ropesgray.com
Daniel.Egan@ropesgray.com
Emily.Kehoe@ropesgray.com
Debtors'
Investment
Banker: PJT PARTNERS, INC.
Debtors'
Financial
Advisor: ALVAREZ & MARSAL, LLC
Debtors'
Notice,
Claims &
Balloting
Agent: PRIME CLERK LLC
https://cases.primeclerk.com/centricbrands
Total Assets as of March 31, 2020: $1,855,722,808
Total Debts as of March 31, 2020: $2,014,385,923
The petition was signed by Anurup Pruthi, chief financial officer.
A copy of Centric Brands' petition is available for free at
PacerMonitor.com at:
https://is.gd/Lt0ZqE
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Peter Kim Convertible Note $9,794,774
Address on File
2. Product Development Trade Payable $9,534,881
Partners Limited
Jason Kra
1/F Hong Kong Spinners
Industrial Building
Phases I & II, 800 Cheung Sha
Wan Road
Lai Chi Kok
Hong Kong
Tel: 6469438510
Email: jasonkra@frcny.net
3. Caite International Limited Trade Payable $9,112,955
Attn: President or General Counsel
Rm. 204, No.47, SEC.3
Chung Shan N.Rd
Taipei, TPE 10461
Taiwain
Tel: 225-961-551
Fax: 225-961-580
Email: chao@caiteintl.com
4. Jiangsu Guotai Guosheng Trade Payable $9,078,243
Co., Ltd.
Attn: President or General Counsel
Block A, Guotai Times Square
No. 65 Renmin Middle Rd.
Yangshe Town
Zhangjiagang, Jiangsu, 215600
China
Tel: +86-51258696705
5. U.S. Customs and Boarder Trade Payable $8,785,243
Protection
Scott A. Falk
1300 Pennsylvania Ave. NW
Washington, DC 20229
Tel: (202) 344-2940
Email: cbpserviceintake@cbp.dhs.gov
6. Port Logistics Group Trade Payable $6,906,854
Jess Wolpov, CEO
288 Mayo Ave
City of Industry, CA 91789
Tel: (201) 702-1500
Fax: (973) 249-7324
Email: jwolpov@portlogisticsgroup.com
7. Salesforce.com, Inc. Trade Payable $5,364,896
Erin Schwab
415 Mission Street,
3rd Floor
San Francisco, CA 94105
Tel: (610) 517-6401
Email: eschwab@salesforce.com
8. Taieasy International Co., Ltd. Trade Payable $5,359,030
Attn: President or General Counsel
12F, No. 1, Jihu Road
Taipei, TPE 00114
Taiwan
Tel: 882929956
9. Angel Garment Ltd. Trade Payable $4,662,677
Attn: President or General Counsel
Room 905-907, 9/F, Tower 1
Kowloon, KLN
Hong Kong
Tel: 22511150
Fax: 23760580
Email: accounts@anglegarment.com
10. Uni-Eastern Sportswear Trade Payable $4,381,529
Mfg, Ltd.
Attn: President or General Counsel
2F, No. 16, Lane 35
Ji-Hu Road
Taipei, TPE
Taiwan
Tel: 886-2-26599222
Fax: 886-2-265-99197
Email: uetaiwan@ms17.hinet.net
11. Fast Sky Holdings Limited Trade Payable $4,379,068
Attn: President or General Counsel
Tel: 430-436 Nathan Rd
Yaumatei, Hong Kong
Email: shine@fastsky.com.cn
12. Jiangsu GTIG Eastar Co., Ltd. Trade Payable $4,280,926
Attn: President or General Counsel
23-29FL Guotai New Century Plaza
ZhangJiagang, 100
China
Tel: 51258696053
Fax: 50258681458
13. Shinsung Tongsang Co. Ltd. Trade Payable $3,984,958
Attn: President or General
Counsel
Shinsung Bldg. 84
Seoul, 11 134822
Korea
Tel: 50581814977
Fax: 264880155
Email: hongsh@ssts.co.kr
14. Texport Industries Trade Payable $3,760,525
Private Limited
Attn: President or General Counsel
No. 153, 3rd Cross, 5th Main
Bangalore, KA 560058
Tel: 8022894700
Fax: 8027630500
Email: abhinavijayram@raymondindia.com
15. Paul Cardenas Convertible Note $3,767,224
Address on File
16. 1724982 Alberta ULC Licensor $3,667,263
Gabriel Bitton
400 Sauve West
Montreal, QC H3L 1Z8
Canada
Tel: (514)388-3551
Fax: (514)388-1972
Email: gaby@buffalojeans.com
17. Jiangsu Guotai Litian Trade Payable $3,490,366
Enterprises
Attn: President or General Counsel
15-23th Floor, Guotai Building
Zhangjiagang, 100 215600
China
Tel: 51258696693
Fax: 51280170399
Email: leon@gtigtex.com
18. Fireman Capital CPF Convertible Note $3,442,877
Hudson Co-Invest LP
Russell Kazorek
800 South Street
Suite 600
Waltham, MA 02453
Tel: (617) 421-1724
Email: russell.kazorek@firemancapital.com
19. Performance Team, LLC Trade Payable $3,183,744
Craig Kaplan, Founder
PO Box 514670, Dept. 710034
Los Angeles, CA 90051-4670
Tel: (310) 702-1500
Fax: 5627412500
Email: ar-remittance@performanceteam.net
20. Costuras Y Manufacturas de Trade Payable $3,134,513
Tlaxcala
Attn: President or General Counsel
Agustin Melgar No. 512
San Lorenzo
Tehuacan 75855
Mexico
Tel: 2223722000
Fax: 2222810102
21. BCBG IP Holding LP Licensor $3,002,270
Michael Neuman
50 West 57th Street
5th Floor
New York, NY 10019
Tel: 646-494-8477
Email: mneuman@marqueebrands.com
22. Rainbow Textiles LLC Trade Payable $2,884,956
Attn: President or General Counsel
Plott 25 Al-Dulayl Industrial Park
Amman 13136
Jordan
Tel: 53825801
Fax: 53825805
Email: rainbow@go.com.jo
23. Kai Ning Leather Trade Payable $2,865,586
Products Co., Ltd.
Attn: President or General Counsel
RM 2703 27/F Billion Plz
8 Cheung Yue St. Cheung Sha
Wan, Hong Kong
Tel: 0852-2264820
Email: vincent_law@kainingltd.com
24. Jiangsu Guotai Trade Payable $2,664,483
International Group Guoma
Attn: President or General
Counsel
15-24F, Guotai Times Plaza
Zhangjiagang, 100 215600
China
Tel: 5128696089
Fax: 5125867963
Email: jane@GTIGGM.COM
25. Ebufang Int'l Trading Trade Payable $2,616,753
Attn: President or General
Counsel
No.2-16 Fa Yuen Street, 10/F
Mongkok, KLN
Hong Kong
Tel: 57587758265
Fax: 57587757880
Email: leowang@ebufang.com.hk
26. Jiangsu Sainty Handsome Trade Payable $2,425,891
Co. Ltd.
Room 207, Building B
21 Software Avenue
Nanjing, China
Tel: 0086-25-52875193
Fax: 0086-25-52875482
Email: lixin_sainty@vip.sina.com;
cinlee@saintycorp.com
27. Trade Harvest Trade Payable $2,315,705
Industrial Limited
Attn: President or
General Counsel
Room 7, 10/F, Premier Centre
Kowloon, KLN
Hong Kong
Tel: 27431083
Fax: 27448311
Email: climas@hangluen.com.hk
28. JP Global Import Inc. Trade Payable $2,281,986
Attn: President or General
Counsel
13 West 36th Street, Ste #300
New York, NY 10018
Tel: (212) 760-2500
Fax: 212-7602-2501
Email: dyoo@ktgroupinc.com
29. XPO Logistics Supply Trade Payable $2,250,343
Chain, Inc.
Erik Caldwell, COO
29559 Network Place
Chicago, IL 60673-1559
Tel: (513) 309-7807
Fax: 8888903874
Email: erik.caldwell@xpo.com
30. Xynergy International Trade Payable $2,009,463
Co., Ltd.
Attn: President or General Counsel
Cheung Yee Street Lai Chi
Kok 4B 2-2F, Sun Cheong Industrial
Building, Hong Kong
Email: gary.ho@xynergy.com.hk
CHINOS HOLDINGS: 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 Chinos Holdings, Inc. and its affiliates.
The committee members are:
1. Simon Properties
226 West Washington Street
Indianapolis, IN 46204
2. First Glory Limited
Flat D, 11/F Ka To Factory Building
2 Cheung Yue Street
Kowloon, Hong Kong
3. United Parcel Services, Inc.
55 Glenlake Parkway, NE
Atlanta, GA 30328
4. Pan Pacific Co. Ltd.
12, Digital – no 31 Gil
Seoul, Korea
5. Brookfield Property REIT, Inc.
350 N. Orleans St., Suite 300
Chicago, IL 60654
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 Chinos Holdings
Chinos Holdings, Inc. designs apparels. It offers clothing for men,
women and children, as well as accessories. Chinos Holdings serves
customers worldwide.
Chinos Holdings, Inc. and its affiliates, including J.Crew Group,
Inc., sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. E.D. Va. Lead Case No. 20-32181) on May 4, 2020.
At the time of the filing, the Debtors disclosed assets of between
$1 billion and $10 billion and liabilities of the same range.
Judge Keith L. Phillips oversees the cases.
The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel; Hunton Andrews Kurth, LLP as local counsel; Lazard Freres
& Co. LLC; Alixpartners, LLP as financial advisor; Hilco Real
Estate, LLC as real estate advisor; KPMG LLP as tax consultant; and
Omni Agent Solutions, LLC as claims, noticing and solicitation
agent and as administrative advisor.
CITRUS HOMES: June 11 Plan Confirmation Hearing Set
---------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, held a hearing to consider approval of the Disclosure
Statement filed by Business Restructuring Solutions, LLC (Plan
Proponent) for Citrus Home Health, Inc., a debtor affiliate of
Integrity Home Health Care, Inc.
On April 30, 2020, Catherine Peek McEwen conditionally approved the
Disclosure Statement and established the following dates and
deadlines:
* Any written objections to the Disclosure Statement shall be
filed with the Court and served on the Local Rule 1007−2 Parties
in Interest List no later than seven days prior to the date of the
hearing on confirmation.
* June 11, 2020, at 3:30 pm in Tampa, FL − Courtroom 8B, Sam
M. Gibbons United States Courthouse, 801 N. Florida Avenue is the
hearing on confirmation of the Plan, including timely filed
objections to confirmation, and objections to the Disclosure
Statement.
* Parties-in-interest will submit to the Clerk's office their
written ballot accepting or rejecting the Plan no later than eight
days before the date of the Confirmation Hearing.
* Objections to confirmation will be filed with the Court and
served on the Local Rule 1007−2 Parties in Interest List no later
than seven days before the date of the Confirmation Hearing.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/y8y6ntq3 from PacerMonitor at no charge.
About Integrity Home Health Care
Integrity Home Health Care, Inc., a provider of home health care
Services, and its affiliates sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 20-00014) on
Jan. 2, 2020. At the time of the filing, the Debtor had estimated
assets of less than $50,000 and liabilities of between $1 million
and $10 million. Judge Catherine Peek McEwen oversees the case.
The Debtors are represented by Jennis Law Firm.
CLARIOS GLOBAL: S&P Rates New $500MM Senior Secured Notes 'B'
-------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '3'
recovery rating on Clarios Global LLC's proposed $500 million in
senior secured notes due 2025. The '3' recovery rating indicates
its expectation for meaningful (50%-70%; rounded estimate: 50%)
recovery for secured lenders in the event of a payment default. The
net proceeds from the issuance will be used to refinance existing
borrowings under its asset-based lending (ABL) and revolving credit
facilities.
The proposed senior secured notes are pari passu with existing
senior secured notes. The notes have a first priority lien on
substantially all assets and stock of the issuers and the
guarantors, excluding ABL collateral, and a second priority lien on
the ABL collateral.
"We believe that additional debt leverage following the proposed
transaction is offset by the increased liquidity and our stable
outlook reflects our view that the company will generate positive
free operating cash flow over the next 12 months. The current
ratings on Clarios also reflect its leading position in the global
lead-acid battery market and the recurring nature of demand for its
nondiscretionary products. At the same time, the company carries an
elevated level of debt," S&P said.
Issue Ratings - Recovery Analysis
Key analytical factors
-- S&P's hypothetical default scenario contemplates a default in
2023 as the company faces issues regarding filling orders and
aggressive competition from new and existing competitors, causing
customers to procure other aftermarket suppliers.
-- S&P believes that if the company were to default, it would
still have a viable business model because of continued demand for
its batteries, its nationwide network of locations, and strong
brand awareness. For this reason, S&P expects the company to
reorganize and emerge as a smaller entity but still with
significant value. In addition, S&P would not expect foreign
operations to be included in the reorganization.
-- S&P has valued the company on an enterprise value basis and
estimated an emergence EBITDA of about $1.2 billion. It applies a
5.5x EBITDA multiple--which is half a turn above what it uses for
most auto suppliers--to arrive at a gross enterprise value of $6.6
billion at emergence. S&P chooses a higher multiple to reflect
Clarios' stronger business risk profile compared with peers. The
company, in S&P's view, is positioned to benefit from the growing
demand for electric vehicles, which rely more on advanced batteries
that have higher margins.
Simulated default assumptions
-- Simulated year of default: 2023
-- EBITDA at emergence: $1203 million
-- EBITDA multiple: 5.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $6.284
billion
-- Valuation split (obligors/nonobligors): 84%/16%
-- Priority claims: $1.3 billion
-- Value available to first-lien debt claims
(collateral/noncollateral): $4.628 billion/$0
-- Secured first-lien debt claims: $9.700 billion
-- Recovery expectations: 50%-70%; rounded estimate: 50%
-- Total value available to unsecured claims: $352 million
-- Senior unsecured debt/pari passu unsecured claims: $2.033
billion/$7.165 million
-- Recovery expectations: 0%-10%; rounded estimate: 0%
Note: All debt amounts include six months of prepetition interest.
Collateral value equals assets pledged from obligors after priority
claims plus equity pledged from nonobligors after nonobligor debt.
CMS ENERGY: Fitch Rates Junior Subordinated Notes Due 2050 'BB+'
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to CMS Energy
Corporation's junior subordinated notes due June 1, 2050. The JSNs
are unsecured obligations and will rank subordinate and junior in
right of payment to all of CMS Energy's existing and future senior
indebtedness. The JSNs will rank equal in right of payment to the
company's existing JSNs and any other pari passu subordinated
indebtedness CMS Energy may incur in the future. Fitch allocates
50% equity credit to CMS Energy's JSNs. Net proceeds will be used
for general corporate purposes.
CMS Energy's Long-Term Issuer Default Rating is 'BBB' with a Stable
Outlook.
KEY RATING DRIVERS
Ownership of Consumers Energy
CMS Energy's ratings benefit from the company's ownership of
Consumers Energy Company (A-/Stable), a regulated utility that
accounts for greater than 95% of consolidated EBITDA. Consumers
Energy's low-risk integrated electric and natural gas distribution
operations bolster credit quality. Fitch expects Consumers Energy
to remain CMS Energy's lone core business and primary driver of
consolidated growth over the long term, further strengthening CMS
Energy's consolidated earnings mix.
Parent-Level Debt
Approximately one-quarter of consolidated adjusted long-term debt,
excluding debt at CMS Energy's bank subsidiary EnerBank USA and
securitization debt at Consumers Energy, is parent-level debt,
which significantly increases consolidated leverage. Fitch does not
currently expect the coronavirus pandemic to have a material impact
on the credit quality of CMS Energy or Consumers Energy. Leverage
may be higher in 2020 but Fitch expects it to remain within the
rating sensitivity threshold for the current ratings. Fitch
forecasts FFO leverage to average around 5.0x and total debt with
equity credit/operating EBITDA at 4.7x-5.0x through 2022.
Constructive Regulatory Environment
Consumers Energy operates within a constructive regulatory
environment overseen by the Michigan Public Service Commission.
Supportive state legislation and MPSC policies mitigate regulatory
lag through the use of a forward test year, a 10-month review
period for general rate cases and power supply and gas cost
recovery mechanisms. Consumers Energy's natural gas utility
business also benefits from partial revenue decoupling, which
annually reconciles Consumers Energy's actual weather-normalized,
non-fuel revenues with the revenues approved by the MPSC.
Large Capex Plan
Consumers Energy has a large capex plan totaling $12.2 billion over
2020-2024. Roughly 45% of this capex is for electric utility
operations, including existing generation, 14% for new renewable
generation and 41% for natural gas utility operations. Concerns
regarding the large capex plan are mitigated by the MPSC's
constructive ratemaking policies, including use of a forward test
year, which allows for timely recovery of capex. In addition, O&M
cost reductions and CMS Energy's net operating loss carryforwards
(NOLs) provide cash savings that will be used to help fund growth
capex.
O&M Reductions and NOLs
Management's focus on O&M cost reductions supports Consumers
Energy's solid financial profile, reducing the negative near-term
financial impact from the utility's large capex plan. In addition,
the cash flow benefit from CMS Energy's NOLs enables the utility to
invest more internal capital into improving the reliability of its
service while minimizing the need for external sources of capital.
Fitch expects ongoing O&M cost reductions to average 2% per year.
Parent/Subsidiary Linkage
Fitch uses a bottom-up approach in determining the ratings on CMS
Energy and Consumers Energy. The linkage follows a weak
parent/strong subsidiary approach. Fitch considers Consumers Energy
to be stronger than CMS Energy due to the utility's low-risk
operations, Michigan's constructive regulatory environment and CMS
Energy's substantial parent-level debt.
There is moderate linkage between the Long-Term IDRs of CMS Energy
and Consumers Energy, created by the absence of guarantees and
cross defaults and the utility's good access to debt capital
markets. However, the utility's lack of strong ring-fencing
provisions and CMS Energy's reliance on Consumers Energy as its
predominant generator of cash flow would suggest closer linkage.
Fitch caps at two notches the difference between the Long-Term IDRs
of CMS Energy and Consumers Energy.
DERIVATION SUMMARY
The credit profile of CMS Energy is appropriately positioned
relative to its peer utility holding companies, DTE Energy Company
(BBB/Stable), Xcel Energy Inc. (BBB+/Stable) and WEC Energy Group,
Inc. (BBB+/Stable). CMS Energy's lower rating than Xcel and WEC is
partly driven by a greater proportion of parent-level debt at CMS
Energy that results in higher consolidated leverage metrics. CMS
Energy's FFO leverage is expected to average around 5.0x through
2022, compared with 4.7x-5.2x for DTE and 4.7x-4.9x for Xcel. CMS
Energy, DTE, Xcel and WEC are parent holding companies with
integrated electric and natural gas distribution utility
subsidiaries rated in the 'BBB' to 'A' range. A constructive
regulatory environment in Michigan drives the strong business risk
profile of CMS Energy, which Fitch views as comparable with the
operations of its peers in Michigan, Wisconsin and Minnesota. Xcel
and WEC benefit from their multistate operations that add
geographic and regulatory diversification. Fitch views DTE's
business risk profile as slightly weaker because of its investments
in nonregulated midstream operations.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include:
-- Periodic GRC filings to recover Consumers Energy's investment
in rate base and associated costs.
-- O&M cost reductions averaging 2% per year.
-- Flat annual electric sales growth.
-- Annual natural gas sales growth averaging 0.0%-0.5%.
-- Total utility capex of $12.2 billion over 2020-2024.
-- Earnings per share growth of 6%-8% per year.
-- Normal weather.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to a
Positive Rating Action/Upgrade:
-- FFO leverage expected to remain less than 4.8x on a sustained
basis.
Factors That Could, Individually or Collectively, Lead to a
Negative Rating Action/Downgrade:
-- FFO leverage expected to exceed 5.4x on a sustained basis.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Fitch considers liquidity for CMS Energy and
Consumers Energy to be adequate.
CMS Energy has a $550 million unsecured revolving credit facility
that will mature June 5, 2023. CMS Energy had $4 million of LCs
outstanding and $25 million of borrowings outstanding, leaving $521
million of availability under its RCF as of March 31, 2020.
Consumers Energy primarily meets its short-term liquidity needs
through the issuance of CP under its $500 million CP program, which
is supported by its $850 million RCF. Consumers Energy's RCF will
mature June 5, 2023 and is secured by the utility's first mortgage
bonds. Although the amount of outstanding CP does not reduce the
RCF's available capacity, Consumers Energy states it would not
issue CP in an amount exceeding the available RCF capacity.
Consumers Energy had no CP borrowings and $7 million of LCs
outstanding as of March 31, 2020, leaving $843 million of unused
availability under its RCF.
Consumers Energy has a separate $250 million RCF that matures on
Nov. 19, 2021. This RCF had no borrowings and $8 million of LCs
outstanding as of March 31, 2020, leaving $242 million of
availability. Consumers Energy also has a fully used $30 million LC
facility that will mature on April 18, 2022. Both facilities are
secured by the utility's FMBs.
CMS Energy's operations require modest cash on hand. The company
had $834 million of unrestricted cash and cash equivalents as of
March 31, 2020, $604 million of which was at Consumers Energy.
CMS Energy has a manageable long-term debt maturity schedule over
the next five years. At the parent level, CMS Energy has $300
million of 5.05% senior unsecured notes due on March 15, 2022 and
$250 million of 3.875% senior unsecured notes due on March 1,
2024.
SUMMARY OF FINANCIAL ADJUSTMENTS
Financial statement adjustments that depart materially from those
contained in the published financial statements of the relevant
rated entity are:
-- CMS Energy's junior subordinated notes are given 50% equity
credit.
-- Consumers Energy's securitization debt is removed from all
financial metric calculations.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
COCRYSTAL PHARMA: Incurs $2 Million Net Loss in First Quarter
-------------------------------------------------------------
Cocrystal Pharma, Inc., reported a net loss of $1.99 million on
$461,000 of revenues for the three mohths ended March 31, 2020,
compared to net income of $2.97 million on $5.08 million of
revenues for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $42.84 million in total
assets, $2.41 million in total liabilities, and $40.43 million in
total stockholders' equity.
Net cash used by operating activities was $2,186,000 for the three
months ended March 31, 2020 compared with net cash provided by
operating activities of $2,018,000 for the same period in 2019.
This was primarily due to the $4,000,000 upfront payment from Merck
at the signing of the Collaboration Agreement in January 2019.
Net cash used for investing activities was approximately $93,000
for the three months ended March 31, 2020 compared with $25,000 net
cash used for the same period in 2019. For the three months ended
March 31, 2020 and 2019, net cash used for investing activities
consisted primarily of capital spending for computers and lab
equipment.
Net cash provided by financing activities totaled $16,547,000 for
the three months ended March 31, 2020 compared with $3,876,000 for
the same period in 2019. This was primarily due to the sale of
common stock in three registered direct offerings during the three
months ended March 31, 2020.
The Company has not yet established an ongoing source of revenue
sufficient to cover its operating costs. The Company had
$21,686,000 cash on March 31, 2020 and believes this is sufficient
to maintain planned operations through 2021.
Cocrystal said, "We have focused our efforts on research and
development activities, including through collaborations with
suitable partners. We have been profitable on a quarterly basis,
but have never been profitable on an annual basis. We have no
products approved for sale and have incurred operating losses and
negative operating cash flows on an annual basis since inception."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/oT6hBW
About Cocrystal Pharma
Headquartered in Creek Parkway Bothell, WA, Cocrystal Pharma, Inc.
-- http://www.cocrystalpharma.com/-- is a clinical stage
biotechnology company discovering and developing novel antiviral
therapeutics that target the replication machinery of influenza
viruses, hepatitis C viruses, noroviruses, and coronaviruses.
Cocrystal Pharma recorded a net loss of $48.17 million for the year
ended Dec. 31, 2019, compared to a net loss of $49.05 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$28.53 million in total assets, $2.82 million in total liabilities,
and $25.71 million in total stockholders' equity.
COMCAR INDUSTRIES: Case Summary & 30 Largest Unsecured Creditors
----------------------------------------------------------------
Lead Debtor: Comcar Industries, Inc.
502 East Bridgers Avenue
Auburndale, FL 33823
Business Description: Comcar Industries -- https://comcar.com
-- is a transportation and logistics
company headquartered in Auburndale,
Florida with over 40 strategically-
located terminal and satellite locations
across the United States.
Chapter 11 Petition Date: May 17, 2020
Court: United States Bankruptcy Court
District of Delaware
Thirty-two affiliates that concurrently filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Comcar Industries, Inc. (Lead Debtor) 20-11120
CTTS Leasing, LLC 20-11119
CCC Spotting, LLC 20-11121
CCC Transportation, LLC 20-11122
Coastal Transport Logistics, LLC 20-11123
Commercial Carrier Logistics, LLC 20-11124
CT Transportation, LLC 20-11125
CTL Distribution Logistics, LLC 20-11126
CTL Transportation, LLC 20-11127
Fleet Maintenance Services, LLC 20-11128
MCT Transportation, LLC 20-11129
Midwest Coast Logistics, LLC 20-11130
16th Street Pompano Beach, LLC 20-11131
Charlotte Avenue Auburndale, LLC 20-11132
Comcar Logistics, LLC 20-11133
Cortez Blvd. Brooksville, LLC 20-11134
East Broadway Tampa, LLC 20-11135
East Columbus Drive Tampa, LLC 20-11136
New Kings Road Jacksonville, LLC 20-11137
Old Winter Haven Road Auburndale, LLC 20-11138
W. Airport Blvd. Sanford, LLC 20-11139
Willis Shaw Logistics, LLC 20-11140
WSE Transportation, LLC 20-11141
Comcar Properties, Inc. 20-11142
Coastal Transport, Inc. 20-11143
Commercial Carrier Corporation 20-11144
Commercial Truck and Trailer Sales, Inc. 20-11145
CTL Distribution, Inc. 20-11146
Midwest Coast Transport, Inc. 20-11147
9th Place Newberry, LLC 20-11148
Detsco Terminals, Inc. 20-11149
Driver Services, Inc. 20-11150
Judge: Hon. Laurie Selber Silverstein
Debtors'
General
Bankruptcy
Counsel: Stuart M. Brown, Esq.
DLA PIPER LLP (US)
1201 North Market Street, Suite 2100
Wilmington, Delaware 19801
Tel: (302) 468-5700
Fax: (302) 394-2341
Email: stuart.brown@us.dlapiper.com
- and -
Jamila Justine Willis, Esq.
DLA PIPER LLP (US)
1251 Avenue of the Americas
New York, New York 10020
Tel: (212) 335-4500
Fax: (212) 335-4501
Email: jamila.willis@us.dlapiper.com
Debtors'
Financial
Advisor: FTI CONSULTING, INC.
Debtors'
Investment
Banker: BLUEJAY ADVISORS, LLC
Debtors'
Notice,
Claims &
Balloting
Agent: DONLIN RECANO & COMPANY, INC.
https://www.donlinrecano.com/Clients/comcar/index
Comcar Industries'
Estimated Assets: $50 million to $100 million
Comcar Industries'
Estimated Liabilities: $50 million to $100 million
The petitions were signed by Andrew Hinkelman, chief restructuring
officer.
A copy of Comcar Industries' petition is available for free at
PacerMonitor.com at:
https://is.gd/R44czl
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Hilda, Jorge and Litigation $100,000,000
Claudio Montes
c/o Passen & Powell
One East Wacker Dr.,
Suite 1750
Chicago, IL 60601
Matthew A. Passen, Esq.
Phone: (312) 527-4500
Email: mpassen@passenpowell.com
2. Rachel Crust Litigation $12,000,000
c/o Cuadra & Patel
296 S. Culver Street
Lawrenceville, GA 30046
Chirag Patel, Esq.
Tel: (404) 373-6336
Email: chirag@cuadrapatel.com
3. Violene Ferdinand Litigation $4,000,000
c/o The Berman Law Group
Post Office Box 272789
Boca Raton, FL 33427
Tel: (561) 826-5200
Fax: (561) 826-5201
4. Mack Financial Services Leases $2,201,784
Post Office Box 7247-0236
Philadelphia, PA 19170-0236
Tel: (317) 805-6700
Fax: (317) 805-6729
5. Navistar Leasing Company Leases $2,089,995
Post Office Box 98454
Chicago, IL 60693-8454
Curt Kramer, General Counsel
Tel: (800) 233-9121
Fax: (630) 753-7086
E-mail: curt.kramer@navistar.com
6. Michael Kifer Litigation $1,251,931
6105 King Road, E
Double Oak, TX 75077
Tim Bowden, Esq.
Tel: (615) 859-1996
7. Nextran Trade $953,375
Post Office Box 18027
Atlanta, GA 30316
Jon R. Pritchett, President
Tel: (678) 420-2373
Fax: (770) 427-8977
E-mail: jpritchett@nextrancorp.com
8. Love's Travel Stops Trade $908,746
& Country Stores
Post Office Box 26210
Oklahoma City, OK 73126
Tel: (405) 751-9000
Fax: (405) 242-2642
E-mail: comments@loves.com
9. Ronnie Delaneuiville Litigation $800,000
137 N.W. 18th Street
Reserve, LA 70084
Brandner Law Firm, LLC
Vanessa Motta
Tel: (504) 345-1111
10. Francine Cotnoir Litigation $750,000
c/o JMLaw P.A.
2411 North Oak Street
Myrtle Beach, SC 29577
Amish Jewtha, Esq.
Tel: (843) 213-2693
Email: jethwa@jmlawpa.com
11. Gary Tillman Litigation $650,000
c/o Payne Mitchell Law Group
3500 Maple Avenue, Suite 1250
Dallas, TX 75219
Andrew L. Payne, Esq.
Tel: (214) 252-1888
Fax: (214) 252-1889
Email: andy@paynemitchell.com
12. BankDirect Capital Finance Insurance $646,620
Post Office Box 660448 Premium
Dallas, TX 75266-0448 Finance
Tel: (877) 226-5496
Fax: (877) 226-5297
E-mail: info@bankdirectcapital.com
13. Betty Robinson Litigation $625,000
c/o Ossi & Najem, P.A.
1506 Prudential Drive
Jacksonville, FL 32207
Tel: (904) 399-0606
Fax: (904) 398-8988
14. E. Kreer c/o Litigation $500,000
Alexander Law Group, PLC
6601 Irongate Square, Suite A
Richmond, VA 23234
Michael R. Krol, Esq.
Alexander Law Group, PLC
Tel: (804) 271-1969
Fax: (804) 271-0806
E-mail: michael@alexanderlawgroupplc.com
15. Aurora Parts & Accessories Trade $487,611
Post Office Box 90399
Chicago, IL 60696
Brad Fulkerson, President & CEO
Tel: (844) 483-5600
16. Tri-State Trailers Trade $360,000
Post Office Box 52587
Tulsa, OK 74152
Tel: (918) 437-0010
Fax: (918) 438-7032
Email: cstonebarger@utilitytristate.com
17. Mary Rich Litigation $350,000
c/o Isaacs & Isaacs, PSC
1601 Business Center Court
Louisville, KY 40299
Victoria Conway, Esq.
Tel: (502) 458-1000
Fax: (502) 912-9067
Email: megan.oskins@isaacsandisaacs.com
18. Wesley Whitmore Litigation $350,000
c/o Gomez & Touger, P.A.
2310 North Armenia Avenue
Tampa, FL 33607
Tel: (813) 876-6622
Fax: (813) 876-4443
19. Resources Global Professional $330,800
Professionals Services
Post Office Box 740909
Los Angeles, CA 90074-0909
Kate Duchene, President & CEO
Tel: (714) 430-6400
E-mail: corpinq@rgp.com
20. Greydis Delgado Litigation $250,000
c/o Halpern Santos &
Pinkert, P.A.
150 Alhambra Circle,
Suite 1100
Coral Gables, FL 33134
Jan D. Pinkert, Esq.
Tel: (877) 529-6211
Fax: (305) 445-1169
21. Giuliana Delgado Litigation $250,000
c/o Halpern Santos & Pinkert, P.A.
150 Alhambra Circle,
Suite 1100
Coral Gables, FL 33134
Jan D. Pinkert, Esq.
Tel: (877) 529-6211
Fax: (305) 445-1169
22. Lizeth Delgado Litigation $250,000
c/o Halpern Santos &
Pinkert, P.A.
150 Alhambra Circle,
Suite 1100
Coral Gables, FL 33134
Jan D. Pinkert, Esq.
Tel: (877) 529-6211
Fax: (305) 445-1169
23. Francisco Delgado Litigation $250,000
c/o Halpern Santos &
Pinkert, P.A.
150 Alhambra Circle,
Suite 1100
Coral Gables, FL 33134
Jan D. Pinkert, Esq.
Tel: (877) 529-6211
Fax: (305) 445-1169
24. Bridgestone Americas Trade $234,715
Post Office Box 73418
Chicago, IL 60673
Amanda Mathis CFO
Tel: (615) 937-1000
Fax: (615) 937-3621
E-mail: mathisamanda@bfusa.com
25. Betty Rutan Litigation $225,000
6601 Irongate Square
Richmond, VA 23234
Michael R. Krol, Esq.
Alexander Law Group, PLC
Phone: (804) 271-1969
Fax: (804) 271-0806
E-mail: michael@alexanderlawgroupplc.com
26. Kellogg & Berry, PC Litigation $216,666
5501 Backlick Road, Suite 220
Springfield, VA 22151
Brandon Gladstone
Tel: (703) 962-1829
Fax: (703) 914-1210
E-mail: bgladstone@becherkelloggberry.com
27. Express Container Service Trade $212,637
Post Office Box 539
Avenel, NJ 07001
Matt Moser
Tel: (770) 968-1040
Fax: (832) 617-8605
Email: mmoser@expresscontainersvc.com
28. Qualawash Holdings LLC Trade $198,631
Post Office Box 534698
Atlanta, GA 30353
Scott Harrison, CEO
Tel: (813)-321-6485
Fax: (813) 221-1701
E-mail: qhl-ar@quala.us.com
29. Goodyear Tire & Rubber Co. Trade $174,007
Post Office Box 277808
Atlanta, GA 30384
David E. Phillips, General Counsel
Tel: (330) 796-2121
Fax: (330) 796-2222
30. Garry Zeigler Litigation $150,000
c/o Alexander Shunnarah Injury
Attorneys, P.C.
2900 1st Avenue South
Birmingham, AL 35233
Tel: (800) 229-7989
COMMERCIAL VEHICLE: Moody's Confirms B2 CFR & Sr. Sec. Debt Rating
------------------------------------------------------------------
Moody's Investors Service confirmed the ratings of Commercial
Vehicle Group, Inc., including the corporate family rating at B2,
the senior secured rating at B2, and the Probability of Default
Rating at B2-PD. The outlook is negative. This action concludes the
review for downgrade initiated on March 26, 2020.
The confirmation reflects Moody's expectation for Commercial
Vehicle to maintain an adequate liquidity profile and to
appropriately right-size its business to manage through a period of
significant and sharp decline because of its exposure to highly
cyclical truck markets during 2020 before a gradual recovery in its
end-markets into 2021. The company's credit metrics will be
substantially weakened in 2020 with expectations for debt/EBITDA to
be stretched near 8x at year-end and interest coverage well below
1x EBITA/interest expense. Moody's anticipates Commercial Vehicle
to generate some positive free cash flow in 2020 through working
capital unwind on lower sales volumes and sufficient availability
on its asset-based lending facility.
Recovery in the company's primary end-market of North American
heavy-duty trucks will be moderate into 2021 as production rates
are expected to gradually trend to normal replacement levels.
Moody's expects improved top line performance and sustained cost
savings should support leverage returning to near 4x debt/EBITDA by
the end of 2021. Free cash flow generation, though, will likely be
negative in 2021 as the company ramps up working capital
investments and returns to more normalized capex levels, so it is
essential liquidity is accessible.
The following rating actions were taken:
Confirmations:
Issuer: Commercial Vehicle Group, Inc.
Corporate Family Rating, Confirmed at B2
Probability of Default Rating, Confirmed at B2-PD
Senior Secured Bank Credit Facility, Confirmed at B2 (LGD4)
Outlook Actions:
Issuer: Commercial Vehicle Group, Inc.
Outlook, Changed To Negative From Rating Under Review
RATINGS RATIONALE
Commercial Vehicles' ratings, including the B2 CFR, reflect the
company's modest scale, exposure to highly-cyclical end-markets and
customer and geographic concentrations in its business. Moody's
expects Commercial Vehicle's revenues to fall in 2020 between 30%
and 40% with likely greater declines in its primary end-market of
North American Class 8 truck production offset partly by
less-cyclical, although smaller, aspects of its business, including
aftermarket, military and industrial warehouse applications. This
level of cyclicality is inherent in Commercial Vehicle's business,
but given the company's relatively modest size, the ability to
right-size the company's cost structure in a timely manner is
critical. Commercial Vehicle has undertaken various initiatives to
take costs out and preserve operating flexibility during 2020.
However, Moody's expects the company's EBITA margins to decline
from 5.4% in 2019 to about 1% in 2020.
Commercial Vehicle maintains a good market position providing
seating systems, trim and wire harnesses to major customers
primarily in North America. Given the nature of the commercial
vehicle industry, the company's sales are concentrated with about
76% of sales to ten customers. Commercial Vehicle has historically
demonstrated a disciplined approach to managing its balance sheet
with low levels of funded debt and moderate leverage ahead of
anticipated cyclical downturns. Moody's expects Commercial Vehicle
to maintain this approach following the current recessionary
environment.
The negative outlook reflects Moody's view that leverage could be
sustained at elevated levels through 2021 should end-market
conditions remain depressed or Commercial Vehicle maintains a
greater reliance on its asset-based facility should free cash flow
generation be pressured.
Commercial Vehicle's SGL-3 liquidity rating reflects Moody's
expectation for the company to maintain an adequate liquidity
profile through 2021 supported by cash (at least $55 million at the
end of March 2020, although a substantial portion is outside the
US) and to generate positive free cash flow in the $10 million to
$20 million range during 2020, primarily through working capital
unwind. Moody's expects the company to maintain moderate
availability under its $90 million asset-based facility (ABL) as
the company's collateral base will contract over the next several
quarters. The company's recently amended covenant package provides
relief for the company to weather the expected earnings decline
through 2020. Moody's expects the company will maintain sufficient
cushion with its leverage covenant through 2021 and will be in
compliance with its new $40 million minimum liquidity test.
Commercial Vehicle's liquidity remains supportive to cover the $4.4
million in required annual term loan amortization.
ESG CONSIDERATIONS
The company's role in the commercial vehicle industry exposes it to
environmental risks arising from increasing regulations on carbon
emissions, particularly as it relates to its end customers. Moody's
views Commercial Vehicle's risk to be manageable with certain
opportunities in its electrical systems segment to contribute to
trends toward longer-term electrification of commercial vehicles.
Governance concerns in the near-term reflect the company's
early-2020 disclosure of material weaknesses in its internal
controls for financial reporting, resulting in the restatement of
quarterly financials for 2018 and 2019. Moody's expects the company
will act on remediation plans to improve its internal controls and
processes.
FACTORS THAT COULD LEAD TO A DOWNGRADE OR UPGRADE OF THE RATINGS
The ratings could be downgraded if Commercial Vehicle's liquidity
position deteriorates from an inability to generate positive free
cash flow or availability on its asset-based facility is
significantly reduced. The expectation for debt/EBITDA to be
sustained above 5.5x through 2021 could also pressure the rating.
An upgrade is unlikely in the near-term. However, the ratings could
be upgraded if debt/EBITDA is sustained below 3.5x, EBITA/interest
expense is maintained above 2.5x and free cash flow to debt is
sustained above 10%.
The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.
Commercial Vehicle Group, Inc., headquartered in New Albany, Ohio,
is a provider of customized products for the commercial vehicle
market, including the heavy-duty truck, construction, agricultural,
specialty and military transportation markets. The company is an
amalgamation of several predecessor organizations whose products
include cab structures & assembly, seats & seating systems, trim
systems & components, wire harnesses, wipers, controls and mirrors.
Revenues for the publicly-traded company for the fiscal year end
December 2019 were approximately $901 million.
COMMUNITY HEALTH: All Four Proposals Approved at Annual Meeting
---------------------------------------------------------------
Community Health Systems, Inc., held its annual meeting of its
stockholders on May 12, 2020, at which the stockholders:
(1) elected each of John A. Clerico, Michael Dinkins, James S.
Ely III, John A. Fry, Tim L. Hingtgen, Elizabeth T. Hirsch,
William Norris Jennings, M.D., K. Ranga Krishnan, MBBS,
Julia B. North, Wayne T. Smith, and H. James Williams,
Ph.D. as directors of the Company for terms that expire at
the 2021 annual meeting of stockholders of the Company and
until their respective successors have been elected and
have qualified;
(2) approved the advisory resolution regarding the Company's
executive compensation;
(3) approved the amendment and restatement of the 2009 Stock
Option and Award Plan, as amended and restated as of
March 20, 2020, which was approved by the Company's Board
of Directors as of March 20, 2020;
(4) ratified the appointment of Deloitte & Touche LLP, as the
Company's independent registered public accountants for
2020.
About Community Health
Community Health Systems, Inc. -- http://www.chs.net/-- is a
publicly traded hospital company and an operator of general acute
care hospitals in communities across the country. The Company,
through its subsidiaries, owns, leases or operates 99 affiliated
hospitals in 17 states with an aggregate of approximately 16,000
licensed beds. The Company's headquarters are located in Franklin,
Tennessee, a suburb south of Nashville. Shares in Community Health
Systems, Inc. are traded on the New York Stock
Community Health reported a net loss attributable to the Company's
stockholders of $675 million for the year ended Dec. 31, 2019,
following a net loss attributable to the Company's stockholders of
$788 million for the year ended Dec. 31, 2018. As of March 31,
2020, the Company had $15.44 billion in total assets, $17.08
billion in total liabilities, $502 million in redeemable
noncontrolling interests in equity of consolidated subsidiaries,
and a total stockholders' deficit of $2.13 billion.
* * *
As reported by the TCR on Nov. 29, 2019, S&P Global Ratings raised
its issuer credit rating on U.S.-based hospital operator Community
Health Systems Inc. to 'CCC+' from 'SD' (selective default). The
upgrade to 'CCC+' reflects the company's longer-dated debt maturity
schedule, and S&P's view that Community's efforts to rationalize
its hospital portfolio as well as improve financial performance and
cash flow should strengthen credit measures over the next couple of
years.
In November 2019, Fitch Ratings downgraded Community Health
Systems, Inc.'s Issuer Default Rating to 'C' from 'CCC' following
the company's announcement of an offer to exchange a series of
senior unsecured notes due 2022.
COMPASS BEER: Case Summary & 11 Unsecured Creditors
---------------------------------------------------
Debtor: Compass Beer Pump LLC
3 Compass Road
Middle River, MD 21220
Business Description: Compass Beer Pump LLC is a privately held
company that owns and operates gasoline
stations.
Chapter 11 Petition Date: May 18, 2020
Court: United States Bankruptcy Court
District of Maryland
Case No.: 20-15328
Debtor's Counsel: Alan M. Grochal, Esq.
TYDINGS & ROSENBERG LLP
1 E. Pratt Street
Suite 901
Baltimore, MD 21202
Tel: 410-752-9700
E-mail: agrochal@tydingslaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Paresh Patel, member.
A copy of the petition containing, among other items, a list of the
Debtor's 11 unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/Dbh1DV
COOPER TIRE: S&P Lowers ICR to 'BB-'; Outlook Stable
----------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Findlay,
Ohio-based Cooper Tire & Rubber Co. to 'BB-' from 'BB'.
The spread of the coronavirus has triggered unprecedented
containment actions, including the shutdown of many businesses. In
response to the pandemic, Cooper Tire temporarily shut down its
manufacturing plants, although it continued to operate its
distribution centers around the world. Currently, the company's
Chinese, U.S., and Serbian manufacturing plants are back in
operation and ramping up their production as conditions improve.
However, its U.K. and Mexican facilities remain closed.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
Cooper's manufacturing facilities are subject to numerous laws and
regulations designed to protect the environment. In general, the
company has not experienced difficulty in complying with these
requirements and believes they have not had a materially adverse
effect on its financial conditions or operating results.
The company expects to face additional environmental requirements
in the future. Cooper's 2019 expense and capital expenditure for
environmental matters at its facilities were not material and S&P
does not believe its expected expenditure for such matters in 2020
will be material either.
The stable outlook on Cooper Tire & Rubber Co. reflects the
company's sound credit measures and S&P's expectation that it will
maintain a FOCF-to-debt ratio of at least 10% and an adjusted
debt-to-EBITDA metric of below 3x on a sustained basis.
"We could lower our ratings on Cooper if we come to believe that it
will be unable to maintain credit metrics that are appropriate for
an intermediate financial risk profile, namely a debt-to-EBITDA
ratio of below 4.0x and a FOCF-to-debt ratio of more than 10%, on a
sustained basis. This could occur if, for instance, the downturn in
tire demand due to the fallout from the coronavirus pandemic
extends far into the second half of 2020," S&P said.
"We could raise our issuer credit rating on Cooper if there is a
marked rebound in tire demand in the second half of 2020 and the
company shows that it can navigate the expected drop in its
replacement tire sales by instituting a variety of cost-reduction
initiatives and reducing its capital expenditure. At the same time,
we would expect the company to achieve a FOCF-to-debt ratio of at
least 15% and an adjusted debt-to-EBITDA metric of below 3x on a
sustained basis," the rating agency said.
CORNELL ST HEMPSTEAD: Seeks to Hire Hasbani & Light as Counsel
--------------------------------------------------------------
Cornell St Hempstead LLC seeks authority from the US Bankruptcy
Court for the Eastern District of New York to hire Hasbani & Light,
P.C. as its counsel.
Cornell St requires Hasbani to:
(a) provide the Debtor with advice and preparing all necessary
documents regarding debt restructuring, bankruptcy and asset
dispositions;
(b) take all necessary actions to protect and preserve the
Debtor's estate during the pendency of this Chapter 11 Case;
(c) prepare on behalf of the Debtor, as debtor-in-possession,
all necessary motions, applications, answers, orders, reports and
papers in connection with the administration of this Chapter 11
Case;
(d) counsel the Debtor with regard to its rights and
obligations as debtor in possession;
(e) appear in Court to protect the interests of the Debtor;
and
(f) perform all other legal services for the Debtor which may
be necessary and proper in these proceedings and in furtherance of
the Debtor's operations.
Hasbani will be compensated at a rate of $210.00 per hour in
accordance with its customary billing practices.
Seth D. Weinberg, associate of Hasbani & Light, assures the court
that the firm is a "disinterested person," as that term is defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Seth D. Weinberg, Esq.
Hasbani & Light, P.C.
450 Seventh Avenue, Suite 1408
New York, NY 10123
Phone: 646-490-6677
Email: sweinberg@hasbanilight.com
About Cornell St Hempstead LLC
Based in New York, New York, Cornell St Hempstead LLC sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 20-71624) on March 13, 2020, listing under $1 million in
both assets and liabilities. Seth D. Weinberg, Esq. at HASBANI &
LIGHT, P.C. represents the Debtor as counsel.
DALI LOU RANCH: $1.42M Sale of Sun Valley Suit to Evans Approved
----------------------------------------------------------------
Judge Martin R. Barash of the U.S. Bankruptcy Court for the Central
District of California authorized Dali Lou Ranch Media, LLC's sale
of the real property located at 9501 Clybourn Avenue, Sun Valley,
California to Spencer Evans for $1.42 million.
A hearing on the Motion was held on May 12, 2020 at 10:00 a.m.
Except as otherwise provided in the Order, any and all liens,
claims and encumbrances and other interests affecting the Subject
Property will be paid in full out of escrow and if not, will attach
solely to the proceeds realized from the sale thereof. The sale is
free and clear of any and all liens, claims, interests, law suits,
legal proceedings, suits, actions and other encumbrances of any and
every nature and kind whatsoever and howsoever arising.
The payment of real property taxes owed on the Subject Property and
all usual and customary escrow, closing and recording costs
generally attributable to a seller of real property, are authorized
to be paid from escrow.
All holders of the liens and encumbrances are ordered to execute
any and all documentation that may be required to allow escrow to
close.
The automatic stay provisions of 11 U.S.C. Section 362 are modified
to the extent necessary to permit the consummation of the
transaction subject to the Order and in the purchase agreement.
The 14-day waiting period set forth in Bankruptcy Rule 6004(h) is
waived.
About Dali Lou Ranch Media
Dali Lou Ranch Media, LLC, a privately held company in Sun Valley,
Calif., sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. C.D. Cal. Case No. 19-12425) on Sep. 25, 2019. In the
petition signed by Keith O. Munyan, Jr., managing member, the
Debtor was estimated to have $1 million to $10 million in both
assets and liabilities. Judge Martin R. Barash oversees the case.
Matthew D. Resnik, Esq., at Resnik Hayes Moradi, LLP, is the
Debtor's legal counsel.
DEAN & DELUCA: Seeks to Hire Stretto as Administrative Advisor
--------------------------------------------------------------
Dean & Deluca New York, Inc., and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Southern District
of New York to employ Stretto as its administrative advisor.
Dean & Deluca requires Stretto to:
a. assist with, among other things, claims management and
reconciliation, plan solicitation, balloting, disbursements, and
tabulation of votes, and prepare any related reports, as required
in support of confirmation of a chapter 11 plan, and in connection
with such services, process requests for documents from parties in
interest, including, if applicable, brokerage firms, bank
back-offices and institutional holders;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
d. provide a confidential data room, if requested;
e. manage and coordinate any distributions pursuant to a
chapter 11 plan; and
f. provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtors, this Court or
the Office of the Clerk of the U.S. Bankruptcy Court for the
Southern District of New York.
Stretto will be paid based upon its normal and usual hourly billing
rates.
Stretto will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Sheryl Betance, a managing director of Stretto, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Stretto can be reached at:
Sheryl Betance
STRETTO
7 Times Square, 16th Floor
New York, NY 10036
Tel: (714) 716-1872
E-mail: sheryl.betance@stretto.com
About Dean & Deluca New York, Inc.
Dean & DeLuca New York, Inc. is a multi-channel retailer of premium
gourmet and delicatessen food and beverage products under the Dean
& DeLuca brand name. It traces its roots to the opening of the
first Dean & DeLuca store in the Soho district of Manhattan, New
York City by Joel Dean and Giorgio DeLuca in 1977.
Affiliate Dean & DeLuca, Inc. was incorporated in Delaware in 1999.
On Sept. 29, 2014, Pace Development Corporation, through its wholly
owned subsidiary, Pace Food Retail Co., Ltd., acquired 100% of the
shares of Dean & DeLuca, Inc. from its then shareholders.
Dean & DeLuca New York and six affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
20-10916) on March 31, 2020. At the time of the filing, Debtors had
estimated assets of between $10 million and $50 million and
liabilities of between $100 million and $500 million.
The Debtors tapped Brown Rudnick LLP as their legal counsel, and
Stretto as claims and noticing agent.
DURA AUTOMOTIVE: Needs More Time to Finalize Sale, File Plan
------------------------------------------------------------
Dura Automotive Systems, LLC asked the U.S. Bankruptcy Court for
the District of Delaware to extend the periods during which the
company and its affiliates have the exclusive right to file a
Chapter 11 plan and to solicit votes from creditors to May 29 and
July 29, respectively.
The companies need enough time to conclude negotiations for the
sale of their North American, Brazilian and Indian operations;
secure court approval of the asset purchase agreements; and close
the sale transactions without the distraction of competing Chapter
11 plans.
Just recently, the companies entered into a stock and asset
purchase agreement for the sale of their European operations to a
new entity to be formed by affiliates of their lender and The
Charlton Group, Inc. The companies hope to consummate the proposed
European transaction, subject to court approval, by May 30.
The companies are also in advanced discussions with potentially
interested parties regarding the sale of their assets and
operations in North America, Brazil, and India. They also hope to
consummate the transaction as soon as possible following court
approval, and then promptly wind down their bankruptcy estates.
About Dura Automotive Systems
Dura Automotive Systems, LLC, together with its affiliates, is an
independent designer and manufacturer of automotive systems,
including mechatronic systems, exterior systems, and lightweight
structural systems, among others. It is nationally certified in
the United States by the Women's Business Enterprise Council, and
operates 25 facilities in 13 countries throughout North America,
South America, Europe and Asia. Headquartered in Auburn Hills,
Mich., the company -- https://www.duraauto.com/ -- employs
approximately 7,400 individuals.
Dura Automotive Systems sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 19-06741) on Oct.
17, 2019. At the time of the filing, the Debtors had estimated
assets of between $100 million and $500 million and liabilities of
between $100 million and $500 million.
The cases have been assigned to Judge Randal S. Mashburn.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as bankruptcy counsel; Bradley Arant Boult
Cummings LLP as local counsel; Portage Point Partners, LLC as
restructuring advisor; Jefferies LLC as financial advisor and
Investment banker; and Prime Clerk LLC as claims agent.
FIRST CLASS: $65K Sale of Assets to Colonial Denied w/o Prejudice
-----------------------------------------------------------------
Judge Shelley Rucker of the U.S. Bankruptcy Court for the Eastern
District of Tennessee denied First Class Printing, Inc.'s sale of
assets, including all its equipment and accounts receivable, to
Colonial Printing Co. for $65,000, free and clear of all liens and
interests, without prejudice to refiling based on the failure to
include the additional statement in the notice of hearing legend
required by the New Notice Regarding Court Operations during
COVID-19 Virus Outbreak posted on the Courts website,
http://www.tneb.uscourts.gov/covid-19-notices,on March 15, 2020.
About First Class Printing
First Class Printing, Inc., based in Fayetteville, TN, filed a
Chapter 11 petition (Bankr. E.D. Tenn. Case No. 19-14730) on Nov.
6, 2019. In the petition signed by Calvin Bruce Tanner, owner, the
Debtor disclosed $392,470 in assets and $1,187,031 in liabilities.
The Hon. Shelley D. Rucker is the presiding judge. Steven L.
Lefkovitz, Esq., at Lefkovitz & Lefkovitz, serves as bankruptcy
counsel to the Debtor.
FORUM ENERGY: Moody's Cuts CFR to Ca & Sr. Unsec. Debt Rating to C
------------------------------------------------------------------
Moody's Investors Service downgraded Forum Energy Technologies,
Inc.'s Corporate Family Rating to Ca from Caa1, Probability of
Default Rating to Ca-PD/LD (/LD appended) from Caa1-PD and senior
unsecured notes rating to C from Caa2. Forum's Speculative Grade
Liquidity rating remains unchanged at SGL-4. The outlook remains
negative.
"The downgrade of Forum's ratings reflect increased restructuring
risks for the company's remaining debt as maturities approach,"
said Jonathan Teitel, a Moody's analyst.
Downgrades:
Issuer: Forum Energy Technologies, Inc.
Probability of Default Rating, Downgraded to Ca-PD/LD from
Caa1-PD (/LD appended)
Corporate Family Rating, Downgraded to Ca from Caa1
Senior Unsecured Regular Bond/Debenture, Downgraded to C (LGD5)
from Caa2 (LGD5)
Outlook Actions:
Issuer: Forum Energy Technologies, Inc.
Outlook, Remains Negative
RATINGS RATIONALE
The appending of the PDR with an "/LD" designation indicates
limited default as a result of Forum's tender offer to bondholders
that resulted in the repurchase of $58 million in principal of
senior notes at a large discount to face value (40% of face value).
Moody's considers these repurchases to be distressed exchanges and
therefore a default under Moody's definitions. The LD designation
will be removed after two days.
Forum's Ca CFR reflects the company's unsustainable capital
structure and weak liquidity driven by near-term debt maturities.
There is rising risk of restructuring for the company's remaining
debt as maturities approach and access to capital markets is
limited. Forum faces highly challenging industry conditions from
weak commodity prices and the resulting reduction in drilling and
completion activities by exploration and production companies.
Moody's expects Forum's EBITDA in 2020 will be significantly
constrained.
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 oilfield
services sector has been affected by the shock given its
sensitivity to demand and sentiment. More specifically, the
weaknesses in Forum's credit profile and liquidity have left it
vulnerable to shifts in market sentiment in these unprecedented
operating conditions and Forum 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 Forum of the breadth and severity of the shock, and the
broad deterioration in credit quality it has triggered.
Forum's SGL-4 rating reflects Moody's view that Forum has weak
liquidity driven by near-term debt maturities. The company's
borrowing base revolver expires in July 2021 (so long as the senior
notes due October 2021 are outstanding). The revolver had a
borrowing base of $234 million as of March 31, 2020 with $55
million drawn on the facility and $26 million in letters of credit
outstanding. Subsequent to the end of the first quarter, the
company drew an additional $30 million on its revolver. As of March
31, the company had $109 million of cash. Pro forma for the
completion of the tender offer for senior notes, this balance would
be about $86 million.
Forum's senior unsecured notes due 2021 are rated C, one notch
below the CFR. This notching reflects effective subordination to
the secured revolver and Moody's view on expected recoveries.
The negative outlook reflects the risk of the company restructuring
its debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF RATINGS
Factors that could lead to a downgrade include Moody's lowering its
view on expected recoveries.
Factors that could lead to an upgrade include the company reducing
debt sufficiently to achieve a tenable capital structure with
improved liquidity.
The principal methodology used in these ratings was Global Oilfield
Services Industry Rating Methodology published in May 2017.
Forum, headquartered in Houston, Texas, is a publicly-traded
oilfield services company. Revenue for the twelve months ended
March 31, 2020 was $867 million.
FRANK & LUPE II: 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 Frank & Lupe II LLC.
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.
FTE NETWORKS: Incurs $46.6 Million Net Loss in 2018
---------------------------------------------------
FTE Networks, Inc., reported a net loss of $46.59 million on
$384.75 million of revenues for the year ended Dec. 31, 2018,
compared to a net loss of $92.08 million on $215.51 million of
revenues for the year ended Dec. 31, 2017.
As of Dec. 31, 2018, the Company had $164.29 million in total
assets, $223.75 million in total liabilities, and a total
stockholders' deficit of $59.46 million.
FTE said, "The Company's ultimate success is dependent on its
ability to obtain additional financing and generate sufficient cash
flow to meet its obligations on a timely basis. The Company's
business will require significant amounts of capital to sustain
operations and the Company will need to make the investments it
needs to execute its longer-term business plan. Absent generation
of sufficient revenue from the execution of the Company's long-term
business plan, the Company will need to obtain debt or equity
financing, especially if the Company experiences downturns in its
business that are more severe or longer than anticipated, or if the
Company experiences significant increases in expense levels
resulting from being a publicly-traded company or operations. Such
additional debt or equity financing may not be available to the
Company on favorable terms, if at all."
At Dec. 31, 2018, the Company had $12,170,000 in cash and a working
capital deficit of $95,501,000. The Company has classified all
amounts outstanding to the Senior Lender totaling $34,322,000 as
current liabilities as they mature during 2019. Also, the Company
has reported aggregated net losses of $138,675,000 for the two-year
period ended Dec. 31, 2018.
"Management has assessed the Company's ability to continue as a
going concern in accordance with the requirement of ASC 205-40.
Management believes the Company's present cash flows from
operations will not enable it to meet its obligations for the
twelve months from the date these financial statements are
available to be issued. Management currently has available certain
bridge financing from a significant shareholder to fund its
operations, but is actively seeking new sources of financing at
more favorable terms and conditions, that will enable the Company
to meet its obligations for the twelve-month period from the date
the financial statements are available to be issued. The
consolidated financial statements have been prepared assuming that
the Company will continue as a going concern and do not include any
adjustments to reflect the possible future effects on the
recoverability and classification of assets, or the amounts and
classification of liabilities that may result from the outcome of
this uncertainty."
A full-text copy of the Annual Report is available for free at the
Securities and Exchange Commission's website at:
https://is.gd/8rsYvY
About FTE Networks
Formerly known as Beacon Enterprise Solutions Group, FTE Networks,
Inc. -- http://www.ftenet.com/-- together with its wholly owned
subsidiaries, is a provider of innovative, technology-oriented
solutions for smart platforms, network infrastructure and
buildings. The Company provides end-to-end design, construction
management, build and support solutions for state-of-the-art
networks, data centers, residential, and commercial properties and
services Fortune 100/500 companies. FTE has three complementary
business offerings which are predicated on smart design and
consistent standards that reduce deployment costs and accelerate
delivery of innovative projects and services.
FTE Networks reported a net loss attributable to common
shareholders of $20.11 million for the year ended Dec. 31, 2017,
following a net loss attributable to common shareholders of $6.31
million for the year ended Dec. 31, 2016.
During March 2019, the Company received a series of letters from
the NYSE American concerning its failure to comply with various
continued listing requirements under the NYSE American Company
Guide. On Dec. 17, 2019, the Company received a letter from the
staff of NYSE Regulation, on behalf of the Exchange, stating that
it had determined to commence proceedings to delist the Company's
common stock from the Exchange because, according to the Exchange,
the Company or its management had engaged in operations that, in
the opinion of the Exchange, were contrary to the public interest.
On Dec. 17, 2019 at market close, the Company's common stock was
suspended from trading on the NYSE American Market. The Company
appealed this determination to the NYSE Listing Qualifications
Panel of the Exchange's Committee for Review, and a hearing
regarding the Company's continued listing was held on Feb. 13,
2020. On March 9, 2020, the NYSE Office of General Counsel
notified the Company that the Panel had determined to affirm the
Staff's decision to delist the Company's shares from NYSE. The
Company has since initiated steps to seek review of and/or appeal
the Panel's determination. As of May 11, 2020, the Company's
common stock was listed on the NYSE American Market under the
symbol FTNW but continued to be suspended from trading. In the
event the common stock is delisted from the NYSE American Market,
the Company intends to pursue other opportunities to have the
common stock traded on a stock market, which may include one of the
trading platforms operated by OTC Markets Group or another stock
market.
The Company has been unable to file its Annual Report on Form
10-K for the fiscal year ended Dec. 31, 2019, within the prescribed
time without unreasonable effort or expense. The Company requires
additional time to compile data and finalize its financial
statements to be filed as part of the Form 10-K and assist its
auditors in completing their audit in connection with the Form
10-K. Additionally, the Company said it has been negatively
impacted by the COVID-19 pandemic, which has contributed to the
delay in compiling and completing its Form 10-K, due in part to the
disruptions in access to and timely exchange of information between
officers, auditors, professional advisors and other support staff.
GAUCHO GROUP: Obtains $242K PPP Loan from Santander Bank
--------------------------------------------------------
Gaucho Group Holdings, Inc. entered into a potentially forgivable
loan from the U.S. Small Business Administration resulting in net
proceeds of $242,487 pursuant to the Paycheck Protection Program
enacted by Congress under the Coronavirus Aid, Relief, and Economic
Security Act (15 U.S.C. 636(a)(36)) (the "CARES Act") administered
by the SBA. To facilitate the PPP Loan, the Company entered into a
Note Payable Agreement with Santander Bank, N.A. as the lender.
The PPP Loan provides for working capital to the Company and will
mature on May 6, 2022. However, under the CARES Act and the PPP
Loan Agreement, all payments of both principal and interest will be
deferred until at least Nov. 1, 2020. The PPP Loan will accrue
interest at a rate of 1.00% per annum, and interest will continue
to accrue throughout the period the PPP Loan is outstanding, or
until it is forgiven. The CARES Act (including the guidance issued
by SBA and U.S. Department of the Treasury related thereto)
provides that all or a portion of the PPP Loan may be forgiven upon
request from the Company to the Lender, subject to requirements in
the PPP Loan Agreement and the CARES Act.
The Company is enacting certain measures aimed at cutting costs and
attempting to address operational challenges. Consequently, the
Company's president and CEO agreed to reduce his compensation by
85%. The Company is accruing all compensation not paid to Scott L.
Mathis pursuant to his employment agreement until the Company has
sufficient funds to pay his full compensation.
Quarterly Report Delayed
On March 4, 2020, pursuant to Section 36 of the Securities Exchange
Act of 1934, the Securities and Exchange Commission issued Release
No. 34-88318 granting exemptions to registrants subject to the
reporting requirements of Section 13(a) or 15(d) of the Exchange
Act due to circumstances related to the global coronavirus outbreak
2019 (COVID-19).
Due to the outbreak of the COVID-19 pandemic, the Company filed a
Current Report on Form 8-K to report that it is postponing the
filing of its Quarterly Report on Form 10-Q for the first quarter
ended March 31, 2020.
Gaucho Group stated, "We require additional time to finalize and
file our Form 10-Q due to significant disruptions to our business
and operations we are experiencing as a result of the COVID-19
pandemic and related cautionary measures. In accordance with stay
at home orders that have been issued in the New York area and
Argentina, all employees at our headquarters have been working
remotely, our winery and the Algodon Mansion have been temporarily
closed and will remain closed for an indefinite period of time, and
our management has been devoting significant time and attention to
operating our business in this new environment. Argentina has been
on lockdown, only allowing individuals to leave the house for food,
pharmacy items and medical emergencies. All non-essential business
in Argentina is shut down. Argentina acted early with respect to
the pandemic and plans on opening later than most other countries
to keep the infection rate down.
"The Company has had diminishing operating revenue as well as
limited cash and cash equivalents and has been incurring operating
losses. Furthermore, the current global COVID-19 pandemic has
added even greater pressure on the Company's ability to operate
efficiently.
"We expect to file our Form 10-Q no later than June 29, 2020, which
is 45 days after the original due date."
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com/-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its
wholly-owned ubsidiaries, GGH invests in, develops and operates
real estate projects in Argentina. GGH operates a hotel, golf and
tennis resort, vineyard and producing winery in addition to
developing residential lots located near the resort. In 2016, GGH
formed a new subsidiary and in 2018, established an e-commerce
platform for the manufacture and sale of high-end fashion and
accessories. The activities in Argentina are conducted through its
operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,
LTD.
Gaucho Group reported a net loss attributable to common
stockholders of $7.38 million for the year ended Dec. 31, 2019,
compared to a net loss attributable to common stockholders of $6.40
million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the
Company had $5.92 million in total assets, $5.92 million in total
liabilities, $9.03 million in series B convertible redeemable
preferred stock, and a total stockholders' deficiency of $9.03
million.
Marcum LLP, in New York, NY, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated March
30, 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.
GB SCIENCES: Gets Notice of Allowance for Claims Protecting MCCMs
-----------------------------------------------------------------
GB Sciences received on May 12 a Notice of Allowance from the
United States Patent and Trademark Office (USPTO) for claims
protecting their Myrcene Containing Complex Mixtures (MCCMs) for
the Treatment of Neuropathic Pain. Intellectual property rights to
this application and the MCCM contained within it are owned by the
Company's Canadian entity, GBS Global Biopharma, Inc. (GBS). The
Company's MCCMs are protected for use in the treatment of pain
related to arthritis, shingles, irritable bowel syndrome, sickle
cell disease, and endometriosis. This Notice of Allowance is a
significant milestone in the process of patenting intellectual
property in that it is the final step before the Company's patent
is issued. This Notice of Allowance signifies that the claims from
the patent application have been reviewed successfully and that
these claims are considered meritorious. The Company has now paid
the patent issue fee and anticipates that the patent claims
protecting its pain therapeutics will be issued within 3 to 12
weeks. In addition, GBS has filed a continuation to protect and
advance the other therapeutic mixtures in the original patent
application entitled "Myrcene-Containing Complex Mixtures Targeting
TRPV1" that was filed on May 22, 2018. Claims for these additional
MCCM will be reviewed by the USPTO in the future.
About GB Sciences
Las Vegas, Nevada-based GB Sciences, Inc., formerly Growblox
Sciences, Inc., is developing and utilizing state of the art
technologies in plant biology, cultivation and extraction
techniques, combined with biotechnology, and plans to produce
consistent and measurable medical-grade cannabis, cannabis
concentrates and cannabinoid therapies. The Company seeks to be an
innovative technology and solution company that converts the
cannabis plant into medicines, therapies and treatments for a
variety of ailments.
GB Sciences incurred net loss of $24.68 million for the 12 months
ended March 31, 2019, compared to a net loss of $23.15 million for
the 12 months ended March 31, 2018. As of Dec. 31, 2019, the
Company had $20.90 million in total assets, $12.60 million in total
liabilities, and $8.30 million in total equity.
Soles, Heyn & Company, LLP, in West Palm Beach, Florida, the
Company's auditor since the year ended March 31, 2014, issued a
"going concern" qualification in its report dated July 15, 2019, on
the Company's consolidated financial statements for the year ended
March 31, 2019, citing that the Company had accumulated losses of
approximately $84.7 million, has generated limited revenue, and may
experience losses in the near term. These factors and the need for
additional financing in order for the Company to meet its business
plan, raise substantial doubt about its ability to continue as a
going concern.
GENWORTH HOLDINGS: Moody's Cuts Senior Unsecured Debt Rating to B3
------------------------------------------------------------------
Moody's Investors Service has downgraded the senior unsecured debt
rating of Genworth Holdings, Inc. to B3 from B2 and changed the
outlook to developing. The action reflects the continuing delays to
close the planned acquisition of the company by China Oceanwide
Holdings Group Co. Ltd. (unrated) including obtaining the required
regulatory approvals which underlines the risks to consummate the
transaction, and the significantly higher volatility in the global
financial markets due to the coronavirus pandemic which will
challenge the company's ability to build liquidity. Genworth
Financial Inc. (unrated) is the ultimate holding company for
Holdings.
Concurrently, Moody's affirmed the Baa3 insurance financial
strength rating of Genworth Mortgage Insurance Corporation. The
outlook for GMICO was changed to stable from positive.
The rating action is in response to Moody's assessment of the
possible effects of the coronavirus on Holdings and GMICO's
respective credit profiles. The coronavirus-related economic
downturn is creating a severe and extensive credit shock across
many sectors, regions and markets. The insurance industry has been
one of the sectors affected by the shock resulting in a slowdown in
business activity, as well as asset volatility and an expected
increase in insurance claims. Moody's regards the coronavirus
pandemic as a social risk under its ESG framework, given the
substantial implications for public health and safety.
RATINGS RATIONALE
– Holdings
Moody's downgrade of Holdings is largely driven by the expected
deterioration in cashflow and limited access to the debt capital
markets at the holding company, and the need to develop alternative
financing arrangements, absent a transaction with China Oceanwide,
to its upcoming debt maturing of approximately $1.1 billion in
2021. The downgrade also reflects the ongoing strain on Genworth's
financial flexibility and balance sheet from the impact of the
coronavirus pandemic on executing financings solutions to extend
its debt ladder. Genworth's ability to organically build additional
liquidity is also constrained by its expected limited dividends in
2020 from its insurance subsidiaries, relative to its debt load.
The developing outlook on Holdings reflects the fact that at this
stage, liquidity is pressured, and long-term financing solutions
for its debt ladder remain uncertain, and so in due course either
positive or negative rating pressure could emerge. The uncertainty
remains around the ability to execute alternative arrangements to
address its upcoming debt maturities during heightened levels of
financial market volatility absent a transaction with China
Oceanwide, the potential amounts from the AXA lawsuit, and the
final outcome of the planned acquisition of the company by China
Oceanwide. More positively, Genworth has material holding company
resources to evaluate potential refinancing alternatives, including
its stake in its mortgage insurance operations and net cash and
investments of approximately $575 million at March 31, 2020 to
address upcoming debt maturities in case the transaction with China
Oceanwide does not close.
– GMICO
The ratings affirmation of GMICO is based on its strong position in
the US mortgage insurance market with an approximate 19% market
share, good client diversification, its comfortable cushion in its
compliance with the GSEs' PMIERs, and good profitability that has
increased liquidity at the company. These strengths are tempered by
the commodity-like nature of the mortgage insurance product, the
potential for price competition in the US mortgage insurance
market, the potential implications on the company's credit profile
from the contraction of the US economy due to coronavirus-related
shutdown and deteriorating economic conditions, and Genworth's weak
financial flexibility that exposes the company to event risk from
Genworth's inability to address its debt ladder and restructure its
organization.
The change in outlook to stable reflects its view that GMICO's
credit profile faces uncertainties related to mortgage loan credit
performance due to the economic disruption created by the
coronavirus pandemic. Similar to other peers in the sector, the
company faces higher mortgage delinquencies as unemployment rate
spikes amid deteriorating U.S. housing market fundamentals. Moody's
believes the ultra-low interest rates, bear market, and
coronavirus-driven restrictions on movement of the population will
stress most aspects of mortgage insurers' financials, including
those of GMICO. These factors impact new business, profitability,
capital adequacy, and the investment portfolio's performance.
However, GMICO's profitability is expected to remain robust over
the next several years. The company's good investment portfolios,
low mark-to-market loan to value ratios on older vintage loans,
extensive reinsurance protection and strong capital positions all
support the credit profile of the company as it enters this unique
economic downturn.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
– Holdings
Upward pressure on Holdings' ratings could develop if Genworth
demonstrates a path to reduce its debt ladder that may include
closing the transaction and the $1.5 billion capital investment
plan with China Oceanwide. Capital support to repay all or a
portion of the 2021 debt maturities at deal closing would lead to a
change in the outlook to stable, and/or an upgrade of Holdings
ratings. Additionally, the following could place upward pressure on
Holdings ratings: (1) an improvement of holding company financial
flexibility including increased dividend capacity; (2) a reduction
in the amount outstanding in the debt ladder beyond 2021.
A downgrade of Holdings' ratings could result from the following
factors: (1) lack of progress in developing alternative
arrangements for its upcoming debt maturities in 2021; and (2) if
the planned acquisition by China Oceanwide is terminated or further
delayed.
– GMICO
Moody's cited the following factors that could lead to an upgrade
of GMICO's rating: (1) improvement in Genworth's financial
flexibility, including a clear path to managing its debt maturities
in 2021; (2) maintaining a top tier market position in the US
mortgage insurance market; (3) profitability metrics consistent
with those of its peers, or return on capital above 10%; (3)
comfortable compliance with PMIERs and a sufficiently ratio greater
than 110%; and (4) more comprehensive reinsurance coverage on its
entire insured portfolio.
Factors that could lead to a rating downgrade include: (1) a
further weakening of Genworth's financial flexibility; (2) Genworth
does not complete its acquisition with China Oceanwide and the
associated actions to address its liquidity concerns Holdings; (3)
a consistent and material decline in GMICO's capitalization by more
than 10% over a rolling twelve month period; (4) a significant
weakening of underwriting standards and profitability; and (5)
non-compliance with the PMIERs or a sufficiently ratio less than
110%;
AFFECTED RATINGS:
The following ratings have been downgraded:
Issuer: Genworth Holdings, Inc.:
- backed senior unsecured to B3 from B2
- backed senior unsecured shelf to (P)B3 from (P)B2
- backed junior subordinate to Caa1 (hyb) from B3 (hyb)
- backed junior subordinate shelf to (P)Caa1 from (P)B3
Outlook actions
Issuer: Genworth Holdings, Inc.
- Outlook, Developing from Negative
The following ratings have been affirmed:
Genworth Mortgage Insurance Corporation: insurance financial
strength at Baa3;
Outlook Actions:
Issuer: Genworth Mortgage Insurance Corporation
Outlook, Stable from Positive
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Mortgage
Insurers Methodology published in November 2019.
Holdings is the intermediate holding company of Genworth, an
insurance and financial services holding company headquartered in
Richmond, Virginia. Holdings also acts as a holding company for its
respective subsidiaries including its life and international
mortgage insurance businesses. In addition, Holdings relies on the
financial resources of Genworth including the US mortgage business
to meet its obligations. The group reported GAAP net income (loss)
available to Genworth's common shareholders of $(66) million at
March 31, 2020 on total assets of $98.8 billion and shareholders'
equity of $14.8 billion.
GLENNS CLEANING: Hires Buechlein and Associates as Accountant
-------------------------------------------------------------
Glenns Cleaning Service, LLC, seeks authority from the U.S.
Bankruptcy Court for the Southern District of Indiana to employ
Buechlein and Associates, P.C., as accountant to the Debtor.
Glenns Cleaning requires Buechlein and Associates to assist the
Debtor in a preparing tax returns and maintaining and reconcile its
financial records.
Buechlein and Associates will be paid at the hourly rate of $160.
Buechlein and Associates will be paid a retainer in the amount of
$5,000.
Buechlein and Associates will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Mark Buechlein, a partner of Buechlein and Associates, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Buechlein and Associates can be reached at:
Mark Buechlein
BUECHLEIN AND ASSOCIATES, P.C.
1805 Dispatch Rd.
Jasper, IN 47546
Tel: (812) 482-3535
About Glenns Cleaning Service
Glenns Cleaning Service LLC, filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Ind. Case No. 20-70287) on March 11, 2020, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by William P. Harbison, Esq., at Seiller Waterman LLC.
GOODRICH QUALITY: Committee Hires Pachulski Stang as Counsel
------------------------------------------------------------
The official committee of unsecured creditors of Goodrich Quality
Theaters, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of Michigan to retain
Pachulski Stang Ziehl & Jones LLP as its counsel.
The Committee requires Pachulski to:
a. assist, advise and represent the Committee in its
consultations with the Debtor regarding the administration of this
Case;
b. assist, advise and represent the Committee with respect to
the Debtor's retention of professionals and advisors with respect
to the Debtor's business and this Case;
c. assist, advise and represent the Committee in analyzing
the Debtor's assets and liabilities, investigating the extent and
validity of liens and participating in and reviewing any proposed
asset sales, any asset dispositions, financing arrangements and
cash collateral stipulations or proceedings;
d. assist, advise and represent the Committee in any manner
relevant to reviewing and determining the Debtor's rights and
obligations under leases and other executory contracts;
e. assist, advise and represent the Committee in
investigating the acts, conduct, assets, liabilities and financial
condition of the Debtor, the Debtor's operations and the
desirability of the continuance of any portion of those operations,
and any other matters relevant to the Case or to the formulation of
a plan;
f. assist, advise and represent the Committee in connection
with any sale of the Debtor's assets;
g. assist, advise and represent the Committee in its
participation in the negotiation, formulation, or objection to any
plan of liquidation or reorganization;
h. assist, advise and represent the Committee in
understanding its powers and its duties under the Bankruptcy Code
and the Bankruptcy Rules and in performing other services as are in
the interests of those represented by the Committee;
i. assist, advise and represent the Committee in the
evaluation of claims and on any litigation matters, including
avoidance actions; and
j. provide such other services to the Committee as may be
necessary in this Case.
Pachulski's hourly rates are:
Partners/Counsel $675 to $1,495
Associates $625 to $725
Paralegals $395 to $425
Bradford Sandler, Esq., a partner at Pachulski, attests that the
firm does not represent any interest adverse to the Debtor's estate
and creditors.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Sandler disclosed in court filings that his firm has not agreed to
a variation of its standard or customary billing arrangements, and
that no Pachulski professional has varied his rate based on the
geographic location of the Debtors' bankruptcy cases.
As committee counsel, Pachulski Stang anticipates that the budget
for committee professionals will be governed by the terms of the
order that may be entered approving the Debtors' motions for use of
cash collateral and debtor-in-possession financing, Mr. Sandler
added.
Pachulski Stang can be reached through:
Robert J. Feinstein, Esq.
Bradford J. Sandler, Esq.
Steven W. Golden, Esq.
Pachulski Stang Ziehl & Jones LLP
780 Third Avenue, 34th Floor
New York, NY 10017
Telephone: (212) 561-7700
Facsimile: (212) 561-7777
Email: rfeinstein@pszjlaw.com
bsandler@pszjlaw.com
sgolden@pszjlaw.com
About Goodrich Quality Theaters
Goodrich Quality Theaters, Inc. -- http://www.gqti.com/-- owns and
operates 30 theaters with 281 screens in cities throughout
Michigan, Indiana, Illinois, Florida and Missouri.
Goodrich Quality Theaters sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mich. Case No. 20-00759) on Feb. 25,
2020. At the time of the filing, the Debtor had estimated assets
of between $50 million and $100 million and liabilities of between
$10 million and $50 million. Judge Scott W. Dales oversees the
case. The Debtor tapped Keller & Almassian, PLC as legal counsel;
Stout Risius Ross Advisors, LLC as investment banker and Novo
Advisors as financial advisor.
GOODRICH QUALITY: Committee Taps Dundon as Financial Advisor
------------------------------------------------------------
The official committee of unsecured creditors appointed in Goodrich
Quality Theaters, Inc.'s Chapter 11 case, seeks approval from the
U.S. Bankruptcy Court for the Western District of Michigan to
employ Dundon Advisers LLC as its financial advisor.
Dundon Advisers will provide these services to the committee in
connection with Debtor's Chapter 11 case:
(a) assist in the analysis, review and monitoring of the
restructuring process, including, but not limited to an assessment
of the unsecured claims pool and potential recoveries for unsecured
creditors;
(b) develop a complete understanding of Debtors' businesses
and their valuations;
(c) determine whether there are viable alternative paths for
the disposition of Debtors' assets;
(d) monitor or assist Debtors in their efforts to develop and
solicit transactions which would support unsecured creditor
recovery;
(e) assist the committee in identifying, valuing and pursuing
estate causes of action;
(f) assist the committee to address claims against Debtors and
to identify, preserve, value and monetize tax assets of Debtors;
(g) advise the committee in negotiations with Debtors and
third parties;
(h) assist the committee in reviewing Debtors' financial
reports;
(i) review and provide analysis of any proposed disclosure
statement and Chapter 11 plan, and, if appropriate, assist the
committee in developing an alternative Chapter 11 plan;
(j) participate in meetings; and
(k) provide other financial advisory services.
The firm's professionals will be paid at these rates:
Peter Hurwitz $675 per hour
Phil Preis $625 per hour
Jonathan Feldman $675 per hour
Peter Hurwitz, managing director of Dundon Advisers, disclosed in
court filings that his firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Peter A. Hurwitz
Dundon Advisers LLC
440 Mamaroneck Avenue, Fifth Floor
Harrison, New York 10528
Telephone: (914) 341-1188
Facsimile: (212) 202-4437
About Goodrich Quality Theaters
Goodrich Quality Theaters, Inc. -- http://www.gqti.com/-- owns and
operates 30 theaters with 281 screens in cities throughout
Michigan, Indiana, Illinois, Florida and Missouri.
Goodrich Quality Theaters sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mich. Case No. 20-00759) on Feb. 25,
2020. The petition was signed by Bob Goodrich, its president and
secretary. At the time of the filing, the Debtor had estimated
assets of between $50 million and $100 million and liabilities of
between $10 million and $50 million. Judge Scott W. Dales oversees
the case.
Debtor tapped Keller & Almassian, PLC as legal counsel; Stout
Risius Ross Advisors, LLC as investment banker; and Novo Advisors
as financial advisor.
A committee of unsecured creditors has been appointed in Debtors'
bankruptcy cases. The committee is represented by Pachulski Stang
Ziehl & Jones LLP.
GOODRICH QUALITY: Committee Taps Frost Brown as Co-Counsel
----------------------------------------------------------
The Official Committee of Unsecured Creditors of Goodrich Quality
Theaters, Inc., seeks approval from the U.S.
Bankruptcy Court for the Western District of Michigan to hire Frost
Brown Todd LLC as co-counsel for the Committee.
The Committee requires Frost Brown to:
(a) advise the Committee with respect to its powers, duties
and responsibilities in this chapter 11 case;
(b) provide assistance in the Committee's investigation of the
acts, conduct, assets, liabilities and financial condition of the
Debtor, the operation of the Debtor's businesses and desirability
of the continuance of such businesses, and any other matters
relevant to this chapter 11 case or to the negotiation and
formulation of a plan;
(c) prepare on behalf of the Committee all necessary pleadings
and other documentation;
(d) advise the Committee with respect to the Debtor's
formulation of a plan, the Debtor's proposed plans with respect to
the prosecution of claims against various third parties and any
other matters relevant to this chapter 11 case or to the
formulation of a plan in this chapter 11 case;
(e) provide assistance, advice and representation, if
appropriate, with respect to the employment of a Trustee or
Examiner, should such action become necessary, or any other legal
decision involving interests represented by the Committee;
(f) represent the Committee in hearings and proceedings
involving the Committee;
(g) perform such other legal services as may be necessary and
in the interest of creditors and this Committee.
The firm's 2020 hourly rates are:
Ronald E. Gold Member 1989 $675
Douglas L. Lutz Member 1991 $625
Terrence J.L. Reeves Member 2008 $430
A.J. Webb Managing Associate 2015 $325
Erin P. Severini Attorney 2002 $310
Ronald E. Gold, Esq., a member of Frost Brown Todd LLC, attests
that each of its members, counsel and associates is a
"disinterested person" within the meaning of section 101(14) of the
Bankruptcy Code, with respect to the matters for which it is to be
retained, according to court filings.
The firm can be reached through:
Ronald E. Gold, Esq.
Frost Brown Todd LLC
Great American Tower
301 East Fourth Street, Suite 3300
Cincinnati, OH 45202
Phone: 513-651-6800
Fax: 513-651-6981
About Goodrich Quality Theaters
Goodrich Quality Theaters, Inc. -- http://www.gqti.com/-- owns and
operates 30 theaters with 281 screens in cities throughout
Michigan, Indiana, Illinois, Florida and Missouri.
Goodrich Quality Theaters sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mich. Case No. 20-00759) on Feb. 25,
2020. At the time of the filing, the Debtor had estimated assets
of between $50 million and $100 million and liabilities of between
$10 million and $50 million. Judge Scott W. Dales oversees the
case. The Debtor tapped Keller & Almassian, PLC as legal counsel;
Stout Risius Ross Advisors, LLC as investment banker and Novo
Advisors as financial advisor.
GOODYEAR TIRE: S&P Rates Senior Unsecured Notes 'B+'
----------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '4'
recovery rating to Akron, Ohio-based The Goodyear Tire & Rubber
Co.'s senior unsecured notes and placed all of its ratings on the
company on CreditWatch with negative implications.
S&P is lowering its forecast for the company's sales,
profitability, and cash flow in 2020. This reflects S&P's elevated
uncertainty around how quickly the demand for replacement tires and
vehicles will return to pre-coronavirus levels. The
pandemic-related downturn in the economy has hurt consumer
confidence, increased the unemployment rate to 14.75%, and reduced
the employed proportion of the civilian population to 51.3%. It
also remain unclear how susceptible the population will be to a
resurgence in the spread of the virus as the government
restrictions designed to contain it are lifted.
"We now expect Goodyear's revenue to decline by about 20% in 2020
before rising by 15% in 2021. Under our base case, the company's
S&P Global-adjusted debt to EBITDA increases significantly above 6x
in 2020. Moreover, we forecast that Goodyear will face a
substantial free operating cash flow deficit in 2020 given its
worsening fixed-cost absorption amid its falling sales and the
incurrence of costs to restructure and streamline its operations,"
the rating agency said.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
Unlike many auto suppliers, Goodyear has less than average exposure
to tighter greenhouse gas emissions regulation. Demand for its
products do not depend on automaker decisions around vehicle
powertrains.
"As long as customer preferences do not shift back toward smaller
vehicles or smaller diameter tires, we believe Goodyear's
profitability will be mostly unaffected even in an unlikely large
surge in demand for electric vehicles by 2025. Goodyear is subject
to various laws and regulations pertaining to air emissions; water
discharges; and the handling, storage, and disposal of waste
materials. As part of our surveillance, we monitor the cost of
compliance; moreover, a serious environmental accident at one of
the company's facilities, for instance, could have a significantly
adverse effect on ratings," S&P said.
Social risks remain somewhat high. At the end of 2019, Goodyear
employed about 63,000 full-time and temporary people throughout the
world, including approximately 37,000 covered under collective
bargaining agreements. Perception of unfair wage rates or dangerous
working conditions could result in strikes or other forms of union
actions that disrupt production. Still, S&P believes the company
has a good relationship with unions and do not think it is
vulnerable to strikes or any disruptions at this time.
CreditWatch
The CreditWatch placement reflects that there is at least a 50%
chance S&P will lower its ratings on Goodyear Tire if its plants
remain idle for longer than it expects, causing it to burn a much
higher than expected level of cash flow and substantially eroding
its liquidity, with no signs of an imminent improvement. The length
of the production shutdown will depend on how soon the pace of new
coronavirus infections flattens, which determines when governments
will relax their restrictions on movements. The pandemic's effect
on Goodyear's creditworthiness will also depend upon how soon
consumers regain their confidence and begin purchasing replacement
tires and big-ticket items, such as vehicles, after the outbreak is
contained.
GT REALTY: $950K Sale of Freeport Property to 501 Atlantic Approved
-------------------------------------------------------------------
Judge Louis A. Scarcella of the U.S. Bankruptcy Court for the
Eastern District of New York authorized GT Realty Holdings, LLC's
sale of the real property at 501 Atlantic Ave, Freeport, New York
to 501 Atlantic, LLC, as assignee of Siyen S. Khaimov, for $950,000
(plus a buyer's premium of $57,000 to be paid to Maltz Auctions
Inc.).
A hearing on the Motion was held on May 12, 2020.
The sale is free and clear of all liens, claims, encumbrances and
interests, with all such liens, claims and encumbrances and
interests to attach to the proceeds of Sale.
At the closing of the Sale, the Debtor and Samuel Hampton be, and
are, directed to (a) execute and deliver such documents as may be
necessary for the Debtor to close the sale of the Property to the
Purchaser as set forth in the Plan, and (b) turnover to the
Purchaser the Property, and all books, records, files, and other
documents relating to the Property.
Nassau County Clerk is authorized to record the necessary deeds and
all other documents as so executed.
Pursuant to 11 U.S.C. Section 1146, that the delivery of the deeds
to be issued pursuant to Sale and the Plan will be made in
implementation of the Plan, and qualify for the transfer tax
exemption under section 1146(a) of the Bankruptcy Code, such that
the filing of said deeds will not be subject to payment of any
State (TP 584) transfer tax, a stamp tax or similar tax.
The Order will not be stayed under Bankruptcy Rule 6004(h).
About GT Realty Holdings
GT Realty Holdings LLC, a privately-held company engaged in
activities related to real estate, sought protection under Chapter
11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 18-75679) on
Aug. 21, 2018. In the petition signed by Christopher Gebbia,
managing member, the Debtor disclosed $2,504,320 in assets and
$2,604,914 in liabilities. Judge Louis A. Scarcella presides over
the case. Backenroth Frankel & Krinsky, LLP is the Debtor's legal
counsel.
GYPSUM RESOURCES: Hires Cushman & Wakefield as Real Estate Broker
-----------------------------------------------------------------
Gypsum Resources Materials, LLC, and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of Nevada
to employ Cushman & Wakefield U.S., Inc. as its real estate broker.
Cushman & Wakefield will assist the Debtor in listing and selling
certain parcels of industrial land in Clark County, Nevada,
aggregating 90.72 acres, and bearing assessor parcel numbers
175-09-000-002, 175-09-000-004, and 175-09-000-005.
On Oct. 16, 2019 Debtor filed its Application for Order Approving
the Employment of CBRE, Inc. as Real Estate Broker Nunc Pro Tunc to
October 2, 2019 [ECF No. 275] requesting authorization to hire CBRE
as its exclusive real estate broker.
On Nov. 26, 2019, the Court entered its order granting the CBRE
Application.
On Feb. 18, 2020, Donna Alderson Lombardo, Debtor's listing agent
with CBRE, left CBRE, and is now employed as an Executive Managing
Director with CW. As a result of the change in employer, the Debtor
is filing this application.
Services to be rendered by Cushman are:
(a) list and market the Property for sale;
(b) negotiate the business terms of any purchase and sale
agreement on behalf of Debtor, subject to Debtor's review and final
approval;
(c) prepare and distribute a standard brokerage flyer and
other advertising materials;
(d) place signs on the Property;
(e) present and prepare brokerage agreements; and
(f) work with Outside Brokers in selling the Property.
Cushman & Wakefield will get a commission of 3 percent of the total
sales price. In the event that a purchaser is represented by an
Outside Broker, then Cushman & Wakefield will be responsible for
paying the fee or commission, if any, due to such Outside Broker.
Ms. Lombardo disclosed in a court filing that she and other
employees of the firm neither hold nor represent any interest
adverse to the Debtor or its creditors.
The firm can be reached through:
Donna Alderson Lombardo
CUSHMAN & WAKEFIELD US, INC.
6725 Via Austi Pkwy, Suite 275
Las Vegas, NV 89119
Phone: +1 702 796 7900
About Gypsum Resources Materials
Based in Las Vegas, Gypsum Resources Materials, LLC, a privately
held company in the gypsum mining business, and its affiliate
Gypsum Resources, LLC filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Lead Case No.
19-14799) on July 26, 2019. The petitions were signed by James M.
Rhodes, president of Truckee Springs Holdings, LLC, manager of
Gypsum Resources, LLC.
At the time of the filing, Gypsum Resources Materials was estimated
to have $10 million to $50 million in both assets and liabilities.
Gypsum Resources, LLC was estimated to have $50 million to $100
million in both assets and liabilities.
The Debtors tapped Fox Rothschild LLP as bankruptcy counsel; Hill
Farrer & Burrill LLP as special counsel; and Conway MacKenzie, Inc.
as financial advisor.
The U.S. Trustee for Region 17 appointed creditors to serve on the
official committee of unsecured creditors on Aug. 30, 2019. The
committee is represented by Goldstein & McClintoc, LLLP.
HARROGATE INC: Fitch Cuts Rating on $8.4MM 1997 Bonds to 'BB-'
--------------------------------------------------------------
Fitch Ratings has downgraded the rating on the following bonds
issued on behalf of Harrogate, Inc. to 'BB-' from 'BB':
-- $8.4 million New Jersey Economic Development Authority revenue
refunding bonds, series 1997.
The Rating Outlook is revised to Negative from Stable.
SECURITY
The bonds are secured by a gross revenue pledge, a mortgage on
certain property and equipment, and a debt service reserve fund.
KEY RATING DRIVERS
Weak liquidity deteriorates further: The downgrade is driven by the
recent steep decline in Harrogate's unrestricted liquidity that was
already thin at the 'BB' rating. In fiscal 2019, Harrogate's
unrestricted cash and investments fell from $3.8 million to $3.0
million, which equates to a decline from 97 to 72 days cash on
hand. Harrogate's management team also reported that cash reserves
fell by approximately an additional $500,000 due to investment
losses and entrance fee refunds as of March 31, 2020. Based on
historical pro forma fiscal 2019 results, the incremental cash loss
through three months of fiscal 2020 equates to an additional drop
of 10 DCOH.
Limited Debt Capacity Constrains Strategic Capital Spending: The
Negative Outlook is driven by Harrogate's limited spending capacity
for campus reinvestment despite elevated service area competition,
prospective resident preferences for larger independent living
units, and generally greater market demand for assisted living
services. In recent years, management discussed preliminary plans
for renovating and expanding its campus to bolster its overall
desirability. However, those talks are on hold for at least the
near-term due to the coronavirus pandemic and recent balance sheet
weakness. Fitch believes Harrogate's inability to move forward with
any major renovations will hamper management's efforts to improve
ILU occupancy over the next one to two years.
Improved Operations and Census Levels: In fiscal 2019, Harrogate's
operating results showed improvement compared to fiscal 2018, which
tempers additional downward rating pressure. Improved profitability
is primarily driven by management's continued focus on minimizing
operating expenses, enhancing marketing of ILUs, and improving
overall operating cash flow in its skilled nursing facility.
Increased ILU marketing efforts are also reflected in better
occupancy statistics, as ILU census climbed from 77% in fiscal 2018
to 82% in fiscal 2019, and then increased again as of March 31,
2020 to 83%. However, SNF occupancy has shown some volatility due
to Harrogate's transition to more external admissions that began in
fiscal 2017 and a disruptive flu outbreak in fiscal 2019. Despite
some softness in SNF census, management reports that operating
income was solid in fiscal 2019 due to improved payor mix and
expense management.
Modest Long-Term Liability Profile: Harrogate's long-term liability
profile remained low in fiscal 2019 as evidenced by maximum annual
debt service equating to 7.7% of fiscal 2019 revenues, which
remains favorable to Fitch's below investment grade median of
16.7%. Additionally, Harrogate showed a favorable debt to net
available of 2.3x in fiscal 2019, which is significantly better
than Fitch's below investment grade median of 10.9x.
Asymmetric Risk Factors: No asymmetric risk factors affected this
rating determination.
RATING SENSITIVITIES
The Negative Outlook reflects Harrogate's limitations in expanding
and renovating its existing service lines to combat nearby
competition and continue to improve ILU occupancy. Recent liquidity
deterioration and operational uncertainty caused by the coronavirus
pandemic have hindered the community's strategic capital spending
priorities in the near-term.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
-- Significant increase in unrestricted liquidity that increases
DCOH to roughly 100;
-- Strong improvement in census levels, with sustained ILU
occupancy of approximately 90%.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
-- An unexpected reversal in operating performance resulting in a
continued decline in unrestricted liquidity and related metrics;
-- Any new debt issuance without an offsetting increase in the
community's liquidity position could result in a multi-notch
downgrade;
-- Inability to sustain recent improvement or deterioration in
ILU occupancy.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Public Finance issuers have a
best-case rating upgrade scenario (defined as the 99th percentile
of rating transitions, measured in a positive direction) of three
notches over a three-year rating horizon; and a worst-case rating
downgrade scenario (defined as the 99th percentile of rating
transitions, measured in a negative direction) of three notches
over three years. The complete span of best- and worst-case
scenario credit ratings for all rating categories ranges from 'AAA'
to 'D'. Best- and worst-case scenario credit ratings are based on
historical performance.
CREDIT PROFILE
Harrogate is a type 'A' life plan community located in Lakewood,
NJ. The campus has 253 ILUs and 68 SNF beds. Harrogate has a client
services agreement with Life Care Services, which has been in
effect for over 20 years and runs through Dec. 31, 2021. Harrogate
also offers three types of contracts: traditional, return of
capital (50%, 75%, and 90%) and fee for service. In fiscal 2019,
Harrogate had total operating revenues of $17.8 million.
The recent outbreak of the coronavirus and rise in related
government containment measures worldwide have created an uncertain
environment for the entire health care system in the near term.
While Harrogate's financial performance through the most recently
available data has not indicated any material impairment as a
direct result of the pandemic, material changes in revenue and cost
profiles will occur across the sector. Fitch's ratings are
forward-looking in nature, and Fitch will monitor developments in
the sector as a result of the virus outbreak as it relates to
severity and duration, and incorporate revised expectations for
future performance and assessment of key risks.
Weak Liquidity Deteriorates Further: The rating downgrade is driven
by the approximately 22% decline in Harrogate's unrestricted cash
and investment position to approximately $3 million between fiscals
2018 and 2019. Fitch attributes the decline in cash to Harrogate's
heightened capital spending for campus refurbishments to meet
market demand for larger ILU's - net capex rose from $1.3 million
to $2.1 million. The decline can also be attributed to an increase
in accounts receivable due to higher Medicare census in the health
center and realized investment losses of approximately $280,000.
The $3 million in unrestricted cash and investments translates into
72 DCOH, 40.2% cash to debt, and 2.2x cushion ratio, which are
mixed compared to Fitch's below investment grade medians of 312
DCOH, 33.0%, and 4.3x, respectively. In addition, as of March 31,
2020, the community's unrestricted cash and investments declined by
an additional $500,000, driven by continued investment losses and
negative entrance fee cash flows posted in 1Q20.
Harrogate's liquidity position was thin for its rating level even
prior to these declines, particularly for a life care community
with primarily refundable contracts. Fitch believes Harrogate's
liquidity position may also be difficult to rebuild in a short
timeframe given increased operating expenses and possible cash flow
pressure resulting from the coronavirus pandemic. Additional
balance sheet deterioration could add further downward pressure on
the rating.
Limited Spending Capacity Constrains Strategic Capital Needs:
The Negative Outlook is driven by Harrogate's limited spending
capacity for reinvesting in its campus as its cash position trends
downward. Although strategic capital is paramount due to
competitive pressures, Harrogate's aging plant and prospective
residents' desire for larger units and assisted living, the
community's strategic priorities are constrained by balance sheet
weakness and operational uncertainty due to the coronavirus
pandemic.
Within just a 10-mile radius of the campus are four other life plan
communities, some of which are newer, offer larger ILUs, and are
investing in their assisted living service line to meet market
demand. In addition, Harrogate's campus is generally older, posting
an average age of plant of 16.4 years in fiscal 2019, which is
elevated compared to Fitch's below investment grade median of 11.9
years.
Management has been in the preliminary process of formulating a
master facility plan for renovating and expanding its campus to
deal with these issues. However, those discussions are on hold for
now due to the coronavirus pandemic. Fitch believes Harrogate's
inability to move forward with any major renovations will diminish
its competitive position in the longer term.
Improved Operations and Census Levels: Fitch believes Harrogate's
stable operational performance helps temper additional downward
rating pressure. In fiscal 2019, the community's profitability and
operational ratios showed stability and even some improvement as
evidenced by a 97.6% operating ratio, 4.8% NOM and 17.6% NOMA,
which all are on par with or favorable to Fitch's below investment
grade medians of 100.7%, 3.8% and 19.4%, respectively. Fiscal 2019
results are primarily attributable to Harrogate's continued focus
on cost management, improved health center payor mix, and some
reimbursement benefit from CMS's new patient driven payment model
for skilled rehabilitation. In addition, management ceased the
operation of its struggling home health business.
Harrogate continues to confront operating challenges stemming from
the coronavirus pandemic, but financial performance has not been
markedly affected. Increased expenses related to the coronavirus
have been somewhat minimal as the community was already ramping up
its supply of medical equipment and necessary levels of staffing to
deal with the 2019 flu outbreak. Government support also mitigated
operational challenges by providing Harrogate with some personal
protective equipment, stimulus funding via the CARES Act and loans
through the Paycheck Protection Program. Lastly, there have been no
staffing shortages and some of the PPP funds may be forgivable.
Harrogate continues to show improvement in ILU occupancy, which is
a result of enhanced marketing efforts. Between fiscals 2018 and
2019, ILU census increased from 77% to 82%, and reached 83% as of
March 31, 2020. Fiscal 2019 net entrance fee cash flows were
roughly $2.4 million, which are in line with expectations.
While ILU occupancy has shown steady increases, SNF occupancy has
been volatile over recent years. Harrogate began taking more
external admissions starting in fiscal 2017, resulting in census
numbers falling from 89% to 79% between fiscals 2017 and 2018.
Occupancy was also slower to recover than expected due to the 2019
flu outbreak. However, occupancy levels have climbed to roughly 85%
as of March 31, 2020, and management believes it will be able to
bring in more high acuity residents to enhance cash flow. Despite
some SNF census challenges, payor mix showed solid improvement,
with Medicare and private pay respectively improving to 35% and 29%
of gross revenues between fiscals 2018 and 2019.
Modest Long-Term Liability Profile: Harrogate's only debt
outstanding is the $8.4 million in series 1997 bonds, which are
entirely fixed-rate, with a MADS of $1.3 million and a near final
maturity of 2026. Harrogate's long-term liability remains low as
evidenced by MADS equating to 7.7% of fiscal 2019 revenues which
compares favorably to Fitch's below investment grade median of
16.7%. Additionally, debt to net available measured a strong 2.3x
in fiscal 2019, which is much stronger than Fitch's below
investment grade median of 10.9x. Furthermore, MADS coverage
measured a robust 2.5x in fiscal 2018, which is well ahead of
Fitch's below investment grade median of 1.3x.
Harrogate's potential MFP would include the construction of new
ILUs and ALUs (including memory care beds) and the replacement of
its existing health center. While planning is preliminary,
management estimates the cost to range from $20 million to $28
million, and likely will be funded with new debt. Fitch believes
that Harrogate has limited debt capacity at the current rating
level and will incorporate any capital plans into the rating once
details are finalized.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
HIGH RIDGE: Exclusive Plan Filing Period Extended to July 15
------------------------------------------------------------
Judge Brendan Shannon of the Bankruptcy Court for the District of
Delaware extended through July 15 the period during which only High
Ridge Brands Co. and affiliates can file a Chapter 11 plan.
The companies have the exclusive right to solicit votes on their
plan until Sept. 14.
About High Ridge Brands
Headquartered in Stamford, Connecticut, High Ridge Brands Co. --
http://www.highridgebrands.com/-- is one of the largest
independent branded personal care companies in the United States by
unit volume, with a mission to craft extraordinary experiences for
savvy consumers. Today, High Ridge Brands has a portfolio of over
thirteen trusted brands, serving primarily North American skin
cleansing, hair care and oral care markets, including Zest(R),
Alberto VO5(R), REACH(R), Firefly(R), Dr. Fresh(R), Coast(R), White
Rain(R), LA Looks(R), Zero Frizz(R), Rave(R), Salon Grafix(R),
Binaca(R) and Thicker Fuller Hair(R). In addition, the Company has
relationships with leading entertainment properties through which
it has a portfolio of licenses such as Star Wars, Batman,
Spiderman, Hello Kitty, and Transformers. The Company operates an
asset-light model, outsourcing its manufacturing needs, and has
approximately 140 employees.
High Ridge Brands and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Case No. 19-12689) on Dec. 18, 2019. The debtor
affiliates include High Ridge Brands Holdings, Inc., HRB Midco,
Inc., HRB Buyer, Inc., High Ridge Brands Co., Golden Sun, Inc.,
Continental Fragrances, Ltd., Freshcorp, Inc., Children Oral Care,
LLC, and Dr. Fresh, LLC.
Judge Brendan Linehan Shannon is assigned to the cases.
Debtors tapped Young Conaway Stargatt & Taylor, LLP, as legal
counsel; Debevoise & Plimpton LLP as corporate, finance and
litigation counsel; and PJT Partners LP as investment banker.
HUB INTERNATIONAL: S&P Rates $350MM Senior Unsecured Debt 'CCC+'
----------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'CCC+' issue-level
rating to HUB International Ltd.'s (B/Stable/--) proposed $350
million senior unsecured notes due 2026. The recovery rating is
'6', indicating its expectation for negligible (0%-10%) recovery of
principal in the event of default. The proposed note is expected to
contain identical terms and pricing as the company's existing
senior unsecured notes.
S&P expects HUB to use this issuance primarily to pay down a
portion of its outstanding revolver balance, which the company drew
on in March as a precautionary measure to provide additional
liquidity amid potential business disruption stemming from the
COVID-19 pandemic. The balance on its U.S. and Canadian revolvers,
collectively, was $592 million as of March 31, 2020. HUB's leverage
as of the 12 months ended March 31, 2020, pro forma for the debt
issuance, was about 7.5x. The company continues to have a healthy
cushion within S&P's rating parameters.
HUB continued favorable performance trends in 2019, with organic
growth of 4.5% and S&PGR-adjusted EBITDA margins of 34.8%.
Performance remained robust into first-quarter 2020 with organic
growth of 6.2% and slight year-over-year margin improvement.
Despite markedly worse market conditions arising from the pandemic
and the related economic slowdown that S&P thinks will hurt
performance at HUB and its peers starting in the second quarter,
the rating agency expects any revenue and earnings deterioration
for the company will be manageable within its rating thresholds.
INDEANOMICS INC: Incurs $12.6 Million Net Loss in First Quarter
---------------------------------------------------------------
Ideanomics, Inc. reported a net loss of $12.62 million on $378,000
of total revenue for the three months ended March 31, 2020,
compared to net income of $19.91 million on $26.95 million of total
revenue for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $114.94 million in total
assets, $61.06 million in total liabilities, $1.26 million in
series A Convertible redeemable preferred stock, $7.15 million in
redeemable non-controlling interest, and $45.47 million in total
equity.
As of March 31, 2020, the Company had cash of $5.9 million.
"While we were impacted through the Covid-19 lockdown in China
during Q1, we were able to push forward with developing our
pipeline and even processed some deliveries to show our systems and
procedures are ready to fulfill orders at scale. To have achieved
any deliveries in China during the first quarter is a testament to
the determination and tenacity of our teams on the ground," said
Alf Poor, CEO of Ideanomics. "We look forward to Q2 and beyond,
including an AGM in the summer of this year to showcase both the
MEG business and the formal ribbon-cutting on our new 1MM square
feet EV center in Qingdao."
In March 2019, the Company entered into an agreement with GTD
whereby the Company provided digital asset management services. The
revenue was recognized based on the progress of completion of
services. The Company recognized $26.6 million for the period
ended March 31, 2019 and the remaining $14.1 million was recognized
in the remainder of 2019.
In the first quarter of 2020, the Company is gradually ramping up
its business related to EVs and recognized $0.1 million revenue
from the sales of EVs. The EV revenues for the current quarter
were recorded on an Agency (Net) basis because the Company acted as
an agent rather than principal in these transactions.
Gross profit for the three months ended March 31, 2020 was $44,000,
as compared to gross profit in the amount of $26.7 million during
the same period in 2019. The gross profit ratio for the three
months ended March 31, 2020 was 12%, while in 2019, it was 99%.
The decrease was mainly due to: 1) digital asset management service
revenue recognized in 2019 has higher gross margin than the gross
margin in EVs; and 2) the negative gross margin from the Delaware
Board of Trade or DBOT business for the three months ended March
31, 2020 due to the business is still in development stage.
Operating expenses in Q1 were $9.5 million dollars versus $5.8
million in the prior year – and increase of $3.7 million which
was largely driven by one-time non-operating charges as the Company
transitioned the business.
Operating expenses, excluding one-time charges in the fourth
quarter, declined from $14.2 million to $9.5 million in the first
quarter.
The loss from operations for the quarter ending March 31, 2020 was
$9.4 million compared a gain of $20.9 million in the first quarter
of 2019 and a loss of $13.6 million in the fourth quarter of 2019,
excluding one-time charges.
"Although the Company may attempt to raise funds by issuing debt or
equity instruments, in the future additional financing may not be
available to the Company on terms acceptable to the Company or at
all or such resources may not be received in a timely manner. If
the Company is unable to raise additional capital when required or
on acceptable terms, the Company may be required to scale back or
to discontinue certain operations, scale back or discontinue the
development of new business lines, reduce headcount, sell assets,
file for bankruptcy, reorganize, merge with another entity, or
cease operations.
"These conditions raise substantial doubt about the Company's
ability to continue as a going concern," Ideanomics said.
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/qhW2Cw
About Ideanomics
Ideanomics -- http://www.ideanomics.com-- is a global company
focused on facilitating the adoption of commercial electric
vehicles and developing next generation financial services and
Fintech products. Its electric vehicle division, Mobile Energy
Global (MEG) provides financial services and incentives for
commercial fleet operators, including group purchasing discounts
and battery buy-back programs, in order to acquire large-scale
customers with energy needs which are monetized through pre-paid
electricity and EV charging offerings. Ideanomics Capital includes
DBOT ATS and Intelligenta which provide innovative financial
services solutions powered by AI and blockchain. MEG and Ideanomics
Capital provide our global customers and partners with better
efficiencies and technologies and greater access to global markets.
The company is headquartered in New York, NY, and has offices in
Beijing, China.
Ideanomics reported a net loss attributable to common stockholders
of $97.66 million for the year ended Dec. 31, 2019, compared to a
net loss attributable to common stockholders of $28.42 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$126.94 million in total assets, $66.95 million in total
liabilities, $1.26 million in convertible redeemable preferred
stock, and $58.73 million in total
equity.
B F Borgers CPA PC, in Lakewood, Colorado, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 16, 2020 citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
Ideanomics received a letter from the Listing Qualifications Staff
of The Nasdaq Stock Market LLC on Jan. 10, 2020, indicating that
the bid price for the Company's common stock for the last 30
consecutive business days had closed below the minimum $1.00 per
share required for continued listing under Nasdaq Listing Rule
5550(a)(2). Under Nasdaq Listing Rule 5810(c)(3)(A), the Company
has been granted a 180 calendar day grace period, or until July 8,
2020, to regain compliance with the minimum bid price requirement.
INLAND OASIS: Trustee Hires Stick A Fork as Broker
--------------------------------------------------
Katherine Anderson Sanchez, as Chapter 11 Trustee of Inland Oasis
Group, Inc., seeks authority from the U.S. Bankruptcy Court for the
District of Arizona to retain Stick A Fork In It LLC dba The
Restaurant Brokers, as its broker.
Ms. Anderson requires Restaurant Brokers to:
a. analyze the value of the Debtor's restaurant;
b. list and market the Restaurant, its assets, and its liquor
license for sale; and
c. perform services necessary and related to the foregoing.
In the event of a sale, Restaurant Brokers will be entitled to
compensation for the greater of $20,000 or 12% of the total sale
price
Reuel Couch, the founder of Restaurant Broker, assures the court
that he and his firm are disinterested within the meaning of Sec.
101(14).
The firm can be reached through:
Reuel Couch
Stick A Fork In It LLC
dba The Restaurant Brokers
621 S 48th St, Ste 101
Tempe, AZ 85281
Phone: 480 491-0123
About Inland Oasis Group
Inland Oasis Group, Inc. operates "The Reef" -- a restaurant and
bar located in Chandler, Arizona. Inland Oasis Group filed a
Chapter 11 petition (Bankr. D. Ariz. Case No. 17-13376) on Nov. 9,
2017. In the petition signed by Mark Vargovich, president, the
Debtor was estimated to have under $50,000 in both assets and
liabilities. Judge Madeleine C. Wanslee oversees the case. Kelly
G. Black, PLC, is the Debtor's bankruptcy counsel.
INSPIREMD INC: Posts $1.98 Million Net Loss in First Quarter
------------------------------------------------------------
InspireMD, Inc., reported a net loss of $1.98 million on $1.03
million of revenues for the three months ended March 31, 2020,
compared to a net loss of $3.21 million on $415,000 of revenues for
the three months ended March 31, 2019.
"The ongoing COVID-19 pandemic has placed unprecedented pressure on
healthcare systems around the world, and we are seeing this impact
on elective procedure volumes, including carotid artery disease
treatments," stated Marvin Slosman, chief executive officer of
InspireMD. "However, these procedures must ultimately occur to
save lives, and we stand ready with our support and supply
infrastructure to quickly fulfill the needs of physicians and their
patients as a more normalized healthcare environment reemerges."
"I am more enthusiastic than ever about the potential of CGuard EPS
- and its novel MicroNet technology - to fundamentally disrupt the
current standard of care in carotid stenosis. During the quarter,
we continued to see consistent growth across all our current
markets while we simultaneously worked to open new opportunities in
Brazil, France, the Asia/Pacific region and, of course, the United
States. Longer-term, I believe we can establish another pillar of
growth by further exploiting our reverse flow technology in a
procedural protection device and to expand our product pipeline
with CGuard with MicroNet into new high-value indications.
"During these highly challenging and uncertain times, I am buoyed
by our team's ability to maintain these essential growth drivers in
light of the changes we have made in order to operate safely and
effectively. This is a reflection of our team's ongoing quest for
high achievement, high accountability and laser focus," concluded
Mr. Slosman.
As of March 31, 2020, the Company had $7.38 million in total
assets, $3.91 million in total liabilities, and $3.48 million in
total equity.
The company's gross profit for the quarter ended March 31, 2020 was
$295,000, compared to a gross loss of $73,000 for the same period
in 2019. This increase in gross profit was primarily driven by a
higher volume of sales of CGuard EPS less the related material and
labor costs and a decrease in write-offs of inventory during the
three months ended March 31, 2020 due to the same sterilization
issue mentioned above. Gross margin increased to 28.5% in the
first quarter of 2020 from (17.6%) for the same period in 2019.
Total operating expenses for the quarter ended March 31, 2020 were
$2,316,000, a decrease of 24.2% compared to $3,057,000 for the same
period in 2019. This decrease was primarily due to a reduction of
$328,000 in clinical expenses associated with CGuard EPS, mainly
related to the IDE approval process, a decrease of $354,000 due to
settlement expenses made to a former service provider pursuant to a
settlement agreement during the three months ended March 31, 2019,
which did not occur during the three months ended on March 31, 2020
as well as $59,000 of miscellaneous expense reductions.
Financial income for the quarter ended March 31, 2020 was $43,000
compared to financial expenses of $77,000 for the same period in
2019. This increase in income of $120,000 was predominately due to
changes in exchange rates.
As of March 31, 2020, cash and cash equivalents were $3,141,000,
compared to $5,514,000 at Dec. 31, 2019.
InspireMD stated, "The Company has an accumulated deficit as of
March 31, 2020, as well as a history of net losses and negative
operating cash flows in recent years. The Company expects to
continue incurring losses and negative cash flows from operations
until its products (primarily CGuard EPS) reach commercial
profitability. As a result of these expected losses and negative
cash flows from operations, along with the Company's current cash
position, the Company has sufficient resources to fund operations
until the end of August 2020. Therefore, there is substantial
doubt about the Company's ability to continue as a going concern.
These financial statements have been prepared assuming that the
Company will continue as a going concern and do not include any
adjustments that might result from the outcome of this
uncertainty.
"Management's plans include the continued commercialization of the
Company's products and raising capital through the sale of
additional equity securities, debt or capital inflows from
strategic partnerships. There are no assurances however, that the
Company will be successful in obtaining the level of financing
needed for its operations. The COVID-19 pandemic has resulted in
significant financial market volatility and uncertainty in recent
weeks. A continuation or worsening of the levels of market
disruption and volatility seen in the recent past could have an
adverse effect on our ability to access capital and on the market
price of our common stock, and we may not be able to successfully
raise capital through the sale of our securities. If the Company
is unsuccessful in commercializing its products and raising
capital, it may need to reduce activities, curtail or cease
operations."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/3ypXbs
About InspireMD Inc.
Headquartered in Tel Aviv, Israel, InspireMD --
http://www.inspiremd.com/-- is a medical device company focusing
on the development and commercialization of its proprietary
MicroNet stent platform technology for the treatment of complex
vascular and coronary disease. A stent is an expandable
"scaffold-like" device, usually constructed of a metallic material,
that is inserted into an artery to expand the inside passage and
improve blood flow. Its MicroNet, a micron mesh sleeve, is wrapped
over a stent to provide embolic protection in stenting procedures.
InspireMD recorded a net loss of $10.04 million for the year ended
Dec. 31, 2019, compared to a net loss of $7.24 million for the year
ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $9.88
million in total assets, $4.49 million in total liabilities, and
$5.38 million in total equity.
Kesselman & Kesselman, in Tel-Aviv, Israel, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 9, 2020, citing that the Company has suffered recurring
losses from operations and cash outflows from operating activities
that raise substantial doubt about its ability to continue as a
going concern.
INTERNAP TECHNOLOGY: Taps Bank Street Group as Financial Advisor
----------------------------------------------------------------
Internap Technology Solutions Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of New
York to employ The Bank Street Group LLC as their financial
advisor.
Bank Street will provide these services in connection with the
possible sale of Debtors' assets:
(a) undertake, in consultation with members of Debtors'
management, a business and financial analysis of a potential
transaction;
(b) assist in the preparation of marketing materials
concerning the assets for distribution and presentation to
prospective acquirers;
(c) assist in the preparation and implementation of a
marketing plan;
(d) assist in the solicitation of interested prospective
acquirers and the evaluation of proposals received from such
acquirers;
(e) assist in structuring and negotiating the transaction;
and
(f) participate in meetings with Debtors' board of directors
to discuss the transactions and their financial implications.
If Debtors consummate any transaction, a fee will be due as
follows:
(i) A fee of 3.0% on the first $20 million of the Aggregate
Consideration; plus,
(ii) A fee of 2 percent of the aggregate consideration between
$20 million and $50 million; plus
(iii) A fee of 1.5 percent of the aggregate consideration in
excess of $50 million.
(iv) Any single transaction fee shall be subject to a minimum
of $500,000 except in the case of a lease which shall not be
subject a minimum fee.
(v) For a transaction in the form of a lease, the fee shall be
paid in equal annual installments over the term of the lease, based
on the aggregate gross value of the lease payments over the term of
the lease.
(vi) Should Debtors sell any of the assets as part of another
transaction not involving Bank Street, the firm shall be paid a fee
of $250,000.
If a transaction is not consummated but Debtors are or have been
granted an option to purchase any securities or assets or become
entitled to receive a breakup or topping fee or any other payment
as a result of, without limitation, (i) the termination or
cancellation of an acquiror's efforts to effect a transaction, (ii)
an amount in settlement of, or judgment in, any litigation or
dispute relating to a transaction or an acquiror's investment in
Debtors, or (iii) any other payment from an acquiror (including any
reimbursement of expenses), then Bank Street will be paid a
break-up fee in lieu of the transaction fee equal to the greater of
$50,000 and 10 percent of such fee, judgment, amount or value of
underlying securities or assets.
Richard Lukaj, a senior managing director of Bank Street, disclosed
in court filings that the firm is a "disinterested person" within
the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Richard S. Lukaj
The Bank Street Group LLC
Four Landmark Square, 3rd Floor
Stamford, CT 06901
Telephone: (203) 252-2800
Facsimile: (203) 252-2810
Email: rlukaj@bankstreet.com
About Internap Technology Solutions
Internap Corporation (NASDAQ: INAP) -- http://www.INAP.com/-- is a
leading-edge provider of high-performance data center and cloud
solutions with 100 network Points of Presence worldwide. INAP's
full-spectrum portfolio of high-density colocation, managed cloud
hosting and network solutions supports evolving IT infrastructure
requirements for customers ranging from the Fortune 500 to emerging
startups. INAP operates in 21 metropolitan markets, primarily in
North America, with 14 INAP Data Center Flagships connected by a
low-latency, high-capacity fiber network.
On March 16, 2020, Internap Technology Solutions Inc. and six
affiliated debtors, including INAP Corporation, each filed a
voluntary petition for relief under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the
Southern District of New York. The Debtors have requested that
their cases be jointly administered under lead case In re Internap
Technology Solutions Inc., et al. (Bankr. S.D.N.Y. Case No.
20-20-22393). The petitions were signed by Michael T. Sicoli,
president and chief financial officer (CFO). At the time of the
filing, Internap Technology disclosed estimated assets of $0 to
$50,000 and estimated liabilities of $100 million to $500 million.
Hon. Robert D. Drain oversees the cases.
Debtors tapped FTI Consulting as restructuring advisor, Milbank LLP
as legal counsel, Moelis & Company as financial advisor, Prime
Clerk LLC as claims agent, and Deloitte Tax LLP as tax services
provider.
INTERSTELLAR DISRUPTION: Case Summary & 20 Top Unsecured Creditors
------------------------------------------------------------------
Lead Debtor: Interstellar Disruption, LLC
d/b/a Swanky Smiles
1825 NE 45th St., Suite A
Fort Lauderdale, FL 33308
Business Description: Interstellar Disruption, LLC d/b/a Swanky
Smiles -- https://swankysmiles.com -- is a
mobile concierge orthodontic company. It is
a full-service, concierge, mobile
Orthodontic practice - conducting private
appointments at patients' homes or offices
in state-of-the-art mobile Orthodontic
clinics. Debtors Freeman Holdings, Freeman
Holdings II, and FWP Realty Holdings are
engaged in the business of renting and
leasing real estate properties.
Chapter 11
Petition Date: May 17, 2020
Court: United States Bankruptcy Court
Southern District of Florida
Six affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Interstellar Disruption, LLC 20-15407
Freeman Mobile Orthodontics PLLC 20-15408
Freeman Orthodontics, P.A. 20-15409
Freeman Holdings, L.L.C. 20-15410
Freeman Holdings II, LLC 20-15411
FWP Realty Holdings, LLC 20-15412
Judge: Hon. Paul G. Hyman, Jr.
Debtors' Counsel: Aaron Wernick, Esq.
WERNICK LAW, PLLC
2255 Glades Road Suite 324A
Boca Raton, FL 33431
Tel: 561-961-0922
Email: awernick@wernicklaw.com
Interstellar Disruption's
Estimated Assets: $1 million to $10 million
Interstellar Disruption's
Estimated Liabilities: $1 million to $10 million
Freeman Mobile Orthodontics'
Estimated Assets: $1 million to $10 million
Freeman Mobile Orthodontics'
Estimated Liabilities: $1 million to $10 million
Freeman Orthodontics'
Estimated Assets: $500,000 to $1 million
Freeman Orthodontics'
Estimated Liabilities: $1 million to $10 million
Freeman Holdings'
Estimated Assets: $500,000 to $1 million
Freeman Holdings'
Estimated Liabilities: $1 million to $10 million
Freeman Holdings II's
Estimated Assets: $500,000 to $1 million
Freeman Holdings II's
Estimated Liabilities: $1 million to $10 million
FWP Realty Holdings'
Estimated Assets: $500,000 to $1 million
FWP Realty Holdings'
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Christopher Freeman, managing member.
Copies of the petitions containing, among other items, lists of the
Debtors' 20 largest unsecured creditors are available for free at
PacerMonitor.com at:
https://is.gd/NO32f9
https://is.gd/oGL9AJ
https://is.gd/wte2aX
https://is.gd/a2EBhZ
https://is.gd/IN3FhY
https://is.gd/q9r2NB
IRON MOUNTAIN: S&P Alters Outlook to Negative, Affirms 'BB-' Rating
-------------------------------------------------------------------
S&P Global Ratings revised its outlook on Boston-based global
storage and information management services company Iron Mountain
Inc. (IRM) to negative from stable and affirmed all its ratings.
Iron Mountain Inc. (IRM) entered the global recession with a highly
leveraged balance sheet and higher credit risk resulting from the
unprecedented level of worldwide business closures caused by the
COVID-19 pandemic.
"Although we historically believed IRM's business would remain
resilient through business cycles, we have revised our expectations
and now forecast IRM's revenues to decline in the 6%-10% range in
2020 and adjusted leverage to rise above 7x, above our 6x downgrade
threshold. COVID-19-related business closures will likely
contribute to a 15%-20% decline in second-quarter revenue as
operating constraints and business closures result in a decline in
new records management volumes and a decline in service activity
and revenue," S&P said.
S&P expects negative revenue growth in 2020 based on its planning
assumption of lower new order volumes and a 40% decline in services
revenue in the second quarter. The company has implemented
temporary cost reduction actions (about $350 million on an
annualized basis) and is using the downturn as a catalyst to
broaden the scope of its Project Summit restructuring program. It
expects Project Summit to achieve $375 million of cost savings
exiting 2021 and result in $450 million of cash restructuring
charges, up from $200 million and $240 million, respectively.
Recent enhancements include an innovative initiative to replace
physical document retrievals with digital images. The initiative
represents most of the incremental cost saving and could support
IRM's digital transformation initiatives. However, it will require
renegotiations of its storage retrieval service-level agreements to
five days from one day, investments in new operating practices and
capabilities, and execution missteps could result in lower new
records volumes or higher customer churn. Accordingly, S&P's
estimate of cost savings reflects a delay in the realization of the
financial benefits compared to the large number of job cuts
announced in the first wave of the restructuring program.
Nevertheless, to date, IRM has demonstrated good execution on
Project Summit. As of March 31, 2020, IRM had spent just under $90
million to date and realized about $25 million of benefits in
first-quarter 2020.
IRM has taken limited actions to preserve its $1.25 billion
liquidity position.
Absent a refinancing event, S&P expects IRM's available liquidity
position to decline to about $700 million over the next 12 months.
Additionally, large debt maturities in mid-2021 increase IRM's
vulnerability to the uncertain impacts of the COVID-19 pandemic. As
of March 31, 2020, IRM's 2021 maturities include $500 million of
4.375% senior notes due June 1, 2021, and about $271 million
outstanding under the $300 million accounts receivable
securitization facility due July 31, 2021. Under its base case, S&P
assumes IRM's good relationships with banks and capital market
standing will result in a timely extension of the securitization
facility. S&P also assumes IRM will refinance $645 million
outstanding on its revolving credit facility at least six to nine
months prior to the note maturity.
Although operating performance will likely decline over the next 12
months, IRM's high-margin record storage and data center assets
should provide stability over the next 12-24 months. IRM's storage
business currently generates about 64% of total revenues and 83% of
gross profits as of March 31, 2020. It benefits from low customer
attrition, high switching costs, and long-term storage contracts
that provide stable and recurring revenue.
"Our key business concern is the risk arising from IRM's
significant revenue concentration in its mature paper storage
product lines that face secular pressures. Despite our expectation
for a long revenue tail from paper records currently stored in
IRM's facility, the COVID-19 pandemic could accelerate the digital
transformation of business workflows that result in a negative
cycle of higher storage destruction rates or lower new storage
volumes. While we recognize that IRM will initially benefit from
higher destruction and shredding services revenue, revised
expectations for ongoing organic storage volume declines could
result in a lower credit assessment," S&P said.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
The negative outlook reflects uncertainty regarding IRM's operating
performance amid expected earnings volatility because of the
ongoing COVID-19 pandemic and the company's restructuring program,
as well as its financial policy track record of favoring
debt-financed investments and dividend payments over leverage
reduction.
Key rating risks over the next 12 months:
-- Liquidity pressure from significant discretionary cash flow
deficits and large near-term debt maturities;
-- Ongoing COVID-19-related business disruptions, which result in
greater-than-expected revenue or EBITDA declines;
-- Execution missteps that fail to restore profitability and
adjusted leverage in 2021;
-- Ongoing organic storage volume declines as businesses
accelerate their digital transformation initiatives; and
-- Financial policy decisions that prioritize large shareholder
distributions and investments over leverage reductions.
S&P could lower its rating on IRM over the next six to 12 months
if:
-- Credit measures remain pressured and S&P becomes increasingly
confident that adjusted leverage will remain above 6x over the next
12-18 months;
-- IRM struggles to refinance its 2021 debt maturities in a timely
manner;
-- S&P expects IRM's available liquidity to fall below $500
million, net of cash required to operate the business, six to nine
months prior to the June 1, 2021, 4.375% senior note maturity; or
-- S&P forecasts a financial maintenance covenant violation.
"In this scenario, IRM would continue to use debt to fund its
growth or shareholder returns, or the extended impact of the global
economic recession would result in weak-than-expected financing or
operating conditions. It could also occur if secular pressures
increase, causing persistent organic storage or revenue declines,"
S&P said.
"In order to revise our outlook to stable, we would need to see
strong operating performance and a demonstrated commitment to
sustain leverage below 6x while IRM realizes benefits from its
extensive restructuring program," the rating agency said.
ISRS REALTY: Auction Sale of All Properties Set
-----------------------------------------------
Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern
District of New York authorized the bidding procedures of IRS
Realty, LLC and ISRS Realty, LLC in connection with the auction
sale of substantially all of their real and personal property.
The Debtors are authorized to conduct the Auction for the Sale of
the Properties in accordance with the Bidding Procedures.
Broker will promptly deliver to the Debtors and East West Bank any
offers received.
The Debtors, subject to consent by East West Bank, may approve a
stalking horse bid for each of the Properties and grant such
stalking horse bidder bid protections in the form of a break-up fee
up to 2.5% of such stalking horse bid, with such break-up fee to be
paid solely from the proceeds of sale to a higher successful bidder
at the Auction, without the need for further approval of this
Court, provided that such authority does not apply to a credit
bid.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Aug. 5, 2020 at 5:00 p.m.
b. Initial Bid: TBD
c. Deposit: TBD
d. Auction: If any Qualified Bids are received in accordance
with the Bidding Procedures, the Debtors will conduct an Auction
commencing within 5 business days of the expiration of the Bid
Deadline at the White Plains offices of the Debtors' counsel at 202
Mamaroneck Avenue, 3rd Floor, White Plains, New York. The Auction
will take place telephonically or by video, with participation
instructions to be provided to the participating parties.
e. Bid Increments: TBD
f. Sale Hearing: Aug. 24, 2020 at 10:00 a.m.
g. Sale Objection Deadline: Aug. 17, 2020 at 5:00 p.m.
h. Break-up Fee - Up to 2.5%
Notwithstanding the possible applicability of Bankruptcy Rules
6004(h), 7062, 9014 or otherwise, the terms and conditions of the
Order will be immediately effective and enforceable upon its entry,
for cause.
The Debtors will serve the Order along with the Bidding Procedures
upon: (i) the Office of the U.S. Trustee, (ii) all taxing
authorities, (iii) counsel to East West Bank, (iv) all known
creditors of the Debtors. (v) all entities known or reasonably
believed to have asserted a lien, claim, interest, or encumbrance
in either of the Properties, including all tenants at the
Properties, (vi) all potential buyers known by the Debtor as having
previously expressed interest in acquiring either of the
Properties, and (vii) all parties that have requested notice
pursuant to Bankruptcy Rule 2002 within three business days of
entry of the Order.
About ISRS Realty
ISRS Realty and IRS Realty are single asset real estate debtors (as
defined in 11 U.S.C. Section 101(51B)).
ISRS Realty and IRS Realty each filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case Nos. 18-23867 and 18-23868, respectively) on Dec. 5, 2018. In
the petitions signed by Dr. Rajeev Sindhwani, managing member, the
Debtors each estimated $1 million to $10 million in both assets and
liabilities.
Julie Cvek Curley, Esq., and Erica R. Aisner, Esq., at DelBello
Donnellan Weingarten Wise & Wiederkehr, LLP, initially served as
the Debtors' counsel. The Debtors later tapped Rattet PLLC as
substitute attorneys.
J.D. BEAVERS: Unsecured Creditors to Have 15% Recovery under Plan
-----------------------------------------------------------------
Debtor J.D. Beavers Co. LLC filed with the United States Bankruptcy
Court for the Eastern District of Michigan (Flint) a Combined Plan
of Reorganization and Disclosure Statement dated May 1, 2020.
Class VI consists of all Allowed General Unsecured Claims. Based
upon unsecured claims of $1,064,241. Payments are paid at 15%,
with the first payments in month 5 at $400 per month. Payments
increase in year 2 and vary in amounts from to $1,950 to $4,450 per
month for the following 48 months. Total payments over 55 months
are $159,636.
In addition, the net proceeds of all Avoidance Actions (other than
Avoidance Actions challenging Security Interests and Liens), if
any, shall be distributed to Holders of Allowed Class VI Claims.
Class VIII: This Class consists of the Claims of Interests of
Debtor held by Mr. Beavers, the sole Class VIII Interest Holder.
The Interests of this Class will be treated as follows:
Notwithstanding whether Class VI votes to accept or to reject the
Plan, Class VIII shall contribute new value in the amount of
$60,000 to the Debtor in exchange for receiving the equity in the
Reorganized Debtor. At the time of Confirmation of the Plan, and
if the Class of Unsecured Creditors have voted to reject the Plan,
then the Debtor shall present evidence demonstrating that the
elements of a new value contribution are satisfied.
The Plan provides that the liens asserted by First Home Bank,
Independence Bank, Loan Builder-Pay/Pal, and Idea 247, Inc.
(Unsecured Lenders) against the Debtor’s personal property assets
are fully unsecured because the dollar amount secured by liens held
by creditors senior in position to the liens of the Unsecured
Lenders fully encumber the Debtor’s personal property.
The Debtor has sufficient Cash, in the Debtor’s reasonable
discretion, to pay all Allowed Administrative Claims and Allowed
Priority Claims required to be paid by this Plan as of the
Effective Date.
The Reorganized Debtor will retain control of and be responsible
for all of Debtor's operations after the Effective Date. Funding
for the operations of Debtor’s business and for distributions
required under this Plan during the Payment Period shall be from
the operation of Debtor’s business, except as otherwise set forth
in this Plan.
A full-text copy of the Disclosure Statement dated May 1, 2020, is
available at https://tinyurl.com/yca8fvyj from PacerMonitor at no
charge.
The Debtor is represented by:
THE FOX LAW CORPORATION
Steven R. Fox
17835 Ventura Blvd., Suite 306
Encino, CA 91316
Tel: (818) 774-3545
E-mail: SRFox@FoxLaw.com
- and -
SCHAFER AND WEINER, PLLC
Jeffery J. Sattler
40950 Woodward Ave., Ste. 100
Bloomfield Hills, MI 48304
Tel: (248) 540-3340
E-mail: jsattler@schaferandweiner.com
About Debtor J.D. Beavers
J.D. Beavers Co. LLC is a recycling company in Brighton, Michigan
that converts scrap metal into reusable raw materials for the metal
making industry. The company buys aluminum, carbide, coated wire,
copper, brass & red metals, gold & silver, lead acid battery, niton
XL3t, steel, stainless steel, and tool steel. The Company filed a
Chapter 11 petition (Bankr. E.D. Mich. Case No. 19-32748) on Nov.
20, 2019 in Flint, Michigan.
In the petition signed by John D. Beavers, president, the Debtor
was listed with total assets at $950,945 and total liabilities at
$2,495,614.
Judge Joel D. Applebaum administers the case. Schafer and Weiner,
PLLC, and The Fox Law Corporation, Inc., serve as counsel to the
Debtor.
JAGUAR HEALTH: Reports $8.4 Million Net Loss for First Quarter
--------------------------------------------------------------
Jaguar Health, Inc., reported a net loss attributable to common
shareholders of $8.42 million on $869,000 of total revenue for the
three months ended March 31, 2020, compared to a net loss
attributable to common shareholders of $8.30 million on $1.59
million of total revenue for the three months ended March 31,
2019.
As of March 31, 2020, the Company had $33.28 million in total
assets, $16.67 million in total liabilities, $10.37 million in
series A redeemable convertible preferred stock, and $6.23 million
in total stockholders' equity.
The Company, since its inception, has incurred recurring operating
losses and negative cash flows from operations and has an
accumulated deficit of $141.0 million as of March 31, 2020. The
Company expects to incur substantial losses and negative cash flows
in future periods. Further, the Company's future operations are
dependent on the success of the Company's ongoing development and
commercialization efforts, as well as the securing of additional
financing and generating positive cash flows from operations.
There is no assurance that the Company will have adequate cash
balances to maintain its operations. In addition, as a result of
the recent outbreak of novel COVID-19, the Company may experience
disruptions in fiscal year 2020 and beyond that could severely
impact its supply chain, ongoing and future clinical trials and
commercialization of Mytesi.
Jaguar Health said, "Although the Company plans to finance its
operations and cash flow needs through equity and/or debt
financing, collaboration arrangements with other entities, license
royalty agreements, as well as revenue from future product sales,
the Company does not believe its current cash balances are
sufficient to fund its operating plan through one year from the
issuance of these condensed consolidated financial statements. The
Company has an immediate need to raise cash. There can be no
assurance that additional funding will be available to the Company
on acceptable terms, or on a timely basis, if at all, or that the
Company will generate sufficient cash from operations to adequately
fund operating needs. If the Company is unable to obtain an
adequate level of financing needed for short-term operations and
the long- term development and commercialization of its products,
the Company will need to curtail planned activities and reduce
costs. Doing so will likely have an adverse effect on the
Company's ability to execute on its business plan; accordingly,
there is substantial doubt about the ability of the Company to
continue in existence as a going concern."
Potential Impact of the COVID-19
The Company said that as a result of the recent outbreak of novel
COVID-19, it may experience disruptions that could severely impact
its supply chain, ongoing and future clinical trials and
commercialization of Mytesi. It is currently not possible to
predict how long the pandemic will last or the time that it will
take for economic activity to return to prior levels. The Company
does not yet know the full extent of any impact on its business or
operations. The Company will continue to monitor the COVID-19
situation closely, and intend to follow health and safety
guidelines as they evolve.
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/59AevY
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial
stage pharmaceuticals company focused on developing novel,
sustainably derived gastrointestinal products on a global basis.
The Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc.,
focuses on developing and commercializing proprietary human
gastrointestinal pharmaceuticals for the global marketplace from
plants used traditionally in rainforest areas. Its Mytesi
(crofelemer) product is approved by the U.S. FDA for the
symptomatic relief of noninfectious diarrhea in adults with
HIV/AIDS on antiretroviral therapy.
Jaguar reported a net loss of $38.54 million for the year ended
Dec. 31, 2019, compared to a net loss of $32.15 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$36.41 million in total assets, $15.84 million in total
liabilities, $9.89 million in series A redeemable convertible
preferred stock, and $10.67 million in total stockholders' equity.
Mayer Hoffman McCann P.C., in San Francisco, California, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated April 2, 2020 citing that the
Company has experienced losses since inception, significant cash
used in operations, and is dependent on future financing to meet
its obligations and fund its planned operations. These conditions
raise substantial doubt about its ability to continue as a going
concern.
JAMES HARDIE: S&P Alters Outlook to Negative, Affirms 'BB' ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed the 'BB' issuer credit rating on James Hardie
International Group Ltd.
S&P is revising the outlook on James Hardie to negative from stable
because the rating agency expects sharply reduced remodeling
spending and homebuilding activity over the next one to two
quarters. Efforts to contain the COVID-19 outbreak have put the
U.S. into recession. S&P's 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 higher price
point and premium products.
"Also affecting the company's sales, in our view, will be a decline
in the level of U.S. housing starts, which is likely in this
climate," S&P said.
S&P currently forecasts annualized housing starts to drop to 1.1
million in the second and third quarters of calendar year 2020,
from a 1.3 million pace last year. The company has exposure in the
European and Australian markets, where housing conditions had been
soft before the coronavirus pandemic, and S&P believes these
regions will also be pressured.
In the current macroeconomic environment, S&P forecasts James
Hardie's debt leverage to deteriorate, potentially reaching 4x or
higher by the end of 2021 (ending March 31, 2021). For fiscal
2021, S&P expects the company to see a double-digit decline in
revenue with a similar drop in EBITDA. While S&P had previously
forecast debt to EBITDA to improve to about 3x at fiscal year-end
2020, the rating agency now sees the potential for leverage to rise
to 4x. However, S&P expects the company to generate free operating
cash flow compared with negative free cash flow generation in
fiscal 2019.
The company has a leading market share in the cement fiberboard
segment but competes against lower-priced alternatives, such as
vinyl, in the siding industry. Being the No. 1 player in the North
American fiber cement market enables the company to penetrate the
siding market further. Although fiber cement has gained share over
the past decade, it still only accounts for about 25% of new
single-family homes. Cement fiberboard has stiff competition from
lower-priced siding materials, specifically engineered wood
products. Lower-priced, more traditional products such as vinyl and
wood continue to make up about 50% of the total market. With
macroeconomic factors such as consumer confidence, disposable
income, and employment weakening, S&P believes this puts James
Hardie at risk as consumers might use an alternative product with a
lower price point.
James Hardie has a large asbestos liability that S&P views as debt
and incorporate into its net leverage ratio. S&P expects the
company's adjusted debt to be about $1.9 billion, including
asbestos liabilities of $516 million as of Dec. 31, 2019. Average
actuarial claim settlement for year-to-date December 2019 were 8%
lower than the estimates. S&P believes future payouts will continue
to decline. James Hardie contributes up to 35% of its annual free
cash flow to the Asbestos Injuries Compensation Fund (the AICF), in
accordance with the amended and restated final funding agreement
(AFFA)." This commitment to fund the AICF extends to at least 2045,
with recurring automatic 10-year extension periods, if required. In
fiscal 2021, James Hardie will now make quarterly AICF payments
rather than annual payments.
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., Europe, and Asia Pacific. S&P
expects most of the disruptions to housing starts to occur in
second and third quarters of calendar year 2020, with modest
recovery beginning in early calendar year 2021. However, a longer
downturn would likely result in debt leverage exceeding 4x well
into the company's fiscal 2021.
S&P could lower the rating over the next 12 months if:
-- The fallout from the coronavirus spread continued, and there
were 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 25%; and
-- Such a decline would result in debt to EBITDA trending above 4x
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 were shorter in
duration or had less of an impact on new home construction and
repair and remodeling spending than S&P currently expects, or
-- The company had the ability to sustain debt to EBITDA between
3x and 4x by the end of fiscal 2021 and continued levels of
positive cash flow generation.
JB AND COMPANY: June 2 Plan & Disclosure Hearing Set
----------------------------------------------------
On April 20, 2020, debtor JB and Company Chevron, LLC, filed with
the U.S. Bankruptcy Court for the District of New Mexico a
Disclosure Statement and Plan.
On April 30, 2020, Judge Robert H. Jacobvitz conditionally approved
the Disclosure Statement and established the following dates and
deadlines:
* May 26, 2020, is fixed as the last day for filing and serving
written objections to the Disclosure Statement and filing and
serving written objections to confirmation of the Plan.
* May 26, 2020, is fixed as the last day to submit written
acceptances or rejections of the Plan to the debtor’s attorney.
* A status conference will be held on May 28, 2020, at 9:30 a.m.
to address logistical issues relating to the final hearing.
* June 2, 2020, at 1:30 p.m., in the Gila Courtroom, Fifth Floor,
Pete V. Domenici Federal Building and United States Courthouse, 333
Lomas Blvd. NW, Albuquerque, New Mexico is the hearing to consider
final approval of the Disclosure Statement and confirmation of the
Plan.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/yd5vrwh3 from PacerMonitor at no charge.
The Debtor is represented by:
Michael K. Daniels
P.O. Box 1640
Albuquerque, NM 87103
Telephone: (505) 246-9385
About JB and Company Chevron
JB and Company Chevron, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.M. Case No. 19-11504) on June 24,
2019. At the time of the filing, the Debtor was estimated to have
assets of less than $500,000 and liabilities of less than $1
million. The case is assigned to Judge Robert H. Jacobvitz.
Michael K. Davis, Esq., is counsel to the Debtor.
JONATHAN R. SORELLE: Taps Nicholas Rubin of Force Ten as CRO
------------------------------------------------------------
Jonathan R. Sorelle, M.D., PLLC and The Minimally Invasive Hand
Institute, LLC seek permission from the U.S. Bankruptcy Court for
the District of Nevada to employ Force Ten Partners, LLC to
designate Nicholas Rubin as chief restructuring officer and provide
other financial advisory and management services.
Services Mr. Rubin and Force Ten will render are:
a. manage the affairs of the Debtors, supervise the Debtors'
employees, management and professionals and provide periodic
reports to the Special Committee (as defined in the Engagement
Letter);
b. assist legal counsel and the Debtors executing these
Chapter 11 Cases;
c. assist the CRO and employees of the Debtors by providing
support services to the CRO and Debtors;
d. seek debtor-in-possession financing for the Debtors;
e. seek exit financing the Debtors;
f. seek to maximize the value of the Debtors assets through
the sale of real property;
g. seek to refinance the Debtors' existing indebtedness;
h. seek to maximize the value of the Debtors assets and
operations through structuring the operations of the Debtors'
business;
i. seek to maximize the value of the Debtors' assets and
operations through, among other things, the potential: sale,
recapitalization, restructuring or reorganizing of the Debtors'
business, in whole or in part;
j. provide assistance in connection with motions, responses or
other court activity as directed by legal counsel;
k. provide Monthly Operating Reports required by a bankruptcy
court as required;
l. provide periodic reporting to stakeholders;
m. evaluate and develop restructuring plans and other
strategic alternatives for maximizing the value of the Debtors'
assets. The CRO, the Debtors, the Debtors' legal counsel, and other
professionals shall recommend various plans or alternatives from
time to time, and upon receipt of approval of a proposed course of
action, the CRO shall use commercially reasonable efforts to
attempt to implement such course of action;
n. assist in the formulation and preparation of the Debtors'
disclosure statement and plan of reorganization, if applicable,
including the creation of financial projections and supporting
methodology, key assumptions and rationale, appropriate financial
analysis and evaluation of the Debtors' operations, and supporting
financial statements and proforma budgets and projections;
o. assist in negotiations with the Debtors' creditors and
responding to any objections to the bankruptcy plan by parties in
interest; and
p. prepare and offer declarations, reports, depositions and
in-court testimony.
Force Ten's hour rates are:
Partners $650 – $750
Directors $350 – $595
Analysts $225 – $350
Staff $100 – $225
Rubin's hourly rate is $750.
Force Ten is a "disinterested person" as defined in section 101(14)
of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Nicholas Rubin
Force Ten Partners LLC
20341 SW Birch Suite 220
Newport Beach, CA 92660
Office: (949) 357-2364
Mobile: (949) 633-1628
Email: nrubin@force10partners.com
JPW INDUSTRIES: Moody's Cuts CFR & Sr. Secured Rating to Caa1
-------------------------------------------------------------
Moody's Investors Service has downgraded JPW Industries Holding
Corporation's Corporate Family Rating to Caa1 from B3, Probability
of Default Rating to Caa1-PD from B3-PD and the rating on the
company's senior secured bond to Caa1 from B3. The outlook remains
stable.
The downgrade reflects a combination of declining sales within the
company's Baileigh brand exacerbated by slowing demand for
industrial products amid the coronavirus pandemic, which will lead
to significant underperformance in earnings and a deterioration in
credit metrics relative to Moody's prior expectations. The stable
outlook reflects Moody's expectation that JPW will maintain good
liquidity over the next 12-18 months, including the generation of
positive modest free cash flow.
Downgrades:
Issuer: JPW Industries Holding Corporation
Corporate Family Rating, Downgraded to Caa1 from B3
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD
Senior Secured Bond, Downgraded to Caa1 (LGD4) from B3 (LGD4)
Outlook Actions:
Issuer: JPW Industries Holding Corporation
Outlook, Remains Stable
RATINGS RATIONALE
JPW's Caa1 CFR is constrained by high financial leverage, which
will remain above 7x over the next 12-18 months, reduced sales from
the company's industrial products business and the inability to
address sales declines within its Baileigh brand, acquired in May
2019. The rating also considers the company's global distribution
platform and good diversification by product, end market and
customer. However, JPW's small scale relative to industry peers and
high supplier concentration leaves the company more vulnerable to
market disruptions and therefore offsets much of the
diversification benefits.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The weaknesses in
JPW's credit profile, including its exposure to the decreased
demand for industrial products have left it vulnerable to shifts in
market sentiment in these unprecedented operating conditions and
JPW 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.
Moody's expects JPW to maintain good liquidity over the next 12-18
months, which incorporates $41 million in cash at the end of Q1
2020, anticipated positive free cash flow and no near-term debt
maturities. The rating also includes the risks associated with
private equity ownership.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company reduces adjusted
debt-to-EBITDA below 6.5x and increases adjusted EBITA-to-interest
expense above 1.5x. An upgrade would also be predicated on
maintenance of positive free cash flow.
The ratings could be downgraded if adjusted debt-to-EBITDA exceeds
8.0x and adjusted EBITA-to-interest expense approaches 1.0x, both
for a sustained period. Significant weakening of liquidity,
including negative free cash flow, could also trigger a downgrade.
The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.
JPW Industries Holding Corporation, headquartered in La Vergne, TN,
is a global designer, developer, marketer and value-added
distributor of branded specialty shop tools and equipment for a
broad range of applications and end markets. JPW is privately owned
by an affiliate of Gamut Capital Management. The company's brands
include Jet, Wilton, Powermatic, Promac, Edwards and Baileigh,
comprising a variety of price points and end-users. For the twelve
months ended March 31, 2020, JPW generated approximately $284
million in revenue.
KDJJ ENTERPRISES: 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 KDJJ Enterprises, Inc.
About KDJJ Enterprises
KDJJ Enterprises, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 20-03441) on March 30,
2020. At the time of the filing, Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range. Don C. Fletcher, Esq., at Lake and Cobb, PLC, is Debtor's
legal counsel.
KIM DOLLEH: Seeks to Hire Falcone Law as Counsel
------------------------------------------------
Kim Dolleh Center LLC seeks authority from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Falcone Law
Firm, P.C., as counsel to the Debtor.
Kim Dolleh requires Falcone Law to:
a. give legal advice regarding its rights, powers and duties
in the administration of its Chapter 11 case and assets of
the bankruptcy estate;
b. assist the Debtor in connection with the analysis of its
assets, liabilities, financial condition and other matters
related to its business;
c. assist in the preparation, negotiation and implementation
of a plan of reorganization;
d. assist the Debtor in the sale or disposition of assets of
its bankruptcy estate;
e. conduct examinations;
f. provide assistance to the Debtor with regard to the proper
receipt, disbursement and accounting for funds and property
of the estate; and
g. provide other legal services related to the case.
The firm will charge these hourly fees:
Senior Attorneys $350
Associate Attorneys $200
Paralegals $150
Administrative Assistants $50
Ian Falcone, Esq., a member of Falcone Law Firm, attests that his
firm is a "disinterested person" under section l0l(14) of the
Bankruptcy Code with regard to the matters upon which it is to be
engaged.
The firm can be reached through:
Ian M. Falcone, Esq.
The Falcone Law Firm, P.C.
363 Lawrence Street
Marietta, GA 30060
Phone: (770) 426-9359
Fax : 770-426-8968
E-mail: attorneys@falconefirm.com
About Kim Dolleh Center LLC
Kim Dolleh Center LLC, based in Alpharetta, GA, filed a Chapter 11
petition (Bankr. N.D. Ga. Case No. 20-66085) on May 4, 2020. In
the petition signed by Kim Summers-Dolleh, managing member, the
Debtor was estimated to have $1 million to $10 million in both
assets and liabilities. Ian Falcone, Esq., of Falcone Law Firm,
serves as bankruptcy counsel to the Debtor.
LATEX FOAM: June 5 Auction of All Assets Set
--------------------------------------------
Judge Julie A. Manning of the U.S. Bankruptcy Court for the
District of Connecticut authorized the bidding procedures of Latex
Foam International, LLC, and its debtor-affiliates in connection
with the sale of substantially all of their assets to Polycap
Advisors, LLC, set forth in their Asset Purchase Agreement, dated
April 28, 2020, subject to overbid.
The form and manner of service of the Notice Of Auction And Sale
described in the Motion are approved in all respects. On May 13,
2020, the Debtors will serve the Notice Of Auction and Sale on all
Sale Notice Parties.
The Buyer will constitute a Qualified Bidder for all purposes and
in all respects with regard to the Bid Procedures. For the
avoidance of doubt, EGC will have the right to credit bid pursuant
to Bankruptcy Code section 363(k).
The salient terms of the Bidding Procedures are:
a. Bid Deadline: June 3, 2020 at 2:00 p.m. (ET)
b. Initial Bid: At least $50,000 greater than the purchase
price contained in the APA, including all cash, non-cash
consideration and Assumed Liabilities, plus the Break-Up Fee
c. Deposit: $100,000
d. Auction: If the Debtors receive an additional Qualified Bid
and/or the EGC Notice, the Debtors will conduct the Auction on June
5, 2020, commencing at 10:00 a.m. (ET) at the offices of Zeisler &
Zeisler, PC, 10 Middle Street, Bridgeport CT 06604, or such other
place and time as the Debtors will notify Qualified Bidders. If
the Auction cannot be held in person due to COVID-19 coronavirus
related restrictions, the Debtors will make arrangements to conduct
the Auction remotely and the Debtors will ensure that the Auction
is properly recorded and results of the Auction transcribed.
e. Bid Increments: $50,000
f. Sale Hearing: June 12, 2020, at 10:00 a.m. (ET)
g. Sale Objection Deadline: June 10, 2020 by 12:00 noon (ET)
h. Break-up Fee: $100,000
The Debtors are authorized to enter into the APA.
Notwithstanding the possible applicability of Bankruptcy Rule
6004(h), the Order will take effect immediately upon its entry.
A copy of the Bidding Procedures is available at
https://tinyurl.com/y8td33eq from PacerMonitor.com free of charge.
About Latex Foam International
Latex Foam International, LLC, which conducts business under the
name Talalay Global, provides textile furnishing products. It
offers house furnishings such as blankets, bedspreads, sheets,
table clothes, towels, and shower curtains.
Latex Foam International and four affiliates filed voluntary
petitions seeking relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Conn. Lead Case No. 19-51064) on Aug. 8, 2019. The
petitions were signed by Marc Navarre, chief executive officer. At
the time of the filing, the Debtors were estimated to have assets
between $10 million and $50 million and liabilities of the same
range. Judge Julie A. Manning oversees the case. James Berman,
Esq., at Zeisler & Zeisler, P.C., is the Debtors' counsel.
LIVE NATION: S&P Cuts ICR to 'B+'; Outlook Negative
---------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
Live Nation Entertainment Inc. to 'B+' from 'BB-' and removed its
ratings from CreditWatch, where it placed them with negative
implications on March 16, 2020. The outlook is negative.
At the same time, S&P is lowering its issue-level ratings on the
secured debt to 'BB-' from 'BB' and on the unsecured debt to 'B'
from 'B+'. S&P is assigning a 'BB-' issue-level rating to the
proposed $800 million in senior secured notes in line with the
rating on the existing secured debt facilities.
"The downgrade and negative outlook reflect our expectation that
the company's revenues and EBITDA will decline dramatically during
the coronavirus outbreak in 2020 due to a significant number of
canceled and postponed events. We also believe there is substantial
risk that delayed live music event scheduling and poor event
attendance could cause credit metrics to remain weak with leverage
above 6x and free operating cash flow (FOCF) to debt around 5% over
the next two years," S&P said.
Global live music events have been postponed or canceled during the
coronavirus outbreak resulting in dramatically lower revenues for
Live Nation. The increased social distancing efforts and
government policies resulting from the coronavirus outbreak have
caused a stoppage in live music events operated or supported by
Live Nation since mid-March. Currently, most of the company's
events previously scheduled to happen over the next few months have
been postponed and could be rescheduled to later dates in the
second half of 2020 or into 2021, depending on when the pandemic
risk lessens. Some music events have been canceled outright,
although these cases remain a minority.
As a result of these scheduling uncertainties and S&P's expectation
that social distancing restrictions will extend throughout the
summer, the busiest season for live music events, S&P believes Live
Nation revenues could decline by 65%-80% in 2020 before rebounding
significantly in 2021 as live events and attendance return.
The company has announced substantial cost management actions, but
S&P expects EBITDA and cash flow generation to be negative in 2020.
The company's revenue declines will be dramatic and challenge Live
Nation to realign its cost structure during this period of minimal
concert activity. As a result, S&P believes the company is
aggressively managing its variable cost structure. Specifically,
the company has announced a number of cost actions to mitigate
losses in profitability including variable cost management of its
concert platform, rent re-negotiations, cuts to executive
compensation, and staff furloughs. Announced actions also include
cash management initiatives such as accounts payable management and
reductions in planned capital expenditures. However, even with
these cost and cash management initiatives, S&P believes the
company's EBITDA and free cash flow generation will be
substantially negative in 2020.
S&P highlights that the company's future cash flow is exposed to
changes in consumer behavior surrounding ticket refunds during this
coronavirus outbreak. Currently, consumers are automatically
refunded for canceled events and ticketholders have the option to
request a refund if their show is postponed and a new show date has
been announced. To date, a sizable majority of ticketholders for
postponed and rescheduled events have opted to retain their tickets
for use at a future date. However, if more consumers request
refunds, it could increase cash outflows over the next 12 months.
As a result of these profitability and cash flow expectations S&P
believes adjusted leverage and FOCF to debt will be negative in
2020 before improving to the high-5x area and 5%-10% range,
respectively, in 2021.
The proposed senior secured notes issuance will provide additional
liquidity during the COVID-19 outbreak. Live Nation's proposed
issuance of $800 million in senior secured notes will provide
additional liquidity as the company manages negative EBITDA and
cash flow throughout 2020.
"While the notes represent a substantial increase in the company's
funded debt, we do not believe the notes will materially affect our
view of the company's financial risk because the transaction
proceeds will be used for general corporate purposes and the
respective cash balance will be netted against debt in our credit
ratios. The notes are ranked pari passu with the existing senior
secured revolving credit facility, delayed-draw term loan A, and
term loan B. As such, we have rated this issue 'BB-', in line with
the existing secured debt," S&P said.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
The negative outlook reflects Live Nation's exposure to postponed
and canceled events during the COVID-19 pandemic and uncertainty
surrounding the ensuing economic recovery and timing of the
resumption of events. S&P believes there is substantial risk that
social disruptions could persist for an extended period or that the
company will be unable to successfully manage its cost structure
such that leverage remains above 6x for an extended period.
"We could lower the rating if we believe that live music event
postponements and cancelations will increase due to a prolonged
coronavirus pandemic causing revenues to remain minimal. We could
also lower the rating if the company is unable to successfully
manage its costs and cash flows, including an unfavorable
acceleration of cash refunds for postponed live events and
corresponding reductions in cash balances. Under these scenarios we
believe leverage would remain above 6x and FOCF-to-debt would
remain around 5% in 2021 and beyond," S&P said.
"We could revise the outlook to stable if the company successfully
reschedules its live music events over the next 12 months and
contains its variable costs structure while restoring cash flows
despite the disruption caused by coronavirus. Under this scenario,
we would expect the company to maintain leverage well below 6x in
2021 and beyond," the rating agency said.
LSC COMMUNICATIONS: Hires AlixPartners as Financial Advisor
-----------------------------------------------------------
LSC Communications, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Southern District of New
York to employ AlixPartners, LLP, as their financial advisor.
The Debtors require AlixPartners to:
a. prepare budgets and 13-week cash forecasts and evaluating
variances thereto, as required by the Debtors' lenders;
b. assist with business planning and related financial
modelling;
c. assist with diligence requests of the various creditor
constituencies;
d. identify and assist with implementation of near-term cost
reduction opportunities and operational restructuring initiatives;
e. assist with liquidity management, including negotiation of
vendor terms;
f. assist with development and implementation of employee
incentive programs that align with restructuring strategy and
objectives;
g. assist the Debtor and its investment banker with the asset
sale process;
h. prepare the statement of financial affairs, schedules and
other regular reports required by the Bankruptcy Court, as well as
assist with a Disclosure Statement and Plan of Reorganization, if
applicable;
i. assist the Debtors' counsel with its preparation of motions
to be filed with the Bankruptcy Court or the Debtors' response to
Motions filed by other parties-in-interest;
j. assist with the design, negotiation and implementation of a
restructuring strategy;
k. provide testimony before the Bankruptcy Court on matters
that are within the scope of this engagement and within APS's area
of testimonial competencies, if applicable;
l. assist with such other matters as may be requested that
fall within APS's expertise and that are mutually agreeable.
AlixPartners will be paid at these hourly rates:
Managing Director $1,000 to $1,195
Director $800 to $950
Senior Vice President $645 to $735
Vice President $470 to $630
Consultant $175 to $465
Paraprofessional $295 to $315
AlixPartners received unapplied advance payments from the Debtors
in the amount of $1,000,000.
Alan D. Holtz, managing director of AlixPartners, LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
AlixPartners can be reached at:
Alan D. Holtz
ALIXPARTNERS LLP
909 Third Avenue
New York, NY 10022
Tel: (212) 490-2500
About LSC Communications, Inc.
LSC Communications, Inc. -- http://www.lsccom.com/-- is a Delaware
corporation established in 2016 with its headquarters located in
Chicago, Illinois. The Debtors offer a broad range of traditional
and digital print products, print-related services, and office
products. The Company serves the needs of publishers,
merchandisers, and retailers worldwide, with a service offering
that includes e-services, logistics, warehousing and fulfillment
and supply chain management services. The Company prints magazines,
catalogs, directories, books, and some direct mail products, and
manufactures office products, including filing products, envelopes,
note-taking products, binder products, and forms. The Company has
offices, plants, and other facilities in 28 states, as well as
operations in Mexico, Canada, and the United Kingdom.
LSC COMMUNICATIONS: Hires Evercore Group as Investment Banker
-------------------------------------------------------------
LSC Communications, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Evercore Group L.L.C. as their financial advisor and
investment banker.
The services that Evercore will provide are:
a. reviewing and analyzing the Debtors' business, operations
and financial projections;
b. advising and assisting the Debtors in any Restructuring,
Financing and/or Sale transactions, if the Debtors determine to
undertake such a transaction;
c. providing financial advice in developing and implementing a
Restructuring, which would include:
i. assisting the Debtors in developing a restructuring plan
or plan of reorganization, including a plan of reorganization
pursuant to the Bankruptcy Code;
ii. advising the Debtors on tactics and strategies for
negotiating with various stakeholders regarding the Plan;
iii. providing testimony, as necessary, with respect to
matters on which Evercore has been engaged to advise the Debtors in
any proceedings before the Court; and,
iv. providing the Debtors with other financial restructuring
advice as Evercore and the Debtors may deem appropriate.
d. If the Debtors pursue a Financing, assisting the Debtors
in:
i. structuring and effecting a Financing;
ii. identifying potential Investors and, at the Debtors'
request, contacting such Investors; and
iii. working with the Debtors in negotiating with potential
Investors.
e. If the Debtors pursue a Sale, assisting the Debtors in:
i. structuring and effecting a Sale;
ii. identifying interested parties and/or potential
acquirors and, at the Debtors' request, contacting such interested
parties and/or potential acquirors; and
iii. advising the Debtors in connection with negotiations
with potential interested parties and/or acquirors and aiding in
the consummation of a Sale transaction.
Evercore will be paid as follows:
a. A monthly fee of $175,000, payable on execution of the
Engagement Letter and on the 9th day of each month commencing
January 9, 2020 until the earlier of the consummation of the
Restructuring or Sale transactions or the termination of Evercore's
engagement; provided, however, that so long as Monthly Fees for
months 1 through 6 have actually been earned and paid, $87,500 per
month of the Monthly Fee actually paid for months 7 onward shall be
credited (without duplication) against any Restructuring Fee,
Financing Fee or Sale Fee payable; provided, that any such credit
of fees contemplated by this sentence shall only apply to the
extent that all such fees earned by Evercore are approved in their
entirety by the Court pursuant to a final order not subject to
appeal and which order is acceptable to Evercore.
b. A fee (Restructuring Fee), payable upon the consummation of
any Restructuring of $6.25 million.
c. A fee (Sale Fee), payable upon consummation of any Sale,
equal to $5 million if the Sale is of all or substantially all of
the Debtors; $3 million if the Sale is of one of the Debtors'
Segments, $6 million if the Sale is of two of the Debtors'
Segments, and $7.5 million if the Sale is of three or more of the
Debtors' Segments. The segments are (i) Magazines, Catalogues and
Logistics, (ii) Books, (iii) Office Products and (iv) Mexico.
d. A fee (Financing Fee), payable upon consummation of any
Financing and incremental to any Restructuring Fee or Sale Fee,
equal to:
i. If Evercore serves as the placement agent or similar
function on such Financing, the applicable percentage(s) (provided,
however, that, if Evercore serves as the placement agent on a
Financing, the Debtors and Evercore will enter into an appropriate
form of agreement relating to the type of transaction involved and
containing customary terms and conditions, including provisions
relating to our indemnity):
Financing As a Percentage of
Financing Gross
Proceeds
Indebtedness Secured by a First Lien 1.00%
Indebtedness Not Secured by a First Lien 3.00%
Equity or Equity-linked Securities/Obligations 5.00%
For purposes of calculating such Financing Fee, "Gross Proceeds"
shall equal the aggregate amount of capital committed, whether or
not drawn or funded.
ii. If Evercore does not serve as the placement agent or
similar function on such Financing, a fee to be mutually agreed
upon based upon good faith negotiations, subject to further Court
order.
Evercore is a "disinterested person" within the meaning of section
101(14) of the Bankruptcy Code, as required by section 327(a) of
the Bankruptcy Code, and does not hold or represent an interest
materially adverse to the Debtors' estates; and has no connection
to the Debtors, their creditors or other parties in interest in
these chapter 11 cases, according to court filings.
The firm can be reached through:
Stephen Hannan
Evercore Group L.L.C.
55 East 52nd Street
New York, NY 10055
Tel: +1 212-857-3100
About LSC Communications, Inc.
LSC Communications, Inc. -- http://www.lsccom.com/-- is a Delaware
corporation established in 2016 with its headquarters located in
Chicago, Illinois. The Debtors offer a broad range of traditional
and digital print products, print-related services, and office
products. The Company serves the needs of publishers,
merchandisers, and retailers worldwide, with a service offering
that includes e-services, logistics, warehousing and fulfillment
and supply chain management services. The Company prints magazines,
catalogs, directories, books, and some direct mail products, and
manufactures office products, including filing products, envelopes,
note-taking products, binder products, and forms. The Company has
offices, plants, and other facilities in 28 states, as well as
operations in Mexico, Canada, and the United Kingdom.
LSC Communications, Inc., based in Chicago, IL, and its
debtor-affiliates, filed a Chapter 11 petition (Bankr. S.D.N.Y.
Lead Case No. 20-10950) on April 13, 2020. In its petition, the
Debtor estimated $1,649,000,000 in assets and $1,721,000,000 in
liabilities. The petition was signed by Andrew B. Coxhead, chief
financial officer.
The Debtors hire SULLIVAN & CROMWELL LLP as counsel; YOUNG CONAWAY
STARGATT & TAYLOR, LLP, as co-counsel; EVERCORE GROUP L.L.C., as
investment banker; ALIXPARTNERS LLP as restructuring advisor; PRIME
CLERK LLC as notice, claims and balloting agent.
LSC COMMUNICATIONS: Hires Prime Clerk LLC as Administrative Advisor
-------------------------------------------------------------------
LSC Communications, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Prime Clerk LLC as administrative advisor.
LSC requires Prime Clerk to:
(a) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a chapter 11 plan, and in
connection with such services, process requests for documents from
parties-in-interest, including, if applicable, brokerage firms,
bank back-offices and institutional holders;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
chapter 11 plan; and
(f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtors, the Court or the
Office of the Clerk of the Bankruptcy Court.
The firm will be paid at these rates:
Claim/Noticing Rates:
Analyst $30 - $50
Technology Consultant $35 - $95
Consultant/Senior Consultant $65 - $165
Director $175 - $195
COO/Executive VP No charge
Solicitation Consultant $190
Director of Solicitation $210
Prime Clerk is a "disinterested person" within the meaning of
section 101(14) of the Bankruptcy Code, as required by section
327(a) of the Bankruptcy Code, and does not hold or represent any
interest materially adverse to the Debtors' estates in connection
with any matter on which it would be employed, as disclosed in the
court filings.
The firm can be reached through:
Benjamin J. Steele
Prime Clerk LLC
One Grand Central Place
60 East 42nd Street, Suite 1440
New York, New York 10165
About LSC Communications, Inc.
LSC Communications, Inc. -- http://www.lsccom.com/-- is a Delaware
corporation established in 2016 with its headquarters located in
Chicago, Illinois. The Debtors offer a broad range of traditional
and digital print products, print-related services, and office
products. The Company serves the needs of publishers,
merchandisers, and retailers worldwide, with a service offering
that includes e-services, logistics, warehousing and fulfillment
and supply chain management services. The Company prints magazines,
catalogs, directories, books, and some direct mail products, and
manufactures office products, including filing products, envelopes,
note-taking products, binder products, and forms. The Company has
offices, plants, and other facilities in 28 states, as well as
operations in Mexico, Canada, and the United Kingdom.
LSC Communications, Inc., based in Chicago, IL, and its
debtor-affiliates, filed a Chapter 11 petition (Bankr. S.D.N.Y.
Lead Case No. 20-10950) on April 13, 2020. In its petition, the
Debtor estimated $1,649,000,000 in assets and $1,721,000,000 in
liabilities. The petition was signed by Andrew B. Coxhead, chief
financial officer.
The Debtors hire SULLIVAN & CROMWELL LLP as counsel; YOUNG CONAWAY
STARGATT & TAYLOR, LLP, as co-counsel; EVERCORE GROUP L.L.C., as
investment banker; ALIXPARTNERS LLP as restructuring advisor; PRIME
CLERK LLC as notice, claims and balloting agent.
LSC COMMUNICATIONS: Seeks to Hire Sullivan & Cromwell as Counsel
----------------------------------------------------------------
LSC Communications, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Sullivan & Cromwell LLP as their counsel.
LSC Communications requires Sullivan & Cromwell to:
a. advise the Debtors with respect to their powers and duties
as debtors and debtors-in-possession, including the legal and
administrative requirements of operating in chapter 11;
b. attend meetings and negotiate with representatives of
creditors and other parties-in-interest;
c. assist with the preservation of the Debtors' estates,
including the prosecution of actions commenced under the Bankruptcy
Code or otherwise on their behalf, and objections to claims filed
against the estates;
d. prepare and prosecute on behalf of the Debtors all motions,
applications, answers, orders, reports and papers necessary for the
administration of the estates;
e. negotiate and prepare on the Debtors' behalf chapter 11
plan(s), disclosure statement(s) and all related agreements and
documents;
f. advise the Debtors with respect to any sale of assets and
negotiate and prepare on the Debtors' behalf all agreements related
thereto;
g. advise the Debtors with respect to certain corporate,
financing and tax matters as requested by the Debtors and without
duplication of other professionals' services;
h. appear before the Court, and any appellate courts, and
protect the interests of the Debtors' estates before such courts;
and
i. perform all other legal services in connection with these
chapter 11 cases as requested by the Debtors and without
duplication of other professionals' services.
Sullivan & Cromwell will be paid at these hourly rates:
Partners/Special Counsel $1,350 to $1,750
Associates $650 to $1,185
Legal Assistants $350 to $520
In accordance with Appendix B-Guidelines for reviewing applications
for compensation and reimbursement of expenses filed by attorneys
in larger Chapter 11 cases, Andrew G. Dietderich disclosed that:
-- the rates for the more senior timekeepers for each class of
personnel represent a discount from the rates used by Sullivan &
Cromwell when preparing estimates of fees under its normal billing
practices for non-bankruptcy engagements;
-- none of the professionals included in the engagement varies
his rate based on the geographic location of the bankruptcy cases;
-- prior to the petition date, in connection with general
corporate matters, Sullivan & Cromwell performed services for the
Debtors at hourly billing rates consistent with the firm's practice
for non-bankruptcy engagements, which are higher than the firm's
rates proposed to be charged during their bankruptcy cases, and
prior to the petition date, the firm performed services for the
Debtors at the same hourly rates as the rates proposed to be
charged during their bankruptcy cases;
-- the Debtors have approved Sullivan & Cromwell's budget and
staffing plan for the period from the petition date to May 31,
2020, and the firm expects to submit for approval by the Debtors
prospective budgets and staffing plans for the duration of their
cases.
Mr. Dietderich, partner of Sullivan & Cromwell LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Sullivan & Cromwell can be reached at:
Andrew G. Dietderich, Esq.
Suzanne S. Bettman, Esq.
SULLIVAN & CROMWELL LLP
125 Broad Street
New York, NY 10004
Tel: (212) 558-4000
Fax: (212) 558-3588
About LSC Communications, Inc.
LSC Communications, Inc. -- http://www.lsccom.com/-- is a Delaware
corporation established in 2016 with its headquarters located in
Chicago, Illinois. The Debtors offer a broad range of traditional
and digital print products, print-related services, and office
products. The Company serves the needs of publishers,
merchandisers, and retailers worldwide, with a service offering
that includes e-services, logistics, warehousing and fulfillment
and supply chain management services. The Company prints magazines,
catalogs, directories, books, and some direct mail products, and
manufactures office products, including filing products, envelopes,
note-taking products, binder products, and forms. The Company has
offices, plants, and other facilities in 28 states, as well as
operations in Mexico, Canada, and the United Kingdom.
MANCHESTER HOUSING: Moody's Alters Outlook on 2000 Bonds to Neg.
----------------------------------------------------------------
Moody's Investors Service has revised the outlook on Manchester
Housing and Redevelopment Authority's Revenue Bonds, Series 2000 to
negative from positive. At the same time, Moody's has affirmed the
B3 rating on the bonds which are secured by the city's allocation
of a statewide tax on meals and rooms.
RATINGS RATIONALE
The B3 rating reflects the high risk associated with pledged
revenues which have historically provided very thin coverage of
annual debt service. The rating also takes into account a
governance structure which has allowed the state to distribute a
smaller percentage of the meals and rooms tax to municipalities
than the 40% established in State statute. The resulting
distribution Manchester receives barely covers debt service and
from 2011 through 2015 did not cover debt service resulting in a
substantial drawdown of the debt service reserve fund. The bonds
will likely remain in technical default reflecting insufficiency of
pledged revenue to replenish the debt service reserve fund.
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. The State of New Hampshire's projects a significant
coronavirus related decline in state revenue. The general fund
budget for each year of the biennium is approximately $1.6 billion,
with the meals and rooms tax budgeted for $357.4 and $375.3 million
for fiscal 2020 and 2021 respectively, representing nearly 23% of
the annual budget. Its action reflects the expected decline in MRT
and the risk that any such decline will result in a smaller
allocation of the MRT to local governments.
RATING OUTLOOK
The negative outlook reflects the social disruption and the public
health emergency which has caused a sharp decline in the narrow
revenue stream securing the bonds and the risk that the state will
further reduce the allocation of meals and rooms tax revenue to
local governments resulting in insufficient pledged revenue to
cover debt service on the bonds.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
- Trend of increased MRT distributions from the state in excess
of debt service.
- Very strong economy driving growth in MRT receipts
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
- Decline in pledged revenues and debt service coverage ratio
- Prolonged closure or modification of operations from which the
meals and room tax is sourced
- Decline in the state's MRT distribution to municipalities
- Reduction in Manchester's proportional share of the state's
total population
LEGAL SECURITY
The bonds are secured solely by the City of Manchester's allocation
of state meals and rooms taxes received in excess of $454,927. The
meals and rooms tax is a statewide 9% levy on prepared meals and
rooms that is remitted monthly to the NH Department of Revenue. The
state distributes a portion of the tax to cities and towns annually
based on their proportionate share of state population.
PROFILE
The Manchester Housing and Redevelopment Authority is the primary
redevelopment entity in the City of Manchester. The bonds were
issued to build the city's civic center (currently named the SNHU
Arena). The city owns the arena and contracts with a third-party to
manage and operate the facility.
METHODOLOGY
The principal methodology used in this rating was US Public Finance
Special Tax Methodology published in July 2017.
MARUTI REALSTATE: Case Summary & 4 Unsecured Creditors
------------------------------------------------------
Debtor: Maruti Realstate LLC
3 Compass Road
Middle River, MD 21220
Business Description: Maruti Realstate LLC is primarily engaged in
renting and leasing real estate properties.
Chapter 11 Petition Date: May 18, 2020
Court: United States Bankruptcy Court
District of Maryland
Case No.: 20-15329
Debtor's Counsel: Alan M. Grochal, Esq.
TYDINGS & ROSENBERG LLP
1 E. Pratt Street
Suite 901
Baltimore, MD 21202
Tel: 410-752-9700
E-mail: agrochal@tydingslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rajesh Patel, member.
A copy of the petition containing, among other items, a list of the
Debtor's four unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/8WYKA0
MARVIN RANKIN: $600K Sale of Huntsville Property to Stonehenge OK'd
-------------------------------------------------------------------
Judge Clifton R. Jessup, Jr., of the U.S. Bankruptcy Court for the
Northern District of Alabama authorized Bayport Corp. Ltd., an
affiliate of Marvin Rex Rankin, III and Mary Beth Lemmond Rankin,
to sell the vacant lot located on the south margin of Old Monrovia
Road, Huntsville, Alabama to Stonehenge Real Estate Group, LLC, for
$600,000.
A hearing on the Motion was held on May 12, 2020.
The sale is free and clear and clear of all liens, security
interests, or other encumbrances of any kind with all such liens,
security interests, or other encumbrances attaching to the proceeds
of sale.
The Buyer's real estate closing attorney is hereby authorized to
use the cash proceeds from the sale of the Property to pay any
required Seller paid items as per the cash sales contract, any
applicable liens, security interests, or other encumbrances on the
Property in their order of priority.
Marvin Rex Rankin, III and Mary Beth Lemmond Rankin sought Chapter
11 protection (Bankr. N.D. Ala. Case No. 20-80495) on Feb. 18,
2020. The Debtors tapped Tazewell Shepard, Esq., at Sparkman
Shepard & Morris, PC, as counsel.
MCCLATCHY CO: July 8 Auction of All Assets Set
----------------------------------------------
Judge Michael E. Wiles of the U.S. Bankruptcy Court for the
Southern District of New York authorized the bidding procedures of
The McClatchy Co. and its debtor-affiliates in connection with the
auction sale of substantially all assets.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: July 1, 2020 at 11:59 p.m. (ET)
b. Initial Bid: TBD
c. Deposit: 10% of the cash portion of the purchase price
d. Auction: If necessary, the Auction will be held on July 8,
2020 at 10:00 a.m. (ET) at the offices of counsel for the Debtors,
Skadden, Arps, Slate, Meagher & Flom LLP, One Manhattan West, New
York, NY 10001, or such other place (which may be virtual) and time
as the Debtors will notify all Qualified Bidders who have submitted
Qualified Bids; provided that the Auction may be postponed,
adjourned or cancelled as the Debtors, in consultation with the
Consultation Parties, deem appropriate, upon filing a notice of
adjournment on the Court's docket indicating the date and time of
the adjourned hearing.
e. Bid Increments: $1 million
f. Sale Hearing: July 24, 2020 at 11:00 a.m. (ET)
g. Sale Objection Deadline: July 20, 2020 at 4:00 p.m. (ET)
Notwithstanding anything to the contrary in the Order or in the
Bidding Procedures, if either: (i) the Debtors do not receive any
Initial Bids other than the PSC Credit Bid by the Initial Bid
Deadline, or (ii) there are no Qualified Bids other than the PSC
Credit Bid by the Bid Deadline such that no Auction is necessary,
then the Debtors, in consultation with the Consultation Parties and
the Prepetition Secured Parties, reserve the right to expedite the
Sale Process Key Dates, subject to further order of the Court.
The Debtors are authorized to select a Stalking Horse Bidder for
the Acquired Assets for the purposes of establishing a minimum
acceptable bid with which to begin the Auction and to provide such
Stalking Horse Bidder with the Bid Protections pursuant to the
Stalking Horse Agreement.
In the event that the Debtors designate a Stalking Horse Bidder and
the Stalking Horse Bidder is not the Successful Bidder, the Debtors
are authorized to pay the Bid Protections in an aggregate amount
(including the Break-up Fee and Expense Reimbursement Amount) not
to exceed to 3% of the cash portion of the Stalking Horse Bid or,
for a Plan Bid, the amount of the capital investment contemplated
thereby, with such amount to be paid in accordance with the terms
and conditions set forth in the Stalking Horse Agreement.
Within 10 business days after the entry of the Bidding Procedures
Order, or as soon thereafter as practicable, the Debtors (or their
agents) will cause the Transaction Notice upon all Transaction
Notice Parties.
As soon as possible after the conclusion of the Auction, or if
there is no Auction, as soon as practicable following entry into a
Modified Acquisition Agreement or Plan Bid Agreement, but no later
than July 15, 2020 at 11:59 p.m. (ET), the Debtors will file the
Successful Bidder Notice.
The Assumption and Assignment Procedures are approved.
By no later than June 5, 2020 at 11:59 p.m. (ET), the Debtors will
file with the Court and serve on each party to an Assigned Contract
a Cure Notice. The Cure Objection Deadline is 21 days after the
filing of the Cure Notice.
The Debtors will file a notice with the Court listing the Assigned
Contracts, if any, that the Debtors have determined not to assume,
prior to the Approval Hearing.
Notwithstanding the possible applicability of Bankruptcy Rules
6004(h), 6006(d), 7052, 9014 or otherwise, the terms and conditions
of the Order will be immediately effective and enforceable upon its
entry.
A copy of the Bidding Procedures is available at
https://tinyurl.com/y85cp5y8 from PacerMonitor.com free of charge.
About The McClatchy Company
The McClatchy Co. (OTC-MNIQQ) -- https://www.mcclatchy.com/ --
operates 30 media companies in 14 states, providing each of its
communities local journalism in the public interest and advertising
services in a wide array of digital and print formats.
McClatchypublishes iconic local brands including the Miami Herald,
The Kansas City Star, The Sacramento Bee, The Charlotte Observer,
The (Raleigh) News & Observer, and the Fort Worth Star-Telegram.
McClatchy is headquartered in Sacramento, Calif., and listed on the
New York Stock Exchange American under the symbol MNI.
On Feb. 13, 2020, The McClatchy Company and 53 affiliates sought
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-10418) with
a Plan of Reorganization that will cut $700 million of funded debt
in half.
McClatchy was estimated to have $500 million to $1 billion in
assets and debt of at least $1 billion as of the bankruptcy
filing.
The cases are pending before the Honorable Michael E. Wiles.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as
general bankruptcy counsel; Togut, Segal & Segal LLP as
co-bankruptcy counsel with Skadden; Groom Law Group as special
counsel; FTI Consulting, Inc. as financial advisor; and Evercore
Inc. as investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
MERITAGE HOMES: Fitch Affirms BB LongTerm IDR, Outlook Positive
---------------------------------------------------------------
Fitch Ratings has affirmed Meritage Homes Corporation's ratings,
including the company's Long-Term Issuer Default Rating at 'BB'.
The Rating Outlook remains Positive.
The 'BB' ratings and Positive Outlook incorporate the company's low
leverage levels and intent to manage net debt to capitalization in
the 20%-30% range, below the typical 40%-45% range that the company
maintained during much of the upcycle. Net debt to capitalization
(excluding cash classified by Fitch as not readily available for
working capital purposes of $75 million) was 28.3% at the end of
2019. Fitch expects net debt to capitalization to remain in the
30%-35% range during the rating horizon despite the significant
decline in revenues and EBITDA margins anticipated in 2H20 through
1H21.
MTH's strong balance sheet is somewhat countered by the company's
shift towards a riskier speculative (spec) build operating model in
recent years, which could result in sharp gross margin declines if
the company is left with significant unsold inventory during the
coronavirus pandemic and economic contraction. However, Fitch
assumes the company will materially slow land and development
activity, manage spec construction, and halt share repurchases for
an extended period if the downturn extends through 2021, which
would help the company build cash and maintain leverage levels
during the housing downturn.
Fitch will continue to monitor the company's operating performance,
land strategy and leverage levels in the near to intermediate term
in determining changes to the Outlook or ratings. Fitch will look
for the company to continue to manage land acquisition and share
repurchases conservatively during the period of economic
uncertainty. Should MTH pursue aggressive lot expansion and spec
construction activity this year absent a recovery in order trends,
resulting in negative CFFO, or aggressively repurchase shares in
2020 or 2021, Fitch may lose confidence that the company can
maintain net debt to capitalization of below 40% as a new housing
expansion begins. Fitch expects the company to manage its balance
sheet prudently in order to remain near its 20%-30% net debt to
capitalization target, supporting the Positive Outlook.
KEY RATING DRIVERS
Coronavirus Impact: Fitch expects significant decline in revenues
and margins as widespread lockdowns across major markets and
consumer fears around the coronavirus, combined with a deep global
recession, lower consumer confidence, and higher unemployment will
result in meaningful declines in home buying traffic (and
consequently orders and closings) during the critical spring
selling season and the remainder of 2020 and into 2021.
Fitch's base case assumes the economic contraction following the
pandemic will result in a significantly lower yoy sales pace
through 1Q21. According to the company, net orders in April were
down about 25%-30% yoy. Fitch anticipates a steep decline in order
pace through the remainder of the year due to the economic fallout
from the coronavirus pandemic, resulting in lower deliveries for
MTH in 2H20 and 1H21 in Fitch's forecast. Fitch forecasts closings
falling as much as 25% in 4Q20 and 1Q21. Fitch assumes deliveries
decline 5% in 2020 and are down an additional 5% in 2021. Fitch's
rating case forecast assumes inventory impairments and write-offs
of option deposits representing about 5% of inventory in 2020 and
2021, although these non-cash charges could be higher if there is a
more severe downturn than Fitch's current expectations.
Although not yet evident, MTH's aggressive shift to a spec build
strategy in recent years leaves the company more susceptible to
sharply lower gross margins as the downturn manifests than some
investment-grade homebuilding peers. A long-lasting glut of unsold
inventory could result in the company incentivizing or discounting
homes for sale, which could weigh on gross margins. However, Fitch
notes that large spec builders may be taking share from to-be-built
operators in this environment due to low existing home supply,
supporting above-market order and delivery growth in the near term
for Meritage.
Fitch expects EBITDA-based metrics to weaken due to anticipated
margin contraction, but net debt to capitalization should remain
stable. Fitch expects MTH's net debt to capitalization ratio will
remain around 30% during 2020 before increasing to around 35% in
2021 and thereafter as Fitch assumes the company will resume more
aggressive land purchase activity. Fitch forecasts the company to
cautiously manage land acquisition and development activity during
the period of economic uncertainty, which should help MTH generate
positive cash flow from operations in 2020. If a housing recovery
materializes earlier than Fitch's expectations, CFFO may be
negative as the company resumes land expansion.
Adequate Financial Flexibility: Fitch believes the company has
sufficient liquidity and flexibility to manage operations during
the next few years even in a more stressed economic scenario. The
company drew $500 million on its $780 million revolver in 1Q20 to
provide the company with additional flexibility during the period
of uncertainty, which Fitch expects will be held as cash on the
balance sheet and repaid when economic conditions improve. MTH's
nearest debt maturity is its $300 million note due April 2022,
which the company should be able to repay at maturity with revolver
borrowings or internally generated cash flow if refinancing is not
available. The company's revolver is currently set to expire in
July 2023.
Improving Net Debt to Capitalization Ratio: MTH's net
debt/capitalization ratio has consistently ranged from 40% to 45%
for the much of the housing upcycle up to 3Q18. Since then, net
debt/capitalization has been below 40% and reached a low of 28.3%
at YE 2019 and homebuilding debt to operating EBITDA was 2.4x at
the same point in time. The company intends to maintain net debt to
capitalization of 20%-30% going forward to accommodate a riskier
spec build strategy. Fitch expects MTH's net debt/capitalization to
be in the 30%-35% range at YE 2020 and 2021.
Speculative Building Activity: Meritage has significantly increased
its spec building activity in order to facilitate delivery of
entry-level homes on an immediate need basis in recent years. The
company has managed its spec activity in the past, although at
levels that were meaningfully lower than today. Fitch generally
views high spec activity as a credit negative, all else equal, as
rapidly deteriorating market conditions could result in standing
inventory and consequently sharply lower margins. Fitch may upgrade
the company's Long-Term IDR to 'BB+' if the company can demonstrate
the ability to manage its spec building activity, particularly
during these uncertain times, while maintaining net
debt/capitalization consistently below 40%.
In 1Q20, 69% of homes closed were started as specs. As of March 31,
2020, MTH had 2,703 spec homes, of which 28% were completed. Total
specs at the end of 1Q20 were about 23% higher than the previous
year, driven by the company's shift to entry-level offerings which
are 100% spec starts. This translates to about 11.2 specs per
community at the end of 1Q20 compared with 8.5 per community last
year.
Land and Development Spending: Fitch expected the company to
significantly increase land and development spending entering 2020
to facilitate the company's goal of growing community count to 300
by YE 2021, which would have likely resulted in negative CFFO
generation. Fitch now anticipates that MTH will continue to pull
back on land acquisition activity during the period of economic
uncertainty, leading to positive CFFO generation in 2020. The
company noted that the $246 million spent on lot acquisition and
development activity in 1Q20 was below the company's original plans
by about $110 million, as the company slowed activity once the
impact from coronavirus was beginning to manifest. Fitch views
community count expansion to 300 active communities by YE 2021 as
unlikely due to current economic circumstances.
The company spent about $800 million on land and development
activities in 2018 and 2019, lower than the $1.0 billion spent
during 2017. The slowdown in land acquisition activities resulted
in the company generating positive CFFO of $347 million and $262
million in 2019 and 2018, respectively, compared to negative CFFO
the two prior years.
Aggressive Shift to Affordable Offerings: The company's ongoing
shift towards the entry-level buyer has resulted in strong order
growth and margin expansion in 2019 and in 1Q20. The
entry-level/first-time homebuyer has typically represented about
40% of total industry housing sales (new and existing). During this
housing recovery, this segment has been approximately 30% of the
total. Fitch expects affordable product offerings to be more
attractive to buyers during a period of economic uncertainty, but
tightening mortgage standards may make qualification for certain
first-time buyers difficult, which is a key demographic for MTH.
Fitch expects the peak to trough decline in home deliveries to be
in line with publicly traded homebuilding peers.
Moderate Geographic and Product Diversity: MTH operates in 18
markets across nine states as of YE 2019, with particularly heavy
exposure to Texas, Arizona, California and Florida. MTH ranked as
the seventh largest builder in the country in 2018, according to
Builder Magazine. The company typically focuses on the trade-up
market, which was the strongest segment during the earlier part of
this upcycle. However, MTH is now skewing its mix toward the
first-time/entry-level segment (as are other homebuilders). About
51% of active communities were targeted towards entry-level buyers
at end-1Q20 compared to 36% in 1Q19. MTH's long-term goal is to
have about 50% of communities targeted towards the entry-level
buyer.
Land Position: As of March 31, 2020, MTH controlled 41,501 lots, of
which 63% were owned and the remaining lots controlled through
options. Based on LTM closings, MTH controlled 4.2 years of land
and owned roughly 2.6 years of land. The company's owned lot
position is approximately in line with the average homebuilder in
Fitch's coverage and is within the company's internal target of
four to five years of supply. The company currently primarily
purchases unfinished and partially finished lots, which is a
strategy that typically requires a longer land position to account
for time to develop the lots prior to home sales.
DERIVATION SUMMARY
MTH's ratings reflect the company's moderate geographic and product
diversity, relatively strong credit metrics, healthy liquidity
position, and execution of its business model in the current
housing environment. The ratings also take into account MTH's
aggressive shift towards a more speculative homebuilding strategy
in the past two years driven by its emphasis on the
entry-level/first-time buyer, which Fitch views as a riskier
approach to homebuilding.
MTH's credit metrics are stronger compared to M/I Homes, Inc.
(BB-/Stable). The company's EBITDA-based credit metrics and
operating margins are similar to M.D.C. Holdings, Inc.
(BBB-/Stable) and is larger than M.D.C. However, M.D.C.'s net
debt/capitalization ratio is lower than MTH and M.D.C. and has
demonstrated very steady capital structure during the last housing
cycle, including having more cash than debt during 2007-2011.
Additionally, MTH employs a riskier spec build strategy than
M.D.C., which primarily builds and delivers homes through a built
to order model. MTH's credit metrics are also comparable with some
of its investment-grade peers, including Lennar Corporation
(BBB-/Stable) and Toll Brothers, Inc. (BBB-/Stable), although MTH
is smaller in terms of revenues, has lower margins and is less
geographically diversified than these investment-grade peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Total U.S. housing starts decline 25%, while new home sales
fall 20% and existing home sales decrease 15% in 2020;
-- U.S. housing starts grow 13.7% in 2021, while new home sales
improve 14.5% and existing home sales increase 5% next year;
-- MTH's deliveries decline 5% in 2020 driven by a decline in
order activity in 2Q20-4Q20, partially offset by the company's
strong delivery and backlog growth through 1Q20. EBITDA margins
contract around 400bps;
-- Deliveries decline an additional 5% vs. 2020 as order pace in
4Q20 and 1Q21 remains weak, but rebounds over the course of the
year. EBITDA margins decline modestly vs. 2020;
-- Fitch assumes the company impairs about 5% of its beginning
inventory in 2020 and 2021;
-- Meritage generates positive CFFO in 2020 and becomes negative
in 2021 as the company resumes the expansion of its land
portfolio;
-- Net debt to capitalization of about 30% in 2020 and returning
to the 30%-35% in 2021 and thereafter.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- MTH shows steady improvement in credit metrics, such as net
debt/capitalization consistently below 40%, while maintaining a
healthy liquidity position (in excess of $500 million in a
combination of cash and revolver availability) and generates
consistently positive cash flow from operations as it manages its
land and development spending.
-- The Outlook may be revised to Stable if net
debt/capitalization returns or trends towards 40% due to weaker
than anticipated operating performance, more aggressive land and
development spending than anticipated, and/or more aggressive
capital allocation than expected in the near to intermediate term.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- There is sustained erosion in profits due to meaningful and
continued loss of market share, poor execution of the company's
strategy, and/or ongoing land, materials and labor cost pressures
resulting in weakened credit metrics, such as net
debt/capitalization sustaining above 45%;
-- MTH maintains an aggressive land and development spending
program that leads to consistently negative CFFO, higher debt
levels and a diminished liquidity position. In particular, Fitch
will focus on assessing the company's ability to repay debt
maturities with available liquidity and internally generated cash
flow.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Solid Liquidity: At March 31, 2020, MTH had $797 million of cash
and $211 million of borrowing availability under its $780 million
revolver that matures in July 2023. In June 2019, the company
amended its revolving credit facility to extend the maturity by one
year to 2023. The amended credit facility also includes an
accordion feature that allows the company to increase the facility
to $880 million, subject to additional lender commitments. The
company drew $500 million under its revolver in 1Q20 which was
primarily held as cash on the balance sheet. Fitch believes this is
ample liquidity for the company to manage fixed charges and land
acquisition activity. The company's nearest maturity is in April
2022, when a $300 million note comes due. The company redeemed its
2020 $300 million 7.15% senior notes in advance of the maturity
date.
SUMMARY OF FINANCIAL ADJUSTMENTS
Historical and projected EBITDA is adjusted to add back non-cash
stock-based compensation and interest expense included in cost of
sales and also excludes impairment charges and land option
abandonment costs.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
MISSION RECREATION: Hires Douglas A. Sutton as Accountant
---------------------------------------------------------
Mission Recreation, Inc., seeks authority from the U.S. Bankruptcy
Court for the District of Kansas to employ Douglas A. Sutton, as
accountant to the Debtor.
Mission Recreation requires Douglas A. Sutton to:
(a) advise the Debtor in accounting matters related to the
Bankruptcy filing and forthcoming Chapter 11 Plan; and
(b) prepare all necessary tax returns and their filing.
Douglas A. Sutton will be paid at the hourly rate of $175.
Douglas A. Sutton will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Douglas A. Sutton assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estates.
Douglas A. Sutton can be reached at:
Douglas A. Sutton
1327 South Fountain Drive
Olathe, KS 66061
Tel: (913) 764-4564
About Mission Recreation
Privately held Mission Recreation Inc. owns a mini-golf course
located at 5399 Martway, Mission, Kansas, valued at $306,000. Its
gross revenue amounted to $939,284 in 2016, $1.26 million in 2015,
and $1.82 million in 2014.
Mission Recreation sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Kan. Case No. 17-22143) on Nov. 3, 2017.
In the petition signed by Beverly A. O'Donnell, its president, the
Debtor disclosed $2.01 million in assets and $642,990 in
liabilities. Judge Robert D. Berger oversees the case. James R.
Shetlar Law Offices, P.A., is the Debtor's counsel.
MORAN FOODS: S&P Upgrades ICR to 'B-'; Outlook Negative
-------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
hard-discount grocer Moran Foods LLC (doing business as Save-A-Lot)
to 'B-' from 'SD' (selective default). S&P also withdrew its issuer
credit rating on SAL Acquisition Corp. due to the change in the
company's organizational structure.
At the same time, S&P is assigning its 'B+' issue-level rating to
Moran Foods' new $15 million supersenior delayed-draw term loan
facility due 2023, its 'B-' issue-level rating to the company's new
$139 million first-lien term loan due 2024, and its 'CCC'
issue-level rating to the company's new $180 million second-lien
term loan due 2024.
Moran Foods' reduction of the amount of debt in its capital
structure and strengthened liquidity position have improved its
credit metrics. However, S&P continues to view the company's
capital structure as highly leveraged. Through the conversion of
its $740 million term loan into equity and new term loans, the
company was able to reduce the amount of debt on its balance sheet
by more than $400 million. Moran also bolstered its liquidity by
securing a $150 million asset-based lending (ABL) facility and a
$60 million first in, last out (FILO) loan. In addition, the
company will have pay-in-kind (PIK) interest payments option on its
new first- and second-lien term loans for the first two years to
preserve its liquidity. S&P believes these changes have made Moran
Foods' capital structure more sustainable in the near term.
However, the rating agency expects the company's S&P-adjusted debt
to EBITDA to be above 7x in 2020 due to its conservative EBITDA
generation and the additional leverage from the PIK arrangement.
S&P expects Moran Foods to benefit from the current pandemic
environment in the short-term, though its transformation plan
remains uncertain amid its highly competitive operating environment
and the heightened risk of supply chain disruptions. With about
1,000 store locations, Moran Foods is in the process of
reorganizing its retail operations to become a wholesale
distributor. The company plans to convert at least 303 of its
corporate-operated retail stores to franchise-like retail partner
stores and close underperforming locations. After the
transformation, Moran Foods will be a wholesale platform serving
more than 965 retail partner stores, with about 20 corporate retail
stores remaining for testing and demonstration purposes.
"We expect the entire conversion process to be completed in one
year. We believe the company's strong sales momentum over the
short-term due to the coronavirus pandemic has placed it in a good
position for the first half of 2020. However, we note that it
participates in the intensely competitive and fragmented food
retail industry, which features increasing competition from
nontraditional grocers and is exposed to fluctuations in commodity
prices. We also expect Moran Foods to report some performance
volatility due to potential food supply chain disruptions as well
as its ongoing business transformation in 2020," S&P said.
S&P believes Moran's transition to a capital-light wholesale
business model could improve its EBITDA and cash flow generation.
S&P still sees material execution risks in its base-case scenario
for 2020, which incorporates a moderate improvement in the
company's profitability. Moran Foods' performance has suffered from
years of declining traffic and margin pressure amid the highly
competitive discount grocery environment. S&P believes the shift in
the company's business to become a wholesale platform will lead to
overhead expense savings and reduced capital expenditure (capex)
over time. The rating agency also expects the company to benefit
from improved EBITDA and free operating cash flow (FOCF) over the
long term. Furthermore, S&P forecasts that Moran will gradually
reduce its leverage with its excess cash flow. However, S&P could
see further downside potential if the competitive pressure in the
discount grocery industry continues to escalate and the company's
transformation takes longer to complete than the rating agency
expects.
Environmental, social, and governance (ESG) factors relevant to the
rating action:
-- Health and safety
The negative outlook reflects S&P's view of the ongoing execution
risk related to Moran Foods' business transformation plan given the
continued tough operating environment in the food retail segment
amid coronavirus-related disruptions and the high levels of
competition both in store and online across the category.
"We could lower our rating on Moran Foods over the next 12 months
if the company does not achieve sufficient success in its
transformation plan. Under this scenario, we would expect it to
generate negative FOCF and maintain a weakened liquidity position
such that we view its capital structure as unsustainable and see
elevated risk for a covenant breach," S&P said.
"We could revise our outlook on Moran Foods to stable if it
successfully implements its transformation plan and reports
consistently positive and increasing FOCF. This could occur if the
company stabilizes its business operations and effectively improves
its profitability while reducing its operating costs and capex,
which would strengthen its cash generation and liquidity position,"
the rating agency said.
MOUNTAIN STATES ROSEN: Committee Hires Tucker Ellis as Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of Mountain States
Rosen LLC seeks approval from the U.S. Bankruptcy
Court for the District of Wyoming to retain Tucker Ellis LLP as its
counsel.
The Committee requires Tucker Ellis to:
a. advise the Committee on all legal issues as they arise;
b. represent and advise the Committee regarding the terms of
any sales of assets or plans of reorganization or liquidation, and
assisting the Committee in negotiations with the Debtor and other
parties-in-interest;
c. investigate the Debtor's assets and pre-bankruptcy conduct,
and investigate the validity, priority and extent of any liens
asserted against the Debtor's assets;
d. analyze the liens, claims and security interests of any of
the Debtor's secured creditors, and raise challenges on behalf of
the Committee;
e. prepare, on behalf of the Committee, all necessary
pleadings, reports, and other papers;
f. represent and advise the Committee in all proceedings in
the bankruptcy case;
g. assist and advise the Committee in its administration; and
h. provide such other services as are customarily provided by
counsel to a creditors' committee in cases of this kind.
Tucker Ellis will be paid at these hourly rates:
Partners $490
Associates $285
Paraprofessionals $165 to $235
Tucker Ellis will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Thomas R. Fawkes, a partner at Tucker Ellis LLP, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
Tucker Ellis can be reached at:
Thomas R. Fawkes, Esq.
TUCKER ELLIS LLP
233 S. Wacker Dr., Suite 6950
Chicago, IL 60606
Tel: (312) 256-9425
E-mail: thomas.fawkes@tuckerellis.com
About Mountain States Rosen LLC
Mountain States Rosen LLC -- http://mountainstatesrosen.com/-- is
a privately held company in the animal slaughtering and processing
business with its principal place of business at 920 7th Ave.,
Greeley, Colorado.
Mountain States Rosen sought bankruptcy protection (Bankr. D. Wyo.
Case No. 20-20111) on March 19, 2020. The petition was signed by
its president, Brad Graham. At the time of the filing, the Debtor
was estimated to have assets between $10 million and $50 million
and liabilities of the same range.
Judge Cathleen D. Parker oversees the case.
The Debtor tapped Markus Williams Young & Hunsicker LLC as its
counsel.
MOUNTAIN STATES ROSEN: Committee Taps Patton & Davison as Counsel
-----------------------------------------------------------------
The official committee of unsecured creditors of Mountain States
Rosen LLC seeks approval from the U.S. Bankruptcy Court for the
District of Wyoming to retain Patton & Davison LLC as its local
counsel.
The Committee requires Patton & Davison to:
a. advise the Committee on all legal issues as they arise;
b. represent and advise the Committee regarding the terms of
any sales of assets or plans of reorganization or liquidation, and
assisting the Committee in negotiations with the Debtor and other
parties-in-interest;
c. investigate the Debtor's assets and pre-bankruptcy conduct,
and investigate the validity, priority and extent of any liens
asserted against the Debtor's assets;
d. analyze the liens, claims and security interests of any of
the Debtor's secured creditors, and raise challenges on behalf of
the Committee;
e. prepare, on behalf of the Committee, all necessary
pleadings, reports, and other papers;
f. represent and advise the Committee in all proceedings in
the bankruptcy case;
g. assist and advise the Committee in its administration;
h. provide such other services as are customarily provided by
counsel to a creditors' committee in cases of this kind; and
i. communicate with the committee and other counsel and attend
any hearings required.
Patton & Davison will be paid at these hourly rates:
Partners $300
Associates $200
Paraprofessionals $85 to $110
Terry W. Connolly, Esq., a partner at Patton & Davison, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
Patton & Davison can be reached at:
Terry W. Connolly, Esq.
Patton & Davison LLC
1920 Thomas Avenue, SUite 600
Cheyenne, WY 82001
Tel: (307) 635-4111
Fax: (307) 635-6904
Email: terry @pattondavison.com
About Mountain States Rosen LLC
Mountain States Rosen LLC -- http://mountainstatesrosen.com/-- is
a privately held company in the animal slaughtering and processing
business with its principal place of business at 920 7th Ave.,
Greeley, Colorado.
Mountain States Rosen sought bankruptcy protection (Bankr. D. Wyo.
Case No. 20-20111) on March 19, 2020. The petition was signed by
its president, Brad Graham. At the time of the filing, the Debtor
was estimated to have assets between $10 million and $50 million
and liabilities of the same range.
Judge Cathleen D. Parker oversees the case.
The Debtor tapped Markus Williams Young & Hunsicker LLC as its
counsel.
MTE HOLDINGS: Seeks to Hire Mr. Davido of Ankura as CRO
-------------------------------------------------------
MTE Holdings LLC, and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the District of Delaware to employ Mr.
Scott J. Davido of Ankura Consulting LLC, as chief restructuring
officer to the Debtors.
MTE Holdings requires Ankura to:
a. manage the chapter 11 process, subject to the authority and
direction of, and reporting only to, the Board, or the
Special Committee, if applicable;
b. assist the other company professionals in the
reorganization process consistent with the Debtors' overall
restructuring goals and provide testimony in the Debtors'
Chapter 11 cases;
c. establish communication protocol with stakeholders;
d. assist in the preparation of financial projections and cash
flow budgets, including implementing cash conservation
strategies, tactics and processes where appropriate and
feasible;
e. identify liquidity needs and implement a cash management
program with the management team;
f. identify and implement short-term and/or long-term process
improvement or control initiatives;
g. assist in development of any reporting to the Court and
other required entities;
h. assist the Debtors' investment banker in evaluating
strategic and financial options;
i. assist with and providing input into business planning,
operations, projections, budgeting, and capital expenditure
requirements;
j. as requested by the Board, and in consultation with the
CEO, negotiate with stakeholders regarding the Debtors'
restructuring and preparing a plan of reorganization and
related documents;
k. as requested by the Board, and in consultation with the
CEO, negotiate concerning vendors, customers, and other
constituents of the Debtors, including the claims
reconciliation process, plan classification modeling,
and claims estimation, to the extent applicable; and
l. provide such other similar services that the Board
determines to be necessary, prudent, or appropriate under
the circumstances, and in keeping with its ethical
responsibilities as a chapter 11 professional.
The Debtors will pay a flat monthly fee in the amount of $125,000
for Mr. Davido's services as CRO.
Ankura will charge the following hourly rates:
Senior Managing Directors $1,015 to $1,100
Other professionals $410 to $990
Paraprofessionals $150 to $250
Ankura will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Scott J. Davido, a senior managing director of Ankura Consulting,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.
Ankura can be reached at:
Scott J. Davido
ANKURA CONSULTING GROUP, LLC
1220 19th Street, NW Suite 700
Washington, DC 20036
Tel: (202) 797-1111
Fax: (202) 797-3619
About MTE Holdings LLC
MTE Holdings LLC is a privately held company in the oil and gas
extraction business. MTE sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 19-12269) on Oct. 22,
2019. In the petition signed by its authorized representative,
Mark A. Siffin, the Debtor disclosed assets of less than $50
billion and debts of $500 million.
Judge Karen B. Owens has been assigned to the case.
The Debtor tapped Kasowitz Benson Torres LLP as its bankruptcy
counsel; Morris, Nichols, Arsht & Tunnell, LLP as its local
counsel; Ankura Consulting LLC, as chief restructuring officer; and
Stretto as its claims and noticing agent.
NAVIENT CORP: S&P Alters Outlook to Neg., Affirms Long-Term BB- ICR
-------------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Navient Corp. to
negative from stable. S&P also affirmed its long- and short-term
issuer credit ratings at 'BB-/B' and unsecured debt rating at
'B+'.
"The outlook revision on Navient reflects our view that its
financial performance could further weaken due to the economic
fallout from the COVID-19 pandemic due to its sizable concentration
in student lending. We believe the increase in unemployment from
the COVID-19-related economic shutdown has resulted in substantial
headwinds for U.S. consumer lenders like Navient," S&P said.
The company saw a sizeable impact to its risk-adjusted capital
(RAC) ratio that brought the measure to 4.2%, well below S&P's
expected range for the rating of above 7%. However, this was due
mostly to the implementation of the current expected credit losses
(CECL) methodology and impact from fair value changes to cash flow
hedges. S&P views CECL implementation as an accounting change that
will not affect the company's creditworthiness. Similarly, the
rating agency views the accounting impact from changes in fair
value of Navient's cash flow hedges as also not impacting the
company's creditworthiness.
Similar to its peers, Navient is offering forbearance to customers
at a much higher rate than normal. However, it remains unclear how
borrowers may transition to delinquency over time and ultimately
charge off. Risk to Navient is mitigated by guarantee agreements
with the U.S. government that generally cover at least 97% of its
Federal Family Education Loan Program (FFELP) portfolio's principal
and accrued interest for loans disbursed. FFELP loans were
approximately 74% of Navient's outstanding loans at March 31,
2020.
Based on S&P's current expectations, it expects Navient's RAC ratio
will be above 7% by early next year. Downside risks to its forecast
are worse-than-expected earnings, likely due to asset quality
deterioration resulting in higher provisions, or more
aggressive-than-expected shareholder distributions.
S&P's negative outlook is based on the current economic environment
and its potential impact on Navient's earnings, leverage, and asset
quality. In particular, S&P believes that elevated levels of
forbearance and credit deterioration could erode earnings or
increase leverage. S&P expects the company's RAC ratio to rise
above 7% over the next year, consistent with the rating agency's
previous long-term expectations.
"We could lower the rating in the next 12 months if we believe
there is heightened risk of deteriorating asset quality and
earnings, or if we expect the RAC ratio to remain below 7% over the
longer term. We could also lower the ratings if the economic
environment weakens Navient's financial performance more than we
currently anticipate. This could be caused by the length and
severity of the recession being greater or the rebound being slower
than we currently expect," S&P said.
"We could revise the outlook to stable if the economy stabilizes or
we see limited risk of deteriorating earnings and credit quality
and if RAC ratio rises above 7%," the rating agency said.
NEONODE INC: Incurs $1.29 Million Net Loss in First Quarter
-----------------------------------------------------------
Neonode, Inc. reported a net loss attributable to the company of
$1.01 million on $1.29 million of total revenues for the three
months ended March 31, 2020, compared to a net loss attributable to
the company of $573,000 on $2.01 million of total revenues for the
three months ended March 31, 2019.
As of March 31, 2020, the Company had $5.60 million in total
assets, $2.95 million in total liabilities, and $2.65 million in
total stockholders' equity.
The Company had an accumulated deficit of approximately $191.5
million and $190.5 million as of March 31, 2020 and Dec. 31, 2019,
respectively. In addition, operating activities used cash of
approximately $1.0 million and $0.5 million for the three months
ended March 31, 2020 and 2019, respectively.
Neonode said, "The condensed consolidated financial statements
included herein have been prepared on a going concern basis, which
contemplates continuity of operations and the realization of assets
and the repayment of liabilities in the ordinary course of
business. Management evaluated the significance of the Company's
operating loss and determined that the Company's current operating
plan and sources of potential capital would be sufficient to
alleviate concerns about the Company's ability to continue as a
going concern.
"We expect our revenues from our three business areas will enable
us to reduce our operating losses in coming years. In addition, we
intend to continue to implement various measures to improve our
operational efficiencies. No assurances can be given that
management will be successful in meeting its revenue targets and
reducing its operating loss.
"In the future, we may require sources of capital in addition to
cash on hand to continue operations and to implement our strategy.
If our operations do not become cash flow positive, we may be
forced to seek equity investments or debt arrangements. No
assurances can be given that we will be successful in obtaining
such additional financing on reasonable terms, or at all. If
adequate funds are not available on acceptable terms, or at all, we
may be unable to adequately fund our business plans and it could
have a negative effect on our business, results of operations and
financial condition. In addition, if funds are available, the
issuance of equity securities or securities convertible into equity
could dilute the value of shares of our common stock and cause the
market price to fall, and the issuance of debt securities could
impose restrictive covenants that could impair our ability to
engage in certain business transactions."
BUSINESS HIGHLIGHTS DURING THE QUARTER
* Launch of new business area organization.
* Release of MultiSensing platform for driver and cabin
monitoring in automotive applications. Strong customer
interest; engaged with European premium OEM and shortlisted
for sourcing process for 2024+ platform design win.
* Discussions regarding several new development projects around
zForce touch and gesture sensing solutions with existing and
new customers, for example in the printer, white goods and
industrial segments.
* Expansion of partner network and increased focus on marketing
activities to drive sales of sensor modules.
BUSINESS HIGHLIGHTS SINCE THE END OF THE QUARTER
* Growing interest in the company's contactless touch solutions
and increased sales of sensor module evaluation kits.
* Increased OEM pipeline for additional driver and cabin
monitoring system proof of concepts in second half 2020.
THE BOARD OF DIRECTOR'S CHAIRMAN SUMMARY
* As the Company has earlier communicated, its Board of
Directors has started preparations for a dual public company
listing during the second half year on both Nasdaq New York
and Nasdaq Stockholm.
* There are several strong reasons for this:
- The company's headquarters, management team and all
critical operations are located in Stockholm
- A significant number of the company's shareholders are
located in Sweden
- A parallel listing in Stockholm would provide shareholders
in Sweden a more efficient marketplace for trading shares
and it would add to the company's financing alternatives
- In general, we believe a Nasdaq Stockholm listing will
enhance overall shareholder value
THE CEO'S COMMENTS
"The past few months have been challenging in light of the global
coronavirus pandemic. The company's operations have been disrupted
when we paused all travel and required our employees to work
remotely. The pandemic is also affecting our customers and we
expect to see sales volumes dropping for several printer and
automotive customers. Despite these headwinds, we continue to make
progress on our path towards growth with new customer development
projects and by actively engaging in new exciting sales
opportunities, but, having that said, it is important to note that
the lead time to acquiring new and profitable customers is fairly
long," said Urban Forssell, CEO of Neonode Inc.
"Although the current business environment is challenging, we have
been making steady progress towards rebuilding the company to
return to a path to growth and thereafter profitability. Our
comprehensive review of strategies and opportunities have resulted
in several measures. We have narrowed our focus to B2B and
segments and customer applications where our technologies have
clear technical advantages and add value.
"We believe current and potential customers appreciate our efforts
to focus the business and that we are targeting attractive business
segments. We feel confident that we are on the right path but,
having said this, it is important to note that the lead time to
acquiring new and profitable customers is fairly long.
"To support and execute on our overall strategy, we restructured
the company into three distinct and mutually supporting business
areas and are hiring new talented managers to run the sales and
business development activities in each. Our traditional business
around touch and gesture control have been placed into two separate
business areas: HMI Solutions for bespoke customer solutions and
HMI Products for standardized sensor modules. We also concluded
that Neonode is well positioned for significant growth in driver
and cabin monitoring in automotive applications, and formed a new
business area, Remote Sensing Solutions, to address this
opportunity. Our revenue and gross margin for each of these
business areas are included in our first quarter 2020 financial
statements.
"The aim of the restructuring is to gain a stronger focus in the
organization and to facilitate a return to growth. We have
identified and started to address several segments where we have
competitive technology and/or price advantages including medical,
military, automotive, industrial equipment and white goods.
Recently, our first medical customer began selling a mobile
ultrasonic examination system using our sensor module and we are
currently engaging in customer projects in the military and white
goods markets.
"An unexpected development that arose out of the coronavirus
pandemic is a focus on contactless touch applications for
elevators, self-service kiosks and other devices that are used in
public spaces where multiple people touch to activate. We have
showcased our contactless touch holographic displays providing
solutions for many of these applications and are in discussions
with companies who provide products for these markets. We believe
that the move to contactless touch interaction is just beginning
and will intensify as initial applications become a desired
requirement for devices used in public spaces.
"In the business area Remote Sensing Solutions, we have increased
our marketing efforts towards automotive OEMs and Tier 1 suppliers,
which has been well received. We are currently engaged in
discussions around proof of concept projects with several customers
and have been shortlisted for a sourcing process for a 2024+
program with a European premium OEM.
"The COVID-19 outbreak has had a negative impact on the company's
near term growth and overall business because of the global
economic slowdown and the negative effects of the virus outbreak on
our customers' businesses. We continue to monitor the developments
to mitigate the aforementioned risks but also recognize potential
opportunities with our optical touch and gesture control for safe
and germ free people transportation, access and daily tech
interface as well as applications within medical, transportation
and other systems," concluded Dr. Forssell.
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/KT5BqB
About Neonode
Neonode Inc. (NASDAQ:NEON) -- http://www.neonode.com/-- develops
optical touch and gesture control solutions for human-machine
interface with devices and remote sensing solutions for driver and
cabin monitoring features in automotive and other application
areas. The Company offers its touch and gesture control technology
under the brand name "zForce".
Neonode recorded a net loss attributable to the Company of $5.30
million for the year ended Dec. 31, 2019, compared to a net loss
attributable to the Company of $3.06 million for the year ended
Dec. 31, 2018.
NICHOLS EXECUTIVE: Has Until May 22 to File Plan & Disclosures
--------------------------------------------------------------
Judge Julia W. Brand of the U.S. Bankruptcy Court for the Central
District of California, Los Angeles Division, has entered an order
within which Debtor Nichols Executive Enterprises, Inc. shall file
a Plan and Disclosure Statement on or before May 22, 2020.
The status conference hearing shall be continued to July 2, 2020,
at 10:00 a.m.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/yawxd6nc from PacerMonitor at no charge.
Attorneys for Debtor:
Anthony O. Egbase, Esq.
Shana Y. Stark, Esq.
A.O.E LAW & ASSOCIATES
350 South Figueroa Street, Suite 189
Los Angeles, California 90071
Tel: (213) 620-7070
Fax: (213) 620-1200
E-mail: info@aoelaw.com
About Nichols Executive
Nichols Executive Enterprises, Inc., owns a single family home
located at 2200 Nichols Canyon Rd, Los Angeles, CA 90046 valued at
$2.27 million.
Nichols Executive filed a Chapter 11 petition (Bankr. C.D. Cal.
Case No. 20-12002) on Feb. 24, 2020. At the time of filing, Debtor
disclosed $2,274,600 in total assets and $400,000 in total
liabilities.
The case is assigned to Hon. Barry Russell. Anthony O. Egbase, Esq.
of A.O.E. LAW & ASSOCIATES is the Debtor's Counsel.
NORTHWEST FIBER: Moody's Rates $250MM Sr. Unsecured Notes 'Caa1'
----------------------------------------------------------------
Moody's Investors Service has assigned a Caa1 rating to Northwest
Fiber, LLC 's announced $250 million of eight-year senior unsecured
notes. All existing ratings and the stable outlook are unaffected.
Northwest Fiber, doing business as Ziply Fiber, is a newly formed
entity owned by WaveDivision Capital and Searchlight Capital
Partners, L.P. to acquire the broadband communications
infrastructure assets of Frontier Communications Corporation
located in four Pacific Northwest states. Net proceeds from a
committed bridge facility, in conjunction with additional proceeds
from a $790.5 million term loan and an approximate $746 million
equity investment from the Sponsors and management, were used to
finance the $1.25 billion acquisition of the Frontier assets
(including customary purchase price adjustments), and approximately
$420 million of cash to the balance sheet to pre-fund future
capital investments, acquire WholeSAIL Networks, LLC, a provider of
network, telecom and internet service in Washington state for $18
million, and for fees and expenses. The acquisition closed on May
1, 2020. The proceeds from this offering of senior notes will be
used to refinance the bridge facility.
Assignments:
Issuer: Northwest Fiber, LLC
Senior Unsecured Regular Bond/Debenture, Assigned Caa1 (LGD6)
RATINGS RATIONALE
Northwest Fiber's B2 CFR reflects governance considerations,
specifically its expectation that the company's financial policy
includes a significant capital investing strategy to gain market
share through telecom infrastructure upgrades which Moody's expects
will result in debt leverage increasing to a peak level of 4.2x or
higher in 2021 on a Moody's adjusted basis. The company's credit
profile also reflects its modest scale, secular pressures in legacy
copper-based portions of its ILEC network as evidenced by
multi-year declines in revenue due to voice and DSL customer
attrition, and the presence of large-scale cable and telecom
companies providing competitive services to residential and
commercial customers across its markets.
These weaknesses are offset by the expected higher population
growth in Northwest Fiber's pacific northwest markets versus the US
average and more compelling fiber overlay economics given the
company's footprint concentration in relatively dense, high income
suburbs. The company has an existing core fiber network that serves
about 30% of premises out of about 1.7 million premises passed.
Northwest Fiber plans to upgrade another nearly 900,000 premises to
fiber (approximately 75% of the premises currently served by copper
infrastructure). Of this nearly 900,000 to be upgraded premises,
about 330,000 premises, or 20% of all premises, are located within
200 feet of Northwest Fiber's existing fiber network and available
for fiber-to-the-premise upgrades with relatively short payback
periods. Northwest Fiber also believes it can upgrade the remaining
approximately 570,000 premises at attractive returns on invested
capital. Northwest Fiber benefits from a management team with
extensive experience operating broadband-centric businesses and
building and upgrading fiber network infrastructure. In addition to
achieving steady penetration growth through its pre-funded buildout
activity, Northwest Fiber has the potential to improve upon
previously undermanaged legacy fiber operations and raise low ARPUs
and expand currently weak 28% broadband penetration levels to fair
share levels of near 40% by 2026.
Northwest Fiber's network is comprised of about 42,000 owned route
miles and includes 8,900 fiber miles and 34,000 copper miles, as
well as 130 network hub locations. The company's physical network
locations include 208 central offices and over 1,100 remote site
units. The company's four state-based markets -- Washington,
Oregon, Idaho and Montana -- are interconnected through a multi-100
GB/s network utilizing owned and leased fiber connections. In about
95% of its markets, Northwest Fiber faces no more than one
competitor comprised of either a cable or telecom operator. The
company expects to be the only provider of FTTP broadband in its
markets upon completion of its fiber buildout and upgrades. About
1/3rd of the company's capital spending over the next 5-6 years
will be upgrade and expansion related, with around 50% tied to
success-based FTTP customer installations. Any footprint expansion
or tuck-in acquisitions would be contiguous to the existing
footprint.
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 US telecom
industry is expected to be more resilient than many sectors as the
spread of the coronavirus outbreak widens and the global economic
outlook deteriorates. Moody's regards the coronavirus outbreak as a
social risk under its ESG framework, given the substantial
implications for public health and safety.
Moody's does not anticipate accelerated voice demand declines above
historical levels and expects solid demand for broadband data
services in both residential and commercial end markets. Telecom
and broadband network infrastructure have not suffered stresses
with shifting and elevated demands in normal and peak daily usage
periods during the crisis to date. If economic conditions remain
weak for an extended period of time Northwest Fiber may face
competitive difficulties growing its broadband penetration
following fiber network overlays to portions of its existing ILEC
footprint. Customer churn associated with missed service payments
could ramp over time if any economic downturn is prolonged as well.
Disruptions in supply chains could also impact customer premise and
network equipment sourcing, but Moody's believes this would not
likely appear as a negative development until the second half of
2020.
Moody's expects Northwest Fiber to have good liquidity over the
next 12 months. Following the transaction close, the company is
expected to have an undrawn $100 million revolving credit facility
and approximately $420 million cash on hand to pre-fund a two-year
plan to overlay significant portions of an existing copper-based
network with fiber. For 2020, Moody's forecasts Northwest Fiber
generating negative free cash flow of about $100 million after
accounting for high capital spending of about 50% of revenue. The
revolver will contain a springing maximum first lien net leverage
covenant of 5x to be tested when 35% or more of the revolver is
outstanding at the end of each quarter.
The stable outlook reflects Moody's view that Northwest Fiber has
already undertaken significant actions to prepare for a likely
successful separation of assets from Frontier, benefits from fully
planned and pre-funded capital investing actions to upgrade
networks, and that leverage (Moody's adjusted) will peak at
slightly above 4x during an upfront-loaded buildout planned over
the next two years.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the company's current competitive positioning and network
upgrade execution risks, upward pressure is limited but could
develop should Northwest Fiber's Moody's adjusted debt/EBITDA
decrease to below 4x on a sustainable basis on the back of a
successful implementation of the company's strategy to increase
penetration across its existing footprint and grow EBITDA. An
upgrade would also require the company to maintain a good liquidity
profile.
Downward pressure on the rating could arise should Moody's adjusted
debt/EBITDA increase above 5x on a sustained basis or should the
company's liquidity deteriorate or should execution of its growth
strategy materially slow below budgeted expectations.
The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.
Headquartered in Kirkland, Washington, Northwest Fiber operate a
copper and fiber communications network, passing 1.7 million total
premises consisting of residential premises, located mainly in high
density markets in Washington, Oregon, Idaho and Montana as well as
commercial premises, located primarily in Washington and Oregon.
NORTHWEST FIBER: S&P Assigns 'B-' ICR; Outlook Stable
-----------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating to
U.S.-based telecommunications service provider Northwest Fiber LLC.
The rating reflects both the elevated leverage resulting from the
transaction and the rating agency's expectation for ongoing free
operating cash flow deficits due to its planned network spending,
as well as solid turnaround prospects.
S&P is also assigning a 'B' issue-level rating and '2' recovery
rating to the company's proposed senior secured credit facilities,
which comprise a $100 million revolving credit facility due 2025
and $790.5 million term loan B due 2027. The '2' recovery rating
indicates its expectation of meaningful (70%-90%; rounded estimate:
75%) recovery in the event of a payment default.
The ratings on Northwest Fiber LLC (doing business as Ziply Fiber)
reflect S&P's expectation for high leverage under the control of
private equity sponsors WaveDivision Capital LLC and Searchlight
Capital Partners LLC, and free operating cash flow (FOCF) deficits
due to network investments, partly offset by solid prospects to
turn around the legacy Frontier properties. S&P expects the
transaction to result in adjusted leverage of about 4.6x in 2020.
The rating agency views Ziply's leverage as elevated based on the
secularly pressured asset base it acquired from Frontier and
ongoing declines of its voice, video, and copper-based broadband
revenue. Furthermore, the company's capacity to reduce debt over
time is predicated on its ability to profitably grow its
fiber-based broadband customer base, which requires substantial
network investment and will result in negative FOCF over the next
couple of years.
The ratings also reflect the significant competition from incumbent
cable operators in Ziply's markets, geographically concentrated
operations in the Pacific Northwest (primarily in Washington and
Oregon), its small scale, and the potential for execution missteps
arising from its turnaround plan. Partial mitigating factors
include the solid track record of its management team (based on its
previous experience operating a cable company in the region),
favorable demographics in its largest markets, significant near-net
upgrade opportunities, and limited fiber-to-the-premises (FTTP)
competition. If Ziply successfully executes and is able to
profitably grow its subscriber base, S&P believes the company could
reverse top-line declines and achieve revenue and EBITDA growth by
2021, providing a credible path to reducing debt over time. Ziply
could adopt a more aggressive financial policy under private equity
ownership, including the potential for debt-financed acquisitions
longer-term.
Significant network investment should drive broadband subscriber
growth and improve earnings trends. Frontier was capital
constrained and unable to make necessary investments in its
Northwest operations. As a result, the company lost significant
market share to cable operators such as Comcast Corp., which
contributed to revenue and EBITDA declines in the mid- to
high-single-digit percent area in 2019. Upon close of the
transaction, Ziply will have about $420 million of cash on its
balance sheet to fund network upgrades. It plans to make fiber
available to more than 80% of its addressable market within three
years, up from 30% of its footprint that is currently FTTP enabled.
S&P believes these investments will allow the company to better
compete with cable operators such as Comcast, drive broadband
market share gains, and enable revenue growth by 2021.
Execution risks are somewhat tempered by robust transition
planning. Ziply has already completed its carve-out from Frontier,
including the full separation of its network and information
technology systems. In addition, Ziply has a transition services
agreement with its predecessor to support its operations for six
months after the transaction closes, which it does not expect will
be interrupted by Frontier's bankruptcy proceedings. Moreover,
Ziply's management team has experience growing a broadband business
in similar markets.
S&P believes there is a moderate level of execution risk, given the
competition Ziply will face from larger players. Ziply provides
high-speed data (HSD), video, and voice services to residential and
business customers over a two-thirds copper cable (which has speed
limitations relative to the HSD services offered by the incumbent
cable providers) and one-third FTTP network. In its addressable
markets, Ziply competes against larger incumbent cable operators,
including Comcast and Charter Communications Inc. These
better-capitalized service providers are capable of capturing
greater market share due to their larger footprint and scale, and
they are able to offer competitively priced bundled services. As
part of its broadband-first strategy, Ziply's lead offering will be
a 1 gigabit per second broadband product. The company also provides
traditional linear video, but is deemphasizing the service in favor
of over-the-top (OTT) streaming platforms.
The impact of COVID-19 on Ziply's operations is highly uncertain.
While U.S. telecom providers are somewhat resistant to
macroeconomic contractions given the utility-like nature of
wireless and broadband services, S&P believes that a portion of
Ziply's revenue and EBITDA is exposed to the economic disruption
from the COVID-19 pandemic. In the near term, S&P believes that
Ziply could benefit from increased demand for faster broadband
speeds as more people work from home and children move to online
learning. S&P expects that many small and midsize business (SMB)
customers will scale back operations or close stores, while some
will go out of business altogether. Ziply generates about 5% of its
revenue from SMB customers. Longer term, if the economy experiences
a prolonged recession, larger business customers will reduce
headcount and look to scale back their telecom spending. On the
consumer side, higher unemployment could increase bad debt expense
for broadband services. Furthermore, S&P believes that the pace of
cord-cutting could accelerate as consumers shift to lower-cost OTT
video services.
S&P acknowledges a high degree of uncertainty about the rate of
spread and peak of the coronavirus outbreak.
"Some government authorities estimate the pandemic will peak about
midyear, and we are using this assumption in assessing the economic
and credit implications. We believe the measures adopted to contain
COVID-19 have pushed the global economy into recession. As the
situation evolves, we will update our assumptions and estimates
accordingly," S&P said.
The stable outlook reflects S&P's expectation that despite weaker
economic conditions in 2020 and a moderate level of execution risk,
Ziply's FTTP network investments should drive revenue growth in the
low-single-digit percent area beginning in 2021 while maintaining
its EBITDA margin above 40% over the next year. S&P believes this
will enable Ziply to reduce its leverage over time through earnings
growth as the company increases its fiber-based broadband
penetration and gains market share.
"We could lower the rating if aggressive competition or execution
missteps hurt Ziply's ability to increase broadband penetration,
such that the company could not sufficiently grow EBITDA and
organically reduce leverage, leading us to assess the capital
structure as unsustainable. We could also lower the rating if we
believe the company will face a near-term liquidity crisis," S&P
said.
"Over the longer term, we could raise our rating on Ziply if it
profitably captures significant broadband share in its markets and
trends toward positive FOCF generation while maintaining leverage
of less than 5x. This would occur if the company successfully
executes its investment strategy. However, even under that
scenario, an upgrade would be contingent on the company's owners
maintaining a financial policy that allows it to sustain leverage
comfortably below 5x," the rating agency said.
OBITX INC: Robert Adams Elected to Board
----------------------------------------
The majority shareholders of OBITX, Inc., elected to appoint Robert
Adams to the Board of Directors. Mr. Adams is an independent
member and shall serve on the audit committee and compensation
committee.
With the addition of Robert "Eddie" Adams to the board of
directors, OBITX has filled three of its five directors' position.
Mr. Adams is the first independent board member and will serve on
the Company's compensation and audit committees going forward.
Eddie has worked extensively in the blockchain markets. While
deployed as the IT director for Blue Cross/Blue Shield of Florida,
he utilized his extensive knowledge in a wide array of operating
systems, programming languages, security concepts and technologies,
to ensure privacy protocols were adhered to and data was secure and
met federal guidelines. The Company said his experience with
managing $100 million annual department budgets and a staff more
than 45,000 people, will be instrumental in its startup growth
concepts and lay a solid foundation in which to build upon.
Michael Hawkins, OBITX CEO/CFO stated, "I look forward to working
with Mr. Adams in building our OBITX model. We share a vision
where OBITX could be a leading company in blockchain development
and technology. His experience and insight will be critical as we
look to both the insurance and healthcare industries as a core
focus of our developing blockchain technologies."
About OBITX, Inc.
OBITX, Inc. -- http://www.ObitX.com-- is a development, consulting
and services organization specializing in blockchain technologies
and decentralized processing. OBITX is engaged in the business of
marketing and advertising through its proprietary software.
OBITX reported a net loss of $2.12 million for the year ended Jan.
31, 2019, compared to net income of $688,735 for the year ended
Jan. 31, 2018. As of Oct. 31, 2019, the Company had $2.08 million
in total assets, $579,598 in total liabilities, and $1.51 million
in total stockholders' equity.
Dov Weinstein & Co. C.P.A. (Isr), in Jerusalem, Israel, the
Company's auditor since 2017, issued a "going concern"
qualification in its report dated April 15, 2019, citing that the
Company's ability to continue as a going concern is dependent upon
raising additional funds through debt and equity financing and
generating revenue. There are no assurances the Company will
receive the necessary funding or generate revenue necessary to fund
operations. These and other factors raise substantial doubt about
the Company's ability to continue as a going concern.
OBITX INC: Signs $1.9-Mil. Deal to Sell its Social Media Platform
-----------------------------------------------------------------
OBITX, Inc., entered into an Asset Purchase Agreement on May 11,
2020, whereby it sold its 420Cloud Integrated Social Media Platform
to First Bitcoin Capital Corp for $1,900,000. OBITX is to receive
payment in the transfer of $500,000 in BIT tokens and a $1,400,000
convertible promissory note due in 24 months.
The Company believes this to be in line with its long term
strategic goals moving from a social media advertising company to a
blockchain development and consulting company.
About OBITX, Inc.
OBITX, Inc. -- http://www.ObitX.com-- is a development, consulting
and services organization specializing in blockchain technologies
and decentralized processing. OBITX is engaged in the business of
marketing and advertising through its proprietary software.
OBITX reported a net loss of $2.12 million for the year ended Jan.
31, 2019, compared to net income of $688,735 for the year ended
Jan. 31, 2018. As of Oct. 31, 2019, the Company had $2.08 million
in total assets, $579,598 in total liabilities, and $1.51 million
in total stockholders' equity.
Dov Weinstein & Co. C.P.A. (Isr), in Jerusalem, Israel, the
Company's auditor since 2017, issued a "going concern"
qualification in its report dated April 15, 2019, citing that the
Company's ability to continue as a going concern is dependent upon
raising additional funds through debt and equity financing and
generating revenue. There are no assurances the Company will
receive the necessary funding or generate revenue necessary to fund
operations. These and other factors raise substantial doubt about
the Company's ability to continue as a going concern.
OUTERSTUFF LLC: S&P Lowers ICR to 'SD' on Missed Payment
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Outerstuff
LLC to 'SD' (selective default) from 'CCC'. S&P also lowered its
issue-level rating on the company's term loan to 'D' from 'CCC'.
The downgrade reflects Outerstuff LLC's decision to not make the
term loan principal and interest payment due March 31 and its
subsequent decision to enter into a forbearance agreement with
lenders on April 6. Pursuant to the forbearance agreement, the term
loan and ABL lenders agreed to not exercise or enforce certain
remedies with respect to this nonpayment for 60 days, ending May
31, 2020.
"In our view, this represents a selective default on the term loan
because Outerstuff is distressed, it did not meet its contractual
obligation to pay principal and interest in a timely manner, and it
did not adequately compensate lenders for agreeing to temporarily
waive their rights. It is our understanding that the company's
decision to miss the payment and seek forbearance was driven by
heightened uncertainty about liquidity and cash flow given the
cancellation or postponement of all major sporting events due to
the COVID-19 pandemic," S&P said.
S&P will reevaluate its rating on the company at the end of the
forbearance period.
OUTFRONT MEDIA: S&P Rates New $400MM Senior Unsecured Notes 'B+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '4'
recovery rating to the proposed $400 million senior unsecured notes
due in 2025 issued by New York City-based outdoor advertising
company Outfront Media Inc. subsidiaries Outfront Media Capital
Corp. and Outfront Media Capital LLC.
The '4' recovery rating indicates S&P's expectation for average
(30%-50%; rounded estimate: 30%) recovery for lenders in the event
of a payment default. Outfront plans to use the proceeds from the
proposed notes to repay borrowings under its $500 million revolving
credit facility maturing in 2024 ($495 million outstanding as of
March 31, 2020).
S&P's 'B+' issuer credit rating and negative outlook on Outfront
are unchanged because the proposed transaction will not affect net
leverage. The rating agency expects net leverage will increase to
the mid-6x area in 2020 from 5.2x at year-end 2019 as a result of
the coronavirus and resulting economic downturn, causing
out-of-home advertising to decline.
S&P includes the principal amount of the company's recently issued
preferred stock in the rating agency's debt calculation primarily
due to the high interest rate that steps up over time and the
limited number of holders, which the rating agency believes
encourages redemption and the potential of being refinanced with
debt. However, given that the company is maintaining the proceeds
from the issuance (around $400 million) on its balance sheet, it
does not impact net leverage.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- Following the transaction, Outfront's debt capitalization will
consist of a priority $125 million accounts receivable
securitization facility due 2022 (unrated), a $80 million priority
secured repurchase facility due 2020 (unrated), a senior secured
class (comprising a pari passu $500 million revolving credit
facility due 2024 and a $600 million term loan B due 2026), and a
senior unsecured class (comprising of pari passu $500 million
5.625% senior notes due 2024, $650 million 5.0% senior notes due
2027, $500 million 4.625% senior notes due 2030, and the new $400
million senior notes due 2025). The senior secured and unsecured
debt is issued by co-borrowers Outfront Media Capital Corp. and
Outfront Media Capital LLC.
-- The senior secured credit facility is secured by a
first-priority security interest in all tangible and intangible
assets (subject to 66% of the voting stock of and 100% of the
non-voting stock of first-tier foreign subsidiaries).
Simulated default assumptions
-- S&P's simulated scenario contemplates a default in 2024
primarily due to a prolonged downturn in advertising and increased
competition from alternative media that materially reduces
Outfront's revenue and cash flow.
-- Other default assumptions include an 85% draw on the revolving
credit facility, a 60% draw on the accounts receivable
securitization and secured repurchase facility, LIBOR is 2.5%, and
all debt includes six months of prepetition interest.
-- S&P values the company on a going-concern basis using a 7.5x
multiple of its projected emergence EBITDA, in line with that for
other outdoor advertising companies S&P rates.
Simplified waterfall
-- EBITDA at emergence: $265 million
-- EBITDA multiple: 7.5x
-- Gross recovery value: $99 billion
-- Net recovery value for waterfall after administrative expenses
(5%): $1.89 billion
-- Valuation split (obligors/nonobligors (Canadian non-guarantor
subsidiaries)): 95%/5%
-- Estimated priority claims: $125 million
-- Value available for senior secured debt: $1.7 billion
-- Estimated senior secured debt: $1.1 billion
-- Recovery expectations: 90%-100%; rounded estimate: 95%
-- Value available for senior unsecured debt: $700 million
-- Estimated senior unsecured debt: $2.1 billion
-- Recovery expectations: 30%-50%; rounded estimate: 30%
OVERSEAS SHIPHOLDING: Moody's Withdraws B3 Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service withdrew its ratings for Overseas
Shipholding Group, Inc., including the B3 corporate family rating
and Caa2 rating on the senior unsecured notes.
Withdrawals:
Issuer: Overseas Shipholding Group, Inc.
Corporate Family Rating, Withdrawn, previously rated B3
Probability of Default Rating, Withdrawn, previously rated B3-PD
Senior Unsecured Notes, Withdrawn, previously rated Caa2 (LGD6)
Speculative Grade Liquidity Rating, Withdrawn, previously SGL-2
Outlook Actions:
Issuer: Overseas Shipholding Group, Inc.
Outlook, Changed To Rating Withdrawn From Stable
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
Overseas Shipholding Group, Inc., a Delaware Corporation,
transports crude oil and refined petroleum products using primarily
US Jones Act qualified vessels that operate mainly in US coastal
markets, through its intermediate holding company subsidiary OSG
Bulk Ships, Inc. Total revenues approximated $370 million as of the
last twelve months ended March 31, 2020.
PARADIGM TELECOM: June 23 Plan Confirmation Hearing Set
-------------------------------------------------------
On April 29, 2020, debtor Paradigm Telecom II, LLC filed with the
U.S. Bankruptcy Court for the Southern District of Texas, Houston
Division, a Second Amended Original Disclosure Statement.
On April 30, 2020, Judge David R. Jones approved the Disclosure
Statement and established the following dates and deadlines:
* June 12, 2020, at 5:00 p.m. (prevailing Central time) is the
deadline for filing ballots accepting or rejecting the Plan.
* June 12, 2020, at 5:00 p.m. (prevailing Central time) is the
deadline for filing and serving written objections to confirmation
of the Plan.
* June 23, 2020, at 2:00 p.m. (prevailing Central time) in
Courtroom 400, 4th Floor, United States Courthouse, 515 Rusk,
Houston, Texas 77002 is the hearing to consider confirmation of the
Plan.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/ybqgat9r from PacerMonitor at no charge.
About Paradigm Telecom II
Paradigm Telecom II, LLC -- http://www.paradigmtelecom.com/-- is a
provider of communications infrastructure to carrier providers.
Its services include ethernet, dark fiber, DAS and small cell,
fiber to the tower, and international voice and data. It was
founded in 2001 and is headquartered in Houston, Texas.
Paradigm Telecom II sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 18-34112) on July 27,
2018. In the petition signed by Brian Beers, president, the Debtor
was estimated to have assets of less than $500,000 and liabilities
of $1 million to $10 million. Judge Jeff Bohm oversees the case.
Richard L. Fuqua, II, Esq., at Fuqua & Associates, PC, serves as
the Debtor's bankruptcy counsel.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors on Sept. 18, 2018. The committee tapped Walker
& Patterson, P.C. as its legal counsel.
PARK-OHIO INDUSTRIES: Moody's Lowers CFR to B2, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Park-Ohio
Industries Incorporated, including the corporate family rating to
B2 from B1, Probability of Default Rating to B2-PD from B1-PD, and
the senior unsecured rating to Caa1 from B3. The outlook is stable.
This action concludes the review for downgrade initiated on March
26, 2020.
Park-Ohio's credit metrics will be sharply weaker in 2020 as end
market conditions across all of the company's units, most of which
began to decline toward the end of 2019, will be significantly
impacted by the coronavirus outbreak. Moody's expects Park-Ohio's
top line to decline by about 20% in 2020, with substantial declines
in its Assembly Components segment tied primarily to new light
vehicle production. Decrements to earnings are expected to result
in EBITA margins in the 4% range compared to historically above 6%
and leverage above 6x debt/EBITDA for 2020. Moody's anticipates for
recovery in many of the company's end-markets in 2021. However,
even upon modest recovery expected in 2021, Moody's expects the
company's credit metrics will remain weaker than historic levels.
The following rating actions were taken:
Downgrades:
Issuer: Park-Ohio Industries Incorporated
Corporate Family Rating, Downgraded to B2 from B1
Probability of Default Rating, Downgraded to B2-PD from B1-PD
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1
(LGD5) from B3 (LGD5)
Outlook Actions:
Issuer: Park-Ohio Industries Incorporated
Outlook, Changed To Stable From Rating Under Review
RATINGS RATIONALE
Park-Ohio's ratings, including the B2 CFR, reflect the company's
exposure to cyclical end markets such as automotive, energy and
industrial, the moderate scale of its three separate business
segments relative to other industrial suppliers, and an elevated
leverage profile to persist into 2021. The company does maintain a
high degree of diversification in its end markets and customer base
compared to peers, with substantial overall revenue likely to be
around $1.3 billion this year. However, the recessionary
environment caused by the coronavirus outbreak is likely to impact
all areas of Park-Ohio's business. Moody's expects cost-saving
actions in response to shutdowns at customer facilities and sharply
lower demand will help offset some decrement to earnings.
Nevertheless, earnings will be pressured through 2020 before
returning to about 5% EBITA margins in 2021, which should support a
leverage profile in the low-5x range by end of 2021.
The stable outlook reflects Moody's view that Park-Ohio will
maintain an adequate liquidity profile through the 2020 downturn
with improvement in credit metrics expected in 2021.
Park-Ohio's SGL-3 liquidity rating reflects Moody's expectations
for Park-Ohio to maintain an adequate liquidity profile through
2021 supported by sufficient availability of about $180 million
under its $375 million asset-based lending facility due 2024 and
moderate cash balances of about $46 million at end of March 2020.
Moody's expects the company's liquidity position to contract to a
low point during Q2 of 2020 as collateral supporting the ABL
declines given production halts. Moody's expects ABL availability
to contract to about $150 million before returning to near $180
million in the back-half of 2020. Free cash flow generation is
expected to be about $20 million for 2020 as the company
significantly reduces capex following periods of high reinvestment,
temporarily suspends its dividend and unwinds working capital. The
company's lack of significant near-term maturities also supports
the company's adequate liquidity position.
The Caa1 senior unsecured rating, lowered by one notch, considers
the effective subordination of the debt to the substantial secured
debt obligations and that incremental debt going forward will be
secured. This would reduce the expected recovery of the unsecured
class, reflected by a one notch override down in the outcome of the
Loss Given Default model.
ESG CONSIDERATIONS
Moody's considers Park-Ohio's environmental risk, primarily through
its exposure as a supplier to automotive and commercial vehicles,
to be manageable. Some of the company's products tied to the
internal combustion engine face risks as auto manufacturers
progress toward more electrified vehicles in the long-term.
However, this trend creates opportunity for the company given its
focus on component parts to lighten the weight of the vehicle and
improve fuel efficiency.
Moody's considers Park-Ohio's governance risk to be relatively low.
However, even as a public company, ownership is somewhat
concentrated among the Crawford family with the current CEO and
former CEO owning about 28% of outstanding shares. Park-Ohio has
experienced stability in senior management as a result of this
structure, although financial policy at time has been considered
aggressive with past debt-funded acquisition. Shareholder returns,
though, have been relatively modest in recent years, and the
company has temporarily suspended its dividend beginning in Q2 of
2020.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Park-Ohio is able to sustain
financial leverage below 4x debt/EBITDA and EBITA margins above
6.5%. The expectation for the company to maintain a good liquidity
profile supported by strong free cash flow generation will also be
a consideration for a higher rating.
The ratings could be downgraded if Moody's expects Park-Ohio's
liquidity position to deteriorate from either an inability to
generate positive free cash flow or diminished availability under
its ABL. Metrics that could indicate pressure on the rating include
debt/EBITDA expected to be sustained above 6x through 2021 and
EBITA/interest expense maintained below 1.5x.
The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.
Headquartered in Cleveland, Ohio, Park-Ohio Industries Incorporated
is a publicly traded industrial supply chain logistics and
diversified manufacturing company with three primary business
segments: Supply Technologies; Assembly Components; and Engineered
Products. Park-Ohio Industries Incorporated is a subsidiary of Park
Ohio Holdings Corp., who is the holder of public equity. Revenues
for the fiscal year end December 2019 were approximately $1.6
billion.
PINNACLE REGIONAL: Trustee's $1.6M Sale of Florissant Property OK'd
-------------------------------------------------------------------
Judge Sale L. Somers of the U.S. Bankruptcy Court for the District
of Kansas authorized James Overcash, the Chapter 11 trustee for
Pinnacle Regional Hospital, Inc. and its affiliates, to sell the
medical office building located at 6829 Parker Rd., Florissant,
Missouri to Gregory Stynowick, MD, and or assigns for $1.6 million,
pursuant to their Commercial Sale Contract for Improved Property.
The Order constitutes a final order within the meaning of 28 U.S.C.
Section 158(a)(1). To the extent necessary under Fed. R. Bankr. P.
9014, the Court expressly finds that there is no just reason for
delay in the implementation of the Order, and expressly directs
entry of the Order. Moreover, pursuant to Fed. R. Bankr. P.
6004(h), the Court rules that the 14-day stay of the Order
authorizing the sale of the Real Estate should be, and is, waived.
The sale is free and clear of all liens, claims, encumbrances, and
other interests. Great Western Bank's liens on any other assets of
the Debtors other than the Real Estate are unaffected by the Order
and remain in full force and effect.
At the time of closing, and from the proceeds of the sale, the
Trustee is authorized and directed to pay its share of the closing
costs and all past due and outstanding taxes with respect to the
Real Estate. Finally, the Trustee is further directed to place the
remaining net sale proceeds into a segregated bank account and the
Proceeds will be held in such account pending further order of the
Court.
About Pinnacle Regional Hospital
Pinnacle Regional Hospital, Inc. -- http://pinnacleregional.com/--
is an operator of general acute-care hospitals in Overland Park,
Kansas.
Pinnacle Regional Hospital and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Lead Case
No. 20-20219) on Feb. 12, 2020. The affiliates are Pinnacle
Regional Hospital LLC, Pinnacle Healthcare System Inc., Blue Valley
Surgical Associates, Rojana Realty Investments Inc. and Joys'
Majestic Paradise, Inc.
At the time of the filing, Pinnacle Regional Hospital disclosed
assets of between $10 million and $50 million and liabilities of
the same range.
McDowell, Rice, Smith & Buchanan, PC is Debtors' legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 31, 2020. The committee is represented by
Kilpatrick Townsend & Stockton, LLC.
On March 31, 2020, James A. Overcash, Esq., at Woods Aitken LLP,
was appointed as Chapter 11 trustee. The Trustee is represented by
Stinson LLP and Woods Aitken LLP.
PINNACLE REGIONAL: Trustee's $1.75M Sale of Bates Property Approved
-------------------------------------------------------------------
Judge Sale L. Somers of the U.S. Bankruptcy Court for the District
of Kansas authorized James Overcash, the Chapter 11 trustee for
Pinnacle Regional Hospital, Inc. and its affiliates, to sell Joy's
Majestic Paradise, Inc.'s agricultural land located in Bates
County, Missouri, and more fully described on Exhibit A, to Brent
Bettels and/or assigns for $1.75 million, pursuant to their Land
Real Estate Sale Contract and Counter Offer Addendum.
A hearing on the Motion was held on May 8, 2020.
The Order constitutes a final order within the meaning of 28 U.S.C.
Section 158(a)(1). To the extent necessary under Fed. R. Bankr. P.
9014, the Court expressly finds that there is no just reason for
delay in the implementation of the Order, and expressly directs
entry of the Order. Moreover, pursuant to Fed. R. Bankr. P.
6004(h), the Court rules that the 14-day stay of the Order
authorizing the sale of the Real Estate should be, and is, waived.
The sale is free and clear of all liens, claims, encumbrances, and
other interests. Great Western Bank's liens on any other assets of
the Debtors other than the Real Estate are unaffected by the Order
and remain in full force and effect.
At the time of closing, and from the proceeds of the sale, the
Trustee is authorized and directed to pay its share of the closing
costs and all past due and outstanding taxes with respect to the
Real Estate. Finally, the Trustee is further directed to place the
remaining net sale proceeds into a segregated bank account and the
Proceeds will be held in such account pending further order of the
Court.
A copy of the Exhibit A is available at
https://tinyurl.com/ybuzf7mp from PacerMonitor.com free of charge.
About Pinnacle Regional Hospital
Pinnacle Regional Hospital, Inc. -- http://pinnacleregional.com/--
is an operator of general acute-care hospitals in Overland Park,
Kansas.
Pinnacle Regional Hospital and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Kansas Lead Case
No. 20-20219) on Feb. 12, 2020. The affiliates are Pinnacle
Regional Hospital LLC, Pinnacle Healthcare System Inc., Blue Valley
Surgical Associates, Rojana Realty Investments Inc. and Joys'
Majestic Paradise, Inc.
At the time of the filing, Pinnacle Regional Hospital disclosed
assets of between $10 million and $50 million and liabilities of
the same range.
McDowell, Rice, Smith & Buchanan, PC is Debtors' legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 31, 2020. The committee is represented by
Kilpatrick Townsend & Stockton, LLC.
On March 31, 2020, James A. Overcash, Esq., at Woods Aitken LLP,
was appointed as Chapter 11 trustee. The Trustee is represented by
Stinson LLP and Woods Aitken LLP.
PRIMESOURCE INCORPORATED: Hires Wendy Weissman as Accountant
------------------------------------------------------------
Primesource Incorporated, seeks authority from the U.S. Bankruptcy
Court for the District of Montana to employ Wendy Weissman, CPA PC,
as its accountant.
Services Wendy Weissman will process payroll, process all related
payroll taxes and other employee related liabilities, provide any
other duties related to payroll, complete all quarterly payroll
reports, consult on Quickbooks matters as requested and prepare
reports for income tax preparation, and assist the Debtor with the
Chapter 11 case.
Wendy Weissman's fees are:
-- $50 per hour for payroll, related payroll liability payments
and other requested duties.
-- Payroll reports will be charged at $100 per quarter for the
first three quarters and $150 at year end. Year end includes W2s
and any additional annual payroll reports.
-- Preparation of 1099s will be additional $50.
-- $75 per hour for Quickbooks consulting and income tax report
preparation.
Wendy Weissman represents no interest adverse to the Debtor or the
estate in the matters upon which they are to be engaged.
The firm can be reached through:
Wendy Weissman, CPA
Wendy Weissman, CPA PC
525 Central Avenue, Suite L8
Great Falls, MT 59401
Phone: (406) 454-8988 ext. 3
Fax: (406) 216-5365
E-mail: wendy@weissman.com
About Primesource Inc.
Primesource Incorporated sought Chapter 11 protection (Bankr. D.
Mont. Case No. 19-61154) on Nov. 14, 2019, disclosing under $1
million in both assets and liabilities. The Debtor is represented
by Gary S. Deschenes, Esq., at Deschenes & Associates Law Offices.
QUORUM HEALTH: Opposes Bid to Appoint Equity Committee
------------------------------------------------------
Quorum Health Corporation asked the U.S. Bankruptcy Court for the
District of Delaware to deny the motion of Mudrick Capital
Management, L.P. to appoint a committee of equity holders.
In court papers, Quorum Health's attorney, Maris Kandestin, Esq.,
at McDermott Will & Emery LLP, said Mudrick failed to prove that
the company and its affiliates are not insolvent and that equity
holders are not adequately represented.
"Mudrick bears the burden of demonstrating that equity has a
substantial likelihood of receiving a meaningful distribution and
that it cannot adequately represent its interests absent the
appointment of an official committee. This burden is rarely met,
and it is not met here," the attorney said.
Ms. Kandestin pointed out that under a best-case scenario view of
the companies' enterprise value, equity is out-of-the-money by over
$100 million.
"Despite Mudrick's repeated assertions that CARES Act
funds can cure all of the [companies'] financial woes, that simply
is not true, and like the alternative valuation put forth by
Mudrick, is the product of faulty assumptions and self-serving
speculation," Ms. Kandestin said in court papers.
About Quorum Health Corporation
Headquartered in Brentwood, Tennessee, Quorum Health (NYSE: QHC) --
http://www.quorumhealth.com/-- is an operator of general acute
care hospitals and outpatient services in the United States.
Through its subsidiaries, the Company owns, leases or operates a
diversified portfolio of 24 affiliated hospitals in rural and
mid-sized markets located across 14 states with an aggregate of
1,995 licensed beds. The Company also operates Quorum Health
Resources, LLC, a leading hospital management advisory and
consulting services business.
Quorum Health incurred net losses attributable to the company of
$200.25 million in 2018, $114.2 million in 2017, and $347.7 million
in 2016.
As of Sept. 30, 2019, Quorum Health had $1.52 billion in total
assets, $1.72 billion in total liabilities, $2.27 million in
redeemable non-controlling interest, and a total deficit of $203.36
million.
On April 7, 2020, Quorum Health Corporation and 134 affiliates
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
20-10766) to seek confirmation of a pre-packaged plan.
McDermott Will & Emery LLP and Wachtell, Lipton, Rosen & Katz are
serving as the Company's legal counsel, MTS Health Partners, L.P.
is serving as its financial advisor and Alvarez & Marsal North
America, LLC. is serving as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent, maintaining the Website
https://dm.epiq11.com/Quorum
R&F GROUP: June 3 Hearing on Property Sale Set
----------------------------------------------
Judge D. Sims Crawford of the U.S. Bankruptcy Court for the
Northern District of Alabama denied the request of R&F Group, LLC
and affiliates to shorten time in connection with the sale of
property free and clear of liens.
A hearing on the Motion was held on May 13, 2020 10:00 a.m.
Given that a hearing on the Debtor's Motion and their Notice of
Intent to Assume and Assign Certain Executory Contracts or
Unexpired Leases will be held telephonically on June 3, 2020, at
10:00 a.m.
About R&F Group, LLC
Birmingham, Alabama-based R&F Group, LLC and its subsidiaries are
privately held companies that operate in the food service
industry.
R&F Group, LLC (Bankr. N.D. Ala. Case No. 19-04357) and its
subsidiaries, RFG Foley, LLC (Bankr. N.D. Ala. Case No. 19-04358),
RFG Florida, LLC (Bankr. N.D. Ala. Case No. 19-04361), RFG Florida
II, LLC (Bankr. N.D. Ala. Case No. 19-04363) and RFG Florida III,
LLC (Bankr. N.D. Ala. Case No. 19-04364), sought Chapter 11
protection on Oct. 23, 2019.
In the petitions signed by Colin Feather, managing member, the
Debtors were each estimated assets of up to $50,000 and $1 million
to $10 million in debt.
The cases are assigned to Jduge D. Sims Crawford.
The Debtors tapped Lee R. Benton, Esq., and Samuel Stephens, Esq.,
at Benton & Centeno, LLP, as counsel.
RAVN AIR GROUP: Hires Sage-Popovich as Liquidation Advisor
----------------------------------------------------------
Ravn Air Group, Inc., and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Sage-Popovich, Inc., as liquidation advisor to the Debtors.
Ravn Air Group requires Sage-Popovich to:
a. provide general consulting and guidance, including
technical issues during suspension of operations, FAA
compliance during service suspension, maintaining
certificates, and maintaining airworthiness status;
b. assist with personnel issues, including maintenance,
information technology, parts, and records and tracking;
c. asset protection and storage, including aircraft storage
programs and maintenance, inventory counts and protection,
securing and maintaining ground service equipment and
vehicles, and spare engine preservation;
d. assist in auditing records, building asset specification
sheets, and preparing non-incident letters;
e. collect items out for repair and on loan, including
locating and negotiating return of owned items out for
repair, on loan, or otherwise outside the control of
the Debtors;
f. manage all aspects of sales of any operational class of
assets as permitted by the Bankruptcy Court, including
aircraft, spare parts, ground support equipment, vehicles,
tooling. Assist in preparation and support for sales
motions. Prepare monthly sales reports, advertising and
general notices. Assist in establishing the de minimis
threshold;
g. assist in finding offsite storage as required or prudent;
and
h. at the Debtors' direction, interfacing with DIP Lenders and
Prepetition Lenders.
Sage-Popovich will be paid as follows:
Nick Popovich $600 per hour, $4,500 per day
Appraisers $400 per hour, $3,200 per day
Project Manager $275 per hour, $1,750 per day
A&P inspectors $200 per hour, $1,000 per day (domestic)
$150 per hour, $1,200 per day (int'l)
Field Staff $125 per hour, $850 per day
Support Staff $45 per hour, $500 per day
Sage-Popovich will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Nick Popovich, partner of Sage-Popovich, Inc., assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their/its estates.
Sage-Popovich can be reached at:
Nick Popovich
SAGE-POPOVICH, INC.
P.O. Box One
Valparaiso, IN 46384
Tel: (219) 464-8320
About Ravn Air Group, Inc.
Ravn Air Group, Inc. -- https://www.flyravn.com/ -- was formed
through the combination of five Alaskan air transportation
businesses in 2009, creating the largest regional air carrier and
network in the state. Ravn owns and, until the COVID-19-related
disruptions, operated 72 aircraft at 21 hub airports and 73
facilities, serving 115 destinations in Alaska with up to 400 daily
flights. Until the COVID-19-related disruptions, Ravn Air Group and
its affiliates had over 1,300 employees (non-union), and it carried
over 740,000 passengers on an annual basis.
Ravn Air Group provides air transportation and logistics services
to the passenger, mail, charter, and freight markets in Alaska,
pursuant to U.S. Department of Transportation approval as three
separate certificated air carriers. Two of the carriers (RavnAir
ALASKA and PenAir) operate under Federal Aviation Administration
Part 121 certificates and the other (RavnAir CONNECT) operates
under an FAA Part 135 certificate. In addition to carrying
passengers, many of whom fly on Medicaid-subsidized tickets, other
key customers include companies in the oil and gas industry, the
seafood industry, the mining industry, and the travel and tourism
industries.
Ravn Air Group and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-10755)
on April 5, 2020. At the time of the filing, Debtors was estimated
to have assets of between and $100 million to $500 million and
liabilities of the same range.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped Keller Benvenutti Kim LLP as bankruptcy counsel;
Blank Rome LLP as special corporate and local bankruptcy counsel;
Conway Mackenzie, LLC as financial advisor; and Stretto as claims
and noticing agent.
RIO PROPERTY: 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 Rio Property Rentals, LLC.
About Rio Property Rentals
Rio Property Rentals LLC, a company based in Yuma, Ariz., filed a
Chapter 11 petition (Bankr. D. Ariz. Case No. 20-02315) on March 5,
2020. In the petition signed by Terry Gibbs, manager, Debtor was
estimated to have $500,000 to $1 million in assets and $1 million
to $10 million in liabilities. Judge Brenda Moody Whinery oversees
the case. Cody J. Jess, Esq., at Moyes Sellers & Hendricks Ltd.,
is Debtor's bankruptcy counsel.
ROCHESTER DRUG: Hires Epiq Corporate as Administrative Advisor
--------------------------------------------------------------
Rochester Drug Co-Operative, Inc., seeks approval from the U.S.
Bankruptcy Court for the Western District of New York to hire Epiq
Corporate Restructuring, LLC as administrative advisor.
Rochester requires Epiq to:
(a) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtor’s schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
chapter 11 plan; and
(f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtor, the Court or the
Clerk's Office.
Brian Hunt, consulting director of Epiq, assures the court that the
firm is a "disinterested person" within the meaning of section
101(14) of the Bankruptcy Code, as required by section 327(a) of
the Bankruptcy Code, and does not hold or represent any interest
materially adverse to the Debtor's estate in connection with any
matter on which it would be employed.
The firm can be reached through:
Brian Hunt
Epiq Corporate Restructuring, LLC
777 Third Avenue
11th and 12th Floors
New York, NY 10017
Phone: +1 212 225 9200
About Rochester Drug Co-Operative, Inc.
Rochester Drug Cooperative, Inc. is an independently owned New York
cooperative corporation formed in 1905 and incorporated in 1948
with a principal office and place of business located at 50 Jet
View Drive, Rochester, New York 14624. Its principal business is
to warehouse, merchandise, and then distribute, on a cooperative
basis, drugs, pharmaceutical supplies, medical equipment and other
merchandise commonly sold in drug stores, pharmacies, health and
beauty stores, and durable medical equipment business. It is a
wholesale regional drug cooperative that operates as both a buying
cooperative and a traditional drug distribution company created for
the purpose of helping independent pharmacies compete in the
current healthcare environment.
Rochester Drug Cooperative sought Chapter 11 protection (Bankr.
W.D.N.Y. Case No. 20-20230) on March 12, 2020.
The Debtor was estimated to have $50 million to $100 million in
assets and $100 million to $500 million in liabilities.
The Hon. Paul R. Warren is the case judge.
The Debtor tapped Bond, Schoeneck & King, PLLC, led by Stephen A.
Donato, as counsel and Epiq Corporate Restructuring, LLC as the
claims and noticing agent.
RONALD GOODWIN: Request to Sell Wichita Property for $1M Defective
------------------------------------------------------------------
Judge Robert E. Nugent of the U.S. Bankruptcy Court for the
District of Kansas has ordered Ronald A. Goodwin and Michelle L.
Goodwin to correct their defective documents in connection with
their proposed sale of the real estate commonly known as of 1400 E.
25th St. N., Wichita, Kansas to Martin's Central Sand Co., Inc. for
$1 million.
The Notice was not docketed. The Court will take no further action
and no hearing will be scheduled until the filer corrects the
described deficiency. The filer is ordered to correct all
deficiencies within 14 days of the date of the Order. Failure to
timely comply will result in the matter being set on the Court's
show cause docket or denied, in the Court's sole discretion,
without further notice.
Ronald A. Goodwin and Michelle L. Goodwin sought Chapter 11
protection (Bankr. D. Kan. Case No. 16-12205) on Nov. 8, 2017. The
Debtors tapped Mark J. Lazzo, Esq., as counsel.
SAN JOAQUIN AIDS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: San Joaquin AIDS Foundation
4330 N. Pershing Avenue
Suite B-3
Stockton, CA 95207
Business Description: San Joaquin AIDS Foundation is a non-profit
organization in Stockton, California that
provides personal counseling and support
to people living with HIV. The Debtor
previously sought bankruptcy protection on
Dec. 26, 2019 (Bankr. E.D. Calif. 19-27921).
Chapter 11 Petition Date: May 18, 2020
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 20-22571
Debtor's Counsel: David C. Johnston, Esq.
DAVID C. JOHNSTON
1600 G Street, Suite 102
Modesto, CA 95354
Tel: (209) 579-1150
E-mail: david@johnstonbusinesslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert L. Lampkins, Jr., president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the petition is available for free at PacerMonitor.com
at:
https://is.gd/YoKkbl
SCOOBEEZ INC: July 9 Plan Confirmation Hearing Set
--------------------------------------------------
Debtors Scoobeez, Scoobeez Global, Inc., and Scoobur, LLC, filed
with the U.S. Bankruptcy Court for the Central District of
California, Los Angeles Division, a motion for entry of an order
approving the Debtors’ Disclosure Statement.
On April 30, 2020, Judge Julia W. Brand granted the motion and
ordered that:
* Any and all objections to the Motion not otherwise settled or
withdrawn are hereby overruled, provided that the objection filed
by Amazon Logistics, Inc., regarding the timing of, and conditions
to, the effective date of the plan is reserved for the plan
confirmation hearing.
* The Disclosure Statement is approved.
* June 5, 2020, is fixed as the last day to delivery all ballots
to be counted as a vote to accept or reject the Plan.
* June 11, 2020, is fixed as the last day to file the ballot
summary with a declaration, and memoranda in support of
confirmation of the Plan with declarations.
* July 9, 2020, at 10:00 a.m. is the hearing on Confirmation of
the Plan.
* June 25, 2020, is fixed as the last day to file objections or
responses to confirmation of the Plan.
* July 2, 2020, is fixed as the last day to file replies to
objections to confirmation.
A full-text copy of the Disclosure Statement dated April 30, 2020,
is available at https://tinyurl.com/ydc85tja from PacerMonitor at
no charge.
Attorneys for Debtors:
Ashley M. McDow
John A. Simon
Shane J. Moses
FOLEY & LARDNER LLP
555 S. Flower St., 33rd Floor
Los Angeles, CA 90071
Tel: 213.972.4500
E-mail: amcdow@foley.com
jsimon@foley.com
smoses@foley.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. Calif. 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.
SIGNATURE PACK: Sale of Metal Detector to Visionary Foods Approved
------------------------------------------------------------------
Judge James R. Sacca of the U.S. Bankruptcy Court for the Northern
District of Georgia authorized Signature Pack, LLC's sale of metal
detector to Visionary Foods, LLC.
The sale is free and clear of any liens, claims, and encumbrances.
The Buyer is authorized to pay the Purchase Price to the Bankruptcy
Estate to be held in the IOLTA of Jones & Walden LLC until further
order of the Court.
Notwithstanding Bankruptcy Rule 6004 or otherwise, the Order will
be effective immediately on entry and any stay of the Order is
waived so that the Debtor may close any sale contemplated herein
immediately upon entry of the Order.
About Signature Pack
Signature Pack, LLC is a privately held company in Pendergrass,
Georgia that provides packaging services.
Signature Pack, based in Pendergrass, GA, filed a Chapter 11
petition (Bankr. N.D. Ga. Case No. 19-20916) on May 9, 2019. In
its petition, the Debtor estimated $0 to $50,000 in assets and $1
million to $10 million in liabilities. The Hon. James R. Sacca
oversees the case. Leslie M. Pineyro, Esq., at Jones & Walden,
LLC, serves as bankruptcy counsel to the Debtor.
SINTX TECHNOLOGIES: Reports $8.1M Net Loss for First Quarter
------------------------------------------------------------
SINTX Technologies, Inc., reported a net loss attributable to
common stockholders of $8.11 million on $207,000 of product revenue
for the three months ended March 31, 2020, compared to a net loss
attributable to common stockholders of $1.63 million on $97,000 of
product revenue for the three months ended March 31, 2019.
As of March 31, 2020, the Company had $15.36 million in total
assets, $4.15 million in total liabilities, and $11.21 million in
total stockholders' equity.
The Company had an accumulated deficit of $233 million and $234
million as of March 31, 2020 and Dec. 31, 2019, respectively. To
date, the Company's operations have been principally financed from
proceeds from the issuance of preferred and common stock and, to a
lesser extent, cash generated from product sales. It is
anticipated that the Company will continue to generate operating
losses and use cash in operations. The Company said its
continuation as a going concern is dependent upon its ability to
increase sales, and/or raise additional funds through the capital
markets. Whether and when the Company can attain profitability and
positive cash flows from operations or obtain additional financing
is uncertain.
SINTX said, "The Company is actively generating additional
scientific and clinical data to have it published in leading
industry publications. The unique features of our silicon nitride
material are not well known, and we believe the publication of such
data would help sales efforts as the Company approaches new
prospects. The Company is also making additional changes to the
sales strategy, including a focus on revenue growth by expanding
the use of silicon nitride in other areas outside of spinal fusion
applications."
Risks Related to COVID-19 Pandemic
The Company continued, "While the potential economic impact brought
by, and the duration of, the COVID-19 pandemic is difficult to
assess or predict, the impact of the COVID-19 pandemic on the
global financial markets may reduce the Company's ability to access
capital, which could negatively impact the Company's short-term and
long-term liquidity. The ultimate impact of the COVID-19 pandemic
is highly uncertain and subject to change. The Company does not
yet know the full extent of potential delays or impacts on its
business, financing or other activities or on healthcare systems or
the global economy as a whole. However, these effects could have a
material impact on the Company's liquidity, capital resources,
operations and business and those of the third parties on which we
rely."
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/rVF0Im
About SINTX Technologies
Headquartered in Salt Lake City, Utah, SINTX Technologies --
https://ir.sintx.com/ -- is an OEM ceramics company that develops
and commercializes silicon nitride for medical and non-medical
applications. The core strength of SINTX Technologies is the
manufacturing, research, and development of silicon nitride
ceramics for external partners. The Company manufactures silicon
nitride material and components in its FDA registered and ISO 13485
certified facility.
On March 24, 2020, the Company received a notice from the Nasdaq
Listing Qualifications Department of the Nasdaq Stock Market LLC
stating that the bid price of the Company's common stock for the
last 30 consecutive trading days had closed below the minimum $1.00
per share required for continued listing under Listing Rule
5550(a)(2). If the Company does not regain compliance with Rule
5550(a)(2) by Sept. 21, 2020, the Company may be afforded a second
180 calendar day period to regain compliance.
SINTX reported a net loss attributable to common stockholders of
$7.50 million for the year ended Dec. 31, 2019, compared to a net
loss attributable to common stockholders of $22.55 million for the
year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$9.15 million in total assets, $3.94 million in total liabilities,
and $5.20 million in total stockholders' equity.
SOUTHLAND ROYALTY: May 22 Auction of San Juan Basin Assets Set
--------------------------------------------------------------
Judge Karen B. Owens of the U.S. Bankruptcy Court for the District
of Delaware authorized Southland Royalty Co. LLC's auction sale of
assets in and relating to the San Juan basin in New Mexico and
Colorado to MorningStar Operating, LLC, subject to overbid.
The Debtor's designation of the Stalking Horse Purchaser is
approved as set forth.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: May 18, 2020 at 5:00 p.m. (ET)
b. Initial Bid: In the event that there is a Stalking Horse
Purchaser, the aggregate consideration proposed by the Qualified
Bidder must equal or exceed: the sum of (A) any Stalking Horse
Purchase Price, (B) any Break-Up Fee (C) any Expense Reimbursement,
and (D) $100,000, or such other amount selected by the Debtor, in
any event not to exceed $100,000.
c. Deposit: 10% of the unadjusted purchase price
d. Auction: If the Debtor timely receives one or more
Qualified Bids other than any Stalking Horse Purchaser's Qualified
Bid, then the Debtor will conduct an auction on May 22, 2020, or
such other date as the Debtor may notify Qualified Bidders, at a
time and location, or by telephone, as determined by the Debtor.
e. Bid Increments: $100,000
f. Sale Hearing: May 28, 2020 at 1:30 p.m. (ET)
g. Sale Objection Deadline: May 15, 2020 at 4:00 p.m. (ET)
A copy of the Bidding Procedures is available at
https://tinyurl.com/y8f3s8bn from pacerMonitor.com free of charge.
To the extent the Order is inconsistent with the terms of the
Stalking Horse APA, the Order will govern.
About Southland Royalty Co.
Southland Royalty Company LLC -- http://www.southlandroyaltyco.com/
-- is a privately held independent exploration and production
company engaged in the acquisition and development of hydrocarbons.
Headquartered in Fort Worth, Southland Royalty Company conducts
its business across four states, with the majority of operations in
Wyoming and New Mexico. Southland Royalty Company was formed
principally to produce and extract hydrocarbons in the Wamsutter
field of the Green River Basin and in the San Juan Basin.
Southland Royalty Company sought Chapter 11 protection (Bankr. D.
Del. Case No. 20-10158) on Jan. 27, 2020.
In the petition signed by CRO Frank A. Pometti, the Debtor was
estimated to have $100 million to $500 million in assets and $500
million to $1 billion in liabilities.
The Debtor tapped Shearman & Sterling LLP as bankruptcy counsel;
Young Conaway Stargatt & Taylor, LLP as Delaware counsel; AP
Services, LLC as interim management services provider; PJT Partners
Inc. as investment banker; and Epiq Corporate Restructuring, LLC as
claims and noticing agent.
STEM HOLDINGS: Incurs $4.77 Million Net Loss in Second Quarter
--------------------------------------------------------------
Stem Holdings, Inc. reported a net loss of $4.77 million on $2.30
million of total revenue for the three months ended March 31, 2020,
compared to a net loss of $2.79 million on $354,000 of total
revenue for the three months ended March 31, 2019.
Cost of goods for the three months ended March 31, 2020 amounted to
approximately $1,573,000 compared to $0 in the comparable period of
the prior year. These costs include both the cost of finished
product purchased for retail and the cost of cultivation and
processing for the grow facilities and sold at the wholesale
level.
In the three months ended March 31, 2020, the Company incurred
consulting costs of $1,398,000 compared to $1,137,000 in the
comparable period of the prior year. The Company expended those
fees as it has yet to build up a significant employee base and
currently outsource certain tasks to consultants. The Company
expects in the upcoming year to increase its consulting fees as it
continues to grow, even though the Company does expect to increase
staffing, as it does not expect that growth will be commensurate
with its growth from operations in the near term.
In the three months ended March 31, 2020, the Company incurred
professional fees of approximately $884,000 compared to $409,000 in
the comparable period of the prior year. Those fees are primarily
for legal, accounting and related services relating to its being a
public company in both the United States and Canada. The Company
expects as it grows its operations these costs will continue to
grow.
In the three months ended March 31, 2020, the Company incurred
general and administrative costs of approximately $2,068,000
compared to $1,202,000 which included an increase in payroll,
depreciation and amortization, insurance, rent expense and other
general costs. The Company expects that these costs will increase
as it increases its operations.
For the six months ended March 31, 2020, the Company reported a net
loss of $8.09 million on $3.62 million of total revenue compared to
a net loss of $6.96 million on $692,000 of total revenue for the
six months ended March 31, 2019.
As of March 31, 2020, the Company had $44.45 million in total
assets, $16.58 million in total assets, $27.87 million in total
shareholders' equity.
A full-text copy of the Quarterly Report is available for free at
the Securities and Exchange Commission's website at:
https://is.gd/lt6yKw
About Stem Holdings
Headquartered in Boca Raton, Florida, Stem Holdings, Inc. --
http://www.stemholdings.com/-- is a multi-state, vertically
integrated, cannabis company that purchases, improves, leases,
operates and invests in properties for use in the production,
distribution and sales of cannabis and cannabis-infused products
licensed under the laws of the states of Oregon, Nevada,
California, and Oklahoma.
Stem Holdings reported a net loss of $28.98 million for the year
ended Sept. 30, 2019, compared to a net loss of $8.70 million for
the year ended Sept. 30, 2018. As of Sept. 30, 2019, the Company
had $31.09 million in total assets, $7.50 million in total
liabilities, and $23.59 million in total shareholders' equity.
LJ Soldinger Associates, LLC, in Deer Park, IL, the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated March 1, 2020, citing that the Company and its
affiliates reported net losses of $28.985 million and $8.698
million, negative working capital of $2.635 million and $2.273
million and accumulated deficits of $37.082 million and $11.533
million as of and for the year ended Sept. 30, 2019 and 2018,
respectively. In addition, the Company has commenced operations in
the production and sale of cannabis and related products, an
activity that is illegal under United States Federal law for any
purpose, by way of Title II of the Comprehensive Drug Abuse
Prevention and Control Act of 1970, otherwise known as the
Controlled Substances Act of 1970. These factors raise substantial
doubt as to the Company's ability to continue as a going concern.
TAMKO BUILDING: S&P Affirms 'BB-' ICR; Outlook Negative
-------------------------------------------------------
S&P Global Ratings revised its outlook on roofing manufacturer
TAMKO Building Products to negative from stable and affirmed its
'BB-' issuer credit rating and issue-level rating on its first-lien
term loan due 2026.
"Driving the outlook revision to negative is our view that
recessionary pressures and slower housing activities -- both repair
and remodeling and new construction -- will depress end market
demand, thereby leading to lower revenues and EBITDA in 2020. For
the 12 months ended Dec. 31, 2019, the company's adjusted leverage
was 4.5x and FFO to debt was 14.7%. However, under our base-case
scenario, we expect earnings and cashflows to contract in 2020,
causing credit measures to deteriorate," S&P said.
S&P believes the current recession has likely reduced the U.S.'
economic activity by 11.8% peak to trough, which is roughly three
times the decline seen during the Great Recession in one-third of
the time. S&P Global Ratings forecasts the U.S. economy will
contract 5.3% this year--including a historic (annualized) decline
of almost 35% in the second quarter. Social distancing has brought
consumer spending to its knees, and S&P expects it to decline by
5.5% in 2020. Further, S&P believes the recovery will be gradual as
social distancing measures endure, but it expects the economy will
at least partly reopen in the third quarter.
Postponed repair and remodeling spending combined with higher
susceptibility to demand swings from weather-related events,
underlie S&P's view that TAMKO's revenues could decline 10%-15% in
2020 About three-fourths of TAMKO's revenues are driven by
replacement roof spending. S&P views roof replacement to be less
discretionary in nature than some of the other renovation
activities such as bath and kitchen remodels. However, S&P believes
social distancing practices will hamper the ability of contractors
to perform these replacement and repair activities, and such
activities will likely be postponed. Also, high unemployment levels
and reduced household income may be factors that cause full-fledged
roof replacement being deferred, given the high cost. S&P thinks
consumers may resort to lower value repair activities in the
interim instead.
S&P expects fewer housing starts in 2020 and thus believes demand
from the new construction end market (accounting for about 15% of
revenues) will also be lower this year.
Additionally, compared with other rated roofing manufacturers,
TAMKO is more exposed to demand from storm activity and the
inherent volatility thereof. TAMKO has benefitted from higher
demand in active weather-related (hailstorms, low category
hurricanes, etc.) years like 2017-2018,but 2019 was a relatively
benign year and sales volumes were lower.
Based on all these factors and assuming normalized storm activity
in 2020, S&P expects overall revenues to be down 10%-15% this year.
However, if replacement activity begins to pick up as some parts of
the U.S. lift shelter-in-place orders and/or there is an active
storm season, S&P could see a faster recovery in end markets'
demand in the second half of 2020.
Lower volumes will offset the benefit from lower input costs, thus
causing earnings to contract and credit metrics to weaken over the
next 12 months The major input costs for TAMKO are asphalt and
freight costs, as asphalt-based shingles account for about 70% of
revenues. With the decline in crude oil prices, both these input
costs will benefit. However, the drop in volumes has led to
production curtailments and higher fixed overheads, which are
offsetting any cost benefits.
"While management is taking actions to cut costs, we expect there
to be lag between the declining volumes and reduced costs, thereby
compressing margins. As such, we expect EBITDA and cashflows to
contract in 2020. And we expect leverage to rise to above 5x and
FFO/debt to begin trending towards 12%, in 2020," S&P said.
The negative outlook on TAMKO indicates S&P's belief that credit
measures could deteriorate more than expected under the rating
agency's base-case scenario if recessionary conditions persist and
end demand remains depressed for an extended period.
S&P may lower the rating over the next 12 months if:
-- EBITDA declines by more than 25%, thereby causing debt/EBITDA
to approach 6x, with little expectations of a quick rebound;
-- The company takes on a more aggressive financial policy, such
as pursuing debt-funded acquisitions or dividend payouts, causing
credit metrics to deteriorate; or
-- Financial sponsors increased its ownership to more than 40%
S&P may revise the outlook back to stable over the next 12 months
if:
-- End markets' demand and overall business conditions improve;
and
-- TAMKO sustains its debt leverage in the 4x-5x range.
TARWATER REAL: Seeks to Hire Michael Familetti as Counsel
---------------------------------------------------------
Tarwater Real Estate Holdings has filed with the U.S. Bankruptcy
Court for the Northern District of Georgia an amended application
seeking approval to hire Michael Familetti as counsel.
Tarwater Real Estate requires Michael Familetti to:
a. provide legal advice as to duties and powers of debtor;
b. advocate the best interests of debtor, file motions,
adversaries, forms, defending creditor action of all kind,
excepting state court matters;
c. obtain confirmation of Plan, after gaining approval of
disclosure statement, and negotiation of position with
creditors and parties in interest.
Michael Familetti will be paid at the hourly rate of $235.
Michael Familetti will be paid an overall fee of $10,000, and due
to available funds, remitted to counsel a retainer of $2,000 on
April 2, 2020, which was deposited in the firm's trust account.
Michael Familetti will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Michael Familetti assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estates.
Michael Familetti can be reached at:
Michael Familetti, Esq.
142 S. Park Square
Marietta, GA 30060
Tel: (770) 794-8005
About Tarwater Real Estate Holdings
Tarwater Real Estate Holdings, LLC, based in Acworth, GA, filed a
Chapter 11 petition (Bankr. N.D. Ga. Case No. 20-65242) on April 2,
2020. The Hon. Sage M. Sigler oversees the case. Michael
Familetti, Esq., serves as bankruptcy counsel to the Debtor.
TONY'S FAMOUS: Aug. 12 Plan & Disclosures Hearing Set
-----------------------------------------------------
Debtor Tony's Famous Tomato Pie Bar and Restaurant filed with the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania a
motion for grant of additional time to obtain approval of
Disclosure Statement.
On April 30, 2020, Judge Magdeline D. Coleman granted the motion
and ordered that:
* Additional time is granted to obtain approval of the
Disclosure Statement, Plan Voting and time for Confirmation.
* June 30, 2020, is the Voting Record Date on which the holders
of Allowed Claims entitled to vote on the Plan.
* Aug. 5, 2020 at 5:00 p.m. Eastern Time is the deadline by
which a Ballot must be properly completed, executed, and actually
received by the Debtor's counsel.
* Aug. 12, 2020, at 11:30 a.m. Eastern Time is the Combined
Hearing, at which the Court will consider the adequacy of the
Disclosure Statement on a final basis and confirmation of the
Plan.
* Aug. 5, 2020, is the deadline to file any objections to
confirmation of the Plan or to the adequacy of the Disclosure
Statement.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/ycj94dlz from PacerMonitor at no charge.
The Debtor is represented by:
Ronald L. Daugherty, Esquire
Salmon, Ricchezza, Singer & Turchi LLP
16S0 Market Street, Suite 2500
Philadelphia, PA 19103
About Tony's Tomato Pie
Tony's Tomato Pie Bar and Restaurant has operated a restaurant
since 2015. The company sought Chapter 11 protection (Bankr. E.D.
Pa. Case No. 19-13427) on May 29, 2019. Ronald Lee Daugherty, Esq.,
at SALMON RICCHEZZA SINGER & TURCHI, LLP, is the Debtor's counsel.
TOOJAY'S MANAGEMENT: Hires Berger Singerman as Counsel
------------------------------------------------------
Toojay's Management LLC, and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Southern District of Florida
to employ Berger Singerman LLP, as counsel to the Debtors,
substituting Akerman LLP.
Toojay's Management requires Berger Singerman to:
(a) give advice to the Debtors with respect to their powers
and duties as debtors in possession and the continued
management of their business operations;
(b) advise the Debtors with respect to their responsibilities
in complying with the United States Trustee's Operating
Guidelines and Reporting Requirements and with the
rules of the Court;
(c) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary
in the administration of these chapter 11 cases;
(d) protect the interests of the Debtors in all matters
pending before the Court;
(e) represent the Debtors in negotiations with their creditors
and in the preparation of a plan; and
(f) assist the Debtors in maximizing the value of their assets
through the advance of an orderly, competitive sale of its
assets; prosecute litigation claims; and to pay the
holders of allowed claims in accordance with the
priorities established by the Bankruptcy Code.
Berger Singerman will be paid at these hourly rates:
Partners $615 to $720
Associates $320 to $450
Paralegals $85 to $250
Berger Singerman will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Paul Steven Singerman, a partner of Berger Singerman LLP, assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Berger Singerman can be reached at:
Paul Steven Singerman, Esq.
BERGER SINGERMAN LLP
1450 Brickell Avenue, Ste. 1900
Miami, FL 33131
Tel: (305) 755-9500
Fax: (305) 714-4340
E-mail: singerman@bergersingerman.com
About Toojay's Management
TooJay's Management LLC is a South Florida-based deli, bakery, and
restaurant chain that open in 1981 serving guests in Palm Beach and
Broward counties, the Treasure Coast, the West Coast of Florida,
the Orlando area and The Villages. TooJay's offers homemade comfort
foods, handcrafted sandwiches, and made-from-scratch soups, salads,
and baked goods. It operates 16 locations in different counties in
Florida.
TooJay's Management LLC and 31 affiliates sought Chapter 11
protection (Bankr. S.D. Fla. Case No. 20-14792) on April 29, 2020.
TooJay's Management was estimated to have $50 million to $100
million in assets and $10 million to $50 million in liabilities as
of the bankruptcy filing.
The Hon. Erik P. Kimball is the case judge.
AKERMAN LLP, in Fort Lauderdale, Florida, originally served as the
Debtors' counsel. The Debtor later hired Berger Singerman LLP, as
counsel, replacing Akerman.
TRI-STATE ROOFING: Seeks to Hire John & John as Accountant
----------------------------------------------------------
Tri-State Roofing seeks authority from the US Bankruptcy Court for
the District of Idaho to hire John & John, PLLC, as its accountants
to perform accounting work in the .
John & John represents no interest adverse to the Debtor or the
estate in the matters upon which they are to be engaged.
The accountant can be reached through:
Tristan John, CPA
John & John PLLC
325 S. Woodruff Ave.
Idaho Falls, I
Phone: (208) 524-5171
About Tri-State Roofing
Tri-State Roofing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Idaho Case No. 20-40188) on March 6,
2020, listing under $1 million in both assets and liabilities.
Aaron Tolson, Esq. at TOLSON & WAYMENT PLLC serves as the Debtor's
counsel.
UBER TECHNOLOGIES: S&P Rates New Unsecured Notes 'CCC+'
-------------------------------------------------------
S&P Global Ratings assigned its 'CCC+' issue-level rating with a
'5' recovery rating to San Francisco-based
transportation-as-a-service provider Uber Technologies Inc.'s new
unsecured notes.
S&P also rates the company's existing unsecured debt 'CCC+'. Uber
plans to use the proceeds for general corporate purposes.
"Our 'B-' issuer credit rating and stable outlook are unchanged.
Despite our expectation that COVID-19 will significantly affect
rides bookings in the second quarter, given they were down 80%
year-over-year in April, we believe offsetting factors will allow
Uber to sustain its capital structure," S&P said.
Uber will reduce customer support and recruiting staff to align
with market demand. It also consolidated some discretionary
investments, divesting its bikes and scooters business to Lime and
planning to discontinue Uber Eats in certain markets.
"Uber has $9 billion in unrestricted cash and equivalents at March
31, 2020, equity stakes with a book value of $10 billion, and an
undrawn $2.3 billion revolving credit facility due in 2023, which
we believe provide ample liquidity to bridge the next several
quarters until cash burn is more manageable. We expect cash flow
deficits in the $3 billion-$4 billion range in 2020, narrowing to
$1 billion-$2 billion next year, which we consider manageable. We
believe quarterly EBITDA will approach break-even in mid-to-late
2021," S&P said.
The rides business shows early signs of recovery with bookings
increasing week-over-week for the three weeks before the company's
earnings call on May 7, and bookings in Hong Kong at 70% of
pre-COVID-19 levels.
"We expect quarterly rides EBITDA will again cover unallocated
corporate expenses no later than sometime in 2021. Eats demand is
surging, allowing EBITDA loss margin to narrow. We think the
current macroeconomic environment could be a catalyst for price
competition to ease more quickly in both rides and Eats on a
permanent basis," S&P said.
ISSUE RATINGS – RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario assumes a payment default in
2022 due to continued depressed demand for rides as social
distancing measures to manage COVID-19 are in force longer than
expected, along with adverse regulatory changes, that exhaust
liquidity and cause Uber to exit key markets.
-- Uber's capital structure consists of secured revolving credit
facilities totaling $2.27 billion, two secured term loans totaling
$2.6 billion, and unsecured notes totaling $4 billion, including
the $750 million of proposed unsecured notes.
-- The secured term loan, revolving credit facility, and unsecured
notes share the same obligors, representing approximately 61% of
2019 consolidated net revenue.
-- Collateral for the secured facilities is limited to
first-priority security interests in certain of the company's
intellectual property (IP), including present and future patents,
trademarks, and copyrights as well as applications for patents,
trademarks, and copyrights. Additionally, 66% of the equity
interest in Uber Singapore Technology Pte. Ltd. is pledged.
-- Collateral excludes the company's autonomous driving IP.
-- Following a payment default and reorganization, S&P assumes the
company's go-forward operations would be pared back primarily to
the U.S.
-- S&P estimates emergence-level EBITDA of approximately $685
million following a reorganization around its U.S. operations. It
values the company using a 7x EBITDA multiple, in the higher half
of the range of multiples the rating agency uses for software
companies, resulting in a net enterprise value of about $4.5
billion after administrative expenses.
-- While S&P believes the collateral package for the credit
facilities should give secured lenders a material advantage over
unsecured noteholders, the extent of this benefit is difficult to
quantify. The facilities do not have liens on all of Uber's assets.
Accordingly, S&P thinks some portion of the company's enterprise
value should be viewed as unencumbered.
-- S&P estimates 70% of the company's value is captured by the
collateral package. It assumes the remaining 30% would be shared
ratably between secured creditor deficiency claims and unsecured
noteholders.
Simulated default assumptions
-- Simulated year of default: 2022
-- EBITDA at emergence: $685 million
-- EBITDA multiple: 7x
-- Revolving credit facility: 85% drawn at default
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $4.5
billion
-- Valuation split (collateral/noncollateral): 70%/30%
-- Value available to first-lien debt claims
(collateral/noncollateral): $3.2 billion/$350 million
-- Secured first-lien debt claims: $4.6 billion
-- Recovery expectations: 70%-90% (rounded estimate: 75%)
-- Value available to unsecured lenders: $1 billion
-- Unsecured debt claims: $4.1 billion
-- Recovery expectations: 10%-30% (rounded estimate: 20%)
All debt amounts include six months of prepetition interest.
ULTRA RESOURCES: Moody's Cuts PDR to D-PD on Chapter 11 Filing
--------------------------------------------------------------
Moody's Investors Service downgraded Ultra Resources, Inc.'s
Probability of Default Rating to D-PD from Ca-PD. Ultra's other
ratings were affirmed, including its Ca Corporate Family Rating,
Caa2 rating on its senior secured bank credit facility and C
ratings on its second lien senior secured notes and senior
unsecured notes. The outlook remains negative. These actions follow
Ultra's May 14, 2020, voluntary filing of petitions for relief
under Chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the Southern District of Texas.
Downgrades:
Issuer: Ultra Resources, Inc.
Probability of Default Rating, Downgraded to D-PD from Ca-PD
Affirmations:
Issuer: Ultra Resources, Inc.
Corporate Family Rating, Affirmed Ca
Senior Secured Revolving Credit Facility, Affirmed Caa2 (LGD2)
Senior Secured Term Loan, Affirmed Caa2 (LGD2)
Senior Secured Notes, Affirmed C (LGD5)
Senior Unsecured Notes, Affirmed C (LGD6)
Outlook Actions:
Issuer: Ultra Resources, Inc.
Outlook, Remains Negative
RATINGS RATIONALE
The Chapter 11 bankruptcy filing has resulted in a downgrade of
Ultra's PDR to D-PD, reflecting Moody's view on potential
recoveries. Shortly following this rating action, Moody's will
withdraw all Ultra's ratings.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
Ultra Resources, Inc., headquartered in Englewood, Colorado, is a
wholly-owned subsidiary of Ultra Petroleum Corp. Ultra is an
independent exploration and production company engaged in US
natural gas and crude oil exploration, development, and production
in the Green River Basin of southwest Wyoming (Pinedale Anticline
and Jonah Field).
WALDEN PALMS: June 22 Plan & Disclosure Hearing Set
---------------------------------------------------
Debtor Walden Palms Condominium Association, Inc., filed with the
U.S. Bankruptcy Court for the Middle District of Florida, Orlando
Division, a Disclosure Statement and a Plan of Reorganization.
On April 30, 2020, Judge Karen S. Jennemann conditionally approved
the Disclosure Statement and established these dates and
deadlines:
* June 22, 2020, at 10:00 AM in Courtroom 6A, 6th Floor, George
C. Young Courthouse, 400 West Washington Street, Orlando, FL 32801
is the Combined Disclosure and Confirmation Hearing.
* Creditors and other parties in interest shall file with the
clerk their written acceptances or rejections of the plan (ballots)
no later than seven days before the date of the Confirmation
Hearing.
* Any party desiring to object to the disclosure statement or to
confirmation will file its objection no later than seven days
before the date of the Confirmation Hearing.
* In accordance with Local Bankruptcy Rule 3018−1, the Debtor
will file a ballot tabulation no later than four days before the
date of the Confirmation Hearing.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/ybbujobm from PacerMonitor at no charge.
About Walden Palms Condominium Association
Walden Palms Condominium Association, Inc., is a nonprofit property
management company in Orlando, Florida. Walden Palms Condominium
Association sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 18-07945) on Dec. 24, 2018. At the
time of the filing, the Debtor was estimated to have assets of $1
million to $10 million and liabilities of $10 million to $50
million. The case is assigned to Judge Cynthia C. Jackson.
The Debtor tapped Shapiro, Blasi, Wasserman & Hermann, P.A., as its
bankruptcy counsel; Arias Bosinger PLLC as general association
counsel; JD Law Firm, as collections & foreclosure counsel; and
Winderweedle, Haines, Ward & Woodman, P.A., as land use counsel.
WEST FLORIDA: June 11 Plan Confirmation Hearing Set
---------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, held a hearing to consider approval of the Disclosure
Statement filed by plan proponent Business Restructuring Solutions,
LLC, for West Florida − PPHomeHealth, LLC, a debtor affiliate of
Integrity Home Health Care, Inc.
On April 30, 2020, Catherine Peek McEwen conditionally approved the
Disclosure Statement and established the following dates and
deadlines:
* Any written objections to the Disclosure Statement shall be
filed with the Court and served on the Local Rule 1007−2 Parties
in Interest List no later than seven days prior to the date of the
hearing on confirmation.
* June 11, 2020, at 3:30 pm in Tampa, FL − Courtroom 8B, Sam
M. Gibbons United States Courthouse, 801 N. Florida Avenue is the
hearing on confirmation of the Plan, including timely filed
objections to confirmation, and objections to the Disclosure
Statement.
* Parties in interest shall submit to the Clerk's office their
written ballot accepting or rejecting the Plan no later than eight
(8) days before the date of the Confirmation Hearing.
* Objections to confirmation will be filed with the Court and
served on the Local Rule 1007−2 Parties in Interest List no later
than seven days before the date of the Confirmation Hearing.
A copy of the order dated April 30, 2020, is available at
https://tinyurl.com/ychnkyf8 from PacerMonitor at no charge.
About Integrity Home Health Care
Integrity Home Health Care, Inc., a provider of home health care
Services, and its affiliates sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 20-00014) on
Jan. 2, 2020. At the time of the filing, the Debtor had estimated
assets of less than $50,000 and liabilities of between $1 million
and $10 million. Judge Catherine Peek McEwen oversees the case.
The Debtors are represented by Jennis Law Firm.
XPERI HOLDING: S&P Assigns 'BB-' ICR on Debt Issuance
-----------------------------------------------------
S&P Global Ratings assigned its 'BB-' issuer credit rating to Xperi
Holding Corp. At the same time, S&P assigned its 'BB-' issue-level
rating, with a '3' recovery rating, on the company's proposed $1.1
billion term loan related to the merger between Xperi Corp. and
TiVo Corp.
S&P is simultaneously removing its 'BB-' issuer credit rating on
Xperi Corp. from CreditWatch, where it was placed with developing
implications on Dec. 12, 2019. Its ratings on the subsidiary (Xperi
Corp.) will be withdrawn once the deal closes.
The rating on Xperi Holding Corp. reflects S&P's view of the
company's volatile operating history, reliance on litigation to
generate revenues, and historically high customer concentration.
This is offset by the company's improved revenue and EBITDA scale
following the merger between Xperi and TiVo (projected annual
billings of greater than $1 billion), its track record of
successful integration of the DTS Inc. acquisition from 2016,
strong free cash flow generation (2019 operating cash flow of
greater than $280 million for the combined company), and Xperi's
history and commitment to use its cash flow toward debt repayment
(Xperi has paid down more than $250 million of its term loan issued
for the DTS acquisition). S&P also views the IP licensing billing
backlog at TiVo as a source of cash flow stability over the long
term. The combined company will continue to have a concentrated
customer base, with three to five customers each representing more
than 5% of billings.
S&P expects the TiVo-Xperi merger to improve scale, decrease
customer concentration, and dampen volatility from the
semiconductor IP licensing business. Xperi has attractive growth
opportunities driven by growth in 4k streaming, increased connected
radio penetration, adoption of its IP in in-cabin monitoring
systems and the launch of Perceive's AI chips (Perceive is a
subsidiary of Xperi Holding Corp.). Despite near-term weakness from
the COVID-19 pandemic affecting the entire semiconductor industry,
S&P expects Xperi to convert some of these opportunities and grow
its business over the next 24 months.
Xperi is currently in litigation for IP infringement against NVIDIA
Corp. and there's an ongoing IP infringement case between TiVo and
Comcast Corp. While S&P views long-drawn litigation to be negative
for the rating, Xperi has a good track record of winning patent
litigations related to its semiconductor IP patent portfolio. Over
the past three years, Xperi won lawsuits and reached patent
agreements with Samsung and Broadcom and has entered into a new IP
licensing agreement related to its Invensas DBI Ultra 3D
interconnect technology with SK Hynix Inc.
"Our assessment of Xperi's financial risk incorporates pro forma
S&P Global Ratings' adjusted gross leverage in the low-3x area in
2020 with annual free cash flow generation of about $200 million
for the pro forma company following deal close. Given Xperi's
adoption of ASC 606, we view free cash flow and billings as better
metrics for accessing financial risk at Xperi. We expect Xperi to
spend $20 million to $30 million in annual litigation expenses
while the Comcast and Nvidia cases are ongoing. We note that a
significant portion of Xperi's 2020 billings are highly probable
because they are under contract and based on deals that the two
companies have struck in the past," S&P said.
"Due to Xperi's unique IP licensing business model and history of
litigation, we view the company as more volatile than a typical
product-focused semiconductor business and account for it in our
view of its financial risk," the rating agency said.
The stable outlook on Xperi Holding Corp. reflects S&P's
expectation that the combined company will continue to generate
positive free cash flow of $200 million or better annually,
successfully integrate the Tivo acquisition and will be able to
re-sign its IP licensing customers to new contracts over the next
few years.
"We could lower the rating on Xperi if it is unable to integrate
the TiVo business and faces revenue declines, resulting in free
cash flow to debt below 15%," S&P said.
"Although unlikely over the near term, we could consider an upgrade
if the company maintains leverage of less than 2x and discretionary
cash flow to debt of more than 15% and there are no major contracts
expiring over the upcoming 12 months," the rating agency said.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
ABBVIE INC ABBV US 91,199.0 (7,415.0) 35,287.0
ABBVIE INC 4AB TE 91,199.0 (7,415.0) 35,287.0
ABBVIE INC ABBV AV 91,199.0 (7,415.0) 35,287.0
ABBVIE INC 4AB GZ 91,199.0 (7,415.0) 35,287.0
ABBVIE INC 4AB TH 91,199.0 (7,415.0) 35,287.0
ABBVIE INC ABBVEUR EU 91,199.0 (7,415.0) 35,287.0
ABBVIE INC 4AB QT 91,199.0 (7,415.0) 35,287.0
ABBVIE INC 4AB GR 91,199.0 (7,415.0) 35,287.0
ABBVIE INC ABBV SW 91,199.0 (7,415.0) 35,287.0
ABBVIE INC ABBV* MM 91,199.0 (7,415.0) 35,287.0
ABBVIE INC-BDR ABBV34 BZ 91,199.0 (7,415.0) 35,287.0
ABSOLUTE SOFTWRE ALSWF US 108.7 (44.7) (26.3)
ABSOLUTE SOFTWRE ABT CN 108.7 (44.7) (26.3)
ABSOLUTE SOFTWRE OU1 GR 108.7 (44.7) (26.3)
ABSOLUTE SOFTWRE ABT2EUR EU 108.7 (44.7) (26.3)
ACCELERATE DIAGN AXDX US 120.0 (22.9) 100.1
ACCELERATE DIAGN 1A8 GR 120.0 (22.9) 100.1
ACCELERATE DIAGN 1A8 SW 120.0 (22.9) 100.1
ACCELERATE DIAGN AXDX* MM 120.0 (22.9) 100.1
ADAPTHEALTH CORP AHCO US 661.8 (29.4) 3.4
AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2)
AMERICAN AIR-BDR AALL34 BZ 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL AV 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL TE 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G SW 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G GZ 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL11EUR EU 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G QT 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL US 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G GR 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE AAL* MM 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G TH 58,580.0 (2,636.0) (12,038.0)
AMYRIS INC AMRS US 167.3 (176.1) (107.3)
AMYRIS INC 3A01 GR 167.3 (176.1) (107.3)
AQUESTIVE THERAP AQST US 64.5 (20.8) 35.7
AUTODESK I - BDR A1UT34 BZ 6,179.3 (139.1) (559.9)
AUTODESK INC AUD GR 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK US 6,179.3 (139.1) (559.9)
AUTODESK INC AUD TH 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK AV 6,179.3 (139.1) (559.9)
AUTODESK INC ADSKEUR EU 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK TE 6,179.3 (139.1) (559.9)
AUTODESK INC AUD GZ 6,179.3 (139.1) (559.9)
AUTODESK INC ADSK* MM 6,179.3 (139.1) (559.9)
AUTODESK INC AUD QT 6,179.3 (139.1) (559.9)
AUTOZONE INC AZ5 TH 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 GR 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 GZ 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO US 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO AV 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 TE 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZO* MM 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZOEUR EU 12,863.7 (1,711.1) (479.0)
AUTOZONE INC AZ5 QT 12,863.7 (1,711.1) (479.0)
AVID TECHNOLOGY AVID US 308.4 (161.5) 11.8
AVID TECHNOLOGY AVD GR 308.4 (161.5) 11.8
BENEFITFOCUS INC BTF GR 313.6 (42.5) 102.0
BENEFITFOCUS INC BNFT US 313.6 (42.5) 102.0
BENEFITFOCUS INC BNFTEUR EU 313.6 (42.5) 102.0
BJ'S WHOLESALE C 8BJ GR 5,269.8 (54.3) (441.4)
BJ'S WHOLESALE C 8BJ TH 5,269.8 (54.3) (441.4)
BJ'S WHOLESALE C 8BJ QT 5,269.8 (54.3) (441.4)
BJ'S WHOLESALE C BJ US 5,269.8 (54.3) (441.4)
BLOOM ENERGY C-A BE US 1,312.6 (259.2) 177.2
BLOOM ENERGY C-A 1ZB GR 1,312.6 (259.2) 177.2
BLOOM ENERGY C-A BE1EUR EU 1,312.6 (259.2) 177.2
BLOOM ENERGY C-A 1ZB QT 1,312.6 (259.2) 177.2
BLOOM ENERGY C-A 1ZB TH 1,312.6 (259.2) 177.2
BLUE BIRD CORP 4RB GR 396.1 (65.1) 24.8
BLUE BIRD CORP 4RB GZ 396.1 (65.1) 24.8
BLUE BIRD CORP BLBDEUR EU 396.1 (65.1) 24.8
BLUE BIRD CORP BLBD US 396.1 (65.1) 24.8
BOEING CO-BDR BOEI34 BZ 143,075.0 (9,360.0) 16,509.0
BOEING CO-CED BA AR 143,075.0 (9,360.0) 16,509.0
BOEING CO-CED BAD AR 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO GR 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BAEUR EU 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA EU 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BOE LN 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BOEI BB 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA US 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO TH 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA SW 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA* MM 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA TE 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA AV 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BAUSD SW 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO GZ 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BCO QT 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA CI 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE TR TCXBOE AU 143,075.0 (9,360.0) 16,509.0
BOMBARDIER INC-B BBDBN MM 24,127.0 (5,365.0) (1,093.0)
BRAINSTORM CELL BCLI US 6.5 (12.2) (14.3)
BRAINSTORM CELL GHDN QT 6.5 (12.2) (14.3)
BRINKER INTL BKJ GR 2,585.4 (574.7) (204.7)
BRINKER INTL EAT US 2,585.4 (574.7) (204.7)
BRINKER INTL EAT2EUR EU 2,585.4 (574.7) (204.7)
BRINKER INTL BKJ QT 2,585.4 (574.7) (204.7)
BRP INC/CA-SUB V B15A GR 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOOO US 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V B15A GZ 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOOEUR EU 3,767.1 (589.7) (211.9)
BRP INC/CA-SUB V DOO CN 3,767.1 (589.7) (211.9)
CADIZ INC CDZI US 74.1 (19.7) 6.7
CADIZ INC CDZIEUR EU 74.1 (19.7) 6.7
CADIZ INC 2ZC GR 74.1 (19.7) 6.7
CAMPING WORLD-A CWH US 3,402.6 (184.4) 378.4
CAMPING WORLD-A C83 GR 3,402.6 (184.4) 378.4
CAMPING WORLD-A CWHEUR EU 3,402.6 (184.4) 378.4
CAMPING WORLD-A C83 TH 3,402.6 (184.4) 378.4
CAMPING WORLD-A C83 QT 3,402.6 (184.4) 378.4
CATASYS INC CATS US 22.9 (27.5) 4.4
CATASYS INC HY1N GR 22.9 (27.5) 4.4
CATASYS INC CATSEUR EU 22.9 (27.5) 4.4
CATASYS INC HY1N GZ 22.9 (27.5) 4.4
CDK GLOBAL INC C2G QT 2,964.8 (621.2) 315.2
CDK GLOBAL INC CDK* MM 2,964.8 (621.2) 315.2
CDK GLOBAL INC C2G TH 2,964.8 (621.2) 315.2
CDK GLOBAL INC CDKEUR EU 2,964.8 (621.2) 315.2
CDK GLOBAL INC C2G GR 2,964.8 (621.2) 315.2
CDK GLOBAL INC CDK US 2,964.8 (621.2) 315.2
CEDAR FAIR LP FUN US 2,389.5 (274.2) (84.9)
CEDAR FAIR LP FUN1EUR EU 2,389.5 (274.2) (84.9)
CHESAPEAKE E-BDR CHKE34 BZ 7,808.0 (3,924.0) (442.0)
CHESAPEAKE ENERG CHK* MM 7,808.0 (3,924.0) (442.0)
CHEWY INC- CL A CHWY US 932.3 (404.0) (470.7)
CHOICE HOTELS CZH GR 1,704.0 (43.9) 275.9
CHOICE HOTELS CHH US 1,704.0 (43.9) 275.9
CINCINNATI BELL CBB US 2,599.6 (188.7) (124.9)
CINCINNATI BELL CBBEUR EU 2,599.6 (188.7) (124.9)
CINCINNATI BELL CIB1 GR 2,599.6 (188.7) (124.9)
CITRIX SYS BDR C1TX34 BZ 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX TH 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS US 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX GR 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS* MM 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS AV 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS TE 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX GZ 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXSEUR EU 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX QT 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS SW 4,331.2 (218.9) (413.0)
CLOVIS ONCOLOGY C6O GR 601.8 (127.0) 179.1
CLOVIS ONCOLOGY CLVS US 601.8 (127.0) 179.1
CLOVIS ONCOLOGY C6O QT 601.8 (127.0) 179.1
CLOVIS ONCOLOGY C6O TH 601.8 (127.0) 179.1
CLOVIS ONCOLOGY CLVSEUR EU 601.8 (127.0) 179.1
COGENT COMMUNICA CCOI US 913.6 (222.2) 366.4
COGENT COMMUNICA OGM1 GR 913.6 (222.2) 366.4
COGENT COMMUNICA CCOIEUR EU 913.6 (222.2) 366.4
COGENT COMMUNICA CCOI* MM 913.6 (222.2) 366.4
CYTODYN INC CYDY US 38.8 (4.4) (16.4)
CYTOKINETICS INC CYTK US 256.6 (45.7) 205.2
CYTOKINETICS INC KK3A GR 256.6 (45.7) 205.2
CYTOKINETICS INC KK3A TH 256.6 (45.7) 205.2
CYTOKINETICS INC CYTKEUR EU 256.6 (45.7) 205.2
CYTOKINETICS INC KK3A QT 256.6 (45.7) 205.2
DELEK LOGISTICS DKL US 946.2 (44.4) (0.0)
DENNY'S CORP DENN US 484.1 (200.5) 5.5
DENNY'S CORP DENNEUR EU 484.1 (200.5) 5.5
DENNY'S CORP DE8 GR 484.1 (200.5) 5.5
DIEBOLD NIXDORF DBD SW 3,838.8 (710.6) 399.7
DIEBOLD NIXDORF DBD GR 3,838.8 (710.6) 399.7
DIEBOLD NIXDORF DBD US 3,838.8 (710.6) 399.7
DIEBOLD NIXDORF DBDEUR EU 3,838.8 (710.6) 399.7
DIEBOLD NIXDORF DLD TH 3,838.8 (710.6) 399.7
DIEBOLD NIXDORF DLD QT 3,838.8 (710.6) 399.7
DINE BRANDS GLOB IHP GR 2,185.5 (236.4) 209.4
DINE BRANDS GLOB DIN US 2,185.5 (236.4) 209.4
DOCEBO INC DCBO CN 20.3 (18.6) (12.9)
DOCEBO INC DCBOF US 20.3 (18.6) (12.9)
DOLLARAMA INC DOL CN 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 GR 3,716.5 (92.2) (328.0)
DOLLARAMA INC DLMAF US 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 GZ 3,716.5 (92.2) (328.0)
DOLLARAMA INC DOLEUR EU 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 TH 3,716.5 (92.2) (328.0)
DOLLARAMA INC DR3 QT 3,716.5 (92.2) (328.0)
DOMINO'S PIZZA DPZ US 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV TH 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV SW 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZEUR EU 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV GZ 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV GR 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZ AV 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZ* MM 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV QT 1,389.9 (3,392.2) 342.2
DOMO INC- CL B 1ON GR 216.7 (49.2) 18.2
DOMO INC- CL B 1ON GZ 216.7 (49.2) 18.2
DOMO INC- CL B DOMOEUR EU 216.7 (49.2) 18.2
DOMO INC- CL B 1ON TH 216.7 (49.2) 18.2
DOMO INC- CL B DOMO US 216.7 (49.2) 18.2
DUNKIN' BRANDS G DNKN US 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB GR 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB TH 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB QT 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G DNKNEUR EU 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB GZ 3,877.3 (636.3) 287.2
EMISPHERE TECH EMIS US 5.2 (155.3) (1.4)
ESPERION THERAPE ESPR US 179.6 (50.2) 99.2
ESPERION THERAPE 0ET TH 179.6 (50.2) 99.2
ESPERION THERAPE ESPREUR EU 179.6 (50.2) 99.2
ESPERION THERAPE 0ET QT 179.6 (50.2) 99.2
ESPERION THERAPE 0ET GR 179.6 (50.2) 99.2
FLEXION THERAPEU F02 TH 204.6 (52.3) 159.5
FLEXION THERAPEU FLXNEUR EU 204.6 (52.3) 159.5
FLEXION THERAPEU F02 QT 204.6 (52.3) 159.5
FLEXION THERAPEU FLXN US 204.6 (52.3) 159.5
FLEXION THERAPEU F02 GR 204.6 (52.3) 159.5
FRONTDOOR IN FTDR US 1,291.0 (178.0) 113.0
FRONTDOOR IN 3I5 GR 1,291.0 (178.0) 113.0
FRONTDOOR IN FTDREUR EU 1,291.0 (178.0) 113.0
GLOBALSCAPE INC GSB US 36.6 (32.7) (5.5)
GNC HOLDINGS INC GNC* MM 1,416.0 (191.0) (631.5)
GOLDEN STAR RES GSC CN 375.5 (30.9) (27.6)
GOOSEHEAD INSU-A 2OX GR 75.9 (30.0) 13.9
GOOSEHEAD INSU-A GSHDEUR EU 75.9 (30.0) 13.9
GOOSEHEAD INSU-A GSHD US 75.9 (30.0) 13.9
GRAFTECH INTERNA EAF US 1,534.2 (680.4) 483.6
GRAFTECH INTERNA G6G TH 1,534.2 (680.4) 483.6
GRAFTECH INTERNA G6G GR 1,534.2 (680.4) 483.6
GRAFTECH INTERNA EAFEUR EU 1,534.2 (680.4) 483.6
GRAFTECH INTERNA G6G QT 1,534.2 (680.4) 483.6
GRAFTECH INTERNA G6G GZ 1,534.2 (680.4) 483.6
GREENSKY INC-A GSKY US 938.4 (213.5) 248.0
H&R BLOCK INC HRB US 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB GR 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB TH 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRB QT 3,452.4 (318.4) (35.7)
H&R BLOCK INC HRBEUR EU 3,452.4 (318.4) (35.7)
HANGER INC HO8 GR 869.2 (16.0) 163.1
HANGER INC HNGR US 869.2 (16.0) 163.1
HANGER INC HNGREUR EU 869.2 (16.0) 163.1
HCA HEALTHC-BDR H1CA34 BZ 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH TH 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCA US 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH GR 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCA* MM 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCAEUR EU 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH TE 45,421.0 (703.0) 3,997.0
HERBALIFE NUTRIT HOO GR 2,715.3 (388.5) 587.3
HERBALIFE NUTRIT HLF US 2,715.3 (388.5) 587.3
HERBALIFE NUTRIT HOO TH 2,715.3 (388.5) 587.3
HERBALIFE NUTRIT HOO GZ 2,715.3 (388.5) 587.3
HERBALIFE NUTRIT HLFEUR EU 2,715.3 (388.5) 587.3
HERBALIFE NUTRIT HOO QT 2,715.3 (388.5) 587.3
HEWLETT-CEDEAR HPQ AR 31,656.0 (1,634.0) (6,390.0)
HEWLETT-CEDEAR HPQC AR 31,656.0 (1,634.0) (6,390.0)
HEWLETT-CEDEAR HPQD AR 31,656.0 (1,634.0) (6,390.0)
HILTON WORLD-BDR H1LT34 BZ 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HLT US 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HI91 SW 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HLT* MM 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HLTEUR EU 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HLTW AV 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HI91 TE 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HI91 TH 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HI91 GR 15,788.0 (904.0) 929.0
HOME DEPOT - BDR HOME34 BZ 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD TE 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD US 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI TH 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI GR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD* MM 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD AV 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDUSD SW 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI GZ 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC 0R1G LN 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDEUR EU 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HDI QT 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD CI 51,236.0 (3,116.0) 1,435.0
HOME DEPOT INC HD SW 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HDD AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HDC AR 51,236.0 (3,116.0) 1,435.0
HOME DEPOT-CED HD AR 51,236.0 (3,116.0) 1,435.0
HP INC HPQ US 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP TH 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP GR 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ TE 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ* MM 31,656.0 (1,634.0) (6,390.0)
HP INC HPQUSD SW 31,656.0 (1,634.0) (6,390.0)
HP INC 7HP GZ 31,656.0 (1,634.0) (6,390.0)
HP INC HPQEUR EU 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ AV 31,656.0 (1,634.0) (6,390.0)
HP INC HWP QT 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ CI 31,656.0 (1,634.0) (6,390.0)
HP INC HPQ SW 31,656.0 (1,634.0) (6,390.0)
IAA INC IAA US 2,215.5 (103.6) 256.2
IAA INC 3NI GR 2,215.5 (103.6) 256.2
IAA INC IAA-WEUR EU 2,215.5 (103.6) 256.2
IMMUNOGEN INC IMU GR 298.8 (4.1) 185.2
IMMUNOGEN INC IMGN US 298.8 (4.1) 185.2
IMMUNOGEN INC IMU TH 298.8 (4.1) 185.2
IMMUNOGEN INC IMGNEUR EU 298.8 (4.1) 185.2
IMMUNOGEN INC IMU GZ 298.8 (4.1) 185.2
IMMUNOGEN INC IMU QT 298.8 (4.1) 185.2
IMMUNOGEN INC IMGN* MM 298.8 (4.1) 185.2
INSPERITY INC NSP US 1,522.4 (3.3) 190.8
INSPERITY INC ASF GR 1,522.4 (3.3) 190.8
INTERCEPT PHARMA I4P QT 662.4 (34.7) 478.2
INTERCEPT PHARMA ICPT* MM 662.4 (34.7) 478.2
INTERCEPT PHARMA ICPT US 662.4 (34.7) 478.2
INTERCEPT PHARMA I4P GR 662.4 (34.7) 478.2
INTERCEPT PHARMA I4P TH 662.4 (34.7) 478.2
IRONWOOD PHARMAC I76 GR 404.0 (71.6) 306.3
IRONWOOD PHARMAC I76 TH 404.0 (71.6) 306.3
IRONWOOD PHARMAC IRWD US 404.0 (71.6) 306.3
IRONWOOD PHARMAC I76 QT 404.0 (71.6) 306.3
IRONWOOD PHARMAC IRWDEUR EU 404.0 (71.6) 306.3
JACK IN THE BOX JBX GR 1,861.3 (876.9) (79.8)
JACK IN THE BOX JACK US 1,861.3 (876.9) (79.8)
JACK IN THE BOX JBX GZ 1,861.3 (876.9) (79.8)
JACK IN THE BOX JBX QT 1,861.3 (876.9) (79.8)
JACK IN THE BOX JACK1EUR EU 1,861.3 (876.9) (79.8)
JOSEMARIA RESOUR JOSES I2 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSE SS 18.7 (16.4) (20.9)
JOSEMARIA RESOUR NGQSEK EU 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSES IX 18.7 (16.4) (20.9)
JOSEMARIA RESOUR JOSES EB 18.7 (16.4) (20.9)
KONTOOR BRAND KTB US 1,901.8 (18.5) 893.1
KONTOOR BRAND 3KO GR 1,901.8 (18.5) 893.1
KONTOOR BRAND 3KO TH 1,901.8 (18.5) 893.1
KONTOOR BRAND KTBEUR EU 1,901.8 (18.5) 893.1
KONTOOR BRAND 3KO QT 1,901.8 (18.5) 893.1
KONTOOR BRAND 3KO GZ 1,901.8 (18.5) 893.1
L BRANDS INC LTD TH 10,125.0 (1,495.0) 873.0
L BRANDS INC LTD GR 10,125.0 (1,495.0) 873.0
L BRANDS INC LB US 10,125.0 (1,495.0) 873.0
L BRANDS INC LTD SW 10,125.0 (1,495.0) 873.0
L BRANDS INC LTD QT 10,125.0 (1,495.0) 873.0
L BRANDS INC LBRA AV 10,125.0 (1,495.0) 873.0
L BRANDS INC LBEUR EU 10,125.0 (1,495.0) 873.0
L BRANDS INC LB* MM 10,125.0 (1,495.0) 873.0
L BRANDS INC-BDR LBRN34 BZ 10,125.0 (1,495.0) 873.0
LA JOLLA PHARM LJPC US 118.2 (61.7) 70.1
LA JOLLA PHARM LJPP TH 118.2 (61.7) 70.1
LA JOLLA PHARM LJPP QT 118.2 (61.7) 70.1
LA JOLLA PHARM LJPP GR 118.2 (61.7) 70.1
LENNOX INTL INC LXI GR 2,128.4 (318.3) 330.5
LENNOX INTL INC LII US 2,128.4 (318.3) 330.5
LENNOX INTL INC LII* MM 2,128.4 (318.3) 330.5
LENNOX INTL INC LXI TH 2,128.4 (318.3) 330.5
LENNOX INTL INC LII1EUR EU 2,128.4 (318.3) 330.5
LIVEXLIVE MEDIA LIVX US 55.0 (1.9) (21.9)
LIVEXLIVE MEDIA 351 GR 55.0 (1.9) (21.9)
LIVEXLIVE MEDIA LIVXEUR EU 55.0 (1.9) (21.9)
MARRIOTT - BDR M1TT34 BZ 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAQ TH 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAQ GR 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAR US 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAQ SW 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAR AV 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAR TE 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAREUR EU 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAQ GZ 25,549.0 (20.0) (2,467.0)
MARRIOTT INTL-A MAQ QT 25,549.0 (20.0) (2,467.0)
MASCO CORP MSQ TH 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ GZ 4,840.0 (165.0) 1,241.0
MASCO CORP MAS US 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ GR 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ QT 4,840.0 (165.0) 1,241.0
MASCO CORP MAS1EUR EU 4,840.0 (165.0) 1,241.0
MASCO CORP MAS* MM 4,840.0 (165.0) 1,241.0
MCDONALD'S CORP TCXMCD AU 50,568.0 (9,293.4) 3,569.1
MCDONALDS - BDR MCDC34 BZ 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MDO TH 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD US 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD SW 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MDO GR 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD* MM 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD TE 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD AV 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCDUSD SW 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MDO GZ 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCDEUR EU 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP 0R16 LN 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MDO QT 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCDUSD EU 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD CI 50,568.0 (9,293.4) 3,569.1
MCDONALDS-CEDEAR MCD AR 50,568.0 (9,293.4) 3,569.1
MCDONALDS-CEDEAR MCDC AR 50,568.0 (9,293.4) 3,569.1
MCDONALDS-CEDEAR MCDD AR 50,568.0 (9,293.4) 3,569.1
MERCER PARK BR-A MRCQF US 408.6 (2.8) 4.1
MERCER PARK BR-A BRND/A/U CN 408.6 (2.8) 4.1
MILESTONE MEDICA MMDPLN EU 0.6 (13.9) (13.9)
MILESTONE MEDICA MMD PW 0.6 (13.9) (13.9)
MOTOROLA SOL-BDR M1SI34 BZ 10,716.0 (930.0) 602.0
MOTOROLA SOL-CED MSI AR 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MTLA TH 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MOT TE 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MSI US 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MTLA GR 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MSI1EUR EU 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MTLA GZ 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MOSI AV 10,716.0 (930.0) 602.0
MOTOROLA SOLUTIO MTLA QT 10,716.0 (930.0) 602.0
MSCI INC 3HM GR 3,911.8 (354.3) 821.5
MSCI INC MSCI US 3,911.8 (354.3) 821.5
MSCI INC 3HM SW 3,911.8 (354.3) 821.5
MSCI INC 3HM GZ 3,911.8 (354.3) 821.5
MSCI INC 3HM QT 3,911.8 (354.3) 821.5
MSCI INC MSCI* MM 3,911.8 (354.3) 821.5
MSCI INC-BDR M1SC34 BZ 3,911.8 (354.3) 821.5
MSG NETWORKS- A MSGN US 797.6 (612.0) 210.8
MSG NETWORKS- A MSGNEUR EU 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 QT 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 TH 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 GR 797.6 (612.0) 210.8
N/A BJEUR EU 5,269.8 (54.3) (441.4)
NATHANS FAMOUS NATH US 104.9 (64.2) 77.8
NATHANS FAMOUS NFA GR 104.9 (64.2) 77.8
NATHANS FAMOUS NATHEUR EU 104.9 (64.2) 77.8
NAVISTAR INTL IHR TH 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL NAV US 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR GR 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL NAVEUR EU 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR QT 6,363.0 (3,739.0) 1,256.0
NAVISTAR INTL IHR GZ 6,363.0 (3,739.0) 1,256.0
NEW ENG RLTY-LP NEN US 294.7 (38.0) -
NOVAVAX INC NVV1 TH 328.1 (24.0) 236.3
NOVAVAX INC NVV1 GZ 328.1 (24.0) 236.3
NOVAVAX INC NVV1 GR 328.1 (24.0) 236.3
NOVAVAX INC NVAX US 328.1 (24.0) 236.3
NOVAVAX INC NVAXEUR EU 328.1 (24.0) 236.3
NUNZIA PHARMACEU NUNZ US 0.1 (3.2) (2.5)
NUTANIX INC - A 0NU SW 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU GZ 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU GR 1,863.3 (66.1) 467.0
NUTANIX INC - A NTNXEUR EU 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU TH 1,863.3 (66.1) 467.0
NUTANIX INC - A 0NU QT 1,863.3 (66.1) 467.0
NUTANIX INC - A NTNX US 1,863.3 (66.1) 467.0
OCULAR THERAPEUT 0OT GZ 72.9 (10.7) 44.0
OCULAR THERAPEUT 0OT TH 72.9 (10.7) 44.0
OCULAR THERAPEUT OCULEUR EU 72.9 (10.7) 44.0
OCULAR THERAPEUT 0OT GR 72.9 (10.7) 44.0
OCULAR THERAPEUT OCUL US 72.9 (10.7) 44.0
OMEROS CORP 3O8 GR 118.2 (131.9) 27.7
OMEROS CORP OMER US 118.2 (131.9) 27.7
OMEROS CORP 3O8 QT 118.2 (131.9) 27.7
OMEROS CORP OMEREUR EU 118.2 (131.9) 27.7
OMEROS CORP 3O8 TH 118.2 (131.9) 27.7
OTIS WORLDWI OTIS US 9,524.0 (4,189.0) 159.0
OTIS WORLDWI 4PG GR 9,524.0 (4,189.0) 159.0
OTIS WORLDWI 4PG GZ 9,524.0 (4,189.0) 159.0
OTIS WORLDWI OTISEUR EU 9,524.0 (4,189.0) 159.0
OTIS WORLDWI OTIS* MM 9,524.0 (4,189.0) 159.0
OTIS WORLDWI 4PG TH 9,524.0 (4,189.0) 159.0
OTIS WORLDWI 4PG QT 9,524.0 (4,189.0) 159.0
PAPA JOHN'S INTL PZZA US 718.3 (68.4) (30.5)
PAPA JOHN'S INTL PP1 GR 718.3 (68.4) (30.5)
PAPA JOHN'S INTL PP1 SW 718.3 (68.4) (30.5)
PAPA JOHN'S INTL PZZAEUR EU 718.3 (68.4) (30.5)
PAPA JOHN'S INTL PP1 GZ 718.3 (68.4) (30.5)
PARATEK PHARMACE N4CN TH 233.7 (55.2) 183.9
PARATEK PHARMACE PRTK US 233.7 (55.2) 183.9
PARATEK PHARMACE N4CN GR 233.7 (55.2) 183.9
PHILIP MORRI-BDR PHMO34 BZ 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMI SW 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1EUR EU 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 GR 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM US 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1CHF EU 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 TH 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1 TE 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMIZ EB 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMIZ IX 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 0M8V LN 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMOR AV 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 GZ 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM* MM 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 QT 37,494.0 (11,063.0) 277.0
PLANET FITNESS-A 3PL QT 1,875.6 (692.2) 484.3
PLANET FITNESS-A PLNT1EUR EU 1,875.6 (692.2) 484.3
PLANET FITNESS-A PLNT US 1,875.6 (692.2) 484.3
PLANET FITNESS-A 3PL TH 1,875.6 (692.2) 484.3
PLANET FITNESS-A 3PL GR 1,875.6 (692.2) 484.3
PPD INC PPD US 5,814.8 (1,047.2) 212.3
RADIUS HEALTH IN RDUS US 201.6 (74.2) 124.6
RADIUS HEALTH IN 1R8 SW 201.6 (74.2) 124.6
RADIUS HEALTH IN 1R8 TH 201.6 (74.2) 124.6
RADIUS HEALTH IN 1R8 QT 201.6 (74.2) 124.6
RADIUS HEALTH IN RDUSEUR EU 201.6 (74.2) 124.6
RADIUS HEALTH IN 1R8 GR 201.6 (74.2) 124.6
REC SILICON ASA REC SS 280.6 (9.8) (2.7)
REC SILICON ASA RECO PO 280.6 (9.8) (2.7)
REC SILICON ASA RECO I2 280.6 (9.8) (2.7)
REC SILICON ASA RECO S2 280.6 (9.8) (2.7)
REVLON INC-A RVL1 GR 2,779.6 (1,435.8) (447.5)
REVLON INC-A REV US 2,779.6 (1,435.8) (447.5)
REVLON INC-A RVL1 TH 2,779.6 (1,435.8) (447.5)
REVLON INC-A REVEUR EU 2,779.6 (1,435.8) (447.5)
REVLON INC-A REV* MM 2,779.6 (1,435.8) (447.5)
RIMINI STREET IN RMNI US 201.3 (91.6) (89.0)
ROSETTA STONE IN RST US 182.6 (19.0) (70.2)
ROSETTA STONE IN RS8 TH 182.6 (19.0) (70.2)
ROSETTA STONE IN RS8 GR 182.6 (19.0) (70.2)
ROSETTA STONE IN RST1EUR EU 182.6 (19.0) (70.2)
SALLY BEAUTY HOL SBH US 2,921.2 (53.2) 533.2
SALLY BEAUTY HOL SBHEUR EU 2,921.2 (53.2) 533.2
SALLY BEAUTY HOL S7V GR 2,921.2 (53.2) 533.2
SBA COMM CORP 4SB GR 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBAC US 9,359.5 (4,302.8) (624.5)
SBA COMM CORP 4SB GZ 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBAC* MM 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBACEUR EU 9,359.5 (4,302.8) (624.5)
SBA COMM CORP 4SB QT 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBJ TH 9,359.5 (4,302.8) (624.5)
SCIENTIFIC GAMES TJW GZ 7,458.0 (2,358.0) 761.0
SCIENTIFIC GAMES SGMS US 7,458.0 (2,358.0) 761.0
SCIENTIFIC GAMES TJW GR 7,458.0 (2,358.0) 761.0
SCIENTIFIC GAMES TJW TH 7,458.0 (2,358.0) 761.0
SEALED AIR CORP SEE US 5,671.0 (181.9) 192.4
SEALED AIR CORP SDA GR 5,671.0 (181.9) 192.4
SEALED AIR CORP SEE1EUR EU 5,671.0 (181.9) 192.4
SEALED AIR CORP SDA TH 5,671.0 (181.9) 192.4
SEALED AIR CORP SDA QT 5,671.0 (181.9) 192.4
SELECTA BIOSCIEN SELB US 88.8 (8.8) 44.4
SELECTA BIOSCIEN SELBEUR EU 88.8 (8.8) 44.4
SERES THERAPEUTI MCRB1EUR EU 110.6 (61.6) 36.4
SERES THERAPEUTI MCRB US 110.6 (61.6) 36.4
SERES THERAPEUTI 1S9 GR 110.6 (61.6) 36.4
SHELL MIDSTREAM SHLX US 1,988.0 (774.0) 311.0
SIRIUS XM HO-BDR SRXM34 BZ 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO GR 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO TH 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN SIRI US 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN SIRI AV 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN SIRIEUR EU 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO GZ 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO QT 10,935.0 (747.0) (2,219.0)
SIX FLAGS ENTERT 6FE GR 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT SIXEUR EU 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT 6FE QT 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT SIX US 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT 6FE TH 2,720.5 (323.6) (168.7)
SLEEP NUMBER COR SNBR US 1,013.8 (155.9) (422.3)
SLEEP NUMBER COR SL2 GR 1,013.8 (155.9) (422.3)
SLEEP NUMBER COR SNBREUR EU 1,013.8 (155.9) (422.3)
SOCIAL CAPITAL IPOC/U US - - -
STARBUCKS CORP SRB TH 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX* MM 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB GR 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX AV 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX TE 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUXEUR EU 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX IM 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP TCXSBU AU 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUXUSD SW 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB GZ 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX US 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP 0QZH LI 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX PE 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX SW 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB QT 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX CI 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-BDR SBUB34 BZ 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-CEDEAR SBUX AR 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-CEDEAR SBUXD AR 27,478.9 (7,532.9) (2,515.9)
TAILORED BRANDS TLRD* MM 2,419.0 (98.3) 206.4
TAUBMAN CENTERS TCO US 4,727.0 (241.7) -
TAUBMAN CENTERS TU8 GR 4,727.0 (241.7) -
TAUBMAN CENTERS TCO2EUR EU 4,727.0 (241.7) -
TG THERAPEUTICS TGTX US 101.8 (1.4) 24.9
TG THERAPEUTICS NKB2 GR 101.8 (1.4) 24.9
TG THERAPEUTICS NKB2 TH 101.8 (1.4) 24.9
TG THERAPEUTICS NKB2 QT 101.8 (1.4) 24.9
TRANSDIGM - BDR T1DG34 BZ 16,635.0 (4,205.0) 3,544.0
TRANSDIGM GROUP TDG US 16,635.0 (4,205.0) 3,544.0
TRANSDIGM GROUP T7D GR 16,635.0 (4,205.0) 3,544.0
TRANSDIGM GROUP TDG* MM 16,635.0 (4,205.0) 3,544.0
TRANSDIGM GROUP T7D TH 16,635.0 (4,205.0) 3,544.0
TRANSDIGM GROUP T7D QT 16,635.0 (4,205.0) 3,544.0
TRANSDIGM GROUP TDGEUR EU 16,635.0 (4,205.0) 3,544.0
TRILLIUM THERAPE TRIL CN 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP GR 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP TH 33.0 (0.2) 12.7
TRILLIUM THERAPE R5WP GZ 33.0 (0.2) 12.7
TRILLIUM THERAPE TRIL US 33.0 (0.2) 12.7
TRILLIUM THERAPE TREUR EU 33.0 (0.2) 12.7
TRIUMPH GROUP TGI US 2,625.4 (532.9) 212.9
TRIUMPH GROUP TG7 GR 2,625.4 (532.9) 212.9
TRIUMPH GROUP TGIEUR EU 2,625.4 (532.9) 212.9
UBIQUITI INC 3UB GR 620.6 (356.0) 305.0
UBIQUITI INC UI US 620.6 (356.0) 305.0
UBIQUITI INC 3UB GZ 620.6 (356.0) 305.0
UBIQUITI INC UBNTEUR EU 620.6 (356.0) 305.0
UNISYS CORP UISEUR EU 2,971.6 (209.4) 572.4
UNISYS CORP UISCHF EU 2,971.6 (209.4) 572.4
UNISYS CORP USY1 GR 2,971.6 (209.4) 572.4
UNISYS CORP USY1 TH 2,971.6 (209.4) 572.4
UNISYS CORP UIS US 2,971.6 (209.4) 572.4
UNISYS CORP UIS1 SW 2,971.6 (209.4) 572.4
UNISYS CORP USY1 QT 2,971.6 (209.4) 572.4
UNISYS CORP USY1 GZ 2,971.6 (209.4) 572.4
UNITI GROUP INC 8XC GR 5,014.1 (1,595.5) -
UNITI GROUP INC 8XC TH 5,014.1 (1,595.5) -
UNITI GROUP INC UNIT US 5,014.1 (1,595.5) -
VALVOLINE INC 0V4 TH 2,917.0 (237.0) 983.0
VALVOLINE INC VVVEUR EU 2,917.0 (237.0) 983.0
VALVOLINE INC 0V4 GR 2,917.0 (237.0) 983.0
VALVOLINE INC 0V4 QT 2,917.0 (237.0) 983.0
VALVOLINE INC VVV US 2,917.0 (237.0) 983.0
VECTOR GROUP LTD VGR GR 1,494.8 (719.0) 238.5
VECTOR GROUP LTD VGR US 1,494.8 (719.0) 238.5
VECTOR GROUP LTD VGREUR EU 1,494.8 (719.0) 238.5
VECTOR GROUP LTD VGR TH 1,494.8 (719.0) 238.5
VECTOR GROUP LTD VGR QT 1,494.8 (719.0) 238.5
VERISIGN INC VRS TH 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSN US 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS GR 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSN* MM 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS GZ 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSNEUR EU 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS QT 1,753.9 (1,409.1) 229.8
VERISIGN-CEDEAR VRSN AR 1,753.9 (1,409.1) 229.8
VIVINT SMART HOM VVNT US 2,670.4 (1,439.3) (275.6)
VTV THERAPEUTI-A 5VT TH 7.4 (9.6) (8.5)
WATERS CORP WAZ TH 2,666.5 (338.0) 776.7
WATERS CORP WAZ GR 2,666.5 (338.0) 776.7
WATERS CORP WAT US 2,666.5 (338.0) 776.7
WATERS CORP WAT* MM 2,666.5 (338.0) 776.7
WATERS CORP WAZ QT 2,666.5 (338.0) 776.7
WATERS CORP WATEUR EU 2,666.5 (338.0) 776.7
WATERS CORP-BDR WATC34 BZ 2,666.5 (338.0) 776.7
WAYFAIR INC- A W US 2,751.4 (1,171.4) (215.7)
WAYFAIR INC- A 1WF QT 2,751.4 (1,171.4) (215.7)
WAYFAIR INC- A 1WF GZ 2,751.4 (1,171.4) (215.7)
WAYFAIR INC- A 1WF GR 2,751.4 (1,171.4) (215.7)
WAYFAIR INC- A 1WF TH 2,751.4 (1,171.4) (215.7)
WAYFAIR INC- A WEUR EU 2,751.4 (1,171.4) (215.7)
WESTERN UNION W3U GR 8,365.4 (149.7) (435.3)
WESTERN UNION W3U TH 8,365.4 (149.7) (435.3)
WESTERN UNION WU* MM 8,365.4 (149.7) (435.3)
WESTERN UNION WUEUR EU 8,365.4 (149.7) (435.3)
WESTERN UNION W3U GZ 8,365.4 (149.7) (435.3)
WESTERN UNION WU US 8,365.4 (149.7) (435.3)
WESTERN UNION W3U QT 8,365.4 (149.7) (435.3)
WIDEOPENWEST INC WU5 TH 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WU5 GR 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WOW1EUR EU 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WU5 QT 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WOW US 2,494.7 (246.8) (90.6)
WINGSTOP INC WING1EUR EU 188.5 (202.9) 7.6
WINGSTOP INC WING US 188.5 (202.9) 7.6
WINGSTOP INC EWG GR 188.5 (202.9) 7.6
WINMARK CORP WINA US 59.9 (29.8) 29.9
WINMARK CORP GBZ GR 59.9 (29.8) 29.9
WW INTERNATIONAL WW US 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 GR 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 SW 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 GZ 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WTW AV 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WTWEUR EU 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 QT 1,633.7 (700.8) (127.6)
WW INTERNATIONAL WW6 TH 1,633.7 (700.8) (127.6)
WYNDHAM DESTINAT WD5 GR 7,776.0 (891.0) 4,030.0
WYNDHAM DESTINAT WD5 TH 7,776.0 (891.0) 4,030.0
WYNDHAM DESTINAT WD5 SW 7,776.0 (891.0) 4,030.0
WYNDHAM DESTINAT WYND US 7,776.0 (891.0) 4,030.0
WYNDHAM DESTINAT WD5 QT 7,776.0 (891.0) 4,030.0
WYNDHAM DESTINAT WYNEUR EU 7,776.0 (891.0) 4,030.0
YUM! BRANDS -BDR YUMR34 BZ 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR TH 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR GR 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM* MM 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUMUSD SW 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR GZ 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM US 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM AV 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR TE 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUMEUR EU 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC TGR QT 6,085.0 (8,229.0) 491.0
YUM! BRANDS INC YUM SW 6,085.0 (8,229.0) 491.0
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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*** End of Transmission ***