/raid1/www/Hosts/bankrupt/TCR_Public/200630.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, June 30, 2020, Vol. 24, No. 181
Headlines
203 WYCKOFF: Taps Terenzi & Confusione as Legal Counsel
AERIAL ROBOTICS: Taps MTA Consulting as Accountant
AG PARENT: S&P Assigns 'B-' Issuer Credit Rating; Outlook Stable
AIKIDO PHARMA: Shareholders Sell 1.5 Shares to Investment Fund
ARUBA INVESTMENTS: S&P Rates New $498MM Term Loan 'B'
AUTOKINITON US: Moody's Confirms B2 CFR, Outlook Negative
AVID BIOSERVICES: Names Nicholas Green as President and CEO
AVINGER INC: Prices $5.4-Mil. Public Offering of Common Stock
BK TECHNOLOGIES: Unsecureds be Paid 'Extent of Available Assets'
BLANCO RIVERWALK: Unsecureds Will be Paid in Full
BRONX CITY SERVICE: Seeks Approval to Hire Bankruptcy Attorney
C ROBERTSON: Court Enters Plan Confirmation Order
CAMERON MUTUAL: A.M. Best Cuts Finc'l. Strength Rating to B(Fair)
CARPENTER'S ROOFING: June 30 Hearing on Disclosure Statement
CARROLS RESTAURANT: S&P Upgrades ICR to 'B-' on Debt Issuance
CASA DE LAS INVESTMENTS: Taps Michael Jay Berger as Legal Counsel
CAST & CREW: S&P Affirms 'B-' ICR; Outlook Negative
CEC ENTERTAINMENT: Moody's Cuts PDR to D-PD on Chapter 11 Filing
CECCHI GORI: Seeks to Hire Brutzkus Gubner as Litigation Counsel
CELLA III: Court Approves Disclosure Statement
CENTURY CASINOS: S&P Retains 'B-' ICR on CreditWatch Negative
CENTURY III MALL: Plan Supplement Provides for Changes to Plan
CESAR CHAVEZ SCHOOLS: S&P Affirms 'B-' Rating on 2011 Revenue Bonds
CHESAPEAKE ENERGY: Case Summary & 50 Largest Unsecured Creditors
CHESTER J. MARINE: Taps Robert L. Marrero as Legal Counsel
CITRUS GROVE: S&P Lowers 2014A, 2014A-T Bond Ratings to 'BB+'
COSTAR GROUP: S&P Assigns 'BB+' Long-Term ICR; Outlook Stable
CPG INTERNATIONAL: S&P Upgrades ICR to 'B+' on IPO; Outlook Stable
CROCKETT COGENERATION: S&P Raises Note Rating to 'B+'
CROSBY US: Moody's Alters Outlook on B3 CFR to Negative
DARIOHEALTH CORP: Cumulative Losses Cast Going Concern Doubt
DELMAR PHARMACEUTICALS: Stockholders Pass All Proposals at Meeting
DESERT VALLEY STEAM: Unsecureds be Paid From DVSCC’s Cash Flow
DIAMOND PERFECTION: Funds Available for Unsecureds at $138K
DIAMOND SPORTS: S&P Lowers Senior Unsecured Debt Rating to 'B'
ELDORADO GOLD: Fitch Assigns 'B' IDR, Outlook Stable
ELITE INVESTMENT: Trustee Taps Steven Skarphol as Real Estate Agent
ELITE PHARMACEUTICALS: Hikes Authorized Common Stock to 1.4B Shares
FATSPI & SON: Court Conditionally Approves Disclosure Statement
FLOYD'S INSURANCE: Trustee Taps Thompson Price as Accountant
FLOYD'S INSURANCE: Trustee Taps Williams Overman as Accountant
FOLSOM FARMS: July 1 Hearing on Disclosure Statement
FTS INTERNATIONAL: Bryan Lemmerman Quits as Director
GENERAL CANNABIS: Executive Chairman Quits Citing Interference
GIGA-TRONICS INC: Amends Severance Agreements with Top Executives
GOODNO'S JEWELRY: Court Conditionally Approves Disclosure Statement
HELPING OTHERS: Case Summary & 12 Unsecured Creditors
HOLOGENIX LLC: Hires Dermer Behrendt as Special Corporate Counsel
HORIZON GLOBAL: Stockholders Pass All Proposals at Annual Meeting
HOUSTON AMERICAN: Adjourns Virtual Annual Meeting to July 17
HUNT COMPANIES: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
ILPEA PARENT: S&P Affirms 'B' ICR; Ratings Off Watch Negative
INTELSAT ENVISION: Hires Katten Muchin as Counsel
IXS HOLDINGS: Moody's Confirms B2 CFR, Outlook Negative
JO-ANN STORES: Moody's Cuts CFR to Caa1 & Alters Outlook to Stable
KAREN DORIS: Seeks to Hire Keery McCue as Counsel
LAST FRONTIER: Unsecureds Get $50 Per Month Until Paid in Full
LEXARIA BIOSCIENCE: Shareholders Pass All Proposals at Meeting
LEXMARK INT'L: Fitch Affirms Then Withdraws 'B-' IDR
LILIS ENERGY: Case Summary & 50 Largest Unsecured Creditors
MAIN CONSTRUCTION: Taps Davis Miles as Legal Counsel
METRO BURGH: Unsecured Creditors to Recover 100% by November
MINERALS TECHNOLOGIES: S&P Rates $400MM Senior Unsecured Notes BB-
MITCHELL INT'L: Moody's Rates New $675MM Term Loan Add-On 'B2'
MOORE & MOORE: Seeks to Hire John R. Williams as Accountant
MYADERM INC: Case Summary & 20 Largest Unsecured Creditors
NATES AUTO REPAIR: Taps DiBartolomeo McBee as Accountant
NATIONS INSURANCE: A.M. Best Affirms B(Fair) Fin. Strength Rating
NAVIENT CORP: Moody's Alters Outlook on Ba3 CFR to Negative
NEW CITIES: Court Tentatively Approves Disclosure Statement
NEW ORLEANS ARCHDIOCESE: Fitch Cuts $40.1MM 2017 Bonds to 'D'
NORTHERN OIL: Plans Reverse Stock Split & Authorized Share Cut
NUZEE INC: To Raise $5.3 Million from Common Stock Offering
OLEUM EXPLORATION: Saber Objects to Disclosure Statement
ONEX TSG: Moody's Alters Outlook on B2 CFR to Negative
ORIGINCLEAR INC: $28,721 Promissory Notes Converted Into Equity
OUTDOOR BY DESIGN: Taps Benjamin Martin as Legal Counsel
PANOCHE ENERGY: S&P Raises Project Issue Rating to 'BB-'
PERFORMANCE FOOD: S&P Affirms B+ ICR; Outlook Negative
QUANTUM CORP: Lowers Net Loss to $5.21 Million in Fiscal 2020
ROCK POND: July 1 Hearing on Disclosure Statement
SCOUTCAM INC: Kesselman & Kesselman Raises Going Concern Doubt
SERTA SIMMONS: S&P Lowers ICR to 'SD' on Distressed Debt Exchange
SIGNATURE CONSTRUCTION: Hires Richard P. Cook as Attorney
SINTX TECHNOLOGIES: Prices $5.6-Mil. Registered Direct Offering
SPECTRUM BRAND: Moody's Rates New Revolver Credit Facility 'Ba1'
SPECTRUM BRANDS: Fitch Rates New $300MM Unsecured Notes 'BB/RR4'
ST. PETER UNIVERSITY: Moody's Affirms Ba1 on $134MM Bonds
STANDARD LIFE: A.M. Best Reviews B(Fair) Financial Strength Rating
SUMMIT MIDSTREAM: S&P Cuts ICR to SD on Distressed Debt Repurchase
SUPERIOR INDUSTRIES: Moody's Confirms B2 CFR, Outlook Negative
SURGICAL SPECIALISTS: Case Summary & 20 Top Unsecured Creditors
TERRIER MEDIA: S&P Rates $150MM Term Loan Add-On 'B+'
TUPPERWARE BRANDS: Retires $97.4 Million of 4.750% Senior Notes
VISTA PROPPANTS: Taps Kurtzman Carson as Claims Agent
WEATHERFORD INT'L: Discloses Substantial Going Concern Doubt
WEST PACE: Seeks to Hire Capital Real Estate as Appraiser
WIDEOPENWEST FINANCE: Moody's Affirms B2 CFR, Outlook Stable
WINDWARD LONG: Taps Hasbani & Light as Legal Counsel
[^] Large Companies with Insolvent Balance Sheet
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203 WYCKOFF: Taps Terenzi & Confusione as Legal Counsel
-------------------------------------------------------
203 Wyckoff Holdings, LLC, received approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire
Terenzi & Confusione, P.C. as its legal counsel.
The firm's services will include assisting Debtor in the
preparation of a Chapter 11 plan and investigating its past
transactions.
The firm's attorneys and paralegals will be paid at hourly rates as
follows:
Ronald Terenzi $510
Cara Glodstein $390
Alexander Terenzi $285
Paralegals $150
Terenzi & Confusione received a $20,000 retainer, plus $1,717 for
the filing fee.
Ronald Terenzi, Esq., at Terenzi & Confusione, 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:
Ronald M. Terenzi, Esq.
Terenzi & Confusione, P.C.
401 Franklin Avenue, Suite 300
Garden City, NY 11530
Tel: 516-812-4502
Email: rterenzi@tcpclaw.com
About 203 Wyckoff Holdings
203 Wyckoff Holdings, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)).
203 Wyckoff Holdings sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 20-40766) on Feb. 5,
2020. At the time of the filing, Debtor had estimated assets of
between $500,000 and $1 million and liabilities of between $1
million and $10 million. Judge Carla E. Craig oversees the case.
The Debtor has tapped Terenzi & Confusione, P.C., as its legal
counsel.
AERIAL ROBOTICS: Taps MTA Consulting as Accountant
--------------------------------------------------
Aerial Robotics, Inc., seeks approval from the U.S. Bankruptcy
Court for the District of Utah to hire MTA Consulting, LLC, as its
accountant.
The firm's services will include the filing of tax returns and
overseeing and handling tax issues.
M. Tanner Adams, the firm's accountant who will be providing the
services, will charge $300 per hour.
Mr. Adams disclosed in court filings that he and his firm haven't
had an interest materially adverse to the interest of Debtor's
bankruptcy estate, creditors and equity security holders.
The firm can be reached through:
M. Tanner Adams
MTA Consulting, LLC
9121 Monroe Plaza Way, Suite C
Sandy, UT 84070
Tel: (801) 676-9778
Fax: (801)-795-4955
E-mail: info@mtaconsulting.net
About Aerial Robotics
Aerial Robotics, Inc. filed its voluntary petition under Chapter 11
of the Bankruptcy Code (Bankr. D. Utah Case No. 20-21313) on March
4, 2020. At the time of the filing, the Debtor was estimated to
have $100,000 to $500,000 in assets and $1 million to $10 million
in liabilities. Andres Diaz, Esq., at Diaz & Larsen, is the
Debtor's legal counsel.
AG PARENT: S&P Assigns 'B-' Issuer Credit Rating; Outlook Stable
----------------------------------------------------------------
S&P Global Ratings assigned a 'B-' rating on AG Parent Holdings
LLC, the parent company of ArisGlobal Holdings LLC (B-/Stable/--).
"Our 'B-' rating reflects AG Parent's high leverage and our
expectation of an aggressive financial policy under financial
sponsor ownership. We expect adjusted leverage above 8x for 2020,
and for leverage to remain above 7x in 2021. We expect the ratio of
funds from operations to debt to remain at or below 6% for the next
two years. We expect the company to generate less than $10 million
of free cash flow in the next two years. We also expect the company
to be acquisitive, and prioritize shareholder returns ahead of
significant deleveraging," S&P said.
S&P's assessment of the company's business risk reflects the
company's relatively small scale (about $100 million of revenue in
2019); the presence of competitors of much greater size and
financial resources, its narrow focus of providing drug safety
reporting services to pharmaceutical companies and regulators."
These factors are partially offset by the company's above-average
EBITDA margin, supported by premium software products.
The company has substantial concentration, with about 80% of
revenue relating to the software platform facilitating drug safety
reporting to regulators. The company competes with larger players
who have substantially more financial resources such as Oracle
Corp., IQVIA Inc., and Medidata (not rated), etc. Oracle has an
offering that competes directly with the company's safety-reporting
platform and at a lower price point. Oracle is the market leader
with about 70% market share, though S&P believes AG Parent has been
gaining market share in recent years, and that the relatively small
market size limits the investment appetite among existing and
potential competitors.
These considerations are partially offset by the unique
technological capabilities in ArisGlobal's platform not currently
offered by competitors, which is helping ArisGlobal take market
share from its larger competitors, and supporting healthy
profitability with EBITDA margins of about 30%. More specifically,
ArisGlobal's platform offers cloud-based technology (limiting
customers in house cost to maintain infrastructure), with unique
automation tools, such as optical character recognition (OCR),
handwriting recognition, and natural language processing, that
allow for partial automation (and labor savings) in transferring
safety report data (adverse event reports) from doctors, into the
forms and formats required by regulators across the world. Some of
these advantages (e.g., cloud-based technology) have led some major
regulators, such as the U.S. FDA to transition to shift to
ArisGlobal's platform (albeit compatible with reports submitted by
competing systems).
The company benefits from the predictable recurring revenues with
pharmacovigilance required by all regulatory authorities. The
company's revenues are recurring with the SaaS (software as a
service, i.e., annual fees for all-in-service and support) business
model, supported by annual customer-retention rates exceeding 90%.
The company has a diverse client base comprising 40 out of the top
50 pharma companies as well as nine regulatory bodies, including
the FDA. The average tenure of its top 25 customers is 13 years,
which provides high visibility to future revenues. The company is
relatively diversified from a customer and geographic standpoint.
The top three customers represented around 26% of revenue in 2019.
Currently about 60% of revenue comes from the U.S.; the company
expects Japan and Europe will represent a bigger share of total
revenue in the next few years with new contract wins. Moreover, the
company charges extra for setup/transitioning customers from a
competitors system, and some of the company's contracts include
extra fees based on greater-than-expected utilization levels, which
more than offset incremental expenses associated with those
occurrences.
The company's product offering--cloud based end-to-end SaaS
platform--is highly automated and can be built to address
individual customer's needs. The platform saves customers other
costs by eliminating hardware maintenance cost compared to
on-premise based offering of some competitors, and facilitates
easier integration with other databases. Furthermore, there is
customer stickiness because it is burdensome to switch to another
service provider.
"Our stable rating outlook reflects our view that the company
benefits from stable demand for pharmacovigilance services by
pharmaceutical companies and regulatory authorities. Although we
expect revenue softness in 2020 as a result of COVID-19, we expect
revenue growth to return to normal and grow at mid-teens percent in
2021, assuming the pandemic eases. It also reflects our expectation
that its EBITDA margin will remain around 30% because of the
rationalization of research and development costs and the company's
planned increase in utilization of offshore resources," S&P said.
S&P could consider a lower rating if business deteriorates, leading
to persistent free cash flow deficits. This could result from
intensified competition, an unexpected loss of clients, operational
challenges that undermine the company's reputation, and/or changes
to regulatory requirements that simplify the requirements around
safety reporting (e.g., international harmonization of data
requirements).
"Although unlikely over the next 12 months given sponsor ownership
and our expectation that the company will direct excess cash flows
for acquisitions or shareholder dividends, we could consider an
upgrade if the company establishes a record of consistent annual
free cash flow generation in excess of $10 million. This could
result over time from revenue growth and/or improved operating
efficiency," S&P said.
AIKIDO PHARMA: Shareholders Sell 1.5 Shares to Investment Fund
--------------------------------------------------------------
Certain owners of 1,512,465 shares of common stock, par value
$0.001, of AIkido Pharma Inc. sold the Shares to a
healthcare-dedicated investment fund, pursuant to that certain
Stock Purchase Agreement, by and among the Fund and the Sellers.
The Shares sold in the Sale were subject to restrictions pursuant
to that certain Leak-Out Agreement, dated as of Dec. 5, 2019, by
and between the Company and CBM BioPharma, Inc., a Delaware
corporation. The Restrictions were lifted pursuant to that certain
Termination Agreement, dated as of June 24, 2020, by and between
the Company and the Fund.
About AIkido
AIkido fka Spherix Incorporated was initially formed in 1967 and is
a biotechnology company with a diverse portfolio of small-molecule
anti-cancer therapeutics. The Company's platform consists of
patented technology from leading universities and researchers and
it is currently in the process of developing an innovative
therapeutic drug platform through strong partnerships with world
renowned educational institutions, including The University of
Texas at Austin and Wake Forest University. The Company's diverse
pipeline of therapeutics includes therapies for pancreatic cancer,
acute myeloid leukemia (AML) and acute lymphoblastic leukemia
(ALL). In addition, the Company is constantly seeking to grow its
pipeline to treat unmet medical needs in oncology.
Spherix Incorporated reported a net loss of $4.18 million for the
year ended Dec. 31, 2019, compared to net income of $1.73 million
for the year ended Dec. 31, 2018. As of March 31, 2020, the
Company had $21.59 million in total assets, $615,000 in total
liabilities, and $20.97 million in total stockholders' equity.
Marcum LLP, in New York, NY, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated Jan. 31,
2020 citing that the Company has historically incurred losses from
operations and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
ARUBA INVESTMENTS: S&P Rates New $498MM Term Loan 'B'
-----------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to Aruba
Investments Inc.'s (doing business as Angus Chemical Co. [Angus])
new $498 million term loan due 2025. The recovery rating is '2',
indicating S&P's expectation for substantial (70%-90%; rounded
estimate: 75%) recovery in the event of a payment default. S&P
based the rating on preliminary terms and conditions. S&P affirmed
its existing secured issue-level ratings, and those ratings will be
withdrawn once the debts are fully repaid.
S&P is affirming its 'B-' issuer credit rating on Angus and its
'CCC+' issue-level rating on its unsecured notes. The recovery
rating remains '5'.
This rating action follows Angus' announcement that it will issue a
new $498 million cross-border euro and USD term loan B (equivalent
of $274 million and $224 million, respectively) due 2025. The
company will use the proceeds to repay its existing euro and USD
term loans due 2022.
S&P's affirmation of the company's issuer credit rating reflects
its expectation Angus will generate positive free cash flow in 2020
and 2021, given its high EBITDA margins and manageable capital
spending. This supports its expectation that Angus will maintain
adequate liquidity.
Although the COVID-19 pandemic has hurt Angus' industrial end
markets, some other key end markets have shown resiliency, such as
life sciences and personal care. However, S&P still expects S&P
Global Ratings-adjusted debt to EBITDA to exceed 6x. In addition,
it believes Angus will benefit from cost-saving initiatives and
maintain strong profitability measures through 2020 and 2021.
"We view Angus' highly leveraged credit metrics as weaker than
those of 'B' category rated companies such as PQ Corp. and Innophos
Holdings Inc.," S&P said.
The stable outlook on Angus reflects S&P's expectation that the
COVID-19 pandemic will have a mixed effect on the end markets the
company serves. We also believe that some of Angus' key end
markets--such as auto and coatings, as well as electorics--will see
weaker operating performance for 2020 as the result of the pandemic
and the global recessionary environment. S&P's base-case
expectations are that weighted-average debt to EBITDA will remain
above 6x in 2020, funds from operations to debt will be between
9%-10% over the next 12 months, and Angus will see reduced demand
in key end markets, slightly offset by improvements in its life
sciences business.
"We could raise the rating by one notch over the next 12 months if
Angus maintains debt to EBITDA of below 6x on a sustained basis.
Debt to EBITDA could approach 6x if EBITDA margins improve by more
than 200 basis points (bps) from our 2020 base-case expectations.
These improvements would likely be the result of Angus weathering
the current macroeconomic environment better than we expect," S&P
said.
"Although unlikely, we could take a negative rating action over the
next 12 months if we believe debt to EBITDA will increase to above
8x for consecutive quarters, because we would consider that to be
approaching an unsustainable level. Debt to EBITDA could approach
8x if EBITDA margins drop significantly from our 2020 expectations,
such as by 1,000 bps from our 2020 base-case expectations. This
would likely happen if Angus' end markets perform worse than we
expect as a result of the pandemic or if the company experiences
any operating issues at its plants," the rating agency said.
AUTOKINITON US: Moody's Confirms B2 CFR, Outlook Negative
---------------------------------------------------------
Moody's Investors Service confirmed the ratings Autokiniton US
Holdings, Inc. - Corporate Family Rating and Probability of Default
Rating at B2 and B2-PD, respectively; and existing senior secured
rating at B2. The rating outlook is negative. This action concludes
the review for downgrade initiated on March 26, 2020.
Ratings Confirmed:
Issuer: Autokiniton US Holdings, Inc.
Corporate Family Rating, at B2
Probability of Default Rating, at B2-PD
Senior Secured Bank Credit Facility, at B2 (LGD4 from LGD3)
Outlook Actions:
Issuer: Autokiniton US Holdings, Inc.
Outlook, Changed to Negative from Rating Under Review
RATINGS RATIONALE
Autokiniton's ratings reflect the company's significant competitive
position as a North American auto parts supplier following the
company's acquisition of Tower International, Inc. in late 2019.
This created a company of sizable scale with pro forma revenue of
about $2.2 billion for 2019. Autokiniton has an important position
in the North American automotive industry as a supplier of
structural components/assemblies and chassis/frame components with
about 86% of revenues to light trucks/SUVs/CUVs. Further,
management has significant acquisition integration experience and a
long history in the automotive industry. While customer
concertation's are very high with about 70% of revenues in 2019
represented by the company's top 3 customers, the product focus is
on profitable light trucks/SUVs/CUVs.
Autokinton's pro forma debt/EBITDA for the last twelve month period
ending March 31, 2020 is estimated at 4.9x (inclusive of Moody's
adjustments and pro forma for the Tower acquisition) but will
deteriorate through 2020 with the impact from the gradual reopening
of automotive and commercial vehicle customer manufacturing
operations in North America due to the coronavirus pandemic.
Similar to other automotive parts suppliers, the company has
announced cost saving actions including flexing direct and indirect
costs, deferring capital spending, and taking advantage of
government deferral programs. The ratings also incorporate Moody's
view that excess cash available to support operating flexibility
over the coming quarters could be used to reduce debt in the back
half of 2021as industry conditions recover.
The negative outlook reflects the risk that the expected gradual
recovery of automotive industry conditions impacted by the
coronavirus pandemic could be interrupted from a second wave of
infection rates, or from weakening vehicle demand with a more
extended recessionary conditions from job losses.
Autokiniton's expected to maintain an adequate liquidity profile
over the next 12 months supported by cash on hand and modest
availability under the $250 million asset based revolving credit
facility. As of March 31, 2020, cash on hand was in the range of
just over $100 million. Availability under the $250 million ABL was
moderate with borrowings of about $200 million. The ABL facility
matures in 2023. Moody's expects negative free cash flow generation
in 2020 in the $20 to $40 million range which should be supported
by the company's cash balances. The remaining availability under
the facility is limited as higher usage could bring the facilities
financial maintenance covenants into effect. The financial
maintenance covenant for the ABL is a springing fixed charge
covenant of 1.0x to 1 when excess availability falls below the
greater of $16.7 million or 10% of the facility commitment. This
test is not expected to trigger in 2020 given the company's cash
balances. The term loan does not have financial maintenance
covenants.
Autokiniton's role in the automotive industry exposes the company
to material environmental risks arising from increasing regulations
on carbon emissions. Generally, however, Autokiniton's products
(structural assemblies, chassis, and frames) are not directly
exposed to vehicle powertrains. Even as automotive production of
hybrid and electric vehicle gradually increase over the next
several years, structural components & assemblies, and chassis &
frame components will continue to be required. Further,
Autokiniton's ability to develop lighter weight components with
enhanced strength will support the industry's efforts to meet
regulatory requirements.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Autokiniton's ratings could be upgraded if the company demonstrates
debt reduction with Debt/EBITDA approaching 3.5x and EBITA/Interest
approaching 3.0x.
Autokiniton's ratings could be downgraded if Debt/ EBITDA is
expected to be maintained over 5.5x, or EBITA/interest expense is
expected to be maintained under 1.5x through the second half of
2021. A deteriorating liquidity profile, debt funded acquisitions,
or large shareholder returns could also drive a ratings downgrade.
The principal methodology used in these ratings was the Automotive
Supplier Methodology published in January 2020.
Autokiniton US Holdings, Inc., headquartered in New Boston,
Michigan, is a leading Tier 1 supplier of specialized metal
stampings, welded assemblies, and hot stampings to the automotive
industry. The company is owned by affiliates of KPS Capital
Partners, L.P. On September 30, 2019, the company acquired Tower
International, Inc. Pro forma revenues for the combined companies
in 2019 were about $2.2 billion.
AVID BIOSERVICES: Names Nicholas Green as President and CEO
-----------------------------------------------------------
Nicholas Green has been appointed president and chief executive
officer, as well as a member of Avid Bioservices, Inc.'s board of
directors, effective July 30, 2020. He will succeed Rick Hancock
who has served as interim president and CEO since May 2019. Mr.
Hancock will continue to serve on Avid's board of directors.
Mr. Green has more than 30 years of experience in the global
pharmaceutical and healthcare services industry with significant
expertise in the contract manufacturing of novel pharmaceutical
products. His global pharmaceutical experience spans four
continents, having run 31 facilities in nine countries spanning
North America, South America, Europe, and Asia. Throughout his
career, Mr. Green has held a number of senior management roles for
several contract manufacturing organizations and life science
companies, where he is credited with successfully building and
expanding those businesses and delivering significant value for
customers, patients, employees, and other stakeholders.
Joseph Carleone, Ph.D., chairman of the Avid board of directors,
said, "On behalf of the Avid board, I'd like to welcome Nick as our
new president and CEO. His appointment is the result of a
deliberate and comprehensive search for an industry executive
capable of leading Avid to achieve its full potential. Nick's
lengthy and impressive career in the pharmaceutical contract
development and manufacturing sector, which has included senior
leadership roles at several successful companies, positions him
perfectly to oversee Avid's ongoing efforts aimed at customer base
expansion and revenue growth. The board and I look forward to the
positive impact that Nick will make on the company's business over
both the near and long-term."
"I am excited to join the Avid team and contribute my industry
experience to helping the company continue its impressive growth
trajectory," said Mr. Green. "Today, there is significant and
growing demand for companies at the leading edge of contract
development and manufacturing services for biologics. With its
high-quality offerings in the areas of process development,
analytical services, and CGMP manufacturing, combined with its more
than 25 years of experience in manufacturing complex biologics,
Avid is among the best positioned companies to seize this
opportunity."
"I thoroughly enjoyed my role as the interim president and CEO of
Avid and am proud of what the company has achieved during that time
in diversifying our client base and increasing revenues," said Rick
Hancock. "I believe that Avid is well positioned to execute
successfully on its growth strategy moving forward and the addition
of a leader such as Nick will only serve to strengthen the
company's prospects. The appointment of someone of Nick's caliber,
combined with the strength and talents of the entire Avid team,
make it easy for me to step aside and transition back into the sole
role of board member at this time. I would like to express deep
gratitude to all Avid team members for their commitment and hard
work during my tenure."
Mr. Green most recently served as president and CEO of Therapure
Biopharma, a Canada-based biopharmaceutical company which includes
Therapure Biomanufacturing. In this role, he oversaw the growth of
the company's CDMO business, while also leading the creation of
Therapure's proprietary plasma protein business, named Evolve.
Prior to Therapure, he held a number of senior management roles,
most notably managing director of Nipa Laboratories Ltd., head of
the life science division of Clariant International Ltd. in the
USA, president and CEO of Rhodia Pharma Solutions Ltd. and
president of Codexis, Inc.'s pharma division. Mr. Green holds a
bachelor's degree in chemistry from Queen Mary College in London
and an MBA from the University of Huddersfield.
Pursuant to his offer letter, Mr. Green's initial base salary is
$550,000 per annum. Mr. Green is also eligible to participate in
the annual discretionary bonus plan for executive officers, with a
target bonus percentage of up to 100% of his annual base salary
(prorated for the current fiscal year ending April 30, 2021) based
on the Company's attainment of annual performance goals and his
attainment of individual goals, each as approved by the
Compensation Committee of the Board. In addition, effective on his
start date of July 30, 2020, Mr. Green will be granted a stock
option to purchase 75,000 shares of the Company's common stock at
an exercise price equal to the closing price of the Company's
common stock on July 30, 2020, and awarded a restricted stock unit
for 150,000 shares, both of which shall be awarded from the
Company's 2018 Omnibus Incentive Stock Plan. The stock option and
RSU each will vest in equal annual installments over a four year
period.
About Avid Bioservices
Avid Bioservices -- http://www.avidbio.com/-- is a dedicated
contract development and manufacturing organization (CDMO) focused
on development and CGMP manufacturing of biopharmaceutical drug
substances derived from mammalian cell culture. The company
provides a comprehensive range of process development, CGMP
clinical and commercial manufacturing services for the
biotechnology and biopharmaceutical industries. With over 25 years
of experience producing monoclonal antibodies and recombinant
proteins, Avid's services include CGMP clinical and commercial drug
substance manufacturing, bulk packaging, release and stability
testing and regulatory submissions support. For early-stage
programs, the company provides a variety of process development
activities, including upstream and downstream development and
optimization, analytical methods development, testing and
characterization. The scope of its services ranges from standalone
process development projects to full development and manufacturing
programs through commercialization.
Avid Bioservices recorded net losses of $4.21 million for the year
ended April 30, 2019, $21.81 million for the year ended April 30,
2018, and $28.16 million for the year ended April 30, 2017. As of
Jan. 31, 2020, the Company had $105.22 million in total assets,
$58.14 million in total liabilities, and $47.08 million in total
stockholders' equity.
"In the event we are unable to secure sufficient additional
manufacturing services projects to support our current operations,
we may need to raise additional capital through a combination of
equity offerings and debt financings in order to fund our future
operations. There can be no assurance that, in the event we
require additional financing, such financing will be available on
acceptable terms or at all. Our ability to raise additional
capital in the equity markets is dependent on a number of factors,
including, but not limited to, the market demand for our common
stock. The market demand or liquidity of our common stock is
subject to a number of risks and uncertainties, including but not
limited to, our financial results and economic and market
conditions. If we raise additional capital through debt financing,
we may be subject to covenants limiting or restricting our ability
to take specific actions, such as making capital expenditures or
incurring additional debt. If we are unable to fund our continuing
operations through these sources, we may need to further
restructure, or cease, our operations, the company said in its
Quarterly Report for the period ended Jan. 31, 2020.
AVINGER INC: Prices $5.4-Mil. Public Offering of Common Stock
-------------------------------------------------------------
Avinger, Inc. reports the pricing of an underwritten public
offering with gross proceeds to the Company expected to be $5.4
million before deducting underwriting discounts and commissions and
other estimated offering expenses payable by the Company.
The proposed offering equates to 20 million shares of the Company's
common stock at a price of $0.27 per share. The Company intends to
use the net proceeds from this offering for working capital and
general corporate purposes, which may include research and
development of the Company's Lumivascular platform products,
preclinical and clinical trials and studies, regulatory
submissions, expansion of sales and marketing organizations and
efforts, intellectual property protection and enforcement and
capital expenditures. The Company has not yet determined the
amount of net proceeds to be used specifically for any particular
purpose or the timing of these expenditures. The Company may use a
portion of the net proceeds to acquire complementary products,
technologies or businesses or to repay principal on its debt;
however, the Company currently has no agreements or commitments to
complete any such transactions or to make any such principal
repayments and is not involved in negotiations to do so.
The Company has also granted the underwriters a 45-day option to
purchase up to an additional 15% of the number of shares of common
stock offered in the public offering to cover over-allotments, if
any, at the public offering price. The offering is expected to
close on or about June 26, 2020, subject to customary closing
conditions.
Aegis Capital Corp. is acting as sole bookrunner for the offering.
About Avinger
Headquartered in Redwood City, California, Avinger --
http://www.avinger.com/-- is a commercial-stage medical device
company that designs and develops image-guided, catheter-based
system for the diagnosis and treatment of patients with Peripheral
Artery Disease (PAD).
Avinger reported a net loss applicable to common stockholders of
$23.03 million for the year ended Dec. 31, 2019, compared to a net
loss applicable to common stockholders of $35.69 million for the
year ended Dec. 31, 2018. As of 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.
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.
BK TECHNOLOGIES: Unsecureds be Paid 'Extent of Available Assets'
----------------------------------------------------------------
BK Technologies Inc., submitted a Third Amended Plan of
Reorganization for Small Business Under Chapter 11.
To confirm the Plan, the Court must find that all creditors and
equity interest holders who do not accept the Plan will receive at
least as much under the Plan as such claim and equity interest
holders would receive in a chapter 7 liquidation.
Class 3 - Non-priority unsecured creditors are impaired. Claims
that are allowed will be paid to the extent of available assets.
Class 4 - Subordinated Unsecured Claims are impaired. Claims are
subordinated to Class 3.
Class 5 - Equity security holders of the Debtor are impaired. If
assets remain after payment of creditors, then the owners will be
paid on a 50/50 basis.
The Debtor will make a distribution of all assets in accordance
with this Plan of Reorganization.
A full-text copy of the Third Amended Plan of Reorganization dated
June 1, 2020, is available at https://tinyurl.com/ybhajmvz from
PacerMonitor.com at no charge.
About BK Technologies
BK Technologies Inc. filed a Chapter 11 petition (Bankr. N.D. W.Va.
Case No. 20-00170) on Feb. 27, 2020. At the time of the filing,
the Debtor had estimated assets of between $100,001 and $500,000
and liabilities of less than $50,000. Judge Frank W. Volk oversees
the case. Sheehan & Associates, P.L.L.C., is the Debtor's legal
counsel.
BLANCO RIVERWALK: Unsecureds Will be Paid in Full
-------------------------------------------------
Blanco Riverwalk Business Park LLC, submitted a Modified Combined
Disclosure Statement and Plan of Reorganization.
The Debtor has three creditors: BancorpSouth Bank (secured), Hays
County, and Hays County School District. On the Effective Date,
Land Bank will pay off the BancorpSouth Bank loan in full, pay all
taxes owing for the Debtor, and pay all administrative expenses and
U.S. Trustee fees. The Modified Plan does not change the treatment
of the three creditors. Only the proposed treatment of the equity
interest holders has changed. Vista Del Blanco Ltd. will receive a
$500,000 credit for its equity interest (which will be converted
into a prepaid equity interest in Land Bank) instead of the $2
million cash payment provided in the Plan. Charles Cauthorn and
Robert McDonald will each receive $100,000 prepaid equity interests
in Land Bank (previously the interests were to be $250,000) in
exchange for their equity interests in the Debtor.
All Other Unsecured, Secured, or Administrative Claims. The Court
previously set a claims bar date of Feb. 17, 2020. No additional
unsecured, secured, or administrative claims were made.
Under this Modified Plan, Allowed General Unsecured Claims are
expected to be paid in full, and the Debtor is unaware of any
fraudulent transfers.
Land Bank is an entity formed and controlled by Robert W. McDonald,
III, one of two principals of BRBP Partners, LLC. Land Bank will
acquire BRBP's interest in Debtor and will thereafter be the 100%
owner of Debtor. Land Bank is soliciting capital investments, and
will, on the Effective Date, retire the debt owed BancorpSouth Bank
by paying it in full. Land Bank will obtain releases of the
guarantees of Robert McDonald, Charles Cauthorn, and James Galloway
that are held by BancorpSouth Bank. Also on the Effective Date,
Land Bank will pay the taxes owed on the property of Debtor.
A full-text copy of the Disclosure Statement dated June 1, 2020, is
available at https://tinyurl.com/y8578x8s from PacerMonitor.com at
no charge.
Attorneys for the Debtor:
Stephen W. Lemmon
Rhonda Mates
1801 S. MoPac Expressway, Suite 320
Austin, Texas 78746
Tel: (512) 236-9900
Fax: (512) 236-9904
About Blanco Riverwalk Business Park
Blanco Riverwalk Business Park LLC is owned 50% by BRBP Partners
LLC and 50% by Vista Del Blanco Ltd. Blanco Riverwalk owns
approximately 117 acres of land with significant IH 35 and Blanco
River frontage in San Marcos, Hays County, Texas located along the
west side of IH 35 between the Blanco River Bridge and Yarrington
Road, within the City limits of San Marcos, Texas.
Blanco Riverwalk Business Park, LLC, sought Chapter 11 protection
(W.D. Tex. Case No. 19-11647) on Dec. 2, 2019. The Debtor was
estimated to have assets of $10 million to $50 million and
liabilities of $1 million to $10 million. The Hon. Tony M. Davis
is the case judge. Streusand, Landon, Ozburn & Lemmon, LLP, is the
Debtor's counsel.
BRONX CITY SERVICE: Seeks Approval to Hire Bankruptcy Attorney
--------------------------------------------------------------
Bronx City Service Auto Repair, Inc., seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Carlos Cuevas, Esq., as its bankruptcy attorney.
The services to be provided by the attorney include preparing a
plan of reorganization and advising Debtor concerning the
administration of its Chapter 11 case.
Debtor will pay $495 per hour for the services of Mr. Cuevas and
$175 per hour for the services of the paralegal assisting him. The
retainer fee is $7,000.
Mr. Cuevas is "disinterested" within the meaning of Section 101(14)
of the Bankruptcy Code, according to court filings.
Mr. Cuevas holds office at:
Carlos J. Cuevas, Esq.
1250 Central Park Avenue
Yonkers, New York 10704
Tel: 914.964.7060
Email: ccuevas576@aol.com
About Bronx City Service Auto Repair
Bronx City Service Auto Repair, Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
20-11090) on May 1, 2020. At the time of the filing, the Debtor
was estimated to have assets of between $100,001 and $500,000 and
liabilities of the same range. Judge Stuart M. Bernstein oversees
the case. The Debtor has tapped Carlos J. Cuevas, Esq., as its
bankruptcy attorney.
C ROBERTSON: Court Enters Plan Confirmation Order
-------------------------------------------------
Judge Harlin D. Hale has ordered that the Plan filed by C Robertson
Insurance Agency, LLC, d/b/a Chris Robertson Farmers Agency, is
confirmed in all respects pursuant to Sections 1129 and 1191 of the
Bankruptcy Code.
The Court finds that the disclosures contained in the Debtor's Plan
filed on April 27, 2020 contains adequate information pursuant to
11 U.S.C. Sec. 1190.
With respect to each Impaired Class of Claims or Equity Interests
under the Plan, each holder of an Allowed Claim or Equity Interest
of such Class (i) has accepted the Plan, or (ii) will receive or
retain under the Plan on account of such Claim or Equity Interest
property of a value, as of the Effective Date, that is not less
than the amount that such holder would receive or retain if such
Claimant's or Equity Interest Holder's claim or interest were
liquidated under Chapter 7 of the Bankruptcy Code in compliance
with Section 1129(a)(7) of the Bankruptcy Code. The Plan satisfies
the "best interest" of creditors test.
Counsel for C Robertson:
Areya Holder Aurzada
HOLDER LAW
901 Main Street, Suite 5320
Dallas, Texas 75214
Telephone: (972) 438-8800
E-mail: areya@holderlawpc.com
About C Robertson Insurance Agency
C Robertson Insurance Agency, LLC, d/b/a Chris Robertson Farmers
Agency, an insurance agency that provides home, auto, business and
life insurance in the state of Texas, filed voluntary petition
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No.
20-30982) on March 26, 2020. The petition was signed by Christopher
Robertson, an authorized member. At the time of the filing, the
Debtor was estimated to have assets of between $100,001 to $500,000
and estimated liabilities of the same range. The Debtor tapped
Holder Law as its counsel.
CAMERON MUTUAL: A.M. Best Cuts Finc'l. Strength Rating to B(Fair)
-----------------------------------------------------------------
AM Best has downgraded the Financial Strength Rating to B (Fair)
from B+ (Good) and the Long-Term Issuer Credit Rating to "bb+" from
"bbb-" of Cameron Mutual Insurance Company (Cameron Mutual)
(Cameron, MO). The outlook of these Credit Ratings (ratings)
remains stable.
The ratings reflect Cameron Mutual's balance sheet strength, which
AM Best categorizes as strong, as well as its marginal operating
performance, limited business profile and marginal enterprise risk
management (ERM).
The rating downgrades reflect a revision in AM Best's assessment of
Cameron Mutual's balance sheet strength to strong from very strong,
given ongoing surplus erosion and increasing underwriting leverage
ratios, which are well in excess of the composite. Management has
responded by initiating several corrective actions including a
quota share agreement, targeted non-renewals and stricter
underwriting guidelines; however, results have not yet benefited
from these actions.
Cameron Mutual's balance sheet strength reflects the very strong
level of risk-adjusted capitalization, as measured by Best's
Capital Adequacy Ratio (BCAR), a comprehensive reinsurance program
and historically favorable reserve development, which is somewhat
offset by declining risk-adjusted capitalization.
Cameron Mutual's operating performance continues to experience
volatility, largely related to weather-related losses and increased
frequency and severity of auto claims. The limited business profile
reflects the company's geographic concentration in the Midwest
region and exposure to severe weather-related losses. AM Best views
Cameron Mutual's ERM as marginal, as the program is continuing to
address operating volatility and above average leverage measures.
CARPENTER'S ROOFING: June 30 Hearing on Disclosure Statement
------------------------------------------------------------
Judge Mindy A. Mora has ordered that the hearing on approval of
Disclosure Statement, confirmation hearing and hearing on fee
applications of Carpenter's Roofing & Sheet Metal, Inc., will be on
Tuesday, June 30, 2020 at 1:30 p.m., in United States Bankruptcy
Court, 1515 North Flagler Drive, Courtroom A, West Palm Beach,
Florida 33401.
The proponent's deadline for serving this order, disclosure
statement, plan, and ballot will be on Tuesday, June 2, 2020.
The deadline for objections to claims will be on Tuesday, June 16,
2020.
The deadline for filing ballots accepting or rejecting plan will be
on Friday, June 19, 2020.
The deadline for objections to confirmation will be on Thursday,
June 25, 2020.
The deadline for objections to approval of the disclosure statement
will be on Thursday, June 25, 2020.
About Carpenter's Roofing
Carpenter's Roofing & Sheet Metal, Inc. --
https://carpentersroofing.com/ -- is a roofing contractor
headquartered in West Palm Beach, Fla. It was founded in 1931 by
Howard Carpenter.
Carpenter's Roofing & Sheet Metal sought protection under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-24798) on
Nov. 29, 2018. At the time of the filing, Debtor disclosed
$1,040,593 in assets and $1,838,038 in liabilities. The case is
assigned to Judge Mindy A. Mora.
Debtor hired Kelley & Fulton, PL, as its legal counsel, and
Rinehimerbaker LLC as its accountant.
CARROLS RESTAURANT: S&P Upgrades ICR to 'B-' on Debt Issuance
-------------------------------------------------------------
S&P Global Ratings raised its rating on Syracuse, N.Y.-based quick
service restaurant franchisee Carrols Restaurant Group Inc. to 'B-'
from 'CCC+' and removed all of its ratings on the company from
CreditWatch, where it placed them with positive implications on
June 16, 2020.
At the same time, S&P is raising its issue-level rating on the
company's senior secured term loan to 'B-' from 'CCC+' and
assigning its 'B-' final issue-level rating to the incremental $75
million term loan. The '3' recovery rating reflects S&P's
expectation for meaningful recovery (50%-70%; rounded estimate:
55%) in the event of a default.
The upgrade follows Carrols' completion of a $75 million term loan
B add-on along with a steady sequential recovery in sales following
the initial impact of the coronavirus pandemic.
S&P now expects less significant same-store sales declines
(mid-single-digit percentages) for 2020 as crowd avoidance
practices benefit Carrols' drive-thru operations in the second
half.
Following a trough at the end of its first quarter with sales
declines of around 30%, Carrols' performance improved in recent
weeks. By the first week of June, sales recovered to prior-year
levels.
"We attribute some of that to government stimulus payments and
higher unemployment benefits driving pent-up demand. Moreover, we
believe sales will continue to benefit from ongoing social
distancing practices as consumers favor takeout and drive-thru
restaurants, trading down from more costly dining options amid a
recession. We expect comparable sales for the remainder of 2020 to
be approximately flat to the prior year," S&P said.
Carrols reduced staffing and dining room operating costs while only
offering drive-thru and takeout service from March through May.
"Still, we believe profitability will be pressured in 2020, as
sales deleverage more than offset lower labor expenses and other
cost initiatives. We anticipate full year S&P Global
Ratings-adjusted EBITDA margin in the mid-10% area in 2020,
compared to 11.4% in 2019 and 14.5% in 2018," S&P said.
Carrols' term loan add-on provides additional liquidity cushion,
and S&P expects its covenants will not be applicable over the next
12 months.
The company issued a $75 million term loan B add-on to repay its
revolving credit facility and fortify its liquidity position.
"In our view, the transaction will improve its financial
flexibility amid heightened uncertainty. Pro forma for the
transaction, the company has approximately $150 million of
liquidity, including cash on hand and availability on its $145
million revolver. It has no covenants on its term loan and a
springing total net leverage covenant of 5.75x on its cash flow
revolver applicable when borrowings exceed 35% of the commitment
amount. S&P expects the springing covenant will no longer be
applicable after the company pays down most of its outstanding
revolver borrowing with proceeds from the add-on," S&P said.
Carrols continues to operate with very high leverage, leaving it
vulnerable to further adversities.
"While we expect revenue and EBITDA growth to improve over the
second half of 2020, leverage will remain elevated owing to the
company's history of aggressive growth spending over the past
several years. We forecast S&P Global Ratings-adjusted debt to
EBITDA in the high-8x area in fiscal 2020, improving to the mid-7x
area in 2021," S&P said.
"In our view, Carrols' aggressive growth strategy limits its cash
flow prospects and presents significant execution risks. With no
further growth capital spending, we forecast less than $10 million
of free operating cash flow (FOCF) in 2020. Recently the company
indicated its focus on improving the restaurant base to generate
better cash flow and reduce net leverage, before pursuing growth
investments. We view this as a positive development in its risk
management practices," the rating agency said.
Environmental, social, and governance (ESG) credit factors relevant
to this credit rating change:
-- Health and safety
The negative outlook reflects continued uncertainty regarding the
effects of the coronavirus pandemic on QSR operators. S&P believes
a highly leveraged capital structure could make Carrols more
vulnerable to supply chain pressures or consumer behavior changes,
based on its expectation for thinly positive FOCF.
S&P could lower its rating on Carrols if:
-- S&P believes its capital structure is unsustainable as a result
of deteriorating operating performance;
-- Its ability to service its debt obligations is pressured;
-- Increased revolver utilization results in S&P's expectation for
a financial covenant violation; or
-- A shift in consumer behavior reduces sales and profitability,
and the company cannot generate positive FOCF.
S&P could revise its outlook to stable if:
-- Operational threats posed by the pandemic have subsided;
-- S&P expects sustained positive FOCF, improving operating
performance, and decreasing leverage; and
-- S&P expects changing consumer behavior, as a result of the
recession or otherwise, will not be detrimental to profitability.
CASA DE LAS INVESTMENTS: Taps Michael Jay Berger as Legal Counsel
-----------------------------------------------------------------
Casa De Las Investments, LLC, seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire the
Law Offices of Michael Jay Berger as its legal counsel.
The firm's services will include assisting Debtor in the
preparation of a Chapter 11 plan of reorganization and in dealing
with claims against its bankruptcy estate.
The firm will be paid at hourly rates as follows:
Michael Jay Berger $595
Sofya Davtyan $495
Carolyn Afari $435
Samuel Boyamian $350
Senior Paralegals/Law Clerks $225
Bankruptcy Paralegals $200
The retainer fee is $10,000.
Michael Jay Berger, Esq., disclosed in court filings that he has no
prior economic, business or personal connections to Debtor, its
creditors and other parties.
The firm can be reached through:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
E-mail: michael.berger@bankruptcypower.com
About Casa De Las Investments
Casa De Las Investments, LLC, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-14840) on May 27,
2020. At the time of the filing, Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range. Judge Vincent P. Zurzolo oversees the case. Debtor has
tapped the Law Offices of Michael Jay Berger as its legal counsel.
CAST & CREW: S&P Affirms 'B-' ICR; Outlook Negative
---------------------------------------------------
S&P Global Ratings affirmed all its ratings on California-based
media and entertainment payroll services provider Cast & Crew
Payroll LLC, including its 'B-' issuer credit rating.
Though leverage remains highly elevated through fiscal 2021, S&P
expects Cast & Crew to sustain adequate liquidity, allowing the
company to navigate the limited headroom it will have under its
financial covenant. However, disruption in expected gross wage
recovery could further deteriorate liquidity and heighten the risk
of a breach.
S&P anticipates cash burn to peak at $40 million to $50 million
between March 31, 2020 and Sept 30, 2020 as COVID-19 distancing
sanctions keep production activity low. With $130 million of
unrestricted cash as of March 31, Cast & Crew should have $80 to
$90 million remaining at September 30, more than sufficient to meet
liquidity needs, which include $9.4 million in annual debt
amortization, $10 million-$15 million of capital expenditures, and
working capital.
Cast & Crew has to comply with a springing first-lien net leverage
covenant of 8.3x, tested when utilization exceeds 35% of its $90
million committed line of borrowing. The company drew down on the
entirety of its revolver in March, effecting the covenant which now
which faces a potential violation in the September quarter. Under
S&P's base-case scenario, the company will have sufficient
liquidity to prepay a portion of its fully drawn outstanding
borrowings so as to not spring the covenant test condition. In
addition, though leverage will remain elevated (spiking well above
10x in fiscal 2021), S&P believes the company's adequate liquidity,
long-tenured customer relationships, and entrenched market position
also support the company's ability to negotiate covenant relief.
While it remains uncertain how the pace of production activity will
rise over the next 12 to 18 months, S&P believes Cast & Crew is
positioned well for recovery upon the resumption of payroll wages
returning with media production activity. The rating agency expects
demand for smaller TV and film productions and original content for
digital streaming services will trend toward pre-pandemic levels by
2021 while live events, theater (roughly 19% of Cast & Crew's gross
wages), and productions requiring large crews will likely face a
longer path to recovery.
S&P acknowledges a high degree of uncertainty about the evolution
of the coronavirus pandemic.
"The consensus among health experts is that the pandemic may now be
at, or near, its peak in some regions, but will remain a threat
until a vaccine or effective treatment is widely available, which
may not occur until the second half of 2021. We are using this
assumption in assessing the economic and credit implications
associated with the pandemic. As the situation evolves, we will
update our assumptions and estimates accordingly," S&P said.
Environmental, social, and governance (ESG) credit factors related
to this rating action:
-- Health and safety
The negative outlook reflects the potential for negative cash flow
generation and materially weakened liquidity should production
suspensions continue beyond 2020, or if recovery in entertainment
production spending does not ramp up to pre-coronavirus levels as
quickly as expected.
S&P could lower the rating on Cast & Crew if a prolonged period of
materially low payroll activity results in either of the
following:
-- Multiple quarters of negative free cash flow that stresses
S&P's view of projected available liquidity to below the $30
million to $35 million range, or if it was to become less confident
that Cast & Crew will be able to secure a covenant waiver or
otherwise mitigate its anticipated covenant breach by Sept. 30,
2020.
-- The other wholly owned subsidiaries of Cast & Crew's ultimate
parent (Camera Holdings L.P.) experience business or financial
distress. In this scenario, S&P would conclude that stress at these
subsidiaries, which are outside of the credit group, could have
adverse repercussions for Cast & Crew's credit quality.
-- S&P could revise the outlook to stable if the rebound in
production spending is quicker than expected, allowing the company
to return to positive cash flow generation and thereby restore its
liquidity position and projected covenant cushion to above 15%. At
the same time, the rating agency would expect resumed production to
support its expectations for a sustainable path to improving credit
metrics.
CEC ENTERTAINMENT: Moody's Cuts PDR to D-PD on Chapter 11 Filing
----------------------------------------------------------------
Moody's Investors Service downgraded CEC Entertainment, Inc.'s
probability of default rating to D-PD from Caa3-PD following the
company's announcement that it has commenced voluntary Chapter 11
proceedings. All other ratings are unchanged and the outlook has
changed from negative to stable.
Downgrades:
Issuer: CEC Entertainment, Inc.
Probability of Default Rating, Downgraded to D-PD from Caa3-PD
Outlook Actions:
Issuer: CEC Entertainment, Inc.
Outlook, Changed to Stable from Negative
RATINGS RATIONALE
As a result of the prolonged unit closures caused by the outbreak
of COVID-19, the company's capital structure became unsustainable
over the long term particularly in light of company's maturity
profile.
The rapid spread of the coronavirus outbreak, deteriorating global
economic outlook, low oil prices, and high asset price volatility
have created an unprecedented credit shock across a range of
sectors and regions. Moody's regardsthe 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 CEC of the deterioration in credit quality it has
triggered, given its exposure to prolonged unit closures, which has
left it vulnerable to shifts in market demand and sentiment in
these unprecedented operating conditions.
Subsequent to its actions, Moody's will withdraw the ratings due to
CEC's bankruptcy filing.
CEC Entertainment, Inc., headquartered in Irving, Texas, owns,
operates, and franchises a total of 612 Chuck E. Cheese stores and
122 Peter Piper Pizza locations that provide family-oriented dining
and entertainment in 47 states and 16 foreign countries. CEC is
wholly owned by an affiliate of Apollo Global Management, LLC.
Revenue for the last twelve-month period ended 12/31/2019
(including franchise fees and royalties) was approximately $913
million.
The principal methodology used in this rating was Restaurant
Industry published in January 2018.
CECCHI GORI: Seeks to Hire Brutzkus Gubner as Litigation Counsel
----------------------------------------------------------------
Cecchi Gori Pictures and Cecchi Gori USA, Inc. seek approval from
the U.S. Bankruptcy Court for the Northern District of California
to hire Brutzkus Gubner Rozansky Seror Weber LLP as special
litigation counsel.
The Debtors seek to expand the scope of the Court's previous order
entered on March 18, 2019, authorizing Brutzkus Gubner to serve as
Special Litigation Counsel responsible for representing the Debtors
in connection with (i) Adv. Proc. No. 18-05068 (the BNR
Litigation), (ii) Adv. Proc. No. 17-05007 (the G&G Litigation), and
(iii) Adv. Proc. No. 17-05084 (the Klagi Litigation and together
with the BNR Litigation and G&G Litigation, the Original Adversary
Proceedings) and any related appellate proceedings.
The Debtors seek to further authorize the Debtors' employment of
Brutzkus Gubner to represent them as Special Litigation Counsel in
adversary litigation and appellate proceedings relating to the
underlying facts and circumstances of the Original Adversary
Proceedings, including the following three adversary proceedings:
(i) Adv.
Proc. No. 19-05034 (the Nepomuceno Litigation), (ii) Adv. Proc.
19-05035 (the Blakely Litigation), and (iii) Adv. Proc. 20-05028
(the Giotec Litigation and together with the Nepomuceno Litigation
and the Blakely Litigation, the Subsequent Adversary Proceedings).
Brutzkus Gubner proposes to continue to render services to the
Debtors on a contingency fee basis:
-- Forty Percent of any gross recovery obtained through
settlement, judgment or otherwise in any Adversary Proceeding after
the filing of the complaint initiating such Adversary Proceeding
but before the appeal of any judgment in such proceeding;
-- Fifty Percent of any gross recovery obtained through
settlement, judgment or otherwise in any Adversary Proceeding after
appeal of any judgment in such proceeding.
Brutzkus Gubner is a "disinterested person" as that term is issued
in Section 101(14) of the Bankruptcy Code, as modified by
Bankruptcy Code Section 1107(b), and used in Bankruptcy Code
Section 327, as stated in the court filing.
The counsel can be reached through:
Nicholas Rozansky, Esq.
Susan K. Seflin, Esq.
Jessica L. Bagdanov, Esq.
Brutzkus Gubner Rozansky Seror Weber LLP
21650 Oxnard Street, Suite 500
Woodland Hills, CA 91367
Tel: (818) 827-9000
Fax: (818) 827-9099
Email: nrozansky@bg.law
sseflin@bg.law
jbagdanov@bg.law
About Cecchi Gori
Cecchi Gori Pictures and Cecchi Gori USA, Inc. filed voluntary
Chapter 11 petitions (Bankr. N.D. Cal. Case No. 16-53499) on Dec.
14, 2016. At the time of the filing, each Debtor disclosed assets
of between $1 million and $10 million and liabilities of the same
range.
The cases are assigned to Judge Elaine M. Hammond. The Debtors
hired Sheppard Mullin Richter & Hampton, LLP as their bankruptcy
counsel.
CELLA III: Court Approves Disclosure Statement
----------------------------------------------
Judge Jerry A. Brown has ordered that the Cella III, LLC's Amended
Disclosure Statement is approved.
The hearing on confirmation of the Amended Plan (P-99) will be held
before the undersigned Bankruptcy Judge at SECTION B TeleConference
Line: 1-888-684-8852, Access Code 7058793 on Monday, Aug. 17, 2020
at 9:00 a.m.
Aug. 10, 2020 is fixed as the last day for filing and serving
written objections to confirmation of the amended plan.
Aug. 10, 2020 is fixed as the last day for filing acceptances or
rejections of the amended plan.
Counsel for the Debtor:
Leo D. Congeni
The Congeni Law Firm, LLC
650 Poydras Street, Suite 2750
New Orleans, LA 70130
(504) 522-4848
About Cella III LLC
Cella III, LLC, a company based in Metairie, La., filed a Chapter
11 petition (Bankr. E.D. La. Case No. 19-11528) on June 5, 2019.
In the petition signed by George A. Cella, III, member and manager,
the Debtor was estimated to have $10 million to $50 million in
assets and $1 million to $10 million in liabilities.
The Hon. Jerry A. Brown oversees the case.
The Debtor tapped Congeni Law Firm, LLC as bankruptcy counsel;
Sternberg, Naccari & White, LLC as special counsel; and Patrick J.
Gros, CPA, APAC as accountant.
CENTURY CASINOS: S&P Retains 'B-' ICR on CreditWatch Negative
-------------------------------------------------------------
S&P Global Ratings retains all its ratings on Colorado-based gaming
operator Century Casinos Inc., including its 'B-' issuer credit
rating, on CreditWatch where it placed them with negative
implications on March 20, 2020.
Century's liquidity could become less than adequate as its casino
properties reopen. As of March 31, 2020, Century had about $63.7
million of cash on the balance sheet (of which $27.2 million was
unavailable to fund U.S. operations without being repatriated)
including its $17.4 million draw on its two revolving credit
facilities. During the initial months of the casino closures,
Century was burning about $8 million per month, including debt
service and rent. The company also indicated it would require about
$19 million to reopen operations and cover cash needs at its
properties. S&P believes regulatory changes in some markets that
reduced the minimum amount of cash that casinos were required to
hold in cages might have somewhat reduced Century's required $19
million opening cash. Century's monthly cash burn during the
closures was higher than other smaller regional gaming operators
because it has a relatively sizable lease obligation with VICI in
connection with three gaming operations Century acquired from
Eldorado in December 2019, which requires the company to make a
committed payment of at least $25 million per year. This fixed
contractual rent reduces Century's financial flexibility,
particularly considering its small EBITDA base and cash flow
generating capacity. Although regional casinos have reported
largely positive operating performance and visitation upon
reopening, S&P believes these trends will likely taper off in the
coming weeks as nearby competition reopens and states relax social
distancing guidelines to allow more alternative entertainment
facilities to reopen and this could pressure Century's thin
liquidity cushion, particularly through June to August, when the
rating agency believes Century's liquidity will hit its low point
and the company will be trying to rebuild cash balances it depleted
during the closures. S&P also believes gaming operators will likely
face challenges managing their expense base over the coming
quarters due to uncertain and potentially volatile customer demand.
In addition, S&P sees risk to the company's liquidity position
should the virus not be contained or if there is increased
COVID-19 infections in their various gaming markets over the next
few weeks that result in increased social distancing requirements
and other preventative measures designed to curb infections.
Notwithstanding, the company has received proposals for incremental
liquidity, which it has not executed.
Despite the temporary closures of its casinos, which will likely
cause Century's leverage to spike very high in 2020, the issuer
credit rating remains 'B-' because leverage could decline below 6x
in 2021 and the company can rebuild liquidity in S&P's assumed
recovery scenario. Century's leverage will likely spike in 2020
because it generated near-zero revenue and burned cash while its
properties were closed for about two months. S&P is forecasting a
meaningful (about 50%) drop in EBITDA compared with 2019 (pro forma
for three casino operations that were acquired in December 2019
from Eldorado Resorts Inc.) because of the temporary closure of its
casinos due to the coronavirus pandemic. Nevertheless, under its
assumed recovery scenario, S&P believes Century might be able to
reduce lease adjusted leverage below 6x in 2021 and rebuild
liquidity starting in the third quarter of 2020.
Century has since resumed gaming operations at all of its
properties (except for its five ship-based casino operations, which
reflect less than 1% of 2019 revenues). Although initial operating
performance and casino visitation, especially in regional markets,
has been largely positive due to pent-up demand, S&P believes
consumer apprehension around entering enclosed public
spaces--especially if there are additional waves of the virus later
this year and the U.S. recession, which might reduce consumer
discretionary spending, especially given the rating agency's
forecast for high unemployment to persist through at least 2021 and
expanded unemployment benefits not to be extended--might affect the
recovery in Century's gaming revenue in the latter part of 2020 and
into 2021. While S&P believes social distancing and other health
and safety measures that limit capacity in casinos might hurt
revenue, these measures might have less of an impact given the
rating agency's understanding that peak utilization rates in many
regional gaming markets were historically below those levels.
Furthermore, S&P expects local and regional gaming markets, such as
the ones that Century operates in, will recover faster than
destination markets, because most customers drive to these
properties rather than fly, which reduces the cost of the trip and
potentially alleviates any lingering fears around travel. In
addition, S&P assumes margins in regional gaming markets could
improve, at least temporarily, even if revenue falls as operators
take a measured approach to increasing labor and marketing. Also,
many of the amenities, including food and beverage outlets, that
might remain closed for some time are often lower-margin, if
profitable at all.
Under S&P's assumed recovery scenario, S&P believes it could take
more than a year for Century's EBITDA to recover to 2019 pro forma
levels. S&P's base case scenario also assumes the following:
-- Net revenue declines in the high single-digit percent area in
2021 relative to 2019;
-- EBITDAR to decline in the mid-single-digit area in 2021 and
EBITDAR margin to be slightly above pro forma 2019 levels, given
S&P's expectation that lower margin amenities might be permanently
removed and its belief that some cost reductions made during the
closure might be more permanent, especially if demand does not
quickly recover to pre-pandemic levels.
These assumptions result in about $80 million-$90 million of annual
EBITDAR and the company generates positive discretionary cash flow
in 2021.
The CreditWatch listing reflects substantial uncertainty as to
Century's ability to recover later this year and into 2021
following a significant deterioration in liquidity, cash flow, and
credit measures.
"In resolving the CreditWatch, we plan to monitor Century's
operating performance over the next few weeks and evaluate the
sustainability of customer demand and visitation at its various
properties in light of ongoing social distancing measures, other
operational changes concerning health and safety, and the impact of
the recession. We also plan to evaluate the sustainability of
margin improvement at regional casino properties," S&P said.
"We could lower the ratings if recovery were slower than we
expected and Century did not begin to rebuild cash balances in the
third quarter or add incremental liquidity. In addition, we could
lower the rating if we no longer believed that Century would
recover in the second half of 2020 and 2021 so it can begin to
sustainably generate positive cash flow," the rating agency said.
CENTURY III MALL: Plan Supplement Provides for Changes to Plan
--------------------------------------------------------------
Century III Mall PA LLC, submitted a Plan Supplement to the
Debtor's First Amended Chapter 11 Plan of Reorganization dated May
7, 2020.
Section 5.4 of the Plan is and will be replaced and supplanted in
full with the following revised Section 5.4.
5.4 Class 3: Junior Secured Non-Tax Claims
Olson Restoration d/b/a Servpro Extreme Response Team ("Olson
Restoration") is the only creditor in Class 3 because of its unique
lien priority on the Real Property. Holders of Allowed Class 3
Claims are to be paid in full at 5% interest, only to the extent
allowed, within one year of the later of (a) the entry of a Final
Order resolving the dispute regarding Olson Restoration's claim as
a result of the Court-ordered mediation and (b) the entry of a
Final Order determining any Objection to the Olson Restoration
claim filed in the Court. If the Debtor elects to sell any
parcel(s) pursuant to Section 8.1.4 of this Plan, Holders of a
Claim in the Class will release their lien with regard to only the
parcel(s) sold and will receive a pro rata distribution of such
proceeds.
Holders of Class 2 Allowed Claims are to receive adequate
protection in the period between the Effective Date and the Payment
Commencement Date via Debtor's payments of delinquent taxes on the
Effective Date and current property taxes as they come due. The
Debtor's payment of such taxes will provide the Olson Restoration
with the indubitable equivalent value of its claim as doing so will
have the effect of increasing the Real Property value and
increasing the priority of Olson Restoration's claim to the extent
that it is an Allowed Claim. In the alternative, a Holder of a
Class 3 Claim may elect to receive a single Distribution of 20% of
its Allowed Claim within 90 days of the Effective Date in full
satisfaction of its Claim. In order for the Holder of an Allowed
Claim to receive payment of 20% of its Allowed Claim within 90 days
of the Effective Date, the Holder must complete the ballot, accept
the Plan, and select the alternative treatment.
Class 3 is Impaired, and the holder of a Class 3 Claim is
entitled to vote to accept or reject the Plan.
Section 8.3 of the Plan is and shall be replaced and supplanted in
full with the following revised Section 8.3.
8.3 Recovery Actions
Any recovery on any Recovery Action, after the Effective
Date, shall be property of the Estate and the Estate shall be
entitled to the full amount recovered by way of the Recovery Action
from any party that received an avoidable transfer and the net
amount of such recovery (after reasonable expenses of recovery)
will be used to fund additional distributions under the Plan,
unless and except to the extent that this Court enters an order
determining that any recovery on any Recovery Action is to be held
in trust by the Debtor for the benefit of Olson Restoration.
Section 13.5 of the Plan is and shall be replaced and supplanted in
full with the following revised Section 13.5.
13.5 Estate Litigation
The Debtor shall retain the exclusive right to enforce any and
all Recovery Actions against any person or entity. The Debtor may
pursue, abandon, or release any or all Recovery Actions as it deems
appropriate, without the need to obtain approval or any or other
further relief from the Bankruptcy Court. The Debtor, in its sole
discretion, may offset any such claim held against a person or
entity, against any payment due such person or entity under the
Plan. Notwithstanding, yet in no way altering, the foregoing,
Olson Restoration will not be barred from pursuing its own claims
against Moonbeam Equities X, LLC, Moonbeam Leasing and Management,
LLC, Moonbeam Capital Investments, LLC, and Steve Maksin if and to
the extent that this Court grants its Motion for Relief from
Automatic Stay [Doc. 388] and [Doc. 449] or denies Debtor's motion
for entry of an order approving settlement or barring claims
against Settling Parties [Doc. 392].
The below identified portion of Section 5.2 of the Plan contained a
typographical error as to one of the tax years referenced and,
accordingly, is and shall be replaced and supplanted in full as
follows:
Original Language incorrectly referenced tax year 2019:
Pursuant to agreement by and between the Debtor, West Mifflin
Borough and West Mifflin School District, the tax assessment value
of the Debtor’s parcel 387-L-250 (the “Mall Parcel”) shall be
as follows for years 2015, 2016, 2017, and 2019.
Revised Language to correctly reference tax year 2018:
Pursuant to agreement by and between the Debtor, West Mifflin
Borough and West Mifflin School District, the tax assessment value
of the Debtor’s parcel 387-L-250 (the “Mall Parcel”) shall be
as follows for years 2015, 2016, 2017, and 2018.
A full-text copy of the Plan Supplement dated June 1, 2020, is
available at https://tinyurl.com/ycwuryxq from PacerMonitor.com at
no charge.
Attorneys for the Debtor:
Kirk B. Burkley
BERNSTEIN-BURKLEY, P.C.,
707 Grant Street, Gulf Tower
Suite 2200
Pittsburgh, PA 15219
Tel: (412) 456-8100
Fax: (412) 456-8135
E-mail: kburkley@bernsteinlaw.com
About Century III Mall PA
Century III Mall PA LLC -- http://www.centuryiiimall.com/-- owns
the Century III Mall shopping center located in West Mifflin, Pa.
Century III Mall PA sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Case No. 18-23499) on Sept. 3,
2018. In the petition signed by Edward Sklyaroff, president, the
Debtor was estimated to have assets of $1 million to $10 million
and liabilities of $1 million to $10 million. Judge Carlota M.
Bohm oversees the case. The Debtor tapped Kirk B. Burkley, Esq.,
at Bernstein-Burkley, P.C., as its legal counsel.
No official committee of unsecured creditors has been appointed.
CESAR CHAVEZ SCHOOLS: S&P Affirms 'B-' Rating on 2011 Revenue Bonds
-------------------------------------------------------------------
S&P Global Ratings revised its outlook to stable from negative and
affirmed its 'B-' rating on District of Columbia's series 2011
tax-exempt fixed-rate revenue bonds, issued for Cesar Chavez Public
Charter Schools (Chavez Schools).
"The revised outlook reflects our view of school's materially
reduced debt position, healthy liquidity, and expected improvement
in maximum annual debt service coverage, which we believe provide
some degree of flexibility at the rating level," said S&P Global
Ratings analyst Avani Parikh.
In April 2020, Chavez Schools paid off over a third of its
outstanding debt using the proceeds from the sale of lease rights
to one of its former campuses. This, combined with elimination of
previous lease expenses, results in a reduced pro forma maximum
annual debt service burden and greater operating flexibility with
lower fixed expenses. In S&P's view, the rating still reflects the
risks of continued uncertainty around the school's enrollment
trends, especially for fall 2020 heightened by the current
pandemic.
CHESAPEAKE ENERGY: Case Summary & 50 Largest Unsecured Creditors
----------------------------------------------------------------
Lead Debtor: Chesapeake Energy Corporation
6100 North Western Avenue
Oklahoma City, Oklahoma 73118
Business Description: Chesapeake -- www.chk.com -- owns and
operates valuable oil and natural gas
assets in certain key U.S. hydrocarbon
producing states, including Oklahoma,
Texas, Louisiana, Pennsylvania, and
Wyoming.
Chapter 11 Petition Date: June 28, 2020
Court: United States Bankruptcy Court
Southern District of Texas
Forty-one affiliates that concurrently filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Chesapeake Energy Corporation (Lead) 20-33233
Brazos Valley Longhorn Finance Corp. 20-33234
Brazos Valley Longhorn, L.L.C. 20-33236
Burleson Sand LLC 20-33252
Burleson Water Resources, LLC 20-33238
Chesapeake AEZ Exploration, L.L.C. 20-33235
Chesapeake Appalachia, L.L.C. 20-33247
Chesapeake E&P Holding, L.L.C. 20-33237
Chesapeake Energy Louisiana, LLC 20-33240
Chesapeake Energy Marketing, L.L.C. 20-33244
Chesapeake Exploration, L.L.C. 20-33239
Chesapeake Land Development Company, L.L.C. 20-33262
Chesapeake Louisiana, L.P. 20-33242
Chesapeake Midstream Development, L.L.C. 20-33246
Chesapeake NG Ventures Corporation 20-33254
Chesapeake Operating, L.L.C. 20-33249
Chesapeake Plains, LLC 20-33260
Chesapeake Royalty, L.L.C. 20-33251
Chesapeake VRT, L.L.C. 20-33241
Chesapeake-Clements Acquisition, L.L.C. 20-33264
CHK Energy Holdings, Inc. 20-33232
CHK NGV Leasing Company, L.L.C. 20-33248
CHK Utica, L.L.C. 20-33250
Compass Manufacturing, L.L.C. 20-33257
EMLP, L.L.C. 20-33265
Empress Louisiana Properties, L.P. 20-33269
Empress, L.L.C. 20-33255
Esquisto Resources II, LLC 20-33243
GSF, L.L.C. 20-33267
MC Louisiana Minerals, L.L.C. 20-33253
MC Mineral Company, L.L.C. 20-33256
Midcon Compression, L.L.C. 20-33263
Nomac Services, L.L.C. 20-33270
Northern Michigan Exploratory Company, L.L.C. 20-33271
Petromax E&P Burleson, LLC 20-33261
Sparks Drive SWD, Inc. 20-33245
WHE AcqCo., LLC 20-33268
WHR Eagle Ford, LLC 20-33258
WildHorse Resources II, LLC 20-33259
Wildhorse Resources Management Company, LLC 20-33266
Winter Moon Energy Corporation 20-33272
Judge: Hon. David R. Jones
Debtors'
Genaral
Bankruptcy
Counsel: Patrick J. Nash, Jr., P.C.
Marc Kieselstein, P.C.
Alexandra Schwarzman, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: patrick.nash@kirkland.com
marc.kieselstein@kirkland.com
alexandra.schwarzman@kirkland.com
Debtors'
Local
Bankruptcy
Counsel: Matthew D. Cavenaugh, Esq.
Jennifer F. Wertz, Esq.
Kristhy M. Peguero, Esq.
Veronica A. Polnick, Esq.
JACKSON WALKER L.L.P.
1401 McKinney Street, Suite 1900
Houston, Texas 77010
Tel: (713) 752-4200
Fax: (713) 752-4221
Email: mcavenaugh@jw.com
jwertz@jw.com
kpeguero@jw.com
vpolnick@jw.com
Debtors'
Financial
Advisors &
Investment
Bankers: ROTHSCHILD & CO
- AND -
INTREPID FINANCIAL PARTNERS
Debtors'
Restructuring
Advisor: Jeff Stegenga
John L. Stuart
Matthew Henry
Jay Herriman
ALVAREZ & MARSAL NORTH AMERICA, LLC
2100 Ross Avenue, 21st Floor
Dallas, Texas 75201
United States
www.alvarezandmarsal.com
Email: jstegenga@alvarezandmarsal.com
jstuart@alvarezandmarsal.com
mhenry@alvarezandmarsal.com
jherriman@alvarezandmarsal.com
Debtors'
Notice,
Claims, &
Balloting
Agent: EPIQ CORPORATE RESTRUCTURING, LLC
https://dm.epiq11.com/case/chesapeake
Debtors'
Tax Advisor: ERNST & YOUNG LLP
Counsel to the Board: WACHTELL, LIPTON, ROSEN & KATZ
Total Assets as of December 31, 2019: $16,193,000,000
Total Debts as of December 31, 2019: $11,792,000,000
The petitions were signed by Domenic J. Dell'Osso, Jr., executive
vice president and chief financial officer.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
A full-text copy of the Chesapeake Energy's petition is available
for free at PacerMonitor.com at:
https://is.gd/pqfpBg
Consolidated List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- --------------
1. Deutsche Bank Trust Company 5.5% Convertible $1,064,225,000
Americas Senior Notes Due
Attention: Corporates Deal 2026
Team Manager – Chesapeake
Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
2. Deutsche Bank Trust 7.00% Senior $623,595,000
Company Americas Notes Due 2024
Attention: Corporates Deal
Team Manager –
Chesapeake Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
3. Deutsche Bank Trust 4.875% Senior $271,759,000
Company Americas Notes Due 2022
Attention: Corporates Deal
Team Manager – Chesapeake
Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
4. Deutsche Bank Trust 8.00% Senior $252,747,000
Company Americas Notes Due 2027
Attention: Corporates Deal
Team Manager - Chesapeake Energy
Corporation Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
5. Deutsche Bank Trust 8.00% Senior $246,474,000
Company Americas Notes Due 2025
Attention: Corporates
Deal Team Manager –
Chesapeake Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
6. The Bank of New York 6.625% Senior $176,483,000
Mellon Trust Company, N.A. Notes Due 2020
2 N. LaSalle Street
Suite 1020
Chicago, IL 60602
Attn: Thomas P. Gibbons
Title: CEO
Tel: (212) 495-1784
Fax: (312) 827-8542
Email: todd.gibbons@bnymellon.com
7. Deutsche Bank Trust 5.75% Senior $167,743,000
Company Americas Notes Due 2023
Attention: Corporates Deal
Team Manager –
Chesapeake Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
8. The Bank of New York 6.125% Senior $166,350,000
Mellon Trust Company, N.A. Notes Due 2021
2 N. LaSalle Street
Suite 1020
Chicago, IL 60602
Attn: Thomas P. Gibbons
Title: CEO
Tel: (212) 495-1784
Fax: (312) 827-8542
Email: todd.gibbons@bnymellon.com
9. Deutsche Bank Trust 5.375% Senior $126,888,000
Company Americas Notes Due 2021
Attention: Corporates Deal
Team Manager –
Chesapeake Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
10. Deutsche Bank Trust 7.5% Senior $118,937,000
Company Americas Notes Due 2026
Attention: Corporates Deal
Team Manager – Chesapeake
Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
11. The Bank of New York 6.875% Senior $73,598,000
Mellon Trust Company, N.A. Notes Due 2020
2 N. LaSalle Street
Suite 1020
Chicago, IL 60602
Attn: Thomas P. Gibbons
Title: CEO
Tel: (212) 495-1784
Fax: (312) 827-8542
Email: todd.gibbons@bnymellon.com
12. Deutsche Bank Trust 8.00% Senior $45,861,000
Company Americas Notes Due 2026
Attention: Corporates Deal Team Manager –
Chesapeake Energy Corporation
Trust & Agency Services
60 Wall Street, 16th Floor
Mail Stop: NYC60-1630
New York, NY 10005
Attn: James Von Moltke
Title: CFO
Tel: (212) 250-2500
Fax: (732) 578-4635
Email: james.vonmoltke@db.com
13. Halliburton Energy Trade Payables $21,104,132
Services Inc.
3000 N. Sam Houston Pkwy E.
Houston, TX 77032
Attn: Jeff Miller
Title: CEO
Tel: (281) 871-4000
Email: jeff.miller@halliburton.com
14. Williams Companies Inc. Trade Payables $13,854,145
One Williams Center
PO Box 2400
Tulsa, OK 74102-2400
Attn: Alan S. Armstrong
Title: President & CEO
Tel: (918) 573-2000
Fax: (901) 761-1092
mail: alan.armstrong@williams.com
15. Enterprise Crude Oil LLC Trade Payables $6,469,804
1100 Louisiana St
Houston, TX 77002
Attn: Brent Secrest
Title: EVP & Chief Commercial Officer
Tel: (713) 381-6500
16. Eagle Ford Gathering LLC Trade Payables $4,984,951
1999 Bryan St.
Ste. 900
Dallas, TX 75201
Attn: Bruce Darter
Title: VP
Tel: (713) 369-8783
Email: bruce_darter@kindermorgan.com
17. Hi-Crush Partners LP Trade Payables $4,071,065
1330 Post Oak Blvd.
Suite 600
Houston, TX 77056
Attn: Phil McCormick
Title: CFO
Tel: (713) 980-6200
Email: pmccormick@hicrush.com
18. Baker Hughes Trade Payables $3,586,155
A GE Company LLC
17021 Aldine Westfield Rd
Houston, TX 77073
Attn: Lorenzo Simonelli
Title: CEO
Tel: (713) 439-8600
Email: Lorenzo.Simonelli@bakerhughes.com
19. Schlumberger Technology Corp. Trade Payables $2,630,025
3600 Briarpark Drive
Houston, TX 77042
Attn: Olivier Le Peuch
Title: CEO
Tel: (281) 285-8500
Email: lepeuch1@slb.com
20. B&L Pipeco Services Inc. Trade Payables $2,354,421
20465 Texas 249 Access Rd #200
Houston, TX 77070
Attn: Steve Tait
Title: CEO
Tel: (281) 955-3500
Email: Steve.Tait@blpipeco.com
21. Patterson-UTI Drilling Trade Payables $2,282,158
Company LLC
10713 West Sam Houston Parkway North
Suite 800
Houston, TX 77064
Attn: Andrew Hendricks
Title: CEO
Tel: (281) 765-7100
Fax: (281) 765-7175
Email: andy.hendricks@patenergy.com
22. DNOW LP Trade Payables $2,154,723
7402 N. Eldridge Parkway
Houston, TX 77041
Attn: Richard Alario
Title: CEO
Tel: (281) 823-4700
Fax: (800) 228-2893
Email: richard.alario@dnow.com
23. Momentum Pressure Control LLC Trade Payables $1,644,392
199 Corporate Rd
Longview, TX 75603
Attn: Jody Kindred
Title: President
Tel: (903) 643-3700
Fax: (903) 643-3101
Email: jody@axisenergyservices.com
24. Kustom Koncepts Inc. Trade Payables $1,636,771
1351 N. Derrick Dr.
Casper, WY 82604
Attn: Cameron Wagner
Title: President
Tel: (307) 472-0818
Fax: (307) 472-0444
Email: cameron@kustommfg.com
25. U.S. Bank National Association 6.875% Senior $1,577,000
8 Greenway Plaza, Suite 1100 Notes Due 2025
Corporate Trust Services
Houston , TX 77046
Attn: Andrew Cecere
Title: President & CEO
Tel: (651) 466-3000
Email: Andrew.Cecere@usbank.com
26. South Texas Fencing Trade Payables $1,503,625
& Trenching Services
3248 W Highway 44
Alice, TX 78332
Attn: Armando Benavides
Title: CEO
Tel: (972) 367-3533
Fax: (361) 661-1724
Email: Benavides_armando@yahoo.com
27. Eagle Ford Pipeline LLC Trade Payables $1,500,891
333 Clay Street
Suite 1600
Houston, TX 77002
Attn: Jeremy Goebel
Title: EVP, Commercial
Tel: (713) 646-4100
Email: jlgoebel@paalp.com
28. Pinnergy Ltd. Trade Payables $1,457,070
111 Congress Avenue
Suite 2020
Austin, TX 78701
Attn: Justin Taylor
Title: CFO
Tel: (512) 343-8880
Fax: (512) 343-8885
Email: jtaylor@pinnergy.com
29. Texas Fueling Services Inc. Trade Payables $1,367,717
4220 Laura Koppe
Houston, TX 77016-5029
Attn: Mason Duncan
Title: CEO
Tel: (281) 443-2336
Fax: (832) 203-5954
Email: mason.duncan@texasfueling.com
30. Tetra Technologies Trade Payables $1,274,115
24955 Interstate 45 Nort
The Woodlands, TX 77380
Attn: Elijio V. Serrano
Title: CFO
Tel: (281) 367-1983
Email: eserrano@tetratec.com
31. Complete Energy Services Trade Payables $1,243,600
1001 Louisiana Street
Suite 2900
Houston, TX 77002
Attn: James Spexarth
Title: CAO
Tel: (713) 654-2200
Fax: (713) 654-2205
Email: james.spexarth@superiorenergy.com
32. Flynn Energy Transport Inc. Trade Payables $1,139,747
342 East Macedonia Rd
Towanda, PA 18848
Attn: Bryon Musick
Title: Controller
Tel: (570) 265-1431
Fax: (570) 265-1449
Email: controller@flynnenergy1.net
33. Park Energy Services LLC Trade Payables $1,029,340
1015 North Broadway Avenue
Suite 301
Oklahoma City, OK 73102
Attn: John D. Seldenrust
Title: CEO
Tel: (405) 896-3169
Email: jseldenrust@parkenergyservices.com
34. Seaboard International Inc. Trade Payables $1,001,502
13822 Furman Road
Suite J
Houston, TX 77047
Attn: Terri Conner
Title: Executive Assistant to President
Tel: (713) 644-3535
Email: terri.conner@mail.weir
35. USA Compression Partners LLC Trade Payables $980,314
111 Congress Avenue
Suite 2400
Austin, TX 78701
Attn: Jim Jones
Title: VP Sales
Tel: (412) 600-9026
Email: jjones@usacompression.com
36. Hammer Down Oilfield Trade Payables $940,667
Services LLC
16731 Huebner Rd.
San Antonio, TX 7824
Attn: Timothy Jimenez
Title: Director
Tel: (361) 433-8383
Email: tjimenez@hdoservices.com
37. Rolfson Oil LLC Trade Payables $940,617
2414 Schilke Dr
Watford City, ND 58854
Attn: Jason Burger
Title: Owner
Tel: (954) 410-3235
Email: jburger@rolfsonoil.com
38. NewPark Fluids Systems Trade Payables $903,166
21920 Merchants Way
Katy, TX 77449
Attn: Gregg Piontek
Title: CFO
Tel: (281) 754-8600
Email: greggpiontek@newpark.com
39. Chief Oil & Gas LLC JIB Payables $882,630
8111 Westchester Drive
Suite 900
Dallas, TX 75225
Attn: John Hinton
Title: CFO
Tel: (214) 265-9590
Email: jhinton@chiefog.com
40. Cactus Wellhead LLC Trade Payables $858,654
920 Memorial City Way
Suite 300
Houston, TX 77024
Attn: Scott Bender
Title: CEO
Tel: (713) 626-8800
Email: scott.bender@cactuswellhead.com
41. Key Energy Services LLC Trade Payables $791,665
1301 McKinney
Ste 1800
Houston, TX 77010
Attn: Rob Saltiel
Title: CEO
Tel: (713) 651-4300
Email: rsaltiel@keyenergy.com
42. Enerstar Rentals and Trade Payables $785,162
Services Ltd.
3377 South Main Street
Monahans, TX 79756
Attn: Bill Blair
Title: Vice President – Operations
Tel: (570) 279-1589
Email: Bill.Blair@enerstarrentals.com
43. Susquehanna Gas Trade Payables $778,396
Field Services LLC
131 Frantz Road, Box 127
Meshoppen, PA 18630
Attn: Bill Ruark
Title: Owner
Tel: (570) 499-0139
Email: billr@meshoppenstone.com
44. Valveworks USA Inc. Trade Payables $776,289
1650 Swan Lake Road
Bossier City, LA 71111
Attn: Rick Roberts
Title: President
Tel: (318) 425-0266
Fax: (318) 425-0934
Email: rick.roberts@vwusa.us
45. Control Tech USA Ltd. Trade Payables $757,938
22025 Route 14
Troy, PA 16947-8790
Attn: Blair Alfred
Title: CTUSA Operations VP
Tel: (570) 529-6011
Email: balfred@controltechgp.com
46. Thru Tubing Solutions Inc. Trade Payables $745,482
11515 S. Portland Ave.
Oklahoma City, OK 73170
Attn: Roger Schultz
Title: Vice President
Tel: (405) 692-1900
Email: Rschultz@thrutubing.com
47. Total E&P USA Inc Trade Payables Undetermined
1201 Louisiana Street
Suite 1800
Houston, TX 77002
Attn: Jean-Pierre Sbraire
Title: CFO
Tel: (713) 483-5000
Fax: (713) 647-3003
Email: jean-pierre.sbraire@total.com
48. Glass Mountain Pipeline LLC Litigation Undetermined
2626 Cole Ave
Suite 900
Dallas, TX 75204
Attn: Matt Vining
Title: CEO
Tel: 214-880-6000
Fax: (405) 606-4534
Email: mvining@nesmidstream.com
49. Dallas/Fort Worth Litigation Undetermined
International Airport Board
Dallas/Fort Worth International Airport Board
P.O. Box 619428
DFW Airport, TX 75261-9428
Attn: Jim Jackson
Title: Project Manager - Gas & Development
Phone: 972-973-4669
Fax: (972) 973-4601
Email: jjackson@dfwairport.com
50. Diversified Gas & Oil, PLC Legacy Undetermined
414 Summers Street Contractual
Charleston, WV 25301 Obligations
Attn: Laurie J. Knox
Title: Human Resources Business
Tel: (304) 353-5090
Fax: (304) 343-1614
Email: lknox@dgoc.com
CHESTER J. MARINE: Taps Robert L. Marrero as Legal Counsel
----------------------------------------------------------
Chester J Marine, LLC, received approval from the U.S. Bankruptcy
Court for the Eastern District of Louisiana to hire Robert L.
Marrero, LLC as its legal counsel.
The firm's services will include the preparation and filing of a
plan of reorganization and advising Debtor concerning the
administration of its Chapter 11 case.
The firm will be paid at hourly rates as follows:
Robert Marrero, Esq. $350
Associates $150 - $250
Law Clerks $75 - $125
Paralegals $65 - $95
Robert L. Marrero is "disinterested" within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Robert L. Marrero, Esq.
Robert L. Marrero, LLC
401 Whitney Ave., Suite 126
Gretna, LA 70056
Tel: (504) 366-8025
Email: marrero1035@bellsouth.net
About Chester J Marine
Chester J. Marine, LLC, a provider of inland water freight
transportation services, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. La. Case No. 20-11002) on June 4,
2020. At the time of the filing, Debtor disclosed $1,004,125 in
assets and $361,889 in liabilities. Judge Meredith S. Grabill
oversees the case. Debtor has tapped Robert L. Marrero, LLC as its
legal counsel.
CITRUS GROVE: S&P Lowers 2014A, 2014A-T Bond Ratings to 'BB+'
-------------------------------------------------------------
S&P Global Ratings lowered its rating one notch to 'BB+' from
'BBB-' on Public Finance Authority, Wis.' series 2014A multifamily
housing revenue bonds and 2014A-T taxable bonds, issued for Citrus
Grove Apartments LLC, Fla. and Boundary Apartments LLC, N.C.'s
Citrus Grove and East Winds apartments projects, respectively. The
outlook is stable.
"The one-notch downgrade reflects the projects' low liquidity
reserves, coupled with our final assessment of management and
governance, which is, in our view, weak/very weak, and suggests the
obligor may not be able to manage risks effectively," said S&P
Global Ratings credit analyst Emily Avila.
S&P has analyzed the projects' environmental, social, and
governance risks relative to coverage and liquidity, management and
governance, and market position. It views the obligor's governance
risk to be higher than average compared with the sector based on
its lack of risk mitigation policies and strategic plans, which
leaves the projects vulnerable to operational volatility. S&P also
considers the projects' environmental risks to be somewhat elevated
because Citrus Grove Apartments is in a coastal area of the
country. Health and safety concerns related to the COVID-19
pandemic, which S&P considers a social risk under its ESG factors,
and how those risks affect timely debt service payments, will be
minimal for subsidized affordable multifamily housing properties.
As such, the projects' social risks are in line with those of the
sector.
S&P could lower the rating further if expenses were to increase
without a commensurate increase in revenue streams, causing MADS
coverage to decrease further, or if occupancy were to return to
historically low levels, causing vacancy losses and delinquent rent
to increase and financial performance to deteriorate.
"Although unlikely during the outlook period, S&P could raise the
rating if the REAC score at Citrus Grove were to improve
significantly and if a trend of significantly stronger MADS
coverage were to develop.
COSTAR GROUP: S&P Assigns 'BB+' Long-Term ICR; Outlook Stable
-------------------------------------------------------------
S&P Global Ratings assigned a 'BB+' long-term issuer credit rating
to U.S.-based CoStar Group Inc., and its 'BB+' issue-level rating
and '3' recovery rating to the proposed senior unsecured notes.
S&P expects CoStar to maintain its strong position in the
fast-growing U.S. CRE information services and online marketplace.
CoStar benefits from the technology disruption transforming the
large, cyclical, and highly fragmented real estate industry and
increasing demand for CRE marketing and information services. The
company has invested about $5.4 billion over the last 30 years to
amass one of the largest CRE datasets, software platforms, and
online real estate marketplaces in the U.S. Its dataset includes
information on leasing, sales, comparable sales, tenants, demand
statistics, and digital images.
CoStar's competitive advantages include:
-- Its large proprietary and robust CRE datasets, which are
difficult to replicate. In S&P's opinion, CoStar is the only
domestic CRE information services provider of a sufficient scale,
with the unique ability to provide actionable insights or
end-to-end productivity improvement solutions.
-- The network effect of a large community of users--brokers,
developers, landlords, property managers, renters, financial
institutions, appraisers, etc.--that provides entry barriers. It
enables CoStar to deliver comprehensive industry solutions,
optimize the online marketplace experience, and develop deep
customer and industry insights to drive product adoption and
development. Furthermore, S&P believes the quality and accuracy of
the datasets also benefit from its network. In addition to
continuous updates from its large research department of 1,300
people and third-party data providers, stakeholders such as
landlords and brokers have a vested interest to contribute data to
ensure the accuracy of their information listed on the CoStar
platform.
-- High-80% annual subscription revenue and 95% renewal rates that
allow the company to focus on revenue and margin growth. Although
96% of the company's revenue is subscription-based, some rating
peers have annual subscription rates in the 90% area and EBITDA
margins that are more than 1000 basis points higher. CoStar's
metrics are affected by its growth investment and advertising
spending on its online marketplaces.
Key risks facing CoStar include:
-- Revenue concentration in the cyclical CRE industry.
-- Operating risk associated with the company's acquisition growth
strategy, which often has valuation multiples well above 10x EBITDA
or multiples of revenue. A few modest-sized acquisitions can
quickly deplete the company's healthy cash reserves. Additionally,
regulatory or anti-competition concerns could limit tuck-in
acquisitions and result in higher-risk acquisitions that extend the
company's focus to new product categories or geographies.
-- The uncertain evolution of its key end-markets that have
significant growth potential, and competitive challenges from
well-funded new property technology (PropTec) entrants or
well-established firms. However, S&P believes CoStar's technology
and data are difficult and costly to replicate in the
intermediate-term.
Despite the global recession, S&P expects continued strong
operating performance over the next 12-24 months.
Organic revenue compound annual growth rate was 16% over the past
five years and reported FOCF generation improved about 300% over
the same period. Although S&P expects growth to moderate in the
recession, credit measures will remain healthy. Over the next two
years, S&P expects annual revenue growth of 9%-14%, adjusted EBITDA
margins in the low- to mid-30% area, and annual reported FOCF of
more than $350 million.
CoStar has greater than 96% subscription-based revenue and high
renewal rates of more than 90%, which provides good free cash flow
visibility. Its fixed cost base creates operating leverage as the
company scales, but S&P expects the company to continue investing
internally in its platforms and marketing campaigns. Over time,
given the complementary product suites and solutions, higher
cross-selling and upselling should also drive profitability.
The strong balance sheet provides the capacity for ongoing mergers
and acquisitions (M&A).
Pro forma for the transaction CoStar had more than $3.6 billion
cash. There is a significant cushion to S&P's 2.5x net leverage
downgrade threshold, which provides the company flexibility to
pursue M&A at the 'BB+' rating. The company has historically
maintained a conservative financial policy and operated with a
gross leverage range of 1x-3x. Although there is a potential that
leverage temporarily increases above 3x for an opportunistic
acquisition.
CoStar will use proceeds from the proposed notes issuance to repay
$745 million of borrowings under its $750 million revolving credit
facility and for general corporate purposes. Concurrently, the
company will amend and extend the credit facility. Previous
revolver borrowings, cash flow, and proceeds from equity issuance
were used to fund the cash balance or acquisitions.
S&P expects the company will continue consolidating the industry,
pursuing acquisitions of businesses with overlapping content and
customers. CoStar has deployed roughly $1.2 billion in acquisitions
over the last eight months, including STR, RentPath, and Ten-X.
STR, purchased for $450 million in the fourth quarter of 2019,
provides analytics capabilities for the hotel industry. S&P expects
modest revenue declines from this business over the next 12 months
given the extremely challenging environment for hotel operators.
RentPath was acquired for $588 million in a distressed purchase in
February after filing for bankruptcy due to high leverage and
competitive pressures from other marketplace listing services, such
as CoStar's Apartments.com. The acquisition is undergoing
regulatory review and is expected to close in the second half of
2020. The Ten-X purchase for $190 million was announced in May 2020
and provides countercyclical solutions for distressed properties
through online auctions. The Tex-X acquisition is expected to close
shortly. Although these acquisitions will help to extent CoStar's
platform and earnings over time, on a stand-alone basis they are
unprofitable or have profit margins much lower than those of
CoStar.
"The outlook is stable, reflecting our view that CoStar will
continue to benefit from its leading position in its core U.S.
market, and generate adjusted EBITDA margins above 32%, reported
free operating cash flow (FOCF) of more than $350 million per year,
and sustains its adjusted debt to EBITDA below 2.5x. We believe an
upgrade is more likely than a downgrade over the next 12-24
months," S&P said.
Over the next 12-24 months, S&P could raise the rating to 'BBB-' if
it develops greater confidence that CoStar will meet the rating
agency's 2022 base-case expectations, with revenues approaching $2
billion and adjusted EBITDA over $670 million.
"In this scenario, we would feel more confident about its ability
to sustain revenue and profit margins through an economic down
cycle and that EBITDA margins will steadily improve with greater
revenue scale and diversity, despite the need for ongoing business
investments. An upgrade would also be predicated on our belief that
CoStar can sustain improved operating performance and that its
financial policy would remain conservative," S&P said.
“A downgrade would most likely come from operating challenges or
competitive losses that reduce platform usage, subscribers, or
profitability. Additionally, we could lower the rating if net
leverage increases and is expected to be sustained above 2.5x as a
result of sizable acquisitions that significantly deplete the
company's cash balances, or because of a change in financial
policy," the rating agency said.
CPG INTERNATIONAL: S&P Upgrades ICR to 'B+' on IPO; Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
outdoor living building products manufacturer CPG International LLC
d/b/a The Azek Co. to 'B+' from 'B'. At the same time, S&P removed
the ratings from CreditWatch, where it placed them with positive
implications on June 9, 2020, following the IPO launch.
CPG raised net proceeds of $817 million from its IPO that closed on
June 11, 2020. The company will utilize most of the proceeds from
the IPO to substantially reduce its $1.25 billion of debt,
including the redemption of its senior notes and prepayments under
its secured facilities.
Meanwhile, S&P raised the issue-level rating on the company's
senior secured term loan to 'BB-' from 'B', in conjunction with the
upgrade on the issuer credit rating and reflecting improved
recovery prospects.
CPG fast-tracked its deleveraging by using the majority of the IPO
proceeds toward debt reduction.
The upgrade on CPG reflects the substantial reduction in its
overall debt load, based on the intended use of the IPO proceeds.
The company plans to use the $817 million in net proceeds to redeem
its 9.5% $350 million outstanding unsecured notes, prepay $325
million of its $804 million outstanding senior secured term loan,
and use the remaining proceeds for general corporate purposes
including the partial or full repayment of its revolving credit
facility draw (unrated) and investment in business initiatives. The
company had about $1.25 billion of debt outstanding on March 31,
2020. The proposed pay downs will reduce the debt burden by more
than half, which in S&P's view strengthens the company's overall
financial profile and capital structure.
Despite recessionary pressures, over the next 12 months adjusted
leverage will be drastically lower than S&P's pre-IPO expectations
and CPG will continue generating stable free cash flow.
S&P expects softness in demand for CPG's products as a result of
recessionary conditions will cause some deterioration in its
earnings generation in the second half of this fiscal year and
possibly into early next year. The slowdown in demand had only a
modest impact on CPG's residential products segment revenues (over
80% of total sales and consolidated EBITDA), in April and May. This
could be partly attributed to the largely outdoor application of
CPG's products, which has enabled in-progress projects to be
completed or new ones initiated despite social distancing measures
in place during these months. However, revenues in the commercial
segment were more severely affected due to decreased overall levels
of commercial construction activity.
Further, sustained high unemployment levels and depleted consumer
confidence coupled with lingering fears of a resurgence of the
virus outbreak, may result in high value remodel activities such as
those involving CPG's products to be likely deferred. Therefore,
S&P expects revenues for CPG to be flat to down 5% for this fiscal
year. Thereafter, it thinks the increasing trend toward outdoor
living investments and conversion from wood-based to composite
decking products will help drive mid-single-digit growth in
revenues for fiscal 2021 and beyond.
S&P also expects EBITDA generation to be somewhat lower this year
due to the demand slowdown, though partially helped by tailwinds
from lower input costs, particularly resin-based inputs. Given the
company's high variable cost structure, it still expects adjusted
EBITDA margins to remain around historical levels of above 20% and
CPG to generate adjusted EBITDA in the $150 million to $165 million
range for each of the fiscals 2020 and 2021.
For the 12 months ended March 31, 2020, CPG's adjusted leverage was
6.8x. Pro forma for the proposed debt paydown and combined with its
earnings expectations for the company, S&P now expects adjusted
debt to EBITDA to be in the 3x-4x range (including the rating
agency's adjustments for leases and other obligations) over the
next 12 months, versus the rating agency's pre-IPO expectations of
the 7x-8x range. S&P expects the company to continue to generate
stable free cash flows, helped by lower working capital needs in a
slow demand environment.
S&P continues to view the company as financial sponsor owned,
though expect the financial policy to be consistent with
maintaining leverage below 5x
Post-IPO, the existing private equity owners Ares Management and
Ontario Teachers' Pension Plan still have approximately 72%
ownership in CPG.
"Given this still large stake in CPG, we continue to view the
company as financial sponsor owned. However, we now believe CPG's
sponsors to be committed to maintaining adjusted leverage below 5x,
with the risk of re-leveraging low," S&P said.
"Our stable outlook on CPG is based on our expectations that its
adjusted leverage will be in the 3x-4x range over the next 12
months, while EBITDA interest coverage will improve to above 4x,
reflecting substantial debt reduction and interest cost savings. We
expect the company will achieve these metrics, despite recessionary
pressures and depressed demand conditions," the rating agency
said.
Downside scenario
S&P may lower its rating over the next 12 months if:
-- The company undertook financial policies, including debt
financed dividend distributions or acquisitions such that leverage
rose to the 4x-5x range; or
-- Business conditions deteriorated such that S&P expects EBITDA
to decline by over 15%, causing leverage to remain above 4x.
Upside scenario
S&P may raise the ratings over the next 12 months if:
-- The company maintains adjusted leverage well below 4x and S&P
expects the financial sponsors to relinquish control over the
intermediate term; or follow on public offerings result in their
ownership declining to below 40%; or
-- Although less likely, S&P's view of the company's business
prospects improves due to increased scale of operations and lower
earnings volatility.
CROCKETT COGENERATION: S&P Raises Note Rating to 'B+'
-----------------------------------------------------
S&P Global Ratings raised its project rating on Crockett
Cogeneration L.P. (Crockett) to 'B+' from 'CCC+' following the
rating action on Pacific Gas & Electric Co. (PG&E). The rating is
lower than it was prior to PG&E's bankruptcy because although its
minimum coverage has improved due to higher market heat rates, the
project's liquidity levels are no longer as strong as they were
before, resulting in the project no longer surviving five years of
S&P's downside stresses.
S&P has revised the recovery rating to '2' (70%-90%; rounded
estimate 70%) from '3' (50%-70%; rounded estimate: 55%), indicating
its expectation of substantial rather than meaningful recovery, as
S&P has updated its default scenario.
California-based Crockett Cogeneration is a 240-megawatt (MW)
natural-gas-fired electric cogeneration plant project in Crockett,
Calif., about 25 miles east of San Francisco. Crockett is a
qualifying facility selling power to Pacific Gas and Electric Co.
(PG&E) under a power purchase agreement (PPA) that expires on May
26, 2026, and sells steam to C&H Sugar Co. Inc. under an agreement
that also expires in 2026. The project is ultimately owned by
Blackrock (92%) and Osaka Gas (8%).
PG&E was assigned a 'BB-' rating on its expected emergence from
bankruptcy, which S&P adjusts to a counterparty dependency cap of
'bb'. S&P assigned PG&E a 'BB-' ICR on its expected successful
emergence from bankruptcy. S&P applies a one-plus notch of uplift
to derive a counterparty cap of 'bb', because it can apply a single
notch of uplift to a 'BB' category revenue counterparty if the
project delivers an essential service (the rating agency considers
power to be such a service) and there is a regulatory precedent
that supports counterparty payments. PG&E and its subsidiary
utility have weathered two bankruptcies in the last two decades and
it has honored its power contracts in both cases, which leads S&P
to implement some uplift. In addition, S&P believes that contracts
with existing gas power plants will be honored as they become
increasingly essential for providing capacity in California, where
increasing amounts of variable renewable energy on the grid needs
to be balanced with dispatchable power or storage in an environment
where new gas plants are not being built, storage capacity is
insufficient, and imports may be inadequate.
The rating on Crockett is below what is was before PG&E's default
due to lower liquidity levels. Before PG&E filed for bankruptcy,
S&P had rated Crockett at 'BB-' with a negative outlook. The rating
is one notch lower because although in S&P's revised forecast
minimum coverage of 1.05x in 2020 is higher than the previous
minimum of 1.0x before the utility filed, the project's liquidity
has been reduced, resulting in a default within five years under
the rating agency's downside case.
S&P had previously assumed $41.9 million of total liquidity that
could be used for debt service and operational expenses. Of this
amount, $23 million was from a $25 million letter of credit (LOC),
which was terminated on March 6, 2020. (Crockett also had a $5
million working capital facility, but that was terminated back in
September 2018). The LOC had backed the DSR ($12 million) and a
security requirement with the State Lands Commission of California
($2 million). Prior to termination, the project funded these
accounts with $14 million of cash on hand. S&P therefore now
assumes liquidity of $24.9 million in its forecast given
approximately $11.9 million in the cash-funded debt service
reserve, approximately $5.8 million cash funded seasonal debt
service account, approximately $6.3 million cash in revenue
account, and approximately $824,000 of unrestricted cash for the
beginning of the rating agency's 2020 forecast.
S&P's outlook is stable given expected coverage of below 1.1x from
2020 to 2022, but with higher coverages expected thereafter. It
expects coverage levels to remain below 1.1x in the next few years,
and that the project will reserve sufficient cash to purchase
carbon allowances to meet its regulatory obligation, and therefore
recommending a stable outlook. Coverage is forecast to be above
1.4x beginning in 2023, as debt service begins to decline more
significantly (e.g., 2023's is about 30% lower than 2022's), so a
positive outlook could apply in the next year or two, all else
equal.
Coverage levels in the near term are driven by S&P's long-term
average market heat rate assumption of 7,900 btu/kWh. S&P's
coverage has improved from before PG&E's bankruptcy because of
improvements in short-run avoided cost (SRAC) pricing driven by an
overall increase in the market heat rate. Coverage would have been
higher if not for S&P's revised assumption of higher operating and
maintenance (O&M) costs based on an increase in actual expenses.
About half of Crockett's revenue is exposed to SRAC pricing, which
is primarily driven by the market heat rate, and natural gas
prices. Management estimates about a $900,000 improvement in
margins for every 100 btu/kWh increase in the market heat rate. The
market heat rate is driven by power prices and natural gas prices,
but also hydro power and renewable energy generation. Power price
dynamics are affected by weather, demand, and the generation load
profile. The market heat rate deteriorated by nearly 50% to a low
of 5,906 in 2017 from a high of 8,769 in 2015, reflecting--in
part--the impact of stronger-than-normal hydro generation from a
series of Pacific storms and improved snowpack conditions coupled
with growing solar and wind deployment in the state. The market
heat rate has since shown improvement ramping up to an average of
7,310 in 2018 and an average of 8,284 for year 2019, despite strong
snowpack conditions that filled major reservoirs to capacity. Thus,
S&P has raised its long-term market heat rate assumption to 7,900
from 7,300 in its October 2018 review.
So far, the average market heat rate for year-to-date May 2020 is
7,473. This is likely lower due to the reduced demand from
COVID-19, as the reduction in commercial demand was not offset by
increased residential demand. Decreased demand likely exacerbated
the impact that the oversupply of solar has on lowering market heat
rates. However, demand and wholesale prices rebounded in May
following high temperatures and the beginning of reopening in
California on May 7. The 2020 rainfall is also less than average,
which should result in less hydro generation. This also means that
the state will be more reliant on imports in the summer months.
California's peak demand is driven by increased air conditioning
use as summer heat rises.
California carbon compliance obligations suppress energy margins
and coverage levels. While energy margins are improving, S&P still
forecasts that they will be negative based on the cost of carbon
that each MWh produces. This highlights that when factoring in the
cost of carbon, Crockett is not receiving enough energy revenue to
cover its true marginal cost of production, and thus its positive
gross margins are based on its capacity revenues. It also shows the
importance of the project reserving or spending excess cash flows
to purchase sufficient carbon allowances to meet its regulatory
obligations.
The current cap-and-trade system under AB 32 expires in 2020. On
July 17, 2017, California passed AB 398, which extends the program
until 2030. In December 2018, the California Air Resources Board
(CARB) approved an amendment to AB 398 and granted allowances for
the 3rd Compliance period (2018-2020) and through the end of the
contract (2021-2029). It also provided a price ceiling on allowance
prices. Historically prices have traded closer to the floor price.
However, the project has locked in pricing through 2021 at an
average rate of $17/ton, and S&P expects that price to grow by
inflation.
The structure of the compliance period in the extended period is
the same as before, and S&P continues its assumption of treating
carbon compliance costs as an annual expense. Although an amendment
to AB 398 granted allowances for some legacy contracts, such as
Panoche's, they were not granted to cover Crockett's electricity
load because the cost of emissions is supposed to be incorporated
in SRAC prices. Each compliance period is three years, with 30% of
the first year's emissions due in year one, 30% of the second
year's emissions due in year two, and 70% of the two previous
years' emissions and 100% of the third year's emissions due in year
three. The compliance certificates are always due the following
year in November, so in years two through four; thus, there is a
lag of one year.
S&P continues to expense carbon costs the year they are generated
because it reflects the true cost of generation and because the
project is reserving cash or using excess cash flows, as well as
using operational cash flows, to purchase certificates to be able
to meet each year's compliance obligation. For example, even though
the project's DSCR (which does not annualize GHG expenses) was over
1.20x, the owners did not take a distribution in January or April
of 2020 because they are saving up for the purchase of what is
expected to be around $30 million of carbon allowances due in
November 2021, fulfilling the third year of the third compliance
period. Importantly, while the project believes it will have
sufficient cash reserves to fulfill the carbon compliance
obligations, it is contingent on entering a new LOC facility for a
DSR, which it believes it can after PG&E emerges from bankruptcy,
thereby unlocking cash for carbon allowances.
S&P's recovery expectations are higher due to the expected
resolution of PG&E's bankruptcy. The recovery rating has improved
to '2' from '3' now that S&P no longer assumes the default scenario
is a rejection of the contract, which was the rating agency's most
likely default scenario while PG&E was in bankruptcy. Because that
possibility is now more remote and there is value in the PPA, S&P
thinks the recovery potential is higher. Further, as noted above,
S&P believes that existing gas power plants (and other dispatchable
power) will be increasingly essential for providing capacity in
California due to the need to quickly replace significant amounts
of variable solar generation when the sun sets.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Greenhouse gas emissions
The stable outlook on Crockett reflects a long-term average market
heat rate assumption of 7,900 and that the project will reserve
sufficient cash to purchase carbon allowances to meet its
regulatory obligations. S&P forecasts that the project's minimum
DSCR will be 1.05x in 2020, and remain below 1.1x during the next
few years.
"We could lower the rating if the long-term average market heat
rates declines to below 7,500 all else equal, or carbon credit
prices escalate, or given the age of the plant, operational issues
lead to an increase in O&M and major maintenance expenses or a
reduction in capacity payments. We could also lower the rating if
we do not forecast that the project will have sufficient cash
reserves to purchase sufficient carbon allowances. We could lower
the rating if the project's minimum coverage declined to below
1.0x," S&P said.
"We could raise the rating if the average market heat rate
increases to 9,000 all else equal, or if there were a combination
of lower greenhouse gas expenses and operating expenses. We could
raise the rating if the project's minimum coverage improved to the
upper end of the 1.0x-1.4x range," the rating agency said.
CROSBY US: Moody's Alters Outlook on B3 CFR to Negative
-------------------------------------------------------
Moody's Investors Service affirmed the ratings of Crosby US
Acquisition Corp., including the B3 corporate family rating, B3-PD
probability of default rating, B2 senior secured first lien debt
rating and Caa2 second lien debt rating. The outlook was changed to
negative.
RATINGS RATIONALE
The ratings, including the B3 CFR, reflect Moody's expectation of
challenged end markets and the broad economic deterioration
accelerated by the coronavirus to negatively impact Crosby's
earnings and cash flow, weakening credit metrics into 2021. Moody's
expects debt/EBITDA to remain above 8x (all ratios after Moody's
standard adjustments) through 2021, which is elevated for Crosby's
business risk given a majority of its end markets are cyclical and
capital intensive. As well, the company has modest scale in a
fragmented and highly competitive landscape that exerts margin
pressures. Moody's believes capital spending by energy sector
customers (about 26% of revenue) and demand for new construction
projects are likely to be meaningfully challenged for some time.
Moreover, the uncertain timing and magnitude of the effects of the
coronavirus creates significant uncertainty around business
conditions and demand in all other sectors into which Crosby sells,
as strong business conditions are needed to support the company's
very high leverage.
Crosby has good brand recognition, a global footprint and
diversification by product and end market. The company's products
are often critical in nature with a high cost of failure for the
projects they support, providing a good source of aftermarket
demand. This should support about mid-teens range EBITA margins
aided by cost reduction efforts implemented to temper the earnings
headwinds, including SG&A reductions and operational efficiency
initiatives undertaken over the past year.
Liquidity is adequate for the near term, based on expectations for
Crosby to maintain ample availability on its $70 million revolver,
of which $56 million remains undrawn, and unrestricted cash.
Following a cash use of about $16 million in Q1 2020, Moody's
believes the cash balance of $64 million as of March 2020 has since
increased as a result of $10 million drawn on the revolver and
efforts to preserve cash to help offset the coronavirus impacts.
This was mainly through working capital management, cost reduction
measures and substantially reducing capital expenditures to
maintenance levels. However, Moody's expects cash to be consumed by
working capital needs and a ramp up in capex as demand picks up.
Free cash flow is anticipated to moderate towards break-even levels
in 2020 in the face of the anticipated earnings pressures.
In terms of corporate governance, the company's high leverage in
part reflects its private equity ownership. Event risk is high for
potential dividends to the sponsor or debt-funded acquisitions that
would further increase the leverage, weaken liquidity or bring
integration risks. Moody's also notes that the integration of
Gunnebo Industries, a European manufacturer of lifting products
acquired in May 2019, is occurring amid deteriorating market
conditions that likely will slow the pace to achieve the company's
targeted acquisition synergies.
The negative outlook reflects Moody's expectation of significant
downward pressure on Crosby's revenue and earnings driven by weak
demand fundamentals, particularly in its oil & gas markets, and the
negative impact of the coronavirus on its business and broader
industrial end markets. These factors could lead to weaker than
expected liquidity and will sustain the company's high financial
leverage, which Moody's views as likely to exceed 9x in 2020, from
about 8x, before a gradual economic recovery in 2021.
Moody's took the following actions on Crosby US Acquisition Corp.:
Affirmations:
Issuer: Crosby US Acquisition Corp.
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Secured 1st Lien Bank Credit Facility, Affirmed B2 (LGD3)
Senior Secured 2nd Lien Bank Credit Facility, Affirmed Caa2 (LGD5)
Outlook Actions:
Issuer: Crosby US Acquisition Corp.
Outlook, Changed to Negative from Stable
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded with deteriorating liquidity,
including weaker than expected free cash flow or a reliance on
revolver borrowings. The ratings could also be downgraded with
expectations of business conditions to worsen, leading to further
deterioration in credit metrics. This includes a lack of progress
with meaningfully reducing debt/EBITDA and EBITDA fewer capital
expenditures to interest expected below 1x. A more aggressive
financial policy, including debt-fund shareholder distributions or
acquisitions that increase leverage, would also exert downwards
rating pressure.
The ratings are unlikely to be upgraded in the near term and at
least until market conditions improve along with the broader
macroeconomic environment. Over time, the ratings could be upgraded
with sustained improvement in operating performance such that
Moody's expects debt/EBITDA to be sustained below 5x,
EBITA-to-interest above 1.5x and maintenance of good liquidity,
including free cash flow to debt in the high single-digit range.
The principal methodology used in these ratings was Manufacturing
Methodology published in March 2020.
Crosby US Acquisition Corp., a subsidiary of Crosby Worldwide Ltd,
is a manufacturer of highly-engineered lifting and rigging
equipment, as well as customized material handling solutions. The
company, based in Dallas, Texas, had annual revenues of
approximately $389 million as of the fiscal year ended December 31,
2019. Pro forma for the May 2019 acquisition of Gunnebo Industrier
Holdings AB, revenues approximated $433 million. Crosby is owned by
affiliates of Kohlberg Kravis Roberts & Co. L.P.
DARIOHEALTH CORP: Cumulative Losses Cast Going Concern Doubt
------------------------------------------------------------
DarioHealth Corp. filed its quarterly report on Form 10-Q,
disclosing a net loss of $9,892,000 on $1,667,000 of revenues for
the three months ended March 31, 2020, compared to a net loss of
$5,376,000 on $2,242,000 of revenues for the same period in 2019.
At March 31, 2020, the Company had total assets of $20,034,000,
total liabilities of $4,608,000, and $15,426,000 in total
stockholders' equity.
The Company said, "We have experienced cumulative losses of
$121,312 from inception (August 11, 2011) through March 31, 2020
and have a stockholders' equity of $15,426 at March 31, 2020. In
addition, we have not completed our efforts to establish a stable
recurring source of revenues sufficient to cover our operating
costs and expect to continue to generate losses for the foreseeable
future. There are no assurances that we will be able to obtain an
adequate level of financing needed for our near term requirements
or the long-term development and commercialization of our product.
These conditions raise substantial doubt about our ability to
continue as a going concern."
A copy of the Form 10-Q is available at:
https://is.gd/Str3XU
DarioHealth Corp., a digital health company, develops and
commercializes patented and proprietary technologies providing
consumers with laboratory-testing capabilities using smart phones
and other mobile devices in the United States, Europe, Australia,
and Canada. The company's flagship product, Dario, also known as
Dario Smart Diabetes Management Solution, is a mobile, real-time,
cloud-based, diabetes management solution based on a software
application combined with Dario Blood Glucose Monitoring System, a
pocket-sized, blood glucose monitoring device. It offers
DarioEngage software platform, where the company digitally engages
with Dario users and assists them in monitoring their chronic
illnesses, as well as provides them with coaching, support, digital
communications; and real time alerts, trends, and pattern analysis.
DarioHealth Corp. markets its products directly to consumer cash
sales, as well as retail pharmacy, hospitals, and distributors; and
through online. The company was formerly known as LabStyle
Innovations Corp. and changed its name to DarioHealth Corp. in July
2016. DarioHealth Corp. was founded in 2011 and is headquartered
in Caesarea, Israel.
DELMAR PHARMACEUTICALS: Stockholders Pass All Proposals at Meeting
------------------------------------------------------------------
DelMar Pharmaceuticals, Inc., held its Annual Meeting of
Stockholders on June 26, 2020, at which the stockholders:
(a) elected Robert E. Hoffman, Saiid Zarrabian, Lynda
Cranston, Napoleone Ferrara, Robert J. Toth, Jr., and
Laura Johnson as directors of the Company to hold office
until the next annual meeting and until his or her
successor has been duly elected and qualified, or, if
sooner, until the director's death, resignation or
removal;
(b) approved the proposal to adopt an amendment to the 2017
Plan to increase the number of shares of Common Stock
available for issuance under the 2017 Plan from 780,000 to
2,280,000 shares; and
(c) ratified the appointment of Marcum LLP as the Company's
independent registered public accounting firm for the
Company's fiscal year ending June 30, 2020.
About DelMar
Headquartered in San Diego, California, DelMar Pharmaceuticals,
Inc. -- http://www.delmarpharma.com-- is a clinical stage,
biopharmaceutical company focused on the development and
commercialization of new cancer therapies for cancer patients who
have limited or no treatment options.
As of March 31, 2020, the Company had $5.10 million in total
assets, $1.38 million in total liabilities, and $3.72 million in
total stockholders' equity. DelMar reported a net and
comprehensive loss of $8.05 million for the year ended June 30,
2019, following a net and comprehensive loss of $11.14 million for
the year ended June 30, 2018.
On Sept. 26, 2019, the Nasdaq Staff notified the Company that it
did not comply with the minimum $1.00 per share bid price
requirement for continued listing, as set forth in Nasdaq Listing
Rule 5550(a)(2), and the Company has 180 calendar days, or until
March 24, 2020, to regain compliance. The closing bid price of our
securities must be at least $1.00 per share for a minimum of ten
consecutive business days to regain compliance. On March 25, 2020,
DelMar received written notice from the Listing Qualifications
Department of The Nasdaq Capital Market LLC confirming the
Company's eligibility for continued listing of its common stock on
Nasdaq pursuant to an extension through Sept. 21, 2020, subject to
the condition that the Company will have demonstrated a closing bid
price of $1.00 per share, or more, for a minimum of ten consecutive
business days by Sept. 21, 2020.
On April 20, 2020, the Company received a notification letter from
Nasdaq stating that, in response to the current extraordinary
market conditions, Nasdaq had filed a rule change with the
Securities and Exchange Commission to suspend the compliance period
for the minimum closing bid price requirement from April 16, 2020
through June 30, 2020. As a result, the Company has until Dec. 7,
2020 to regain compliance.
DESERT VALLEY STEAM: Unsecureds be Paid From DVSCC’s Cash Flow
----------------------------------------------------------------
Desert Valley Steam Carpet Cleaning, LLC, filed a Chapter 11 Plan
and a Disclosure Statement.
The Debtor owns a real property Located at 603 & 607 D. Street,
Eloy, AZ 85231. The Property is an apartment complex originally
comprised of 13 units located at 603 & 607 N. D. Street, Eloy, AZ
85231. Five of the units were damaged by a fire and subsequently
needed to be demolished and removed after Atlas removed the
demising walls of the units during demolition causing an
irreparable roof collapse. Atlas holds a first position lien up to
a maximum of $275,000 on the Property and the Insurance Proceeds.
DVSCC believes the value of the Property is between $175,000 and
$265,000.
Class 2-A: Atlas claim is impaired. Atlas filed a proof of claim
in the amount of $617,705. The Allowed Secured Claim will accrue
interest at 4.5 percent annual interest and will be repaid as
follows. The Debtor will pay the insurance proceeds totaling
$236,526 to Atlas at or near the Effective Date reducing the
outstanding loan balance on the Allowed Secured Claim to $28,474.
The remaining balance of the Allowed Secured Claim shall be
re-amortized over 300 months with a balloon payment at month 120.
Class 2-C: Lane & Nach is impaired. Class 2-B consists of the
Allowed Secured Claim of Lane & Nach related to its second position
blanket lien on the Property. L ane & Nach's Allowed Secured Claim
will be allowed at the value of the Property minus all debt that is
senior to Lane & Nach's lien position. As a result, Lane & Nach's
Allowed Secured Claim is $0.00 ($265,000 value minus $0.00 owing in
real property taxes minus Atlas' Allowed Secured Claim of
$265,000).
Class 2-D City of Eloy is impaired. City of Eloy has not filed a
proof of claim, but did record a Notice and Claim of Lien Pursuant
to A.R.S. §9-276 showing a $10,450 balance due. DVSCC will retain
ownership of the property and make payments to the secured
creditors, or the secured creditors will be given stay relief and
they can then foreclose on the property or DVSCC will execute a
deed-in-lieu of foreclosure to expedite the transfer.
Class 3-A: General Unsecured Claims are impaired. Class 3- A
Creditors shall be paid a pro-rata share from DVSCC's Excess Cash
Flow, on a semiannual basis, with payments to commence after all
senior allowed claims have been paid in accordance with the terms
of the Plan, until the Allowed Unsecured Claims in Class 3-A and
3-B have been paid in total the aggregate value of DVSCC's
liquidation equity of $179,012. The Debtor anticipates refinancing
the Property on or before the 60th month under the Plan and funding
the payments to unsecured creditors from said refinance proceeds.
Class 3-B: Atlas general unsecured claims are impaired. The
Allowed Unsecured Claim in this Class will be paid out of the
Debtor's Excess Cash Flow, on a pro rata basis with Class 3-A, on a
semi-annual basis, with payments to commence after all senior
allowed claims have been paid in accordance with the terms of the
Plan, until the allowed unsecured claims in Class 3-A and 3-B have
been paid in total the aggregate value of DVSCC's liquidation
equity of $179,012. The Debtor anticipates refinancing the
Property on or before the 60th month under the Plan and funding the
payments to unsecured creditors from said refinance proceeds.
Class 4-A: Allowed interest of DVSCC are impaired. In
consideration for retaining their interest, the interest holder
will contribute to DVSCC the amount of $20,000. This funding will
come from the Interest Holder. The interest holders will retain
their allowed interest in DVSCC, but unless, and until all senior
allowed claims are paid in full in accordance with the terms of the
Plan, the interest holder will receive no distribution on account
of their allowed interest.
DVSCC's Plan will be funded by its operations and excess cash flow.
Further, the interest holders will repurchase their ownership in
DVSCC by borrowing $20,000 and contributing those funds to DVSCC
for its use to pay administrative claims. The Reorganized Debtors
will act as the Disbursing Agent under the Plan.
A full-text copy of the Disclosure Statement dated June 1, 2020, is
available at https://tinyurl.com/y8y8psce from PacerMonitor.com at
no charge.
Attorneys for the Debtor:
MARTIN J. MCCUE
PATRICK F. KEERY
KEERY MCCUE, PLLC
6803 EAST MAIN STREET, SUITE 1116
SCOTTSDALE, AZ 85251
TEL: (480) 478-0709
FAX: (480) 478-0787
E-mail: MJM@KEERYMCCUE.COM
PFK@KEERYMCCUE.COM
About Desert Valley Steam Carpet Cleaning
Desert Valley Steam Carpet Cleaning, LLC, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
20-00570) on Jan. 16, 2020. Judge Brenda K. Martin oversees the
case. The Debtor is represented by Christel Brenner, Esq.
DIAMOND PERFECTION: Funds Available for Unsecureds at $138K
-----------------------------------------------------------
Diamond Perfection, Inc., submitted a Chapter 11 Plan and a
Disclosure Statement.
Due to the restrictions on face to face contact and non-essential
services imposed by states and other communities as a result of the
COVI19 pandemic, the Debtor temporarily curtailed its door to door
operations in March of 2020.
Under the Plan, all allowed claims in Class 2 Claims, Class 3
Claims and Class 4 Equity Interests are "impaired," and the
creditors holding such Claims are entitled to vote on the Plan, and
may do so by completing the appropriate Ballot which is enclosed.
The Debtor's assets have an estimated liquidation value of
$242,618. Funds available for creditors is $139,015 and funds
available for unsecured creditors is $137,649.
The Debtor's Plan proposes continued operations with sales of
residential water treatment systems, contributions by the Debtor's
principal, Cesar Angulo, and possibly financing. The proceeds from
operations will be distributed to creditors in accordance with the
terms and conditions of the confirmed Plan.
A full-text copy of the Disclosure Statement dated June 1, 2020, is
available at https://tinyurl.com/yc9vpa45 from PacerMonitor.com at
no charge.
Attorney for the Debtor:
James B. Angell
HOWARD, STALLINGS, FROM, ATKIINS, ANGELL & DAVIS, P.A.
P.O. Box 12347
Raleigh, North Carolina 27605-0000
Telephone (919) 821-7700
About Diamond Perfection
Diamond Perfection, Inc., filed a Chapter 11 petition (Bankr.
E.D.N.C. Case No. 19-03270) on July 18, 2019, estimating less than
$500,000 in both assets and liabilities. James B. Angell, Esq., at
HOWARD, STALLINGS, FROM, ATKINS, ANGELL & DAVIS, P.A., is the
Debtor's counsel.
DIAMOND SPORTS: S&P Lowers Senior Unsecured Debt Rating to 'B'
--------------------------------------------------------------
S&P Global Ratings corrected its issue-level rating on Sinclair
Broadcast Group Inc. subsidiary Diamond Sports Group LLC's (DSG)
senior unsecured debt by lowering it to 'B' from 'B+'. This change
results from the correction of an error in the associated recovery
rating, which S&P has revised to '6' from '5'. Under the notching
guidelines in S&P's recovery criteria, the issue rating assigned to
debt with a '6' recovery rating is two notches lower than the
issuer's credit rating (DSG's rating is 'BB-'). The '6' recovery
rating indicates S&P's expectation for negligible (0%-10%; rounded
estimate: 0%) recovery for lenders in the event of a payment
default.
S&P's previous analysis published on June 18, 2020, where the
rating agency announced the revision of DSG's unsecured debt
recovery rating to '5' from '6' and the corresponding upgrade of
the issue rating to 'B+' from 'B', was based on an incorrect
understanding of the collateral package for DSG's secured debt. In
its previous analysis, S&P assumed that DSG's equity interest in
its joint ventures was not pledged by DSG or its guaranteeing
subsidiaries, and thus not part of the collateral package. As a
result, S&P's previous analysis incorrectly contemplated that the
value contributed to DSG from its joint ventures would accrue to
all unsecured creditors (including any deficiency claim for secured
creditors after accounting for the value of their collateral) in a
default scenario.
The rating action corrects its previous analysis and ratings.
While DSG's non-wholly owned subsidiaries (including its joint
ventures with certain sports teams) do not guarantee its debt, S&P
now understands that DSG's equity interest in its joint ventures is
held by certain subsidiaries of DSG, which are guarantors and have
pledged these equity interests to its secured creditors. As of
March 31, 2020, about 25% of DSG's EBITDA came from its non-wholly
owned subsidiaries. S&P also assumes DSG has a majority ownership
of its joint ventures of about 70%-80%.
In line with S&P's recovery criteria, the value from DSG's joint
ventures is available to secured lenders instead of its unsecured
lenders in the rating agency's default scenario. This improves
S&P's expected recovery for secured lenders to a rounded estimate
of 65% from 60%; however, its rating on DSG's secured debt remains
'BB-'. The recovery rating on this debt remains '3', indicating
S&P's expectation for meaningful (50%-70%; rounded estimate: 65%)
recovery for lenders in the event of a payment default.
ISSUE RATINGS – RECOVERY ANALYSIS
Sinclair issues debt at its operating subsidiaries, which S&P
analyzes separately to determine recovery prospects. STG and its
subsidiaries do not guarantee the debt at DSG, and DSG and its
subsidiaries do not guarantee the debt at STG.
Diamond Sports Group LLC
Key analytical factors:
-- DSG is the borrower of a $650 million senior secured revolving
credit facility maturing in 2024, $3.3 billion senior secured term
loan B maturing in 2026, $3.05 billion of 5.375% senior secured
notes due in 2026, $31 million of 12.75% senior secured notes due
in 2026, and $1.753 billion outstanding of 6.625% senior unsecured
notes due in 2027.
-- DSG's senior secured debt is guaranteed by Diamond Sports
Intermediate Holdings LLC, DSG, and Diamond Sports Intermediate
Holdings' existing and future direct or indirect wholly owned
domestic restricted subsidiaries (subject to certain exceptions).
The senior secured debt is secured by the assets and equity owned
by DSG and the guarantors.
-- DSG's non-wholly owned subsidiaries, including its joint
ventures with certain sports teams, do not guarantee its debt;
however DSG's equity interest in these entities, which is held by
Diamond Sports Group LLC, is pledged as collateral. As of March 31,
2020, about 25% of DSG's EBITDA came from non-wholly owned
restricted subsidiaries.
Simulated default assumptions:
-- S&P's simulated default scenario contemplates a default in 2024
due to a steep decline in distribution revenue stemming from an
acceleration in subscriber declines because multichannel video
programming distributors reduce their carriage or pass rising
sports programming costs onto consumers.
-- S&P values DSG on a going-concern basis using a 6.5x multiple
of the rating agency's projected emergence EBITDA, 0.5x lower than
the multiple it uses for STG because broadcast television benefits
from growth in retransmission and political advertising and does
not have the same level of secular pressure affecting cable
networks.
Simplified waterfall:
-- EBITDA at emergence: about $790 million
-- EBITDA multiple: 6.5x
-- Gross recovery value: about $5.1 billion
-- Obligor/nonobligor valuation split: 75%/25%
-- Net recovery value for waterfall after administrative expenses
(5%): about $4.9 billion
-- Minority equity interest in non-obligors: About $305 million
-- Total value available for senior secured debt claims: about
$4.6 billion
-- Estimated senior secured debt claims: about $7 billion
-- Recovery range: 50%-70%; rounded estimate: 65%
-- Value available for unsecured debt claims: Negligible
-- Estimated senior unsecured debt claims and secured debt
deficiency claims: about $4.2 billion
-- Recovery range: 0%-10%; rounded estimate: 0%
Notes: Debt amounts include six months of accrued interest that S&P
assumes will be owed at default. Collateral value includes asset
pledges from obligors (after priority claims) plus equity pledges
in non-obligors. S&P generally assumes usage of 85% for cash flow
revolvers at default.
ELDORADO GOLD: Fitch Assigns 'B' IDR, Outlook Stable
----------------------------------------------------
Fitch Ratings has assigned a 'B' Issuer Default Rating to Eldorado
Gold Corporation with a Stable Outlook. Fitch has also assigned a
'BB'/'RR1' rating to the company's first-lien revolver and term
loan and a 'B'/'RR4' to its second-lien secured notes.
The ratings reflect Eldorado's small size and concentration in four
producing mines, average cost position in the second quartile of
the global cost curve, relatively stable production profile through
the forecast period, average mine life from producing gold assets
at over 10 years and heightened execution and geopolitical risks
pertaining to the company's assets in Greece.
The Stable Outlook reflects Fitch's expectations that Eldorado will
maintain sufficient liquidity and achieve gold production at an
average of over 450,000 ounces through 2023 while total debt/EBITDA
is generally sustained at or below 3x at Fitch's gold price
assumptions. The company experienced mild coronavirus-related
effects to date. The Lamaque mine in Quebec temporarily ceased
mining and processing operations on March 25, 2020 but restarted on
April 15, 2020. No significant disruptions to production were
experienced at other sites in 1Q20, and management has reiterated
its 2020 production and cost guidance. Fitch expects that any
increased spending related to the company's project pipeline will
be done in a balanced, credit conscious manner.
KEY RATING DRIVERS
Production Profile: Eldorado achieved annual gold production at its
four producing mines of approximately 395,000 ounces in 2019 and
expects production to be around 535,000 ounces in 2020 and around
450,000 ounces through 2023. The company's flagship Kisladag mine
in Turkey is projected to achieve an average of 160,000 ounces of
production per year through 2034. The Lamaque mine in Canada
achieved commercial production in March 2019 and is expected to
produce an average of 140,000 ounces per year over its initial
seven-year mine life. Eldorado's Efemcukuru and Olympias mines
located in Turkey and Greece are expected to produce 90,000 and
60,000 ounces annually throughout the forecast, respectively. The
company also owns and operates a silver-lead-zinc mine in Greece.
Cost Position: Eldorado generated cash costs of $608 per ounce in
2019, which positions it in the second quartile of the global cost
curve. The company's key Kisladag and Lamaque mines are in the
first and second quartiles, respectively, of the cost curve, with
high fourth-quartile costs at Olympias. Efemcukuru is in the
low-third quartile. Fitch projects Eldorado to maintain an average
cost position in the second quartile of the cost curve through the
forecast period. Longer term, the company maintains upside
potential to its cost position with the idled Perama Hill and
Skouries projects estimated to be in the first quartile of the
global cost curve based on the pre-feasibility studies.
Project Pipeline: Eldorado announced plans to increase development
spending during 2020 focused on extending mine lives at Kisladag
and Lamaque and improving the underground development and backfill
cycles at Olympias. At Kisladag, results from the recently
completed long-cycle heap leach testwork indicated that an
increased leach time at the mine, with the addition of a
high-pressure grinding roll circuit, increases recovery and extends
the life of the mine through 2034. Growth spending of $75 million
in 2020 and $44 million in 2021 at Kisladag includes waste
stripping, engineering and costs associated with the HPGR circuit.
At Lamaque, the company is focusing on resource expansion in the
lower Triangle Deposit and increasing throughput to go beyond 2,200
tonnes per day. The company is in early stages of determining how
best to optimize that deposit before releasing a Preliminary
Economic Assessment.
Potential development projects include restarting Skouries and
Perama Hill mines in Greece, which were placed on care and
maintenance in 2016 and 2018, respectively, as a result of delays
in issuing permits by the Greek government due to political and
social opposition. Following recent Greek elections in July 2019,
the company received the construction permits at Skouries that had
stalled the project, and are now awaiting an updated investment
agreement and permits for dry stack tailings and other items.
Perama Hill is behind on necessary permits compared to Skouries.
Eldorado continues to work with the Greek government to achieve the
necessary terms and conditions required to re-start these projects,
and believes that new key personnel within the government support
the projects.
Skouries has an initial 23-year mine life producing 140,000 ounces
per year at cash costs in the low first quartile, and Perama Hill
has an initial eight-year mine life, producing 100,000 ounces per
year at cash costs in the upper first quartile.
The company also has Tocantinzinho and Certej projects in Brazil
and Romania, and is evaluating strategic options at those locations
with a technical report on Tocantinzinho filed in June 2019, and an
evaluation of strategic alternatives is underway at Certej.
Gold Price Sensitivity: Approximately 85% of revenues are derived
from gold sales, although the company produces silver at multiple
mines, including its silver-lead-zinc Stratoni mine. Fitch
estimates that a 10% reduction in the gold price reduces EBITDA by
roughly $50 million. Under its rating case, Fitch assumes gold
prices will decline from $1,406/ounce in 2019 to $1,400/ounce in
2020, $1,350/ounce in 2021 and $1,200/ounce thereafter. Fitch notes
this compares to the average gold price for the year to date of
approximately $1,650/ounce. At Fitch's gold price assumptions,
Fitch expects EBITDA to fall to around $160 million in 2022,
largely on the reduction in the gold price assumption as well as
reduced near-term production at Kisladag due to lower grades, but
to return to above $200 million thereafter on increased
production.
Leverage Expectations: Eldorado's total debt/EBITDA declined from a
Fitch-calculated 6.6x in 2018 to 2.2x in 2019, largely on the
increase in gold price as well as higher ounces at approximately
375,000 ounces in 2019 versus approximately 305,000 in 2018, and
reduced cash operating costs at $608/ounce in 2019 versus
$626/ounce in 2018. At Fitch's price assumptions, total debt/EBITDA
is expected to decline to around 1.2x in 2020. Thereafter, Fitch
projects that the company will generally be below 3.0x and manage
spending in line with this target. Should the company receive the
necessary approvals for its project pipeline, Fitch expects it to
finance the projects in a credit conscious manner.
DERIVATION SUMMARY
Eldorado compares favorably in size, in terms of EBITDA and
diversification, with diamond producer Mountain Province Diamonds
Inc. (B-/Negative) and gold producer Gran Colombia Gold Corp.
(B/Stable), and is similarly sized to diamond producer Dominion
Diamond Mines LLC (Rating Withdrawn). Eldorado is smaller and less
diversified than copper, zinc and precious metal producer Hudbay
Minerals Inc. (B+/Stable). Eldorado has some of its operations in
higher-risk jurisdictions compared to the diamond producers and
Hudbay, but in line with Gran Colombia. Mine life based on reserves
for Eldorado is greater than 10 years, which compares favorably to
Gran Colombia at around seven years. Fitch expects total
debt/EBITDA for Eldorado to generally remain at or below 3.0x over
the forecast period which is similar to the diamond producers.
Leverage for Hudbay is expected to be around 4.0x through 2021 on
elevated spending and then decline below 3.0x thereafter. Leverage
for Gran Colombia is generally around 1.0x given its low debt
levels with single asset exposure.
KEY ASSUMPTIONS
-- Gold sales at 520,000 ounces. in 2020, 420,000 ounces in 2021,
430,000 ounces in 2022 and 480,000 ounces in 2023;
-- Gold prices at $1,400/ounce in 2020, $1,350/ounce in 2021 and
$1,200/ounce thereafter;
-- EBITDA margins at about 42% in 2020 declining to 33% in 2021
and 27% in 2022;
-- Capex averages between 25%-30% of revenue annually.
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that Eldorado would be reorganized as
a going-concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim.
Fitch's GC EBITDA assumption of $130 million for Eldorado assumes a
scenario of a weaker gold price environment and lower ore grades
leading to production at the bottom of guidance. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which the enterprise
valuation is based.
Fitch typically uses multiples in the 4x-6x range for mining
companies given the cyclical nature of commodity prices. Eldorado's
5x multiple, at the mid-point of the range, reflects its extensive
operating history, the low-cost position of its key mines, some of
its assets located in higher-risk mining-friendly jurisdictions and
the growth potential its pipeline of projects presents.
An EV multiple of 5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganization enterprise value after an assumed
10% administrative claim of $585 million.
Under this scenario, Eldorado's first-lien revolver and term loan
correspond to an 'RR1' recovery while its second-lien notes have a
recovery rating corresponding to 'RR4.'
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
-- Improved size and scale or improved commodity
diversification;
-- Expectations for total debt/EBITDA or FFO net leverage at
Fitch's price assumptions to be sustained below 2.5x or 2.0x;
-- Reduced completion risks and funding strategy which mitigates
risk associated with the Skouries project;
-- Average cost position maintained in second quartile of global
cost curve;
-- Visibility into maintaining low risk mines with an average
operating mine life greater than 10 years.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
-- Expectations for total debt sustained above 3.5x;
-- Expectations for FFO fixed-charge coverage to trend to below
3.0x;
-- Deviation from financial policy without a clear path towards
de-leveraging during periods of heavy investment spending.
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
Satisfactory Liquidity: As of March 31, 2020, cash and cash
equivalents were $364 million and $36 million was available under
the company's $250 million revolving credit facility after
utilization of $64 million for letters of credit. Fitch notes that
the company drew $150 million on its revolver on March 30, 2020 as
a proactive measure against the uncertainty of the coronavirus
pandemic. Fitch believes that the outstanding revolver will remain
on the balance and repaid in the near term. The revolver matures on
June 5, 2023. The facility has a net debt/EBITDA covenant maximum
of 3.5x and an interest coverage ratio covenant of no less than
3.0x. Fitch expects the company to continue to be in compliance
with these covenants.
The term loan amortizes at $67 million per year through 2022. Fitch
estimates sustaining capex can be scaled back to around $110
million should gold prices decline, and Fitch expects the company
will finance future growth spending in a manner consistent with its
rating category.
SUMMARY OF FINANCIAL ADJUSTMENTS
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
Environmental, Social and Governance credit relevance is a score of
'3'. ESG issues are credit neutral or have only a minimal credit
impact on the entity, either due to their nature or the way in
which they are being managed by the entity.
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.
ELITE INVESTMENT: Trustee Taps Steven Skarphol as Real Estate Agent
-------------------------------------------------------------------
Eric M. Haley, chapter 11 trustee of Elite Investment Properties
LLC, seeks authority from the U.S. Bankruptcy Court for the
District of Arizona to employ a real estate agent.
The Trustee desires to retain Steven Skarphol of Steven Skarphol,
PLLC, to list, market and sell the property located in Maricopa
County, Arizona, and more particularly described as follows 6736
West Carson Road, Phoenix, Arizona 85339.
Steven Skarphol's real estate commission will be 5 percent of the
total purchase price if agent does not have to split the commission
with a buyer's agent. The agent's real estate commission will be 6
percent if the commission is to be split with a buyer's agent.
Mr. Skarphol assured the court that he is a disinterested person or
entity within the meaning of 11 U.S.C. Sec. 101(14).
The agent can be reached at:
Steven Skarphol
Steven Skarphol, PLLC
8388 E Hartford Dr #100
Scottsdale, AZ 85255
Phone: +1 602-317-5164
About Elite Investment Properties
Elite Investment Properties, LLC, sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 20-00135) on
Jan. 6, 2020. At the time of the filing, the Debtor was estimated
to have assets of between $50,001 and $100,000 and liabilities of
between $500,001 and $1 million. Judge Paul Sala oversees the case.
The Debtor is represented by Bankruptcy Legal Center (TM).
ELITE PHARMACEUTICALS: Hikes Authorized Common Stock to 1.4B Shares
-------------------------------------------------------------------
Elite Pharmaceuticals, Inc., held a special meeting of shareholders
on June 23, 2020, at which the shareholders:
(1) approved the amendment of the Company's Articles of
Incorporation to increase the number of shares of common
stock the Company is authorized to issue from 995,000,000
shares to 1,445,000,000 shares and to file a new amendment
to its Articles of Incorporation reflecting such approval;
and
(2) granted discretionary authority to adjourn the virtual
Special Meeting, if necessary, to solicit additional
proxies in the event that there are not sufficient votes
at the time of the virtual Special Meeting to approve
Proposal No. 1.
Following approval of Proposal No. 1, the Company filed an
amendment to its Articles of Incorporation with the Secretary of
State of the State of Nevada re-adopting the prior amendment
increasing the number of shares of common stock that it is
authorized to issue from 995,000,000 shares to 1,445,000,000
shares. The par value of the common stock remains $0.001 per
share.
About Elite Pharmaceuticals
Elite Pharmaceuticals, Inc. -- http://www.elitepharma.com/-- is a
specialty pharmaceutical company which is developing a pipeline of
niche generic products. Elite specializes in oral sustained and
controlled release drug products which have high barriers to entry.
Elite owns generic products which have been licensed to TAGI
Pharma, Glenmark Pharmaceuticals, Inc., USA., and Lannett Company,
Inc. Elite currently has eleven approved generic products, three
generic products filed with the FDA, one approved generic products
pending manufacturing site transfer, and an NDA filed for
SequestOx.
Elite reported a net loss attributable to common shareholders of
$9.28 million for the year ended March 31, 2019, compared to a net
loss attributable to common shareholders of $3.67 million for the
year ended March 31, 2018. As of Dec. 31, 2019, the Company had
$24.08 million in total assets, $15 million in total liabilities,
and $9.08 million in total shareholders' equity.
Buchbinder Tunick & Company LLP, in Little Falls, New Jersey, the
Company's auditor since 2010, issued a "going concern"
qualification in its report dated June 21, 2019, citing that the
Company has incurred recurring losses from operations, negative
cash flows from operations and has an accumulated deficit that
raise substantial doubt about its ability to continue as a going
concern.
FATSPI & SON: Court Conditionally Approves Disclosure Statement
---------------------------------------------------------------
Judge Mindy A. Mora has ordered that the Disclosure Statement filed
by Fatspi & Son, Inc., is conditionally approved.
The hearing on final approval of disclosure statement, confirmation
hearing and hearing on fee applications will be on June 30, 2020 at
1:30 p.m., in Telephonic Hearing: If hearings have not resumed at
the courthouse, the hearing will be conducted telephonically and
all parties in interest must arrange to appear solely
telephonically via CourtSolutions
(https://www.court-solutions.com/signup).
The deadline for objections to claims will be on June 16, 2020.
The deadline for filing ballots accepting or rejecting plan will be
on June 23, 2020.
The deadline for objections to confirmation will be on June 25,
2020.
The deadline for objections to final approval of the disclosure
statement will be on June 25, 2020.
About Fatspi & Son
Fatspi & Son Inc. filed a voluntary Chapter 7 petition (Bankr. S.D.
Fla. Case No. 19-26913) on Dec. 19, 2019. On March 6, 2020, the
case was converted to one under Chapter 11. Judge Mindy A. Mora
oversees the case. White-Boyd Law, PA, is the Debtor's bankruptcy
Counsel.
FLOYD'S INSURANCE: Trustee Taps Thompson Price as Accountant
------------------------------------------------------------
Algernon L. Butler, III, Chapter 11 Trustee of Floyd's Insurance
Agency Inc., seeks approval from the U.S. Bankruptcy Court for the
Eastern District of North Carolina to retain Alan W. Thompson, CPA
and Thompson, Price, Scott, Adams & Co., P.A. as its accountants.
Thompson Price will represent and assist the Trustee in carrying
out his duties under the Bankruptcy Code, including with regard to
the preparation of the Debtor's pre-petition income and payroll tax
returns, processing of post-petition payroll taxes and preparing
payroll tax returns, and any other necessary tasks requested by the
Trustee to be performed.
Thompson Price will charge a flat fee of $2,595 for preparing the
2019 federal and state income tax returns and related documents and
services, and a flat fee of $200 per month for processing of
post-petition payroll taxes and preparing payroll tax returns.
The current hourly rates of the accountant are:
Mr. Thompson $150
CPAs $140
Non-CPA staff $100
Mr. Thompson, partner at Thompson Price, attests that his firm does
not hold or represent an interest adverse to the estate and is
disinterested person as the term is defined in Section 101(14) of
the Bankruptcy Code.
The accountant can be reached at:
Alan W. Thompson, CPA
Thompson, Price, Scott, Adams & Co., P.A.
1626 S Madison St
Whiteville, NC 28472
Phone: (910) 642-2109
About Floyd's Insurance Agency
Whiteville, N.C.-based Floyd's Insurance Agency Inc. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C.
Case No. 20-01982) on May 20, 2020. At the time of the filing, the
Debtor was estimated to have assets between $1 million and $10
million and liabilities between $10 million and $50 million. Judge
Joseph N. Callaway oversees the case. Hendren, Redwine & Malone,
PLLC is the Debtor's legal counsel.
FLOYD'S INSURANCE: Trustee Taps Williams Overman as Accountant
--------------------------------------------------------------
Algernon L. Butler, III, Chapter 11 Trustee of Floyd's Insurance
Agency Inc. seeks approval from the U.S. Bankruptcy Court for the
Eastern District of North Carolina to retain Edward A. Golden, CPA
and Williams Overman Pierce, LLP, as his accountant.
Williams Overman will represent and assist the Trustee in carrying
out his duties under the Bankruptcy Code, including with regard to
the determination of any tax liability of the bankruptcy estate,
the preparation and filing of tax returns as necessary, and
assistance to the Trustee with regard to the investigation,
analysis, and accounting of the Debtor's pre-petition transactions
and affairs.
The current hourly rates of the accountant are:
Mr. Golden $250
CPAs $200
Non-CPA staff $80
Mr. Golden, partner at Williams Overman, attests that his firm does
not hold or represent an interest adverse to the estate and is
disinterested person as the term is defined in Section 101(14) of
the Bankruptcy Code.
The accountant can be reached at:
Edward A. Golden, CPA
Williams Overman Pierce, LLP
1508 Military Cutoff Road, Suite 300
Wilmington, NC 28403
Phone: 910-509-0803
Fax: 919-782-2552
About Floyd's Insurance Agency
Whiteville, N.C.-based Floyd's Insurance Agency Inc. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C.
Case No. 20-01982) on May 20, 2020. At the time of the filing, the
Debtor was estimated to have assets between $1 million and $10
million and liabilities between $10 million and $50 million. Judge
Joseph N. Callaway oversees the case. Hendren, Redwine & Malone,
PLLC is the Debtor's legal counsel.
FOLSOM FARMS: July 1 Hearing on Disclosure Statement
----------------------------------------------------
That a Telephone Hearing will be held on July 1, 2020 at 10:30
a.m., Call in Number: (888) 684−8852 Access Code: 1238244 to
consider and possibly approve the proposed disclosure statement of
Folsom Farms, LLC.
Objections to the proposed disclosure statement must be made in
writing, setting forth the specific grounds and details of
objection, and must be filed no less than 7 days before the date of
the hearing.
About Folsom Farms
Folsom Farms, LLC, is a single asset real estate debtor (as defined
in 11 U.S.C. Section 101(51B).
Folsom Farms sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Ore. Case No. 20-30575) on Feb. 19, 2020. At the
time of the filing, the Debtor was estimated to have assets of
between $1 million and $10 million and liabilities of the same
range. Judge Peter C. McKittrick oversees the case. Sally
Leisure, Esq., at SRL Legal, LLC, is the Debtor's legal counsel.
FTS INTERNATIONAL: Bryan Lemmerman Quits as Director
----------------------------------------------------
Bryan Lemmerman submitted a resignation letter resigning from his
position as a director of FTS International, Inc., with such
resignation to be effective as of June 17, 2020. In accordance
with the Investors' Rights Agreement, dated as of Feb. 1, 2018, by
and among the Company, Maju Investments (Mauritius) Pte Ltd and CHK
Energy Holdings, Inc., CHK, one of the Company's largest
stockholders, designated Ben Russ as its nominee to fill the
vacancy on the board of directors of the Company created by Mr.
Lemmerman's resignation.
On June 18, 2020, the Board appointed Mr. Russ as a Class I
director to fill the vacancy on the Board created by Mr.
Lemmerman's resignation effective as of June 17, 2020 with a term
set to expire at the 2022 annual meeting of stockholders.
Mr. Russ, age 46, has served as associate general counsel –
corporate at Chesapeake Operating, L.L.C., a subsidiary of
Chesapeake Energy Corporation, since May 2014. As associate
general counsel, Mr. Russ is responsible for managing the company's
legal functions for business development, treasury and SEC
compliance, as well as those for tax, employment, risk and
compliance. Prior to being promoted to associate general counsel
– Corporate, Mr. Russ served in various roles in the legal
department at Chesapeake.
Prior to joining Chesapeake in 2008, Mr. Russ was general counsel
at Gulfport Energy Corporation, where he managed the company's
litigation, SEC compliance, employee stock plan and corporate
governance matters. Mr. Russ joined Gulfport in 2005 as Assistant
General Counsel.
Mr. Russ graduated from Oklahoma State University in 1996 and
received his J.D. from Oklahoma City University in 2004. Mr. Russ
provides significant industry, business development and legal
insight to the Company's board of directors from his experience at
Chesapeake and Gulfport.
In connection with his appointment, Mr. Russ will enter into the
Company's standard indemnification agreement for directors.
About FTS International
Headquartered in Fort Worth, Texas, FTS International --
http://www.FTSI.com/-- is an independent hydraulic fracturing
service company. Its services enhances hydrocarbon flow from oil
and natural gas wells drilled by E&P companies in shale and other
unconventional resource formations.
FTS received written notice from the New York Stock Exchange that
the Company is not in compliance with the continued listing
standards set forth in Item 802.01B of the NYSE Listed Company
Manual because its average global market capitalization over a
consecutive 30 trading-day period and last reported stockholders'
equity were both below $50 million.
As of March 31, 2020, the Company had $616 million in total assets,
$587 million in total liabilities, and $29 million in total
stockholders' equity.
* * *
As reported by the TCR on May 14, 2020, Moody's Investors Service
downgraded FTS International, Inc.'s Corporate Family Rating to Ca
from Caa1. "The downgrade of FTSI's ratings reflect increasing
debt restructuring risks given the very severe reduction in demand
for the company's hydraulic fracturing services caused by low oil
prices," said Jonathan Teitel, a Moody's Analyst.
As reported by the TCR on April 28, 2020, S&P Global Ratings
lowered its issuer credit rating on oilfield service provider FTS
International Inc. (FTSI) to 'CCC-' from 'CCC+'. The outlook is
negative. S&P said the recent decline in commodity prices is
expected to coincide with a significant fall in U.S. E&P drilling
activity. "Furthermore, we believe FTSI is consulting with
financial advisers on default scenarios, a possible distressed debt
exchange, or other forms of debt restructuring alternatives. In our
view, these factors and current trading levels on FTSI's secured
notes reflect high likelihood of restructuring in the next six
months," S&P said.
GENERAL CANNABIS: Executive Chairman Quits Citing Interference
--------------------------------------------------------------
Michael Feinsod resigned as executive chairman of the Board of
Directors of General Cannabis Corp. under his employment agreement
with the Company dated Dec. 8, 2017. In his resignation letter,
Mr. Feinsod stated that he is resigning with "Good Reason" because
"...there has been active and material interfering with [his]
ability to perform [his] duties and which has prevented [him] from
performing the duties required to perform and discharge [his]
obligations to the Company and its underlying shareholders of an
executive character typically associated with the position of an
executive chairman of a company and of which the Board of Directors
has delegated or assigned to [him]." The Board and the Company
disagree with Mr. Feinsod's statements, and with his conclusion
that his resignation was for "Good Reason" under the Employment
Agreement. However, the Company accepts his voluntary resignation
with immediate effect. Mr. Feinsod's notice of resignation further
states that Mr. Feinsod will remain Chairman of the Board. The
Board and the Company do not disagree with this statement.
About General Cannabis Corp
Headquartered in Denver, Colorado, General Cannabis Corp --
http://www.generalcann.com/-- provides services to the cannabis
industry. The company is a trusted partner to the cultivation,
production and retail sides of the cannabis business. It achieves
this through a combination of strong operating divisions, capital
investments and real estate.
General Cannabis reported a net loss of $12.46 million for the year
ended Dec. 31, 2019, compared to a net loss of $16.97 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$3.50 million in total assets, $6.24 million in total current
liabilities, and $2.74 million in total stockholders' deficit.
Marcum LLP, in Melville, NY, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated May 14,
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.
GIGA-TRONICS INC: Amends Severance Agreements with Top Executives
-----------------------------------------------------------------
Giga-tronics Incorporated entered into amended and restated
severance agreements with John Regazzi, its president and chief
executive officer, and Lutz Henckels, its executive vice president,
chief financial offer and chief operating officer.
Both of the agreements provide that if the executive is terminated
without cause, the executive will receive severance payments equal
to one 12 months of salary and reimbursements for COBRA insurance
costs. If the executive is terminated without cause or resigns for
good reason within 12 months of a change of control of the Company,
he would instead receive 15 months of salary and reimbursements for
COBRA insurance costs, as well as full vesting of all of his equity
awards. In either case, as a condition to receiving the severance
benefits, the executive would be required to sign a release of
claims in favor of the Company and comply with the nonsoliciation
provisions of the agreement.
Mr. Regazzi's severance payment amounts are unchanged from his
previous agreement. For Mr. Henckels, the amended and restated
severance agreement represents and increase from six months of
salary and COBRA benefits in the case of his termination without
cause and from nine months of salary and COBRA benefits in the case
of his termination without cause or resignation for good reason
following a change of control. While certain of the executives'
equity awards previously would or could vest upon a change of
control, the amended and restated severance agreements provided
that all of their equity awards will vest upon a change of
control.
About Giga-tronics Incorporated
Headquartered in Dublin, California, Giga-tronics is a publicly
held company, traded on the OTCQB Capital Market under the symbol
"GIGA". Giga-tronics -- http://www.gigatronics.com/-- produces
RADAR filters and Microwave Integrated Components for use in
military defense applications as well as sophisticated RADAR and
Electronic Warfare (RADAR/EW) test products primarily used in
electronic warfare test & emulation applications.
Giga-Tronics Incorporated reported a net loss attributable to
common shareholders of $2.03 million for the year ended March 28,
2020, compared to a net loss attributable to common shareholders of
$1.04 million for the year ended March 30, 2019. As of March 28,
2020, the Company had $8.93 million in total assets, $3.37 million
in total current liabilities, $1.25 million in total long term
liabilities, and $4.30 million in total shareholders' equity.
GOODNO'S JEWELRY: Court Conditionally Approves Disclosure Statement
-------------------------------------------------------------------
The Bankruptcy Court ruled that Goodno’s Jewelry, Inc.’s
Combined Disclosure Statement and Plan of Liquidation is
conditionally approved.
A hearing is set for July 23, 2020, at 9:30 a.m. before Honorable
Judge Janice D Loyd, 2nd floor courtroom, for the Court to consider
final approval of the Plan.
July 10, 2020, is the last day for filing objections to the Plan.
July 15, 2020, is the last day by which holders of claims and
interests may accept or reject the Plan.
This Combined Disclosure Statement and Plan of Liquidation is
submitted by Goodno's Jewelry, Inc.
Class 2 – Secured claims are impaired by this Plan. The single
creditor, Republic Bank, Claim no. 6, is fully secured by third
party collateral. Debtor surrenders all interest, if any, in the
third party Certificate of Deposit serving as collateral in this
case, in full satisfaction of the Claim. Republic will receive no
distributions under the Plan, on account of this claim.
Class 3 – Non-priority unsecured creditors are impaired. General
unsecured creditors will receive a pro rata distribution, in cash,
from proceeds of sale of assets, but only after full payment of
Administrative Claims, on or after the effective date.
The Debtor has sold or liquidated all its personal property
inventory in the ordinary course of business, and deposited funds
in the Debtor in Possession account. Funds on hand totals
approximately $46,200.
A full-text copy of the Disclosure Statement dated June 1, 2020, is
available at https://tinyurl.com/ybjbnatp from PacerMonitor.com at
no charge.
Attorney for the Debtor:
B David Sisson
Law Offices of B David Sisson
305 E Comanche St. /P O Box 534
Norman OK 73070-0534
Tel: 405.447.2521
Fax: 405.447.2552
E-mail: sisson@sissonlawoffice.com
About Goodno's Jewelry
Goodno's Jewelry, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Okla. Case No. 19-14103) on Oct. 5,
2019. At the time of the filing, the Debtor was estimated to have
assets of between $100,001 and $500,000 and liabilities of between
$50,001 and $100,000.
HELPING OTHERS: Case Summary & 12 Unsecured Creditors
-----------------------------------------------------
Debtor: Helping Others International, LLC
4110 Vanetta Pl
Studio City, CA 91604
Business Description: Helping Others International, LLC owns a
single family residence intended to be used
as residential detox center valued at $3.15
million. It also owns another single
family residence, a multi-room boarding
house, and a 3-bedroom condominium having an
aggregate current value of $3.25 million.
Chapter 11 Petition Date: June 29, 2020
Court: United States Bankruptcy Court
Central District of California
Case No.: 20-11134
Debtor's Counsel: Todd J. Cleary
Law Office of Todd J. Cleary
10720 McCune Avenue
Los Angeles, California 90034
Total Assets: $7,301,000
Total Liabilities: $7,186,030
The petition was signed by Megan Zucaro, manager.
A copy of the petition containing, among other items, a list of the
Debtor's 12 unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/UlVCXU
HOLOGENIX LLC: Hires Dermer Behrendt as Special Corporate Counsel
-----------------------------------------------------------------
Hologenix, LLC, seeks authority from the United States Bankruptcy
Court for the Central District of California to hire Dermer
Behrendt as its special corporate counsel, effective as of June 8,
2020.
The Debtor seeks to employ Dermer Behrendt for the purpose of
aiding the Debtor with special corporate legal services, including
advising the Debtor on any business formation and corporate
governance issues of non-bankruptcy law related to the Debtor’s
current business formation and any restructuring of its business
formation, including, through a chapter 11 plan of reorganization
and when requested, aiding the Debtor with any transactional and
contract law related issues.
Dermer Behrendt will be paid at the hourly rate of $400.
Dermer Behrendt will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey D. Dermer, managing partner at the firm, 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.
Dermer Behrendt can be reached at:
Jeffrey D. Dermer, Esq.
LAW OFFICES OF DERMER BEHRENDT
13101 Washington Blvd., Suite 407
Los Angeles, CA 90066
Tel: (310) 266-1075
E-mail: jeff@dermerbehrendt.com
About Hologenix, LLC
Hologenix, LLC is the inventor of Celliant technology
(https://celliant.com), a patented, clinically-tested textile
technology that harnesses and recycles the body's natural energy.
Based in Pacific Palisades, California, Hologenix, LLC filed its
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
C.D. Cal. Case No. 20-13849) on April 22, 2020. In the petition
signed by Seth Casden, CEO, the Debtor estimated $1 million to $10
million in both assets and liabilities. John-Patrick M. Fritz, Esq.
at Levene, Neale, Bender, Yoo & Brill L.L.P. represents the Debtor
as counsel.
HORIZON GLOBAL: Stockholders Pass All Proposals at Annual Meeting
-----------------------------------------------------------------
The 2020 Annual Meeting of Stockholders of Horizon Global
Corporation was held on June 19, 2020, at which the stockholders:
(a) elected Terrence G. Gohl, Frederick A. Henderson, John C.
Kennedy, Ryan L. Langdon, Brett N. Milgrim, Debra S. Oler,
Mark D. Weber, and Harry J. Wilson as directors to serve
until the Company's 2021 annual meeting of stockholders;
(b) approved the Horizon Global Corporation 2020 Equity and
Incentive Compensation Plan; and
(c) ratified the appointment of Deloitte & Touche LLP as the
Company's independent registered public accounting firm
for the fiscal year ending Dec. 31, 2020.
In general, the 2020 Plan will be administered by the Compensation
Committee of the Corporation's Board of Directors and will enable
the Compensation Committee to provide equity and incentive
compensation to (1) the Corporation's officers and other employees
(and those of its subsidiaries), including persons who have agreed
to commence serving in such capacity within 90 days of the grant of
the applicable award, (2) the Corporation's non-employee directors
and (3) certain other individuals, including certain consultants,
who provide employee-type services. Pursuant to the 2020 Plan, the
Corporation may grant equity-based and cash-based compensation
generally in form of stock options, appreciation rights, restricted
shares, restricted stock units, performance shares, performance
units, cash incentive awards, dividend equivalents and other
stock-based awards upon terms and conditions as further described
in the 2020 Plan.
Subject to adjustment as described in the 2020 Plan, and subject to
the 2020 Plan's share counting rules, a total of 3,800,752 shares
of common stock of the Corporation are available for awards granted
under the 2020 Plan, plus (A) the total number of shares remaining
available for awards under the Corporation's 2015 Equity and
Incentive Compensation Plan as of June 19, 2020, plus (B) the
shares that are subject to awards granted under the 2020 Plan or
the 2015 Plan that are added (or added back, as applicable) to the
aggregate number of shares available under the 2020 Plan pursuant
to the share counting rules of the 2020 Plan. These shares may be
shares of original issuance or treasury shares, or a combination of
both.
The 2020 Plan provides that no non-employee director of the
Corporation will be granted, in any period of one calendar year,
compensation for such service having an aggregate maximum value
(measured at the grant date as applicable, and calculating the
value of any awards based on the grant date fair value for
financial reporting purposes) in excess of $500,000. However, the
independent members of the Board may make exceptions to this
non-employee director compensation limit up to an additional
$200,000 for a non-executive chair of the Board, provided that the
non-employee director receiving such additional compensation may
not participate in the decision to award such compensation.
The 2020 Plan provides that awards granted under the 2020 Plan
(other than cash-based awards) will generally vest no earlier than
the first anniversary of the applicable grant date, subject to
certain exceptions as described in the 2020 Plan.
The 2020 Plan permits the Compensation Committee to make certain
performance-based awards to participants under the 2020 Plan. The
following is a non-exhaustive list of performance measures that
could be used for such performance-based awards (including relative
or growth achievement regarding such metrics):
* Profits (e.g., gross profit, EBITDA, operating income, EBIT,
EBT, net income, net sales, cost of sales, earnings per
share, residual or economic earnings, inventory turnover,
operating profit, economic profit - these profitability
metrics could be measured before certain specified special
items and/or subject to GAAP definition);
* Cash Flow (e.g., free cash flow, free cash flow with or
without specific capital expenditure target or range,
including or excluding divestments and/or acquisitions, net
cash provided by operating activities, net increase (or
decrease) in cash and cash equivalents, total cash flow,
cash flow in excess of cost of capital or residual cash flow
or cash flow return on investment);
* Returns (e.g., profits or cash flow returns on: assets,
invested capital, net capital employed, and equity);
* Working Capital (e.g., working capital divided by sales,
days' sales outstanding, days’ sales inventory, and days'
sales in payables);
* Profit Margins (e.g., profits divided by revenues, gross
margins and material margins divided by revenues, and
material margin divided by weight or volume);
* Liquidity Measures (e.g., debt-to-capital, debt-to-EBITDA,
total debt ratio);
* Sales Growth, Gross Margin Growth, Cost Initiative and Stock
Price Metrics (e.g., revenues, revenue growth, revenue
growth outside the United States, gross margin and gross
margin growth, material margin and material margin growth,
stock price appreciation, market capitalization, total
return to shareholders, sales and administrative costs
divided by sales, and sales and administrative costs divided
by profits); and
* Strategic Initiative Key Deliverable Metrics consisting of
one or more of the following: product development, strategic
partnering, research and development, vitality index, market
penetration, market share, geographic business expansion
goals, cost targets, selling, general and administrative
expenses, customer satisfaction, employee satisfaction,
management of employment practices and employee benefits,
supervision of litigation and information technology,
productivity, economic value added (or another measure of
profitability that considers the cost of capital employed),
product quality, sales of new products, and goals relating
to acquisitions or divestitures of subsidiaries, affiliates
and joint ventures.
The Board generally will be able to amend the 2020 Plan, subject to
stockholder approval in certain circumstances as described in the
2020 Plan.
About Horizon Global
Horizon Global -- http://www.horizonglobal.com-- is a designer,
manufacturer, and distributor of a wide variety of
custom-engineered towing, trailering, cargo management and other
related accessory products in North America, Australia and Europe.
The Company serves OEMs, retailers, dealer networks and the end
consumer.
As of March 31, 2020, the Company had $445.8 million in total
assets, $458.2 million in total liabilities, and a total
shareholders' deficit of $12.41 million.
* * *
As reported by the TCR on Dec. 16, 2019, S&P Global Ratings
affirmed the 'CCC' issuer credit rating on Horizon Global Corp. and
revised the outlook to negative from developing. The outlook
revision to negative reflects S&P's view that despite recent debt
reduction and temporary improvement in liquidity, Horizon's credit
metrics and liquidity remain quite weak and could worsen as the
rating agency expects the company to generate negative free flow.
As reported by the TCR on June 24, 2020, Moody's Investors Service
withdrew its ratings for Horizon Global Corporation, including the
C corporate family rating. Moody's decided to withdraw the ratings
for its own business reasons.
HOUSTON AMERICAN: Adjourns Virtual Annual Meeting to July 17
------------------------------------------------------------
Houston American Energy Corp. convened and then adjourned, without
conducting any business, its virtual annual meeting of stockholders
held on June 23, 2020, at 10:00 a.m., central time, until Friday,
July 17, 2020 at 10:00 a.m., central time, at which time the
Company's stockholders will vote on the proposals to be considered
at the Annual Meeting (subject to any potential additional
adjournments), including Proposal 2, approval of an amendment to
the Company's certificate of incorporation to provide the Board of
Directors the flexibility to effect a reverse stock split of the
Company's common stock.
The Annual Meeting will still be held as a virtual meeting. The
Annual Meeting was adjourned in order to solicit additional proxies
for Proposal 2. At the time of the meeting, a substantial majority
of the shares that had been voted on Proposal 2 had been voted in
its favor; however, the favorable votes were less than the majority
of all outstanding shares of the Company's voting stock needed for
approval.
The Board of Directors believes approval of Proposal 2 is in the
best interests of the Company and its stockholders because the NYSE
American LLC, on which the Company's common stock is listed, has
notified the Company that a reverse split is necessary to maintain
the listing of the common stock on the NYSE American. The NYSE
American has granted the Company additional time until the Annual
Meeting to implement a reverse stock split. A delisting of the
common stock could significantly impair the Company's ability to
raise additional capital; result in lower prices for the Company's
common stock and larger spreads in the bid and ask prices for the
common stock; and impact the liquidity of the Company's common
stock. Proposal 2 is described in more detail in the Company's
proxy statement filed with the Securities and Exchange Commission
on May 12, 2020, furnished to stockholders in connection with the
Annual Meeting.
The Company encourages any stockholder that has not yet voted its
shares or is uncertain if their shares have been voted to contact
their broker or bank. The Board of Directors and management
respectfully requests stockholders as of the record date, May 6,
2020, to please vote their proxies as soon as possible.
Stockholders who have previously submitted their proxy or otherwise
voted for the Annual Meeting and who do not want to change their
vote need not take any action.
About Houston American Energy Corp.
Based in Houston, Texas, Houston American Energy Corp. is a
publicly-traded independent energy company with interests in oil
and natural gas wells, minerals and prospects. The company's
business strategy includes a property mix of producing and
non-producing assets with a focus on the Permian Basin in Texas,
Louisiana and Colombia.
Houston American reported a net loss attributable to common
stockholders of $2.75 million for the year ended Dec. 31, 2019,
compared to a net loss attributable to common shareholders of
$490,286 for the year ended Dec. 31, 2018. As of March 31, 2020,
the Company had $9.91 million in total assets, $485,772 in total
liabilities, and $9.42 million in total shareholders' equity.
The Company has incurred continuing losses since 2011, including a
loss of $850,990 for the three months ended March 31, 2020.
Additionally, as a result of the steep global economic slowdown
that began in March 2020 as the coronavirus pandemic spread, prices
realized from oil and gas sales declined sharply over the last
weeks of the quarter ended March 31, 2020, with such price declines
expected to persist until governments worldwide are confident that
the pandemic is adequately contained to permit renewed economic
activity. Depending upon the duration of the pandemic and the
resulting global economic slowdown, the Company may incur
continuing declines in revenues and increased losses, associated
from lower demand for energy and resulting depressed oil and gas
prices. However, during the three months ended March 31, 2020, the
Company raised a total, net of offering costs, of $4,434,169 in its
ATM offering. As of March 31, 2020, there were no remaining funds
available under the ATM Offering.
HUNT COMPANIES: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
-----------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Hunt Companies
Inc. to negative from stable. At the same time, S&P affirmed its
'BB-' issuer credit rating and 'BB-' issue rating on the firm's
senior secured notes. S&P's recovery rating on the notes remains
'4', reflecting its expectation of average (30%-50%; rounded
estimate: 40%) recovery in a default scenario.
S&P believes that Hunt's key leverage metrics could come under
pressure as earnings face headwinds and the company potentially
reduces its cash buffer that it has aggregated from the sales of
Hunt Real Estate Capital (HREC) and Pinnacle in the first quarter
of 2020. At the end of 2019, leverage on a debt-to-EBITDA and funds
from operations (FFO)-to-debt basis were 4.3x and 15%,
respectively, which were both within S&P's tolerances for the
rating. However, S&P expects that EBITDA could be down in 2020,
even with the addition of City Light and Power in the first quarter
(which the company has mentioned contributes about $10 million in
EBITDA) and adjusting for the loss of HREC and Pinnacle.
Hunt is active in several businesses that S&P thinks could be
impacted by the current recessionary environment. In particular,
the company's real estate development and lot development
businesses as well as its construction activity seem most
vulnerable. Although the company operates a relatively diverse
business and these sources do not make up the majority of the
company's earnings, S&P believes they could be material enough to
bring its key leverage and interest coverage metrics close to or
beyond its tolerances for the current rating in 2020. The path for
2021 and beyond remains somewhat unclear, although S&P expects some
improvement as the economy recovers.
Hunt is an opportunistic investor, both in terms of realizing and
investing in assets and businesses. Given the current buildup in
cash (Hunt had $216 million in surplus cash as of March 31, which
S&P nets against debt in its leverage calculations), S&P believes
the company will likely be looking to redeploy at least some of
that cash over the next 12 months, as opportunities present
themselves. If S&P assumes that some of that cash is redeployed
into earning assets, at a reasonable valuation, this could lead to
further deterioration in the rating agency's debt-to-EBITDA ratio
as the earnings brought on will likely not offset, at least
immediately, the addition to the numerator of the rating agency's
leverage ratio. However, at the same time, interest coverage, which
S&P expects could fall below 2x in 2020, would benefit somewhat.
The negative outlook reflects the potential for Hunt to sustain
leverage (based on debt to EBITDA and FFO to debt) and interest
coverage (EBITDA to interest) beyond S&P's thresholds (5x, 12%, and
2x, respectively) for the current rating over the next 12 months as
earnings potentially face challenges and the company redeploys dry
powder.
"We could lower the rating if net recourse debt to EBITDA exceeds
5x, FFO to debt falls below 12%, or EBITDA coverage of interest
falls below 2x over a sustained period, or if the company
approaches one of its covenant thresholds. We could also lower the
rating if the company's organizational structure limits financial
flexibility or if recurring earnings sources as a proportion of
total revenue declines," S&P said.
S&P believes an upgrade is unlikely over the next year. Over time,
S&P could upgrade Hunt if the rating agency expects the company to
consistently operate with net recourse debt to EBITDA significantly
below 4x, EBITDA coverage of interest above 3x, and FFO to debt
over 20%. However, S&P only would do so after further consideration
at that time of its ratings on the company relative to peers,
particularly taking into account the significant level of debt at
its operating subsidiaries, the volatility of its earnings, and its
margin compared with the leverage and interest coverage thresholds
listed above.
"Revising the outlook to stable would be contingent upon Hunt
maintaining satisfactory cushion relative to our downside
thresholds on all of our leverage and interest coverage metrics,"
S&P said.
ILPEA PARENT: S&P Affirms 'B' ICR; Ratings Off Watch Negative
-------------------------------------------------------------
S&P Global Ratings affirmed the 'B' long-term issuer credit and
issue ratings on Ilpea Parent Inc. (Ilpea) and removed them from
CreditWatch, where they were placed with negative implications on
April 1, 2020.
COVID-19 has drained financial flexibility, even if government
packages to support enterprises under lockdown and lower raw
material prices will support Ilpea's profit margins this year. S&P
has resolved the CreditWatch and affirmed its 'B' ratings because
it believes that management's prompt actions to contain costs, as
well as governments' salary contributions, should result in
adjusted debt to EBITDA of 5x-6x at year-end 2020. Additionally,
over the past few weeks the company closed EUR11.5 million in
committed lines and got access to a $8.3 million payment protection
program (PPP) loan, easing its reliance on short-term uncommitted
lines, which reached about EUR30 million at the end of the second
quarter. However, Ilpea's liquidity management remains a concern,
especially under current challenging market circumstances. The
group net debt to EBITDA covenant reached 3.92x in second-quarter
fiscal 2020, resulting in slightly lower than 15% headroom against
the 4.5x maximum threshold. Moreover, given the challenging market
conditions and uncertainty over a marked recovery during
second-half 2020, S&P cannot rule out further negative pressure.
Therefore, S&P has determined a negative outlook on the long term
rating.
The COVID-19 pandemic has led to tight covenant headroom and
decreasing liquidity buffers. Ilpea's reported net financial
position at April 30, 2020, surged to EUR224 million, about EUR20
million higher than at fiscal year-end 2019. Of this, EUR2.5
million was due to the Hoosier acquisition and a EUR5 million
exchange-rate impact. In addition, the portion of overdrafts lines
amounted to about EUR30 million from about EUR14 million at fiscal
year-end 2019, this is however balanced by higher cash of about
EUR18 million at April 30, 2020. S&P notes that during fiscal
third-quarter 2020 (started May 1), management has actively secured
EUR11.5 million of permanent funding to cover its liquidity needs.
Additionally, in March the group secured EUR3.8 million in Spain,
which was fully drawn at April 30, 2020. Management's goal is to
progressively curtail the recourse to uncommitted lines drawn
during the peak lockdown period. In addition, it is eligible to
receive a $8.3 million PPP loan in the U.S., which management
expects authorities will forego once 24 weeks have elapsed and no
U.S. employees are laid off. This will improve both the company's
net financial position and EBITDA calculation as defined by the
term loan B (TLB) agreement. Under S&P's updated base case, even
assuming the PPP loan is fully forgiven, S&P sees tight covenant
headroom. Absent such a measure, the company could face a covenant
breach by fiscal year-end 2020. Although S&P believes that Ilpea
has enough liquidity sources to face its commitments over the
following 12 months, thanks to minimized costs and capital
expenditure (capex), sources cover uses by just below 1.1x, which
indicates a less comfortable liquidity position than before.
The uncertain macroeconomic scenario casts a shadow over Ilpea's
deleveraging path. The current uncertain macroeconomic scenario
and gloomy expectations for light vehicle sales—S&P notes that
about 36% of the group's sales are tied to the auto sector--leaves
some uncertainty on Ilpea's ability to decrease its leverage over
the following two quarters, absent a marked uptick in business
activities. Notwithstanding an expected sharp sales drop by 16%-18%
this year from EUR378 million achieved in 2019, S&P believes
Ilpea's reported EBITDA margin could close at about 13%, virtually
unchanged from 2019. In fiscal second-quarter 2020 the group
already achieved a reported EBITDA margins of 13.1%, against 13.9%
for the same period last year.
"We note that this was thanks to governments establishing timely
support to cover workers' salaries and management's quick reactions
to decrease costs. Furthermore, lower raw material prices have
helped the group to sustain its profit margins. Under our revised
base case, we see Ilpea's reported EBITDA margin remaining at about
13% for fiscal 2020," S&P said.
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 negative outlook reflects the possibility of a downgrade over
the next six months if Ilpea faces more severe market headwinds,
durably weakening its cash flows and liquidity.
"We could downgrade Ilpea if FOCF turned negative due to more
severe than anticipated market circumstances, or if its cash
interest coverage is below 2.0x. Additionally, we could lower our
rating on Ilpea if its liquidity coverage does not improve above
1.2x, implying that reliance on overdraft lines is not replaced by
sufficient committed facilities, or if its covenant headroom
remains below 15%," S&P said.
"Given the current market circumstances, we consider an upgrade
unlikely over the next 12 months. An affirmation would hinge on
Ilpea ensuring adequate liquidity, implying sources cover uses
comfortably more than 1.2x, and restoring substantial covenant
headroom. An affirmation would also depend on Ilpea's funds from
operations (FFO) cash interest coverage being comfortably above
2.5x and neutral to slightly positive FOCF, with FFO to debt
trending toward 12%," the rating agency said.
INTELSAT ENVISION: Hires Katten Muchin as Counsel
-------------------------------------------------
Intelsat Envision Holdings LLC seeks authority from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ
Katten Muchin Rosenman LLP as its counsel to render independent
services on behalf of and at the sole direction of the special
committee of the board of managers of Intelsat Envision.
Pursuant to the resolution of the board of managers of Intelsat
Envision dated March 27, 2020, two disinterested managers were
appointed to the Board of Managers and the Special Committee was
established. The Disinterested Managers were appointed to the
Special Committee effective April 1, 2020, and constitute the sole
members of the Special Committee.
Before the Petition Date, Katten provided various legal services
relating to the Conflict Matters, including, without limitation:
(a) reviewing and analyzing historical transactions;
(b) analyzing potential claims held by Intelsat Envision;
(c) advising on board matters; and (d) reviewing and advising
on actions of the Debtors affecting Intelsat Envision.
Katten's work in connection with any and all Conflict Matters and
in connection with reviewing Transactions remains open and will
continue during the pendency of these chapter 11 cases.
Katten's standard hourly rates are:
Partners $770 - $1,555
Of Counsel $895 - $1,475
Associates $460 - $970
Paraprofessionals $195 - $580
Steven Reisman, Esq., a partner at Katten Muchin, disclosed in
court filings that his firm is "disinterested" as defined in
Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Reisman disclosed that his firm has not agreed to a variation of
its standard billing arrangements for its employment with the
Debtors, and that no Katten Muchin professional has varied his rate
based on the geographic location of the Debtors' bankruptcy cases.
The attorney also disclosed that the firm has represented the
Debtors in the 12-month period prior to the petition date. There
has been no change in rates since that time.
The Debtors have already approved the firm's budget and staffing
planfor the period from May 13, 2020 through August 13, 2020,
according to Mr. Reisman.
Katten Muchin can be reached through:
Steven J. Reisman, Esq.
Cindi M. Giglio, Esq.
Katten Muchin Rosenman LLP
575 Madison Avenue
New York, NY 10022
Telephone: (212) 940-8800 / (212) 940-8700
Facsimile: (212) 940-8776
Email: sreisman@kattenlaw.com
cindi.giglio@kattenlaw.com
About Intelsat S.A.
Intelsat S.A. -- http://www.intelsat.com/-- is a publicly held
operator of satellite services businesses, which provides a diverse
array of communications services to a wide variety of clients,
including media companies, telecommunication operators, internet
service providers, and data networking service providers. The
Company is also a provider of commercial satellite communication
services to the U.S. government and other select military
organizations and their contractors. The Company's administrative
headquarters are in McLean, Virginia, and the Company has extensive
operations spanning across the United States, Europe, South
America, Africa, the Middle East, and Asia.
Intelsat S.A., based in L-1246 Luxembourg, and its
debtor-affiliates, filed a Chapter 11 petition (Bankr. E.D. Va.
Lead Case No. 20-32299) on May 14, 2020. The petition was signed
by David Tolley, executive vice president, chief financial officer,
and co-chief restructuring officer. In its petition, the Debtor
disclosed $11,651,558,000 in assets and $16,805,844,000 in
liabilities.
KIRKLAND & ELLIS LLP, and KUTAK ROCK LLP, as counsels; ALVAREZ &
MARSAL NORTH AMERICA, LLC as restructuring advisor; PJT PARTNERS LP
as investment banker; STRETTO as claims and noticing agent.
IXS HOLDINGS: Moody's Confirms B2 CFR, Outlook Negative
-------------------------------------------------------
Moody's Investors Service confirmed the ratings of IXS Holdings,
Inc., - corporate family rating and the probability of default
rating at B2 and B2-PD; and senior secured term loan at B2. The
outlook is Negative. This action concludes the review for downgrade
initiated on March 26, 2020.
Ratings Confirmed:
Issuer: IXS Holdings, Inc.
Corporate Family Rating, at B2
Probability of Default Rating, at B2-PD
Senior Secured Bank Credit Facility, at B2 (LGD4)
Outlook Actions:
Issuer: IXS Holdings, Inc.
Outlook, Changed to Negative from Rating Under Review
RATINGS RATIONALE
IXS's ratings reflect Moody's belief that the company will maintain
its strong competitive position as a leader in automotive upfitting
services and a supplier of spray-on pick-up truck bedliners. The
company's upfitting services (about 56% of revenues) are expected
to continue to benefit from organic growth over the
intermediate-term with increasing build rates of light trucks as a
percentage of automotive vehicle production in North America. IXS
also benefits from somewhat counter cyclical growth away from the
automotive industry through its aftermarket spray-on pick-up truck
bedliner business (about 15% of revenues) and industrial coatings
business (about 15% of revenues).
IXS's Debt/EBITDA for the last twelve-month period ending March 31,
2020 was 5.9x and is expect to deteriorate over the coming quarters
as automotive production in North America recovers from temporary
shutdowns due to the coronavirus pandemic. IXS's strong EBITA
margins are expected to deteriorate to the low teens over the
near-term, yet remain relatively strong as an auto parts OEM
supplier. Similar to other automotive parts suppliers, IXS's
management has taken cost saving action to help mitigate the
negative impact from lower volumes. Yet, Moody's expects IXS to
generate positive free cash flow for the full year of 2020 as light
truck demand recovers and aftermarket demand recover from
reductions in social distancing policies.
The negative outlook reflects the risk that the expected gradual
recovery of automotive industry conditions impacted by the
coronavirus pandemic could be interrupted from a second wave of
infection rates, or from weakening vehicle demand with a more
extended recessionary conditions from job losses.
IXS is expected to have a good liquidity profile into 2021
supported by positive free cash flow generation and availability
under a $75 million asset based revolving credit facility which was
undrawn at March 31, 2020. Cash on hand, as of March 31, 2020, was
in the $15 -$20 million range. Moody's expects IXS to generate
positive free cash flow in the $20 to $30 million range in 2020
supported by the company's product focus on light trucks which is
expected to increase the share of automotive vehicle production. As
such, the ABL revolver is anticipated to remain largely unfunded.
The primary financial covenant under the asset-based revolver is
expected to be a fixed charge coverage ratio, triggered when
availability falls below certain levels which is not anticipated
over the next 12-15 months. The term loan does not have financial
covenants. Alternate liquidity will be limited as the company's
largely domestic assets secure the term loan and asset-based
revolver.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating upgraded over the intermediate-term is limited given the
company's moderate size and demonstrated willingness to support
shareholder returns under private equity ownership. Profitable
growth that increases scale could lead to an upgrade if the company
can sustain debt/EBITDA at around 3.0x or lower and EBITA/interest
expense, inclusive of restructuring charges, above 4x.
The ratings could be downgraded include a consumer shift away from
up-fitting options, or declining volume with any of the company's
large customers or platforms, or the expectation that debt/EBITDA
will be sustained above 4.75x, or EBITA/interest expense
approaching 2.0x in the second half of 2021. Debt funded
acquisition and/or shareholder returns, or a weak liquidity profile
could also drive a negative rating action.
IXS products and services are not directly exposed to material
environmental risks arising from increasing regulations on carbon
emissions. While automotive manufacturers continue to announce the
introduction of electrified products to meet increasingly stringent
regulatory requirements, demand for the company's products are not
dependent on a vehicle's powertrain. Moody's believes that with
ongoing improvements in fuel efficiency, pick-up truck demand will
remain robust for the foreseeable future.
The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.
IXS Holdings, Inc., headquartered in Huntsville, AL, is the parent
company of Innovative Xcessories & Services LLC. Through its
subsidiaries, IXS provides protective coatings for pick-up truck
beds, as well as a wide range of other up-fit services and
accessories to automotive manufacturers. IXS is also engaged in the
sale of Line-X franchises within North America that are primarily
used for the application of spray-on truck bedliners, and the sale
of chemicals and machinery to franchise and licensees that are used
primarily for the application of spray-on truck bedliners
nationally and internationally. Revenues for the LTM period ending
March 31, 2020 were approximately $595 million. The company is
owned by affiliates of Clearlake Capital Group L.P.
JO-ANN STORES: Moody's Cuts CFR to Caa1 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service downgraded Jo-Ann Stores LLC.'s corporate
family rating to Caa1 from B3, its probability of default rating to
Caa1-PD/LD, its first lien term loan to Caa1 and second lien term
loan to Ca. The outlook was changed to stable from negative.
The downgrades reflect Jo-Ann's series of open market debt
repurchases at a material discount to par which Moody's has deemed
to be a distressed exchange and event of default under Moody's
definition of default. Moody's appended the company's probability
of default rating with an LD designation which will be removed
within 3 business days of the closing of all trades (expected over
the next few weeks).
The aggregate reduction in the face amount of debt is about $218
million. Moody's estimates pro-forma debt/EBITDA will drop to 6.1x
from nearly 7.0x. Jo-ann has adequate liquidity evidenced by cash
balances at the end of Q1 of $147 million and revolver availability
of $83 million.
Downgrades:
Issuer: Jo-Ann Stores LLC.
Probability of Default Rating, Downgraded to Caa1-PD /LD from B3-PD
(/LD appended)
Corporate Family Rating, Downgraded to Caa1 from B3
Senior Secured 1st Lien Term Loan, Downgraded to Caa1 (LGD3) from
B3 (LGD3)
Senior Secured 2nd Lien Term Loan, Downgraded to Ca (LGD6) from
Caa1 (LGD5)
Outlook Actions:
Issuer: Jo-Ann Stores LLC.
Outlook, Changed to Stable from Negative
RATINGS RATIONALE
Jo-Ann Stores LLC. (Caa1 stable) is constrained by challenges
caused by the outbreak of COVID-19, the company's small size and
leverage profile, weak operating results in FY20 going into the
pandemic due to stagnant demand, and margin pressure. Governance
risk is a key rating constraint given the company's financial
sponsor ownership can lead to aggressive financial strategies.
Jo-Ann is supported by the re-opening of the vast majority of it
stores by early June, rising demand for personal protective
equipment that is expected to continue, and to improving demand for
do-it-yourself arts and crafts and higher margins relative to other
retail segments and adequate liquidity. The company received
essential service status and so the vast majority of its stores
have been either fully open and or providing curbside and
buy-online-pick-up-in-store services which has helped the company
partially mitigate the impact of the pandemic.
The rapid spread of the coronavirus outbreak, deteriorating global
economic outlook, low oil prices, and high asset price volatility
have created an unprecedented credit shock across a range of
sectors and regions. Moody's regards the coronavirus outbreak as a
social risk under its ESG framework, given the substantial
implications for public health and safety. The pandemic exacerbated
the pressure on the company's debt trading prices leading to the
company's decision to repurchase its debt at a substantial discount
which is reflected in its action.
The stable outlook reflects that Jo-Ann can manage through the
COVID-19 challenges given the demand for its products and adequate
liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if liquidity deteriorates or should the
probability of default increase including should the company pursue
further transactions Moody's would deem to be a distressed
exchange.
Rating could be upgraded once the impact of COVID-19 subsides, if
EBIT/interest can sustain above 1.25x, and when the probability of
transactions Moody's would deem to be a distressed decline.
Through its operating subsidiaries, Jo-Ann Stores Holdings Inc. is
a leading retailer of fabrics and craft supplies offering a wide
range of products for quilting, apparel, craft and home décor
sewing. Jo-Ann operates 867 retail stores in 49 states as of
November 2, 2019. Annual revenues are approximately $2.3 billion.
The company is majority owned by affiliates of Leonard Green &
Partners L.P.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
KAREN DORIS: Seeks to Hire Keery McCue as Counsel
-------------------------------------------------
Karen Doris, LLC, seeks authority from the US Bankruptcy Court for
the District of Arizona to hire Keery Mccue, PLLC, as its counsel.
Karen Doris requires Keery McCue to:
a. prepare pleadings and applications;
b. conduct examinations incidental to administration;
c. advise the Debtor of its rights, duties and obligations
under the Chapter 11 Bankruptcy Code;
d. take any and all other necessary action incident to the
proper preservation and administration of the Chapter 11 estate;
and
e. advise the Debtor in the formulation and presentation of a
plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure
statement and concerning any and all matters relating thereto.
The firm's hourly rates range from $135 to $395.
Keery McCue neither holds nor represents any interest adverse to
the Debtor's bankruptcy estate, according to court filings.
The firm can be reached through:
Martin J. McCue, Esq.
Patrick F. Keery, Esq.
Keery McCue, PLLC
6803 East Main Street, Suite 1116
Scottsdale, AZ 85251
Tel: (480) 478-0709
Fax: (480) 478-0787
Email: mjm@keerymccue.com
pfk@keerymccue.com
About Karen Doris, LLC
Based in Paradise Valley, Arizona, Karen Doris, LLC, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz.
Case No. 20-06955) on June 9, 2020, listing under $1 million in
both assets and liabilities. Patrick F Keery at Keery Mccue, PLLC,
stands as the Debtor's counsel.
LAST FRONTIER: Unsecureds Get $50 Per Month Until Paid in Full
--------------------------------------------------------------
Last Frontier Realty Corporation, filed an Amended Plan of
Reorganization.
Class 3 Claimant – Propel Financial Services, as agent and
attorney-in-fact for Propel Funding National 1, LLC, is impaired.
Propel Proof of Claim No. 4 is supported by a Property Tax Payment
Agreement executed by the Debtor on May 15, 2015 in the original
principal amount of $18,995 (the "2015 Note"). As of October 16,
2019, Propel alleges that the amount owing under the 2015 Note is
$36,497. Any allowed amount of Propel's claim relating to Propel
Proof of Claim No. 4 will be paid in accordance with the 2015 Note,
save and except the following: Payments from and after the
Effective Date will begin on the first day of the month following
the Effective Date and will continue on the same day of each month
thereafter for a term of 120 months.
Class 5 Allowed Unsecured Claims are impaired. Unsecured Creditors
will share pro-rata in the Unsecured Creditor's Pool. The Debtor
shall pay $50 per month for the number of months necessary to pay
all allowed unsecured creditors in full. The Unsecured Creditors
shall be paid quarterly on the last day of each calendar quarter.
Payments to the Unsecured Creditors will commence on the last day
of the first full calendar quarter after the Effective Date. Based
upon the Debtor's schedules the total amount of unsecured creditors
will be $2,500.
The Debtor's obligations under this Plan will be satisfied out of
the ongoing operations of the Reorganized Debtor.
A full-text copy of the Amended Plan of Reorganization dated June
1, 2020, is available at https://tinyurl.com/ybl6hhcc from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Eric A. Liepins
ERIC A. LIEPINS, P.C.
12770 Coit Road
Suite 1100
Dallas, Texas 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
About Last Frontier Realty Corp.
Last Frontier Realty Corp. is a Texas corporation which owns two
pieces of real property.
The Debtor previously filed a Chapter 11 petition (Bankr. N.D. Tex.
Case No. 17-30454) on Feb. 6, 2017. This case was dismissed on
July 3, 2017.
Last Frontier Realty sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 17-32681) on July 10,
2017. At the time of the filing, the Debtor was estimated to have
assets and liabilities of less than $1 million. Judge Stacey G.
Jernigan oversees the case. Eric A. Liepins, P.C., is the Debtor's
bankruptcy counsel.
LEXARIA BIOSCIENCE: Shareholders Pass All Proposals at Meeting
--------------------------------------------------------------
Lexaria Bioscience Corp. held its annual and special meeting of
shareholders on June 23, 2020, at which the shareholders:
(a) elected Chris Bunka, John Docherty, Nicholas Baxter, Ted
McKechnie, and Brian Quigley as directors;
(b) ratified the appointment of Davidson & Company LLP as
auditors;
(c) approved a reverse stock split on a ratio of not less than
two current shares for one reverse stock split share and
not more than 30 current shares for one reverse stock
split share;
(d) approved an amendment to the Company's Bylaws; and
(e) ratified the lawful actions of the directors for the past
year.
About Lexaria
Lexaria Bioscience Corp. -- http://www.lexariabioscience.com/-- is
a global innovator in drug delivery technology. Its patented
DehydraTECH drug delivery technology changes the way active
pharmaceutical ingredients enter the bloodstream, promoting
healthier ingestion methods, lower overall dosing and higher
effectiveness for lipophilic active molecules. DehydraTECH
increases bio-absorption; reduces time of onset; and masks unwanted
tastes for orally administered bioactive molecules including
nicotine, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs)
and other molecules. Lexaria has licensed DehydraTECH to multiple
companies for use in various oral application formats, including to
a world-leading tobacco producer for the development of smokeless,
oral-based nicotine products. Lexaria operates a licensed in-house
research laboratory and holds a robust intellectual property
portfolio with 16 patents granted and over 60 patents pending
worldwide.
Lexaria reported a net loss and comprehensive loss of $4.16 million
for the year ended Aug. 31, 2019, compared to a net loss and
comprehensive loss of $6.61 million for the year ended Aug. 31,
2018. As of Feb. 29, 2020, the Company had $1.98 million in total
assets, $63,290 in total liabilities, and $1.92 million in total
stockholders' equity.
Davidson & Company LLP, in Vancouver, Canada, the Company's
independent accounting firm since 2016, issued a "going concern"
qualification in its report dated Nov. 13, 2019 citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
LEXMARK INT'L: Fitch Affirms Then Withdraws 'B-' IDR
----------------------------------------------------
Fitch Ratings has affirmed Lexmark International II LLC's and
Lexmark International Inc.'s Long-Term Issuer Default Ratings at
'B-'/Stable Outlook. Additionally, Fitch has withdrawn Lexmark's
ratings for commercial reasons. Fitch reserves the right in its
sole discretion to withdraw or maintain any rating at any time for
any reason it deems sufficient.
The ratings were withdrawn with the following reason: commercial
purposes.
KEY RATING DRIVERS
Coronavirus Impact: Lexmark indicates it has experienced some
manufacturing delays as a result of the coronavirus pandemic, but
has minimized the impact by utilizing inventory on hand and
realigning certain production activities. All manufacturing
facilities have reopened, and a majority are at or near full
capacity. Fitch estimates Lexmark's hardware and supplies revenue
will decline 10%, and other revenue 5% in the second quarter,
improving to 5% and 2%, respectively in the third quarter before
stabilizing in the fourth quarter. Fitch assumes the company
achieves margin profile in the remainder of 2020 consistent with
the first quarter, reflecting lower hardware sales.
2020 Senior Notes: In March, Lexmark repaid its public bonds
through a $339.1 million draw on the tranche B-2 commitments
provided by China CITIC Bank Corporation Limited, Guangzhou Branch.
In 2019, Fitch upgraded Lexmark's Long-Term IDR to 'B-' following
the disclosure of CITIC's commitment, thereby addressing the
refinancing risk associated with the 2020 notes.
Liquidity & Refinancing: While the tranche B-2 addressed Lexmark's
near-term liquidity needs, the structure of the loan due 2023
includes amortization payments that increase significantly over
2021-2022. Combined with escalating amortization payments
associated with Lexmark's LBO acquisition term loans, this
underscores the need for Lexmark to refinance its acquisition debt
following the maturity of its 2020 notes in order to avoid a
liquidity deficit in 2021. Fitch believes Lexmark will ultimately
be able to obtain refinancing, assuming it sustains operational
performance, and credit markets are healthy. Ninestar and PAG have
agreed to provide Lexmark additional contributions of up to $75
million to bolster liquidity.
Operational Performance: Lexmark modestly exceeded Fitch's
performance expectations in 2019 as revenue increased 1%,
reflecting 2% supplies growth and $25 million in services revenue
growth. Lexmark's gross profit margin increased 4bps more than
revenue growth, reflecting the increase in supplies and services
revenue. Lexmark's supplies and hardware performance was better
than the market overall. Operating EBITDA margin improved 330bps
owing to gross margin improvement and a mid-teens reduction in
operating expense, following earlier restructuring actions. While
the outlook remains uncertain due to the coronavirus, Fitch
anticipates a return to 2019 levels in 2021.
ESG - Governance: Lexmark has an Environmental, Social and
Governance Relevance Score of '4' for Governance Structure because
while the Board of Directors is independent, ownership is
concentrated among Ninestar, PAG and Legend Capital, and is
relevant to the rating in conjunction with other factors.
Lexmark has an ESG Relevance Score of '4' for Group Structure due
to the complexity of the group structure and the presence of
material related-party transactions with Ninestar, and is relevant
to the rating in conjunction with other factors.
DERIVATION SUMMARY
Lexmark is materially smaller on a revenue basis than its closest
peers, including HP Inc. (BBB+/Negative) and Xerox Corporation
(BB/Stable). Lexmark is also smaller than other printer companies
including Canon, Ricoh, Fuji Xerox, Epson and Brother. Lexmark's
operating EBITDA margin is approximately four points below Xerox's,
but roughly five points above HP's, owing to HP's lower margin PC
business. Lexmark's printing revenue profile has been challenged,
although it has stabilized more effectively than Xerox. Lexmark's
business model appears sustainable over the intermediate term given
its market position. The company's strategy to increase hardware
placements and leverage its owner's relationships and capacity in
China offers the potential to offset secular declines, which Fitch
views as an upside to its conservative base rating case. However,
Fitch continues to see meaningful execution risk.
Lexmark's rating remains limited by its refinancing risk and
associated liquidity positions. Addressing the near-term
refinancing risk in conjunction with maintaining an appropriate
liquidity profile will allow Lexmark to pursue its growth
initiatives. Escalating term loan amortization, both for
acquisition debt associated with Lexmark's LBO as well as the term
loan B tranche to refinance the 2020 notes, will pressure Lexmark's
liquidity in 2021 absent refinancing. Fitch believes Lexmark's
operational stabilization; continued execution of strategic
initiatives and stable leadership should enable the company to
refinance its capital structure. However, uncertainty over market
access and the impact of the coronavirus are potential limiting
factors that could affect the rating.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Low single-digit revenue decline in 2020 due to the
coronavirus and very low single-digit growth thereafter;
-- Mid-teens operating EBITDA margin in 2020 with higher supply
sales consistent with 1Q20 and low-teens thereafter reflecting
higher equipment sales, consistent with 2019;
-- Low single-digit capital intensity;
-- Eventual ability to refinance acquisition debt on economic
terms.
RATING SENSITIVITIES
Rating Sensitivities are no longer relevant given its rating
withdrawals.
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
Lexmark had $128.5 million in cash and cash equivalents at March
31, 2020. While uncertain due to the impact from the coronavirus
pandemic, Fitch believes Lexmark will generate approximately $20
million in FCF in 2020 with a total cash use of approximately $140
million. Lexmark has an additional $128 million in amortization in
2020. Ninestar and PAG have agreed to provide additional
contributions to Lexmark up to $75 million upon Lexmark's request,
if needed to satisfy its financial obligations. Lexmark faces $450
million in maturities and amortization in 2021, which it will be
unlikely to meet from internally generated sources. However, $200
million represents a CITIC revolving facility, which has previously
been extended. CITIC is also lender for all of Lexmark's term
loans. Based upon Fitch's projection for 2021, Lexmark could have
sufficient liquidity to meet its obligations.
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
Lexmark has an ESG Relevance Score of '4' for Governance Structure
due to the fact that while the Board of Directors is independent,
ownership is concentrated among Ninestar, PAG and Legend Capital,
and is relevant to the rating in conjunction with other factors.
Lexmark has an ESG Relevance Score of '4' for Group Structure due
to the complexity of the group structure and the presence of
material related-party transactions with Ninestar, and is relevant
to the rating in conjunction with other factors.
Except for the matters discussed, the highest level of ESG credit
relevance, if present, is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity(ies),
either due to their nature or the way in which they are being
managed by the entity(ies).
Lexmark International II, LLC
- LT IDR B-; Affirmed
- LT IDR WD; Withdrawn
Lexmark International Inc.
- LT IDR B-; Affirmed
- LT IDR WD; Withdrawn
LILIS ENERGY: Case Summary & 50 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Lilis Energy, Inc.
201 Main Street, Suite 700
Fort Worth, TX 76102
Business Description: Lilis is a publicly-traded, independent
oil and natural gas company focused on
the exploration, development,
production, and acquisition of crude
oil, natural gas, and natural gas
liquids. Headquartered in Fort Worth,
Texas, Lilis is a pure play Permian
Basin company with focused operations in
the Delaware Basin. For more
information, visit
https://www.lilisenergy.com.
Chapter 11 Petition Date: June 28, 2020
Court: United States Bankruptcy Court
Southern District of Texas
Six affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Lilis Energy, Inc. (Lead Debtor) 20-33274
Lilis Operating Company, LLC 20-33273
Brushy Resources, Inc. 20-33275
Hurricane Resources LLC 20-33276
Impetro Operating LLC 20-33277
ImPetro Resources, LLC 20-33278
Judge: Hon. David R. Jones
Debtors'
General
Bankruptcy
Counsel: Harry A. Perrin, Esq.
VINSON & ELKINS LLP
1001 Fannin Street, Suite 2500
Houston, TX 77002-6760
Tel: 713.758.2222
Fax: 713.758.2346
Email: hperrin@velaw.com
- and -
David S. Meyer, Esq.
George R. Howard, Esq.
Steven Zundell, Esq.
Michael A. Garza, Esq.
VINSON & ELKINS LLP
1114 Avenue of the Americas, 32nd Floor
New York, NY 10036
Tel: 212.237.0000
Fax: 212.237.0100
Email: dmeyer@velaw.com
ghoward@velaw.com
szundell@velaw.com
mgarza@velaw.com
Debtors'
Investment
Banker &
Financial
Advisor: BARCLAYS CAPITAL INC.
Debtors'
Accountants &
Tax Advisors: BDO, USA LLP
Debtors'
Notice,
Claims &
Solicitation
Agent: STRETTO
https://cases.stretto.com/LilisEnergy
Debtors'
Counsel in
the ARM/SCM
Litigation &
Oil Patch Group
Litigation: ZABEL FREEMAN LLP
Total Assets as of December 31, 2019: $258,599,000
Total Liabilities as of December 31, 2019: $251,226,000
The petitions were signed by Joseph C. Daches, chief executive
officer, president, and chief financial officer.
A copy of Lilis Energy's petition is available for free at
PacerMonitor.com at:
https://is.gd/9kQ5AW
Consolidated List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Elite Well Services, LLC Trade $2,839,174
Attn: Jeff Jordan, President
2702 North Freeman Ave.
Artesia, NM 88210
Tel: 575-736-4411
2. War Horse Resources, LLC Trade $1,985,994
Attn: Danny Ford, Owner
3030 NW Expressway
Ste 200 B
Oklahoma City, OK 73112
Tel: 405-239-0923
Email: dford@warhorseresources.com
3. Helmerich & Payne Trade $1,393,463
International Drilling
Attn: John W. Lindsay
President
1437 South Boulder Ave
Tulsa, OK 74119
Tel: 918-742-5531
Email: accountmanagement@hpidc.com
4. Fesco, Ltd. Trade $761,198
Attn: Steve Findley, President
1000 Fesco Ave.
Alice, TX 78332
Tel: 361-667-7000
5. Zealous Energy Services, LLC Trade $660,421
Attn: Kenneth Doc Leblanc
President
899 Rees St.
Breaux Bridge, LA 70517
Tel: 337-332-4390
6. QES Wireline LLC Trade $639,874
Attn: Christopher J. Baker
President
1415 Louisiana
Ste. 2900
Houston, TX 77002
Tel: 832-518-4094
Email: info@qesinc.com
7. Applied US Energy Inc. Trade $613,184
Attn: Jim Jeffiers
Vice President
22510 Network Place
Chicago, IL 6673-1225
Tel: 877-279-2799
Email: jjeffiers@applied.com
8. B&L Pipeco Services, Inc. Trade $575,272
Attn: Steve Tait, President
20465 SH
Ste 200
Houston, TX 77070
Tel: 281-955-3500
9. Culberson Construction LLC Trade $546,765
Attn: Brad Culberson, President
4500 Colony Rd
Granbury, TX 76048
Tel: 817-573-3079
10. KD Trucking, LLC Trade $538,339
Attn: Baldo Nevarez, Owner
7424 FM 52
Perrin, TX 76486
Tel: 940-229-0290
Email: kdtruckingllc@gmail.com
11. SCM Water, LLC Trade $487,328
Attn: John Poarch
President
20329 State Highway 249, FIR 4
Houston, TX 77070
Tel: 281-655-3200
12. Event Solutions of Louisiana, LLC Trade $443,905
Attn: Frank Gerami, President
1701 W. Willow Street
Lafayette, LA 70583
Tel: 337-261-3378
13. AllStates Production Trade $413,051
Equipment Co, LLC
Attn: J Scot Lee
President
1217 SE 29th Street
Oklahoma City, OK 73143
Tel: 405-672-2323
Email: allstates@coxinet.net
14. Clearpoint Chemicals, LLC Trade $400,000
Attn: Harlan Foster, CEO
18300 Scenic Highway 98
Suite F
Fairhope, AL 36532
Tel: 251-990-7311
15. Phoenix Technology Trade $368,261
Services USA Inc.
Attn: Mike Buker, President
12329 Cutten Road
Houston, TX 77066
Tel: 713-337-0600
16. West Texas Water Well Service Trade $338,173
Attn: Russell Southerland
President
3410 Mankins Ave
Odessa, TX 79764
Tel: 432-556-6621
Email: russell@wtwws.com
17. Newpark Drilling Fluids LLC Trade $321,434
Attn: Gregg S. Piontek
SVP & CFO
9320 Lakeside Blvd.
Suite 100
The Woodlands, TX 77381
Tel: 281-754-8600
Email: gpiontek@newpark.com
18. Baker Huges Oilfield Operations Trade $275,632
Attn: Lorenzo Simonelli, CEO
2929 Allen Parkway
Houston, TX 77019
Email: simonelli@bakerhughes.com
19. Platinum Pipe Rentals, LLC Trade $257,890
Attn: Larry Nunez
Vice President
2580 Highway 385 South
Odessa, TX 79766
Tel: 432-337-1111
20. Bronco Oilfield Services Trade $251,750
Attn: Mark Degarmo
Vice President
4001 W. 7th Street
Elk City, OK 73644
Tel: 337-359-9960
Email: mdegarmo@broncoservices.com
21. Petrostar Services, LLC Trade $246,049
Attn: Jim Brown, CEO
4350 Lockhill Selma Rd Suite 150
San Antonio, TX 78249
Tel: 210-463-9929
22. Hammer Down Oilfield Services, LLC Trade $229,859
Attn: Glen Shepard, President
1136 N. Kirkwood
Houston, TX 77043
Tel: 281-870-9182
23. Butchs Rat Hole & Anchor Trade $225,130
Service Inc.
Attn: Scott Bryant, President
700 Austin Street
Levelland, TX 79336
Tel: 806-894-6294
24. 5J Oilfield Services, LLC Trade $224,500
Attn: Tony Cashion
Vice President of Business
Development
4090 N. US Hwy. 79
Palestine, TX 75801
Tel: 903-729-0969
25. Rigup Inc. Trade $222,070
Attn: Xuan Yong, CEO
111 Congress Ave
Suite 900
Austin, TX 78701
Tel: 512-501-5452
26. GR Lift LP Trade $210,583
Attn: Wayne Richards
President
2150 Town Square PL
Ste 410
Sugar Land, TX 77479
Tel: 281-201-6812
27. 4-Star Tank Rentals LP Trade $208,275
Attn: Tood Ethridge, CEO
657 E Highway 115
Kermit, TX 79745
Tel: 432-586-3111
Email: todd.ethridge@4startankrental.com
28. A.C.T. Equipment Company LLC Trade $206,043
Attn: Donald A. Spurlock
President
304 NW Mustang Dr
Andrews, TX 79714
Tel: 432-523-4184
Email: donald@actequipmentllc.com
29. Imperative Chemical Trade $204,141
Partners, Inc.
Attn: Brandon Martin
SVP of Strategic Accounts
201 W. Wall Street
Suite 900
Midland, TX 79701
Tel: 877-523-3147
30. Select Energy Services Trade $200,816
Attn: Holli Ladhani, CEO
1233 West Loop South
Suite 1400
Houston, TX 77027
Tel: 713-235-9500
31. Marsz Safety, LLC Trade $199,460
Attn: Sean Farnsworth, Owner
415 Greenwich Blvd.
San Antonio, TX 78209
Tel: 210-560-6705
32. Flex Leasing Power & Trade $191,453
Services LLC
Attn: Mark G. Schnepel, CEO
6400 S Fiddlers Green Circle
Suite 900
Greenwood Village, CO 80111
Tel: 720-573-7664
33. Bell Supply Company, LLC Trade $177,036
Attn: Bob Huber
Vice President - Operations
3314 Hwy 82
Gainesville, TX 76240
Tel: 940-665-1486
Email: bhuber@bellsupplystores.com
34. Black Star Energy Services, LLC Trade $173,759
Attn: Kevin Blackwood, President
12401 WCR 100
Odessa, TX 79765
Tel: 432-272-3395
Email: kevin.blackwood@blackstarenergyservices.com
35. Basic Energy Services, L.P. Trade $171,115
Attn: Keith L. Schilling, CEO
801 Cherry Street
Suite 2100
Fort Worth, TX 76102
Tel: 830-334-4010
36. Belco Manufacturing Co., Inc. Trade $165,352
Attn: Rick Ramirez
Operations Manager
2303 Taylors Valley Road
Belton, TX 76513-0210
Tel: 254-933-9000
37. The Wellbos Company, LLC Trade $162,418
Attn: Jeff McNamara, President
12450 Cutton Rd.
Houston, TX 77066
Tel: 281-820-2545
38. FNG Construction, Inc. Trade $157,217
Attn: Courtney Settle
President
1816 6th Ave.
Fort Worth, TX 76110
Tel: 432-232-3766
Email: contact@fngconstructioninc.com
39. Platinum Oilfield Services LLC Trade $153,930
Attn: Mike Sanchez, Owner
109 W Broadway St.
Andrews, TX 79714
Tel: 432-634-0180
40. Tall City Service Co., LP Trade $143,121
Attn: Robert Acuna
Safety Manager
6001 S Hwy 385
Odessa, TX 79766
Tel: 432-332-8863
Email: robert.acuna@tcws.com
41. Porter Hedges LLP Trade $138,032
Attn: Robert G. Reedy
Managing Partner
1000 Main Street
36th Floor
Houston, TX 77002
Tel: 713-226-6674
Email: rreedy@porterhedges.com
42.Verdad Oil & Gas Corporation Trade $133,171
Attn: Will Beecherl, CEO
5950 Sherry Lane
Suite 700
Dallas, TX 75225
Tel: 214-838-3000
43. Onyx Contractors Operations, LP Trade $121,965
Attn: Christi Brown, CFO
1010 FM 1788
Midland, TX 79706
Tel: 432-561-8900
Email: christi@onyxcontractors.com
44. Johnson Specialty Tools, LLC Trade $120,111
Attn: Craig Johnson, Founder
11208 West County Rd. 46
Midland, TX 79707
Tel: 432-618-121
45. WellFirst Technologies, Inc. Trade $113,718
Attn: Derek Martin
District Manager
2209 E Loop 281
Longview, TX 76505
Tel: 361-813-8504
Email: dmartin@wellfirst.com
46. National Oilwell DHT, L.P. Trade $113,054
Attn: Clay Williams, CEO
7909 Parkwood Circle Drive
Houston, TX 77036
Tel: 713-375-3700
47. RWLS, LLC Trade $110,695
Attn: Matt Gray
President
1302 Houston St.
Levelland, TX 79336
Tel: 806-897-0735
Email: mgray468@aol.com
48. Gryphon Oilfield Solutions, LLC Trade $104,968
Attn: Andy Easton, President
11300 Windfern Road
Houston, TX 77064
Tel: 281-738-3100
49. SES Holdings, LLC Trade $99,907
Attn: Pat Anderle, President
1002 Carpenter St
Bridgeport, TX 76426
Tel: 940-683-1600
Email: panderle@peakoilservices.com
50. Hemmen Associates, Inc. Trade $96,815
Attn: James Hazelbush
Engineer
5375 E Loop 281
Longview, TX 75602
Tel: 970-629-1738
Email: jamesh@hpumpsystems.com
MAIN CONSTRUCTION: Taps Davis Miles as Legal Counsel
----------------------------------------------------
Main Construction and Landscape, LLC, received approval from the
U.S. Bankruptcy Court for the District of Arizona to hire Davis
Miles McGuire Gardner, PLLC as its legal counsel.
The firm's services will include advising Debtor of its powers and
duties under the Bankruptcy Code and assisting Debtor in the
preparation of its Chapter 11 plan.
Davis Miles has no connection with Debtor, creditors or any other
"party in the interest," according to court filings.
The firm can be reached through:
Pernell W. McGuire, Esq.
M. Preston Gardner, Esq.
Davis Miles McGuire Gardner, PLLC
40 E. Rio Salado Parkway, Suite 425
Tempe, AZ 85281
Telephone: (480) 733-6800
Fax: (480) 733-3748
efile.dockets@davismiles.com
About Main Construction and Landscape
Main Construction and Landscape, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
20-06728) on June 3, 2020. At the time of the filing, Debtor had
estimated assets of between $100,001 and $500,000 and liabilities
of between $500,001 and $1 million. Judge Daniel P. Collins
oversees the case. Debtor has tapped Davis Miles McGuire Gardner,
PLLC as its legal counsel.
METRO BURGH: Unsecured Creditors to Recover 100% by November
------------------------------------------------------------
Metro Burgh Properties, L.P., furnished a Chapter 11 Plan and a
Disclosure Statement.
The Debtor's principal is an owner of several business entities.
One such entity was sold on April 1, 2020 with Debtor's principal
receiving sale proceeds sufficient to pay all creditors in full.
Because the sale proceeds consist of certain stock interests,
however, a liquidation of said stock interests is restricted for a
certain period of time. The Debtor's principal can, and will,
liquidate the stock required to fully fund a 100% payment plan but
cannot do so immediately. As such, the Debtor's Plan will be fully
funded by no later than Nov. 30, 2020 and will result in full
payment of any and all allowed claims herein.
Despite the Debtor's ability to fully fund the Plan by no later
than November 30, 2020 as is set forth above, the Debtor hopes to
fund same and conclude this Chapter 11 Case much sooner. To that
purpose, the Debtor has received a loan commitment from Enterprise
Bank which is expected to close in June, 2020. If, in fact, the
loan can close in June, which is fully anticipated, the Plan will
be fully funded in June allowing for full payment of all allowed
claims herein.
In either event, allowed claims will be paid 100% and in no event
will funding of the Plan occur later than November 30, 2020.
General unsecured non-tax claims with a total claim of $62,273.
The claimants are Peoples Natural Gas Company, LLC, Chase Bank,
Hilltop Hospitality, and Metro Burgh Storage. Each creditor will
be paid 100% of its allowed claim by no later than Nov. 30, 2020.
A refinance of Debtor's assets or a capital contribution from
Debtor’s principal will generate sufficient proceeds to make the
required payments.
A full-text copy of the Disclosure Statement dated June 1, 2020, is
available at https://tinyurl.com/y99h75uj from PacerMonitor.com at
no charge.
About Metro Burgh Properties
Metro Burgh Properties, L.P., is the owner of commercial real
property with an appraised value of $10,300,000.
Its primary secured creditor, i.e. Citizens Bank, declared Debtor
to be in default of its loan obligations despite Debtor being fully
current in regard to its loan payments. Even though Citizen Bank
was protected by approximately $5,000,000 in equity in its
collateral and despite the Debtor being fully current on its loan
payments, Citizens Bank had commenced a foreclosure proceeding
against the Debtor and was seeking the appointment of a receiver
based upon, inter alia, Debtor being behind in its real estate tax
payments, Debtor’s failure to provide certain information called
for in the loan documents and similar type alleged "defaults."
To stay foreclosure, Metro Burgh Properties, L.P., sought Chapter
11 protection (Bankr. W.D. Pa. Case No. 20-20824) on ___, 2020.
Counsel for the Debtor:
ROBERT O LAMPL
JOHN P. LACHER
RYAN J. COONEY
SY 0. LAMPL
223 Fourth Avenue, Floor
Pittsburgh, PA 15222
Tel: (412) 392-0330
Fax: (412) 392-0335
E-mail: rIamplIampIlaw.com
MINERALS TECHNOLOGIES: S&P Rates $400MM Senior Unsecured Notes BB-
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating to
Minerals Technologies Inc.'s proposed senior unsecured notes. The
recovery rating is '5', reflecting S&P's expectation of a modest
(10%-30%; rounded estimate: 15%) recovery in the event of payment
default. S&P based the rating on preliminary terms and conditions.
At the same time, S&P affirmed its 'BB' issuer credit rating on
Minerals Technologies and its 'BB+' issue-level rating on the
company's secured debt. The recovery rating remains '2'.
This rating action follows the announcement that the company will
be issuing $400 million of senior unsecured notes due 2028 to repay
its existing fixed rate term loan and outstanding revolver
borrowings and for general corporate purposes. S&P expects this
cash to be held on the balance sheet to boost the company's
liquidity profile.
"The affirmation reflects our expectation for the company to
maintain ample liquidity and prudent financial policies with FFO to
debt in the 20%-30% range," S&P said.
"The stable outlook reflects our view that EBITDA and cash flows
will weaken somewhat in 2020 before returning to 2019 levels in
2021," the rating agency said.
S&P expects the company will focus on cost-efficiency measures and
will employ prudent financial policies in order to navigate the
challenging macroeconomic environment. It expects operating
performance and credit measures will remain appropriate for the
rating, including weighted-average FFO to debt greater than 20% and
debt to EBITDA around 3x. S&P's base-case scenario does not factor
in any large debt-funded acquisitions or shareholder rewards in the
near term.
"We could lower the ratings within the next 12 months if Minerals
Technologies' operating performance weakens such that EBITDA
margins deteriorate by at least 600 basis points (bps). This could
happen if the current recession lasts longer or if the impact of
this recession on Minerals Technologies' is more severe than we are
currently forecasting. In this scenario, we believe FFO to debt
would fall below 20% for a sustained period and/or debt to EBITDA
would exceed 4x on a sustained basis. We could also take a negative
rating action if the company pursues a large debt funded
acquisition or shareholder rewards," S&P said.
"We could raise ratings within the next year if the company's
operating performance strengthens meaningfully above our base-case
forecast resulting from better-than-expected performance
improvements in the company's four business segments. We could
raise the ratings by one notch if these performance improvements
lead to stronger credit metrics, such that we expect
weighted-average FFO to debt to exceed 30% and debt to EBITDA to
remain below 3x on a sustained basis, which would occur if EBITDA
margins improve 500 bps or more," the rating agency said.
MITCHELL INT'L: Moody's Rates New $675MM Term Loan Add-On 'B2'
--------------------------------------------------------------
Moody's Investors Service affirmed Mitchell International, Inc.'s
B3 corporate family rating and B3-PD probability of default rating,
pro forma for the proposed capital structure to finance the
acquisition of Coventry Workers' Compensation Services, a cost
containment and clinical services provider. Moody's assigned a B2
rating to the proposed $675 million senior secured first lien term
loan add-on. Moody's also affirmed the instrument ratings on
Mitchell's existing debt, including the B2 rating on the $1.6
billion first lien senior secured term loan and $125 million first
lien senior secured revolver, and Caa2 rating on Mitchell's $300
million second lien senior secured term loan. The outlook is
stable.
The acquisition of Coventry will be financed with the $675 million
senior secured first lien term loan add-on, a $200 million equity
contribution from private equity owner Stone Point Capital, and
available cash. Proceeds will be utilized to finance the
acquisition, to pay transaction fees and to repay the existing $122
million draw on the $125 million first lien senior secured
revolver. Changes to the proposed capital structure could result in
updates to the ratings.
Assignments:
Issuer: Mitchell International, Inc.
Senior Secured 1st Lien Bank Credit Facility, Assigned B2 (LGD3)
Affirmations:
Issuer: Mitchell International, Inc.
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Secured 1st Lien Bank Credit Facility, Affirmed B2 (LGD3)
Senior Secured 2nd Lien Bank Credit Facility, Affirmed Caa2 (LGD6)
Outlook Actions:
Issuer: Mitchell International, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Mitchell's B3 corporate family rating reflects the company's very
high 8.0x debt/EBITDA leverage, pro forma with the proposed
Conventry financing (Moody's adjusted, excluding future cost-saving
benefits), and weak free cash flow to debt, with expected FCF/debt
below 2.5% in 2020. The coronavirus recession will lead to credit
deterioration in 2020 as claim volumes decline. Mitchell relies on
workers' compensation and auto claim volumes to generate the
majority of its revenue. Very high unemployment levels and travel
limitations will pressure the business model in 2020. A longer than
expected recession could constrain liquidity and pressure the
ratings. Mitchell also faces risks to integrate Coventry, an asset
that Moody's believes was underinvested by previous owner CVS/Aetna
and has experienced revenue declines over the last few years. The
turnaround will be pressured by the current recessionary
environment, which adds incremental challenges. Aggressive
financial policies also weigh on the credit, Moody's expects
additional debt-funded acquisitions as Mitchell continues to expand
its product suite.
Mitchell's long-term organic growth rate, in the low to
mid-single-digit percentage, combined with stronger profitability,
is expected to support credit improvement beyond 2020. Mitchell's
increasing scale and leading position as a diversified cost
containment provider with a broad suite of solutions are also
credit positive. The rating reflects customer contracts that
provide a fairly predictable revenue base, despite its reliance on
claim volumes, which partially mitigates Mitchell's high financial
leverage. The $200 million equity consideration in the proposed
financing structure, along with the strategic value of Coventry's
PPO network solutions and increased scale, provide credit support.
Moody's believes the acquisition of Coventry fits well within
Mitchell's long-term strategy as it will 1) incorporate a leading
workers' compensation and auto claims preferred provider network,
especially within the hospital/physician services segment; 2)
increase scale across existing casualty and clinical offerings,
creating cost reduction opportunities; and 3) offer cross-sell
growth across the combined client base. The Coventry transaction
enhances Mitchell's legacy retrospective cost-containment
technology and Genex's prospective clinical services by
incorporating a leading PPO network that strategically increases
the company's ability to reduce spend for its clients.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook and asset price declines are
creating a severe and extensive credit shock across many sectors,
regions and markets. The combined credit effects of these
developments are unprecedented. Moody's regards the coronavirus
outbreak as a social risk under its ESG framework, given the
substantial implications for public health and safety. Record
unemployment rates, a reduction in miles driven and the overall
recessionary environment caused by the COVID-19 pandemic will
impact Mitchell's business model.
The stable outlook reflects the expectation that Mitchell will
generate weak, but positive, free cash flow in 2020, despite a
decline in organic revenue and lower profitability due to COVID-19
headwinds. Debt/EBITDA will increase in 2020 but Moody's
anticipates a deleveraging trend towards 7.5x thereafter (Moody's
adjusted), in the absence of leveraging transactions. Organic
revenue declines and Coventry integration costs will lower EBITDA
margin in 2020, partially offset by benefits from cost reduction
initiatives. After 2020, Moody's anticipates organic revenue growth
will return to mid to low single-digit percentage rates, and EBITDA
margin will return to pre-COVID levels, around 20% (Moody's
adjusted), with potential upside from increased scale and cost
reductions. Moody's expects the coronavirus impact will result in
weak 2Q20 and 3Q20 quarters, with a recovery starting in 3Q20,
leading to an overall 2020 organic revenue growth decline in the
mid single-digit range. The outlook and credit rating could be
pressured if social distancing measures remain in place longer than
anticipated or the recessionary environment caused by COVID-19 adds
additional pressure to Mitchell's business.
The ratings for the individual debt instruments incorporate
Mitchell's overall probability of default, reflected in the B3-PD,
and the loss given default assessments for the individual
instruments. The pro forma first lien credit facilities, consisting
of the $125 million revolver expiring in 2022 and the $2.3 billion
term loan maturing in 2024, are rated B2, one notch higher than the
B3 corporate family rating, with a loss given default assessment of
LGD3. The B2 first lien instrument rating reflects their relative
size and senior position ahead of the second lien term loan that
would drive a higher recovery for first lien debt holders in the
event of a default. However, the increased proportion of first lien
debt in the capital structure, pro forma with the $675 million
add-on, reduces the benefits of its priority position ahead of the
second lien term loan. Additional first lien issuances could result
in an instrument rating downgrade, as the capital structure moves
towards a predominantly first lien structure. Mitchell's $300
million second lien term loan, due 2025, is rated Caa2, two notches
below the corporate family rating, with a loss given default
assessment of LGD6.
Liquidity is adequate, with a cash balance of $48 million and an
undrawn $125 million revolver (pro forma with the Coventry
transaction, which is expected to close in 3Q20), and free cash
flow to debt in the 1%-3% range over the next 12 months, which will
suffice to cover mandatory debt amortization payments of roughly
$23 million annually. The secured credit facility is covenant-lite,
with a loose 8x springing first lien leverage limit applicable only
when there is at least 35% outstanding under the revolver. Moody's
anticipates Mitchell will continue to be in compliance with the
covenant over the next 12 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely over the next 12 months given the
expectation for credit deterioration due to the recessionary
macroeconomic environment caused by COVID-19, which will negatively
affect growth and margins. In the longer term, Mitchell's ratings
could be upgraded (all metrics Moody's adjusted) if Moody's expects
1) stronger than anticipated revenue and profitability growth; 2) a
significant improvement in leverage metrics, with debt/EBITDA
sustained below 6x and free cash flow as a percentage of total debt
above 5%; and 3) a track record of more conservative financial
policies.
Mitchell's ratings could be downgraded if the recessionary
environment caused by COVID-19 deteriorates, extending the expected
timeline to delever and weakening Mitchell's liquidity position.
The ratings could also be downgraded (all metrics Moody's adjusted)
if 1) long-term revenue growth or profitability decline materially
due to integration challenges, customer losses, pricing pressures
or increasing competition; 2) Moody's expects weaker than
anticipated long-term growth or deteriorating margins will keep
leverage above 8x without a clear path to deleveraging; 3)
liquidity diminishes or free cash flow to debt falls to break-even
levels or becomes negative; or 4) Moody's expects (EBITDA --
capex)/interest expense coverage to decline below 1x.
Mitchell International, Inc. is a leading provider of cost
containment and clinical solutions for insurance companies, third
party administrators and self-insured employers. The company
operates three business segments: clinical, casualty and APD. The
APD segment provides data, software, and services to support the
estimating, adjudication, and processing of automobile physical
damage insurance claims. The casualty segment includes services and
technology to support auto-related bodily injury claims (ACS),
workers' compensation claims and pharmacy network services for
prescriptions related to casualty claims. The clinical segment
provides clinical case management services, independent medical
exams and other ancillary network services. The acquisition of
Coventry Workers' Compensation Services will add scale and new
network capabilities to Mitchell's casualty and clinical segments.
The company generated $1.7 billion of annualized revenue in 2019,
pro forma with the Coventry transaction. Private equity sponsor
Stone Point Capital acquired both Mitchell and Genex in early 2018,
and combined the two companies in October 2018. The Coventry
acquisition was announced in March 2020 and is expected to close in
3Q20.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
MOORE & MOORE: Seeks to Hire John R. Williams as Accountant
-----------------------------------------------------------
Moore & Moore Trucking, LLC, seeks authority from the U.S.
Bankruptcy Court for the Eastern District of Louisiana to employ
John R. Williams, CPA, as its accountant.
Mr. Williams will be assisting the Debtor with its preparation of
tax returns and monthly operating reports.
Mr. Williams will charge an hourly rate of $160 for his services
and will seek reimbursement of actual and necessary out of pocket
expenses.
Mr. Williams assures the court that he neither holds nor represents
any adverse interest to the Debtor or the estate with respect to
the matters upon which he will be engaged.
Mr. Williams can be reached at:
John R. Williams, CPA
14th Floor, Regions Tower
333 Texas Street
Shreveport, LA 71101
Tel: 318-227-3311
Fax: 318-227-3811
Email: johnwilliams@arklatexlaw.com
About Moore & Moore Trucking
Moore & Moore General Contractors, Inc. d/b/a Moore & Moore Lumber
Co., based in La Porte, TX, filed a Chapter 11 petition (Bankr.
S.D. Tex. Case No. 10-31201) on Feb. 12, 2010. The petition was
signed by Bryan Moore, president of the Company. The Hon. Jeff
Bohm oversees the case. The Debtor hired The Steffes Firm, LLC, as
counsel.
MYADERM INC: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Myaderm, Inc.
88 Inverness Circle East Suite A-101
Englewood, CO 80112
Case No.: 20-14417
Business Description: Myaderm, Inc. is a manufacturer of medical
equipment and supplies.
Chapter 11 Petition Date: June 28, 2020
Court: United States Bankruptcy Court
District of Colorado
Judge: Hon. Joseph G. Rosania Jr.
Debtor's Counsel: Michael Jaurigue, Esq.
JAURIGUE LAW GROUP
300 W. Glenoaks Blvd. Ste. 300
Glendale, CA 91203
Tel: 818-630-7280
E-mail: PLFKDHO@jlglawyers.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Eric C. Smart, CEO.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/Th5VAu
NATES AUTO REPAIR: Taps DiBartolomeo McBee as Accountant
--------------------------------------------------------
Nates Auto Repair & Performance, Inc., seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to hire
DiBartolomeo, McBee, Hartley & Barnes, P.A., as its accountant.
The firm's services will include the preparation of financial
statements, budgets, projection, cash flows and tax returns.
DiBartolomeo will be paid at hourly rates as follows:
Partner $250
Accountant $85
Bookkeeper $55
Gerald DiBartolomeo Jr., the firm's accountant who will be
providing the services, disclosed in court filings that he and his
firm neither hold nor represent any interest adverse to Debtor's
bankruptcy estate.
The firm can be reached through:
Gerald A. DiBartolomeo Jr.
DiBartolomeo, McBee, Hartley & Barnes, P.A.
2222 Colonial Road, Suite 200
Fort Pierce, FL 34950
Phone: (772) 461-8833
E-mail: jerryd@dmhbcpa.com
About Nates Auto Repair
Nates Auto Repair & Performance, Inc. provides 24-hour car and
heavy truck towing and roadside services in Jupiter, Port St.
Lucie, Stuart, Fort Pierce and Interstate 95, Florida. For more
information, visit https://allhookeduptowing.co/
Nates Auto Repair & Performance filed a voluntary petition under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
20-12446) on Feb. 25, 2020. In the petition signed by Nathan
Miskulin, president, the Debtor was estimated to have under $50,000
in assets and $1 million to $10 million in liabilities.
Judge Erik P. Kimball oversees the case.
Chad Van Horn, Esq., at Van Horn Law Group, P.A., is the Debtor's
legal counsel.
NATIONS INSURANCE: A.M. Best Affirms B(Fair) Fin. Strength Rating
-----------------------------------------------------------------
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term
ICR) to "bb+" from "bb" and affirmed the Financial Strength Rating
(FSR) of B (Fair) of Nations Insurance Company (Nations) (Cerritos,
CA). The outlook of the Long-Term ICR has been revised to stable
from positive, while the outlook of the FSR remains stable.
The Credit Ratings (ratings) reflect Nations' balance sheet
strength, which AM Best categorizes as adequate, as well as its
adequate operating performance, limited business profile and
marginal enterprise risk management.
The upgrade of the Long-Term ICR is based on Nations' increased
balance sheet strength in recent years, driven by improved
risk-adjusted capitalization, underwriting leverage, liquidity
measures and loss reserve development trends. Nations implemented a
50% quota share reinsurance contract effective Jan. 1, 2017, which
reduced its net underwriting leverage significantly. This quota
share reinsurance was increased to 60% effective Jan. 1, 2018.
Furthermore, Nations has implemented rate increases in recent
years, which have improved its underwriting performance, and
increased investment allocation to long-term bonds, which has
improved its investment income, both leading to improved surplus
growth.
NAVIENT CORP: Moody's Alters Outlook on Ba3 CFR to Negative
-----------------------------------------------------------
Moody's Investors Service has affirmed Navient Corporation's Ba3
Corporate Family Rating and Ba3 unsecured debt ratings.
The outlook was changed to negative from stable, following the US
Department of Education announcement that Navient was not one of
the five companies that signed a new contract to service DOE's
federal direct student loans in the future. The company has stated
that it was awarded a contract by the DOE, but declined due to
unfavorable economics. Moody's regards Navient's regulatory risks
as a social risk, which is high under its environmental, social and
governance framework, consistent with its general assessment for
student loan providers. Moody's believes that material operational
challenges of a servicing transfer of student loans and potential
litigation risk, particularly given the size of Navient's direct
loan servicing portfolio, increase the company's regulatory risks.
In addition, the negative outlook reflects Moody's assessment that
the US economy will contract in 2020 as a result of the coronavirus
pandemic outbreak, which will likely have a direct negative impact
on Navient's asset quality and profitability. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
Affirmations:
Issuer: Navient Corporation
Corporate Family Rating, Affirmed Ba3
Senior Unsecured Regular Bond/Debenture, Affirmed Ba3
Outlook Actions:
Issuer: Navient Corporation
Outlook, Changed to Negative from Stable
RATINGS RATIONALE
Navient was awarded a student loan servicing contract by the DOE in
June 2009. As of March 31, 2020, Navient was servicing over $200
billion of direct student loans under its contract. The servicing
contract expires on December 14, 2020 with two potential six-month
extensions at the DOE's discretion through December 14, 2021.
The ratings affirmation reflects Moody's overall unchanged
assessment of the company's standalone assessment, taken into
consideration that the loss of revenue from the DOE contract is
only a modest contributor to current profitability.
The change in outlook to negative from stable was driven by Moody's
consideration that the DOE contract provides the company with
scale, insight and relationships in its core student loan business
services offerings. As such, the loss of the DOE contract could
pressure the company's standalone assessment over the next 12-18
months.
An additional driver of the negative outlook is the deterioration
of the operating environment from the coronavirus pandemic
outbreak, as evidenced by the spike in US unemployment rate to
above the 10% level reached in the 2007-08 global financial crisis.
The severity of the deterioration in the company's asset quality
will depend on how long unemployment remains so elevated.
The company's Ba3 long-term ratings reflect its predictable, but
declining earnings and the strong asset quality of its $84.8
billion legacy student loan portfolio as of March 31, 2020. It also
takes into account the likelihood that the company will slow the
decline in net income by growing its newly-acquired origination
business and continuing to modestly grow its business services
businesses.
Navient reported net income of $597 million in 2019 and unsecured
debt outstanding as of March 31, 2020 totaled $9.5 billion versus
total assets of $93.2 billion. As its income to outstanding
unsecured debt is modest, the company will repay unsecured debt
largely from the equity investment in its loan portfolio.
Therefore, Moody's considers Navient's greatest risk to be a
significant decline in portfolio cash flow stemming from increased
loan charge-offs or a shrinking investment portfolio.
Litigation risks stemming from Consumer Financial Protection Board
and state lawsuits weigh on Navient's credit profile. The CFPB and
several state attorneys general have filed civil suits alleging
that Navient violated Federal consumer financial laws in servicing
federal and private student loans. Moody's expects any cost of the
lawsuits to be manageable, but costs that materially increase the
company's leverage or impair its franchise could lead to a rating
downgrade.
Moody's assesses that as a student loan provider, Navient faces a
high regulatory risk. As student debt service increasingly weighs
on household finances, there have been many proposed measures to
alleviate the burden. A large-scale program to refinance loans
under the Federal Family Education Loan Program and private student
loans with direct loans funded by the US government would be credit
negative for FFELP and private student loan lenders and servicers,
particularly those concentrated in the market, such as Navient.
While repayment at par would result in lenders not incurring credit
losses on forgiven loans, a reduction in lenders' loan portfolios
would deprive Navient and other lenders of future net interest
income and servicers of future servicing income.
Moody's regards a large servicing transfer of student loans as a
social risk under its ESG framework, given the increase in
regulatory risks. In addition, Moody's regards the coronavirus
pandemic as a social risk under its ESG framework, given the
substantial implications for public health and safety. Its rating
action reflects the impact on Navient of the increased regulatory
risks of a servicing transfer along with the breadth and severity
of the economic shock from the pandemic, and the deterioration in
credit quality and profitability it has triggered.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, rating upgrades are unlikely over the
next 12-18 months. The outlook could return to stable if Moody's
were to assess that any potential negative impact from the current
economic environment as well as the loss of the direct loan
servicing contract on the company's financial profile, particularly
capital and profitability, were modest or effectively mitigated.
The ratings could be downgraded if 1) the financial performance of
the company deteriorates on a sustained basis or 2) the value of
the investment portfolio declines, for example, from rising
delinquencies and defaults on the private student loan portfolio or
a large increase in prepayment speeds on the Federal Family
Education Loan Program portfolio.
Moody's expects the outcome of the lawsuits to be manageable, given
the company's solid earnings and cash flow. However, a ratings
downgrade is possible if the costs of the CFPB and state attorney
general lawsuits resulted in the company's leverage increasing or
if the lawsuits impair the company's franchise.
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
NEW CITIES: Court Tentatively Approves Disclosure Statement
-----------------------------------------------------------
Judge M. Elaine Hammond has ordered that the Disclosure Statement
of New Cities Investment Partners, LLC, is tentatively approved.
The hearing on final approval of the Disclosure Statement and on
confirmation of the Plan will occur on July 16, 2020, at 2:30 p.m.,
in Courtroom 11, 280 South First Street, San Jose, California.
Written objections to the Disclosure Statement or to confirmation
of the Plan must be filed and served by July 9, 2020.
Written ballots accepting or rejecting the Plan must be submitted
and received by July 9, 2020.
About New Cities Investment Partners
New Cities Investment Partners, LLC, is engaged in activities
related to real estate. The company owns a vacant real property
located in Palm Desert, Calif.
New Cities Investment Partners sought protection under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 19-52584) on Dec.
23, 2019. The petition was signed by Lee E. Newell, CEO of New
Cities Land Company, Inc., the Debtor's manager. At the time of
the filing, the Debtor disclosed assets of between $1 million and
$10 million and liabilities of the same range. Judge M. Elaine
Hammond oversees the case. MacDonald Fernandez LLP is the Debtor's
legal counsel.
NEW ORLEANS ARCHDIOCESE: Fitch Cuts $40.1MM 2017 Bonds to 'D'
-------------------------------------------------------------
Fitch Ratings has downgraded approximately $40.1 million in
outstanding series 2017 fixed-rate revenue bonds issued by the
Louisiana Public Facilities Authority on behalf of the Archdiocese
of New Orleans to 'D' from 'CC'. The Long-Term Issuer Default
Rating of the Archdiocese has been affirmed at 'D'.
SECURITY
The 2017 bonds are secured by payments made by the Authority, and
the source of these payments is solely a general unsecured
obligation of the Archdiocese.
KEY RATING DRIVERS
TRUSTEE NOTICE OF NON-PAYMENT: The downgrade of the bond ratings to
'D' reflects the virtual certainty of a payment default on July 1,
2020 while in bankruptcy. The Archdiocese filed for Chapter 11
bankruptcy on May 1, 2020. The trustee gave notice on June 26, 2020
that the July 1 debt service payments will not be made, as the
Archdiocese has not paid the trustee for debt service payments due
on July 1, and the trustee does not have funds on deposit to make
debt service payments. The IDR of 'D' reflects the Archdiocese's
Chapter 11 bankruptcy filing.
ESG - SOCIAL IMPACTS: The Archdiocese has an Environmental, Social
and Governance relevance score of '5' for Social Impacts due to
potentially significant liability from abuse claims, which appear
to be a key driver of the Archdiocese's bankruptcy filing.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
-- Not applicable in default.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
-- Not applicable in default.
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
The Roman Catholic Church of the Archdiocese of New Orleans
operates in eight civil parishes in metropolitan New Orleans and
encompasses 4,208 square miles and 112 church parishes. In addition
to the parishes, it also supports and administers 79 schools, with
an estimated enrollment of 34,182 for the 2019-2020 school year.
Nursing homes and other community service facilities are also
sponsored by the Archdiocese.
The 2017 bonds are the sole obligation of the Archdiocese corporate
entity. Individual parishes, elementary and high schools, nursing
homes, affordable senior living facilities, and other
church-related agencies and institutions within the corporation's
geographical boundaries are not consolidated within the reported
Archdiocese corporate entity.
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
Archdiocese of New Orleans (LA): Exposure to Social Impacts: '5'
The Archdiocese of New Orleans has an Exposure to Social Impacts
ESG score of '5' due to the rating impact from multiple public
legal abuse claims underway, which appear to be a key driver of its
bankruptcy filing.
Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of '3' - ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Archdiocese of New Orleans (LA)
- LT IDR D; Affirmed
- Archdiocese of New Orleans (LA) /General Revenues/1 LT; LT D;
Downgrade
- Archdiocese of New Orleans (LA) /Issuer Default Rating/1 LT; LT
D; Affirmed
NORTHERN OIL: Plans Reverse Stock Split & Authorized Share Cut
--------------------------------------------------------------
Northern Oil and Gas, Inc., plans to undertake a reverse stock
split of the Company's common stock at a ratio ranging from any
whole number between 1-for-6 to 1-for-10, as determined by
Northern's Board of Directors, and a reduction in the number of
authorized shares of Northern's common stock as set forth in the
chart below based on the reverse stock split ratio that is
selected.
Number of Shares
Ratio Common Stock Authorized
----- -----------------------
1:6 225,000,000
1:7 192,857,143
1:8 168,750,000
1:9 150,000,000
1:10 135,000,000
The reverse stock split will reduce the number of Northern shares
of common stock outstanding and is expected to increase the per
share trading price of Northern's common stock, which may improve
marketability and facilitate its trading.
When the reverse stock split becomes effective, each number of
shares between six to ten (depending on the reverse stock split
ratio selected by Northern's Board of Directors) shares of
Northern's common stock will automatically be converted into one
share of common stock. Northern does not anticipate issuing
fractional shares as a result of the reverse stock split;
stockholders entitled to receive fractional shares as a result of
the reverse stock split will receive cash payments in lieu of such
shares.
The reverse stock split and authorized share reduction will not
change the proportionate equity interests or voting rights of
holders of common stock, subject to the treatment of fractional
shares.
Northern will hold a special meeting of stockholders in the third
quarter of 2020 to seek approval of proposals to authorize the
reverse stock split and authorized share reduction. The
affirmative vote of the holders of a majority of the shares
entitled to vote at the special meeting is required to adopt and
approve such proposals. Holders of record of Northern's common
stock as of the close of business on June 25, 2020, will be
entitled to notice of and to vote at the special meeting. Northern
has filed a preliminary proxy statement regarding the special
meeting with the U.S. Securities and Exchange Commission.
The reverse stock split and authorized share reduction are subject
to market and other customary conditions, including stockholder
approval. Northern reserves the right, at its sole discretion, to
abandon the reverse stock split and authorized share reduction at
any time prior to filing the applicable certificate of amendment
with the Secretary of State of the State of Delaware.
About Northern Oil
Northern Oil and Gas, Inc. -- http://www.northernoil.com-- is an
exploration and production company with a core area of focus in the
Williston Basin Bakken and Three Forks play in North Dakota and
Montana.
Northern Oil recorded a net loss of $76.32 million for the year
ended Dec. 31, 2019. As of March 31, 2020, the Company had $2.23
billion in total assets, $1.22 billion in total liabilities, and
$1.01 billion in total stockholders' equity.
* * *
As reported by the TCR on April 14, 2020, S&P Global Ratings
lowered its issuer credit rating on Northern Oil and Gas Resources
to 'CCC+' from 'B-'. The outlook is negative. "Our downgrade
reflects the company's tight liquidity and history of distressed
exchanges. The recent collapse in oil prices increases the risk
that the company's reserve-based lending (RBL) facility size could
be reduced at its next bank redetermination, which could further
strain its limited capacity," S&P said.
NUZEE INC: To Raise $5.3 Million from Common Stock Offering
-----------------------------------------------------------
NuZee, Inc. has closed its previously announced underwritten public
offering of 700,000 shares of its common stock, at a price to the
public of $9.00 per share. The net proceeds from the Offering,
after deducting underwriting discounts and commissions and
estimated Offering expenses payable by NuZee, are expected to be
approximately $5.3 million. In addition, NuZee has granted the
underwriters a 45-day option to purchase up to 105,000 additional
shares of NuZee's common stock at the same initial price to the
public less underwriting discounts and commissions, and on the same
terms and conditions, to cover over-allotments, if any. NuZee
intends to use the net proceeds from the Offering for working
capital and general corporate purposes. The Company's common stock
began trading on the NASDAQ Capital Market on June 19, 2020, under
the symbol NUZE.
The Benchmark Company, LLC acted as sole book-running manager for
the Offering.
About Nuzee
NuZee, Inc. (d/b/a Coffee Blenders) is a specialty coffee company
and a single-serve pour-over coffee producer and co-packer. The
Company owns sophisticated packing equipment developed in Asia for
pour over coffee production and it believes its long-standing
experience with this equipment and associated pour over filters,
and its relationships with their manufacturers provide the Company
with an advantage over its North American competitors.
NuZee reported a net loss of $12.21 million for the year ended Dec.
31, 2019, compared to a net loss of $3.57 million for the year
ended Dec. 31, 2018. As of March 31, 2020, the Company had $4.98
million in total assets, $1.63 million in total liabilities, and
$3.35 million in total stockholders' equity.
MaloneBailey, LLP, in Houston, Texas, the Company's auditor since
2013, issued a "going concern" qualification in its report dated
Dec. 24, 2019, citing that the Company has suffered recurring
losses from operations that raises substantial doubt about its
ability to continue as a going concern.
OLEUM EXPLORATION: Saber Objects to Disclosure Statement
--------------------------------------------------------
Saber Drilling Fluids, LLC, filed an objection to the Revised
Disclosure Statement for the Joint Chapter 11 Plan of
Reorganization proposed by Oleum Exploration, LLC and PAPCO, Inc.
Although the Disclosure Statement submitted by the Debtor is
substantial and contains information about the historical issues in
the Bankruptcy Case and the nature of the Plan, the Disclosure
Statement lacks certain information about the inadequacies of the
Plan and the opposition of Saber thereto.
The Disclosure Statement purports to suggest that Saber's Secured
Claim is roughly $408,000. As noted above, Saber's allowed Secured
Claim is in the amount of at least 527,515. Saber believes its
current claim is no less than $549,395.
Attorneys for Saber Drilling:
Jack P. Bock III
REED SMITH LLP
20 Stanwix Street, Suite 1200
Pittsburgh, PA 15222
Telephone: (412) 288-4238
Facsimile: (412) 288-3063
E-mail: jbock@reedsmith.com
- and -
Katelin A. Morales
1201 N. Market Street, Suite 1500
Wilmington, DE 19801
Telephone: (302) 778-7500
Facsimile: (302) 778-7575
E-mail: kmorales@reedsmith.com
About Oleum Exploration
Oleum Exploration, LLC, a production and exploration company
operating in Gulf Coast Basin, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 19-00664) on Feb.
16, 2019. At the time of the filing, the Debtor disclosed
$2,164,154 in assets and $10,400,625 in liabilities. The case has
been assigned to Judge Robert N. Opel II. The Debtor tapped
Kurtzman Stead, LLC as its bankruptcy counsel, and Gray Reed &
McGraw LLP as its special counsel.
ONEX TSG: Moody's Alters Outlook on B2 CFR to Negative
------------------------------------------------------
Moody's Investors Service confirmed the ratings of Onex TSG
Intermediate Corp. and changed the outlook to negative from rating
under review. Moody's confirmed Onex TSG's B2 Corporate Family
Rating, B2-PD Probability of Default Rating, B1 rating on the first
lien credit facility and Caa1 rating on the second lien term loan.
This concludes the rating review that was initiated on April 14,
2020.
The confirmation of the B2 CFR reflects Onex TSG's good liquidity,
which Moody's believes will enable the company to manage through
most COVID-19 scenarios. Moody's estimates that the company will
have $150-$170 million in cash and a fully undrawn $75 million
revolver at the end of June 2020, including approximately $30
million in advanced payments received from Medicare. Moody's
expects that the company will be able to cover anticipated cash
burn in 2020 with liquidity at hand. The company's emergency
medicine business is gradually recovering after experiencing a
severe volume decline in the months of April and May. The rating
confirmation also reflects Moody's view that adjusted debt/EBITDA
will peak in late 2020 but will decline back below 6.0x in 2021.
The change of outlook to negative reflects the downside risks of a
more severe or prolonged virus impact than what Moody's currently
forecasts. While the company's business is generally on an
improving trend, significant uncertainties exist for a full and
sustained recovery. For example, a recent surge in COVID-19
infections in several southern states, in which the company has
heavy presence, could stymie the company's recovery. If these
states undergo a prolonged lockdown, the company's cash burn will
continue, and its liquidity will weaken. Further, a deep or
prolonged recession in the US will lead to an increase in people
losing commercial health insurance. This will lead to unfavorable
payor mix shift and increasing bad debt expense for ONEX TSG.
Following ratings were confirmed:
Onex TSG Intermediate Corp.
Corporate Family Rating at B2
Probability of Default Rating at B2-PD
$75 million revolving credit facility expiring in 2022 at B1
(LGD3)
$530 million first lien term loan due in 2022 at B1 (LGD3)
$135 million second lien term loan due in 2023 at Caa1 (LGD6)
Outlook action:
Onex TSG Intermediate Corp.
The outlook changed to negative from rating under review.
RATINGS RATIONALE
The B2 Corporate Family Rating reflects Onex TSG's market position
as the third-largest emergency department physician staffing
company and its resulting exposure to bad debt expense, and the
evolving regulatory and reimbursement environment. Moody's expects
a temporary spike in the company's leverage primarily due to very
weak second and third quarters of 2020. However, Moody's expects
debt/EBITDA will return to below 6.0 times by mid-2021. Onex TSG's
debt to EBITDA was approximately 5.1 times at the end of March 31,
2020. The company's high concentration in a single line of business
(emergency medicine) and its heavy presence in southern states
(where COVID-19 cases are currently increasing) are risks to the
rating. Onex TSG's rating is supported by good customer diversity,
favorable healthcare services outsourcing market trends, good
liquidity and a solid track record of integrating acquisitions.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. In addition, as a provider of emergency room staffing
to hospitals, Onex TSG faces high social risk. Several legislative
proposals have been introduced in the US Congress that aim to
eliminate or reduce the impact of surprise medical bills. The
company's financial policies are expected to remain aggressive
reflecting its ownership by a private equity investor (Onex
Partners Manager LP).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company can grow its revenue
base while expanding its product line. More specifically, if the
company's debt to EBITDA approaches 4.5 times, along with
consistent positive free cash flow, the ratings could be upgraded.
The ratings could be downgraded if the company experiences a
reduction in reimbursement rates or unfavorable payor mix shift
such that the company's operating profits deteriorate or if credit
metrics weaken for any reason. Quantitatively, ratings could be
downgraded if debt to EBITDA is expected to be sustained above 6
times.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Headquartered in Lafayette, LA, Onex TSG Intermediate Corp., doing
business as SCP Health (formerly Schumacher Clinical Partners), is
a national provider of integrated emergency medicine, hospital
medicine services and healthcare advisory services. SCP Health
operates in 30 states with roughly 1,700 employees and 7,000
clinicians. Onex TSG's net revenue is approximately $1.4 billion.
Onex TSG is owned by private equity sponsor Onex Partners Manager
LP through the parent holding company - Clinical Acquisitions
Holdings LP.
ORIGINCLEAR INC: $28,721 Promissory Notes Converted Into Equity
---------------------------------------------------------------
As previously reported, OriginClear, Inc. entered into agreements
by and between the Company and various investors by which investors
hold convertible promissory notes convertible into shares of the
Company's common stock. Between May 29, 2020 and June 22, 2020,
holders of convertible promissory notes converted an aggregate
principal and interest amount of $28,721 into an aggregate of
1,194,460 shares of the Company's common stock.
Conversion of Preferred Shares
As previously reported, on April 3, 2019, the Company filed a
certificate of designation of Series J Preferred Stock. Pursuant
to the Series J COD, the Company designated 100,000 shares of
preferred stock as Series J. The Series J has a stated value of
$1,000 per share, and is convertible into shares of the Company's
common stock, on the terms and conditions set forth in the Series J
COD.
On June 12, 2020, a holder of Series J Preferred Stock converted an
aggregate of 2.5 Series J shares into an aggregate of 41,541
shares, including make-good shares, of the Company's common stock.
As previously reported, on Aug. 19, 2019, the Company filed a
certificate of designation of Series L Preferred Stock. Pursuant
to the Series L COD, the Company designated 100,000 shares of
preferred stock as Series L. The Series L has a stated value of
$1,000 per share, and is convertible into shares of the Company's
common stock, on the terms and conditions set forth in the Series L
COD.
On June 22, 2020, a holder of Series L Preferred Stock converted an
aggregate of 7.5 Series L shares into an aggregate of 126,738
shares, including make-good shares, of the Company's common stock.
Consultant Issuances
Between May 29, 2020 and June 22, 2020, the Company issued to
consultants an aggregate of 165,440 shares of the Company's common
stock for services.
About OriginClear
Headquartered in Los Angeles, California, OriginClear --
http://www.originclear.com/-- is a provider of water treatment
solutions and the developer of a breakthrough water cleanup
technology. Through its wholly owned subsidiaries, OriginClear
provides systems and services to treat water in a wide range of
industries, such as municipal, pharmaceutical, semiconductors,
industrial, and oil & gas.
OriginClear reported a net loss of $27.47 million for the year
ended Dec. 31, 2019, compared to a net loss of $11.35 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had
$1.34 million in total assets, $43.70 million in total liabilities,
and a total shareholders' deficit of $42.36 million.
M&K CPAS, PLLC, in Houston, TX, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated May 29,
2020, citing that the Company suffered a net loss from operations
and has a net capital deficiency, which raises substantial doubt
about its ability to continue as a going concern.
OUTDOOR BY DESIGN: Taps Benjamin Martin as Legal Counsel
--------------------------------------------------------
Outdoor By Design, LLC, seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire the Law Offices of
Benjamin Martin as its legal counsel.
The firm's services will include the preparation of a Chapter 11
plan of reorganization for Debtor and a review of claims asserted
by its creditors.
The firm's attorney will charge $300 per hour for his services and
$100 per hour for travel time. Benjamin Martin has received a
$8,970 retainer.
Benjamin Martin neither represents nor holds any interest adverse
to Debtor and its bankruptcy estate, according to court filings.
The firm can be reached through:
Benjamin G. Martin, Esq.
Law Offices of Benjamin Martin
1620 Main Street, Suite 1
Sarasota, Florida 34236
Phone: (941) 951-6166
Email: skipmartin@verzion.net
About Outdoor By Design
Outdoor By Design, LLC, a manufacturer of outdoor furnishings,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Case No. 20-04253) on June 1, 2020. At the time of the
filing, the Debtor disclosed $3,090,093 in assets and $10,543,170
in liabilities. Debtor has tapped Law Offices of Benjamin Martin
as its legal counsel.
PANOCHE ENERGY: S&P Raises Project Issue Rating to 'BB-'
--------------------------------------------------------
S&P Global Ratings raised the project issue rating on Firebaugh,
Calif.-based electric power generator Panoche Energy Center LLC
(PEC) to 'BB-' from 'CCC+' following the higher rating on Pacific
Gas & Electric Co. (PG&E) and based on its minimum coverage of
1.06x in 2020, which sets the final rating one notch below the
counterparty cap, lower than the minimum before Panoche was
downgraded from 'BB' due to PG&E's bankruptcy.
However, the outlook is positive as S&P forecasts minimum coverage
may increase to near or above 1.2x starting in 2021 or 2022, and as
long as the rating on PG&E is at least 'BB-'.
S&P is revising the recovery rating to '2' (70%-90%; rounded
estimate 80%) from '3' (50%-70%; rounded estimate: 60%), indicating
its expectation of substantial rather than meaningful recovery, as
it has updated its default scenario.
PEC is a nominal 400-megawatt (MW) gas-fired, simple-cycle power
plant about 50 miles west of Fresno, Calif. The project started
commercial operations in 2009. PEC is owned by funds managed by
Ares EIF Management LLC (not rated). PEC earns revenue through a
long-term PPA with PG&E (BB-/Stable).
PG&E is rated 'BB-' following its expected emergence from
bankruptcy, and S&P adjusts the project cap to 'BB'. S&P applies
one notch of uplift to the rating to derive a counterparty cap of
'BB', because it can apply a single notch of uplift to a 'BB'
category revenue counterparty if the project delivers an essential
service (the rating agency considers power to be such a service)
and there is a regulatory precedent that supports counterparty
payments. PG&E and its subsidiary utility have weathered two
bankruptcies in the last several decades. It has honored its power
contracts in both cases, which leads S&P to consider implementing
some uplift. In addition, S&P believes contracts with existing gas
power plants will be honored as they become increasingly essential
for providing capacity in California, where increasing variable
renewable energy on the grid needs to be balanced with dispatchable
power or storage as new gas plants are not being built, storage
capacity is insufficient, and imports may be inadequate.
The rating on Panoche is below what is was before PG&E's default
due to lower coverage levels in the short-term related to repayment
of the debt service reserve (DSR) loan. Before PG&E filed for
bankruptcy, S&P rated Panoche 'BB'. The rating is one notch lower
because S&P's minimum coverage of 1.06x in 2020 is lower than the
previous minimum of 1.17x. S&P's coverage declined because
operational challenges in 2019 will affect cash flows in 2020 and
because Panoche did not renew its DSR letter of credit (LOC).
On July 30, 2019, the project fully drew its DSR LOC to cash and
deposited it in a restricted DSR account. There is no principal
schedule to repay the LOC loan, which must be repaid by October
2022, and distributions are not permitted until then. In the
initial 2020 budget, the project expected to make two semiannual
repayments totaling $8.1 million. However, due to outages, the
project is planning to repay about $4 million of the LOC in 2020
and the same amount in 2021. This leaves another $4 million
remaining for 2022. While deferring some planned amortization in
2020 improves S&P Global Ratings' coverage (note this loan
repayment is excluded from Panoche's coverage calculation), it
lowers coverage in the next couple of years. S&P's base-case
forecast of 1.06x in 2020 is consistent with 'b' performance. It
expects coverage in the next two years to rise around 1.2x, which
is consistent with 'b+'/'bb-' performance. However, coverage levels
could shift as LOC amortization is potentially shifted, with the
minimum remaining below 1.2x."
"In all cases, we expect downside performance during this period to
remain at a 'bbb' level, as we would expect the project to survive
our stresses for five years without depleting liquidity reserves.
This results in two notches of uplift and a final rating of 'BB-'.
If next year Panoche's minimum rises to near or above 1.2x, this
downside performance could lead to a 'BB' rating," S&P said.
"Our outlook is positive given expectations of minimum coverage
rising to around 1.2x. Thus, the outlook is positive as we forecast
minimum coverage will increase to near or above 1.2x starting in
2021 or 2022. The timing of an upgrade will likely depend on how
quickly the LOC loan is repaid. The outlook also reflects our view
that carbon costs will remain close to the price floor, and that
the project will use excess cash flows to purchase sufficient
carbon allowances to meet its regulatory obligations," the rating
agency said.
The positive outlook also assumes limited operational issues, which
the project faced in 2017 and 2019. Finally, the outlook depends on
PG&E being rated higher than 'BB-'.
California carbon-compliance obligations suppress coverage levels.
The current cap-and-trade system under Assembly Bill 32 expires in
2020. On July 17, 2017, California passed AB 398, which extends the
program until 2030. In December 2018, the California Air Resources
Board (CARB) approved an amendment to AB 398 and granted allowances
for the 3rd Compliance period (2018-2020) and through the end of
the contract (2021-2029). It also provides a price ceiling on
allowance prices. Historically prices have traded closer to the
floor price, therefore the project uses this as a forecast with a
5% escalation rate.
"Under our base-case forecast, we use the actual price of carbon
from the previous year plus escalation, since it was higher than
the floor. We continue this assumption, both deciding not to use
the floor or the higher 2019 actual price. While we expect the
effects of coronavirus pandemic and recession for 2020 to reduce
demand, we think demand for electricity will pick up and combine
with fewer overall allowances to support higher carbon prices," S&P
said.
The structure of the compliance period in the extended period is
the same, and S&P continues its assumption of treating carbon
compliance costs as an annual expense. In addition, Panoche will
receive a known amount of Legacy Contract allowances from CARB
throughout the project's term, but covering less than half of
current emission levels. Each compliance period is three years,
with 30% of the first year's emissions due in year one, 30% of the
second year's emissions due in year two, and 70% of the two
previous years' emissions and 100% of the third year's emissions
due in year three. The compliance allowances are always due in
November of the following year, years two through four; thus, there
is a lag of one year.
"We continue to expense carbon costs the year they are generated
because it reflects the true cost of generation and because the
project is prudently reserving cash or using excess cash flows to
purchase allowances to meet each year's compliance obligation. In
particular, we expect the project to have sufficient cash to
purchase around $6.3 million of carbon allowances due in November
2021, fulfilling the third year of the third compliance period,"
S&P said.
Relatively high generation and operational challenges could limit
the project's rating potential. PEC faced operational challenges in
2019. Costly blade liberations occurred with CT-2 and CT-4.
Additional revenue was lost because of delays in a lease engine
delivery. The project has some history of forced outages in the
past. The increased dispatch can be attributed to PG&E dispatch
decisions that do not include GHG costs. Dispatch is controlled by
the off-taker, not the project. PG&E could dispatch Panoche more
than usual in drought conditions or because it doesn't consider
carbon obligations. While higher net generation resulted in higher
revenues, it may have also caused more forced outages, which can
raise operations and maintenance (O&M) costs or lower capacity
revenues. It can also limit coverage when combined with higher
carbon compliance costs. Dispatch was about 30% above budget in
2019, and above the four-year average S&P uses, and it expects
PEC's capacity factor to also be high in 2020.
S&P's recovery expectations are higher due to the expected
resolution of PG&E's bankruptcy. The recovery rating is revised to
'2' from '3' now that S&P no longer assumes the default scenario is
a rejection of the contract, S&P's most likely default scenario
while PG&E was in bankruptcy. Because that possibility is now more
remote and there is a lot of value in the PPA, S&P thinks the
recovery potential is higher. Further, as noted above, the rating
agency believes gas power plants (and other dispatchable power)
will be increasingly essential for providing capacity in California
due to the need to quickly replace significant variable solar
generation when the sun sets.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Greenhouse gas emissions
The positive outlook reflects S&P's view that minimum coverage will
increase to near or above 1.2x in 2021 or 2022. S&P's minimum debt
service coverage ratio (DSCR) is 1.06x, in 2020. S&P forecasts
coverage of slightly above 1.2x in 2021-2022. The timing of an
upgrade will likely depend on how quickly the LOC loan is repaid.
The outlook also reflects S&P's view that carbon costs will remain
close to the price floor and that PEC will reserve or spend excess
cash flows to purchase sufficient carbon allowances to meet its
regulatory obligations. The positive outlook also assumes limited
operational issues, which the project faced in 2017 and 2019.
"We could revise the outlook to stable or lower the rating if
market carbon prices are higher than anticipated or PEC does not
prudently use excess cash flows to purchase allowances. Operational
challenges and higher dispatch due to the utility excluding carbon
costs when dispatching PEC could lead to reduced revenues through
lower availability, increased costs through higher emissions, or
forced outages. We could lower the rating if our DSCR forecast is
below 1.05x on a sustained basis," S&P said.
"We could raise the rating if the project pays off its LOC loan and
generation, availability, carbon prices, and operational expense
are in line with our expectations, as this would likely lead to
minimum coverage near or above 1.2x. An upgrade would also depend
on PG&E being rated at least BB-," the rating agency said.
PERFORMANCE FOOD: S&P Affirms B+ ICR; Outlook Negative
------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
U.S.-based Performance Food Group Inc. (PFG) and removed it from
CreditWatch, where the rating agency placed it with negative
implications on March 20, 2020. At the same time, S&P affirmed all
of its issue-level ratings and removed them from CreditWatch.
S&P believes industry sales are improving sequentially, however,
the negative outlook reflects continued uncertainty around the
severity and duration of the coronavirus pandemic's impact on the
food service industry. PFG's sales declined around 50% in the last
two weeks of March due to restaurant closures and event
cancellations. Though demand is still weak, sales trends improved
sequentially from a very depressed level in late March. PFG's
performance in the restaurant channel improved sequentially each
week in April, which S&P attributes to increased takeout and
delivery in quick-service chains. S&P's forecast reflects gradually
improving sales and EBITDA trends as the U.S. economy reopens;
however, it assumes sales do not return to pre-coronavirus levels
until the end of calendar year 2021.
The slow recovery considers the probability some people will be
reluctant to return to normal food consumption behavior due to
coronavirus risk; the economy could remain very weak, which will
force some people to save money and reduce restaurant visits; and
more people would work from home, potentially reducing use of
food-away-from-home venues. There could also be additional
coronavirus outbreaks and capacity limits imposed on restaurants by
municipal governments, which could lead to more severe and
sustained industry declines than reflected in S&P's base-case
forecast.
PFG strengthened its liquidity position by issuing debt and raising
equity. PFG has recently improved its liquidity position after
issuing $275 million senior unsecured notes, an unrated $110
million junior term loan, and $349 million in equity. S&P estimates
pro forma cash is around $1 billion. S&P expects PFG to use the net
proceeds to pay down the unrated $1.8 billion outstanding on its
asset-based lending (ABL) revolver balance as of March 30, 2020.
S&P also forecasts liquidity will be sufficient to weather
significant industry headwinds through 2021.
The negative outlook reflects the potential for a lower rating if
the pandemic causes more severe and prolonged stress to the
company's profit and cash flows than S&P forecasts.
"We could lower the rating if unfavorable industry trends are
sustained and we believe that the company will be unable to reach
our forecast credit ratios, including sustaining adjusted leverage
above 5x. This could occur if sales and profits are substantially
depressed, possibly due to permanent restaurant closures,
restrictions on restaurant capacity, or consumer hesitancy to
resume food-away-from-home consumption. This could also occur if
COVID-19 infection rates spike and lead to additional lockdowns;
recession and high unemployment rates are protracted; or the
company struggles to manage food cost volatility," S&P said.
"We could revise the outlook to stable over the next few quarters
if we came to believe that PFG would be able to meet our base-case
forecast, including sustaining adjusted leverage below 5x. This
could occur if demand for food away from home meets or exceeds our
expectations, most likely due to a dissipation of coronavirus risk
and improving economic conditions, supporting restaurants
reopening," the rating agency said.
QUANTUM CORP: Lowers Net Loss to $5.21 Million in Fiscal 2020
-------------------------------------------------------------
Quantum Corporation reported a net loss of $5.21 million for the
year ended March 31, 2020, compared to a net loss of $42.80 million
for the year ended March 31, 2019.
Revenue was $402.9 million for fiscal 2020, compared to $402.7
million in fiscal 2019. The flat year over year performance was
driven by a 3% increase in product revenue with growth in primary
storage and devices and media partially offset by a decline in
secondary storage systems. Strength in products was offset by
modest declines in services primarily due to reduced support
renewals from its legacy backup customers, and royalty driven by
overall declines in market unit volumes as the primary use of tape
transitions from backup to archive implementations.
Gross profit for fiscal 2020 was $172.5 million, or 42.8% gross
margin, compared to $167.6 million, or 41.6% gross margin, in
fiscal 2019. Gross margins improved year over year across a wide
range of products, primarily due to reductions in cost of service
and a sales mix weighted towards more profitable product lines.
Total operating expenses for fiscal 2020 were $151.3 million, or
37.5% of revenue, compared to $172.4 million, or 42.8% of revenue,
in fiscal 2019. Research and development expenses increased 13% to
$36.3 million for fiscal 2020 compared to $32.1 million in fiscal
2019. Selling, general and administrative expenses declined 15% to
$114.0 million for fiscal 2020 compared to $134.7 million for
fiscal 2019 due to lower costs associated with the financial
restatement and related activities, as well as lower operating
expenses overall as a result of the Company's efforts to streamline
processes and reduce the Company's facilities footprint.
Adjusted EBITDA increased $13.3 million to $45.9 million for fiscal
2020, compared to $32.5 million in fiscal 2019.
As of March 31, 2020, the Company had $165.99 million in total
assets, $364.52 million in total liabilities, and a total
stockholders' deficit of $198.52 million.
"Quantum delivered significantly improved performance in fiscal
2020, particularly in terms of profitability, despite a marked
slowdown in revenue in mid-March when the outbreak of the COVID-19
pandemic halted professional sporting events and many of our
customers in the media and entertainment sectors temporarily ceased
filming operations," commented Jamie Lerner, chairman and CEO,
Quantum. "While the pandemic affected our fourth quarter results
and is expected to impact our first fiscal quarter revenue, our
efforts over the last year to transform Quantum into a
cost-efficient innovator, focused on higher-value and higher-margin
solutions, positions us well to emerge from the current environment
as a stronger company."
"Quantum's technology is relied upon in disaster and crisis
situations, and our solutions are core to the business continuity
of many customers, so we remain confident that we are positioned
well to weather the delays and disruption we are experiencing,"
continued Mr. Lerner. "Quantum is also playing a critical role in
helping our customers process and manage their video and
unstructured data. The short-term impact of the pandemic has not
slowed the growth of video. Our pipeline continues to expand and
our value proposition remains compelling as we pursue our long-term
strategy to provide technology solutions and services to help
customers capture, create and share digital content, and preserve
and protect it for decades."
Mr. Lerner continued, "We continue to build momentum in our
business with hyperscale computing environments, as well as with
our healthcare customers, and maintain steady demand from the
government and intelligence community, while further establishing
our presence in the video surveillance market. The acquisition of
the ActiveScale object storage business from Western Digital and
the integration of Atavium software into our organization, has
strategically bolstered our technology portfolio to strengthen our
capabilities in each of these markets. As a result, our position
in the industry continues to improve."
"As we embark on fiscal 2021, our success in reducing expenses and
streamlining operations enables us to invest in research and
development to ensure that we continue to innovate to meet the
needs of our customers at every stage of their business life
cycles," Lerner concluded. "In addition, we will continue to focus
on strengthening our balance sheet. To that end, we recently
amended the terms of our term loan and revolving credit agreements
to provide us with greater flexibility, reflecting the confidence
that our lending partners have in our business and long-term
strategy."
Fourth Quarter of Fiscal 2020 vs. Prior-Year Quarter
Revenue was $88.2 million for the fourth quarter of fiscal 2020,
down 15% compared to $103.3 million in the year ago quarter and
in-line with Quantum's guidance. The revenue decline was driven by
a 20% decrease in product revenue due to reduced demand for
secondary storage systems as a result of the COVID-19 pandemic as
well as lower hyperscale revenue. Revenue in the fourth fiscal
quarter of 2020 includes incremental contribution from the
acquisition of the ActiveScale object storage business, which
closed on March 17, 2020.
Gross profit in the fourth quarter of fiscal 2020 was $36.1
million, or 40.9% gross margin, compared to $42.7 million, or 41.3%
gross margin, in the year ago quarter. Gross margins contracted
modestly year over year primarily due to spreading fixed overhead
costs over lower revenue.
Total operating expenses in the fourth quarter of fiscal 2020 were
$33.5 million, or 38% of revenue, compared to $43.2 million, or
41.8% of revenue, in the year ago quarter. Selling, general and
administrative expenses declined 31% to $24.3 million for the
fourth quarter of fiscal 2020 compared to $34.9 million in the year
ago quarter. Research and development expenses were $9.2 million
in the fourth quarter of fiscal 2020, up 14% compared to $8.1
million in the year ago quarter.
Net loss in the fourth quarter of fiscal 2020 was $3.8 million, or
($0.10) per basic and diluted share, compared to a net loss of $9.4
million, or ($0.26) per basic and diluted share, in the year ago
quarter.
Excluding non-recurring charges, stock compensation and
restructuring charges, Adjusted net Loss in the fourth quarter of
fiscal 2020 was $2.4 million, or ($0.06) per diluted share,
compared to Adjusted Net Income of $2.3 million, or $0.06 per
diluted share, in the year ago quarter.
Adjusted EBITDA in the fourth quarter of fiscal 2020 decreased $5.7
million to $5.4 million, compared to $11.1 million in the year-ago
quarter.
Balance Sheet and Liquidity
* Cash and cash equivalents of $6.4 million as of March 31,
2020, compared to $10.8 million as of March 31, 2019. The
current balance excludes $5.0 million in restricted cash
required under the Company's Credit Agreements, and $0.8
million of short-term restricted cash.
* Outstanding long-term debt as of March 31, 2020 was $146.8
million net of $13.7 million in unamortized debt issuance
costs and $7.3 million in current portion of long-term debt.
This compares to $145.6 million of outstanding debt as of
March 31, 2019, net of $17.3 million in unamortized debt
issuance costs and $1.7 million in current portion of long-
term debt. The increase in long-term debt from March 31,
2019 was primarily due to borrowings of $2.6 million at
March 31, 2020 from the revolving credit facility to meet
short term working capital requirements, and paid-in-kind
interest of $1.9 million.
* Total interest expense was $6.3 million and $25.4 million
for the three and twelve months ended March 31, 2020,
respectively.
Subsequent to the end of the quarter, on June 16, 2020 the Company
announced that it had agreed to amend its revolving and term loan
credit facilities, securing an additional $20 million in
incremental liquidity and negotiating more flexible loan terms and
conditions. The facilities, which expire Dec. 27, 2023, can be
used to finance working capital and other general corporate
purposes. Among other terms, the amended credit facilities provide
a holiday period for certain financial covenants through March 31,
2021 and the term loan credit facility contains a more favorable
equity claw back feature. The terms of the 2020 term loan credit
agreement as amended are substantially similar to the terms of the
existing term loan, including in relation to maturity, security and
pricing.
Outlook
Due to the continuing uncertainty in the overall economy during the
COVID-19 pandemic, the Company is not providing full year guidance
at this time. However, management expects the customer delays and
disruptions experienced in the last two weeks of the fourth fiscal
quarter of 2020 will have a more pronounced impact on its first
fiscal quarter of 2021 revenue.
For the first fiscal quarter of 2021, the Company expects revenues
of $73 million plus or minus $1 million. The Company expects
Adjusted Net Loss to be $8 million plus or minus $0.5 million and
related Adjusted Net loss per share of $(0.17) plus or minus $0.01.
Adjusted EBITDA is expected to be $0 plus or minus $1 million.
A full-text copy of the Annual Report is available for free at the
Securities and Exchange Commission's website at:
https://is.gd/8oQ1mr
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE:QTM) --
http://www.quantum.com/-- provides technology and services that
stores and manages video and video-like data delivering the
industry's top streaming performance for video and rich media
applications, along with low cost, high density massive-scale data
protection and archive systems. The Company helps customers
capture, create and share digital data and preserve and protect it
for decades.
ROCK POND: July 1 Hearing on Disclosure Statement
-------------------------------------------------
A telephonic hearing will be held on July 1, 2020 at 10:30 a.m.,
Call in Number: (888) 684−8852, Access Code: 1238244 to consider
and possibly approve the proposed disclosure statement of Rock Pond
Acres, LLC.
Objections to the proposed disclosure statement must be filed and
served no less than 7 days before the date of the hearing.
About Rock Pond Acres
Rock Pond Acres, LLC is a privately held company that is primarily
engaged in renting and leasing real estate properties.
Rock Pond Acres sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ore. Case No. 20-30574) on Feb. 19,
2020. At the time of the filing, the Debtor was estimated to have
assets of between $1 million and $10 million and liabilities of the
same range. Judge Peter C. Mckittrick oversees the case. Sally
Leisure, Esq., at SRL Legal, LLC, is the Debtor's legal counsel.
SCOUTCAM INC: Kesselman & Kesselman Raises Going Concern Doubt
--------------------------------------------------------------
ScoutCam Inc. filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K, disclosing a net loss of
$1,829,000 on $309,000 of revenues for the year ended Dec. 31,
2019, compared to a net loss of $524,000 on $391,000 of revenues
for the year ended in 2018.
The audit report of Kesselman & Kesselman states 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.
The Company's balance sheet at Dec. 31, 2019, showed total assets
of $4,757,000, total liabilities of $2,235,000, and a total
shareholders' equity of $2,522,000.
A copy of the Form 10-K is available at:
https://is.gd/mlw1u4
ScoutCam Inc. develops and manufactures customized visual solutions
for organizations across various industries in the form of highly
resistant micro cameras and supplementary technologies. Its
smallest cameras with high resolution technology has unique
properties that have been authenticated by customers, such as NASA
in the environmental conditions, including extreme temperatures,
vibrations, and radiation. Its devices are used in the medical,
aerospace, industrial, research, and defense industries. ScoutCam
Inc. was founded in 2019 and is based in Omer, Israel.
SERTA SIMMONS: S&P Lowers ICR to 'SD' on Distressed Debt Exchange
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating to 'SD'
(selective default) from 'CC' on U.S.- based Serta Simmons Bedding
LLC after the company completed its distressed debt exchange,
swapping $992 million first-lien debt and $300 million of
second-lien debt for $851 million of super-priority second-out
debt, and issued $200 million new super-priority first-out debt
provided by the debt-exchange lenders.
S&P lowered its rating on Serta Simmons' $1.95 billion first-lien
term loan due 2023 to 'D' from 'CC' and its rating on the company's
$450 million second-lien term loan due 2024 to 'D' from 'C'.
The downgrade reflects the company's completion of the debt
exchange. S&P views the debt exchange as distressed due to the
company's weak operating performance, liquidity constraints, and
lack of compensation to existing lenders for the exchange. The
company has faced intense earnings pressure due to years of
market-share declines, further exacerbated by the stay-at-home
orders and economic recession stemming from COVID-19. This
transaction will modestly improve the company's debt leverage and
liquidity position, partially offset by higher interest cost. The
transaction reduces gross debt by $241 million. For the 12 months
ended March 28, 2020, leverage was about 13x. Pro forma for the
transaction, leverage drops to around 12x. The company will incur
debt-service costs with higher pricing on the super-priority debt
tranches, which will hurt cash flows.
Lenders are receiving less than par and the unexchanged debt will
have a less-favorable payment position. The $200 million new money
will be first-out in payment priority, ahead of the second-out in
payment super-priority $851 million tranche, which is comprised of
$992 million of exchanged existing first lien debt and $300 million
of exchanged existing second lien debt, but behind the ABL on any
proceeds of ABL priority collateral. The super-priority tranches
are senior in right of payment to the existing first lien term
loan, but pari passu with respect to security.
S&P could raise its ratings on the company after completing a
review of the company's new capital structure, which includes a
$200 million new super-priority first-out term loan, $851 million
super-priority second-out term loan, $895 million outstanding
first-lien term loan, and $127 million outstanding second-lien term
loan. The company also has a $225 million asset-based loan (ABL)
facility due November 2021. The company could face further
liquidity pressures if it is unable to extend its ABL, which
becomes current on Nov. 8, 2020.
"We expect modest improvements in operating performance as mattress
retailers reopen and e-commerce sales continue to accelerate.
However, we expect the mattress category to remain soft due to
higher unemployment and continued competitive pressures. Debt
leverage remains high with high-interest expense, supporting our
belief that the capital structure could remain unsustainable. As
such, we expect the company's post-exchange issuer credit rating
will be in the 'CCC' category," S&P said.
SIGNATURE CONSTRUCTION: Hires Richard P. Cook as Attorney
---------------------------------------------------------
Signature Construction Group, LLC, seeks authority from the United
States Bankruptcy Court for the Eastern District of North Carolina
to hire Richard P. Cook, PLLC, as its attorney.
Richard P. Cook, PLLC, will provide legal services and represent
the Debtor in the Chapter 11 proceedings.
Sean J. York on behalf of the Debtor paid $3,800 to Richard P.
Cook, PLLC prior to the filing of this Chapter 11 case. On the
Petition Date, Richard P. Cook and Richard P. Cook, PLLC were owed
$107 by the Debtor. Of the $3,800 paid to Richard P. Cook, PLLC,
$1,717 was paid for the Chapter 11 filing fee. Richard P. Cook,
PLLC provided $2,190 in services and expenses prior to the filing
of this Bankruptcy Case.
Richard P. Cook of Richard P. Cook, PLLC, assured the Court that
the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
The firm can be reached through:
Richard P. Cook, Esq.
Richard P. Cook, PLLC
7036 Wrightsville Ave, Ste 101
Wilmington, NC 28403
Phone: (910) 399-3458
About Signature Construction Group
Signature Construction Group, LLC --
http://www.signaturegroupnc.com/-- is a Southport, NC-based
general contractor specializing in luxury custom home building.
Signature Construction Group, LLC, filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C.
Case No.20-02019) on May 23, 2020. In the petition signed by Sean
J. York, member manager, the Debtor estimated $100,000 to $500,000
in assets and $1 million to $10 million in liabilities. Richard P.
Cook, Esq. at RICHARD P. COOK, PLLC, represents the Debtor as
counsel.
SINTX TECHNOLOGIES: Prices $5.6-Mil. Registered Direct Offering
---------------------------------------------------------------
SINTX Technologies, Inc., has entered into a share purchase
agreement with several institutional investors for the issuance and
sale of 3,700,000 shares of its common stock at a price of $1.50
per share, for aggregate gross proceeds of approximately $5.6
million, in a registered direct offering priced at-the-market under
Nasdaq rules.
Maxim Group LLC is acting as the sole placement agent for the
offering.
The offering is expected to close on or about June 25, 2020,
subject to the satisfaction of customary closing conditions.
The shares of common stock are being offered pursuant to a shelf
registration statement on Form S-3 (File No. 333-230492) previously
filed and declared effective by the Securities and Exchange
Commission (SEC) on April 5, 2019. The offering of the shares of
common stock will be made only by means of a prospectus supplement
that forms a part of the registration statement.
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.
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 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.
SPECTRUM BRAND: Moody's Rates New Revolver Credit Facility 'Ba1'
----------------------------------------------------------------
Moody's Investors Service Moody's assigned a Ba1 rating to Spectrum
Brand, Inc.'s new senior secured revolving credit facility due 2025
and assigned a B2 rating to the company's new senior unsecured
notes due 2030. Moody's also affirmed Spectrum Brands, Inc.'s
Corporate Family Rating at B1 and affirmed ratings on all other
senior unsecured notes at B2. The rating outlook is stable. The
Speculative Grade Liquidity rating is unchanged at SGL-1. Spectrum
Brands, Inc. is a direct operating subsidiary of Spectrum Brands
Holdings Inc. (collectively Spectrum).
The new $600 million five-year revolving credit facility will
replace the existing $890 million revolving credit facilities due
2022 and will be used for working capital and other general
corporate purposes including the repayment of existing debt.
Proceeds from the new $300 million senior unsecured notes will also
be used to repay existing debt. The transactions favorably extend
the maturity profile but the reduction in revolver capacity weakens
backup liquidity sources.
The affirmation of Spectrum's CFR at B1 reflects Moody's
expectation that Spectrum will maintain very good liquidity
including roughly $150 million of annual free cash flow and no
meaningful debt maturities until 2024, and that debt repayment will
lead to a reduction in debt-to-EBITDA below 5x in 2021. These
factors help mitigate the company's current high leverage (5.9x
debt to EBITDA as of March 29, 2020), headwinds from tariffs that
continue to pressure EBIT margins and competition with larger and
better capitalized companies. Gross leverage is elevated in part
due to a nearly full draw on the revolver to bolster the cash
position of approximately $448 million pro forma for the
refinancing. The affirmation also reflects that Spectrum's
suspension of share repurchases due to the coronavirus outbreak
will help to preserve cash and liquidity. Despite headwinds in the
durables sector caused by the coronavirus shutdowns, Moody's
expects demand for most of Spectrum's products will remain
relatively stable given their "in-home" applications conducive to
sheltering-in-place following the coronavirus outbreak, especially
in the small home appliances (cooking), personal care (grooming),
home & garden and pet (aquatics) segments. Additionally, having a
portfolio of recognizable value-oriented brands in relevant markets
benefits Spectrums' ratings as it helps during periods of economic
weakness.
Moody's took the following rating actions on Spectrum Brands, Inc.
Rating assigned:
New Senior Unsecured Notes due 2030 at B2 (LGD 4)
New Senior Secured Revolving Credit Facility at Ba1 (LGD1)
Ratings Affirmed:
Corporate Family Rating, Affirmed at B1
Probability of Default Rating, Affirmed at B1-PD
Senior Unsecured Regular Bond/Debenture, Affirmed at B2 (LGD4)
Outlook Actions:
The rating outlook remains stable
At the close of the transaction, the following ratings will be
withdrawn:
Spectrum Brands, Inc.
Existing Senior Secured Revolving Credit Facilities maturing 2022,
Ba1 (LGD2) to be withdrawn upon close
RATINGS RATIONALE
Spectrum's B1 CFR reflects the company's high financial leverage,
continued EBITDA margin erosion, and its exposure to the
competitive consumer durables and packaged goods industries with
varying levels of cyclicality during economic downturns. Spectrum's
financial policy remains somewhat aggressive with high financial
leverage and share repurchases, though the company has suspended
share buybacks in the interim due to the coronavirus outbreak.
Acquisitions are also part of Spectrum's strategy and are core to
its long-term growth, especially now that its transformation plan
is complete following the divestiture of the battery and auto
products businesses. Spectrum's credit profile benefits from its
very good liquidity and lack of near-term debt maturities.
Furthermore, Spectrum's broad portfolio of value-oriented brands,
and track record of product development offer some counter-cyclical
properties to support the credit profile during periods of economic
weakness. Governance risks are partially mitigated by Spectrum's
3.5x-4.0x debt-to-EBITDA target (company's definition) that
provides comfort the company will focus on reducing leverage
following acquisitions and will maintain financial flexibility to
pursue acquisitions and manage through economically weak periods.
The stable outlook reflects Moody's expectation that Spectrum will
continue to maintain stable operating performance while reducing
financial leverage over the next 12 to 18 months. The outlook also
reflects Moody's expectation for an economic recovery in 2021 as
businesses reopen and demand of Spectrum's products return to more
normalized levels as seen prior to the coronavirus outbreak.
Barring any debt financed acquisitions or outsized share
repurchases, Moody's projects the company will reduce
debt-to-EBITDA leverage below 5.0x by the end of 2021.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if Spectrum's revenue or earnings
persistently decline, the company loses market share, or liquidity
deteriorates. Debt-funded acquisitions or shareholder distributions
could also lead to a downgrade. Ratings could also be downgraded if
debt to EBITDA is sustained above 5.0x.
An upgrade would require a sustained organic revenue and EBITDA
growth supported by strong reinvestment. The company would also
need to maintain a more conservative financial policy. Debt to
EBITDA would also need to be sustained below 4.0x before Moody's
would consider an upgrade.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, and asset price declines are
creating a severe and extensive credit shock across many sectors,
regions and markets. The combined credit effects of these
developments are unprecedented. The durables sector has been one of
the sectors affected by the shock given its sensitivity to consumer
demand and sentiment. More specifically, Spectrum remains
vulnerable to operating weakness should the outbreak continuing to
spread and additional shutdowns are mandated. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
Spectrum's credit profile reflects the breadth and severity of the
shock, and the broad deterioration in credit quality it has
triggered.
Headquartered in Middleton, Wisconsin, Spectrum Brands, Inc. is a
global consumer product company with a diverse portfolio including
small appliances, lawn and garden, electric shaving and grooming,
pet supplies, household insect control and residential locksets.
Revenue approximates $3.8 billion as of last 12 months ending March
2020.
The principal methodology used in these ratings was Consumer
Durables Industry published in April 2017.
SPECTRUM BRANDS: Fitch Rates New $300MM Unsecured Notes 'BB/RR4'
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB'/'RR4' rating to Spectrum Brands,
Inc.'s proposed $300 million of unsecured notes. Proceeds will be
used to pay down revolver borrowings. In concert with this
issuance, Spectrum is extending its secured revolver from 2022 to
2025 and reducing the size from $800 million (currently upsized to
$890 million) to $600 million, in line with Spectrum's reduced
business profile following asset divestitures in recent years.
Fitch has also affirmed Spectrum's existing ratings, including its
Long-Term Issuer Default Rating of 'BB'. The notes issuance yields
medium-term leverage (gross debt to EBITDA) modestly above Fitch's
prior estimate although still within the range expected for
Spectrum's current rating profile. The Rating Outlook is Stable.
Spectrum's 'BB' rating reflects the company's diversified portfolio
across products and categories with well-known brands, and
commitment to maintain leverage (net debt/EBITDA) between 3.5x and
4.0x, which equates to a similar gross debt/EBITDA target assuming
around $150 million in cash longer term, compared with
approximately $450 million at the end of March 2020. The rating
also reflects expectations for modest organic revenue growth over
the long term, reasonable profitability with an EBITDA margin near
15%, and positive FCF.
These positive factors are offset by recent profit margin pressures
across segments and the company's acquisitive posture, which could
cause temporary leverage spikes following a transaction. Finally,
the rating considers expected near-term business challenges
relating to the impact of the coronavirus on Spectrum's
manufacturing capabilities, and the impact of a consumer recession
on Spectrum's operating segments like hardware and home
improvement.
KEY RATING DRIVERS
Diverse Portfolio, Good Brands: Spectrum has a diverse portfolio
across product categories, retail channels and geographies, which
benefits the company as it navigates global and local economic
cycles and retail market share shifts. Following recent asset sales
of Spectrum's batteries and auto care businesses, Spectrum's
largest division is hardware and home improvement, which
contributed 36% of fiscal 2019 (ended September 2019) revenue and
nearly half of EBITDA. The division focuses on residential security
(i.e., locks and keys) as well as other hardware and plumbing
verticals, with well-known brands including Kwikset, Baldwin and
Pfister. Spectrum's home and personal division contributes 28% of
revenue and approximately 15% of EBITDA, and includes leading
brands such as George Foreman (grilling), Remington (shaving and
hair appliances) and Russell Hobbs (small kitchen electrics).
Spectrum's pet care business, largely consisting of nutrition
brands like Tetra and Dreambone as well as grooming and odor
businesses, contribute 23% of sales and one-quarter of EBITDA.
Finally, the company's home and garden business, which largely
focuses on insect control and bug repellant through brands like
Spectracide and Hot Shot, provides the remaining 13% of revenue and
approximately 19% of EBITDA. Fitch recognizes that Spectrum's
2018/2019 sales of its batteries and auto care businesses to
Energizer Holdings, Inc. for approximately $3.25 billion in cash
and stock (10x EBITDA) somewhat reduce the company's overall
product category diversity; however, the go-forward portfolio
provides reasonable operating diversity should any given product
category or brand sustain some weakness. The diversification is
supported by lack of significant cyclical -- other than some parts
of the hardware and home improvement business -- or competitive
volatility across much, albeit not all, of Spectrum's revenue
base.
Retail exposure is appropriately diverse, including exposure to key
market share leaders in segments such as general
merchandise/discount, home improvement and e-commerce. Spectrum
should be well positioned to maintain share and consumer
connections despite competitive shifts within the retail industry,
given its broad exposure and relationships with retailers like
Walmart, Target, Home Depot and Amazon, which are all expected to
grow share longer term. From a geographic standpoint, while
three-quarters of the company's revenue is generated from North
America, Spectrum has some diversity with exposure to Europe (17%
of sales) and Latin America (6% of sales).
Spectrum's portfolio also benefits from a number of strong brands
and market positions. The company holds leading market shares in
U.S. residential security, aquatics, pet nutrition, insect control
and repellents, and strong positions across a number of kitchen and
personal appliance categories.
Temporary Coronavirus Pandemic and Recessionary Impacts: Fitch
expects Spectrum's calendar 2020 business to be negatively affected
by challenges related to the coronavirus pandemic, largely due to
supply chain constraints from temporary closures of manufacturing
facilities in countries like China, the Philippines, Mexico and the
U.S. Mitigating this challenge is the portfolio's exposure to
shelter in place consumption activity via product categories like
kitchen electrics and personal grooming. Organic sales growth in
the company's March 2020 quarter was positive 4.1% as customers
prepared for at-home activities like cooking and hair care.
However, Fitch expects sales in Spectrum's June and September 2020
quarters could be down in the mid-single digits, predominantly on
supply chain issues but also due to potentially reduced reorders
from smaller retailers which may have been closed during the first
half of calendar 2020.
Fitch expects a U.S. and global recession to occur in 2020, which
could negatively affect some of Spectrum's businesses. Hardware and
home improvement should correlate somewhat with housing metrics,
which Fitch expects to be weak through 2020 before rebounding in
2021. Discretionary spending on small kitchen appliances could also
moderate, especially when factoring in some potential pull-forward
purchases upon the onset of the coronavirus pandemic. However,
Fitch anticipates Spectrum's other business segments could see
limited impact from the recession, particularly its pet care and
home and garden businesses, mitigating challenges elsewhere. As
such, Fitch projects fiscal 2021 sales growth could be flat against
a modest decline in fiscal 2020, assuming a recession limits any
rebound from the current year's supply chain challenges.
Spectrum is expected to retain adequate liquidity and financial
flexibility through this period. The company had over $600 million
in liquidity as of April 30, 2020, and Fitch projects fiscal 2020
FCF after dividends of around $100 million, excluding a one-time
contingent liability payment of around $200 million to Energizer
related to the battery's sale.
Recent Profitability Challenges: Spectrum experienced some
operating execution challenges in fiscal 2018, which led to EBITDA
margins declining to 14.7% in fiscal 2019 from 17.4% in fiscal 2017
(pro forma for business divestitures) and ultimately management
turnover, including the CEO. The most significant of these
challenges related to several manufacturing facility projects which
led to cost over-runs and supply shortages. The company believes it
has largely addressed these issues, evidenced with EBITDA
improvement in two of the past three fiscal quarters and the
expectation of modest EBITDA improvement in fiscal 2020, prior to
the onset of the coronavirus pandemic.
Commitment to Financial Policy: Spectrum's publicly articulated net
leverage target is between 3.5x and 4.0x over the long term, which
equates to a similar gross debt/EBITDA target, assuming around $150
million in cash on hand. The company has historically executed
debt-financed acquisitions and has subsequently used internally
generated cash flow to reduce debt, in concert with its leverage
targets. However, in recent years M&A has been somewhat limited,
with the most recent material investments including $289 million
spent in 2017 on the acquisitions of dog chew company PetMatrix LLC
and fluorescent fish brand GloFish. In fact, the company's
portfolio activity has been focused on divestitures, with Spectrum
using asset sale proceeds to reduce debt by around $2 billion in
fiscal 2019, ending the fiscal year with $2.3 billion in debt and
gross debt/EBITDA of 4.1x. Net leverage was 3.0x, well within
Spectrum's target, given a strong cash position of over $600
million.
Fitch expects gross leverage will increase in fiscal 2020 on
Fitch's expectations that EBITDA could decline toward $525 million
from approximately $560 million in fiscal 2019. The company has
also fully drawn down its $800 million revolver (which was
subsequently upsized by $90 million) to maintain liquidity on its
balance sheet. Assuming Spectrum successfully issues $300 million
in unsecured notes to repay revolver debt, yielding around $500
million in outstanding revolver borrowings at year-end, gross
debt-to-EBITDA could be around 5.6x in fiscal 2020 but improve to
below 4.5x in fiscal 2021 on repayment of revolver borrowings.
Longer term, Fitch expects Spectrum could resume debt-funded M&A
activity, with leverage temporarily trending above its target.
Fitch would expect the company to pay down debt following any
leveraging transaction, as it has in the past. The company could
also raise cash through the sale some or all of the 4.3 million
shares of Energizer common stock (current market value of
approximately $200 million) after a 24-month standstill agreement
with Energizer expires in January 2021.
DERIVATION SUMMARY
Spectrum's 'BB' rating reflects the company's diversified portfolio
across products and categories with well-known brands, and
commitment to maintain leverage (net debt/EBITDA) between 3.5x and
4.0x, which equates to a similar gross debt/EBITDA target assuming
around $150 million in cash. The rating also reflects expectations
for modest organic revenue growth over the long term, reasonable
profitability with an EBITDA margin near 15%, and positive FCF.
These positive factors are offset by recent profit margin pressures
across segments and the company's acquisitive posture, which could
cause temporary leverage spikes following a transaction. Finally,
the rating considers expected near-term business challenges
relating to the impact of the coronavirus on Spectrum's
manufacturing capabilities, and the impact of a consumer recession
on Spectrum's operating segments like hardware and home
improvement.
Spectrum is similarly rated to ACCO Brands Corporation (BB/Stable),
Levi Strauss & Co. (BB/Negative) and Newell Brands Inc
(BB/Negative). ACCO's IDR of 'BB' reflects the company's consistent
FCF and reasonable gross leverage around 3x given ongoing debt
repayment post recent acquisitions. The ratings are constrained by
secular challenges in the office products industry and channel
shifts within the company's customer mix, as evidenced by recent
results, along with the risk of further debt-financed
acquisitions.
Levi Strauss & Co.'s 'BB' rating reflects its position as one of
the world's largest branded apparel manufacturers with broad
channel and geographic exposure, while also considering the
company's somewhat narrow focus on the Levi brand and in bottoms.
The Negative Outlook reflects the significant business interruption
from the coronavirus pandemic and the implications of a downturn in
global discretionary spending that Fitch expects could extend well
into 2021. Adjusted leverage is expected to be around 4.0x in
fiscal 2021 (ending November 2021), assuming sales declines of
around 10% and EBITDA declines of around 25% from fiscal 2019
levels. Adjusted debt/EBITDAR is unlikely to return to fiscal 2019
levels in fiscal 2022 even assuming a sustained topline recovery.
Newell's 'BB' rating and Negative Outlook reflect elevated leverage
(total debt/EBITDA) of 4.4x following the completion of its asset
divestiture program and ongoing topline challenges in a number of
its categories. The ratings also reflect the significant business
interruption from the coronavirus pandemic and the potential of a
downturn in discretionary spending that Fitch expects could extend
well into 2021, which in turn could derail further deleveraging.
Fitch expects that EBITDA could trend below $1 billion in 2020 on
mid-teens sales declines, versus $1.34 billion reported in 2019.
Total debt/EBITDA could increase to over 6x in 2020 before
returning to under 4.5x in 2022, assuming EBITDA in the $1.2
billion range in 2021/2022 and paydown of upcoming debt
maturities.
Spectrum is rated lower than Hasbro, Inc. (BBB-/Negative Outlook).
Hasbro's IDR of 'BBB-' reflects its position as one of the largest
toy companies in the world, its good liquidity and cash flow
profile, and expectations of leverage (gross debt to EBITDA)
returning below mid-3.5x in the medium term, resulting from EBITDA
growth and debt reduction following its acquisition of
Entertainment One Ltd., which led to leverage of approximately 5x
on a pro forma basis. In comparison, Spectrum is rated higher to
Mattel, Inc. (B-/Positive Outlook). Mattel's IDR of 'B-' reflects
the company's operating trajectory in recent years, which has led
to material EBITDA declines from peak levels and several years of
negative FCF after dividends. The Positive Outlook reflects
increasing confidence that Mattel's cost reduction program and
sales initiatives could yield stabilizing topline results and
EBITDA improving above $500 million, at which point Mattel could
generate modestly positive FCF as cash restructuring expenses
subside in 2021.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Revenue is forecasted to modestly decline, around 1%, in
fiscal 2020 (ending September 2020) from supply chain impacts from
the coronavirus pandemic and resulting shelter in place activity.
Organic revenue growth could be flattish to modestly negative in
fiscal 2021 on lingering consumer spending concerns, but resume
growth of around 1% annually thereafter;
-- EBITDA is forecast to decline mid-single digits to the $525
million range due to topline declines and incremental expenses due
to the coronavirus pandemic. EBITDA could stabilize in 2021 on
moderation of these incremental expenses and grow beginning fiscal
2022 on topline expansion;
-- FCF, after dividends of around $75 million, similar to fiscal
2019, is forecast to be around negative $100 million in fiscal
2020, primarily driven by lower EBITDA and a $200 million
contingent liability payment related to its batteries business
sale. FCF is expected to be approximately $150 million annually
beginning fiscal 2021 and could be used for tuck-in acquisitions or
to resume the company's share repurchase program, which was
suspended upon on the onset of the coronavirus pandemic. Prior to
the pandemic, the company bought back around $365 million of shares
in fiscal 2020;
-- Gross leverage (total debt/ EBITDA) is forecast to climb from
4.1x in 2019 to around 5.6x in 2020 on EBITDA declines, a temporary
draw on Spectrum's revolver to support cash on hand and the new
$300 million in unsecured notes issuance. Leverage is expected to
moderate to below 4.5x beginning 2021 on EBITDA stabilization and
revolver repayment.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A positive rating action could result if Spectrum sustained
positive organic growth, yielding modest annual EBITDA improvement
from the low $500 million level expected in fiscal 2020 (ending
September 2020) and gross debt/EBITDA is sustained below 4.0x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A negative rating action could result from a low-single digit
sales decline, yielding EBITDA trending toward $450 million and
gross debt/EBITDA sustaining above 4.5x. A debt-financed
transaction that reduced Fitch's confidence in Spectrum's ability
to return gross debt/EBITDA below 4.5x within two years post
transaction would also be a rating concern.
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
Ample Liquidity: Liquidity was $454.9 million as of March 29, 2020,
consisting of $453.5 million of cash and equivalents and $1.4
million of availability on an $800 million revolving credit
facility due March 2022. RCF borrowing availability is net of $780
million of outstanding borrowings and $18.6 million of LOC.
Spectrum proactively drew down on its revolver to fortify its cash
position during the coronavirus pandemic. In April 2020, the
company increased its revolver facility by $90 million, increasing
the facility commitment to $890 million though has not indicated
that it has drawn on the additional $90 million. As of March 29,
2020, the debt capital structure also consisted of approximately
$1.5 billion of senior unsecured USD notes, $468.9 million of
senior unsecured EUR notes and finance leases which Fitch
capitalizes at approximately $180 million.
Proposed Transaction: Spectrum has proposed the issuance of $300
million of unsecured 10-year notes, with proceeds used to repay
revolver borrowings. Spectrum is also planning to extend its
revolver maturity from 2022 to 2025, reducing the size from the
current $890 million to $600 million, reflecting its smaller scale
following recent sales of its auto care and batteries businesses.
Fitch previously assumed Spectrum would fully repay its
approximately $800 million of revolver borrowings by the end of
fiscal 2021; given the addition of $300 million in permanent debt
to Spectrum's balance sheet the company could repay its remaining
$500 million revolver borrowings and have excess cash, which could
be used for growth opportunities or to further reduce debt
including Spectrum's $250 million of unsecured notes due 2024,
which are callable.
Recovery Considerations
Fitch has assigned Recovery Ratings to the various debt tranches in
accordance with Fitch criteria, which allows for the assignment of
RRs for issuers with IDRs in the 'BB' category. Given the distance
to default, RRs in the 'BB' category are not computed by bespoke
analysis. Instead, they serve as a label to reflect an estimate of
the risk of these instruments relative to other instruments in the
entity's capital structure. Fitch assigned the first-lien secured
debt an 'RR1', notched up two from the IDR and indicating
outstanding recovery prospects given default. Unsecured debt will
typically achieve average recovery, and thus was assigned an
'RR4'.
SUMMARY OF FINANCIAL ADJUSTMENTS
Material financial adjustments include stock-based compensation,
GPC safety recall, HPC divestiture, and legal and environmental
remediation reserves.
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).
Spectrum Brands, Inc.
- LT IDR BB; Affirmed
- Senior unsecured; LT BB; Affirmed
- Senior secured; LT BBB-; Affirmed
- Senior unsecured; LT BB; New Rating
SB/RH Holdings, LLC
- LT IDR BB; Affirmed
ST. PETER UNIVERSITY: Moody's Affirms Ba1 on $134MM Bonds
---------------------------------------------------------
Moody's Investors Service has affirmed Saint Peter's University
Hospital's Ba1 rating reflecting approximately $134 million of
outstanding bonds. The outlook is stable.
RATINGS RATIONALE
The Ba1 rating reflects expectations that Saint Peter's University
Hospital will maintain its favorable market position in a
competitive environment. Demand for the system's niche and
long-standing women and children's services will continue to
bolster the SPUH's regional draw. Additionally, the rating reflects
expectations that the system will be able to rebound to pre-COVID
operating levels which exhibited noted improvement in FY 2018 and
FY 2019. On a more near-term basis federal CARES Act and state
advanced funds will help to offset reductions in cash flow related
to the outbreak. Across the past two years liquidity has shown
favorable improvement resulting in stronger cash-to-debt; current
liquidity levels will be maintained following a reduction in
near-term capital spending. Challenges will include the system's
location in a competitive multi-hospital system market, high
reliance on Medicaid due to children's service lines and large
pension liability (although frozen). Ongoing legal action against
the largest commercial payor is a governance risk under the Moody's
ESG classification as it consumes management time and resources.
The most immediate social risk is the impact of COVID-19, which
will significantly impact system operations and likely result in
short term operating losses. There is a high degree of uncertainty
around the extent and length of the impact as well as the magnitude
and timing of additional federal and other relief. Moody's
regardsthe coronavirus outbreak as a social risk under its ESG
framework, given the substantial implications for public health and
safety. The rapid spread of the coronavirus outbreak, deteriorating
global economic outlook, lower 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.
RATING OUTLOOK
The stable outlook reflects an expectation that Saint Peter's
improved liquidity and operating metrics in 2018 and continuing
into FY 2019 will provide a platform for margin and liquidity
stabilization following impacts of COVID 19.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Following the COVID challenges, ability to sustain improved
operating performance exhibited in FY 2018 and 2019
- Continued growth of liquidity absent stimulus funds
- Improvements in adjusted leverage metrics
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Inability to return to more normalized levels or prolonged
disruption related to COVID 19
- Increase in debt without a commensurate increase in cash flow
- Reductions in market share
- Erosion of liquidity
LEGAL SECURITY
The obligated group is comprised of Saint Peter's University
Hospital. The bonds are secured by gross revenue pledge and a
mortgage of certain hospital property in New Brunswick. Debt
service coverage ratio covenant of at least 1.25 times is measured
on a twelve-month rolling date.
PROFILE
Saint Peter's University Hospital is the largest component of Saint
Peter's Healthcare System, Inc. approximately $500 million (total
revenue) system located in New Brunswick, New Jersey. Major service
lines include women and children's services. Saint Peter's is
sponsored by the Roman Catholic Diocese of Metuchen, NJ. The Bishop
maintains various reserve powers as the sole corporate member of
the Health System.
METHODOLOGY
The principal methodology used in these ratings was Not-For-Profit
Healthcare published in December 2018.
STANDARD LIFE: A.M. Best Reviews B(Fair) Financial Strength Rating
------------------------------------------------------------------
AM Best has placed under review with positive implications the
Financial Strength Rating (FSR) of B (Fair) and the Long-Term
Issuer Credit Rating (Long-Term ICR) of "bb" of Standard Life and
Casualty Insurance Company (Standard Life and Casualty) (Salt Lake
City, UT). The rating actions follow the recent announcement by
ManhattanLife of its agreement to acquire Standard Life and
Casualty. The transaction is expected to close in 2020 and is
subject to regulatory approvals.
The positive implications reflect the financial strength of the
acquirer, ManhattanLife. The ratings will remain under review
pending completion of the transaction and discussions with the new
parent.
SUMMIT MIDSTREAM: S&P Cuts ICR to SD on Distressed Debt Repurchase
------------------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating on Summit
Midstream Partners LP (SMLP) to 'SD' (selective default) from 'CCC'
and its issue-level rating on Summit Midstream Holdings LLC's
senior unsecured debt to 'D' from 'CCC-'.
S&P affirmed its 'C' rating on SMLP's preferred stock and placed it
on CreditWatch with negative implications to highlight potential
additional ratings pressure if the preferred equity exchange
(settlement date close July 22) is executed. The rating agency
could view this exchange as a selective default as holders would
receive less than par.
"SMP Holdings remains, in our view, an unrestricted nonstrategic
subsidiary of the partnership. The term debt has no guarantees and
is non-course to SMLP. As a result, we are affirming the 'CCC'
issuer credit rating on SMP Holdings and putting it on CreditWatch
with negative implications to highlight the possibility of a
near-term term loan restructuring," S&P said.
"We are affirming the 'CC' issue-level rating on SMP Holdings'
senior secured debt at 'CC' and placing it on CreditWatch with
negative implications," the rating agency said.
The downgrade follows SMLP's announcement that it has repurchased
approximately $16 million face value of Summit Midstream Holdings
LLC's 5.5% senior unsecured notes due August 2022 for approximately
$10 million in cash, representing approximately 5% of the total
amount outstanding, and approximately $71 million face value of
5.75% senior unsecured notes due April 2025 for approximately $41
million in cash, representing approximately 14% of the total amount
outstanding. S&P views this transaction as distressed based on the
discounted trading levels and the noteholders' receiving less than
the original promise.
SMLP has also announced and commenced an offer to exchange any and
all of its 9.50% Series A perpetual preferred units. For each
Series A preferred unit that is accepted in the exchange offer the
holder will receive 150 common units. The exchange is conditional
on holders of at least 30,000 Series A Units executing the exchange
before the expiration date of July 17.
"We could view this transaction as a selective default, given the
discounted trading levels and that preferred unit holders could
receive less than the original promise. We are placing the rating
on the Series A preferred units on CreditWatch with negative
implications to highlight this potential outcome," S&P said.
"Our view of the recent transactions as a distressed exchange,
notwithstanding, we believe the debt repurchase will slightly
improve SMLP's adjusted credit metrics throughout our forecast. We
now forecast it will achieve an adjusted 2020 EBITDA base between
$250 million and $265 million and adjusted debt to EBITDA of
6.75x-7.0x. We previously forecasted 2020 adjusted debt to EBITDA
in the 7.0x-7.5x range," the rating agency said.
SUPERIOR INDUSTRIES: Moody's Confirms B2 CFR, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service confirmed the ratings of Superior
Industries International, Inc. including a Corporate Family Rating
and a Probability of Default Rating at B2 and B2-PD, respectively;
senior secured bank debt at B1; and senior unsecured at Caa1. The
Speculative Grade Liquidity Rating is SGL-3. The outlook is
negative. This action concludes the review for downgrade initiated
on March 26, 2020.
Ratings Confirmed:
Issuer: Superior Industries International, Inc.
Corporate Family Rating, Confirmed at B2
Probability of Default Rating, Confirmed at B2-PD
Senior Secured Bank Credit Facility, Confirmed at B1 (LGD3)
Senior Unsecured Regular Bond/Debenture, Confirmed at Caa1 (LGD5)
Outlook Actions:
Issuer: Superior Industries International, Inc.
Outlook, Changed to Negative from Rating Under Review
RATINGS RATIONALE
Superior's ratings incorporate the company's strong position as the
leading supplier of aluminum wheels to the automotive original
equipment industry in North America and a significant competitor in
Europe. The company's revenues in these regions are roughly evenly
split. About 60% revenues are to pickup/SUV/CUV/minivan vehicle
where consumer preferences are driving increasing market share for
these vehicles.
Superior's debt/EBITDA as of March 31, 2020 was about 5.9x
(inclusive of Moody's adjustments) and will deteriorate through
2020 given disruptions from the closing and then gradual reopening
of automotive vehicle customer manufacturing operations in North
America and Europe. In response, Superior has executed cost saving
actions including manufacturing headcount reductions, senior
executive compensation deferrals, SG&A headcount reductions, and by
leveraging government incentives. Moody's believes these actions,
supported by an adequate liquidity profile, will support the return
of Superior's credit metrics to pre coronavirus pandemic levels by
the back half of 2021. This view also incorporates Moody's
expectation that excess cash available to support operating
flexibility over the coming quarters will be used to reduce debt in
the back half of 2021 as industry conditions stabilize.
The negative outlook reflects the risk that the expected gradual
recovery of automotive industry conditions impacted by the
coronavirus pandemic could be interrupted from a second wave of
infection rates, or from weakening vehicle demand with a more
extended recessionary conditions from job losses.
Superior is anticipated to maintain an adequate liquidity profile
through 2020 supported by a cash on hand. As of March 31, 2020,
cash and cash equivalents were $282 million. The $160 million
revolving credit facility had $156 million of borrowings as of
March 31, 2020 and about $3.6 million of outstanding letters of
credit, leaving essentially no availability. Moody's estimates
negative free cash flow generation in 2020 in the $20 million range
after capital expenditures and dividends. Superior has announced
that it had cash and undrawn revolver liquidity at June 30, 2020
between $210 million and $230 million which implies negative free
cash flow in the second quarter in the range of $75 million. The
financial maintenance covenant for the senior secured revolving
credit facility is a springing maximum consolidated total net
leverage ratio test under which the cushion is likely to come under
pressure during 2020. The term loan does not have financial
maintenance covenants.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Superior's ratings could be upgraded if Debt/EBITDA approaches 3.5x
and EBITA/Interest over 3.0x on a run rate basis.
Superior's ratings could be downgraded with the expectation that
EBITA/interest expense will be sustained under 2.0x, or if Debt/
EBITDA sustained over 6.0x in the second half of 2021. A
deteriorating liquidity profile could also drive a negative ratings
action.
Superior's products are exposed to moderate risks arising from
increasing regulations on carbon emissions. Although Superior's
products are mostly drivetrain agnostic, climate change regulations
have the potential to increase operating costs and reduce demand
for vehicles on which their products are used.
The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.
Headquartered in Southfield, Michigan, Superior designs and
manufactures aluminum wheels for sale to original equipment
manufacturers and aftermarket customers. The company is one of the
largest suppliers of cast aluminum wheels to OEMs with
manufacturing operations in the United States, Mexico, Germany and
Poland. Superior's LTM revenues for the period ending March 31,
2020 were $1.3 billion.
SURGICAL SPECIALISTS: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Surgical Specialists of St Lucie County
d/b/a Blue Water Surgery Center
6830 S US Highway 1
Port Saint Lucie, FL 34952-1410
Case No.: 20-17017
Business Description: Surgical Specialists of St Lucie County
http://bluewatersurgerycenter.com/--
owns and operates an ambulatory surgical
center. Its facility is Medicare Certified
and is licensed by the State of Florida.
Chapter 11 Petition Date: June 28, 2020
Court: United States Bankruptcy Court
Southern District of Florida
Judge: Hon. Mindy A. Mora
Debtor's Counsel: Julianne Frank, Esq.
JULIANNE FRANK, ATTY AT LAW
4495 Military Trl Ste 107
Jupiter, FL 33458-4818
E-mail: julianne@jrfesq.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Craig Paul MD, managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://is.gd/N3of7D
TERRIER MEDIA: S&P Rates $150MM Term Loan Add-On 'B+'
-----------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '2'
recovery rating to Terrier Media Buyer Inc.'s (Cox Media Group)
$150 million add-on to its senior secured term loan due 2026.
At the same time, S&P lowered its issue-level rating on the
company's existing senior secured credit facilities, comprising a
$325 million first-lien revolver due 2024 and a $2.025 billion
first-lien term loan due 2026, to 'B+' from 'BB-' and revised its
recovery rating to '2' from '1' to reflect the increased amount of
secured debt in its capital structure.
Cox Media plans to use the proceeds from the add-on for general
corporate purposes. S&P's 'B' issuer credit rating and negative
outlook on Cox are unaffected.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- Terrier Media Buyer Inc. is the borrower of the $325 million
senior secured first-lien revolving credit facility expiring in
2024, the $150 million senior secured add-on due 2026, the $2.025
billion senior secured term loan due 2026, and the $1.015 billion
of senior unsecured notes due 2027.
-- The senior secured debt is guaranteed by Terrier Media Buyer
Inc. and its direct and indirect wholly owned subsidiaries (with
certain exceptions). It is secured on a first-lien basis by
substantially all of Terrier's assets and those of its guarantors
(with certain exceptions, including U.S. Federal Communications
Commission licenses and certain assets obtained through capital
leases and other financing obligations).
Simulated default assumptions
-- S&P's simulated default scenario contemplates a default
occurring in 2023 from a combination of the following factors:
increased competition from alternative media, a prolonged decline
in core advertising revenue from economic weakness, a failure to
generate retransmission revenue commensurate with its local market
and relevant television networks, and pressure from affiliated
networks to remit a significant portion of its retransmission
fees.
-- Other default assumptions include an 85% draw on the revolving
credit facility; LIBOR of 2.5%; the spread on the revolving credit
facility rises to 5% as covenant amendments are obtained; and all
debt includes six months of prepetition interest.
-- S&P values the company on a going-concern basis using a 6.5x
multiple of its projected emergence EBITDA. This multiple is in
line with the multiples it uses for the similar size television
broadcasters it rates.
Simplified waterfall
-- EBITDA at emergence: $360 million
-- EBITDA multiple: 6.5x
-- Net enterprise value (after 5% administrative costs): $2.23
billion
-- Estimated senior secured debt claims: $2.5 billion
--Recovery expectations: 70%-90% (rounded estimate: 85%)
-- Estimated total unsecured debt claims: $1.06 billion
--Recovery expectations: 0%-10% (rounded estimate: 0%)
TUPPERWARE BRANDS: Retires $97.4 Million of 4.750% Senior Notes
---------------------------------------------------------------
Tupperware Brands Corporation reports the expiration and final
tender results of its previously announced offer to purchase for
cash up to $175 million aggregate principal amount of its
outstanding 4.750% Senior Notes due 2021 that were validly tendered
(and not validly withdrawn) at or prior to 11:59 p.m., New York
City time, on June 23, 2020.
The Company also announced the early tender results of its
previously announced offer to purchase for cash up to the Second
Offer Maximum Tender Amount of Notes that were validly tendered
(and not validly withdrawn) at or prior to 5:00 p.m., New York City
time, on June 23, 2020. The "Second Offer Maximum Tender Amount"
is $175 million aggregate principal amount of Notes less the
aggregate principal amount of the Notes validly tendered (and not
validly withdrawn) pursuant to the First Offer and accepted for
purchase in the Second Offer.
With respect to the Notes validly tendered (and not validly
withdrawn) (i) in the First Offer at or prior to the First Offer
Expiration Time and (ii) in the Second Offer at or prior to the
Second Offer Early Tender Time, the Company will accept such Notes
for purchase in the Second Offer and elect to make payment for such
Notes on June 25, 2020. As previously announced, since Notes have
been accepted for purchase under the Second Offer, Notes that were
validly tendered (and not validly withdrawn) (i) in the First Offer
at or prior to the First Offer Expiration Time and (ii) in the
Second Offer at or prior to the Second Offer Early Tender Time will
be accepted for purchase by the Company in the Second Offer for the
"Second Offer Total Consideration" of $575 for each $1,000
principal amount of such Notes. The Second Offer Total
Consideration includes the "Second Offer Early Tender Payment" of
$40.00 per $1,000 principal amount of Notes validly tendered (and
not validly withdrawn) in the Second Offer at or prior to the
Second Offer Early Tender Time and accepted for purchase by the
Company.
Holders of Notes who validly tender (and do not validly withdraw)
their Notes in the Second Offer after the Second Offer Early Tender
Time but at or prior to 11:59 p.m., New York City time, on July 8,
2020 (such date and time, as they may be extended or earlier
terminated as described in the Second Offer to Purchase, the
"Second Offer Expiration Time"), will be eligible to receive only
the "Second Offer Tender Offer Consideration" of $535 per $1,000
principal amount of Notes, which equals the Second Offer Total
Consideration reduced by the Second Offer Early Tender Payment.
All payments for the Notes purchased in connection with the Second
Offer Early Settlement Date will also include accrued and unpaid
interest on the principal amount of Notes purchased from the last
interest payment date up to, but not including, the Second Offer
Early Settlement Date. The Second Offer was
conditioned upon there being validly tendered (and not validly
withdrawn) in the Second Offer at least $140 million in aggregate
principal amount of the Notes, but the Minimum Tender Condition was
waived.
The First Offer is being made on the terms and subject to the
conditions set forth in the offer to purchase, dated May 26, 2020.
Consummation of the First Offer and payment for the tendered Notes
is subject to the satisfaction or waiver of certain conditions
described in the First Offer to Purchase. The Second Offer is
being made on the terms and subject to the conditions set forth in
the offer to purchase, dated June 10, 2020. Consummation of the
Second Offer and payment for the tendered Notes is subject to the
satisfaction or waiver of certain conditions described in the
Second Offer to Purchase. The withdrawal deadline of 5:00 p.m.,
New York City time, on June 23, 2020 has passed and, accordingly,
the Notes that have been validly tendered (and not validly
withdrawn) in the Second Offer may no longer be withdrawn. Subject
to applicable law, the Company has reserved the absolute right, in
its sole discretion, to at any time (i) waive any and all
conditions to the Second Offer, (ii) extend, terminate or withdraw
the Second Offer, (iii) increase, decrease or waive the Second
Offer Maximum Tender Amount, with or without extending the Second
Offer Withdrawal Deadline, or (iv) otherwise amend the Second Offer
in any respect.
The following table sets forth certain information regarding the
Notes and the First Offer and the Second Offer, including the
principal amount of Notes that were validly tendered (and not
validly withdrawn) as of the First Offer Expiration Time and the
Second Offer Early Tender Time, respectively, according to D.F.
King & Co., the tender agent and information agent for the Tender
Offers:
Aggregate
Aggregate Principal
Principal Amount Amount
CUSIP No. / ISIN Tendered Accepted
---------------- ---------------- ---------
899896AC8 / $64,752,000 $64,752,000
US899896AC81
(Registered)
U87375AA6 / $32,650,000 $32,650,000
USU87375AA62
(Reg. S) ------------ -----------
Total $97,402,000 $97,402,000
The Second Offer will expire at the Second Offer Expiration Time of
11:59 p.m., New York City time, on July 8, 2020, unless extended or
earlier terminated as described in the Second Offer to Purchase.
The Company has engaged Moelis & Company LLC to act as dealer
manager in connection with the Tender Offers and has appointed D.F.
King & Co. to serve as the tender agent and information agent for
the Tender Offers. Copies of the Offers to Purchase are available
by contacting D.F. King & Co. via telephone by calling (800)
207-3159 (toll free) or (212) 269-5550 (for banks and brokers) or
email at tup@dfking.com. Questions regarding the terms of the
First Offer and the Second Offer should be directed to Moelis &
Company LLC at (888) 399-8991 (toll free).
None of the Company, the guarantor of the Notes, their respective
boards of directors, the Dealer Manager, D.F. King & Co. or the
trustee of the Notes, or any of their respective affiliates, is
making any recommendation as to whether Holders should tender any
Notes in response to the Tender Offers. Holders must make their
own decision as to whether to tender any of their Notes and, if so,
the principal amounts of Notes to tender.
About Tupperware Brands
Tupperware Brands Corporation -- http://www.tupperwarebrands.com--
is a global manufacturer and marketer of innovative, premium
products through social selling. Product brands span several
categories including design-centric food preparation, storage and
serving solutions for the kitchen and home through the Tupperware
brand and beauty and personal care products through the Avroy
Shlain, Fuller Cosmetics, NaturCare, Nutrimetics and Nuvo brands.
As of March 28, 2020, the Company had $1.29 billion in total
assets, $829.9 million in total current liabilities, $601.8
million in long-term debt and finance lease obligations, $53.7
million in operating lease liabilities, $173.8 million in other
liabilities, and a total shareholders' deficit of $364 million.
* * *
In April 2020, S&P Global Ratings lowered its issuer credit rating
on U.S.-based Tupperware Brands to 'CCC+' from 'B' to reflect
heightened refinancing risk and its belief that operating
performance for fiscal 2020 will weaken substantially as many
markets close and stay-at-home orders are prolonged, limiting the
operations of sales representatives.
As reported by the TCR on June 1, 2020, Moody's Investors Service
downgraded Tupperware Brands Corporation's Corporate Family Rating
to Caa3 from B3. These action follows Tupperware's May 26
announcement that it would launch a tender offer to purchase for
cash up to $175 million of its $600 million senior unsecured notes
due June 1, 2021.
VISTA PROPPANTS: Taps Kurtzman Carson as Claims Agent
-----------------------------------------------------
Vista Proppants and Logistics, LLC, and its debtor-affiliates seek
authority from the United States Bankruptcy Court for the Northern
District of Texas to hire Kurtzman Carson Consultants LLC as their
claims, noticing and solicitation agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Chapter 11 cases of the company and its affiliates.
The firm's hourly rates are:
Analyst $30 - $50
Technology/Programming Consultant $35 - $95
Consultant/Senior Consultant/
Senior Managing Consultant $65 - $210
Securities/Solicitation Consultant $205
Securities Director/Solicitation Lead $215
Robert Jordan, managing director of Kurtzman, disclosed in court
filings that his firm is "disinterested" as defined in section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert Jordan
Kurtzman Carson Consultants LLC
2335 Alaska Avenue
El Segundo, CA 90245
Tel: (310) 823-9000
About Vista Proppants and Logistics
Vista Proppants and Logistics -- https://vprop.com -- is a
pure-play, in-basin provider of frac sand solutions in producing
regions in Texas and Oklahoma including the Permian Basin, Eagle
Ford Shale and SCOOP/STACK. Headquartered in Fort Worth, Texas,
VISTA offers leading E&P and oilfield service companies sand with
the cost advantages of a regional provider.
Vista Proppants and Logistics and its affiliates filed voluntary
petitions for relief under chapter 11 of the Bankruptcy Code
(Bankr. N.D. Tex. Lead Case No. 20-42002) on June 9, 2020. The
petitions were signed by Gary Barton, chief restructuring officer.
At the time of filing, the Vista Proppants estimated $50,000 in
assets and $100 million to $500 million in liabilities. Stephen M.
Pezanosky, Esq. at HAYNES AND BOONE, LLP, represents the Debtors as
counsel.
WEATHERFORD INT'L: Discloses Substantial Going Concern Doubt
------------------------------------------------------------
Weatherford International plc filed its quarterly report on Form
10-Q, disclosing a net loss of $958 million on $1,215 million of
total revenues for the three months ended March 31, 2020, compared
to a net loss of $477 million on $1,346 million of total revenues
for the same period in 2019.
At March 31, 2020, the Company had total assets of $6,165 million,
total liabilities of $4,302 million, and $1,863 million in total
shareholders' equity.
The Company said, "The combination of the unprecedented industry
conditions, risks and uncertainties associated with the COVID-19
pandemic, lower activity levels and potential covenant breach,
raises substantial doubt about our ability to continue as a going
concern."
A copy of the Form 10-Q is available at:
https://is.gd/Ycr4XS
Weatherford International plc, an Irish-domiciled company, is one
of the largest multinational oil and natural gas service companies.
WEST PACE: Seeks to Hire Capital Real Estate as Appraiser
---------------------------------------------------------
West Pace, LLC, seeks authority from the United States Bankruptcy
Court for the Middle District of Alabama to hire Capital Real
Estate Services, LLC, as its appraiser.
Capital Real Estate will appraise the value of the real property in
the Estate.
The appraiser will charge a flat fee of $2,500 and will seek
reimburse for its actual, necessary expenses.
Capital Real Estate represents no interest adverse to Debtor as
Debtor-in-Possession or the Estate, according to court filings.
The appraiser can be reached through:
Kenneth D. Wallis, III
Capital Real Estate Services, LLC
1406 I-85 Parkway
Montgomery, AL 36106
Tel: (334) 207-8978
Fax: (334) 593-4369
Email: kwallis3@msn.com
About West Pace, LLC
West Pace, LLC is a privately held company based in Auburn,
Alabama.
West Pace, LLC, filed its voluntary petition for relief under
Chapter 11 of the Bankurptcy Code (Bankr. M.D. Ala. Case No.
20-80067) on Jan. 16, 2020. In the petition signed by Thomas M.
Hayley, managing member, the Debtor estimated $50,000 in assets and
$1 million to $10 million in liabilities. Michael A. Fritz, Sr., at
FRITZ LAW FIRM is the Debtor's counsel.
WIDEOPENWEST FINANCE: Moody's Affirms B2 CFR, Outlook Stable
------------------------------------------------------------
Moody's Investors Service affirmed WideOpenWest Finance, LLC's B2
Corporate Family Rating, B2-PD Probability of Default rating, and
the B2 Senior Secured Bank Credit Facility Rating. Liquidity
remains good, SGL-2. The outlook is Stable.
Affirmations:
Issuer: WideOpenWest Finance, LLC
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Senior Secured Bank Credit Facility, Affirmed B2 (LGD3) from
(LGD4)
Outlook Actions:
Issuer: WideOpenWest Finance, LLC
Outlook, Remains Stable
RATINGS RATIONALE
WOW's credit profile is constrained by governance risk, with its
private equity ownership and control which has a less than
conservative financial policy that tolerates high leverage (Moody's
adjusted) at 5.5x (last 12 months ended Q1 2020). Moody's also
believes there is event risk with financial sponsors given their
interest in extracting returns. The company's overbuilder operating
strategy is also a burden. Despite helping to extend its reach and
grow its scale, it requires a higher level of capital intensity
which limits free cash flows, which were negative in recent years.
The Company also faces strong competition (including Comcast or
Charter in most markets), and secular challenges in voice and video
with customers turning to cheaper streaming video options and using
their wireless services in place of wireline voice. As a result,
the company is experiencing a high loss of video and voice
subscribers, and a weak and falling market position (based on
Moody's Triple Play Equivalent ratio) evidenced by low penetration
rates, the lowest among its rated issuers. Certain measures of
profitability are also relatively weak, including revenue and
EBITDA to homes passed and PSU's. Moody's also notes the company
has a relatively small scale, in just 19 markets, with regional
concentration. As well, the company has a thin level of cash and
little to no alternate forms of liquidity with a fully secured
capital structure and a high debt to equity ratio, suggesting no
equity cushion. Supporting the rating is a competitive network with
strong mix of fiber assets and DOCSIS-enabled coax, producing
industry leading speeds of 1 Gbps available in 95% of its markets
(and 10 gbs available to commercial customers). These assets have
helped position the company to satisfy continued strong broadband
demand, which is driving organic subscriber growth in the
mid-single digit percent range, and supporting strong and
relatively stable EBITDA margins in the mid to high 30% range.
Positive operating cash flows, revolver capacity, and covenant
cushion are also positive credit factors.
The senior secured bank credit facility, including the senior
secured term loan (due 2023) and revolving credit facility (due
2022), are rated B2 (LGD3), same as the B2 CFR. The instrument
ratings reflect the probability of default of the company, as
reflected in the B2-PD Probability of Default Rating, which assumes
an average expected family recovery rate of 50% at default. Moody's
typically assumes a better than average recovery when there is a
single class of senior secured bank debt with customary
protections. However, Moody's believes the low market
capitalization of the company relative to total debt is an
indication that a lower / average recovery in a distress scenario
is more likely. Lease rejection claims and trade payables are
unrated, and does not affect the instrument level ratings given
their small size relative to debt.
The company reported weak first quarter results. Revenues and
EBITDA were down -.9% and -3.9%, respectively, year over year,
partially impacted by COVID-19. Management said the decline in
EBITDA was largely driven by additional bad debt expense as a
result of uncertainty around the economic position of the Company's
customers and others affected by the global health crisis. As a
result of the uncertainty caused by the pandemic, the company
withdrew its 2019 guidance. Despite the temporary challenges,
Moody's expects the company's business model to remain resilient
through this period of uncertainty.
The stable outlook reflects its expectation that debt, revenues,
and EBITDA (Moody's adjusted) will average approximately $2.4
billion, $1.1 billion, and at least $400 million, respectively,
over the next 12-18 months. Moody's projects EBITDA margins in the
mid 30% range will produce limited free cash flow that will range
between breakeven free cash flow and $20 million, after interest
(based on weighted average borrowing cost of about 5%) and CAPEX
(near 20% of revenue). Leverage (Moody's adjusted debt/EBITDA) will
range between 5.7x-5.8x, and interest coverage (Moody's adjusted
EBITDA-CAPEX/interest) will range between 1.2 -- 1.3x. Key
assumptions include organic broadband subscriber growth in the
mid-single digit percent range, and video subscriber losses in the
high-single to low teens percent range. Moody's expects liquidity
to remain good (SGL-2).
The SGL-2 liquidity rating reflects good liquidity evidenced by
positive operating cash flows, significant capacity on its only
partially drawn $300 million revolving credit facility, and ample
headroom under its financial maintenance covenants. It's earliest
maturity is the revolver, due May 2022.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's would consider an upgrade if debt/EBITDA (Moody's adjusted)
is sustained below 4.5x, and free cash flow to debt (Moody's
adjusted) is sustained above 5%. An upgrade would also be
conditional on better liquidity including more cash and free cash
flow, improved market share trends, less governance risk, and or
larger scale and diversification. Moody's could consider a
downgrade if debt/EBITDA (Moody's adjusted) is sustained above 6.0x
or free cash flow to debt (Moody's adjusted) is sustained below 3%.
Moody's would also consider a negative rating action if the
liquidity deteriorated, scale or diversity decreased, or broadband
subscriber growth slowed materially.
With its headquarters in Englewood, Colorado, WideOpenWest Finance,
LLC provides residential and commercial video, high speed data, and
telephony services to 19 Midwestern and Southeastern markets,
across 10 states in the United States. The company passed
approximately 3.2 million homes and reported approximately 1.35
million residential and commercial primary service units (798
thousand high speed data, 366 thousand video, and 191 thousand
phone subscribers as of March 31, 2020). The Company is public, but
majority owned and controlled by Crestview Partners through
beneficial ownership of approximately 37% of the common stock.
Revenue for the last 12 months ended March 31, 2020 was
approximately $1.2 billion.
WINDWARD LONG: Taps Hasbani & Light as Legal Counsel
----------------------------------------------------
Windward Long, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to hire Hasbani & Light, P.C.,
as its legal counsel.
The firm's services will include:
(a) advising the Debtor and preparing all necessary documents
regarding debt restructuring, bankruptcy and asset dispositions;
(b) taking all necessary actions to protect and preserve the
Debtor's estate during the pendency of its Chapter 11 case;
(c) prepare legal papers;
(d) advising Debtor of its rights and obligations under the
Bankruptcy Code; and
(e) appearing in court.
Hasbani & Light will charge $210 per hour for its services. The
retainer fee is $3,500.
Hasbani & Light neither holds nor represents interests adverse to
Debtor and its bankruptcy estate, according to court filings.
The firm can be reached through:
Seth D. Weinberg, Esq.
Hasbani & Light, P.C.
450 Seventh Avenue, Suite 1408
New York, New York 10123
Phone: (212) 643-6677
Fax: (347) 491-4048
Email: sweinberg@hasbanilight.com
About Windward Long
Windward Long, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-72041) on May 12,
2020. At the time of the filing, the Debtor disclosed assets of
between $100,001 and $500,000 and liabilities of the same range.
Judge Robert E. Grossman oversees the case. The Debtor has tapped
Hasbani & Light, P.C., as its legal counsel.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($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 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 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-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 1A8 GR 120.0 (22.9) 100.1
ACCELERATE DIAGN AXDX US 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
AGENUS INC AJ81 GR 180.1 (175.6) (24.6)
AGENUS INC AGEN US 180.1 (175.6) (24.6)
AGENUS INC AJ81 GZ 180.1 (175.6) (24.6)
AGENUS INC AJ81 QT 180.1 (175.6) (24.6)
AGENUS INC AJ81 TH 180.1 (175.6) (24.6)
AGENUS INC AGENEUR EU 180.1 (175.6) (24.6)
AMC ENTERTAINMEN AMC US 11,238.3 (1,074.0) (1,060.3)
AMC ENTERTAINMEN AH9 GR 11,238.3 (1,074.0) (1,060.3)
AMC ENTERTAINMEN AMC4EUR EU 11,238.3 (1,074.0) (1,060.3)
AMC ENTERTAINMEN AMC* MM 11,238.3 (1,074.0) (1,060.3)
AMC ENTERTAINMEN AH9 QT 11,238.3 (1,074.0) (1,060.3)
AMC ENTERTAINMEN AH9 TH 11,238.3 (1,074.0) (1,060.3)
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 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)
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 AAL AV 58,580.0 (2,636.0) (12,038.0)
AMERICAN AIRLINE A1G QT 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)
AMYRIS INC 3A01 TH 167.3 (176.1) (107.3)
AMYRIS INC 3A01 SW 167.3 (176.1) (107.3)
AMYRIS INC 3A01 QT 167.3 (176.1) (107.3)
AMYRIS INC AMRSEUR EU 167.3 (176.1) (107.3)
AQUESTIVE THERAP AQST US 64.5 (20.8) 35.7
ARYA SCIENCES AC ARYBU US 0.2 (0.0) (0.2)
AUTODESK I - BDR A1UT34 BZ 5,543.9 (139.1) (554.0)
AUTODESK INC AUD GR 5,543.9 (139.1) (554.0)
AUTODESK INC ADSK US 5,543.9 (139.1) (554.0)
AUTODESK INC AUD TH 5,543.9 (139.1) (554.0)
AUTODESK INC ADSKEUR EU 5,543.9 (139.1) (554.0)
AUTODESK INC ADSK TE 5,543.9 (139.1) (554.0)
AUTODESK INC AUD GZ 5,543.9 (139.1) (554.0)
AUTODESK INC ADSK AV 5,543.9 (139.1) (554.0)
AUTODESK INC ADSK* MM 5,543.9 (139.1) (554.0)
AUTODESK INC AUD QT 5,543.9 (139.1) (554.0)
AUTOZONE INC AZ5 TH 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZ5 GR 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZO US 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZ5 GZ 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZO AV 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZ5 TE 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZO* MM 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZOEUR EU 12,902.1 (1,632.7) (371.1)
AUTOZONE INC AZ5 QT 12,902.1 (1,632.7) (371.1)
AVID TECHNOLOGY AVID US 308.4 (161.5) 11.8
AVID TECHNOLOGY AVD GR 308.4 (161.5) 11.8
B RILEY PRINCIPA BMRG/U US 0.1 (0.0) (0.1)
B. RILEY PRINC-A BMRG US 0.1 (0.0) (0.1)
BENEFITFOCUS INC BNFTEUR EU 313.6 (42.5) 102.0
BENEFITFOCUS INC BTF GR 313.6 (42.5) 102.0
BENEFITFOCUS INC BNFT US 313.6 (42.5) 102.0
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
BLOOM ENERGY C-A BE US 1,312.6 (259.2) 177.2
BLUE BIRD CORP BLBD US 396.1 (65.1) 24.8
BLUE BIRD CORP 4RB GR 396.1 (65.1) 24.8
BLUE BIRD CORP BLBDEUR EU 396.1 (65.1) 24.8
BLUE BIRD CORP 4RB GZ 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 BA TE 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 BCO TH 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA PE 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BOEI BB 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA US 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA SW 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE BA* MM 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE 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 BA AV 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 BCO QT 143,075.0 (9,360.0) 16,509.0
BOEING CO/THE TR TCXBOE AU 143,075.0 (9,360.0) 16,509.0
BOMBARDIER INC-B BBDBN MM 24,127.0 (5,365.0) (1,093.0)
BRINKER INTL EAT US 2,585.4 (574.7) (204.7)
BRINKER INTL BKJ GR 2,585.4 (574.7) (204.7)
BRINKER INTL BKJ QT 2,585.4 (574.7) (204.7)
BRINKER INTL EAT2EUR EU 2,585.4 (574.7) (204.7)
BRP INC/CA-SUB V B15A GR 4,236.8 (793.6) (194.9)
BRP INC/CA-SUB V DOOO US 4,236.8 (793.6) (194.9)
BRP INC/CA-SUB V B15A GZ 4,236.8 (793.6) (194.9)
BRP INC/CA-SUB V DOOEUR EU 4,236.8 (793.6) (194.9)
BRP INC/CA-SUB V DOO CN 4,236.8 (793.6) (194.9)
CADIZ INC CDZI US 74.1 (19.7) 6.7
CADIZ INC 2ZC GR 74.1 (19.7) 6.7
CADIZ INC CDZIEUR EU 74.1 (19.7) 6.7
CAMPING WORLD-A CWH US 3,402.6 (184.4) 378.4
CAMPING WORLD-A CWHEUR EU 3,402.6 (184.4) 378.4
CAMPING WORLD-A C83 GR 3,402.6 (184.4) 378.4
CAMPING WORLD-A C83 QT 3,402.6 (184.4) 378.4
CAMPING WORLD-A C83 TH 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 CDK US 2,964.8 (621.2) 315.2
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 CDKEUR EU 2,964.8 (621.2) 315.2
CDK GLOBAL INC C2G TH 2,964.8 (621.2) 315.2
CDK GLOBAL INC C2G GR 2,964.8 (621.2) 315.2
CEDAR FAIR LP FUN US 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 1,123.4 (396.5) (482.0)
CHOICE HOTELS CZH GR 1,704.0 (43.9) 275.9
CHOICE HOTELS CHH US 1,704.0 (43.9) 275.9
CINCINNATI BELL CBBEUR EU 2,599.6 (188.7) (124.9)
CINCINNATI BELL CBB US 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 CTXS US 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX TH 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTX GR 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 CTXS AV 4,331.2 (218.9) (413.0)
CITRIX SYSTEMS CTXS* MM 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)
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 CCOI* MM 913.6 (222.2) 366.4
COGENT COMMUNICA CCOIEUR EU 913.6 (222.2) 366.4
CYTODYN INC CYDY US 38.8 (4.4) (16.4)
CYTODYN INC 296 GZ 38.8 (4.4) (16.4)
CYTODYN INC CYDYEUR EU 38.8 (4.4) (16.4)
CYTODYN INC 296 GR 38.8 (4.4) (16.4)
CYTOKINETICS INC KK3A GR 256.6 (45.7) 205.2
CYTOKINETICS INC KK3A TH 256.6 (45.7) 205.2
CYTOKINETICS INC KK3A QT 256.6 (45.7) 205.2
CYTOKINETICS INC CYTKEUR EU 256.6 (45.7) 205.2
CYTOKINETICS INC CYTK US 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 DIN US 2,185.5 (236.4) 209.4
DINE BRANDS GLOB IHP GR 2,185.5 (236.4) 209.4
DOMINO'S PIZZA EZV GR 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZ US 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV SW 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV TH 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA DPZEUR EU 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA EZV GZ 1,389.9 (3,392.2) 342.2
DOMINO'S PIZZA 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 TH 197.2 (64.0) 1.1
DOMO INC- CL B DOMO US 197.2 (64.0) 1.1
DOMO INC- CL B 1ON GR 197.2 (64.0) 1.1
DOMO INC- CL B 1ON GZ 197.2 (64.0) 1.1
DOMO INC- CL B DOMOEUR EU 197.2 (64.0) 1.1
DRAFTKINGS INC-A 8DEA TH 309.6 (102.0) (12.8)
DRAFTKINGS INC-A 8DEA QT 309.6 (102.0) (12.8)
DRAFTKINGS INC-A DKNG US 309.6 (102.0) (12.8)
DRAFTKINGS INC-A 8DEA GR 309.6 (102.0) (12.8)
DRAFTKINGS INC-A DKNG1EUR EU 309.6 (102.0) (12.8)
DRAFTKINGS INC-A DKNG* MM 309.6 (102.0) (12.8)
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 GZ 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G DNKNEUR EU 3,877.3 (636.3) 287.2
DUNKIN' BRANDS G 2DB QT 3,877.3 (636.3) 287.2
ECOARK HOLDINGS ZEST US 4.5 (3.3) (7.1)
EMISPHERE TECH EMIS US 5.2 (155.3) (1.4)
ESPERION THERAPE ESPR US 179.6 (50.2) 99.2
ESPERION THERAPE ESPREUR EU 179.6 (50.2) 99.2
ESPERION THERAPE 0ET TH 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 FLXN US 204.6 (52.3) 145.7
FLEXION THERAPEU F02 GR 204.6 (52.3) 145.7
FLEXION THERAPEU F02 TH 204.6 (52.3) 145.7
FLEXION THERAPEU FLXNEUR EU 204.6 (52.3) 145.7
FLEXION THERAPEU F02 QT 204.6 (52.3) 145.7
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
GLOBAL EAGLE ENT ENT11EUR EU 668.6 (375.2) (63.4)
GLOBALSCAPE INC GSB US 36.6 (32.7) (5.5)
GLOBALSCAPE INC 32X GR 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 GSHD US 75.9 (30.0) 13.9
GOOSEHEAD INSU-A 2OX GR 75.9 (30.0) 13.9
GOOSEHEAD INSU-A GSHDEUR EU 75.9 (30.0) 13.9
GORES HOLDINGS I GHIVU US 427.4 411.8 0.9
GORES HOLDINGS-A GHIV US 427.4 411.8 0.9
GRAFTECH INTERNA EAF US 1,534.2 (680.4) 483.6
GRAFTECH INTERNA G6G GR 1,534.2 (680.4) 483.6
GRAFTECH INTERNA G6G TH 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
HANGER INC HNGR US 869.2 (16.0) 163.1
HANGER INC HO8 GR 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 GR 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 HCA* MM 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I 2BH TE 45,421.0 (703.0) 3,997.0
HCA HEALTHCARE I HCAEUR EU 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 GZ 2,715.3 (388.5) 587.3
HERBALIFE NUTRIT HOO TH 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 33,773.0 (743.0) (5,616.0)
HEWLETT-CEDEAR HPQD AR 33,773.0 (743.0) (5,616.0)
HEWLETT-CEDEAR HPQC AR 33,773.0 (743.0) (5,616.0)
HILTON WORLDWIDE HI91 SW 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HI91 GR 15,788.0 (904.0) 929.0
HILTON WORLDWIDE HI91 TH 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 HLT US 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
HOME DEPOT - BDR HOME34 BZ 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HD TE 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HDI TH 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HDI GR 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HD US 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HD* MM 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HD SW 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HDUSD SW 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HDI GZ 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HD AV 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC 0R1G LN 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HD CI 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HDEUR EU 58,737.0 (3,490.0) 3,929.0
HOME DEPOT INC HDI QT 58,737.0 (3,490.0) 3,929.0
HOME DEPOT-CED HDD AR 58,737.0 (3,490.0) 3,929.0
HOME DEPOT-CED HDC AR 58,737.0 (3,490.0) 3,929.0
HOME DEPOT-CED HD AR 58,737.0 (3,490.0) 3,929.0
HP COMPANY-BDR HPQB34 BZ 33,773.0 (743.0) (5,616.0)
HP INC HPQ US 33,773.0 (743.0) (5,616.0)
HP INC 7HP TH 33,773.0 (743.0) (5,616.0)
HP INC 7HP GR 33,773.0 (743.0) (5,616.0)
HP INC HPQ TE 33,773.0 (743.0) (5,616.0)
HP INC HPQ SW 33,773.0 (743.0) (5,616.0)
HP INC HPQ* MM 33,773.0 (743.0) (5,616.0)
HP INC HPQUSD SW 33,773.0 (743.0) (5,616.0)
HP INC HPQEUR EU 33,773.0 (743.0) (5,616.0)
HP INC 7HP GZ 33,773.0 (743.0) (5,616.0)
HP INC HPQ AV 33,773.0 (743.0) (5,616.0)
HP INC HPQ CI 33,773.0 (743.0) (5,616.0)
HP INC HWP QT 33,773.0 (743.0) (5,616.0)
HUMANIGEN INC HGEN US 0.4 (16.3) (15.1)
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 IMU TH 298.8 (4.1) 185.2
IMMUNOGEN INC IMU SW 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 IMGN* MM 298.8 (4.1) 185.2
IMMUNOGEN INC IMGN US 298.8 (4.1) 185.2
IMMUNOGEN INC IMU QT 298.8 (4.1) 185.2
IMV INC IMV CN 15.3 (2.4) 4.6
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 TH 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 QT 662.4 (34.7) 478.2
IRONWOOD PHARMAC IRWD US 404.0 (71.6) 306.3
IRONWOOD PHARMAC I76 GR 404.0 (71.6) 306.3
IRONWOOD PHARMAC I76 TH 404.0 (71.6) 306.3
IRONWOOD PHARMAC IRWDEUR EU 404.0 (71.6) 306.3
IRONWOOD PHARMAC I76 QT 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 JOSE SS 22.3 (36.4) (27.2)
JOSEMARIA RESOUR NGQSEK EU 22.3 (36.4) (27.2)
JOSEMARIA RESOUR JOSES EB 22.3 (36.4) (27.2)
JOSEMARIA RESOUR JOSES IX 22.3 (36.4) (27.2)
JOSEMARIA RESOUR JOSES I2 22.3 (36.4) (27.2)
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 GR 9,439.0 (1,858.0) 166.0
L BRANDS INC LTD TH 9,439.0 (1,858.0) 166.0
L BRANDS INC LB US 9,439.0 (1,858.0) 166.0
L BRANDS INC LTD SW 9,439.0 (1,858.0) 166.0
L BRANDS INC LBRA AV 9,439.0 (1,858.0) 166.0
L BRANDS INC LBEUR EU 9,439.0 (1,858.0) 166.0
L BRANDS INC LB* MM 9,439.0 (1,858.0) 166.0
L BRANDS INC LTD QT 9,439.0 (1,858.0) 166.0
L BRANDS INC-BDR LBRN34 BZ 9,439.0 (1,858.0) 166.0
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 54.1 (7.1) (30.1)
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 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 MAR AV 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 MAS* MM 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ GZ 4,840.0 (165.0) 1,241.0
MASCO CORP MSQ GR 4,840.0 (165.0) 1,241.0
MASCO CORP MAS US 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
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 MCD TE 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 SW 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD US 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 MCDUSD SW 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCDEUR EU 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MDO GZ 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD AV 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP 0R16 LN 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MCD CI 50,568.0 (9,293.4) 3,569.1
MCDONALDS CORP MDO QT 50,568.0 (9,293.4) 3,569.1
MCDONALDS-CEDEAR MCDC AR 50,568.0 (9,293.4) 3,569.1
MCDONALDS-CEDEAR MCD AR 50,568.0 (9,293.4) 3,569.1
MCDONALDS-CEDEAR MCDD AR 50,568.0 (9,293.4) 3,569.1
MICHAELS COS INC MIK US 4,307.6 (1,515.4) 347.9
MICHAELS COS INC MIM GR 4,307.6 (1,515.4) 347.9
MICHAELS COS INC MIKEUR EU 4,307.6 (1,515.4) 347.9
MILESTONE MEDICA MMD PW 0.6 (13.9) (13.9)
MILESTONE MEDICA MMDPLN EU 0.6 (13.9) (13.9)
MONEYGRAM INTERN MGI US 3,895.7 (267.7) (133.6)
MONEYGRAM INTERN 9M1N QT 3,895.7 (267.7) (133.6)
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 QT 3,911.8 (354.3) 821.5
MSCI INC 3HM GZ 3,911.8 (354.3) 821.5
MSCI INC MSCI* MM 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 GR 797.6 (612.0) 210.8
MSG NETWORKS- A 1M4 TH 797.6 (612.0) 210.8
NANTHEALTH INC NEL GR 261.0 (33.6) 28.2
NANTHEALTH INC NHEUR EU 261.0 (33.6) 28.2
NANTHEALTH INC NEL TH 261.0 (33.6) 28.2
NANTHEALTH INC NH US 261.0 (33.6) 28.2
NATHANS FAMOUS NATH US 105.3 (66.4) 75.2
NATHANS FAMOUS NFA GR 105.3 (66.4) 75.2
NATHANS FAMOUS NATHEUR EU 105.3 (66.4) 75.2
NAVISTAR INTL IHR TH 6,440.0 (3,856.0) 1,842.0
NAVISTAR INTL NAV US 6,440.0 (3,856.0) 1,842.0
NAVISTAR INTL NAVEUR EU 6,440.0 (3,856.0) 1,842.0
NAVISTAR INTL IHR GR 6,440.0 (3,856.0) 1,842.0
NAVISTAR INTL IHR QT 6,440.0 (3,856.0) 1,842.0
NAVISTAR INTL IHR GZ 6,440.0 (3,856.0) 1,842.0
NESCO HOLDINGS I NSCO US 815.1 (27.5) 62.5
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 NVAX US 328.1 (24.0) 236.3
NOVAVAX INC NVV1 GR 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 GZ 1,773.3 (184.0) 381.8
NUTANIX INC - A 0NU GR 1,773.3 (184.0) 381.8
NUTANIX INC - A 0NU TH 1,773.3 (184.0) 381.8
NUTANIX INC - A NTNXEUR EU 1,773.3 (184.0) 381.8
NUTANIX INC - A 0NU QT 1,773.3 (184.0) 381.8
NUTANIX INC - A NTNX US 1,773.3 (184.0) 381.8
OCULAR THERAPEUT OCUL US 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 GZ 72.9 (10.7) 44.0
OCULAR THERAPEUT 0OT GR 72.9 (10.7) 44.0
OMEROS CORP OMER US 118.2 (131.9) 27.7
OMEROS CORP 3O8 GR 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
OMNIA WELLNESS I OMWS US 0.0 (0.0) (0.0)
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 OTISEUR EU 9,524.0 (4,189.0) 159.0
OTIS WORLDWI 4PG GZ 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 PP1 GR 718.3 (68.4) (30.5)
PAPA JOHN'S INTL PZZA US 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 GR 233.7 (55.2) 183.9
PARATEK PHARMACE N4CN TH 233.7 (55.2) 183.9
PARATEK PHARMACE PRTK US 233.7 (55.2) 183.9
PHILIP MORRI-BDR PHMO34 BZ 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1 TE 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 4I1 TH 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PM1EUR EU 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMI SW 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 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 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 PMIZ IX 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN PMIZ EB 37,494.0 (11,063.0) 277.0
PHILIP MORRIS IN 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 PLNT1EUR EU 1,875.6 (692.2) 484.3
PLANET FITNESS-A 3PL QT 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
PLANTRONICS INC PTM GR 2,257.2 (82.8) 209.2
PLANTRONICS INC PLT US 2,257.2 (82.8) 209.2
PLANTRONICS INC PLTEUR EU 2,257.2 (82.8) 209.2
PLANTRONICS INC PTM GZ 2,257.2 (82.8) 209.2
PPD INC PPD US 5,814.8 (1,047.2) 212.3
QUANTUM CORP QMCO US 166.0 (198.5) (22.4)
QUANTUM CORP QTM1EUR EU 166.0 (198.5) (22.4)
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 GR 201.6 (74.2) 124.6
RADIUS HEALTH IN 1R8 TH 201.6 (74.2) 124.6
RADIUS HEALTH IN RDUSEUR EU 201.6 (74.2) 124.6
RADIUS HEALTH IN 1R8 QT 201.6 (74.2) 124.6
REC SILICON ASA RECO S1 280.6 (9.8) (2.7)
REC SILICON ASA RECO B3 280.6 (9.8) (2.7)
REC SILICON ASA RECO I2 280.6 (9.8) (2.7)
REVLON INC-A REV US 2,779.6 (1,435.8) (447.5)
REVLON INC-A RVL1 GR 2,779.6 (1,435.8) (447.5)
REVLON INC-A RVL1 SW 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 GR 182.6 (19.0) (70.2)
ROSETTA STONE IN RS8 TH 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 S7V GR 2,921.2 (53.2) 533.2
SALLY BEAUTY HOL SBHEUR EU 2,921.2 (53.2) 533.2
SBA COMM CORP 4SB GZ 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 GR 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBAC* MM 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBJ TH 9,359.5 (4,302.8) (624.5)
SBA COMM CORP 4SB QT 9,359.5 (4,302.8) (624.5)
SBA COMM CORP SBACEUR EU 9,359.5 (4,302.8) (624.5)
SBA COMMUN - BDR S1BA34 BZ 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
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
SHIFT4 PAYMENT-A FOUR US 840.8 (140.6) -
SIRIUS XM HOLDIN RDO TH 10,935.0 (747.0) (2,219.0)
SIRIUS XM HOLDIN RDO GR 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 SW 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 SIRI AV 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 SIX US 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT 6FE TH 2,720.5 (323.6) (168.7)
SIX FLAGS ENTERT 6FE QT 2,720.5 (323.6) (168.7)
SLEEP NUMBER COR SL2 GR 1,013.8 (155.9) (422.3)
SLEEP NUMBER COR SNBR US 1,013.8 (155.9) (422.3)
SLEEP NUMBER COR SNBREUR EU 1,013.8 (155.9) (422.3)
SOCIAL CAPITAL IPOB/U US 0.5 0.0 (0.3)
SOCIAL CAPITAL IPOC/U US 0.7 0.0 (0.6)
SOCIAL CAPITAL-A IPOC US 0.7 0.0 (0.6)
SOCIAL CAPITAL-A IPOB US 0.5 0.0 (0.3)
SONA NANOTECH IN SONA CN 0.5 (0.8) (0.4)
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 SW 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 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 AV 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP USSBUX KZ 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 US 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX CI 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SBUX PE 27,478.9 (7,532.9) (2,515.9)
STARBUCKS CORP SRB QT 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-BDR SBUB34 BZ 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-CEDEAR SBUX AR 27,478.9 (7,532.9) (2,515.9)
STARBUCKS-CEDEAR SBUXD AR 27,478.9 (7,532.9) (2,515.9)
TAILORED BRANDS TLRD* MM 2,419.0 (98.3) 206.4
TAUBMAN CENTERS TU8 GR 4,727.0 (241.7) -
TAUBMAN CENTERS TCO US 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 TH 101.8 (1.4) 24.9
TG THERAPEUTICS NKB2 GR 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
TRIUMPH GROUP TG7 GR 2,980.3 (781.3) 573.9
TRIUMPH GROUP TGI US 2,980.3 (781.3) 573.9
TRIUMPH GROUP TG7 TH 2,980.3 (781.3) 573.9
TRIUMPH GROUP TGIEUR EU 2,980.3 (781.3) 573.9
TUPPERWARE BRAND TUP US 1,295.2 (364.0) (192.3)
TUPPERWARE BRAND TUP GR 1,295.2 (364.0) (192.3)
TUPPERWARE BRAND TUP SW 1,295.2 (364.0) (192.3)
TUPPERWARE BRAND TUP TH 1,295.2 (364.0) (192.3)
TUPPERWARE BRAND TUP1EUR EU 1,295.2 (364.0) (192.3)
TUPPERWARE BRAND TUP GZ 1,295.2 (364.0) (192.3)
TUPPERWARE BRAND TUP QT 1,295.2 (364.0) (192.3)
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 UIS US 2,971.6 (209.4) 572.4
UNISYS CORP UIS1 SW 2,971.6 (209.4) 572.4
UNISYS CORP UISEUR EU 2,971.6 (209.4) 572.4
UNISYS CORP UISCHF EU 2,971.6 (209.4) 572.4
UNISYS CORP USY1 TH 2,971.6 (209.4) 572.4
UNISYS CORP USY1 GR 2,971.6 (209.4) 572.4
UNISYS CORP USY1 GZ 2,971.6 (209.4) 572.4
UNISYS CORP USY1 QT 2,971.6 (209.4) 572.4
UNITI GROUP INC 8XC TH 5,014.1 (1,595.5) -
UNITI GROUP INC 8XC GR 5,014.1 (1,595.5) -
UNITI GROUP INC UNIT US 5,014.1 (1,595.5) -
VALVOLINE INC 0V4 GR 2,917.0 (237.0) 983.0
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 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 VRS GR 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSN US 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSN* MM 1,753.9 (1,409.1) 229.8
VERISIGN INC VRSNEUR EU 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS GZ 1,753.9 (1,409.1) 229.8
VERISIGN INC VRS QT 1,753.9 (1,409.1) 229.8
VERISIGN INC-BDR VRSN34 BZ 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)
WARNER MUSIC-A WMG US 6,124.0 (285.0) (1,149.0)
WARNER MUSIC-A WA4 GR 6,124.0 (285.0) (1,149.0)
WARNER MUSIC-A WMGEUR EU 6,124.0 (285.0) (1,149.0)
WARNER MUSIC-A WA4 GZ 6,124.0 (285.0) (1,149.0)
WARNER MUSIC-A WMG AV 6,124.0 (285.0) (1,149.0)
WARNER MUSIC-A WA4 TH 6,124.0 (285.0) (1,149.0)
WATERS CORP WAT US 2,666.5 (338.0) 776.7
WATERS CORP WAZ GR 2,666.5 (338.0) 776.7
WATERS CORP WAZ TH 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
WAYFAIR INC- A W US 2,751.4 (1,171.4) (215.7)
WAYFAIR INC- A W* MM 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 WU US 8,365.4 (149.7) (435.3)
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 W3U QT 8,365.4 (149.7) (435.3)
WIDEOPENWEST INC WOW US 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WU5 GR 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WU5 QT 2,494.7 (246.8) (90.6)
WIDEOPENWEST INC WOW1EUR EU 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
WORKHORSE GROUP WKHSEUR EU 44.2 (22.0) (15.0)
WORKHORSE GROUP 1WO TH 44.2 (22.0) (15.0)
WORKHORSE GROUP 1WO GZ 44.2 (22.0) (15.0)
WORKHORSE GROUP WKHS US 44.2 (22.0) (15.0)
WORKHORSE GROUP 1WO GR 44.2 (22.0) (15.0)
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 TH 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)
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
XPRESSPA GROUP I V9G TH 28.7 (2.5) (12.3)
XPRESSPA GROUP I V9G GR 28.7 (2.5) (12.3)
XPRESSPA GROUP I XSPA US 28.7 (2.5) (12.3)
XPRESSPA GROUP I V9G QT 28.7 (2.5) (12.3)
XPRESSPA GROUP I FHEUR EU 28.7 (2.5) (12.3)
XPRESSPA GROUP I V9G GZ 28.7 (2.5) (12.3)
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
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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.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***