/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/200810.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 10, 2020, Vol. 24, No. 222 Headlines 1005 LLC: Case Summary & 8 Unsecured Creditors 1A SMART START: Moody's Assigns B2 CFR, Outlook Stable 24 HOUR FITNESS: Reopens 4 of 10 New Jersey Locations 4-S RANCH: Sandton Credit Objects to Disclosure Statement A.E. CROSTHWAIT: Seeks to Hire Craig M. Geno as Legal Counsel ABSOLUT FACILITIES: RCA Buying 5 Facilities ACADIAN CYPRESS: Unsecureds to Get Payment from $75K Creditor Fund ADAMIS PHARMACEUTICALS: Regains Compliance with NASDAQ Listing Rule ADVANTAGE RENT A CAR: Sells Rental Agency Agreeents for $17M AIKIDO PHARMA: Incurs $2.31 Million Net Loss in Second Quarter AKORN INC: Disclosures Approved; Lenders Have Lone Bid AKORN INC: Unsecured Creditors to Receive Nothing in Plan ALANI PROPERTY: Taps Scott B. Riddle as Legal Counsel ALASKA AIR: Egan-Jones Lowers Senior Unsecured Ratings to B+ ALLIANCE DATA: Egan-Jones Cuts Foreign Currency Unsec. Rating to B AQUABOUNTY TECHNOLOGIES: Incurs $3.52M Net Loss in 2nd Quarter ARCHDIOCESE OF NEW ORLEANS: Misses Bond Payment After Filing ARMED BEAVERS: Taps Jorgensen Brownell as Legal Counsel ATLANTIC 111ST: Unsecureds to Receive $5K Per Month over 2 Years AUC TRUCKING: Gets Approval to Hire Pamela Magness as Accountant B-LINE CARRIERS: Voluntary Chapter 11 Case Summary BAHATI LLC: Hires Burch & Cracchiolo as Bankruptcy Counsel BEN CLYMER'S: Trustee Seeks to Hire Levene Neale as Legal Counsel BETTER HOUSING: Sept. 30 Bid Deadline Set for Properties BLACK BOTTLE BREWERY: Files Chapter 11 Bankruptcy Protection BRIDGEWATER HOSPITALITY: Unsecureds to Recover 2% Over 3 Years BROOKFIELD PROPERTY: Gets Waiver of Covenants on Credit Facility CAMERON TRANSPORT: Case Summary & 20 Largest Unsecured Creditors CARVANA CO: Incurs $40.8 Million Net Loss in Second Quarter CBAK ENERGY: Agrees With Lender to Swap $365K Note for Equity CEC ENTERTAINMENT: Bankruptcy Threatens Future of 700 Locations CEC ENTERTAINMENT: Rejecting Leases for 45 Locations CEC ENTERTAINMENT: Wins Approval to Defer Rent Payments CFO MANAGEMENT: CPIF Says Trustee Plan Patently Unconfirmable CHESAPEAKE ENERGY: Bankruptcy Filing Prompts Concerns of Landowners CHESAPEAKE ENERGY: CDS Panel Voted to Trigger $543M Swaps Payout CHINESEINVESTORS.COM: Committee Taps Force 10 as Financial Advisor CHINESEINVESTORS.COM: Committee Taps Weintraub & Selth as Counsel CIRQUE DU SOLEIL: To Cut 3,500 Jobs as Part of Bankruptcy COCRYSTAL PHARMA: Incurs $3.49 Million Net Loss in 2nd Quarter COLUMBUS OIL: Gets Approval to Hire Heyboer Law as Legal Counsel COMARK HOLDING: Emerges from CCAA Creditor Protection COMMERCIAL PRODUCTS: Case Summary & 17 Unsecured Creditors COMMERCIAL ROOFING: Seeks to Hire Michael D. O'Brien as Counsel COMSTOCK RESOURCES: Posts $60 Million Net Loss in Second Quarter COSTA HOLLYWOOD: Aug. 11 Plan Confirmation Hearing Set DAVIDSTEA INC: Obtains Amended and Restated Court Order Under CCAA DAVITA INC: Moody's Rates New Sr. Unsecured Notes Due 2031 'Ba3' DENBURY RESOURCES: Egan-Jones Lowers Sr. Unsecured Ratings to D DENBURY RESOURCES: Porter, Paul Weiss Update on Second Lien Group DIAMOND OFFSHORE: Egan-Jones Withdraws D Senior Unsecured Ratings EARTH FARE: Eight Stores to Reopen With New Owner ECS REFINING: Stockton, Cal. Assets Sold at Auction ENTEGRIS INC: Egan-Jones Cuts Foreign Currency Unsec. Rating to BB ENTREC CORP: CCAA Stay Period Extended Until Sept. 11 EQUITABLE HOLDINGS: Moody's Rates Preferred Stock 'Ba1(hyb)' EYEPOINT PHARMACEUTICALS: Incurs $13M Net Loss in Second Quarter EYEPOINT PHARMACEUTICALS: Inks Alliance Agreement with ImprimisRx EYEPOINT PHARMACEUTICALS: Signs $25M Sales Agreement with Cantor FARM-RITE LLC: Case Summary & 25 Largest Unsecured Creditors FASTTRACK FOODS: Case Summary & 20 Largest Unsecured Creditors FAT BRANDS I: DBRS Keeps BB Rating on Cl. A-2 Notes Under Review FR TNT: Enters Into Restructuring Support Agreement GENESIS VENTURE: Voluntary Chapter 11 Case Summary GLOBAL ASSET: Hires Genovese Joblove as Counsel GLOBAL ASSET: Hires KapilaMukamal Partner as CRO GNC HOLDINGS: Committee Hires Bayard P.A. as Co-Counsel GNC HOLDINGS: Committee Hires PwC as Tax Service Provider GNC HOLDINGS: Panel Hires Miller Buckfire as Investment Banker GNC HOLDINGS: Spares High Desert, CA Locations GNC HOLDINGS: To Close Store in Vienna Town, Va. GO DADDY: Moody's Rates New Incremental First Lien Term Loan 'Ba1' GREEN GROWTH: Provides Update on Insolvency Proceedings Under CCAA GRESHAM HOTEL: Case Summary & 16 Unsecured Creditors GROM SOCIAL: Posts $1.35 Million Net Loss in First Quarter GRUPO AEROMEXICO: Readying Financing Plan GRUPO FAMSA: Chapter 15 Case Summary GRUPO FAMSA: Orrick, Herrington Represents Bondholder Group GRUPO FAMSA: Targets August Emergence From Chapter 11 GULFPORT ENERGY: Reports Q2 2020 Financial & Operating Results GUNSMOKE LLC: Taps Jorgensen Brownell as Legal Counsel HASBRO INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB HCA HEALTHCARE: Egan-Jones Hikes Senior Unsecured Rating to B+ HENRY ANESTHESIA: Hires Jones & Walden as Counsel HITZ RESTAURANT: In Chicago, Rent May Be Reduced Due to Shutdown HORNBLOWER SUB: Moody's Cuts PDR to Caa3-PD on Distressed Exchange ICONIX BRAND: Completes Umbro China Sale for $62.5 Million IMERYS TALC: Sale Process Okayed Despite Concerns of Insurers INSPIREMD INC: Incurs $2.48 Million Net Loss in Second Quarter INTELSAT SA: Wins Court Approval for the $17M Bonus Plan for Execs. ISLAND CAPITAL: Seeks to Hire Friend Law Firm as Counsel J.C. PENNEY: Most Stores Reopened as Chapter 11 Case Proceeds J.C. PENNEY: Simon Eyeing to Redevelop Certain Real Estate JEWEL COUTURE: Case Summary & 4 Unsecured Creditors KD BELLE: Seeks to Hire Sternberg Naccari as Counsel KOPIN CORPORATION: Incurs $1.12 Million Net Loss in Second Quarter LATAM AIRLINES: Committee Taps Klestadt Winters as Conflict Counsel LE PAIN QUOTIDIEN: Sale to Aurify to Keep At Least 35 Stores Open LEGENDS GOLF: Case Summary & 20 Largest Unsecured Creditors LIFTOPIA INC: Says Skico's Claims Disputed and Inflated LILIS ENERGY: Files for Chapter 11 With Varde-Backed Plan MALLINCKRODT PLC: Swings to $933.1M Net Loss in Second Quarter MARCO GENERAL: Unsecured Creditors to Have 5% Recovery Over 5 Years MATTEL INC: Egan-Jones Lowers Sr. Unsecured Debt Ratings to CCC+ MCDERMOTT INTERNATIONAL: Exits Chapter 11 Bankruptcy MGIC INVESTMENT: Moody's Rates $550MM Senior Unsecured Notes 'Ba1' MJ TRANSPORTATION: Estate Sale/Ongoing Operations to Fund Plan MUSEUM OF AMERICAN JEWISH: Duane Represents Ronald Rubin, 10 Others MYADERM INC: Files Chapter 11 Bankruptcy Protection NABORS INDUSTRIES: Posts $151.8-Mil. Net Loss in Second Quarter NATIONAL MEDICAL: Files for Ch. 11 Again After Court Reversal NEONODE INC: Expects Q2 Revenues of $650K to $850K NEPHROS INC: Incurs $1.72 Million Net Loss in Second Quarter NORDSTROM INC: Cut 6,000 Workers Nationwide in June OASIS PETROLEUM: Posts $93 Million Net Loss in Second Quarter ONE EARTH LANDSCAPE: Hires Morris Tax Service as Accountant OWENS & MINOR: Fitch Affirms CCC+ LongTerm IDR, Outlook Positive OWENS & MINOR: Incurs $55.6 Million Net Loss in Second Quarter PERFORMANCE SPORTS: Former Execs Win Ch. 11 Duty Breach Lawsuit PG&E CORP: Law Signed for Takeover in Case Something Goes Wrong PIONEER NURSERY: Unsecureds to Recover 24% in Liquidating Plan PLAYERS NETWORK: Gets Court Approval to Hire Accountant PLAYERS NETWORK: Taps Thomas E. Crowe as Legal Counsel PLUS THERAPEUTICS: Amends Terms of Series U Warrants PRIORITY HEALTHCARE: Taps Craig M. Geno as Legal Counsel PROTEUS DIGITAL: Hires Kurtzman Carson as Administrative Advisor PTSI CONSTRUCTION: Seeks Approval to Hire Accountant QUANTUM CORP: Incurs $10.7 Million Net Loss in First Quarter QUORUM HEALTH: To Emerge From Bankruptcy in August 2020 R.E.X. INC: Hires Caldwell & Riffee as Counsel RAUL MORENO: Former Sea Tow Franchisees Sued Over Use of Logo RAYONIER ADVANCED: Posts $12.9 Million Net Loss in Second Quarter REISINGER HOLDINGS: Hires Matthew M. Cree as Counsel RENNOVA HEALTH: Reverse Common Stock Split Took Effect on July 31 REPUBLIC FIRST: Egan-Jones Lowers Senior Unsecured Ratings to BB RGN-FORT LAUDERDALE III: Case Summary & Unsecured Creditor RJT REAL ESTATE: RMM Properties' Value Unimpaired in Amended Plan SABRE INDUSTRIES: Moody's Raises CFR to B1, Outlook Stable SANCHEZ ENERGY: Exits Bankruptcy as Mesquite Energy SANDS CORP: Egan-Jones Lowers Sr. Unsecured Ratings to BB- SCHLUMBERGER LIMITED: Egan-Jones Lowers Sr. Unsec. Ratings to BB- SEABRAS 1 USA: Plan of Reorganization Confirmed by Judge SILGAN HOLDINGS: Egan-Jones Ups Local Currency Unsec. Rating to BB- SINTX TECHNOLOGIES: Inks Joint Venture Deal to Develop Face Masks SLM CORP: Moody's Affirms Ba1 Issuer Rating, Outlook Stable SPIRIT AIRLINES: Egan-Jones Lowers Senior Unsecured Ratings to B- STAGE STORES: A&G Accepting Bids on Distribution Center STEREOTAXIS INC: Reports $2.26 Million Net Loss for Second Quarter STORAGE MEDIA: Voluntary Chapter 11 Case Summary SUNNY HILLS: Gets Court Approval to Hire DirtBrokers Inc. TEXAS CAPITAL: Egan-Jones Cuts Foreign Currency Unsec. Rating to BB THEE TREE HOUSE: Unsecureds to be Paid in Full in Plan THOMAS HEALTH: Unsecureds Owed $180 Million to Split $750,000 TNP SPRING: Seeks to Hire Shulman Bastian as Counsel TPT GLOBAL: QuikLAB Gets Certificate of Use From Miami County TRIUMPH GROUP: Incurs $277.3 Million Net Loss in First Quarter TRIUMPH GROUP: Prices $700M Offering of Senior Secured Notes TUESDAY MORNING: A&G Accepting Bids on Leasehold Interest TWITTER INC: Egan-Jones Lowers Sr. Unsecured Debt Ratings to B+ UMPQUA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to BB+ UNITED RENTALS: S&P Rates $1.1BB Senior Unsecured Notes 'BB-' VERITY HEALTH: Gets Court OK to Solicit Votes on Liquidation Plan WAVE COMPUTING: Creditors' Committee Members Disclose Claims WEINSTEIN COMPANY: Unsecureds to Receive Less Than 2% in Plan WHITING PETROLEUM: Gets Court Clearance to Gather Ch. 11 Plan Votes WINDSTREAM SERVICES: Moody's Assigns B3 CFR Over Exit Financing YOUNGEVITY INTERNATIONAL: Amends Joint Venture Agreement [*] Bankruptcy Court OKs Sept. 3 Bid Deadline for Quarry Land [*] Bankruptcy Courts Can Expect Growing Cases This Year [*] CARES Act and SBR Act Help Small Businesses Manage Debt [*] Chapter 11 Filings at Fastest Pace Since 2013 [*] Commercial Chapter 11 Bankruptcy Filings Up 52% in July [*] Considering Lease Concessions for Bankrupt Tenants [*] Corporate Insolvency & Governance Act 2020 Comes Into Force [*] Energy CEOs Awarded Bonuses Despite Companies' Struggles [*] IP & Bankruptcy Vital to Startups in Financial Distress [*] Pandemic Continues to Force Companies to Explore Bankruptcy [*] Retail Calamity Felt Across Connecticut [*] Tom McCabe Joins Newpoint Advisors as Managing Director [^] BOND PRICING: For the Week from August 3 to 7, 2020 ********* 1005 LLC: Case Summary & 8 Unsecured Creditors ---------------------------------------------- Debtor: 1005, LLC 1025 SW 4th Street Oklahoma City, OK 73160 Business Description: 1005, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Western District of Oklahoma Case No.: 20-12631 Debtor's Counsel: Larry G. Ball, Esq. HALL, ESTILL, HARDWICK, GABLE, GOLDEN & NELSON, P.C. 100 North Broadway Suite 2900 Oklahoma City, OK 73102-8865 Tel: 405-553-2828 Email: lball@hallestill.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Amir M. Farzaneh, owner and manager. A copy of the petition containing, among other items, a list of the Debtor's eight unsecured creditors is available for free at PacerMonitor.com at: https://is.gd/JDPULm 1A SMART START: Moody's Assigns B2 CFR, Outlook Stable ------------------------------------------------------ Moody's Investors Service assigned first-time ratings to 1A Smart Start LLC, including a B2 corporate family rating, a B2-PD probability of a default rating, and B2 instrument ratings to the company's senior secured, first-lien debt, which includes a $40 million revolver and a $350 million term loan. Proceeds from the term loan as well as balance sheet cash will be used to repay $362 million of existing debt and to pay transaction expenses. The outlook is stable. Issuer: 1A Smart Start LLC Assignments: Corporate Family Rating, assigned B2 Probability of Default Rating, assigned B2-PD Senior Secured Bank Credit Facility maturing 2025 and 2027, assigned B2 (LGD3) Outlook Action: Outlook is stable RATINGS RATIONALE As one of the world's largest providers of ignition interlock devices, vehicle breathalyzers, and their supporting components that prevent impaired driving, Smart Start enjoys a strong competitive position and excellent profitability. These strengths help offset a very small, sub-$200 million revenue scale and rather high Moody's-adjusted opening debt-to-EBITDA leverage of 6.0 times, pro-forma as of June 30, 2020. However, Moody's expects leverage will moderate towards 5.0 times by year-end, and below 5.0 times by the end of 2021, good for the B2 corporate family rating. Historically strong double-digit average revenue growth will be tempered through 2021 in the U.S., Smart Start's largest market by far, where new installations of IID units will decline because of COVID-19-related court closures. However, good growth in the relatively new markets of Canada and Australia, in both of which Smart Start holds a leading position, will provide moderate, low-single digit revenue growth. International markets tend to be more profitable as well. Moody's therefore believes that Smart Start can sustain very strong, mid-40%s EBITDA margins. Society's need and interest to curtail drunk driving and minimize deaths from it will continue to remain strong; all 50 states have some form of ignition-interlock-device law. The social component of ESG risks is therefore a key ratings consideration, but one which supports Smart Start's model. The company has a more than 25-year history of solidifying relationships with governmental authorities and staying abreast of regulatory requirements that have increasingly supported the use of IIDs. Moody's also considers Smart Start's governance an ESG consideration due to financial sponsor ownership and the risk of high financial leverage. In the past the sponsor has taken debt-funded dividends. Smart Start's good liquidity also supports the B2 CFR. The past two years' free cash flow has been negative, but largely because of outsized capital expenditures for manufacturing alcohol monitoring devices and components for contract wins in new markets. With those expenses largely behind the company, and given the high-margin growth they'll help generate, Moody's expects strong free cash flows over the next 12 to 18 months, representing mid- to upper-single-digit free cash flow as a percentage of debt, good for the B2 rating. Opening balance sheet cash of $14 million plus an undrawn $40 million revolver augment the company's operating liquidity. The stable outlook reflects Moody's view that regulatory trends, technological innovation, and societal behavioral patterns will continue to promote robust, non-cyclical demand for IIDs. After a COVID-19 induced slowdown through 2020, revenue growth should resume to mid-single-digit-percentages by early-2021 as broader court restrictions are loosened and society gradually reopens. Increasing profitability will help leverage to moderate to a relatively strong position for the CFR. Preliminary terms in the first lien credit agreement contain provisions for incremental debt capacity up to the greater of $33.5 million and 50% of consolidated EBITDA for the trailing twelve months plus additional amounts subject to an initial pro-forma first-lien net leverage of 5.0 times (if pari passu secured). The maturity of the incremental facilities must be no later than the maturity of the existing facilities. Incremental equivalent debt capacity is subject to a total net leverage ratio of 6.0 times if junior. There are no anticipated "blocker" provisions providing additional restrictions on top of the covenant carve-outs to limit collateral leakage through transfers of assets to unrestricted subsidiaries. Only wholly-owned subsidiaries must provide guarantees, raising the risk of potential guarantee release; dividends of partial ownership interests could jeopardize guarantees. FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Absent a material increase in revenue scale or product diversity, Moody's would consider an upgrade if free cash flow as a percentage of debt is sustained above 10% and Moody's anticipates that adjusted debt-to-EBITDA leverage will be sustained below 4.0 times. Moody's would consider a downgrade if Moody's does not expect the moderate negative revenue trend will be reversed, if leverage is sustained above 6.0 times, or free-cash-flow-to-debt is expected to fall to the low single-digit percentages. Headquartered in Dallas, Texas, Smart Start is the world's leading provider of IIDs for driving under the influence offender and commercial use, making it the largest alcohol monitoring service provider in the world. The primary borrower, 1A Smart Start LLC, represents about 95% of the revenue and EBITDA of the audited consolidated entity, Global IID Parent, LLC and Subsidiaries. The company provides alcohol monitoring services (using its devices) to individuals and commercial customers. Its products include IIDs and remote alcohol monitoring devices. The company manufactures, installs, and monitors IIDs in vehicles owned by people who typically have been convicted of DUIs or similar types of offenses or in vehicle fleets operated by commercial and governmental entities. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. 24 HOUR FITNESS: Reopens 4 of 10 New Jersey Locations ----------------------------------------------------- Lianna Albrizio, writing for Tapinto, reports that 24-Hour Fitness has reopened its Paramus, New Jersey location, as well as 3 other locations in the state. After 24-Hour Fitness -- a privately-owned fitness center of more than three decades headquartered in San Ramon, California with clubs in 14 states across the country -- announced its filing for relief under Chapter 11 of the U.S. Bankruptcy Code mid this month following the "disproportionate impact of the Covid-19 pandemic," four of its 10 New Jersey locations -- Paramus included -- have reopened. According to a press release from the company dated June 15, 24-Hour Fitness anticipates it will secure roughly $250 million in debtor-in-possession financing and a financial restructuring with the reopening of dozens of clubs across the country. Among them in New Jersey is the Paramus Super-Sport Gym located at 260 East State Route 4. Along with Paramus, the Englewood Cliffs, Ramsey and Springfield gyms are also expected to reopen, while the other six locations in New Jersey — Jersey City, Hasbrouck Heights, Piscataway, Saddle Brook, Wayne, Whippany, and Woodbridge Township — will remain closed. According to Chief Executive Officer Tony Ueber, "substantial financing" is expected with a "path to restructuring their balance sheet and operations" to ensure what he's calling a "resilient future." 24-Hour Fitness's salaried and hourly team members will continue to be paid their wages and benefits, per court authorization. "The Covid-19 environment has proved that attention to health and fitness are more important now than ever before," said Ueber. "As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative produces and services that will enhance the fitness experience for our club members and guests many years to come." 24-Hour Fitness will have a new workout reservation system and a touch-free club check-in. "Stringent" cleaning and social distancing protocols will also be observed to support the health and safety of gym goers. The fitness center chain is also offering a modified selection of fitness classes as a precautionary measure upon the anticipated reopening, which will include limited class sizes. Virtual group training sessions will also be offered weekly, in addition to one-on-one sessions, in-club. Personal training and studio classes will meet in certain club areas where members can safely maintain social distancing. Amenities at the Paramus gym will include free WiFi, strength machines, group cycling, sauna, and racquetball and basketball courts, among others. However, certain amenities that cannot be used under social distancing guidelines will be temporarily closed, and decommissioning select cardio and strength equipment throughout the club to ensure proper spacing. The following amenities will be closed until further notice: Kids' Club; all drinking fountains; lap pool, steam room, whirlpool and sauna; and locker room showers. About 24 Hour Fitness 24 Hour Fitness Worldwide, Inc., owns and operates fitness centers in the United States. As of March 31, 2017, the company operated 426 clubs serving approximately 3.6 million members across 13 states and 23 markets, predominantly in California, Texas and Colorado. For the 12 months ended March 31, 2017, the company generated total revenue of about $1.4 billion. In May 2014, 24 Hour Fitness was acquired by affiliates of AEA Investors LP, Fitness Capital Partners and Ontario Teachers' Pension Plan for a total purchase price of approximately $1.8 billion. 24 Hour Fitness Worldwide and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-11558) on June 15, 2020. 24 Hour Fitness was estimated to have $1 billion to $10 billion in assets and liabilities as of the bankruptcy filing. The Hon. Karen B. Owens is the case judge. The Debtors tapped Weil, Gotshal & Manges, LLP as lead bankruptcy counsel; Pachulski Stang Ziehl & Jones, LLP as local counsel; FTI Consulting, Inc. as financial advisor; Lazard Freres & Co. LLC as investment banker; and Prime Clerk, LLC as claims agent. 4-S RANCH: Sandton Credit Objects to Disclosure Statement --------------------------------------------------------- Creditor Sandton Credit Solutions Master Fund IV, LP, objects to approval of the Disclosure Statement submitted by debtor 4-S Ranch Partners, LLC, related to its proposed Plan of Reorganization. Sandton claims that the Disclosure Statement describes the 4-S Property as central to the success of 4-S's Plan, including its ability to pay unsecured creditors and certain priority claims, but neglects to analyze the impact of the Motion for Relief from the Automatic Stay filed by Sandton and currently pending in this proceeding. Sandton also objects to the extent 4-S's Disclosure Statement contemplates beginning the confirmation process before resolution of the pending Motion for Relief from the Automatic Stay. Sandton joins the objection asserted by the U.S. Trustee related to the liquidation analysis provided in the Disclosure Statement. As the U.S. Trustee notes, this analysis also fails to account for any other assets or the impact of Sandton's secured claim in Mr. Sloan's individual bankruptcy. Sandton requests the Court sustain its Objection and deny approval of the Disclosure Statement and/or delay solicitation of votes and confirmation of the Plan until after Sandton's motion for relief from stay can be heard and determined by the Court. A copy of Sandton's objection to Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/y88tnnhk from PacerMonitor at no charge. Attorneys for Creditor Sandton: WANGER JONES HELSLEY PC 265 E. River Park Circle, Suite 310 Fresno, CA 93720 Telephone: (559) 233-4800 Facsimile: (559) 233-9330 Kurt F. Vote Steven K. Vote E-mail: kvote@wjhattorneys.com svote@wjhattorneys.com About 4-S Ranch Partners 4-S Ranch Partners, LLC, is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). 4-S Ranch Partners filed its voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal. Case No. 20-10800) on March 2, 2020. The petition was signed by Stephen W. Sloan, managing member. At the time of filing, the Debtor was estimated to have $500 million to $1 billion in assets and $50 million to $100 million in liabilities. The case is assigned to Judge Rene Lastreto II. Reno F.R. Fernandez III, Esq., at MACDONALD FERNANDEZ LLP, represents the Debtor. A.E. CROSTHWAIT: Seeks to Hire Craig M. Geno as Legal Counsel ------------------------------------------------------------- A.E. Crosthwait & Co., Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Mississippi to hire the Law Offices of Craig M. Geno, PLLC as its legal counsel. The firm will provide these services in connection with Debtor's Chapter 11 case: a. advise and consult with Debtor regarding questions arising from certain contract negotiations; b. evaluate and object to claims of creditors; c. appear in, prosecute or defend suits and proceedings; d. represent Debtor in court hearings and assist in the preparation of court papers; and e. advise and consult with Debtor in connection with any proposed reorganization plan. The firm's services will be provided mainly by Craig Geno, Esq., who will be paid at the rate of $450 per hour. Associates and paralegals will charge $275 per hour and $190 per hour, respectively. The firm received a retainer of $11,500, which includes the $1,717 filing fee. The Law Offices of Craig M. Geno is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through; Craig M. Geno, Esq. Law Offices of Craig M. Geno, PLLC 587 Highland Colony Parkway P.O. Box 3380 Ridgeland, MS 39158-3380 Telephone: (601) 427-0048 Facsimile: (601) 417-0050 Email: cmgeno@cmgenolaw.com About A.E. Crosthwait & Co. A.E. Crosthwait & Co., Inc., a Houston, Miss.-based fruits and vegetables wholesaler, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Miss. Case No. 20-12414) on July 28, 2020. At the time of the filing, Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Debtor is represented by the Law Offices of Craig M. Geno, PLLC. ABSOLUT FACILITIES: RCA Buying 5 Facilities ------------------------------------------- Maggie Flynn, writing for Skilled Nursing News, reports that RCA Healthcare announces plans to buy five facilities owned by bankrupt Absolut Facilities LLC. RCA Healthcare Management filed plans with the New York Department of Health to take over five facilities owned by Absolut Facilities Management LLC, which filed for Chapter 11 bankruptcy in September 2019. Buffalo Business First reported the news on July 1, 2020. A sixth Absolut site is also expected to be part of the deal, but plans for that transfer have not yet been filed, according to the publication. The RCA takeover was approved by the U.S. Bankruptcy Court for the Eastern District of New York earlier this year. Edward Fardenblum, who leads RCA, told Buffalo Business First at the time that he planned to make an investment of “seven or eight figures” in the facilities, in addition to capitalization in systems and staffing to improve quality. About RCA Healthcare RCA Healthcare Management LLC is a healthcare company that provides quality nursing care to elderly people. About Absolut Facilities Management Absolut Facilities Management, LLC, through its subsidiaries, owns six skilled nursing facilities and one assisted living facility in the state of New York, have sought Chapter 11 protection. On Sept. 10, 2019, Absolut Facilities Management, LLC and seven related entities each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-76260). Loeb & Loeb LLP is the Debtors' counsel. Prime Clerk LLC is the claims and noticing agent. The Office of the U.S. Trustee on Oct. 3, 2019, appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases. ACADIAN CYPRESS: Unsecureds to Get Payment from $75K Creditor Fund ------------------------------------------------------------------ Acadian Cypress & Hardwoods, Inc., filed with the U.S. Bankruptcy Court for the Eastern District of Louisiana a Disclosure Statement to accompany the Chapter 11 Plan of Reorganization dated June 30, 2020. The Plan provides for payment in full of all administrative claims, payments for priority claims under Section 507(a)(8) on a basis that is not less favorable than the most favored non-priority unsecured claim provided for by the Plan as required by Section 1129(a)(9)(C) and (D) of the Bankruptcy Code, payment in full over time of the claims of Home Bank USDA, payment in full of the allowed secured claims of the Classes 4 and 5 creditors and a payment of about .10 for the unsecured creditors and the Classes 4 and 5(a-e) deficiency claims. Holders of Allowed Unsecured Claims in Class 6 and any deficiency claim of a Class 4 or Class 5 Creditor shall receive their pro rata share of the Unsecured Creditor Fund. The Debtor will pay into the Unsecured Creditor Fund the sum of $75,000. The first payment of $25,000 into the Unsecured Creditor Fund shall be made on the first anniversary of the Effective Date and an additional payment of $25,000 will be made into the Unsecured Creditor Fund by the Debtor on the second and third anniversaries of the Effective Date. The Debtor shall distribute the monies from the Unsecured Creditor Fund to Holders of Allowed Unsecured Claims and Class 4 or Class 5 deficiency claims on the first, second and third anniversaries of the Effective Date. In addition, in any calendar year through the fifth anniversary of the Effective Date where the Debtor's gross sales exceed $15,000,000, the Unsecured Creditor Fund will be paid 3% of such excess within 90 days of the close of such calendar year and these monies will be distributed to such Creditors immediately. Class 7 Equity Holders will retain 100% of their equity in the Debtor. The Debtor shall make no distributions to any Equity Holder (with the exception of tax distributions) until such time as this case is closed. Payments for creditors of the Debtor will be made from (1) funds on hand in the Debtor's DIP account; (2) proceeds from the operations of the Debtor; (3) one-half (1/2) of the recovery on the Flood Insurance Claim; and (4) government EDIL and Cares Act loans or other loans that will be available to the Debtor once it emerges from Chapter 11. A full-text copy of the Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/y7ucmwaf from PacerMonitor.com at no charge. The Debtor is represented by: Douglas S. Draper Leslie A. Collins Greta M. Brouphy Heller, Draper, Patrick, Horn & Manthey, L.L.C. 650 Poydras Street, Suite 2500 New Orleans, LA 70130-6103 Telephone:(504)299-3300/Fax:(504)299-3399 E-mail: ddraper@hellerdraper.com E-mail: lcollins@hellerdraper.com E-mail: gbrouphy@helldraper.com About Acadian Cypress Acadian Cypress & Hardwoods, Inc. -- http://www.acadianhardwoods.net/-- manufactures lumber, plywood, siding, shingles, flooring, fencing and molding profiles. Acadian Cypress sought Chapter 11 protection (Bankr. E.D. La. Case No. 19-12205) on April 15, 2019. In the petition signed by Frank Vallot, president, the Debtor was estimated to have assets and liabilities ranging from $1 million to $10 million. Judge Jerry A. Brown oversees the case. The Debtor tapped Heller, Draper, Patrick, Horn & Manthey, LLC as its legal counsel, and Raizner Slania LLP as its special counsel. ADAMIS PHARMACEUTICALS: Regains Compliance with NASDAQ Listing Rule ------------------------------------------------------------------- damis Pharmaceuticals Corporation has received a letter from the NASDAQ Listing Qualifications Staff notifying the company that as a result of the closing bid price of the company's common stock having been at $1.00 per share or greater for at least ten consecutive business days, the company has regained compliance with Nasdaq's minimum bid price requirement and the matter is now closed. Last year Adamis was notified by Nasdaq that it was not in compliance with the minimum bid price rule because the closing bid price of the company's common stock had closed below $1.00 per share for 30 consecutive business days, which is the minimum required closing bid price for continued listing on the Nasdaq Capital Market pursuant to Marketplace Rule 5550(a)(2). The company received additional communications from Nasdaq on April 14th and April 21st indicating that ultimately extended the deadline to regain compliance to Dec. 21, 2020. From July 22, 2020 to Aug. 4, 2020, the company's closing bid price for ADMP has been at $1.00 per share or greater. About Adamis Pharmaceuticals Adamis Pharmaceuticals Corporation -- http://www.adamispharmaceuticals.com/-- is a specialty biopharmaceutical company primarily focused on developing and commercializing products in various therapeutic areas, including respiratory disease, allergy and opioid overdose. The company's SYMJEPI (epinephrine) Injection 0.3mg and SYMJEPI (epinephrine) Injection 0.15mg products were approved by the FDA for use in the emergency treatment of acute allergic reactions, including anaphylaxis. Adamis reported a net loss of $29.31 million for the year ended Dec. 31, 2019, compared to a net loss of $39 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $45.28 million in total assets, $12.06 million in total liabilities, and $33.21 million in total stockholders' equity. Mayer Hoffman McCann P.C., in San Diego, California, the Company's auditor since 2007, issued a "going concern" qualification in its report dated March 30, 2020 citing that the Company has incurred recurring losses from operations and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ADVANTAGE RENT A CAR: Sells Rental Agency Agreeents for $17M ------------------------------------------------------------ Vince Sullivan, writing for Law360, reports that the parent company of Advantage Rent A Car received permission from a Delaware bankruptcy judge on June 30, 2020, for the sale of its airport rental agency agreements in two transactions worth more than $17 million. During a remote hearing conducted via telephone and videoconferencing, U.S. Bankruptcy Judge John T. Dorsey said he would approve the sales once issues relating to the treatment of contract cure costs were resolved through changes to the sale orders. "I'm satisfied, based on the record presented, the comments of the parties and the agreements proposed by counsel during the hearing that the sale orders are appropriate and in the best interests of the debtors," Judge Dorsey said. The sales emerged from an auction that wrapped up Sunday night and covers 16 airport concession contracts that allowed Advantage to operate its car rental locations at some of the country's largest airports. The larger deal will see Sixt Rent A Car acquire the concession agreements with 10 airports, including John F. Kennedy International Airport and LaGuardia Airport in New York City, for a total purchase price of $16.1 million. Orlando Rentco LLC will acquire six concession agreements for $1.6 million in cash, including Hartsfield-Jackson Atlanta International Airport in Georgia. This buyer is also acquiring the debtor's intellectual property. The deal includes an earnout provision that will see Orlando Rentco pay Advantage 3% of the car rental revenue earned at the locations where it acquired the concession agreements as well as 1% of the revenue earned at any other airport locations where the buyer operates a car rental agency under the Advantage brand. Final versions of the sale orders will reflect an agreement among the buyers, Advantage and some of the airport authorities that are counterparties to the concession agreements over the escrow of cure amounts for those agreements. The authorities had objected to the sale orders because they originally purported to escrow only the cure amounts the debtor had designated in earlier court filings, and not the amounts asserted by the authorities. Counsel for the authority governing the Las Vegas airport concession being sold to Sixt said it was concerned about there not being enough money in the escrow to cover cure costs if the sale was approved before those costs were paid, or if the costs turned out to be higher than the debtor expected. Attorneys representing the buyers and the debtor said the escrow would reflect the full amounts asserted by the authorities in their objections, resolving the issue. The parties pledged to amend the order and submit under certification of counsel Tuesday evening. Advantage Holdco Inc. sought Chapter 11 protection May 27 with about $510 million in debt. Vehicle leases accounted for about $102 million of the obligations, although the company's filings did not specify the number of vehicles operating in the 29 cities and 46 primarily airport locations nationwide. The buyers under the approved sales are not acquiring any vehicles from Advantage's fleet and banks that financed the vehicle purchases are continuing to repossess the vehicles on which they hold liens with the permission of the debtor and the buyers. Although the May Chapter 11 marked the company's third bankruptcy in the last two decades, company officials blamed the COVID-19 pandemic in particular for driving the business into a ditch through near total leisure travel shutdowns. The same pandemic-related collapse of business and leisure travel sent vehicle rental industry giant Hertz Global Holdings Inc. into Chapter 11 in Delaware a week before Advantage's arrival. Hertz reported that it took the step just ahead of a creditor forbearance deadline. That company entered bankruptcy with about $1 billion in cash, some $25.8 billion in assets and $24.4 billion in liabilities. Advantage is represented by Normal L. Pernick, Justin R. Alberto, J. Kate Stickles, Patrick J. Reilley, Stuart Komrower and Taylre C. Janak of Cole Schotz PC. Sixt Rent A Car is represented by Erin R. Fay of Bayard PA and Jacqueline Marcus of Weil Gotshal & Manges LLP. About Advantage Rent A Car Advantage Rent A Car -- http://www.advantage.com/-- is a car rental company with 50 locations in the U.S. and 130 international affiliate locations. The parent entity, Advantage Holdco, is owned by Toronto-based Catalyst Capital Group. Advantage has locations in 27 markets, including New York, Los Angeles, Orlando, Las Vegas and Hawaii, according to its website. Advantage Holdco, Inc., doing business as Advantage Rent a Car, sought Chapter 11 protection (Bankr. D. Del. Case No. 20-11259) on May 26, 2020. Six related entities also sought bankruptcy protection. The Hon. John T. Dorsey is the case judge. Advantage was estimated to have $100 million to $500 million in assets and $500 million to $1 billion in liabilities as of the bankruptcy filing. The Debtors tapped COLE SCHOTZ P.C. as counsel; and MACKINAC PARTNERS, LLC, as restructuring advisor. AIKIDO PHARMA: Incurs $2.31 Million Net Loss in Second Quarter -------------------------------------------------------------- Aikido Pharma Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss of $2.31 million for the three months ended June 30, 2020, compared to a net loss of $644,000 for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss of $10.65 million compared to a net loss of $1.79 million for the six months ended June 30, 2019. As of June 30, 2020, the Company had $32.46 million in total assets, $969,000 in total liabilities, and $31.49 million in total stockholders' equity. The Company continues to incur ongoing administrative and other expenses, including public company expenses, in excess of corresponding (non-financing related) revenue. While the Company continues to implement its business strategy, it intends to finance its activities through: * managing current cash, cash equivalents and marketable securities on hand from the Company's past debt and equity offerings; * seeking additional funds raised through the sale of additional securities in the future; * seeking additional liquidity through credit facilities or other debt arrangements; and * increasing revenue from its patent portfolios, license fees and new business ventures. The Company has funded its operations from proceeds from the sale of equity and debt securities, including pre-funded warrants. The Company will require significant additional capital to make the investments it needs to execute its longer-term business plan. The Company's ability to successfully raise sufficient funds through the sale of debt or equity securities when needed is subject to many risks and uncertainties and, even if it were successful, future equity issuances would result in dilution to its existing stockholders and future debt securities may contain covenants that limit the Company's operations or ability to enter into certain transactions. The Company said its current cash is sufficient to fund operations for at least the next 12 months; however, the Company will need to raise additional funding through strategic relationships, public or private equity or debt financings, grants or other arrangements to develop and seek regulatory approvals for the Company's existing and new product candidates. If such funding is not available, or not available on terms acceptable to the Company, the Company's current development plan and plans for expansion of its general and administrative infrastructure may be curtailed. A full-text copy of the Form 10-Q is available for free at: https://is.gd/nM7QN4 About Aikido Pharma Headquartered in New York, NY, Aikido Pharma Inc. fka Spherix Incorporated -- http://www.spherix.com-- was initially formed in 1967 and is currently a biotechnology company seeking to develop small-molecule anti-cancer therapeutics. The Company's activities generally include the acquisition and development of technology through internal or external research and development. In addition, the Company seeks to acquire existing rights to intellectual property through the acquisition of already issued patents and pending patent applications, both in the United States and abroad. The Company may alone, or in conjunction with others, develop products and processes associated with technology development. Recently, the Company has invested in and helped develop technology with Hoth Therapeutics, Inc., DatChat, Inc. and with its recent asset acquisition with CBM BioPharma, Inc. in December 2019. Spherix reported a net loss of $4.18 million for the year ended Dec. 31, 2019, compared to net income of $1.73 million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $11.28 million in total assets, $750,000 in total liabilities, and $10.53 million in total stockholders' equity. Marcum LLP, in New York, NY, the Company's auditor since 2013, issued a "going concern" qualification in its report dated Jan. 31, 2020, citing that Company has historically incurred losses from operations and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. AKORN INC: Disclosures Approved; Lenders Have Lone Bid ------------------------------------------------------ Law360 reports that bankrupt pharmaceutical company Akorn Inc. secured Delaware court approval on July 1, 2020, for its Chapter 11 disclosure, while also receiving a preview of coming dissents over its more than $1 billion case and sale ambitions. U.S. Bankruptcy Judge Karen B. Owens cleared both the disclosure statement and the company's voting solicitation and notice procedures after overruling an objection from labor group welfare and benefit funds accusing Akorn of mounting bad faith bankruptcy moves to avoid claims and scrutiny, including for billions in potential multidistrict litigation liability claims. Restructuring Support Agreement In contemplation of the Chapter 11 cases, on the Petition Date, the Company Parties entered into a Restructuring Support Agreement (the "Restructuring Support Agreement") with certain lenders (the "Consenting Term Lenders") holding more than 75% in principal amount of the outstanding term loans under the Term Loan Agreement. The Restructuring Support Agreement provides that the Consenting Term Lenders will support certain transactions (the "Transactions") in pursuit of the Sale and confirmation of a Chapter 11 Plan contemplated by the plan term sheet attached to and incorporated into the Restructuring Support Agreement (the "Plan") on the terms set forth in the Restructuring Support Agreement. The Restructuring Support Agreement contemplates, among other things: * that the Sale will be conducted pursuant to the bidding procedures attached to and incorporated into the Restructuring Support Agreement (as amended, modified, waived or supplemented, the "Bidding Procedures"), which Bidding Procedures were approved by the Bankruptcy Court on June 15, 2020; * that the Sale will be conducted as follows:◦in the event that the Buyer is the Successful Bidder, on the terms set forth in the Stalking Horse APA, pursuant to which the full amount of indebtedness under the Term Loan Agreement will be credit bid, or in the event that a Qualified Bidder other than the Stalking Horse Bidder is the Successful Bidder,on the terms of the purchase agreement for the Successful Bidder as approved by the Bankruptcy Court; and * commitments by the Consenting Term Lenders to provide the debtor-in-possession financing pursuant to the terms and conditions set forth in theDIP Credit Agreement. In accordance with the Restructuring Support Agreement, the Consenting Term Lenders agreed, among other things, to: (i) vote in favor of the Plan, including supporting all of the debtor and third-party releases, injunctions, discharge and exculpation provisions provided in the Plan; (ii) use commercially reasonable effort to support the Transactions and take all reasonable actions necessary to implement and consummate the Transactions in accordance with the terms, conditions, and applicable deadlines set forth in the Restructuring Support Agreement, the Plan and the Bidding Procedures, as applicable; (iii) direct the Term Loan Agent (or any designated subagent) to credit bid up to the full amount of indebtedness under the Term Loan Agreement and otherwise facilitate the Transactions contemplated by the Restructuring Support Agreement and the Stalking Horse APA; and (iv) negotiate in good faith the applicable Definitive Documents and use their commercially reasonable efforts to agree to the form and substance of such Definitive Documents consistent with the terms of the Restructuring Support Agreement. Stalking Horse APA The Company Parties entered into an asset purchase agreement (the "Stalking Horse APA"), dated as of May 20, 2020, with certain of the Company's existing lenders (collectively, the "Buyer"), pursuant to which the Buyer has agreed to purchase, subject to the terms and conditions contained therein,substantially all of the assets of the Company Parties (the "Sale"). Each of the Company Parties is a debtor in the Chapter 11 Cases. The Stalking Horse APA, subject to an auction to solicit higher or otherwise better bids, was approved by the Bankruptcy Court on June 15, 2020. The Bankruptcy Court also approved the Buyer as the "stalking horse" bidder. Under the terms of the Stalking Horse APA, the Buyer has agreed, absent any higher or otherwise better bid, to acquire substantially all of the assets of the Sellers for aggregate consideration comprising (i) the assumption of certain liabilities, (ii) the credit bid of 100% of the Lenders’ prepetition claims under the Term Loan Agreement, which amount shall be satisfied by discharging all of the Lenders' prepetition claims pursuant to section 363(k) of the Bankruptcy Code, and (iii) an amount in cash equal to the amount set forth in the Wind-Down Budget included as an exhibit to the Stalking Horse APA. Pursuant to the Stalking Horse APA, if the Company Parties receive any bids that are higher or otherwise better, the Company Parties will conduct an auction no later than eighty-two days after the Petition Date. As the stalking horse bidder, the Buyer's offer to purchase substantially all of the assets of the Sellers, set forth in the Stalking Horse APA, serves as the minimum or floor bid on which the Company Parties, their creditors, suppliers, vendors, and other bidders may rely. Other interested bidders were permitted to participate in the auction if they submitted qualifying offers that were higher or otherwise better than the stalking horse bid. Pursuant to the Bidding Procedures approved by the Bankruptcy Court, the bids for the Sale were due 5:00 p.m. (prevailing Eastern Time), on August 3, 2020. No qualified and actionable bids were received by the deadline. As a result, the auction was cancelled. The hearing to approve the Sale is scheduled to take place on Aug. 20, 2020. About Akorn Inc. Akorn, Inc. -- http://www.akorn.com/-- is a specialty pharmaceutical company that develops, manufactures, and markets generic and branded prescription pharmaceuticals, branded as well as private-label over-the-counter consumer health products, and animal health pharmaceuticals. Akorn is headquartered in Lake Forest, Illinois, and maintains a global manufacturing presence, with pharmaceutical manufacturing facilities located in Illinois, New Jersey, New York, Switzerland, and India. Akorn, Inc., based in Lake Forest, Illinois, filed a Chapter 11 petition (Bankr. D. Del. Lead Case No. 20-11177) on May 20, 2020. In the petition signed by Joseph Bonaccorsi, authorized signatory, the Debtor disclosed $1,032,275,000 in assets and $1,051,769,000 in liabilities. The Hon. John T. Dorsey oversees the case. The Debtor tapped KIRKLAND & ELLIS LLP, KIRKLAND & ELLIS INTERNATIONAL LLP as counsel; RICHARDS, LAYTON & FINGER, P.A., as local counsel; ALIXPARTNERS, LLP as restructuring advisor; PJT PARTNERS LP as investment banker; GRANT THORNTON LLP as tax advisor; and KURTZMAN CARSON CONSULTANTS LLC as claims and noticing agent. AKORN INC: Unsecured Creditors to Receive Nothing in Plan --------------------------------------------------------- Akorn, Inc. and its debtor affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a Disclosure Statement for Joint Chapter 11 Plan dated June 30, 2020. Following the terminated merger and related shareholder litigation, a group of Term Loan Lenders (the "Ad Hoc Group") organized and asserted certain purported defaults under the Debtors' Term Loan Credit Agreement. After significant arm's-length negotiations with the Ad Hoc Group, the Debtors ultimately entered into the Standstill Agreement with certain of the Term Loan Lenders, pursuant to which the Term Loan Lenders party thereto agreed, among other things, not to declare an event of default under the Term Loan Credit Agreement for the duration of an agreed-upon standstill period. The standstill period expired prior to commencement of the Chapter 11 Cases. After pivoting to the new timeline, the Debtors, their advisors, and the Ad Hoc Group and its advisors worked tirelessly to negotiate the definitive documentation for a value-maximizing credit bid from the Term Loan Lenders that enticed further bidding as markets began to stabilize in the wake of the COVID-19 crisis. The stalking horse bid set the floor for a further market test and a potential sale to a third-party Purchaser, only if such Purchaser submits an actionable bid that is higher or otherwise better than the stalking horse bid. The Term Lenders' support for the sale process is also memorialized in the Restructuring Support Agreement executed by holders of approximately 80% in principal amount of the term loans. To execute the value-maximizing restructuring contemplated by the Restructuring Support Agreement, certain of the Restructuring Support Agreement parties also have agreed to provide $30 million of debtor-in-possession (“DIP”) financing to fund the chapter 11 cases and sale process. The Plan is supported by the Debtors and certain parties in interest that have executed the Restructuring Support Agreement, including Holders of approximately 80 percent in principal amount of Term Loan Claims. As for Class 4 General Unsecured Claims, each Holder of an Allowed General Unsecured Claim that is not assumed by the Purchaser shall receive its Pro Rata share of the Distributable Proceeds, if any, pursuant to the Waterfall Recovery. At this time, it is expected that Class 4's share of the Distributable Proceeds will be $0. For the avoidance of doubt, all General Unsecured Claims that are assumed by the Purchaser pursuant to the Sale Transaction Documentation shall be satisfied by the Purchaser in full in cash following the Effective Date in the ordinary course of business; provided that any Allowed General Unsecured Claim that has been expressly assumed by the Purchaser under the Sale Transaction shall not be an obligation of the Debtors as of or after the Effective Date. Holders of Class 8 Akorn Interests will receive its Pro Rata share of the Distributable Proceeds, if any, pursuant to the Waterfall Recovery. At this time, it is expected that Class 8's share of the Distributable Proceeds will be $0. The following sources shall be used to fund the distributions to Holders of Allowed Claims against the Debtors in accordance with the treatment of such Claims and subject to the terms provided in the Plan: Cash on hand, borrowings under the DIP Facility, the Distributable Proceeds, if any, the Wind-Down Amount, the Debtors' rights under the Sale Transaction Documentation, payments made directly by the Purchaser on account of any Assumed Liabilities under the Sale Transaction Documentation, payments of Cure Costs made by the Purchaser, the return of any utility deposits as set forth in the Utilities Orders, and all Causes of Action not previously settled, released, or exculpated under the Plan, if any, shall be used to fund the distributions to Holders of Allowed Claims against the Debtors in accordance with the treatment of such Claims and subject to the terms provided in the Plan. Unless otherwise agreed in writing by the Debtors and the Purchaser, distributions required by the Plan on account of Allowed Claims that are Assumed Liabilities shall be the sole responsibility of the Purchaser to the extent such Claim is Allowed against the Debtors. The Debtors do not anticipate any distribution to Class 4, Class 7, or Class 8 at this time. If the Stalking Horse Bid is the Successful Bid, the Wind-Down Amount (i.e., $35.015 million) represents the only anticipated Cash proceeds of the Sale Transaction. As set forth on the Wind-Down budget, the Debtors anticipate that, after giving effect to the Wind-Down, none of the Wind-Down Amount will be available for distribution to Holders of Class 4 General Unsecured Claims, Class 7 Section 510(b) Claims, and Class 8 Akorn Interests. To the extent there is a Cash overbid of the Stalking Horse Bid that is selected as the Successful Bid, there may be incremental Cash that is available for distribution to Holders of Class 4 General Unsecured Claims, Class 7 Section 510(b) Claims, and Class 8 Akorn Interests in accordance with their legal priorities. A full-text copy of the Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/yb6joh7c from PacerMonitor at no charge. Co-Counsel for the Debtors: Patrick J. Nash, Jr., P.C. Gregory F. Pesce Christopher M. Hayes KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Street Chicago, Illinois 60654 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 E-mail: patrick.nash @kirkland.com gregory.pesce@kirkland.com christopher.hayes@kirkland.com - and - Nicole L. Greenblatt, P.C. KIRKLAND & ELLIS LLP KIRKLAND ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 E-mail: nicole.greenblatt@kirkland.com - and - Paul N. Heath Amanda R. Steele Zachary I. Shapiro Brett M. Haywood RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 N. King Street Wilmington, Delaware 19801 Telephone: (302) 651-7700 Facsimile: (302) 651-7701 E-mail: heath@rlf.com steele@rlf.com shapiro@rlf.com haywood@rlf.com About Akorn, Inc. Akorn, Inc. (Nasdaq: AKRX) -- http://www.akorn.com/-- is a specialty pharmaceutical company that develops, manufactures, and markets generic and branded prescription pharmaceuticals, branded as well as private-label over-the-counter consumer health products, and animal health pharmaceuticals. Akorn is headquartered in Lake Forest, Illinois, and maintains a global manufacturing presence, with pharmaceutical manufacturing facilities located in Illinois, New Jersey, New York, Switzerland, and India. Akorn, Inc., and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-11178) on May 20, 2020. As of March 31, 2020, the Debtors disclosed total assets of $1,032,275,000 and total liabilities of $1,051,769,000. The cases are assigned to Judge John T. Dorsey. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP as their general bankruptcy counsel. Richards, Layton & Finger, P.A., is the Debtors' local counsel. AlixPartners, LLP, serves as the Debtors' restructuring advisor, and PJT Partners LP is the financial advisor and investment banker. Kurtzman Carson Consultants, LLC, is the notice and claims agent. ALANI PROPERTY: Taps Scott B. Riddle as Legal Counsel ----------------------------------------------------- Alani Property Source Co. received approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire the Law Office of Scott B. Riddle, LLC as its legal counsel. The firm will provide these services in connection with Debtor's Chapter 11 case: (a) advise Debtor with respect to its rights, powers, duties and obligations in the administration of the case, the operation of its business, and the management of its property; (b) prepare court papers and conduct examinations; (c) advise Debtor regarding applications, motions or complaints for reclamation, adequate protection, sequestration, relief from stay, appointment of a trustee or examiner, and all other similar matters; (d) develop the relationship of the status of Debtor to the claims of its creditors; and (e) assist Debtor in the formulation and presentation of a plan of reorganization. The firm's services will be provided mainly by Scott Riddle, Esq., who will be paid at the rate of $365 per hour. Debtor paid the firm an initial retainer in the sum of $7,500. The Law Office of Scott B. Riddle is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Scott B. Riddle, Esq. Law Office of Scott B. Riddle, LLC Suite 1800 3340 Peachtree Road NE Atlanta, GA 30326 Telephone: (404) 815-0164 Email: scott@scottriddlelaw.com About Alani Property Source Co. Alani Property Source Co., Inc., a Georgia-based commercial real estate management company, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 20-66885) on June 2, 2020. Judge Lisa Ritchey Craig oversees the case. Debtor has tapped the Law Office of Scott B. Riddle, LLC as its legal counsel. ALASKA AIR: Egan-Jones Lowers Senior Unsecured Ratings to B+ ------------------------------------------------------------ Egan-Jones Ratings Company, on July 29, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Alaska Air Group to B+ from BB-. Headquartered in SeaTac, Washington, Alaska Air Group, Inc. is an airline holding company. ALLIANCE DATA: Egan-Jones Cuts Foreign Currency Unsec. Rating to B ------------------------------------------------------------------ Egan-Jones Ratings Company, on July 27, 2020, downgraded the foreign currency senior unsecured rating on debt issued by Alliance Data Systems Corporation to B from B+. EJR also downgraded the ratings on commercial paper issued by the Company to C from B. Headquartered in Columbus, Ohio, Alliance Data Systems Corporation provides data-driven and transaction-based marketing and customer loyalty solutions. AQUABOUNTY TECHNOLOGIES: Incurs $3.52M Net Loss in 2nd Quarter -------------------------------------------------------------- AquaBounty Technologies, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss of $3.52 million on $2,950 of product revenues for the three months ended June 30, 2020, compared to a net loss of $4.03 million on $42,486 of product revenues for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss of $6.63 million on $9,703 of product revenues compared to a net loss of $6.79 million on $140,371 of product revenues for the same period in 2019. As of June 30, 2020, the Company had $38.49 million in total assets, $6.71 million in total liabilities, and $31.78 million in total stockholders' equity. Sylvia Wulf, chief executive officer of AquaBounty, stated: "The highlight of the second quarter was the announcement of our first harvest of conventional Atlantic salmon at our Indiana farm, an important milestone as we refine harvest systems and processes ahead of our expected initial harvest of AquAdvantage salmon in the fourth quarter this year in Indiana, followed by the anticipated first harvest of AquAdvantage salmon at our Canada-based, Prince Edward Island Farm in the first quarter of 2021. "The first harvest of conventional salmon represents the start of the commercialization phase for AquAdvantage salmon (AAS), a milestone over 30 years in the making. This will be a breakthrough moment not only for AquaBounty, but for the industry -- as it will be the first sale of a genetically engineered animal protein in the U.S. We completed proprietary consumer research in Q4 of 2019, and the insights have been used to build out our communications program that we began executing in conjunction with our first harvest and anticipate will support the commercial launch of AAS later this year. Furthermore, we continue to receive inbound interest from potential offtake partners, who see the inherent value in AAS, from both a sustainability and economic perspective, and we anticipate finalizing commercial agreements with key potential customers and distributors in advance of the first AAS harvest. "After engaging Site Selection Group and CRB USA, we have made significant progress on finalizing the potential site and design for our planned 10,000 metric ton farm and will soon select the farm's RAS technology provider. We are on schedule to select the farm's location this quarter and expect to begin construction in early 2021. We believe we are now positioned to seize emerging growth opportunities within the space." "While we plan to construct our own facilities at first to validate our business model to the world, our long-term, capital-light goal is to make AAS the clear choice for existing land-based RAS farm operators who wish to remain competitive in the marketplace. I eagerly look forward to what the future holds for AquaBounty," concluded Wulf. Financial Summary through June 30, 2020 * Cash and cash equivalents were $10.0 million as of June 30, 2020 ($2.8 million at Dec. 31, 2019). In February, the Company completed a public offering of common shares that provided $14.5 million in net proceeds. * Cash used in operations for the six months ended June 30, 2020, was $7.0 million, compared with $5.2 million in the same period of the prior year. Growth of fish inventory biomass was the driver. * Cash used for capital projects for the six months ended June 30, 2020, was $1.6 million compared with $0.9 million in the same period of the prior year. The funds were primarily used for equipment upgrades at the Indiana farm. A full-text copy of the Form 10-Q is available for free at: https://is.gd/Px30ak About AcquaBounty Headquartered in Maynard, Massachusetts, AquaBounty Technologies, Inc., is a publicly traded aquaculture company focused on improving productivity and sustainability in commercial aquaculture. The Company's objective is the application of biotechnology to ensure the availability of seafood to meet global consumer demand-addressing critical production constraints in the most popular farmed species, including salmon, trout, and tilapia. AquaBounty recorded a net loss of $13.23 million for the year ended Dec. 31, 2019, compared to a net loss of $10.38 million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $30.23 million in total assets, $6.47 million in total liabilities, and $23.76 million in total stockholders' equity. The Company has incurred losses from operations since its inception in 1991, and, as of Dec. 31, 2019, the Company had an accumulated deficit of $132 million. ARCHDIOCESE OF NEW ORLEANS: Misses Bond Payment After Filing ------------------------------------------------------------ Amanda Albright of Bloomberg News reports that the Roman Catholic Church of the Archdiocese of New Orleans missed a July 1, 2020 debt payment after filing for bankruptcy protection, according to a June 26 regulatory filing by TMI Trust Company, the trustee for bondholders. The Archdiocese, which sold muni bonds in 2017, filed for bankruptcy in May 2020. The trustee does not have funds on deposit to make debt service payments, so the July payment won't be made The Archdiocese filed for bankruptcy due to "growing financial strain caused by litigation stemming from decades-old incidents of clergy abuse as well as ongoing budget challenges," according to a May statement. About Archdiocese of New Orleans The Roman Catholic Church of the Archdiocese of New Orleans is a non-profit religious corporation incorporated under the laws of the State of Louisiana. For more information, visit https://www.nolacatholic.org/ Created as a diocese in 1793, and established as an archdiocese in 1850, the Archdiocese of New Orleans has educated hundreds of thousands in its schools, provided religious services to its churches and provided charitable assistance to individuals in need, including those affected by hurricanes, floods, natural disasters, war, civil unrest, plagues, epidemics, and illness. Currently, the archdiocese's geographic footprint occupies over 4,200 square Miles in southeast Louisiana and includes eight civil parishes -- Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Tammany, and Washington. The Roman Catholic Church for the Archdiocese of New Orleans sought Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1, 2020. The archdiocese was estimated to have $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Judge Meredith S. Grabill oversees the case. The archdiocese is represented by Jones Walker LLP. Donlin, Recano & Company, Inc. is the claims agent. The Office of the U.S. Trustee appointed a committee of unsecured creditors on May 20, 2020. The committee is represented by Pachulski Stang Ziehl & Jones, LLP and Locke Lord, LLP. ARMED BEAVERS: Taps Jorgensen Brownell as Legal Counsel ------------------------------------------------------- Armed Beavers, LLC received approval from the U.S. Bankruptcy Court for the District of Colorado to hire Jorgensen, Brownell & Pepin, P.C. as its legal counsel. The firm will provide these services: a) advise Debtor regarding the administration of its Chapter 11 case; b) represent Debtor before the bankruptcy court and advise Debtor on all pending litigations, hearings, motions and court decisions; c) review and analyze all applications, orders and motions filed with the bankruptcy court by third parties; d) attend meetings conducted and represent Debtor at examinations; e) communicate with creditors and other parties; f) prepare court documents; g) confer with all other professionals retained by Debtor and other parties; h) assist Debtor in its negotiations with creditors or third parties concerning the terms of any proposed plan of reorganization; and i) prepare and prosecute a plan of reorganization and disclosure statement. The firm's services will be provided mainly by Gerald Jorgensen, Esq., who will charge $400 per hour. Mr. Jorgensen disclosed in a court filing that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Gerald L. Jorgensen, Esq. Jorgensen, Brownell & Pepin P.C. 5285 McWhinney Blvd., Suite 100 Loveland, CO 80538 Telephone: (970) 304-0075 Facsimile: (970) 351-8421 Email: gerald@jbplegal.com About Armed Beavers Armed Beavers, LLC is a Loveland, Colo.-based company that provides sporting and recreational goods and supplies. Armed Beavers sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-14963) on July 22, 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. Jorgensen, Brownell & Pepin P.C. is Debtor's legal counsel. ATLANTIC 111ST: Unsecureds to Receive $5K Per Month over 2 Years ---------------------------------------------------------------- Atlantic 111st LLC filed the Fourth Amended Disclosure Statement connection with its Fourth Amended Chapter 11 Plan dated June 30, 2020. There is only one Creditor in this Case that filed a Claim before the Claims Bar Date fixed by Order of the Bankruptcy Court. This Claim is an Allowed General Unsecured Claim in the sum of $1,029,357 now held by Atlantic Avenue Commons, as transferee of a Claim filed by Harbans Singh. The Debtor has advised Atlantic Avenue Commons of its proposed treatment under the Plan, and Atlantic Avenue Commons has indicated that it consents to this proposed treatment, and will cast a ballot in favor of the Debtor's Plan. The Debtor has obtained a Conditional Loan Commitment from Centra Capital Investments ("CCI") to provide the Debtor with financing up to the amount of $6,000,000 under which CCI has committed to make a loan offer to the Debtor for a loan in an amount equal to 50% of what CCI determines to be the "as is" quick sale value not to exceed the full amount of the Financing, of the Debtor's real property located at 110-19 Atlantic Avenue, Richmond Hill, NY 11418, secured by the following collateral: (i) a first mortgage on the 110-19 Property, (ii) a second mortgage on real property located at 131-09 Hillside Avenue, Richmond Hill, NY 11418 which is owned by BMSL Management LLC, an LLC owned 100% by the Debtor’s Principal, Jarnail Singh, and (iii) a first mortgage on real property located at 200 Elmont Road, Elmont, NY 11003 which is owned by 200 Elmont Rd Corporation, a company 100% owned by Satya Kaur, the Debtor's Principal's wife. To the extent that the final loan offer by CCI is less than $6,000,000, due to the present COVID-19 crisis which has depressed market values of real property, then the Debtor will seek to make up such shortfall by seeking Contributions by the Debtor's Principal (defined in the Plan as "contributions to the Debtor by the Debtor's Principal from contributions and/or loans to the Debtor's Principal by other businesses owned by the Debtor’s Principal, insiders of the Debtor's Principal and/or other businesses owned or operated by insiders of the Debtor's Principal", so that the Debtor has $6,000,000 on hand as of Confirmation of the Plan. The Plan provides for MLF3, as the holder of Class 1 and Class 2 Claims designated by the Plan, to be paid 100% on account of its Claim(s) which are allowed by (a) Final Order(s) or a written agreement between the parties fixing the Allowed amount of MLF3's Disputed Claims which is "so ordered" by the Bankruptcy Court. The Plan also provides for the holder of the Class 3 Claim, Atlantic Avenue Commons, to be paid 100% on account of its Allowed General Unsecured Claim. Administration Expenses, which the Debtor estimates shall be limited to Professional Fees and US Trustee fees, will be paid the full Allowed amount of their Claims under the Plan. The Debtor's Principal, Jarnail Singh, will retain his Ownership Interest in the Debtor by virtue of the new value that he is contributing and/or causing to be contributed to the Debtor to enable it to make the payments required under the Plan to holders of Claims includable in Classes 1, 2 and 3. Class 3 consists of the Allowed General Unsecured Claim of Atlantic Avenue Commons. The Plan provides this Claim to be paid in full as follows: commencing on or before the first date of the first month which immediately succeeds the Effective Date of the Plan, and continuing thereafter on or before the first day of each of the next succeeding 24 consecutive, the holder of this Claim will be paid $5,000 per month. Thereafter, on or before the first date of the 25th month after the Effective Date, the holder of this Allowed Claim will be paid the full remaining balance of its Allowed Claim through (a) further refinancing(s) of the Debtor's Property by the Debtor, and/or the refinancing of other parcels of real property owned by or the Debtor's Principal, Jarnail Singh, or insiders of the Debtor's Principal and/or businesses owned by the Debtor’s Principal or insiders of the Debtor’s Principal, unless otherwise agreed to by and between the holder of this Claim and the Debtor. A full-text copy of the Fourth Amended Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/yc5gdo5l from PacerMonitor at no charge. Attorneys for the Debtor: Pryor & Mandelup, L.L. P. Neil Ackerman, Esq. 675 Old Country Road Westbury, NY 11590 Tel: (516) 425-5365 Office Tel: (516) 997-0999 E-mail: na@pryormandelup.com About Atlantic 111st LLC Atlantic 111st LLC filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 19-42317) on April 18, 2019, estimating under $1 million in both assets and liabilities. The Debtor hired Weinberg Gross & Pergament LLP, replacing Dahiya Law Offices LLC, as bankruptcy counsel. AUC TRUCKING: Gets Approval to Hire Pamela Magness as Accountant ---------------------------------------------------------------- Auc Trucking, Inc. received approval from the U.S. Bankruptcy Court for the Eastern District of Arkansas to employ Pamela Magness CPA, PA, as its accountant. The accountant will charge $85 per hour for write up services and $100 per hour for tax preparation. Pamela Magness, a certified public accountant, assured the court that her firm is a disinterested person within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Pamela Magness CPA Pamela Magness CPA, PA 103 S Houston Ave. Russellville, AR 72801 Phone: +1 479-858-6185 About Auc Trucking Auc Trucking, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Ark. Case No. 20-12714) on June 24, 2020, listing under $1 million in both assets and liabilities. Judge Phyllis M. Jones oversees the case. Debtor has tapped Havner Law Firm PA as its legal counsel, and Pamela Magness CPA, PA as its accountant. B-LINE CARRIERS: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: B-Line Carriers, Inc. 329 W. Jefferson St. Brooksville, FL 34601 Business Description: B-Line Carriers, Inc. is a full service petroleum transportation company. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Middle District of Florida Case No.: 20-06034 Debtor's Counsel: Amy Denton Harris, Esq. STICHTER, RIEDEL, BLAIN & POSTLER, P.A. 110 E. Madison St., Suite 200 Tampa, FL 33602 Tel: 813-229-0144 Email: aharris@srbp.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jason L. Baldree, president. A copy of the petition is available for free at PacerMonitor.com at: https://is.gd/Do5zJt BAHATI LLC: Hires Burch & Cracchiolo as Bankruptcy Counsel ---------------------------------------------------------- Bahati, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Arizona to employ Burch & Cracchiolo, P.A., as bankruptcy counsel to the Debtor. Bahati LLC requires Burch & Cracchiolo to: a. take necessary or appropriate actions to protect and preserve the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; b. provide legal advice with respect to the Debtor's powers and duties as debtor-in-possession in the continued operation of their business and management of the Debtor's property; c. prepare on behalf of the Debtor any necessary applications, motions, answers, orders, reports, and other legal papers; d. appear in Court on behalf of the Debtor; e. prepare and pursue confirmation of a plan and approval of a disclosure statement, and such further actions as may be required in connection with the administration of the Debtor's estate; f. act as general bankruptcy counsel for the Debtor and perform all other necessary or appropriate legal services in connection with this chapter 11 case; and g. act as general litigation counsel for Debtor in connection with any matters "related to" or "arising under" this bankruptcy case or removed to the bankruptcy court or otherwise pending as of the filing of the Bankruptcy Petition. Burch & Cracchiolo will be paid at these hourly rates: Alan A. Meda $500 Paralegals $150 Burch & Cracchiolo received an initial $5,000 retainer from the Debtor. Additionally, the Debtor will be making additional $5,000 retainer payments on September 1, 2020 and October 1, 2020 for a total retainer of $15,000. Burch & Cracchiolo will also be reimbursed for reasonable out-of-pocket expenses incurred. Alan A. Meda, a partner of Burch & Cracchiolo, 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. Burch & Cracchiolo can be reached at: Alan A. Meda, Esq. BURCH & CRACCHIOLO, P.A. 1850 N. Central Ave., Suite 1700 Phoenix, AZ 85004 Tel: (602) 274-7611 E-mail: ameda@bcattorneys.com About Bahati LLC Bahati, LLC, filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No. 20-08435) on July 21, 2020, disclosing under $1 million in both assets and liabilities. The Debtor hired Burch & Cracchiolo, P.A., as counsel. BEN CLYMER'S: Trustee Seeks to Hire Levene Neale as Legal Counsel ----------------------------------------------------------------- Todd Frealy, the Chapter 11 trustee for Ben Clymer's The Body Shop Perris, Inc., seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Levene, Neale, Bender, Yoo & Brill L.L.P. as his legal counsel. The firm will provide these services in connection with Debtor's Chapter 11 case: a. advise the bankruptcy trustee regarding the requirements of the bankruptcy court, the Bankruptcy Code, the Bankruptcy Rules and the Office of the U.S. Trustee; b. advise the trustee regarding the rights and remedies of Debtor's bankruptcy estate and the rights, claims and interests of its creditors; c. advise the trustee regarding the resolution of claims by or against the estate; d. represent the trustee in court proceedings or hearings unless he is represented by special counsel; e. conduct examinations of witnesses, claimants or adverse parties; f. prepare court papers; g. evaluate executory contracts and unexpired leases and, where appropriate, advise the trustee whether to assume or reject such executory contracts and unexpired leases; and h. assist the trustee in the negotiation, formulation, preparation and confirmation of a plan of reorganization and the preparation and approval of a disclosure statement. The hourly rates charged by the firm's attorneys range from $495 to $635 per hour. Paraprofessionals will be paid at the rate of $250 per hour. Monica Kim, Esq., a partner at Levene Neale, disclosed in a court filing that her firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Levene Neale can be reached through: Monica Y. Kim, Esq. Levene, Neale, Bender, Yoo & Brill L.L.P. 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Telephone: (310) 229-1234 Facsimile: (310) 229-1244 Email: myk@lnbyb.com About Ben Clymer's The Body Shop Perris Ben Clymer's The Body Shop Perris Inc. is an auto body repair and painting company offering, among other services, unibody and frame repair, glass repair, dent removal, paintless dent removal, paint matching on site, chip and scratch repair, and buffing and polishing. Ben Clymer's The Body Shop Perris sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-14798) on July 15, 2020. At the time of the filing, Debtor disclosed total assets of $2,838,204 and total liabilities of $6,874,527. Debtor is represented by the Law Offices of Robert M. Yaspan. BETTER HOUSING: Sept. 30 Bid Deadline Set for Properties -------------------------------------------------------- Hilco Real Estate, LLC, announced September 30, 2020 as the bid deadline for a court-supervised auction of 45 multifamily properties located on Chicago's South Side, formally known as Better Housing Foundation Portfolio B. The portfolio features 45 multifamily properties, totaling 535 units, organized into six separate neighborhood pools available for purchase. The portfolio is being sold subject to a minimum stalking horse overbid of $8,440,000, which equates to $15,775 per unit. Bids will be considered on the entire portfolio, individual pools of properties, or in pool combinations. The six separate pools available in this sale are organized into the following groups: Pool A: six buildings totaling 57 units located in the Bronzeville and Grand Boulevard neighborhoods; Pool B: ten buildings totaling 96 units located in the Washington Park neighborhood; Pool C: eight buildings totaling 54 units located in the Woodlawn neighborhood; Pool D: eight buildings totaling 181 units located in the Englewood neighborhood; Pool E: eight buildings totaling 99 units located in the Greater Grand Crossing and Chatham neighborhoods; and Pool F: six buildings totaling 48 units located in the South Shore neighborhood. The sale represents an opportunity for experienced owners/operators to make capital investments in order to bring the units up to City of Chicago and Department of Housing and Urban Development (HUD) standards, thereby unlocking the value of these properties. With low average occupancy levels throughout the portfolio, there is a significant amount of upside potential through physical updates, occupancy stabilization and leasing efforts. Jeff Azuse, senior vice president at Hilco Real Estate, stated, "This is a fantastic opportunity to acquire a substantial number of units and add significant value through renovation and lease-up. With the renovations, the units can be approved for various governmental assisted rental programs." He continued, "We're excited to help turn a situation that didn't meet original expectations into one that results in revitalized properties and positive change within these Chicago communities." Azuse continued, "There is a dire need for quality, affordable housing throughout the country, particularly in these specific areas of Chicago's South Side. Through this sale, an experienced buyer will work hand in hand with the city to fulfill this need." Bidders will have the chance to fully inspect properties during predetermined tour dates coordinated by Hilco Real Estate. Bids must be delivered per the court approved bid procedures (available for download in our virtual data room) on or before 5:00 p.m. (CDT) on the day of the deadline to be considered. For more information regarding the sale process, please contact Chet Evans at (847) 418-2702 or via email to cevans@hilcoglobal.com. For further information on the properties, an explanation of the sale process, bid procedures or to obtain access to property due diligence documents, please visit HilcoRealEstate.com/Chicago-multifamily or call (855) 755-2300. About Hilco Real Estate Hilco Real Estate ("HRE"), a Hilco Global company (HilcoGlobal.com), is headquartered in Northbrook, Illinois (USA). HRE is a national provider of strategic real estate disposition services. Acting as an agent or principal, HRE uses its experience to advise and execute strategies to assist clients in deriving the maximum value from their real estate assets. By leveraging multi-faceted sales strategies and techniques, aggressive repositioning and restructuring experience, a vast and motivated network of buyers and sellers, and substantial access to capital, HRE exceeds expectations even in the most complex transactions. BLACK BOTTLE BREWERY: Files Chapter 11 Bankruptcy Protection ------------------------------------------------------------ Lily O'Neill, writing for Business Den, reports that Fort Collins-based brewery Black Bottle Brewery has filed for Chapter 11 bankruptcy. The brewery at 1611 S. College Ave., Suite 1609, which operates a restaurant and also distributes its beers, said in its Tuesday filing it owes $1.6 million. The company said it has assets totaling $291,577. Companies use Chapter 11 bankruptcy protection to reorganize and help keep the business alive, paying creditors over time. Owner Sean Nook said the filing was a result of dormant cash flow during the pandemic. The brewery’s restaurant did takeout when the state prohibited dine-in service. It reopened for dine-in service three weeks ago at 50 percent capacity. Black Bottle, which Nook opened in 2012, typically makes around $500,000 during the period it had to scale back operations, he added. "We had a heavy debt load, and we couldn’t and can't afford to close for three months," Nook said. "I know other businesses file just to protect themselves, but this is just a tool to save our business." "We already had tight margins before closing. January and February are always our two slowest months of the year, and March usually gets better, but this month didn't, or April, or May. Now we're in June and we could be busy, but we're not allowed to, but I understand why." Nook said he is working with a lender and the business will continue to operate despite the filing. "If everyone gets shut down again with a second wave, I can't speak for that, but if things stay the same, and we keep slowly opening, we'll be just fine," Nook said. "Nothing should change." Black Bottle lists Great Western Bank as its largest creditor, owed $585,778. It also owes $130,000 to Bank of Colorado for a PPP small business loan, according to the filing. Attorney Gregory Bell with Fort Collins-based Bell, Gould, Linder & Scott is representing the entity in bankruptcy proceedings. About Black Bottle Brewery Black Bottle Brewery is a privately held company in the beer making and restaurant business. It is based in Fort Collins, Colo. Black Bottle Brewery filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-14472) on June 30, 2020. In the petition signed by its manager Sean Nook, the Debtor disclosed $291,577 in assets and $1,611,278 in liabilities. Judge Kimberley H. Tyson oversees the case. Gregory S. Bell, Esq., at Bell Gould Linder & Scott, P.C., is the Debtor's legal counsel. BRIDGEWATER HOSPITALITY: Unsecureds to Recover 2% Over 3 Years -------------------------------------------------------------- Bridgewater Hospitality, LLC filed with the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, a Disclosure Statement for Plan of Reorganization dated June 30, 2020. The Plan will be funded by the Debtor through the profits the Debtor will earn through the continuation of the Debtor’s hotel business and contributions from the Debtor’s owners. Class 9 shall consist of Allowed Unsecured Claims. To the extent Class 9 Claims are Allowed, they shall be paid a total of 2 percent of the Allowed Amount of each such Claim, payable in equal monthly installments without interest for 36 months, beginning on the first day of the first month following the Effective Date and continuing on the first day of each month thereafter. This class is Impaired and any non-Insider holder of a Claim in this class is entitled to vote to accept or reject the Plan. Insiders are entitled to vote to accept or reject the plan but their claims will not be counted for or against Confirmation. Class 10 - Equity Interests will be retained. Provided, however, if Class 8 General Unsecured Claims vote against the Plan then: in the interest of ensuring the Plan provides the greatest benefit to the Debtor's creditors and equity interest holders, Debtor shall cancel all existing equity interest in Debtor, and shall issue new equity interests and auction them off at the Confirmation Hearing. All interested parties shall have the opportunity to purchase the Reorganized Debtor's interests at the auction. The Reorganized Debtor's equity interest shall be sold to the bidder submitting the highest non-contingent cash offer for the Debtor's equity interest. The funds from such auction sale shall be deposited into the account of the Debtor’s Counsel and used to fund the Plan including the payment of administrative claims. A full-text copy of the Disclosure statement dated June 30, 2020, is available at https://tinyurl.com/y85797gc from PacerMonitor at no charge. The Debtor is represented by: Joyce W. Lindauer Paul B. Geilich Guy H. Holman Joyce W. Lindauer Attorney, PLLC 1412 Main Street, Suite 500 Dallas, Texas 75202 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 Jonathan A. Gitlin The Patel Law Group, PLLC 1125 Executive Circle, Suite 200 Irving, Texas 75038 Telephone: (972) 650-6848 Facsimile: (972) 650-6167 About Bridgewater Hospitality Bridgewater Hospitality, LLC, is a privately held company in the traveller accommodation industry. Bridgewater Hospitality, LLC, filed its voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 20-31546) on March 2, 2020. The petition was signed by Prashant Patel, manager and general partner. At the time of filing, the Debtor was estimated to have $1 million to $10 million in both assets and liabilities. Joyce Lindauer, Esq. at JOYCE W. LINDAUER ATTORNEY, PLLC, is the Debtor's counsel. BROOKFIELD PROPERTY: Gets Waiver of Covenants on Credit Facility ---------------------------------------------------------------- Brookfield Property REIT Inc. on July 30 announced the waiver of covenants on a retail credit facility. The increased covenant flexibility enables BPYU time for its business to recover from the current economic environment. Under the terms of the amendment, the maximum total indebtedness to value ratio financial maintenance covenant has been eliminated permanently. In addition, the minimum fixed charge coverage ratio is being reduced from its current level. Nothing in the amendment will prevent BPYU from operating its business as planned, including servicing its indebtedness and maintaining payment of dividends to shareholders looking forward. The full 8-K can be found at https://bpy.brookfield.com/bpyu/reports-and-filings/regulatory-filings. About Brookfield Property REIT Brookfield Property REIT Inc. (NASDAQ: BPYU) is a subsidiary of Brookfield Property Partners L.P., (NASDAQ: BPY; TSX: BPY.UN) one of the world’s largest commercial real estate companies, with approximately $87 billion in total assets. Brookfield Property REIT Inc. was created as a public security that is intended to offer economic equivalence to an investment in Brookfield Property Partners in the form of a U.S. REIT stock. Brookfield Property Partners are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, logistics, hospitality, self-storage, student housing and manufactured housing assets. CAMERON TRANSPORT: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Cameron Transport Corp. d/b/a Cameron Transport, Carpet Cleaning and Auto Detail Corp 2821 Pine Avenue Niagara Falls, NY 14301 Business Description: Cameron Transport Corp. is a transporation company based in Niagara Falls, New York. The company previously sought bankruptcy protection on March 17, 2020 (Bankr. W.D.N.Y. Case No. 20-10454). Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Western District of New York Case No.: 20-11032 Judge: Hon. Carl L. Bucki Debtor's Counsel: Frederick J. Gawronski, Esq. COLLIGAN LAW, LLP 12 Fountain Plaza Suite 600 Buffalo, NY 14202-3613 Tel: 716-885-1150 E-mail: fgawronski@colliganlaw.com Total Assets: $1,582,525 Total Liabilities: $2,499,234 The petition was signed by Faisel Haruna, president. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://is.gd/xu15gB CARVANA CO: Incurs $40.8 Million Net Loss in Second Quarter ----------------------------------------------------------- Carvana Co. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss attributable to the company of $40.83 million on $1.12 billion of net sales and operating revenues for the three months ended June 30, 2020, compared to a net loss attributable to the company of $20.32 million on $986.22 million of net sales and operating revenues for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss attributable to the company of $100.72 million on $2.21 billion of net sales and operating revenues compared to a net loss attributable to the company of $43.44 million on $1.74 billion of net sales and operating revenues for the same period in 2019. As of June 30, 2020, the Company had $2.47 billion in total assets, $1.50 billion in total liabilities, and $973.08 million in total stockholders' equity. "Our team has done an exceptional job managing through the first half of 2020. We have put people first and implemented policies that keep our team and our customers safe while still delivering the incredible customer experiences we are known for," said Ernie Garcia, founder and CEO of Carvana. "We've been leading the market with The New Way to Buy a Car for the last 7 years and now with even more customers moving to online buying, we are seeing more demand than ever before." The Company's primary sources of operating cash flows result from the sales of used retail vehicles, wholesale vehicles, loans it originates, and ancillary products. The Company's primary uses of cash from operating activities are purchases of inventory, cash used to acquire customers, and personnel-related expenses. For the six months ended June 30, 2020, net cash used in operating activities was $175.4 million, a decrease of $119.4 million compared to net cash used in operating activities of $294.8 million for the six months ended June 30, 2019. The decrease in the Company's net cash used in operating activities was primarily due to decreased cash used to purchase vehicle inventory. This was partially offset by increased net loss as a result of increased selling, general and administrative expenses. The Company's primary use of cash for investing activities is purchases of property and equipment to expand our operations. Cash used in investing activities was $167.2 million and $87.0 million during the six months ended June 30, 2020 and 2019, respectively, an increase of $80.2 million. The increase primarily relates to the increase in purchases of property and equipment, specifically related to the construction of new IRCs and vending machines. Constructing new IRCs and vending machines allows us to recondition more vehicles and reach additional customers. To finance these investments we have entered into various financing transactions, such as sale-leasebacks. Cash flows from financing activities primarily relate to the Company'sr short and long-term debt activity and proceeds from equity issuances which have been used to provide working capital and for general corporate purposes, including paying down its short-term revolving facilities. Cash provided by financing activities was $590.4 million and $335.6 million during the six months ended June 30, 2020 and 2019, respectively, an increase of $254.9 million. The change primarily relates to increased proceeds from the issuances of Class A common stock, partially offset by decreased proceeds from short-term revolving facilities and long-term debt. A full-text copy of the Form 10-Q is available for free at: https://is.gd/KDmzEd About Carvana Founded in 2012 and based in Tempe, Arizona, Carvana Co. -- http://www.carvana.com/-- is a holding company that was formed as a Delaware corporation on Nov. 29, 2016. Carvana is an e-commerce platform for buying and selling used cars. The Company owns and operates Carvana.com, which enables consumers to quickly and easily shop vehicles, finance, trade-in or sell the ir current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana's patented, automated Car Vending Machines. Carvana reported a net loss of $364.6 million in 2019, a net loss of $254.74 million in 2018, and a net loss of $164.32 million in 2017. As of March 31, 2020, the Company had $2.24 billion in total assets, $2.22 billion in total liabilities, and $13.22 million in total stockholders' equity. * * * As reported by the TCR on May 24, 2019, S&P Global Ratings affirmed its 'CCC+' issuer credit rating on Carvana Co. to reflect the company's improved liquidity after it raised $480 million by issuing about $230 million of common stock and a $250 million add-on to its existing senior unsecured notes due 2023. CBAK ENERGY: Agrees With Lender to Swap $365K Note for Equity ------------------------------------------------------------- CBAK Energy Technology, Inc., entered into an exchange agreement with Atlas Sciences, LLC on July 29, 2020, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $365,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on July 24, 2019, which has an original principal amount of $1,395,000, and (ii) exchange the Partitioned Promissory Note for the issuance of 576,820 shares of the Company's common stock, par value $0.001 per share to the Lender. According to the Exchange Agreement, the Shares are required to be delivered to the Lender on or before Aug. 3, 2020 and the exchange will occur upon the Lender's surrender of the Partitioned Promissory Note to the Company on the date when the Shares are eligible for free trading. About CBAK Energy Dalian, China-based CBAK Energy Technology, Inc., formerly China BAK Battery, Inc. -- http://www.cbak.com.cn/-- is engaged in the business of developing, manufacturing and selling new energy high power lithium batteries, which are mainly used in the following applications: electric vehicles; light electric vehicles; and electric tools, energy storage, uninterruptible power supply, and other high power applications. CBAK Energy reported a net loss of $10.85 million for the year ended Dec. 31, 2019, compared to a net loss of $1.96 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $94.20 million in total assets, $82.70 million in total liabilities, and $11.50 million in total equity. Centurion ZD CPA & Co., in Hong Kong, China, the Company's auditor since 2016, issued a "going concern" qualification in its report dated May 14, 2020, citing that the Company has a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Dec. 31, 2019. All these factors raise substantial doubt about its ability to continue as a going concern. CEC ENTERTAINMENT: Bankruptcy Threatens Future of 700 Locations --------------------------------------------------------------- Duffie Osental, writing for MPA Magazine, reports that the Chapter 11 bankruptcy filing of Chuck E. Cheese has detrimentally affected its hundreds of restaurant leases. In a move certain to send shockwaves across the commercial real estate market, the parent corporation of well-known arcade and pizza chain Chuck E. Cheese filed for Chapter 11 bankruptcy protection in order to have a "critical conversation" with its landlords and restructure its balance sheet. The announcement by parent company CEC Entertainment casts a shadow over the future of more than 700 Chuck E. Cheese and Peter Piper Pizza locations across the country, already suffering from prolonged closures brought about by the COVID-19 pandemic. As a part of its Chapter 11 filing, USA Today reported that CEC has also compiled a list of 45 leases it "plans to reject," which includes restaurant locations in California, Florida, Massachusetts, Ohio, and Oklahoma. However, CEC announced that is has re-opened 266 company-operated restaurant locations – though subject to "ongoing negotiations with its landlords." The company said that it expects to maintain ongoing operations in these locations "throughout the Chapter 11 process, providing dine-in, delivery, and carry-out services, hosting birthday parties during dedicated hours, and supporting fundraisers and events in the coming weeks and months." The company also said that it has filed customary motions intended to allow it to "maintain operations in the ordinary course including, but not limited to, paying employees and continuing existing benefits programs, honoring guest gift cards, and upholding commitments under its franchising and licensing agreements." Meanwhile, the company clarified that US and international franchised locations "operate under separate legal and financial structures" and are not included in the bankruptcy filings. In a statement, David McKilips, chief executive officer of CEC Entertainment, said that entering bankruptcy was necessary to allow the beleaguered pizza chain to recover from the financial impact of the pandemic. "I'm confident in the strength of our team and our world-class brands and look forward to more fully implementing our strategic plan as we put these financial challenges behind us," said McKilips. About CEC Entertainment CEC Entertainment -- http://www.chuckecheese.com/-- is a family entertainment and dining company that owns and operates Chuck E. Cheese and Peter Piper Pizza restaurants. As of Dec. 31, 2019, CEC Entertainment and its franchisees operate a system of 612 Chuck E. Cheese restaurants and 129 Peter Piper Pizza stores, with locations in 47 states and 16 foreign countries and territories. CEC Entertainment recorded a net loss of $28.92 million for the year ended Dec. 29, 2019, compared to a net loss of $20.46 million for the year ended Dec. 30, 2018. As of Dec. 29, 2019, CEC Entertainment had $2.12 billion in total assets, $1.90 billion in total liabilities, and $213.78 million in total stockholders' equity. On June 24, 2020, CEC Entertainment and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-33163). Judge Marvin Isgur oversees the cases. The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy counsel; FTI Consulting, Inc. as financial advisor; PJT Partners LP as investment banker; Hilco Real Estate, LLC as real estate advisor; and Prime Clerk, LLC, as claims, noticing and solicitation agent. CEC ENTERTAINMENT: Rejecting Leases for 45 Locations ---------------------------------------------------- Nathan Bomey, writing for USA Today, reports that CEC Entertainment, which owns the Chuck E. Cheese and Peter Piper Pizza chains, plans to permanently close about 34 locations that were open when the coronavirus pandemic began. The company filed a list of about 45 leases it plans to reject, including five in California, four in Florida, four in Massachusetts, three in Ohio and three in Oklahoma. The list included 11 locations that had already closed before the COVID-19 outbreak, including the West Ashley location. The North Charleston location seems to be unaffected. CEC also requested a judge's permission to continue to honor game credits, tickets, tokens, gift cards, customer deposits, discount offers and loyalty accounts as long as the company remains in business. The company has said it hopes to use the Chapter 11 process to shed debt and emerge as a more sustainable operation. With more than 15,000 employees, the Irving, Texas-based company had 555 company-owned locations and 186 franchise locations spanning 47 states and 16 foreign countries or U.S. territories, as of Dec. 29, 2019. CEC, which is owned by private equity firm Apollo Global Management, posted revenue of $913 million and a net loss of $29 million in 2019, according to a court filing. Reserved birthday packages made up about 16% of the company’s revenue in 2019. Chuck E. Cheese, founded in 1977, makes up a majority of the company's business. Each location has about 75 games, rides and attractions, including classics like Skee-Ball, Whac-A-Mole and arcade basketball. The chain also serves a menu of pizza, wings, desserts and drinks, including alcoholic beverages at most sites. Visitors are serenaded by the brand’s eponymous mouse mascot. Apollo took the company private in 2014 through a leveraged buyout that left it with substantial debt. With its venues temporarily closed because of COVID-19, the company lost more than 90% of its revenue despite efforts to ramp up food delivery and takeout. During that period, the company got behind on its rent at hundreds of locations, according to a court filing. "In ordinary times, the company would be financially sound," CEC CFO James Howell said in the court document. In a separate court filing (.pdf), CEC listed the leases it plans to reject: California * Ladera Heights * San Bernardino * El Monte * Long Beach * Diamond Bar Colorado * Grand Junction * Fort Collins Florida * Green Acres * Miami Gardens * North Lauderdale * Miami Georgia * Macon Illinois * Chicago – Matteson * Vernon Hills Iowa * Sioux City Maryland * Gaithersburg Massachusetts * Springfield * Natick * Leominster * Danvers Michigan * Muskegon Minnesota * Rochester Missouri * Columbia Nebraska * Lincoln Nevada * Las Vegas – McCarran * Las Vegas – Saraha New Mexico * Alb – Juan Tabo New York * New Hartford * Harlem North Carolina * Jacksonville Ohio * Columbus – Macsway * Mansfield * Lima Oklahoma * Oklahoma City – Del City * Oklahoma City – Westgate * Moore Pennsylvania * Johnstown * Lancaster South Carolina * Charleston South Dakota * Rapid City Texas * Allen * Mesquite Utah * Layton Virginia * Fredericksburg Wisconsin * Appleton About CEC Entertainment CEC Entertainment -- http://www.chuckecheese.com/-- is a family entertainment and dining company that owns and operates Chuck E. Cheese and Peter Piper Pizza restaurants. As of Dec. 31, 2019, CEC Entertainment and its franchisees operate a system of 612 Chuck E. Cheese restaurants and 129 Peter Piper Pizza stores, with locations in 47 states and 16 foreign countries and territories. CEC Entertainment recorded a net loss of $28.92 million for the year ended Dec. 29, 2019, compared to a net loss of $20.46 million for the year ended Dec. 30, 2018. As of Dec. 29, 2019, CEC Entertainment had $2.12 billion in total assets, $1.90 billion in total liabilities, and $213.78 million in total stockholders' equity. On June 24, 2020, CEC Entertainment and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-33163). Judge Marvin Isgur oversees the cases. The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy counsel; FTI Consulting, Inc. as financial advisor; PJT Partners LP as investment banker; Hilco Real Estate, LLC as real estate advisor; and Prime Clerk, LLC, as claims, noticing and solicitation agent. CEC ENTERTAINMENT: Wins Approval to Defer Rent Payments ------------------------------------------------------- Katherine Doherty, writing for Bloomberg News, reports that bankrupt CEC Entertainment Inc., the parent company of Chuck E. Cheese and Peter Piper Pizza, won temporary court relief from meeting certain lease obligations as it looks to reopen certain locations amid the pandemic. Bankruptcy judge Marvin Isgur signed an interim, emergency order to allow the debtor to pause rent payments on an emergency basis despite some objections from lessors. CEC filed an emergency motion on June 29 asking to defer around $20 million of rent payments for July and August to Aug. 24, according to court documents. About CEC Entertainment CEC Entertainment -- http://www.chuckecheese.com/-- is a family entertainment and dining company that owns and operates Chuck E. Cheese and Peter Piper Pizza restaurants. As of Dec. 31, 2019, CEC Entertainment and its franchisees operate a system of 612 Chuck E. Cheese restaurants and 129 Peter Piper Pizza stores, with locations in 47 states and 16 foreign countries and territories. CEC Entertainment recorded a net loss of $28.92 million for the year ended Dec. 29, 2019, compared to a net loss of $20.46 million for the year ended Dec. 30, 2018. As of Dec. 29, 2019, CEC Entertainment had $2.12 billion in total assets, $1.90 billion in total liabilities, and $213.78 million in total stockholders' equity. On June 24, 2020, CEC Entertainment and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-33163). Judge Marvin Isgur oversees the cases. The Debtors tapped Weil, Gotshal & Manges, LLP as bankruptcy counsel; FTI Consulting, Inc. as financial advisor; PJT Partners LP as investment banker; Hilco Real Estate, LLC as real estate advisor; and Prime Clerk, LLC, as claims, noticing and solicitation agent. CFO MANAGEMENT: CPIF Says Trustee Plan Patently Unconfirmable ------------------------------------------------------------- CPIF Lending, LLC ("CPIF") objects to the Proposed Disclosure Statement in Support of Chapter 11 Trustee's Second Amended Plan of Liquidation for debtor CFO Management Holdings, LLC. CPIF claims that the Disclosure Statement has several information gaps and flaws that prevent creditors from fully understanding the effects of the Proposed Plan, including a failure to describe expected returns in a chapter 7 liquidation and how certain contemplated actions will affect the expected returns for each class. CPIF points out that the Proposed Plan's treatment of CPIF's claim relies on a misapplication of Section 502(c) while also impermissibly cutting off CPIF's rights to see its claim fully adjudicated. Because its treatment of CPIF's claim is not permissible under the Bankruptcy Code, the Proposed Plan is facially defective and patently unconfirmable. CPIF asserts that the Proposed Plan Seeks to Substantively Consolidate Non-Debtors in a Way that Harms Existing Creditors and, Therefore, is Impermissible. CPIF objects to any scheduling of the confirmation hearing that exposes CPIF to duplicative discovery burdens in light of the pending adversary proceedings in which the plaintiffs will undoubtedly seek substantially the same discovery from CPIF that the Trustee seeks in connection with pursing the Proposed Plan. A copy of CPIF's objection to the Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/yaonen8q from PacerMonitor at no charge. Counsel to CPIF Lending: Marcus A. Helt Thomas C. Scannell FOLEY & LARDNER LLP 2021 McKinney Avenue, Suite 1600 Dallas, TX 75201 Telephone: 214.999.3000 Facsimile: 214.999.4667 E-mail: mhelt@foley.com tscannell@foley.com - and - Michael J. Barrie BENESCH, FRIEDLANDER, COPLAN & ARONOFF LLP 222 Delaware Avenue, Suite 801 Wilmington, Delaware 19801 Telephone: 302.442.7010 Facsimile: 302.442.7012 E-mail: mbarrie@beneschlaw.com kharmon@beneschlaw.com - and - Sven T. Nylen Jacob H. Marshall 71 South Wacker Drive, Suite 1600 Chicago, IL 60606 Telephone: 312.212.4949 Facsimile: 312.767.9192 E-mail: snylen@beneschlaw.com jmarshall@beneschlaw.com About CFO Management CFO Management Holdings, LLC, through its subsidiaries, engages in developing and selling residential and commercial real estate in Collin County, Texas, and owns and manages a wild game ranch in Southern Oklahoma. The subsidiaries are Carter Family Office, LLC, Christian Custom Homes, LLC, Double Droptine Ranch, LLC, Frisco Wade Crossing Partners, LLC, Kingswood Development Partners, LLC, McKinney Executive Suites at Crescent Parc Development Partners, LLC, North-Forty Development LLC, and West Main Station Development, LLC. CFO Management Holdings and its subsidiaries sought Chapter 11 protection (Bankr. E.D. Tex. Case No. Lead Case No. 19-40426) on Feb. 17, 2019. In the petition signed by CRO Lawrence Perkins, CFO Management was estimated to have $50 million to $100 million in both assets and liabilities. Annmarie Chiarello, Esq. and Joseph J. Wielebinski Jr., Esq., at Winstead PC, serve as the Debtor's bankruptcy counsel. The Office of the U.S. Trustee appointed an official committee of unsecured creditors on March 4, 2019. The Committee is represented by Singer & Levick PC as its legal counsel. David Wallace was appointed as Chapter 11 trustee for the Debtors' estates on April 10, 2019. CHESAPEAKE ENERGY: Bankruptcy Filing Prompts Concerns of Landowners ------------------------------------------------------------------- Nikki Krize, writing for WNEP, reports that landowners aired concerns related to the Chapter 11 bankruptcy filing of natural gas company Chesapeake Energy. Chesapeake filed for Chapter 11 bankruptcy on June 28, 2020. Hundreds of landowners in the northern tier lease land to Chesapeake for natural gas drilling, and some are concerned about what the bankruptcy filing will mean for them. Mark Dietz is a business owner and Wilmot Township supervisor in Bradford County. He is also one of many people who lease land to Chesapeake Energy, a natural gas company. Dietz found out at the same time as the rest of the country that Chesapeake filed for Chapter 11 bankruptcy on Sunday. "It's extremely scary," Mark Dietz said. Chesapeake Energy said in its bankruptcy petition that it is more than $11 billion in debt. This is no surprise to landowners in Bradford, Susquehanna, and Wyoming Counties, many of whom say the gas company has not paid them their fair share for drilling on their land. "Are they going to be able to pay the landowners? Because in the past, when we had problems with them, it hasn't stopped them from taking our gas," Dietz said. "We're not surprised this has happened," Bradford County Commissioner Doug McLinko said. Commissioner McLinko has spoken out previously about what he calls Chesapeake Energy's unfair royalty practices. Now that the company has filed for bankruptcy, McLinko is waiting to see what happens next. "We don't know what the future holds. We're very concerned about it. But at the end of the day, they're not well respected here in this county," McLinko said. In a letter Chesapeake Energy's CEO sent to employees, he says: "This is a financial restructuring, and we will continue to operate our business as usual." According to Chesapeake Energy, royalty payments will be made without interruption. There will be a temporary pause in people's ability to cash royalty checks while the company's assets are frozen. A representative for Chesapeake suggests waiting a week to cash current royalty checks. People we spoke with aren't so sure. "You know that they're so big that they can do whatever they want to," Dietz said. About Chesapeake Energy Headquartered in Oklahoma City, Chesapeake Energy Corporation's (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. Chesapeake Energy reported a net loss of $308 million for the year ended Dec. 31, 2019. As of Dec. 31, 2019, the company had $16.19 billion in total assets, $2.39 billion in total current liabilities, $9.40 billion in total long-term liabilities, and $4.40 billion in total equity. Chesapeake Energy and its affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-33233) on June 28, 2020, after reaching terms of a Chapter 11 plan of reorganization to eliminate approximately $7 billion of debt. The Debtors tapped Kirkland & Ellis LLP as legal counsel; Alvarez & Marsal as restructuring advisor; Rothschild & Co and Intrepid Financial Partners as financial advisors; and Reevemark as communications advisor. Epiq Global is the claims agent, maintaining the page http://www.chk.com/restructuring-information. Wachtell, Lipton, Rosen & Katz serves as legal counsel to Chesapeake Energy's Board of Directors. MUFG Union Bank, N.A., the DIP facility agent and exit facilities agent, has tapped Sidley Austin LLP as legal counsel; RPA Advisors, LLC as financial advisor; and Houlihan Lokey Capital, Inc., as investment banker. Davis Polk & Wardell LLP and Vinson & Elkins L.L.P. serve as legal counsel to an ad hoc group of first lien last out term loan lenders while Perella Weinberg Partners and Tudor, Pickering, Holt & Co. serve as the group's investment bankers. Franklin Advisers, Inc., has tapped Akin Gump Strauss Hauer & Feld LLP as legal counsel; FTI Consulting, Inc., as financial advisor; and Moelis & Company LLC as investment banker. CHESAPEAKE ENERGY: CDS Panel Voted to Trigger $543M Swaps Payout ---------------------------------------------------------------- Claire Boston of Bloomberg News reports that Chesapeake Energy's Chapter 11 filing will trigger payouts on a net $543 million of credit-default swaps after the bankruptcy was ruled a credit event. The Americas Credit Derivatives Determinations Committee voted unanimously to trigger the contracts and said an auction should be held to settle them, according to a statement on the panel's Web site. There was $543 million of net notional outstanding on Chesapeake as of May 22, according to the International Swaps & Derivatives Association. About Chesapeake Energy Headquartered in Oklahoma City, Chesapeake Energy Corporation's (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. Chesapeake Energy reported a net loss of $308 million for the year ended Dec. 31, 2019. As of Dec. 31, 2019, the company had $16.19 billion in total assets, $2.39 billion in total current liabilities, $9.40 billion in total long-term liabilities, and $4.40 billion in total equity. Chesapeake Energy and its affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-33233) on June 28, 2020, after reaching terms of a Chapter 11 plan of reorganization to eliminate approximately $7 billion of debt. The Debtors tapped Kirkland & Ellis LLP as legal counsel; Alvarez & Marsal as restructuring advisor; Rothschild & Co and Intrepid Financial Partners as financial advisors; and Reevemark as communications advisor. Epiq Global is the claims agent, maintaining the page http://www.chk.com/restructuring-information. Wachtell, Lipton, Rosen & Katz serves as legal counsel to Chesapeake Energy's Board of Directors. MUFG Union Bank, N.A., the DIP facility agent and exit facilities agent, has tapped Sidley Austin LLP as legal counsel; RPA Advisors, LLC as financial advisor; and Houlihan Lokey Capital, Inc., as investment banker. Davis Polk & Wardell LLP and Vinson & Elkins L.L.P. serve as legal counsel to an ad hoc group of first lien last out term loan lenders while Perella Weinberg Partners and Tudor, Pickering, Holt & Co. serve as the group's investment bankers. Franklin Advisers, Inc. has tapped Akin Gump Strauss Hauer & Feld LLP as legal counsel; FTI Consulting, Inc. as financial advisor; and Moelis & Company LLC as investment banker. CHINESEINVESTORS.COM: Committee Taps Force 10 as Financial Advisor ------------------------------------------------------------------ The Official Committee of Unsecured Creditors of Chineseinvestors.com, Inc., seeks authorization from the U.S. Bankruptcy Court for the Central District of California to retain Force 10 Partners LLC, as financial advisor to the Committee. The Committee requires Force 10 to: a. analyze the Debtor's financial projections, budgets, key operating metrics, etc. to gain a complete understanding of the business; b. develop financial projections and valuations to assess the feasibility of the Debtor's reorganization plans and business valuation to ensure the Unsecured Creditors are treated equitably or to develop a Committee Plan; c. evaluate solicited offers to purchase or invest in the Debtor, purchase of certain assets; d. assess liquidation and enterprise values to determine the thresholds for treatment of unsecured creditor claims; e. determine the appropriate interest rates to be applied to all classes of creditor claims; f. evaluate the Debtor's reported and unreported assets; g. drive a consensual or nonconsensual plan and/or evaluate the Debtor's plan or any competing plan; h. seek additional sources of recovery in the event the restructuring plan or 363 sale(s) fall short; i. provide accounting investigations of the books and records and litigation support for avoidable transfers; and j. engage in such other financial advisory activities as agreed upon between the Committee and Force 10. Force 10 will be paid at these hourly rates: Adam Meislik $650 Other Partners $650 Raj Gaglani $425 Other Directors $350 to $550 Staff $185 to $350 Force 10 will also be reimbursed for reasonable out-of-pocket expenses incurred. Adam Meislik, partner of Force 10 Partners LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtor; (b) has not been, within two years before the date of the filing of the Debtor's chapter 11 petition, directors, officers or employees of the Debtor; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtor, or for any other reason. Force 10 can be reached at: Adam Meislik FORCE 10 PARTNERS 20341 SW Birch, Suite 220 Newport Beach, CA 92660 Tel: (949) 357-2360 About Chineseinvestors.com Chineseinvestors.com, Inc., was established as an 'in language' (Chinese) financial information web portal that provides information about US Equity and Financial Markets, as well as other financial markets. Chineseinvestors.com, Inc., filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-15501) on June 18, 2020. In the petition signed by Wei Warren Wang, CEO, the Debtor disclosed $2,655,736 in assets and $11,574,081 in liabilities. Rachel M. Sposato, Esq., at THE HINDS LAW GROUP, is the Debtor's counsel. The Office of the U.S. Trustee appointed a committee to represent unsecured creditors in the Chapter 11 case of Chineseinvestors.com, Inc. The Committee retained Weintraub & Selth, APC, as counsel, and Force 10 Partners LLC, as financial advisor. CHINESEINVESTORS.COM: Committee Taps Weintraub & Selth as Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Chineseinvestors.com, Inc., seeks authorization from the U.S. Bankruptcy Court for the Central District of California to retain Weintraub & Selth, APC, as bankruptcy counsel to the Committee. The Committee requires Weintraub & Selth to: a. evaluate assets of the Estate; b. evaluate claims against third parties; c. evaluate claims against the Estate; d. determine if appointment of a trustee is in the best interest of the Estate and its creditors; e. determine what means of reorganization is best for creditors and take steps necessary to effectuate those means; f. determine whether to move to convert or dismiss the case or take any other action as may be in the best interest of the general unsecured creditors; g. negotiate treatment of unsecured creditors under any proposed plan of reorganization; and h. prosecute or oppose any motion, plan, contested proceeding, or other action, as directed by the Committee, to ensure that the best interests of the Estate are achieved and/or preserved. Weintraub & Selth will be paid at these hourly rates: Daniel J. Weintraub $595 James R. Selth $575 Robert Reganyan (Of Counsel) $475 Crystle J. Lindsey $485 Paraprofessionals $250 Legal Assistants $150 to $175 Weintraub & Selth will also be reimbursed for reasonable out-of-pocket expenses incurred. Daniel J. Weintraub, a partner of Weintraub & Selth, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtor; (b) has not been, within two years before the date of the filing of the Debtor's chapter 11 petition, directors, officers or employees of the Debtor; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtor, or for any other reason. Weintraub & Selth can be reached at: Daniel J. Weintraub, Esq. James R. Selth, SBN 123420 Crystle J. Lindsey, Esq. WEINTRAUB & SELTH, APC 11766 Wilshire Boulevard, Suite 1170 Los Angeles, CA 90025 Telephone: (310) 207-1494 Facsimile: (310) 442-0660 E-mail: crystle@wsrlaw.net About Chineseinvestors.com Chineseinvestors.com, Inc., was established as an 'in language' (Chinese) financial information web portal that provides information about US Equity and Financial Markets, as well as other financial markets. Chineseinvestors.com, Inc., filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-15501) on June 18, 2020. In the petition signed by Wei Warren Wang, CEO, the Debtor disclosed $2,655,736 in assets and $11,574,081 in liabilities. Rachel M. Sposato, Esq., at THE HINDS LAW GROUP, is the Debtor's counsel. The Office of the U.S. Trustee appointed a committee to represent unsecured creditors in the Chapter 11 case of Chineseinvestors.com, Inc. The Committee retained Weintraub & Selth, APC, as counsel, and Force 10 Partners LLC, as financial advisor. CIRQUE DU SOLEIL: To Cut 3,500 Jobs as Part of Bankruptcy --------------------------------------------------------- Anna Rumer, writing for Pop Culture, reports that Cirque du Soleil will cut 3,500 jobs as part of its bankruptcy filing. Cirque du Soleil has fallen on difficult financial times due to the coronavirus pandemic, announcing in late June that it had filed for bankruptcy. The Montreal-based company listed the cause of its filing the "immense disruption and forced show closures as a result of the COVID-19 pandemic" and said it would attempt to restructure its debt with assistance from the Canadian government and private equity firms. As part of this financial crisis, CNN reports the entertainment company has laid off roughly 3,500 employees. Cirque's bankruptcy filing came just three months after it was forced to suspend production of its shows, including the six incredibly popular residencies in Las Vegas, due to the spread of the coronavirus. The company has about 10 shows on tour internationally, including O, Michael Jackson One, and The Beatles LOVE. "For the past 36 years, Cirque du Soleil has been a highly successful and profitable organization," Daniel Lamarre, CEO of Cirque du Soleil Entertainment Group said in a press release. "However, with zero revenues since the forced closure of all of our shows due to COVID-19, management had to act decisively to protect the company's future." The Canadian entertainment company added it has entered a "stalking horse" agreement with existing shareholders including TPG Capital, Fosun International Ltd, and Caisse de depot et placement du Québec, under which the group will take over the company's liabilities and invest $300 million. This funding will "support a successful restart, provide relief for Cirque du Soleil's affected employees and partners, and assume certain of the company's outstanding liabilities," according to the release. Government body Investissement Québec will also provide $200 million in debt financing as part of the agreement. About Cirque du Soleil Cirque du Soleil U.S. Intermediate Holdings, Inc. is a provider of unique live acrobatic theatrical performances. The company currently operates 6 Cirque du Soleil resident shows, 6 Blue Man Group resident shows and 11 touring shows. For last twelve months ending September 30, 2018 the company's revenue was $832 million. The company's founder, Guy Laliberte, retains a 10% minority interest after a leveraged buyout in July of 2015. TPG Capital Group (55% share), Fosun Capital Group (25% share) and Caisse de depot et placement du Quebec (10% share) purchased 90% the company using the proceeds of the credit facilities plus approximately $630 million of cash equity contribution. In March 2020, the circus was forced by the coronavirus pandemic to shutter dozens of shows in cities worldwide. In early June 2020, the circus reportedly got a proposal from creditors to inject $300 million into Cirque du Soleil under a bankruptcy restructuring that also would convert the company's $900 million in debt into a 100-percent ownership stake. On June 29, 2020, Cirque du Soleil Entertainment Group and certain of its affiliated companies filed for protection from creditors under the Companies' Creditors Arrangement Act ("CCAA") in order to restructure its capital structure. On July 1, 2020, 43 U.S. affiliates filed Chapter 15 cases in the U.S. (Bankr. D. Del.) to seek U.S. recognition of the CCAA cases. The lead case is In re CDS U.S. Holdings, Inc. (D. Del. Lead Case No. 20-11719). COCRYSTAL PHARMA: Incurs $3.49 Million Net Loss in 2nd Quarter -------------------------------------------------------------- Coycrystal Pharma, Inc., filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, reporting a net loss of $3.49 million on $554,000 of revenues for the three months ended June 30, 2020, compared to a net loss of $1.52 million on $592,000 of revenues for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss of $5.48 million on $1.01 million of revenues compared to net income of $1.45 million on $5.67 million of revenues for the six months ended June 30, 2019. As of June 30, 2020, the Company had $40.48 million in total assets, $3.42 million in total liabilities, and $37.05 million in total stockholders' equity. Net cash used in operating activities was $4,388,000 for the six months ended June 30, 2020 compared with net cash provided by operating activities of $990,000 for the same period in 2019. This was primarily due to the $4,000,000 upfront payment from Merck at the signing of the Collaboration Agreement in January 2019. Net cash used for investing activities was approximately $220,000 for the six months ended June 30, 2020 compared with $29,000 net cash used in the same period in 2019. For the six months ended June 30, 2020 and 2019, net cash used for investing activities consisted primarily of capital spending for computers and lab equipment. Net cash provided by financing activities totaled $16,505,000 for the six months ended June 30, 2020 compared with $3,811,000 for the same period in 2019. This was primarily due to the sale of common stock in three registered direct offerings during the six months ended June 30, 2020. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs. The Company had $19,365,000 cash on June 30, 2020 and believes this is sufficient to maintain planned operations through 2021. "We have focused our efforts on research and development activities, including through collaborations with suitable partners," Cocrystal said. "We have been profitable on a quarterly basis, but have never been profitable on an annual basis. We have no products approved for sale and have incurred operating losses and negative operating cash flows on an annual basis since inception." A full-text copy of the Form 10-Q is available for free at: https://is.gd/iqr0je About Cocrystal Pharma Headquartered in Creek Parkway Bothell, WA, Cocrystal Pharma, Inc. -- http://www.cocrystalpharma.com/-- is a clinical stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication machinery of influenza viruses, hepatitis C viruses, noroviruses, and coronaviruses. Cocrystal Pharma recorded a net loss of $48.17 million for the year ended Dec. 31, 2019, compared to a net loss of $49.05 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $42.84 million in total assets, $2.41 million in total liabilities, and $40.43 million in total stockholders' equity. COLUMBUS OIL: Gets Approval to Hire Heyboer Law as Legal Counsel ---------------------------------------------------------------- Columbus Oil & Gas, LLC received approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Heyboer Law, PLC to handle its Chapter 11 case. The firm's legal services will be provided mainly by David Heyboer, Esq., and Michael Heyboer, Esq., who will charge $250 per hour and $180 per hour, respectively. The firm will also receive reimbursement for work-related expenses incurred. Mr. Heyboer disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Heyboer Law can be reached at: David R. Heyboer, Esq. Heyboer Law, PLC 3051 Commerce, Suite 1 Fort Gratiot, MI 48059 Tel: (810) 982-9800 Fax: 810-982-1148 Email: HFLaw@iwarp.net About Columbus Oil & Gas Columbus Oil & Gas, LLC, an oil and energy company in Port Huron, Mich., filed a Chapter 11 bankruptcy petition (Bankr. E.D. Mich. Case No. 20-47870) on July 19, 2020. Debtor initially filed for bankruptcy protection (Bankr. E.D. Mich. Case No. 19-52994) on Sep. 11, 2019. In the petition signed by Charles U. Lawrence, manager, Debtor disclosed total assets of $3,498,983 and total liabilities of $25,988,658. Judge Maria L. Oxholm oversees the case. Heyboer Law PLC serves as Debtor's bankruptcy counsel. COMARK HOLDING: Emerges from CCAA Creditor Protection ----------------------------------------------------- Comark Holdings Inc. and its subsidiaries, a leading specialty fashion retailer serving customers across Canada through its Ricki's, cleo and Bootlegger banners, on Aug. 7 announced the successful closing of a sale transaction for its business that will best position the company for success in a challenging retail environment and its emergence from creditor protection under the Companies' Creditors Arrangement Act ("CCAA"). "We are very pleased with the outcome of the CCAA and that we will be moving forward with each of our banners and 280 of our stores across Canada" said Gerry Bachynski, President of Comark. "We are grateful for the ongoing support of our 2,500 employees, vendors, landlords and shareholders, and we are excited to enter the next chapter in Comark's history, repositioned with a more efficient business, better able to serve our loyal customers in today's retail environment." Osler, Hoskin & Harcourt LLP acts as legal advisor to Comark in connection with the CCAA proceedings. The Court-appointed Monitor in the CCAA proceedings is Alvarez & Marsal Canada Inc. Court filings as well as other information related to Comark's CCAA proceedings are available on the Monitor's website at www.alvarezandmarsal.com/comarkholdings. About Comark Holdings Inc. Comark is one of Canada's leading specialty apparel retailers. Established in 1976, Comark operates over 280 stores under three banners: Ricki's, cleo and Bootlegger. Comark stores are located in shopping malls, big box power centres and strategic suburban plazas across Canada. Comark's long history throughout the country has fostered tremendous customer loyalty within each division's target market. COMMERCIAL PRODUCTS: Case Summary & 17 Unsecured Creditors ---------------------------------------------------------- Debtor: Commercial Products Co, Inc. 117 Ethel Avenue Hawthorne, NJ 07506 Business Description: Commercial Products Co, Inc. -- https://www.commercial-products.com -- produces chemical products for the finishing of fabrics. These include stiffeners, softeners and additives such as those that provide flame retardancy (www.greenflameretardant.com). Its customers range from the domestic U.S., to the new textile centers in South America, Central America and Asia. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court District of New Jersey Case No.: 20-19358 Debtor's Counsel: Stephen B. McNally, Esq. MCNALLY & ASSOCIATES, LLC 93 Main Street Suite 201 Newton, NJ 07860 Tel: 973-300-4260 Email: steve@mcnallylawllc.com Total Assets: $802,156 Total Liabilities: $1,627,935 The petition was signed by Elaine Arnoldi, authorized representative. A copy of the petition containing, among other items, a list of the Debtor's 17 unsecured creditors is available for free at PacerMonitor.com at: https://is.gd/1p12x7 COMMERCIAL ROOFING: Seeks to Hire Michael D. O'Brien as Counsel --------------------------------------------------------------- Commercial Roofing Solutions Inc. seeks authority from the U.S. Bankruptcy Court for the District of Oregon to hire Michael D. O'Brien & Associates P.C. as its legal counsel. The firm will assist Debtor in the preparation of a plan of reorganization and will provide other legal services in connection with its Chapter 11 case. The firm's attorneys and paralegals will be paid at hourly rates as follows: Michael D. O'Brien, MDO, Partner $430 Theodore J. Piteo, TJP, Partner $300 Hugo Zollman, HZ, Senior Paralegal $170 Lauren Gary, LNG, Paralegal $140 Michael D. O'Brien received the sum of $20,750, of which $1,717 was used to pay the filing fee. Michael D. O'Brien does not have any connection with Debtor's creditors or any other "party in interest," according to court filings. The firm can be reached through: Michael D. O'Brien, Esq. Theodore J. Piteo, Esq. Michael D. O'Brien & Associates, P.C. 12909 SW 68th Pkwy, Suite 160 Portland, OR 97223 Phone: (503) 786-3800 About Commercial Roofing Solutions Commercial Roofing Solutions Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Oregon Case No. 20-32203) on July 21, 2020, listing under $1 million in both assets and liabilities. Judge Trish M. Brown oversees the case. Michael D. O'Brien & Associates P.C. is Debtor's legal counsel. COMSTOCK RESOURCES: Posts $60 Million Net Loss in Second Quarter ---------------------------------------------------------------- Comstock Resources, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss available to common stockholders of $60 million on $179.53 million of total oil and gas sales for the three months ended June 30, 2020, compared to net income available to common stockholders of $21.41 million on $128.12 million of total oil and gas sales for the three months ended June 30, 2019. The second quarter loss was primarily related to an unrealized loss on the mark to market value of the Company's derivative financial instruments as future natural gas prices have improved substantially since March 31, 2020. Net income available to common stockholders as adjusted to exclude the unrealized hedging losses and certain items not related to normal operating activities for the second quarter of 2020 was $1.7 million or $0.01 per diluted share. The unrealized derivative loss was $65.6 million in the second quarter and the other items include $5.4 million in non-cash interest amortization resulting from adjusting debt assumed in the Covey Park acquisition to fair value; $2.9 million of non-cash accretion resulting from adjusting the preferred stock issued in connection with the Covey Park acquisition to fair value; and $0.9 million for a loss on early extinguishment of debt. For the six months ended June 30, 2020, the Company reported a net loss available to common stockholders of $30.05 million on $405.41 million of total oil and gas sales compared to net income available to common stockholders of $34.98 million on $254.99 million of total oil and gas sales for the same period during the prior year. As of June 30, 2020, the Company had $4.53 billion in total assets, $3.04 billion in total liabilities, $175 million in mezzanine equity, and $1.32 billion in total stockholders' equity. Funding for the Company's activities has historically been provided by our operating cash flow, debt or equity financings or proceeds from asset sales. For the six months ended June 30, 2020, the Company generated $266.1 million in cash flow from operating activities. The Company also completed an underwritten public offering of its common stock in which it received $196.5 million in net proceeds and we issued $500.0 million of its 9 3/4% senior notes in which we received net proceeds of $441.1 million. For the six months ended June 30, 2019, cash provided by operating activities was $173.0 million and the Company had net borrowings under the Company's bank credit facility of $20.0 million. The Company's primary needs for capital, in addition to funding its ongoing operations, relate to the acquisition, development and exploration of its oil and natural gas properties and the repayment of its debt. In the six months ended June 30, 2020, the Company incurred capital expenditures of $205.2 million to fund its development and exploration activities. Drilling Results Total expenditures during the first six months of 2020 for drilling and development activities were $205.2 million, including $74.7 million spent in the second quarter. Comstock spent $201.3 million to develop its Haynesville and Bossier shale properties, comprised of $183.5 million on drilling and completing wells and an additional $17.8 million on other development activity. Comstock drilled 26 (20.1 net) horizontal operated Haynesville shale wells during the first six months of 2020, which had an average lateral length of approximately 8,996 feet. Comstock also participated in 12 (1.0 net) non-operated Haynesville shale wells in the first six months of 2020. During the first six months of 2020, Comstock turned 36 (17.3 net) Haynesville shale wells to sales. Since its last operational update, Comstock has not put any new Haynesville Shale wells on production. In April, Comstock released its completion crews in order to delay new production coming on line during the summer months given the expectations for low natural gas prices. As a result of the low activity in the second quarter, Comstock currently has 35 (18.9 net) wells drilled but not completed. Completion activity has been resumed in the third quarter and Comstock currently expects to turn approximately 25.0 net wells to sales in the last six months of 2020. A full-text copy of the Form 10-Q is available for free at: https://is.gd/nKj0xS About Comstock Resources Comstock Resources, Inc. -- http://www.comstockresources.com/-- is an independent energy company based in Frisco, Texas engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota. The Company's stock is traded on the New York Stock Exchange under the symbol CRK. As of March 31, 2020, Comstock Resources had $4.64 billion in total assets, $3.08 billion in total liabilities, $207.08 million in series A 10% convertible preferred stock, $175 million in series B 10% convertible preferred stock, and $1.17 billion in total stockholders' equity. COSTA HOLLYWOOD: Aug. 11 Plan Confirmation Hearing Set ------------------------------------------------------ On June 24, 2020, the U.S. Bankruptcy Court for the Southern District of Florida conducted a hearing to consider approval of the disclosure statement filed by Costa Hollywood Property Owners, LLC. On June 30, 2020, Judge A. Jay Cristol approved the Disclosure Statement and ordered that: * Aug. 11, 2020 at 2:00 PM in the United States Bankruptcy Court, C. Clyde Atkins U.S. Courthouse, Courtroom 7, 301 North Miami Avenue, Miami, Florida is the Confirmation Hearing and hearing on Fee Applications. * July 2, 2020, is fixed as the last day for filing and serving objections to claims. * July 21, 2020 is the deadline for fee applications. * July 28, 2020 is fixed as the last day for filing any objections to confirmation. * July 28, 2020 is fixed as the last day for filing ballots accepting or rejecting Plan. A copy of the order dated June 30, 2020, is available at https://tinyurl.com/ybfl54pf from PacerMonitor at no charge. About Costa Hollywood Property Owner Costa Hollywood Property Owner, LLC -- https://www.costahollywoodresort.com/ -- is a privately held company in the traveler accommodation industry. It owns and operates Costa Hollywood Beach Resort, a resort hotel in Hollywood Beach, Florida. Costa Hollywood Beach Resort offers rooms and suites featuring an elevated design aesthetic and luxe decor. Costa Hollywood sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-22483) on Sept. 19, 2019. In the petition signed by Moses Bensusan, manager and sole member, the Debtor was estimated to have assets ranging from $50 million to $100 million and liabilities of the same range. The Hon. Raymond B. Ray is the case judge. Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., serves as the Debtor's bankruptcy counsel. DAVIDSTEA INC: Obtains Amended and Restated Court Order Under CCAA ------------------------------------------------------------------ DAVIDsTEA Inc., a leading tea merchant in North America, disclosed that the Québec Superior Court on July 16 issued an Amended and Restated Initial Order extending to September 17, 2020 the application of the Initial Order obtained by DAVIDsTEA on July 8, 2020 under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The Amended and Restated Initial Order also deals with certain administrative matters. The Amended and Restated Initial Order and related documents will be available at www.pwc.com/ca/davidstea. At the request of Nasdaq, DAVIDsTEA also confirms that it will not issue any new shares or create any new classes of stock in its restructuring under the CCAA and that the restructuring will not have an impact on DAVIDsTEA's share structure. As previously announced, DAVIDsTEA's restructuring efforts under the CCAA are focused primarily on exiting unprofitable stores and right-sizing its Canadian brick and mortar footprint in the context of an increasingly challenging retail environment, further exacerbated by the COVID-19 pandemic. DAVIDsTEA's objective is to create a leaner and more efficient company and to accelerate its transition to an online retailer and wholesaler of high-quality tea and accessories, better positioned for long-term growth. The Company will continue to provide updates throughout the restructuring process as events warrant. About DAVIDsTEA DAVIDsTEA (Nasdaq:DTEA) is an online retailer and growing mass wholesaler of specialty tea, offering a differentiated selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts and accessories through over 100 company-owned and operated retail stores in Canada, as well as its e-commerce platform at http://www.davidstea.com/ A selection of DAVIDsTEA products is also available in over 2,500 grocery stores and pharmacies across Canada. The Company is headquartered in Montréal, Canada. DAVITA INC: Moody's Rates New Sr. Unsecured Notes Due 2031 'Ba3' ---------------------------------------------------------------- Moody's Investors Service announced that it assigned a Ba3 rating to DaVita Inc.'s proposed senior unsecured global notes due 2031. There is no change to DaVita's existing ratings, including its Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating, Ba1 senior secured rating, and Ba3 unsecured rating. There is also no change to the stable outlook. Proceeds from the new notes will be used along with existing cash to repay DaVita's senior unsecured global notes due 2025, including accrued interest and fees and expenses. Moody's views the transaction as a credit positive, as it will modestly reduce DaVita's annual interest expense and lengthen its maturity profile. Ratings assigned: DaVita Inc. Senior unsecured global notes due 2031 at Ba3 (LGD5) RATINGS RATIONALE DaVita Inc.'s Ba2 CFR is constrained by the company's moderately high financial leverage -- pro forma debt/EBITDA is approximately 4.1 times as of June 30, 2020 -- and its heavy reliance on commercially insured dialysis patients for the vast majority of profits and free cash flow. DaVita will continually be challenged to maintain a sufficiently large commercially insured end stage renal disease patient population to sustain its profitability. ESRD patients automatically convert to Medicare after a maximum of 33 months on dialysis. DaVita is reimbursed by Medicare at a fraction of what it earns from commercial payors. The CFR also reflects the company's near total reliance on the ESRD market which makes the company vulnerable to potential unfavorable market developments. These include further slowing in the growth of ESRD patient volumes and uncertainties regarding the availability of charitable premium assistance for dialysis patients. DaVita also faces uncertainties around the potential implementation of new payment models designed to accelerate penetration into the home dialysis setting and increase the supply of healthy kidneys for transplant. Finally, Moody's expects the COVID-19 pandemic to have a modestly negative impact on DaVita's operating performance, due largely to incremental operating costs and some modest headwinds to volume growth. The Ba2 CFR is supported by the company's considerable scale and extensive network of dialysis outpatient clinics across 46 US states. It is also supported by the recurring revenue stream attributed to dialysis, as the treatment is critically important to patients who require treatment three times per week indefinitely. The CFR also reflects DaVita's strong free cash flow and very good liquidity. The stable outlook reflects the underlying stability of DaVita's cash flows, supported by continued growth in the population of people needing dialysis, of about 2% per year. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. That said, Moody's believes the related impact on Davita's treatment volumes and operating costs will be modest. As a dialysis company, DaVita faces rising social risk as it pertains to the significant disparity between the reimbursement it receives for treating commercially insured patients and the amount it receives for treating patients insured by Medicare. Caring for dialysis patients is very costly, because they often suffer from co-morbidities beyond end-stage renal disease. These factors have induced various states to pursue legislation, that if passed, could reduce DaVita's and other dialysis companies' profits. Further, an executive order in mid-2019 aiming to increase the supply of kidney transplants and shift more dialysis treatments into the home setting could have mixed effects on dialysis companies. If efforts to increase the supply of kidneys available for transplant are successful, dialysis providers would be negatively impacted by slower ESRD patient volume growth. Longer-term, the Trump administration hopes to reduce the incidence of ESRD by 25% by 2030. The executive order also aims to reduce the number of people who receive dialysis treatment at dialysis centers and instead have them treated in their homes. This element of the order could be credit positive for DaVita, because reimbursement is comparable across dialysis settings while the costs of in-home dialysis (primarily peritoneal dialysis) are slightly less than those associated with hemodialysis administered in the dialysis centers. Moody's expects mandatory and voluntary kidney care models associated with the executive order to go into effect in April 2021. From a governance perspective, DaVita has generally exhibited aggressive financial policies as evidenced by significant, and sometimes debt-funded, share buybacks. However, since the beginning of the COVID-19 pandemic through July, the company has not completed any share repurchases. DaVita also elected to return $250 million of grant funding received from the Coronavirus Aid, Relief, and Economic Security Act. The SGL-1 Speculative Grade Liquidity Rating reflects Moody's expectation that DaVita will maintain very good liquidity over the next 12 to 18 months through its combination of cash, marketable securities and revolver availability. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if DaVita sustains debt to EBITDA below 3.25 times while demonstrating discipline with respect to acquisitions and shareholder returns. The ratings could be downgraded if material rate reimbursement cuts are implemented by either commercial insurers or Medicare. A downgrade could also result if debt to EBITDA is sustained above 4.25 times or demand for outpatient dialysis services slows. DaVita, Inc., headquartered in Denver, CO, is an independent provider of dialysis services primarily in the US for patients suffering from end-stage renal disease (chronic kidney failure). The company also provides home dialysis services, inpatient dialysis services through contractual arrangements with hospitals, laboratory services and other ancillary services. DaVita reported $11.5 billion of revenues from continuing operations for the LTM period ended June 30, 2020. The principal methodology used in this rating was Business and Consumer Service Industry published in October 2016. DENBURY RESOURCES: Egan-Jones Lowers Sr. Unsecured Ratings to D --------------------------------------------------------------- Egan-Jones Ratings Company, on July 30, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Resources Inc. to D from C. Headquartered in Plano, Texas, Denbury Resources Inc. produces petroleum products. DENBURY RESOURCES: Porter, Paul Weiss Update on Second Lien Group ----------------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firms of Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP submitted an amended verified statement to disclose an updated list of Second Lien Ad Hoc Committee that they are representing in the Chapter 11 cases of Denbury Resources Inc., et al. The "Second Lien Ad Hoc Committee" or "Ad Hoc Committee" of (i) 9% Senior Secured Second Lien Notes Due 2021, issued under that certain indenture, dated as of May 10, 2016, as amended, restated, amended and restated, supplemented or otherwise modified from time to time; (ii) 9 1⁄4% Senior Secured Second Lien Notes Due 2022, issued under that certain indenture, dated as of December 6, 2017, as amended, restated, amended and restated, supplemented or otherwise modified from time to time; (iii) 7 1⁄2% Senior Secured Second Lien Notes Due 2024, issued under that certain indenture, dated as of August 21, 2018 as amended, restated, amended and restated, supplemented or otherwise modified from time to time; and (iv) 7 3⁄4% Senior Secured Second Lien Notes Due 2024, issued under that certain indenture, dated as of June 19, 2019. In March 2020, certain members of the Ad Hoc Committee retained Paul, Weiss, Rifkind, Wharton & Garrison LLP to represent them in connection with a potential financed restructuring of the above-captioned debtors and debtors-in-possession. In July 2020, certain members of the Ad Hoc Committee retained Porter Hedges LLP, as its co-counsel. On August 4, 2020, Counsel filed the Verified Statement of the Second Lien Ad Hoc Committee Pursuant to Bankruptcy Rule 2019 [Docket No. 123]. This statement reflected a transcription error which has been corrected on Exhibit A. Accordingly, pursuant to Bankruptcy Rule 2019, Counsel submits this Amended Statement. As of Aug. 6, 2020, members of the Ad Hoc Committee and their disclosable economic interests are: Fidelity Investments, Inc. 245 Summer St. Boston, MA 02110 * 9.0% due 2021: 103,271,000 * 9.25% due 2022: 86,011,000 * 7.75% due 2024: 259,839,000 * Converts: 154,449,000 Capital Research and Management 399 Park Ave., 33th Fl. New York, NY 10022 * 9.0% due 2021: 54,006,000 * 7.75% due 2024: 32,185,000 * Equity: 60,000 shares GoldenTree Asset Management, LP 300 Park Ave., 21st Fl. New York, NY 10022 * 9.0% due 2021: 18,500,000 * 9.25% due 2022: 157,346,000 * 7.75% due 2024: 60,924,000 * 7.5% due 2024: 14,000,000 Cyrus Capital Partners, LP 65 East 55th St. 35th Fl. New York, NY 10022 * 9.0% due 2021: 93,410,000 * 9.25% due 2022: 2,336,000 Keyframe Capital Partners, L.P. 65 East 55th St. 35th Fl. New York, NY 10022 * 9.0% due 2021: 7,981,000 * 9.25% due 2022: 2,619,000 Aristeia Capital One Greenwich Plaza, 3rd Fl. Greenwich, CT 06830 * 9.0% due 2021: 29,553,000 * 9.25% due 2022: 24,780,000 * 7.75% due 2024: 18,828,000 * Converts: 11,776,000 * 5.50% due 2022: 172,000 * 4.625% 2023: 12,216,000 * Equity: 30,101,336 shares Nomura Corporate Research and Asset Management, Inc. 309 West 49th St. New York, NY 10019-7316 * 9.0% due 2021: 32,925,000 * 9.25% due 2022: 10,000 * 7.75% due 2024: 2,090,000 * Converts: 10,481,000 FS/EIG Advisor, LLC 600 New Hampshire Ave NW, Ste 1200 Washington, DC 20037 * 9.25% due 2022: 42,341,000 J.P. Morgan Investment Management Inc. 1 E Ohio St Indianapolis, IN 46204 * 9.0% due 2021: 14,522,000 * 9.25% due 2022: 31,791,000 AllianceBernstein, LP 1345 Avenue of the Americas New York, NY 10105 * 9.0% due 2021: 287,000 * 9.25% due 2022: 24,723,000 * 7.75% due 2024: 13,306,000 Counsel to the Ad Hoc Committee can be reached at: John F. Higgins, Esq. PORTER HEDGES LLP 1000 Main St., 36th Floor Houston, TX 77002 Telephone: (713) 226-6000 Facsimile: (713) 228-1331 Email: jhiggins@porterhedges.com - and - Andrew Rosenberg, Esq. Elizabeth McColm, Esq. Michael Turkel, Esq. PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1285 Avenue of the Americas New York, NY 10019 Telephone: (212) 373-3000 Facsimile: (212) 757-3990 Email: arosenberg@paulweiss.com emccolm@paulweiss.com mturkel@paulweiss.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/i4qeYv About Denbury Headquartered in Plano, Texas, Denbury Resources Inc. -- http://www.denbury.com/-- is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. The Company's goal is to increase the value of its properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to CO2 enhanced oil recovery operations. As of March 31, 2020, the Company had $4.61 billion in total assets, $258.72 million in total current liabilities, $2.86 billion in total long-term liabilities, and $1.49 billion in total stockholders' equity. Denbury received on March 5, 2020 formal notice from the New York Stock Exchange that the average closing price of the Company's shares of common stock had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE. The NYSE notification does not affect Denbury's ongoing business operations or its U.S. Securities and Exchange Commission reporting requirements, nor does it trigger any violation of its debt obligations. Denbury is considering all available options to regain compliance with the NYSE's continued listing standards, which may include a reverse stock split, subject to approval of the Company's board of directors and stockholders. DIAMOND OFFSHORE: Egan-Jones Withdraws D Senior Unsecured Ratings ----------------------------------------------------------------- Egan-Jones Ratings Company, on July 31, 2020, withdrew its 'D' foreign currency and local currency senior unsecured ratings on debt issued by Diamond Offshore Drilling, Inc. Headquartered in Houston, Texas, Diamond Offshore Drilling, Inc. is a global offshore oil and gas drilling contractor. EARTH FARE: Eight Stores to Reopen With New Owner ------------------------------------------------- Michael Browne, writing for Supermarket News, reports that natural grocery chain Earth Fare will reopen under new owner Hulsing Enterprises. Investment group Hulsing Enterprises plans to grow the natural grocer, which closed due to bankruptcy in February 2020. The Earth Fare retail banner lives to see another day. The natural grocery chain, which filed for bankruptcy and shuttered operations in February, is being given a new lease on life through an investment from Hulsing Enterprises and its president and CEO, Dennis Hulsing, an Asheville, N.C., businessman with a number of interests in hotels and real estate. Hulsing, along with the original Earth Fare founder Randy Talley and Mike Cianciarulo, a former president of Earth Fare, have joined together in the revitalization of the brand, with Talley now serving as the company's chief sustainability officer. Hulsing has also brought on David Isinghood as chief operating officer for Earth Fare. Isinghood spent 25 years of his career working for Whole Foods Market before joining the team. "Our guests will recognize many friendly faces as we've hired previous Earth Fare team members back," said Isinghood. "We are committed to taking care of our team members by treating them with respect and giving them a voice in our business." Westgate Earth Fare in Asheville, the first of the reopened stores, began welcoming customers on June 22. According to Hulsing, the Asheville location is the first of eight Earth Fare stores to open, with the new leadership team planning to open the remaining locations over the next few months. Hulsing intends to continue to grow the stores throughout the southeast region and keep its headquarters rooted in Asheville. "We are looking forward to the reopening of stores in Boone, N.C..; Athens, Ga.; and Summerville, Charleston, Columbia and Rock Hill, S.C," Hulsing said. Upon filing for bankruptcy, Earth Fare had about 3,000 employees and 50 stores in 10 states, including Alabama, Florida, Georgia, Indiana, Michigan, North Carolina, Ohio, South Carolina, Tennessee and Virginia. More than half of the are in Florida (14) and North Carolina (13). Most of the properties were sold during a bidding process in March and April, with former Earth Fare sites going to retailers such as Southeastern Grocers, Aldi and Whole Foods, in addition to those sold to Hulsing. About Earth Fare Founded in 1975 in Asheville, N.C., Earth Fare, Inc. -- http://www.earthfare.com/-- is a natural and organic food retailer with locations across 10 states. It offers groceries and wellness and beauty products. Earth Fare and its affiliate, EF Investment Holdings, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-10256) on Feb. 4, 2020. At the time of the filing, the Debtors each disclosed assets of between $100 million and $500 million and liabilities of the same range. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP as legal counsel; FTI Consulting, Inc. as financial and restructuring advisor; and Epiq Corporate Restructuring, LLC as claims, solicitation and balloting agent. Malfitano Advisors, LLC provides disposition advisory services to the Debtors. The U.S. Trustee for Region 3 appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Earth Fare, Inc. and EF Investment Holdings, Inc. The Committee retained Pachulski Stang Ziehl & Jones LLP, as counsel, and Alvarez & Marsal North America, LLC, as financial advisor. ECS REFINING: Stockton, Cal. Assets Sold at Auction --------------------------------------------------- Slone Fox, writing for Recycling Product News, reports that more than 95 percent of assets have been sold by Tiger Group and partners Aaron Equipment, Rosen Systems and Perry Videx in a recent online auction for the assets of bankrupt e-waste recycling specialist, ECS Refining's former multi-medium recycling plant in Stockton, California. The event drew 202 registrants from the U.S., Canada, the Dominican Republic, Guatemala, Ireland, Jordan, Mexico, Romania, Trinidad and Tobago, and United Arab Emirates. In the end, the 262,000-square-foot facility's assets were purchased by 67 buyers from the U.S., Canada and Mexico. "We were very pleased with the results, with the number of registrants, the sell-through percentage and revenues all exceeding our expectations," said John Coelho, Senior Director at Tiger Group. "Given current challenges in the recycling market, we were extremely satisfied with the level of participation from both end-users and dealers. Any remaining assets will be disposed through private sales." He went on to note that facility's most valuable asset, an e-waste line, was offered to buyers on both a bulk and piecemeal basis. "This generated significant bidding. In the end, the bulk buyer prevailed, delivering a higher price than the piecemeal bidders combined. The buyer will be reassembling the line in their East Coast facility," Coelho said. ECS filed for Chapter 11 bankruptcy protection in 2018 and subsequently closed Stockton and two other plants across the country. The Stockton facility included process lines for e-waste, TVs, glass and wood, along with forklifts, electric walk/ride low-lift pallet trucks and other material-handling equipment, office furniture and equipment. About ECS Refining ECS Refining, Inc. -- https://www.ecsrefining.com/ -- offers a full suite of IT asset management and disposition solutions. It provides national brand protection solutions for environmental services, IT asset management, data protection and end-of-life electronic recycling services. ECS was founded in 1980 by Jim and Ken Taggart as a processor of post-manufacturing scrap and residues for OEMs in the Silicon Valley. As the electronics industry enjoyed rapid growth and manufacturing operations were outsourced to other parts of the world, ECS adapted by shifting its focus to processing post-consumer electronics. The company has locations in Rogers, Arizona; Santa Clara, California; Santa Fe Springs, California; Stockton, California; Columbus, Ohio; Medford, Oregon; Portland, Oregon; and Mesquite, Texas. ECS Refining sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal. Case No. 18-22453) on April 24, 2018. In the petition signed by Jack Rockwood, president, the Debtor was estimated to have assets of $1 million to $10 million and liabilities of $10 million to $50 million. Judge Robert S. Bardwil oversees the case. The Debtor tapped Snell & Wilmer LLP as its legal counsel; Ringstad & Sanders LLP as special counsel; and MCA Financial Group, Ltd., as its financial advisor. W. Donald Gieseke was appointed as the Chapter 11 Trustee. The Trustee hired Felderstein Fitzgerald Willoughby & Pascuzzi LLP as his legal counsel. ENTEGRIS INC: Egan-Jones Cuts Foreign Currency Unsec. Rating to BB ------------------------------------------------------------------ Egan-Jones Ratings Company, on July 29, 2020, downgraded the foreign currency unsecured rating on debt issued by Entegris, Inc. to BB from BB+. Headquartered in Billerica, Massachusetts, Entegris, Inc. provides materials management products and services to the microelectronics industry on a worldwide basis. ENTREC CORP: CCAA Stay Period Extended Until Sept. 11 ----------------------------------------------------- ENTREC Corporation on Aug. 7, 2020, disclosed that it has obtained an extension of the stay period previously granted in an order from the Court of Queen's Bench of Alberta (the "Court") in support of its restructuring efforts under the Companies' Creditors Arrangement Act (the "CCAA"). On May 15, 2020, ENTREC obtained an initial order (the "Initial Order") from the Court commencing proceedings under the CCAA. Pursuant to the Initial Order, among other things, a stay of proceedings was granted in respect of the Company and its subsidiaries to allow them to continue to operate their business without disruption while ENTREC pursues potential strategic and restructuring alternatives, which may include a sale, investment or other restructuring transaction under Court supervision for the benefit of its stakeholders (the "Restructuring"). The Company also sought and received an immediate provisional recognition of the Initial Order in the United States under Chapter 15 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, USA (the "US Bankruptcy Court"). On May 25, 2020, ENTREC obtained an order that amended and restated the Initial Order of the Court to, among other things, extend the stay period provided by the Initial Order to August 7, 2020. On August 6, 2020, ENTREC obtained another order to, among other things, further extend the stay period provided by the Initial Order to September 11, 2020. As required by the CCAA, pursuant to the Initial Order, Alvarez & Marsal Canada Inc. (the "Monitor") has been appointed as Monitor of the Company (including its subsidiaries) in its CCAA proceedings. The duties and powers of the Monitor are outlined in the Initial Order and the CCAA. Materials publicly filed in the CCAA proceedings, including copies of the Initial Order and the Restructuring, will be made available on the Monitor's website at http://www.alvarezandmarsal.com/entrec. About ENTREC Corp. Alberta, Canada-based ENTREC Corporation -- http://www.entrec.com/--provides heavy lift and specialized transportation services with offerings encompassing crane services, heavy haul transportation, engineering, logistics and support. It is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining, and power generation industries. It specializes in transporting oversized and overweight loads in Canada and the U.S. ENTREC's core businesses consist of Alberta-based Capstan Hauling and ENT Oilfield Group, and Texas-based ENTREC Cranes & Heavy Haul. The company has a fleet of 115 tractors and 125 cranes and picker trucks. ENTREC specializes in moving oversized and overweight loads. ENTREC filed for creditor protection in the Court of Queen's Bench of Alberta Judicial Centre Calgary under Canada's Companies' Creditors Arrangement Act on May 14, 2020. ALVAREZ & MARSAL CANADA INC. is the monitor in the CCAA proceedings. NORTON ROSE FULBRIGHT US LLP is the Canadian counsel for the monitor. ENTREC Corporation and its affiliates filed Chapter 15 petitions (Bankr. S.D. Tex. Lead Case No. 20-32643) on May 15, 2020, to seek U.S. recognition of the CCAA proceedings. The Hon. Marvin Isgur is the U.S. judge. HUNTON ANDREWS KURTH LLP is the Debtors' U.S. counsel. EQUITABLE HOLDINGS: Moody's Rates Preferred Stock 'Ba1(hyb)' ------------------------------------------------------------ Moody's Investors Service has assigned a Ba1(hyb) rating to Equitable Holdings, Inc.'s (senior debt Baa2 stable) anticipated issuance of up to $500 million of Series B non-cumulative preferred stock. Proceeds from the offering will be used for general corporate purposes. The outlook on Equitable and its insurance subsidiaries remains stable. RATINGS RATIONALE The Baa2 senior unsecured debt rating on Equitable and the A2 insurance financial strength ratings of its insurance company subsidiaries are based on Equitable's well-established positions in individual annuity and life insurance, particularly in the individual retirement, life insurance, 403(b) savings and estate planning markets. The ratings also reflect Equitable's utilization of diversified distribution channels including a strong captive agency force, as well as its diversified earnings that benefit from economies of scale and solid capital. These strengths are partially mitigated by a business profile with a concentration on the liability side of a legacy portfolio of variable annuities with guaranteed benefits. While Equitable has lowered the risk profile of its VA and universal life with secondary guarantees segments by concentrating new sales in de-risked products, and has substantial hedging, it still has exposure to earnings, capital management and asset liability management challenges associated with its large block of VAs with long-term guarantees. The Ba1(hyb) rating on the preferred securities reflects Moody's typical notching for instruments issued by insurers relative to their IFS and senior debt ratings. Moody's believes that the coronavirus-driven economic downturn and ultra-low interest rates will stress most aspects of life insurers' financials, including those of Equitable. This includes sales, investment income, reserves and capital adequacy. Most life insurers, including Equitable, start with healthy capital and asset quality to weather this storm over the near term, but these conditions will weaken their creditworthiness if they persist. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The following could result in an upgrade of the ratings of Equitable's ratings: 1) Successful execution of the operation of the US business as a standalone entity, reflected by sustained sales; 2) Return-on-capital consistently greater than 8%; and 3) Successful runoff of legacy business. Conversely, the following could result in a downgrade of Equitable's ratings: 1) Consolidated RBC ratio falling below 350% (on a company action level basis); and 2) Cash flow coverage and earnings coverage consistently below 3x and 5x, respectively. The following rating was assigned: Equitable Holdings, Inc. – preferred non-cumulative, assigned Ba1(hyb). The outlook on Equitable and its affiliates remains stable. The principal methodology used in this rating was Life Insurers Methodology published in November 2019. Equitable Holdings is headquartered in New York and provides mainly life insurance, annuities and investment management products. As of June 30, 2020, Equitable Holdings reported total assets of $254.1 billion and total equity of $19.1 billion. EYEPOINT PHARMACEUTICALS: Incurs $13M Net Loss in Second Quarter ---------------------------------------------------------------- EyePoint Pharmaceuticals, Inc., filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss of $12.95 million on $4.12 million of total revenues for the three months ended June 30, 2020, compared to a net loss of $11.50 million on $7.21 million of total revenues for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss of $26.12 million on $11.61 million of total revenues compared to a net loss of $30.74 million on $9.22 million of total revenues for the same period in 2019. "We were encouraged by the re-opening of healthcare facilities in select regions of the U.S during the quarter-end as underlying customer demand from our distributors was strong in June for both YUTIQ and DEXYCU. We believe the distinct advantages of single-injection, long-lasting activity provides for fewer office visits and less contact with patient eyes and positions both products for expanded use during the COVID-19 pandemic and recovery," said Nancy Lurker, president and chief executive officer of EyePoint Pharmaceuticals. "We are also very excited to announce our new U.S. commercial alliance with ImprimisRx for DEXYCU and believe that this collaboration will significantly enhance the DEXYCU opportunity by reaching new physicians and ambulatory surgery centers, while also pairing DEXYCU with Harrow's complementary ophthalmology drug offerings. In addition to increased physician reach, this agreement keeps our commercial cost structure at our previously announced reduced levels. As we continue to further build our commercial efforts and product education initiatives, we remain very focused on our balance sheet and continue to actively manage our spending burn rate as we look to extend our cash runway into 2021." Ms. Lurker continued, "Our new Chief Strategic Scientific Officer, Dr. Jay Duker, will lead our development efforts for EYP-1901, a potential six-month sustained delivery anti-VEGF therapy using our bioerodible Durasert technology. The good laboratory practice (GLP) toxicology study for this program is progressing well and we expect data in the coming months to support filing of an Investigational New Drug (IND) application in the fourth quarter. We are very excited to advance this program to potentially treat wet age-related macular degeneration (wet AMD), a significant market in need of innovative, long-lasting therapies." As of June 30, 2020, the Company had $69.68 million in total assets, $65.50 million in total liabilities, and $4.18 million in total stockholders' equity. Cash and cash equivalents at June 30, 2020 totaled $22.8 million compared to $22.2 million at Dec. 31, 2019. EyePoint stated that, "The Company has a history of operating losses and has not had significant recurring cash inflows from revenue. The Company's operations have been financed primarily from sales of its equity securities, issuance of debt and a combination of license fees, milestone payments, royalty income and other fees received from its collaboration partners. In the first quarter of 2019, the Company commenced the U.S. launch of its first two commercial products, YUTIQ and DEXYCU. However, the Company has not received sufficient revenues from its product sales to fund operations and the Company does not expect revenues from its product sales to generate sufficient funding to sustain its operations in the near-term. As of June 30, 2020, the Company has had recurring operating losses since its inception and has an accumulated deficit of approximately $491.4 million and working capital of $30.2 million. The Company had cash and cash equivalents of $22.8 million at June 30, 2020. "Accordingly, the foregoing conditions, taken together, continue to raise substantial doubt about the Company's ability to continue as a going concern for one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty." A full-text copy of the Form 10-Q is available for free at: https://is.gd/JCfEJa About EyePoint Pharmaceuticals EyePoint Pharmaceuticals, formerly pSivida Corp. -- http://www.eyepointpharma.com/-- headquartered in Watertown, MA, is a specialty biopharmaceutical company committed to developing and commercializing innovative ophthalmic products in indications with high unmet medical need to help improve the lives of patients with serious eye disorders. The Company currently has two commercial products: DEXYCU, the first approved intraocular product for the treatment of postoperative inflammation, and YUTIQ, a three-year treatment of chronic non-infectious uveitis affecting the posterior segment of the eye. Eyepoint reported a net loss of $56.79 million for the year ended Dec. 31, 2019. For the six months ended Dec. 31, 2018, the Company reported a net loss of $44.72 million. As of March 31, 2020, the Company had $80.29 million in total assets, $63.82 million in total liabilities, and $16.47 million in total stockholders' equity. Deloitte & Touche LLP, in Boston, Massachusetts, the Company's auditor since 2008, issued a "going concern" qualification in its report dated March 13, 2020, citing that the combination of the Company's limited currently available cash, cash equivalents and available borrowings, together with its history of losses, and the uncertainty in timing of cash receipts from its newly launched products raise substantial doubt about the Company's ability to continue as a going concern. EYEPOINT PHARMACEUTICALS: Inks Alliance Agreement with ImprimisRx ----------------------------------------------------------------- EyePoint Pharmaceuticals, Inc, entered into a Commercial Alliance Agreement with ImprimisRx, LLC, a wholly-owned subsidiary of Harrow Health, Inc., pursuant to which the Company granted Imprimis the non-exclusive right to co-promote DEXYCU (dexamethasone intraocular suspension) 9% for the treatment of post-operative inflammation following ocular surgery in the U.S. Pursuant to the Agreement, the Company will pay Imprimis a fee calculated based on the quarterly sales of DEXCYU in excess of predefined volumes to customers of Imprimis in the U.S. The co-promotion of DEXCYU in the U.S. will be supervised by a (i) a commercialization committee and (ii) a joint steering committee, each composed of an equal number of representatives from the Company and Imprimis. Under the terms of the Agreement, Imprimis shall use commercially reasonable efforts to promote and market DEXCYU in the U.S. Imprimis has also agreed to dedicate sales representatives, sub-agents and approved contractors to promote DEXCYU on a full time basis. Subject to early termination, the Agreement expires on Aug. 1, 2025. Subject to specified notice periods and specified limitations, either party may terminate the Agreement in the event of (i) uncured material breach by the other party or (ii) if DEXCYU ceases to have "pass-through" payment status. In addition, subject to certain limitations, Imprimis may terminate the Agreement (i) for convenience subject to an extended specified notice period or (ii) in the event the Company undergoes a change of control. The Company may terminate the Agreement, subject to specified notice periods and specified limitations, if Imprimis fails to achieve certain minimum sales levels during specified periods. About EyePoint Pharmaceuticals EyePoint Pharmaceuticals, formerly pSivida Corp. -- http://www.eyepointpharma.com/-- headquartered in Watertown, MA, is a specialty biopharmaceutical company committed to developing and commercializing innovative ophthalmic products in indications with high unmet medical need to help improve the lives of patients with serious eye disorders. The Company currently has two commercial products: DEXYCU, the first approved intraocular product for the treatment of postoperative inflammation, and YUTIQ, a three-year treatment of chronic non-infectious uveitis affecting the posterior segment of the eye. Eyepoint reported a net loss of $56.79 million for the year ended Dec. 31, 2019. For the six months ended Dec. 31, 2018, the Company reported a net loss of $44.72 million. As of June 30, 2020, the Company had $69.68 million in total assets, $65.50 million in total liabilities, and $4.18 million in total stockholders' equity. Deloitte & Touche LLP, in Boston, Massachusetts, the Company's auditor since 2008, issued a "going concern" qualification in its report dated March 13, 2020, citing that the combination of the Company's limited currently available cash, cash equivalents and available borrowings, together with its history of losses, and the uncertainty in timing of cash receipts from its newly launched products raise substantial doubt about the Company's ability to continue as a going concern. EYEPOINT PHARMACEUTICALS: Signs $25M Sales Agreement with Cantor ---------------------------------------------------------------- EyePoint Pharmaceuticals, Inc., entered into a Controlled Equity OfferingSM Sales Agreement with Cantor Fitzgerald & Co., as sales agent, pursuant to which the Company may offer and sell, from time to time, through Cantor Fitzgerald, shares of the Company's common stock, par value $0.001 per share, having an aggregate offering price of up to $25.0 million. The Shares will be offered and sold pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-228581). Subject to the terms and conditions of the Sales Agreement, Cantor Fitzgerald will use its commercially reasonable efforts to sell the Shares from time to time, based upon the Company's instructions. The Company has provided Cantor Fitzgerald with customary indemnification rights, and Cantor Fitzgerald will be entitled to a commission of 3.0% of the gross proceeds from each sale of the Shares. About EyePoint Pharmaceuticals EyePoint Pharmaceuticals, formerly pSivida Corp. -- http://www.eyepointpharma.com/-- headquartered in Watertown, MA, is a specialty biopharmaceutical company committed to developing and commercializing innovative ophthalmic products in indications with high unmet medical need to help improve the lives of patients with serious eye disorders. The Company currently has two commercial products: DEXYCU, the first approved intraocular product for the treatment of postoperative inflammation, and YUTIQ, a three-year treatment of chronic non-infectious uveitis affecting the posterior segment of the eye. Eyepoint reported a net loss of $56.79 million for the year ended Dec. 31, 2019. For the six months ended Dec. 31, 2018, the Company reported a net loss of $44.72 million. As of June 30, 2020, the Company had $69.68 million in total assets, $65.50 million in total liabilities, and $4.18 million in total stockholders' equity. Deloitte & Touche LLP, in Boston, Massachusetts, the Company's auditor since 2008, issued a "going concern" qualification in its report dated March 13, 2020, citing that the combination of the Company's limited currently available cash, cash equivalents and available borrowings, together with its history of losses, and the uncertainty in timing of cash receipts from its newly launched products raise substantial doubt about the Company's ability to continue as a going concern. FARM-RITE LLC: Case Summary & 25 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Farm-Rite, LLC 122 Old Cohansey Road Bridgeton, NJ 08302 Business Description: Farm-Rite, LLC -- http://www.farm-rite.com -- is a full-service dealer of agricultural, construction, and irrigation equipment. Farming equipment includes tractors, combines, sprayers, spreaders, mowers, hay & forage, and harvesters. Construction equipment includes backhoe loaders, wheel loaders, excavators, telescopic handlers, rough-terrain forklifts, skid steers, compact track loaders, and articulated dump trucks. Irrigation equipment includes pivots, linears, reel travelers, drip systems, custom pumps, remote monitoring, and pipe and fittings. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court District of New Jersey Case No.: 20-19379 Judge: Hon. Jerrold N. Poslusny Jr. Debtor's Counsel: Arthur J. Abramowitz, Esq. SHERMAN SILVERSTEIN KOHL ROSE & PODOLSKY 308 Harper Drive Suite 200 Moorestown, NJ 08057 Tel: 856-662-0700 Email: aabramowitz@shermansilverstein.com Debtor's Accountant: KARPAC & COMPANY Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Donald C. Strang, president. A copy of the petition is available for free at PacerMonitor.com at: https://is.gd/sl8pp9 List of Debtor's 25 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. Donald C. Strang $521,752 1155 Sassafrass Shore Rd Pittsgrove, NJ 08318 Email: dc.strang@farm-rite.com 2. Chambers American Products $322,520 2576 Ditney Trail Pioneer, TN 37847 Email: capmowers@highland.net 3. Patricia Omura $265,000 15 Laura Lane Pittsgrove, NJ 08318 4. Cynthia Strang $260,000 520 North Main Street Elmer, NJ 08318 Email: castrang@comcast.net 5. Heritage Hill Estates $226,924 3730 South Delsea Drive Vilenald, NJ 08360 Email: frankcarpino@comcast.net 6. Kim Hitchner $155,000 380 Jefferson Road, Elmer, NJ 08318 7. Debra Martin $140,000 112 Smortz Lane Glassboro, NJ 08028 Email: fudd99_1999@yahoo.com 8. Judy Omura $133,024 15 Laura Lane Pittsgrove, NJ 08318 9. P3853-3853 LLC $127,409 PO Box 840 East Quogue, NY 11942 Email: jbtintle@gmail.com 10. Robert Mayhew $109,976 813 columbia Highway Bridgeton, NJ 08302 11. Rodio Properties $100,000 2836 Bay Ave Ocean City, NJ 08226 Email: butchrodio@rodiotractor.com 12. CDL Realty $75,000 450 North Laurel Street Bridgeton, NJ 08302 Email: cdlreality@verizon.net 13. Kennedy Concrete $67,500 1969-83 S East Ave Vineland, NJ 08360 Email: sales@kennedyconcretenj.com 14. Selective Insurance $60,000 Box 371468 Pittsburgh, PA 15250 Email: Cust.Relations@selective.com 15. Montage Enterprises $55,000 PO Box 631 Blairstown, NJ 07825 Email: nan@montageent.com 16. Horizon Blue Cross Blue Shield $51,637 PO Box 10130 Newark, NJ 07101 Email: Jacqueline_Mejia@horizonblue.com 17. Roger Theberge $50,000 3853 Middle Country Road Calverton, NY 11933 Email: rtheberge@farm-rite.com 18. Diamond Mowers $45,826 PO Box 85030 Sooux Falls SD 57118 Email: info@diamondmowers.com 19. KPM Exceptional LLC $44,224 One Execptional Way Landing, NJ 07850 Email: accounting@kpmedi.com 20. Maschio-Gaspardo North America $35,588 112 3rd Ave East Dewitt IA 52742 Email: info@maschio.com 21. PLE015 - LEPCO $33,971 PO Box 8290 Lancaster, PA 17604 Email: dkauffman@lepco.com 22. PJ0012 - John Deere Financial $29,199 PO Box 4450 Carol Stream, IL 60197 Email: jdfcustomerservice@johndeere.com 23. PXC001 - XCAD USA Valve & Irriga $29,120 PO Box 578 Paul ID 83347 Email: xcad@pmt.org 24. BDI Machiner - BDI Machinery $20,872 52 Race Street Macungie PA 18062 Email: buydirect@bdimachinery.net 25. PCA017 - Case IH - Credit Credit Card $19,223 1820 E Sky Harbor Circle S Ste 150 Phoenix, AZ 85034 Email: nacustomerserviceaccount@cnhind.com FASTTRACK FOODS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Fasttrak Foods, LLC 45585 Commerce St. Indio, CA 92201 Business Description: Fasttrak Foods, LLC -- http://www.fasttrakfoods.com-- is a California based, family owned, privately held business manufacturer of a broad range of snacks and brands. Its products include popcorn, puffed chips, trail mix, and extruded snacks. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Central District of California Case No.: 20-15400 Judge: Hon. Mark D. Houle Debtor's Counsel: Crystle, J. Lindsey, Esq. WEINTRAUB & SELTH, APC 11766 Wilshire Boulevard Suite 1170 Los Angeles, CA 90025 Tel: (310) 207-1494 Email: crystle@wsrlaw.net Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Steven Hamilton, manager. A full-text 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/AfMiQP FAT BRANDS I: DBRS Keeps BB Rating on Cl. A-2 Notes Under Review ---------------------------------------------------------------- DBRS, Inc. maintained the Under Review with Negative Implications status on the BB (sf) and B (sf) ratings on the Class A-2 and Class B-2 Notes, respectively, issued by FAT Brands Royalty I, LLC. Both classes of securities were placed Under Review with Negative Implications on April 22, 2020. Maintaining the Under Review with Negative Implications status on the notes considers DBRS Morningstar's set of macroeconomic scenarios for select economies related to the coronavirus, available in its commentary "Global Macroeconomic Scenarios: July Update," published on July 22, 2020. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which were last updated on July 22, 2020, and are reflected in DBRS Morningstar's analysis. The moderate scenario assumes some success in containment of the Coronavirus Disease (COVID-19) within Q2 2020 and a gradual relaxation of restrictions, enabling most economies to begin a gradual economic recovery in Q3 2020. The resurgence of cases of coronavirus across certain states presents continued uncertainty. New business closures in states experiencing upticks in coronavirus cases could potentially delay reopening and revenue recovery efforts, particularly for the restaurant industry, which relies on on-premises dining as an important component to drive revenue generation. Consequently, DBRS Morningstar expects the performance of certain whole-business securitization transactions to be negatively affected. When a rating is placed Under Review with Negative Implications, DBRS Morningstar seeks to complete its assessment and remove the rating from this status as soon as appropriate. Upon the resolution of the Under Review status, DBRS Morningstar may confirm or downgrade the ratings on the affected classes. FR TNT: Enters Into Restructuring Support Agreement --------------------------------------------------- FR TNT Holdings LLC and certain of its affiliates on Aug. 4, 2020, disclosed that they have entered into a restructuring support agreement (the "RSA") with holders of more than 73% in principal amount of the Company's first lien secured loans and 75% in principal amount of its second lien secured loans, along with certain other supporting parties, to execute a transaction that will de-lever and financially strengthen the Company. Through the transaction, TNT will recapitalize and gain new liquidity in the form of a new $225 million term loan provided by the Company's first lien lenders. All operations will continue as usual without interruption. TNT's executive leadership team, which remains focused on the Company's operational performance, is expected to remain in place. The Company is seeking to implement the transaction through a debt-for-equity exchange (the "Exchange"), which the lenders party to the RSA have agreed to accept. All the Company's first lien and second lien lenders will be solicited for the Exchange. The Exchange will only be consummated with the participation of 100% of the first lien and second lien lenders. Simultaneously with the solicitation of the Exchange, TNT will also solicit votes on a prepackaged plan of reorganization (the "Prepackaged Plan") through cases under chapter 11 of the United States Bankruptcy Code, which will be commenced in August 2020 in the event the Company is unable to achieve 100% support for the Exchange. This dual-track approach, with significant lender support, will enable TNT to swiftly and definitively recapitalize its balance sheet with no impact to the majority of the Company's stakeholders. All parties to the RSA have already agreed to support the Prepackaged Plan, the terms of which are substantially the same as the Exchange and similarly provide for operations to continue as usual without interruption, with employees, suppliers, vendors, contract counterparties and other trade creditors to be paid in full in the ordinary course. The Company has secured commitments from certain of its first lien lenders for an additional $45 million debtor-in-possession financing, which, in addition to TNT's normal operating cash flows, will help fund the process and ensure the Company is able to operate as usual during the chapter 11 proceedings, if the transaction is implemented through a Prepackaged Plan. "This restructuring is a positive outcome that will bolster TNT's financial strength and support our operations for the future. We are grateful to the lead members of our term loan group for working closely with us to prepare the consensual transaction and for the confidence demonstrated by their support. This consensual transaction will position TNT on firm financial footing with a healthier balance sheet. TNT will continue to operate seamlessly with an unwavering focus on safety and customer experience and no impact to our employees, customers and vendors," said Michael Appling Jr., Chief Executive Officer of TNT. "We are looking forward to working with the new ownership group to continue as North America's leader in providing safe, reliable lifting services as we grow alongside our customers." Solicitation of the Exchange and the Prepackaged Plan is expected to commence imminently. Through the transaction, the Company's first lien lenders will receive $100 million in exit term loans and 97% of the equity in reorganized TNT (subject to dilution). The Company's second lien lenders will receive the remaining equity in reorganized TNT and warrants that may be exercised for up to 5% of the equity in reorganized TNT (subject to dilution by a management incentive plan). All existing secured loans will be retired. TNT is represented by Simpson Thacher & Bartlett LLP and Young Conaway Stargatt & Taylor, LLP, as legal co-counsels, Miller Buckfire & Co., LLC and Stifel, Nicolaus & Co., Inc., as financial advisor and investment banker, and FTI Consulting, Inc. as financial advisor. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. About TNT TNT is a crane services platform that provides operated and maintained ("O&M") crane services and comprehensive lifting services to a broad customer base across multiple sites, with a diversified end market exposure. As a provider of O&M services, the Company supplies its customers with highly skilled operators, technical expertise and project engineering and design in connection with its lifting services. GENESIS VENTURE: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Genesis Venture Logistics, L.L.C. 10 St. Ann Drive Mandeville, LA 70471 Business Description: Genesis Venture Logistics, L.L.C. -- https://genesisventurelogistics.com -- provides customized 3PL/4PL multi-modal transportation management solutions to domestic and international customers in the aggregates, government, industrial construction, oil & gas, ores & minerals, and petrochemical sectors. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Eastern District of Louisiana Case No.: 20-11419 Debtor's Counsel: Greta M. Brouphy, Esq. HELLER, DRAPER, PATRICK, HORN & MANTHEY LLC 650 Poydrass Street Suite 2500 New Orleans, LA 70130 Tel: 504-299-3300 Email: gbrouphy@hellerdraper.com Debtor's Accountant: KUSHNER LAGRAIZE, LLC Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Lorraine Hyde, manager/member. A copy of the petition is available for free at PacerMonitor.com at: https://is.gd/SHq1RE GLOBAL ASSET: Hires Genovese Joblove as Counsel ----------------------------------------------- Global Asset Rental, LLC f/k/a Global Keg Rental, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Florida to employ Genovese Joblove & Battista, P.A., as counsel to the Debtor. Global Asset requires Genovese Joblove to: (a) advise the Debtor with respect to its powers and duties as debtor and debtor-in-possession in the continued management and operation of its business and properties; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest and advise and consult on the conduct of the cases, including all of the legal and administrative requirements of operating in Chapter 11; (c) advise the Debtor in connection with any contemplated sales of assets or business combinations, including the negotiation of sales promotion, liquidation, stock purchase, merger or joint venture agreements, formulate and implement bidding procedures, evaluate competing offers, draft appropriate corporate documents with respect to the proposed sales, and counsel the Debtor in connection with the closing of such sales; (d) advise the Debtor in connection with post-petition financing and cash collateral arrangements, provide advice and counsel with respect to pre-petition financing arrangements, and provide advice to the Debtor in connection with the emergence financing and capital structure, and negotiate and draft documents relating thereto; (e) advise the Debtor on matters relating to the evaluation of the assumption, rejection or assignment of unexpired leases and executory contracts, including the obligations of the Debtor under Section 1110 of the Bankruptcy Code; (f) provide advice to the Debtor with respect to legal issues arising in or relating to the Debtor's ordinary course of business including attendance at senior management meetings, meetings with the Debtor's board of directors, and advice on employee, workers' compensation, employee benefits, labor, tax, insurance, securities, corporate, business operation, contracts, joint ventures, press/public affairs and regulatory matters; (g) take all necessary action to protect and preserve the Debtor's estate, including the prosecution of actions on its behalf, the defense of any actions commenced against the estates, negotiations concerning all litigation in which the Debtor may be involved and objections to claims filed against the estate; (h) prepare on behalf of the Debtor all motions, applications, answers, orders, reports and papers necessary to the administration of the estate; (i) negotiate and prepare on the Debtor's behalf a plan of reorganization, disclosure statement and all related agreements and/or documents, and take any necessary action on behalf of the Debtor to obtain confirmation of such plan; (j) attend meetings with third parties and participate in negotiations with respect to the above matters; (k) appear before this Court, any appellate courts, and the U.S. Trustee, and protect the interests of the Debtor's estate before such courts and the U.S. Trustee; and (l) perform all other necessary legal services and provide all other necessary legal advice to the Debtor in connection with this Chapter 11 case. Genovese Joblove will be paid at these hourly rates: Paul J. Battista $675 Mariaelena Gayo-Guitian $550 Heather Harmon $525 On May 27, 2020, after Genovese Joblove received a retainer related to the filing of a potential bankruptcy case in the amount of $300,000, Genovese Joblove had on deposit in its trust account a total retainer in an amount equal to $335,253.06. On June 9, 2020, Genovese Joblove paid invoices related to the Debtor's workout with its secured lender and the various litigation matters from the retainer in the aggregate amount of $53,770.05, which left a retainer balance in the amount of $281,483.01. On June 16, 2020, Genovese Joblove received a subsequent bankruptcy related retainer from the Debtor in the amount of $200,000, bringing Genovese Joblove's total prepetition retainer as of such date to $481,483.01 (the "Prepetition Retainer"). On July 9, 2020 and July 23, 2020, prior to the filing of the voluntary petition commencing this chapter 11 case, Genovese Joblove applied an amount equal to $110,000 and $65,000 respectively of the Prepetition Retainer to its pre-petition fees and expenses, including an estimate of those fees and expenses expected to be incurred through July 22, 2020 along with the Chapter 11 filing fee of $1,717 (the "Prepetition Payment"). In addition, at the direction of the Debtor, Genovese Joblove transferred an amount equal to $25,000 from the Prepetition Retainer to KapilaMukamal, LLP, to fund a portion of the retainer to Soneet R. Kapila as the chief restructuring officer for the Debtor. As a result, KapilaMukamal is holding a net retainer for this Chapter 11 case in the amount of $281,483.01. Genovese Joblove will also be reimbursed for reasonable out-of-pocket expenses incurred. Paul J. Battista, partner of Genovese Joblove & Battista, P.A., 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. Genovese Joblove can be reached at: Paul J. Battista, Esq. GENOVESE JOBLOVE & BATTISTA, P.A. 100 Southeast Second Street, 44th Floor Miami, FL 33131 Tel: (305) 349-2300 Fax: (305) 349-2310 E-mail: pbattista@gjb-law.com About Global Asset Rental, LLC f/k/a Global Keg Rental, LLC Global Asset Rental, LLC -- http://www.globalkeg.com/-- is an asset rental and logistics solutions company engaged in the business of renting plastic pallets and kegs. Global Asset Rental, LLC f/k/a Global Keg Rental, LLC, based in Orlando, FL, filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 6:20-bk-04126) on July 23, 2020. Genovese Joblove & Battista, P.A., serves as bankruptcy counsel. KapilaMukamal, LLP, as chief restructuring officer In its petition, the Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. The petition was signed by Soneet R. Kapila, chief restructuring officer. GLOBAL ASSET: Hires KapilaMukamal Partner as CRO ------------------------------------------------ Global Asset Rental, LLC f/k/a Global Keg Rental, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Florida to employ Soneet R. Kapila as KapilaMukamal, LLP, as chief restructuring officer to the Debtor. Global Asset requires KapilaMukamal to: (i) serve as chief executive officer of the Debtor, including, but not limited to, the power and authority: (a) subject to the prior approval of the Debtor's Board of Managers, to cause the Debtor to prepare for, file and prosecute a chapter 11 bankruptcy for the Debtor, (b) to cause the Debtor to comply with all of the requirements of a chapter 11 bankruptcy, (c) to deal with and otherwise make all decisions with respect to the assets and liabilities of the Debtor, (d) to engage other professionals in connection with his efforts in the chapter 11, (e) to open and close bank accounts for the Debtor, (f) to transfer funds of the Debtor, (g) to cause the Debtor to modify, amend, terminate and/or enforce its contractual rights; (h) to cause the Debtor to enter into agreements or contracts; (i) to cause the Debtor to pursue, settle or compromise any litigation, controversy or other dispute involving the Debtor, (j) to cause the Debtor to borrow funds and to pledge its assets in order to pay the working capital needs of the Debtor, (k) to cause the Debtor to exercise the Debtor's rights under the Debtor's agreements and other agreements in favor of the Debtor, and (l) to cause the Debtor to take any other action which the CRO, in good faith, determines to be necessary, prudent or appropriate under the circumstances; (ii) perform a financial review of the Debtor, including, but not limited to, a review and assessment of Debtor's assets and financial information that has been, and that will be, provided by the Debtor to the Bankruptcy Court and its creditors, including without limitation, its short and long-term projected cash flows, and shall assist the Debtor in developing, refining and implementing its business plans. The CRO shall have the power to implement such business plans in the context of and within the parameters of a chapter 11 bankruptcy; (iii) assist in the identification of cost reduction and operations improvement opportunities and the CRO shall have the power and authority to implement such cost reduction recommendations; (iv) develop possible restructuring plans or strategic alternatives for maximizing the enterprise value of the Debtor, including, if the CRO determines in his best business judgment under the circumstances, to implement a marketing and sales process with regard to the Debtor's assets, including as a going concern. The CRO shall determine which plan(s) or alternative(s) are appropriate under the circumstances and the CRO shall use commercially reasonable efforts to attempt to implement such plan(s) or alternative(s); and (v) advise and assist the Debtor in connection with communications and negotiations with its creditors and other parties in interest. KapilaMukamal will be paid at these hourly rates: Soneet R. Kapila $650 Kevin McCoy $450 Martin Bell $350 KapilaMukamal will also be reimbursed for reasonable out-of-pocket expenses incurred. Soneet R. Kapila, the founding partner of KapilaMukamal, LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. KapilaMukamal can be reached at: Soneet R. Kapila KAPILAMUKAMAL, LLP 1000 South Federal Hwy., Suite 200 Fort Lauderdale, FL 33316 Tel: (954) 761-1011 About Global Asset Rental, LLC f/k/a Global Keg Rental, LLC Global Asset Rental, LLC -- http://www.globalkeg.com/-- is an asset rental and logistics solutions company engaged in the business of renting plastic pallets and kegs. Global Asset Rental, LLC f/k/a Global Keg Rental, LLC, based in Orlando, FL, filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 6:20-bk-04126) on July 23, 2020. Genovese Joblove & Battista, P.A., serves as bankruptcy counsel. KapilaMukamal, LLP, as chief restructuring officer In its petition, the Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. The petition was signed by Soneet R. Kapila, chief restructuring officer. GNC HOLDINGS: Committee Hires Bayard P.A. as Co-Counsel ------------------------------------------------------- The Official Committee of Unsecured Creditors of GNC Holdings, Inc., and its debtor-affiliates, seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Bayard, P.A., as co-counsel to the Committee. GNC Holdings requires Bayard, P.A. to: (a) in conjunction with Lowenstein Sandler LLP, provide legal advice where necessary with respect to the Committee's powers and duties and strategic advice on how to accomplish the Committee's goals, bearing in mind that the Court relies on Delaware counsel such as the Firm to be involved in all aspects of the bankruptcy proceedings; (b) draft, review, and comment on drafts of documents to ensure compliance with local rules, practices, and procedures; (c) assist and advise the Committee in its consultation with the Debtors and the U.S. Trustee relative to the administration of these cases; (d) draft, file, and serve documents as requested by Lowenstein Sandler and the Committee; (e) assist the Committee and Lowenstein Sandler, as necessary, in the investigation (including through discovery) of the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtors' businesses, and any other matter relevant to these cases or to the formulation of a plan or plans of reorganization or liquidation; (f) compile and coordinate delivery of information to the Court and the U.S. Trustee as required by the Bankruptcy Code, Bankruptcy Rules, Local Rules, and any applicable U.S. Trustee guidelines; (g) appear in Court and at any meetings of creditors on behalf of the Committee in its capacity as co-counsel with Lowenstein Sandler; (h) monitor the case docket and coordinating with Lowenstein Sandler and Berkeley Research Group, LLC on matters impacting the Committee; (i) participate in calls with the Committee; (j) handle inquiries and calls from creditors and counsel to interested parties regarding pending matters and the general status of these cases and coordinating with Lowenstein Sandler on any necessary responses; and (k) perform all other services assigned by the Committee, in consultation with Lowenstein Sandler, to Bayard, P.A. as co-counsel to the Committee, and to the extent the Firm determines that such services fall outside the scope of services historically or generally performed by the firm as co-counsel in a bankruptcy proceeding, the Firm will file a supplemental declaration pursuant to Bankruptcy Rule 2014 and give parties in interest an opportunity to object. Bayard, P.A. will be paid at these hourly rates: Scott D. Cousins, Esq. $750 Erin R. Fay, Esq. $575 Gregory J. Flasser, Esq. $425 Scott D. Jones, Esq. $350 Kristin McCloskey (paralegal) $295 Bayard, P.A. will also be reimbursed for reasonable out-of-pocket expenses incurred. In accordance with Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the following is provided in response to the request for additional information: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response: Not applicable. Question: Has your client approved your prospective budget and staffing plan, and, if so for what budget period? Response: The Committee and their professionals are currently in the process of formulating a detailed budget that is consistent with the form of budget attached to the UST Guidelines, recognizing that in the course of cases like these Chapter 11 Cases, it is highly likely that there may be a number of unforeseen fees and expenses that will need to be addressed by the Committee and their professionals. Erin R. Fay, partner of Bayard, P.A., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Bayard, P.A. can be reached at: Erin R. Fay, Esq. Scott Cousins, Esq. BAYARD, P.A. 600 N. King Street, Suite 400 P.O. Box 25130 Wilmington, DE 19899 Tel: (302) 429-4242 E-mail: efay@bayardlaw.com scousins@bayardlaw.com About GNC Holdings GNC Holdings Inc. -- http://www.gnc.com/-- is a global health and wellness brand with a diversified omni-channel business. In its stores and online, GNC Holdings sells an assortment of performance and nutritional supplements, vitamins, herbs and greens, health and beauty, food and drink, and other general merchandise, featuring innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC Holdings. GNC Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11662) on June 23, 2020. The Debtors disclosed $1,415,957,000 in assets and $895,022,000 in liabilities as of March 31, 2020. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Latham & Watkins, LLP as legal counsel; Evercore Group, LLC as investment banker and financial advisor; FTI Consulting, Inc., as financial advisor; and Prime Clerk as claims and noticing agent. Torys LLP is the legal counsel in the Companies' Creditors Arrangement Act case. The U.S. Trustee for Region 3 appointed a committee to represent unsecured creditors in the Chapter 11 cases of GNC Holdings Inc. and its affiliates. The Committee retained Bayard, P.A., as co-counsel. Miller Buckfire & Co., LLC and its affiliate Stifel, Nicolaus & Co., Inc., as investment banker. GNC HOLDINGS: Committee Hires PwC as Tax Service Provider --------------------------------------------------------- The Official Committee of Unsecured Creditors of GNC Holdings, Inc., and its debtor-affiliates seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain PricewaterhouseCoopers LLP, as independent auditor and tax advisory service provider to the Committee. GNC Holdings requires PwC to: a) Integrated Audit. i. an integrated audit of the consolidated financial statements of GNC Holdings, Inc. at December 31, 2020 and for the year then ending and of the effectiveness of GNC Holdings, Inc.'s internal control over financial reporting as of December 31, 2020 and preparation of a report for same; and ii. reviews of GNC Holdings, Inc.'s unaudited consolidated quarterly financial information for the quarter ended June 30, 2020 and the quarter ended September 30, 2020, before the Form 10-Q is filed. b) Puerto Rico Audit. i. an audit of the financial statements of GNC Puerto Rico, LLC, which are comprised of the balance sheet at December 31, 2019 and related statements of income, members' equity, and cash flows for the year then ending and preparation of a report for same. c) Restructuring Tax. PwC will assist the Debtors by providing tax consulting services. d) International Tax. i. International assignment tax services to General Nutrition Centers, Inc. and certain employees designated by General Nutrition Centers, Inc., which services will generally include U.S. and foreign tax income return preparation, related tax compliance services, administrative support, and tax consulting services; and ii. Certain "Additional Services" including tax planning projects, preparation of reports summarizing the implications of certain compensation of benefits plans offered to expatriate and local-national employees, certain technology parts or services, assistance with tax authority audits or examinations, etc. PwC will be paid as follows: a) Integrated Audit Engagement Letter Partner $994 Managing Director $994 Director $899 Senior Manager $800 Manager $701 Senior Associate $576 Experienced $502 New Associate $400 Administrative $140 A $250,000 retainer was paid by the Debtors to PwC pre- petition, b) Puerto Rico Audit i. fixed fee of $46,000 to complete the services under the Puerto Rico Audit; and ii. a pre-petition retainer of $46,000 was received by PwC. c) Restructuring Tax i. a fixed fee for Phase I of $110,000 per week for approximately 4.5 weeks, not to exceed $500,000; 5 and ii. a fixed fee for Phase II of $705,000. d) International Tax Partner $565 Director $440 Manager $360 Senior Associate $255 Associate $165 Kirsten R. Albert, partner of PricewaterhouseCoopers LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. PwC can be reached at: Kirsten R. Albert PRICEWATERHOUSECOOPERS LLP 600 Grant Street Pittsburgh, PA 15219 Tel: (412) 355-6000 About GNC Holdings GNC Holdings Inc. -- http://www.gnc.com/-- is a global health and wellness brand with a diversified omni-channel business. In its stores and online, GNC Holdings sells an assortment of performance and nutritional supplements, vitamins, herbs and greens, health and beauty, food and drink, and other general merchandise, featuring innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC Holdings. GNC Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11662) on June 23, 2020. The Debtors disclosed $1,415,957,000 in assets and $895,022,000 in liabilities as of March 31, 2020. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Latham & Watkins, LLP as legal counsel; Evercore Group, LLC as investment banker and financial advisor; FTI Consulting, Inc., as financial advisor; and Prime Clerk as claims and noticing agent. Torys LLP is the legal counsel in the Companies' Creditors Arrangement Act case. The U.S. Trustee for Region 3 in July 2020 appointed a committee to represent unsecured creditors in the Chapter 11 cases of GNC Holdings Inc. and its affiliates. The Committee retained Bayard, P.A., as co-counsel. Miller Buckfire & Co., LLC and its affiliate Stifel, Nicolaus & Co., Inc., as investment banker. GNC HOLDINGS: Panel Hires Miller Buckfire as Investment Banker -------------------------------------------------------------- The Official Committee of Unsecured Creditors of GNC Holdings, Inc., and its debtor-affiliates, seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Miller Buckfire & Co., LLC and its affiliate Stifel, Nicolaus & Co., Inc., as investment banker to the Committee. GNC Holdings requires Miller Buckfire to: (a) familiarize with the business, operations, properties, financial condition and prospects of the Debtors and advise and assist the Committee in structuring and effecting the financial aspects of the transactions; (b) receive, review and perform diligence on information provided on a confidential basis by the Debtors or the Committee; (c) assist the Committee in negotiations regarding any sale, Plan, or other Transaction; (d) represent and negotiate on the behalf of the Committee as it relates to any restructuring proposals advanced by the Committee, Debtors or any other parties or stakeholders; and (e) participate in hearings before the Court in connection with Miller Buckfire's other services, including related testimony, in coordination with the Committee's counsel. Miller Buckfire will be paid at these hourly rates: (a) Monthly Fee: $125,000 per month. (b) Deferred Fee: $1,500,000, due upon a Transaction 3 that is not a Majority Liquidation. (c) Majority Liquidation Fee: $750,000 due upon a Majority Liquidation. (d) Crediting: 50% of the fourth and subsequent Monthly Fee will be credited against any Deferred or Majority Liquidation Fee. (e) Expenses: Miller Buckfire will be reimbursed its reasonable, out-of-pocket expenses, including the reasonable fees and expenses of Miller Buckfire's counsel. Miller Buckfire will also be reimbursed for reasonable out-of-pocket expenses incurred. Richard Klein, partner of Miller Buckfire & Co., LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Miller Buckfire can be reached at: Richard Klein Miller Buckfire & Co., LLC 787 Seventh Avenue New York, NY 10019 Tel: (212) 887-7777 About GNC Holdings GNC Holdings Inc. -- http://www.gnc.com/-- is a global health and wellness brand with a diversified omni-channel business. In its stores and online, GNC Holdings sells an assortment of performance and nutritional supplements, vitamins, herbs and greens, health and beauty, food and drink, and other general merchandise, featuring innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC Holdings. GNC Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11662) on June 23, 2020. The Debtors disclosed $1,415,957,000 in assets and $895,022,000 in liabilities as of March 31, 2020. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Latham & Watkins, LLP as legal counsel; Evercore Group, LLC as investment banker and financial advisor; FTI Consulting, Inc., as financial advisor; and Prime Clerk as claims and noticing agent. Torys LLP is the legal counsel in the Companies' Creditors Arrangement Act case. The U.S. Trustee for Region 3 in July 2020 appointed a committee to represent unsecured creditors in the Chapter 11 cases of GNC Holdings Inc. and its affiliates. The Committee retained Bayard, P.A., as co-counsel. Miller Buckfire & Co., LLC and its affiliate Stifel, Nicolaus & Co., Inc., as investment banker. GNC HOLDINGS: Spares High Desert, CA Locations ---------------------------------------------- Rene Ray De La Cruz, writing for VV Daily Press, reports that GNC Holdings will not close its three High Desert, California locations. The future of General Nutrition Centers could be in jeopardy after the company recently filed for bankruptcy protection and announced plans to close hundreds of stores. On June 24, 2020, GNC Holdings Inc. announced that its Chapter 11 bankruptcy plan includes closing somewhere between 800 and 1,200 stores as it attempts to cut debt and restructure amid the COVID-19 pandemic, according to Chain Store Age. Last July, the 85-year-old vitamin and supplement retailer announced it was nearly $1 billion in debt and planned to shutter about 900 stores. As of March, GNC had 5,200 stores across the country and 7,300 locations worldwide. According to the partial list of closures announced by GNC, three High Desert stores appear safe for now. Those locations are in Apple Valley's Jess Ranch Marketplace, Hesperia's High Desert Gateway shopping center and Victorville’s Mall of Victor Valley. Still, 27 stores in California did not escape the chopping block, including those at the Colton's Centrepointe Plaza, Palmdale's Antelope Valley Mall, Rancho Cucamonga's Victoria Gardens and Rancho Mirage’s Monterey Marketplace, USA Today reported. GNC products, such as protein powders, vitamins, shakes, bars and other items are also sold inside most Rite-Aid drug stores. "Our business has been under financial pressure for the past several years as we have worked to pay down debt and reposition GNC to be more competitive in a challenging operating environment," the company said. The company said it had made progress and was focusing on refinancing the business until the COVID-19 pandemic created a situation where they were unable to accomplish its refinancing goal. Mark Willits was one of several supplement users that told the Daily Press they were surprised that retailers like GNC and The Vitamin Shoppe were still in business. "I buy most of my protein powder and supplements on Amazon, BodyBuilding.com or Vitaglo.com," said Willits, 37, who lives in Apple Valley. "Buying online is cheaper and you have a bigger variety." Fitness trainer Laura Streppone admits to always purchasing her supplements from a "higher quality" online business. Candice Weber said she enjoys buying less costlier vitamins online and the convenience of having them shipped directly to her home. GNC said it had reached an agreement with the majority of its secured lenders and key shareholders to pursue a dual-path restructuring process that would allow the company to become a standalone business or be sold. Under the terms of its agreement, GNC will look for a buyer, with the initial purchase price set at $760 million. The sale would be executed through a court-supervised auction process at which higher and better bids may be presented. GNC said its stores will remain open through the bankruptcy process. The company has secured $130 million in liquidity, including $100 million in debtor-in-possession financing and $30 million from modifications to an existing credit facility. About GNC Holdings Inc. GNC Holdings Inc. is a Pittsburgh, Pennsylvania-based American company selling health and nutrition related products, including vitamins, supplements, minerals, herbs, sports nutrition, diet, and energy products. About GNC Holdings GNC Holdings Inc. -- http://www.gnc.com/-- is a global health and wellness brand with a diversified omni-channel business. In its stores and online, GNC Holdings sells an assortment of performance and nutritional supplements, vitamins, herbs and greens, health and beauty, food and drink, and other general merchandise, featuring innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC Holdings. GNC Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11662) on June 23, 2020. The Debtors disclosed $1,415,957,000 in assets and $895,022,000 in liabilities as of March 31, 2020. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Latham & Watkins, LLP as legal counsel; Evercore Group, LLC as investment banker and financial advisor; FTI Consulting, Inc., as financial advisor; and Prime Clerk as claims and noticing agent. Torys LLP is the legal counsel in the Companies' Creditors Arrangement Act case. GNC HOLDINGS: To Close Store in Vienna Town, Va. ------------------------------------------------ Fatimah Waseem, writing for Tysons Reporter, reports that GNC will close its location in Vienna, Virginia as part of the company’s plans to shutter between 800 and 1,200 stores across the country. The vitamins and supplements retailer filed for Chapter 11 bankruptcy protection early last week. The store at the Maple Avenue Shopping Center is a part of several ones closing in Virginia, including locations in Sterling, Franklin and Charlottesville, according to GNC's website. "Please note that even closing stores may remain open for a period of time," the website says. In a June 23 letter to its customers, the company stated that the COVID-19 pandemic "created a situation where we are unable to accomplish our refinancing and the abrupt change in the operating environment has had a negative impact on our business." Here's more from the letter: As a result, we felt the best opportunity for us to continue to improve our capital structure and address certain operational issues was to restructure through a Chapter 11 reorganization. This gives us the opportunity to improve our balance sheet while continuing to advance our business strategy, right-size our corporate store portfolio, and strengthen our brands to protect the long-term sustainability of our company. About GNC Holdings GNC Holdings Inc. -- http://www.gnc.com/-- is a global health and wellness brand with a diversified omni-channel business. In its stores and online, GNC Holdings sells an assortment of performance and nutritional supplements, vitamins, herbs and greens, health and beauty, food and drink, and other general merchandise, featuring innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC Holdings. GNC Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-11662) on June 23, 2020. The Debtors disclosed $1,415,957,000 in assets and $895,022,000 in liabilities as of March 31, 2020. Judge Karen B. Owens oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Latham & Watkins, LLP as legal counsel; Evercore Group, LLC as investment banker and financial advisor; FTI Consulting, Inc., as financial advisor; and Prime Clerk as claims and noticing agent. Torys LLP is the legal counsel in the Companies' Creditors Arrangement Act case. GO DADDY: Moody's Rates New Incremental First Lien Term Loan 'Ba1' ------------------------------------------------------------------ Moody's Investors Service assigned a Ba1 rating to Go Daddy Operating Company, LLC's proposed incremental first lien senior secured term loan B due 2027. At the same time, Moody's affirmed the company's Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating, Ba1 rating on the first lien senior secured credit facility (revolver and term loan) due 2024 and B1 rating on the senior unsecured notes. The Speculative Grade Liquidity Rating is unchanged at SGL-1. The outlook remains stable. Net proceeds from the proposed incremental term loan, together with balance sheet cash, will be used to settle all future obligations pursuant to five Tax Receivable Agreements with pre-IPO owners. Payments under the TRAs were payable only to the extent actual cash savings from the step-up basis were realized. The agreement to settle the TRAs for approximately $850 million represents more than a 50% discount to the maximum undiscounted value of $1.8 billion as of June 30, 2020, eliminating future cash flow payments that were expected to begin in 2023. GoDaddy will not become a meaningful tax payer until later this decade. Moody's views the proposed transaction as credit negative on balance because it involves a material increase in debt and leverage at a time when macro-economic outlook remains uncertain. On a pro forma basis as of June 30, 2020, GoDaddy's debt-to-EBITDA (Moody's adjusted) will increase to 6.2x from 4.9x or (to 4.8x from 3.7x when adjusted for deferred revenue). Moody's also notes that the company is executing the transaction within the limits of management's long-term net debt to cash EBITDA target of 2.0x-4.0x (at 3.0x pro forma for the transaction as defined by the company). Nevertheless, Moody's affirmed GoDaddy's Ba2 CFR despite the incremental debt, as the higher leverage is largely offset by the company's strong and consistent operating performance and proven track record of deleveraging through earnings. GoDaddy remains largely resilient to the negative effects of the COVID-19 pandemic, benefiting from an unintended acceleration of the digital transformation of ecommerce. The company has seen a significant uptick in new customers count and demand for its online products in Q2 2020, while renewal rates and churn have remained stable. Moody's expects the company's debt-to-EBITDA (Moody's adjusted) will improve to levels that are more commensurate with the Ba2 rating category over the next 12-18 months, primarily driven by expectation for organic revenue and EBITDA growth in the high-single digits. Moody's also anticipates the company will maintain very good liquidity, including generating free cash flow-to-debt (Moody's adjusted) in excess of 15% over the same period. Moody's affirmed the Ba1 rating on the existing first lien senior secured debt despite the material increase in the proportion of the secured to total debt in the capital structure. Moody's views GoDaddy's first lien senior secured rating as having very little cushion to absorb additional amounts of senior secured debt. As the senior secured credit class becomes a larger proportion of GoDaddy's total debt, the instrument rating will likely migrate closer to the Ba2 CFR. Affirmations: Issuer: Go Daddy Operating Company, LLC Corporate Family Rating, Affirmed Ba2 Probability of Default Rating, Affirmed Ba2-PD Senior Secured Bank Credit Facility, Affirmed Ba1 (LGD3) Senior Unsecured Regular Bond/Debenture, Affirmed B1 (LGD6) Assignments: Issuer: Go Daddy Operating Company, LLC Senior Secured Term Loan B, Assigned Ba1 (LGD3) Outlook Actions: Issuer: Go Daddy Operating Company, LLC Outlook, Remains Stable RATINGS RATIONALE The Ba2 CFR reflects GoDaddy's solid free cash flow and earnings growth, strong brand in the US with growing international presence, and market position as the largest domain name registrar with a leading web-hosting services offering. The rating is further supported by GoDaddy's growing scale and recurring revenues derived from high customer retention rates that have exceeded 85% over the last five years. Moody's expects GoDaddy to maintain balanced financial policies between creditor and equity holder interests and to remain within management's long-term net debt to cash EBITDA target of 2.0-4.0x (as defined by the company; 3.0x pro forma for the transaction as of June 30, 2020). Moody's also projects GoDaddy's will generate annual free cash flow in excess of $550 million over the next 12-15 months and maintain free cash flow-to-debt (Moody's adjusted) above 15%. Conversely, GoDaddy's rating is constrained by its high pro forma debt-to-EBITDA leverage (Moody's adjusted), estimated at 6.2x at June 30, 2020 (4.8x when adjusted for deferred revenue), which is projected to decline towards low 5.0x over the next 12-18 months through earnings growth. The rating also incorporates the company's operations within the mature and intensely competitive web-services industry that has low barriers to entry. In addition, GoDaddy produces operating margins that trail rated industry peers. The uncertainty related to the COVID-19 pandemic and economic recession and GoDaddy's significant exposure to SME client base also weigh on the rating. Moody's assumption for new customer additions reflects moderately slower growth in 2020 relative to the historical levels due to the current economic uncertainty. The stable outlook reflects Moody's expectation of organic revenue growth in the high-single digit percentages, debt-to-EBITDA (Moody's adjusted) to decline towards the low 5.0x, and annual free cash flow in excess of $650 million over the next 12-15 months. The outlook also considers that the business will remain resilient despite challenges presented by COVID-19. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the revenue growth rate decelerates, market share weakens, subscriber churn increases, or free cash flow declines below 10% of total debt for an extended period of time from weakening operating performance or aggressive financial policies. GoDaddy's ratings could be upgraded if the company were able to maintain strong organic topline and earnings growth, meaningfully increase scale and diversification and management establishes a more conservative financial policy. Moody's expects GoDaddy to have very good liquidity over the next 12-18 months as reflected in the Speculative Grade Liquidity rating of SGL-1. The company's liquidity is supported by strong balance sheet cash and Moody's expectation for annual free cash flow in excess of $650 million, along with full availability under a $600 million revolving credit facility expiring in 2024. Pro forma for the TRA transaction, estimated cash balances of approximately $670 million as of June 30, 2020 do not incorporate a $215.9 million cash paid for the acquisition of Neustar, Inc. registry business in August 2020. Nevertheless, the company's cash sources provide very good coverage of required term loan amortization that is modest at approximately $32.5 million annually, paid quarterly. There are no financial maintenance covenants under the term loan but borrowings under the revolving credit agreement are subject to a maximum net debt-to-EBITDA leverage ratio of 5.75x if utilization exceeds 20% of the maximum capacity. Moody's does not expect the company to utilize its revolving credit facility over the next 12-18 months and there is good cushion within the required leverage ratio if the covenant is triggered. 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. Given GoDaddy's exposure to the global economies and SME client base, the company remains vulnerable to shifts in market demand and sentiment in these unprecedented operating conditions. Go Daddy Operating Company, LLC, is an indirect subsidiary of publicly-traded GoDaddy Inc. GoDaddy Inc. is a leading provider of domain name registration, web hosting and other services to small business. GoDaddy generated revenues of approximately $3.1 billion in the last twelve months ended June 30, 2020. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. GREEN GROWTH: Provides Update on Insolvency Proceedings Under CCAA ------------------------------------------------------------------ Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and certain of its direct and indirect wholly owned subsidiaries (collectively, the "Applicants") on July 22 provided an update on its insolvency proceedings under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). As announced on May 20, 2020, the Applicants filed for insolvency protection under the CCAA and obtained an order from the Ontario Superior Court of Justice (the "Court") granting the Applicants protection under the CCAA for an initial 10 day period until May 29, 2020, as extended. On June 2, 2020, the Court granted a motion filed by the Applicants and issued an order (the "Amended and Restated Order"): (i) extending the stay period ("Stay Period") until August 15, 2020; (ii) increasing the amount of the Court-ordered charge over the Applicants' assets, property and undertakings in connection with the Applicants' debtor-in-possession financing agreement with All Js Greenspace LLC ("All Js") (the "DIP Agreement"); (iii) approving the implementation of a sale and investment solicitation process (the "SISP"); and (iv) approving a stalking-horse agreement (the "Stalking Horse Agreement") among the Company, All Js and Capital Transfer Agency in its capacity as the debentureholder trustee of the Company's (A) US$45,500,000 aggregate principal amount of 15.00% secured convertible debentures that matured May 17, 2020 and (B) US$23,717,000 aggregate principal amount of 5.00% secured convertible debentures maturing in 2024 (All Js and Capital Transfer Agency in such capacities are collectively referred to as the "Secured Credit Bidders") pursuant to which the Secured Credit Bidders would act as stalking-horse bidders under the SISP. Under the SISP, the deadline for delivery of initial non-binding letters of interest ("Phase I") expired on July 6, 2020. Ernst & Young Inc., the Court-appointed monitor ("Monitor") of the Applicants, has determined that there is no reasonable prospect of a Qualified Non-Binding LOI resulting in a Superior Offer (as defined in the SISP). As such and in accordance with the terms of the SISP, the Monitor has informed the Applicants, All Js and the Phase I bidders of its determination, and recommended that the SISP be terminated. The Applicants intend to file a motion for the approval of the Stalking Horse Agreement, an amendment and extension of the DIP Agreement and an extension of the Stay Period. A copy of the SISP, Amended and Restated Order and other Court materials and information related to the Applicants' CCAA proceedings, all as may be updated or amended from time to time, are available on the website maintained by the Monitor at www.ey.com/ca/ggbi.The Applicants intend to provide further updates on the CCAA proceedings when there are significant developments. CBD Recievership Update The Company also announced that, in connection with the previously announced receivership for its CBD division (the "CBD Receivership"), the court-appointed receiver closed, on July 16, 2020, a transaction (the "Transaction") with The BRN Group Inc. ("BRN") for certain assets related to the since-suspended CBD division. The Transaction will provide BRN with access to, among other things, the CBD division's mall-based kiosk locations, related inventory therein, and intellectual property related to the Seventh Sense and Green Lily product lines. Details regarding the transaction are available via the Franklin County Court of Common Pleas online docket, available at https://fcdcfcjs.co.franklin.oh.us/CaseInformationOnline/, in Case No. 20-CV-002207 and on SEDAR. About Green Growth Brands Inc. Green Growth Brands -- http://www.GreenGrowthBrands.com/-- maintains licenses for cannabis operations in Nevada, Massachusetts, and Florida. Its brands include CAMP, The+Source and 8Fold. GRESHAM HOTEL: Case Summary & 16 Unsecured Creditors ---------------------------------------------------- Debtor: Gresham Hotel, LLC d/b/a Pony Soldier Inn 1060 NE Cleveland Gresham, OR 97030 Business Description: Gresham Hotel, LLC is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). It operates under the traveler accommodation industry. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court District of Oregon Case No.: 20-32352 Judge: Hon. David W. Hercher Debtor's Counsel: Theodore J. Piteo, Esq. MICHAEL D. O'BRIEN & ASSOCIATES, P.C. 12909 SW 68th Parkway, Suite 160 Portland, OR 97223 Tel: 503-786-3800 Email: enc@pdxlegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Hardeep Samra, member. A copy of the petition containing, among other items, a list of the Debtor's 16 unsecured creditors is available for free at PacerMonitor.com at: https://is.gd/qylsNW GROM SOCIAL: Posts $1.35 Million Net Loss in First Quarter ---------------------------------------------------------- Grom Social Enterprises, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss attributable to common stockholders of $1.35 million on $1.29 million of sales for the three months ended March 31, 2020, compared to a net loss attributable to common stockholders of $2.28 million on $1.97 million of sales for the three months ended June 30, 2019. As of March 31, 2020, the Company had $18.38 million in total assets, $10.60 million in total liabilities, and $7.78 million in total stockholders' equity. Grom Social stated, "Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company's ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company has raised capital through private placements, convertible debentures and officer loans as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans in order to fund its operations. "The Company has experienced significant disruptions to its business and operations due to circumstances related to COVID-19, and as a result of delays caused government-imposed quarantines, office closings and travel restrictions, which affect both the Company's and its service providers. The Company has significant operations in Manila, Philippines, which was locked down by the government on March 12, 2020 due to concerns related to the spread of COVID-19. As a result of the Philippines government's call to contain COVID-19, the Company's animation studio, located in Manila, Philippines, which accounts for approximately 90% of the Company's total revenues on a consolidated basis, has been closed. "In response to the outbreak and business disruption, the Company has instituted employee safety protocols to contain the spread, including domestic and international travel restrictions, work-from-home practices, extensive cleaning protocols, social distancing and various temporary closures of its administrative offices and production studio. The Company has implemented a range of actions aimed at temporarily reducing costs and preserving liquidity. "The outbreak has and may continue to spread, which could materially impact the Company's business. The full extent of potential impacts on the Company's business, financing activities and the global economy will depend on future developments, which cannot be predicted due to the uncertain nature of the continued COVID-19 pandemic, government mandated shut downs, and its adverse effects, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. These effects could have a material adverse impact on the Company's business, operations, financial condition and results of operations." A full-text copy of the Form 10-Q is available for free at: https://is.gd/GnyBC0 About Grom Social Grom -- http://www.gromsocial.com/-- is a social media platform and original content provider of entertainment for children between the ages of 5 and 16, providing safe and secure digital environments for kids that can be monitored by their parents or guardians. Grom Social Enterprises, Inc., has several operating subsidiaries, including Grom Social, which delivers its content through mobile and desktop environments (web portal and apps) that entertain children, let them interact with friends, access relevant news, and play proprietary games, while teaching them about being a good digital citizen. Through its subsidiary TD Holdings, Ltd., the Company owns and operates Top Draw Animation, Inc., which produces award-winning animation content for some of the largest international media companies in the world. Grom also includes Grom Educational Services, which has provided web filtering services for K-12 schools, government and private businesses. BF Borgers CPA PC, in Lakewood, CO, the Company's auditor since 2015, issued a "going concern" qualification in its report dated June 30, 2019, citing that the Company has incurred significant operating losses since inception and has a working capital deficit which raises substantial doubt about its ability to continue as a going concern. Grom Social reported a net loss of $4.59 million for the year ended Dec. 31, 2019, compared to a net loss of $4.87 million for the year ended Dec. 31, 2018. GRUPO AEROMEXICO: Readying Financing Plan ----------------------------------------- Andrea Navarro, Cyntia Aurora Barrera Diaz and Ezra Fieser, writing for Bloomberg News, reports that Grupo Aeromexico SAB said in early July that its financing plan under its Chapter 11 bankruptcy protection filing could be ready in the next four to six weeks. The voluntary filing will allow the company to weather the coronavirus pandemic however long it may last, Chief Executive Officer Andres Conesa said in an interview. Aeromexico's bankruptcy protection filing came after the carrier saw the number of passengers it flew plummet more than 90% as governments grounded flights and travelers stayed home. Airlines in Latin America, unlike their counterparts in the U.S. and Europe, have received scant government support. "We're solvent, we have assets, but we haven't been able to tap financial markets over the past three months," Conesa said. "This will allow us to access better financing that we wouldn't get otherwise." Since the pandemic started, the carrier has had to dole out 1.5 billion pesos ($65.8 million) to repay debt, Conesa said. Aeromexico's total debt reached $1.9 billion and 7.9 billion pesos, according to the first day petition filed on Wednesday before the court. DIP Financing Latam Airlines Group SA, which also filed for creditor protection in May, is seeking as much as $2.15 billion in new debt, according to court filings. Avianca Holdings SA has not specified how much it is seeking, a spokeswoman said. Conesa says he doesn't see Aeromexico needing that much, though a final number is still four to six weeks away. Now that the filing has been made, a group of creditors will get together this month and they, alongside the company and a judge, will decide how much needs to be raised and what form the restructuring will take. "We'll likely have a mix of plain and convertible debt," he said. "But the message is clear -- we're focused on keeping Aeromexico flying and acting responsibly. We're not thinking about the equity side at the moment." The carrier received zero support from the government, Conesa said. "The government was very clear on that. The entire region is heading towards a market restructure, and that will allow us to have an even better future." Flexible Fleet Aeromexico owns about 30% of its fleet, Conesa said, which stood at 130 jets before the pandemic started. Those assets could be offered as collateral through sale-and-lease-back operations, he said. Additional flexibility comes from its leases being staggered. Contracts for about 15% of its fleet expire over the next 15 months, he said. Another decision to be made in the coming weeks will be what routes to keep and at what frequencies. This month, the airline will fly about half of the domestic flights it had in July last year and about 20% of its international ones. When, or if, to bring the rest back will largely depend on demand and on governments’ flight restrictions across the globe, he said. The airline, which still has nine Boeing 737 Max aircraft to be delivered, said it is reviewing its contract conditions with the plane maker. The airline will likely emerge slimmer from the proceedings, Conesa said, but that won’t mean a change to its business model and he doesn’t see aggressive fare cuts necessary to compete with domestic rivals. "Aeromexico's essence will continue, it was working so far," he said. "But not even the strongest airline in the world can withstand this." Aeromexico operates routes in Mexico and internationally to destinations including the U.S., Canada, Europe and Asia. Delta Air Lines Inc. is its biggest shareholder. The airline has been able to avoid lay-offs until now, but Conesa says fewer flights in the future will likely require adjustments, though he declined to give a figure. The carrier's workforce stands at about 16,000, he said. Aeromexico is being advised by Davis Polk & Wardwell LLP, Rothschild & Co., Cervantes Sainz S.C., AlixPartners and Skyworks Holdings, LLC. About Grupo Aeromexico Grupo Aeromexico, S.A.B. de C.V. and three of its subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30, 2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker, the Debtors were estimated to have consolidated assets and liabilities of $1 billion to $10 billion. Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Mexico's global airline has its main hub at Terminal 2 at the Mexico City International Airport. Its destinations network features the United States, Canada, Central America, South America, Asia and Europe. At the time of filing, the Group's operating fleet of 119 aircraft is comprised of Boeing 787 and 737 jet airliners and Embraer 170 and 190 models. Aeromexico is a founding member of the SkyTeam airline alliance, which celebrated its 20th anniversary, and serves in 170 countries by the 19 SkyTeam airline partners. Aeromexico created and implemented a Health and Sanitization Management System (HSMS) to protect its customers and employees at all steps of its operations. Davis Polk & Wardwell LLP and Cervantes Sainz are acting as Aeromexico's legal counsel, Rothschild & Co. is acting as financial advisor, and AlixPartners, LLP is serving as restructuring advisor to the Company. Epiq Bankruptcy Solutions is the claims agent. GRUPO FAMSA: Chapter 15 Case Summary ------------------------------------ Chapter 15 Debtor: Grupo Famsa, S.A.B. de C.V. Business Description: The Debtor is a retail company engaged in the purchase and sale of household appliances, electronic products, furniture, clothing and other consumer products. Chapter 15 Petition Date: August 6, 2020 Court: United States Bankruptcy Court Southern District of New York Case No.: 20-11811 Judge: Hon. Shelley C. Chapman Chapter 15 Petitioner: Paloma Elizabeth Arellano Bujanda Chapter 15 Petitioner's Counsel: Pedro Jimenez, Esq. Estimated Assets: Unknown Estimated Debts: Unknown GRUPO FAMSA: Orrick, Herrington Represents Bondholder Group ----------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Orrick, Herrington & Sutcliffe LLP submitted a verified statement to disclose that it is representing the Ad Hoc Bondholder Group in the Chapter 11 cases of Grupo Famsa, S.A.B. de C.V. Orrick Herrington represents the Ad Hoc Bondholder Group in connection with the Debtor's chapter 11 case. Orrick does not represent or purport to represent any other entities in connection with the Debtor's chapter 11 case. Orrick does not represent the Ad Hoc Bondholder Group as a "committee" and does not undertake to represent the interests of, and is not a fiduciary for, any creditor, party in interest, or entity other than the Ad Hoc Bondholder Group. In addition, the Ad Hoc Bondholder Group does not represent or purport to represent any other entities in connection with the Debtor's chapter 11 case. As of Aug. 6, 2020, members of the Ad Hoc Bondholder Group and their disclosable economic interests are: 2024 Notes ---------- Barclays Bank PLC $9,262,000 745 7th Avenue New York, NY 10019 Penderfund Capital Management Ltd $5,887,000 1066 Hastings St W Suite 1830 Vancouver BC V6E 3X2 CA Canada Vontobel Asset Management AG $18,789,000 Genferstrasse 27 Zurich 8022 CH Switzerland Additional holders of claims against the Debtor's estate may become members of the Ad Hoc Bondholder Group, and certain members of the Ad Hoc Bondholder Group may cease to be members in the future. Orrick reserves the right to amend or supplement this Verified Statement in accordance with the requirements set forth in Bankruptcy Rule 2019. Counsel to Ad Hoc Bondholder Group can be reached at: ORRICK, HERRINGTON & SUTCLIFFE LLP Raniero D'Aversa, Jr., Esq. 51 West 52nd Street New York, NY 10019 Telephone: (212) 506-3715 Facsimile: (212) 506-5151 Email: rdaversa@orrick.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/4YCdPj About Grupo Famsa Grupo Famsa, S.A.B. de C.V. is a variable capital public stock corporation under the laws of Mexico, originally organized on Dec. 27, 1979 under the name Corporacion Famsa, S.A. The Debtor is not a public reporting company in the United States pursuant to the Securities Exchange Act of 1934. The Debtor is the parent company of several non-debtor subsidiaries, both in the United States and Mexico, which operate in the retail and banking sectors. Visit https://www.grupofamsa.com/ for more information. Grupo Famsa sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 20-11505) on June 26, 2020. The case is assigned to Hon. Shelley C. Chapman. At the time of filing, the Debtor was estimated to have $1 billion to $10 billion in assets and liabilities as of the bankruptcy filing. The Hon. Shelley C. Chapman is the case judge. PAUL HASTINGS LLP is the Debtor's counsel. ALFARO, DAVILA & SCHERER is the financial advisor. EPIQ CORPORATE RESTRUCTURING, LLC, is the claims agent. GRUPO FAMSA: Targets August Emergence From Chapter 11 ----------------------------------------------------- Law360 reports that the Mexican retail chain Grupo Famsa told a New York bankruptcy judge in early July 2020 it already has a nearly 99% vote in favor of its prepackaged plan to swap out $59 million in notes for longer-term ones, and that it hopes to emerge from Chapter 11 by the middle of August. At a remote hearing, counsel for Grupo Famsa told U.S. Bankruptcy Judge Shelley Chapman that it had entered Chapter 11 as a way to refinance the debt after the economic uncertainty of the COVID-19 pandemic scuttled a pending out-of-court deal. About Grupo Famsa Grupo Famsa, S.A.B. de C.V. -- https://www.grupofamsa.com/ -- is a variable capital public stock corporation under the laws of Mexico, originally organized on Dec. 27, 1979 under the name Corporacion Famsa, S.A. It is not a public reporting company in the United States pursuant to the Securities Exchange Act of 1934. Grupo Famsa is the parent company of several non-debtor subsidiaries, both in the United States and Mexico, which operate in the retail and banking sectors. Grupo Famsa filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 20-11505) on June 26, 2020. At the time of filing, the Debtor was estimated to have $1 billion to $10 billion in assets and liabilities. The case is assigned to Hon. Shelley C. Chapman. The Debtor's counsel is Pedro A. Jimenez, Esq. GULFPORT ENERGY: Reports Q2 2020 Financial & Operating Results -------------------------------------------------------------- Gulfport Energy Corporation reported financial and operational results for the three months and six months ended June 30, 2020 and provided an update on its 2020 activities. Key highlights are as follows: * Continued improvement in well costs with Utica Shale and SCOOP total costs per lateral foot for the six-month period declining by 18% and 31%, respectively, versus full year 2019 levels * Reported net loss of $561.1 million, or $3.51 per diluted share for the second quarter * Reported adjusted net income (non-GAAP) of $47.1 million, or $0.29 per diluted share for the second quarter * Generated adjusted EBITDA (non-GAAP) of $145.0 million for the second quarter * Reported cash provided by operating activities of $116.4 million for the second quarter * Generated operating cash flow (non-GAAP), excluding working capital changes, of $97.9 million for the second quarter * Generated free cash flow (non-GAAP) of $43.9 million for the second quarter 2020 Capital Expenditures The Company's incurred capital expenditures during the second quarter of 2020 benefited from continued improvement in drilling and completions operations, efficiency gains and lower service costs. During the second quarter of 2020, Gulfport's incurred total capital expenditures were $54.0 million. Gulfport's incurred total capital expenditures includes approximately $51.7 million of drilling and completion capital expenditures and $2.3 million of land capital expenditures. For the six-month period ended June 30, 2020, Gulfport's incurred total capital expenditures were $189.3 million. Gulfport's incurred total capital expenditures includes approximately $183.1 million of D&C capital expenditures and $6.2 million of land capital expenditures. 2020 Operational Update As a result of the current commodity price environment, during the second quarter of 2020 Gulfport made the strategic decision to defer near-term production to later periods in 2020 and early 2021, when natural gas prices are expected to be higher. In addition, Gulfport now plans to complete an additional 7 gross wells in the Utica Shale in the second half of 2020. This additional activity provides incremental production late this year and into early 2021 in the anticipation of higher prices during the winter months. Gulfport expects minimal impact to full year 2020 production levels from this activity and reaffirms its 2020 full year net production to average 1,000 MMcfe to 1,075 MMcfe per day. In addition, based on current pricing levels, Gulfport forecasts its third quarter of 2020 production to average approximately 980 MMcfe to 1,030 MMcfe per day. Efficient operations and continued improvements in drilling and completions costs allows Gulfport to add this incremental activity projecting 2020 total capital expenditures to be at the low-end of the previously provided range of $285 million to $310 million. Balance Sheet and Liquidity As of June 30, 2020, the Company's liquidity totaled approximately $255.7 million, comprised of the $700 million borrowing base plus approximately $2.8 million in cash on hand less $324.1 million outstanding letters of credit and $123.0 million of revolver draw. Production and Realized Prices Gulfport's net daily production for the second quarter of 2020 averaged approximately 1,027 MMcfe per day. For the second quarter of 2020, Gulfport's net daily production mix was comprised of approximately 91% natural gas, 6% natural gas liquids and 3% oil. For the three-month period ended June 30, 2020, key realized price highlights are as follows: * Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.02 per Mcf, a $0.70 per Mcf differential to the average trade month NYMEX settled price * Realized oil price, before the impact of derivatives and including transportation costs, averaged $20.14 per barrel, a $7.71 per barrel differential to the average WTI oil price * Realized natural gas liquids, before the impact of derivatives and including transportation costs, averaged $0.25 per gallon, equivalent to $10.29 per barrel, or approximately 37% of the average WTI oil price For the six-month period ended June 30, 2020, key realized price highlights are as follows: * Realized natural gas price, before the impact of derivatives and including transportation costs, averaged $1.14 per Mcf, a $0.70 per Mcf differential to the average trade month NYMEX settled price * Realized oil price, before the impact of derivatives and including transportation costs, averaged $33.26 per barrel, a $3.71 per barrel differential to the average WTI oil price * Realized NGL price, before the impact of derivatives and including transportation costs, averaged $0.31 per gallon, equivalent to $12.91 per barrel, or approximately 35% of the average WTI oil price About Gulfport Gulfport Energy Corporation (NASDAQ: GPOR) -- http://www.gulfportenergy.com-- is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and a producer of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds non-core assets that include an approximately 22% equity interest in Mammoth Energy Services, Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC. Gulfport Energy received a letter on April 16, 2020, from the Listing Qualifications Department of the Nasdaq Stock Market LLC notifying Gulfport that for a period of 30 consecutive business days preceding the date of the Notice, the bid price of Gulfport's common stock had closed below $1.00 per share, the minimum closing bid price required by the continued listing requirements of Nasdaq Listing Rule 5450(a)(1). Gulfport Energy reported net loss of $2.0 billion for the year ended Dec. 31, 2019 as compared to net income of $430.6 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $3.26 billion in total assets, $2.48 billion in total liabilities, and $784.05 million in total stockholders' equity. * * * As reported by the TCR on March 4, 2020, Moody's Investors Service downgraded Gulfport Energy Corporation's Corporate Family Rating to Caa1 from B2. "The downgrade reflects rising financial risks amid low natural gas prices and limited hedging protection in place for Gulfport in 2020. This required the company to significantly reduce investment and allow production to fall significantly in 2020 in order to avoid new borrowings," commented Elena Nadtotchi, Moody's vice president - senior credit officer. GUNSMOKE LLC: Taps Jorgensen Brownell as Legal Counsel ------------------------------------------------------ Gunsmoke, LLC received approval from the U.S. Bankruptcy Court for the District of Colorado to hire Jorgensen, Brownell & Pepin, P.C. as its legal counsel. The firm will provide these services: a) advise Debtor regarding the administration of its Chapter 11 case; b) represent Debtor before the bankruptcy court and advise Debtor on all pending litigations, hearings, motions and court decisions; c) review and analyze all applications, orders and motions filed with the bankruptcy court by third parties; d) attend meetings conducted and represent Debtor at examinations; e) communicate with creditors and other parties; f) prepare court documents; g) confer with all other professionals retained by Debtor and other parties; h) assist Debtor in its negotiations with creditors or third parties concerning the terms of any proposed plan of reorganization; and i) prepare and prosecute a plan of reorganization and disclosure statement. The firm's services will be provided mainly by Gerald Jorgensen, Esq., who will charge $400 per hour. Mr. Jorgensen disclosed in a court filing that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Gerald L. Jorgensen, Esq. Jorgensen, Brownell & Pepin P.C. 5285 McWhinney Blvd., Suite 100 Loveland, CO 80538 Telephone: (970) 304-0075 Facsimile: (970) 351-8421 Email: gerald@jbplegal.com About Gunsmoke LLC Gunsmoke, LLC, a gun shop in Loveland, Colo., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-14962) on July 22, 2020. At the time of the filing, Debtor had estimated assets of between $100,001 and $500,000 and liabilities of between $1 million and $10 million. Jorgensen, Brownell & Pepin P.C. is Debtor's legal counsel. HASBRO INC: Egan-Jones Lowers Sr. Unsecured Ratings to BB --------------------------------------------------------- Egan-Jones Ratings Company, on July 30, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Hasbro, Incorporated to BB from BB+. Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. designs, manufactures, and markets toys, games, interactive software, puzzles, and infant products internationally. HCA HEALTHCARE: Egan-Jones Hikes Senior Unsecured Rating to B+ -------------------------------------------------------------- Egan-Jones Ratings Company, on July 28, 2020, upgraded the local currency senior unsecured rating on debt issued by HCA Healthcare, Inc. to B+ from B. Headquartered in Nashville, Tennessee, HCA Healthcare, Inc. offers health care services. HENRY ANESTHESIA: Hires Jones & Walden as Counsel ------------------------------------------------- Henry Anesthesia Associates, LLC, seeks authority from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Jones & Walden LLC, as counsel to the Debtor. Henry Anesthesia requires Jones & Walden to: (a) prepare of pleadings and applications; (b) conduct of examination; (c) advise the Debtor of its rights, duties and obligations as a debtor-in-possession; (d) consult with the Debtor and represent with respect to a Chapter 11 plan; (e) perform legal services incidental and necessary to the day-to-day operations of Applicant's business, including, but not limited to, institution and prosecution of necessary legal proceedings, and general business legal advice and assistance; and (f) take any and all other action incident to the proper preservation and administration of the Debtor's estate and business. Jones & Walden will be paid at these hourly rates: Attorneys $225 to $375 Paralegals $125 to $150 As of the petition date, Jones & Walden received a retainer in the amount of $55,000 from the Debtor's affiliates. Jones & Walden will also be reimbursed for reasonable out-of-pocket expenses incurred. Leslie M. Pineyro, partner of Jones & Walden LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Jones & Walden can be reached at: Leslie M. Pineyro, Esq. JONES & WALDEN LLC 699 Piedmont Avenue, NE Atlanta, GA 30308 Tel: (404) 564-9300 E-mail: cmccord@joneswalden.com About Henry Anesthesia Associates Henry Anesthesia Associates LLC is a Georgia for-profit limited liability company which provides anesthesiology services. The Debtor previously sought bankruptcy protection on Sept. 6, 2019 (Bankr. N.D. Ga. Case No. 19-64159). Henry Anesthesia Associates LLC, based in Stockbridge, GA, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 20-68477) on July 28, 2020. In the petition signed by Kenneth Mims, M.D., manager, the Debtor was estimated to have $1 million to $10 million in both assets and liabilities. The Hon. Lisa Ritchey Craig presides over the case. JONES & WALDEN, LLC, serves as bankruptcy counsel to the Debtor. HITZ RESTAURANT: In Chicago, Rent May Be Reduced Due to Shutdown ---------------------------------------------------------------- Lauren Newoman of Thompson Coburn LLP wrote an article on JD Supra titled "Chicago Bankruptcy Court holds rent may be reduced during Chapter 11 proceedings due to COVID-19 shutdown orders." A Chicago bankruptcy court recently ruled in In re Hitz Restaurant Group that a debtor's obligation to pay rent during its bankruptcy case may be temporarily reduced because of a force majeure clause in the lease and the governor's COVID-19 stay-at-home order. Both landlords and tenants should be aware that this rent reduction was carefully crafted and was not unlimited by the court. Background Hitz Restaurant Group operated Giglio’s State Street Tavern in Chicago. After the company filed Chapter 11, its landlord moved for relief from the automatic stay because the debtor had not paid rent since March. In the alternative, the landlord requested that the debtor be required to immediately to pay post-petition rent and timely perform all future rent obligations. The landlord based its request on Section 365(d)(3) of the Bankruptcy Code, which requires that a debtor timely perform all post-petition obligations, "under any unexpired lease of nonresidential real property until such lease is assumed or rejected…." The debtor argued that the terms of the lease excused the debtor from the obligation to pay rent. In particular, the debtor focused on the lease's force majeure clause, which excused performance by either the landlord or the tenant "but only so long as the performance of any of its obligations are prevented or delayed, retarded or hindered by…laws, governmental action or inaction, orders of government…Lack of money shall not be grounds for Force Majeure." The court then evaluated whether the governor's executive order preventing the consumption of food and drink on Illinois restaurants constituted governmental action triggering application of the force majeure clause. The executive order prohibited on premises consumption of food and drink in restaurants. Notably, the Governor's executive order did not prohibit curbside-pickup and delivery. Decision The court concluded that the lease's force majeure clause applied to the debtor's request for rent relief. The court noted that interpretation of the force majeure clause was a matter of Illinois state contract law. Under Illinois law, a force majeure clause will only excuse performance if the triggering event is the proximate cause of the party’s non-performance under the contract. The Governor's stay at home order prohibited on-premises consumption of food and beverages, but allowed for in-house delivery, third party delivery, drive-through and curbside-pickup to purchase food and beverages. Therefore, not all restaurant operations were prohibited. With that backdrop, the court ruled that the contractual amount of March's rent was due by the debtor because the rent was due on the first day of the month under the lease and the shutdown order did not go into effect until March 16. However, the court held the debtor was excused from paying the full monthly rent beginning on April 1. The court reasoned, however, that the debtor was obligated to pay 25% of the rent because 75% of the restaurant’s square footage was used for in-person dining and 25% of the premises could be used for curbside pickup and delivery. The court acknowledged that the evidence introduced at the hearing was sparse on this point, but nevertheless based its conclusion on reduced use of the space by the debtor. Since only the kitchen could be in use during this time, the debtor owed 25% of the rent based on the limited use of the space. The court also explained that as the debtor's use of the space would increase as governmental restrictions are gradually lifted and rent could be increased as well. Monthly rental payments due after that were likely to increase, as the government's shutdown restrictions were lifted and the amount of space in the restaurant used by the debtor increased. Finally, since this case came to the court upon a motion for relief from the automatic stay, the court noted that those proceedings are normally summary proceedings and things needed to move quickly. The court required the past-due rental payments to be paid to the landlord within a matter of weeks from the entry of its decision. In addition, the court authorized the reduced payment of 25% of both the common area maintenance fees and real estate taxes for the months of April, May and June as well. Analysis This decision illustrates the lengths to which bankruptcy courts have gone to fashion equitable remedies to deal with the unprecedented COVID-19 restrictions. For example, in the bankruptcy case of Pier I Imports, Inc., the debtors filed an emergency motion to stop paying rent while continuing to pay only "critical business expenses" for a short time, due to store closures. Specifically, the debtors in Pier I Imports requested that they not be required to pay rent to certain landlords, but would continue to pay insurance and utilities. The court allowed the extraordinary relief, and deferred some of the rental payments. The court emphasized that, "Covid-19 presents a temporary, unforeseen and unforeseeable glitch in the administration of the Debtors' Bankruptcy Cases." The debtors in Pier I Imports not only planned to resume rental payments on reopening of the stores, they planned to cure the default prior to confirmation of a plan. In that regard, Pier I Imports differs from the Hitz case, where the debtor tenant in Hitz was excused from payment 75% of the rent during the shutdown. Conclusion While these types of rent abatements or concessions now being allowed by the Bankruptcy Courts certainly assists a tenant’s reorganization efforts, the reduction in rent will certainly affect landlords, many of whom will have mortgage lenders. Mortgage loan defaults by landlords and property owners may follow rent concession orders. Not every property owner is in a position to "carry" its tenants through the Chapter 11 process, and just like tenants, property owners very greatly in size and resources. There may be unintended consequences from the best of intentions. Today's successful reorganization could be tomorrow’s mortgage foreclosure. HORNBLOWER SUB: Moody's Cuts PDR to Caa3-PD on Distressed Exchange ------------------------------------------------------------------ Moody's Investors Service downgraded Hornblower Sub, LLC's Probability of Default Rating to Caa3-PD from Caa2-PD. Concurrently, Moody's affirmed Hornblower's Corporate Family Rating at Caa2 and senior secured rating at Caa2. The outlook remains negative. "The downgrade reflects the company's proposed debt exchange which would defer cash interest payments and would be viewed as a distressed exchange by Moody's despite modestly improving the company's short-term liquidity" stated Pete Trombetta, Moody's lodging and cruise analyst. 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. Its action reflects the impact on Hornblower of the deterioration in credit quality it has triggered, given its exposure to ongoing travel restrictions and limitations on public gatherings, which has left it vulnerable to shifts in market demand and sentiment in these unprecedented operating conditions. Downgrades: Issuer: Hornblower Sub, LLC Probability of Default Rating, Downgraded to Caa3-PD from Caa2-PD Affirmations: Issuer: Hornblower Sub, LLC Corporate Family Rating, Affirmed Caa2 Senior Secured 1st Lien Bank Credit Facility, Affirmed Caa2 (LGD3 from LGD4) Outlook Actions: Issuer: Hornblower Sub, LLC Outlook, Remains Negative RATINGS RATIONALE Hornblower's credit profile is constrained by Moody's forecast of weak liquidity even with the potential to defer a portion of its cash interest due to the impact from the spread of COVID-19 that has forced Hornblower to suspend operations in most of its business segments. The company has suspended most of its operations since March 2020 and significant limitations on public gatherings and travel restrictions are expected to remain in place at a minimum over the next two quarters. The company's credit profile also reflects its small scale in terms of absolute level of earnings and the company's earnings concentration in its concessions segment. Following the Entertainment Cruises acquisition, the company's concession segment -- which includes Alcatraz Cruises, Statue Cruises, Niagara Cruises and the NYC Ferry -- under normal operating conditions accounts for more than 40% of earnings. The Statue of Liberty/Ellis Island concession is currently up for renewal, and the loss of this contract would have a negative impact on operations until the company is able to redeploy the ships. The company benefits from the exclusive nature of multiyear contracts to operate ferry transportation services at two National Park Service locations (Alcatraz and Statue of Liberty/Ellis Island) and the Canadian side of the Niagara Falls for the Niagara Parks Commission. The company is also the exclusive operator of the NYC Ferry system which serviced about 6.3 million passengers in calendar year 2019. The company recently began operating under a new contract for its Alcatraz concession that runs through 2034. The negative outlook reflects the continued pressures that Hornblower faces as a result of COVID-19 related suspensions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The company's ratings could be downgraded if the expected recovery rate declines for any reason or should the company pursue a debt restructuring or Chapter 11 filing. Positive rating action is unlikely in the near term given the negative outlook; however, ratings could be upgraded should the company's operations return to a normalized level and liquidity is improved. Moody's expects to append the /LD to Caa3-PD probability of default rating upon the closing of the proposed exchange offer acknowledging the limited default event. Through its various subsidiaries, Hornblower Holdco is a concessioner of ferry transportation services to the National Park Service for Alcatraz Island and the Statue of Liberty/Ellis Island and the Niagara Parks Commission for the Canadian side of Niagara Falls, and is the exclusive operator of the NYC Ferry system. The company also provides cruises & events service in 11 markets in the US, Canada and the UK, operates overnight cruises on the Mississippi River, the Pacific Northwest, and the Great Lakes, as well as provides maritime operations and management services to public and private clients. The company, which is headquartered in San Francisco, California, had gross revenues of about $687 million for the twelve-month ending period March 31, 2020 and does not file public financials. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. ICONIX BRAND: Completes Umbro China Sale for $62.5 Million ---------------------------------------------------------- Iconix Brand Group, Inc. and its indirect wholly-owned subsidiary, Iconix Luxembourg Holdings S.a r.l., completed the previously announced sale of Umbro China, Limited, a wholly-owned subsidiary of Iconix Luxembourg, for consideration of approximately $62.5 million. The Umbro China Sale included the sale of the Umbro sports brand in the People's Republic of China, Hong Kong, Taiwan and Macau. The Company anticipates using the net proceeds from the Umbro China Sale to repay amounts due under its existing financing arrangements, and otherwise for general corporate purposes. About Iconix Brand Iconix Brand Group, Inc. owns, licenses and markets a portfolio of consumer brands including: CANDIE'S, BONGO, JOE BOXER, RAMPAGE, MUDD, MOSSIMO, LONDON FOG, OCEAN PACIFIC, DANSKIN, ROCAWEAR, CANNON, ROYAL VELVET, FIELDCREST, CHARISMA, STARTER, WAVERLY, ZOO YORK, UMBRO, LEE COOPER, ECKO UNLTD., MARC ECKO, ARTFUL DODGER, and HYDRAULIC. In addition, Iconix owns interests in the MATERIAL GIRL, ED HARDY, TRUTH OR DARE, MODERN AMUSEMENT BUFFALO and PONY brands. The Company licenses its brands to a network of retailers and manufacturers. Through its in-house business development, merchandising, advertising and public relations departments, Iconix manages its brands to drive greater consumer awareness and brand loyalty. Iconix Brand reported a net loss attributable to the company of $111.51 million for the year ended Dec. 31, 2019, compared to a net loss attributable to the company of $100.52 million for the year ended Dec. 31, 2018. As of March 31, 2020, Iconix Brand had $465.25 million in total assets, $712.25 million in total liabilities, $31.34 million in redeemable non-controlling interest, and a total stockholders' deficit of $278.35 million. BDO USA, LLP, in New York, NY, the Company's auditor since 1998, issued a "going concern" qualification in its report dated March 30, 2020 citing that the Company has suffered recurring losses and has certain debt agreements which require compliance with financial covenants. The COVID 19 pandemic is expected to have a material adverse effect on the Company's results of operation, cash flows and liquidity, including compliance with future debt covenants. These conditions raise substantial doubt about the Company's ability to continue as a going concern. IMERYS TALC: Sale Process Okayed Despite Concerns of Insurers ------------------------------------------------------------- Law360 reports that a Delaware judge approved Chapter 11 sale procedures for Johnson & Johnson talc supplier Imerys Talc America Inc. despite opposition from a group of insurers who contended they may not be left with enough time to mount a challenge if certain insurance policies are included in the sale. During a hearing held virtually, U.S. Bankruptcy Judge Laurie Selber Silverstein gave her nod to the procedures, with an October date targeted for the court to consider the sale. A stalking horse bidder is not yet in place. About Imerys Talc America Imerys Talc and its subsidiaries --https://www.imerys-performance-additives.com/ -- are in the business of mining, processing, selling, and distributing talc. Talc is a hydrated magnesium silicate that is used in the manufacturing of dozens of products in a variety of sectors, including coatings, rubber, paper, polymers, cosmetics, food, and pharmaceuticals. Its talc operations include talc mines, plants, and distribution facilities located in: Montana (Yellowstone, Sappington, and Three Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also utilizes offices located in San Jose, California and Roswell, Georgia. Imerys Talc America, Inc., and two subsidiaries, namely Imerys Talc Vermont, Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The Debtors were estimated to have $100 million to $500 million in assets and $50 million to $100 million in liabilities as of the bankruptcy filing. The Hon. Laurie Selber Silverstein is the case judge. The Debtors tapped Richards, Layton & Finger, P.A., and Latham & Watkins LLP as counsel; Alvarez & Marsal North America, LLC as financial advisor; and Prime Clerk LLC as claims agent. INSPIREMD INC: Incurs $2.48 Million Net Loss in Second Quarter -------------------------------------------------------------- InspireMD, Inc., filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss of $2.48 million on $313,000 of revenues for the three months ended June 30, 2020, compared to a net loss of $2.21 million on $1.35 million of revenues for the three months ended June 30, 2019. "COVID-19 placed significant pressure on the operations of healthcare facilities worldwide, resulting in interruptions in elective procedure volumes, including critical carotid artery treatments. However, we are encouraged by the gradual resumption of these crucial procedures in a growing number of our key markets in Europe and other territories, and we look forward to this expansion taking hold in South America as well. We are also buoyed by the scientific validation we continue to receive in both peer-reviewed publications and opportunities to present at medical conferences where our CGuard MicroNet technology is being recognized as a valued advancement in the carotid stent category," said Marvin Slosman, InspireMD's chief executive officer. "Our expansion strategy continues to progress, with our recent Brazilian approval for CGuard MicroNet introducing us to the largest market for medical devices in Latin America and one of the top overall global markets for carotid artery disease. We believe this approval will set the stage for continued expansion into other countries in South America. "We are in the process of addressing the agencies remaining requests, specifically related to the stent-embolic protection device (EPD) compatibility performance testing to gain full FDA approval of our Investigational Device Exemption (IDE) application to initiate a pivotal study of CGuard EPS. We have already completed the testing of additional stents according to the FDA's specifications, and have employed alternative visualization modalities that, we believe, will ultimately allow us to gain full approval. Having an approved IDE is an extremely significant step towards enabling us to initiate a pivotal trial in the United States, clearly one of the world’s most important markets for carotid artery disease and other vascular treatments. We previously indicated that the FDA has concurred with our clinical study design and data requirements to support the market approval of the device. Accordingly, we believe that we are well positioned from a regulatory perspective in terms of our ability to initiate a trial. "In addition, we believe the completion of our $11.5M financing will help ensure we are capable of advancing our commercial expansion and research and development activities as a pillar of our growth objectives. Although the pandemic has put a spotlight on the supply chain infrastructure challenges many in our field are facing, we stand at the ready to fulfill the needs of physicians and their patients for these serious and lifesaving procedures," Mr. Slosman concluded. For the six months ended June 30, 2020, the Company reported a net loss of $4.46 million on $1.35 million of revenues compared to a net lsos of $5.41 million on $1.77 million of revenues for the six months ended June 30, 2019. As of June 30, 2020, the Company had $17.74 million in total assets, $4.53 million in total liabilities, and $13.21 million in total equity. As of June 30, 2020, cash and cash equivalents were $13,861,000 compared to $5,514,000 as of Dec. 31, 2019. The Company has an accumulated deficit as of June 30, 2020, as well as a history of net losses and negative operating cash flows in recent years. The Company expects to continue incurring losses and negative cash flows from operations until its products (primarily CGuard EPS) reach commercial profitability. As a result of these expected losses and negative cash flows from operations, along with the Company's current cash position, the Company has sufficient resources to fund operations through the third quarter of 2021. Therefore, there is substantial doubt about the Company's ability to continue as a going concern. "Management's plans include the continued commercialization of the Company's products and raising capital through the sale of additional equity securities, debt or capital inflows from strategic partnerships. There are no assurances however, that the Company will be successful in obtaining the level of financing needed for its operations. The COVID-19 pandemic has resulted in significant financial market volatility and uncertainty in recent weeks. A continuation or worsening of the levels of market disruption and volatility seen in the recent past could have an adverse effect on our ability to access capital and on the market price of our common stock, and we may not be able to successfully raise capital through the sale of our securities. If the Company is unsuccessful in commercializing its products and raising capital, it may need to reduce activities, curtail or cease operations." A full-text copy of the Form 10-Q is available for free at: https://is.gd/86yodZ About InspireMD Inc. Headquartered in Tel Aviv, Israel, InspireMD -- http://www.inspiremd.com/-- is a medical device company focusing on the development and commercialization of its proprietary MicroNet stent platform technology for the treatment of complex vascular and coronary disease. A stent is an expandable "scaffold-like" device, usually constructed of a metallic material, that is inserted into an artery to expand the inside passage and improve blood flow. Its MicroNet, a micron mesh sleeve, is wrapped over a stent to provide embolic protection in stenting procedures. InspireMD recorded a net loss of $10.04 million for the year ended Dec. 31, 2019, compared to a net loss of $7.24 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $7.38 million in total assets, $3.91 million in total liabilities, and $3.48 million in total equity. Kesselman & Kesselman, in Tel-Aviv, Israel, the Company's auditor since 2010, issued a "going concern" qualification in its report dated March 9, 2020, citing that the Company has suffered recurring losses from operations and cash outflows from operating activities that raise substantial doubt about its ability to continue as a going concern. INTELSAT SA: Wins Court Approval for the $17M Bonus Plan for Execs. ------------------------------------------------------------------- Alex Wolf, writing for Bloomberg Law, reports that Intelsat SA won court approval to pay up to $17 million in incentive-based bonuses to six executives while the satellite operator reorganizes in bankruptcy, overcoming a Justice Department challenge. The Luxembourg-based telecom's "key employee" bonus program is adequately explained and designed to incentivize senior management, Judge Keith L. Phillips ruled during a telephonic hearing at the U.S. Bankruptcy Court for the Eastern District of Virginia. The ruling puts to rest an objection raised by the DOJ's bankruptcy watchdog, the U.S. Trustee's Office, which said the executives' underlying targets are insufficiently defined. Instead, the bonuses could be used impermissibly to award additional compensation to top managers for simply staying with the company as it restructures in Chapter 11, the Trustee said. The proposed recipients have incurred additional challenging tasks "while in the midst of a global pandemic," Judge Phillips said during the hearing. "It's not a disguised retention plan." About Intelsat SA 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 sought Chapter 11 protection (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. The Debtors tapped KIRKLAND & ELLIS LLP, and KUTAK ROCK LLP, as counsel; ALVAREZ & MARSAL NORTH AMERICA, LLC as restructuring advisor; PJT PARTNERS LP as investment banker; STRETTO as claims and noticing agent. ISLAND CAPITAL: Seeks to Hire Friend Law Firm as Counsel -------------------------------------------------------- Island Capital, Inc., seeks authority from the U.S. Bankruptcy Court for the Eastern District of Kentucky to employ Friend Law Firm, PLLC, as counsel to the Debtor. Island Capital requires Friend Law Firm to: a. represent the Debtor in this Chapter 11 case, and to advise the Debtor as to its rights, duties and powers as Debtor in Possession; b. prepare and file all necessary statements, schedules, and other documents and to negotiate and prepare one or more plans of reorganization for the Debtor; c. represent the Debtor at all hearings, meetings of creditors, conferences, trials, and other proceedings in this case; d. prepare any necessary motions related to the sale of collateral, the hiring of professionals, or any necessary objections to proofs of claim; e. perform such other legal services as may be necessary in connection with this case, including but not limited to: actions necessary to protect and preserve the Estate of the Debtor; the prosecution of actions on the Debtor's behalf; the defense of any actions commenced against the Debtor; and, negotiations concerning all litigation which may arise involving the Debtor. Friend Law Firm will be paid at these hourly rates: Attorneys $300 Associates $200 Friend Law Firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Noah R. Friend, partner of Friend Law Firm, 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. Friend Law Firm can be reached at: Noah R. Friend, Esq. LAW FIRM, PLLC P.O. Box 341 Versailles, KY 40383 Tel: (606) 369-7030 Fax: (502) 716-6158 E-mail: noah@friendlawfirm.com About Island Capital, Inc. Island Capital, Inc., based in Pikeville, KY, filed a Chapter 11 petition (Bankr. E.D. Ky. Case No. 20-70342) on July 9, 2020. NOAH R FRIEND LAW FIRM, serves as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Anthony Baker, director. J.C. PENNEY: Most Stores Reopened as Chapter 11 Case Proceeds ------------------------------------------------------------- Vince Sullivan, writing for Law360, reports that attorneys representing J.C. Penney told a Texas bankruptcy judge in early July 2020 that its Chapter 11 case is progressing on schedule, and that the retail icon has been able to reopen 831 of its nearly 850 stores as COVID-19 restrictions have been lifted in different parts of the country. During a hearing conducted via phone and videoconference, debtor attorney Joshua A. Sussberg of Kirkland & Ellis LLP said that ahead of an upcoming deadline in its Chapter 11 case, J.C. Penney has been able to reopen the bulk of its stores and that revenues from those locations have surpassed initial projections. As of the end of June, the debtor had about $979 million in cash on hand, beating its earlier cash flow projections by $100 million, he told the court. "The company was opening locations as and when they could based on state and regulatory restrictions," Sussberg said. "They've been able to open some of their higher-performing stores more recently. With those higher-performing stores, the revenues have been better. We think that's a positive, and we think it will continue to trend in the right direction." J.C. Penney is approaching a July 8 deadline to submit its business plan, including whether it will seek to restructure the company by spinning off its real estate holdings from its operating assets as a property company, or selling the operating company as a whole. Sussberg said the company's first-lien lenders will have to approve the business plan by July 15. He explained that the so-called PropCo, structured as a public real estate investment trust, will be owned by first-lien lenders, and the debtor is exploring a potential sale of the OpCo. So far, at least 20 potential investors have signed nondisclosure agreements, and four are performing intensive diligence on the assets, Sussberg said. The debtor will also need to decide by Thursday if it needs to make a second draw on its debtor-in-possession financing. If the all-asset sale path is chosen, J.C. Penney can draw $50 million of the remaining $225 million available under the DIP, Sussberg said. If it decides to go with the real estate spinoff, it can draw the full amount. It can also decide to not draw any of the remaining DIP financing, but Sussberg said that despite the company's higher revenue since reopening most of its stores, the uncertainty surrounding a potential resurgence in COVID-19 and the resumption of business restrictions makes that an unlikely scenario. J.C. Penney filed for bankruptcy on May 15, saying it had been undergoing a comprehensive business overhaul for the last two years to deal with the general decrease in brick-and-mortar retail sales and had been putting together an out-of-court restructuring of its $8 billion in debt until the coronavirus pandemic doomed those efforts. The company was forced to shutter all 850 of its stores and furlough most of its 85,000 employees. The retailer's Chapter 11 plan proposes splitting off the debtor's real estate holdings into a separate entity and closing up to 242 stores in multiple waves, according to court filings. Sussberg said Wednesday that the first wave has seen more than 130 stores permanently closed. The second wave will begin this week and will see 13 more stores shut down, he said. J.C. Penney is represented by Joshua A. Sussberg, Christopher J. Marcus and Aparna Yenamandra of Kirkland & Ellis LLP, and Matthew D. Cavenaugh, Jennifer F. Wertz, Kristhy M. Peguero and Veronica A. Polnick of Jackson Walker LLP. About J.C. Penney J.C. Penney Company, Inc. -- http://www.jcpenney.com/-- is an apparel and home retailer, offering merchandise from an extensive portfolio of private, exclusive, and national brands at over 850 stores and online. It sells clothing for women, men, juniors, kids, and babies. On May 15, 2020, J.C. Penney announced that it has entered into a restructuring support agreement with lenders holding 70% of its first lien debt. The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan that is expected to reduce several billion dollars of indebtedness. To implement the plan, J.C. Penney and its affiliates on May 15, 2020, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-20182). At the time of the filing, J.C. Penney disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge David R. Jones oversees the cases. The Debtors have tapped Kirkland & Ellis and Jackson Walker, LLP as legal counsel; Katten Muchin Rosenman, LLP as special counsel; Lazard Freres & Co. LLC as investment banker; AlixPartners, LLP as restructuring advisor; and KPMG, LLP as tax consultant. Prime Clerk is the claims agent, maintaining the page http://cases.primeclerk.com/JCPenney A committee of unsecured creditors has been appointed in Debtors' Chapter 11 cases. The committee is represented by Cole Schotz, P.C., and Cooley, LLP. J.C. PENNEY: Simon Eyeing to Redevelop Certain Real Estate ---------------------------------------------------------- Liz Kiesche, writing for Seeking Alpha, reports that Compass Point analyst Floris van Dijkum writes in a note that Simon Property Group Inc. (SPG) may be interested in owning J.C. Penney (OTCPK:JCPNQ) in order to redevelop choice pieces of real estate. "We believe Simon wants to control the J.C. Penney boxes and land so that it can ultimately redevelop many of these in order to densify and introduce mixed use elements," van Dijkum said. That could "unlock significantly greater value while boosting traffic for real estate," according to the note. Earlier June, Bloomberg reported that Simon, Brookfield and Authentic Brands were considering making a bid for the department store chain that's now in Chapter 11 bankruptcy proceedings. If Simon succeeds in buying J.C. Penney, it would mark its third purchase of a retailer; it bought Forever 21 out of bankruptcy in February and Aeropostale in 2016. Simon Property Group, Inc. is an American commercial real estate company, the largest retail real estate investment trust, and the largest shopping mall operator in the US. About J.C. Penney J.C. Penney Company, Inc. -- http://www.jcpenney.com/-- is an apparel and home retailer, offering merchandise from an extensive portfolio of private, exclusive, and national brands at over 850 stores and online. It sells clothing for women, men, juniors, kids, and babies. On May 15, 2020, J.C. Penney announced that it has entered into a restructuring support agreement with lenders holding 70% of its first lien debt. The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan that is expected to reduce several billion dollars of indebtedness. To implement the plan, J.C. Penney and its affiliates on May 15, 2020, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-20182). At the time of the filing, J.C. Penney disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge David R. Jones oversees the cases. The Debtors have tapped Kirkland & Ellis and Jackson Walker, LLP as legal counsel; Katten Muchin Rosenman, LLP as special counsel; Lazard Freres & Co. LLC as investment banker; AlixPartners, LLP as restructuring advisor; and KPMG, LLP as tax consultant. Prime Clerk is the claims agent, maintaining the page http://cases.primeclerk.com/JCPenney A committee of unsecured creditors has been appointed in Debtors' Chapter 11 cases. The committee is represented by Cole Schotz, P.C., and Cooley, LLP. JEWEL COUTURE: Case Summary & 4 Unsecured Creditors --------------------------------------------------- Debtor: Jewel Couture, LLC 3800 Big Flatts Church Road Fleetwood, NC 28626 Business Description: Jewel Couture, LLC is engaged in the wholesale distribution of jewelry, precious stones and metals. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Western District of North Carolina Case No.: 20-50328 Judge: Hon. Laura T. Beyer Debtor's Counsel: Robert Laney, Esq. ROBERT P. LANEY, ATTORNEY, PLLC 906 Main Street, Suite 202 N. Wilkesboro, NC 28659 Tel: 336-838-1674 E-mail: rlaney@robertlaneylawfirm.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Mia Katrin Hartsook, managing member. A copy of the petition containing, among other items, a list of the Debtor's four unsecured creditors is available for free at PacerMonitor.com at: https://is.gd/OnGxNS KD BELLE: Seeks to Hire Sternberg Naccari as Counsel ---------------------------------------------------- KD Belle Terre, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Louisiana to employ Sternberg Naccari & White, LLC, as counsel to the Debtor. KD Belle requires Sternberg Naccari to give the Debtor legal advice with respect to the Debtor's powers and duties as a debtor-in-possession, and to perform all legal services for the Debtor which may be necessary. Sternberg Naccari will be paid at these hourly rates: Attorneys $175 to $325 Paralegals $50 Sternberg Naccari received a retainer from the Debtor in the amount of $15,000, plus $1,717 filing fee. Sternberg Naccari will also be reimbursed for reasonable out-of-pocket expenses incurred. Ryan J. Richmond, partner of Sternberg Naccari & White, LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Sternberg Naccari can be reached at: STERNBERG, NACCARI & WHITE, LLC Ryan J. Richmond, Esq. 17732 Highland Road, Suite G-228 Baton Rouge, LA 70810 Tel: (225) 412-3667 Fax: (225) 286-3046 E-mail: ryan@snw.law About KD Belle Terre KD Belle Terre L.L.C. is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)), whose principal assets are located at 150 Belle Terre Boulevard La Place, LA 70068. KD Belle Terre, L.L.C., based in Baton Rouge, LA, filed a Chapter 11 petition (Bankr. M.D. La. Case No. 20-10537) on July 29, 2020. In the petition signed by Michael D. Kimble, manager, the Debtor was estimated to have $1 million to $10 million in both assets and liabilities. STERNBERG, NACCARI & WHITE, LLC, serves as bankruptcy counsel to the Debtor. KOPIN CORPORATION: Incurs $1.12 Million Net Loss in Second Quarter ------------------------------------------------------------------ Kopin Corporation filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss attributable to the company of $1.12 million on $8.81 million of total revenues for the three months ended June 27, 2020, compared to a net loss attributable to the company of $4.26 million on $9.11 million of total revenues for the three months ended June 29, 2019. For the six months ended June 27, 2020, the Company reported a net loss attributable to the company of $4.72 million on $16.69 million of total revenues compared to a net loss attributable to the company of $15.59 million on $14.65 million of total revenues for the six months ended June 29, 2019. As of June 27, 2020, the Company had $37.63 million in total assets, $10.98 million in total current liabilities, $248,384 in noncurrent contract liabilities and asset retirement obligations, $1.24 million in operating lease liabilities, $1.10 million in other long-term obligations, and $24.06 million in total stockholders' equity. Research and development expenses for the second quarter of 2020 were $2.2 million compared to $3.3 million for the second quarter of 2019, a 33% decrease year over year. The decline in R&D expenses is due in part to the licensing and sale of the Company's Golden-I Infinity and Solos technologies as part of its commercialization strategy which it commenced in 2019. In fiscal year 2020, the Company expects its R&D expenditures to primarily focus on its display products, overlay weapon sights and organic light emitting diode display technologies. Selling, general and administrative expenses were $2.9 million for the second quarter of 2020, compared to $5.4 million for the second quarter of 2019, a 46% decrease year over year. SG&A decreased for the three and six months ended June 27, 2020 as compared to the three and six months ended June 29, 2019 primarily due to a decrease in compensation expenses including stock-based compensation, bad debt expense, professional fees, information technology expenses, travel and accretion of the NVIS contingent consideration. Net cash used in operating activities for the second quarter ended June 27, 2020 was approximately $2.9 million. Kopin's cash and equivalents and marketable securities were approximately $15.3 million at June 27, 2020 as compared to $21.8 million at Dec. 28, 2019. "We are very pleased that strong demand for our products continued in the second quarter with our total product revenues growing by 50% year over year," said Dr. John C.C. Fan, CEO of Kopin. "Revenue growth was driven by shipments for current defense production programs along with funded development programs tied to longer term revenue opportunities. Our strong pipeline of defense development programs, which are in support of soldiers, fixed-wing and rotary aircraft and armored vehicles, continues to expand and is now the strongest in Kopin's history. While some of these development programs may not contribute significantly to product revenue for the next year or two, or perhaps not all, we expect the strength in our defense revenues to continue." Dr. Fan continued, "From an operational standpoint, our ongoing initiatives to improve execution and manufacturing efficiencies are starting to show results, and we achieved further progress in reducing our cost structure. In the second quarter R&D and SG&A were lower by 41% versus the second quarter of 2019, with current internal R&D investments primarily focused on our Organic Light Emitting Diode (OLED) displays. We recently announced our latest achievement in the Lightning 2.6K x 2.6K OLED display (2560 x 2560 resolution) based on our duo-stack, ColorMaxTM technology, which demonstrated breakthrough color fidelity (> 115% sRGB) combined with high efficiency (> 6 candela per ampere) and brightness (> 1000 nits). In addition to shipping our first production order of OLED backplane wafers in the quarter, we also received a follow-on order. "Our continued success would not be possible without the dedication of our employees. Kopin has remained open and operating during the COVID 19 lockdown due to the essential nature of our defense-related business. I believe we have done a great job coordinating the activities of our employees, both working on-site and remotely. While we continue to take additional precautions, our AMLCD products are made in a Class 10 cleanroom where our employees have always been gowned and worn masks and gloves, providing important protection." Dr. Fan concluded, "While we continue to manage through these unusual times, we believe our strong defense business, our full suite of micro displays, OLED micro displays development activities and continued emphasis on efficiently managing our cost structure will enable us to continue our momentum into the second half of 2020 and beyond." A full-text copy of the Form 10-Q is available for free at: https://is.gd/ORz4Vw About Kopin Kopin Corporation -- www.kopin.com -- is a developer and provider of transmissive and reflective active matrix liquid crystal and organic light emitting diode (OLED) micro displays for integration into systems for military, industrial and consumer products. Kopin's technology portfolio includes ultra-small displays, optics, and low-power ASICs. Kopin reported a net loss of $29.37 million in 2019, a net loss of $34.48 million in 2018, and a net loss of $25.38 million in 2017. RSM US LLP, in Stamford, Connecticut, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 11, 2020, citing that the Company has suffered recurring losses from operations and recurring negative operating cash flows that raise substantial doubt about its ability to continue as a going concern. LATAM AIRLINES: Committee Taps Klestadt Winters as Conflict Counsel ------------------------------------------------------------------- The official committee of unsecured creditors of LATAM Airlines Group S.A. and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to retain Klestadt Winters Jureller Southard & Stevens, LLP. Klestadt Winters will provide legal advice on matters where Dechert LLP, the committee's lead counsel, cannot represent the committee due to a conflict of interest. Klestadt Winters's current standard hourly rates are: Partners $550 - $775 Associates $250 - $495 Paralegals $175 Legal Assistants $175 Tracy Klestadt, Esq., a partner at Klestadt Winters, disclosed in court filings that the firm is a "disinterested person" within the meaning of Bankruptcy Code Section 101(14). In accordance with Appendix B-Guidelines for reviewing fee applications filed by attorneys in larger Chapter 11 cases, Mr. Klestadt disclosed that: -- Klestadt Winters did not agree to a variation from, or an alternative to, its standard or customary billing arrangements; -- no professional at Klestadt Winters included in the engagement varied his rate based on the geographic location of Debtors' bankruptcy cases; and -- the firm did not represent the committee in the 12 months prior to Debtors' bankruptcy filing. The firm can be reached through: Tracy L. Klestadt, Esq. Klestadt Winters Jureller Southard & Stevens, LLP 200 West 41st Street, 17th Floor New York, NY 10036 Phone: (212) 972-3000 Email: tklestadt@klestadt.com About LATAM Airlines Group LATAM Airlines Group S.A. is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM Airlines Group and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. Debtors have tapped Cleary Gottlieb Steen & Hamilton LLP as general bankruptcy counsel; FTI Consulting as restructuring advisor; Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel; PricewaterhouseCoopers Consultores Auditores SpA as independent auditors; and Larrain Vial Servicios Profesionales Limitada as Latin America investment banker. Prime Clerk LLC is the claims agent. The U.S. Trustee for Region 2 appointed a committee of unsecured creditors on June 5, 2020. The committee is represented in Debtors' bankruptcy cases by Dechert LLP. The committee has also tapped Morales & Besa LTDA to provide advice on matters related to the Chilean and cross-border insolvency law. LE PAIN QUOTIDIEN: Sale to Aurify to Keep At Least 35 Stores Open ----------------------------------------------------------------- Daniel Gill, writing for Bloomberg Law, reports that bankrupt Le Pain Quotidien received court approval to be sold for $3 million plus other consideration, allowing at least 35 of the bakery chain's 98 U.S. stores to remain in business. The sale to Aurify Brands LLC's affiliate, LPQ U.S., approved by Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware, was slated close June 29. Aurify essentially rescued the chain -- which filed for bankruptcy under corporate name PQ New York Inc. -- from liquidation, PQ New York's attorney, Michael Merchant of Richards Layton & Finger, P.A., said at a remote hearing. Andy Stern, Aurify's co-CEO, says their strategy for the Le Pain Quotidien cafes saved from bankruptcy is to get them back to their roots, according to Nation's Restaurant News. "The whole attraction here was the brand. We think it's one of the best brands in the industry and it's got tremendous opportunity," he says. "We're trying to reinvest in what the guest experience used to be…It's super important to get all the facets right, from the coffee program to the service style and even the music." Stern says they also plan to rehire about 1,200 of the 2,500 employees that were let go at the beginning of the pandemic. The cafes included in the sale are in New York, Connecticut, Maryland, Virginia, Washington D.C., Florida, and California. Restaurants in these states have recently reclosed because of a rise in COVID-19 cases, and This State Just Shut Down Bars For At Least Another Month. About Le Pain Quotidien Le Pain Quotidien is an international bakery-restaurant chain founded by Alain Coumont on October 26, 1990. It carries an array of baked goods and coffee drinks as well as a dine-in food menu. Founded in Belgium in 1990, Le Pain Quotidien -- which means "the daily bread" in French -- opened its first U.S. store in 1997 and has since become a familiar sight in Manhattan. Based in New York, PQ New York, Inc., is a wholly-owned subsidiary of PQ Licensing SA, a Belgian company, and operated 98 restaurants in the United States under the trade name Le Pain Quotidien. PQ New York, Inc., and other U.S. affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-11266) on May 27, 2020. PQ New York was estimated to have $100 million to $500 million in assets and liabilities as of the Chapter 11 filing. The Debtors tapped RICHARDS, LAYTON & FINGER, P.A. as counsel; and SSG ADVISORS, LLC, as investment banker. PRICEWATERHOUSECOOPERS LLP is the interim management services provider. DONLIN, RECANO & COMPANY, INC., is the claims agent. The Debtors' Belgian parent began its own restructuring in Brussels on May 22, 2020. LEGENDS GOLF: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Legends Golf Orlando LLC 1608 Kennesaw Dr. Clermont, FL 34711 Business Description: Legends Golf Orlando LLC -- https://www.golfsbw.com -- owns and operates a golf course in Clermont, Florida. Designed by architect Arthur Hills, Stoneybrook West Golf Couse's dramatically rolling fairways are framed by towering berms, deep bunkering, and water touching on fourteen holes. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Middle District of Florida Case No.: 20-04460 Debtor's Counsel: Aldo G. Bartolone, Esq. BARTOLONE LAW, PLLC 1030 N. Orange Avenue Suite 300 Orlando, FL 32801 Tel: (407) 294-4440 E-mail: aldo@bartolonelaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Miguel Angel Vidal, 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/cDq0An LIFTOPIA INC: Says Skico's Claims Disputed and Inflated ------------------------------------------------------- Rick Carroll, writing for Aspen Times, reports that online ski-ticket broker Liftopia filed court documents disputing an attempt by Aspen Skiing Co. and other ski-area operators to force it into bankruptcy. In written motions to dismiss the case, attorneys for San Francisco-based Liftopia argued that the amounts Skico and its fellow petitioners claim they are owed -- $3 million in all -- "are inflated and Liftopia rightly disputes all of them." Liftopia's arguments marked the company's initial response to an involuntary-bankruptcy petition filed against it June 2 by Skico and other creditors. Skico joined the petition as managing member of the Mountain Collective pass, which Liftopia had sold since 2012. Skico said it has cut ties with Liftopia, and its $2.38 million claim against Liftopia is the largest amount listed in the involuntary bankruptcy filing, which was made in U.S. Bankruptcy Court in San Francisco. The other creditors are Alterra (with a claim for $63,723), Cypress Bowl Recreations ($395,424) and Araphoe Basin ($175,704). Creditors can petition the court to force a debtor into bankruptcy if they can't get paid, by filing what's called an involuntary petition. In a statement regarding the petition after its filing, Skico spokesman Jeff Hanle said the company tried unsuccessfully to resolve the matter with Liftopia, leading it to join the other petitioners. Skico claims Liftopia owes it the money for sales of the Mountain Collective pass. "Without assurances that its debts were generally being paid currently, could be paid in the future, and in the absence of any concrete plan for ensuring that the business could ultimately satisfy its debts and function as an ongoing concern outside of Chapter 11, we felt we had no choice but to take the steps we did to protect the interests of all of Liftopia's creditors, most directly, those of the Mountain Collective member resorts," Hanle said. Liftopia's motion countered that Skico and others have failed to meet certain criteria necessary to force the company, which started in 2005 with an approach toward selling lift tickets similar to what Expedia does with airline tickets, into Chapter 11. Among Liftopia's arguments is that bankruptcy law says there cannot be "a bona fide dispute" between the creditors and debtor over the amount owed, if an involuntary bankruptcy is to proceed. But the creditors overstated their claims by $86,000, which should essentially disqualify their petition, the motion argued. "The Petitioning Creditors listed claim amounts that are wrong because, among other things, they failed (a) to calculate their share of actual pass and ticket revenue accurately, (b) to account for cancellations, chargebacks, advance purchase, no-show and loyalty program participation policies, and partial and full credits, and/or (c) to incorporate other adjustments to their share of revenue properly," the motion said. Skico, as the managing member of Mountain Collective, sold the pass through Liftopia since 2012 until this year's breakup. For the pending 2020-21 season, the Mountain Collective will entitle holders access to 23 resorts. The pass provides access to two days on the slopes of each destination; Aspen-Snowmass counts as one destination. About Liftopia Liftopia, Inc., provides online ski-lift ticketing services. The Company owns and operates a website offering advance ski-lift tickets at partner ski resorts worldwide. Liftopia was subject to an involuntary Chapter 11 bankruptcy petition (Bankr. N.D. Cal. Case No. 20-30450) on June 2, 2020. Alleged creditors who signed the petition were Alterra Mountain Company, Cypress Bowl Recreations Limited Partnership, Dundee Resort Development LLC, and Aspen Skiing Company, L.L.C. Counsel to the petitioners: Joshua D. Morse Pillsbury Winthrop Shaw Pittman LLP Four Embarcadero Center, 22nd Floor San Francisco, CA 94111 Tel: 415-983-1000 E-mail: Joshua.Morse@Pillsburylaw.com The Debtor's counsel: Robert L. Eisenbach, III Cooley LLP 101 California St. 5th Fl. San Francisco, CA 94111-5800 Tel: (415) 693-2000 E-mail: reisenbach@cooley.com LILIS ENERGY: Files for Chapter 11 With Varde-Backed Plan --------------------------------------------------------- Lilis Energy, Inc. (NYSE American: LLEX), an exploration and production company operating in the Permian Basin of West Texas and Southeastern New Mexico, and its subsidiaries filed petitions under Chapter 11 of the United States Bankruptcy Code to initiate voluntary cases in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. The Chapter 11 petitions were filed in accordance with a Restructuring Support Agreement (the "RSA") entered into among the Company and certain of its subsidiaries, certain investment funds and entities affiliated with Varde Partners, Inc. (collectively, the "Varde Funds"), which collectively own all of the Company's outstanding preferred stock, a subordinated portion of the indebtedness outstanding under the Company's Second Amended and Restated Senior Secured Revolving Credit Agreement (as amended, the "Credit Agreement"), a portion of the Company's common stock, and all other lenders under the Credit Agreement (the "RBL Lenders"). Under the RSA, the Company and its subsidiaries, the RBL Lenders and the Värde Funds have agreed, subject to certain conditions set forth in the RSA, to support a restructuring of the Company and its subsidiaries under a Chapter 11 plan of reorganization (a "Plan") to be proposed with terms set forth in the RSA. Such Plan, if consummated, is expected to reduce the Company's funded debt obligations by more than $34.9 million, and right-size the Company's bank indebtedness for future operations. The Plan contemplated by the RSA further provides that shares of the Company's common stock will be canceled for no consideration. The Company believes it is unlikely that the holders of shares of its common stock will receive any consideration for their shares under any plan approved by the Court, irrespective of whether such plan contemplates terms consistent with or similar to those agreed upon in the RSA. Consummation of any restructuring plan will be subject to confirmation by the Court and the satisfaction, or waiver by appropriate parties, of any conditions set forth in such plan and related transaction documents. The Company expects to continue to operate in the ordinary course throughout the restructuring process without material disruption to vendors, suppliers and partners. The Plan is contingent upon the Värde Funds' election to provide, on or before August 17, 2020, an agreed equity commitment and provision of additional debtor-in-possession ("DIP") financing. In the event the Varde Funds elect not to provide DIP financing and to make the equity investment in the Company or the Plan contemplated in the RSA is not otherwise pursued, the RSA provides that the Company will pursue an agreed sales process with respect to its assets. The RSA is also subject to termination by the RBL Lenders and the Varde Funds in the event certain milestones in the reorganization process are not met. "Like many companies in the oil and gas industry, we have been impacted by the severe downturn in commodity prices throughout the COVID-19 pandemic," said Joseph C. Daches, the Company's CEO, President and CFO. "While facing this challenging environment, we have worked diligently to explore a variety of alternatives to cut costs, improve our liquidity and address debt maturities. We are pleased to receive the continued support of our lenders and preferred shareholders and are confident that Lilis Energy can emerge from Chapter 11 better positioned to meet the challenges that have faced us." With the filing, and subject to court approval, the Company has received a commitment from its bank lenders under its Credit Agreement to provide up to $15.0 million in DIP financing. The Company anticipates up to $5.0 million will be available on an interim basis. With the Company’s usual operating cash flows, these financings are expected to provide sufficient liquidity for the Company to continue to operate in the ordinary course through the restructuring process. Additional information about these Chapter 11 cases can be accessed via PACER at https://www.pacer.gov and, subject to the Court's approval, at https://cases.stretto.com/LilisEnergy or by calling (855) 364-4639 (Toll-Free) or (949) 266-6357 (Local). Vinson & Elkins L.L.P. is serving as legal advisor to the Company, Barclays Capital is serving as investment banker for the Company, and Opportune LLP is serving as restructuring advisor to the Company. New Director On June 27, 2020, Markus Specks resigned as a director of the Company. Under their rights as holders of the Company's outstanding preferred stock, the Varde Funds named Mr. Nicholas Winter, a Managing Director of Varde Partners, Inc. as their new designated director, replacing Mr. Specks. About Lilis Energy Lilis Energy, Inc. -- https://www.lilisenergy.com/ -- 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. Lilis Energy and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-33274) on June 28, 2020. As of Dec. 31, 2019, the Debtors had total assets of $258.6 million and total liabilities of $251.2 million. Judge David R. Jones oversees the cases. The Debtors tapped Vinson & Elkins, LLP as legal counsel; Barclays Capital, Inc., as investment banker and financial advisor; BDO, USA LLP as accountant and tax advisor; and Stretto as notice, claims and solicitation agent. MALLINCKRODT PLC: Swings to $933.1M Net Loss in Second Quarter -------------------------------------------------------------- Mallinckrodt plc filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, reporting a net loss of $933.1 million on $166.5 million of net sales for the three months ended June 26, 2020, compared to net income of $6.8 million on $823.3 million of net sales for the three months ended June 28, 2019. For the six months ended June 26, 2020, the Company reported a net loss of $983.3 million on $832.3 million of net sales compared to net income of $161.7 million on $1.61 billion of net sales for the six months ended June 28, 2019. As of June 26, 2020, the Company had $9.69 billion in total assets, $8.72 billion in total liabilities, and $969.5 million in total shareholders' equity. "Our reported GAAP net sales were impacted by the retrospective one-time Acthar Gel Medicaid liability, and our normalized operating results also displayed a contraction this quarter due to the COVID-19 health crisis along with increased competitive and payer pressures on certain products. Amidst these challenges, we continued to operate well, which is a testament to our employees' hard work and commitment to our business, patients and customers," said Mark Trudeau, president and chief executive officer of Mallinckrodt. "We also continue to execute on our strategic priorities – making important progress in advancing our pipeline, including a positive outcome of the recent advisory committee meeting on terlipressin and completion of a rolling submission of a Biologics License Application (BLA) to the FDA for StrataGraft regenerative skin tissue." Trudeau continued, "Looking ahead, we expect our current challenges to continue in the back half of the year. We remain committed to ensuring patients have uninterrupted access to our medicines throughout the COVID-19 health crisis. We continue to be highly focused in the near term on addressing all legal and financial challenges impacting the business." Selling, general and administrative expenses were $231.3 million or 138.9% of net sales, as compared to $225.9 million, or 27.4%, primarily impacted by legal expenses and separation costs. Adjusted SG&A expenses were $197.5 million or 28.2% of adjusted net sales, compared with $208.6 million or 25.3%. The decline in adjusted SG&A expense reflects the Company's ongoing efforts to reduce SG&A, while the percentage of net sales and adjusted net sales were impacted by lower net sales in the second quarter 2020. Research and development expenses were $82.9 million, or 49.8% of net sales, as compared to $79.6 million, or 9.7%. Research and development as a percentage of adjusted net sales was 11.8% versus 9.7%. Interest expense was $64.2 million as compared to $71.5 million, a reduction of 10.2%, driven by lower aggregate debt in 2020, a reduction in floating interest costs, and the reversal of deferred interest associated with the interest-bearing deferred tax obligations. Income tax expense was $161.3 million, for an effective tax rate of negative 20.4%. The adjusted effective tax rate was 4.6% in the second quarter. Cash provided by operating activities in the second quarter was $170.9 million, with free cash flow of $159.5 million. For the six-month period, operating cash flows were $224.6 million, with free cash flows of $193.3 million. The cash balance at the end of the second quarter was $818.3 million, and the revolving credit facility was fully drawn. Total principal debt outstanding at the end of the second quarter was $5.293 billion, with net debt of $4.475 billion. Business and Litigation Update The Company has identified several negative conditions and events impacting the business as of June 26, 2020. Due to pressures from the Acthar Gel Medicaid matter, the ongoing opioid litigation and the Company's existing debts and the related risk of non-compliance with its financial debt covenant over the next twelve months, the Company has been working with external advisors to explore a range of options and engage in dialogue with financial creditors and litigation claimants and their advisors, including the possibility of a filing for reorganization in bankruptcy under Chapter 11 by Mallinckrodt plc and most of its subsidiaries in the near-term. However, these plans have not yet been finalized nor are they fully within the Company's control. The Company said, "The uncertainty surrounding our ability to reach a resolution with certain of our financial creditors and opioid-related plaintiffs in connection with ongoing restructuring and settlement discussions, together with the uncertain outcome of the Medicaid lawsuit, has raised substantial doubt about our ability to continue as a going concern. We may seek protection from our creditors under Chapter 11 of the Bankruptcy Code or an involuntary petition for bankruptcy may be filed against us, either of which could have a material adverse impact on our business, financial condition, results of operations, and cash flows and could place our shareholders at significant risk of losing all of their investment in our ordinary shares." A full-text copy of the Form 10-Q is available for free at: https://is.gd/2OzHur About Mallinckdrodt Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. Mallincrodt recorded a net loss of $996.5 million for the fiscal year 2019 compared to a net loss of $3.61 billion for the fiscal year 2018. As of March 27, 2020, the Company had $10.17 billion in total assets, $8.27 billion in total liabilities, and $1.89 billion in total shareholders' equity. Litigation Settlement On Feb. 25, 2020, Mallinckrodt announced that the Company, certain of its subsidiaries operating the Specialty Generics business and certain other affiliates have reached an agreement in principle on the terms of a global settlement that would resolve all opioid-related claims against the Company. The Litigation Settlement is subject to certain contingencies and may not go into effect in its current form or at all, as a result of which the Company's business prospects may be adversely impacted. The Litigation Settlement contemplates the filing of voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code by the Specialty Generics Subsidiaries and the establishment of a trust for the benefit of plaintiffs holding opioid-related claims against Mallinckrodt. * * * As reported by the TCR on March 23, 2020, S&P Global Ratings affirmed the 'CCC' long-term issuer credit rating on global pharmaceutical company Mallinckrodt PLC and removed the rating from CreditWatch. Mallinckrodt PLC recently announced an unfavorable ruling in its litigation with Centers for Medicare and Medicaid Services (CMS) and Health and Human Services (HHS), potentially owing $650 million and losing annual revenue of $90 million to $100 million. MARCO GENERAL: Unsecured Creditors to Have 5% Recovery Over 5 Years ------------------------------------------------------------------- Marco General Construction, Inc., a California Corporation filed with the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, a Disclosure Statement Describing its Chapter 11 Plan of Reorganization dated June 30, 2020. Class 2 General Unsecured Claims totaling $450,355. General unsecured claimants will receive a total of approximately 5.0% of their claims in monthly payments over five-year period of the Plan. Holders of General Unsecured Claims (Class 2(a)) will receive their pro rata share of $375.30 per month for a total of $22,518 over the five-year period of the Plan. The payments will start on the first day of the first month following the month within which the Effective Date occurs. The Debtor's sole interest holder is Marco Chupina who is the Debtor's President and Chief Executive Officer and 100% shareholder. Mr. Chupina will retain his equity interest in the Debtor. The Debtor will fund the Plan from the continued from the several construction projects it works on at various residential and commercial properties throughout Southern California. A full-text copy of the disclosure statement dated June 30, 2020, is available at https://tinyurl.com/y8rqxtnf from PacerMonitor.com at no charge. Attorney for Debtor: MICHAEL JAY BERGER LAW OFFICES OF MICHAEL JAY BERGER 2 9454 Wilshire Blvd. 6th Floor Beverly Hills, CA 902 12-2929 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 E-mail: michael.bergerbankruptcypower.corn About Marco General Construction Marco General Construction, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-14758) on April 25, 2019. At the time of the filing, the Debtor was estimated to have assets of less than $100,000 and liabilities of less than $1 million. The case is assigned to Judge Sheri Bluebond. The Debtor is represented by the Law Offices of Michael Jay Berger. MATTEL INC: Egan-Jones Lowers Sr. Unsecured Debt Ratings to CCC+ ---------------------------------------------------------------- Egan-Jones Ratings Company, on July 29, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Mattel, Incorporated to CCC+ from B-. EJR also downgraded the rating on commercial paper issued by the Company to C from B. Headquartered in El Segundo, California, Mattel, Inc. designs, manufactures and markets a broad variety of children's toy products on a worldwide basis. MCDERMOTT INTERNATIONAL: Exits Chapter 11 Bankruptcy ---------------------------------------------------- Sergio Chapa, writing for Houston Chronicle, reports that Houston oil field service company McDermott International shed $4.6 billion debt after emerging from bankruptcy. U.S. Bankruptcy Judge David Jones signed an order releasing the company from Chapter 11 reorganization. The oil field service company shed $4.6 billion of debt and emerged with more than $2.9 billion in fresh credit and loans. Exiting bankruptcy also allowed McDermott to complete the $2.7 billion sale of its Lummus Technology for petrochemical plants to a joint partnership between Haldia Petrochemicals and Rhône Capital. Proceeds will be used to pay down McDermott's debt and strengthen its balance sheet. The company is also emerging from bankruptcy with a new seven-member board of directors. Facing enormous cost overruns at construction projects for two LNG plants, McDermott filed for a pre-packaged Chapter 11 bankruptcy in January, some two months before of the onset of the coronavivrus pandemic in the United States and the collapse of oil prices. "We will continue executing on our significant backlog, with a new capital structure to match and support the strength of our operating business, and we emerge well-positioned for long-term growth and success, even amid this period of global uncertainty," McDermott International CEO David Dickson said in a statement. "We look forward to continued delivery on customer projects." About McDermott International Headquartered in Houston, Texas, McDermott (NYSE: MDR) -- http://www.mcdermott.com/-- is a provider of engineering, procurement, construction and installation and technology solutions to the energy industry. Its common stock was/is listed on the New York Stock Exchange under the trading symbol MDR. As of Sept. 30, 2019, McDermott had $8.75 billion in total assets, $9.86 billion in total liabilities, $271 million in redeemable preferred stock, and a total stockholders' deficit of $1.38 billion. On Jan. 21, 2020, McDermott International announced that it has the support of more than two-thirds of all its funded debt creditors for a restructuring transaction that will equitize nearly all the Company's funded debt, eliminating over $4.6 billion of debt. McDermott solicited votes from its lenders and bondholders in support of a prepackaged Chapter 11 Plan of Reorganization and commenced the prepackaged Chapter 11 later in the day, on Jan. 21, 2020 in the U.S. Bankruptcy Court for the Southern District of Texas. McDermott International and 224 affiliates on Jan. 21 and 22, 2020, filed Chapter 11 bankruptcy petitions (Bankr. Lead Case No. 20-303360). The Hon. Marvin Isgur is the case judge. The Debtors tapped KIRKLAND & ELLIS LLP (NEW YORK) as general bankruptcy counsel; JACKSON WALKER L.L.P. as local counsel; ALIXPARTNERS, LLP as restructuring advisor; AP SERVICES, LLC, as operational advisor; ARIAS, FABREGA & FABREGA as Panamanian counsel; and BAKER BOTTS L.L.P. as corporate counsel. PRIME CLERK is the claims agent, maintaining the page https://cases.primeclerk.com/mcdermott MGIC INVESTMENT: Moody's Rates $550MM Senior Unsecured Notes 'Ba1' ------------------------------------------------------------------ Moody's Investors Service has assigned a Ba1 rating to $550 million of senior unsecured notes being issued by MGIC Investment Corporation (NYSE: MTG, senior Ba1 stable). The new notes will have an 8-year maturity and rank pari-passu with the issuer's other senior unsecured obligations and is being issued off of MTG's existing shelf registration. The company will use net proceeds of the offering to repay all or a portion of its $425 million of senior notes due in August 2023 (2023 notes), a portion of its convertible junior subordinated debentures due 2063, and for general corporate purposes. In the same rating action, Moody's has assigned provisional ratings to MTG's shelf registration that was filed by the company on May 8, 2019. The multi-security shelf registration allows MTG to issue various classes of debt and preferred stock. The outlook on MTG remains stable. RATINGS RATIONALE According to Moody's, MTG's ratings reflect the company's strong position in the US mortgage insurance market with an approximately 19% market share, good client diversification, its consistent GSEs' PMIERs sufficiency ratio (132% as of June 30, 2020), and solid profitability and financial flexibility metrics that have increased liquidity at the holding company. These strengths are tempered by the commodity-like nature of the mortgage insurance product, the potential for price competition in the US mortgage insurance market, and the potential implications on the company's credit profile from the contraction of the US economy due to coronavirus-related shutdown and deteriorating economic conditions. Moody's notes that MTG's mortgage insurance business will see higher losses due to the contraction of the US economy from coronavirus-related shutdowns that have resulted in a significant increase in the unemployment rate and deteriorating macroeconomic conditions for the US housing market. While the fiscal stimulus and policy measures taken will mitigate the negative impact, Moody's expects mortgage loan delinquency rates to spike higher in the coming months. The longer-term impact on MTG will depend on the length and depth of the economic contraction, as well as the efficacy of mortgage loan payment forbearance programs implemented by Fannie Mae and Freddie Mac in reducing foreclosures, and by extension, ultimate mortgage insurance claim rates. Following the issuance of the new senior notes and refinancing efforts, MTG's pro forma adjusted financial leverage as of June 30, 2020 would be around 20%, and less than 25%, up from 16% at year-end 2019. The company's next debt maturity is in 2023 which will include its outstanding 2023 notes and $155 million due on Mortgage Guaranty Insurance Corp.'s (MGIC, Baa1 Insurance Financial Strength rating, stable) advance with the Federal Home Loan Bank of Chicago. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade include: 1) Maintaining a top tier market position in the US mortgage insurance market and a further reduction in 2008 and prior inforce business; 2) Adjusted financial leverage (excl. AOCI) below 15%; 3) Comfortable compliance with PMIERs and a sufficiently ratio greater than 110%; and 4) More comprehensive reinsurance coverage on its entire insured portfolio. Factors that could lead to a downgrade include: 1) Deterioration in the parent company's ability to meet its debt service requirements; 2) Non-compliance with PMIERs, or a sufficiently ratio less than 110%; 3) Adjusted financial leverage (excl. AOCI) above 25%; or 4) Material and consistent decline in shareholders' equity (including share repurchases) by more than 10% over a rolling twelve-month period. The following ratings have been assigned: MGIC Investment Corporation - senior unsecured notes at Ba1, provisional senior unsecured debt shelf at (P)Ba1, provisional subordinated debt shelf at (P)Ba2, and provisional preferred stock shelf at (P)Ba3. The rating outlook for MGIC Investment Corporation remains unchanged at stable. MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance and other mortgage credit risk management services. Through the six months of 2020, MTG reported $504 million of net premiums earned, $164 million of net income available to common shareholders, and total shareholders' equity of approximately $4.4 billion. The principal methodology used in these ratings was Mortgage Insurers Methodology published in November 2019. MJ TRANSPORTATION: Estate Sale/Ongoing Operations to Fund Plan -------------------------------------------------------------- Debtor MJ Transportation, Inc., filed with the U.S. Bankruptcy Court for the District of Kansas a Disclosure Statement in connection with its Chapter 11 Reorganization Plan dated June 30, 2020. Debtor MJ Transportation, Inc., is wholly owned by James M. Mies. Mies is a Debtor in pending and related Chapter 11 case, Case No. 19-11935. MJT's Plan will dovetail with Mies' Plan. MJT and Mies share a common primary creditor, the Internal Revenue Service ("IRS"). MJT's Plan is to pay in full all timely filed and allowed administrative, priority and secured claims herein from: (1) sales by Mies of select real estate; and (2) operating profits from Debtor's ongoing trucking operations. The Debtor will make no payments to general unsecured creditors. Prior to the filing of this Plan, Debtor and Mies reached agreement with the IRS to pay a reduced amount to the IRS on its secured and priority claims in this case, and the related Mies case. The parties agreement provides that, within 60 months of the effective date of this Plan, Debtor and/or Mies will pay the IRS a total of $721,000, without interest, in full satisfaction of its claims against Debtor and Mies. The payment will come from a combination of liquidation of select real estate owned by Mies, and from monthly installment payments by Mies and/or Debtor. Mies will sell his homestead (Tract 1) located at 726 W. East Pointe Road, Valley Center, Sedgwick County, Kansas. From the net sale proceeds, Mies will pay costs of sale, an administrative carveout of $2,000 for Mies' counsels legal fees and expenses, the secured claim of Chisholm Trail State Bank against Tract 1, and the balance of proceeds to the IRS on its Reduced Claim. This sale will occur no later than Dec. 31, 2020. In addition, Mies will sell Tracts 2 and 3 no later than December 31, 2021. From the net sale proceeds, Mies will pay costs of sale, an administrative carve-out of $2,000 for Mies' counsels legal fees and expenses, and the balance of proceeds to the IRS on its Reduced Claim. Class 3 consists of all Unsecured Creditors with allowed claims. The Debtor/Reorganized Debtor will make no payment under the Plan on allowed unsecured claims. Upon entry of an Order confirming the Plan, all personal property of the Debtor will vest in the Reorganized Debtor. In addition, the Reorganized Debtor will be vested with all assumed unexpired leases, any claims of the estate, all tax loss carry forwards and other tax attributes of Debtor, and all rights and powers of a Trustee under the Bankruptcy Code. A full-text copy of the Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/y8jay2xo from PacerMonitor at no charge. Attorney for Debtor: Mark J. Lazzo MARK J. LAZZO, P.A. 3500 N Rock Rd Building 300, Suite B Wichita, Kansas 67226 Tel: (316) 263-6895 About MJ Transportation MJ Transportation, Inc., a cargo and freight company in Wichita, Kansas, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Case No. 19-12092) on Oct. 29, 2019. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. The case is assigned to Judge Robert E. Nugent. The Debtor is represented by Mark J. Lazzo, Attorney at Law. No official committee of unsecured creditors has been appointed in the Debtor's Chapter 11 case. MUSEUM OF AMERICAN JEWISH: Duane Represents Ronald Rubin, 10 Others ------------------------------------------------------------------- In the Chapter 11 cases of Museum of American Jewish History, d/b/a National Museum of American Jewish History, the law firm of Duane Morris LLP submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose that it is representing Ronald Rubin, Stephen Cozen, Mitchell Morgan, Connie Williams, Etta Winigrad, Richard Witten, Philip Darivoff, Joseph Zuritsky, The Robert Saligman Charitable Foundation, Lyn M. Ross Charitable Remainder Trust, and The Sidney Kimmel Revocable Trust. On March 1, 2020, the Museum of American Jewish History, d/b/a National Museum of American Jewish History filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Eastern District of Pennsylvania. After commencement of this case, Duane Morris was approached by certain creditors to represent their interests in connection herewith. Duane Morris currently represents the following clients: a. Ronald Rubin c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 1910 Stephen Cozen c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 b. Mitchell Morgan c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 c. Connie Williams c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 d. Etta Winigrad c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 e. Richard Witten c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 f. Philip Darivoff c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 g. Joseph Zuritsky c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 h. The Robert Saligman Charitable Foundation c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 i. Lyn M. Ross Charitable Remainder Trust c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 j. The Sidney Kimmel Revocable Trust c/o Rudolph J. Di Massa, Jr., Esq. Duane Morris LLP 30 S. 17th Street Philadelphia, PA 19103 Ronald Rubin is the record holder of approximately $1,045,000.00 of secured claims against the Debtor. Stephen Cozen is the record holder of approximately $261,250.00 of secured claims against the Debtor. Mitchell Morgan is the record holder of approximately $1,045,000.00 of secured claims against the Debtor. Connie Williams is the record holder of approximately $1,045,000.00 of secured claims against the Debtor. Etta Winigrad is the record holder of approximately $522,500.00 of secured claims against the Debtor. Richard Witten is the record holder of approximately $522,500.00 of secured claims against the Debtor. Philip Darivoff is the record holder of approximately $1,567,500.00 of secured claims against the Debtor. Joseph Zuritsky is the record holder of approximately $522,500.00 of secured claims against the Debtor. The Robert Saligman Charitable Foundation is the record holder of approximately $522,500 of secured claims against the Debtor. The Lyn M. Ross Charitable Remainder Trust is the record holder of approximately $3,135,000 of secured claims against the Debtor. The Sidney Kimmel Revocable Trust is the record holder of approximately $4,180,000 of secured claims against the Debtor. Each of the Clients has requested that Duane Morris represent him, her, or it in this case. Duane Morris does not hold any claim against, or own any interest in, the Debtor, nor has it at any time held any such claim or owned any such interest. To the extent necessary or required, Duane Morris reserves the right to amend, modify, and/or supplement this Verified Statement under Federal Rule of Bankruptcy Procedure 2019. On information and belief, each of the Clients purchased Series 2015B Revenue Bonds issued pursuant to that certain Trust Indenture dated as of June 30, 2015, between the Philadelphia Authority for Industrial Development and TD Bank, N.A. Counsel for Ronald Rubin, et al. can be reached at: DUANE MORRIS LLP Rudolph J. Di Massa, Jr. 30 South 17th Street Philadelphia, PA 19103-4196 Tel: (215) 979-1506 Fax: (215) 689-2138 E-mail: dimassa@duanemorris.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/N3xg22 About Museum of American Jewish History The Museum of American Jewish History -- https://www.nmajh.org/ -- is a Pennsylvania non-profit organization which operates the National Museum of American Jewish History, the only museum in the nation dedicated exclusively to exploring and interpreting the American Jewish experience. The museum presents educational and public programs that preserve, explore and celebrate the history of Jews in America. The museum was established in 1976 and is housed in Philadelphia's Independence Mall. On March 1, 2020, Museum of American Jewish History sought Chapter 11 protection (Bankr. E.D. Pa. Case No. 20-11285). The Debtor was estimated to have $10 million to $50 million in assets and liabilities. Judge Magdeline D. Coleman oversees the case. The Debtor tapped Dilworth Paxson, LLP, as its legal counsel and Donlin, Recano & Company, Inc. as its claims agent. MYADERM INC: Files Chapter 11 Bankruptcy Protection --------------------------------------------------- Lily O'Neill, writing for Business Den, reports that the Englewood-based CBD cream company Myaderm Inc. has filed Chapter 11 bankruptcy protection. Myaderm said in its June 28 filing that it owes $3 million to creditors and also has assets worth $3 million, of which $50,000 is in cash. Myaderm, led by CEO Eric Smart, sells therapeutic cannabinoid products, according to its website. The CBD company, which launched in 2018, sells lines of pharmacist-formulated, transdermal CBD creams and topical CBD products for skincare at national retailers, such as Dick's Sporting Goods. The company's office is located at 88 Inverness Circle East Suite A-101 in Englewood. Five of Myaderm's 20 largest creditors are local businesses, according to the filing. The company owes Golden-based W&O Enterprises $46,864; it owes $376,207 to Englewood-based Dempsey International Packaging; and $168,411 to Michael Barish, owner of Denver-based Lazarus Investment Partners, according to his LinkedIn. Myaderm lost $1.2 million on revenue of $916,000 so far this year, according to financial documents included in the filing. Michael Jaurigue with California-based Jaurigue Law Group is representing the business in bankruptcy proceedings. About Myaderm Inc. Myaderm, Inc., is a manufacturer of medical equipment and supplies. Myaderm, Inc., based in Englewood, CO, filed a Chapter 11 petition (Bankr. D. Colo. Case No. 20-14417) on June 28, 2020. In the petition signed by Eric C. Smart, CEO, the Debtor was estimated to have $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The Hon. Joseph G. Rosania Jr. oversees the case. JAURIGUE LAW GROUP, serves as bankruptcy counsel to the Debtor. NABORS INDUSTRIES: Posts $151.8-Mil. Net Loss in Second Quarter --------------------------------------------------------------- Nabors Industries Ltd. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, reporting a net loss attributable to common shareholders of $151.8 million on $536.0 million of total revenues and other income for the three months ended June 30, 2020, compared to a net loss attributable to common shareholders of $207.9 million on $771.9 million of total revenues and other income for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss attributable to common shareholders of $547.2 million on $1.25 billion of total revenues and other income compared to a net loss attributable to common shareholders of $329.9 million on $1.58 billion of total revenues and other income for the six months ended June 30, 2019. As of June 30, 2020, the Company had $5.98 billion in total assets, $4.04 billion in total liabilities, $434.1 million in redeemable non-controlling interest in subsidiary, and $1.51 billion in total equity. Net cash provided by operating activities totaled $201.8 million during the six months ended June 30, 2020, compared to net cash provided of $273.1 million during the corresponding 2019 period. Operating cash flows are the Company's primary source of capital and liquidity. The decrease in cash flows from operating activities is primarily attributable to decreases in activity and margins in our U.S. Drilling operating segment. Changes in working capital items such as collection of receivables, other deferred revenue arrangements and payments of operating payables and interest payments are significant factors affecting operating cash flows. Changes in working capital items used $36.5 million and provided $11.6 million in cash during the six months ended June 30, 2020 and 2019, respectively. Net cash used for investing activities totaled $92.1 million during the six months ended June 30, 2020 compared to net cash used of $258.2 million during the corresponding 2019 period. The Company's primary use of cash for investing activities is capital expenditures for rig-related enhancements, new construction and equipment, as well as sustaining capital expenditures. During the six months ended June 30, 2020 and 2019, the Company used cash for capital expenditures totaling $106.8 million and $274.5 million, respectively. Net cash used for financing activities totaled $61.3 million during the six months ended June 30, 2020 compared to net cash used of $88.6 million during the corresponding 2019 period. During the six months ended June 30, 2020, the Company received net proceeds of $1.0 billion in proceeds from the issuance of new long term debt as well as $205.0 million in net amounts borrowed under its revolving credit facility. This was partially offset by a $1.2 billion repayment on the Company's senior notes. Additionally, the Company paid dividends totaling $15.2 million to its common and preferred shareholders. Nabors said, "As of the date of this report, we were in compliance with all covenants under the 2018 Revolving Credit Facility. However, the current drilling and drilling related services environment detailed above, and the impact it has had on our operations and cash flows, has made our ability to continue to comply with the leverage ratio increasingly uncertain if these conditions continue into 2021. Based on our current forecasts, which are highly uncertain given current market conditions, it is possible we will be in violation of this covenant in 2021, if conditions do not improve meaningfully. Failure to comply with this covenant, if not amended or waived, would result in an event of default under the 2018 Revolving Credit Facility and the potential acceleration of the outstanding balance, which raises substantial doubt about the Company's ability to continue as a going concern throughout the twelve month period following the issuance of these financial statements." A full-text copy of the Form 10-Q is available for free at: https://is.gd/Uj6v7o About Nabors Nabors (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Leveraging advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform the industry. Nabors reported a net loss attributable to common shareholders of $720.13 million for the year ended Dec. 31, 2019, a net loss attributable to common shareholders of $653.25 million for the year ended Dec. 31, 2018, and a net loss attributable to common shareholders of $546.81 million for the year ended Dec. 31, 2017. * * * As reported by the TCR on May 21, 2020, S&P Global Ratings lowered its issuer credit rating and issue-level ratings on Nabors Industries Ltd.'s guaranteed unsecured debt to 'CCC+' from 'B-'. S&P also lowered the rating on Nabors' unsecured debt without guarantees to 'CCC-' from 'CCC+'. S&P said that demand for oilfield services is depressed this year due to E&P spending cuts. S&P expects demand in North America to drop by at least 30% in 2020 as upstream companies reduce development activity in shale plays. NATIONAL MEDICAL: Files for Ch. 11 Again After Court Reversal ------------------------------------------------------------- John George, writing for Philadelphia Business Journal, reports that the National Medical Imaging LLC filed for Chapter 11 bankruptcy protection again after it has been battling a Minneapolis bank for more than a decade. National Medical Imaging, a defunct operator of diagnostic imaging centers formerly headquartered in Philadelphia, and its Florida-based holding company are back in U.S. Bankruptcy Court for the second time in the past 12 years. The company recently filed for U.S. Bankruptcy Court protection in Philadelphia, listing its assets as "unknown" and liabilities of more than $32.4 million. The Chapter 11 filing is linked to the lengthy and ongoing financial and legal battle between the company's former owner, Maury Rosenberg, and US Bank of Minneapolis. The recent June 12 bankruptcy filing comes after a court ruling went against the company. National Medical Imaging lists one of its major debts in the filing as a disputed judgement of more than $15 million the company still owes to US Bank and its affiliates including Lyon Financial Services. The company also said it owes more than $16 million to the Douglas Rosenberg Trust, a family trust set up by Rosenberg for his son. Additionally, the company owes $904,000 in legal fees to Center City law firm Karalis PC. The bankruptcy filing came a day after a three-judge Pennsylvania Circuit Court panel reversed an earlier decision tied to the dispute in which Maury Rosenberg was awarded $6.1 million in punitive damages and court costs. The discord dates back to 2000 when National Medical Imaging entered into equipment leasing agreements for medical imaging and PET scan machines with DVI Financial. DVI later became part of Lyon Services Corp., an affiliate of US Bank. Legal action commenced several years later when DVI declared National Medical Imaging in default on the leasing agreement. In 2008, a lawsuit filed by US Bank and others sought to force National Medical Imaging into involuntary bankruptcy for defaulting on equipment leases. Rosenberg, a former Philadelphia real estate developer, had argued in court he offered to restructure the leasing agreement, but was turned down. Court records indicate Lyon stated it was owed $27 million from National Medical Imaging, which disputed the amount. In 2009, the U.S. Bankruptcy Court in Florida dismissed the lawsuit in part because improper creditors were listed as plaintiffs. Rosenberg then sued US Bank to recover legal fees. Following a series of rulings and appeals in the matter, Rosenberg in 2014 was awarded $6 million in punitive damages and legal costs by a federal judge in Florida. The judge ruled US Bank had acted in "bad faith" when filing the involuntary bankruptcy petition. US Bank appealed the damages award. On June 11, the three-judge Pennsylvania Circuit Court panel ruled Rosenberg was not entitled to the award from US Bank because his company was already struggling financially before the bank's lawsuit was filed. The lawsuit did not force National Medical Imaging out of business, according to the ruling. National Medical Imaging and its holding company filed for U.S. Bankruptcy Court protection the following day. Jennifer Maleski, an attorney with Dilworth Paxson who is representing National Medical Imaging in the bankruptcy, said the firm is not authorized to comment on the case. Maleski did confirm National Medical Imaging is no longer an active business. Maury Rosenberg could not be reached for comment. A US Bank spokesman said the company does not comment on ongoing litigation. In 2017 — year before the US Bank lawsuit was filed — National Medical Imaging provided outpatient imaging services to 29,000 patients generating billings of more than $21 million and an operating income of $9.5 million, according to court records. The company's financial struggles were tied to cuts in Medicare reimbursement rates for outpatient imaging centers and the recession that began in December 2007. About National Medical Imaging LLC National Medical Imaging, LLC and National Medical Imaging Holding Company, LLC provide medical and diagnostic laboratory services with principal place of business located at 1425 Brickell Ave., Apt. 57E, Miami. On June 12, 2020, National Medical Imaging and National Medical Imaging Holding Company filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Penn. Lead Case No. 20-12618). At the time of the filings, each Debtor disclosed assets of $10 million to $50 million and liabilities of the same range. Debtors have tapped Dilworth Paxson LLP as their bankruptcy counsel and Kaufman, Coren & Ress, P.C. and Karalis P.C. as their special counsel. Prior to Debtors' voluntary Chapter 11 filing, DVI Receivables Trusts and other creditors filed involuntary Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 05-12714 and 05-12719) against Debtors on March 3, 2005. In 2014, National Medical Imaging hit U.S. Bank N.A. and eight others with a $50 million lawsuit in Pennsylvania federal court alleging the bank ruined its business by forcing it into involuntary bankruptcy proceedings just as it was beginning to implement a turnaround plan. National Medical Imaging claims that the involuntary bankruptcy petitions ultimately destroyed its business even though the cases were ultimately tossed. NEONODE INC: Expects Q2 Revenues of $650K to $850K -------------------------------------------------- Neonode Inc. expects revenues for the second quarter of 2020 to range between $650,000 and $850,000, a decrease of approximately 62% to 50% compared to the second quarter of 2019. Neonode also expects net loss per share for the second quarter of 2020 to range between $(0.17) to $(0.21), an increase of approximately 21% to 50% compared to the second quarter of 2019. Neonode also announced a summary of key strategic initiatives and developments during the second quarter using the company's sensor modules: * Neonode entered into a distributor agreement with HY-LINE Computer Components to promote and sell Neonode's sensor modules technology to European customers in the medical, interactive kiosk, and industrial markets. * Through an engineering partner, Neonode's sensor modules were used to retrofit self-service kiosks, vending machines, and other equipment at a large state-of-the-art airport in Asia with contactless touch user interfaces. * In the U.S., Europe, and Asia the company is working with several leading elevator maintenance, service, and engineering companies to develop systems to retrofit existing elevator button and keypads to create touchless activation of the elevators. * Neonode is working with a large global OEM and engineering partners for integration of Neonode's contactless touch technology into retail store self-checkout kiosks. Dr. Urban Forssell, CEO of Neonode, commented, "The second quarter was impacted by softer sales in the global printer and automotive market due to COVID-19, as anticipated in earlier announcements. We expect these markets to rebound. COVID-19 has also rapidly projected our technology into new areas of growth. Our contactless touch sensor technology is an elegant and cost-effective solution that can protect consumers from having to physically touch surfaces on devices in public spaces. We see COVID-19 as a paradigm shift in global consumer behavior, where people do not want to touch buttons, keypads, and screens on public space devices. We anticipate this demand will continue to build over the coming quarters and years from new applications of our contactless touch sensors in self-service kiosks, vending machines, elevators, and other applications. We look forward to reporting more on these developments on our conference call on August 14." About Neonode Neonode Inc. (NASDAQ:NEON) -- http://www.neonode.com/-- is a publicly traded company, headquartered in Stockholm, Sweden and established in 2001. The company provides advanced optical sensing solutions for touch, gesture control, and remote sensing. Building on experience acquired during years of advanced optical R&D and technology licensing, Neonode's technology is currently deployed in more than 75 million products and the company holds more than 120 patents worldwide. Neonode's customer base includes companies in the consumer electronics, office equipment, medical, avionics, and automotive industries. Neonode recorded a net loss attributable to the Company of $5.30 million for the year ended Dec. 31, 2019, compared to a net loss attributable to the Company of $3.06 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $5.60 million in total assets, $2.95 million in total liabilities, and $2.65 million in total stockholders' equity. NEPHROS INC: Incurs $1.72 Million Net Loss in Second Quarter ------------------------------------------------------------ Nephros, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss attributable to the company's shareholders of $1.72 million on $1.58 million of total net revenues for the three months ended June 30, 2020, compared to a net loss attributable to the company's shareholders of $1 million on $2.31 million of total net revenues for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss attributable to common shareholders of $2.87 million on $4.11 million of total net revenues compared to a net loss attributable the company's shareholders of $2.41 million on $4.08 million of total net revenues for the same period in 2019. As of June 30, 2020, the Company had $16.65 million in total assets, $4.37 million in total liabilities, and $12.27 million in ttoal stockholders' equity. Adjusted EBITDA for the quarter ended June 30, 2020 was ($1.4 million), compared with ($0.5 million) in 2019. Cost of goods sold for the quarter ended June 30, 2020 was $0.7 million, compared with $0.9 million in 2019, a decrease of 28%. Gross margins for the quarter ended June 30, 2020 were 57%, compared with 59% in 2019. Management expects future gross margins to continue in the range of 55% to 60%. Research and development expenses for the quarter ended June 30, 2020 were $0.84 million, compared with $0.80 million in 2019, an increase of 5%. Depreciation and amortization expenses for the quarter ended June 30, 2020 were approximately $47,000, compared with approximately $48,000 in 2019, a decrease of 2%. Selling, general and administrative expenses for the quarter ended June 30, 2020 were $1.6 million, compared with $1.4 million in 2019, an increase of 15%. As of June 30, 2020, Nephros had cash and cash equivalents of $7.0 million. "While COVID-19 broke our streak of 15 quarters of year-over-year growth, we remain optimistic about our growth prospects," said Daron Evans, president and CEO. "We have already seen some strengthening of the market in early Q3, and we hope to see a return to revenue growth soon, as the pandemic evolves from an all-hands-on-deck emergency to a 'new normal' background issue." Mr. Evans continued, "During the relatively slower second quarter, our team focused on building new capabilities, including the acceleration and release of our SequaPath™ product and our recently published study of water in buildings affected by COVID-19-related shutdowns. In the near future, we will also release DialyPath, our real-time test for dialysis clinics that will detect and quantify endotoxin-producing Gram-negative bacteria." A full-text copy of the Form 10-Q is available for free at: https://is.gd/7fuDLe About Nephros Inc. River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which are generally classified as ultrafilters, are primarily used in hospitals for the prevention of infection from water-borne pathogens, such as legionella and pseudomonas, and in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate. Nephros reported a net loss of $3.18 million for the year ended Dec. 31, 2019, compared to a net loss of $3.33 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $18.29 million in total assets, $4.66 million in total liabilities, and $13.64 million in total stockholders' equity. NORDSTROM INC: Cut 6,000 Workers Nationwide in June --------------------------------------------------- Callie Craighead, writing for Komo News, reports that Nordstrom has reduced its workforce, including corporate operations at its Seattle headquarters, by thousands amid the economic decline of the COVID-19 pandemic. The Seattle Times reported that the retailer cut 6,000 jobs nationwide in June, despite the company announcing that 378 of their stores -- including retail locations in Washington such as the downtown flagship store -- had reopened. It is unclear how many of the layoffs were store staff and how many were related to corporate operations. Earlier in May, Nordstrom announced that it was shuttering 16 locations permanently due to the pandemic. The closures were estimated to make up 14% of the company's 116 full-line stores. The closures and layoffs come after Nordstrom saw net sales decrease by 40% in the first quarter of the year amid the pandemic which has devastated luxury and fashion apparel retailers across the country. Nordstrom has reduced its workforce, including corporate operations at its Seattle headquarters, by thousands amid the economic decline of the COVID-19 pandemic. About Nordstrom Nordstrom, Incorporated is an American luxury department store chain founded in 1901 by John W. Nordstrom and Carl F. Wallin. It originated as a shoe store and evolved into a full-line retailer with departments for clothing, footwear, handbags, jewelry, accessories, cosmetics, and fragrances. OASIS PETROLEUM: Posts $93 Million Net Loss in Second Quarter ------------------------------------------------------------- Oasis Petroleum Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss attributable to the company of $92.94 million on $166.35 million of total revenues for the three months ended June 30, 2020, compared to net income attributable to the company of $42.75 million on $529.40 million of total revenues for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss attributable to the company of $4.40 billion on $554.15 million of total revenues compared to a net loss attributable to the company of $72.12 million on $1.10 billion of total revenues for the same period in 2019. As of June 30, 2020, the Company had $2.62 billion in total assets, $3.21 billion in total liabilities, and a total stockholders' deficit of $589.91 million. Chairman and Chief Executive Officer, Thomas B. Nusz, commented, "Oasis executed well through an exceptionally tumultuous period. The Oasis team responded swiftly and effectively, powering down activity in an orderly manner, significantly lowering operating cost structure and capital while maintaining the integrity of our infrastructure to enhance flexibility for the future. The team was successful in keeping per unit lease operating expense low despite significant shut-ins reflecting meticulous cost management, including a carefully planned curtailment process, pricing concessions, labor optimization, and deferring workovers. Strip pricing has improved materially, but Oasis will maintain a prudent approach to future activity. Capital efficiency improvements and a significantly lower cost structure will improve economics for future development. Additionally, cash generation and free cash flow benefit from a robust hedge position and our midstream ownership which continues to support industry leading gas capture. As always, we remain focused on the health and safety of our employees, contractors, and communities." G&A totaled $37.4 million in 2Q20, $30.9 million in 2Q19 and $31.2 million in 1Q20. Amortization of equity-based compensation, which is included in G&A, was $4.9 million, or $0.99 per barrel of oil equivalent ("Boe"), in 2Q20 as compared to $8.9 million, or $1.16 per Boe, in 2Q19 and $6.8 million, or $0.93 per Boe, in 1Q20. G&A for the Company's E&P segment, excluding G&A expenses attributable to other services, totaled $33.5 million in 2Q20, $25.8 million in 2Q19 and $23.3 million in 1Q20. E&P Cash G&A (non-GAAP) expenses, excluding G&A expenses attributable to other services, non-cash equity-based compensation expenses and other non-cash charges, were $5.84 per Boe in 2Q20, $2.24 per Boe in 2Q19 and $2.29 per Boe for 1Q20. Impairment expense was $2.3 million in 2Q20 as compared to $4.8 billion in 1Q20. In 2Q20, the Company recorded impairment charges of $1.0 million on its equipment and materials inventory, $0.8 million on its unproved oil and gas properties and $0.6 million on its prepaid midstream equipment. In 1Q20, the Company recorded impairment charges of $4.4 billion on its proved oil and gas properties in the Williston Basin and the Delaware Basin, $291.3 million on its unproved oil and gas properties, $108.3 million on its midstream assets and $15.8 million on its well services assets. Interest expense was $44.4 million in 2Q20 as compared to $43.2 million in 2Q19 and $95.8 million in 1Q20. Capitalized interest totaled $1.8 million in 2Q20, $3.6 million in 2Q19 and $2.3 million in 1Q20. Cash Interest (non-GAAP) totaled $39.0 million in 2Q20, $42.0 million in 2Q19 and $93.5 million in 1Q20. In 2Q20, the Company recorded an income tax benefit of $2.6 million, resulting in a 2.7% effective tax rate as a percentage of its pre-tax loss for the quarter. In 1Q20, the Company recorded an income tax benefit of $254.7 million, resulting in a 5.6% effective tax rate as a percentage of its pre-tax loss for the quarter. In 2Q20, the Company reported a net loss of $92.9 million, or $0.29 per diluted share, as compared to net income of $42.8 million, or $0.14 per diluted share, in 2Q19. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis (non-GAAP) was $73.5 million, or $0.23 per diluted share, in 2Q20, as compared to Adjusted Net Income Attributable to Oasis of $11.0 million, or $0.03 per diluted share, in 2Q19. Adjusted EBITDA (non-GAAP) in 2Q20 was $174.2 million, which included $25.3 million for derivatives monetized in 2Q20, as compared to Adjusted EBITDA of $249.6 million in 2Q19. Liquidity and Balance Sheet As of June 30, 2020, Oasis had cash and cash equivalents of $77.4 million, total elected commitments under its revolving credit facility of $612.5 million and total elected commitments under the revolving credit facility among OMP, as parent, OMP Operating LLC, a subsidiary of OMP, as borrower, Wells Fargo Bank, N.A., as administrative agent and the lenders party thereto of $575.0 million. In addition, Oasis had $502.0 million of borrowings and $71.6 million of outstanding letters of credit issued under the Oasis Credit Facility and $487.5 million of borrowings and a de minimis outstanding letter of credit issued under the OMP Credit Facility. Going Concern Based on the current commodity price environment, the Company currently expects it will be unable to comply with the covenants under its revolving credit facility, as amended in April 2020, within the next twelve months, which raises substantial doubt about the Company's ability to continue as a going concern within one year after the accompanying financial statements are issued. Failure to comply with a covenant, if not waived, would result in an event of default under the Oasis Credit Facility, the potential acceleration of outstanding debt thereunder and the potential liquidation of the collateral securing such debt. An acceleration under the Oasis Credit Facility could result in an event of default and an acceleration under the indentures for the Company's senior unsecured notes and senior unsecured convertible notes. The Company is actively pursuing, with support from its Board of Directors, a variety of transactions and cost-cutting measures, including but not limited to, reduction in corporate discretionary expenditures, refinancing transactions, capital exchange transactions, asset divestitures, operational efficiencies and a reduction in 2020 capital expenditures by approximately 58% from the initial 2020 total capital expenditure plan announced in February 2020. Furthermore, the Company has engaged advisors to assist with the evaluation of strategic alternatives, including a recapitalization transaction with a third-party capital provider; restructuring of the Company's existing debt either through an out-of-court process or under Chapter 11 of the Bankruptcy Code; or other strategic transaction. However, the Company cannot predict the extent to which any of these measures will be successful, if at all, and there can be no assurances that the Company will be able to successfully restructure its indebtedness, improve its financial position or complete any strategic transactions. The Company's unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not reflect any adjustments that might result if the Company is unable to continue as a going concern. As a result of the foregoing liquidity concerns and the Company's reduction in planned capital expenditures in 2020 in response to the depressed commodity price environment, the Company's estimated quantity of proved reserves has decreased significantly from the previous estimate disclosed in its 2019 Annual Report. This decrease is primarily due to the removal of proved undeveloped reserves in contemplation of the ongoing market downturn and uncertainty regarding the Company's ability to finance the development of such reserves within five years. A full-text copy of the Form 10-Q is available for free at: https://is.gd/dl27zg About Oasis Petroleum Inc. Oasis -- www.oasispetroleum.com -- is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. Oasis reported a net loss attributable to the company of $128.24 million for the year ended Dec. 31, 2019, compared to a net loss attributable to the company of $35.29 million for the year ended Dec. 31, 2018. * * * As reported by the TCR on July 7, 2020, S&P Global Ratings lowered its issuer credit rating on Houston-based exploration and production company Oasis Petroleum Inc. to 'CCC-' from 'CCC+', saying there is increased likelihood that the company could engage in a debt transaction the rating agency would view as distressed given its poor debt trading levels, refinancing needs, and large reduction to its reserve-based loan credit facility. ONE EARTH LANDSCAPE: Hires Morris Tax Service as Accountant ----------------------------------------------------------- One Earth Landscape Management Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of Virginia to employ Morris Tax Service, as accountant to the Debtor. One Earth Landscape requires Morris Tax Service to prepare quarterly federal and state withholding reports, and annual federal and state income tax returns. Morris Tax Service will be paid based upon its normal and usual hourly billing rates. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael D. Morris, partner of Morris Tax Service, 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. Morris Tax Service can be reached at: Michael D. Morris MORRIS TAX SERVICE 3618 Brambleton Ave. Roanoke, VA 24018 Tel: (540) 776-1099 About One Earth Landscape Management One Earth Landscape Management, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Va. Case No. 20-70640) on June 29, 2020. The Debtor has tapped Brumberg, Mackey & Wall, P.L.C. as its legal counsel. OWENS & MINOR: Fitch Affirms CCC+ LongTerm IDR, Outlook Positive ---------------------------------------------------------------- Fitch Ratings has affirmed Owens & Minor, Inc.'s 'CCC+' Long-Term Issuer Default Rating and OMI's 'B-'/'RR3' senior secured debt rating, and has assigned a Positive Rating Outlook. Fitch has also affirmed the 'CCC+' IDRs and 'B-'/'RR3'debt ratings of OMI's subsidiaries. The rating action applies to approximately $1.399 billion of debt as of June 30, 2020. The Positive Outlook acknowledges the improving financial profile of the company as a result of higher sales of personal protective equipment during the coronavirus pandemic and debt reduction from Movianto sale proceeds. Future upward rating actions are contingent upon the paydown of the 2021 notes on or before January 2021, combined with improving EBITDA and cash flow generation. Other sources of liquidity used to reduce debt, such as an equity offering, would also be positive developments. The 'CCC+' rating reflects OMI's limited financial flexibility as a result of distribution customer losses amid heightened competition, accelerating pricing pressure and significantly reduced earnings relative to its debt. Fitch believes OMI has not realized any material contract wins or loses thus far in 2020. Fitch remains encouraged by senior management's improved customer engagement and focus on customer service and retention. The recent sale of the European logistics business (Movianto) and proceeds from a receivable's securitization facility improved OMI's financial flexibility and provided OMI with additional time to improve its financial position. KEY RATING DRIVERS Coronavirus Effects: Fitch anticipates the increased demand for PPE will benefit OMI for the next few quarters. The rate of return of elective procedures will also remain a key area of focus for medical supplies distribution. Fitch expects OMI's supply chain to remain stable. Fifth Amendment to Credit Agreement: The recent amendments to OMI's credit agreement provide additional liquidity and flexibility to deal with its significant operational and financial risks. Specifically, the amendments provide incremental headroom under a key leverage covenant and the flexibility to address a springing maturity related to senior secured notes due in 2021. Fitch believes the amendment provided senior management with the additional time it needs to pursue a turnaround of OMI's core business, which is focused on improving customer-retention levels. Progress has been modest to date, but OMI does not appear to have suffered any material customer losses in 2020. Margin Compression; Weak Operating Performance in Legacy Business: Fitch expects OMI to experience somewhat better margins over the medium term due to the increased demand for PPE, but the risk related to accelerating pricing pressure and potential customer churn remain. Improving and maintaining customer relationships and service are expected to remain key drivers of whether OMI can reinvigorate revenue growth and erase concerns about the company's financial position. Fitch believes overcoming past service failures may remain a challenge over the near term, but the new management appears to be highly focused on customer engagement. Competitive Environment: The med-surg supply distribution industry in the U.S. is highly competitive and characterized by pricing pressure. Fitch expects margin pressure to continue over the coming years. OMI competes with other national distributors (e.g. Cardinal Health, Inc. and Medline, Inc.), a number of regional and local distributors, customer self-distribution models and, to a lesser extent, certain third-party logistics companies. OMI's success depends on its ability to compete on price, product availability, delivery times and ease of doing business, while managing internal costs and expenses. Customer Concentration: OMI's 2019 10-K stated its top- 10 customers in the U.S. represented approximately 25% of its consolidated net revenue. Approximately 72% of its consolidated net revenue in 2019 was from sales to member hospitals under contract with its largest group purchasing organizations: Vizient, Premier and HPG. As a result of this concentration, OMI could lose a significant amount of revenue due to the termination of a key customer or GPO relationship. The termination of a relationship with a given GPO would not necessarily result in the loss of all of the member hospitals as customers, but the termination of a GPO or significant individual healthcare provider customer relationship could adversely affect OMI's debt-servicing capabilities. Supplier Concentration: OMI reported sales of products of its 10 largest domestic suppliers accounted for approximately 45% of consolidated net revenue in 2019. OMI also disclosed that no sales of products in its Global Solutions segment of any individual suppliers exceeded 10% in 2019. OMI's ability to sustain adequate operating earnings will continue to depend on its ability to obtain favorable terms and incentives from suppliers, timely shipments and suppliers' continuing use of third-party distributors to sell and deliver their products. Modest FCF Relative to Pro Forma Debt: The shift in strategy to emphasize leveraged acquisitions in response to accelerating pricing pressure has not been successful. OMI's credit profile carries significantly higher financial risk compared with just two years ago. However, recent initiatives to pay debt have been effective in lowering OMI's gross leverage, which Fitch believes is one of the keys to OMI's turnaround. OMI completed two acquisitions in the recent past for a total of approximately $1.1 billion -- Byram Healthcare and the Surgical and Infection Prevention business of Halyard Health, Inc. The proceeds from the sale of Movianto and a receivables securitization facility allowed OMI to reduce debt during 1H20. Fitch's revised estimate of OMI's leverage, without the benefit of credit agreement adjustments, is expected to fall below 6.0x as of Dec. 31, 2020. ESG Relevance Scores: OMI has an ESG Relevance Score of '4' for Management Strategy due to the challenge of restructuring and optimizing the organization as a result of its substantial debt and lower cash flows. DERIVATION SUMMARY OMI's Long-Term IDR of 'CCC+' reflects the company's significant increase in financial risk following the leveraged acquisitions of Byram Healthcare and the S&IP business of Halyard Health, as well as heightened competition and accelerating pricing pressure in its core business. These risks are somewhat offset by OMI's established position as a leading healthcare distribution company, albeit at low absolute margins, and the recent positive momentum created by demand for PPE. OMI's smaller scale in an industry with high fixed costs, where scale influences leverage with suppliers and customers, and significantly higher leverage lead Fitch to rate the company well below AmerisourceBergen Corp. (A-/Stable), Cardinal Health (BBB/Stable) and McKesson Corp. (BBB+/Stable). OMI competes with other regional and local distributors, customer self-distribution models and, to a lesser extent, certain third-party logistics companies. Fitch considers OMI to be less diversified by customer, revenues and suppliers than other larger distributors. KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer Include: -- Total revenues decline in 2020, reflecting customer losses from 2019; business growth returns in 2021 principally with better customer retention and continued growth from Byram. -- Operating EBITDA margins return to approximately 3.0% or higher, which is driven principally by sustained higher sales of PPE through 2021. -- Proceeds from the sale of Movianto and new funds from a receivable's securitization facility are used to pay $150 million on two term loans and remaining amounts outstanding on the 2021 notes. -- Total interest expense following the fifth amendment to the credit agreement and debt repayment declines to a range of $80 million-$90 million through 2023. -- Fitch estimates sustainable FCF remains modest despite low common stock dividends, but benefits from intensive working capital management. -- Fitch assumes OMI spends approximately $60 million per year on capex through the forecast period and ceases all share-repurchase activity. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: The Positive Outlook acknowledges the improving financial profile of the company as a result of higher PPE sales and debt paydown from the Movianto sale proceeds. A positive rating action could result from some combination of the following: -- OMI pays off the 2021 notes on or before January 2021; -- EBITDA and cash flow generation improve, resulting in gross leverage approaching 6.0x or lower; -- Other sources of liquidity used to reduce debt, such as an equity offering, would also represent positive developments; -- OMI improves its customer-retention levels and reinvigorates its legacy business; -- OMI reduces its dependence on short-term borrowing and improves its cash conversion. Factors that could, individually or collectively, lead to negative rating action/downgrade: A downgrade is possible if Fitch believes OMI will be unable to maintain sufficient sources of liquidity to service its debt. Fitch will monitor whether OMI can improve its customer-retention levels and reinvigorate its legacy business. If Fitch does not expect consolidated EBITDA and cash generation to improve sufficiently to offset the weakness in OMI's core business by YE 2020, such that debt/EBITDA is expected to exceed 7.75x, the rating could be downgraded. 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 Modest Liquidity: OMI has modest liquidity; sources are composed principally of a $400 million revolving credit facility and a recently established $325 million receivables securitization program. There was approximately $130 million of borrowings under the revolving credit facility as of June 30, 2020. The continued reliance on the revolving credit facility and the receivables securitization program are expected to be key sources of liquidity over the near term until OMI is able to improve its FCF generation. Laddered Maturities: The maturities of long-term debt are manageable for the near term, but the amortization of such debt along with interest expense will become an increasing challenge unless revenues and earnings can be reinvigorated. The company's decision to cut dividends will provide additional funding to service debt, but the key to OMI's future rests in its ability to retain and win new customers. SUMMARY OF FINANCIAL ADJUSTMENTS Historical and projected EBITDA are adjusted to add back certain charges for nonrecurring expenses, last-in-first-out provisions, and stock-based compensation. Rating Recovery For issuers with IDRs at 'B+' and below, Fitch performs a recovery analysis for each class of obligations of the issuer. The issue ratings are derived from the IDR and the relevant Recovery Rating and notching. The recovery analysis uses a liquidation approach due to the large amounts of the company's receivables and inventory, which results in the total liquidation value available to creditors to be higher than the estimated enterprise value on a going-concern basis. Receivables under OMI's Receivables Securitization Program have been assigned a super-senior priority of claim above the existing senior secured debt obligations; Fitch assumes full use of the $325 million accounts receivable securitization. Fitch assumes $1.3 billion of senior secured debt. Fitch assumes advance rates on remaining accounts receivable, net of maximum securitized receivables, inventory, and net property and equipment of 75%, 50% and 50%, respectively. The estimate of OMI's EV is approximately $900 million. The general assumption is that cash on the balance sheet dissipates during or before a bankruptcy that would be replaced by other lending facilities. In addition, for purposes of the recovery analysis, Fitch assumes an orderly liquidation of assets and distribution of value according to priority of claims. Fitch also assumed 10% for administrative claims. Fitch assumes the revolving credit facility is drawn up to $340 million. The secured credit facility and senior notes are secured by the assets of the guarantors, which consist of substantially all wholly owned domestic subsidiaries, and a pledge of 65% of the voting equity of foreign subsidiaries. The credit agreement and senior notes rank pari-passu on a senior secured basis and contain cross-default provisions, which could result in the acceleration of payments due in the event of default of either agreement. 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 Owens & Minor, Inc.: Management Strategy: 4 OMI has an ESG Relevance Score of '4' for Exposure to Management Strategy due to the risks associated with the company's past below-average service levels, which contributed to customer retention challenges and ultimately the stability of revenues and cash flows. These risks have a negative impact on the credit profile, and are 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, either due to their nature or the way in which they are being managed by the entity. Barista Acquisition I, LLC - LT IDR CCC+; Affirmed - Senior secured; LT B-; Affirmed O&M Halyard, Inc. - LT IDR CCC+; Affirmed - Senior secured; LT B-; Affirmed Owens & Minor, Inc. - LT IDR CCC+; Affirmed - Senior secured; LT B-; Affirmed Owens & Minor Medical, Inc. - LT IDR CCC+; Affirmed - Senior secured; LT B-; Affirmed Barista Acquisition II, LLC - LT IDR CCC+; Affirmed - Senior secured; LT B-; Affirmed Owens & Minor Distribution, Inc. - LT IDR CCC+; Affirmed - Senior secured; LT B-; Affirmed OWENS & MINOR: Incurs $55.6 Million Net Loss in Second Quarter -------------------------------------------------------------- Owens & Minor, Inc., filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, reporting a net loss of $55.63 million on $1.81 billion of net revenue for the three months ended June 30, 2020, compared to a net loss of $10.47 million on $2.37 billion of net revenue for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss of $66.95 million on $3.93 billion of net revenue compared to a net loss of $24.57 million on $4.72 billion of net revenue for the six months ended June 30, 2019. As of June 30, 2020, the Company had $3.13 billion in total assets, $2.74 billion in total liabilities, and $395.16 million in total equity. "I am tremendously proud of our continued focus and intensity, resulting in improved financial performance and further strengthening our foundation for long-term profitable growth. The exceptional dedication of our teammates was demonstrated by their response to unprecedented demand for our products and flexibility in addressing the volatility of elective procedures. The way we operated is consistent with our IDEAL values and our Mission to 'Empower our Customers to Advance Healthcare,'" said Edward A. Pesicka, president & chief executive officer of Owens & Minor. "During this quarter we continued to achieve operating efficiencies and productivity improvements while expanding our Americas based manufacturing capacity, which we believe positions Owens & Minor to increase our earnings expectations for the remainder of the year. These operational improvements allow us to reconfirm double-digit adjusted EPS growth guidance for 2021, above the revised guidance for 2020. Finally, we successfully closed the Movianto sale in June, delivering on what we said we would do, and now we are better positioned to focus on and invest in our strategic pillars - Distribution, Products and Services." 2nd Quarter 2020 Company Highlights * Doubled adjusted net income per share compared to the second quarter of 2019. * Delivered adjusted operating margin expansion of 68 basis points compared to prior year. * Improved financial performance a result of: - Improved productivity - Increased manufacturing output related to PPE - Capitalizing on an earlier than expected increase in elective procedures - Favorable revenue mix - Continued execution and delivery of operating efficiencies * Strong performance in Q2 has provided a line of sight to allow Owens & Minor to: - Double 2020 full year adjusted EPS guidance to $1.00 to $1.20 - Reconfirm double digit adjusted EPS growth in 2021 * Generated $57 million of operating cash flow in the second quarter from increased earnings and working capital improvements. * Completed the sale of its European logistics business, Movianto. * Reduced total debt by $137 million, and set aside an additional $79 million in cash for future debt reduction. Total debt reduction year-to-date is $161 million with $332 million of debt reduction over the last five quarters. * Reached a milestone in the COVID-19 fight with nearly five billion units of PPE shipped since February 2020. * Continued to invest in infrastructure, services, and technology. Financial Outlook Subject to certain key assumptions, the Company expects adjusted net income for 2020 to be in a range of $1.00 to $1.20 per share. The Company also continues to believe that it remains positioned to deliver double-digit earnings growth in 2021. Key assumptions supporting the Company's 2020 adjusted net income per share guidance: * Increase in PPE production capacity remains on schedule for the balance of 2020. * Elective procedures are in line with June 2020 levels for the remainder of the year. * Foreign exchange expected to have minimal impact for the full year. Dividend Information The Board of Directors approved a third quarter 2020 dividend payment of $0.0025 per share, payable on September 30, 2020, to shareholders of record as of Sept. 15, 2020. A full-text copy of the Form 10-Q is available for free at: https://is.gd/sAKshd About Owens & Minor Headquartered in Mechanicsville, Virginia, Owens & Minor, Inc. -- http://www.owens-minor.com/-- is a global healthcare solutions company with integrated technologies, products, and services aligned to deliver significant and sustained value for healthcare providers and manufacturers across the continuum of care. Owens & Minor helps to reduce total costs across the supply chain by optimizing episode and point-of-care performance, freeing up capital and clinical resources, and managing contracts to optimize financial performance. Owens & Minor was founded in 1882 in Richmond, Virginia, where it remains headquartered today. Owens & Minor reported a net loss of $62.37 million for the year ended Dec. 31, 2019, compared to a net loss of $437.01 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $3.71 billion in total assets, $3.29 billion in total liabilities, and $416.34 million in total equity. * * * As reported by the TCR on March 11, 2020, Fitch Ratings affirmed Owens & Minor, Inc.'s (OMI) Long-Term Issuer Default Rating at 'CCC+'. The rating affirmation reflects OMI's limited financial flexibility as a result of customer losses, heightened competition, accelerating pricing pressure, and significantly reduced earnings relative to debt levels. PERFORMANCE SPORTS: Former Execs Win Ch. 11 Duty Breach Lawsuit --------------------------------------------------------------- Law360 reports that the former officers and directors of bankrupt Performance Sports Group Ltd. won a Delaware court dismissal on July 1, 2020, of an estate litigation trustee's claims that insider fiduciary duty failures and corporate waste led the company into a more than $500 million Chapter 11 and "distressed" sale. The decision by U. S. Bankruptcy Judge Brendan L. Shannon wound up the latest battle in the sporting goods manufacturer's $575 million bankruptcy sale from early 2017. The buyer was a joint venture that included Performance Sports equity holder Sagard Capital Partners LP and Fairfax Financial Holdings Ltd. About Performance Sports Group Exeter, N.H.-based Performance Sports Group Ltd. -- http://www.PerformanceSportsGroup.com/-- is a developer and manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball sports equipment, as well as related apparel and soccer apparel. On Oct. 31, 2016, Performance Sports Group Ltd. and certain of its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the District of Delaware and commenced proceedings under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice. The U.S. Debtors are: BPS US Holdings Inc.; Bauer Hockey, Inc.; Easton Baseball/Softball Inc.; Bauer Hockey Retail Inc.; Bauer Performance Sports Uniforms Inc.; Performance Lacrosse Group Inc.; BPS Diamond Sports Inc.; and PSG Innovation Inc. The Canadian Debtors are Performance Sports Group Ltd.; KBAU Holdings Canada, Inc.; Bauer Hockey Retail Corp.; Easton Baseball/Softball Corp.; PSG Innovation Corp. Bauer Hockey Corp.; BPS Canada Intermediate Corp.; BPS Diamond Sports Corp.; Bauer Performance Sports Uniforms Corp.; and Performance Lacrosse Group Corp. The Debtors hired Paul, Weiss, Rifkind, Wharton & Garrison LLP as counsel; Young Conaway Stargatt & Taylor, LLP as co-counsel; Stikeman Elliott LLP as Canadian legal counsel; Centerview LLP as investment banker to the special committee; Alvarez & Marsal North America, LLC, as restructuring advisor; Joele Frank, Wilkinson, Brimmer, Katcher as communications & relations advisor; KPMG LLP as auditors; and Prime Clerk LLC as notice, claims, solicitation and balloting agent. Ernst & Young LLP is the monitor in the CCAA cases. The Monitor tapped Thornton Grout Finnigan LLP, Allen & Overy LLP, and Buchanan Ingersoll & Rooney PC as attorneys. Andrew R. Vara, Acting U.S. Trustee for Region 3, on Nov. 10, 2016, appointed three creditors of BPS US Holdings, Inc., parent of Performance Sports, to serve on the official committee of unsecured creditors. The Creditors' Committee retained by Blank Rome LLP as counsel, Cassels Brock & Blackwell LLP as Canadian co-counsel, and Province Inc. as financial advisor. The U.S. Trustee appointed a committee of equity security holders. The equity committee is represented by Natalie D. Ramsey, Esq., and Mark A. Fink, Esq., at Montgomery, McCracken, Walker & Rhoads, LLP; and Robert J. Stark, Esq., Steven B. Levine, Esq., James W. Stoll, Esq., and Andrew M. Carty, Esq., at Brown Rudnick LLP. The U.S. Court appointed M.J. Renick & Associates LLC as the fee examiner. * * * As reported by the Troubled Company Reporter, effective as of Feb. 27, 2017, the Company consummated the sale of substantially all of the assets of the Company and its North American subsidiaries, including its European and global operations, pursuant to an asset purchase agreement, dated as of Oct. 31, 2016, as amended, by and among the Sellers, 9938982 Canada Inc., an acquisition vehicle co-owned by affiliates of Sagard Holdings Inc. and Fairfax Financial Holdings Limited, and the designated purchasers party thereto, for a base purchase price of US$575 million in aggregate, subject to certain adjustments, and the assumption of related operating liabilities. The transaction was the culmination of the process commenced by the Sellers pursuant to creditor protection proceedings launched on Oct. 31, 2016, in the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act, and in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of the Bankruptcy Code, as amended. The Company conducted a court-supervised sale and auction process as part of its Canadian and U.S. court proceedings. The bid made by the Purchaser served as the "stalking horse" bid for purposes of the process and was ultimately determined to be the successful bid in accordance with the related court approved bidding procedures. In accordance with, and pursuant to, the terms and conditions of the Agreement, the Company has changed its name to "Old PSG Wind-down Ltd." from "Performance Sports Group Ltd." effective as of March 20, 2017. BPS US Holdings Inc. changed its name to Old BPSUSH Inc. On Aug. 25, 2017, the Debtors filed their original Plan of Liquidation and related Disclosure Statement. On Oct. 19, 2017, the Debtors filed their modified Plan of Liquidation and modified Disclosure Statement. PG&E CORP: Law Signed for Takeover in Case Something Goes Wrong --------------------------------------------------------------- Mark Chediak, writing for Bloomberg News, reports that California Governor Gavin Newsom signed legislation in early July that would allow the state to take over PG&E Corp. if the utility giant falls short of safety standards -- including recklessly causing another catastrophic wildfire. The bill, authored by State Senator Jerry Hill, would set up a nonprofit public benefit corporation called Golden State Energy that would serve PG&E’s existing customers if the company is stripped of its operating license. PG&E was pushed into bankruptcy in January 2019, claiming $30 billion in estimated liabilities from wildfires sparked by its electrical equipment. About PG&E Corp. PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a Fortune 200 energy-based holding company, headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. As of Sept. 30, 2018, the Debtors, on a consolidated basis, had reported $71.4 billion in assets on a book value basis and $51.7 billion in liabilities on a book value basis. PG&E Corp. and Pacific Gas employ approximately 24,000 regular employees, approximately 20 of whom are employed by PG&E Corp. Of Pacific Gas' regular employees, approximately 15,000 are covered by collective bargaining agreements with local chapters of three labor unions: (i) the International Brotherhood of Electrical Workers; (ii) the Engineers and Scientists of California; and (iii) the Service Employees International Union. On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary, Pacific Gas and Electric Company, filed voluntary Chapter 11 petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). PG&E Corporation and its regulated utility subsidiary, Pacific Gas and Electric Company, said they are facing extraordinary challenges relating to a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. The utility said it faces an estimated $30 billion in potential liability damages from California's deadliest wildfires of 2017 and 2018. Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP are serving as PG&E's legal counsel, Lazard is serving as its investment banker and AlixPartners, LLP is serving as the restructuring advisor to PG&E. Prime Clerk LLC is the claims and noticing agent. In order to help support the Company through the reorganization process, PG&E has appointed James A. Mesterharm, a managing director at AlixPartners, LLP, and an authorized representative of AP Services, LLC, to serve as Chief Restructuring Officer. In addition, PG&E appointed John Boken also a Managing Director at AlixPartners and an authorized representative of APS, to serve as Deputy Chief Restructuring Officer. Mr. Mesterharm, Mr. Boken and their colleagues at AlixPartners will continue to assist PG&E with the reorganization process and related activities. Morrison & Foerster LLP, as special regulatory counsel. Munger Tolles & Olson LLP, as special counsel. The Office of the U.S. Trustee appointed an official committee of creditors on Feb. 12, 2019. The Committee retained Milbank LLP as counsel; FTI Consulting, Inc., as financial advisor; Centerview Partners LLC as investment banker; and Epiq Corporate Restructuring, LLC as claims and noticing agent. On Feb. 15, 2019, the U.S. trustee appointed an official committee of tort claimants. The tort claimants' committee is represented by Baker & Hostetler LLP. PIONEER NURSERY: Unsecureds to Recover 24% in Liquidating Plan -------------------------------------------------------------- Pioneer Nursey, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of California, Fresno Division, a Liquidating Plan and a Disclosure Statement. Class 1 General Unsecured Claims will be paid pro rata from funds of the estate after all higher priority claims have been paid in full. Debtor estimates that the total amount of distribution to Class 1 claimants will be no less than $6.5 million and will result in a dividend of at least 24% of the amount owed to Class 1 claimants. After the Debtor has completed the tasks described in the Plan to dissolve Debtor and has paid out any final expenses for that purpose from the Reserve Amount, the remaining balance of the Reserve Amount shall be paid to Class 1 claimants on a pro rata basis. Class 2 equity interests will maintain their equity interests until Debtor is dissolved, after which time the equity interests will be extinguished by operation of law. The Debtor's intention to compromise or liquidate all known claims by the time it presents the Plan for confirmation. The Plan contemplates that all claims, unless already compromised by the Debtor, are preserved to the Debtor. The reason for this is that the Debtor intends to liquidate the value of all claims for the benefit of its creditors. By preserving all claims, the Debtor preserves the possibility of providing more value to its general unsecured creditors. The Debtor intends its Plan as a winding down, liquidating Plan, so that on the effective date the Debtor may expeditiously proceed to disburse any remaining monies as provided in the Plan, and dissolve as an entity. Implementation of the Plan upon confirmation will be deemed to fulfill Debtor's obligations. This means that the holders of claims are receiving the assets of the Debtor, and not the members of the Debtor, which is an LLC. Because there are not sufficient assets to pay all claims in full, the assets of the estate are being paid to holders of claims to the extent of those assets and no payments or distributions are being made on account of the membership interests of the Debtor. A full-text copy of the Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/y7ajpam3 from PacerMonitor at no charge. Attorney for the Debtor: Fear Waddell, P.C. Peter L. Fear Gabriel J. Waddell 7650 North Palm Avenue, Suite 101 Fresno, California 93711 Tel: (559) 436-6575 Fax: (559) 436-6580 E-mail: pfear@fearlaw.com About Pioneer Nursery Founded in 1968, Pioneer Nursery Inc. is in the retail nurseries and garden stores industry. It owns crops -- either planted or harvested -- of approximately 440,000 pistacio trees worth $7 per tree having a total retail value of $3.08 million. The Debtor posted gross revenue of $4.55 million in 2016 and gross revenue of $7.78 million in 2015. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal. Case No. 17-13112) on Aug. 11, 2017. Brian Blackwell, its member, signed the petition. At the time of the filing, the Debtor disclosed $5.42 million in assets and $245,701 in liabilities. Judge Fredrick E. Clement presides over the case. Fear Waddell, P.C., is the Debtor's bankruptcy counsel. The U.S. Trustee for Region 17 appointed creditors to serve on the official committee of unsecured creditors in the Debtor's case on Oct. 17, 2017. The committee initially hired Klein DeNatale Goldner Cooper Rosenlieb & Kimball, LLP as its legal counsel. McCormick, Barstow, Sheppard, Wayte & Carruth LLP is the Committee's new legal counsel. PLAYERS NETWORK: Gets Court Approval to Hire Accountant ------------------------------------------------------- Players Network received approval from the U.S. Bankruptcy Court for the District of Nevada to hire Myron Isley, an accountant licensed to practice in Nevada. Mr. Isley will provide bookkeeping services at the rate of $30 per hour and accounting services at the rate of $60 per hour. In court papers, Mr. Isley disclosed that he does not represent any interest adverse to Debtor and its bankruptcy estate. Mr. Isley holds office at: Myron Isley 10403 Aloe Cactus St. Las Vegas, NV 89141 Phone: (443) 492-9712 About Players Network Players Network is a privately held company that operates in the cannabis industry. Players Network sought Chapter 11 protection (Bankr. D. Nev. Case No. 20-12890) on June 17, 2020. In the petition signed by CEO Mark Bradley, Debtor disclosed total assets of $496,000 and total liabilities of $5,252,096. The Hon. Mike K. Nakagawa is the case judge. The Debtor has tapped Thomas E. Crowe, Professional Law Corp. as its legal counsel, and Myron Isley as its accountant. PLAYERS NETWORK: Taps Thomas E. Crowe as Legal Counsel ------------------------------------------------------ Players Network received approval from the U.S. Bankruptcy Court for the District of Nevada to hire Thomas E. Crowe, Professional Law Corp. as its legal counsel. The firm will advise Debtor of its powers and duties under the Bankruptcy Code and will provide other legal services in connection with its Chapter 11 case. The firm's services will be provided mainly by Thomas Crowe, Esq., who will be compensated at $425 per hour. Paralegals will charge $175 per hour. Prior to its bankruptcy filing, Debtor paid the firm $10,000, plus $1,717 for the filing fee. Mr. Crowe disclosed in court filings that he does not hold any interest adverse to Debtor's bankruptcy estate and creditors. The firm can be reached through: Thomas E. Crowe, Esq. Thomas E. Crowe, Professional Law Corporation 2830 S. Jones Blvd, Suite 3 Las Vegas, NV 89146 Tel: (702) 794-0373 Email: tcrowe@thomascrowelaw.com About Players Network Players Network is a privately held company that operates in the cannabis industry. Players Network sought Chapter 11 protection (Bankr. D. Nev. Case No. 20-12890) on June 17, 2020. In the petition signed by CEO Mark Bradley, Debtor disclosed total assets of $496,000 and total liabilities of $5,252,096. The Hon. Mike K. Nakagawa is the case judge. The Debtor has tapped Thomas E. Crowe, Professional Law Corp. as its legal counsel, and Myron Isley as its accountant. PLUS THERAPEUTICS: Amends Terms of Series U Warrants ---------------------------------------------------- Plus Therapeutics, Inc., previously issued a total of 3,450,000 Series U warrants to purchase shares of the Company's common stock and on April 17, 2020, April 21, 2020 and June 10, 2020, the Company entered into agreements with holders of a total of 3,415,000 Series U Warrants to amend the terms of the Series U Warrants. On July 30, 2020, the Company entered into a Warrant Amendment with a holder of 5,000 Series U Warrants. The Warrant Amendments amend the terms of the Amending Warrant Holders' Series U Warrants to: (i) limit the Company's obligation to make cash payments to the Amending Warrant Holders upon certain fundamental transactions and (ii) establish an exercise price of $2.25. As of Aug. 4, 2020, there remain outstanding 30,000 Series U Warrants whose holders have not entered into a Warrant Amendment. At the option of those holders of Series U Warrants, such warrant holders may enter into a Warrant Amendment, with substantially the same terms as the existing Warrant Amendments and pursuant to the form of Warrant Amendment Agreement, with the Company at any time or from time to time, or it is possible that some or all of such holders of Series U Warrants may never enter into a Warrant Amendment (in which case the terms of such holders' original Series U Warrants shall remain in place). About Plus Therapeutics Headquartered in Austin, Texas, Plus Therapeutics, Inc. -- http://www.plustherapeutics.com/-- is a clinical-stage pharmaceutical company focused on the discovery, development, and manufacturing scale up of complex and innovative treatments for patients battling cancer and other life-threatening diseases. Plus Therapeutics reported a net loss of $10.89 million for the year ended Dec. 31, 2019, compared to a net loss of $12.63 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $20.97 million in total assets, $20.88 million in total liabilities, and $85,000 in total stockholders' equity. BDO USA, LLP, in San Diego, California, the Company's auditor since 2016, issued a "going concern" qualification in its report dated March 30, 2020 citing that the Company has suffered recurring losses and negative cash flows from operations that raise substantial doubt about its ability to continue as a going concern. PRIORITY HEALTHCARE: Taps Craig M. Geno as Legal Counsel -------------------------------------------------------- Priority Healthcare Corp. and its affiliates received approval from the U.S. Bankruptcy Court for the Northern District of Mississippi to hire the Law Offices of Craig M. Geno, PLLC as their legal counsel. The firm's services will include: a. advising the Debtors regarding questions arising from certain contract negotiations that will occur during the operation of their businesses; b. evaluating and objecting to claims of creditors; c. representing Debtors in suits and court proceedings; and d. advising Debtors in connection with any proposed Chapter 11 reorganization plan. The firm's attorneys and paralegals will be paid at hourly rates as follows: Craig Geno, Esq. $450 per hour Associates $250 per hour Paralegals $185 per hour Craig M. Geno does not represent any interest adverse to Debtors and their bankruptcy estates, according to court filings. The firm can be reached through: Craig M. Geno, Esq. Law Offices of Craig M. Geno, PLLC 587 Highland Colony Parkway Ridgeland, MS 39157 Tel: 601-427-0048 Email: cmgeno@cmgenolaw.com About Priority Healthcare Corp. Priority Healthcare Corp. is a holding company that either owns or is affiliated with other Priority Care pharmacies. It operates in the healthcare, pharmaceutical and insurance industries. Priority Healthcare and 12 affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Miss. Lead Case No. 20-11956) on June 2, 2020. At the time of the filing, Priority Healthcare disclosed assets of between $100,001 and $500,000 and liabilities of the same range. The Debtors have tapped the Law Offices of Craig M. Geno, PLLC as their legal counsel. PROTEUS DIGITAL: Hires Kurtzman Carson as Administrative Advisor ---------------------------------------------------------------- Proteus Digital Health, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Delaware to employ Kurtzman Carson Consultants LLC, as administrative advisor to the Debtor. Proteus Digital requires Kurtzman Carson to: (a) assist with, among other things, the preparation of the Debtor's schedules of assets and liabilities, schedules of executory contracts and unexpired leases and statement of financial affairs; (b) assist with, among other things, solicitation, balloting, tabulation and calculation of votes, as well as preparing any appropriate reports required in furtherance of confirmation of any chapter 11 plan; (c) generate an official ballot certification and testifying, if necessary, in support of the ballot tabulation results for any chapter 11 plan(s) in the Chapter 11 Case; (d) generate, provide and assist with claims objections, exhibits, claims reconciliation and related matters; and (e) provide such other claims processing, noticing, solicitation, balloting and administrative services, but not included in the Section 156(c) Application, as may be requested by the Debtor from time to time. Kurtzman Carson will be paid at these hourly rates: Securities Director/Solicitation Lead $172 Solicitation Consultant $164 Consultant/Senior Consultant $52-$168 Technology Consultant $28-$76 Analyst $24-$40 Kurtzman Carson will be paid a retainer in the amount of $20,000. Kurtzman Carson will also be reimbursed for reasonable out-of-pocket expenses incurred. Evan Gershbein, partner of Kurtzman Carson Consultants LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Kurtzman Carson can be reached at: Evan Gershbein KURTZMAN CARSON CONSULTANTS LLC 222 N. Pacific Coast Highway, 3rd Floor El Segundo, CA 90245 Tel: (310) 823-9000 Fax: (310) 823-9133 About Proteus Digital Health Proteus Digital Health, Inc., was founded in 2002 to research and develop Digital Medicines. It has developed and commercialized a service offering called Proteus Discover, a Digital Medicines solution. Proteus Digital Health sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 20-11580) on June 15, 2020. At the time of the filing, Debtor had estimated assets of between $100 million and $500 million and liabilities of between $50 million and $100 million. The Debtor tapped Goodwin Procter, LLP, as bankruptcy counsel; Potter Anderson & Corroon, LLP, as Delaware and conflicts counsel; SierraConstellation Partners, LLC, as financial advisor; and Kurtzman Carson Consultants, LLC, as notice and claims agent and administrative advisor. PTSI CONSTRUCTION: Seeks Approval to Hire Accountant ---------------------------------------------------- PTSI Construction, Inc. seeks authority from the United States Bankruptcy Court for the Western District of Texas (El Paso) to hire an accountant. The Debtor wishes to hire Wayne J. Belisle, CPA as its accountant to prepare its cash flow reports, K-1's for income tax purposes, sales tax reports, cash flow projections, and any other accounting work that the Debtor may need. Mr. Belise will charge $200 per hour for his services and $100 per hour for services rendered by Jessica Belise, EA. Mr. Belise assures the court that he does not represent nor hold any interest adverse to the Debtor or its estate. Mr. Belise can be reached at: Wayne J. Belisle, CPA 11208 Montwood Drive El Paso, TX 79936 Tel: (915) 857-8158 About PTSI Construction, Inc. Based in El Paso, Texas, PTSI Construction, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-30522) on April 17, 2020, listing under $1 million in both assets and liabilities. E.P. Bud Kirk, Esq. at E.P. BUD KIRK represents the Debtor as counsel. QUANTUM CORP: Incurs $10.7 Million Net Loss in First Quarter ------------------------------------------------------------ Quantum Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $10.74 million for the three months ended June 30, 2020, compared to a net loss of $3.81 million for the three months ended June 30, 2019. As of June 30, 2020, the Company had $164.94 million in total assets, $360.44 million in total liabilities, and a total stockholders' deficit of $195.50 million. Jamie Lerner, chairman and CEO, Quantum commented, "The Quantum team executed with agility and resiliency in the first fiscal quarter, advancing our long-term transformation strategy amidst a dynamic and challenging environment. Our quarterly financial results were in-line with expectations, and while we recognize many of our customers are still facing uncertainty and volatility, we have seen some encouraging trends already in the second quarter supporting our belief that the first quarter was the trough in our business. Now, as many industries begin to resume operations, our solutions are increasingly in demand. We already have clear visibility to revenue targets in the second fiscal quarter representing a double-digit percentage increase sequentially as compared to the first fiscal quarter." Mr. Lerner continued, "Our second fiscal quarter is typically strong from a seasonal perspective. Sports and entertainment customers are ramping back up albeit with shortened seasons, and our business with these customers does not require spectators, just the resumption of operations and the capture of video data for streaming and other uses. We have continued to innovate our technology and serve our customers' growing video and unstructured data needs all while controlling costs and strengthening our balance sheet. Combined with the improvements we have made to the company over the past 24 months, I am confident that the re-built earnings power of Quantum will become increasingly apparent as we navigate through this crisis and expand our leadership in managing and retaining unstructured data." First Quarter of Fiscal 2021 vs. Prior-Year Quarter Revenue was $73.3 million for the first quarter of fiscal 2021, down 31% compared to $105.6 million in the year ago quarter and in-line with Quantum's guidance. Revenue declined across the company's product lines largely due to COVID-19 pandemic. The revenue decline was led by a decrease in product revenue due to reduced demand for secondary storage systems and lower hyperscale revenue, as well as a decrease in royalty revenue due to overall declines in market unit volumes as the primary use of tape continues to transition from backup to archive workflows. Revenue in the first 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 first quarter of fiscal 2021 was $30.9 million, or 42.1% gross margin, compared to $45.8 million, or 43.4% gross margin, in the year ago quarter. Gross margins contracted modestly year over year primarily due to spreading fixed overhead costs over lower revenue combined with lower high margin royalty revenues. Total operating expenses in the first quarter of fiscal 2021 were $34.3 million, or 46.9% of revenue, compared to $43.1 million, or 40.8% of revenue, in the year ago quarter. Selling, general and administrative expenses declined 33% to $23.1 million for the first quarter of fiscal 2021 compared to $34.4 million in the year ago quarter. Research and development expenses were $10.2 million in the first quarter of fiscal 2021, up 21% compared to $8.4 million in the year ago quarter. Excluding stock compensation, restructuring charges and non-recurring charges, Adjusted Net Loss in the first quarter of fiscal 2021 was $6.8 million, or ($0.17) per diluted share, compared to Adjusted Net Income of $5.4 million, or $0.13 per diluted share, in the year ago quarter. Adjusted EBITDA in the first quarter of fiscal 2021 decreased $11.7 million to $1.4 million, compared to $13.1 million in the year-ago quarter. Balance Sheet and Liquidity * Cash and cash equivalents of $29.1 million as of June 30, 2020, compared to $12.2 million as of March 31, 2020. Both balances include $5.0 million in restricted cash required under the Company's Credit Agreements, and $0.8 million of short-term restricted cash. * Outstanding debt as of June 30,2020 on a gross basis was $195.2 million and on a net basis was $170.6 million after netting $24.6 million in unamortized debt issuance costs. This compares to $167.8 million of outstanding debt as of March 31, 2020 on a gross basis, and on a net basis was $154.1 million after netting $13.7 million in unamortized debt issuance costs. The increase in long-term debt from March 31, 2020 was primarily due to term debt borrowings of $20.0 million and a $10.0 million Paycheck Protection Program Term Loan * Total interest expense was $6.4 million for the three months ended June 30, 2020. 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 expire on Dec. 27, 2023. Among other terms, the amended credit facilities provide a holiday period for certain financial covenants through June 30, 2021 and the term loan credit facility contains a more favorable equity claw back feature. The terms of the 2020 term loan credit agreement are substantially similar to the terms of the existing term loan, including in relation to maturity, security and pricing. Outlook For the second fiscal quarter of 2021, the Company expects revenues of $83 million plus or minus $2 million. The Company expects Adjusted Net Loss to be $3 million plus or minus $0.5 million and related Adjusted Net loss per share of $(0.08) plus or minus $0.01. Adjusted EBITDA is expected to be $5 million plus or minus $1 million. A full-text copy of the Form 10-Q is available for free at: https://is.gd/fMoB9a 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. Quantum Corporation reported a net loss of $5.21 million for the year ended March 31, 2020, a net loss of $42.80 million for the year ended March 31, 2019, and a net loss of $43.35 million for the year ended March 31, 2018. QUORUM HEALTH: To Emerge From Bankruptcy in August 2020 ------------------------------------------------------- Hailey Mensik of Healthcare Dive reports that for-profit hospital operator Quorum Health received approval of its plan to recapitalize the business Monday in U.S. Bankruptcy Court for the District of Delaware. Quorum expects to emerge from bankruptcy in early July, according to regulatory filings. The system filed for Chapter 11 bankruptcy April 7 to address current liquidity needs while continuing to care for patients and keep its hospitals operating amid a pandemic, according to a statement. It entered into a restructuring agreement with a majority of its lenders and noteholders. Quorum still needs the court to issue a final order, but said the reorganization will reduce its debt by about $500 million, as originally expected. Dive Insight Tennessee-based Quorum Health, which operates 22 rural and mid-sized hospitals in 13 states, may have been more ill-positioned financially than other systems going into the pandemic. The company went public in May 2016 with 38 hospitals — 14 of which have since shuttered. In 2017, private equity firm KKR took a 5.6% stake in the system for $11.3 million. Beyond being Quorum's largest debt-holder today, KKR also owns about 9% of its public shares. In December, the firm offered to buy Quorum out and take the hospital chain private at $1 a share. But that didn't pan out, and Quorum instead ended up filing for bankruptcy in April, soon after the COVID-19 pandemic hit. The restructuring agreement now "allows our company to begin a new chapter with the flexibility and resources to continue supporting our community hospitals as they serve on the frontlines of this pandemic and beyond," Marty Smith, Quorum's executive vice president and chief operating officer, said in a statement Monday. "We are grateful for the confidence of our financial stakeholders and partners, as well as our dedicated employees and physicians, and look forward to building on the significant progress we have made in strengthening our operations in recent years," he said. About Quorum Health Corp. Headquartered in Brentwood, Tennessee, Quorum Health (NYSE: QHC) --http://www.quorumhealth.com/-- is an operator of general acute care hospitals and outpatient services in the United States. Through its subsidiaries, the Company owns, leases or operates a diversified portfolio of 24 affiliated hospitals in rural and mid-sized markets located across 14 states with an aggregate of 1,995 licensed beds. The Company also operates Quorum Health Resources, LLC, a leading hospital management advisory and consulting services business. Quorum Health incurred net losses attributable to the company of $200.25 million in 2018, $114.2 million in 2017, and $347.7 million in 2016. As of Sept. 30, 2019, Quorum Health had $1.52 billion in total assets, $1.72 billion in total liabilities, $2.27 million in redeemable non-controlling interest, and a total deficit of $203.36 million. On April 7, 2020, Quorum Health Corporation and 134 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10766) to seek confirmation of a pre-packaged plan. Debtors hired McDermott Will & Emery LLP and Wachtell, Lipton, Rosen & Katz as legal counsel, MTS Health Partners, L.P. as financial advisor, and Alvarez & Marsal North America, LLC. as restructuring advisor. Epiq Corporate Restructuring, LLC, is the claims agent, maintaining the Web site https://dm.epiq11.com/Quorum R.E.X. INC: Hires Caldwell & Riffee as Counsel ---------------------------------------------- R.E.X., Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of West Virginia to employ Caldwell & Riffee, PLLC, as counsel to the Debtor. R.E.X., Inc. requires Caldwell & Riffee to: a. give the Debtor legal advice with respect to its powers and duties as a Debtor-in-Possession; b. challenge levies by the West Virginia State Tax Department; c. negotiate with Community Trust Bank regarding adequate protection payments and its secured claim; d. assist the Debtor in the sale of certain real property; e. prepare a Plan of Reorganization; and f. perform all other legal services for the Debtor which may become necessary. Caldwell & Riffee will be paid at the hourly rate of $200, and a retainer in the amount of $15,000. Caldwell & Riffee will also be reimbursed for reasonable out-of-pocket expenses incurred. Joseph W. Caldwell, a partner of Caldwell & Riffee, 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. Caldwell & Riffee can be reached at: Joseph W. Caldwell, Esq. Matthew M. Johnson, Esq. CALDWELL & RIFFEE, PLLC P.O. Box 4427 Charleston, WV 25364 Tel: (304) 925-2100 E-mail: joecaldwell@frontier.com mjohnson@caldwellandriffee.com About R.E.X. Inc. R.E.X., Inc., filed a Chapter 11 bankruptcy petition (Bankr. S.D.W.Va. Case No. 20-30290) on July 27, 2020. The Debtor hired Caldwell & Riffee, PLLC, as counsel. RAUL MORENO: Former Sea Tow Franchisees Sued Over Use of Logo ------------------------------------------------------------- Law360 reports that marine salvager Sea Tow Services told a New York federal judge on June 30, 2020 that a pair of former franchisees and their son engaged in a fraudulent scheme to try to reclaim their terminated franchise agreement through an "orchestrated bankruptcy." In a suit, Sea Tow claimed it could have made over $1.5 million selling the franchise if not for the scheme between Kathleen and Raul Moreno and their son, Erich Jaeger, and that the trio is continuing to use Sea Tow's logo without authorization and refusing to pay hundreds of thousands of dollars they owe the company. Sea Tow is an international marine assistance provider headquartered in Southold, NY. Presently Sea Tow operates over 120 independently owned franchise locations in the United States, Europe, the Bahamas and Puerto Rico. RAYONIER ADVANCED: Posts $12.9 Million Net Loss in Second Quarter ----------------------------------------------------------------- Rayonier Advanced Materials Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, reporting a net loss available to common stockholders of $12.86 million on $396.8 million of net sales for the three months ended June 27, 2020, compared to a net loss available to common stockholders of $18.36 million on $450.2 million of net sales for the three months ended June 29, 2019. For the six months ended June 27, 2020, the Company reported a net loss available to common stockholders of $36.99 million on $806.6 million of net sales compared to a net loss available to common stockholders of $43.77 million on $891.3 million of net sales for the six months ended June 29, 2019. As of June 27, 2020, the Company had $2.44 billion in total assets, $305.49 million in total current liabilities, $1.06 billion in long-term debt, $159.19 million in long-term environmental liabilities, $221.43 million in pension and other post-retirement benefits, $22.31 million in deferred tax liabilities, $26.89 million in other long-term liabilities, and $648.73 million in total stockholders' equity. Year-to-date net loss from continuing operations for the six months ended June 27, 2020 was $38 million, or $0.60 per diluted common share, compared to a net loss of $47 million, or $1.10 per diluted common share for the same prior year period. The decrease in the diluted loss per share was due primarily to the conversion of the Company's preferred stock into approximately 13 million shares of common stock in August of 2019. "Second quarter results were below expectations primarily driven by the impacts of COVID-19," said Paul Boynton, president and chief executive officer. "High Purity Cellulose was impacted from reduced demand for textile, automotive and construction related products and ocean carrier delays, while newsprint demand was adversely affected, severely impacting price realizations and volumes. Despite the market challenges, we continued to focus on operating reliably to meet the needs of our customers, minimizing our costs and improving our cash flow. In addition, we amended our bank debt covenants and increased liquidity, providing us with incremental financial flexibility to manage through the pandemic." For the three and six months ended June 27, 2020, the Company's operations provided cash flows of $24 million and $11 million, respectively. Year-to-date working capital used $27 million, primarily due to an increase in the income tax receivable as a result of the CARES Act. Operating cash flows improved $37 million from the first quarter 2020. For the three and six months ended June 27, 2020, the Company invested $10 million and $23 million respectively, in capital expenditures, which included approximately $5 million of strategic capital year-to-date. The Company ended the second quarter of 2020 with $166 million of liquidity globally, including $49 million of cash, $98 million revolver availability in the U.S. and $19 million of availability on a factoring facility in France. Liquidity for the quarter improved $21 million, driven by a $10 million increase in revolver availability resulting from an amendment to the credit agreement and a $6 million improvement in cash driven by $16 million of Free Cash Flow in the quarter. The Company remains well within compliance with its second quarter covenants, including a Gross Secured Leverage Ratio of 4.8 times EBITDA compared to a covenant of less than 6.2 times and an Interest Coverage Ratio of 2.0 times compared to a covenant 1.6 times. Market Assessment The Company said a full year outlook for each of the Company's segments is difficult to provide due to the uncertainty of the magnitude and timing of economic recovery due to the COVID-19 pandemic and the risk of supply chain disruptions beyond the control of the Company. As such, the Company has determined to suspend its guidance. The market assessment represents the Company's best current estimate of each business in this environment. High Purity Cellulose During the second quarter, as a direct result of the COVID-19 pandemic, the Company experienced a reduction in overall demand for its cellulose specialties products, driven by weakness in the automotive, industrial and construction end-markets, while demand for acetate tow, food and pharmaceutical end-markets remained relatively stable. The Company believes its diversified end-markets, and its customers' focus on security of supply, provide greater earnings stability during times of uncertainty but do not eliminate the risk associated with the demand impact of COVID-19 on its end markets. The outlook for sales of cellulose specialties is highly dependent on the recovery of economic growth as the world emerges from the pandemic. For its commodity products, the pricing momentum of absorbent materials, primarily fluff pulp, experienced in the second quarter has dissipated and modest decreases have recently been experienced. Viscose pulp markets remain extremely weak as the U.S. tariffs on Chinese textiles combined with the global "stay at home" directives have significantly reduced demand for textiles and clothing. Certain costs, specifically wood, energy and commodity chemical prices have declined from prior year levels. However, future input prices and availability of chemicals are difficult to predict due to the current unprecedented economic conditions. The Company is seeing increasing pressure on certain chemical and transportation costs. Logistics delays, especially as it relates to ocean transportation, could result in the variability of revenue recognition. Operations at all four high purity cellulose mills are running at or near normal levels. The Company will continue to optimize its commodity profile to maximize profitability and, if necessary, will curtail production to minimize impacts of reduced demand. Forest Products Early in the second quarter, stemming from the COVID-19 pandemic, lumber demand and prices declined rapidly causing producers to curtail approximately 30 percent (at peak) of North American lumber production capacity. Later in the quarter, the demand for lumber improved significantly while North American production rates have been slower to restart, resulting in a supply and demand imbalance. As a result, lumber sales prices have surged. Repair and remodel activity is the main catalyst for this market resurgence with strong demand for stud lumber, resulting in a rare premium for stud products above random length lumber. U.S. housing starts in June 2020 were approximately 1.2 million units, seasonally adjusted, which is an improvement from lows in April of 0.9 million units, but still 25 percent below the pre-COVID-19 February 2020 seasonally adjusted levels. As a result of the improved pricing, the Company is currently operating its lumber assets near full capacity. As announced in January by the U.S. Department of Commerce, the Company expects duties on softwood lumber imported into the U.S. to be reduced from 20 percent to 8 percent later in 2020 or early 2021. Since 2017, the Company has paid approximately $72 million in duties. Paperboard COVID-19 has had a muted impact on Paperboard sales and profitability has benefited from lower input costs offset by some sales mix decline. Paperboard for packaging and lottery markets have been generally resilient, while commercial printing has shown weakness. The Company expects stable sales volumes and to operate the paperboard assets at normal levels going forward. Pulp & Newsprint After significant improvements in high yield pulp demand and pricing at the beginning of the year, the weakness in the broader paper pulp market caused by the COVID-19 pandemic is now negatively impacting pricing of high yield pulp products. Overall input costs have remained stable and the Company expects to produce at normal levels for the near future. However, a further deterioration of markets could require modest downtime to control inventory levels. Demand for newsprint products has declined approximately 23 percent since the beginning of the year resulting in reduced sales prices and volumes, while input costs have remained stable. In response, North American producers have announced production downtime, resulting in reduced newsprint production capacity of approximately 33 percent. The Company intends to manage its production based on demand to maximize profitability and optimize cash flows until the market stabilizes. Conclusion "Despite the challenges from COVID-19, we believe that our core High Purity Cellulose segment represents a solid foundation to grow our business as we emerge from the unprecedented challenges and uncertainties in the global economy. With the earnings potential of our assets well above current levels, we continue to focus on operating safely, reducing costs and improving cash flow and liquidity. We believe that our business is resilient and the actions we have taken to increase financial flexibility in the near term will allow us to realize our potential in the post-pandemic world." concluded Mr. Boynton. A full-text copy of the Form 10-Q is available for free at: https://is.gd/iNLAxL About Rayonier Advanced Headquartered in Jacksonville, Florida, Rayonier Advanced Materials Inc. -- http://www.rayonieram.com/-- is a producer of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for lumber, paper and packaging markets. The Company has manufacturing operations in the U.S., Canada, and France. Rayonier Advanced reported a net loss available to common stockholders of $31.03 million for the year ended Dec. 31, 2019. * * * As reported by the TCR on March 6, 2020 S&P Global Ratings lowered its issuer credit rating on Rayonier Advanced Materials Inc. (RYAM) to 'CCC+' from 'B-' and lowered its issue-level rating on its senior unsecured notes to 'CCC' from 'CCC+'. The downgrade reflects the severe deterioration in RYAM's margins, which caused its leverage to rise to more than 10x as of Dec. 31, 2019, from 3.6x as of Dec. 31, 2019 and 7.4x as of Sept. 30, 2019. REISINGER HOLDINGS: Hires Matthew M. Cree as Counsel ---------------------------------------------------- Reisinger Holdings, Inc., d/b/a SPD Textile & Drapery Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of Indiana to employ the Law Office of Matthew M. Cree, LLC, as counsel to the Debtor. Reisinger Holdings requires Matthew M. Cree to: a. give the Debtor legal advice with respect to its duties, powers and responsibilities in this case; b. investigate and pursue any actions on behalf of the estate in order to recover assets for or best enable this estate to reorganize fairly; c. represent the Debtor in these proceedings in an effort to maximize the value of the assets available herein, and to pursue confirmation of a successful Plan of Reorganization; and d. perform such other legal services as may be required an in the interest of the estate herein. Matthew M. Cree will be paid at the hourly rate of $250. The Debtor paid Matthew M. Cree the amount of $1,000 for prepetition services rendered, and $1,717 filing fee. Matthew M. Cree will also be reimbursed for reasonable out-of-pocket expenses incurred. Matthew M. Cree, a partner of the Law Office of Matthew M. Cree, LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Matthew M. Cree can be reached at: Matthew M. Cree, Esq. LAW OFFICE OF MATTHEW M. CREE, LLC PO Box 7805 Greenwood, IN 46142 Tel: (317) 695-1008 Fax: (317) 942-0941 E-mail: matt@creelawoffice.com About Reisinger Holdings d/b/a SPD Textile & Drapery Inc. Reisinger Holdings, Inc. -- https://spdtextile.com/ -- is a full service, window treatment company offering a wide range of custom shades, blinds, upholstery, and drapery solutions to meet the needs of residential and commercial clients. Reisinger Holdings, Inc. a/k/a SPD Textile & Drapery Inc., based in Indianapolis, IN, filed a Chapter 11 petition (Bankr. S.D. Ind. Case No. 20-03806) on July 1, 2020. In the petition signed by Michael Scott Reisinger, president, the Debtor disclosed $822,454 in assets and $2,179,748 in liabilities. The Hon. Robyn L. Moberly presides over the case. LAW OFFICE OF MATTHEW M. CREE, LLC, serves as bankruptcy counsel. RENNOVA HEALTH: Reverse Common Stock Split Took Effect on July 31 ----------------------------------------------------------------- Rennova Health, Inc. reports that effective at 5:00 p.m., Eastern Time, on July 31, 2020, the Company effected a 1 for 10,000 reverse stock split of its outstanding common stock. The Company's common stock opened for trading on Monday, Aug. 3, 2020, on a post-split basis under the temporary trading symbol "RNVAD". The trading symbol will revert to "RNVA" after 20 business days. As a result of the reverse stock split, every 10,000 shares of the Company's common stock issued and outstanding on the Effective Time were consolidated into one issued and outstanding share, except to the extent that the reverse stock split resulted in any of the Company's stockholders owning a fractional share, which fractional share will be in that case paid in cash. In connection with the reverse stock split, there was no change in the nominal par value per share of $0.0001. Trading of the Company's common stock will continue on a split-adjusted basis under a new CUSIP number. Based on the number of shares outstanding on July 31, the reverse stock split reduced the number of shares of the Company's common stock outstanding from approximately 9.9 billion pre-reverse split shares to approximately 990,000 post-reverse split. All outstanding preferred shares, stock options, warrants, and equity incentive plans immediately prior to the reverse stock split generally were appropriately adjusted by dividing the number of shares of common stock into which the preferred shares, stock options, warrants and equity incentive plans were exercisable or convertible by 10,000 and multiplying the exercise or conversion price by 10,000, as a result of the reverse stock split. The Company has retained its transfer agent, Computershare Inc., to act as its exchange agent for the reverse stock split. Computershare will provide stockholders of record as of the Effective Time a letter of transmittal providing instructions for the exchange of their stock certificates. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to brokers' particular processes, and will not be required to take any action in connection with the reverse stock split. The reverse stock split was approved by the directors of the Company on July 22, 2020, pursuant to a resolution adopted by written consent of the holders of the majority of the total voting power of the Company's securities on May 7, 2020. About Rennova Health, Inc. Rennova Health, Inc. -- http://www.rennovahealth.com/-- operates three rural hospitals in Tennessee and provides diagnostics and supportive software solutions to healthcare providers. Rennova Health reported a net loss to common shareholders of $171.9 million for the year ended Dec. 31, 2019, compared to a net loss to common shareholders of $245.87 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $15.76 million in total assets, $90.43 million in total liabilities, $5.83 million in redeemable preferred stock - Series I-1, $1.79 million in redeemable preferred stock - Series I-2, and a total stockholders' deficit of $82.28 million. Haynie & Company, in Salt Lake City, Utah, the Company's auditor since 2018, issued a "going concern" qualification in its report dated June 25, 2020, citing that the Company has recognized recurring losses, negative cash flows from operations, and currently has minimal revenue producing activities. This raises substantial doubt about the Company's ability to continue as a going concern. REPUBLIC FIRST: Egan-Jones Lowers Senior Unsecured Ratings to BB ---------------------------------------------------------------- Egan-Jones Ratings Company, on July 31, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Republic First Bancorp, Inc. to BB from BB+. Headquartered in Philadelphia, Pennsylvania, Republic First Bancorp, Inc. is the holding company for Republic Bank which offers a variety of credit and depository services to individuals and businesses through full-service offices located in Greater Philadelphia and Southern New Jersey. RGN-FORT LAUDERDALE III: Case Summary & Unsecured Creditor ---------------------------------------------------------- Debtor: RGN-Fort Lauderdale III, LLC 3000 Kellway Drive Suite 140 Carrollton, TX 75006 Business Description: RGN-Fort Lauderdale III, LLC is primarily engaged in renting and leasing fully serviced private office spaces. Doing business as Regus (https://www.regus.com), the Company offers customers a choice of design, fitout, location, and building, enabling them to choose the right workspace to meet their unique needs. Chapter 11 Petition Date: August 8, 2020 Court: United States Bankruptcy Court District of Delaware Case No.: 20-11931 Debtor's Counsel: Patrick A. Jackson, Esq. FAEGRE DRINKER BIDDLE & REATH LLP 222 Delaware Avenue, Suite 1410 Wilmington, Delaware 19801 Tel: (302) 467-4200 Email: Patrick.Jackson@faegredrinker.com Debtor's Financial Advisor: ALIXPARTNERS Debtor's Restructuring Advisor: DUFF & PHELPS, LLC Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by James S. Feltman, responsible officer. The Debtor listed Steelbridge Las Olas West LLC as its sole unsecured creditor holding a claim of $318,205. A copy of the petition is available at for free at PacerMonitor at: https://is.gd/yfTLh5 RJT REAL ESTATE: RMM Properties' Value Unimpaired in Amended Plan ----------------------------------------------------------------- RJT Real Estate Holdings, LLC, filed the Amended Disclosure Statement describing the Amended Chapter 11 Plan. The Debtor estimates that either the purchase price of the property will be reduced or a monetary judgment to compensate Debtor for keeping the property and making necessary repairs itself will be granted as a result of the Adversary Proceeding (Debtor has sued on several causes of action. The primary cause of action was an agreement between Debtor and the previous holder of the note, Gary Davis, to reduce the purchase price because the property had material defects which Mr. Davis did not wish to repair. Debtor took the property in the defective condition with a reduction in purchase price as the consideration. If for some reason the court does not believe the amended agreement is valid, then Debtor has also sued to recover for the defects which both have been repaired and have not been repaired by Debtor, which reduce the value of the property.) The Debtor has taken on an additional tenant to assist with the expenses that litigation is causing. This tenant is paying $1,500 per month for the partial use of the property that is the subject of the bankruptcy. They are on a month-to-month tenancy, but it is expected that they will be using this property for some time. Additionally, Mr. Tolbert, the owner of Debtor, was making the payments on the note prior to the new tenant and has the financial means to continue to do so if needed. Finally, worst case scenario if Mr. Tolbert were to default on the terms of the note, the land is worth more than the note and there are no other debts so the one and only creditor is well-secured. Thus the financial condition of the Debtor is good. Secured prepetition claim of RMM Properties. The Debtor originally signed an agreement with the prior holder of the note, Gary Davis, to make payments for $1,000 per month for the first year and for $1,787.50 per month for subsequent years until the note was paid in full. However, due to material defects in the property, some of which Debtor has already improved, Debtor and Mr. Davis agreed to keep all payments at $1,000 for the duration of the note and to reduce the note value. At a later date, Mr. Davis requested that Debtor increase the monthly payment to $1,500, but that the note value would not increase accordingly. The Debtor has made all the payments required by its agreement with Mr. Davis. After Mr. Davis sold the note to RMM Properties, RMM is asserting that they are owed the full value of the note. To the extent that Mr. Davis represented that the note is worth that much and to the extent that RMM Properties purchased that much in value, Debtor does not disagree with how much money is due to RMM Properties. What Debtor does not agree with is whether Debtor must pay that full amount to RMM Properties or whether Debtor must pay the reduced note amount to RMM Properties and RMM Properties can get the balance of their debt from Gary Davis. This is the matter that will be litigated in the adversary proceeding. As a result, it is Debtor's position that RMM's value will not be impaired no matter the outcome of the litigation in the adversary proceeding. The Debtor's obligation may be adjusted but, upon belief and information from Gary Davis' attorney, RMM will be made whole to the full extent of their note by Mr. Davis if the court rules that Debtor pay anything less than the full value of the note. A full-text copy of the Amended Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/y8owes6g from PacerMonitor.com at no charge. Attorneys for the Debtor: Sarah J. Larsen UTAH BANKRUPTCY LAW CENTER, PLLC 3161 S West Temple, Unit 65817 Salt Lake City, UT 84165 Toll Free (801) 875-4004 E-mail: Sarah.Larsen@utahbankruptcylawcenter.com About RJT Real Estate Holdings RJT Real Estate Holdings, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Utah Case No. 18-29037) on Dec. 4, 2018. At the time of the filing, the Debtor was estimated to have assets of less than $500,000 and liabilities of less than $100,000. Judge R. Kimball Mosier oversees the case. The Debtor tapped Vannova Legal, PLLC, as its legal counsel. SABRE INDUSTRIES: Moody's Raises CFR to B1, Outlook Stable ---------------------------------------------------------- Moody's Investors Service upgraded Sabre Industries, Inc.'s corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD. Moody's also upgraded the company's first lien senior secured debt ratings to B1 from B2. The ratings outlook changed to stable from positive. The ratings upgrade is supported by the company's reduction in balance sheet debt, and expectation that the company will continue to generate positive annual free cash flow, while a sizeable backlog provides a degree of revenue visibility over the next twelve months. "The rating upgrades amid the coronavirus pandemic reflect the expectation that the company will maintain its improved leverage profile including positive free cash flow " said Gigi Adamo, Moody's Vice President and lead analyst for the company. "Investments the company has made in recent years and strides towards margin improvement are also reflected in the upgrades," added Adamo. Moody's took the following rating actions: Upgrades: Issuer: Sabre Industries, Inc. Corporate Family Rating, Upgraded to B1 from B2 Probability of Default Rating, Upgraded to B1-PD from B2-PD Senior Secured Bank Credit Facility, Upgraded to B1 (LGD3) from B2 (LGD3) Outlook Actions: Issuer: Sabre Industries, Inc. Outlook, Changed to Stable from Positive RATINGS RATIONALE Sabre's B1 corporate family rating broadly reflects its leading market position and healthy annual free cash flow balanced against high, although meaningfully improved, financial leverage and a modest revenue scale. In addition, working capital variability also somewhat constrains the rating. At the same time, the ratings also recognize the company's renewables/battery storage capabilities and an improved margin profile that will continue to translate into double-digit free cash flow as a percentage of debt. Despite the uncertain macroeconomic environment precipitated by the coronavirus pandemic, the company is expected to benefit from certain of the favorable dynamics underlying the company's utility and telecom businesses that continue to exist independent of the pandemic. These dynamics include strong spending to support grid hardening with continued high capex spend by utilities as well as continued strength on macro site build in the telecom sector. In addition, the company's presence on some of the more visible projects, including in both the telecom and utility sectors, provides support for the maintenance of the company's improved credit profile over the next one to two years. The stable ratings outlook reflects its expectation that the company will be able to execute on its healthy backlog that provides near-term revenue visibility, as well as the maintenance of a very good liquidity profile amid the current uncertain macroeconomic environment stemming from the coronavirus pandemic. Sabre has a very good liquidity profile, supported by positive annual free cash flow and ample availability under the company's revolving credit facility. In addition, the company is expected to maintain good covenant headroom under its springing covenant applicable to its currently undrawn revolving credit facility. Moody's does not expect the covenant to be triggered over the next twelve to eighteen months. The company's term loan does not have financial maintenance covenants. From a corporate governance perspective, Moody's notes that the company is demonstrating a relatively conservative financial leverage policy, particularly given its private equity ownership, as debt prepayment has improved Sabre's gross debt/EBITDA to the 3.5x level (including Moody's standard debt adjustment for leases) that Moody's expects to continue to moderately improve through FY 2021. Nonetheless, event risk persists with respect to Sabre's private equity ownership over the longer-term. Sabre is expected to benefit from favorable environmentally driven tailwinds in the utility sector, including grid hardening renewables and resiliency against climate change and weather events -- trends that are supportive of continued healthy capital spending by end customers. Notwithstanding the ratings upgrades, the rapid spread of the coronavirus outbreak, a 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 coronavirus crisis is not a key driver for this rating action. Although the end markets Sabre operates in are less affected than most other sectors, it is not immune to the adverse impact of the pandemic and leaves the company vulnerable to shifts in customer demand that may ensue as the pandemic persists. While Moody's does not currently see any material immediate credit risks for Sabre, the situation surrounding the coronavirus is rapidly evolving and the longer-term impact will depend on both the severity and duration of the crisis. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upward rating action could be prompted by increased revenue scale well beyond $1 billion, together with the sustainment of the company's improved margin and free cash flow profile. Debt-to-EBITDA improving to below 3.0x, EBITA-to-interest in excess of 3.75x, and free cash flow-to-debt sustained at double-digit levels while a good liquidity profile is maintained could also contribute to upward rating momentum. A downward rating action could develop if debt-to-EBITDA is expected to exceed 5.0x, EBITA-to-interest falls below 2.5x, or free cash flow turns negative. More aggressive financial policies, including a sizable debt-financed dividend, could also exert downward ratings pressure. The principal methodology used in these ratings was Manufacturing Methodology published in March 2020. Headquartered in Alvarado, Texas, Sabre Industries, Inc. manufactures towers, poles, shelters and related transmission structures used in the wireless communications and electric transmission and distribution industries. The company was bought by private equity firm The Jordan Company in April 2019 as part of a leveraged transaction. SANCHEZ ENERGY: Exits Bankruptcy as Mesquite Energy --------------------------------------------------- Cameron W. George, writing for the Houston Business Journal, reports that Houston-based Sanchez Energy Corp. has emerged from Chapter 11 bankruptcy protection with a new name: Mesquite Energy Inc. The company's financial restructuring eliminated substantially all of its approximately $2.3 billion in debt, according to a June 30 press release. Sanchez Energy filed for bankruptcy in August 2019. There's also a new top executive and board of directors leading the company. Cameron W. George, formerly executive vice president and CFO of Sanchez Energy, is now serving as interim CEO, executive vice president and CFO of Mesquite Energy. Before joining Sanchez Energy in 2016 as senior vice president of capital markets, George was a member of the founding team at Houston-based Linn Energy LLC. His nearly 20 years of oil and natural gas industry and investment banking experience also includes serving as an investment banker in the energy group at RBC Capital Markets. The June 30 press release does not indicate Mesquite Energy's plans for naming a permanent CEO or address the departure of Sanchez Energy President and CEO Tony Sanchez III. Also part of Mesquite Energy's leadership team is Gregory B. Kopel, who is serving as executive vice president, general counsel and corporate secretary. He served in a similar role with Sanchez Energy and previously worked for Occidental Petroleum Corp., Linn Energy and Breitburn Energy Partners. Mesquite Energy's board of directors consists of: * Nathan H. Van Duzer, managing director of special situations at Fidelity Investments. * Wilson B. Handler, a partner in the Natural Resources group at Apollo Global Management Inc. * Harry F. Quarls, a director for Rosehill Resources and chairman of the board for Key Energy Services and Sunrise Oil & Gas. "We are excited to begin our new chapter as Mesquite Energy, a simpler and leaner company, guided by our core principles of cost discipline and production efficiency to create long-term value for our stakeholders," George said in the release. "With a clean balance sheet and substantial repositioning of our cost structure, we have taken the hard but necessary steps to become profitable in this low commodity-price environment." About Sanchez Energy Corp. Sanchez Energy Corporation and its affiliates -- https://sanchezenergycorp.com/ -- are independent exploration and production companies focused on the acquisition and development of U.S. onshore oil and natural gas resources. Sanchez Energy is currently focused on the development of significant resource potential from the Eagle Ford Shale in South Texas, and holds other producing properties and undeveloped acreage, including in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of Dec. 31, 2018, the companies had approximately 325,000 net acres of oil and natural gas properties with proved reserves of approximately 380 million barrels of oil equivalent and interests in approximately 2,400 gross producing wells. Sanchez Energy and 10 affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-34508) on Aug. 11, 2019. As of June 30, 2019, the companies disclosed $2,159,915,332 in assets and $2,854,673,930 in liabilities. The cases have been assigned to Judge Marvin Isgur. The companies tapped Akin Gump Strauss Hauer & Feld LLP and Jackson Walker L.L.P. as bankruptcy counsel; Moelis & Company LLC as financial advisor; Alvarez & Marsal North America LLC as restructuring advisor; and Prime Clerk LLC as notice and claims agent. The Office of the U.S. Trustee appointed a committee of unsecured creditors on Aug. 26, 2019. The committee tapped Milbank LLP and Locke Lord LLP as its co-counsel. SANDS CORP: Egan-Jones Lowers Sr. Unsecured Ratings to BB- ---------------------------------------------------------- Egan-Jones Ratings Company, on July 28, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Las Vegas Sands Corporation to BB- from BB. Headquartered in Las Vegas, Nevada, Las Vegas Sands Corporation owns and operates casino resorts and convention centers. SCHLUMBERGER LIMITED: Egan-Jones Lowers Sr. Unsec. Ratings to BB- ----------------------------------------------------------------- Egan-Jones Ratings Company, on July 29, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Schlumberger Limited to BB- from BB+. Headquartered in Houston, Texas, Schlumberger Limited is an oil services company. SEABRAS 1 USA: Plan of Reorganization Confirmed by Judge -------------------------------------------------------- Judge Stuart M. Bernstein has entered findings of fact, conclusions of law and order confirming the Joint Plan of Reorganization of Seabras 1 USA, LLC and its debtor affiliates. The Plan constitutes a good faith compromise of all Claims, Interests, and controversies relating to the contractual, subordination, and other legal rights that a holder of a Claim or Interest may have with respect to any Allowed Claim or Interest, or any distribution to be made on account of such Allowed Claim or Interest. Classes 1, 2, 4, 5, 6, and 7 constitute Unimpaired Classes, each of which is deemed to have accepted the Plan in accordance with section 1126(f) of the Bankruptcy Code. The Voting Class (Class 3) has voted to accept the Plan. The Restructured Facilities have been negotiated in good faith and at arm's length among the Debtors and the lenders thereto, and any credit extended and loans made to the Reorganized Debtors pursuant to the Restructured Facilities, and any fees paid thereunder are deemed to have been extended, issued, and made in good faith. A full-text copy of the order and Plan of Reorganization dated June 30, 2020, is available at https://tinyurl.com/y942gcnu from PacerMonitor at no charge. Counsel to the Debtors: Joshua A. Sussberg, P.C. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212) 446-4900 E-mail: joshua.sussberg@kirkland.com - and - Chad J. Husnick, P.C. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Chicago, Illinois 60654 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 E-mail: chad.husnick@kirkland.com - and - AnnElyse Scarlett Gains KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 1301 Pennsylvania Avenue N.W. Washington, D.C. 20004 Telephone: (202) 389-5000 Facsimile: (202) 389-5200 E-mail: annelyse.gains@kirkland.com About Seabras 1 USA Seabras 1 Bermuda LLC and its wholly-owned subsidiary Seabras 1 USA LLC own a fiber optic cable system between New York USA and Sao Paulo, Brazil known as Seabras-1. Seabras-1 itself is fully operated by Seaborn Networks, a developer-owner-operator of submarine fiber optic cable systems. Seabras 1 Bermuda and Seabras 1 USA filed Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 19-14006) on Dec. 22, 2019. In the petitions signed by CEO Larry W. Schwartz, the Debtors were estimated to have $50 million to $100 million in assets and $100 million to $500 million in liabilities. The Debtors tapped Kirkland & Ellis LLP, Kirkland & Ellis International LLP and Bracewell LLP as legal counsel; FTI Consulting, Inc., as financial advisor; and Stretto as claims agent and administrative advisor. SILGAN HOLDINGS: Egan-Jones Ups Local Currency Unsec. Rating to BB- ------------------------------------------------------------------- Egan-Jones Ratings Company, on July 28, 2020, upgraded the local currency senior unsecured rating on debt issued by Silgan Holdings Inc. to BB- from B+. Headquartered in Stamford, Connecticut, Silgan Holdings Inc., and its subsidiaries manufacture consumer goods packaging products. SINTX TECHNOLOGIES: Inks Joint Venture Deal to Develop Face Masks ----------------------------------------------------------------- O2TODAY, an original equipment manufacturer company which develops and commercializes face masks for medical and non-medical applications, has entered into a joint development agreement with SINTX Technologies, Inc. The goal of this agreement is to develop a safe and effective consumer face mask with broad-spectrum antibacterial and antiviral activity, based on incorporating SINTX's unique silicon nitride powder into the mask filter and fabric. The successful development of such a product may help prevent the spread of respiratory diseases by catching and inactivating SARS-CoV-2 and other viruses and bacteria in the mask itself before they can enter into the human body. O2TODAY and SINTX Technologies intend to capitalize on recent and promising data demonstrating the potential of SINTX's silicon nitride powder to inactivate the SARS-CoV-2 virus that is responsible for the global COVID-19 pandemic. The study showing rapid inactivation of SARS-CoV-2 by SINTX's silicon nitride is the latest in a series of scientific papers showing similar activity of silicon nitride against a variety of bacteria and viral strains. O2TODAY and SINTX plan to jointly fund collaborative research and product development activities in Salt Lake City, Utah, with the input of external laboratories as well. Upon the joint development of an antimicrobial mask, the companies will enter a commercialization agreement under which O2TODAY will be the exclusive global distributor for face masks & replacement filters containing SINTX's silicon nitride. "We were attracted to the scientific evidence that SINTX has produced, attesting to the antimicrobial properties of silicon nitride, the underlying mechanisms of antimicrobial action, and the known safety of SINTX's silicon nitride as an FDA-cleared spinal implant," said Bruce Lorange, CEO of O2TODAY. "The antibacterial attributes of silicon nitride have been reproduced by investigations done independently of SINTX, and that adds to the credibility of SINTX's findings. Our initial focus will create products for the general public, with specific medical products following soon after." "With the outbreak of COVID-19, cloth masks and other face coverings have been widely adopted in response to a lack of supply of face masks with filters and certifications attesting to their effectiveness against viruses," said Lorange. "By increasing the manufacture of surgical and respirator style masks with premium US-sourced advanced ceramic materials, we aim to make effective masks more readily available within the US to help reduce the spread of virus transmission, and other airborne threats. The collaboration with SINTX is intended to develop and bring to market a much-needed product in the fight against COVID-19." Since 2015, O2TODAY has been an innovator in the design, manufacturing, and marketing of protective face wear that reduces exposure to airborne threats, from respiratory droplets and pathogens to air pollution. The company's products are distributed through airport and travel retailers, direct-to-consumer, and enterprise, and medical channels. The outbreak of COVID-19 has boosted the market demand for respiratory and surgical masks with overall shipments estimated to reach over 10 billion units by 2025 (*Source: Arizton Industry Report: Face Mask Market – Global Outlook and Forecast 2020-2025). To control the supply chain from raw material to finished goods, and to meet the demand for facemasks driven by COVID-19, O2TODAY has established a new production facility in Salt Lake City, close to SINTX’s manufacturing plant, to produce a range of products including surgical and N95 health care respirator masks as well as replacement filters for its line of reusable face masks. With current equipment and machinery, O2TODAY anticipates being able to produce up to 100,000 single-use masks or filters daily beginning Sept. 1, 2020, with the ability to rapidly scale to meet growing demand. "We are pleased to enter this joint development agreement with O2TODAY, toward developing a differentiated mask technology," said Dr. Sonny Bal, CEO, and president of SINTX Technologies. "The collaboration with O2TODAY is intended to directly apply our material science expertise toward new product development, and revenues - a very significant and exciting move for SINTX. We look forward to sharing more information on the testing, productization, and distribution of facemasks incorporating SINTX's silicon nitride in the coming months." 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. SLM CORP: Moody's Affirms Ba1 Issuer Rating, Outlook Stable ----------------------------------------------------------- Moody's Investors Service has affirmed the ratings of SLM Corporation and its bank subsidiary, Sallie Mae Bank, following the affirmation of the baa3 standalone baseline credit assessment of the bank. SLM's long-term senior unsecured debt is rated Ba1 and the bank subsidiary has a long-term deposit rating of Baa1. Sallie Mae Bank's Prime-2 short-term deposit rating and its Baa3/Prime-3 Counterparty Risk Ratings were also affirmed. The outlook of both SLM and Sallie Mae Bank is stable. While the ratings affirmation reflects Moody's unchanged assessment of Sally Mae Bank's standalone credit profile, the stable outlook reflects Moody's expectation that SLM's credit fundamentals will remain broadly unchanged over the next 12-18 months. Affirmations: Issuer: Sallie Mae Bank Adjusted Baseline Credit Assessment, Affirmed baa3 Baseline Credit Assessment, Affirmed baa3 ST Counterparty Risk Assessment, Affirmed P-2(cr) LT Counterparty Risk Assessment, Affirmed Baa2(cr) ST Counterparty Risk Rating (Local Currency), Affirmed P-3 LT Counterparty Risk Rating (Local Currency), Affirmed Baa3 ST Counterparty Risk Rating (Foreign Currency), Affirmed P-3 LT Counterparty Risk Rating (Foreign Currency), Affirmed Baa3 Issuer Rating, Affirmed Ba1, Stable ST Deposit Rating, Affirmed P-2 LT Deposit Rating, Affirmed Baa1, Stable Issuer: SLM Corporation Issuer Rating, Affirmed Ba1, Stable Pref. Shelf, Affirmed (P)Ba2 Senior Unsecured Shelf, Affirmed (P)Ba1 Pref. Stock Non-Cumulative Preferred Stock, Affirmed Ba3 (hyb) Senior Unsecured Regular Bond/Debenture, Affirmed Ba1, Stable Outlook Actions: Issuer: Sallie Mae Bank Outlook, Remains Stable Issuer: SLM Corporation Outlook, Remains Stable RATINGS RATIONALE The affirmation of Sally Mae Bank's baa3 BCA and of all ratings for both SLM and Sally Mae Bank reflects Moody's unchanged view of the bank's standalone credit profile, which remains well positioned three notches below the current a3 median BCA of Moody's US-rated regional banks. This is despite Moody's expectation that the rapidly deteriorating economic environment in the US (Aaa stable) will result in a material weakening over the next 12 to 18 months of the bank's asset quality and, in turn, profitability. The baa3 BCA incorporates the benefits to creditors from its good capitalization, which allows the bank to absorb unexpected losses, particularly during time of stress. The BCA also takes into consideration the risks to creditors stemming from SLM's elevated exposure to economic shocks as a result of its student loan concentration and the unsecured consumer loans that make up the portfolio, typically resulting in higher than average charge-offs compared to the more diversified loan portfolios of US regional bank peers, and high regulatory risk. SLM is the largest originator of private education loans in the US with a market share of more than 50%, despite its relatively small size in relation to its primary competitor Discover Financial Services (Baa3 stable). As of June 30, 2020, SLM had $30.4 billion of total assets and $21.5 billion of private education loans outstanding. With 93% of loans outstanding as of June 30, 2020, SLM's business is concentrated in the US private student loan market and is heavily reliant on net interest income, making it vulnerable to economic shocks, such as the present, as well as regulatory and legislative risks. Moody's believes that SLM's leading private student loan lending franchise drives its strong position as one of the most profitable Moody's-rated US banks with 2019 return on assets of 1.8% versus the median US rated bank of around 1.1%, over the same time period. SLM boasts solid capitalization, which provides a cushion for the years when profitability is affected by a recession. Moody's calculation of the bank's tangible common equity ratio was 10.9% and 10.7% as of December 31, 2019 and 2018, respectively. Due to the implementation of Current Expected Credit Losses accounting standard in 2020, along with the increase in loan loss reserves in Q1 2020, the bank's TCE ratio declined to 7.1% as of 31 March 2020. However, the bank's total loss absorbing capacity has remained consistent with TCE plus reserves of $3.44 billion as of Q1 2020 versus $3.37 billion as of year-end 2019. SLM's funding structure is weak relative to its rated peers because of its reliance on brokered deposits and savings accounts. SLM has among the highest combined reliance on brokered deposits and savings accounts among its US regional bank peers. Brokered deposits enable SLM to obtain funding with longer maturities that are better matched to the seven-year average life of the company's loan portfolio, but they are often less 'sticky' and therefore pose greater refinancing risk and higher cost than branch-based deposits or transaction accounts. Moody's assesses that as a student loan provider, SLM faces 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 private student loans with direct loans funded by the US government would be credit negative for private student loan lenders and servicers, particularly those concentrated in the market, such as SLM. While repayment at par would result in lenders not incurring credit losses on forgiven loans, a reduction in lenders' loan portfolios would deprive lenders of future net interest income and servicers of future servicing income. The stable outlook reflects Moody's assessment that SLM will maintain a credit profile compatible with the baa3 BCA of its bank subsidiary over the next 12-18 months despite asset quality and profitability pressure due to deteriorating economic conditions in the US. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the deteriorating economic environment and the uncertain duration, an upgrade is unlikely over the next 12-18 months. The BCA could be upgraded if the firm continues to achieve solid profitability and maintains solid capital levels and disciplined underwriting. In addition, the BCA could be upgraded if the company continues to improve its funding profile, increasing its reliance on direct deposits, thereby reducing its dependence on confidence-sensitive wholesale funding and brokered deposits. A higher BCA would likely lead to a ratings upgrade. The baa3 BCA could be downgraded if capitalization weakens materially, such as tangible common equity to risk weighted assets falling below and expected to remain below 6.0%. In addition, the BCA could be downgraded in the event that asset performance is weaker than Moody's currently expects, given the current economic environment, or if liquid resources decline materially, making the firm vulnerable to market shocks. A lower BCA would likely lead to a ratings downgrade. The principal methodology used in these ratings was Banks Methodology published in November 2019. SPIRIT AIRLINES: Egan-Jones Lowers Senior Unsecured Ratings to B- ----------------------------------------------------------------- Egan-Jones Ratings Company, on July 28, 2020, downgraded the foreign currency and local currency senior unsecured rating on debt issued by Spirit Airlines, Inc. to B- from B+. EJR also downgraded the ratings on commercial paper issued by the Company to B from A3. Headquartered in Miramar, Florida, Spirit Airlines, Inc. owns and operates airlines. STAGE STORES: A&G Accepting Bids on Distribution Center ------------------------------------------------------- In its capacity as real estate advisor for Stage Stores, Inc., A&G Real Estate Partners is now accepting bids on the retailer's Jacksonville, Texas distribution center and two other properties. The Houston-based chain filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in May 2020. A&G is marketing the fee interest for the 435,196-square-foot facility, located at 506 Beall Blvd. in the Cherokee County municipality. Situated on a 42.51-acre parcel that includes undeveloped land for expansion, the distribution center was built in 1985 and has undergone multiple rounds of modernization to accommodate brick-and-mortar and e-commerce fulfillment. "This strategically located, state-of-the-art property offers an excellent turnkey opportunity for retailers and other companies seeking to enhance their footprint for direct-to-consumer and/or brick-and-mortar fulfillment," said Mike Matlat, Senior Managing Director at Melville, N.Y.-based A&G. "The site is also highly attractive to investors looking to capitalize on the booming warehouse/distribution real estate market in this key Sunbelt state." The single-level, climate-controlled building includes a mezzanine, 32 dock doors, and clear heights ranging from 32 feet to 38 feet. The site provides ample space for trailer parking and staging (approximately 150 trailer spaces excluding the overflow area), 350 employee parking spaces, and includes undeveloped land for expansion. Located on the future I-69 route and off the I-20 corridor, Jacksonville draws from a skilled, working-age population of 130,000 within a one-hour drive. "The Jacksonville site is being offered on a turnkey basis but can also be repurposed to meet a buyer's specific requirements," said Matlat. "It comes equipped with a high-speed 'pouch' sortation system that is ideal for SKU-level order fulfillment, a hang sorter and a tilt sorter–both configured to handle over 500 drop locations, along with high-speed conveyors, extensive material handling equipment, and high-bay racking." The building supplied as many as 540 stores and processed 64 million merchandise units in 2019, representing a blend of apparel, shoes, home, and beauty products. The pouch sortation system handled upwards of 80,000 units each day during holiday peak. A&G is also offering two other properties owned by Stage Stores: an income producing industrial RTV (return to vendor) center in Jacksonville and a retail site in Logan, West Virginia. Located on 6.45 acres at 1020 Willowcreek Dr., the 125,232-square-foot RTV center is 27% occupied by a single tenant paying rent of $245,000 annually. The retail property is a freestanding, 24,332-square-foot, single-level building set on 0.28 acres at 321 Stratton St. in Logan. For further information on the three properties, contact: Mike Matlat, 631-465-9508, mike@agrep.com; or Jamie Cote, 312-203-6321, jcote@agrep.com. Additional information can be found at www.agrep.com About A&G Real Estate Partners A&G -- http://www.agrep.com/-- is a team of seasoned commercial real estate professionals and subject matter experts that delivers strategies designed to yield the highest possible value for clients' real estate. Key areas of expertise include real estate due diligence, valuations, dispositions, lease restructurings, acquisitions, structured real estate sales, and facilitation of growth opportunities. Utilizing its marketing knowledge, reputation and advanced technology, A&G has advised the nation's most prominent retailers and corporations in both healthy and distressed situations. The firm's team has achieved rent-reduction and occupancy-cost savings approaching $6 billion on behalf of clients in every real estate sector, while selling more than $12 billion of non-core properties and leases. Founded in 2012, A&G is headquartered in Melville, N.Y. and also has an office in Chicago. About Stage Stores Inc. Stage Stores, Inc. (SSI) and its affiliates -- http://www.stagestoresinc.com/-- are apparel, accessories, cosmetics, footwear, and home goods retailers that operate department stores under the Bealls, Goody's, Palais Royal, Peebles, and Stage brands and off-price stores under the Gordmans brand. Stage Stores operates approximately 700 stores across 42 states. Stage's department stores predominately serve small towns and rural communities, and its off-price stores are mostly located in mid-sized Midwest markets. Stage Stores, Inc. and affiliate Specialty Retailers, Inc., sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-32564) on May 10, 2020. The Company disclosed $1,713,713,000 of total assets and $1,010,210,000 of total debt as of Nov. 2, 2019. The Hon. David R. Jones is the case judge. The Debtors tapped Kirkland & Ellis LLP as bankruptcy counsel; Jackson Walker L.L.P. as local bankruptcy counsel; PJ Solomon, L.P., is investment banker; Berkeley Research Group, LLC as restructuring advisor; and A&G Realty as real estate consultant. Gordon Brothers Retail Partners, LLC, will manage the Company's inventory clearance sales. Kurtzman Carson Consultants LLC is the claims agent. STEREOTAXIS INC: Reports $2.26 Million Net Loss for Second Quarter ------------------------------------------------------------------ Stereotaxis, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a loss attributable to common stockholders of $2.26 million on $5.34 million of total revenue for the three months ended June 30, 2020, compared to a loss attributable to common stockholders of $1.78 million on $6.79 million of total revenue for the three months ended June 30, 2019. The decrease in revenue was primarily due to a 38% reduction in procedure volumes versus the prior year. Procedure volumes improved during the quarter with declines compared to last year of 57% in April, 44% in May, and 13% in June. The impact of this decline on overall revenue was cushioned by the stability of Stereotaxis' service revenue. Gross margin for the second quarter was $4.3 million, or 80% of revenue. Operating expenses in the quarter of $6.2 million were 13% lower than the prior year second quarter. The reduction in operating expenses was predominantly driven by timing of R&D projects and pandemic-related reductions in sales and marketing activities, partially offset by increased non-cash general and administrative expenses. Operating loss and net loss in the second quarter were ($1.9) million. Negative free cash flow for the quarter was ($1.2) million. For the six months ended June 30, 2020, the Company reported a loss attributable to common stockholders of $4.58 million on $11.10 million of total revenue compared to a loss attributable to common stockholders of $4.26 million on $13.81 million of total revenue for the same period in 2019. As of June 30, 2020, the Company had $57.05 million in total assets, $15.68 million in total liabilities, $5.68 million in convertible preferred stock, and $35.68 million in total stockholders' equity. At June 30, 2020, Stereotaxis had cash and cash equivalents of $44.0 million. "Stereotaxis responded to the challenges of COVID-19 with resilience, prudence and creativity. Despite a 21% year-over-year reduction in quarterly revenue caused by procedure declines, we have made significant progress in commercializing the Genesis RMN System, advancing strategic innovations, and protecting Stereotaxis' financial strength," said David Fischel, Chairman and CEO. "The world's first Genesis system was installed in July and has successfully treated patients. A second Genesis system is currently being installed. We continue to see significant interest in Genesis and have hosted 198 physicians and hospital administrators from 76 hospitals since April on TeleRobotic visits. Approximately 30% of these represent greenfield opportunities." "Stereotaxis is pioneering unique TeleRobotic connectivity solutions in electrophysiology and was pleased to host the Inaugural Symposium of the TeleRobotic Surgery Leadership Council. This adds an important new dimension to our operational capabilities and the value of robotics for patients, physicians and hospitals." "We finalized the design of Stereotaxis' advanced robotically-navigated magnetic ablation catheter, produced the first batch of catheters with a newly established manufacturing process, and are now testing, refining and validating that process. Meaningful progress has been made on a wave of additional innovations within electrophysiology and beyond." "We responded prudently to the financial impact of COVID-19 by reducing expenses in a fashion that does not harm organizational capabilities or slow progress. The financing announced during the quarter leaves Stereotaxis in the strongest financial position in its history and reinforces our commitment to invest in impactful innovation and commercial activities." Forward Looking Expectations Stereotaxis expects to recognize revenue on the sale of two Genesis systems in the third quarter, driving year-over-year growth for the quarter. The continued uncertain duration and scope of the COVID-19 pandemic makes it difficult to confidently estimate recurring revenue or the timing of additional system sales. Despite the uncertainty, Stereotaxis continues to experience significant interest in Genesis and expects a resurgence of system sales to existing and new hospital customers as the pandemic recedes. Cash utilization in the second half of the year is expected to be lower than in the first half of the year, and Stereotaxis anticipates ending 2020 with greater than $40 million cash and no debt. Stereotaxis' balance sheet allows it to reach profitability without the need for additional financings. A full-text copy of the Form 10-Q is available for free at: https://is.gd/GseT1h About Stereotaxis Based in St. Louis, Missouri, Stereotaxis, Inc. -- http://www.stereotaxis.com/-- is an innovative robotic technology company designed to enhance the treatment of arrhythmias and perform endovascular procedures. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and safety, improved lab efficiency and productivity, and enhanced integration of procedural information. Over 100 issued patents support the Stereotaxis platform. The core components of Stereotaxis' systems have received regulatory clearance in the United States, European Union, Japan, Canada, China, and elsewhere. Stereotaxis reported a loss attributable to common stockholders of $6.02 million for the year ended Dec. 31, 2019, compared to a loss attributable to common stockholders of $1.32 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $41.50 million in total assets, $14.22 million in total liabilities, $5.71 million in series A - convertible preferred stock, and $21.57 million in total stockholders' equity. The Company has sustained operating losses throughout its corporate history and expects that its 2020 expenses will exceed its 2020 gross margin. The Company expects to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing operations or expense reductions are in place. The Company's liquidity needs will be largely determined by the success of clinical adoption within the installed base of its robotic magnetic navigation system as well as by new placements of capital systems. The Company's plans for improving the liquidity conditions primarily include its ability to control the timing and spending of its operating expenses and raising additional funds through debt or equity financing, as disclosed in the Company's Annual Report for the year ended Dec. 31, 2019. STORAGE MEDIA: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Storage Media Group, Inc. 2244 Faraday Ave., #103 Carlsbad, CA 92008 Business Description: Storage Media Group, Inc. -- http://www.storagemediagroup.com-- is a re-seller of data storage media and imaging/ fax/copier supplies. Chapter 11 Petition Date: August 7, 2020 Court: United States Bankruptcy Court Southern District of California Case No.: 20-04025 Debtor's Counsel: Kelly Ann Tran, Esq. SMALL LAW PC 1350 Columbia Street, Suite 700 San Diego, CA 92101-8229 Tel: 619-430-4795 Email: kelly@smalllawcorp.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Ajit Kumar Chutke, authorized representative. A copy of the petition is available for free at PacerMonitor.com at: https://is.gd/nZVfwS SUNNY HILLS: Gets Court Approval to Hire DirtBrokers Inc. --------------------------------------------------------- Sunny Hills Aquatic Club received approval from the U.S. Bankruptcy Court for the Northern District of California to hire DirtBrokers, Inc. as its real estate broker. The firm will assist in the sale of Debtor's real property located at 2129 Youngs Valley Road, Walnut Creek, Calif. It will receive a 6 percent commission on the sale price, subject to a share agreement with a buyer's broker. DirtBroker does not have any interest adverse to Debtor's bankruptcy estate, according to court filings. The firm can be reached through: Ron Carter DirtBrokers Inc 1431 Oakland Blvd # 215 Walnut Creek, CA 94596 Phone: +1 925-279-2222 About Sunny Hills Aquatic Club Sunny Hills Aquatic Club sought protection under Chapter 11 of the Bankruptcy Code (N.D. Cal. Case No. 20-41077) on June 25, 2020, listing under $1 million in both assets and liabilities. Judge Charles Novack oversees the case. Tracy Green, Esq., at Wendel, Rosen, Black And Dean represents Debtor as legal counsel. TEXAS CAPITAL: Egan-Jones Cuts Foreign Currency Unsec. Rating to BB ------------------------------------------------------------------- Egan-Jones Ratings Company, on July 27, 2020, downgraded the foreign currency senior unsecured rating on debt issued by Texas Capital Bancshares, Inc. to BB from BBB+. Headquartered in Dallas, Texas, Texas Capital Bancshares, Inc. operates as the holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial and high net worth customers in Texas. THEE TREE HOUSE: Unsecureds to be Paid in Full in Plan ------------------------------------------------------ Thee Tree House, LLC, filed an amended disclosure statement describing its proposed Chapter 11 plan. The Plan provides for one class of general unsecured creditors, one class of unsecured claims relating to former insiders of the Debtor, and one class representing equity. General, non-insider, unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued to be paid in full. Former insider claims will receive approximately 15% of their allowed claims ($15,000 in total payments on an estimated $100,000 in allowed claims). This Plan also provides for the payment of administrative and priority claims in full. The Debtor will fund this Plan through the continued operation and cash flows of its restaurant business. A full-text copy of the Disclosure Statement dated June 24, 2020, is available at https://tinyurl.com/ycjx37cb from PacerMonitor.com at no charge. Attorneys for the Debtor: James W. Elliott McIntyre Thanasides Bringgold Elliott Grimaldi Guito & Matthews, P.A 500 E. Kennedy Blvd., Suite 200 Tampa, FL 33602 Tel: (813) 223-0000 Fax: (813) 899-6069 E-mail: james@mcintyrefirm.com About Thee Tree House Thee Tree House, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-11768) on Dec. 13, 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 $500,001 and $1 million. Judge Caryl E. Delano oversees the case. The Debtor is represented by McIntyre Thanasides Bringgold Elliott Grimaldi Guito & Matthews, P.A. THOMAS HEALTH: Unsecureds Owed $180 Million to Split $750,000 ------------------------------------------------------------- Thomas Health System, Inc., et al., submitted a Disclosure Statement for a Joint Chapter 11 Plan of Reorganization. As of Sept. 30, 2019, the Debtors' books and records showed $229,211,000 in assets, including $133,279,000 in property and equipment. The Debtors' total liabilities were $240,703,000. For the 12 months ending Sept. 30, 2019 ("FY 2019"), the Debtors recorded total revenues of $267,415,000, an increase of approximately 1.4% from $263,837,000 in fiscal year 2018 ("FY 2018") and $266,725,000 in fiscal year 2017 ("FY 2017"). The Debtor's operating expenses (excluding depreciation, amortization and interest expenses) for FY 2019 were $253,278,000, an increase of 1.1% from approximately $250,399,000 in FY 2018 and $255,790,000 in FY 2017. For the 12 months ended Sept. 30, 2019, the Debtors reported a net loss of approximately $6,588,425. Class 1 Series 2008 Bond Claims totaling $144,915,729 are impaired. The Bond Trustee will receive or apply, without set-off, recoupment, subordination or reduction, (i) cash from the Reorganized Debtors in the amount of $47 million on the Effective Date as an Allowed Secured Claim, (ii) the Bond Deficiency Claims, which are Allowed General Unsecured Claims, plus (iii) the Indenture Funds. Class 4 Convenience Claims estimated at $50,000 will receive cash in an amount equal to the lesser of (A) $500 and (B) the allowed amount of such holder's Convenience Claim. Class 5 General Unsecured Claims totaling $179,840,000 will receive a pro rata share of cash in the amount of $750,000, on or as soon as reasonably practicable after the later of: (i) 180 days after the Effective Date and (ii) the date that is 30 days after the date such General Unsecured Claim is allowed. All cash consideration necessary for the Reorganized Debtors to make payments or distributions pursuant hereto will be obtained from Cash on hand of the Debtors or Reorganized Debtors. A full-text copy of the Disclosure Statement dated June 24, 2020, is available at https://tinyurl.com/ybw6ylpw from PacerMonitor.com at no charge. Counsel to the Debtors: Michael J. Roeschenthaler WHITEFORD TAYLOR & PRESTON LLP 200 First Avenue, Third Floor Pittsburgh, PA 15222 Tel: (412) 618-5601 Tel. E-mail: mroeschenthaler@wtplaw.com - and - Brandy M. Rapp 10 S. Jefferson Street, Suite 1110 Roanoke, Virginia 24011 Tel: (540) 759-3577 E-mail: brapp@wtplaw.com Local Counsel to the Debtors: Jared M. Tully FROST BROWN TODD, LLC 500 Virginia Street East, Suite 1100 Charleston, WV 25301 Tel: 304-345-0111 E-mail: jtully@fbtlaw.com - and - Ronald E. Gold Douglas L. Lutz 3300 Great American Tower 301 East Fourth Street Cincinnati, Ohio 45202 Tel: 513-651-6800 E-mail: rgold@fbtlaw.com dlutz@fbtlaw.com About Thomas Health System Thomas Health System, Inc., is a non-stock, non-profit corporation incorporated under the laws of the State of West Virginia. Formed in 2006, Thomas Health System is the consolidated parent entity and holding company whose primary function is to serve as the controlling body of the affiliated debtors. Thomas Health System and its affiliated debtors collectively form a 391-bed hospital system that employs nearly 1,700 individuals and an estimated 250 clinicians. Thomas Health System sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Lead Case No. 20-20007) on Jan. 10, 2020. At the time of the filing, Thomas Health System had estimated assets of between $1 million and $10 million and liabilities of between $100 million and $500 million. Judge Frank W. Volk oversees the case. The Debtors tapped Whiteford, Taylor & Preston, LLP, as bankruptcy counsel; Frost Brown Todd LLC as local counsel; Force Ten Partners, LLC, as financial advisor; Splic Capital Advisors, LLC and Solic Capital, LLC as investment banker; and Omni Management Group as claims, notice and solicitation agent. TNP SPRING: Seeks to Hire Shulman Bastian as Counsel ---------------------------------------------------- TNP Spring Gate Plaza, LLC, seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ Shulman Bastian Friedman & Bui LLP, counsel to the Debtor. TNP Spring requires Shulman Bastian to: a. advise the Debtor with respect to its rights, powers, duties and obligations as a debtor in possession in the administration of this case, the management of its business affairs and the management of its property; b. advise and assist the Debtor with respect to compliance with the requirements of the Office of the United States Trustee; c. advise the Debtor regarding matters of bankruptcy law, including the rights and remedies of the Debtor with respect to its assets and with respect to the claims of creditors; d. represent the Debtor in any proceedings or hearings in the Bankruptcy Court related to bankruptcy law issues; e. conduct examinations of witnesses, claimants, or adverse parties and to prepare and assist in the preparation of reports, accounts and pleadings related to the Debtor's Chapter 11 case; f. advise the Debtor regarding its legal rights and responsibilities under the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure; g. assist the Debtor with respect to selling the real property located at 1650 Spring Gate Lane, Las Vegas, Nevada (the "Property"), including, if necessary, the employment of a broker and seeking court approval of the sale of the Property; and h. perform any and all other legal services incident and necessary as the Debtor may require of the Firm in connection with its Chapter 11 case. Shulman Bastian will be paid at these hourly rates: Attorneys $275 to $675 Of Counsels $595 to $675 Paralegals $250 to $300 Law Clerks $150 Prior to the Petition Date, on July 9, 2020, Shulman Bastian received a retainer of $50,000. Prior to the commencement of the bankruptcy case, Shulman Bastian incurred total fees of $10,160.50 and costs of $1,717 filing fee, leaving the balance held in trust in the amount of $38,122.50. Shulman Bastian will also be reimbursed for reasonable out-of-pocket expenses incurred. Leonard M. Shulman, partner of Shulman Bastian Friedman & Bui LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their/its estates. Shulman Bastian can be reached at: Leonard M. Shulman, Esq. SHULMAN BASTIAN FRIEDMAN & BUI LLP 100 Spectrum Center Drive, Suite 600 Irvine, CA 92618 Tel: (949) 340-3400 Fax: (949) 340-3000 E-mail: LShulman@shulmanbastian.com About TNP Spring Gate Plaza TNP Spring Gate Plaza, LLC, based in Irvine, CA, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 20-11963) on July 10, 2020. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in liabilities. The petition was signed by Anthony W. Thompson, officer of managing member of TNP Spring Gate Plaza, LLC. The Hon. Scott C. Clarkson presides over the case. SHULMAN BASTIAN FRIEDMAN & BUI LLP, serves as bankruptcy counsel to the Debtor. TPT GLOBAL: QuikLAB Gets Certificate of Use From Miami County ------------------------------------------------------------- TPT Global Tech, Inc., reports that its subsidiary TPT MedTech's Mobile Covid 19 Turnkey Rapid Test Lab "QuikLAB" received approval from Miami Dade County Zoning to start operations in Miami, Florida at the Dadeland Mall located 7209 N. Kendall Dr. The Miami County zoning office issued the Certificate of Use Friday, July 31, 2020. The company's QuikLAB Use Case utilizes and showcases all of TPT Global Tech's technology platform strengths (Telecom, Media, SaaS, Medical and Smartphone) in a single business model pushing, what TPT Global Tech believes, to the forefront in the fight against Covid 19 and beyond. At the same time the company has positioned itself to deliver such an innovative testing and monitoring Healthcare and Telemedicine solutions to Companies, Government Agencies and the general public domestically and internationally. The company also believes this unique product set them apart from all the rest as we move deeper into this global pandemic while at the same time offering a day to day rapid testing solution to individuals. "Our Team in Miami did a great job with working with the Miami Dade County Zoning group and we look forward to starting operations in Miami very soon now that the zoning issues have been completed," said Stephen Thomas CEO. About TPT Global Tech TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is a Technology/Telecommunications Media Content Hub for Domestic and International syndication and also provides technology solutions to businesses domestically and worldwide. TPT Global offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS) and carrier-grade performance and support for businesses over its private IP MPLS fiber and wireless network in the United States. TPT's cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. TPT's also operates as a Master Distributor for Nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cellphone services, Mobile phones Cellphone Accessories and Global Roaming Cellphones. TPT Global reported a net loss of $14.03 million for the year ended Dec. 31, 2019, compared to a net loss of $5.38 million for the year ended Dec. 31, 2018. As of March 31, 2020, TPT Global had $15.54 million in total assets, $38.44 million in total liabilities, and a total stockholders' deficit of $22.91 million. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 14, 2020 citing that the Company has suffered recurring losses from operations and has a net capital deficiency which raise substantial doubt about its ability to continue as a going concern. TRIUMPH GROUP: Incurs $277.3 Million Net Loss in First Quarter -------------------------------------------------------------- Triumph Group, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q, disclosing a net loss of $277.3 million on $495.07 million of net sales for the three months ended June 30, 2020, compared to net income of $18.09 million on $730.23 million of net sales for the three months ended June 30, 2019. As of June 30, 2020, the Company had $2.26 billion in total assets, $789.36 million in total current liabilities, $1.55 billion in long-term debt (less current portion), $643.25 million in accrued pension and other postretirement benefits, $7.48 million in deferred income taxes, $316.53 million in other noncurrent liabilities, and a total stockholders' deficit of $1.04 billion. "For the first quarter of our fiscal year, organic revenue decreased by 29% due primarily to expected declines in Aerospace Structures associated with planned reductions from our portfolio transformation and the COVID-19 pandemic. Systems & Support gross margins were in line with the prior year, benefitting from increased military volumes, improved operational efficiencies and cost reduction initiatives," stated Daniel J. Crowley, Triumph's president and chief executive officer. We continued executing our plan to exit legacy programs in Aerospace Structures with the recent announcements of the sales of our G650 wing kitting and engineering services program to Gulfstream and of our two Composite structures factories to Arlington Capital Partners. These transactions will benefit Triumph in fiscal 2021 and beyond." Mr. Crowley continued, "Our total cash usage for the first quarter was largely associated with working capital expansion, yet contained by the actions we implemented early in the quarter to conserve cash. We expect our cash use to slow in the second quarter and recover in the second half as we exit the last of our cash burning programs and begin to generate positive free cash flow. We are continuing to identify further cost reduction actions to enhance our liquidity position and ensure financial flexibility in the current operating environment while supporting the needs of our customers." Mr. Crowley concluded, "The steps we took this quarter build on our momentum and drive improved profitability and cash flow to become a more predictable and diverse business. As we look out to the rest of the year, Triumph remains focused on protecting the health and safety of our people, conserving our cash and partnering with our customers to ensure we are best positioned for recovery for the benefit of all our stakeholders." After accounting for the impact of the divestitures, sales for the first quarter of fiscal 2021 were down 29% organically from the comparable prior year period. The decline was driven by planned reductions on sunsetting and transitioned programs, impacts of the COVID-19 pandemic and resulting production rate decreases primarily on commercial programs, partially offset by increases in military programs. First quarter operating loss of $252.4 million included a $252.4 million impairment charge of the legacy Aerospace Structures long-lived assets, and $15.4 million of restructuring costs associated with reductions in work force. Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was $2.7 billion, down compared to the prior year period and on a sequential basis due to sunsetting programs and recent production rate reductions, but partially offset by military program increases in Systems & Support. For the first quarter of fiscal 2021, cash flow used in operations was $(197.5) million, reflecting increasing working capital and liquidation of approximately $10.0 million in prior period advances against current period deliveries. Outlook Based on anticipated aircraft production rates and MRO demand, including the impacts of pending program exits and no additional extended shut-down of operations due to the pandemic, the Company expects that net sales for fiscal year 2021 will be approximately $1.8 to $1.9 billion. The Company anticipates that the trends in cash used in operations that were experienced in the first quarter of fiscal 2021 to continue, but to a lesser degree in the second quarter, and expects it to recover somewhat in the second half of the fiscal year. Therefore, the Company expects cash used in operations and free cash use to be moderately higher for the full fiscal year. The Company's outlook excludes the impact of the recent announcements of the sales of the Company's G650 program and its Composite Structures factories and any potential future divestitures. A full-text copy of the Form 10-Q is available for free at: https://is.gd/2aZjkd About Triumph Headquartered in Berwyn, Pennsylvania, Triumph Group, Inc. -- http://www.triumphgroup.com-- designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators. Triumph Group reported a net loss of $28.13 million for the year ended March 31, 2020, a net loss of $321.76 million for the year ended March 31, 2019, and a net loss of $425.39 million for the year ended March 31, 2018. * * * As reported by the TCR on Aug. 6, 2020, Moody's Investors Service downgraded its ratings for Triumph Group, Inc., including the company's corporate family rating (CFR, to Caa3 from Caa2) and probability of default rating (to Caa3-PD from Caa2-PD). "The downgrades reflect its assertion of rising default risk over the next few years given the company's deemed unsustainable leveraged capital structure and the multi-year recovery of the aerospace industry as anticipated," says Eoin Roche, Moody's vice president and senior analyst covering Triumph. In June 2020, S&P Global Ratings lowered its issuer credit rating on Triumph Group Inc. to 'CCC+' from 'B-'. TRIUMPH GROUP: Prices $700M Offering of Senior Secured Notes ------------------------------------------------------------ Triumph Group, Inc. has priced $700.0 million aggregate principal amount of its 8.875% senior secured first lien notes due 2024. The Notes are guaranteed by the same subsidiaries that guaranty certain of Triumph's other indebtedness, including its (i) 5.250% Senior Notes due 2022, (ii) 6.250% Senior Secured Notes due 2024 and (iii) 7.750% Senior Notes due 2025. The Notes and the Guarantees are secured, subject to permitted liens, by first-priority liens on substantially all of the Company's and the Guarantors' assets, including certain of the Company's real property. The collateral also secures the 2024 Notes on a second lien basis. The offering of the Notes is expected to close on Aug. 17, 2020, subject to customary closing conditions. The Company intends to use the net proceeds from the Notes Offering to repay the loans and other amounts outstanding under and terminate its revolving credit facility and to cash collateralize the letters of credit issued thereunder, to pay accrued interest, fees and expenses, and to increase its available cash for general corporate purposes. The Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers, as defined in, and in reliance on Rule 144A under the Securities Act of 1933, as amended and to non-U.S. persons in offshore transactions outside the United States in reliance on Regulation S under the Securities Act. Neither the Notes nor the Guarantees are registered under the Securities Act or any other securities laws of any jurisdiction and will not have the benefit of any exchange offer or other registration rights. The Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. About Triumph Headquartered in Berwyn, Pennsylvania, Triumph Group, Inc. -- http://www.triumphgroup.com-- designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators. Triumph Group reported a net loss of $28.13 million for the year ended March 31, 2020, a net loss of $321.76 million for the year ended March 31, 2019, and a net loss of $425.39 million for the year ended March 31, 2018. As of June 30, 2020, the Company had $2.26 billion in total assets, $789.36 million in total current liabilities, $1.55 billion in long-term debt (less current portion), $643.25 million in accrued pension and other postretirement benefits, $7.48 million in deferred income taxes, $316.53 million in other noncurrent liabilities, and a total stockholders' deficit of $1.04 billion. * * * As reported by the TCR on Aug. 6, 2020, Moody's Investors Service downgraded its ratings for Triumph Group, Inc., including the company's corporate family rating (CFR, to Caa3 from Caa2) and probability of default rating (to Caa3-PD from Caa2-PD). "The downgrades reflect its assertion of rising default risk over the next few years given the company's deemed unsustainable leveraged capital structure and the multi-year recovery of the aerospace industry as anticipated," says Eoin Roche, Moody's vice president and senior analyst covering Triumph. In June 2020, S&P Global Ratings lowered its issuer credit rating on Triumph Group Inc. to 'CCC+' from 'B-'. TUESDAY MORNING: A&G Accepting Bids on Leasehold Interest --------------------------------------------------------- A&G Real Estate Partners is now accepting bids on the leasehold interest for Tuesday Morning Corporation's Phoenix distribution center in connection with its role as real estate advisor in the retailer's Chapter 11 bankruptcy reorganization case. The 593,600-square-foot facility is located on a 36.73-acre site in southwest Phoenix's Liberty Logistics Center I, 563 South 63rd Ave. Built in 2013, the divisible cross dock building is LEED Certified and rail capable. "Strategically located just two miles from I-10, this facility served 197 Tuesday Morning stores in 20 states," noted A&G Senior Managing Director Jamie Cote. "The highly secure, gated site offers easy access to multiple roadways and numerous nearby amenities. The leasehold interest is priced under market, providing users or investors an opportunity to capitalize on this opportunity." The single-level structure offers 32-foot clear height, 520-foot warehouse depth, 200-foot fully secure concrete truck courts, 50-foot by 52-foot column spacing, 60-foot loading bays, 108 dock doors, four grade-level doors and an ESFR sprinkler system. The site also includes 243 trailer stalls and 356 automobile stalls. For further information on the site, contact: Jamie Cote, 312-203-6321, jcote@agrep.com or Mike Matlat, 631-465-9508, mike@agrep.com. Additional information can be found at www.agrep.com About A&G Real Estate Partners A&G -- http://www.agrep.com/-- is a team of seasoned commercial real estate professionals and subject matter experts that delivers strategies designed to yield the highest possible value for clients' real estate. Key areas of expertise include real estate due diligence, valuations, dispositions, lease restructurings, acquisitions, structured real estate sales, and facilitation of growth opportunities. Utilizing its marketing knowledge, reputation and advanced technology, A&G has advised the nation's most prominent retailers and corporations in both healthy and distressed situations. The firm's team has achieved rent-reduction and occupancy-cost savings approaching $6 billion on behalf of clients in every real estate sector, while selling more than $12 billion of non-core properties and leases. Founded in 2012, A&G is headquartered in Melville, N.Y. and also has an office in Chicago. About Tuesday Morning Corp. Tuesday Morning Corporation, together with its subsidiaries, is a closeout retailer of upscale home furnishings, housewares, gifts, and related items. It operates under the trade name "Tuesday Morning" and is one of the original "off-price" retailers specializing in providing unique home and lifestyle goods at bargain values. Based in Dallas, Tuesday Morning operated 705 stores in 40 states as of Jan. 1, 2020. For more information, visit http://www.tuesdaymorning.com/ On May 27, 2020, Tuesday Morning and six affiliates sought Chapter 11 protection (Bankr. N.D. Tex. Lead Case No. 20-31476). Tuesday Morning disclosed total assets of $92 million and total liabilities of $88.35 million as of April 30, 2020. The Hon. Harlin Dewayne Hale is the case judge. The Debtors tapped Haynes and Boone, LLP as general bankruptcy counsel; Alixpartners LLP as financial advisor; Stifel, Nicolaus & Co., Inc. as investment banker; A&G Realty Partners, LLC as real estate consultant; and Great American Group, LLC as liquidation consultant. Epiq Corporate Restructuring, LLC is the claims and noticing agent. TWITTER INC: Egan-Jones Lowers Sr. Unsecured Debt Ratings to B+ --------------------------------------------------------------- Egan-Jones Ratings Company, on July 29, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Twitter, Incorporated to B+ from BB-. Headquartered in San Francisco, California, Twitter, Inc. provides online social networking and microblogging service. UMPQUA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to BB+ ------------------------------------------------------------------ Egan-Jones Ratings Company, on July 27, 2020, downgraded the foreign currency senior unsecured ratings on debt issued by Umpqua Holdings Corporation to BB+ from BBB-. Headquartered in Portland, Oregon, Umpqua Holdings Corporation is the holding company for Umpqua Bank, an Oregon state-chartered bank. UNITED RENTALS: S&P Rates $1.1BB Senior Unsecured Notes 'BB-' ------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '5' recovery rating to United Rentals (North America) Inc.'s (URNA) proposed $1.1 billion senior unsecured notes due in 2031. The '5' recovery rating indicates its expectation for modest (10%-30%; rounded estimate: 25%) recovery in the event of a payment default. The company plans to use the proceeds to redeem its $1.1 billion 6.5% senior unsecured notes due in 2026. S&P views the transaction as leverage neutral. URNA is a subsidiary of Stamford, Conn.-based equipment rental company United Rentals Inc. (URI), which, with URNA's current and future domestic subsidiaries (subject to limited exceptions), guarantees the notes. S&P's 'BB' issuer credit ratings and stable outlooks on both URI and URNA are unchanged. S&P's rating incorporates the company's exposure to highly cyclical markets, and it believes the current downturn in demand could cause the company's adjusted debt to EBITDA to rise to about 3x in 2020 from 2.6x in 2019, though visibility remains low. This level of leverage is in line with S&P's expectations for credit measures the company would typically exhibit in a cyclical downturn, and S&P expects debt to EBITDA to improve to the 2x-3x area during stable market conditions. S&P expects the ongoing shelter-in-place orders and economic recession across the U.S. to result in materially weaker demand and productivity of URI's rental fleet with material top line and operating cash flow pressure over the next 12 months. Still, S&P expects the company to significantly reduce capital expenditures and maintain its pause in share repurchases and acquisition spending to enable URI to generate adequate free cash flows this year. S&P also believes the company's cash funds from operations, along with more than $3 billion in combined cash and asset-based lending (ABL) facility availability as of June 30, 2020 (pro forma for the current refinancing), provide it with liquidity to comfortably fund its operating and financial needs over the next 12 months. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P's simulated default scenario contemplates an unexpected and drastic downturn in the nonresidential construction industry that severely strains the company's equipment usage, rental rates, revenue, and cash flow. -- Although S&P believes URI would likely reorganize after a default, the rating agency uses a discrete asset value (DAV) approach to analyze recovery prospects for most general equipment rental providers. S&P believes this method provides a conservative estimate of the likely value available to creditors, but realization rates could be lower than the rating agency assumes if a large amount of equipment floods the market. -- S&P's DAV approach starts with the net book value of the company's assets as of June 30, 2019. It assumes balance sheet accounts are partially diluted to reflect the estimated loss of appraised value through additional depreciation or expected contraction in working capital assets in the period leading up to the hypothetical default. S&P then applies realization rates to the assets, reflecting the friction of selling or discounts potential buyers or restructurers would apply in distressed circumstances. -- S&P assumes realization rates of 75% for rental equipment, 80% for unsold accounts receivable (the rating agency excludes the assets and liabilities related to URI's accounts receivable special purpose entity), 65% for inventory, and 40% for other property and nonrental equipment. Simulated default assumptions -- Simulated year of default: 2025 -- Jurisdiction: U.S. -- ABL facility: 60% drawn at default Simplified waterfall -- Gross enterprise value: $6.2 billion -- Net enterprise value (after 5% administrative expenses): $5.9 billion -- Collateral/noncollateral valuation split: 91%/9% -- Collateral value available to ABL and first-lien lenders: $5.4 billion -- ABL estimate (60% utilization): $2.25 billion -- Recovery expectations: not applicable (unrated) -- First-lien secured term loan: $974 million -- Recovery expectations: 90%-100% (rounded estimate: 95%) -- Collateral value available to secured noteholders: $2.2 billion -- Secured second-lien notes: $765 million -- Recovery expectations: 90%-100% (rounded estimate: 95%) -- Total value available to unsecured claims: $1.94 billion -- Recovery expectations: 10%-30% (rounded estimate: 25%) All debt amounts above include six months of prepetition interest. VERITY HEALTH: Gets Court OK to Solicit Votes on Liquidation Plan ----------------------------------------------------------------- Alex Wolf, writing for Bloomberg News, reports that Verity Health System of California Inc. was approved to solicit creditor votes on its bankruptcy liquidation plan after it updated plan materials with information on ongoing legal matters. The California hospital operator is poised for a Chapter 11 plan confirmation hearing, with the authorization from Judge Ernesto Robles of the U.S. Bankruptcy Court for the Central District of California to circulate the plan. Judge Robles said in a written approval that a hearing is unnecessary because the company resolved all outstanding objections over plan disclosures through a number of revisions. About Verity Health System Verity Health System -- https://www.verity.org/ -- operates as a non-profit health care system in the state of California, with approximately 1,680 inpatient beds, six active emergency rooms, a trauma center, and a host of medical specialties, including tertiary and quaternary care. Verity's two Southern California hospitals are St. Francis Medical Center in Lynwood and St. Vincent Medical Center in Los Angeles. In Northern California, O'Connor Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton Medical Center in Daly City and Seton Coastside in Moss Beach are part of Verity Health. Verity Health also includes Verity Medical Foundation. With more than 100 primary care and specialty physicians, VMF offers medical, surgical and related healthcare services for people of all ages at community-based, multi-specialty clinics conveniently located in areas served by the Verity hospitals. Verity Health System was created in a transaction approved by California Attorney General Kamala Harris and completed in December 2015. Verity Health System of California, Inc., and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 18-20151) on Aug. 31, 2018. In the petition signed by CEO Richard Adcock, Verity Health estimated assets of $500 million to $1 billion and liabilities of $500 million to $1 billion. Judge Ernest M. Robles oversees the cases. The Debtors tapped Dentons US LLP as their bankruptcy counsel; Berkeley Research Group, LLC, as financial advisor; Cain Brothers as investment banker; and Kurtzman Carson Consultants as claims agent. The official committee of unsecured creditors formed in the case retained Milbank, Tweed, Hadley & McCloy LLP as counsel. WAVE COMPUTING: Creditors' Committee Members Disclose Claims ------------------------------------------------------------ In the Chapter 11 cases of Wave Computing, Inc., et al., the law firm of Hogan Lovells US LLP submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose that it is representing the Official Committee of Unsecured Creditors of Wave Computing, Inc., et al. On May 18, 2020, the Office of the United States Trustee for the Northern District of California filed its Notice of Appointment of Official Committee of Unsecured Creditors [ECF No. 114]. As of Aug. 5, 2020, each Committee and their disclosable economic interests are: Avnet, Inc. 2211 S. 47th Street Phoenix, AZ 85034 * Claims against Wave Computing, Inc. in the amount of $1,177,125.84 representing the total invoicing for electronic components billed to the Wave Computing, Inc. and shipped to the chosen contract manufacturer at the Wave Computing, Inc.'s direction. Ensilica India Pvt Ltd. #2064, 2nd Floor, Siri Iris, 24th Main 1st Sector, Hsr Layout Bengaluru 560102, India * Claim against Wave Computing, Inc. in the amount of $391,468 on account of prepetition engineering services provided from September 2019 to February 2020. PFIL North America Inc. 303 Twin Dolphin Drive, Ste. 600 Redwood City, CA 94065 * Claim in the amount of approximately $2,030,244.55 arising from a Convertible Promissory Note issued by Wave Computing, Inc. to PFIL North America Inc. on December 11, 2019, in line with the Note Purchase Agreement executed on December 11, 2019, in exchange for value received by the repurchase of Series E Preferred Stock previously issued by Wave Computing, Inc. to PFIL North America, Inc. as documented by the Stock Repurchase Agreement dated on December 11, 2019. * Claim of 1,905,888 shares of Series D Preferred Stock of Wave Computing, Inc., issued to PFIL North America, Inc. on July 20, 2017. * Claim of 266,667 shares of Common Stock of Wave Computing, Inc., purchased by PFIL North America, Inc. from a former employee of Wave on December 26, 2017. Sintegra, Inc. 2328 Walsh Ave. Suite E Santa Clara, CA 95051 * Claim against Wave Computing, Inc. in the amount of $85,120 arising under the Consulting Agreement executed on 10/8/2018, with the Amendment-4 dated 8/12/2019 by and between Wave Computing, Inc. and Sintegra Inc, for the provision of professional services by way of staff augmentation. Synopsys, Inc. 690 E. Middlefield Rd. Mountain View, CA 94043-4010 * Claim against Wave Computing, Inc. in the amount of $7,541,627.00 on account of prepetition goods and services sold to Wave Computing, Inc. pursuant to an End User License and Maintenance Agreement and Purchase Agreements between Synopsys Inc. and Wave Computing, Inc. Counsel for the Official Committee of Unsecured Creditors of Wave Computing, Inc., et al. can be reached at: HOGAN LOVELLS US LLP Richard L. Wynne, Esq. David P. Simonds, Esq. Edward J. McNeilly, Esq. 1999 Avenue of the Stars, Suite 1400 Los Angeles, CA 90067 Telephone: (310) 785-4600 Facsimile: (310) 785-4601 Email: richard.wynne@hoganlovells.com david.simonds@hoganlovells.com edward.mcneilly@hoganlovells.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/1JvbYq About Wave Computing Wave Computing, Inc. is a Santa Clara, Calif.-based company that revolutionizes artificial intelligence (AI) with its dataflow-based solutions. For more information, visit https://wavecomp.ai Wave Computing and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Lead Case No. 20-50682) on April 27, 2020. The petitions were signed by Lawrence R. Perkins, chief restructuring officer. At the time of the filing, the Debtors had estimated assets of between $1 million and $10 million and liabilities of between $50 million and $100 million. Judge Elaine M. Hammond oversees the cases. THe Debtors are represented by Sidley Austin, LLP. WEINSTEIN COMPANY: Unsecureds to Receive Less Than 2% in Plan ------------------------------------------------------------- The Weinstein Company Holdings LLC, and its debtor-affiliates and the Official Committee of Unsecured Creditors filed with the U.S. Bankruptcy Court for the District of Delaware a disclosure statement with respect to the Joint Chapter 11 Plan of Liquidation dated June 30, 2020. The Debtors and the Committee jointly propose the Plan for the resolution and satisfaction of all Claims against and Interests in the Debtors. The Plan contemplates, first and foremost, the comprehensive settlement of various Claims, including those at issue in a multitude of litigations pending in various courts between and among sexual misconduct claimants, the Debtors, Harvey Weinstein, Robert Weinstein, other former members of the board of representatives of and/or directors and officers of the Debtors, the Office of the New York Attorney General (the "NYOAG"), and numerous insurance companies that issued directors and officers and general liability insurance policies to the Debtors prepetition. The comprehensive global settlement embodied in the Plan, together with the Global Settlement Agreement, Class Action Settlement Agreement, and Individual Plaintiffs' Settlement Agreement (collectively, the "Settlement Agreements" and the settlements collectively embodied therein, the "Settlement"), resolves, releases, discharges, and enjoins the universe of Tort Claims against the Released Parties. To effectuate the foregoing, the Plan provides for, inter alia, the establishment of (i) a Class Action Settlement Fund for the payment and satisfaction of the Class Action Sexual Misconduct Claims (Class 4), (ii) an Individual Plaintiffs' Settlement Fund for the payment and satisfaction of the Individual Sexual Misconduct Claims (Class 5), (iii) a Segregated Defense Fund for payment and satisfaction of the Non-Settling Sexual Misconduct Claims against the Released Parties, except for payment of Non-Settling Sexual Misconduct Claims against Harvey Weinstein if the Non-Settling Plaintiffs vote to reject the Plan (Class 6), and (iv) a Liquidation Trust for the payment and satisfaction of all Claims (except Claims in Classes 4, 5, and 6). The Plan provides for the treatment of Claims against and Interests in the Debtors and is funded by the proceeds of liquidation of the Debtors’ assets and contributions under the Global Settlement Agreement. The Settlement resolves, releases, discharges, and enjoins the universe of Tort Claims related directly or indirectly to the alleged misconduct of Harvey Weinstein, including, but not limited to the Sexual Misconduct Claims. As consideration for the Settlement, the Insurance Companies, on behalf of the Released Parties, are paying the aggregate amount of $46,786,000 (the "Settlement Amount"). Class 4 Class Action Sexual Misconduct Claims are impaired and entitled to vote the Class Action Proof of Claim; may obtain cash recovery (if any) from the Class Action Settlement Fund. Class 5 Individual Sexual Misconduct Claims are impaired and entitled to vote. Each Individual Plaintiff will receive the amount specified in the Individual Plaintiffs' Settlement Agreement. Class 6 Non-Settling Sexual Misconduct Claims that vote to accept the Plan shall receive $150,000 in full satisfaction, discharge, and release of any and all Non-Settling Sexual Misconduct Claims. A Holder of a Non-Settling Sexual Misconduct Claim that rejects the Plan shall receive $25,000 in full satisfaction, discharge, and release of all Non-Settling Sexual Misconduct Claims, except such claims against Harvey Weinstein. Class 7 General Unsecured Claims are impaired and entitled to vote. Holders of Allowed General Unsecured Claim are expected to receive less than a 2% recovery in cash on account of such Allowed General Unsecured Claims. Class 9 Interests are impaired, deemed to reject, and not entitled to vote. A full-text copy of the Disclosure Statement dated June 30, 2020, is available at https://tinyurl.com/yd5mwwss from PacerMonitor at no charge. Counsel for the Debtors: RICHARDS, LAYTON & FINGER, P.A. Mark D. Collins Paul N. Heath Zachary I. Shapiro Brett M. Haywood David T. Queroli One Rodney Square 920 North King Street Wilmington, DE 19801 - and - CRAVATH, SWAINE & MOORE LLP Paul H. Zumbro George E. Zobitz Lauren A. Moskowitz Worldwide Plaza 825 Eighth Avenue New York, NY 10019 - and - PACHULSKI STANG ZIEHL & JONES LLP James I. Stang Robert J. Feinstein Debra I. Grassgreen Jason H. Rosell Colin R. Robinson 919 North Market Street, 17th Floor Wilmington, DE 19899 (Courier 19801) About The Weinstein Company Holdings The Weinstein Company Holdings LLC and 54 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 18-10601) on March 19, 2018 after reaching a deal to sell all assets to Lantern Asset Management for $310 million. The Weinstein Company Holdings estimated $500 million to $1 billion in assets and $500 million to $1 billion in liabilities. The Hon. Mary F. Walrath is the case judge. Cravath, Swaine & Moore LLP is the Debtors' bankruptcy counsel, with the engagement led by Paul H. Zumbro, George E. Zobitz, and Karin A. DeMasi, in New York. Richards, Layton & Finger, P.A., is the local counsel, with the engagement headed by Mark D. Collins, Paul N. Heath, Zachary I. Shapiro, Brett M. Haywood, and David T. Queroli, in Wilmington, Delaware. Bernstein Litowitz Berger & Grossmann, LLP, as special litigation counsel. The Debtors also tapped FTI Consulting, Inc., as restructuring advisor; Moelis & Company LLC as investment banker; and Epiq Bankruptcy Solutions, LLC as claims and noticing agent. The Office of the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors on March 28, 2018. The committee retained Pachulski Stang Ziehl & Jones, LLP as its legal counsel, and Berkeley Research Group, LLC as its financial advisor. WHITING PETROLEUM: Gets Court Clearance to Gather Ch. 11 Plan Votes ------------------------------------------------------------------- Jeremy Hill of Bloomberg News reports that Whiting Petroleum Corp. won approval of its disclosure statement, giving the driller the all-clear to gather votes on its plan to hand ownership of the company to creditors and slash debt. U.S. Bankruptcy Judge David Jones says he'll approve the document, which is an outline of the bankruptcy exit strategy meant to inform creditors who vote on the plan, pending changes discussed in the hearing. The newest version of the Disclosure Statement projects recoveries for unsecured creditors of 39% based on a valuation of $1.55 billion for Whiting after bankruptcy. About Whiting Petroleum Corp. Whiting Petroleum Corporation, a Delaware corporation -- http://www.whiting.com/-- is an independent oil and gas company that explores for, develops, acquires and produces crude oil,natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States. Its largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. Whiting Petroleum trades publicly under the symbol WLL on the New York Stock Exchange. Whiting Petroleum and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-32021) on April 1, 2020. At the time of the filing, the Debtors disclosed $7,636,721,000 in assets and $3,611,750,000 in liabilities. Judge David R. Jones oversees the cases. The Debtors tapped Kirkland & Ellis, LLP, Kirkland & Ellis International, LLP and Jackson Walker L.L.P. as legal counsel; Moelis & Company as investment banker; Alvarez & Marsal as financial advisor; Stretto as claims and solicitation agent, and administrative advisor; and KPMG LLP US as tax consultant. WINDSTREAM SERVICES: Moody's Assigns B3 CFR Over Exit Financing --------------------------------------------------------------- Moody's Investors Service has assigned a B3 corporate family rating and a B3-PD probability of default rating to Windstream Services, LLC (New) in connection with its post-bankruptcy exit financing. Moody's has also assigned a Ba3 rating to Windstream's proposed $500 million super-senior revolving credit facility, and a B3 rating to proposed first lien debt totaling $2.15 billion, which will be comprised of some combination of a seven-year first lien term loan and eight-year senior first lien notes. The outlook is stable. On June 25, 2020, the US Bankruptcy Court for the Southern District of New York confirmed Windstream's plan of reorganization. The company expects to complete its financial restructuring process and emerge from Chapter 11 bankruptcy protection in late August or September (Bankruptcy Exit). Upon emergence the company will reduce its funded debt by more than $4 billion. In anticipation of the Bankruptcy Exit, Windstream is issuing first lien exit credit facilities (Exit Credit Facilities) comprised of a $500 million four-year super senior revolving credit facility (undrawn at Bankruptcy Exit) and a first lien term loan facility. This first lien term loan facility will be a portion of an aggregate of $2.15 billion of first lien debt expected to be issued. The term loan portion of the Exit Credit Facilities will be drawn down at or prior to Bankruptcy Exit. The remaining portion of the $2.15 billion of first lien debt is expected to be issued as senior first lien notes that will share the same collateral and be equal in ranking with the first lien term loan facility. The Escrowed Notes will be issued by two escrow entities: Windstream Escrow LLC and a co-issuer, Windstream Escrow Finance Corp., both indirect wholly-owned subsidiaries of Windstream. At Bankruptcy Exit, Windstream or its successor will assume the obligations of Windstream Escrow under the Escrowed Notes and Windstream Escrow Finance will remain the co-issuer. At Bankruptcy Exit, net proceeds from the issuance of $2.15 billion of first lien debt will be used in combination with $1.035 billion of additional capital -- comprised of proceeds from a $750 million equity rights offering and a $285 million asset purchase by Uniti Group Inc. funded with proceeds from its sale of common stock -- to refinance Windstream's senior secured super-priority debtor-in-possession credit facilities, pay for administrative claims and the claims of general unsecured creditors at non-guarantor subsidiaries, provide cash to existing creditors and pay exit financing fees. The Bankruptcy Exit date is uncertain due to remaining regulatory approvals which are currently expected to conclude no later than September 2020. Assignments: Issuer: Windstream Services, LLC (New) Probability of Default Rating, Assigned B3-PD Corporate Family Rating, Assigned B3 Senior Secured Super Priority Revolving Credit Facility, Assigned Ba3 (LGD1) Senior Secured Term Loan, Assigned B3 (LGD3) Senior Secured Regular Bond/Debenture, Assigned B3 (LGD3) Outlook: Issuer: Windstream Services, LLC (New) Outlook is Stable RATINGS RATIONALE Windstream's B3 corporate family rating reflects continuing execution risks related to the company's plans across its business segments to reverse declining revenue and EBITDA. This business improvement effort relies upon significant increases in fiber-based network investments in the company's Kinetic segment's rural and mainly residential ILEC footprint. Stabilizing weak operating trends in the company's Enterprise segment is also critical to the company's strategy but less certain and more protracted in nature, requiring continued focus on cost cutting and significant improvement in bookings of software-enabled strategic product solutions to offset secular declines in legacy services. Underinvestment impaired Windstream's competitive positioning historically. The company's leverage tolerance is further limited due to its low asset coverage following the 2015 sale and leaseback of assets to Uniti which constrained flexibility. Significantly reduced balance sheet debt of over $4 billion and improved liquidity at Bankruptcy Exit will support a comprehensive, multi-year business improvement effort. While reversing weak operating trends will be difficult and Windstream's ability to generate sustained free cash flow and steadily reduce debt leverage is uncertain, the restructured company will now benefit from improved flexibility to increase capital intensity and pursue a targeted share growth strategy across competitive end markets. Under renegotiated master lease agreements with Uniti, Windstream will realize critical investment assistance from its main lessor through 2030 in the form of steady growth capital investment reimbursements totaling $1.75 billion. In addition, the original master lease agreement with Uniti will be bifurcated into structurally similar but independent agreements governing Windstream's ILEC facilities and CLEC facilities. With few easily monetizable assets to accelerate credit improvement, this bifurcation of facilities under the renegotiated leases could facilitate a future disposition of either end business tied to those separated network facilities, potentially resulting in an accelerated and more positive credit profile trajectory. But currently, Windstream's credit profile improvement is operationally based and predicated on the company's strengthening and growing its base of recurring revenue, reducing churn, improving margins, and better leveraging its scale and branding as a national telecom operator. Windstream's debt/EBITDA (Moody's adjusted) of approximately 3.6x in 2021 will increase slightly to 3.7x in 2022. Moody's expects 2021 EBITDA margins (Moody's adjusted) to slightly improve versus 2020 and further improve in 2022 based on continued aggressive cost cutting actions, including from network grooming. Stabilization of negative historical EBITDA trends will be critical to support business turnaround efforts. Revenue will contract at a high single-digit pace in 2021 before slowing to a decline pace in the low to mid single-digit area in 2022. Revenue will continue to contract for several additional years until Windstream's Enterprise segment revenue stabilizes and its market share capture strategy in its consumer-focused Kinetic segment delivers more meaningful growth traction in late 2022 or early 2023 as a result of investments in network upgrades. Moody's expects Windstream will utilize draws under its revolver in 2021 and 2022 to maintain balance sheet cash of $100 million. Any future excess free cash flow is expected to be used to pay down outstanding debt. The Ba3 rating on the super-senior revolver reflects its first-priority payment relative to the first lien term loan and any senior first lien notes in a default scenario. The B3 rating on the first lien term loan and senior first lien notes, at the same level as the CFR, reflects the preponderance of this class of debt in the capital structure. Moody's views Windstream's liquidity as good. At Bankruptcy Exit Moody's expects the company to have $141 million in cash and cash equivalents and full borrowing capacity availability on its $500 million super-senior revolving credit facility. Slightly negative free cash flow generation is expected in 2021 and 2022 due to capital intensity, expected debt financing costs and from pressures from contracting revenue over the next several years. The company is expected to have high capital spending (Moody's adjusted) of approximately $977 million in 2021 and $917 million in 2022, which is net of annual growth capital investment reimbursements Uniti is committed to advancing under court approved terms of the renegotiated leases in 2021 and 2022. Uncertainties regarding operational improvements and the sustainability of market share gains in its competitive markets could limit the potential for future free cash flow generation, limiting financial flexibility and impairing the company's ability to pay down debt. Post-bankruptcy, five pre-petition debt holders are expecting to have between approximately 77% and 95% economic and voting control over Windstream's strategic decisions as its aggressive investment program is implemented to upgrade the bulk of the company's network to fiber. Funds affiliated with and/or accounts managed by Elliott Investment Management, L.P. will be the largest shareholder controlling between approximately 40% and 50% of Windstream. Execution risks are high and continued cost cutting is a critical component of the company's strategy, but good liquidity facilitates a long turnaround runway. Windstream's post-bankruptcy financial policy is expected to prioritize debt pay down with excess free cash flow. M&A or asset dispositions are unlikely in the initial post-bankruptcy years and dividends are not part of stated financial policy currently. The stable outlook reflects Moody's expectations over the next 12-18 months for continuing high single-digit revenue contraction but declining towards a low to mid single-digit percentage of revenue contraction pace by year-end 2022, stable to slightly improving EBITDA margins, stable to slightly increasing debt/EBITDA (Moody's adjusted) and slightly negative free cash flow generation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS: Given the company's current competitive positioning, network upgrade execution risks, uncertainties regarding continued share growth traction across its Kinetic segment and weak operating trends in its Enterprise segment, upward pressure is limited but could develop should Windstream's free cash flow to debt (Moody's adjusted) track towards mid single-digit levels as a percentage of Moody's adjusted debt on a sustainable basis. An upgrade would also require steady market share capture gains in the company's Kinetic footprint over several years, consolidated revenue and EBITDA growth and maintenance of a good liquidity profile. Downward pressure on the rating could arise should the company's liquidity deteriorate or should execution of its share capture and growth strategy materially stall or weaken. Under its first lien exit credit facilities Windstream will be permitted to increase its super-senior secured revolving credit facility or first lien term facility or add one or more additional revolving or term loan credit facilities through an incremental facility which permits debt = the greater of $250 million and 25% of EBITDA, plus additional amounts subject to a net first lien leverage ratio of 2.25x for pari passu debt. Collateral leakage is permitted, subject to available basket capacity, through the transfer of assets to unrestricted subsidiaries. There are no additional "blocker" provisions precluding the transfer of assets. Restricted payments from the cumulative credit are subject (under revolving credit facility documentation, only) to pro forma total net leverage ratio = 2.25x and RPs after a qualified IPO are not to exceed the greater of 6.00% per annum of the net proceeds received and 7.00% per annum of market capitalization. These are proposed terms and the final terms of the senior facilities agreement can be materially different. The principal methodology used in this rating was Telecommunications Service Providers published in January 2017. Windstream Services, LLC is a pure-play wireline operator headquartered in Little Rock, AR that provides telecommunications services in 48 states. For the last 12 months ended June 30, 2020, Windstream generated $4.9 billion in revenue. YOUNGEVITY INTERNATIONAL: Amends Joint Venture Agreement -------------------------------------------------------- Youngevity International, Inc., entered into an Amendment to the Joint Venture Agreement, dated April 20, 2020, by and among CLR Roasters, LLC, Khrysos Industries, Inc., H&H Coffee Group Export Corp. and Fitracomex, Inc., as successor in interest to P&S Corporation Trading Investments Inc. d/b/a: The Nica Hemp Cooperative. Pursuant to the Joint Venture Agreement, the parties intend to construct a hemp grow facility in Nicaragua. The Amendment acknowledges the assignment by P&S Corporation Trading Investments Inc. d/b/a: The Nica Hemp Cooperative of its rights and obligations under the Joint Venture Agreement to Fitracomex and clarifies that the proposed issuance upon completion of the construction of the facility of warrants to purchase shares of the Company's common stock to the Nicaragua Partners shall require the approval by the Company's stockholders of the proposed issuance. Pursuant to the Joint Venture Agreement, as amended, H&H Coffee Group Export Corp has agreed to provide, and contribute a 50% interest in, the 2,200 acre Chaguitillo Farms in Sebaco-Matagalpa, Nicaragua for a 25% stake in the joint venture, the Nicaragua Partners have agreed to provide capital funding for the construction of the facility, and CLR and Khrysos have agreed to initially contribute $3,000,000 of extraction equipment along with their expertise in the hemp business for a 75% stake in the joint venture. In addition, pursuant to the Joint Venture Agreement, as amended, the Company has agreed to issue 1,500,000 million shares of the Company's common stock to the Nicaragua Partners and upon completion of the construction of the facility, and subject to the receipt of all necessary approvals, including the approval by the Company's stockholders of the proposed issuance in accordance with the rules of The Nasdaq Stock Market, agreed to issue a warrant to the Nicaragua Partners to purchase 5,000,000 shares of the Company's common stock at an exercise price of US$1.50, exercisable for a term of five years. About Youngevity Chula Vista, California-based Youngevity International, Inc. -- https://ygyi.com -- is a multi-channel lifestyle company operating in three distinct business segments including a commercial coffee enterprise, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise. The Company features a multi country selling network and has assembled a virtual Main Street of products and services under one corporate entity, YGYI offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewelry, as well as innovative services. Youngevity reported a net loss attributable to common stockholders of $23.50 million for 2018 following a net loss attributable to common stockholders of $12.69 million for 2017. As of Sept. 30, 2019, the Company had $141.18 million in total assets, $85.01 million in total liabilities, and $56.17 million in total stockholders' equity. Mayer Hoffman McCann P.C., in San Diego, California, the Company's auditor since 2011, issued a "going concern" qualification in its report dated April 15, 2019, on the consolidated financial statements for the year ended Dec. 31, 2018, citing that the Company has recurring losses and is dependent on additional financing to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. [*] Bankruptcy Court OKs Sept. 3 Bid Deadline for Quarry Land ------------------------------------------------------------- Hilco Real Estate, LLC announced the date of September 3, 2020 as the qualifying bid deadline for 1,145± acres of prime quarry land located in Campbell County near Newcomb, Tenn. This property has substantial limestone and sandstone reserves with 100% of the mineral rights included in the sale. The location allows for easy access with over four miles of frontage along Interstate 75, its own dedicated interchange, Exit 156, which leads directly into the property, as well as frontage along State Highway 297. Proven limestone and sandstone reserves make this property ideal for mining. Water is accessible through numerous natural springs and more than three miles of the Elk Valley River run through the property. Additionally, there is over three miles of Norfolk Southern rail frontage. All sandstone geological tests, available for review in Hilco Real Estate's data room, well exceed TDOT specs for non-skid asphalt surface and RR ballast material. Alternatively, this property is also a great location for an RV Park, ATV resort, or private hunting grounds, with an excellent road and drainage system already installed throughout the site. Jeff Azuse, senior vice president for Hilco Real Estate stated, "Rarely does a land site of this size become available with such a large amount of verified limestone and sandstone reserves. When you add in the direct access to Interstate 75, access to the Norfolk Southern rail line, and the abundance of water available, you have a trifecta of what is needed for a successful mining operation." The qualifying bid deadline is September 3, 2020 at 5:00 p.m. CDT. To participate in this offering, interested parties should review the due diligence information, terms of sale and requirements located on the web page, and submit a bid by the deadline date. Participating groups will be notified if a bid qualifies for the next phase of the sales process. This sale is subject to court approval. For further information on the property, an explanation of the sale process, sale terms or to obtain access to due diligence documents, please visit HilcoRealEstate.com or call (855) 755-2300. About Hilco Real Estate Hilco Real Estate ("HRE"), a Hilco Global company (HilcoGlobal.com), is headquartered in Northbrook, Illinois (USA). HRE is a national provider of strategic real estate disposition services. Acting as an agent or principal, HRE uses its experience to advise and execute strategies to assist clients in deriving the maximum value from their real estate assets. By leveraging multi-faceted sales strategies and techniques, aggressive repositioning and restructuring experience, a vast and motivated network of buyers and sellers, and substantial access to capital, HRE exceeds expectations even in the most complex transactions. [*] Bankruptcy Courts Can Expect Growing Cases This Year -------------------------------------------------------- Sabri Ben-Achour, writing for the Marketplace, reports that many economists and bankruptcy lawyers expect a wave of bankruptcies coming this year. Giant bankruptcies of companies that owe more than $100 million, are up 40% from a year ago, which means they are up 120% from 2018. Chapter 11 bankruptcies of all kinds have increased 20% since last year. This is obviously traumatic for the people who work at those companies but there is a silver lining. "It's an overstatement to say that bankruptcy is this deeply undesirable thing," said Jared Ellias, professor of law at UC Hastings College of Law. "One of the great things that happens after bankruptcy is a company leaves, and they're hopefully positioned to thrive," he said. The post COVID-19 economy is going to be very different and a lot of businesses will need to radically reinvent and reinvest in themselves in order to adapt. Chapter 11 bankruptcy lets companies do that. Which is why Ellias and a group of academics are concerned that if there are too many bankruptcies, the courts might get overwhelmed and companies won't get the help they need. "When a company is in financial trouble, they can't invest, they can't hire, they can't give people pay raises, they can't do the things that businesses need to do to be attractive places to work," Ellias said. So if you slow down the process of transformation, it slows down the entire economy. "There have been proposals to bring back some retired bankruptcy judges, recently retired bankruptcy judges, and you also would need to add personnel at the clerk's office level as well," said Robert Keach, an attorney who specializes in business restructuring and insolvency at the Bernstein Shur law firm. Congress also made it a lot easier, faster, and cheaper for small businesses to go through the bankruptcy process through reforms in 2019 and through the CARES Act, according to Keach. But judges take time to hire, and there is only so much you can do, he said, so a lot will depend on just how bad the bankruptcy wave will be. [*] CARES Act and SBR Act Help Small Businesses Manage Debt ----------------------------------------------------------- Thomas Zeichman and Jeffrey C. Lynne, writing for Psych Congress, reports that CARES Act and the Small Business Reorganization (SBR) has given small businesses options in managing debt. The widespread economic impact of COVID-19 has touched all industries, including addiction treatment and behavioral health providers. Cash flow interruptions have caused some providers to consider their options, including bankruptcy and restructuring. Recently American Addiction Centers (AAC), a publicly traded provider, filed for Chapter 11 bankruptcy protection. AAC acknowledged that, prior to COVID, the company was attempting to address its debt levels. However, the stay-at-home orders which many governments entered reduced inpatient admissions and outpatient visits, which prevented AAC from making debt payment. Other providers may be wondering what options they have to manage their debts. There are bankruptcy and non-bankruptcy options to address debt demands. Additionally, the CARES Act expanded the options available to providers which qualify as "small businesses." The Small Business Reorganization Act was recently passed to help small businesses proceed quickly through Chapter 11 bankruptcy, obtain the benefits of Chapter 11 including the reduction and modification of debt, and avoid the high costs or administrative delays generally associated with Chapter 11. The CARES Act has expanded the number of businesses eligible to take advantage of the Small Business Reorganization Act. Individuals with business debt are also eligible, which may be helpful in the event a provider’s principals signed personal guarantees. Certain benefits of the CARES Act which expand the Small Business Reorganization Act will expire if not renewed by Congress. Small businesses should consider their options promptly to avoid running against these deadlines. Below is a summary of the Small Business Reorganization Act: Eligibility. A debtor must have non-contingent, liquidated debts (secured and unsecured) of no more than $2,725,625. Under the CARES Act, this limit has been increased to $7.5 million. The CARES Act amount expires one year from March 2020 passage. Benefits -- Lower costs. SBRA helps keep costs low by: * Eliminating the disclosure statement requirement. * Only the debtor may file a plan. There are no competing plans to litigate. * The debtor is no longer required to obtain votes if the plan otherwise complies with Bankruptcy Code. This too decreases the likelihood of costly litigation. -- Bankruptcy tools * Assume or reject leases and contracts. This allows the company to terminate leases, cap damages and spread reduced payments over time. * Modify debt obligations by spreading out payments, discharging or both. * Sell assets "free and clear" to maximize their value. -- Retain control * Absent bad acts, owners remain in control of operations during the bankruptcy case. * Owners retain ownership of the businesses post-bankruptcy by paying the company's disposable income to creditors, generally at a discount, over a period of 3 to 5 years. -- Fast-track cases * Court status conferences occur early to advance cases and establish a path forward. * The debtor must file a plan within 90 days of the bankruptcy filing. * A trustee is appointed to assist with creditor negotiations and advance a plan of reorganization. The Small Business Reorganization Act came at the right time as businesses and individuals are experiencing unprecedented challenges. To avoid missing out on the increased benefits under the CARES Act, small businesses should learn their options before this program expires. [*] Chapter 11 Filings at Fastest Pace Since 2013 ------------------------------------------------- The coronavirus' economic fallout is fueling Chapter 11 bankruptcy filings at the fastest pace since 2013, the Financial Times reported, according to Business Insider. US filings totaled 3,427 on June 24, according to data from Epiq seen by the Times. The reading also closes in on the financial-crisis reading of 3,491 companies entering bankruptcy in the first half of 2008. Chapter 11 bankruptcy is among the most popular options for businesses to restructure in the midst of insolvency. Some of the biggest names to file in 2020 include Hertz, JC Penney, J Crew, and Chesapeake Energy. Circus company Cirque du Soleil is one of the latest to join the pack after filing for bankruptcy on Monday. The coronavirus pandemic attacked corporate income on all fronts through the start of the year. The outbreak initially tore into global supply chains and firms with exposure to China as the country issued strict lockdowns. As the virus spread across the rest of the world, quarantine orders stifled consumer spending and manufacturing activity. Companies were forced into months of frozen revenue streams. Companies are still a ways away from repeating the bankruptcy trend seen during the last US recession. A total of 8,614 firms filed for bankruptcy protection in 2008 before an additional 12,644 companies filed the following year, according to the Times. Still, rising coronavirus case counts could prolong shutdowns and boost insolvency across industries. The wave of bankruptcies isn't deterring companies from issuing debt to ride out the pandemic. Investment-grade bond sales surged past the $1 trillion threshold at the fastest pace in history in late May as companies rushed to take advantage of strong risk-on activity. The Federal Reserve's move into corporate debt markets prompted an influx of investors looking to buy companies' bonds. The same threshold wasn't breached until November in 2019. [*] Commercial Chapter 11 Bankruptcy Filings Up 52% in July ----------------------------------------------------------- Epiq, a global leader in legal services, released its July 2020 bankruptcy filing statistics from its AACER business. Continuing the trend from the previous month, commercial Chapter 11 filings are up 52% over July 2019, with 642 new filings which is up from 423 last year. In the first seven months of 2020, Chapter 11 commercial filings are up 30% over the same period last year, with a total of 4,246 filings. "As expected, we continue to see significant year over year growth in Chapter 11 commercial bankruptcy filings," said Deirdre O’Connor, managing director of corporate restructuring at Epiq. "The COVID-19 pandemic is reshaping consumer buying habits. Therefore, we will continue to see large retail, energy, and transportation businesses taking advantage of the tools provided by a formal bankruptcy to restructure to be more profitable and competitive in the long-term." Non-commercial bankruptcy is benefiting from "government-backed programs that have injected liquidity into the markets," said Chris Kruse, senior vice president of Epiq AACER. Chapter 13 non-commercial filings are down 38% in 2020, with 99,136 filings, which is down from 159,602 filings in the same period of 2019. Chapter 7 non-commercial filings are down 21% in July 2020 with 30,177 new filings, which is down from 38,033 the same period of 2019. However, total non-commercial filings have increased each of the last four months and are up 11% since April, with 40,072 in July 2020, which is up from 36,151 in April 2020. "Perhaps these numbers are early indications of the pending personal bankruptcy spike expected to start later this year as the longer-term impact of the COVID-19 begins to manifest," said Kruse. About Epiq AACER Epiq AACER is the market leader in U.S. Bankruptcy Court data, workflow automation software and services for organizations who need to leverage accurate and timely bankruptcy data to lower their financial risk, reduce costs, and accelerate bankruptcy operations. Learn more at www.AACER.com. About Epiq Epiq, a global leader in the legal services industry, takes on large-scale, increasingly complex tasks for corporate counsel, law firms, and business professionals with efficiency, clarity, and confidence. Clients rely on Epiq to streamline the administration of business operations, class action and mass tort, court reporting, eDiscovery, regulatory, compliance, restructuring, and bankruptcy matters. Epiq subject-matter experts and technologies create efficiency through expertise and deliver confidence to high-performing clients around the world. Learn more at https://www.epiqglobal.com. [*] Considering Lease Concessions for Bankrupt Tenants ------------------------------------------------------ Douglas Rosner of Goulston & Storrs PC wrote an article on JD Supra titled "Considering Lease Concessions in the Face of a Tenant Bankruptcy." Landlords are receiving a deluge of requests to provide rent relief to commercial tenants whose operations have either been closed or substantially restricted as a result of state and local governments' COVID-19 stay-at-home orders and related restrictions. Some tenants are using the threat of a bankruptcy filing as leverage to obtain these concessions. Meanwhile, landlords are facing their own challenges with mortgage lenders and servicers as they try to service real estate loans with limited available cash. Landlords should understand the significance of the bankruptcy threat. The most significant shift in negotiating leverage resulting from a bankruptcy is the tenant's right under the Bankruptcy Code to assume, assign or reject leases. Pre-bankruptcy, the landlord is entitled to terminate a lease in response to a tenant default; however, the tenant continues to be bound by the terms of the lease. Post-bankruptcy, it is now the tenant and not the landlord that holds the power to elect whether to assume (keep), assume and assign without landlord consent or reject (terminate) a lease. This shift gives the tenant the leverage to use bankruptcy and the threat of either rejection as a bargaining chip to negotiate for concessions. However, a tenant cannot use the bankruptcy to modify lease terms without landlord consent. When the tenant comes knocking, a landlord should first consider whether it wants the space back, or the tenant to remain in possession (for example, if the location will be difficult to re-let). The former could make sense where a bankruptcy assignment is a greater risk because the location is highly desirable, the lease is under market, there is significant term remaining, a redevelopment opportunity exists or there is a broad use clause. The presence of these factors may make the lease more marketable for assignment in bankruptcy. By declining a tenant's request for concessions, the Landlord may increase the likelihood that the lease will be rejected if the tenant were to file for bankruptcy. The landlord can then retake possession of the premises. Another important consideration is the financial condition of the tenant, including the economics of the premises. If the location was highly profitable prior to the COVID-19 shutdown or critical to the tenant's business operations, then it is more likely that the tenant will remain without the requested concessions even if, for other reasons, a bankruptcy filing were to occur days when the tenant is not open and operating (and, thus, not generating sales). There are ways to manage the threat of a tenant bankruptcy when negotiating lease modifications. However, as a threshold matter, the landlord needs to decide whether it wants the tenant to stay or go. [*] Corporate Insolvency & Governance Act 2020 Comes Into Force --------------------------------------------------------------- James Campbell, Hugh Ray, III, and Henrietta Worthington of Pillsbury Winthrop Shaw Pittman LLP wrote an article on JD Supra titled "Corporate Insolvency and Governance Act 2020 Comes into Force." TAKEAWAYS * The Act borrows restructuring concepts from the United States, aimed at rescuing struggling businesses. * The new measures include a new moratorium to give companies breathing space while they seek rescue; and a new restructuring plan, sanctioned by the court, that will bind creditors. * It also introduces various temporary measures to relieve the burden on businesses during the coronavirus crisis. The future's in the air as the Corporate Insolvency and Governance Act entered into force on 26 June 2020 taking its inspiration from the U.S. Chapter 11 process. This major reform to the UK's insolvency procedures has been in the pipeline since 2018, but the draft bill was rushed through parliament in response to the COVID-19 crisis to help companies survive. In making this revolutionary shift to protect companies the Act marks a significant change to the measures available under the UK's insolvency framework, and also provides for the extension of certain "temporary" tools aimed at assisting sectors hardest hit by COVID-19. These changes will greatly expand the powers of courts to restructure companies, even over the objections of creditors. In 1978, when the United States was faced with an earlier economic crisis, the U.S. Congress enacted a bankruptcy law that aimed to encourage creditors to recapture their debts over time and avoid the significant, abrupt job losses concomitant with liquidation. Among the more unique provisions of that law were: * a self-effectuating injunction during which time the debtor may continue to trade; * the power to "cram down" dissenting creditors who were receiving otherwise fair treatment; and * the ability to force discharge of claims by creditors and shareholders that were "out of the money." The measures introduced by the Act borrow some of those U.S. bankruptcy concepts. The Act represents a shift toward a business rescue culture more in line with the U.S. insolvency and rescue tools. For example, the moratorium on creditor actions is more expansive and permits a debtor to trade, the creditors can be "crammed down" if the majority of a class accepts treatment, and the treatment of other classes is fair. Similarly, there is no obligation to obtain consent from every class—only fair treatment. Thus, creditors of a class that would not receive a distribution in a liquidation may be forced to accept a discharge with no payment. Specifically, the Act has brought into force a series of permanent and temporary measures: Permanent * a new moratorium on enforcement action; * a new "restructuring plan" process; and * the disapplication of supplier termination of contract provisions for insolvency. Temporary * suspension of the wrongful trading rules; * prohibitions on the presentation of winding up petitions; * relaxation of moratorium criteria; and * suspension of company meetings and filings. Overview of the Permanent Measures New Moratorium The Act has introduced a moratorium to struggling companies to give them time to attempt rescue or restructure. Businesses will be able to trade in the ordinary course whilst the moratorium is in place. The new moratorium is not linked to any particular insolvency process and is now a free-standing tool that can be used by UK companies of any size. The new moratorium will not be available to certain types of entity (e.g., insurance companies, banks) or to companies that have already commenced any insolvency proceedings (save for temporarily, as set out below). A moratorium can be obtained by filing the following items at court1: * a notice that the directors wish to obtain a moratorium; * a statement from an insolvency practitioner that they are qualified to act and consent to act as monitor to protect the creditors' interests; and * a statement from the directors of the company that, in their view, the company, is or is likely to become, unable to pay its debts; and * a statement from the proposed monitor that the company is an eligible company and, in the proposed monitor’s view, it is likely that a moratorium will result in the rescue of the company as a going concern. The moratorium will become effective upon filing, except in the case of companies that are subject to a winding up petition and overseas companies, where the moratorium will only take effect on the court's ruling. The Act provides for an initial 20 business day moratorium, with an option to extend by a further 20 business days (without creditor consent) or up to one year (with creditor consent or as ruled by the court).2 During this period, trade creditors and lenders will be prevented from initiating insolvency or other legal proceedings, and landlords will be unable to forfeit leases. New "Restructuring Plan" The Act introduces a new tool to the UK's insolvency and restructuring compendium under a new Part 26A of the Companies Act 2006. This process is in addition to the existing creditor cooperation mechanisms available in the UK—the company voluntary arrangement and the scheme of arrangement. The new Restructuring Plan is similar to a Chapter 11 process in the United States. The key features of the Restructuring Plan, compared to Chapter 11 are set out here. Disapplication of Supplier Termination of Contract Provisions for Insolvency The Act extends the disapplication of the rights of a supplier in relation to contracts "for the supply of goods or services" (i.e., it restricts a supplier's ipso facto rights). The Act provides that where a contract includes a provision allowing the supplier to terminate the contract or "do any other thing" such provision will "cease to have effect" when the company becomes subject to the relevant insolvency procedure.3 The intention of these provisions is to protect companies' supplies so that companies can continue trading while they are subject to the relevant insolvency procedure, subject to financial hardship protections for suppliers, increasing the chances of rescue. This amendment also marks a shift towards the U.S. system, although notably the UK provisions apply only to supply contracts whereas the U.S. bankruptcy process treats all "executory contracts," such as supply and requirements contracts as a special category that do not terminate based on an ipso facto clause and that may be assigned notwithstanding anti-assignment clauses. Overview of the Temporary Measures Suspension of Wrongful Trading Rules The Act temporarily suspends the wrongful trading rule until 30 September 2020 (effective retrospectively from 1 March 2020) to give directors breathing space to trade during the pandemic without the risk of incurring liability in the event that the company becomes insolvent.4 The changes are intended to prevent companies from having to preemptively file for insolvency to avoid any personal liability risk on the part of its directors. Notably, the government has left all other director misconduct measures in place as a deterrent against director misconduct (including fraudulent trading and the threat of director disqualification). Furthermore, the provisions on transaction avoidance under the Insolvency Act 1986 (including transactions at an undervalue, preferences, transactions defrauding creditors etc.) will continue to apply. It is therefore likely that any circumstances that would have triggered a wrongful trading claim will be caught within another basket. As a matter of best practice, and in particular during these uncertain times, it is vital that directors continue to act in the interests of the company and to accurately document all decisions—even where this means winding up a company. Under the U.S. law, there is no restriction against trading while insolvent, though when an entity becomes insolvent, the duties of the board and officers expand to include creditors as well as shareholders. Thus, as under the Act, if a director trades while insolvent in good faith, she may not be liable; she would be liable if she deliberately wasted or concealed assets available for creditors. Preferential payments of legitimate debts do not normally give rise to breach of duty claims under U.S. laws, but the transfer may be reversed under U.S. bankruptcy laws if made within 90 days before the bankruptcy (within one year if the recipient is an insider). Temporary Prohibition on the Presentation of Winding Up Petitions The Act prevents creditors from presenting a winding up petition on the basis of an unsatisfied statutory demand served between 27 April 2020 and 30 September 2020 unless the creditor has reasonable grounds for believing that (i) coronavirus has not had a financial effect on the company, or (ii) the company would have been unable to pay its debts even if coronavirus had not had a financial effect on it.5 There is no guidance given on the meaning of “financial effect,” but this appears to be a low threshold. In practice it will likely be difficult for a creditor to prove that the coronavirus has not had a financial effect on a company; with the onus on the creditor to prove that this was its reasonable belief. The effect of the prohibition is that any relevant winding up petition that does not satisfy the exclusions will be void. This restriction is particularly relevant to commercial landlords who have been criticised for relying on statutory demands to coerce tenants into satisfying their rent payment obligations. The prohibition in the Act is substantively similar to the wording in the draft bill which has already been considered in the English courts. Mr. Justice Morgan granted an interim injunction against a landlord's presentation of a winding up petition on a tenant who failed to meet its rental payments. Mr. Justice Morgan confirmed that the intention of the bill was such that "the court can only wind up the company if it is satisfied that the facts on which the petition is based … would have arisen even if coronavirus had not had a financial effect on the company." Temporary Moratorium Relaxation The Act temporarily relaxes certain conditions for obtaining a moratorium. The new moratorium (set out above) will be temporarily available to companies that are currently subject to winding up petitions. Additionally, companies are able to apply for an extension to a moratorium, disregarding any "worsening of the financial position of the company for reasons relating to the coronavirus." This moratorium will apply from the date of the Act until 30 September 2020.6 Suspension of Company Meetings and Filings Finally, the Act grants an extension to the account filing deadline for public companies. For public companies with a filing deadline that falls between 26 March 2020 and 29 September 2020, the deadline will be extended to the earlier of 30 September 2020 and 12 months from the end of the company's accounting period.7 It also relaxes conditions relating to meetings for companies and other bodies, including extending the period for annual general meetings. The relaxation of these provisions will apply from 26 March 2020 until 30 September 2020.8 It is noteworthy that the Act has not provided for any staggered phase out of the temporary measures, which all end contemporaneously on 30 September 2020. It will be interesting to see how creditors respond to their lapse and the appetite of companies and creditors to utilise the new permanent tools available under the Act. [1] Article A6 of the Act. [2] Article A9 of the Act. [3] Article 233B(3) of the Insolvency Act 1986. [4] Article 12 of the Act. [5] Schedule 10 of the Act. [6] Schedule 4 of the Act. [7] Article 38 of the Act. [8] Schedule 14 of the Act. [*] Energy CEOs Awarded Bonuses Despite Companies' Struggles ------------------------------------------------------------ Myles McCormick, writing for the Financial Times, reports that despite the bankruptcy filing of energy companies, CEOs award themselves millions of bonuses. The collapse in crude prices this year has sent activity among U.S. oil and gas producers tumbling and left more than 100,000 workers out of a job. But for one small handful of employees things are not looking so bad. As their companies approach bankruptcy, executives at failing oil and gas producers have awarded themselves tens of millions of dollars in bonuses. And even in an industry that is no stranger to excess, investors have had enough. Whiting Petroleum, the sector's first big casualty in the wake of the crash, paid five executives US$14.6 million as it filed for Chapter 11 bankruptcy protection in April. Extraction Oil & Gas, the second big name to go, handed 16 executives US$6.7 million this month — a week before it sought protection. As 330,000 Albertans lose their jobs, Kenney unveils tax cuts, $10B in spending to lift economy Once fracking giant, Chesapeake Energy files for bankruptcy, one of the biggest victims yet of oil's spectacular collapse 'Hypocritical': After divesting from oilsands companies, Norway expands to untouched Arctic. Perhaps most egregious was Chesapeake Energy, which is expected to join the list of casualties imminently. Last month the company paid 21 executives US$25 million. California Resources, also on the brink, tweaked its compensation structure in March so that its chief executive would get a severance package worth double his salary and bonus if he is sacked without cause. He earned US$10.5 million last year. None of the companies responded to requests for comment. Oil companies are not the only ones paying out hefty bonuses to executives as they approach bankruptcy: JCPenney and Hertz have done likewise. The argument goes that to emerge successfully from restructuring you need to keep the people who know how to run the show. Without the bonuses, management could walk. But investors say the payouts in the energy industry are symptomatic of wider problems with governance and oversight in the sector, where executives have accumulated big pay packets for years despite generally poor share price performance. "Corporate governance in the (exploration and production) world has historically been atrocious and it continues to be atrocious," said Ben Dell, managing partner at Kimmeridge, a private equity company with shale assets. "It is the definition of 'heads I win, tails you lose'. Management gets paid when the share price goes up, when the share price goes down and when the company goes bankrupt." Chief executives at large independent producers earned 138 per cent of their target bonus pay over the past three years — suggesting they outperformed their agreed goals — according to research by Evercore. Yet over that period total returns to shareholders fell 55 per cent. Management gets paid when the share price goes up, when the share price goes down and when the company goes bankrupt. Energy companies largely judge their performance against a handful of peers in the sector, allowing them to outperform targets on a relative basis even as overall returns slide. This has knocked the attractiveness of investing in the sector as a whole, analysts say. Brad Holly, chief executive of Denver-based Whiting, received a bonus of US$6.4 million as the company filed for bankruptcy — US$1 million more than he got one year earlier. The company’s share price had collapsed 97 per cent in the intervening period. "People are getting fed up," said Bill Herbert, an analyst at Simmons Energy, an investment bank. "Since 2016 energy stocks have consistently underperformed the broader market and the oil price. The only people who have made money on energy stocks have been the executives running these companies." The sector has been the worst performer on the S&P 500 over the past one-, three-, five- and 10-year periods, according to Evercore, while active fund managers have increasingly steered clear. The excesses of the industry have waned since the boom days, when former Chesapeake chief Aubrey McClendon took home more than US$100 million in 2008. He was later indicted by the Department of Justice for rigging auctions for land rights. Even so, his successor Doug Lawler has received total compensation of US$110 million over the past seven years, according to Sentieo, a research house. Over that period, Chesapeake's equity value slid 99 per cent. Analysts say there is growing awareness in boardrooms that if energy companies want to attract fresh capital they need to align rewards for executives more closely with shareholders. "I think the returns have been so weak for so long that boards are finally looking at this and saying 'OK, we have to change the way we look at things'," said Rob Thummel, senior portfolio manager at Tortoise Capital in Kansas City, which manages US$11 billion in energy-related assets. But years of underperformance have already scared off many investors. Energy has tumbled from a 14 per cent share of the S&P 500's market capitalization to 3 per cent over the past decade, according to Evercore. Until there is evidence of real alignment, companies will have a hard time bringing investors back, Thummel said. "In years when the shareholders are rewarded then management should be rewarded. But rewarding a management team with a big bonus in a year where their shareholders lose a substantial amount of money seems to be wildly mismatched." [*] IP & Bankruptcy Vital to Startups in Financial Distress ----------------------------------------------------------- Kevin Kuhn of IP Watchdog wrote that intellectual property and bankruptcy are vital to start-ups during financial distress: The global economic recession associated with COVID-19 is unmatched by anything aside from the Great Depression. During these times of financial distress, technology companies will benefit by paying particular attention to the value of their patent portfolio The international economic disruption caused by COVID-19 presents unprecedented challenges. Thriving tech startup companies worth millions in January might find themselves struggling to stay afloat today. This article highlights the value of intellectual property (IP) that companies – particularly small companies without an IP department – can sometimes overlook in times of financial distress. The policy goals behind IP rights are at odds with the goals of bankruptcy law. Bankruptcy laws in the United States are "debtor friendly" and, in their most simplistic form, shield the party from certain debtors while forcing the sale of assets to pay other debts. But court ordered sales tend to undervalue complex property like IP. This is particularly apparent when it comes to patents. The evolution of a quasi-securities market based on patents developed in response to the growing value and proliferation of patents. After the creation of the Federal Circuit in 1982, that court consistently upheld patent rights. Because of the value of patents, financial firms bought patent rights and accrued massive patent portfolios. These patent holding companies (PHCs) or non-practicing entities (NPEs) sometimes earned the colloquialism “patent trolls” because of their tenacious techniques. By virtue of scale, these companies bought, sold, licensed, and litigated patent rights. Many of them made a heap of money. Given the current economic state, some of these companies are able to buy up patents from struggling tech companies. Others might be bleeding themselves. Regardless which position, there is significant value in a well-researched, thoughtfully enforced patent portfolio that can be easily overlooked when facing bankruptcy or solvency issues. Patent Rights in Bankruptcy Patent sales in bankruptcy have many differences than typical patent sales. These differences fall into three categories: the court's role, rights of third-party licensees, and clear and certain title. The Court's Role In chapter 11 bankruptcy, a court or court-appointed trustee dictates the timeline for patent sales. This usually results in an auction. Unlike the typical sales process, a court supervised auction does not afford buyers as much control over the process and time for due diligence. On the other hand, buyers receive perfect title to the patent, free of encumbrances except any court approved, pre-established licenses. Rights of Third-Party Licensees Court ordered bankruptcy sales can put third-party licensees in a compromising position. Because a court ordered sale grants perfect title, for an existing license contracts to remain, the court must approve it. This can be both a blessing and a curse since buyers are afforded complete transparency. On the one hand, a patent free of licenses or encumbrances is free to use and enforce however the buyer wants. On the other hand, existing license agreements provide value. Clear and Certain Title As discussed above, patent sales in bankruptcy offer clear title. Any encumbrances or licenses that pass with the title must be approved and documented by the court. The court also typically absolves any liens or bank securities attached to the patent. Therefore, buyers have a unique opportunity to gain patent rights with complete transparency. Recommended Action What steps should a patent holder take when faced with financial problems? First, strategically evaluate your patents. Some might be more valuable to others than they are to you. Other patents might be vital to the core operation of your business. There are certainly patent holding companies still looking to buy. Shedding unneeded patents could provide short term liquidity. But, be sure to appropriately valuate those patents. Considering bankruptcy? As shown here, patents are generally worth more to you pre-bankruptcy. The push and pull between patent rights and bankruptcy protections shows the evolution of an under-regulated market in the United States. [*] Pandemic Continues to Force Companies to Explore Bankruptcy --------------------------------------------------------------- Epiq wrote an article on JD Supra titled "Pandemic Continues to Force Business to Explore Bankruptcy": The COVID-19 pandemic has affected the U.S. economy so deeply that it will take a long time for businesses to recover, if they can recover at all. Many commercial industries have been turned upside down in the course of just a few months. The restaurant industry has been the hardest hit industry along with the travel and hospitality sectors rising in the ranks of impact severity. Many conferences and other destination events are either cancelled or postponed. Tourist attractions like New York's Empire State Building and Florida's Walt Disney World have been unable to entertain guests for months. Venues that would normally hold concerts, sporting games, and Broadway shows have also been shut down indefinitely. All of this upheaval has resulted in a significant loss of revenue and put many businesses in a precarious financial situation. As the country starts to reopen, businesses need to take swift action to roll out a reopening plan. For many commercial businesses in industries like travel and hospitality, this will be difficult because there is no road map detailing how to successfully emerge from a pandemic. While some companies will reopen, others will close their doors permanently. In fact, some companies have already commenced bankruptcy proceedings or outlined other out of court options. Those businesses that reopen, will still face an uncertain future because it is unlikely that revenue will immediately bounce back to pre-COVID 19 levels. With consumers still feeling uncomfortable with out-of-home activities, capacity restrictions at restaurants and many still afraid to travel, there will be significant stress on businesses for some time. 2020 Bankruptcy Filing Statistics Chapter 11 bankruptcy filings in the commercial sector were up 48% this past month compared to the numbers from May 2019. Even more significant, between April and May 2020 these bankruptcy filings raised 30% with 165 new filing petitions. These numbers are not surprising due to the way COVID-19 has rocked the economy. Now it is just a waiting game to see which industries will bounce back the fastest and which will see high rates of bankruptcy filings. Restaurant Chain Bankruptcy Filings The restaurant industry has suffered the most sales and job losses since COVID- 19 began. According to the National Restaurant Association, the industry will suffer losses of over $240 billion dollars by the end of 2020. With indoor dining still prohibited or restricted in some states, many restaurants have had to transition to outdoor dining, curbside pickup, and delivery services only. Restaurants that can offer inside dining are operating at a reduced capacity with social distancing and hygiene rules enforced. For many restaurants, this has meant a reduction in revenue of up to 80%. Independent, mom & pop type restaurants have been hit the hardest and many have closed their doors or have been forced to file bankruptcy. Big chains have not been immune either. In fact, many chains were already struggling because of changes in consumer eating patterns and there were a number of restaurant chains that filed for bankruptcy pre-pandemic including Kona Grill, Bar Louie and Granite City Food & Brewery which both filed for Chapter 11 in late 2019. Some chains have already set their bankruptcy plans in motion. Garden Fresh Restaurants filed for Chapter 7 bankruptcy on May 14, 2020 and will shut down all 97 stores and liquidate their business. Garden Fresh was a self-service chain known for its 50-foot salad bar, soups, pastas, breads, and desserts. However, given the COVID-19 pandemic and increased safety concerns from consumers, the company found it difficult to continue operations. The FDA recommended that restaurants discontinue operations "such as salad bars, buffets, and beverage service stations that require customers to use common utensils or dispensers." Buffet concept restaurants that offer a lot of fresh options, will either have to change their model or close their doors, because it will be impossible to comply with current FDA safety recommendations. BarFly Ventures, which is the parent company for HopCat – a popular Michigan restaurant chain – was hit hard due to the state's high number of coronavirus cases. They filed for Chapter 11 on June 3, 2020 and have a reorganization plan in motion, which includes restarting operations shortly in most of their locations in Michigan and Midwest locations but walking away from restaurant that were unprofitable before the pandemic hit. CraftWorks Holding – parent company for Logan's Roadhouse and others – has been entangled in bankruptcy proceedings since March 3, 2020. They are working to reorganize the company, but they have had to close many locations when the pandemic hit. An unidentified lender has recently agreed to purchase CraftWorks and plans to reopen approximately 150 of the company's 261 locations. Hotels, Events, and Entertainment Bankruptcy Filings Besides restaurants, other parts of the hospitality industry have been adversely affected by the pandemic due to travel restrictions across the country. While hotels have been hit hard, when people begin to travel again for business as well as pleasure, hotels should begin to bounce back. It will take a while for hotels to rebound to pre-COVID 19 levels and operators will need to entice travelers with incentives and discounts which could affect their bottom line. Distancing guidelines will also impact revenues because hotel restaurants, spas, and private events will have to adhere to reduced capacity rules. The human toll has been significant. According to surveys conducted by the American and Hotel and Lodging Association, 9 out of 10 hotels have laid off or furloughed workers and only 35% have been able to rehire employees through the economic relief measures such as the Paycheck Protection Program. Most hotels are operating at less than 50% of pre-COVID19 levels and they don’t expect to return to pre-COVID19 levels until 2021. Big hotel chains will probably be able survive by shuttering underperforming properties, closing floors along with food and beverage outlets while continuing to tap into emergency funds or lines of credit. Unfortunately, if travel does not bounce back quickly, some hotels might face foreclosure. For smaller travel businesses, like bed and breakfasts, boutiques, or travel companies, turning to bankruptcy can offer more solutions to help reorganize or shut down altogether before sustaining greater losses. In regards to travel companies, while AirBnB struggled when the pandemic first hit and had to lay off 1/4 of their workforce, they seem to be doing better for now and have experienced increased bookings within the U.S. due to lifted restrictions across the country. If will be interesting to see who fares better post-pandemic: hotels or vacation rental companies? It will likely come down to who offers the best cancellations policies and which proprieties travelers believe have the best hygiene and cleaning practices. Other hospitality businesses like spas, movie theatres, country clubs, and event venues are also experiencing economic hardships from the pandemic. Capacity restrictions decreases the amount of potential revenue. With unemployment at double digit numbers and fear reintegration into normal activities, consumers will likely cut back on discretionary spending and may not be ready to splurge on luxuries. For example, AMC theaters, the largest movie chain in the U.S., recently warned that it might not survive the fallout from the coronavirus pandemic. The company issued the warning in a public filing, saying that "the crisis has significantly undermined its finances and introduced profound uncertainty about its future." This warning doesn’t necessarily mean that AMC will go out of business. It is possible they could file for Chapter 11 bankruptcy and emerge as a sustainable business. Florida movie theater company CMX filed for Chapter 11 in April citing the pandemic as the main reason for the filing. CMX warns that the movie theater industry will not be able to survive without some type of economic rebalancing that involves movie studios taking a lower percentage of ticket revenue and landlords providing more favorable terms. Amusement and theme parks are also suffering. Apex Parks Group, an amusement park operator in California, filed for Chapter 11 protection in April and was recently approved for a sale to its lenders. These instances are the tip of the iceberg and the full impact of COVID 19 on leisure companies is yet to be realized. Conclusion It is no shock that the COVID-19 pandemic has hit the restaurant, hospitality, and leisure industries like a tidal wave. Now that most states and cities are moving into various phases of reopening, we will start to see who can survive and who will not. Many of these companies will likely have to reorganize either in or out of court. For many, the Chapter 11 process will help them to restructure and continue to operate. For others, the losses will be too great and they will have to close their doors permanently. Tapping into outside resources, like bankruptcy attorneys and consultants, can help businesses navigate the bankruptcy process and formulate a solid go forward plan. [*] Retail Calamity Felt Across Connecticut ------------------------------------------- Rich Kirby, writing for Patch, reports that it was always going to be a bit of rough sledding for brick-and-mortar businesses in 2020, and that was the forecast before the coronavirus pandemic. After nearly four months of shuttered stores, malls become ghost towns, and record unemployment, businesses have begun reopening, but it's proven too little, too late for some familiar players. Among the national chains that have recently filed for bankruptcy are J.Crew, Neiman Marcus, Modell's Sporting Goods, Pier 1, GNC, Chuck E. Cheese, Roots USA, True Religion, and Bluestem Brands. Sears, Kmart, JoAnn Stores and David's Bridal reportedly could be nearing bankruptcy. The effect of the retail calamity is being felt across Connecticut, where the following chains have filed for bankruptcy this year: J.C. Penney J.C. Penney filed for bankruptcy on May 15. The department store giant said it will close more than 200 of its 846 stores over the next two years. The first Connecticut casualty was their Torrington store, earlier this month. That closing leaves six J.C. Penney stores open in Connecticut, and the retailer has not yet said which stores are on the chopping block. The company said its financial restructuring is due to the coronavirus pandemic and its impact on retailers. Pier 1 Two months after announcing the closing of six of Connecticut's 14 Pier 1 Imports, the retailer is looking to close all of its stores for good. Pier 1 has asked a bankruptcy court to cease its retail operations, saying the temporary closures due to the coronavirus pandemic have caused financial ruin on its already shaky status. "Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down," CEO Robert Riesbeck said in a statement. Victoria's Secret Victoria's Secret announced last month it plans to permanently close approximately 250 stores, USA Today reported. Currently, there are Victoria's Secret locations in Avon, Waterbury, Milford, Waterbury, Danbury, Fairfield, Meriden, Norwalk, Southbury, Stamford, Manchester, Uncasville, Trumbull, Farmington, and West Hartford. No specific locations targeted for closure have yet to be announced by Victoria's Secret. Bath & Body Works Bath & Body Works, also owned by Victoria's Secret parent company L Brands, plans to close 50 of those stores as well. Locations in Connecticut include: Waterbury, Plainville, Meriden, Farmington, Milford, Danbury, Trumbull, Manchester, Clinton, Enfield, Norwalk, and Stamford. No specific locations targeted for closure have yet to be announced by Bath & Body Works. Last month the J.Crew Group filed for bankruptcy. The company, which also operates the Madewell brand of clothing, estimated in a Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Eastern District of Virginia that it had assets and liabilities of between $1 billion and $10 billion. J. Crew locations currently in Connecticut include: Farmington, Canton, New Haven, Westport, New Canaan, and Greenwich. Chuck E. Cheese The fate of the Chuck E. Cheese party and entertainment chain's four Connecticut locations (Orange, Waterbury, Newington and Manchester) is uncertain after the parent company of the popular children's-themed restaurant filed for bankruptcy on Thursday. Texas-based CEC Entertainment said it expects to continue operations throughout bankruptcy proceedings as it gradually reopens its restaurants that were closed because of the coronavirus outbreak. "The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company's history and get back to the business of delivering memories, entertainment, and pizzas for another 40 years and beyond," David McKillips, CEC Entertainment CEO, said in a news release. GNC Health and wellness retailer GNC has filed for Chapter 11 bankruptcy and will close as many as 1,200 stores. The company plans to emerge from bankruptcy in the fall. GNC currently has about 5,800 stores in the U.S., including dozens in Connecticut, and also sells products in approximately 1,200 Rite Aid stores. Modell's Just before the onset of the pandemic, Modell's Sporting Goods filed for Chapter 11 bankruptcy and announced it would be closing all locations. But even before the coronavirus outbreak, the retailer had decided it was picking up it stakes at its four Connecticut locations, and 20 more across the Northeast. The Children's Place Clothing retailer The Children's Place, with nine locations in Connecticut, said it will close 300 stores over the next 20 months as part of a plan to dramatically reduce its presence in shopping malls across the country. [*] Tom McCabe Joins Newpoint Advisors as Managing Director ----------------------------------------------------------- Newpoint Advisors Corporation, a financial advisory firm dedicated to troubled small to midsized businesses, on Aug. 7 disclosed that Tom McCabe has joined as a Managing Director in the Chicago office. McCabe has nearly 30 years of executive financial leadership experience. "We are excited about Tom joining," said Newpoint president Ken Yager. "Tom has a great track record as financial advisor to various stakeholders and has served as interim CFO/COO and CRO." For the past 20 years, McCabe has focused on turnaround and insolvency matters, mostly with industrial, healthcare, and retail/distribution clients. "It’s a great opportunity to be with Newpoint at this time," said Mr. McCabe. "We are focusing on helping those companies and their lenders who are especially vulnerable." McCabe is a Certified Public Accountant and holds a Bachelor of Business Administration in Accounting from the University of Notre Dame and a Master of Business Administration in Finance from the University of Chicago Booth School of Business. Newpoint Advisors Corporation -- https://newpointadvisors.us/ -- is a financial advisory firm dedicated to improving troubled and financially underperforming businesses with revenues of $1 million and $50 million and/or credits of less than $10 million. Founded in 2013, the company has offices in offices in more than a dozen major cities across the United States and Canada. [^] BOND PRICING: For the Week from August 3 to 7, 2020 ------------------------------------------------------- Company Ticker Coupon Bid Price Maturity ------- ------ ------ --------- -------- 24 Hour Fitness Worldwide HRFITW 8.000 0.250 6/1/2022 24 Hour Fitness Worldwide HRFITW 8.000 2.260 6/1/2022 AMC Entertainment Holdings AMC 5.750 24.147 6/15/2025 AMC Entertainment Holdings AMC 5.875 20.781 11/15/2026 AMC Entertainment Holdings AMC 6.125 23.013 5/15/2027 Ahern Rentals Inc AHEREN 7.375 43.972 5/15/2023 Ahern Rentals Inc AHEREN 7.375 44.304 5/15/2023 Ally Financial Inc ALLY 2.700 99.315 8/15/2020 America West Airlines 2001-1 Pass Through Trust AAL 7.100 86.000 4/2/2021 American Airlines 2011-1 Class A Pass Through Trust AAL 5.250 86.040 1/31/2021 American Airlines 2013-1 Class B Pass Through Trust AAL 5.625 85.134 1/15/2021 American Energy- Permian Basin LLC AMEPER 12.000 2.750 10/1/2024 American Energy- Permian Basin LLC AMEPER 12.000 2.458 10/1/2024 American Energy- Permian Basin LLC AMEPER 12.000 2.458 10/1/2024 Anheuser-Busch InBev Worldwide Inc ABIBB 2.500 103.874 7/15/2022 BPZ Resources Inc BPZR 6.500 3.017 3/1/2049 Basic Energy Services Inc BASX 10.750 13.172 10/15/2023 Basic Energy Services Inc BASX 10.750 12.747 10/15/2023 Bon-Ton Department Stores BONT 8.000 9.463 6/15/2021 Bristow Group Inc/old BRS 6.250 6.372 10/15/2022 Bristow Group Inc/old BRS 4.500 6.375 6/1/2023 Buffalo Thunder Development Authority BUFLO 11.000 50.125 12/9/2022 CBL & Associates LP CBL 5.950 25.313 12/15/2026 CBL & Associates LP CBL 5.250 22.063 12/1/2023 CBL & Associates LP CBL 4.600 23.782 10/15/2024 CEC Entertainment Inc CEC 8.000 12.250 2/15/2022 Calfrac Holdings LP CFWCN 8.500 10.497 6/15/2026 Calfrac Holdings LP CFWCN 8.500 10.420 6/15/2026 California Resources Corp CRC 8.000 2.000 12/15/2022 California Resources Corp CRC 8.000 2.625 12/15/2022 California Resources Corp CRC 6.000 1.952 11/15/2024 California Resources Corp CRC 5.500 0.250 9/15/2021 California Resources Corp CRC 6.000 1.728 11/15/2024 Callon Petroleum Co CPE 6.250 32.449 4/15/2023 Callon Petroleum Co CPE 6.125 30.337 10/1/2024 Callon Petroleum Co CPE 8.250 31.166 7/15/2025 Callon Petroleum Co CPE 6.125 28.959 10/1/2024 Callon Petroleum Co CPE 6.125 28.959 10/1/2024 Chaparral Energy Inc CHAP 8.750 8.000 7/15/2023 Chaparral Energy Inc CHAP 8.750 8.000 7/15/2023 Chesapeake Energy Corp CHK 11.500 11.000 1/1/2025 Chesapeake Energy Corp CHK 5.500 4.412 9/15/2026 Chesapeake Energy Corp CHK 5.750 3.500 3/15/2023 Chesapeake Energy Corp CHK 7.000 5.000 10/1/2024 Chesapeake Energy Corp CHK 11.500 9.000 1/1/2025 Chesapeake Energy Corp CHK 8.000 5.000 1/15/2025 Chesapeake Energy Corp CHK 8.000 4.938 6/15/2027 Chesapeake Energy Corp CHK 4.875 3.500 4/15/2022 Chesapeake Energy Corp CHK 5.375 5.000 6/15/2021 Chesapeake Energy Corp CHK 7.500 4.000 10/1/2026 Chesapeake Energy Corp CHK 8.000 3.500 3/15/2026 Chesapeake Energy Corp CHK 8.000 3.242 3/15/2026 Chesapeake Energy Corp CHK 8.000 3.242 3/15/2026 Chesapeake Energy Corp CHK 8.000 3.851 6/15/2027 Chesapeake Energy Corp CHK 8.000 3.851 6/15/2027 Chesapeake Energy Corp CHK 8.000 4.038 1/15/2025 Chesapeake Energy Corp CHK 8.000 4.038 1/15/2025 Chinos Holdings Inc CNOHLD 7.000 0.001 N/A Chinos Holdings Inc CNOHLD 7.000 0.569 N/A Citigroup Inc C 5.375 99.987 8/9/2020 Dean Foods Co DF 6.500 2.250 3/15/2023 Dean Foods Co DF 6.500 1.311 3/15/2023 Denbury Resources Inc DNR 9.000 42.418 5/15/2021 Denbury Resources Inc DNR 6.375 13.750 12/31/2024 Denbury Resources Inc DNR 4.625 2.125 7/15/2023 Denbury Resources Inc DNR 9.250 42.199 3/31/2022 Denbury Resources Inc DNR 5.500 1.047 5/1/2022 Denbury Resources Inc DNR 9.000 41.359 5/15/2021 Denbury Resources Inc DNR 9.250 41.877 3/31/2022 Denbury Resources Inc DNR 7.500 44.000 2/15/2024 Denbury Resources Inc DNR 6.375 13.750 12/31/2024 Denbury Resources Inc DNR 7.500 41.447 2/15/2024 Diamond Offshore Drilling DOFSQ 7.875 11.000 8/15/2025 Diamond Offshore Drilling DOFSQ 4.875 11.000 11/1/2043 Diamond Offshore Drilling DOFSQ 5.700 11.500 10/15/2039 Diamond Offshore Drilling DOFSQ 3.450 12.250 11/1/2023 ENSCO International Inc VAL 7.200 12.048 11/15/2027 EP Energy LLC / Everest Acquisition Finance Inc EPENEG 7.750 27.000 5/15/2026 EP Energy LLC / Everest Acquisition Finance Inc EPENEG 7.750 27.000 5/15/2026 EnLink Midstream Partners ENLK 6.000 39.000 N/A Energy Conversion Devices ENER 3.000 7.875 6/15/2013 Energy Future Competitive Holdings Co LLC TXU 1.053 0.072 1/30/2037 Exela Intermediate LLC / Exela Finance Inc EXLINT 10.000 24.435 7/15/2023 Exela Intermediate LLC / Exela Finance Inc EXLINT 10.000 24.602 7/15/2023 Extraction Oil & Gas Inc XOG 7.375 22.500 5/15/2024 Extraction Oil & Gas Inc XOG 5.625 22.500 2/1/2026 Extraction Oil & Gas Inc XOG 5.625 22.400 2/1/2026 Extraction Oil & Gas Inc XOG 7.375 16.050 5/15/2024 FTS International Inc FTSINT 6.250 28.807 5/1/2022 Federal Farm Credit Banks Funding Corp FFCB 1.490 99.851 5/11/2029 Federal Farm Credit Banks Funding Corp FFCB 0.230 99.342 8/12/2021 Federal Home Loan Banks FHLB 1.840 99.326 2/10/2025 Federal Home Loan Banks FHLB 2.680 99.590 8/13/2030 Federal Home Loan Banks FHLB 0.770 99.646 5/13/2024 Federal Home Loan Banks FHLB 2.790 99.671 2/12/2035 Federal Home Loan Mortgage FHLMC 1.800 99.509 2/12/2024 Federal Home Loan Mortgage FHLMC 1.500 99.597 8/10/2021 Federal National Mortgage Association FNMA 1.700 99.681 8/10/2020 Fleetwood Enterprises Inc FLTW 14.000 3.557 12/15/2011 Forum Energy Technologies FET 6.250 44.527 10/1/2021 Frontier Communications FTR 11.000 38.750 9/15/2025 Frontier Communications FTR 10.500 39.750 9/15/2022 Frontier Communications FTR 8.750 32.750 4/15/2022 Frontier Communications FTR 7.125 32.484 1/15/2023 Frontier Communications FTR 7.625 37.500 4/15/2024 Frontier Communications FTR 6.250 34.500 9/15/2021 Frontier Communications FTR 9.250 30.520 7/1/2021 Frontier Communications FTR 11.000 38.383 9/15/2025 Frontier Communications FTR 10.500 39.455 9/15/2022 Frontier Communications FTR 10.500 39.455 9/15/2022 Frontier Communications FTR 11.000 38.383 9/15/2025 General Electric Co GE 5.000 79.469 N/A Goodman Networks Inc GOODNT 8.000 19.875 5/11/2022 Great Western Petroleum LLC / Great Western Finance Corp GRTWST 9.000 57.190 9/30/2021 Great Western Petroleum LLC / Great Western Finance Corp GRTWST 9.000 57.154 9/30/2021 Grizzly Energy LLC VNR 9.000 6.000 2/15/2024 Grizzly Energy LLC VNR 9.000 6.000 2/15/2024 Guitar Center Inc GTRC 9.500 69.973 10/15/2021 Guitar Center Inc GTRC 9.500 70.855 10/15/2021 Hertz Corp/The HTZ 6.250 39.000 10/15/2022 Hi-Crush Inc HCR 9.500 3.500 8/1/2026 Hi-Crush Inc HCR 9.500 11.000 8/1/2026 High Ridge Brands Co HIRIDG 8.875 3.500 3/15/2025 High Ridge Brands Co HIRIDG 8.875 2.865 3/15/2025 HighPoint Operating Corp HPR 7.000 25.558 10/15/2022 HighPoint Operating Corp HPR 8.750 26.715 6/15/2025 International Wire Group ITWG 10.750 84.067 8/1/2021 International Wire Group ITWG 10.750 84.067 8/1/2021 J Crew Brand LLC / J Crew Brand Corp JCREWB 13.000 50.580 9/15/2021 JC Penney Corp Inc JCP 6.375 0.725 10/15/2036 JC Penney Corp Inc JCP 5.875 37.970 7/1/2023 JC Penney Corp Inc JCP 8.625 0.625 3/15/2025 JC Penney Corp Inc JCP 7.400 0.700 4/1/2037 JC Penney Corp Inc JCP 7.125 0.312 11/15/2023 JC Penney Corp Inc JCP 5.875 38.165 7/1/2023 JC Penney Corp Inc JCP 8.625 2.500 3/15/2025 Jonah Energy LLC / Jonah Energy Finance Corp JONAHE 7.250 12.250 10/15/2025 Jonah Energy LLC / Jonah Energy Finance Corp JONAHE 7.250 15.223 10/15/2025 K Hovnanian Enterprises Inc HOV 5.000 10.908 2/1/2040 K Hovnanian Enterprises Inc HOV 5.000 10.908 2/1/2040 LSC Communications Inc LKSD 8.750 18.000 10/15/2023 LSC Communications Inc LKSD 8.750 2.875 10/15/2023 Lexicon Pharmaceuticals Inc LXRX 5.250 62.244 12/1/2021 Liberty Media Corp LMCA 2.250 48.000 9/30/2046 Lonestar Resources America LONE 11.250 16.288 1/1/2023 Lonestar Resources America LONE 11.250 14.817 1/1/2023 MAI Holdings Inc MAIHLD 9.500 16.137 6/1/2023 MAI Holdings Inc MAIHLD 9.500 16.137 6/1/2023 MAI Holdings Inc MAIHLD 9.500 16.137 6/1/2023 MF Global Holdings Ltd MF 9.000 15.625 6/20/2038 MF Global Holdings Ltd MF 6.750 15.625 8/8/2016 Mashantucket Western Pequot Tribe MASHTU 7.350 15.658 7/1/2026 McClatchy Co/The MNIQQ 6.875 2.500 3/15/2029 McClatchy Co/The MNIQQ 6.875 11.513 7/15/2031 McClatchy Co/The MNIQQ 7.150 1.976 11/1/2027 Men's Wearhouse Inc/The TLRD 7.000 1.290 7/1/2022 Men's Wearhouse Inc/The TLRD 7.000 2.765 7/1/2022 Morgan Stanley MS 2.120 97.153 9/1/2020 Murray Energy Corp MURREN 12.000 0.635 4/15/2024 Murray Energy Corp MURREN 12.000 0.635 4/15/2024 NWH Escrow Corp HARDWD 7.500 46.500 8/1/2021 NWH Escrow Corp HARDWD 7.500 46.500 8/1/2021 Nabors Industries Inc NBR 0.750 29.750 1/15/2024 Neiman Marcus Group LLC/The NMG 7.125 8.500 6/1/2028 Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG NMG 8.000 5.750 10/25/2024 Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG NMG 14.000 29.500 4/25/2024 Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG NMG 8.750 3.312 10/25/2024 Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG NMG 8.000 5.604 10/25/2024 Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG NMG 8.750 5.758 10/25/2024 Neiman Marcus Group LTD LLC / Neiman Marcus Group LLC / Mariposa Borrower / NMG NMG 14.000 28.513 4/25/2024 Neiman Marcus Group Ltd LLC NMG 8.000 58.747 10/15/2021 Neiman Marcus Group Ltd LLC NMG 8.750 53.625 10/15/2021 Neiman Marcus Group Ltd LLC NMG 8.000 58.747 10/15/2021 Neiman Marcus Group Ltd LLC NMG 8.750 53.625 10/15/2021 Nine Energy Service Inc NINE 8.750 45.880 11/1/2023 Nine Energy Service Inc NINE 8.750 45.844 11/1/2023 Nine Energy Service Inc NINE 8.750 45.880 11/1/2023 Northwest Hardwoods Inc HARDWD 7.500 35.000 8/1/2021 Northwest Hardwoods Inc HARDWD 7.500 33.977 8/1/2021 OMX Timber Finance Investments II LLC OMX 5.540 1.660 1/29/2020 Oasis Petroleum Inc OAS 2.625 16.500 9/15/2023 Oasis Petroleum Inc OAS 6.875 18.266 3/15/2022 Oasis Petroleum Inc OAS 6.875 19.165 1/15/2023 Oasis Petroleum Inc OAS 6.250 18.270 5/1/2026 Oasis Petroleum Inc OAS 6.500 19.094 11/1/2021 Oasis Petroleum Inc OAS 6.250 18.369 5/1/2026 Optimas OE Solutions Holding LLC / Optimas OE Solutions Inc OPTOES 8.625 50.500 6/1/2021 Optimas OE Solutions Holding LLC / Optimas OE Solutions Inc OPTOES 8.625 47.727 6/1/2021 PHH Corp PHH 6.375 69.472 8/15/2021 PNC Financial Services Group Inc/The PNC 4.375 99.878 8/11/2020 Party City Holdings Inc PRTY 6.625 16.132 8/1/2026 Party City Holdings Inc PRTY 6.125 15.350 8/15/2023 Party City Holdings Inc PRTY 6.625 15.611 8/1/2026 Party City Holdings Inc PRTY 6.125 16.907 8/15/2023 Pride International LLC VAL 7.875 6.376 8/15/2040 Renco Metals Inc RENCO 11.500 24.875 7/1/2003 Revlon Consumer Products REV 5.750 31.251 2/15/2021 Revlon Consumer Products REV 6.250 17.267 8/1/2024 Rolta LLC RLTAIN 10.750 6.359 5/16/2018 SESI LLC SPN 7.125 34.163 12/15/2021 SESI LLC SPN 7.125 40.250 12/15/2021 SESI LLC SPN 7.750 38.020 9/15/2024 SanDisk LLC SNDK 0.500 83.687 10/15/2020 Sears Holdings Corp SHLD 6.625 9.000 10/15/2018 Sears Holdings Corp SHLD 8.000 1.382 12/15/2019 Sears Holdings Corp SHLD 6.625 4.721 10/15/2018 Sears Roebuck Acceptance SHLD 7.500 0.468 10/15/2027 Sears Roebuck Acceptance SHLD 7.000 0.445 6/1/2032 Sears Roebuck Acceptance SHLD 6.750 0.673 1/15/2028 Sears Roebuck Acceptance SHLD 6.500 0.439 12/1/2028 Sempra Texas Holdings Corp TXU 5.550 13.500 11/15/2014 Summit Midstream Partners LP SMLP 9.500 14.875 N/A Tapstone Energy LLC / Tapstone Energy Finance Corp TAPENE 9.750 0.717 6/1/2022 Tapstone Energy LLC / Tapstone Energy Finance Corp TAPENE 9.750 0.717 6/1/2022 Teligent Inc/NJ TLGT 4.750 40.026 5/1/2023 TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019 Tesla Energy Operations TSLAEN 3.600 90.000 11/5/2020 Transworld Systems Inc TSIACQ 9.500 27.000 8/15/2021 Ultra Resources Inc/US UPL 11.000 5.750 7/12/2024 Ultra Resources Inc/US UPL 7.125 0.250 4/15/2025 Ultra Resources Inc/US UPL 7.125 0.479 4/15/2025 Unit Corp UNTUS 6.625 14.500 5/15/2021 Voyager Aviation Holdings LLC / Voyager Finance Co VAHLLC 8.500 72.487 8/15/2021 Voyager Aviation Holdings LLC / Voyager Finance Co VAHLLC 8.500 72.753 8/15/2021 Washington Prime Group LP WPG 6.450 37.041 8/15/2024 Whiting Petroleum Corp WLL 6.625 17.938 1/15/2026 Whiting Petroleum Corp WLL 5.750 18.500 3/15/2021 Whiting Petroleum Corp WLL 6.250 18.375 4/1/2023 Whiting Petroleum Corp WLL 6.625 17.953 1/15/2026 Whiting Petroleum Corp WLL 6.625 17.953 1/15/2026 Windstream Services LLC / Windstream Finance Corp WIN 10.500 5.000 6/30/2024 Windstream Services LLC / Windstream Finance Corp WIN 9.000 4.738 6/30/2025 Windstream Services LLC / Windstream Finance Corp WIN 7.500 5.000 6/1/2022 Windstream Services LLC / Windstream Finance Corp WIN 6.375 2.090 8/1/2023 Windstream Services LLC / Windstream Finance Corp WIN 6.375 5.000 8/1/2023 Windstream Services LLC / Windstream Finance Corp WIN 8.750 2.750 12/15/2024 Windstream Services LLC / Windstream Finance Corp WIN 9.000 1.910 6/30/2025 Windstream Services LLC / Windstream Finance Corp WIN 10.500 3.492 6/30/2024 Windstream Services LLC / Windstream Finance Corp WIN 8.750 1.202 12/15/2024 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***