/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/200904.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, September 4, 2020, Vol. 24, No. 247 Headlines ABRAXAS PETROLEUM: Egan-Jones Lowers Sr. Unsecured Ratings to CCC AEROMEXICO: U.S. Court Authorizes the Return of Leased Aircraft ALASKA COMMUNICATIONS: Egan-Jones Cuts Sr. Unsecured Ratings to B- ALBANY MOLECULAR: S&P Alters Outlook to Stable, Affirms 'B-' ICR AMC NETWORKS: S&P Affirms 'BB' ICR; Outlook Stable AMERICAN AIRLINES: Said to Be Unlikely to File Bankruptcy This Year AMSTED INDUSTRIES: S&P Affirms 'BB' ICR; Outlook Stable ARCHDIOCESE OF NEW ORLEANS: Panel Seeks to Hire Expert Consultant ASPEN CLUB & SPA: Court Denies Proposal for $140M Loan BMC STOCK HOLDINGS: S&P Alters Outlook to Positive, Affirms BB- ICR BOYCE HYDRO: Seeks Approval to Hire Burgoyne as Appraiser BOYCE HYDRO: Taps Steinhardt Pesick as Legal Counsel BREW CREW: Seeks Approval to Hire Brady & Conner as Legal Counsel BRIGHT MOUNTAIN: Appoints Edward Cabanas as CFO BRIGHT MOUNTAIN: Receives $3.5 Million from Units Offering BRINKER INTERNATIONAL: Egan-Jones Cuts Sr. Unsec. Ratings to CCC BRINTON APARTMENTS: S&P Places 'BB-' Bond Rating on Watch Negative BUILDERS FIRSTSOURCE: S&P Alters Outlook to Pos., Affirms BB- ICR CALIFORNIA RESOURCES CORP: Owes Kern County $26M Back Taxes CASTLETON CORNER: Taps Bose McKinney as Bankruptcy Counsel CHARLES RIVER: Egan-Jones Hikes Senior Unsecured Ratings to BB CINEMARK HOLDINGS: Egan-Jones Lowers Sr. Unsecured Ratings to CCC CLARENCE H. MONTGOMERY: $236K Sale of Springfield Property Approved DAIRY FARMERS: Court Denies Request to Reject Antitrust Suit DECO ENTERPRISES: Seeks Continued Use of Cash Collateral DICK'S SPORTING: Egan-Jones Hikes Senior Unsecured Ratings to BB DIOCESE OF SYRACUSE: Committee Taps Saunders Kahler as Counsel FAIRFAX COUNTY REDEVELOPMENT: S&P Alters Bond Outlook to Stable FIELDWOOD ENERGY: Seeks to Hire Weil Gotshal as Legal Counsel GB SCIENCES: Incurs $1.8 Million Net Loss in First Quarter GOGO INC: Moody's Alters Outlook on Caa1 CFR to Positive GROM SOCIAL: Incurs $953K Net Loss in Second Quarter GRUPO AEROMEXICO: Court Approves 19 Aircraft Lease Termination HARSCO CORP: Egan-Jones Cuts Senior Unsecured Ratings to B+ HERTZ CORP: Gets Court Approval to Sell 182,000 Vehicles HINTONS5 LLC: Seeks to Hire Genova & Malin as Legal Counsel HOLOGENIX LLC: Seeks Approval to Tap The Colony Group as Accountant IDAHO COLLEGE: S&P Cuts Ratings on 2017A, 2017B Bonds to 'BB+' INTERDIGITAL WIRELESS: Egan-Jones Cuts FC Unsecured Rating to BB+ IONIS PHARMACEUTICALS: Egan-Jones Hikes Sr. Unsec. Ratings to BB J.C. PENNEY: Hires Financial Advisor for Independent Directors J.C. PENNEY: Lays Off 94 Workers at Regency Square Mall J2 GLOBAL: Egan-Jones Hikes Senior Unsecured Ratings to BB- JAGUAR HEALTH: Believes Stockholders' Equity Tops $5M as of Sept. 2 JOHN VARVATOS: Court Approves Asset Sale to Lender JULIE BANDEMER: Seeks Court Approval to Hire Bankruptcy Attorney KIDS FIRST: Case Summary & 20 Largest Unsecured Creditors LAKELAND TOURS: Gets Court OK to Access DIP Loan for Refunds LATAM AIRLINES: Second Quarter Revenue Down 76% LOOT CRATE: Creditors Want Case Converted to Chapter 7 Liquidation LTI HOLDINGS: S&P Upgrades ICR to 'B-'; Outlook Stable LUCKY BRAND: Committee Hires Alvarez & Marsal as Financial Advisor LUCKY BRAND: Committee Hires Pachulski Stang as Legal Counsel MASON JAR: Seeks to Hire Van Horn Law Group as Legal Counsel MDI CREATIVE: Seeks to Tap Rountree Leitman as Legal Counsel NEIMAN MARCUS: Closes Stores at Hudson Yards NEKTAR THERAPEUTICS: Egan-Jones Cuts Sr. Unsecured Ratings to CCC NORTHERN DYNASTY: Names Westerlund to VP, Investor Relations Post OASIS PETROLEUM: Egan-Jones Lowers Senior Unsecured Ratings to CC OCCIDENTAL PETROLEUM: Egan-Jones Cuts Sr. Unsecured Ratings to B+ ODYSSEY ENGINES: Taps Pat Duggins Consulting as Appraiser OFFICE DEPOT: Egan-Jones Lowers Senior Unsecured Ratings to CCC+ OMNIQ CORP: Gets $1.3M Orders for Mobile Data Collection Devices OMNIQ CORP: Incurs $1.99 Million Net Loss in Second Quarter ONEWEB GLOBAL: Seeks to Hire Grant Thornton as Tax Consultant ONEWEB GLOBAL: Taps Dixon Hughes to Provide Tax Consulting Services OUTFRONT MEDIA: Egan-Jones Lowers Senior Unsecured Ratings to B PACIFICO NATIONAL: Case Summary & 20 Largest Unsecured Creditors PERRY FARMS: Seeks to Hire Ivey McClellan as Bankruptcy Counsel PG&E CORP: Canyon Capital Appeals Bankruptcy Plan Approval PLAINS ALL: Egan-Jones Lowers Senior Unsecured Ratings to BB- PLANTERS EXCHANGE: Seeks to Hire Allen P. Turnage as Legal Counsel PLUM CIRCLE: Chapter 11 Trustee Taps Trenam as Legal Counsel PRESSER CONSTRUCTION: Files Emergency Bid to Use Cash Collateral PROFESSIONAL INVESTORS: Investors Send Casey Units to Bankruptcy PURDUE PHARMA: Bankruptcy Case Should be Finished by February RALPH LAUREN: Egan-Jones Lowers Senior Unsecured Ratings to BB+ REMORA PETROLEUM: Seeks to Hire Hunton Andrews as Legal Counsel RLCH INC: Seeks Approval to Tap Herrick Feinstein as Legal Counsel RLCH INC: Seeks Court Approval to Hire CRO ROYAL CARIBBEAN CRUISES: S&P Lowers ICR to 'B+'; Outlook Negative ROYAL CARIBBEAN: Egan-Jones Lowers Senior Unsecured Ratings to B SABLE PERMIAN: Committee Seeks to Tap Mani Little as Counsel SAXON SHOES: Seeks to Hire Tavenner & Beran as Legal Counsel SEVEN STARS: Seeks to Hire Brian K. McMahon as Legal Counsel SIRINE LLC: Seeks to Hire Barry A. Friedman as Legal Counsel SMART & FINAL: Moody's Hikes CFR to B2, Outlook Stable SUMMIT MIDSTREAM: Moody's Cuts CFR to B3, Outlook Negative SUNESIS PHARMACEUTICALS: Effects 1-for-10 Reverse Stock Split SYSCO CORPORATION: Egan-Jones Cuts Senior Unsecured Ratings to BB TAILORED BRANDS: Sussman & Moore Represents Utility Companies TNT CRANE: Morris, Willkie Represent Cross-Holder Group UCAST LLC: Case Summary & 20 Largest Unsecured Creditors UNIFI INCORPORATED: Egan-Jones Lowers Sr. Unsecured Ratings to B UNITED WESTERN: 10th Circ. Declines Refund Row Rehearing VALLEY FARM: Case Summary & 20 Largest Unsecured Creditors WARNER CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors WEATHERFORD INTERNATIONAL: S&P Affirms 'CCC' ICR; Outlook Negative WISE ENTERPRISE: Seeks to Tap Creviston Realty as Broker WYNN RESORTS: Egan-Jones Lowers Senior Unsecured Ratings to B- YRC WORLDWIDE: Egan-Jones Lowers Senior Unsecured Ratings to CCC- [*] Congress Mulls Expanding Workers’ Protection in Bankruptcy [^] BOOK REVIEW: Mentor X ********* ABRAXAS PETROLEUM: Egan-Jones Lowers Sr. Unsecured Ratings to CCC ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Abraxas Petroleum Corporation to CCC from B-. EJR also downgraded the rating on commercial paper issued by the Company to C from B. Headquartered in San Antonio, Texas, Abraxas Petroleum Corporation operates as an exploration and production company. The Company explores and develops oil and natural gas. AEROMEXICO: U.S. Court Authorizes the Return of Leased Aircraft --------------------------------------------------------------- Abraham Gonzalez of Reuters reports that a U.S. judge has granted Mexican airline Aeromexico the right to return various leased aircraft as part of its bankruptcy restructuring process, according to court documents published on Thursday, July 23, 2020. Last June 2020, Aeromexico became the third airline in Latin America to file for Chapter 11 bankruptcy protection, after demand plummeted due to the coronavirus pandemic. About Aeromexico Grupo Aeromexico, S.A.B. de C.V. -- https://www.aeromexico.com/ -- is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, 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. Grupo Aeromexico 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 reported consolidated assets and liabilities of $1 billion to $10 billion. Timothy Graulich, Esq., of Davis Polk and Wardell LLP, serves as counsel to the Debtors. ALASKA COMMUNICATIONS: Egan-Jones Cuts Sr. Unsecured Ratings to B- ------------------------------------------------------------------ Egan-Jones Ratings Company, on August 25, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Alaska Communications Systems Group Inc. to B- from CCC+. EJR also downgraded the rating on commercial paper issued by the Company to B from C. Headquartered in Anchorage, Alaska, Alaska Communications Systems Group Inc. is a full-service telecommunications provider in Alaska. ALBANY MOLECULAR: S&P Alters Outlook to Stable, Affirms 'B-' ICR ---------------------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating on Albany, N.Y.-based contract development and manufacturing organization (CDMO) Albany Molecular Research Inc. (AMRI) and revised its outlook to stable from negative. Albany Molecular improved its operating performance, including top-line growth and increased profitability, following challenges in 2018 and 2019. In the past 12 months, its new management team significantly improved margins through cost cutting and plant optimization, including divesting certain unprofitable sites. Moreover, despite the coronavirus pandemic, the company achieved low-single-digit percentage revenue growth and positive momentum in its book-to-bill ratio, which was 1.24x for the trailing 12 months ended June 30, 2020. Demand for certain API offerings increased as a result of the coronavirus pandemic, and the company is contracted to support multiple vaccine frontrunners expected to generate incremental revenue in the back half of the year. AMRI's business of providing development and manufacturing services to the pharmaceutical industry is narrow in focus and small in scale. The company's scale limits its negotiating power with much larger pharmaceutical customers. Moreover, S&P believes it could face a competitive disadvantage gaining new business relative to larger competitors such as Catalent Inc. that provide a greater array of capabilities often preferred by larger pharmaceutical companies. Additionally, AMRI remains exposed to some variability in revenues as it, and other CDMO's with GMP-compliant facilities, face periodic shutdowns for regular maintenance and potential customer-related delays. These weaknesses are partially offset by the company's diverse products (active pharmaceutical ingredients, APIs; development; and manufacturing), customer base, and geographic presence. The long-lived nature of its manufacturing contracts and a focus on more advanced manufacturing processes (including biologics) also offset these weaknesses. Leverage has greatly improved, but sponsor ownership is likely to support an aggressive financial policy including an increased appetite for mergers and acquisitions. AMRI's improved performance reduced leverage from its peak of over 11x in 2018 to S&P's expectations for 2020 of about 6x-7x. "Although we are more confident in the sustainability of the business given the good cash balance and positive free cash flow generation, we expect the company could be opportunistic as it looks to expand its analytical and drug discovery businesses and its fill-finish capabilities," S&P said. The stable outlook reflects the company's decent competitive position, leverage in the 6x-7x range, good cash balances, full revolver availability, and improved cash flow generation. This should provide financial flexibility during the turnaround process, in the current economic environment, and amid COVID-19-related uncertainties. "We could lower the rating if there are unforeseen operational challenges such as extended maintenance shutdowns, customer-related delays, or an adverse impact from a resurgence of the pandemic. This scenario would likely result in prolonged free operating cash flow deficits or an EBITDA margin decline of about 400 basis points," S&P said. "We could raise the rating, if we gain confidence that revenue growth and margin expansion are sustainable. This would result in our expectations for leverage to remain below 6.5x and FOCF to debt of 3%-4% on a sustained basis," the rating agency said. AMC NETWORKS: S&P Affirms 'BB' ICR; Outlook Stable -------------------------------------------------- S&P Global Ratings affirmed all its ratings on U.S.–based cable network operator AMC Networks Inc. including its 'BB' issuer credit rating, but revised its business risk profile assessment to fair from satisfactory to reflect its view that the business has modestly weakened due to these secular market pressures. "We believe AMC's business positioning is somewhat weaker because of its exposure to secular declines in the linear TV ecosystem, a more adverse pricing environment, its focus on less favorable scripted general entertainment, and its weaker-than-expected international performance," S&P said. "Despite the weaker business risk assessment, we still expect AMC Networks to maintain its credit metrics well within our threshold for the 'BB' rating due to its stable cash flow generation and prudent financial policy," the rating agency said. AMC's pay TV subscription revenue will remain challenged due to secular cord-cutting trends and lower-than-industry average pricing opportunities. S&P believes that secular trends in the domestic linear TV industry such as cord cutting and the proliferation of direct to consumer (DTC) offerings are accelerating, creating an increasingly difficult operating environment for traditional cable networks. AMC Networks, in particular, has experienced substantial subscription revenue declines over the past several quarters due to accelerating industry subscriber declines and a more difficult pricing environment. S&P believed the company's subscriber declines, currently in the mid-single digit percentage area annually, are generally in line with the rest of the cable industry. However, unlike many of its peers in the industry, S&P believes AMC faces difficulties in fully offsetting these volume declines with price increases due to its focus on scripted shows and lack of more favorable content such as live sports and news, which command premium prices from advertisers due to live audiences and are more attractive to MVPDs. In addition, S&P believes AMC faces a worsening competitive environment as a linear TV content provider due to the increasing choices consumers have for general entertainment, especially in over-the-top (OTT) media service formats. As a result of these competitive dynamics, S&P expects AMC's linear subscription revenue to remain pressured over the next two years. The company, like its peers, has launched OTT services over the past few years to counter these secular declines in its linear TV business. However, AMC has taken a different approach than traditional general OTT entertainment and instead has developed a number of niche OTT offerings, such as Acorn TV and Shudder, focused on specific genres like British culture or horror. These offerings are small and limited in scope, but subscriber growth has accelerated recently due to increased in-home entertainment consumption during the pandemic. Long term, the company expects to increase annual revenue from these services to $500 million by 2024. "In our view, these services are incrementally positive for AMC's product diversification. However, there remains substantial uncertainty AMC will be able to scale these niche operations profitably such that it is able to generate revenues and cash flows substantial enough to replace the lost earnings in its declining linear TV services over the next several years," S&P said. S&P expects AMC's international operations will continue to be challenged due to growing secular pressures and poor economic conditions. International cable network operators continue to suffer from worsening secular trends of cord cutting and the gaining momentum of streaming video on demand (SVOD) services like Netflix overseas. In particular, AMC's international operations have performed below expectations and the company has recognized substantial impairment charges over the past 12 months. "In our view, these secular trends will only accelerate and we expect revenue and earnings will remain challenged over the next two years at least. For example, we believe secular trends will cause advertising revenues to remain pressured in key international markets like the U.K.," S&P said. "Furthermore, we expect AMC will face challenges expanding its business in less developed international markets like Latin America due to poor macroeconomic conditions. As a result, we view AMC's international exposure as a diminishing strength of the business, which supports our view that the business's scale and revenue diversity is not in line with its larger peers," S&P said. S&P expects AMC to maintain leverage at the lower end of the rating agency's range for the 'BB' rating due to good cash flow generation and prudent financial policy. Despite its revision to AMC's business assessment, S&P believes the company will continue to generate good cash flows in 2020 due to its cost management actions during the COVID-19 pandemic and moderated cash programming costs caused by delayed production schedules. Going forward, S&P expects the company will be able to sustain stable cash flow generation because of its multiyear MVPD agreements, recovering advertising revenues, and content licensing proceeds. In addition, S&P believes the company is actively managing its leverage and debt burden as exemplified by its lowered share repurchase activity during the pandemic and recent voluntary debt pay down. As a result, S&P expects AMC's leverage to remain toward the lower end of the rating agency's 3x-4x range for the 'BB' rating and its free operating cash flow (FOCF-to-debt) metrics to remain favorable in the 15%-20% range over the next two years. "The stable rating outlook on AMC reflects our expectation that the company will maintain adjusted leverage in the low-3x range over the next 12 months, supported by stable relationships with MVPDs and wide distribution of its pay TV networks. We expect EBITDA margins will remain in the high-20% area during the COVID-19 pandemic, reflecting volatile advertising revenues and continued pressure on its distribution revenues and international operations," S&P said. "We could lower our issuer credit rating on AMC over the next 12 months if the company's leverage approaches 4x due to weak operating performance. This would likely occur if subscriber losses at AMC are substantially greater than the industry average, its networks are dropped by a large distributor, or ratings and audiences declines at its flagship AMC network cause advertising revenue declines leading to EBITDA margin and cash flow erosion. "Although less likely, we could also lower the rating if AMC makes a large debt-financed acquisition or favorable shareholder measure that pushes leverage to 4x on a sustained basis," the rating agency said. An upgrade is unlikely over the next 12 months due to the challenging linear TV operating environment and operational uncertainty in AMC's growing OTT offerings. An upgrade would require a prudent financial policy whereby S&P would expect leverage to remain less than 3x on a sustained basis, stable or increasing reach of its cable network channels, and substantially increased scale in AMC OTT offerings such that they offset the operational pressures from the linear TV ecosystem. AMERICAN AIRLINES: Said to Be Unlikely to File Bankruptcy This Year ------------------------------------------------------------------- Seeking Alpha reports that Q2 was one of the worst quarters in American Airlines history. American Airlines continues to burn the most amount of cash on a daily basis and has the most amount of debt among its peers on its balance sheet. American Airlines (AAL) just had the worst quarter in its history and there’s a real possibility that the airline will file for Chapter 11 in the next couple of years. While the company managed to increase its levels of liquidity to $16.2 billion on a pro forma basis, its enormous debt burden will hinder the business from creating value and limit the company's future earnings power. For that reason, we believe that it's better to look for other opportunities with a more attractive risk/reward ratio and avoid American Airlines shares for the long-term, as its future is uncertain. The Debt Problem The problems at American Airlines started long before COVID-19. As we've mentioned in our latest article on the company, American Airlines started to aggressively leverage its balance sheet in the last few years and used the available funds for share repurchases instead of putting the business on a growth trajectory. As a result, American Airlines stock started to lose value since 2018, underperforming against the S&P 500 Index in the last couple of years: The latest earnings report for Q2 showed how bad things are inside the company. From April to June, American Airlines revenues of $1.62 billion were down 86.5% Y/Y, while its Non-GAAP EPS net loss was -$7.82 or $3.4 billion. While the load factor of 42.3% beat the consensus, it was still down 44.3% Y/Y, and passenger revenue per ASM was down 57.4% Y/Y. Even the cargo business was down 41% Y/Y. For comparison, United Airlines (UAL) also had a disastrous second quarter, but it managed to offset some of its losses by increasing the revenue from its cargo business by 36.3% Y/Y. The liquidity at the end of June was $10.2 billion. At the same time, American Airlines expects to receive $4.75 billion from the Department of Treasury under the CARES Act and is about to issue two senior secured notes, which will bring its liquidity in Q2 on a pro forma basis to $16.2 billion. Despite having such a high liquidity position, American Airlines continues to burn the most amount of money on a daily basis and has the most amount of debt among its peers on its balance sheet. Its average daily burn in Q2 was $55 million, way above Delta's $43 million or United’s $45 million. At the same time, its long-term debt stands at $28.69 billion, while it has $49 billion in liabilities. Considering American Airlines current state of affairs, there's no doubt that the company will continue to raise more debt and release more shares to dilute its existing shareholders and extend its lifetime. With the current cash burn rate, at least half of that pro forma liquidity will disappear by the end of the year, while the interest expenses will continue to put pressure on the company's future earnings power. American Airlines already used its AAdvantage loyalty program as collateral to secure the upcoming loan from the government and will use some of its intellectual property as collateral too to get another $1.2 billion in the upcoming months. Since the value of planes is not going to go up anytime soon, there might be no valuable collateral left to secure another loan, which American Airlines will undoubtedly need later on. However, it's unlikely that American Airlines will declare bankruptcy later this year. As long as the government continues to support the airline business, American Airlines will be able to survive in the short-term, especially since its outstanding debt starts to mature only in 2022. The problem is that servicing all this debt will become a major issue. The annual interest expenses are about to increase above $2 billion per year in the next couple of years. As a result, it will take a long time for the current shareholders to be rewarded, if ever, since most of the available cash will be going to creditors. At the same time, the company's debt will exceed its revenues in the next two years at the minimum. In normal times, American Airlines would’ve been able to cover that debt with cash flows, but in the current environment, it cannot generate a positive FCF. The only thing that could improve the situation is the spike in air travel, which is not going to happen anytime soon. Even if we get a vaccine for COVID-19 in the next few quarters, manufacturing and distributing it to everyone will become a logistical nightmare for pharmaceutical companies and governments around the world. Considering this, American Airlines will continue to show poor performance for a while, until the virus is fully contained. For that reason, we believe that American Airlines will be forced to declare bankruptcy in the next couple of years, as it will continue to disappoint investors and will not be able to service its debt, which will continue to increase with each quarter. We should not forget that back in 2011, America Airlines parent company AMR filed for bankruptcy after managing to survive the Great Recession of 2007-2008, but later failing to recover under a heavy debt burden. The same scenario could apply to American Airlines, as a large chunk of debt is about to mature in 2022 – 2023 and there's a high chance that the company will not be able to repay it. The only thing that keeps the airline alive at the moment is the government support. Without it, American Airlines will be insolvent. But eventually, taxpayers will no longer support the company and it will be required to deal with its problems on its own. And that's when the music will stop. By having the highest operating unit costs among its peers and the highest cash burn, American Airlines has no growth prospects. As the capacity in Q3 is expected to be down 60% Y/Y, we believe that it’s better to look for other opportunities with a more attractive risk/reward ratio and not purchase American Airlines shares for the long-term, as its future is uncertain. About American Airlines American Airlines Group Incorporated is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed on December 9, 2013, in the merger of AMR Corporation, the parent company of American Airlines, and US Airways Group, the parent company of US Airways. Before the Coronavirus pandemic, American Airlines offered customers 6,800 daily flights to more than 365 destinations in 61 countries from its hubs in Charlotte, Chicago, Dallas-Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. As of Dec. 31, 2018, the company operated a mainline fleet of 956 aircraft. The airline industry has been severely affected by the economic shutdowns and travel restrictions brought by the Coronavirus pandemic. AMSTED INDUSTRIES: S&P Affirms 'BB' ICR; Outlook Stable ------------------------------------------------------- S&P Global Ratings affirmed all ratings on Amsted Industries Inc., including its 'BB' issuer and issue-level credit ratings. S&P expects continued weakness in the company's end markets, leading to a decline in top-line in the mid-20% area in 2020, followed by a high-single-digit-percent recovery in 2021. The rail and vehicular end markets that Amsted serves have been significantly impacted by the COVID-19 related facility shutdowns at original equipment manufacturers (OEMs), leading to decreased demand for the company's products. These two segments comprised roughly 87% of the total revenues as of fiscal year 2019 (ending September 2019). Specifically, sales in the company's vehicular products segment were down about 31% for the nine months ended July 4, 2020. COVID-19 related closures, heavy-duty truck markets normalizing after peak production in fiscal 2019, lower light vehicle production, as well as decreased demand in Europe and China all contributed to Amsted's significant revenue decline in this segment. Additionally, over the same period, Amsted's rail segment was down about 22% due to material declines in North American OEM and aftermarket demand for truck and end-of-car components. Still, S&P anticipates some recovery in 2021, and forecast Amsted's sales to increase in the high-single-digit percent area in 2021. It believes the vehicular products segment will recover somewhat due to increased demand in the light vehicle and heavy-duty truck markets. "In our view, the total market for U.S. light vehicle sales in 2021 will increase 10%-20% in 2020, although it will still be below 2019 levels and we expect to see global sales recovery in heavy-duty trucks of up to 10% in 2021. Although the rail end market did not experience the same full scale shutdowns that were seen in the auto end market, we still expect demand for railcars to be low and for rail to be flat to down in 2021," S&P said. "Although, we believe S&P adjusted leverage will increase to the 3x-4x range in 2020 given end market weakness, we expect these measures to improve to the 2x-3x range in 2021 given our forecast for a moderate recovery. Given end market weakness expected for this year, EBITDA margins could contract in the low- to- mid-teens percent area on weaker volumes, before rebounding to the mid- to high-teens percent range in 2021 when demand for the company's products rebounds," the rating agency said. The company has implemented significant cost reduction and cash savings steps, including rightsizing workforce, reducing non-essential spending, reductions in base salaries, furloughs, and suspension of 401k match. S&P expects Amsted to continue generating strong free cash flow despite the economic downturn, due to its variable cost structure and forecast FOCF in the $300 million-$350 million range in 2020. "As a result, we anticipate S&P adjusted leverage will improve from the 3x-4x range in 2020 to the 2x-3x range in 2021," the rating agency said. S&P's measure of leverage includes a debt adjustment for the company's employee stock ownership (ESOP) obligation repurchase liability. Amsted has an ESOP ownership structure and, as such, is an employee-owned company. S&P has revised its debt adjustment to add back the company's reported potential aggregate ESOP repurchase obligation, which was $579.6 million as of July 4, 2020. It continues to believe the company's earnings and cash flow are sensitive to its highly cyclical end markets and very sizable ESOP share repurchase obligations. S&P believes that in cyclical downturns these obligations could precipitate a cash flow deficit and force the company to draw on its credit facility, which will weaken the company's credit metrics. In a downturn, the company's share price would likely fall, which would partially mitigate the amount drawn on its credit facility. The stable outlook on Amsted reflects S&P's expectation that the company's adjusted leverage will be in the 3x-4x range (including ESOP obligations), before reducing to the 2x-3x range in 2021. This incorporates S&P's expectation that the company will continue to generate good FOCF, and, together with its current excess cash reserves, should provide it with capacity to meet its ESOP share repurchase obligations over the next 12-18 months. "We could lower our ratings on the company if its adjusted debt to EBITDA approaches 4x. This could occur if the company experiences meaningful EBITDA contraction and/or if substantial ESOP redemptions meaningfully exceed its free cash flow generation, forcing the company to draw on its revolving credit facility. We could also lower the rating if the company's adjusted debt to EBITDA remains above 3x during more favorable operating conditions," S&P said. "Although unlikely over the next 12 months, we could raise our rating on Amsted if operating performance strengthens substantially, such that the company is able to reduce adjusted leverage below 1.5x (including ESOP obligations). Under this scenario, we would also anticipate relatively favorable economic conditions, as well as significant growth in the company's cyclical end markets," the rating agency said. ARCHDIOCESE OF NEW ORLEANS: Panel Seeks to Hire Expert Consultant ----------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 case of the Roman Catholic Church of the Archdiocese of New Orleans seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to employ Jon Conte, a professor at the University of Washington. Mr. Conte will serve as the committee's expert consultant on sexual abuse as well as expert witness. He will be paid at the rate of $575 per hour and will be reimbursed for work-related costs and expenses incurred. In court filings, Mr. Conte disclosed that he has no connection to Debtor, its creditors, the U.S. trustee or any other parties-in-interest. Mr. Conte can be reached at: Dr. Jon R. Conte University of Washington 4101 15th Avenue NE Seattle, WA 98105-6250 Telephone: (206) 543-1001 Email: contej@uw.edu About the 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 has tapped Pachulski Stang Ziehl & Jones, LLP and Locke Lord, LLP as its legal counsel, and Dr. Jon R. Conte as its expert consultant on sexual abuse and expert witness. ASPEN CLUB & SPA: Court Denies Proposal for $140M Loan ------------------------------------------------------ Rick Carroll, writing for Aspen Times, reports that a bankruptcy judge denied the Aspen Club and Spa ownership's proposal for a $140 million loan intended to save their redevelopment project and get them out over $100 million in debt to contractors, loan-note holders and other creditors. Delivered over a Zoom call, Judge Joseph Rosania Jr.'s ruling was a decision eagerly awaited by Aspen Club president and owner Michael Fox and his project team, whose attorneys argued the construction loan would allow them to satisfy their debts, which includes $26 million to contractors, and finish the project within two years. Work stopped on the project in September 2017 when contractors left the job site at 1450 Ute Ave., on the east side of Aspen, because they hadn't been paid. The proposed loan, which would have been provided by Florida-based lender EFO Financial, had been key to the club's emerging from Chapter 11 bankruptcy protection and restarting the project. "We're going to take a step back and talk to the creditors," Fox said after Rosania delivered his decision, "and the judge has given us an opportunity to come up with an alternate plan and take some time to figure out what the best next step is." Fox said they will not challenge Rosania's decision rejecting the loan. "I don't think we're going to appeal," he said. "We're going to work with the creditors and figure out the best path moving forward." Fox and his group have had the project site preserved, with 15 of its townhomes between 60% and 80% complete, six condominiums 30% complete, and the commercial component 30% complete, according to its reorganization plan. That includes the remodel of the 40,000-square-foot Aspen Club & Spa building, the construction of a 54,000-square-foot lodge with 20 timeshares, and 12 multi-family affordable-housing units. Rosania, during the course of a near 90-minute ruling, said he found Fox and other Aspen Club associates credible during their testimony last week regarding the proposed exit loan and business plan. Even so, Rosania suggested the proposed loan put secured creditors such as GPIF Aspen, owed between $35 million and $40 million, and Revere High Yield Fund, owed $12.2 million, at a greater risk of not being reimbursed. Along with the contractors that hold $26 million in mechanics' liens on the Aspen Club property, GPIF Aspen and Revere are the top priorities under the reorganization plan. The judge said he couldn't bless a loan where the new lender would hurdle the old creditors through what's referred to as "priming liens" in legal talk. "I wish I could, but I just can't make the leap to find adequate protection under the debtor’s particular business plan before the court will be provided," Rosania said. The coronavirus pandemic also influenced the judge's decision. During last week's testimony, witnesses for The Aspen Club appeared bullish on the local real estate market because of well-heeled people leaving the big cities for Aspen during the pandemic. Rosania said their arguments were persuasive, but the exit plan remained too risky for him to approve in such an uncertain economic climate. He said "whether the (real estate) frenzy will withstand the test of time" was another question. One of the primary opponents of the Aspen Club's reorganization plan has been GPIF Aspen, a limited liability corporation that formed in December 2017. That same month FirstBank, the provider of a $30 million construction loan to The Aspen Club in May 2016, conveyed the deed of trust on the property to GPIF Aspen after the club defaulted on the loan. "GPIF Aspen has fought tooth and nail," the judge remarked. Aspen Club's attorneys had argued that GPIF Aspen was making a play on the Aspen Club property because of its association with companies that own the Canyon Ranch luxury resorts in Tucson, Arizona, and Lenox, Massachusetts, and the Brown Palace hotel in Denver. Houston attorney Jason Cohen, who led GPIF Aspen's objections, said in a statement that the creditor has no designs to take the property. "GPIF is pleased that the Court has denied the extraordinary and unprecedented relief sought by Michael Fox in the name of the Aspen Club & Spa," Cohen said. "We are hopeful that the case can be quickly concluded and that GPIF, as well as the M&M lien claimants, can be paid in full. That is all GPIF has ever wanted." The Aspen Club once had as many as 1,500 members and 250 employees. It stopped its operations in April 2016 to make way for construction, which came after some seven years of negotiating with the city. About Aspen Club & Spa The Aspen Club & Spa, LLC, owns and operates a private membership club that offers high intensity interval training (HI2T), cardio, and yoga classes. Aspen Club & Spa sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 19-14158) on May 16, 2019. At the time of the filing, Aspen Club & Spa had estimated assets of less than $50,000 and liabilities of between $100 million and $500 million. On May 17, 2019, Aspen Club Redevelopment Company, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 19-bk-14200). Aspen Club Redevelopment is a wholly-owned subsidiary of Aspen Club & Spa. Judge Joseph G. Rosania Jr. oversees the cases. The Debtors tapped Markus Williams Young & Hunsicker LLC as their legal counsel. BMC STOCK HOLDINGS: S&P Alters Outlook to Positive, Affirms BB- ICR ------------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' issuer credit rating on BMC Stock Holdings Inc. (BMC). At the same time, S&P revised its outlook to positive from stable. The proposed combination of Builders FirstSource Inc. (BFS) and BMC will create the largest and broadest-based supplier to homebuilders in the U.S. while preserving good debt leverage. After the merger, BFS will have revenue in excess of $11 billion and pro forma EBITDA with S&P Global Ratings adjustments (for leases etc.) before synergies of just over $900 million, making it the largest building materials distributor focused on the homebuilding sector. Furthermore, the company will have a nationwide footprint, operating with 550 locations in 42 states. Pro forma debt leverage will be less than 2.5x (fully adjusted for cash and leases), giving the company significant financial flexibility in the event of a housing downturn. The company has identified $130 million - $150 million in synergies to be achieved over three years that could enhance already healthy cash flows and leverage. Homebuilding activity and remodeling spending have strengthened since the beginning of the COVID-19 pandemic and recession. The increased homebuilding and home improvement activities were because demand for suburban homes has increased and consumers have become more focused on improving their homes. As a result of this surge in demand, both Builders FirstSource and BMC Stock posted improved sales, EBITDA, and credit measures in the second quarter. The companies benefited not only from stable demand in their end markets, but also from expense control and cash preservation measures taken early in the recession (reduced travel, acquisition, and share repurchase expenditures) that have offset much of COVID-19-related expenses. For BFS, net sales increased 2.2% in the quarter as new sales from acquisitions offset a 2% organic sales decline while EBITDA improved 11.2%, reducing leverage to 2.6x. BMC posted a 3.5% increase in net sales and a 23% improvement in EBITDA to $90 million, reducing its debt leverage to only 1.8x. Furthermore, new home construction and remodeling activity have continued to increase in the third quarter, which leads S&P to believe that this performance will be sustained through the rest of 2020 and into 2021. "We do expect volatility to remain in BFS and BMC's earnings after the merger given cyclical housing markets, and we also expect some deterioration in leverage once acquisition activity resumes. BFS produced nearly $231 million of adjusted operating cash flow in the second quarter, much of which has remained on the balance sheet, while BMC produced about $143 million. We expect similar cash generation in the second half of 2020," S&P said. "While we expect demand market conditions for housing to remain healthy through 2021, we expect at some point the cyclicality inherent in housing construction markets will lead to lower earnings and higher leverage for the combined BFS," the rating agency said. The combination of BFS and BMC will benefit from being the largest distributor to homebuilders in the U.S., with sales of over $11 billion. The company enjoys economies of scale in its distribution network and can purchase more efficiently than smaller competitors. Both companies have been successful in raising their margins in recent years by implementing these efficiencies as well as by selling more value-added products and services to homebuilders. However, S&P's ratings also reflect the inherent earnings volatility and exposure to housing cycles. The positive outlook reflects the potential for a higher rating within 12 months of the proposed combination of BFS and BMC, reflecting the company's industry-leading size (pro forma sales of $11 billion), combined EBITDA of $900 million, and debt leverage of about 2.5x on a fully adjusted basis before synergies. The positive outlook also reflects currently strong market conditions for homebuilding and remodeling activity, which provides the potential for further growth in earnings if these conditions are sustained into 2021. "We could raise the rating on BFS over the next 12 months if the combined entity maintained debt to EBITDA below 3x in the current operating environment, which we believe could indicate good progress on the $130 million - $150 million of proposed synergies," S&P said. S&P views a downgrade as unlikely given the strength, size, and relatively low debt leverage of the proposed combination of companies. However, S&P could revise the outlook to stable if housing demand slowed such that: -- Combined debt leverage were to be sustained above 3x into 2021 with little prospect of recovery. This could occur if the companies experienced a 10%-15% decline in annual sales, with EBITDA margins declining to about 6%. -- The new BFS undertook an aggressive debt-financed acquisition and shareholder remuneration strategy such that leverage increased and were sustained above 3x. BOYCE HYDRO: Seeks Approval to Hire Burgoyne as Appraiser --------------------------------------------------------- Boyce Hydro, LLC and Boyce Hydro Power, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Burgoyne Appraisal Company, LLC to conduct an appraisal of four development properties owned by their affiliate, Boyce Michigan, LLC. The firm will receive a flat fee of $5,000 to prepare an appraisal report. David Burgoyne, president of Burgoyne Appraisal, will charge $350 per hour for appraisal services and $400 per hour for testimony at depositions, hearings and trial. His staff will be paid at the rate of $200 per hour. Burgoyne Appraisal 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: David E. Burgoyne Burgoyne Appraisal Company, LLC 400 Congdon Street Chelsea, MI 48118 Telephone: (734) 593-9160 About Boyce Hydro LLC Boyce Hydro, LLC and Boyce Hydro Power, LLC operate dams in Midland and Gladwin counties in Michigan. Boyce Hydro and Boyce Hydro Power sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Lead Case No. 20-21214) on July 31, 2020. Lee W. Mueller, co-managing member, signed the petitions. At the time of the filing, each Debtor had estimated assets of between $10 million and $50 million and liabilities of between $1 million and $10 million. Goldstein & McClintock LLP is Debtors' legal counsel. The Office of the U.S. Trustee appointed Mark H. Shapiro of Steinberg, Shapiro & Clark as the Subchapter V trustee in Debtors' Chapter 11 cases. BOYCE HYDRO: Taps Steinhardt Pesick as Legal Counsel ---------------------------------------------------- Boyce Hydro, LLC and Boyce Hydro Power, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of Michigan to employ Steinhardt Pesick & Cohen, P.C. to represent them in condemnation actions filed in Midland and Gladwin counties relating to four hydroelectric dams they lease and operate. H. Adam Cohen, Esq., and Jason Long, Esq., the firm's attorneys who will be providing the services, charge $500 per hour and $350 per hour, respectively. The firm's attorneys neither represent nor hold any interest adverse to Debtors and their estates, according to court filings. The firm can be reached through: H. Adam Cohen, Esq. Steinhardt Pesick & Cohen, P.C. 380 North Old Woodward Avenue, Suite 120 Birmingham, MI 48009 Telephone: (248) 646-0888 Facsimile: (248) 646-0887 Email: hacohen@spclaw.com About Boyce Hydro LLC Boyce Hydro, LLC and Boyce Hydro Power, LLC operate dams in Midland and Gladwin counties in Michigan. Boyce Hydro and Boyce Hydro Power sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Lead Case No. 20-21214) on July 31, 2020. Lee W. Mueller, co-managing member, signed the petitions. At the time of the filing, each Debtor had estimated assets of between $10 million and $50 million and liabilities of between $1 million and $10 million. Goldstein & McClintock LLP is Debtors' legal counsel. The Office of the U.S. Trustee appointed Mark H. Shapiro of Steinberg, Shapiro & Clark as the Subchapter V trustee in Debtors' Chapter 11 cases. BREW CREW: Seeks Approval to Hire Brady & Conner as Legal Counsel ----------------------------------------------------------------- Brew Crew Transportation, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Arkansas to employ Brady & Conner, PLLC as its legal counsel. The firm will provide these legal services: (a) Advise Debtor of its rights, powers and duties; (b) Assist Debtor in the negotiation and documentation of financing agreements, cash collateral orders and related transactions; (c) Investigate into the nature and validity of liens asserted against Debtor's property and give advice concerning the enforceability of said liens; (d) Take legal actions to recover property for the benefit of Debtor's estate; (e) Prepare legal papers and review financial reports; (f) Advise Debtor in connection with the formulation, negotiation and promulgation of a plan of reorganization and related documents; and (g) Perform other legal services necessary in the administration of Debtor's Chapter 11 case. The firm's hourly rates are as follows: Partners $300 Associates $175 Paralegals $45 - $55 In addition, the firm will seek reimbursement for work-related expenses incurred. The firm received a general retainer of $5,400. Of this amount, $1,717 was used to pay the filing fee while $2,800 will be used to pay pre-bankruptcy attorney's fees, leaving $883 in trust to apply against future attorney's fees. Donald Brady, Esq., disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Donald A. Brady, Esq. Brady & Conner, PLLC 3398 E Huntsville Rd. Fayetteville, AR 72701 Telephone: (479) 443-8080 About Brew Crew Transportation Brew Crew Transportation, LLC filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ark. Case No. 20-71846) on Aug. 24, 2020. At the time of the filing, Debtor disclosed assets of between $100,001 and $500,000 and liabilities of the same range. Judge Ben T. Barry oversees the case. Donald A. Brady, Esq., of Brady & Conner, PLLC, serves as Debtor's bankruptcy counsel. BRIGHT MOUNTAIN: Appoints Edward Cabanas as CFO ----------------------------------------------- Bright Mountain Media, Inc. appointed Edward A. Cabanas as the Company's chief financial officer on Sept. 1, 2020. Mr. Cabanas, age 49 served as the vice president-finance for ACAMS, L.L.C. (Association of Certified Anti-Money Laundering Specialists), a wholly-owned subsidiary of Adtalem Global Education (NYSE: ATGE) where he oversaw the finance function for the company and partnered with the operation focusing on sales management, international expansion and product development. From February 2017 until August 2018 Mr. Cabanas served as senior vice president, chief financial officer for the connectivity segment of Global Eagle Entertainment (NASDAQ: ENT) where he oversaw the global finance and accounting functions for a leading provider of satellite-based connectivity to the air, sea and remote land markets. From 2001 until 2016 Mr. Cabanas served in various senior finance and business development positions at Laureate Education (NASDAQ: LAUR). Mr. Cabanas received a BS in Public Accounting from Fordham University and obtained his CPA license (currently inactive) from The State of New York. There are no family relationships between Mr. Cabanas and any director, or executive officer of the Company. The Company's current chief financial officer, Alan Bergman will continue to remain with the Company and holds the position of Vice President of Finance. Pursuant to an Offer Letter, Mr. Cabanas will receive an annual base salary of $225,000. In addition to base salary, Mr. Cabanas is eligible to participate in all of the Company's Benefits Plans as are set forth in the Company's Employee Manual. In addition, Mr. Cabanas has been granted 100,000 options to purchase an equal number of shares of the Company's common stock. About Bright Mountain Based in Boca Raton, Fla., Bright Mountain Media, Inc. -- http://www.brightmountainmedia.com-- is a digital media holding company whose primary focus is connecting brands with consumers as a full advertising services platform. Bright Mountain Media's assets include an ad network, an ad exchange platform and 24 websites which are customized to provide its niche users, including active, reserve and retired military, law enforcement, first responders and other public safety employees with products, information and news that the Company believes may be of interest to them. Bright Mountain reported a net loss of $3.40 million for the year ended Dec. 31, 2019, compared to a net loss of $5.22 million for the year ended Dec. 31, 2018. As of June 30, 2020, the Company had $98.62 million in total assets, $29.33 million in total liabilities, and $69.29 million in total shareholders' equity. EisnerAmper LLP, in Iselin, New Jersey, the Company's auditor since 2018, issued a "going concern" qualification in its report dated May 14, 2020, citing that the Company has experienced recurring net losses, cash outflows from operating activities, and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. BRIGHT MOUNTAIN: Receives $3.5 Million from Units Offering ---------------------------------------------------------- Bright Mountain Media, Inc. completed the final tranche of its private placement offering on Aug. 28, 2020. The Offering was for a maximum of $5 million dollars. The Offering consisted of units, each Unit containing one share of common stock and one warrant exercisable for one share of Common Stock at an Offering Price of $.50 per unit. The Warrants are five-year Warrants to purchase one share of Common Stock at an exercise price of $0.75 per share. The Offering was to accredited investors who purchased an aggregate of 10,398,700 Units. The Company received an aggregate of proceeds of $3,537,828 and $1,661,522 was paid to Spartan Capital Securities a registered broker dealer. The Placement Agent also received warrants to purchase a total of 1,039,870 shares of Common Stock included in the Offering. All securities issued in the Offering were sold pursuant an exemption from registration under Section 4(a)(2) and Regulation D of the Securities Act of 1933. Securities issued in the Offering have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. About Bright Mountain Based in Boca Raton, Fla., Bright Mountain Media, Inc. -- http://www.brightmountainmedia.com/-- is a digital media holding company whose primary focus is connecting brands with consumers as a full advertising services platform. Bright Mountain Media's assets include an ad network, an ad exchange platform and 24 websites which are customized to provide its niche users, including active, reserve and retired military, law enforcement, first responders and other public safety employees with products, information and news that the Company believes may be of interest to them. Bright Mountain reported a net loss of $3.40 million for the year ended Dec. 31, 2019, compared to a net loss of $5.22 million for the year ended Dec. 31, 2018. As of June 30, 2020, the Company had $98.62 million in total assets, $29.33 million in total liabilities, and $69.29 million in total shareholders' equity. EisnerAmper LLP, in Iselin, New Jersey, the Company's auditor since 2018, issued a "going concern" qualification in its report dated May 14, 2020, citing that the Company has experienced recurring net losses, cash outflows from operating activities, and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. BRINKER INTERNATIONAL: Egan-Jones Cuts Sr. Unsec. Ratings to CCC ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Brinker International Inc. to CCC from B-. EJR also downgraded the rating on commercial paper issued by the Company to C from A3. Headquartered in Coppell, Texas, Brinker International, Inc. is a restaurant operator who owns, operates, or franchises establishments in the United States and Internationally. BRINTON APARTMENTS: S&P Places 'BB-' Bond Rating on Watch Negative ------------------------------------------------------------------ S&P Global Ratings placed its 'BB-' long-term rating on Pennsylvania Housing Finance Agency's series 2015A multifamily housing revenue bonds issued on behalf of the borrower, Brinton Apartments Penn LLC for the Brinton Manor Apartments and Brinton Towers Apartments Project, on CreditWatch with negative implications. The CreditWatch with negative implications is due primarily to the fiscal 2019 audited financial statements and operating data not being made available for the project. The failure to provide this information for the period ending Dec. 31, 2019 has several negative implications for the project. First, the borrower is in violation of the executed continuing disclosure agreement commitment to provide financial information, operating data, and audited financial statements (collectively, the annual information) in accordance with the Securities and Exchange Commission Rule 15c2-12. A notice of failure to file was posted to the Municipal Securities Rulemaking Board's (MSRB) Electronic Municipal Market Access (EMMA) website on June 25, 2020. Second, it reflects poorly on the management and governance of the project. And finally, without this information the ability for S&P to provide accurate and timely review of the project and the ability to maintain the rating is compromised, as discussed in its research, titled "How Quality And Timeliness of Information Are Incorporated Into U.S. Public Finance's Rating Process," published Oct. 25, 2016. The notice stated the borrower expected the annual information to be made available by the end of July. At the time of this report, the information has still not been made available or provided to S&P for its review of the project. Should the borrower fail to provide the annual information as committed in the executed continuing disclosure agreement within the 90-day CreditWatch period S&P could withdraw or suspend the rating. The rating on the bonds reflects implementation of S&P's "Methodology for Rating U.S. Public Finance Rental Housing Bonds," published on April 15, 2020. The rating is no longer under criteria observation. "We have analyzed the project's environmental, social, and governance risks relative to its ability to meet financial obligations. Our rating action incorporates our view regarding the health and safety risks posed by the COVID-19 pandemic, which have affected all affordable housing developments. Specifically, we have evaluated the risk of increasing expenses and decreases in rental revenue related to the social risks of the pandemic," S&P said. "We view governance risk associated with this project to be higher than those of peers and compared to the sector as a whole. We consider the environmental risks in line with our view of the sector as a whole," the rating agency said. BUILDERS FIRSTSOURCE: S&P Alters Outlook to Pos., Affirms BB- ICR ----------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' issuer credit rating on Builders FirstSource Inc. (BFS). At the same time, S&P revised its outlook to positive from negative. The proposed combination of BFS and BMC Stock Holdings Inc. (BMC) will create the largest and broadest-based supplier to homebuilders in the U.S., while preserving good debt leverage After the merger, BFS will have revenue in excess of $11 billion and pro forma EBITDA with S&P Global Ratings adjustments (for leases etc.) before synergies of just over $900 million, making it the largest building materials distributor focused on the homebuilding sector. Furthermore, the company will have a nationwide footprint, operating with 550 locations in 42 states. Pro forma debt leverage will be less than 2.5x (fully adjusted for cash and leases), giving the company significant financial flexibility in the event of a housing downturn. The company has identified $130 million - $150 million in synergies to be achieved over three years that could enhance already healthy cash flows and leverage. Homebuilding activity and remodeling spending have strengthened since the beginning of the COVID-19 pandemic and recession. The increased homebuilding and home improvement activities were because demand for suburban homes has increased and consumers have become more focused on improving their homes. As a result of this surge in demand, both Builders FirstSource and BMC Stock posted improved sales, EBITDA, and credit measures in the second quarter. The companies benefited not only from stable demand in their end markets, but expense control and cash preservation measures taken early in the recession (reduced travel, acquisition, and share repurchase expenditures) offset much of COVID-19 related expenses. For BFS, net sales increased 2.2% in the quarter as new sales from acquisitions offset a 2% organic sales decline while EBITDA improved 11.2%, reducing leverage to 2.6x. BMC posted a 3.5% increase in net sales and a 23% improvement in EBITDA to $90 million, reducing its debt leverage to only 1.8x. Furthermore, new home construction and remodeling activity have continued to increase in the third quarter, which leads S&P to believe that this performance will be sustained through the rest of 2020 and into 2021. "We do expect volatility to remain in BFS and BMC's earnings after the merger given cyclical housing markets, and we also expect some deterioration in leverage once acquisition activity resumes. BFS produced nearly $231 million of adjusted operating cash flow in the second quarter, much of which has remained on the balance sheet, while BMC produced about $143 million. We expect similar cash generation in the second half of 2020," S&P said. "While we expect demand market conditions for housing to remain healthy through 2021, we expect at some point the cyclicality inherent in housing construction markets will lead to lower earnings and higher leverage for the combined BFS," the rating agency said. The combination of BFS and BMC will benefit from being the largest distributor to homebuilders in the U.S., with sales of over $11 billion. The company enjoys economies of scale in its distribution network and can purchase more efficiently than smaller competitors. Both companies have been successful in raising their margins in recent years by implementing these efficiencies as well as by selling more value-added products and services to homebuilders. However, S&P's ratings also reflect the inherent earnings volatility and exposure to housing cycles. The positive outlook reflects the potential for a higher rating within 12 months of the proposed combination of BFS and BMC, reflecting the company's industry-leading size (pro forma sales of $11 billion), combined EBITDA of $900 million, and debt leverage of about 2.5x on a fully adjusted basis before synergies. The positive outlook also reflects currently strong market conditions for homebuilding and remodeling activity, which provides the potential for further growth in earnings if these conditions are sustained into 2021. "We could raise the rating on BFS over the next 12 months if the combined entity maintained debt to EBITDA below 3x in the current operating environment, which we believe could indicate good progress on the $130 million - $150 million of proposed synergies," S&P said. S&P views a downgrade as unlikely given the strength, size, and relatively low debt leverage of the proposed combination of companies. However, S&P could revise the outlook to stable if housing demand slowed such that: -- Combined debt leverage were to be sustained above 3x into 2021 with little prospect of recovery. This could occur if the companies experienced a 10%-15% decline in annual sales, with EBITDA margins declining to about 6%. -- The new BFS undertook an aggressive debt-financed acquisition and shareholder remuneration strategy such that leverage increased and were sustained above 3x. CALIFORNIA RESOURCES CORP: Owes Kern County $26M Back Taxes ----------------------------------------------------------- Bakersfield Reports that the bankruptcy of local oil producer California Resources Corp. has drilled a nearly $26 million hole in Kern County's fiscal 2019-20 property tax receipts. CRC failed to pay taxes totaling that amount before the county's April 10 deadline, thereby incurring a 10 percent penalty. An additional 1.5 percent per month was tacked on when the company neglected to settle the debt by July 1, Kern Treasurer-Tax Collector Jordan Kaufman said Wednesday. The shortfall is seen as significant but unlikely to cause cash-flow problems for the county. "Twenty-five million dollars is a lot of money. I mean, this is taxpayer money," Kaufman said. "But I feel that we have managed cash flows, liquidity well enough that it is not going to cause any types of disruption for any public agencies." CRC is Kern's second-largest payer of property taxes after Chevron Corp. Kaufman said up to eight legal entities controlled by CRC together own some 1,300 parcels countywide. County records show they combined for more than 4.2 percent of Kern's property tax roll in the last fiscal year. The company met the county's Dec. 10 deadline for making the first of two annual property tax payments, which Kaufman said was in character for a company that's "very diligent" about paying its taxes on time. But CRC's financial troubles began to mount in the spring as global demand for oil slowed during the early days of the COVID-19 pandemic. After failing to finalize a deal that would have restructured about $5 billion in debt, the company announced in May it might not be able to survive financially. On July 15, having missed a string of deadlines to make interest payments to its largest creditors, the company filed for Chapter 11 bankruptcy protection. The arrangement allows the company to continue operating while reworking its debt. Kaufman said Kern intends to file a claim in CRC's bankruptcy case and that the county expects to be paid in full eventually. He declined to estimate when that money might arrive. CRC Vice President of Public Affairs Margita Thompson said by email the company's property taxes are scheduled to be paid "subject to court approval, which we have requested." The situation underscores Kern's dependence on tax revenue from California's oil and gas industry. Six of the county's 10 largest property tax bills went to oil producers in the last fiscal year. Those six owed about $156 million, or about 14½ percent of the total Kern was expecting to receive in property taxes in fiscal 2019-20. Kaufman said oil companies generally pay their taxes on time, even as the amount of money they owe the county fluctuates according to changes in oil prices. Bankruptcies among large companies often affect Kern's ability to collect property taxes, he said. What's unique about CRC's default is the company's heavy concentration in the county, Kaufman said, adding that Kern hasn't seen so large a property-tax default in "quite a while." Even if CRC weren't able to cover its tax debt, he said, the county would likely recoup the money eventually because the company's assets would likely go to another operator with the resources to pay. Kaufman said the bigger concern is oil's local economic impact. "The oil industry is a vital industry in Kern County," he said. "We want it to continue to be a viable industry, and again, not just for tax collection purposes and public agencies but for the economy in general." About California Resources California Resources Corporation -- http://www.crc.com/-- is an oil and natural gas exploration and production company headquartered in Los Angeles. The company operates its resource base exclusively within California, applying complementary and integrated infrastructure to gather, process and market its production. On July 15, 2020, California Resources and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-33568). At the time of the filing, California Resources disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge David R. Jones oversees the cases. The Debtors tapped Sullivan & Cromwell, LLP and Vinson & Elkins LLP as their bankruptcy counsel, Perella Weinberg Partners as investment banker, Alvarez & Marsal North America, LLC as restructuring advisor, and Epiq Corporate Restructuring, LLC as claims agent. CASTLETON CORNER: Taps Bose McKinney as Bankruptcy Counsel ---------------------------------------------------------- Castleton Corner Owners Association, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Indiana to employ Bose McKinney & Evans, LLP to handle its Chapter 11 case. The firm's attorneys and paralegal will be paid at hourly rates as follows: David J. Jurkiewicz Partner $425 Curtis T. Jones Partner $415 Melissa A. Wakefield Paralegal $195 Bose McKinney received a retainer of $20,000. The firm 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: David J. Jurkiewicz, Esq. Bose McKinney & Evans, LLP Monument Circle, Suite 2700 Indianapolis, IN 46204 Telephone: (317) 684-5000 Facsimile: (317) 684-5173 Email: djurkiewicz@boselaw.com About Castleton Corner Owners Association Castleton Corner Owners Association, Inc., an Indianapolis, Ind.-based association, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No. 20-04470) on Aug. 6, 2020. At the time of the filing, Debtor had estimated assets of up to $50,000 and liabilities of between $500,001 and $1 million. Judge Robyn L. Moberly oversees the case. Bose McKinney & Evans LLP is Debtor's legal counsel. CHARLES RIVER: Egan-Jones Hikes Senior Unsecured Ratings to BB -------------------------------------------------------------- Egan-Jones Ratings Company, on August 25, 2020, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Charles River Laboratories International Inc. to BB from BB-. Headquartered in Wilmington, Massachusetts, Charles River Laboratories International, Inc. provides research tools and support services for drug discovery and development. CINEMARK HOLDINGS: Egan-Jones Lowers Sr. Unsecured Ratings to CCC ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Cinemark Holdings Inc. to CCC from B. EJR also downgraded the rating on commercial paper issued by the Company to C from B. Headquartered in Plano, Texas, Cinemark Holdings, Inc. operates movie theaters. CLARENCE H. MONTGOMERY: $236K Sale of Springfield Property Approved ------------------------------------------------------------------- Judge Scott M. Grossman of the U.S. Bankruptcy Court for the Southern District of Florida authorized Clarence H. Montgomery's sale of the real property located at 156 Kensington Avenue, Springfield, Massachusetts, Parcel ID No. 072300036, to Jorge Calcano for $235,900 in accordance with the terms of their Sales Contract. A hearing on the Motion was held on Aug. 25, 2020 at 1:30 p.m. The sale is free and clear of all liens, claims and encumbrances, with any and all liens, claims and encumbrances (that are not otherwise specifically addressed in the Order) attaching to the sale proceeds. The Debtor is authorized to pay the real estate commissions to the Real Estate Brokers and the cooperating Broker from the gross proceeds of the contract sale price in the amount of $12,154. Any customary and reasonable closing costs will be paid at the closing of the sale of the Property. The Creditors' lien will be paid in full subject to a payoff quote obtained at the time of closing. The Creditors will be paid directly through the title company within 48 hours of closing. The Debtor, his counsel or the Title Company will contact Creditors and/or their counsel of record prior to the closing of the sale to obtain an updated payoff quote for the Creditors' Loan. The Creditors' Claims will not be surcharged in any way with the costs of the sale, broker commissions, attorneys' fees, trustee fees, or any other administrative claims, costs or expenses in connection with the sale of the Property. n the event that the sale of the Property is not completed or funds are not received by Creditors to satisfy the Subject Loan in full after closing, the Creditors will retain its respective lien for the remaining amounts due under the Note. To the extent the Debtor disputes any amounts which Creditors claims are owed on the Subject Loan that the undisputed amount of the Creditors' Claim be paid at the close of the sale. The disputed amount of the Creditors' claim will be segregated in the Trust Account for the Debtor's counsel, with an additional 10% cushion above the disputed amount of the claim to be disbursed pending further Order of the bankruptcy court to allow for the Creditors' potential recovery of any of its reasonable attorney's fees and costs incurred to the extent that Creditors successfully establishes its right to the disputed amount due on its respective Claims. 15. Thereafter, any remaining net proceeds after payment of those amounts will be paid to the Debtor, and held in his counsel's trust account pending further Court order. However notwithstanding the foregoing, the Debtor's counsel is authorized to remit to the Office of the U.S. Trustee any U.S. Trustee Quarterly Fees emanating from the distribution of the proceeds of the sale of the Property, from his attorney trust account, without further Court order, when such United States Trustee Quarterly Fees come due. The Debtor has the authority to close the sale, disburse the sales proceeds as set forth, and execute any and all documents necessary to consummate the closing. The 14-day stay period under Fed. R. Bank. P. 6004(h) is waived so that the parties can comply with the scheduled closing date. Clarence H. Montgomery sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 19-22638) on Sept. 23, 2019. The Debtor tapped Adam I. Skolnik, Esq., at Law Office of Adam I. Skolnik, P.A., as counsel. DAIRY FARMERS: Court Denies Request to Reject Antitrust Suit ------------------------------------------------------------ Law360 reports that a North Carolina federal court rejected a bid by Dairy Farmers of America to escape a suit from Food Lion LLC targeting its acquisition of three processing facilities from bankrupt milk producer Dean Foods in part of a much larger deal. U.S. District Judge Catherine C. Eagles issued an order denying DFA's motion to dismiss the suit from Food Lion and a regional dairy cooperative challenging DFA's purchase of facilities in North Carolina and South Carolina from Dean Foods. The plants were part of a broader $433 million deal between DFA and Dean Foods that that had previously been approved by the U.S. Department of Justice's Antitrust Division. About Southern Foods Group Southern Foods Group, LLC, d/b/a Dean Foods, is a food and beverage company and a processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States. The Company and its 40+ affiliates filed for bankruptcy protection on Nov. 12, 2019 (Bankr. S.D. Tex. Lead Case No. 19-36313). The petitions were signed by Gary Rahlfs, senior vice president and chief financial officer. Dean Foods was estimated to have assets and liabilities of $1 billion to $10 billion as of the bankruptcy filing. Judge David Jones oversees the cases. David Polk & Wardell LLP serves as general bankruptcy counsel to the Debtors, and Norton Rose Fulbright US LLP serves as local counsel. Alvarez Marsal is financial advisor to the Debtors, Evercore Group LLC is the investment banker, and Epiq Corporate Restructuring LLC is notice and claims agent. DECO ENTERPRISES: Seeks Continued Use of Cash Collateral -------------------------------------------------------- Deco Enterprises Inc. asks the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, to allow it to continue using cash collateral generated by its business, in which Siena Lending Group LLC has or may claim a lien. Siena asserts a claim of $3,363.803.75 as of August 14, 2020. The claim is secured by a lien of against all of the Debtor's personal property with a value of around $4,536,416 as of August 12. The debt to Siena is also guaranteed by ABS Capitol, LLC which guaranty is collateralized by a second priority deed of trust against an industrial real property at 2917 Vail Avenue, Commerce California 90040. Deco is seeking funding to satisfy Siena's claim, and to provide Deco with the working capital necessary to substantially increase revenue and operating cash flows. Deco has a growing demand for new projects and quick ship sale opportunities that it cannot fulfill due to lack of inventory to do so and the borrowing limitations imposed by Siena. Deco has been seeking to sell the Vail Avenue property. Its efforts has been severely impacted by the COVID-19 pandemic as prospective purchasers have completely ceased in person inspection of the property. Deco also has facilitated the receipt and execution by ABS Capitol of a letter of intent with a real estate lender for a $3 million loan. The lender has completed its due diligence and is prepared to fund, conditioned upon expungement of a lis pendens recorded against the Vail Avenue property by the Abraham and Declara Pouladian Family Trust. The Debtor also has obtained and executed letters of intent from an inventory lender for up to $2 million in credit and an accounts receivable lender for up to $1.8 million in credit. The credit to be provided by the lenders will enable the Debtor to purchase the necessary inventory to service its customers. A hearing on the matter has been continued to September 22. The hearing was originally set for September 2. A full-text copy of the Cash Collateral Motion is available for free at https://bit.ly/3amRxAJ from PacerMonitor.com. About Deco Enterprises Inc. Deco Enterprises Inc. is a California corporation engaged in the business of manufacturing advanced-technology LED lighting fixtures and components. It sought protection under Chapter 11 Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-11846) on February 20, 2020. Raymond H. Aver, Esq. at the Law Offices of Raymond H. Aver, a Professional Corporation is the Debtor's counsel. The case is assigned to Judge Sheri Bluebond. DICK'S SPORTING: Egan-Jones Hikes Senior Unsecured Ratings to BB ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 27, 2020, upgraded the local currency senior unsecured ratings on debt issued by Dick's Sporting Goods Inc. to BB from BB-. Headquartered in Coraopolis, Pennsylvania, Dick's Sporting Goods, Inc. operates as a sporting goods retailer that manages stores primarily in the eastern and central United States. DIOCESE OF SYRACUSE: Committee Taps Saunders Kahler as Counsel -------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 case of the Roman Catholic Diocese of Syracuse, New York seeks approval from the U.S. Bankruptcy Court for the Northern District of New York to employ Saunders Kahler, LLP as its local counsel. The firm will render the following services: (a) consult with Debtor and the Office of the U.S. Trustee regarding administration of Debtor's Chapter 11 case; (b) advise the committee with respect to its rights, powers, and duties; (c) investigate the acts, conduct, assets, liabilities and financial condition of Debtor; (d) assist the committee in analyzing Debtor's pre-petition and post-petition relationships with its creditors, equity interest holders, employees, and other parties-in-interest; (e) assist in matters relating to the claims of creditors; (f) assist the committee in preparing pleadings and applications; (g) research, analyze, investigate, file and prosecute litigation in connection with issues including, but not limited to, avoidance actions or fraudulent conveyances; (h) represent the committee at hearings and other proceedings; (i) review and analyze applications, orders, statements of operations and schedules filed with the court; (j) participate in formulating a Chapter 11 plan; (k) assist the committee in advising its constituents of its decisions; and (l) negotiate and mediate issues relating to the value and payment of claims held by the committee's constituency. The firm's hourly rates are as follows: Paralegals $125 - $150 Associates $250 - $275 Partners $300 - $325 In addition, the firm will be reimbursed for work-related expenses. Merritt Locke, Esq., a partner at Saunders Kahler, disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Merritt S. Locke, Esq. Saunders Kahler, LLP 185 Genesee Street, Suite 1400 Utica, NY 13501-2194 Telephone: (315) 733-0419 Facsimile: (315) 724-8522 Email: mlocke@saunderskahler.com About The Roman Catholic Diocese of Syracuse The Roman Catholic Diocese of Syracuse, New York, through its administrative offices (a) provides operational support to the Catholic parishes, schools and certain other Catholic entities that operate within the territory of the Diocese in support of their shared charitable, humanitarian and religious missions; (b) conducts school operations by managing tuition and scholarship payments, employee payroll, and other school related operating expenses for separately incorporated Diocesan schools, as well as providing parish schools with financial, operational and educational support; and (c) provides comprehensive risk management services to the OCEs through the Diocese's insurance program. For more information, visit www.syracusediocese.org The Roman Catholic Diocese of Syracuse, New York, filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bank. N.D.N.Y. Case No. 20-30663) on June 19, 2020. Stephen A. Breen, chief financial officer, signed the petition. At the time of filing, the Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. Judge Margaret M. Cangilos-Ruiz oversees the case. The Debtor tapped Bond, Schoeneck and King, PLLC as its legal counsel and Stretto as claims agent and administrative advisor. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors in the Debtor's bankruptcy case. The committee tapped Stinson, LLP as legal counsel and Saunders Kahler, L.L.P. as local counsel. FAIRFAX COUNTY REDEVELOPMENT: S&P Alters Bond Outlook to Stable --------------------------------------------------------------- S&P Global Ratings revised the outlook to stable from negative and affirmed its 'CCC+' long-term rating on the Fairfax County Redevelopment & Housing Authority, Va.'s series 1998A multifamily housing revenue bonds, issued for the Castel Lani Project. "The rating action reflects our opinion that coverage from revenues from mortgage debt service payments and investment earnings will be insufficient to pay full and timely debt service on the bonds plus fees by April 2023, and that a projected drop in asset-to-liability parity could indicate future cash flow shortfalls," said S&P Global Ratings credit analyst Jose Cruz. The stable outlook reflects S&P's view that during the one-year outlook period, the authority might continue to pay debt service in full and on time, and the credit condition of the project is commensurate with the 'CCC+' rating, reflecting the asset-to-liability parity of 112.58% as of April 2020. However, due to its projected coverage shortfall in April 2023, S&P expects that the assets held in trust will be insufficient to pay full and timely debt service on the bonds prior to the maturity date of April 1, 2028. The bonds are secured by a Federal Housing Administration-insured mortgage, and as of April 2020, bonds outstanding totaled $430,000. FIELDWOOD ENERGY: Seeks to Hire Weil Gotshal as Legal Counsel ------------------------------------------------------------- Fieldwood Energy LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Weil, Gotshal & Manges LLP as their legal counsel. The firm will provide these legal services: (a) take all necessary action to protect and preserve Debtors' estates; (b) prepare legal papers; (c) take all necessary actions in connection with any Chapter 11 plan, disclosure statement and all related documents; (d) take all appropriate actions in connection with the sale of Debtors' assets; (e) take all necessary actions to protect and preserve the value of Debtors' estates; and (f) perform all other necessary legal services in connection with the prosecution of Debtors' Chapter 11 cases. The firm's customary hourly rates are as follows: Partners and Counsel $1,100 - $1,695 Associates $595 - $1,050 Paraprofessionals $250 - $435 The firm also intends to seek reimbursement for expenses incurred. During the 90 days prior to the petition date, the firm received payments and advances in the aggregate amount of $2,919,950.29 for services performed and to be performed. Matthew Barr, Esq., a partner at Weil Gotshal, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Barr also made the following disclosures in response to the request for additional information set forth in Paragraph D.1 of the Revised U.S. Trustee Guidelines: 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 post-petition, explain the difference and the reasons for the difference. Response: Weil Gotshal represented Debtors for approximately three months prior to the petition date. The firm's billing rates and material financial terms with respect to this matter have not changed since the Debtors engaged the firm in May 2020. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Response: Weil Gotshal is developing a prospective budget and staffing plan, which the firm will review with Debtors following the close of the budget period to determine a budget for the following period. The firm can be reached through: Matthew S. Barr, Esq. Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153-0119 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 Email: matt.barr@weil.com About Fieldwood Energy Fieldwood Energy is a portfolio company of Riverstone Holdings focused on acquiring and developing conventional assets, primarily in the Gulf of Mexico region. It is the largest operator in the Gulf of Mexico owning an interest in approximately 500 leases covering over two million gross acres with 1,000 wells and 750 employees. Visit https://www.fieldwoodenergy.com for more information. Fieldwood Energy and its 13 affiliates previously sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 18-30648) on Feb. 15, 2018, with a prepackaged plan that would deleverage $3.286 billion of funded by $1.626 billion. On Aug. 3, 2020, Fieldwood Energy and its 13 affiliates again filed voluntary Chapter 11 petitions (Bankr. S.D. Tex. Lead Case No. 20-33948). Mike Dane, senior vice president and chief financial officer, signed the petitions. At the time of the filing, Debtors disclosed $1 billion to $10 billion in both assets and liabilities. Judge David R. Jones oversees the cases. Debtors have tapped Weil, Gotshal & Manges LLP as their legal counsel, Houlihan Lokey Capital, Inc. as investment banker, and AlixPartners, LLP as financial advisor. Prime Clerk LLC is the claims, noticing and solicitation agent. The first lien group has employed O'Melveny & Myers LLP as its legal counsel and Houlihan Lokey Capital, Inc. as its financial advisor. The RBL lenders have employed Willkie Farr & Gallagher LLP as their legal counsel and RPA Advisors, LLC as their financial advisor. The cross-holder group has tapped Davis Polk & Wardwell LLP as its legal counsel and PJT Partners LP as its financial advisor. GB SCIENCES: Incurs $1.8 Million Net Loss in First Quarter ---------------------------------------------------------- GB Sciences, Inc., filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss attributable to the company of $1.85 million on $551,197 of sales revenue for the three months ended June 30, 2020, compared to a net loss attributable to the company of $2.41 million on $910,676 of sales revenue for the three months ended June 30, 2019. As of June 30, 2020, the Company had $14.37 million in total assets, $16.02 million in total liabilities, and a total deficit of $1.65 million. The Company has sustained net losses since inception, which have caused an accumulated deficit of $(99,251,168) at June 30, 2020. The Company had a working capital deficit of $(5,381,534) at June 30, 2020, compared to $(3,884,877) at March 31, 2020. In addition, the Company has consumed cash in its operating activities of $(323,845) for the three months ended June 30, 2020, compared to $(2,631,121) including $(883,295) from discontinued operations for the three months ended June 30, 2019. The Company said these factors, among others, raise substantial doubt about its ability to continue as a going concern. GB Sciences said, "Management has been able, thus far, to finance the losses through a public offering, private placements and obtaining operating funds from stockholders. The Company is continuing to seek sources of financing. There are no assurances that the Company will be successful in achieving its goals. "In view of these conditions, the Company's ability to continue as a going concern is dependent upon its ability to obtain additional financing or capital sources, to meet its financing requirements, and ultimately to achieve profitable operations. Management believes that its current and future plans provide an opportunity to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that may be necessary in the event the Company is unable to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/Archives/edgar/data/1165320/000143774920019228/gblx20200630_10q.htm About GB Sciences GB Sciences, Inc. seeks to be a biopharmaceutical research and cannabinoid-based drug development company whose goal is to create patented formulations for safe, standardized, cannabinoid therapies that target a variety of medical conditions in both the pharmaceutical and wellness markets. The Company is engaged in the research and development of cannabinoid medicines and plans to produce cannabinoid therapies for the wellness markets based on its portfolio of intellectual property. GB Sciences reported a net loss of $13.11 million for the year ended March 31, 2020, compared to a net loss of $24.68 million for the year ended ended March 31, 2019. As of March 31, 2020, the Company had $14.35 million in total assets, $14.44 million in total liabilities, and a total deficit of $88,494. Assurance Dimensions, in Margate, Florida, the Company's auditor since 2019, issued a "going concern" qualification in its report dated Aug. 27, 2020, citing that the Company has suffered recurring losses. For the year ended March 31, 2020 the Company had a net loss, had net cash used in operating activities of $4,479,713, and had negative working capital of $3,884,877. These factors raise substantial doubt about its ability to continue as a going concern. GOGO INC: Moody's Alters Outlook on Caa1 CFR to Positive -------------------------------------------------------- Moody's Investors Service changed Gogo Inc.'s outlook to positive from stable following the company's announcement [1] that it had agreed to sell its commercial aviation (CA) business to Intelsat Jackson Holdings S.A. Concurrently, Moody's affirmed Gogo's Caa1 corporate family rating (CFR), Caa1-PD probability of default rating (PDR), and the B3 rating on Gogo Intermediate Holdings LLC's senior secured notes. The company's SGL-3 speculative grade liquidity rating is maintained. Gogo reached an agreement to sell the CA business to Intelsat for $400 million in cash, subject to customary adjustments. The transaction has been approved by Gogo's Board of Directors as well as the U.S Bankruptcy Court. Intelsat has also obtained support from key economic stakeholders. The transaction, which is expected to close before the end of the first quarter 2021, remains subject to customary closing conditions and certain regulatory approvals. The positive outlook reflects Moody's expectation that Gogo's profitability and credit metrics will improve following the close of the transaction. Gogo's financial strategy, including the extent of debt reduction with the asset sale proceeds, will be an important driver of the credit profile going forward. Affirmations: Issuer: Gogo Inc. Probability of Default Rating, Affirmed Caa1-PD Corporate Family Rating, Affirmed Caa1 Issuer: Gogo Intermediate Holdings LLC Senior Secured Regular Bond/Debenture, Affirmed B3 (LGD3) Outlook Actions: Issuer: Gogo Inc. Outlook, Changed to Positive from Stable Issuer: Gogo Intermediate Holdings LLC Outlook, Changed to Positive from Stable RATINGS RATIONALE Gogo is expected to use the sale proceeds for deleveraging and investing in the business, most likely through a ramp up of its 5G network in 2021. The affirmation of the Caa1 CFR reflects Moody's expectations that Gogo's Moody's adjusted leverage is likely to remain high in 2021 at around 8x. The sale of the CA business for $400 million will allow Gogo to focus on its business aviation (BA) segment which, through a high proportion of subscription revenue and more resilient demand, has proven a lot less volatile during the coronavirus pandemic which decimated commercial travel in the second quarter of 2020. The sale will also lead to improved earnings. In H1 2020, Gogo's CA business delivered a loss and has been a drag on margins and profitability compared to the BA segment. The sale should allow Gogo to improve its long-term EBITDA and cash flow generation. In 2019, pre-disruption from the coronavirus pandemic but reeling from the Boeing MAX 737 suspension, BA's segment profit of $144 million was already well above the CA's segment profit of $36 million. In 2020, the CA business has been experiencing revenue declines due to the heavy exposure to the airline industry which is facing unprecedented levels of reduced operations due to the coronavirus pandemic. This segment has been more heavily affected than the BA business because its revenue generation is correlated with the volume of trips whereas the BA segment generates a large majority of its revenue through subscription agreements. Additionally, as part of the transaction, Gogo will enter into a ten-year network services agreement under which Intelsat will have exclusive access to Gogo's ATG services for the CA market in North America. This will guarantee minimum revenue generation of $177.5 million spread out over the ten years of the agreement. As reflected in its SGL-3 speculative grade liquidity rating, Gogo has an adequate liquidity profile with around $156 million of cash at the end of June 2020 which includes $17 million drawn on its $30 million ABL. Moody's expects this cash balance to be more than enough to weather the cash burn expected to occur in 2020 due to the Covid-19 pandemic's impact on airline travel. The positive outlook reflects Moody's expectations Gogo's financial metrics as well as its liquidity and long-term financial policy will improve following the sale. Moody's will assess the expected improvements in financial metrics along with the reduction in scale and long-term growth prospects of Gogo following the sale. The B3 (LGD3) rating on the senior secured notes reflects the probability of default of the company, as reflected in the Caa1-PD PDR, an average expected recovery rate of 50% at default and the particular instrument's rankings in the capital structure. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upwards rating pressure could build up following the sale of the CA business should Gogo evidence a path towards meaningful free cash flow generation as well as a sustained reduction in Moody's adjusted leverage below 6x. Downward rating pressure could develop should revenue and EBITDA fail to grow in line with the company's expectations leading to leverage increasing in 2021. Additionally, debt financed acquisitions and investments which result in a deterioration in cash flow or overall liquidity position would pressure the ratings. With headquarters in Chicago, Illinois, Gogo is a global leader in providing broadband connectivity solutions and wireless entertainment to the aviation industry. The company currently operates through the following three segments: Business Aviation (BA), Commercial Aviation North America (CA-NA), and Commercial Aviation Rest of World (CA-ROW), the latter in the early ramp-up stages with sizable operating losses. Gogo currently provides broadband connectivity services to approximately 3,300 commercial aircraft and has about 10,100 connection units on business aircraft. During the 12 months ended June 30, 2020, the company generated $704 million in revenue. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. GROM SOCIAL: Incurs $953K Net Loss in Second Quarter ---------------------------------------------------- Grom Social Enterprises, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $953,108 on $1.75 million of sales for the three months ended June 30, 2020, compared to a net loss of $1.11 million on $2.07 million of sales for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported a net loss of $2.30 million on $3.04 million of sales compared to a net loss of $2.76 million on $4.04 million of sales for the six months ended June 30, 2019. As of June 30, 2020, the Company had $17.95 million in total assets, $10.49 million in total liabilities, and $7.47 million in total stockholders' equity. On a consolidated basis, the Company has incurred significant operating losses since inception. Grom Social said that, "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 notes 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." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/Archives/edgar/data/1662574/000168316820002991/grom_10q-063020.htm 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. GRUPO AEROMEXICO: Court Approves 19 Aircraft Lease Termination -------------------------------------------------------------- Andrea Navarro, writing for Bloomberg News, reports that the court approved request from airline to terminate leases of 19 aircraft and return them to their respective lessors as part of Chapter 11 restructuring process, Aeromexico says in filing to stock exchange. Aircraft involved are 5 Boeing 737-800s, 5 Boeing 737-700s and 9 Embraer E-170-LR as well as 4 GE CF34-8E5 engines. Aircraft aren't part of the company’s strategic fleet requirements under current market conditions. Motion is part of airline's measures to ensure a more efficient and homogeneous fleet. About Grupo Aeromexico Grupo Aeromexico, S.A.B. de C.V. -- https://www.aeromexico.com/ -- is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, 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. Grupo Aeromexico 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 reported consolidated assets and liabilities of $1 billion to $10 billion. Timothy Graulich, Esq., of Davis Polk and Wardell LLP, serves as counsel to the Debtors. HARSCO CORP: Egan-Jones Cuts Senior Unsecured Ratings to B+ ----------------------------------------------------------- Egan-Jones Ratings Company, on August 27, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Harsco Corporation to B+ from BB-. Headquartered in Camp Hill, Pennsylvania, Harsco Corporation is an industrial services and engineered products company. HERTZ CORP: Gets Court Approval to Sell 182,000 Vehicles --------------------------------------------------------- Michael Strong, writing for The Detroit Bureau, reports that rental car giant Hertz Global Holdings won court approval to sell 182,500 of around 500,000 vehicles in its fleet. Hertz Global met with its lenders and hammered out an interim $650-million deal that will allow it to proceed with the plans to sell off thousands of vehicles, as it looks to winnow down its expenses while going through the process. No plans for how the sales would be handled or when they would start was outlined. The agreement calls for Hertz, which filed bankruptcy in May, to pay $650 million in cash in monthly installments for the rest of 2020. In return, it can sell off at least 182,521 leased vehicles between now and December. The company would have about 310,000 vehicles after the sell off. Business at rental car agencies, like Hertz, have died off due to the pandemic. The number of vehicles it plans to sell has risen since a filing last month in which the company said it wanted to sell about 144,000 vehicles during the restructuring process, according to the Wall Street Journal. Before anyone begins calculating how fast the sale will get them out of bankruptcy, Hertz is only allowed to keep $900 from each car sold, the Journal reported, noting the company is attempting arrange $2 billion in new financing to help get through the bankruptcy. Hertz also owns several rental-car brands, including Dollar and Thrifty, filed under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company said in its filing it held assets of nearly $26 billion but also had debts of more than $24 billion. The global COVID-19 pandemic has crushed the rental car business as travel is restricted and stay-home orders have been put in place across the U.S. The filing was only for its U.S.-based business. Franchise locations as well as its operations in Europe, Australia and New Zealand are not part of the restructuring. Hertz, which has $24 billion in debts, also owns Dollar and other rental car companies. Hertz and its investors and debtholders weren't the only ones who are expected to be impacted by the bankruptcy filing. The long-time rental industry giant plans to effectively halt the purchase of new cars and light trucks for the foreseeable future, a move that will contribute to the sharp decline in the American market this year. "We're not going to be shipping cars to rental fleets for some time," Mark LaNeve, Ford's head of sales, services and marketing for North America, told TheDetroitBureau.com at the time of the announcement. He also noted that Hertz rivals such as Avis and Enterprise also are curtailing new vehicle orders, instead planning to continue using vehicles already in their fleets. Rental car companies in general put a halt to buying new vehicles from all automakers in the U.S. It's expected that full-stop measure will cut at least 1 million units, and potentially as much as 2 million, from the total sales volume for 2020. About Hertz Corp. Hertz Corp. and its subsidiaries -- http://www.hertz.com/-- operate a worldwide vehicle rental business under the Hertz, Dollar, and Thrifty brands, with car rental locations in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. The Company also operates a vehicle leasing and fleet management solutions business. On May 22, 2020, The Hertz Corporation and certain of its U.S. and Canadian subsidiaries and affiliates filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court (Bankr. D. Del. Case No. 20-11218). The Hon. Mary F. Walrath is the presiding judge. White & Case LLP is serving as legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor. Richards, Layton & Finger, P.A., is the local counsel. Prime Clerk LLC is the claims agent, maintaining the page https://restructuring.primeclerk.com/hertz HINTONS5 LLC: Seeks to Hire Genova & Malin as Legal Counsel ----------------------------------------------------------- Hintons5, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Genova & Malin as its legal counsel. The firm will render the following services: (a) advise Debtor regarding its powers, duties, financial situation and the management of its property; (b) take necessary actions to void liens against Debtor's property; (c) prepare legal papers; and (d) provide other legal services related to Debtor's Chapter 11 case. Michelle Trier, Esq., a partner at Genova & Malin, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Andrea B. Malin, Esq. Michelle L. Trier, Esq. Genova & Malin Hampton Business Center 1136 Route 9 Wappingers Falls, NY 12590 Telephone: (845) 298-1600 About Hintons5 LLC Hintons5 LLC, a Middletown, N.Y.-based single asset real estate corporation, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 20-35871) on Aug. 20, 2020. At the time of the filing, Debtor had estimated assets of between $500,001 and $1 million and liabilities of the same range. Genova & Malin is Debtor's legal counsel. HOLOGENIX LLC: Seeks Approval to Tap The Colony Group as Accountant ------------------------------------------------------------------- Hologenix, LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ The Colony Group, LLC as its accountant. Debtor requires the services of an accountant to prepare its 2019 tax returns and provide tax advice. The firm's hourly rates are as follows: Partners $415 Directors/Managers $225 - $275 Accountants $150 - $175 Others $80 Colony Group seeks to be paid from Debtor's estate for fees and expenses advanced by the firm without the need for additional notice, application or hearing so long as the total amount does not exceed $10,000. If total fees and costs exceed $10,000, then the firm will file fee applications. The firm is requesting a post-petition retainer in the amount of $2,000. W. Shane Glass, a member of Colony Group, disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: W. Shane Glass, CPA/PFS The Colony Group, LLC 11766 Wilshire Blvd., Suite 500 Los Angeles, CA 90025 Telephone: (310) 229-5007 Facsimile: (310) 229-5022 Email: sglass@thecolonygroup.com About Hologenix LLC Hologenix, LLC is the inventor of Celliant technology(https://celliant.com), a patented, clinically-tested textile technology that harnesses and recycles the body's natural energy. Based in Pacific Palisades, Calif., Hologenix filed its voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-13849) on April 22, 2020. In the petition signed by Seth Casden, chief executive officer, Debtor estimated $1 million to $10 million in both assets and liabilities. Judge Barry Russell oversees the case. Debtor has tapped Levene, Neale, Bender, Yoo & Brill L.L.P. as its legal counsel and The Colony Group, LLC as its accountant. IDAHO COLLEGE: S&P Cuts Ratings on 2017A, 2017B Bonds to 'BB+' -------------------------------------------------------------- S&P Global Ratings lowered its ratings to 'BB+' from 'BBB' on Public Finance Authority's (PFA) series 2017A $29.85 million bonds and $26.89 million series 2017B bonds issued for Idaho College of Osteopathic Medicine LLC (ICOM). S&P also assigned a recovery rating of '1', reflecting its expectation for very high (90-100%; rounded estimate: 95%) recovery in the event of a default. ICOM is a private, for-profit, graduate school of osteopathic medicine operating out of a 94,000 square-foot building on the Idaho State University (ISU) campus in Meridian. The project opened in August 2018 to its first class of students. ICOM has an affiliation agreement with ISU that expires in 2056 but is renewable. Its debt matures 2031, assuming ICOM makes mandatory redemptions as scheduled. ICOM competes to attract qualified students to its program and is subject to the accreditation requirements of the Commission on Osteopathic College Accreditation (COCA). When its inaugural class graduates in 2022, ICOM will be eligible to apply for full accreditation under COCA rules. One or more of the ratings referenced within this article was assigned by deviating from S&P Global Ratings' published Criteria. The exception relates to the application of "Project Finance Operations Methodology" dated Sept 16, 2014. S&P said, "Within our Operations Methodology (paragraph 65), we have limited ability to ignore a weak financial year (generally only if the weakness is due to a foreseeable operational reason). ICOM's pre-funding removes default risk this year, but DSCR is still expected to be weak. We are not rating to this weak, one year minimum due to the pre-funding of debt obligations, and this is considered an exception. "We are lowering the debt ratings on ICOM to 'BB+' based on the completion of our credit risk review for developing COMs. The action reflects our revised view of the sector, adjustments to our forecast and ICOM's current stage of pre-accreditation. "Our expectation of a weak 1.11x DSCR this year was mitigated by ICOM (and their sponsors) decision to pre-fund all debt obligations for fiscal 2021 with the trustee. Our projected DSCR of 1.11x for fiscal 2021 is materially lower than our previous expectation of 1.46x. This difference is largely driven by management's decision to hold student fees flat (instead of the $500/student increase that was previously assumed), and inclusion of interest payments on the $1.4 million PPP loan that was recently taken out this year. To address the limited financial cushion forecast for this year, ICOM and its sponsors have contributed additional funds to prepay all debt obligations for fiscal 2021. The contributions come from interest earnings on the COCA required teach-out and operating reserves, as well as a transfer of excess working capital of the project. By prepaying all fiscal 2021 debt obligations, we now based our forecast on the next weakest coverage in our forecast, 1.65x expected for fiscal 2022. "On Sept. 16, 2019, the Burrell College of Osteopathic Medicine LLC (BCOM) and ICOM were placed on CreditWatch negative while we reassessed the ramp-up and regulatory approval risks of COMs. Our reassessment of COMs follows the failure of a third, then-rated COM, to achieve commercial operations. The proposed Minnesota College of Osteopathic Medicine failed to obtain regulatory approval to open as planned this fall. The CreditWatch placement followed our decision to revisit the key risks of new COMs which include accreditation risk, ramp-up and execution risk, and competition with current and future COMs which may limits its pricing power and profitability. "We are revising our analysis to reflect a weaker competitive position of COMs in the development phase. All COMs must begin their operations without full accreditation from COCA and achieve major accreditation milestones in stages. While COMs are in this developing phase, we are revising our scoring to heighten the risk we see. ICOM has pre-accreditation status and will not be eligible for full accreditation until 2022. While it has achieved all milestones and performance targets, ICOM's competitive profile--its ability to attract and retain students--is now viewed to be weak, not so much due to management actions, but where it is in the accreditation process. We now see COMs' demand profiles improving gradually over time and will look to information such as future licensure exam results and student attrition rates to assess its progress in establishing itself as a national COM option with a well-established record. "We are also revising our financial forecasting assumptions to better represent the key risks of a COM in the current operating environment. In all scenarios, we are removing any assumptions of class-size increase, because COCA approves them and we are unable to adequately assess the likelihood of these approvals. We had previously forecast class-size increases as per management's expectation. "Under our revised assumptions, our minimum forecast DSCR is 1.65x in 2022. With all debt obligations since inception being paid from a capitalized interest account, we have a limited operating track record to assess financial stability. But for the most recent fiscal year ended June 2020, preliminary year-end net cash flow available for debt service exceeded our expectations due to around an 11% in cost savings. As of July 20, 2020, total enrollment was 479 for the fall 2020 semester. "We now explicitly reflect an attrition stress when we consider how resilient the project is to unexpected shocks (which we refer to as our downside financial forecast). In the past, for COMs in development and ramp-up, we viewed a key downside to be a failure to achieve accreditation on a timeline basis. We now focus more on attrition as a key operating risk for a developing COM because financial performance is sensitive to even small changes in student attendance. In addition, we now assume a four-year attrition shock under our market volatility test, which we use to assess ICOM's ability to withstand a downside event. "Adjustments to operating risk and lower debt service coverage result in a lower rating, but we expect stability and gradual improvement. The reassessment of the above factors demonstrate that the business risk to operate a developing COM is higher than we previously assumed. Under these new assumptions, ICOM's forecast debt service coverages transition to a lower rating category based on our requirement for stronger DSCRs when assessing projects with higher business risk for the same rating, all else equal." Despite weak DSCRs previously forecast for fiscal 2021, S&P believes the prefunding of debt obligations for fiscal 2021 significantly reduces credit risk at the weakest point of the debt forecast. In addition, the fall semester started in early July with minimal disruption. Attrition was lower than expected and there were no withdrawals or requests by students for a leave of absence because of the pandemic. The project still benefits from a favorable liquidity position, rising forecasted DSCRs, and strong resiliency under a downside scenario. At this stage of development and limited comparative data within the asset class, the rating on ICOM is 'BB+'. The stable outlook reflects the prudent decision to pre-reserving of all fiscal 2021 debt obligations during a period where cash flows are the most sensitive for ICOM, due to the ramp-up nature of revenues for a developing college. The stable outlook is further supported by an expectation of an improving financial metrics based on additional revenues during ICOM's fourth year of operations (fiscal 2022), as the college will have four full classes of tuition-paying students. S&P said, "We believe ICOM has adequate cost contingencies budgeted and sufficient liquidity to handle any significant unforeseen operational disruptions such as a significant worsening of COVID-19 for the fiscal year ending June 30, 2021. Under our base-case forecast, we assume a minimum DSCR of 1.65x in fiscal 2022 and DSCRs above 3.0x in the subsequent years until the debt matures." S&P could lower the rating on ICOM if current year operations were severely disrupted with a lasting impact for the next school year in fall of 2021. This could occur if a significant amount of students withdraw or there is a sharp increase in operating costs, both of which could be caused by a material resurgence of COVID-19 infections. This is not expected. The fall semester started in July without significant disruption, using a combination of virtual and in-person instruction. ICOM is entering its third year of operations and third-year students are completing the first exam of a three-part series for their medical license (COMLEX-1). The outcome of these scores is the first indication to benchmarking the quality of education ICOM offers relative to peers. Demonstrating over time that its results are on par with more established COMs could result in an upgrade, combined with other metrics that demonstrate it is garnering a solid academic reputation. INTERDIGITAL WIRELESS: Egan-Jones Cuts FC Unsecured Rating to BB+ ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 27, 2020, downgraded the foreign currency senior unsecured rating on debt issued by InterDigital Wireless Inc. to BB+ from BBB. Headquartered in Wilmington, Delaware, InterDigital, Inc. of Pennsylvania develops technology for advanced digital wireless telecommunications applications. IONIS PHARMACEUTICALS: Egan-Jones Hikes Sr. Unsec. Ratings to BB ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Ionis Pharmaceuticals Inc. to BB from B+. Headquartered in Carlsbad, California, Ionis Pharmaceuticals, Inc. operates as a biotechnology company. J.C. PENNEY: Hires Financial Advisor for Independent Directors -------------------------------------------------------------- J.C. Penney Company, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Goldin Associates, LLC as financial advisor for its independent directors, Alan Carr and Steve Panagos. Goldin will work with the independent directors' legal counsel, Katten Muchin Rosenman LLP, to provide the following financial advisory services: (a) Assist Katten and the independent directors in reviewing financial analyses prepared by other professionals and preparing independent analyses; (b) Analyze matters pertaining to Debtor's Chapter 11 case in which a conflict exists between Debtor and its shareholders, subsidiaries, affiliates, directors or officers; (c) Analyze preferences and other avoidance actions; (d) Assist Katten and the independent directors with other matters that fall within Goldin's expertise and that are mutually agreeable. Goldin's hourly rates for 2020, subject to annual adjustments, are as follows: Sr. Managing Directors/Sr. Advisors $1,100 – $1,250 Managing Directors $850 – $1,100 Sr. Directors/Sr. Consultants $700 – $850 Directors $600 – $700 Vice President/Consultants $500 – $600 Analysts/Associates $300 – $500 In addition, Goldin will seek reimbursement for out-of-pocket expenses incurred. Gary Polkowitz, a managing director at Goldin, disclosed in court filings that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Gary Polkowitz Goldin Associates, LLC 350 Fifth Avenue New York, NY 10118 Telephone: (212) 593-2255 About J.C. Penney Company Founded in 1902 by James Cash Penney, J.C. Penney Corporation, Inc. is an American retail company engaged in marketing apparel, home furnishings, jewelry, cosmetics and cookware. It was called J.C. Penney Stores Company from 1913 to 1924 when it was reincorporated as J.C. Penney Co. On May 15, 2020, J.C. Penney announced that it entered into a restructuring support agreement with lenders holding 70 percent 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 filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-20182) on May 15, 2020. Debtors have tapped Kirkland & Ellis LLP and Jackson Walker LLP as their legal counsel, Lazard Freres & Co. LLC as investment banker, AlixPartners LLP as financial advisor, and Katten Muchin Rosenman LLP as special counsel. Prime Clerk is the claims agent. Henry Hobbs Jr., acting U.S. trustee for Region 7, appointed a committee to represent unsecured creditors in Debtors' Chapter 11 cases. The committee has tapped Cole Schotz P.C. and Cooley LLP as its legal counsel, Jefferies LLC as investment banker, and FTI Consulting, Inc. as financial advisor. Katten Muchin Rosenman, LLP and Goldin Associates, LLC serve as legal counsel and financial advisor for Alan Carr and Steve Panagos, respectively, who were elected independent directors of J.C. Penney's board of directors on May 1, 2020. J.C. PENNEY: Lays Off 94 Workers at Regency Square Mall ------------------------------------------------------- Mark Basch writing for Jax Daily Record, reports that J.C. Penney Corp. filed a notice with city and state officials mid July 2020 saying 94 employees will lose their jobs when its store in Regency Square Mall, in Jacksonville, Flroida, closes in two months. The Regency Square store is one of 152 locations the company is closing after filing for Chapter 11 bankruptcy reorganization in May. J.C. Penney has two other Jacksonville stores remaining open in The Avenues and Orange Park malls. The letter sent under the Worker Adjustment and Retraining Notification Act said the Regency Square store will close on or about Sept. 27, and the 94 workers will be dismissed between Sept. 23 and Oct. 7. "Based on business needs and associates' interests, it is anticipated that a few associates may be offered employment in other J.C. Penney locations," the letter said. The company also said it will provide outplacement services for employees losing their jobs. About J.C. Penney J.C. Penney Corporation, Inc., is an American retail company, founded in 1902 by James Cash Penney and today engaged in marketing apparel, home furnishings, jewelry, cosmetics, and cookware. The company was called J.C. Penney Stores Company from 1913 to 1924, when it was reincorporated as J.C. Penney Co. On May 15, 2020, JCPenney announced that it has entered into a restructuring support agreement with lenders holding 70% of JCPenney's 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, the Company 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). Kirkland & Ellis LLP is serving as legal advisor, Lazard is serving as financial advisor, and AlixPartners LLP is serving as restructuring advisor to the Company. Prime Clerk is the claims agent, maintaining the page http://cases.primeclerk.com/JCPenney The Official Committee of Unsecured Creditors formed in the Chapter 11 cases tapped Cooley LLP and Cole Schotz P.C. as co-counsels and FTI Consulting, Inc. as financial advisor. J2 GLOBAL: Egan-Jones Hikes Senior Unsecured Ratings to BB- ----------------------------------------------------------- Egan-Jones Ratings Company, on August 26, 2020, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by J2 Global Inc. to BB- from B+. Headquartered in Los Angeles, California, J2 Global, Inc. provides cloud-based communications and storage messaging services. JAGUAR HEALTH: Believes Stockholders' Equity Tops $5M as of Sept. 2 ------------------------------------------------------------------- Jaguar Health, Inc. has completed transactions that it believes increase its stockholders' equity as of Sept. 2, 2020, to an amount above $5,000,000, which is the minimum stockholders' equity requirement for initial listing on The Nasdaq Capital Market. "We're very pleased to have executed the two transactions this week that are described below," said Lisa Conte, Jaguar's president and CEO. "These transactions led to an increase of Jaguar stockholders' equity above the $1,544,000 figure the Company reported on Form 10-Q for the quarterly period ended June 30, 2020." As previously disclosed, on Aug. 17, 2020, Jaguar received a letter from the Listing Qualifications staff of The Nasdaq Stock Market LLC notifying the Company that it no longer complied with Nasdaq Listing Rule 5550(b)(1) due to the Company's failure to maintain a minimum of $2,500,000 in stockholders' equity (or meet the alternatives of market value of listed securities of $35 million or net income from continuing operations). The Company has (i) exchanged 5,524,926 shares of the Company's Series A Convertible Participating Preferred Stock for 842,500 shares of the Company's Series C Perpetual Preferred Stock and 842,500 shares of the Company's Series D Perpetual Preferred Stock pursuant to an Exchange Agreement, dated Sept. 1, 2020, by and between the Company and Iliad Research and Trading, L.P. and (ii) issued 2,289,474 shares of the Company's common stock to Sagard Capital Partners, L.P. pursuant to the Stock Plan Agreement for Payment of Consulting Services, dated Sept. 1, 2020, by and among Jaguar, Sagard Capital Partners Management Corp, and Sagard Capital Partners, L.P., which transactions were consummated on Sept. 1, 2020. Based on these transactions and on available interim financial data, the Company believes the Company's stockholders' equity as of Sept. 2, 2020 exceeds $5 million. About Jaguar Health Jaguar Health, Inc. -- http://www.jaguar.health/-- is a commercial stage pharmaceuticals company focused on developing novel, sustainably derived gastrointestinal products on a global basis. The Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary human gastrointestinal pharmaceuticals for the global marketplace from plants used traditionally in rainforest areas. Its Mytesi (crofelemer) product is approved by the U.S. FDA for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. Jaguar reported a net loss of $38.54 million for the year ended Dec. 31, 2019, compared to a net loss of $32.15 million for the year ended Dec. 31, 2018. As of June 30, 2020, the Company had $37.58 million in total assets, $25.16 million in total liabilities, $10.88 million in Series A redeemable convertible preferred stock, and $1.54 million in total stockholders' equity. Mayer Hoffman McCann P.C., in San Francisco, California, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 2, 2020 citing that the Company has experienced losses since inception, significant cash used in operations, and is dependent on future financing to meet its obligations and fund its planned operations. These conditions raise substantial doubt about its ability to continue as a going concern. JOHN VARVATOS: Court Approves Asset Sale to Lender -------------------------------------------------- Law360 reports that men's suit retailer John Varvatos Enterprises Inc. received approval from a Delaware bankruptcy judge for a Chapter 11 sale of its assets to a secured lender that credit bid $76 million of its prepetition debt at an auction earlier this week. During a hearing conducted via phone and video conferencing, debtor attorney Derek C. Abbott of Morris Nichols Arsht & Tunnell LLP said Lion/Hendrix Cayman Ltd. was the only qualified bidder coming into the auction and that its offer to bid against a portion of its $95 million of debt was the best offer received by John Varvatos. About John Varvatos John Varvatos Enterprises, Inc. is an American international luxury men's lifestyle brand founded by fashion designer John Varvatos in 1999. It operates retail stores in the United States and other countries worldwide. It sells, manufactures and designs fashion products for men such as sweaters, knits, tees, tailored clothing, jeans, pants, jackets, and accessories. John Varvatos Enterprises generates revenue through the sale of merchandise through department store and specialty wholesale distribution, a transactional globally accessible website, and its 27 brick and mortar retail locations. John Varvatos Enterprises, Inc. and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-11043) on May 6, 2020. John Varvatos Enterprises was estimated to have $10 million to $50 million in assets and $100 million to $500 million in liabilities as of the bankruptcy filing. The Hon. Mary F. Walrath is the case judge. The Debtors tapped Morris, Nichols, Arsht & Tunnell LLP as counsel; Clear Thinking Group as financial advisor; MMG Advisors, Inc. as investment banker; and Omni Agent Solutions as claims agent. JULIE BANDEMER: Seeks Court Approval to Hire Bankruptcy Attorney ---------------------------------------------------------------- The Julie Bandemer Living Trust seeks approval from the U.S. Bankruptcy Court for the District of Wyoming to employ Clark Stith, Esq., an attorney practicing in Rock Springs, Wyo., to handle its Chapter 11 case. Mr. Stith will render these legal services: (a) prepare pleadings and applications; (b) advise Debtor regarding its rights, duties and obligations; (c) perform legal services incidental to operation of Debtor's business; (d) negotiate, prepare and confirm a plan of reorganization; (e) take other necessary actions to preserve and administer the bankruptcy estate. Mr. Stith's hourly rate is $300. In court filings, Mr. Stith disclosed that his representation of Debtor does not have any adverse effect on any of its creditors or affiliates. The attorney can be reached at: Clark Stith, Esq. 505 Broadway Rock Springs, WY 82901 Telephone: (307) 382-5565 Facsimile: (307) 382-5552 Email: clarkstith@wyolawyers.com About The Julie Bandemer Living Trust The Julie Bandemer Living Trust filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Wy. Case No. 20-20349) on July 20, 2020. At the time of the filing, Debtor disclosed assets of between $500,001 and $1 million and liabilities of the same range. Judge Cathleen D. Parker oversees the case. Clark Stith, Esq., is Debtor's legal counsel. KIDS FIRST: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: KIDS FIRST Swim Schools, Inc. 2260 Baldwin Mill Road Fallston, MD 21047 Business Description: KIDS FIRST Swim Schools -- https://kidsfirstswimschools.com -- is a provider of year round warm water swimming instruction, operating 37 locations across seven states. Chapter 11 Petition Date: September 3, 2020 Court: United States Bankruptcy Court District of Maryland Case No.: 20-18161 Debtor's Counsel: Lawrence J. Yumkas, Esq. YUMKAS, VIDMAR, SWEENEY & MULRENIN, LLC 10211 Wincopin Circle, Suite 500 Columbia, MD 21044 Tel: (443) 569-0759 Email: lyumkas@yvslaw.com Total Assets as of September 1, 2020: $7,003,878 Total Liabilities as of September 1, 2020: $2,846,065 The petition was signed by Gary L. Roth, 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://www.pacermonitor.com/view/4IL6HKQ/Robert_J_Ambruster_Inc__moebke-20-44289__0001.0.pdf?mcid=tGE4TAMA LAKELAND TOURS: Gets Court OK to Access DIP Loan for Refunds ------------------------------------------------------------ Josh Saul, writing for Bloomberg News, reports that Judge James L. Garrity Jr. granted bankrupt educational travel company WorldStrides Holdings interim permission to tap $150 million of a debtor-in-possession loan in federal court. "We need the money and we need it now. That's why we're here," lawyer Nicole L. Greenblatt of Kirkland & Ellis LLP says on behalf of co. Judge Garrity made the ruling over objections from parties including ad hoc equity holder group, who argue the co. doesn't need the money. Total DIP loan is $368 million, which include $200 million in new proceeds ($100 million lender and $100 million sponsor DIP loans), and $150 million of roll-up loans. About Lakeland Tours Lakeland Tours, LLC and its affiliates, including WorldStrides Holdings, LLC, provide full-service educational travel and experiential learning programs domestically and internationally for students from K12 to graduate level. They are one of the largest accredited U.S. travel companies, providing organized educational travel and other experiential learning programs for more than 550,000 students in 2019. WorldStrides claims to be the largest student educational travel company in the country. WorldStrides has provided a variety of educational travel programs to more than two million elementary, middle, and high school students since its inception in 1967. Lakeland Tours and certain of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 20-11647) on July 20, 2020. Kellie Goldstein, chief financial officer, signed the petitions. At the time of the filing, the Debtors had consolidated assets of $1 billion to $10 billion and consolidated liabilities of $1 billion to $10 billion. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International, LLP as their bankruptcy counsel, KPMG LLP as financial advisor, Houlihan Lokey Capital Inc. as investment banker, and Daniel J. Edelman Holdings Inc. as communications consultant and advisor. Stretto is Debtors' notice and claims agent. LATAM AIRLINES: Second Quarter Revenue Down 76% ----------------------------------------------- LATAM Airlines Group on Aug. 18, 2020, reported its financial results for the second quarter of 2020, with revenues of US$571.9 million, representing a 75.9% fall year-on-year due to unprecedented reductions in operations following COVID-19-related border closures and travel restrictions. This decrease was partially offset by an 18.4% increase in cargo revenues. During the quarter (April-June 2020), total operating costs decreased 45.6%, reaching US$1,266.7 million. As a result, the group reported an operating loss of US$694.8 million with net losses of US$890 million. "These results reflect the profound impact that the crisis has had on the aviation industry and underline the need to transform the group to guarantee its sustainability in the medium term. We will continue working to adapt to this new environment and transform LATAM into a more agile, competitive and efficient company," said Roberto Alvo, CEO of LATAM Airlines Group. During the quarter, LATAM Airlines Group’s affiliates in Chile and Brazil operated with limited capacity. Domestic operations were resumed in Ecuador in June and in Peru in July. As a result of the effects of the pandemic, the group's total workforce has reduced by approximately 12,600 people from April to date, with its current headcount totaling almost 30,000. About LATAM Airlines LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. LATAM Airlines Group S.A. 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 S.A. 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. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as general bankruptcy counsel; FTI Consulting as restructuring advisor; and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. Prime Clerk LLC is the claims agent. LOOT CRATE: Creditors Want Case Converted to Chapter 7 Liquidation ------------------------------------------------------------------ Alex Wolf, writing for Bloomberg News, reports that the creditors of the predecessor of gaming merchandise provider Loot Crate asked a court to move its bankruptcy case to a court-appointed liquidator because it's not advancing towards a consensual plan of reorganization. The company, now known as Old LC Inc., has remained at a standstill since selling its assets out of Chapter 11 bankruptcy nine months ago, an official creditors committee said in a filing with the U.S. Bankruptcy Court for the District of Delaware. Unsecured creditors want to get some value out of potential causes of action against former directors and officers. About Loot Crate Inc. Founded in 2012, Loot Crate, Inc., is a worldwide leader in fan subscription boxes. It partners with industry leaders in entertainment, gaming, sports and pop culture to deliver monthly themed crates; produces interactive experiences and digital content; and films original video productions. Since 2012, the company has delivered more than 32 million crates to fans in 35 territories across the globe. Loot Crate and three affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 19-11791) on Aug. 11, 2019. Loot Crate was estimated to have less than $50 million in assets and $50 million to $100 million in liabilities as of the bankruptcy filing. The Debtors tapped Bryan Cave Leighton Paisner LLP as lead counsel; Robinson & Cole LLP as Delaware and conflicts counsel; FocalPoint Securities, LLC, as investment banker; Portage Point Partners as financial advisor; and Mark Palmer of Theseus Strategy Group as chief transformation officer. Bankruptcy Management Solutions, Inc., which conducts business under the name Stretto, is the claims agent and maintains the site https://case.stretto.com/lootcrate. Andrew Vara, acting U.S. trustee for Region 3, on Aug. 22, 2019, appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 case. The Committee retained Morris James LLP, as co-counsel; Dundon Advisers LLC, as financial advisor; and FocalPoint Securities, LLC, as investment banker. LTI HOLDINGS: S&P Upgrades ICR to 'B-'; Outlook Stable ------------------------------------------------------ S&P Global Ratings raised its issuer credit rating on U.S.-based LTI Holdings Inc. to 'B-' from 'CCC+'. At the same time, S&P raised its rating on the company's $1.425 billion first-lien term loan and its $125 million revolving credit facility to 'B-' from 'CCC+', and the rating on the company's $315 million second-lien term loan to 'CCC+' from 'CCC'. The recovery ratings are '4' and '5', respectively. S&P expects many of the company's endmarkets to remain relatively stable, leading to continued relatively good operating performance in the face of macroeconomic headwinds over the next 12 months. LTI outperformed S&P's expectations for the first half of 2020, with sales and profitability coming in nearly flat versus last year. S&P expects LTI to continue benefiting from some of the trends seen in the first half of 2020, as it benefits from increased cloud usage, consumption of consumer electronics in the increased work and learn from home environment as well as some benefits from the continued 5G buildout. While S&P expects continued headwinds from some of the company's customers, including some of its industrial and some auto customers, the rating agency no longer expects significant revenue and EBITDA deterioration. The company has made substantial progress in addressing its product liability issue. The company recently reported it had made significant headway on the settlement on its product liability. LTI has confirmed it will receive the entire amount of the expected insurance proceeds (estimated at $51 million), has already made payments of $100 million towards the liability, and has revised downwards the future liability by $30 million. As a result, the company's net liability was $40 million as of August 1, 2020. "The liability reduction has lowered our view of the company's debt leverage, as we included this liability in our adjusted debt measures. Furthermore, we believe that the company's strong sales with the involved customer in the product liability settlement bode well for the relationship going forward," S&P said. "In our view, LTI's liquidity position has held up well in the face of significant headwinds. The company reported over $185 million of liquidity in its June results, with over $60 million of cash and its entire $125 million revolver available, reflecting its ability to maintain solid footing during a challenging operating environment. We expect LTI to maintain adequate cushion under its covenants and the company has no near-term maturities," the rating agency said. The stable outlook on LTI reflects S&P's expectation for leverage to be within the 8.5x-9x area over the next 12 months given relatively supportive end-market performance. S&P expects the company will be able to maintain adequate liquidity during this time with some positive adjusted free cash flow generation. "We could lower our ratings on LTI if its end markets perform materially worse than expected, potentially due to large losses among major customers, and results in sustained negative cash flow generation. In addition, we could also downgrade the company if we believe LTI's capital structure has become challenged in the long term, which could result from aggressive debt-financed acquisitions and incremental cost that reduce revolving availability," S&P said. Although unlikely in the next year given macroeconomic headwinds, S&P could raise its ratings on LTI if its owners committed to less-aggressive financial policies such that it maintained debt to EBITDA of well below 6.5x for a sustained period. LUCKY BRAND: Committee Hires Alvarez & Marsal as Financial Advisor ------------------------------------------------------------------ The official committee of unsecured creditors appointed in the Chapter 11 cases of Lucky Brand Dungarees, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Alvarez & Marsal North America, LLC as its financial advisor. A&M will render these professional services: (a) Assist in the assessment and monitoring of cash flow budgets, liquidity and operating results; (b) Assist in the review of court disclosures; (c) Assist in the review of Debtors' cost/benefit evaluations with respect to the assumption or rejection of executory contracts and unexpired leases; (d) Assist in the analysis of Debtors' assets, liabilities and proposed transactions for which court approval is sought; (e) Assist in the review of Debtors' proposed key employee retention plan and key employee incentive plan; (f) Attend meetings with Debtors, lenders, creditors, potential investors, the U.S. Trustee, the unsecured creditors' committee and any other official committees organized in Debtors' cases, and other parties-in-interest; (g) Assist in reviewing tax issues; (h) Assist in the investigation and pursuit of causes of actions; (i) Assist in reviewing claims reconciliation and estimation process; (j) Assist in reviewing Debtors' business plan; (k) Assist in the review of the sales or dispositions of Debtors' assets, including allocation of sale proceeds; (l) Participate in hearings before the court; (m) Assist in the review or preparation of information and analysis necessary for the confirmation of a Chapter 11 plan; and (n) Render such other general business consulting services. A&M's hourly rates are as follows: Managing Directors $900 - $1,150 Directors $700 - $875 Associates $550 - $675 Analysts $400 - $500 In addition, the firm will seek reimbursement for all out-of-pocket expenses incurred. Mark Greenberg, a managing director at A&M, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Mark Greenberg Alvarez & Marsal North America, LLC 600 Madison Avenue, 8th Floor New York, NY 10022 Telephone: (212) 759-4433 Facsimile: (212) 759-5532 Email: mgreenberg@alvarezandmarsal.com About Lucky Brand Dungarees Founded in Los Angeles, California in 1990, Lucky Brand Dungarees, LLC is an apparel lifestyle brand that designs, markets, sells, distributes and licenses a collection of contemporary premium fashion apparel under the "Lucky Brand" name. Visit https://www.luckybrand.com for more information. Lucky Brand and four of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Texas Lead Case No. 20-11768) on July 3, 2020. Christopher Cansiani, chief financial officer, signed the petitions. Judge Christopher S. Sontch presides over the cases. At the time of the filing, Debtors disclosed assets of between $100 million and $500 million and liabilities of the same range. Debtors have tapped Young Conaway Stargatt & Taylor LLP and Latham & Watkins LLP as their legal counsel; Berkeley Research Group, LLC as restructuring advisor; and Houlihan Lokey Capital, Inc. as investment banker. Epiq Corporate Restructuring, LLC is the claims and noticing agent. On July 17, 2020, the U.S. Trustee for Region 3 appointed a committee of unsecured creditors. Pachulski Stang Ziehl & Jones, LLP and Alvarez & Marsal North America, LLC serve as the committee's legal counsel and financial advisor, respectively. LUCKY BRAND: Committee Hires Pachulski Stang as Legal Counsel ------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Lucky Brand Dungarees, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Pachulski Stang Ziehl & Jones, LLP as its legal counsel. The firm will render these legal services: (a) Represent the committee in its consultations with Debtors regarding the administration of their Chapter 11 cases; (b) Advise the committee with respect to Debtors' retention of bankruptcy professionals and advisors; (c) Assist the committee in analyzing Debtors' assets and liabilities, investigating the extent and validity of liens and participating in and reviewing any proposed asset sale, asset disposition, financing arrangement and cash collateral stipulation; (d) Assist the committee in any manner relevant to reviewing and determining Debtors' rights and obligations under their leases and executory contracts; (e) Assist the committee in investigating the acts, conduct, assets, liabilities and financial condition of Debtors, the operations of Debtors' business and their desirability to continue any portion of those operations, and other matters relevant to the cases or to the formulation of a Chapter 11 plan; (f) Advise the committee in connection with any sale of Debtors' assets; (g) Assist the committee in the negotiation, formulation or filing of objections to any plan of liquidation or reorganization; (h) Advise the committee of its powers and its duties under the Bankruptcy Code and the Bankruptcy Rules; (i) Assist in the evaluation of claims and represent the committee in litigation matters; and (j) Provide other legal services that are necessary in Debtors' Chapter 11 cases. The standard hourly rates for professionals and paralegals presently designated to represent the committee are as follows: Partners/Counsel $675 - $1,495 Associates $625 - $725 Paralegals $395 - $425 In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. Bradford Sandler, Esq., a partner at Pachulski, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Bradford J. Sandler, Esq. Pachulski Stang Ziehl & Jones, LLP 919 North Market Street, 17th Floor Wilmington, DE 19801 Telephone: (302) 652-4100 Facsimile: (302) 652-4400 Email: bsandler@pszjlaw.com About Lucky Brand Dungarees Founded in Los Angeles, California in 1990, Lucky Brand Dungarees, LLC is an apparel lifestyle brand that designs, markets, sells, distributes and licenses a collection of contemporary premium fashion apparel under the "Lucky Brand" name. Visit https://www.luckybrand.com for more information. Lucky Brand and four of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Texas Lead Case No. 20-11768) on July 3, 2020. Christopher Cansiani, chief financial officer, signed the petitions. Judge Christopher S. Sontch presides over the cases. At the time of the filing, Debtors disclosed assets of between $100 million and $500 million and liabilities of the same range. Debtors have tapped Young Conaway Stargatt & Taylor LLP and Latham & Watkins LLP as their legal counsel; Berkeley Research Group, LLC as restructuring advisor; and Houlihan Lokey Capital, Inc. as investment banker. Epiq Corporate Restructuring, LLC is the claims and noticing agent. On July 17, 2020, the U.S. Trustee for Region 3 appointed a committee of unsecured creditors. Pachulski Stang Ziehl & Jones, LLP and Alvarez & Marsal North America, LLC serve as the committee's legal counsel and financial advisor, respectively. MASON JAR: Seeks to Hire Van Horn Law Group as Legal Counsel ------------------------------------------------------------ Mason Jar Cafe, II, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Van Horn Law Group, P.A. as its legal counsel. The firm will render these services in connection with Debtor's Chapter 11 case: (a) give advice to Debtor with respect to its powers and duties and the continued management of its financial matters; (b) advise Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare court papers; (d) protect the interest of Debtor in all matters pending before the court; and (e) represent Debtor in negotiation with its creditors in the preparation of a bankruptcy plan. The firm will be paid at hourly rates as follows: Chad Van Horn, Esq. $450/hour Associates $350/hour Jay Molluso $250/hour Law Clerks $200/hour Paralegals $200/hour Chad Van Horn, Esq., a founding partner at Van Horn, and Melissa Goolsarran Ramnauth, Esq., a counsel and regular associate at Van Horn, disclosed in court filings that their firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Van Horn can be reached through: Chad Van Horn, Esq. Melissa Goolsarran Ramnauth, Esq. Van Horn Law Group P.A. 330 N Andrews Ave Ste 450 Fort Lauderdale, FL 33301-1012 Telephone: (954) 765-3166 Email: chad@cvhlawgroup.com About Mason Jar Cafe, II, Inc. Mason Jar Cafe, II, Inc., a Fort Lauderdale, Fla.-based American restaurant, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 20-18829) on Aug. 17, 2020. At the time of the filing, Debtor had estimated assets of up to $50,000 and liabilities of between $100,000 and $500,000. Judge Peter D. Russin oversees the case. Van Horn Law Group, P.A. is Debtor's legal counsel. MDI CREATIVE: Seeks to Tap Rountree Leitman as Legal Counsel ------------------------------------------------------------ MDI Creative, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Rountree Leitman & Klein, LLC as its legal counsel. The firm will render these professional services: (a) advise Debtor of its powers and duties in the management of its property; (b) prepare legal papers; (c) assist in examining claims of creditors; (d) assist in the preparation of disclosure statement and plan of reorganization and in obtaining confirmation of the plan; and (e) perform all other legal services for Debtor in connection with its Chapter 11 case. The firm will be paid at hourly rates as follows: William A. Rountree, Attorney $475 Hal Leitman, Attorney $425 David S. Klein, Attorney $425 Alexandra Dishun, Attorney $425 Benjamin R. Keck, Attorney $375 Alice Blanco, Attorney $350 Elizabeth A. Childers, Attorney $350 Kristin Harripaul, Law clerk $175 Luke Owens, Law clerk $175 Sharon M. Wenger, Paralegal $195 Megan Winokur, Paralegal $150 Catherine Smith, Paralegal $150 Yasmi Alamin, Paralegal $150 Rountree received a retainer in the amount of $15,000 from Debtor. Benjamin Keck, Esq., a partner at Rountree, disclosed in court filings that the firm has had no connections with Debtor, its attorneys or any party, which could be adverse to the estate. The firm can be reached through: Benjamin R. Keck, Esq. Rountree Leitman & Klein, LLC Century Plaza I 2987 Clairmont Road, Suite 175 Atlanta, GA 30329 Telephone: (404) 584-1238 Facsimile: (404) 704-0246 Email: bkeck@rlklawfirm.com About MDI Creative MDI Creative, Inc. is a full-service design and build millwork firm for commercial and museum uses. Visit https://www.mdicusa.com for more information. On Aug. 24, 2020, MDI Creative filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 20-69273). Pat Malone, chief executive officer, signed the petition. At the time of the filing, Debtor disclosed estimated assets of less than $50,000 and estimated liabilities of $1 million to $10 million. Rountree Leitman & Klein, LLC serves as Debtor's legal counsel. NEIMAN MARCUS: Closes Stores at Hudson Yards -------------------------------------------- Bloomberg News reports that Neiman Marcus Group Inc., the luxury retailer that's making its way through bankruptcy proceedings, said it will permanently close its store in New York City's Hudson Yards along with three other U.S. locations. Its planned exit from Hudson Yards comes just over a year after the mall at the mega-project opened to much fanfare in March 2019. The three-story store -- Neiman Marcus's first Manhattan location -- served as an anchor tenant to draw shoppers to the far west side development. About Neiman Marcus Group Neiman Marcus Group LTD, LLC -- https://www.neimanmarcus.com/ -- is a luxury omni-channel retailer conducting store and online operations principally under the Neiman Marcus, Bergdorf Goodman, and Last Call brand names. It also operates the Horchow e-commerce website offering luxury home furnishings and accessories. Since opening in 1907 with just one store in Dallas, Neiman Marcus and its affiliates have strategically grown to 67 stores across the United States. Weeks after being forced to temporarily shutter stores due to the coronavirus pandemic, Neiman Marcus Group and 23 affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-32519) on May 7, 2020, after reaching an agreement with a significant majority of our creditors to undergo a financial restructuring that will substantially reduce the Company's debt load, and provide access to considerable financing to ensure business continuity. Kirkland & Ellis LLP is serving as legal counsel to the Company, Lazard Ltd. is serving as the Company's investment banker, and Berkeley Research Group is serving as the Company's financial advisor. Stretto is the claims agent, maintaining the page https://cases.stretto.com/NMG Judge David R. Jones oversees the cases. The Extended Term Loan Lenders are represented by Wachtell, Lipton, Rosen & Katz as legal counsel, and Ducera Partners LLC as investment banker. The Noteholders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel and Houlihan Lokey as investment banker. NEKTAR THERAPEUTICS: Egan-Jones Cuts Sr. Unsecured Ratings to CCC ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 28, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Nektar Therapeutics to CCC from CCC+. Headquartered in San Francisco, California, Nektar Therapeutics is a clinical-stage biopharmaceutical company which develops a pipeline of drug candidates that utilize company platforms. NORTHERN DYNASTY: Names Westerlund to VP, Investor Relations Post ----------------------------------------------------------------- Northern Dynasty Minerals Ltd. welcomes Mike Westerlund, a seasoned Investor Relations executive with more than 20 years' experience in the North American mining and metals industry, to its senior management team as vice president, Investor Relations. Most recently, Mr. Westerlund served as vice president, Investor Relations for Hecla Mining Company, a US$3 billion NYSE-listed precious metals mining company with five operating mines in Canada, the U.S. and Mexico, where he directed the Investor Relations department for the past eight years. Previously, Mr. Westerlund worked with a series of mineral exploration and mining firms with development-stage and operating assets throughout North America, in both precious and base metals. "We are very pleased to have an Investor Relations executive of Mike's caliber and experience join our team," said Ron Thiessen, Northern Dynasty president and CEO. "His experience working with investors of all sizes and levels of sophistication, coupled with a deep knowledge of the North American and global mining and metals sector, are a great fit for Northern Dynasty as we complete the federal permitting process for Pebble, and initiate the next stage of detailed engineering design, final permitting and project construction." With a favourable Final Environmental Impact Statement received July 2020, and a federal Record of Decision expected this fall, the Pebble Project stands at the threshold of the next stage of its development. Once Pebble's key federal permits are in place (a critical milestone and de-risking event expected within weeks), Thiessen said Northern Dynasty has the potential to appeal to an entirely new class of growth and value-focused investors. "I'm extremely excited to bring my experience and passion for the transformative power of responsible mineral development to help a whole new class of investors understand the tremendous value and growth potential that an investment in Northern Dynasty represents," Westerlund said. "Pebble is a unique and special project that has the potential to materially reward shareholders and project stakeholders alike, especially Alaskans and, for that matter, all Americans." "It's a very exciting time to join the Northern Dynasty and Pebble Partnership teams." About Northern Dynasty Minerals Northern Dynasty -- http://www.northerndynastyminerals.com-- is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty's principal asset, owned through its wholly-owned Alaska-based US subsidiary Pebble Limited Partnership, is a 100% interest in a contiguous block of 2,402 mineral claims in southwest Alaska, including the Pebble deposit. The Company is listed on the Toronto Stock Exchange under the symbol "NDM" and on the NYSE American Exchange under the symbol "NAK". Northern Dynasty reported a net loss of C$69.19 million for the year ended Dec. 31, 2019, compared to a net loss of C$15.96 million for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $154.62 million in total assets, C$16.12 million in total liabilities, and C$138.50 million. Deloitte LLP, in Vancouver, Canada, the Company's auditor since 2009, issued a "going concern" qualification in its report dated March 30, 2020, citing that the Company incurred a consolidated net loss of $69 million during the year ended Dec. 31, 2019 and, as of that date, the Company had a working capital deficit of $0.2 million and the consolidated deficit was $556 million. These conditions, along with other matters, raise substantial doubt about its ability to continue as a going concern. OASIS PETROLEUM: Egan-Jones Lowers Senior Unsecured Ratings to CC ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 26, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Oasis Petroleum Inc. to CC from CCC-. Headquartered in Houston, Texas, Oasis Petroleum Inc. operates as an oil and gas exploration company. OCCIDENTAL PETROLEUM: Egan-Jones Cuts Sr. Unsecured Ratings to B+ ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Occidental Petroleum Corporation to B+ from BB-. Headquartered in Houston, Texas, Occidental Petroleum Corporation explores for, develops, produces, and markets crude oil and natural gas. ODYSSEY ENGINES: Taps Pat Duggins Consulting as Appraiser --------------------------------------------------------- Odyssey Engines, LLC and its affiliates received approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Pat Duggins Consulting Services Inc. to conduct an appraisal of their aircraft engines, equipment and tooling. The firm will receive a retainer in the amount of $10,000 for its services. Patrick Duggins, president of Pat Duggins Consulting, disclosed in court filings that his firm is a "disinterested person" as defined in Sections 101(14) and 327(a) of the Bankruptcy Code. The firm can be reached through: Patrick Duggins Pat Duggins Consulting Services Inc. 10404 S. Lynn Lane Road Broken Arrow, OK 74011 Telephone: (918) 451-7616 Facsimile: (918) 451-7617 Email: info@patduggins.com About Odyssey Engines Odyssey Engines, LLC and its affiliates engage in the business of commercial and industrial machinery and equipment rental and leasing. On June 23, 2020, Odyssey Engines and its affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 20-16772). The petitions were signed by David Alan Boyer, president. At the time of the filing, each Debtor disclosed assets of $1 million to $10 million and liabilities of $10 million to $50 million. Judge Robert A. Mark oversees the cases. Debtors have tapped David R. Softness, P.A. as legal counsel, GGG Partners, LLC as chief restructuring officer, Bedford Advisers as financial advisor, and Pat Duggins Consulting Services Inc. as appraiser. OFFICE DEPOT: Egan-Jones Lowers Senior Unsecured Ratings to CCC+ ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 25, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Office Depot Inc to CCC+ from B-. EJR also downgraded the rating on FC commercial paper issued by the Company to C from A3. Headquartered in Boca Raton, Florida, The ODP Corporation is a holding company which operates in the USA. OMNIQ CORP: Gets $1.3M Orders for Mobile Data Collection Devices ---------------------------------------------------------------- OMNIQ Corp. has received additional orders with a total value of approximately $1.3 million from a leading global transport and logistics company. Initial orders worth approximately $2.2 million from this customer for the supply of mobile data collection devices equipped with advanced communication capabilities were announced on Aug. 24, 2020, bringing the total to approximately $3.5 million. The customer is an industry-leading third-party logistics (3PL) company that provides contract distribution services for many different industries and companies throughout the U.S. OMNIQ will supply scan guns and wearable computers to facilitate order fulfillment and general warehouse management functions. Delivery of the devices is expected to be completed this year. Shai Lustgarten, president and CEO of OMNIQ, stated, "In August, we announced the receipt of $2.2M worth of orders from a distinguished transport and logistics company and that we expected additional orders of approximately $800,000. We are very pleased to quickly fulfill and exceed this expectation with $1.3 million in additional orders. These increased follow-up orders represent another strong vote of confidence from a multibillion dollar company that has chosen OMNIQ for the supply of its critical operational needs. Following our recent $5.5 million order from a leading supermarket chain in June and the $4.0 million order from a leading healthcare and pharmaceuticals supplier in July, these new orders reaffirm our solid position as a supplier of choice for sophisticated computerized equipment to leading Fortune 500 companies." About OMNIQ Corp. Headquartered in Salt Lake City, Utah, OMNIQ Corp. (OTCQB: OMQS) -- http://www.omniq.com-- provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver data collection, real time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management and access control applications. The technology and services provided by the Company help clients move people, assets and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments. Omniq reported a net loss attributable to common stockholders of $5.31 million for the year ended Dec. 31, 2019, compared to a net loss attributable to common stockholders of $5.41 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $42.60 million in total assets, $42.76 million in total liabilities, and a total stockholders' deficit of $156,000. Haynie & Company, in Salt Lake City, Utah, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 30, 2020, citing that the Company has a deficit in stockholders' equity, and has sustained recurring losses from operations. This raises substantial doubt about the Company's ability to continue as a going concern. OMNIQ CORP: Incurs $1.99 Million Net Loss in Second Quarter ----------------------------------------------------------- OMNIQ Corp. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss attributable to the company of $1.99 million on $12.68 million of total revenues for the three months ended June 30, 2020, compared to a net loss attributable to the company of $530,000 on $14.13 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 $4.86 million on $26.47 million of total revenues compared to a net loss attributable to the company of $1.16 million on $32.75 million of total revenues for the six months ended June 30, 2019. As of June 30, 2020, the Company had $41.33 million in total assets, $42.05 million in total liabilities, and a total stockholders' deficit of $725,000. As of June 30, 2020, the Company had a working capital deficit of $22.5 million and an accumulated deficit of $50.0 million. The Company said its continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis. Management's plan to eliminate the going concern situation includes, but is not limited to, the continuation of improving cash flow, maintaining moderate cost reductions, the creation of additional sales and profits across its product lines, and the obtaining of sufficient financing to restructure current debt in a manner more in line with the Company's improving cash flow and cost reduction successes. The Company has also diversified its sourcing and procurement of materials and finished goods. The Company also completed a debt settlement with a related party in exchange for equity, eliminating future needs for cash in servicing debt. As of June 30, 2020, the Company had cash in the amount of $4.0 million of which $533,000 is on deposit and restricted as collateral for a letter of credit and a corporate purchasing card, and a working capital deficit of $22.5 million, compared to cash in the amount of $2.1 million, of which $533,000 was restricted, and a working capital deficit of $20.2 million as of Dec. 31, 2019. The Company's operations resulted in net cash used of $549,000 during the six months ended June 30, 2020, compared to net cash provided of $5.2 million during the six months ended June 30, 2019, a decrease of $5.7 million. The changes in the non-cash working capital accounts are primarily attributable the large increases in accounts receivable and accounts payable during the first six months of 2020. Net cash provided by investing activities was $48,000 for the six months ended June 30, 2020, compared to net cash used of $375,000 for the six months ended June 30, 2019, an increase of $423,000, primarily attributable to a small increase in other assets during the first six months of 2020, as opposed to a modest decrease in other assets during the first six months of 2019. The Company's financing activities provided net cash of $2.3 million during the six months ended June 30, 2020, compared to net cash used of $2.5 million during the six months ended June 30, 2019. For the six months ended June 30, 2020, the Company received cash from the line of credit with Action Capital of approximately $2.1 million and also from the PPP Loan of $888,000. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/Archives/edgar/data/278165/000149315220015578/form10-q.htm About OMNIQ Corp. Headquartered in Salt Lake City, Utah, OMNIQ Corp. (OTCQB: OMQS) -- http://www.omniq.com-- provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver data collection, real time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management and access control applications. The technology and services provided by the Company help clients move people, assets and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments. Omniq reported a net loss attributable to common stockholders of $5.31 million for the year ended Dec. 31, 2019, compared to a net loss attributable to common stockholders of $5.41 million for the year ended Dec. 31, 2018. As of March 31, 2020, the Company had $42.60 million in total assets, $42.76 million in total liabilities, and a total stockholders' deficit of $156,000. Haynie & Company, in Salt Lake City, Utah, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 30, 2020, citing that the Company has a deficit in stockholders' equity, and has sustained recurring losses from operations. This raises substantial doubt about the Company's ability to continue as a going concern. ONEWEB GLOBAL: Seeks to Hire Grant Thornton as Tax Consultant ------------------------------------------------------------- OneWeb Global Limited and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Grant Thornton LLP as their tax consultant. The firm will render these services: (a) Assist Debtors in identifying, computing and documenting available federal and state research and development (R&D) tax credits for tax provision purposes; (b) Perform an R&D tax credit study for the tax year ended Dec. 31, 2019; (c) Assist Debtors in identifying qualified research activities, gathering qualitative and quantitative documentation to support Debtors' qualified research activities and related expenses, employee interviews, gathering qualified cost information, computing the credit for tax purposes and preparing a report of the findings and approval; (d) Provide Debtors with an electronic report of the study outlining the methodology followed to identify qualified research activities and qualified research expenditures, the credit calculations, and supporting contemporaneous documentation. The firm's hourly rates are as follows: National Tax Specialist Partner/Principal/Managing Director $571 Partner/Principal/Managing Director $532 Senior Manager $487 Manager $428 Senior Associate $291 Staff $210 The firm will also charge Debtors for out-of-pocket expenses incurred. Ryan Coleman, a managing director at Grant Thornton, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ryan Coleman Grant Thornton LLP 2001 Market St., Suite 700 Philadelphia, PA 19103 Telephone: (215) 561-4200 Facsimile: (215) 561-1066 Email: ryan.coleman@us.gt.com About OneWeb Global Limited Founded in 2012, OneWeb Global Limited is a global communications company developing a low-Earth orbit satellite constellation system and associated ground infrastructure, including terrestrial gateways and end-user terminals, capable of delivering communication services for use by consumers, businesses, governmental entities, and institutions, including schools, hospitals, and other end-users whether on the ground, in the air, or at sea. OneWeb's business consists of the development of the OneWeb System, which has included the development of small-next generation satellites that have been mass-produced through a joint venture and the development of specialized connections between the satellite system and the internet and other communications networks through the SNPs. For more information, visit https://www.oneweb.world/ OneWeb Global Limited and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 20-22437) on March 27, 2020. The petitions were signed by Thomas Whayne, chief financial officer. At the time of the filing, Debtors disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge Robert D. Drain oversees the cases. Debtors have tapped Milbank LLP as counsel, Guggenheim Securities, LLC as investment banker, FTI Consulting, Inc. as financial advisor, Grant Thornton LLP as tax consultant, and Omni Agent Solutions as claims, noticing and solicitation agent. Dixon Hughes Goodman LLP provides tax consulting and compliance services. ONEWEB GLOBAL: Taps Dixon Hughes to Provide Tax Consulting Services ------------------------------------------------------------------- OneWeb Global Limited and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Dixon Hughes Goodman LLP. The firm will provide these tax consulting and compliance services: (a) Prepare U.S. income tax return and state, local and other tax returns for WorldVu Development LLC and WorldVu JV Holdings, LLC; (b) Prepare the IFRS provision for the year ended Dec. 31, 2019 and quarterly interim periods of 2020 (from first quarter to third quarter of 2020), as needed, and the related workpapers necessary to support Debtors' audit; (c) Prepare U.K. generally accepted accounting practices provision for the year ended Dec. 31, 2019; and (d) Advise Debtors on the need for a valuation allowance and support for realization of the U.S. and foreign deferred tax assets. The firm's hourly rates are as follows: Managing Director/Partner $475 - $560 Manager $290 - $455 Experienced Staff $190 - $255 In the 90 days prior to the petition date, the Debtors paid the firm the sum of $56,481 for services performed. As of the petition date, approximately $52,000 was outstanding with respect to invoices for pre-bankruptcy services performed by the firm. Travis Sherman, a partner at Dixon Hughes, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Travis Sherman Dixon Hughes Goodman LLP 1410 Spring Hill Road, Suite 500 Tysons, VA 22102 Telephone: (703) 970-0400 Facsimile: (703) 970-0401 Email: travis.sherman@dhg.com About OneWeb Global Limited Founded in 2012, OneWeb Global Limited is a global communications company developing a low-Earth orbit satellite constellation system and associated ground infrastructure, including terrestrial gateways and end-user terminals, capable of delivering communication services for use by consumers, businesses, governmental entities, and institutions, including schools, hospitals, and other end-users whether on the ground, in the air, or at sea. OneWeb's business consists of the development of the OneWeb System, which has included the development of small-next generation satellites that have been mass-produced through a joint venture and the development of specialized connections between the satellite system and the internet and other communications networks through the SNPs. For more information, visit https://www.oneweb.world/ OneWeb Global Limited and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 20-22437) on March 27, 2020. The petitions were signed by Thomas Whayne, chief financial officer. At the time of the filing, Debtors disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge Robert D. Drain oversees the cases. Debtors have tapped Milbank LLP as counsel, Guggenheim Securities, LLC as investment banker, FTI Consulting, Inc. as financial advisor, Grant Thornton LLP as tax consultant, and Omni Agent Solutions as claims, noticing and solicitation agent. Dixon Hughes Goodman LLP provides tax consulting and compliance services. OUTFRONT MEDIA: Egan-Jones Lowers Senior Unsecured Ratings to B --------------------------------------------------------------- Egan-Jones Ratings Company, on August 25, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Outfront Media Inc to B from BB-. EJR also downgraded the rating on commercial paper issued by the Company to B from A3. Headquartered in New York, New York, OUTFRONT Media Inc. leases advertising space on out-of-home advertising structures and sites. PACIFICO NATIONAL: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Pacifico National, Inc., d/b/a AmEx Pharmacy DBA American Excellence Pharmacy 1515 Elizabeth Street, Suite J Melbourne, FL 32901 Business Description: AmEx Pharmacy -- https://amexpharmacy.com -- is a nationwide compounding pharmacy specializing in dermatology and the development of topical therapies. AmEx Pharmacy services patients in 38 states throughout the United States. Chapter 11 Petition Date: September 3, 2020 Court: United States Bankruptcy Court Middle District of Florida Case No.: 20-05009 Debtor's Counsel: Thomas H. Yardley, Esq. LAW OFICE OF THOMAS H. YARDLEY 1970 Michigan Avenue Bldg. D Cocoa, FL 32922-5723 Tel: 321-633-0400 E-mail: bankruptcy@yardleylaw.net Total Assets: $363,794 Total Liabilities: $6,583,984 The petition was signed by Mark L. Sangree, 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://www.pacermonitor.com/view/5R37M3Q/Pacifico_National_Inc_dba_AmEx__flmbke-20-05009__0001.0.pdf?mcid=tGE4TAMA PERRY FARMS: Seeks to Hire Ivey McClellan as Bankruptcy Counsel --------------------------------------------------------------- Perry Farms, LLC seeks approval from the U.S. Bankrupty Court for the Western District of North Carolina to hire Ivey, McClellan, Gatton & Siegmund, LLP as its bankruptcy counsel. The firm will provide the following services: a. advise Debtor of its powers and duties in the continued operation of its business and management of its properties; b. negotiate, prepare and pursue confirmation of a Chapter 11 plan and approval of a disclosure statement, and all reorganization agreements; c. prepare court papers; d. represent Debtor in all adversary proceedings; e. represent Debtor in all litigation related to the case; f. appear in court to protect Debtor's interests; and g. perform all other legal services. The hourly rates for the firm's primary attorneys and paralegals expected to provide services to Debtor are as follows: Samantha K. Brumbaugh $375 Dirk W. Siegmund $425 Charles M. Ivey, III $500 Darren McDonough $375 Melissa Murrell $150 Tabitha Coltrane $150 Heather Bray $150 The firm received $937.50 for its pre-bankruptcy services and reimbursement of $1,717 for the Chapter 11 filing fee. Fees and reimbursement of expenses were deducted from the $7,500 retainer paid by Debtor on Aug. 19. Samantha Brumbaugh, Esq., a partner at Ivey McClellan, disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Samantha K. Brumbaugh, Esq. Ivey, McClellan, Gatton & Siegmund, LLP 100 South Elm Street, Suite 500 Greensboro, NC 27401 Telephone: (336) 274-4658 Facsimile: (336) 274-4540 Email: dws@iveymcclellan.com About Perry Farms LLC Moore Haven, Fla.-based Perry Farms, LLC, a company in the crop production industry, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C. Case No. 20-50338) on Aug. 19, 2020. At the time of the filing, Debtor had estimated assets of up to $50,000 and liabilities of between $100,000 and $500,000. Judge Laura T. Beyer oversees the case. Ivey, McClellan, Gatton & Siegmund, LLP is Debtor's legal counsel. PG&E CORP: Canyon Capital Appeals Bankruptcy Plan Approval ---------------------------------------------------------- Mark Chediak of Bloomberg News reports that Josh Friedman's Canyon Capital Advisors LLC filed notice that it will appeal a U.S. Bankruptcy Court decision to approve PG&E Corp.'s bankruptcy plan. Canyon said it elects to have the appeal heard by the U.S. District Court for the Northern District of California rather than by the Bankruptcy Appellate Panel for the Ninth Circuit 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. PLAINS ALL: Egan-Jones Lowers Senior Unsecured Ratings to BB- ------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Plains All American Pipeline LP to BB- from BB. Headquartered in Houston, Texas, Plains All American Pipeline, L.P. is involved in intrastate crude oil pipeline transportation and terminalling storage activities. PLANTERS EXCHANGE: Seeks to Hire Allen P. Turnage as Legal Counsel ------------------------------------------------------------------ The Planters Exchange, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Florida to employ the Law Office of Allen P. Turnage to handle its Chapter 11 case. The firm's services will be provided mainly by Allen Turnage, Esq., who will be paid at the rate of $400 per hour. The attorney received $10,000 from Debtor prior to the filing of the case. Mr. Turnage, Esq., disclosed in court filings that he represents no other entity in connection with the case and he has no connection with the U.S. trustee, any creditor or other party-in-interest. The attorney can be reached at: Allen P. Turnage, Esq. Law Office of Allen P. Turnage P.O. Box 15219 Tallahassee FL 32317 Telephone: (850) 224-3231 Facsimile: (850) 224-2525 Email: service@turnagelaw.com About The Planters Exchange Inc. The Planters Exchange, Inc. is a Havana, Fla.-based company that sells used merchandise such as clothing, antiques, furniture, books and jewelry. Planters Exchange filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Lead Case No. 20-40322) on Aug. 19, 2020. Planters Exchange President Wayne H. Gregory signed the petition. At the time of the filing, Debtor disclosed total assets of $1,074,500 and total liabilities of $405,000. The Law Office of Allen P. Turnage serves as Debtor's legal counsel. PLUM CIRCLE: Chapter 11 Trustee Taps Trenam as Legal Counsel ------------------------------------------------------------ Steven S. Oscher, Chapter 11 trustee for the bankruptcy estate of Plum Circle Community Trust, received approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Trenam, Kemker, Scharf, Barkin, Frye, O'Neill & Mullis, P.A. as his legal counsel. The trustee has selected the firm and its attorney, Lara Roeske Fernandez, Esq., because of their experience in matters related to the administration of Chapter 11 estates. Ms. Fernandez will be paid at the rate of $435 per hour for her services while the paralegal assisting her will charge $210 per hour. Ms. Fernandez disclosed in court filings that she and her firm are "disinterested persons" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Lara Roeske Fernandez, Esq. Trenam, Kemker, Scharf, Barkin, Frye, O'Neill & Mullis, P.A. 101 E. Kennedy Blvd., Suite 2700 Tampa, FL 33602 Telephone: (813) 223-7474 Email: lfernandez@trenam.com About Plum Circle Community Trust Plum Circle Community Trust sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-04249) on May 31, 2020. At the time of the filing, Debtor had estimated assets of between $1 million and $10 million and liabilities of between $500,001 and $1 million. Judge Catherine Peek McEwen oversees the case. Dion R. Hancock, P.A. is Debtor's legal counsel. Steven S. Oscher was appointed as Chapter 11 trustee for Debtor's bankruptcy estate on Aug. 19, 2020. The trustee is represented by Trenam, Kemker, Scharf, Barkin, Frye, O'Neill & Mullis, P.A. PRESSER CONSTRUCTION: Files Emergency Bid to Use Cash Collateral ---------------------------------------------------------------- Presser Construction has filed an emergency motion asking the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, for entry of interim and final orders authorizing the use of cash collateral of existing and purported secured lenders, granting adequate protection for the use of cash collateral, and scheduling a final hearing pursuant to Bankruptcy Rule 4001 as to the use of cash collateral. Presser filed its Chapter 11 as a small business case with a Subchapter V designation and seeks authority to use Cash Collateral of its Secured Lenders to the extent that its lenders have an interest in cash collateral. As adequate protection for the diminution in value of cash collateral, Presser will provide monthly adequate protection payments, maintain the value of its business as a going-concern, provide replacement liens upon now owned and after-acquired cash, and provide super priority administrative claims. Presser's known lenders asserting liens on its property are: Secured (Estimated) Lender Claim ------- ----------- Wallwork Financial $194,051.06 Siemens Financial Services $243,745.27 US Small Business Administration $150,000.00 CIT Direct Capital $220,347.02 Happy State Bank $1,024,015.51 CAT Excavators $1,741,866.00 The Debtor says the lenders' collateral consists of equipment and all proceeds. In the SBA's case, the collateral consists of equipment, all proceeds and all records and data relating thereto. * * * The Bankruptcy Court has entered an interim cash collateral order authorizing the Debtor to use cash collateral of Happy State Bank through September 8. Judge Eduardo V. Rodriguez noted in the interim order that the Debtor requires the use of the Cash Collateral of Happy State Bank and potentially that of the United States Small Business Administration, the only creditors presently known to the Debtor as owning or claiming an interest in Cash Collateral, in order to pay pre- and post-petition wages and other specified ordinary course costs and expenses to maintain the value of its bankruptcy estate and the going concern status of the Debtor. A full-text copy of the emergency motion is available for free at https://bit.ly/3ivcnAS from PacerMonitor.com. A full-text copy of the interim order is available for free at https://bit.ly/2Z2HJaw from PacerMonitor.com. About Presser Construction Presser Construction provides oil and gas pipeline construction, dirtwork services, utility construction, hydrovac services, and railroad construction services. It filed for voluntary Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 20-33986) on August 6, 2020. The case is assigned to Judge Eduardo V. Rodriguez. James Q. Pope, Esq. of Pope Law Firm is the debtor's counsel. In its petition, the Debtor listed under $500,000 in estimated assets and $1 million to $10 million in liabilities. PROFESSIONAL INVESTORS: Investors Send Casey Units to Bankruptcy ---------------------------------------------------------------- Braden Cartwright and Jack Truesdale, writing for PTR Eyeslight, reports that investors snared in a large real estate scam are seeking to recover their money by forcing the company they invested in to declare bankruptcy. Seven people filed an involuntary petition against Professional Investors Security Fund, one of two companies under federal investigation after their owner, Novato real estate mogul Ken Casey, died in May. Professional Investors Security Fund and Professional Financial Investors engaged in serious misconduct for nearly three decades leading up to Mr. Casey's death, according to restructuring officers. More than 1,500 investors believed the interest payments they received were from collateral for their loan, when in fact a substantial amount was funded by new investments. Attorneys reported the findings to the Securities and Exchange Commission, which launched an investigation that is expected to wrap up in the fall, and all interest payments and withdrawals were frozen. Now, the seven petitioners are seeking a return of over $5 million that they invested in Professional Investors Security Fund, which does not have enough value to fully return investments. The company has until Aug. 6 to either consent to chapter 11 bankruptcy or contest the filing with a judge. Michael Hogan, the companies' chief restructuring officer, told investors that the restructuring team is evaluating an appropriate response, and if consenting to the petition is the best way to maximize value for the investors, then they will do so. He also said the companies will likely enter bankruptcy or receivership, so that decisions will benefit from judicial supervision and court approval. "Our decision-making process is and will continue to be driven by what is in the best interest of the investors, and that includes our review of this involuntary petition," Mr. Hogan wrote in a letter last Friday. Three of the petitioners live in Point Reyes Station: Liza Goldblatt is seeking $188,455, Andrew Michaels is seeking $377,250, and Mary Michaels is seeking $430,422. The most-invested petitioner, Jacques Achsen of San Anselmo, is seeking $3.3 million. One of the petitioners, who requested anonymity, told the Light that they filed the petition because of the dearth of information coming from the restructuring team and to protect the assets as quickly as possible. The restructuring team has sent six letters to investors since June 4, with varying amounts of information. In the letters, they said they will have a plan to address all investment types within two months from now. They are sorting through decades of financial misconduct by Mr. Casey's two companies, which owned 30 properties in Marin and southern Sonoma County, consisting of over 600,000 square feet of commercial space and over 750 apartments. Investors were given a deed of trust for one or more properties or a straight note, and annual interest payments fluctuated between five and 10 percent. The company's pitch was that property values reliably rise in Marin because new development is almost nonexistent. Some local investors were given a commission to bring in others. Mr. Casey, who had a record of tax fraud, was well known in Marin for his business ventures, philanthropy and recent political involvement. Professional Investors Security Fund, Inc., was subject to an involuntary Chapter 11 bankruptcy petition (Bankr. N.D. Cal. Case No. 20-30579) filed by holders of promissory notes, led by Jacques Achsen, on July 16, 2020. The petitioners' attorneys: Debra Grassgreen, Esq. PACHULSKI STANG ZIEHL & JONES LLP 150 California Street, 15th Floor San Francisco, CA 94111 Tel: (415) 217-5102 E-mail: dgrassgreen@pszjlaw.com PURDUE PHARMA: Bankruptcy Case Should be Finished by February ------------------------------------------------------------- A bankruptcy plan that would distribute billions of dollars to opioid victims and other creditors of the drug maker should be ready for court review by February, U.S. Bankruptcy Judge Robert Drain told lawyers during a court hearing. That plan could be put together this fall after the Sackler family, which owns Purdue Pharma LP, and creditors have a chance to negotiate final details, lawyers for the family and Purdue told Drain during the hearing, which was conducted by telephone About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation facing the Company. The Company's consolidated balance sheet at Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain, in White Plains, New York, has been assigned to oversee Purdue's Chapter 11 case. Davis Polk & Wardwell LLP and Dechert LLP are serving as legal counsel to Purdue. PJT Partners is serving as investment banker, and AlixPartners is serving as financial advisor. Prime Clerk LLC is the claims agent. RALPH LAUREN: Egan-Jones Lowers Senior Unsecured Ratings to BB+ --------------------------------------------------------------- Egan-Jones Ratings Company, on August 25, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Ralph Lauren Corporation to BB+ from BBB. Headquartered in New York, New York, Ralph Lauren Corporation designs, markets, and distributes men's, women's and children's apparel, accessories, fragrances, and home furnishings. REMORA PETROLEUM: Seeks to Hire Hunton Andrews as Legal Counsel --------------------------------------------------------------- Remora Petroleum, L.P. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Hunton Andrews Kurth, LLP as their legal counsel. The firm will render these legal services: (a) advise Debtors with respect to their powers and duties in the continued management and operation of their business; (b) advise Debtors on the conduct of their Chapter 11 cases; (c) attend meetings and negotiate with representatives of creditors and other parties-in-interest; (d) take all necessary actions to protect and preserve Debtors' estates; (e) prepare pleadings; (f) represent Debtors in connection with obtaining authority to use cash collateral and get post-petition financing; (g) appear before the court and any appellate courts; (h) advise Debtors regarding tax matters; (i) negotiate, prepare and seek approval of a disclosure statement, Chapter 11 plan of reorganization and all related documents; (j) advise Debtors in connection with any potential sale of their assets; (k) provide non-bankruptcy services to the extent requested by Debtors; and (l) perform all other necessary legal services in connection with Debtors' Chapter 11 cases. The hourly rates for the attorneys and paralegals at Hunton Andrews Kurth who are expected to handle the cases are as follows: Timothy A. (Tad) Davidson II $930 Joseph P. Rovira $845 Ashley L. Harper $650 Philip M. Guffy $645 Catherine A. Diktaban $500 Constance Andonian $395 Tina Canada $285 In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. Prior to the petition date, Hunton Andrews received $300,000 from Debtors as advance payment retainer. Timothy Davidson II, Esq., a partner at Hunton Andrews, disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Timothy A. "Tad" Davidson II, Esq. Hunton Andrews Kurth, LLP 600 Travis Street, Suite 4200 Houston, TX 77002 Telephone: (713) 220-4200 Facsimile: (713) 220-4285 Email: taddavidson@HuntonAK.com About Remora Petroleum Remora Petroleum, L.P. and its affiliates are engaged in the exploration, development, production and acquisition of conventional oil and gas assets, with a focus on assets that are heavy on proved developed producing (PDP) reserves. They have acquired assets in various locations since their formation in 2011. Remora Petroleum and four affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 20-34037) on Aug. 12, 2020. John T. Young, Jr., chief restructuring officer, signed the petitions. At the time of the filing, Debtors disclosed estimated assets of $10 million to $50 million and estimated liabilities of $50 million to $100 million. Judge David R. Jones oversees the cases. Debtors have tapped Hunton Andrews Kurth LLP as counsel, Conway MacKenzie Management Services, LLC as financial advisor, and Seaport Gordian Energy, LLC as investment banker. Donlin, Recano & Company, Inc. is the claims, noticing and solicitation agent. RLCH INC: Seeks Approval to Tap Herrick Feinstein as Legal Counsel ------------------------------------------------------------------ RLCH, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Herrick, Feinstein LLP as its legal counsel. The firm will render the following services: (a) advise Debtor with respect to its powers and duties in the continued management of its property, operation of its business, and administration of the estate; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest; (c) take all necessary actions to obtain financing; (d) prepare legal papers; (e) negotiate and prepare a Chapter 11 plan, disclosure statement and related agreements or documents, and take necessary actions to obtain confirmation of the plan; (f) advise Debtor in connection with any loan, sale of assets, auction and other transactions; (g) appear before the bankruptcy court, any appellate court and the U.S. trustee; and (h) perform other necessary legal services in connection with Debtor's Chapter 11 case. The firm's hourly rates are as follows: Partners $500 - $1,100 Counsel $465 - $800 Associates $275 - $550 Paraprofessionals/Specialists $280 - $620 Debtor paid Herrick $113,416.24 on July 23 for its pre-bankruptcy services. In addition, Debtor paid the firm $183,189.70, including a $150,000 retainer. The firm will seek reimbursement for out-of-pocket expenses incurred. Stephen Selbst, Esq., a member of Herrick, disclosed in court filings that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Stephen B. Selbst, Esq. Janice Goldberg, Esq. George V. Utlik, Esq. Rachel Ginzburg, Esq. 2 Park Avenue New York, NY 10016 Telephone: (212) 592-1400 Facsimile: (212) 592-1500 Email: sselbst@herrick.com jgoldberg@herrick.com gutlik@herrick.com rginzburg@herrick.com About RLCH Inc. RLCH Inc. engages in activities related to real estate. It owns a real property and building located at 144-69 Barclay Ave., Flushing, N.Y. RLCH sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-43052) on Aug. 24, 2020. RLCH president Lisa Lam signed the petition. At the time of the filing, Debtor was estimated to have assets of between $10 million and $50 million and liabilities of between $1 million and $10 million. Debtor has tapped Herrick, Feinstein, LLP as its legal counsel and Daniel Scouler of Scouler Kirchhein, LLC as its chief restructuring officer. RLCH INC: Seeks Court Approval to Hire CRO ------------------------------------------ RLCH, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Daniel Scouler of Scouler Kirchhein, LLC as its chief restructuring officer. Mr. Scouler will render the following services: (a) work with Debtor's management to perform financial reviews of Debtor; (b) evaluate Debtor's business plan and forecasted financial statements; (c) review and analyze potential size, source and terms of financing necessary to fund the Debtor through a Chapter 11 sales process, condo conversion or reorganization; (d) manage and direct the progress of the bankruptcy process; (e) communicate and negotiate with creditors and equity holders; (f) prepare and seek approval of a plan of reorganization; and (g) perform other services relating to Debtor's Chapter 11 case. The hourly rates for Scouler Kirchhein's professionals are as follows: Daniel Scouler $395 Patrick Scouler $195 In addition, the firm will seek reimbursement for out-of-pocket expenses incurred. Before the bankruptcy filing, Scouler Kirchhein was paid an advance retainer of $20,000. Daniel Scouler, a principal at Scouler Kirchhein, disclosed in court filings that neither him nor the firm has any connection with Debtor, its creditors, the U.S. trustee or any other party with an actual or potential interest in the case. The professional can be reached at: Daniel Scouler Scouler Kirchhein, LLC 230 Park Ave., 3rd Floor West New York, NY 10169 Telephone: (646) 859-8914 Email: dscoulersr@SK.com About RLCH Inc. RLCH Inc. engages in activities related to real estate. It owns a real property and building located at 144-69 Barclay Ave., Flushing, N.Y. RLCH sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-43052) on Aug. 24, 2020. RLCH president Lisa Lam signed the petition. At the time of the filing, Debtor was estimated to have assets of between $10 million and $50 million and liabilities of between $1 million and $10 million. Debtor has tapped Herrick, Feinstein, LLP as its legal counsel and Daniel Scouler of Scouler Kirchhein, LLC as its chief restructuring officer. ROYAL CARIBBEAN CRUISES: S&P Lowers ICR to 'B+'; Outlook Negative ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on global cruise operator Royal Caribbean Cruises Ltd. to 'B+' from 'BB' and removed all of its ratings on the company from CreditWatch, where S&P placed them with negative implications on June 4, 2020. S&P said, "At the same time, we are lowering our issue-level ratings on the company's senior secured notes and unsecured non-guaranteed debt by two notches, to 'BB' and 'B+', respectively, in conjunction with the downgrade. Our '1' and '4' recovery ratings, respectively, on the issues remain unchanged." "We are also lowering our issue-level rating on Royal's guaranteed unsecured notes and other guaranteed unsecured debt by one notch to 'BB-' and are revising our recovery ratings on the issues to '2', from '3' and '4', respectively, due to the downgrade." "The downgrade reflects our updated forecast that Royal's adjusted leverage will remain very high at about 10x or above through 2021 because of a protracted recovery in the cruise industry. We believe the cruise industry, and thus Royal, may face an extended period of low demand because of weak economic conditions and consumer fears around traveling due to COVID-19 given the absence of a vaccine or effective medical treatment. This, in conjunction with the debt raises the company completed earlier this year to enhance its liquidity position and our assumption of a phased resumption of its operations, will cause Royal's credit measures to remain well above pre-pandemic levels until at least 2023. We now expect the company's EBITDA to be significantly more negative in 2020 than we previously assumed because we believe it will face incremental expenses associated with the repatriation of its guests and crew and expenses related to keeping more of its ships out of service for longer than we previously assumed. Additionally, we expect the recovery in Royal's performance in 2021 to be much slower due to our expectation that it will resume its operations in phases, which implies that it could take multiple quarters for it to return its full fleet to service. Therefore, we now forecast the company's adjusted leverage may be about 10x or higher in 2021, which is a level that we consider very weak for a 'B+' rating, though it could improve its adjusted leverage below our 6.5x downgrade threshold by the end of 2022." "Our updated forecast incorporates our expectation that Royal will bring its capacity back online in a phased manner beginning late in the fourth quarter of this year as well as our belief it may face heightened levels of operating expenses relative to its available capacity given the expenses--albeit minimal on a per-ship basis--associated with keeping some ships out of service and bringing others into service. Resuming its operations in a phased manner may help the company better align its supply and demand, target easily accessible homeports, and improve the management of its itineraries because we believe its initial itineraries will be limited due to continued port closures, ongoing travel restrictions, and local government and health authority requirements. We believe there is a high level of uncertainty around Royal's recovery path given the potential that its operations may remain suspended beyond Oct. 31, 2020, and the lack of clarity around consumers' longer-term demand for cruises because of concerns about contracting the virus." S&P's 2021 base-case forecast assumes: -- Net revenue yields decline by about 10%-20% relative to 2019 levels because of weaker demand and customer utilization of future cruise credits. S&P believes demand will be weak because of lingering consumer fears around travel and being in enclosed public spaces as well as its forecast that U.S. unemployment will remain elevated through 2021, which may translate into lower discretionary spending on leisure activities in 2021, especially in the absence of additional government stimulus or extended enhanced unemployment benefits; -- S&P assumes Royal gradually reintroduces capacity through 2021 with available passenger cruise days (APCDs) remaining modestly below 2019 levels for much of the first half before increasing to about 100% of 2019 levels--or slightly higher due to the delivery of new ships--by the end of 2021; -- Total revenue declines by about 15%-20% relative to 2019 on lower net revenue yields and APCDs; -- S&P believes cruise operators will implement social distancing and other health and safety measures on their ships to reduce the spread of the virus. It believes these social distancing measures may limit the maximum potential occupancy of their ships and potentially reduce operators' profitability and cash flow; -- Net cruise costs, excluding fuel, per APCD remain modestly higher than 2019 levels into 2021 given incremental expenses associated with keeping ships out of service and bringing them back into service, particularly in the first half of 2021; -- S&P believes Royal may be able to limit the compression of its EBITDA margin as it ramps up its fleet. Specifically, S&P anticipates the company could maintain reduced levels of marketing spending because there will be fewer ships to market and estimate that it could manage certain ship-level expenses--like fuel, food, and crew payroll--to align with its potential reduced ship occupancy; and -- These assumptions translate into 2021 EBITDA of about 45%-55% below 2019 levels. S&P said, "We believe that Royal may generate sufficient EBITDA to reduce its adjusted leverage to about 6x, which is a level we view as commensurate with our current 'B+' rating, in 2022. This level of adjusted leverage assumes the company's net yields improve relative to 2021, but remain below 2019 levels, while its net cruise costs (excluding fuel) per APCD moderate closer to 2019 levels or even modestly lower assuming it keeps some of the cost reductions it made this year in place. Nevertheless, we believe there continues to be a high degree of variability in our contemplated recovery path for Royal, particularly as it relates to when the company will resume operation and how it will reintroduce capacity. Further, we believe there remains uncertainty around how its customers will respond to continued flare-ups or waves of the virus in the absence of a vaccine or effective treatment, which may not arrive until the second half of 2021." The need to take delivery of previously ordered ships weighs on Royal's ability to delever. The cruise industry is highly capital intensive and operators must generally commit to new ship deliveries at least a few years in advance. While cruise operators generally obtain financing commitments for the ships before they are delivered, which provides them with liquidity if their cash flow declines, the incremental debt can significantly weaken their credit measures during periods of operating stress because their debt balances will increase as their EBITDA declines. S&P said, "We believe ship deliveries across the cruise industry will be delayed by a few months relative to their original schedules, at least for the next few years, because of the pandemic's effects on shipyards. For example, Royal has publicly said that through December 2021 it will take delivery of three of the five scheduled ships. As a result, we believe it is likely that Royal will not take delivery of all six ships originally scheduled for 2021 and 2022. Notwithstanding the reduction in the number of expected ship deliveries, we believe Royal will incur more than $3 billion of incremental committed debt related to 2021 and 2022 ship deliveries, which we expect to slow the pace of its deleveraging because we forecast its EBITDA will remain below 2019 levels." "Furthermore, during periods of steeply declining demand, the incremental capacity provided by new ships can exacerbate industry pricing pressure as operators try to match their supply and demand. Although operators can take ships out of service to manage their capacity, they still incur expenses to keep these ships out of service. Although these expenses are fairly minimal on a per-ship basis, we believe they will weigh on Royal's profitability as it brings its fleet back into operation. Because we forecast the industry will face an extended period of weak demand, we believe Royal's attempts to manage its supply and demand may contribute to our forecast for its EBITDA margin remaining below historical levels of about 30% for an extended period." Environmental, social, and governance (ESG) credit factors for this credit rating change: -- Health and safety S&P said, "The negative outlook on Royal reflects our forecast that its adjusted leverage will remain very weak at about 10x or above through 2021. The outlook also reflects the high degree of uncertainty around the company's recovery path, given the potential that its operations may remain suspended for longer than we currently anticipate and the lack of visibility into consumer demand for cruises over the longer term because of concerns around contracting the virus." "We could lower our ratings on Royal at any time over the next year if we believe its recovery will be more prolonged or weaker than we currently expect. We could also lower our ratings if we anticipate any strain on its liquidity position, which could occur due to a more prolonged suspension of its cruises or operational weakness when its cruises resume, and if we did not believe Royal could raise additional capital in that scenario. Furthermore, we could lower our rating if we do not believe Royal could improve its adjusted leverage below 6.5x in 2022." "It is unlikely that we will revise our outlook on Royal to stable or raise our ratings over at least the next year given the high level of uncertainty around its recovery path, particularly in the absence of a vaccine or effective treatment for COVID-19. Nevertheless, we could revise our outlook to stable once we are confident the company will be able to reach pre-pandemic levels of capacity, its net revenue yields recover significantly, its net cruise costs per APCD improve closer to 2019 levels, and its leverage declines below 6.5x on a sustainable basis. We could consider raising our ratings on Royal once its operations recover if we expect it to sustain adjusted leverage of less than 5.5x." ROYAL CARIBBEAN: Egan-Jones Lowers Senior Unsecured Ratings to B ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 28, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Royal Caribbean Cruises Ltd to B from B+. EJR also downgraded the rating on commercial paper issued by the Company to B from A3. Headquartered in Miami, Florida, Royal Caribbean Cruises Ltd. operates as a global cruise company operating a fleet of vessels in the cruise vacation industries. SABLE PERMIAN: Committee Seeks to Tap Mani Little as Counsel ------------------------------------------------------------ The official committee of unsecured creditors in the Chapter 11 cases of Sable Permian Resources, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Mani Little & Wortmann, PLLC as its legal counsel. The firm will render the following services to the committee: (a) review Debtors' oil and gas leases and wells and associated security instruments; and (b) perform other necessary legal services in relation to the Chapter 11 cases, which the committee and its lead bankruptcy counsel may find reasonable and appropriate to assign. Mani Little's customary hourly and daily rates are as follows: Partners $350 - $375/hour Associates $250 - $275/hour Landmen $575/day In addition, the firm will charge the committee for work-related expenses incurred. Eric Wortmann II, Esq., a partner at Mani Little, disclosed in court filings that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Wortmann also made the following disclosures in response to the request for additional information set forth in Paragraph D.1 of the Revised U.S. Trustee Guidelines: 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 post-petition, 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 Mani Little expect to work together to develop a budget and staffing plan for the cases. The firm can be reached through: Eric W. Wortmann II, Esq. Mani Little & Wortmann, PLLC 5801 Edwards Ranch Road, Suite 100 Fort Worth, TX 76109 Telephone: (817) 382-0900 Facsimile: (817) 668-1368 Email: ewortmann@mlwenergylaw.com About Sable Permian Resources Sable Permian Resources, LLC and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-33193) on June 25, 2020. At the time of the filing, Sable Permian Resources disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge Marvin Isgur oversees the cases. Debtors have tapped Latham & Watkins, LLP and Hunton Andrews Kurth LLP as legal counsel, Alvarez & Marsal North America LLC as financial advisor, and Evercore Group LLC as investment banker. The Office of the U.S. Trustee appointed a committee of unsecured creditors on July 17, 2020. The committee has tapped Paul Hastings LLP and Mani Little & Wortmann, PLLC as its legal counsel, Conway MacKenzie LLC as financial advisor, and Miller Buckfire & Co. LLC and Stifel, Nicolaus & Co. Inc. as investment banker. SAXON SHOES: Seeks to Hire Tavenner & Beran as Legal Counsel ------------------------------------------------------------ Saxon Shoes, Inc. and Saxon Shoes Spotsylvania, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to employ Tavenner & Beran, PLC as their counsel. The firm will provide these services in connection with Debtors' Chapter 11 cases: (a) advise Debtors of their rights, powers and duties in the continued operation and management of their affairs under Chapter 11; (b) prepare legal papers and review financial reports; (c) assist in the negotiation and documentation of financing agreements, debt and cash collateral orders, and related transactions; (d) review the nature and validity of any liens asserted against Debtors' property and advise Debtors concerning the enforceability of such liens; (e) advise Debtors regarding their ability to initiate actions to collect and recover property for the benefit of their estate; (f) advise Debtors in connection with the formulation, negotiation and promulgation of a plan of reorganization and related documents; (g) assist Debtors in connection with any potential property dispositions; (h) advise Debtors concerning the assumption, assignment, rejection, restructuring and recharacterization of executory contracts and unexpired leases; (i) assist Debtors in reviewing, estimating and resolving claims asserted against their estate; (j) commence litigation to assert rights held by Debtors, protect assets of the estate or further the goal of completing their reorganization; (k) provide general litigation and other non-bankruptcy services; and (l) provide other legal services related to the cases. Tavenner & Beran will be paid at hourly rates as follows: Lynn L. Tavenner Partner/Member $495 Paula S. Beran Partner/Member $480 David N. Tabakin Associate $275 The firm received a retainer totaling $35,000 prior to the petition date. Paula Beran, Esq., a partner at Tavenner & Beran, disclosed in court filings that the firm is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Lynn L. Tavenner, Esq. Paula S. Beran, Esq. David N. Tabakin, Esq. Tavenner & Beran, PLC 20 North 8th Street Richmond, Virginia 23219 Telephone: (804) 783-8300 Facsimile: (804) 783-0178 Email: ltavenner@tb-lawfirm.com pberan@tb-lawfirm.com dtabakin@tb-lawfirm.com About Saxon Shoes Spotsylvania and Saxon Shoes Inc. Saxon Shoes Spotsylvania, LLC owns and operates full-service shoe stores in Virginia, which offer a selection of styles and sizes for men, women and children. Visit www.saxonshoes.com for more information. Saxon Shoes Spotsylvania and parent company Saxon Shoes, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. 20-33454) on Aug. 14, 2020. Gary L. Weiner, president and manager, signed the petitions. At the time of the filing, each Debtor had total assets of $4,017,418 and liabilities of $5,428,682. Judge Kevin R. Huennekens oversees the cases. Tavenner & Beran, PLC is Debtors' legal counsel. On Aug. 14, 2020, Richard C. Maxwell, Esq., was appointed as Subchapter V trustee in Debtors' bankruptcy cases. SEVEN STARS: Seeks to Hire Brian K. McMahon as Legal Counsel ------------------------------------------------------------ Seven Stars on the Hudson Corp. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Brian K. McMahon, P.A. as its legal counsel. The firm will render these services: (a) give advice to Debtor with respect to its powers and duties; (b) advise Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare legal documents; (d) protect the interest of Debtor in all matters pending before the court; (e) represent Debtor in negotiation with its creditors in the preparation of a Chapter 11 plan. Brian McMahon, Esq., the firm's attorney who will be handling the case, will charge an hourly fee of $400. He requested a retainer in the amount of $17,500, including the filing fees and costs. Mr. McMahon disclosed in court filings that he and his firm are "disinterested persons" as defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: Brian K. McMahon, Esq. Brian K. McMahon, P.A. 1401 Forum Way Suite 600 West Palm Beach, FL 33401 Telephone: (561) 478-2500 Email: briankmcmahon@gmail.com About Seven Stars on the Hudson Corp. Seven Stars on the Hudson Corp. manages a trampoline amusement park. It conducts business under the name Rockin Jump. Visit rockinjump.com/ftlauderdale for more information. On Aug. 24, 2020, Seven Stars on the Hudson Corp. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 20-19106). The petition was signed by Jens Berding, Debtor's authorized representative. At the time of the filing, Debtor disclosed total assets of $491,919 and total liabilities of $1,393,203. Judge Scott M. Grossman oversees the case. Brian K. McMahon, P.A. is Debtor's legal counsel. SIRINE LLC: Seeks to Hire Barry A. Friedman as Legal Counsel ------------------------------------------------------------ Sirine, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Alabama to hire Barry A. Friedman & Associates, PC as its legal counsel. The firm will provide the following services: 1. take appropriate action with respect to secured and priority creditors; 2. take appropriate action with respect to possible voidable preferences and transfers; 3. prepare legal papers; 4. investigate the accounts of Debtor and the financial transactions related thereto; and 5. perform all other legal services in connection with Debtor's Chapter 11 case. Barry A. Friedman does not represent interests adverse to Debtor, according to court filings. The firm can be reached through: Barry A. Friedman, Esq. Barry A. Friedman & Associates, PC 257 St Anthony St. Mobile, AL 36603 Telephone: (251) 439-7400 Email: bky@bafmobile.com About Sirine LLC Sirine LLC, a Mobile, Ala.-based gas station, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ala. Case No. 20-11952) on Aug. 6, 2020. At the time of the filing, Debtor had estimated assets of up to $50,000 and liabilities of between $50,001 and $100,000. Barry A Friedman & Associates, PC is Debtor's legal counsel. SMART & FINAL: Moody's Hikes CFR to B2, Outlook Stable ------------------------------------------------------ Moody's Investors Service upgraded Smart & Final Funding LLC's corporate family rating and probability of default rating to B2 and B2-PD from B3 and B3-PD respectively. In addition, Moody's also upgraded the rating to the company's senior secured term loan to B2 from B3. The outlook is stable. "We expect Smart & Final's credit metrics to improve significantly as it is the beneficiary of increased consumer demand for food at home during the coronavirus pandemic and the related restrictions on restaurants", Moody's Vice President Mickey Chadha stated. "We expect leverage to fall to 4.5x over the next 12-18 months and the upgrade acknowledges that we expect Smart & Final will maintain this improvement in credit metrics even after more normalized consumer shopping patterns return", Chadha further stated. Upgrades: Issuer: Smart & Final Funding LLC Probability of Default Rating, Upgraded to B2-PD from B3-PD Corporate Family Rating, Upgraded to B2 from B3 Senior Secured Bank Credit Facility, Upgraded to B2 (LGD4) from B3 (LGD4) Outlook Actions: Issuer: Smart & Final Funding LLC Outlook, Remains Stable RATINGS RATIONALE The B2 Corporate Family Rating reflects the company's high albeit improving leverage and modest interest coverage. Debt/EBITDA and EBIT/interest is expected to improve to around 4.5 times and 1.2 times respectively in the next 12-18 months from over 5.5 times and 0.7x just over a year ago when the company was acquired by affiliates of Apollo Management. The company has demonstrated strong topline and EBITDA growth in the first six months of fiscal 2020 as consumers significantly increased their basket size and loaded their pantries while consolidating trips to the company's stores during the coronavirus pandemic. The company has also lowered capital expenditures and initiated a cost saving program under Apollo's ownership. While Moody's expects topline growth and profitability will be lower in 2021 compared to 2020 as consumer buying patterns gradually normalize and food away from home starts to pick up, Moody's expects the company to maintain the improvement in credit metrics. The business environment remains very competitive and incremental expenses associated with safety measures in the stores will impact profitability. The company's rating is constrained by its regional concentration, small scale and challenging geographic and demographic markets. Ownership by an equity sponsor also increases the likelihood of future aggressive financial policies. The sponsor took a $65 million dividend recently as the company's cash flow improved significantly in the first six months of 2020. Positive factors include the company's good liquidity, attractive market niche and relatively stable operating performance. The stable outlook reflects that Smart & Final financial policies will remain balanced. It also incorporates Moody's expectation that Smart & Final will be able to maintain credit metrics in line with its rating despite the potential for a pullback in demand as consumer spending patterns normalize. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company continues to demonstrate good liquidity, sustained improvement in profitability and operating margins. Quantitatively an upgrade could be achieved if debt to EBITDA is sustained below 4.5 times and EBIT to interest is sustained in excess of 1.75 times coupled with financial policies that support credit metrics to be sustained at these levels. Ratings could be pressured if there is a material deterioration in liquidity or if operating performance deteriorates as evidenced by sustained decline in same store sales growth and profitability. Ratings could also be downgraded if the company's financial policies become aggressive particularly in terms of debt financed dividends. Quantitatively ratings could be downgraded if EBIT to interest is sustained below 1.25 times or if debt to EBITDA is sustained above 5.5 times. Smart & Final Funding LLC operates 256 non-membership, smaller box (16 to 27 thousand square feet), warehouse type grocery stores under the "Smart & Final", and "Smart & Final Extra!" banners in California, Arizona and Nevada, with an additional 15 stores in northern Mexico operated through a 50/50 joint venture. Affiliates of Apollo Management own 100% of the company. The principal methodology used in these ratings was Retail Industry published in May 2018. SUMMIT MIDSTREAM: Moody's Cuts CFR to B3, Outlook Negative ---------------------------------------------------------- Moody's Investors Service downgraded Summit Midstream Partners, LP's Corporate Family Rating to B3 from B2 and perpetual preferred units rating to Caa3 from Caa2. SMLP's Probability of Default Rating was downgraded to B3-PD/LD from B2-PD while appending the PDR with an "/LD" designation. SMLP's Speculative Grade Liquidity (SGL) Rating remains SGL-4. The rating outlook remains negative. Moody's concurrently downgraded Summit Midstream Holdings, LLC's (Summit) senior unsecured notes rating to Caa2 from Caa1. The rating outlook remains negative. Moody's also downgraded Summit Midstream Partners Holdings, LLC's (SMP Holdings, an unrestricted subsidiary of SMLP) CFR to Ca from Caa2, PDR to Ca-PD from Caa2-PD and senior secured term loan rating to Ca from Caa2. The rating outlook remains negative. "The downgrade of Summit Midstream Partners' rating reflects rising debt refinancing and additional distressed exchange risk as its maturities approach," said Amol Joshi, Moody's Vice President and Senior Credit Officer. "The company also faces volumetric and cash flow risk due to coronavirus' negative effect on E&P capital spending and the global economic outlook, and uncertainty regarding future volumes in its key basins." Downgrades: Issuer: Summit Midstream Partners, LP Corporate Family Rating, Downgraded to B3 from B2 Probability of Default Rating, Downgraded to B3-PD/LD from B2-PD Perpetual Preferred Stock, Downgraded to Caa3 (LGD6) from Caa2 (LGD6) Issuer: Summit Midstream Holdings, LLC Senior Unsecured Notes, Downgraded to Caa2 (LGD5) from Caa1 (LGD5) Issuer: Summit Midstream Partners Holdings, LLC Corporate Family Rating, Downgraded to Ca from Caa2 Probability of Default Rating, Downgraded to Ca-PD from Caa2-PD Senior Secured Term Loan, Downgraded to Ca (LGD4) from Caa2 (LGD3) Outlook Actions: Issuer: Summit Midstream Partners, LP Outlook, Remains Negative Issuer: Summit Midstream Holdings, LLC Outlook, Remains Negative Issuer: Summit Midstream Partners Holdings, LLC Outlook, Remains Negative RATINGS RATIONALE Moody's considers SMLP utilizing approximately $78 million in cash as of July 13 to repurchase roughly $28 million face value of 5.50% senior notes due August 2022 and $106 million face value of 5.75% senior notes due April 2025 as a distressed exchange for the senior unsecured notes, which is a default under Moody's definition of default. Moody's appended the B3-PD PDR with an "/LD" designation indicating limited default. The LD designation will be removed after three business days. Subsequent to July 13, the company has announced additional debt repurchases of roughly $4 million face value of the senior notes due August 2022. The Summit entities face a number of financing and refinancing challenges over the next few years. Summit has a $268 million unsecured notes maturity in August 2022 as well as its revolving credit facility maturity in May 2022. SMP Holdings' term loan also matures in May 2022. An unrestricted subsidiary of SMLP indirectly owns SMLP's 70% interest in the Double E natural gas pipeline project in the Delaware Basin (Double E Project), which will need additional funding. At the same time, SMLP has struggled to grow operating cash flow, and this low commodity price environment increases volumetric and cash flow risk for gathering & processing (G&P) companies. As a result, SMLP faces rising debt refinancing and additional distressed exchange risk as its maturities approach. These risks resulted in the downgrade of SMLP's rating to B3 CFR with a negative outlook. SMLP's B3 CFR is supported by its geographically diverse G&P assets and diversified customer base. Over 95% of the company's 2019 gross margin was derived from fee-based contracts, which in many cases is supported by acreage dedications and minimum volume commitments (MVCs). SMLP's capital spending will be considerably reduced in 2020, and it will likely be focused in the Utica, Williston and DJ Basins, while Delaware Basin activity will include spending associated with the Double E Project. Capital spending in its legacy assets in the Piceance Basin, Barnett Shale and Marcellus Shale should be minimal. Leverage should remain high through 2020 and is higher when consolidated for SMP Holdings' debt. The completion of the Double E Project, which is held at an unrestricted subsidiary, could improve the company's profile but its funding over the next year should further increase consolidated debt balances. While SMLP owns SMP Holdings now, SMLP continues to owe the remaining deferred purchase price obligation due in January 2022 related to certain assets dropped down from SMP Holdings in 2016. The rapid spread of the coronavirus outbreak, deteriorating global economic outlook, low oil prices, and high asset price volatility have created an unprecedented credit shock across a range of sectors and regions. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. The exploration and production (E&P) sector have been one of the sectors most affected by the shock given its sensitivity to demand and commodity prices, and this in turn has affected the volumes that G&P companies gather and process. The action reflects the impact on SMLP, Summit and SMP Holdings of the deterioration in credit quality it has triggered, given their exposure to a period of low commodity prices and likely decreasing volumes, which has left the companies vulnerable to shifts in market demand and sentiment in these unprecedented operating conditions. SMLP's SGL-4 Speculative Grade Liquidity Rating reflects its weak liquidity profile. At June 30, 2020, SMLP had $36.6 million of cash as well as $5 million of restricted cash, and $733 million drawn under Summit's $1.25 billion secured revolving credit facility. The revolving credit facility matures in May 2022 and has financial covenants including a maximum total leverage ratio of 5.5x, maximum senior secured leverage ratio of 3.75x, and a minimum interest coverage ratio of 2.5x. The company was in compliance with these covenants as of June 30. However, availability under the revolver was constrained by these covenants and was approximately $191 million at June 30. On August 25, the company commenced cash tender offers to purchase a portion of its senior unsecured notes. The company plans to settle the cash tender offers on September 24. Summit's unsecured notes are rated Caa2, two notches below SMLP's B3 CFR, reflecting the priority claim of Summit's relatively large $1.25 billion revolver to its assets. The preferred units are rated Caa3, three notches below SMLP's B3 CFR, and they receive 100% equity treatment. The company announced on July 31 that it accepted a portion of its preferred units for exchange into newly issued common units. Moody's believes that the Caa3 rating on the preferred units is more appropriate than the rating suggested by Loss Given Default for Speculative-Grade Companies. SMP Holdings' Ca CFR reflects its structural subordination to the debt at Summit and preferred units at SMLP. SMP Holdings is an entity without any operating assets. Upon SMLP's acquisition of Summit Midstream Partners, LLC (Summit Investments), the private entity that indirectly owns SMLP's general partner (GP), the SMP Holdings' term loan continues to be secured by 34.6 million SMLP common units and the non-economic GP interest in SMLP, while being non-recourse indebtedness to SMLP and its operating subsidiaries. SMP Holdings' ability to service its debt is reliant on payments made by SMLP to SMP Holdings related to SMLP's remaining deferred purchase price obligation due in January 2022. The Ca CFR and the four-notch difference to SMLP's B3 CFR further reflects SMP Holdings' unsustainable leverage on a stand-alone basis. Moody's expects that there will be no additional debt at SMP Holdings, but there exists a $25 million revolver carve-out. The Ca rating on SMP Holdings' senior secured term loan, constituting all of its debt, is in line with its CFR, and reflects the term loan's first priority claim on the 34.6 million SMLP common units and the non-economic GP interest in SMLP. SMP Holdings has a weak liquidity profile. SMP Holdings' liquidity could worsen if payments received from SMLP are reduced. With limited administrative overhead though, SMP Holdings does not have significant liquidity needs. SMP Holdings' term loan has a minimum interest coverage ratio requirement of 2x. There is a 1% mandatory amortization of the term loan per annum and 100% excess cash flow recapture when stand-alone leverage is above 2x, but stepping down to 75% when standalone leverage ratio is less than 2x. SMP Holdings is reliant on payments from SMLP to remain in compliance with its covenants, and faces rising debt refinancing as well as restructuring risk. SMLP's negative outlook reflects rising debt refinancing and additional distressed exchange risk in a low commodity price environment. SMP Holdings' rating outlook is negative, reflecting its unsustainable leverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A rating downgrade of SMLP could be considered if SMLP's consolidated leverage (including debt at SMP Holdings as well as SMLP's unrestricted subsidiary that indirectly owns its 70% interest in the Double E Project) exceeds 7x, SMLP's scale reduces materially due to asset sales without adequate debt reduction, or liquidity deteriorates. An upgrade of SMLP is possible if the company maintains consolidated leverage (including debt at SMP Holdings as well as SMLP's unrestricted subsidiary that indirectly owns its 70% interest in the Double E Project) below 6x, and achieves adequate liquidity while addressing upcoming maturities and the funding of the Double E Project. A downgrade of SMP Holdings would occur if SMLP is downgraded, or if payments received from SMLP are not sufficient. An upgrade of SMP Holdings could be considered if SMLP's rating is upgraded. The principal methodology used in these ratings was Midstream Energy published in December 2018. Summit Midstream Partners, LP is a publicly-traded master limited partnership primarily engaged in natural gas, crude oil and produced water gathering and/or processing in the Utica Shale, Williston Basin, Piceance Basin, DJ Basin, Barnett Shale, Delaware Basin and Marcellus Shale. SMP Holdings is SMLP's unrestricted subsidiary without any operating assets, whose term loan is secured by 34.6 million SMLP common units and the non-economic GP interest in SMLP. SUNESIS PHARMACEUTICALS: Effects 1-for-10 Reverse Stock Split ------------------------------------------------------------- Sunesis Pharmaceuticals, Inc. filed a Certificate of Amendment to Amended and Restated Certificate of Incorporation of Sunesis Pharmaceuticals, Inc. to effect a one-for-ten reverse stock split of its outstanding common stock, effective as of Sept. 2, 2020. A series of alternate amendments to effect the Reverse Stock Split was approved by the Company's stockholders at its Annual Meeting of Stockholders held on June 16, 2020, and the specific one-for-ten ratio was subsequently approved by the Company's Board of Directors on Aug. 17, 2020. The Amendment provides that at the effective time of the Reverse Stock Split, every ten shares of the Company's issued and outstanding common stock will be automatically converted into one issued and outstanding share of common stock, without any change in par value per share. The reverse stock split will affect all shares of the Company's common stock outstanding immediately prior to the effective time of the Reverse Stock Split, as well as the number of shares of common stock available for issuance under the Company's equity incentive plans. In addition, the Reverse Stock Split will effect a reduction in the number of shares of common stock issuable upon the conversion of shares of preferred stock or upon the exercise of stock options or warrants outstanding immediately prior to the effectiveness of the Reverse Stock Split. No fractional shares will be issued because of the Reverse Stock Split. Stockholders who would otherwise be entitled to receive a fractional share will receive a cash payment in lieu thereof. The Company's common stock is scheduled to begin trading on The Nasdaq Stock Market LLC on a split-adjusted basis when the market opens on Sept. 3, 2020. The new CUSIP number for the Company's common stock following the Stock Split is 867328 874. About Sunesis Pharmaceuticals Headquartered in San Francisco, California, Sunesis -- http://www.sunesis.com/-- is a biopharmaceutical company developing novel targeted inhibitors for the treatment of hematologic and solid cancers. Sunesis has built an experienced drug development organization committed to improving the lives of people with cancer. The Company is focused on advancing its novel kinase inhibitor pipeline, including its oral non-covalent BTK inhibitor vecabrutinib and first-in-class PDK1 inhibitor SNS-510. Sunesis reported a net loss of $23.33 million for the year ended Dec. 31, 2019, compared to a net loss of $26.61 million for the year ended Dec. 31, 2018. As of June 30, 2020, the Company had $25.51 million in total assets, $9.40 million in total liabilities, and $16.11 million in total stockholders' equity. Ernst & Young LLP, in Salt Lake City, Utah, the Company's auditor since 1998, issued a "going concern" qualification in its report dated March 10, 2020 citing that the Company has suffered recurring losses from operations and has stated that substantial doubt exists about the Company's ability to continue as a going concern. SYSCO CORPORATION: Egan-Jones Cuts Senior Unsecured Ratings to BB ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Sysco Corporation to BB from BBB-. Headquartered in Houston, Texas, Sysco Corporation distributes food and related products primarily to the foodservice industry. TAILORED BRANDS: Sussman & Moore Represents Utility Companies ------------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Sussman & Moore, LLP submitted a verified statement to disclose that it is representing certain utility companies in the Chapter 11 cases of Tailored Brands, Inc., et al. The names and addresses of the Utilities represented by the Firm are: a. American Electric Power Attn: Dwight C. Snowden American Electric Power 1 Riverside Plaza, 13th Floor Columbus, Ohio 43215 b. Georgia Power Company Attn: Daundra Fletcher 2500 Patrick Henry Parkway McDonough, GA 30253 c. Consolidated Edison Company of New York, Inc. Attn: Rosalie Zuckerman, Esq. 4 Irving Place – Room 1875S New York, NY 10003 d. Orange and Rockland Utilities, Inc. Attn: Jennifer Woehrle 390 W. Route 59 Spring Valley, New York 10977 e. Florida Power & Light Company Gulf Power Company Attn: Joseph Ianno, Esq. Law Department 700 Universe Blvd. Juno Beach, FL 33408 f. New York State Electric and Gas Corporation Attn: Kelly Potter James A. Carrigg Center Bankruptcy Department 18 Link Drive Binghamton, NY 13904 g. Rochester Gas and Electric Corporation Attn: Patricia Cotton 89 East Avenue Rochester, NY 14649 h. Central Maine Power Company Attn: Richard P. Hevey, Esq. Senior Counsel 83 Edison Drive Augusta, Maine 04336 i. Salt River Project Attn: Breanna Holmes/ISB 232 2727 E. Washington St. P.O. Box 52025 Phoenix, AZ 85072-2025 j. San Diego Gas & Electric Company Attn: A.J. Moreno, Bankruptcy Specialist 8326 Century Park Court San Diego, CA 92123 k. Boston Gas Company Colonial Gas Cape Cod KeySpan Energy Delivery Long Island KeySpan Energy Delivery New York Massachusetts Electric Company Narragansett Electric Company Niagara Mohawk Power Corporation Attn: Christopher S. Aronson Senior Counsel National Grid 40 Sylvan Road Waltham, MA 02451 l. Tampa Electric Company Peoples Gas System Attn: Barbara Taulton FRP, CAP Florida Registered Paralegal Tampa Electric Company 702 N. Franklin Street Tampa, FL 33602 m. Tucson Electric Power Company UNS Gas, Inc. Attn: Sandra Gallego Credit, Collections and Remittance Mail Stop SC122 P.O. Box 711 Tucson, AZ 85702 n. Southern California Edison Company Attn: Patricia A. Cirucci, Esq. Director and Managing Attorney, Commercial Litigation 2244 Walnut Grove Avenue P.O. Box 800 Rosemead, California 91770 o. Evergy, Inc. Attn: Katie Lee, Esq. 1200 Main Street Kansas City, MO 64105 p. The Connecticut Light & Power Company Yankee Gas Services Company NStar Electric Company, Western Massachusetts NStar Electric Company NStar Gas Company Public Service Company of New Hampshire Attn: Honor S. Heath, Esq. Eversource Energy 107 Selden Street Berlin, CT 06037 q. Oklahoma Gas and Electric Company Attn: Jennifer Castillo, Esq. Sr. Attorney | OGE Legal Department 321 N. Harvey Ave. MC 1208 Oklahoma City, OK 73102 r. Virginia Electric and Power Company d/b/a Dominion Energy Virginia Attn: Sherry Ward 600 East Canal Street, 10th floor Richmond, VA 23219 s. The Cleveland Electric Illuminating Company Ohio Edison Company Pennsylvania Power Company West Penn Power Company Monongahela Power Company Potomac Edison Company Metropolitan Edison Company Jersey Central Power & Light Company Pennsylvania Electric Company The Toledo Edison Company Attn: Kathy M. Hofacre FirstEnergy Corp. 76 S. Main St., A-GO-15 Akron, OH 44308 t. Constellation NewEnergy, Inc. Attn: C. Bradley Burton Credit Analyst Constellation Energy 1310 Point Street, 12th Floor Baltimore, MD 21231 u. Arizona Public Service Company Attn: Sandra Rosales 2043 W. Cheryl Dr., Bldg. M Mail Station 3209 Phoenix, Arizona 85021-1915 v. Baltimore Gas and Electric Company Commonwealth Edison Company PECO Energy Company The Potomac Electric Power Company Delmarva Power & Light Company Atlantic City Electric Company Assistant General Counsel Exelon Corporation 2301 Market Street, S23-1 Philadelphia, PA 19103 The nature and the amount of claims of the Utilities, and the times of acquisition thereof are as follows: a. The following Utilities have unsecured claims against the above-referenced Debtors arising from prepetition utility usage: American Electric Power, Georgia Power Company, Gulf Power Company, Consolidated Edison Company of New York, Inc., Orange and Rockland Utilities, Inc., Florida Power & Light Company, New York State Electric and Gas Corporation, Rochester Gas & Electric Corporation, Central Maine Power Company, Salt River Project, San Diego Gas and Electric Company, Boston Gas Company, Colonial Gas Cape Cod, KeySpan Energy Delivery Long Island, KeySpan Energy Delivery New York, Massachusetts Electric Company, Narragansett Electric Company, Niagara Mohawk Power Corporation, Tucson Electric Power Company, Southern California Edison Company, Evergy, Inc., The Connecticut Light & Power Company, Yankee Gas Services Company, NStar Electric Company, Western Massachusetts, NStar Electric Company, Eastern Massachusetts, NStar Gas Company, Public Service Company of New Hampshire, Oklahoma Gas and Electric Company, Salt River Project, Virginia Electric and Power Company d/b/a Dominion Energy Virginia, West Penn Power Company, Pennsylvania Power Company, Monongahela Power Company, Potomac Edison Power Company, The Toledo Edison Power Company, Ohio Edison Power Company, The Cleveland Electric Illuminating Company, Metropolitan Edison Company, Jersey Central Power and Light Company, Constellation NewEnergy, Inc., Arizona Public Service Company, Baltimore Gas and Electric Company, Commonwealth Edison Company, PECO Energy Company, The Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company. b. American Electric Power, Tucson Electric Power, UNS Gas, Inc., Oklahoma Gas and Electric Company, Tampa Electric Company, Peoples Gas System, Pennsylvania Electric Company, Georgia Power Company, Gulf Power Company, Florida Power and Light Company, Arizona Public Service Company, and PECO Energy Company each held a prepetition deposit that wholly or partially secured prepetition debt. c. Salt River Project, Georgia Power Company, Arizona Public Service Company, and PECO Energy Company each holds one or more surety bonds that fully or partially secures prepetition debt. d. For more information regarding the claims and interests of the Utilities in these jointly-administered cases, refer to the Motion and Memorandum of Certain Utility Companies to: (A) Vacate, and/or Reconsider, and/or Modify Order (I) Approving the Debtors’ Proposed Adequate Assurance of Payment for Future Utility Services, (II) Prohibiting Utility Providers From Altering, Refusing, or Discontinuing Utility Services, (III) Establishing Procedures for Determining Adequate Assurance of Payment, (IV) Authorizing Certain Fee Payments for Services Performed, and (V) Requiring Utility Providers To Return Deposits for Utility Services No Longer In Use, and (B) Determine Adequate Assurance of Payment as to the Utilities filed in the above-captioned, jointly-administered, bankruptcy cases. Sussman & Moore, LLP was retained to represent the foregoing Utilities in August 2020. The circumstances and terms and conditions of employment of the Firm by the Companies is protected by the attorney-client privilege and attorney work product doctrine. The Firm can be reached at: Weldon L. Moore III, Esq. Sussman & Moore, LLP 4645 N. Central Expressway, Suite 300 Dallas, TX 75205 Telephone: (214) 378-8270 Facsimile: (214) 378-8290 E-mail: wmoore@csmlaw.net A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/uzBNPE About Tailored Brands Tailored Brands, Inc., (NYSE: TLRD) is an omni-channel specialty retailer of menswear, including suits, formalwear and a broad selection of polished and business casual offerings. It delivers personalized products and services through its convenient network of over 1,400 stores in the United States and Canada as well as its branded e-commerce websites at http://www.menswearhouse.com/and http://www.josbank.com. Its brands include Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G. Tailored Brands reported a net loss of $82.28 million for the year ended Feb. 1, 2020, compared to net earnings of $83.24 million for the year ended Feb. 2, 2019. As of Feb. 1, 2020, the Company had $2.42 billion in total assets, $2.52 billion in total liabilities, and a total shareholders' deficit of $98.31 million. On Aug. 2, 2020, Tailored Brands and its subsidiaries sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-33900) on Aug. 2, 2020. As of July 4, 2020, Tailored Brands disclosed $2,482,124,043 in total assets and $2,839,642,691 in total liabilities. The Hon. Marvin Isgur is the case judge. The Debtors tapped Kirkland & Ellis LLP as general bankruptcy counsel; Jackson Walker L.L.P., Stikeman Elliot LLP and Mourant Ozannes as co-bankruptcy counsel; PJT Partners LP as financial advisor; Alixpartners, LLP as restructuring advisor; and A&G Realty Partners, LLC as the real estate consultant and advisor. Prime Clerk LLC is the claims agent. TNT CRANE: Morris, Willkie Represent Cross-Holder Group ------------------------------------------------------- In the Chapter 11 cases of TNT Crane & Rigging, Inc., et al., the law firms of Willkie Farr & Gallagher LLP and Morris Nichols Arsht & Tunnell LLP submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose that they are representing Ad Hoc Cross-Holder Group. As of Aug. 26, 2020, members of the Ad Hoc Cross-Holder Group and their disclosable economic interests are: Morgan Stanley Investment Management 522 Fifth Avenue New York, NY, 10036 * First Lien Holdings: $101,175,948.98 * Second Lien Holdings: $40,420,000.00 HPS Investment Partners LLC 40 West 57th Street New York, NY 10019 * First Lien Holdings: $4,986,717.91 * Second Lien Holdings: $15,050,000.00 Lord, Abbett & Co. LLC 90 Hudson Street Jersey City, NJ, 07302 * First Lien Holdings: $20,033,321.61 * Second Lien Holdings: $13,332,000.62 McGinty Road Partners 60 South 6th Street, Suite 3720 Minneapolis, MN, 55402 * Second Lien Holdings: $5,000,000.00 Fidelity Investment Inc. 40 East 52nd Street New York, NY, 10022 * First Lien Holdings: $31,708,904 * Second Lien Holdings: $33,800,000.00 Moab Capital Partners LLC 152 West 57th Street, 9th Floor New York, NY, 10019 * Second Lien Holdings: $24,000,000.00 On or around March 31, 2020, the Ad Hoc Cross-Holder Group retained Willkie to represent them in connection with the Debtors' refinancing efforts. MNAT subsequently was retained by Willkie to serve as Delaware counsel in advance of the Debtors' bankruptcy filing in Delaware. Counsel represents the Ad Hoc Groups and the Second Lien Agent in connection with these chapter 11 cases. Each member of the Ad Hoc Groups is aware of, and has consented to, Counsel's "group representation" of the Ad Hoc Groups. No member of the Ad Hoc Groups represents or purports to represent any other entities in connection with these chapter 11 cases. The Second Lien Agent is aware of, and has consented to, Counsel's representation of the Ad Hoc Groups. The Second Lien Agent does not represent or purport to represent any other entities in connection with these chapter 11 cases, except to the extent of and in its capacity as agent under the Second Lien Term Credit Agreement. Nothing contained in this Verified Statement or Exhibit A should be construed as a limitation upon, or waiver of, any rights of any member of the Ad Hoc Groups or the Second Lien Agent. The information contained herein is intended only to comply with Bankruptcy Rule 2019 and not for any other purpose. Counsel does not make any representation regarding the validity, amount, allowance, or priority of such economic interests and reserves all rights with respect thereto. Counsel to the Ad Hoc Groups and Second Lien Agent can be reached at: MORRIS, NICHOLS, ARSHT & TUNNELL LLP Robert J. Dehney, Esq. Matthew B. Harvey, Esq. Eric W. Moats, Esq. 1201 N. Market St. 16th Floor P.O. Box 1347 Wilmington, DE 19899-1347 Telephone: (302) 658-9200 Facsimile: (302) 658-3989 Email: rdehney@mnat.com mharvey@mnat.com emoats@mnat.com - and - WILLKIE FARR & GALLAGHER LLP Jeffrey D. Pawlitz, Esq. Andrew S. Mordkoff, Esq. Derek M. Osei-Bonsu, Esq. 787 Seventh Avenue New York, NY 10019-6099 Telephone: (212) 728-8000 Facsimile: (212) 728-8111 Email: jpawlitz@willkie.com amordkoff@willkie.com dosei-bonsu@willkie.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/HpvGIO and https://is.gd/NysGX8 The Chapter 11 case is In re TNT Crane & Rigging, Inc., et al. (Banks. Del. Case No. 20-11982 (BLS)). UCAST LLC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Three affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- uCast, LLC 20-04501 dba uCast Global Holdings Ltd. f/k/a Q Platform Americas LLC 9909 Mira Mesa Blvd. Suite 230 San Diego, CA 92131 Q Media Service, LLC 20-04502 QMS Holdings, LLC 20-04503 Chapter 11 Petition Date: September 2, 2020 Court: United States Bankruptcy Court Southern District of California Judge: Hon. Margaret M. Mann Debtors' Counsel: Eric D. Goldberg, Esq. DLA PIPER LLP (US) 2000 Avenue of the Stars Suite 400 North Tower Los Angeles, CA 90067-4704 Tel: (310) 595-3000 Email: eric.goldberg@us.dlapiper.com uCast, LLC's Estimated Assets: $0 to $50,000 uCast, LLC's Estimated Liabilities: $10 million to $50 million Q Media Service's Estimated Assets: $0 to $50,000 Q Media Service's Estimated Liabilities: $10 million to $50 million QMS Holdings' Estimated Assets: $0 to $50,000 QMS Holdings' Estimated Liabilities: $10 million to $50 million The petitions were signed by Neil Davis, chief business officer. Copies of the petitions containing, among other items, lists of the Debtors' 20 largest unsecured creditors are available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/YOSFTJY/UCast_LLC__casbke-20-04501__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/DIPLN2I/Q_Media_Services_LLC__casbke-20-04502__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/DVAMC2Y/QMS_Holdings_LLC__casbke-20-04503__0001.0.pdf?mcid=tGE4TAMA UNIFI INCORPORATED: Egan-Jones Lowers Sr. Unsecured Ratings to B ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 27, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Unifi Incorporated to B from B+. EJR also downgraded the rating on commercial paper issued by the Company to B from A3. Headquartered in Greensboro, North Carolina, Unifi, Incorporated, textures polyester and nylon filament fiber to produce polyester and nylon, dyed, and spandex yarns covered with nylon and polyester. UNITED WESTERN: 10th Circ. Declines Refund Row Rehearing -------------------------------------------------------- Law360 reports that the Tenth Circuit in July 2020 denied a request by a defunct bank's corporate parent to rehear its decision to award a $4.1 million tax refund to the FDIC, after the U.S. Supreme Court had weighed in on the case. A three-judge panel denied a plea from Simon Rodriguez, the bankruptcy trustee for parent company United Western Bancorp Inc., to review a decision finding the Federal Deposit Insurance Corp., as receiver for Colorado-based United Western Bancorp, should receive the tax refund. The panel also rejected Rodriguez's petition for a rehearing en banc. About United Western Bancorp United Western Bancorp, Inc., along with two affiliates, filed for Chapter 11 protection (Bankr. D. Colo. Case No. 12-13815) on March 2, 2012. Harvey Sender, Esq., at Sender & Wasserman, P.C., represents the Debtor. Judge A. Bruce Campbell presides over the case. United Western listed the value of the assets as "unknown" while showing $53.3 million in debt, including a $12.3 million secured claim owing to JPMorgan Chase Bank NA. The holding company listed assets of $2.221 billion and liabilities of $2.104 billion on the June 30, 2010, balance sheet, the last financial statement filed before the bank was taken over. United Western's deposits and branches were transferred by the Federal Deposit Insurance Corp. to First-Citizens Bank & Trust Co. of Raleigh, North Carolina. When the bank was taken over, it had $1.65 billion in deposits, the FDIC said. The cost of the takeover to the FDIC was $313 million, the FDIC said in a statement at the time. VALLEY FARM: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Valley Farm Supply, Inc. 1124 Tama Lane Nipomo, CA 93444 Business Description: Valley Farm Supply, Inc. is a wholesaler of farm product raw materials. Chapter 11 Petition Date: September 2, 2020 Court: United States Bankruptcy Court Central District of California Case No.: 20-11072 Judge: Hon.Deborah J. Saltzman Debtor's Counsel: William C. Beall, Esq. BEALL & BURKHARDT, APC 1114 State Street, Suite 200 Santa Barbara, CA 93101-6722 Tel: 805-966-6774 Email: will@beallandburkhardt.com Total Assets: $3,711,542 Total Liabilities: $8,460,250 The petition was signed by Peter Compton, 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://www.pacermonitor.com/view/KTKEKDQ/Valley_Farm_Supply_Inc__cacbke-20-11072__0001.0.pdf?mcid=tGE4TAMA WARNER CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Warner Construction Inc. 6 Wesley Ct Middletown, NY 10941-1773 Business Description: Warner Construction Inc. is a privatley held company i the nonresidential building construction industry. Chapter 11 Petition Date: September 3, 2020 Court: United States Bankruptcy Court Southern District of New York Case No.: 20-35937 Judge: Hon. Cecelia G. Morris Debtor's Counsel: Robert Lewis, Esq. LAW OFFICE OF ROBERT S. LEWIS, PC 53 Burd St Nyack, NY 10960-3265 Email: robert.lewlaw1@gmail.com Total Assets: $115,856 Total Liabilities: $1,755,398 The petition was signed by Mark Warner, 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://www.pacermonitor.com/view/Z4UDKCY/Warner_Construction_Inc__nysbke-20-35937__0001.0.pdf?mcid=tGE4TAMA WEATHERFORD INTERNATIONAL: S&P Affirms 'CCC' ICR; Outlook Negative ------------------------------------------------------------------ S&P Global Ratings affirmed the 'CCC' issuer credit and senior unsecured ratings on Weatherford International plc, and at the same time it affirmed the 'B-' rating on the expanded letter of credit (LOC) facility. "We have assigned a 'B-' senior secured rating to the $500 first-lien senior secured notes due 2024. The recovery is '1', indicating our expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. We are withdrawing the ratings on the company's $450 million asset-backed loan facility (ABL), which is replaced with proceeds from the $500 million senior secured notes," S&P said. The senior secured note issuance supports liquidity at a time of declining receivables and inventory levels. The senior secured notes will replace the company's ABL, on which borrowing capacity had shrunk to about $234 million ($90 million available after $123 million LOCs and $20 million borrowings) as of June 30, 2020, from about $376 million on Dec. 31, 2019, due to weak market conditions and the resulting effects on receivable and inventory levels. Based on this, S&P estimates the senior secured notes will provide about $350 million of incremental liquidity. The replacement of the ABL will also resolve potential covenant violations in the first half of 2021, as well as allow for cash collateralization of certain of the LOCs that were under the ABL. "We continue to believe a distressed debt transaction could occur given Weatherford's high debt leverage and our expectation for weak capital and operating markets for the industry as a whole. The company's senior unsecured notes continue to trade at a material discount to par, and, in our view, are likely to do so until a sustained material improvement in market conditions occurs, most likely due to consistent crude oil prices comfortably above $45 per barrel that supports increased spending by the exploration and production (E&P) industry. As a result, we continue to believe Weatherford could pursue a deleveraging transaction that we would view as distressed and tantamount to a default, as it seeks to better align debt levels to market conditions," S&P said. The negative outlook reflects S&P's expectation for continued weak market conditions across the oilfield services industry that results in unsustainable debt leverage for Weatherford, and what we consider a heightened risk the company could pursue a distressed transaction over the next six-12 months, such as a debt exchange or other like transaction to lower debt levels. "We could lower our rating on Weatherford if it announces a debt refinancing or other transaction we view as distressed. This would most likely occur over the next six-12 months if market conditions for oilfield services fail to improve significantly," S&P said. "We could raise the ratings if we no longer believe a potential distressed exchange is likely within the next 12 months, most likely due to significantly improved market conditions that drive stronger cash flows to support Weatherford's debt level," S&P said. WISE ENTERPRISE: Seeks to Tap Creviston Realty as Broker -------------------------------------------------------- Wise Enterprise Group, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Creviston Realty, Inc. as its real estate broker. Debtor requires the services of a real estate broker to market and find a buyer for its commercial building located at 22 Felton Place, Cartersville, Ga. Creviston Realty will get a 6 percent commission on the sales price. Jeff Hammond, a partner at Creviston Realty, disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jeff Hammond Creviston Realty, Inc. 10882 Crabapple Road, Suite 4 Roswell, GA 30075 Telephone: (770) 992-5112 Facsimile: (770) 992-3937 About Wise Enterprise Group Wise Enterprise Group LLC, an investment holding company in Cartersville, Ga., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 19-41786) on Aug. 2, 2019. The petition was signed by Karen P. Wise, Debtor's authorized representative. At the time of the filing, Debtor disclosed $1 million and $10 million in both assets and liabilities. Judge Paul W. Bonapfel oversees the case. Theodore N. Stapleton, P.C. is Debtor's legal counsel. WYNN RESORTS: Egan-Jones Lowers Senior Unsecured Ratings to B- -------------------------------------------------------------- Egan-Jones Ratings Company, on August 24, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Wynn Resorts Ltd to B- from B. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and operates luxury hotels and destination casino resorts in Las Vegas, Nevada, Macau, and China. YRC WORLDWIDE: Egan-Jones Lowers Senior Unsecured Ratings to CCC- ----------------------------------------------------------------- Egan-Jones Ratings Company, on August 25, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by YRC Worldwide Inc. to CCC- from CCC. Headquartered in Overland Park, Kansas, YRC Worldwide, Inc. operates as a holding company. [*] Congress Mulls Expanding Workers’ Protection in Bankruptcy ---------------------------------------------------------------- Joel Perrell, Jr. of Miles & Stockbridge P.C. wrote an article on JD Supra titled "Congress Again Considers Expanding Worker Protections in Bankruptcy." With the COVID-19 pandemic creating a significant upswing in Chapter 11 bankruptcies and with more expected to come, Congress is once again considering substantial changes to the way the Bankruptcy Code addresses worker compensation, retiree benefits and collective bargaining agreements with the Protecting Employees and Retirees in Business Bankruptcies Act of 2020 (PERBBA), introduced recently in both the House and the Senate (House Bill 7370; Senate Bill 4089). PERBBA is the latest iteration of legislation designed to add additional worker protections to business bankruptcies and to make it more difficult for companies to reject collective bargaining agreements in bankruptcy. Specifically, PERBBA proposes the following changes to claims related to worker compensation and benefits: * increasing to $20,000 from $13,650 the amount of prepetition wages and compensation entitled to priority treatment per employee; * increasing to $20,000 per covered employee the amount of contributions to employee benefits plans entitled to priority treatment; * removing the requirement that priority wage and benefit claims must be earned 180 days prior to the bankruptcy filing; * allowing priority claim treatment for amounts, including penalty amounts, owed for violation of labor and employment laws, including the WARN Act; and * adding additional priority claims for severance pay and employee benefit plan contributions due post-petition. Other provisions of PERBBA include: * making it more difficult to reject collective bargaining agreements and reduce employee benefits; * requiring the Bankruptcy Court to consider and give "substantial weight" to preservation of jobs when approving Section 363 sales; * allowing debtors to recoup payments made to executives to the extent that employee compensation is reduced; and * making it more difficult to increase executive and management compensation. Overall, these changes may create challenges for employers to reduce their operating expenses in Chapter 11. The increases in priority claims may also make it more difficult for large employers to obtain sufficient capital to pay priority claims and confirm a plan, particularly if WARN Act or other similar laws were violated. PERBBA was first introduced to Congress in 2007, following the collapse of Enron, and has been repeatedly introduced since then. None of the prior bills have been successful, and this iteration has yet to garner bipartisan support. However, the impact of the continuing pandemic on businesses and their employees may create bipartisan interest in PERBBA that previously has been lacking. Any opinions expressed and any legal positions asserted in the article are those of the author(s) and do not necessarily reflect the opinions or positions of Miles & Stockbridge P.C. or its other lawyers. This article is for general information purposes and is not intended to be and should not be taken as legal advice on any particular matter. It is not intended to and does not create any attorney-client relationship. Because legal advice must vary with individual circumstances, do not act or refrain from acting on the basis of this article without consulting professional legal counsel. If you would like additional information on the subject matter of this article, please feel free to contact any of the lawyers listed above. If you communicate with us, whether through email or other means, your communication does not establish an attorney-client relationship with either Miles & Stockbridge P.C. or any of the firm's lawyers. At Miles & Stockbridge P.C., an attorney-client relationship can be formed only by personal contact with an individual lawyer, not by email, and requires our agreement to act as your legal counsel together with your execution of a written engagement agreement with Miles & Stockbridge P.C. [^] BOOK REVIEW: Mentor X ------------------------- The Life-Changing Power of Extraordinary Mentors Author: Stephanie Wickouski Publisher: Beard Books Hard cover: 156 pages ISBN: 978-1-58798-700-7 List Price: $24.75 Order this Book: https://is.gd/EIPwnq Long-time bankruptcy lawyer Stephanie Wickouski at Bryan Cave impressively tackles a soft problem of modern professionals in an era of hard data and scientific intervention in her third published book entitled Mentor X. In an age where employee productivity is measured by artificial intelligence and resumes are prescreened by computers, Stephanie Wickouski adds spirit and humanity to the professional journey. The title is disarmingly deceptive and book browsers could be excused for assuming this work is just another in a long line of homogeneous efforts on mentorship. Don't be fooled; Mentor X is practical, articulate and lively. Most refreshingly, the book acknowledges the most important element of human development: our intuition. Mrs. Wickouski starts by describing what a mentor is and distinguishes that role from a teacher, coach, role model, buddy or boss. Younger professionals may be skeptical of the need for a mentor, but Mrs. Wickouski deftly disabuses that notion by relating how a mentor may do nothing less than change the course of a protege's life. Newbies to this genre need little convincing afterwards. One of the book's worthiest contributions is a definition of mentor that will surprise most readers. Mentors are not teachers, the latter of which impart practical knowledge. Instead, according to Mrs. Wickouski, her mentors "showed me secrets that I could learn nowhere else. They showed me how doors are opened. They showed me how to be an agent of change and advance innovative and controversial ideas." What ambitious professional doesn't want more of that in their life? The practicality of the book continues as Mrs. Wickouski outlines the qualities to look for in a mentor and classifies the various types of mentors, including bold mentors, charismatic mentors, cold and distant mentors, dissolute mentors, personally bonded mentors, younger mentors, and unexpected mentors. Mentor X includes charts and workbooks which aid the reader in getting the most out of a mentor relationship. In a later chapter, Mrs. Wickouski provides an enormously helpful suggestion about adopting a mentor: keep an open mind. Often, mentors will come in packages that differ from our expectations. They may be outside of our profession, younger, less educated, etc... but the world works in mysterious ways and Mrs. Wickouski encourages readers to think about mentors broadly. In this modern era of heightened workplace ethics, Mrs. Wickouski articulates the dark side of mentors. She warns about "dementors" and "tormentors" -- false mentors providing dubious and sometimes self-destructive advice, and those who abuse a mentor relationship to further self-interested, malign ends, respectively. She describes other mentor dysfunctions, namely boundary-crossing, rivalry, corruption, and a few others. When a mentor manifests such behaviors, Mrs. Wickouski counsels it's time to end the relationship. Mrs. Wickouski tells readers how to discern when the mentor relationship is changing and when it is effectively over. Those changes can be precipitated by romantic boundaries crossed, emergence of rivalrous sentiment, or encouragement of unethical behavior or corruption. Mrs. Wickouski aptly notes that once insidious energies emerge, the mentorship is effectively over. At this point, certain readers may say to themselves, "Okay, I've got it. Now I can move on." Or, "My workplace has a formal mentorship program. I don't need this book anymore." Or even, "Can't modern technology handle my mentor needs, a Tinder of mentorship, so to speak?" Mrs. Wickouski refutes that notion. She analyzes how many mentoring programs miss the mark. In one of the best passages in the book, Mrs. Wickouski writes, "Assigning or brokering mentors negates the most critical components of a true mentor–protege relationship: the individual process of self-awareness which leads a person to recognize another individual who will give the advice singularly needed. That very process is undermined by having a mentor assigned or by going to a mentoring party." She does not just criticize; she offers a solution with three valuable tips for choosing the right mentor and five qualities to ascertain a true mentor in the unlimited sea of possibilities. Next, Mrs. Wickouski distinguishes between good advice and bad advice. She punctuates that discussion with many relevant and relatable examples that are easy to read and colorfully enjoyable. This section includes interviews with proteges who have had successful mentorships. The punchline: in the best mentorships, the parties harmoniously share personal beliefs and values. Also important, the protege draws inspiration and motivation from the mentor. The book winds down as usefully as it started: Mrs. Wickouski interviews proteges, asking them what they would have done differently with their mentors if they could turn back the clock. A common thread seems to be that the proteges would have gone deeper with their mentors -- they would have asked more questions, spent more time, delved into their mentors' thinking in greater depth. The book wraps up lightly by sharing useful and practical suggestions for maintenance of the mentor relationship. She answers questions such as, "Do I invite my mentor to my wedding?" and "Who pays for lunch?" Mentor X is an enjoyable read and a useful book for any professional in any industry at, frankly, any point in time. Advanced individuals will learn much from the other side, i.e., how to be more effective mentors. Mrs. Wickouski does a wonderful job of encouraging use of that all knowing aspect of human existence which never fails us: proper use of our intuition. About The Author Stephanie Wickouski is widely regarded as an innovator and strategic advisor. A nationally recognized lawyer, she has been named as one of the 12 Outstanding Restructuring Lawyers in the US by Turnarounds & Workouts and as one of US News' Best Lawyers in America. She is the author of two other books: Indenture Trustee Bankruptcy Powers & Duties, an essential guide to the legal role of the bond trustee, and Bankruptcy Crimes, an authoritative resource on bankruptcy fraud. She also writes the Corporate Restructuring blog. ********* 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. 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