/raid1/www/Hosts/bankrupt/TCR_Public/200924.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, September 24, 2020, Vol. 24, No. 267
Headlines
211 LLC: U.S. Trustee Unable to Appoint Committee
4202 KI TOV: Seeks to Move Exclusivity Periods Thru Oct. 23
AGILE THERAPEUTICS: Reaffirms Q4 Revenue Guidance of $1M to $2M
ANNIE'S HOLDINGS: Seeks to Hire Richard A. Perry as Legal Counsel
ANTERO MIDSTREAM: Moody's Hikes Senior Unsecured Notes to B3
ANTERO RESOURCES: Moody's Hikes CFR to B2, Outlook Stable
ASP NAVIGATE: Moody's Assigns B2 CFR, Outlook Stable
BLUESTEM BRANDS: Plan Exclusivity Period Extended Until Oct. 5
BOWES IN-HOME: Gets Approval to Hire Clark Hill as Legal Counsel
CALIFORNIA PIZZA: Court OKs Financing, Disclosures
CARVANA CO: Moody's Alters Outlook on B3 CFR to Stable
CHISHOLM OIL & GAS: Court OKs $140M Ch. 11 Debt Swap
CITADEL SECURITIES: Moody's Alters Outlook on Ba1 Rating to Pos.
COSMOLEDO LLC: U.S. Trustee Appoints Creditors' Committee
CRESTVIEW HOSPITALITY: U.S. Trustee Unable to Appoint Committee
DAVE & BUSTER'S: Warns of Bankruptcy; Cuts 1,400 Jobs
DCP MIDSTREAM: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
DESOTO OWNERS: Files Chapter 11 to Stop Mall Foreclosure
DLVAMI 302 NORTH: Voluntary Chapter 11 Case Summary
DMM HOLDINGS: Voluntary Chapter 11 Case Summary
DTE ENERGY: Fitch Rates $200MM Junior Subordinated Debt 'BB+'
EXIDE TECHNOLOGIES: Floats the Environmental Cleanup Deal With EPA
EXTRACTION OIL: Trustee Asks Court to Snub Ch.11 Voter Solicitation
FLORIDA FIRST: Deadlines Extended Following Hurricane Sally
FLOWER CITY: Case Summary & 19 Unsecured Creditors
FM COAL: Seeks Approval to Hire Waller Lansden as Legal Counsel
FTS INTERNATIONAL: Case Summary & 30 Largest Unsecured Creditors
GARRETT MOTION: Court Questions Its Intercompany Overseas Payments
GECKO PARKS: U.S. Trustee Unable to Appoint Committee
GUAM: Moody's Rates Series 2020A COPs 'Ba2', Outlook Negative
HOLBROOK SEARIGHT: U.S. Trustee Unable to Appoint Committee
INNOVATIVE DESIGNS: Incurs $54K Net Loss in Third Quarter
JAGUAR DISTRIBUTION: Committee Taps SulmeyerKupetz as Legal Counsel
JEFFERIES FINANCE: Fitch Gives BB(EXP) to $350MM Secured Term Loan
JEFFERIES FINANCE: Moody's Cuts LT Senior Secured Rating to Ba3
JEMA GROUP: Voluntary Chapter 11 Case Summary
KEIV HOSPITALITY: Seeks to Hire Okin Adams as Legal Counsel
LJF INC: U.S. Trustee Unable to Appoint Committee
MARTIN DEVELOPMENT: Voluntary Chapter 11 Case Summary
MCCLATCHY CO: Court Ok Bankruptcy Plan Despite Govt. Objections
MOUNTAIN PROVINCE: Diamond Sale Proceeds Hit US$8.9 Million
NELNET INC: Moody's Confirms Ba1 CFR, Outlook Negative
NPC INTL: About 1,000 Pizza Hut Stores Could be Sold to Competitors
OBITX INC: Incurs $1.08 Million Net Loss in Second Quarter
ONEWEB GLOBAL: Court OKs Plan Vote to Tap $235M Funds
ORANGE BLOSSOM: U.S. Trustee Unable to Appoint Committee
ORCA INVESTMENTS: Voluntary Chapter 11 Case Summary
PACKAGING COORDINATORS: Moody's Assigns B3 CFR, Outlook Stable
PLANTERS EXCHANGE: U.S. Trustee Unable to Appoint Committee
PLUM CIRCLE: U.S. Trustee Unable to Appoint Committee
PPV INC: Hearing on Exclusivity Extension Bid Continued to Oct. 20
PULMATRIX INC: Incurs $1.2 Million Net Loss in Second Quarter
RADHA KRISHN: Seeks to Hire Javed Law Firm as Special Counsel
RADIO DESIGN: Seeks Plan Exclusivity Extension Thru Sept. 30
REMINGTON OUTDOOR: Court Denies Bid to Appoint Retirees Committee
REVINT INTERMEDIATE II: Moody's Assigns B3 CFR, Outlook Stable
RGN-GROUP HOLDINGS: U.S. Trustee Appoints Creditors' Committee
ROLETTE COUNTY, ND: Moody's Cuts Issuer Rating to B2, Outlook Neg.
SMP ENTERPRISES: U.S. Trustee Unable to Appoint Committee
TNT CRANE: U.S. Trustee Unable to Appoint Committee
TRANS-LUX CORP: Removes Interim Tag from CEO Fazio
TRANS-LUX CORP: Stockholders Pass All Proposals at Annual Meeting
UNIVERSITY OF PUERTO RICO: Extends Pact With Bondholders to Feb. 28
VAREX IMAGING: Moody's Assigns B2 CFR, Outlook Stable
VERSANT HEALTH: Moody's Places B3 CFR on Review for Upgrade
VIVUS INC: U.S. Trustee Appoints Equity Committee
[*] DSI Adds Four New Professionals to Offices Meet Demand
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
211 LLC: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
211, LLC, according to the court docket.
About 211 LLC
211, LLC sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Fla. Case No. 20-18952) on Aug. 20, 2020. At the time
of the filing, Debtor had estimated assets of less than $50,000 and
liabilities of less than $50,000. Judge Peter D. Russin oversees
the case. The Belleh Law Group, PLLC serves as Debtor's legal
counsel.
4202 KI TOV: Seeks to Move Exclusivity Periods Thru Oct. 23
-----------------------------------------------------------
4202 KI TOV LLC, requests the U.S. Bankruptcy Court for the Eastern
District of New York to extend the periods within which the Debtor
has the exclusive right to file and solicit acceptances to a
Chapter 11 plan of reorganization, through and including October
23, 2020, and December 22, 2020, respectively.
The Debtor and 4202 Partners, the Debtor's wholly-owned subsidiary,
intend to develop the property located at 4202 Ft. Hamilton
Parkway, Brooklyn, NY 11219, along with the contiguous real
property owned by the Debtor's affiliate/joint venturer, 4218
Partners LLC, to build a large commercial building whose tenants
are expected to include a major hospital, a health care facility
and a banquet hall, each of which will provide services that are
much needed by the local community.
The progress on the Project ground to a halt for more than four
months as a result of the COVID-19 pandemic, despite the efforts of
the Debtor, its affiliates, and their principals toward fulfilling
their goal of developing the Properties. They have invested
millions of dollars in the process and continue to invest their
funds on an ongoing basis.
The Debtor also noted that the denial of an application for parking
has further delayed progress. As of today, the State of New York is
still subject to a disaster emergency and related executive orders,
and economic activity remains largely frozen. This is an extremely
difficult and unusual environment in which to do business, the
Debtor said.
The Debtor pointed out that its case is completely linked with the
case of its subsidiary, 4202 Partners, as well as the cases of two
other debtors involved in the 4218 Property. Any plan of
reorganization for the Debtor will necessarily be dependent on and
part of, a plan of reorganization for 4202 Partners and well as the
4218 Property debtors.
The Debtor submits that these circumstances warrant an extension of
the Exclusive Periods to the same dates that apply to 4202 Partners
and the other affiliated debtors. Using the same Exclusive Periods
for all of the related debtors will minimize unnecessary
administrative expenses and is appropriate in light of the fact the
four debtors are all dependent on the development of the Project
and will ultimately file a joint plan of reorganization (or
identical plans of reorganization). Further, the requested
extension is well within the range of similar relief granted by
courts in this district under similar circumstances.
The Exclusive Filing Period for 4202 Partners expires October 23,
2020, and the Exclusive Solicitation Period expires December 22,
2020.
By Order dated June 19, 2020, the Court extended the exclusivity
periods to file and solicit acceptances to a Chapter 11 plan of
reorganization, through and including September 25, 2020, and
November 24, 2020, respectively.
About 4202 KI TOV LLC
4202 KI TOV LLC is engaged in activities related to real estate.
4202 KI TOV LLC filed its voluntary petitions under Chapter 11 of
the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-40573) on Jan. 29,
2020. In the petition signed by Samuel Pfeiffer, manager, 4202 KI
TOV estimates $250,000 in assets and $12,300,000 in liabilities.
The Debtor's wholly-owned subsidiary, 4202 Partners LLC, filed June
25, 2020, its own Chapter 11 Petition.
Nathan Schwed, Esq. at ZEICHNER ELLMAN & KRAUSE LLP represents the
Debtors as counsel. The Honorable Nancy H. Lord oversees the case.
The Debtor hired Zeichner Ellman & Krause LLP, as its attorneys.
AGILE THERAPEUTICS: Reaffirms Q4 Revenue Guidance of $1M to $2M
---------------------------------------------------------------
Agile Therapeutics, Inc., hosted an analyst day presentation on
Sept. 21, 2020. Members of the Company's executive team discussed
launch and commercialization plans for Twirla, the Company's once
weekly low-dose prescription contraceptive patch. Management was
joined by a leading external expert who provided clinical
perspectives on Twirla, as well as insights into today's
contraceptive marketplace.
During the presentation, the Company reaffirmed its previously
announced operating expense guidance for the full year 2020 to be
in the range of $52 million to $56 million and its previously
announced net revenue guidance for the fourth quarter of 2020 to be
in the range of $1 million to $2 million. The Company also
reaffirmed its belief that, based on the Company's current business
plan and ability to launch Twirla, its cash, cash equivalents and
marketable securities as of June 30, 2020 will be sufficient to
meet its projected operating requirements through the end of 2021.
If the COVID-19 pandemic or other factors impact the Company's
current business plans or its ability to generate revenue from the
launch of Twirla, the Company believes it has the ability to revise
its commercial plans, including curtailing sales and marketing
spending, to allow it to continue to fund its operations.
A live webcast of the Analyst Day as well as the presentation
materials for the event were simultaneously made accessible through
the Investor Relations section of the Company's website. A replay
of the webcast and the presentation materials are available at
https://ir.agiletherapeutics.com. The replay will be accessible
for the next 30 days.
About Agile Therapeutics
Agile Therapeutics, headquartered in Princeton, New Jersey --
http://www.agiletherapeutics.com/-- is a forward-thinking women's
healthcare company dedicated to fulfilling the unmet health needs
of today's women. The Company's product candidates are designed to
provide women with contraceptive options that offer freedom from
taking a daily pill, without committing to a longer-acting method.
Its lead product candidate, Twirla, (ethinyl estradiol and
levonorgestrel transdermal system), also known as AG200-15, is a
once-weekly prescription contraceptive patch that has completed
Phase 3 trials.
Agile recorded a net loss of $18.61 million in 2019, a net loss of
$19.78 million in 2018, and a net loss of $28.30 million in 2017.
As of June 30, 2020, the Company had $103.06 million in total
assets, $22.27 million in total liabilities, and $80.79 million in
total stockholders' equity.
Ernst & Young LLP, in Iselin, New Jersey, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated Feb. 20, 2020 citing that the Company has suffered recurring
losses from operations, requires additional capital to fund its
commercialization activities and has stated that substantial doubt
exists about the Company's ability to continue as a going concern.
ANNIE'S HOLDINGS: Seeks to Hire Richard A. Perry as Legal Counsel
-----------------------------------------------------------------
Annie's Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to hire Richard A. Perry, P.A.
as its legal counsel.
Richard A. Perry will provide the following services in connection
with Debtor's Chapter 11 case:
a. advise Debtor concerning the operation of its business in
compliance with Chapter 11;
b. prosecute and defend any causes of action;
c. prepare legal papers; and
d. assist in the preparation of a plan of reorganization and
disclosure statement.
The firm will be compensated at the rate of $350 per hour for
services rendered by its attorneys and $100 per hour for services
rendered by staff.
The firm received a retainer from Debtor in the amount of $8,717.
Richard A. Perry neither holds nor represents any interest adverse
to Debtor and its estate in the matters upon which it is to be
employed.
The firm can be reached through:
Richard A. Perry, Esq.
Richard A. Perry, P.A.
820 East Fort King Street
Ocala, FL 34471-2320
Telephone: (352) 732-2299
Email: richard@rapocala.com
About Annie's Holdings LLC
Annie's Holdings, LLC, a Belleview, Fla.-based limited liability
company, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Fla. Case No. 20-02628) on Sept. 3, 2020.
At the time of the filing, Debtor had estimated assets of between
$500,001 and $1 million and liabilities of the same range.
Richard A. Perry P.A. is Debtor's legal counsel.
ANTERO MIDSTREAM: Moody's Hikes Senior Unsecured Notes to B3
------------------------------------------------------------
Moody's Investors Service upgraded Antero Midstream Partners LP's
senior unsecured notes to B3 from Caa1 and changed the company's
rating outlook to stable from negative. Moody's concurrently
affirmed AM's B2 Corporate Family Rating (CFR) and B2-PD
Probability of Default Rating (PDR). The Speculative Grade
Liquidity (SGL) Rating was unchanged at SGL-3. These actions follow
the upgrade of Antero Resources Corporation (Antero or AR, upgraded
to B2 stable on Sep 22. 2020), which is AM's primary upstream
customer.
"Antero Midstream should face reduced counter-party credit risk and
have better cash flow visibility as Antero Resources continues to
address its near-term debt maturities and reduces leverage," said
Sajjad Alam, Moody's Senior Analyst.
Issuer: Antero Midstream Partners LP
Ratings Upgraded:
Senior Unsecured Notes, Upgraded to B3 (LGD5) from Caa1 (LGD5)
Outlook Actions:
Outlook, Changed to Stable from Negative
Ratings Affirmed:
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Ratings Unchanged:
Speculative Grade Liquidity Rating, Remains Unchanged at SGL-3
RATINGS RATIONALE
Antero Midstream's B2 CFR reflects its heavy reliance on Antero
Resources, concentrated geographic focus in the Appalachian Basin,
and indirect exposure to weak but improving natural gas and natural
gas liquids (NGLs) commodity prices. Antero Resources is contending
with high leverage and substantial serial debt maturities through
2023, which will continue to have an outsized effect on Antero
Midstream's credit risk profile. AM has long-term, fee-based
gathering, compression, fractionation, and water handling contracts
with Antero Resources. Additionally, substantially all of Antero
Resources' current and future acreage has been dedicated to AM.
AM's CFR is supported by its substantial scale and low financial
leverage relative to other B2-rated midstream companies, adequate
distribution coverage, predominantly fee-based revenue stream, and
good organic growth prospects. AM continues to pay very high
distributions which will exceed operating cash flow through 2021,
but keep leverage metrics relatively steady.
Antero Midstream Partners has adequate liquidity, which is
reflected in the SGL-3 rating. The company had $975 million in
available borrowing capacity under its $2.13 billion revolving
credit facility at June 30, 2020. The revolver expires on October
26, 2022, and Moody's expects AM to remain in compliance with the
revolver financial covenants. The partnership has limited alternate
liquidity given its assets are encumbered.
Antero Midstream's unsecured notes are rated B3, one notch below
the B2 CFR. While AM has a high proportion of secured debt in the
capital structure, Moody's expects the partnership to term out
revolver borrowings leading to an increasing proportion of
unsecured debt in the capital structure.
AM's stable rating outlook is consistent with the rating outlook of
Antero Resources.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of AM's ratings would depend on Antero Resources'
ratings being upgraded. Moody's would also expect debt/EBITDA to
remain below 5x and distribution coverage to be sustained above 1x.
The CFR could be downgraded if Antero Resources' CFR is downgraded,
or if AM's leverage metric rises above 6x.
The principal methodology used in these ratings was Midstream
Energy published in December 2018.
Antero Midstream Partners LP is a wholly owned subsidiary of Antero
Midstream Corporation, a midstream energy company based in Denver,
Colorado. Antero Midstream Corporation owns and operates an
integrated system of natural gas gathering pipelines, compression
stations, processing and fractionation plants, and water handling
and treatment assets in northwest West Virginia and southern Ohio.
ANTERO RESOURCES: Moody's Hikes CFR to B2, Outlook Stable
---------------------------------------------------------
Moody's Investors Service upgraded Antero Resources Corporation's
Corporate Family Rating to B2 from B3, Probability of Default
Rating to B2-PD from B3-PD and senior unsecured notes to B3 from
Caa1. The Speculative Grade Liquidity Rating remains unchanged at
SGL-3. The rating outlook was revised to stable from negative.
"The upgrade reflects Antero's reduced refinancing risk, modest
debt reduction and improved cost structure," said Sajjad Alam,
Moody's Senior Analyst.
Ratings Upgraded:
Issuer: Antero Resources Corporation
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Corporate Family Rating, Upgraded to B2 from B3
Senior Unsecured Notes, Upgraded to B3 (LGD5) from Caa1 (LGD5)
Issuer: Antero Resources Finance Corporation
Senior Unsecured Notes, Upgraded to B3 (LGD5) from Caa1 (LGD5)
Outlook Actions:
Issuer: Antero Resources Corporation
Outlook, Changed to Stable from Negative
Issuer: Antero Resources Finance Corporation
Outlook, Changed to Stable from Negative
Ratings Unchanged:
Issuer: Antero Resources Corporation
Speculative Grade Liquidity Rating, Remains unchanged at SGL-3
RATINGS RATIONALE
Antero's leverage and refinancing risk have declined following a
series of recent management actions. In addition to unveiling plans
to aggressively cut operating and development costs, the company
executed a $402 million ORRI sale, a $220 million VPP transaction,
and monetized a portion of its in-the-money hedges to reduce and
refinance debt. In addition, the company successfully completed a
convertible bond offering and used those proceeds to redeem some of
its nearer dated bonds through a tender offer process in the third
quarter of 2020. The company plans to pay off more debt through
2021, primarily with free cash flow. Antero still has $317 million
of notes maturing in November 2021 and $668 million maturing in
December 2022 that it will need to address to strengthen its credit
profile.
Antero's B2 CFR reflects its high financial leverage, reduced but
significant refinancing risks, and exposure to volatile natural gas
and natural gas liquids (NGLs) prices. The rating also considers
its geographic concentration in Appalachia, significant undeveloped
reserves and shale focused operations. The rating is supported by
its large natural gas production and reserves in Appalachia,
significant natural gas liquids (~30%) in the production mix,
consistent long-term hedging philosophy that reduces risk and
improves cash flow visibility, declining operating and development
costs, and significant ownership of Antero Midstream Corporation.
While Antero's diversified firm-transportation (FT) pipeline
contracts have historically helped realize higher prices, the
company is currently paying above market tariffs and has a higher
overall midstream cost structure than most of its Appalachian
peers.
Antero has adequate liquidity, which is captured in the SGL-3
rating. Moody's expects significant free cash flow generation
through 2021 enabling Antero to repay it's the remaining November
2021 notes and further reduce its December 2022 notes outstanding.
Antero had $926 million of borrowings and $730 million in
outstanding letters of credit leaving $984 million of availability
under its revolving credit facility as of June 30, 2020. Antero's
revolver will mature the earlier of: (i) October 26, 2022, and (ii)
the date that is 91 days to the earliest stated redemption of any
series of Antero's senior notes, unless such series of notes is
refinanced. Consequently, Antero will need to repay or refinance
the 2021 and 2022 note maturities to be able to extend the revolver
maturity beyond 2022.
Antero's senior unsecured notes are rated B3, below the B2 CFR
because of the significant size of the secured credit facility,
which has a first-lien priority claim to substantially all of
Antero's assets. The unsecured notes have upstream guarantees from
substantially all of Antero's E&P subsidiaries that also guarantee
the secured revolving credit facility.
Antero's stable rating outlook reflects Moody's expectation of
significant free cash flow generation and further debt reduction
through 2021.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade would be contingent on Antero's ability to produce free
cash flow on a consistent basis, achieve material debt reduction,
and substantially eliminate refinancing risk leading to a
sustainable retained cash flow to debt ratio above 15% on a
consolidated basis. Antero's ratings could be downgraded if the
company is unable reduce its refinancing risks, generates
significant negative free cash flow, or retained cash flow to debt
falls below 10%.
The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.
Antero Resources Corporation is a leading natural gas and natural
gas liquids producer in the Marcellus and Utica Shales in West
Virginia, Ohio and Pennsylvania.
ASP NAVIGATE: Moody's Assigns B2 CFR, Outlook Stable
----------------------------------------------------
Moody's Investors Service assigned a B2 Corporate Family Rating,
B2-PD Probability of Default Rating and B2 first lien credit
facility ratings to ASP Navigate Acquisition Corp. ("ASP"). The
outlook is stable.
ASP will acquire the Life Sciences division of NN, Inc. (Caa2 on
Review for Upgrade) for cash consideration of approximately $755
million. Cash sources include proceeds from the first lien credit
facilities and approximately $390 million of equity provided by
American Securities LLC. In addition, ASP may also make an
additional payment to NN, Inc. of up to $70 million in 2023 on
achievement of certain EBITDA targets.
The following ratings were assigned:
ASP Navigate Acquisition Corp.
Corporate Family Rating, assigned B2
Probability of Default Rating, assigned B2-PD
Proposed $60 million senior secured first lien revolving credit
facility, assigned B2 (LGD4)
Proposed $400 million senior secured first lien term loan, assigned
B2 (LGD4)
Outlook Action:
ASP Navigate Acquisition Corp.
Assigned stable outlook
RATINGS RATIONALE
ASP's B2 Corporate Family Rating reflects the company's moderately
high financial leverage with debt/EBITDA in the mid-five times
range as of June 30, 2020. Moody's expects debt/EBITDA will rise to
the low six times range by the end of 2020 but will improve over
the course of 2021 as sales volumes recover. The rating also
reflects the company's high customer concentration, with its 6
largest customers accounting for approximately 80% of revenues and
high product concentration, with 70% of revenues from orthopedic
related products. ASP's ratings reflect the business risks
associated with contract manufacturing, including potential
fluctuations in medical device customer demand and inventory
levels, less favorable payment terms offered by large medical
device customers and industrywide pricing pressure. The rating also
reflects the company's lack of history as a stand-alone company and
execution risk associated with the separation from NN, Inc. and
Moody's expectations that financial policies will remain aggressive
due to ownership by a private equity sponsor.
ASP's B2 CFR benefits from the company's reasonable scale in the
highly fragmented medical device contract manufacturing industry,
strong market position and relatively good profit margins. While
the company has high customer concentration, the company sells a
wide range of products to its key customers. Further, regulatory
constraints make switching costs high for its customers, resulting
in long-term sticky relationships between ASP and its customers.
ASP also benefits from good liquidity as Moody's expects the
company will generate sustained free cash flow and will have access
to an undrawn $60 million revolving credit facility.
Medical device companies face moderate social risk primarily
related to responsible production and satisfactorily responding to
social and demographic trends. For ASP, the social risks are
primarily associated with responsible production including
compliance with regulatory requirements for the safety of medical
devices as well as adverse reputational risks arising from recalls
associated with manufacturing defects.
The outlook is stable. Moody's expects ASP will see a recovery in
sales volumes over the course of 2021 such that revenues will
approximate 2019 levels as medical procedure volumes recover.
Moody's expects debt/EBITDA will approach the mid-five times range
over the course of 2021. The stable outlook also incorporates the
expectation that the company will be able to smoothly transition to
a stand-alone company as it completes the separation from NN Inc.
The proposed first lien term loan is expected to have no financial
maintenance covenants while the proposed revolving credit facility
will contain a springing maximum first lien leverage ratio that
will be tested when the revolver is more than 35% drawn. In
addition, the first lien credit facility contains incremental
facility capacity up to the greater of $79 million or 100% of
consolidated EBITDA. There are no "blocker" provisions providing
additional restrictions on top of the covenant carve-outs to limit
collateral leakage through transfers of assets to unrestricted
subsidiaries. There are leverage-based step-downs in the asset sale
prepayment requirement to 50% and 0% if the First Lien Leverage
Ratio is equal to or less than 0.5x and 1.00x, inside the closing
date First Lien Leverage Ratio, respectively.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company successfully executes the
separation from NN, Inc. and demonstrates margin expansion as a
standalone company. Further growth in scale and diversification
would be positive credit factors. Quantitatively, ratings could be
upgraded if financial policies are balanced and the company
sustains debt/EBITDA below 4.5 times.
Ratings could be downgraded if the company's liquidity profile
erodes or if there are execution issues arising from the separation
from NN, Inc. Quantitatively, ratings could be downgraded if
Moody's expects debt/EBITDA be sustained above 6 times.
The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.
ASP Navigate Acquisition Corp is an entity created to acquire the
Life Science division of NN, Inc. The business acquired is a
manufacturer of orthopedic and medical surgeon parts whose
customers are some of the world's largest medical device product
companies. LTM revenues were approximately $339 million. The
acquisition is scheduled to close in the fourth quarter of 2020.
BLUESTEM BRANDS: Plan Exclusivity Period Extended Until Oct. 5
--------------------------------------------------------------
Judge Mary F. Walrath granted Bluestem Brands, Inc. and its
affiliates' request to extend by 90 days their exclusive periods to
file a plan and solicit acceptances through and including October
5, 2020, and December 4, 2020, respectively.
The Debtors have won court approval to sell their assets to BLST
Operating Company, LLC f/k/a BLST Acquisition Company LLC for a
purchase price that includes $250,000,000 in credit bid plus
assumption of certain liabilities.
The Debtors said the extension will permit them to continue working
toward their goal of consummating a value-maximizing transaction
and bring these chapter 11 cases to conclusion in an orderly,
efficient manner, and allow the Debtors to undertake a plan
confirmation process without the costly disruption.
Also, the extended time will permit the Debtors to engage with
their stakeholders and seek consensus, and complete their
restructuring initiatives while these cases are administered as
efficiently as possible for the benefit of the Debtors'
stakeholders and other parties in interest.
The Debtors said they remain focused on:
(a) consummating a value-maximizing transaction;
(b) continuing to evaluate and make decisions regarding the
assumption or rejection of executory contracts and leases; and
(c) building consensus for an actionable chapter 11 plan and
obtaining plan confirmation.
* * *
Following a hearing on August 21, 2020, the Court entered its
Findings of Fact, Conclusions of Law, and Order Confirming the
Joint Chapter 11 Plan of Bluestem Brands.
The Exclusivity Extension order was entered August 25.
About Bluestem Brands
Bluestem Brands, Inc. and its affiliates --
https://www.bluestem.com/ -- are a direct-to-consumer retailer that
offers fashion, home, and entertainment merchandise through the
internet, direct mail, and telephonic channels under the Orchard
and Northstar brand portfolios. Headquartered in Eden Prairie,
Minnesota, Bluestem Brands employs approximately 2,200 individuals
and own and/or lease warehouses, distribution centers, and call
centers in 10 other states, including New Jersey, Massachusetts,
Georgia, and California. Its supply chain consists of name-brand
vendors -- e.g., Michael Kors, Samsung, Keurig, Dyson -- as well as
private label and non-branded sources based in the United States
and abroad.
Bluestem Brands, Inc., and its affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 20-10566) on March 9,
2020. In its petition, Bluestem Brands was estimated to have $500
million to $1 billion in both assets and liabilities. The petition
was signed by Neil P. Ayotte, executive vice president, general
counsel, and secretary.
The Honorable Mary F. Walrath oversees the case.
The Debtors tapped YOUNG CONAWAY STARGATT & TAYLOR, LLP, and
KIRKLAND & ELLIS LLP, KIRKLAND & ELLIS INTERNATIONAL LLP as
counsels; FTI CONSULTING, INC., as financial advisor; RAYMOND JAMES
& ASSOCIATES, INC., as investment banker; IMPERIAL CAPITAL LLC, as
restructuring advisor; and PRIME CLERK LLC as claims and noticing
agent.
BOWES IN-HOME: Gets Approval to Hire Clark Hill as Legal Counsel
-----------------------------------------------------------------
Bowes In-Home Care, Inc. received approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to hire Clark Hill PLC
as its bankruptcy counsel.
The firm will provide these services in connection with Debtor's
Chapter 11 case:
(a) advise Debtor of its powers and duties in the management
of its assets;
(b) advise Debtor of its obligations to taxing bodies and
other government agencies;
(c) pursue confirmation of a reorganization plan;
(d) prepare legal papers;
(e) appear in court and protect Debtor's interests; and
(f) perform all other legal services for Debtor.
Clark Hill's hourly rates range from $350 to $990 for its attorneys
and $150 to $275 for paralegals. The following are the hourly rates
of attorneys who are tapped to handle the case:
Scott N. Schreiber $660
Kevin H. Morse $585
Samuel J. Tallman $425
As of the petition date, the firm has a remaining retainer of
$19,740.25.
Kevin Morse, Esq., a member of Clark Hill, disclosed in court
filings that the firm is a "disinterested person" as such term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Scott N. Schreiber, Esq.
Kevin H. Morse, Esq.
Samuel J. Tallman, Esq.
Clark Hill PLC
130 East Randolph Street, Suite 3900
Chicago, IL 60601
Telephone: (312) 985-5595
Facsimile: (312) 985-5984
Email: sschreiber@clarkhill.com
kmorse@clarkhill.com
stallman@clarkhill.com
About Bowes In-Home Care Inc.
Bowes In-Home Care, Inc., an Elgin, Ill.-based home health care
service provider, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 20-15928) on Aug. 20,
2020. Bowes In-Home Care President Michael A. Collura signed the
petition.
At the time of the filing, Debtor had estimated assets of between
$1,000,001 and $10 million and liabilities of the same range.
Judge Carol A. Doyle oversees the case. Clark Hill PLC is Debtor's
legal counsel.
CALIFORNIA PIZZA: Court OKs Financing, Disclosures
--------------------------------------------------
Josh Saul of Bloomberg News reports that the federal bankruptcy
judge Marvin Isgur gave California Pizza Kitchen permission to
obtain DIP financing and send its disclosure statement to creditors
for a vote.
A hearing to consider confirmation of the Plan is slated for Oct.
29, 2020.
The debt-for-equity plan provides for first-lien lenders and DIP
lenders to take most of the equity in the new company. Holders of
unsecured and second-lien claims would get 3.5% of equity in new
company and $1.75 million cash payment. In the less likely event
of a sale, creditors would receive cash.
About California Pizza Inc.
California Pizza Kitchen, Inc. -- http://www.cpk.com/-- is a
casual dining restaurant chain that specializes in California-style
pizza. Since opening its doors in Beverly Hills in 1985, CPK has
grown from a single location to more than 200 restaurants
worldwide. CPK's traditional dine-in locations are full-service
restaurants that serve pizza, salads, pastas and other
California-inspired fare, alongside a curated selection of wines
and a menu of handcrafted cocktails and craft beers. Though the
Company's dine-in restaurants are the primary way the Company
serves its customers, CPK also has a number of "off-premises"
services and licensing agreements that allow customers to get their
favorite CPK dishes on the go.
California Pizza Kitchen, Inc. filed a Chapter 11 petition (Bankr.
S.D. Tex. Case No. 20-33752) on July 29, 2020. The Hon. Marvin
Isgur oversees the case.
At the time of filing, Debtors have $100 million to $500 million
estimated assets and $500 million to $1 billion estimated
liabilities.
Kirkland & Ellis is serving as legal counsel to CPK, Guggenheim
Securities, LLC is serving as its financial advisor and investment
banker, and Alvarez & Marsal, Inc. as restructuring advisor.
Gibson, Dunn & Crutcher LLP is acting as legal counsel for the
group of first lien lenders and FTI Consulting, Inc. is acting as
its financial advisor.Additional information about the Chapter 11
case can be found at https://cases.primeclerk.com/CPK
CARVANA CO: Moody's Alters Outlook on B3 CFR to Stable
------------------------------------------------------
Moody's Investors Service affirmed all ratings of Carvana Co.,
including its B3 Corporate Family Rating; B3-PD Probability of
Default Rating and Caa2 senior unsecured rating. The outlook was
changed to stable from negative.
"The outlook change to stable reflects the resilience with which
Carvana has managed through the various coronavirus-oriented
challenges thus far, and also reflects Moody's view that the
proposed $1 billion unsecured note issue will add over $300 million
to the company's cash coffers which when combined with the second
quarter equity offerings will support Carvana's near term cash flow
deficits," stated Moody's Vice President Charlie O'Shea. "The
trough turned out to be shallower and duration shorter than
originally perceived, and Carvana's remedial actions proved to be
more than sufficient to ensure maintenance of its pre-pandemic
credit profile," added O'Shea. "In addition, coronavirus has
created additional demand for the company's online-only sales model
which Moody's believes is a distinct positive."
Affirmations:
Issuer: Carvana Co.
Probability of Default Rating, Affirmed B3-PD
Corporate Family Rating, Affirmed B3
Senior Unsecured Regular Bond/Debenture, Affirmed Caa2 (LGD5)
Ratings Assigned:
Issuer: Carvana Co.
Senior Unsecured Regular Bond/Debenture, Assigned Caa2 (LGD5)
Outlook Actions:
Issuer: Carvana Co.
Outlook, Changed to Stable from Negative
RATINGS RATIONALE
Carvana's B3 corporate family rating highlights its lack of
profitability, excess cash balances following the notes offering,
favorable position in the used car retail segment, its unique
ordering and delivery models, which Moody's believes provide a
first-mover advantage, and significant management expertise in both
the auto and tech segments. Liquidity is further enhanced by the
proposed $1 billion senior unsecured note issue, which will repay
the existing $600 million due in 2023, and provide over $300
million in cash that will be used for future growth. The stable
outlook reflects Moody's view that Carvana's "path to profitability
velocity" has resumed, and that its various sources of liquidity
will smooth out potential rough patches that may arise for any
reason.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded once EBITDA turns positive with at least
adequate liquidity. Ratings could be downgraded if operating
performance levels do not continue to progress such that positive
EBITDA on a quarterly basis during the next few quarters is
unlikely, or if liquidity weakens.
The principal methodology used in these ratings was Retail Industry
published in May 2018.
Carvana Co., is a leading online retailer of used vehicles, with
LTM June 2020 revenues of around $4.4 billion.
CHISHOLM OIL & GAS: Court OKs $140M Ch. 11 Debt Swap
----------------------------------------------------
Law360 reports that Oklahoma drilling firm Chisholm Oil & Gas
Operating LLC received approval Wednesday, September 23,2020, in
Delaware bankruptcy court for a Chapter 11 plan of reorganization
that will slash $480 million of secured obligations from its
balance sheet.
During a virtual confirmation hearing, Chisholm attorney Lauren
Tauro of Weil Gotshal & Manges LLP said the plan will swap out the
secured debt in exchange for new equity in the reorganized company
and will provide a $3 million recovery pool for unsecured
creditors, leaving Chisholm with just $50 million of secured
obligations post-bankruptcy.
About Chisholm Oil & Gas
Chisholm Oil and Gas Operating, LLC, is an exploration and
production company focused on acquiring, developing, and producing
oil and natural gas assets in the Anarkado Basin in Oklahoma in an
area commonly referred to as the Sooner Trend Anadarko Basin
Canadian and Kingfisher County.
Chisholm Oil and Gas Operating and its affiliates sought Chapter
11
protection (Bankr. Lead Case No. 20-11593) on June 17, 2020.
In the petition signed by CFO Michael Rigg, the Debtors were
estimated to have $1 billion to $10 billion in assets and $500
million to $1 billion in liabilities.
The Hon. Brendan Linehan Shannon presides over the cases.
The Debtors have tapped Weil, Gotshal & Manges, LLP and Young
Conaway Stargatt & Taylor, LLP as legal counsel; Evercore Group,
LLC as investment banker; Alvarez & Marsal North America, LLC as
financial advisor; and Omni Agent Solutions as claims and noticing
agent.
CITADEL SECURITIES: Moody's Alters Outlook on Ba1 Rating to Pos.
----------------------------------------------------------------
Moody's Investors Service has affirmed Citadel Securities LP's
(CSLP) Ba1 issuer and senior secured bank credit facility ratings.
Moody's has also affirmed the Baa3 issuer ratings of Citadel
Securities LLC (CSLLC), Citadel Securities (Europe) Limited (CSEL)
and Citadel Securities GCS (Ireland) Limited (CSGI). Moody has
changed its outlook on all four rated entities to positive from
stable.
RATINGS RATIONALE
Moody's said CSLP's Ba1 ratings and its rated subsidiaries' Baa3
ratings reflect the strength of CSLP's global electronic
market-making activities across a variety of cash equities, fixed
income and derivatives markets. "Its credit strength is manifested
in its ability to generate strong revenue and profitability
throughout business cycles from generally market-neutral trading in
highly liquid securities with short hold periods. It also has a
strong base of retained long-term capital, effective liquidity risk
management, moderate financial leverage and favorable relationships
with funding counterparties," said Donald Robertson, Moody's Senior
Vice President. "Its ratings are constrained by the incremental
credit risks associated with its significant growth aspirations in
new markets and territories, and the operational and regulatory
risks that are inherent to the electronic market-making business
model," said Robertson.
Moody's said the outlooks were changed to positive from stable to
reflect the resiliency of CSLP's financial profile and improvements
to its funding profile, particularly from the retention of a
significant portion of its earnings. The firm's resiliency is
founded on its strong corporate culture committed to maintaining a
highly effective risk management and controls' framework through a
period of significant growth.
Moody's said CSLLC's, CSEL's and CSGI's Baa3 issuer ratings are a
notch higher than CSLP's Ba1 issuer rating because of the
structural superiority afforded to the operating companies'
obligations compared with the holding company's obligations.
Moody's said CSLP is managed on a consolidated basis and its
capital and liquidity is relatively fungible across each of its
entities, including CSLLC, CSEL and CSGI. Although there are no
formal intragroup guarantees or support agreements in place, CSLP's
treasury function carefully monitors capital and funding
allocations across entities and determines adjustments as needed,
after considering regulatory capital requirements, tax
considerations and each entity's financial performance and the
broader operating environment.
Moody's considers CSEL's and CSGI's management, operations and
financial affairs to be highly integrated and harmonized with the
rest of CSLP, and CSEL's and CSGI's equity capital, total assets,
revenue and income are a relatively small proportion of the group's
(as opposed to CSLLC, which is a significantly larger component of
CSLP). Accordingly, said Moody's, CSEL's and CSGI's credit profiles
are generally aligned with CSLP's, other than their structural
superiority to CSLP that is recognized in their one-notch ratings'
uplift.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded should CSLP continue to maintain and
invest in its risk management and controls' framework commensurate
with its ongoing international and product-level expansion,
accompanied by clear and consistent policies that ensure
commensurate levels of funding, liquidity and retained capital to
support its growth aspirations throughout different operating,
market and economic environments.
The ratings could be downgraded with evidence of a sustained
reduction in profitability or a significant failure in risk
management and controls. Other factors that could trigger a
downgrade include increased reliance on funding counterparties and
reduced quality of general financing contract terms, and a
significant reduction in liquidity, funding or capital.
Rating actions:
Issuer: Citadel Securities LP
-- Issuer rating, Ba1, Affirmed
-- Senior secured bank credit facility, Ba1, Affirmed
Issuer: Citadel Securities LLC
-- Issuer rating, Baa3, Affirmed
Issuer: Citadel Securities (Europe) Limited
-- Issuer rating, Baa3, Affirmed
Issuer: Citadel Securities GCS (Ireland) Limited
-- Issuer Rating, Affirmed Baa3
Outlook actions:
Issuer: Citadel Securities LP
-- Outlook, Positive, from Stable
Issuer: Citadel Securities LLC
-- Outlook, Positive, from Stable
Issuer: Citadel Securities (Europe) Limited
-- Outlook, Positive, from Stable
Issuer: Citadel Securities GCS (Ireland) Limited
-- Outlook, Positive, from Stable
The principal methodology used in these ratings was Securities
Industry Market Makers Methodology published in November 2019.
COSMOLEDO LLC: U.S. Trustee Appoints Creditors' Committee
---------------------------------------------------------
The U.S. Trustee for Region 2 appointed a committee to represent
unsecured creditors in the Chapter 11 cases of Cosmoledo, LLC and
its affiliates.
The committee members are:
1. Maison Eric Kayser Medatlantique Limited
7D Nikou Kradioti tower 4
3rd Floor Flat / Office 302
Ergomi PC
Nicosia 2411, Cyprus
Attention: Eric Kayser
Telephone: +33 1 42 34 95 68
2. 149 5th Corp.
352 7th Avenue, Suite 211
New York, New York 10001
Attention: Jennifer Schwartz, President
Email: jaschwartz1@verizon.net
Telephone: (212) 688-1414
3. S.D. Ryan Lieble
c/o C.K. Lee
148 West 24th Street, 8th Floor
New York, New York 10011
Email: shaneleible@gmail.com
cklee@leelitigation.com
Telephone: (347) 382-0746
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Cosmoledo LLC
Cosmoledo, LLC and affiliates own and operate 16 fine casual bakery
cafes in New York City under the trade name "Maison Kayser."
Maison Kayser, a global brand, is an authentic artisanal French
boulangerie that has been doing business in New York since 2012.
For more information, visit https://maison-kayser-usa.com/
Cosmoledo, LLC, and its affiliates, including Breadroll, LLC,
sought Chapter 11 protection (Bankr. S.D.N.Y Lead Case No.
20-12117) on Sept. 10, 2020.
In the petitions were signed by CEO Jose Alcalay, Debtors were
estimated to have assets in the range of $10 million to $50
million, and $50 million to $100 million in debt.
The Debtors tapped Mintz & Gold LLP as their bankruptcy counsel,
and CBIZ Accounting, Tax and Advisory of New York LLC as their
financial advisor, accountant and consultant. Donlin Recano & Co.,
Inc. -- https://www.donlinrecano.com/Clients/mk/Index -- is the
claims agent.
CRESTVIEW HOSPITALITY: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------------
The Office of the U.S. Trustee on Sept. 22, 2020, disclosed in a
court filing that no official committee of unsecured creditors has
been appointed in the Chapter 11 case of Crestview Hospitality,
LLC.
About Crestview Hospitality
Crestview Hospitality LLC, a company based in Crestview, Fla.,
filed a Chapter 11 petition (Bankr. N.D. Fla. Case No. 20-30704) on
Aug. 12, 2020. In the petition signed by Martha S. Colbert,
manager, Debtor disclosed $4,939,804 in assets and $3,790,327 in
liabilities. Wilson Harrell Farrington Ford Wilson Spain &
Parsons, P.A. serves as Debtor's bankruptcy counsel.
DAVE & BUSTER'S: Warns of Bankruptcy; Cuts 1,400 Jobs
-----------------------------------------------------
Tory N. Parish of Newsday reports that Dave & Buster's has filed
notices with the state labor department to make more than 1,400
temporary employee layoffs permanent, including 421 on Long Island,
and is considering filing for bankruptcy protection.
The Dallas-based operator of venues that combine arcades, sports
bars and restaurants has 11 locations in New York State that
temporarily closed in March under a government mandate to help stop
the spread of COVID-19, although one Long Island location -- in
Islandia -- recently reopened for food and beverage service only.
Contending with financial woes due to months of temporary closings
across the country, the struggling company is considering filing
for Chapter 11 bankruptcy protection if it can't reach a favorable
deal with its lenders, according to a filing with the U.S.
Securities and Exchange Commission.
But the company plans to rehire some of the New York employees at
some point, spokeswoman Shelby Lopaty Robinson said Tuesday,
September 22, 2020.
"As the notices made clear, the company currently does not plan to
permanently close the locations, and we will do our best to rehire
as many affected team members as we can just as soon as state and
local governments allow arcades to reopen," she said.
Dave & Buster's temporarily laid off workers in March at its New
York locations but the layoffs will become permanent Dec. 8, 2019
or during a 14-day period after that date, the company said in the
Worker Adjustment and Retraining Notification Act filings, or
WARNs, it submitted to the New York State Department of Labor on
Sept. 8. The notices were posted on the state agency’s website
Sept. 16 and 17, 2020.
Under the WARN Act, certain employers must notify workers and the
state in advance of mass layoffs or work site closings.
"Unfortunately, because of the indefinite timeframe for reopening
arcades in certain jurisdictions, including New York, the company
issued legally required WARN act notices to affected team members
at affected locations," Robinson said.
The 11 Dave & Buster's locations in the state include three on Long
Island — in Islandia Shopping Center, Sunrise Mall in Massapequa,
and Samanea New York Mall, formerly called Mall at the Source, in
Westbury.
Gov. Andrew M. Cuomo ordered nonessential businesses, including
movie theaters, bowling alleys, shopping malls, arcades and some
types of stores, to close in March to help stop the spread of the
virus. Since then, most nonessential businesses have been allowed
to reopen in phases.
Arcades, amusement parks, movie theaters and live entertainment
venues have not been allowed to reopen.
"Thanks to our data-driven public health policies and New
Yorkers’ hard work, we have achieved — and so far maintained
— one of the lowest rates of infection in the nation, but with
the threat of a second wave on the horizon, we are continuing to
monitor how and when higher-risk industries like arcades can safely
reopen," said Jack Sterne, a Cuomo spokesman. "We appreciate that
business owners want to plan in advance to operate safely, and will
work with them as that process continues."
As of March 20, 2020, all Dave & Buster's stores nationwide were
temporarily closed because of mandates to help stop the spread of
the virus, but 94 of its 136 stores have reopened.
Dave & Buster's total revenues decreased 85.2% to $50.8 million
during the second quarter, which ended Aug. 2, 2020.
More than 60% of Dave & Buster's revenue comes from arcades, Dave &
Buster's Entertainment Inc. CEO Brian Jenkins said during a Sept.
10, 2020 call with analysts about the company's second-quarter
earnings.
About Dave & Buster's Entertainment
Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster's
Entertainment, Inc., is the owner and operator of 136 venues in
North America that combine entertainment and dining and offer
customers the opportunity to "Eat Drink Play and Watch," all in one
location. Dave & Buster's offers a full menu of entrees and
appetizers, a complete selection of alcoholic and non-alcoholic
beverages, and an extensive assortment of entertainment attractions
centered around playing games and watching live sports and other
televised events. Dave & Buster's currently has stores in 40
states, Puerto Rico, and Canada.
DCP MIDSTREAM: Fitch Affirms BB+ LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed DCP Midstream, LP (DCP) and DCP
Midstream Operating, LP (DCP Operating) Long-Term (LT) Issuer
Default Rating (IDR) at 'BB+'. The senior unsecured ratings and
junior subordinated notes for DCP Operating have been affirmed at
'BB+'/'RR4' and 'BB-'/'RR6', respectively. Additionally, Fitch has
affirmed DCP's preferred equity ratings at 'BB-'/'RR6'. Fitch also
removed the Rating Watch Negative (RWN) and assigned a Stable
Outlook.
The removal of the RWN and assignment of Stable Outlook reflects
Fitch's expectation that DCP's leverage will remain elevated but
lower than its previous forecast in March 2020. Fitch now sees
improved YE 2020 leverage in a range of 4.8x-5.0x which ticks up to
a 5.0x-5.2x range at YE 2021, absent any asset sales or further
distribution cuts, remaining below the 5.5x negative rating
sensitivity. Operations were stronger than previously expected as
curtailed exploration and production (E&P) production activities
are returning faster than originally estimated. As commodity
prices, particularly natural gas prices, have improved, DCP has
been able to opportunistically add hedges reducing their
sensitivity to adverse price movements to gross margin.
Credit concerns for DCP include the potential for setbacks in 2H20
and 2021 with a risk of severe second wave of coronavirus pandemic,
especially in the context of material downward commodity prices and
product demand.
KEY RATING DRIVERS
Leverage Elevated in 2021: As of 2Q20, Fitch calculated DCP's LTM
leverage (total debt with equity credit-to-adjusted EBITDA) to be
5.3x. Fitch forecasts DCP's YE20 leverage to be 4.8x - 5.0x and
YE21 leverage to be 5.0x-5.2x. This forecast is better than the
previous expectation that DCP will operate with leverage closer to
the negative rating sensitivity of 5.5x in 2020 and 2021 given the
entities' direct exposure to commodity prices and volumetric risk.
Natural gas liquids (NGL) pipeline throughputs in the logistics and
marketing (L&M) segment and gathering and processing (G&P) volumes,
particularly from the DJ Basin and Permian Basin are higher than
previously expected. In 2Q20 earnings were helped by improved
commodities prices and DCP reinstated the previously withdrawn
EBITDA guidance range of $1,205 million to $1,345 million. Fitch
expects DCP's 2H20 and 2021 EBITDA to remain stronger than previous
forecast driven by lower production curtailments and benefits from
the ramping up of the recently in-service Cheyenne Connector
residue gas takeaway pipeline in the DJ Basin, and the Latham 2
Offload gas processing system slated to come in-service in the DJ
in 4Q20 with MVCs effective starting in 2021. Fitch notes that DCP
has taken several large cost cutting actions in the 1H20, including
the 50% distribution cut, and reductions in capex and SG&A costs,
conserving aggregate cash by around $900 million per annum. These
steps mitigate the downturn and drive future FCF intended to be
used for deleveraging. Considering the improved outlook for 2H20,
Fitch expects DCP to meet the lower end of its reissued EBITDA
guidance range for 2020.
DCP has displayed a pattern of leaving approximately 20% of gross
margins unhedged, so commodity price weakness relative to
management guidance will pose challenges for DCP's operational
performance in the near term. Fitch notes that DCP has taken
advantage of favorable natural gas prices and added hedges that
reduce its sensitivity to a large drop in natural gas prices. Fitch
expects over 80% of DCP's gross margin to be fee-based or hedged in
2021.
Volumetric Exposure: DCP's ratings reflect its operation's exposure
to volumetric risks associated with the domestic production and
demand for natural gas and NGLs. In 2Q20, DCP's wellhead volumes
declined over approximately 9% compared to 1Q20 driven by curtailed
producer activities in the Midcontinent and East South Texas
regions. While DCP's G&P volumes are projected to be lower in 2H20
compared to DCP's pre-coronavirus run-rate given
producer-customers' low level of new drilling. Fitch expects such
decline to be smaller than previously anticipated driven by
greater-than-previous DUCs (Drilled but Uncompleted Wells)
completion by DCP's customers in the Permian and DJ basin. In its
recent earnings call, DCP mentioned that that its largest customer
in the DJ Basin announced they are adding a completion crew during
3Q20. Under the current Fitch commodities price deck Fitch also
expected producer activities to be constructive in 2021 and noted
that production in the Anadarko and Permian basin has also recently
rebounded in June.
For DCP's Logistics and Marketing segment (NGL and gas pipelines,
storage and fractionators), NGL pipeline throughput was only down
0.1% sequentially qoq in 2Q20, in part benefiting from ethane
recovery conditions. Weaker throughput from Front Range pipeline
and Texas Express pipeline was largely offset by increased volumes
on Southern Hills pipeline due to the completion of the DJ Basin
extension. Fitch expects total throughput volume to decline in 2H20
and 2021 given expectations of lower production.
Scale and Scope of Operations: DCP's ratings reflect the size and
scale, and diversity of its asset base. DCP's ratings recognize
that it is one of the largest producers of NGLs and processors of
natural gas in the U.S. The partnership has a robust operating
presence in most of the key production regions within the U.S. The
size and breadth of DCP's operations allow it to offer its
customers end-to-end gathering, processing, storage and
transportation solutions, giving it a competitive advantage within
the regions where they have significant scale. Additionally, the
partnership's large asset base provides a platform for growth
opportunities across its footprint in areas such as the DJ Basin
and Permian Basin.
Supportive Ownership: Fitch rates DCP on a stand-alone basis, with
no explicit notching from its parent companies' ratings; however,
DCP's ratings reflect that DCP's owners have been, and are expected
to, remain supportive of the operating and credit profile of DCP.
DCP's ultimate owners of its general partner, Enbridge, Inc. (ENB;
BBB+/Stable) and Phillips 66 (PSX; not rated) have in the past
exhibited a willingness to forgo dividends. This support was most
recently demonstrated by the approval of the March distribution
cut.
Diversity of Counterparties: Counterparty risk is a general concern
for most midstream issuers with gathering and processing
operations, but should be relatively limited for DCP. DCP's volumes
and margin are supported by long-term contracts and agreements with
a diverse set of largely investment grade producers within the
producing regions where DCP operates. DCP does not have any
material unsecured concentration with any single high-yield
counterparty.
DERIVATION SUMMARY
DCP's ratings are reflective of its favorable size, scale,
geographic and business line diversity within the natural gas
gathering and processing space. The ratings recognize that DCP has
greater exposure to commodity prices than many of its midstream
peers, with approximately 70% of gross margin supported by
fixed-fee contracts. This commodity price exposure has been
partially mitigated in the near term through DCP's use of hedges
for its NGL, natural gas and crude oil price exposure, pushing the
percentage of gross margin, either fixed-fee or hedged, up to 82%
as of 2Q20. This helps DCP's cash flow stability, but exposes it to
longer-term hedge roll-over and commodity price risks.
DCP is larger and more geographically diversified than its peers
EnLink Midstream, LLC (ENLC; BB+/Negative) and Enable Midstream
Partners, LP (ENBL; BBB-/Negative). Fitch expects DCP and ENLC to
have similar leverage in the 5.0x range in the near term, and DCP's
leverage to be slightly higher than ENBL's, in the range of
4.5x-4.8x, at YE 2020 and trending closer to 5.0x at YE 2021.
Further, ENBL and ENLC also have lower direct commodities price
exposure relative to DCP, as more of their revenue supported by
fixed-fee contracts. DCP has roughly 70% of its gross margin
supported by fixed-fee contracts, while ENBL and ENLC each have
greater than 90%.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Agency's Rating Case for the
Issuer
-- Base case WTI oil price deck of $38/bbl in 2020, $42/ bbl in
2021 and $47/ bbl in 2022; and Henry Hub natural gas price of
$2.20/mcf in 2020, $2.45 in 2021 and $2.45 in 2022;
-- Maintenance capital of roughly $75 million to $95 million
annually. Growth spending of between $150 million and $190 million
in 2020, funded with a balanced mix of funding sources;
-- No equity issuance in forecast period;
-- G&P and NGL throughput volumes decline in 2H20 and 2021;
-- Latham 2 Offload comes in-service during 4Q20.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to a
positive rating action/upgrade:
-- A demonstrated ability to maintain the percentage of fixed-fee
or hedged gross margin at or above 70% while maintaining leverage
below 4.5x and distribution coverage above 1.0x on a sustained
basis could lead to a positive rating action.
Factors that could, individually or collectively, lead to a
negative rating action/downgrade:
-- Leverage expected above 5.5x on a sustained basis and/or
distribution coverage consistently below 1.0x would likely result
in at least a one-notch downgrade;
-- A significant decline in fixed-fee or hedged commodity leading
to a gross margin of less than 60% fixed fee or hedged without an
appropriate significant adjustment in capital structure,
specifically a reduction in leverage that would likely lead to at
least a one-notch downgrade;
-- A significant change in the ownership support structure from
GP owners ENB and PSX to the consolidated entity particularly with
regard to the GP position on commodity price exposure, distribution
policies and capital structure at DCP, the operating partnership.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: As of June 30, 2020, DCP had total liquidity of
approximately $1.117 billion which includes $1.105 billion undrawn
on it $1.4 billion senior unsecured revolving credit facility after
accounting for $14 million in LOC. Cash on the balance sheet was
$12 million.
The credit facility has a leverage covenant that requires DCP's
consolidated leverage ratio not to exceed 5.0x for each quarter.
The leverage ratio would be stepped up to 5.5x for three quarters
following any qualified acquisition. Importantly, for covenant
calculation purposes, DCP's preferred equity and junior
subordinated notes are given 100% equity treatment (versus Fitch's
50% equity treatment), so the issuance of preferred equity will
help improve liquidity and leverage as the proceeds are expected to
be used to pay down debt.
DCP's maturities are manageable with $500 million of senior notes
due September 2021, and $700 million of debt due in 2022. The 2022
maturities include $350 million senior unsecured notes, and $350
million outstanding under an account receivable securitization
facility. As of June 30 2020, there is $502 million of accounts
receivables securing the borrowings under this facility.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch applies 50% equity credit to DCP's junior subordinated notes
and to its existing preferred equity in Fitch's forecasts. Fitch
typically adjusts master limited partnership EBITDA to exclude
equity interest in earnings from nonconsolidated affiliates but
includes cash distributions from nonconsolidated affiliates.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
DESOTO OWNERS: Files Chapter 11 to Stop Mall Foreclosure
--------------------------------------------------------
DeSoto Owners LLC, filed for Chapter 11 bankruptcy (Bankr. E.D.N.Y.
Case No. 20-43387) on Sept. 22, 2020.
Laura Finaldi of Sarasota Herald-Tribune reports that DeSoto Owners
LLC, the owner of the only indoor shopping center in Bradenton
filed for bankruptcy on Tuesday, the day before a foreclosure sale
of the property was scheduled to take place.
DeSoto Owners LLC owns the DeSoto Square Mall at 303 301 Blvd. W.
in Bradenton, Florida.
The mall property was scheduled for a foreclosure sale on
Wednesday, but the auction was called off because of the bankruptcy
filing, Murray Silverstein, an attorney for the mall property's
lender, Rompsen US Master Mortgage LP, said via email. U.S.
bankruptcy code says that a foreclosure auction can't go forward
without approval from the bankruptcy court, Silverstein said.
Romspen "will be involved in the bankruptcy and weigh in on any
potential plan of reorganization and, if not satisfied with the
plan — we can also present our own plan — will vote against it
and request that the case be returned to Manatee County for
completion of the foreclosure sale," he said.
Ronald Gache, an attorney for DeSoto Owners LLC, did not respond to
a phone call requesting more information.
The initial action to foreclose on the property was filed in August
2018. Romspen and DeSoto Owners LLC came up with a repayment
agreement at a January court hearing, but in April 2020, DeSoto
said it wouldn't be able to fulfill its end of the bargain because
of COVID-19.
Judge Charles Sniffen of the 12th Judicial Circuit Court had set a
foreclosure sale for Sept. 23. Court documents allege that DeSoto
Owners owes about $30 million on its mortgage.
Even before COVID-19, DeSoto Square Mall was plagued with problems.
The mall reigned as the place to be in Bradenton for several years
after its 1973 opening and once hosted Ronald Reagan during a
campaign stop.
But in more recent years, it has struggled under different owners
and changing retail trends. The mall's JCPenney store is set to
close soon, which will leave it with just one anchor tenant,
Hudson's Furniture.
Smaller tenants have also been slowly leaving over the years,
including Victoria's Secret, Kay Jewelers and others. The mall
evicted six tenants early last year — White Craft Black Market, S
Braiding Salon & Barber, Fina’s Tacos, 3J’s Vault, Intrigue
Jewelers and Empire Barber Shop and Salon.
Plans for a major redevelopment of the site were filed with Manatee
County late last year. They include 360 lifestyle center units, 360
garden style homes, 150 senior housing units, two 5,000-square-foot
residential amenity buildings, a 128,514-square-foot retail
lifestyle center, 16,250 square feet in retail outparcel space, a
40,000-square-foot grocery store, and 90,000 square feet of office
space.
The site also has infrastructure issues, which, according to the
plans, will be corrected by adding three retention ponds and
expanding a pond on the north side of the mall property that’s
owned by the county. The plans also propose adding a shared roadway
network and infrastructure.
The redevelopment does not include the former Sears property, which
is owned by Madison Capital Group of Charlotte, North Carolina. The
building is being converted into a Go Store It self-storage
facility.
DLVAMI 302 NORTH: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: DLVAMI 302 North Shore, LLC
302 North Shore Dr.
Anna Maria, FL 34216
Business Description: DLVAMI 302 North Shore, LLC classifies its
business as Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: September 22, 2020
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 20-07105
Debtor's Counsel: Edward J. Peterson, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
110 E. Madison St., Suite 200
Tampa, FL 33602
Tel: 813-229-0144
E-mail: epeterson@srbp.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Denise Valley, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the petition is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/EKFJ5JI/DLVAMI_302_North_Shore_LLC__flmbke-20-07105__0001.0.pdf?mcid=tGE4TAMA
DMM HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: DMM Holdings, LLC
11 Marbleridge Road
North Andover, MA 01845
Business Description: DMM Holdings, LLC classifies its business as
Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)).
Chapter 11 Petition Date: September 23, 2020
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 20-40937
Judge: Hon. Elizabeth D. Katz
Debtor's Counsel: Marques C. Lipton, Esq.
PARKER & LIPTON
10 Converse Place, Suite 201
Winchester, MA 01890
Tel: (781) 729-0005
Fax: (781) 729-0187
Email: mlipton@parkerlipton.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David M. Martin, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the petition is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/NQCGORA/DMM_Holdings_LLC__mabke-20-40937__0001.0.pdf?mcid=tGE4TAMA
DTE ENERGY: Fitch Rates $200MM Junior Subordinated Debt 'BB+'
-------------------------------------------------------------
Fitch Ratings has assigned a rating of 'BB+' to DTE Energy Co.'s
(DTE; BBB) issuance of $200 million of Series G 4.375% junior
subordinated debentures maturing on Oct. 15, 2080.
The junior subordinated debentures rank junior to other unsecured
debt of DTE. The Rating Outlook is Stable. Proceeds will be used to
repay $200 million outstanding of 2012 Series C 5.25% junior
subordinated debentures maturing in 2062, callable at par since
Dec. 1, 2017.
The ratings and Outlooks consider uncertainty regarding the impact
of the coronavirus at DTE's midstream business and electric and gas
utility business. Fitch believes DTE is well-positioned to weather
the economic effects of the coronavirus within its current rating
category. DTE also has a history of successfully implementing
contingency plans during events that adversely affect its utility
sales, including the 2008-2009 recession.
KEY RATING DRIVERS
Credit Metrics Improving: Fitch estimates consolidated FFO leverage
will be 5.1x-5.2x in 2020-2021. EBITDA growth associated with the
Haynesville acquisition beginning in 2020 and the conversion of
equity units in 2022 are the main drivers of deleveraging, with
Fitch estimating leverage to decline to 4.7x-4.8x by 2022-2023.
Fitch does not assign equity credit to the equity units. The latest
acquisition financing also increased parent-level debt to an
above-average level of 44% of total debt as of YE 2019. Fitch
expects parent debt to decline over the forecast period, but still
remain elevated at about 37% of the total debt by 2023.
Limited Impact from Coronavirus: The coronavirus pandemic is
causing unprecedented disruptions to state and local economies as
well as financial markets. While the situation remains fluid, Fitch
believes the affect to DTE will be manageable. DTE Electric (DTEE)
derives approximately 33% of its MWh sales from residential
customers, 38% from commercial and 22% from industrial. Fitch
believes operational savings and increase in residential sales
(with much higher margins than industrial and commercial sale) can
mostly offset a reduction in commercial and industrial sales.
Management projects they should be able to reduce their O&M by
around $120 million predominately at the utilities in 2020, which
is well above the projected impact on sales from coronavirus
economic slowdown of about $60 million. YTD the sales decline from
coronavirus has been slightly better than management projections
due to significantly higher residential demand. Most of the O&M
reduction are expected to be only temporary, but should provide
cash flow and earnings protection in the near term. The
uncollectible expense is expected to rise, but should remain
manageable. DTEE has a bad debt reserve in the rate structure of
about $92 million. In addition, Michigan utilities received
approval to begin deferring uncollectible expense in excess of
amount in base rates starting March 2020. Liquidity is adequate and
has been recently increased by term loan issuances. For DTE Gas
(DTEG), Fitch projects limited concerns as the coronavirus-related
economic slowdown comes during a seasonally low demand period for
natural gas. Debt maturities are manageable, and Fitch expects DTE
to have continued access to the capital markets.
Constructive Utility Regulatory Environment: The Michigan
regulatory environment remains constructive from a credit
perspective, evidenced by general rate case (GRC) outcomes, in
which the MPSC recently approved authorized ROEs of 9.9%, which are
above industry averages for electric and gas utilities. The
regulatory framework allows full pass-through of fuel and purchased
power costs, forward-looking test years and timely 10-month review
period for GRC resolution. DTEE received its last rate order in May
and DTEG has a GRCs settlement pending in front of the Commission.
Fitch believes recent DTEE and DTEG orders are constructive and
supportive of current credit ratings.
Utility-Focused Capex Program: DTE's $19 billion capital program in
2020-2024 is 80% utility-oriented, and total utility investment is
$1 billion higher than the previous five-year plan. There is also
an upside potential for capex investment at utilities of about $2
billion. The utilities are investing in distribution, environmental
compliance projects, and gas, pumped storage, and wind generation.
The spending, led by the utility and gas pipeline investments, is
expected to render DTE's FCF negative in the intermediate term.
Fitch expects the program to be funded with internal cash flow,
debt and equity from the parent to maintain the utilities'
regulatory capital structure.
Midstream Acquisitions Drive Business Mix: Fitch views the Gas
Storage & Pipeline (GSP) segment as riskier than the regulated
utilities. The GSP segment contributed about 17% of operating
earnings in 2019 and is projected to increase to around 22% in
2020. Fitch expects DTE will continue to grow the non-utility GSP
segment to keep pace with the utility investment in DTEE and DTEG.
Late last year, DTE acquired 100% of the operational Blue Union
Gathering System (BUGS) and LEAP, a 150 mile, 1.0 bcfd pipeline
under construction from Momentum Midstream and Indigo. The
Haynesville acquisition represented 65% of GSP's five-year capital
program from 2018-2022 and pulled forward GSP investments. It also
adds geographic diversity. Current five-year capex plan does not
contemplate non-organic investment in the GSP segment, but includes
about $2.2 billion to $2.7 billion of capital investment, of which
about $1 billion was spent in 2020 for LEAP, which recently went
into service. Fitch expects regulated utilities will remain around
75%-80% of EBITDA, contributing to predictable earnings and cash
flow, and the non-utility segments, through organic growth and
smaller bolt-on acquisitions, contribute around 20%-25% of
consolidated EBITDA through 2023.
Increased Midstream Business Risk: DTE's midstream assets primarily
operate under long-term contracts (average contract life is about
nine to 10 years). Eighty-five percent of revenues in 2020-2022 are
expected to come from payments at minimum volume commitment (MVC)
levels, and take or pay demand charges, while 15% is from
re-contracting and growth from the MVC and demand charge levels.
Fitch expects that the current low gas price environment, coupled
with lower demand due to coronavirus and trade disputes on the
economy could put pressure on the ability to grow beyond current
contract levels in the near future.
The heightened business risk reflects the counterparty credit risk
related to the primary customer Indigo Natural Resources (not rated
by Fitch, but senior unsecured rated 'B3' at Moody's) on the
Haynesville gathering and pipeline system. In addition, several of
the counterparties at its other midstream assets in Marcellus and
Utica have been downgraded in recent months due to the declining
natural gas and oil prices that have put strain on their credit
metrics. DTE's main counterparty on its gathering systems Bluestone
and Susquehanna, Southwestern Energy Company (SWN; BB/Negative),
was assigned a Negative Outlook in February. Antero Resources, a
primary counterparty on DTE's LINK gathering system, was also
downgraded to 'B' from 'BB-', and currently has a Negative Outlook.
SWN is in a better position than Antero as it does not have any
large near-term maturities. Most of DTE's counterparties are well
hedged for 2020 at natural gas price levels of $2.50/mmbtu or
higher with more uncertainty in 2021, due to lower hedges versus
2020 levels. The recent pick up in forward natural gas prices
should provide opportunity for hedging at higher levels.
Parent/Subsidiary Linkage: Fitch applied a bottom-up approach in
rating DTE and its subsidiaries. DTE's Long-Term Issuer Default
Rating (IDR) reflects a consolidated credit profile. The linkage
between the parent and subsidiaries follows a weak parent/strong
subsidiary approach. Fitch considers DTEE stronger than DTE due to
the low-risk business-regulated utility operations and predictable
cash flow. Legal ties are weak, as DTE does not guarantee the debt
obligations of the subsidiaries and no cross defaults exist among
DTE and its subsidiaries. Operational and strategic ties are
robust, and DTEE remains the primary driver of earnings and cash
flow to support parent-level dividends. DTEG also has operational
and strategic ties to DTE, but does not contribute as large a
portion of cash flow to its parent. Fitch has determined moderate
linkage exists between DTE, DTEE and DTEG, and would limit the
notching difference between the Long-Term IDRs of DTE and its
subsidiaries to one to two notches.
DERIVATION SUMMARY
The credit profile of DTE is weaker than its peers Dominion Energy,
Inc. (DEI; BBB+/Stable) and Sempra Energy (BBB+/Stable), which are
parent holding companies anchored by regulated utility operations
and midstream assets. All have significant parent-level debt. DTE's
consolidated operations are smaller than Dominion and Sempra. In
terms of cash flow from regulated utilities, DTE's regulated cash
flow of about 78% in 2019 is higher than Dominion's, whose
regulated cash flow was around 70% in 2019 (post-closing of the
announced gas transmission assets sale and cancellation of Atlantic
Coast Pipeline, Fitch expects approximately 85%-90% of DEI's EBITDA
to come from state-regulated utility businesses) and close to
Sempra's at around 80%. Utility cash flow is projected to decrease
to an average of 72% of total cash flow over the forecast period.
Fitch anticipates FFO leverage of 5.1x-5.2x in 2020 and 2021,
improving to 4.7x-4.8x in 2022 and 2023, which is similar to
Dominion with FFO leverage projected at around 5.0x and less
favorable to Sempra at mid-4.0x after 2020, when Cameron LNG, LLC
comes online.
KEY ASSUMPTIONS
-- Constructive regulatory environment in Michigan with 9.9% ROE
for DTEE and DTEG in line with historic results;
-- Capex program totaling $19 billion, with $15 billion at
utilities, from 2020-2024;
-- O&M reduction in 2020 to offset negative effects of economic
slowdown on sales;
-- Industrial and commercial sales declines in 2020 due to the
economic impact of the coronavirus, partially offset by increase in
residential sales; gradual recovery to normal levels in 2021 and
beyond;
-- A 1.5% decline in natural gas deliveries in 2020 and recovery
in 2021 to reflect a modest economic impact of the coronavirus on
gas utility operations;
-- Capital structure commensurate with regulatory structure;
-- Midstream EBITDA assumes revenues from existing MCVs and
demand charges plus a modest upside growth potential.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- While not anticipated at this time given the sizable capital
program and elevated leverage, sustained improvement in
FFO-adjusted leverage of 4.7x or lower through the forecast
period;
-- Decrease in business risk resulting in 80% or more earnings
coming from regulated utility business.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A significant deviation from the current business risk with
the regulated businesses comprising 60%-65% of consolidated cash
flow due to growth in the non-utility businesses;
-- An adverse change in Michigan's regulatory environment;
-- Sustained weakening in FFO-adjusted leverage of 5.3x or higher
through the forecast period.
LIQUIDITY AND DEBT STRUCTURE
DTE Energy had around $3.4 billion of available liquidity at June
30, 2020, consisting of cash and amounts available under revolving
credit facility. DTE's letters of credit and revolving credit
facilities expire in April 2024 and have a maximum
debt/capitalization covenant of 65%. The facilities are $1.7
billion at DTE, $500 million at DTEE and $300 million at DTEG. DTE
Energy, DTEE and DTEG were in compliance with consolidated
debt/capitalization of 60%, 55% and 47%, respectively, as defined
under the credit agreement, as of June 30, 2020.
Liquidity is adequate and has been increased by a $500 million
parent-funded term loan issuance in March and another $167 million
unsecured term loan in June, of which no amount has been drawn. In
addition, in April 2020, DTEE entered into a total of $400 million
of unsecured term loans, of which $200 million has been drawn as of
June 30, 2020. Also, in April 2020, DTEG entered into a $100
million unsecured term loan, fully drawn as of June 30, 2020.
Debt maturities are manageable, and Fitch expects DTE to have
continued access to the capital markets.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
EXIDE TECHNOLOGIES: Floats the Environmental Cleanup Deal With EPA
------------------------------------------------------------------
Law360 reports that bbankrupt battery maker Exide Holdings Inc.
filed a proposed settlement with the U.S. Environmental Protection
Agency in Delaware bankruptcy court Tuesday that would see credit
bidders put $10 million into an environmental cleanup trust to fund
remediation of the debtor's abandoned properties.
In court filings, Exide and the EPA said they have agreed to the
consent decree between the debtor, the EPA and environmental
regulatory agencies of 10 states, whereby creditors seeking to
acquire Exide's European entities will contribute $10 million to a
trust that will be allocated to 16 sites in the U.S. to address
cleanup obligations.
About Exide Technologies
Exide Technologies LLC was founded in 1888 and headquartered in
Milton, Georgia, Exide. It is a stored electrical energy solutions
company and a producer and recycler of lead-acid batteries. Across
the globe, Exide batteries power cars, boats, heavy duty vehicles,
golf carts, powersports, and lawn and garden applications. Its
network power solutions deliver energy to vast telecommunication
networks in need of uninterrupted power supply.
Exide Technologies first sought Chapter 11 protection (Bankr. Del.
Case No. 02-11125) on April 14, 2002, and exited bankruptcy two
years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq.,
at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang
Ziehl & Jones LLP, represented the Debtors in their successful
restructuring.
Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No.
13-11482) on June 10, 2013 and emerged from bankruptcy in 2015. In
the 2013 case, Exide tapped Skadden, Arps, Slate, Meagher & Flom
LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez &
Marsal as financial advisor; Sitrick and Company Inc. as public
relations consultant. The official creditors committee retained
Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as
co-counsel, and Zolfo Cooper, LLC served as its bankruptcy
consultants and financial advisors.
Exide Holdings, Inc., and its affiliates, including Exide
Technologies LLC, sought Chapter 11 protection (Bankr. D. Del. Lead
Case No. 20-11157) on May 19, 2020. Exide Holdings was estimated
to have $500 million to $1 billion in assets and $1 billion to $10
billion in liabilities.
In the newest Chapter 11 case, Weil, Gotshal & Manges LLP is
serving as legal counsel to Exide, Houlihan Lokey is serving as
investment banker, and Ankura 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://cases.primeclerk.com/Exide2020/
EXTRACTION OIL: Trustee Asks Court to Snub Ch.11 Voter Solicitation
-------------------------------------------------------------------
Law360 reports that the U.S. Trustee told the Delaware bankruptcy
court Wednesday, Sept. 23,2020 that it should reject Extraction Oil
& Gas Inc. 's statement to solicit votes on its Chapter 11 plan,
saying the disclosure provides inadequate information for creditors
to decide if they should support the plan.
In an objection filed with U. S. Bankruptcy Judge Christopher S.
Sontchi, the Office of the U.S. Trustee contends the disclosure
doesn't "provide adequate information" about the Chapter 11 plan to
creditors who will be asked to vote on it. Also, it doesn't provide
necessary information for non-voting creditors to decide whether to
oppose the plan, the trustee said.
About Extraction Oil & Gas
Denver-based Extraction Oil & Gas, Inc., is an independent energy
exploration and development company focused on exploring,
developing and producing crude oil, natural gas and NGLs primarily
in the Wattenberg Field in the Denver-Julesburg Basin of Colorado.
Visit http://www.extractionog.com/for more information.
Extraction Oil & Gas and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
20-11548) on June 14, 2020. At the time of the filing, the Debtors
disclosed $1 billion to $10 billion in both assets and liabilities.
Judge Christopher S. Sontchi oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP, Kirkland & Ellis
International, LLP and Whireford, Taylor & Preston, LLC as legal
counsel; Alvarez & Marsal North America, LLC as restructuring
advisor; and Moelis & Company and Petrie Partners Securities, LLC
as investment banker and financial advisor. Kurtzman Carson
Consultants, LLC is the claims and balloting agent and
administrative advisor and PricewaterhouseCoopers LLP (PwC) is
Debtors' independent audit services provider.
FLORIDA FIRST: Deadlines Extended Following Hurricane Sally
-----------------------------------------------------------
Judge Karen K. Specie on August 21, 2020, signed an Order granting
Florida First City Banks, Inc.'s motion for extension of exclusive
periods for an additional 60 days to September 11, 2020.
As a result of Hurricane Sally that made landfall several days ago,
the Court entered Administrative Orders on September 16, 21 and 23
extending deadlines indefinitely for cases in the Pensacola
Division of the Bankruptcy Court.
According to the Debtor's extension request, when the Debtor filed
the motion to extend, an agreement was formed with Beach Community
Bank for the sale of the Debtor's primary asset which consists of
100% of the shares of stock in First City Bank of Florida and
resulted in a Bid Procedures Order, and the Sale Hearing proceeded
on March 26, 2020.
But prior to the Sale Hearing, the Debtor was notified by Beach
Community Bank that they would be unable to proceed with the sale
and terminated the Agreement with the Debtor. After that, the
Debtor received communication from one of the parties who had
requested the Bid Procedure Package but who did not submit
qualifying information prior to the deadline. Now, the Debtor
continued discussions with the potentially interested buyer who is
an investment group and no purchase agreement has been executed by
the parties.
On the first extension of the exclusivity periods, the potential
buyer has executed an Indication of Interest, indicating that they
are working to put together a business plan and related projections
in preparation for a prefiling meeting with the FDIC, State of
Florida Department of Financial Regulation and the Federal Reserve
and have been waiting to receive a copy of the plan and projections
for its review and comment. The Debtor also anticipates working
with the investment group to request the regulators for a prefiling
meeting to discuss the regulatory aspects of a potential
acquisition and recapitalization.
If a Purchase Agreement is entered into with a new buyer, the
Debtor intends to amend the existing Plan of Reorganization and
Disclosure Statement to reflect the new sale terms and/or file a
new Sale Motion. The extension will give the Debtor and the
potential buyer time to proceed with the ongoing discussions
regarding a potential sale of the shares of stock in the Bank owned
by the Debtor.
The hearing for the disclosure statement of the Debtor was
scheduled on April 16, 2020, at 10:00 a.m. Central Time. That
hearing was later cancelled.
About Florida First City Banks
Florida First City Banks, Inc., a privately held company that
operates in the banking industry, sought Chapter 11 protection
(Bankr. S.D. Fla. Case No. 20-30037) on Jan. 15, 2020. In the
petition signed by Robert E. Bennett Jr., president, the Debtor
disclosed total assets of $5,448,525 and total debt of
$12,680,735.
The Debtor tapped Wilson, Harrell, Farrington, Ford, Wilson, Spain
& Parsons, P.A., and Stichter, Riedel, Blain & Postler, P.A. as its
legal counsel. Judge Karen K. Specie oversees the case.
FLOWER CITY: Case Summary & 19 Unsecured Creditors
--------------------------------------------------
Debtor: Flower City Monitor Services, Ltd.
25 Canterbury Road
Suite 203
Rochester, NY 14607
Business Description: Flower City Monitor Services, Ltd. --
https://flowercitymonitorservices.com --
is a provider of asbestos air monitoring,
inspections and project monitoring services.
Its past projects include small and large
projects including private residential to
commercial, industrial, and government
projects.
Chapter 11 Petition Date: September 22, 2020
Court: United States Bankruptcy Court
Western District of New York
Case No.: 20-20699
Judge: Hon. Warren, USBJ
Debtor's Counsel: Frederick J. Gawronski, Esq.
COLLIGAN LAW, LLP
12 Fountain Plaza
Suite 600
Buffalo, NY 14202-3613
Tel: 716-885-1150
Email: fgawronski@colliganlaw.com
Total Assets: $191,554
Total Liabilities: $1,565,555
The petition was signed by Lenora A. Paige, president
A copy of the petition containing, among other items, a list of the
Debtor's 19 unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/F6RYEMY/Flower_City_Monitor_Services_Ltd__nywbke-20-20699__0001.0.pdf?mcid=tGE4TAMA
FM COAL: Seeks Approval to Hire Waller Lansden as Legal Counsel
---------------------------------------------------------------
FM Coal, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Northern District of Alabama to hire
Waller Lansden Dortch & Davis, LLP as their legal counsel.
The firm will render the following legal services:
a. advise Debtors with respect to their powers and duties;
b. advise and consult on the conduct of Debtors' Chapter 11
cases;
c. attend meetings and negotiate with other parties in
interest;
d. take all necessary actions to protect Debtors' estates;
e. prepare pleadings;
f. represent Debtors in connection with financial affairs;
g. advise Debtors on any potential sale of their assets;
h. appear before the court to represent the interests of
Debtors' estates;
i. advise Debtors regarding tax matters;
j. take necessary actions to obtain approval of a disclosure
statement and confirmation of a Chapter 11 plan; and
k. perform all other necessary legal services for Debtors.
Waller Landen's hourly rates for its professionals are as follows:
Partner $420 - $875
Senior Counsel $540 - $755
Counsel $430 - $710
Senior Associate $345 - $445
Associate $320 - $370
Staff Attorney $230 - $415
Paralegal $210 - $305
The firm's attorneys and paralegal who are tapped to handle the
cases are as follows:
Jesse S. Vogtle, Jr. Partner $665
Eric T. Ray Partner $510
Paul Greenwood Partner $460
John Tishler Partner $815
Tyler N. Layne Partner $460
Evan Atkinson Associate $370
Hunter Thornton Associate $335
Brooke Freeman Paralegal $265
Waller Landen received from Debtors a sum of $200,000 as an advance
payment retainer.
Jesse Vogtle, Jr., Esq. disclosed in court filings that the firm is
a "disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
Mr. Vogtle also made the following disclosures in response to the
request for additional information set forth in Paragraph D.1 of
the U.S. Trustee Guidelines:
a. Waller Landen has not agreed to a variation of its standard
or customary billing arrangements for this engagement.
b. None of Waller Landen's professionals included in this
engagement have varied their rate based on the geographic location
of the cases.
c. Waller Landen was retained by Debtors pursuant to an
engagement letter dated as of March 11, 2020. The material terms of
the pre-bankruptcy engagement are the same as the terms proposed by
Debtors and the billing rates have not changed other than periodic
annual increases.
d. Debtors have approved or will be approving a prospective
budget and staffing plan for Waller Landen's engagement for the
post-petition period as appropriate. The budget may be amended as
necessary to reflect changed or unanticipated developments.
The firm can be reached through:
Jesse S. Vogtle, Jr., Esq.
Eric T. Ray, Esq.
Paul Greenwood, Esq.
Waller Lansden Dortch & Davis, LLP
1901 Sixth Avenue North, Suite 1400
Birmingham, AL 35203
Telephone: (205) 214-6380
Facsimile: (205) 214-8787
Email: Jesse.Vogtle@wallerlaw.com
Eric.Ray@wallerlaw.com
Paul.Greenwood@wallerlaw.com
- and -
John Tishler, Esq.
Tyler N. Layne, Esq.
Waller Lansden Dortch & Davis, LLP
511 Union Street, Suite 2700
Nashville, TN 37219
Telephone: (615) 244-6380
Facsimile: (615) 244-6804
Email: John.Tishler@wallerlaw.com
Tyler.Layne@wallerlaw.com
About FM Coal LLC
FM Coal, LLC and its affiliates are engaged in the business of
extracting, processing and marketing metallurgical coal and thermal
coal from surface mines. Their customers include steel and coke
producers, industrial customers and electric utilities.
On Sept. 1, 2020, FM Coal and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Lead Case
No. 20-02783). At the time of the filing, Debtors had estimated
assets of between $10 million and $50 million and liabilities of
between $50 million and $100 million.
Judge Tamara O. Mitchell oversees the cases.
Debtors have tapped Waller Lansden Dortch & Davis, LLP as their
bankruptcy counsel, Aurora Management Partners as financial
Advisor, and Donlin Recano & Company, Inc. as claims, solicitation
and balloting agent.
FTS INTERNATIONAL: Case Summary & 30 Largest Unsecured Creditors
----------------------------------------------------------------
Lead Debtor: FTS International, Inc.
777 Main Street
Suite 2900
Fort Worth, Texas 76102
Business Description: FTS International, Inc. and its
subsidiaries -- http://ftsi.com--
are providers of hydraulic fracturing
services. Utilizing an extensive fleet
of high-horsepower hydraulic fracturing
equipment designed for completions work
in areas requiring high levels of
pressure, flow rate, and sand intensity,
the Debtors provide customized hydraulic
fracturing solutions to exploration and
production companies to enhance recovery
rates from oil and gas wells drilled in
the most active basins in the United
States.
Chapter 11 Petition Date: September 22, 2020
Court: United States Bankruptcy Court
Southern District of Texas
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
FTS International, Inc. (Lead Debtor) 20-34622
FTS International Manufacturing, LLC 20-34623
FTS International Services, LLC 20-34524
Judge: Hon. David R. Jones
Debtors'
Legal Counsel: Brian Schartz, P.C.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
Brian Schartz, P.C.
609 Main Street
Houston, Texas 77002
Tel: (713) 836-3600
Fax: (713) 836-3601
Email: brian.schartz@kirkland.com
- and -
Joshua A. Sussberg, P.C.
Emily E. Geier, Esq.
Alexander Nicas, Esq.
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: jsussberg@kirkland.com
emily.geier@kirkland.com
alexander.nicas@kirkland.com
Debtors'
Co-Counsel: Katherine A. Preston, Esq.
WINSTON & STRAWN LLP
800 Capitol Street, Suite 2400
Houston, Texas 77002
Tel: (713) 651-2600
Fax: (713) 651-2700
Email: kpreston@winston.com
- and -
Daniel J. McGuire, Esq.
35 W Wacker Drive
Chicago, IL 60601
Tel: (312) 558-5600
Fax: (312) 558-5700
Email: dmcguire@winston.com
Debtors'
Financial
Advisor &
Investment
Banker: LAZARD FRERES & CO., LLC
Debtors'
Restructuring
Advisor: ALVAREZ AND MARSAL NORTH AMERICA, LLC
Debtors'
Claims,
Noticing,
Solicitation &
Administrative
Agent: EPIQ CORPORATE RESTRUCTURING LLC
https://dm.epiq11.com/case/fal/dockets
Total Assets as of June 30, 2020: $517,200,000
Total Debts as of June 30, 2020: $535,300,000
The petitions were signed by Lance Turner, chief financial
officer.
A copy of FTS International, Inc.'s petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ECUERBA/FTS_International_Inc__txsbke-20-34622__0001.0.pdf?mcid=tGE4TAMA
ConsolidatedList of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. U.S. Bank N.A. 2022 Senior Notes $215,282,531
Global Corporate Trust Services Deficiency Claim
1349 W. Peachtree Street, NW
Suite 1050
Atlanta, GA 30309
Attn: Muriel Shaw
Title: Assistant Vice President
Tel: 404-975-4884
Fax: 404-898-8844
2. Wilmington Savings Fund 2021 Term Loan $38,416,171
Society, FSB Deficiency Claim
500 Delaware Avenue
Wilmington, DE 19801
Attn: Patrick Healy
Title Senior Vice President
Tel: 888-973-7226
Email: adminagencymo@wsfsbank.com or
phealy@wsfsbank.com
3. Mississippi Sand Contract $10,000,000
24275 Katy Freeway, Suite 600 Liability
Katy, TX 77494
Attn: Don Merril
Title: Chief Financial Officer
Tel: 800-243-7500
Email: merril@ussilica.com
4. Target Logistics Management Trade Payable $505,527
2170 Buckthorne PL, Ste 440
The Woodlands, TX 77380-1794
Attn: Erick Kalamaras
Title: Chief Financial Officer
Tel: 281-362-5397
Fax: 281-362-5435
Email: ekalamaras@targethospitality.com
5. A&W Energy LLC Trade Payable $489,189
1301 Forum Way S
Fort Worth, TX 76140
Attn: Ben Allen
Title: Chief Executive Officer
Tel: 817-704-7346
Email: ben.allen@aw.energy
6. Steagall Oil Co of Texas Trade Payable $393,280
3000 N Sylvania Ave
Fort Worth, TX 76111
Attn: David B. Steagall
Title: Vice President
Tel: 817-831-6722
Fax: 817-831-6975
Email: davidsteagall@steagalloil.com
7. TruckPro Inc Trade Payable $342,465
1900 Charles Bryan, Suite 100
Cordova, TN 38016
Attn: Steve Martin
Title: Chief Financial Officer
Tel: 901-252-4200
Email: steve.martin@truckpro.com
8. Energy Services Group, Inc. Trade Payable $308,841
141 Longwater Dr., Ste 113
Norwell, MA 02061
Attn: Matthew Hirst
Title: Chief Executive Officer
Tel: 781-347-9000
Fax: 781-871-0792
Email: matthew.hirst@utilitigroup.com
9. UTE Indian Tribe Trade Payable $289,756
P.O. Box 190
Fort Duchesne, UT 84026
Attn: Bruce Pargeets
Title: Assistant Director
Tel: 435-828-7032
Email: bpargeets@utetribe.com
10. Kemper Valve & Fittings Corp Trade Payable $193,852
3001 Darrell Rd
Island Lake, IL 60042
Attn: Brett Mahlman
Title: Controller
Tel: 847-526-2166
Fax: 847-526-2241
Email: brett.mahlman@kempervalve.com
11. Energy Products Trade Payable $173,209
1551 E Lincoln Ave Ste 101
Madison Heights, MI 48071-4159
Attn: Kurt Smith
Title: Chief Executive Officer
Tel: 248-545-7700
Fax: 248-414-1863
Email: khsmith@energyprod.com
12. Stag Industrial Trade Payable $149,068
One Federal St., 23rd FL
Boston, MA 02110
Attn: Benjamin Butcher
Title: Chief Executive Officer
Tel: 617-574-4777
Email: bbutcher@stagindustrial.com
13. MidCentral Equipment Trade Payable $147,773
50106 State Hwy 210
Henning, MN 56551
Attn: Nathan Thalmann
Title: President/Owner
Tel: 218-583-2931
Fax: 218-583-2932
Email: mcequip@arvig.net
14. Penn Machine Trade Payable $133,650
201 Bethel Ave
Aston, PA 19014
Attn: Joe Pro
Title: President
Fax: 610-497-3325
Email: joep@pennusa.com
15. SPM Flow Control Inc. Trade Payable $102,101
7901 Wyatt Dr.
Fort Worth, TX 76108-2530
Attn: Graham Vanhegan
Title: Chief Legal Officer
Tel: 817-246-2461
Email: graham.vanhegan@weir.co.uk
16. M&D Distributors Trade Payable $100,460
7902 FM 1960 Bypass W
Humble, TX 77338
Attn: Drew Roberts
Title: Chief Executive Officer
Tel: 713-928-5686
Tel: 713-928-8154
Email: drew.roberts@fwcaz.com
17. Gardner Denver Petroleum Pumps Trade Payable $95,268
785 Greens Parkway, Suite 225
Houston, TX 77067
Attn: Edward Bayhi
Title: VP and General Manager
Tel: 814-742-9600
Email: edward.bayhi@gardnerdenver.com
18. Certified Laboratories Trade Payable $94,086
65 Marcus Dr
Melville, NY 11747
Attn: Steven Mitchell
Title: Chief Executive Officer
Tel: 516-576-1400
Fax: 631-396-0983
Email: Smitchell@800certlab.com
19. Texas Air Hydraulic Trade Payable $91,354
251 S Eastman Rd
Longview, TX 75602
Attn: Johnny Wisdom
Title: Owner
Tel: 903-757-8211
Email: jww@txah.com
20. FMCTI Corporation Trade Payable $78,287
2929 Walnut St
Philadelhia, PA 19104
Attn: Andrew Sandifer
Title: Chief Financial Officer
Tel: 215-299-6000
Fax: 215-299-5998
Email: andrewsandifer@fmc.com
21. Amerus Oilfield Solutions Trade Payable $67,761
305 East 57th St
Odessa, TX 79762
Attn: Jerry Bates
Title: President & Chief Executive Officer
Tel: 432-561-5521
Email: jbates@amerusoilfieldsolutions.com
22. Frac Pump Parts Trade Payable $65,768
1222 S Cedar Ridge Dr
Duncanville, TX 75137
Attn: Donald O'Connor
Title: Owner
Tel: 775-557-8677
Email: fracpumpparts@gmail.com
23. WD Pumpco, LLC Trade Payable $64,866
620 Marietta Street
Zanesville, OH 43701
Attn: Andy Goss
Title: Chief Executive Officer
Tel: 740-454-2576
Email: andygoss@gosssupply.com
24. Restream Solutions LLC Trade Payable $63,889
6011 W Courtyard Dr #300A
Austin, TX 78730
Attn: Walker Ryan
Title: Director of Finance
Tel: 512-400-4191
Email: wryan@restreamsolutions.com
25. Titanliner LLC Trade Payable $59,128
4100 International Plaza
Suite #538
Fort Worth, TX 76109
Attn: Key Simon
Title: Vice President of Finance
Tel: 432-210-6819
Fax: 817-369-5929
Email: Key.simon@titanliner.com
26. Flow Valve LLC Trade Payable $58,957
600 US-77 N
Marietta, OK 73448
Attn: Jake Foster
Title: Chief Operating Officer
Tel: 580-276-9400
Email: jake.foster@kerrlab.com
27. Paramount Rental Services LLC Trade Payable $56,718
900 8th Street Suite 1002
Wichita Falls, TX 76301
Attn: Curtis Wilson
Title: Managing Partner
Tel: 940-264-8379
Email: curtis@paramountrentalservices.net
28. Fleetpride Trade Payable $52,623
600 E. Las Colinas Blvd., Suite 400
Irving, TX 75039
Attn: Kenny Wagers
Title: Chief Financial Officer
Tel: 469-249-7500
Email: kenny.wagers@fleetpride.com
29. Minepro Inc. Trade Payable $50,832
10201 Wayzata Blvd
Minnetonka, MN 55305
Attn: David Penn
Title: Chief Financial Officer
Tel: 763-746-0410
Email: davidlpenn@comcast.net
30. Covia Holdings Corporation Trade Payable & Undetermined
3 Summit Park Dr., Ste 700 Contract
Independence, OH 44131 Liability
Attn: Andrew Eich
Title: Chief Financial Officer
Tel: 440-214-3284
Email: andrew.eich@coviacorp.com
GARRETT MOTION: Court Questions Its Intercompany Overseas Payments
------------------------------------------------------------------
Law360 reports that a New York bankruptcy judge on Wednesday, Sept.
23, 2020, approved auto parts maker Garrett Motor's request to make
millions of dollars in what it said were vital internal transfers
and overseas payments, but not without questioning the size and
scope of the requests.
At a telephone hearing, U.S. Bankruptcy Michael Wiles reserved the
right to go back and review the intercompany payments authorized
under what he said was a too-vague cash management motion and got
Garrett to trim back what he said was an excessive foreign vendors
payments request.
About Garrett Motion
Based in Switzerland, Garrett Motion Inc. (NYSE: GTX) designs,
manufactures and sells highly engineered turbocharger and
electric-boosting technologies for light and commercial vehicle
original equipment manufacturers ("OEMs") and the global vehicle
and independent aftermarket.
Garrett Motion and its affiliates sought Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 20-12212) on Sept. 20, 2020.
Garrett disclosed $2,066,000,000 in assets and $4,169,000,000 in
liabilities as of June 30, 2020.
The Debtors tapped SULLIVAN & CROMWELL LLP as counsel; QUINN
EMANUEL URQUHART & SULLIVAN LLP as co-counsel; PERELLA WEINBERG
PARTNERS as investment banker; MORGAN STANLEY & CO. LLC as
investment banker; and ALIXPARTNERS LLP as restructuring advisor.
KURTZMAN CARSON CONSULTANTS LLC is the claims agent.
GECKO PARKS: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Gecko Parks, LLC as of Sept. 21, 2020,
according to the court docket.
About Gecko Parks
Gecko Parks, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 20-18973) on Aug. 20,
2020. At the time of the filing, the Debtor had estimated assets
of less than $50,000 and liabilities of less than $50,000. Judge
Peter D. Russin oversees the case. Van Horn Law Group, P.A., is
the Debtor's legal counsel.
GUAM: Moody's Rates Series 2020A COPs 'Ba2', Outlook Negative
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to the
Government of Guam's Series 2020A Certificates of Participation
(John F. Kennedy High School Project), to be offered in the
estimated par amount of $64 million. The outlook is negative.
RATINGS RATIONALE
The Ba2 rating on the 2020A COPs, one notch below Guam's general
obligation rating of Ba1, reflects the moderate legal structure
inherent in an annually renewable lease-backed security, and the
essentiality of the leased asset. The rating also incorporates a
satisfactory governance structure demonstrated by the government's
track record of making appropriation-backed debt payments under
similar financing agreements, and management quality and
experience.
Guam's Ba1 general obligation rating reflects the territory's
above-average exposure to the economic effects caused by the
coronavirus pandemic due to the importance of international tourism
to the territory's economy. Moody's expects that the impact of the
coronavirus pandemic on the government's finances and liquidity
will be manageable in the near term largely as a result of
substantial assistance received from the federal government and the
continuation of significant military construction activity in the
territory. Other factors incorporated in the rating include debt
levels that are notably above US state medians, although they are
below those of other US territories; generally positive economic
and financial trends in the years prior to the current crisis; and
a favorable pension funding situation. The rating also reflects
Guam's above-average environmental exposures, especially typhoon
risk and sea level rise.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.
RATING OUTLOOK
The negative outlook reflects the risks that the recovery of Guam's
important tourism sector will be later and slower than currently
expected and that additional federal assistance may not be
provided, placing pressure on the government's finances and
liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE
- A multi-year improvement in general fund liquidity and
financial performance, including the restoration of positive fund
balances without the use of deficit financings.
- Significant expansion and diversification of the economy.
FACTORS THAT COULD LEAD TO A DOWNGRADE
- A slow recovery of the tourism industry and tax revenues, not
offset by increased federal assistance, leading to a weakening of
governmental liquidity and financial position.
- A return to deficit financings.
LEGAL SECURITY
The 2020A COPs are secured by lease payments made by the government
for use of the leased asset, John F. Kennedy High School. Lease
payments are subject to appropriation by Guam's legislature.
USE OF PROCEEDS
Proceeds of the 2020A COPs will be used to refund outstanding 2010A
COPs for debt service savings and to provide approximately $9
million in new money to fund solar and energy efficiency projects
at the high school.
PROFILE
The Territory of Guam is located in the western Pacific Ocean
approximately 3,800 miles west-southwest of Honolulu, 1,550 miles
south-southeast of Tokyo, and 1,600 miles east of Manila. The land
area is 212 square miles, approximately the same size as the
District of Columbia, and the population is approximately 162,900.
The gross domestic product was $5.9 billion in 2018 and GDP per
capita was $36,341, approximately 58% of the US level.
METHODOLOGY
The principal methodology used in this rating was Lease,
Appropriation, Moral Obligation and Comparable Debt of US State and
Local Governments published in July 2018.
HOLBROOK SEARIGHT: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Holbrook Searight LLC.
About Holbrook Searight
Holbrook/Searight LLC is a privately held company that was
incorporated on March 22, 2002 as a profit limited liability
company registered at 7125 224th St. SW, Edmonds, Wash.
Seabrook Dental Laboratory, LLC is an independent, full-service
dental laboratory in Edmonds, Wash. It offers the newest
technology and dental prosthetic solutions to dentist clients.
Visit https://www.seabrookdentallab.com for more information.
Seabrook Dental Laboratory and Holbrook/Searight filed for Chapter
11 bankruptcy protection (Bankr. W.D. Wash. Lead Case No. 18-13499)
on Sept. 6, 2018. Timothy R. Holbrook, managing member, signed the
petitions. At the time of the filing, each Debtor disclosed assets
of between $1 million and $10 million and liabilities of the same
range.
Judge Christopher M. Alston oversees the cases.
Debtors have tapped Neeleman Law Group, P.C. as their bankruptcy
counsel and Alisa Na as their accountant.
INNOVATIVE DESIGNS: Incurs $54K Net Loss in Third Quarter
---------------------------------------------------------
Innovative Designs, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $54,005 on $90,814 of net revenues for the three months ended
July 31, 2020, compared to a net loss of $154,221 on $34,149 of net
revenues for the three months ended July 31, 2019.
For the nine months ended July 31, 2020, the Company reported a net
loss of $185,289 on $174,048 of net revenues compared to a net loss
of $514,171 on $188,736 of net revenues for the same period in
2019.
As of July 31, 2020, the Company had $1.56 million in total assets,
$753,155 in total liabilities, and $811,956 in total stockholders'
equity.
The Company had a negative cash flow from operations of $146,690
for the nine month period ended July 31, 2020. In addition, the
Company has an accumulated deficit of $9,753,995. Management's
plans include cash receipts through sales, sales of Company stock,
and borrowings from private parties. The Company said these
factors raise substantial doubt regarding its ability to continue
as a going concern for a period of one year from the issuance of
these financial statements.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1190370/000173112220000966/e2115_10-q.htm
About Innovative Designs
Headquartered in Pittsburgh, Pennsylvania, Innovative Designs, Inc.
operates in two separate business segments: cold weather clothing
and a house wrap for the building construction industry. Both of
its segment lines use products made from INSULTEX, which is a
low-density foamed polyethylene with buoyancy, scent block, and
thermal resistant properties. The Company has a license agreement
directly with the owner of the INSULTEX Technology.
Innovative Designs recorded a net loss of $841,979 for the year
ended Oct. 31, 2019, compared to a net loss of $582,882 for the
year ended Oct. 31, 2018. As of April 30, 2020, the Company had
$1.57 million in total assets, $730,392 in total liabilities, and
$838,961 in total stockholders' equity.
Louis Plung & Company, LLP, in Pittsburgh, Pennsylvania, the
Company's auditor since 2006, issued a "going concern"
qualification in its report dated March 16, 2020 citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern. The auditor further stated that,
"In early 2020, an outbreak of a novel strain of coronavirus was
identified and infections have been found in a number of countries
around the world, including the United States. The coronavirus and
its impact on trade including customer demand, travel, employee
productivity, supply chain, and other economic activities has had,
and may continue to have, a significant effect on financial markets
and business activity. The extent of the impact of the coronavirus
on our operational and financial performance is currently uncertain
and cannot be predicted."
JAGUAR DISTRIBUTION: Committee Taps SulmeyerKupetz as Legal Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors of Jaguar
Distribution Corp. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire SulmeyerKupetz, A
Professional Corporation, as its bankruptcy counsel.
The firm's services are as follows:
a. advise the committee with respect to its powers and duties
in Debtor's Chapter 11 case;
b. assist in the committee's investigation of Debtor's acts,
financial condition, the operation of the Debtor's business and
other relevant matters;
c. advise the committee to properly comply with all provisions
of the Bankruptcy Code, the Bankruptcy Rules, the Local Bankruptcy
Rules, and the requirements of the U.S. trustee; and
d. perform other necessary legal services.
The firm's professionals will be paid at hourly rates as follows:
Attorneys
Howard M. Ehrenberg $700
Asa S. Hami $595
Mark S. Horoupian $625
Matt P. Kelly $525
David S. Kupetz $700
Daniel A. Lev $650
Elissa D. Miller $650
Jeffrey M. Pomerance $550
Victor A. Sahn $725
Alan G. Tippie $725
Steven F. Werth $595
Claire K. Wu $475
Paralegals
Cheryl A. Blair $250
Vanessa Tagre $225
Trustee Administrators
Lupe V. Cortez $175
Victor Sahn, Esq., a member of SulmeyerKupetz, 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:
Victor A. Sahn, Esq.
Elissa D. Miller, Esq.
Claire K. Wu, Esq.
SulmeyerKupetz, A Professional Corporation
333 South Grand Ave, Suite 3400
Los Angeles, CA 90071
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
Email: vsahn@sulmeyerlaw.com
emiller@sulmeyerlaw.com
ckwu@sulmeyerlaw.com
About Jaguar Distribution Corp.
Established in 1982, Jaguar Distribution Corp. is a distributor of
independent films to the worldwide in-flight marketplace. Visit
http://www.jaguardc.comfor more information.
Jaguar Distribution sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-11358) on July 31,
2020. James Wong, chief restructuring officer, signed the
petition.
At the time of the filing, Debtor disclosed total assets of
$1,768,195 and total liabilities of $9,018,419.
Judge Martin R. Barash oversees the case.
Debtor is represented by Danning, Gill, Israel & Krasnoff, LLP.
On Aug. 21, 2020, the Office of the U.S. Trustee appointed a
committee of unsecured creditors. The committee is represented by
SulmeyerKupetz, A Professional Corporation.
JEFFERIES FINANCE: Fitch Gives BB(EXP) to $350MM Secured Term Loan
------------------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'BB(EXP)' to the
proposed $350 million senior secured term loan issuance by
Jefferies Finance LLC (JFIN) and its debt co-issuing subsidiary,
JFIN Co-Issuer Corporation. Fitch does not expect the issuance to
have an impact on JFIN's leverage as the company intends to use the
proceeds along with balance sheet cash to repay $369.1 million of
7.250% senior unsecured notes due August 2024.
KEY RATING DRIVERS
SENIOR DEBT
The expected rating on the new senior secured term loan is
equalized with the rating assigned to JFIN's existing senior
secured term loan and senior secured notes, as the new term loan
will rank equally in the capital structure. The secured debt rating
is equalized with JFIN's Long-Term Issuer Default Rating (IDR),
reflecting Fitch's expectation for average recovery prospects under
a stressed scenario.
As part of the proposed transaction, JFIN also intends to upsize
the capacity under its senior secured priority revolving credit
facility by $20 million. Fitch rates JFIN's senior secured priority
revolving credit facility 'BB+', which is one notch above the
Long-Term IDR, reflecting Fitch's expectation for good recovery
prospects given strong asset coverage and the relatively low
portion of first-out debt in JFIN's funding profile.
JFIN uses term collateralized loan obligations (CLOs), revolver
CLOs and warehouse facilities to finance the funded loan portfolio
(portfolio funding debt), while the senior secured term loan and
senior notes issuances (collectively, non-funding debt) and
short-term fronting lines (funding debt) have been used to fund the
underwriting business. The firm also has a corporate revolver
(funding debt) to be used for general corporate purposes. At May
31, 2020 (fiscal 2Q20), unsecured debt represented 6% of JFIN's
total debt outstanding and 24.5% of non-funding debt. Following the
redemption of the 2024 notes, which is expected to occur on Oct. 1,
2020, JFIN will have a fully secured funding profile.
Fitch believes an unsecured funding component enhances funding
flexibility, particularly in times of stress and, therefore, views
the proposed redemption of the unsecured notes unfavorably. Still,
Fitch recognizes the benefits to fixed charge coverage resulting
from the reduction in interest expense and views JFIN's funding
profile as relatively diverse for its rating. Fitch believes JFIN's
unsecured debt issuance will be opportunistic over time as CLOs
remain a cost-effective way to fund the loan portfolio. In addition
to the aforementioned debt funding sources, JFIN had $195.2 million
of undrawn equity commitments from Jefferies Group LLC (Jefferies)
and Massachusetts Mutual Life Insurance Company (MassMutual) at
fiscal 2Q20. During fiscal 2Q20, JFIN added $1.2 billion of
short-term credit facilities with $1 billion dedicated to
underwriting commitments and $200 million for revolver draws. While
these facilities have since been terminated, Fitch viewed the
company's ability to access additional liquidity sources amid the
challenging market backdrop favorably.
JFIN's ratings remain supported by the benefits of the firm's
relationship with Jefferies (BBB/Stable), which provides the firm
with access to underwriting deal flow and the resources of the
broader platform, JFIN's strong and experienced management team and
supportive ownership from Jefferies and MassMutual (AA/Stable).
Both Jefferies and MassMutual have provided JFIN with debt funding
and incremental equity investments over time to support business
expansion. JFIN's ratings also reflect its focus on senior lending
relationships in the funded portfolio, absence of material
portfolio concentrations, solid asset quality performance
historically, and sufficient liquidity.
Rating constraints include higher than peer leverage, expectations
for a fully secured funding profile following the redemption of the
2024 notes, potential liquidity and leverage impacts of meaningful
draws on revolver commitments, and sensitivity of deal flow and
syndication capabilities to market conditions. The ratings also
contemplate the aggressive underwriting conditions in the broadly
syndicated market in recent years, including higher underlying
leverage, meaningful EBITDA adjustments, and, in many cases, the
absence of financial covenants. Fitch believes a sustained slowdown
in the economy resulting from the coronavirus pandemic is likely to
translate to asset quality issues more quickly, given the limited
embedded financial cushion in most portfolio credits and weaker
lender flexibility in credit documentation.
The Negative Rating Outlook for JFIN's Long-Term IDR reflects the
recent earnings pressure resulting from lower transaction volume
following the onset of the coronavirus pandemic and elevated
leverage at fiscal 2Q20. While Fitch believes that syndication
trends and transaction volume have improved in recent weeks, which
could translate into better earnings for JFIN during the second
half of fiscal 2020, increased loan loss provisions, write-downs of
investments and/or realized losses could continue to negatively
affect the firm's leverage.
SUBSIDIARY AND AFFILIATED COMPANY
The Long-Term IDR and debt ratings of JFIN Co-Issuer Corporation
are equalized with those of its parent, JFIN. JFIN Co-Issuer
Corporation is essentially a shell finance subsidiary, with no
material operations and is a co-issuer on the corporate revolver,
existing secured term loan, secured notes and unsecured notes. JFIN
Co-Issuer Corporation will also be a co-issuer on the new senior
secured term loan.
RATING SENSITIVITIES
SENIOR DEBT
The expected secured debt rating is sensitive to changes in JFIN's
Long-Term IDR and to the recovery prospects of the secured debt.
The secured debt rating is expected to move in tandem with JFIN's
Long-Term IDR.
Factors that could, individually or collectively, lead to positive
rating action/upgrade of the Long-Term IDR:
A revision of the Outlook to Stable could occur if JFIN maintains
leverage around or below 4.5x, is successful in syndicating
commitments over the near to medium term without a material adverse
impact on earnings, maintains sufficient liquidity and demonstrates
relatively stable credit performance of the funded loan portfolio,
which would be evaluated in the context of realized losses and
underlying portfolio metrics.
Fitch believes the likelihood of a ratings upgrade over the medium
term is limited given the potential for weaker credit metrics and
the challenging economic backdrop from the coronavirus pandemic as
well as the expectation for a fully secured funding profile
following the redemption of the 2024 notes. Longer-term, positive
rating momentum could be driven by enhanced funding diversity,
including a material increase in the proportion of unsecured
funding, a decline in leverage approaching 3.0x, a continued
improvement in the firm's liquidity profile, particularly as it
relates to undrawn revolver commitments, as well as evidence of
strong asset quality performance of the funded loan portfolio,
increased revenue diversity, and improved consistency of operating
performance over time.
Factors that could, individually or collectively, lead to negative
rating action/downgrade of the Long-Term IDR:
An increase in total debt to tangible equity above 5.0x for
multiple quarters, non-funding debt to equity approaching or
exceeding the covenanted level, a material weakening in liquidity,
meaningful deterioration in asset quality, an extended inability to
syndicate transactions, which results in material operating losses
and/or weakens the firm's reputation and market position, or a
change in the firm's exclusive relationship with Jefferies could
lead to a rating downgrade.
SUBSIDIARY AND AFFILIATED COMPANY
JFIN Co-Issuer Corporation's ratings are expected to move in tandem
with JFIN's ratings.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
JEFFERIES FINANCE: Moody's Cuts LT Senior Secured Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service affirmed Jefferies Finance LLC's Ba3
corporate family rating and Ba1 long-term senior secured priority
revolving credit facility rating. Moody's has also downgraded
JFIN's long-term senior secured ratings to Ba3 from Ba2. The
outlook remains negative.
While the affirmation of the Ba3 corporate family and Ba1 long-term
senior secured priority revolving credit facility ratings resulted
from Moody's unchanged view of the company's standalone assessment,
the downgrade of the long-term senior secured ratings to Ba3 from
Ba2 reflects lower protection to creditors from a greater amount of
senior secured debt.
JFIN's existing B2-rated senior unsecured notes maturing 2024 will
be redeemed with the proceeds of a new secured term loan issuance
and their ratings will be subsequently withdrawn.
Downgrades:
Issuer: Jefferies Finance LLC
Senior Secured Term Loan, Downgraded to Ba3 from Ba2
Senior Secured Regular Bond/Debenture, Downgraded to Ba3 from Ba2
Affirmations:
Issuer: Jefferies Finance LLC
LT Corporate Family Rating, Affirmed Ba3
Senior Secured Priority Revolving Credit Facility, Affirmed Ba1
Outlook Actions:
Issuer: Jefferies Finance LLC
Outlook, Remains Negative
RATINGS RATIONALE
The affirmation of Ba3 corporate family and Ba1 long-term senior
secured priority revolving credit facility ratings reflects the
company's unchanged ba3 standalone assessment, supported by JFIN's
solid franchise in the US institutional loan market and adequate
liquidity profile, which is well-positioned to meet outstanding
underwriting commitments and commitments under revolving credit
agreements to borrowers.
The downgrade of the long-term senior secured ratings to Ba3 from
Ba2 follows the announcement that JFIN will refinance their
outstanding $369.1 million senior unsecured notes maturing 2024
with an issuance of a $350 million 7-year senior secured term loan.
While the transaction is leverage neutral, refinancing of the
existing senior unsecured notes with secured debt materially
reduces protection for its senior secured creditors. The new
issuance eliminates the remaining unsecured debt in JFIN's capital
structure. The affirmation of the Ba1 senior secured priority
revolving credit facility reflects its priority ranking within the
capital structure and the substantial amount of secured debt
subordinated to this facility based on Moody's Loss Given Default
for Speculative-Grade Companies (LGD) methodology and model.
The negative outlook reflects the continuing economic dislocation
related to the coronavirus pandemic, which drove a $99 million net
loss during the three months ending 31 May 2020, prompting the
company to recognize coronavirus-related reserves and impairments
of around $143 million. Moody's expects that the operating
environment for JFIN will remain challenging over the next 12-18
months, amid the uncertain economic outlook, will likely continue
to pressure earnings. Nevertheless, JFIN has so far navigated these
challenges well, syndicating nearly all pre-coronavirus
underwriting commitments and meeting all drawings on existing
revolving commitments to borrowers. Further, the company has
maintained solid capitalization, with tangible common equity
representing 15.7% of tangible managed assets as at 31 May 2020,
which provides protection to creditors in the event of unexpected
losses.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook and JFIN's structural exposure to the
leverage finance markets, rating upgrades are unlikely over the
next 12-18 months. However, consistently strong profitability and
evidence of more granular underwriting commitments over the cycle
could lead to upward pressure on the ratings.
The ratings could be downgraded if JFIN's liquidity position
significantly deteriorates. A rating downgrade could also be be
considered if JFIN is unable to return to profitability in the
fiscal year 2021.
Changes in priority and thickness of capital structure tranches may
lead to changes of instrument ratings.
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
JEMA GROUP: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Jema Group Holdings, LLC
18444 N 25th Ave, #420
Phoenix, AZ 85023
Chapter 11 Petition Date: September 22, 2020
Court: United States Bankruptcy Court
District of Arizona
Case No.: 20-10703
Debtor's Counsel: Amy Wilkins, Esq.
THE GAVEL BANKRUPTCY LAW FIRM
3300 N Central Ave
Suite 2600
Phoenix, AZ 85012
Tel: 602-502-2622
E-mail: glen@gavelbankruptcy.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jean E. Gonzvar, trustee, JEMA Group
Holdings Trust, sole member.
The Debtor listed RLS Capital, Inc. as its sole unsecured creditor
holding a claim of $420,000.
A copy of the petition is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/M2DFHNI/JEMA_GROUP_HOLDINGS_LLC__azbke-20-10703__0001.0.pdf?mcid=tGE4TAMA
KEIV HOSPITALITY: Seeks to Hire Okin Adams as Legal Counsel
-----------------------------------------------------------
Keiv Hospitality, LLC and Keivans Hospitality, Inc. seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to hire Okin Adams, LLP as their legal counsel.
The firm will render the following services in connection with
Debtors' Chapter 11 cases:
a) advise Debtors with respect to their rights, duties and
powers;
b) advise Debtors in their consultations relative to the
administration of the cases;
c) assist Debtors in analyzing the claims of creditors and in
negotiating with such creditors;
d) represent Debtors at hearings and proceedings;
e) review and analyze all applications, orders, statements of
operations and schedules filed with the court and advise Debtors as
to their propriety;
g) assist Debtors in preparing pleadings and applications;
and
h) perform other necessary legal services.
The firm's primary attorney who will represent Debtors in their
cases is Timothy Wentworth, Esq., who will be paid at $395 per
hour.
Okin Adams will charge $140 per hour for the work of legal
assistants. The firm received an initial retainer amounting to
$20,000 from Debtors.
Timothy Wentworth, Esq., 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:
Timothy L. Wentworth, Esq.
Okin Adams LLP
1113 Vine St., Suite 240
Houston, TX 77002
Telephone: (713) 228-4100
Facsimile: (888) 865-2118
Email: twentworth@okinadams.com
About Keiv Hospitality LLC
Based in Katy, Texas, Keiv Hospitality, LLC is primarily engaged in
providing short-term lodging in facilities known as hotels, motor
hotels, resort hotels, and motels. Keivans Hospitality, Inc.
operates in the traveler accommodation industry.
Keiv Hospitality and Keivans Hospitality sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
20-34408) on Sept. 1, 2020. Ben Mousavi, owner, signed the
petition.
At the time of the filing, Keiv Hospitality had estimated assets of
between $1 million and $10 million and liabilities of the same
range while Keivans Hospitality had estimated assets of between $10
million and $50 million and liabilities of between $1 million and
$10 million.
Judge Jeffrey P. Norman oversees the cases.
Okin Adams LLP is Debtors' legal counsel.
LJF INC: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of LJF, Inc.
About LJF Inc.
LJF, Inc. sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. W.D. Pa. Case No. 20-70248) on May 15, 2020. At the time
of the filing, Debtor had estimated assets of between $500,001 and
$1 million and liabilities of between $1 million and $10 million.
Judge Jeffery A. Deller oversees the case. David K. Rudov, Esq.,
serves as the Debtor's legal counsel.
MARTIN DEVELOPMENT: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Martin Development, LLC
11 Marble Ridge Road
North Andover, MA 01845
Chapter 11 Petition Date: September 23, 2020
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 20-40935
Judge: Hon. Elizabeth D. Katz
Debtor's Counsel: Marques C. Lipton, Esq.
PARKER & LIPTON
10 Converse Place, Suite 201
Winchester, MA 01890
Tel: (781) 729-0005
Email: mlipton@parkerlipton.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David M. Martin, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the petition is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/OUMOZEQ/Martin_Development_LLC__mabke-20-40935__0001.0.pdf?mcid=tGE4TAMA
MCCLATCHY CO: Court Ok Bankruptcy Plan Despite Govt. Objections
---------------------------------------------------------------
Alex Wolfe of Bloomberg Law reports that a New York bankruptcy
judge indicated he'll approve McClatchy Co.'s bankruptcy plan,
finalizing the newspaper publisher's restructuring and sale to
hedge fund lender Chatham Asset Management.
Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern
District of New York overruled a government objection to
McClatchy's Chapter 11 plan during a telephonic hearing Wednesday,
September 23, 2020. He'll confirm the creditor repayment scheme
after reviewing a final version, he said.
The plan stems from McClatchy's sale to Chatham for $49 million in
cash and the investment firm's forgiveness of $263 million in
secured debt claims.
About McClatchy Co.
The McClatchy Co. (OTC-MNIQQ) -- https://www.mcclatchy.com/ --
operates 30 media companies in 14 states, providing each of its
communities local journalism in the public interest and advertising
services in a wide array of digital and print formats.
McClatchypublishes iconic local brands including the Miami Herald,
The Kansas City Star, The Sacramento Bee, The Charlotte Observer,
The (Raleigh) News & Observer, and the Fort Worth Star-Telegram.
McClatchy is headquartered in Sacramento, Calif., and listed on the
New York Stock Exchange American under the symbol MNI.
On Feb. 13, 2020, The McClatchy Company and 53 affiliates sought
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-10418) with
a Plan of Reorganization that will cut $700 million of funded debt
in half.
McClatchy was estimated to have $500 million to $1 billion in
assets and debt of at least $1 billion as of the bankruptcy
filing.
The cases are pending before the Honorable Michael E. Wiles.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as
general bankruptcy counsel; Togut, Segal & Segal LLP as
co-bankruptcy counsel with Skadden; Groom Law Group as special
counsel; FTI Consulting, Inc. as financial advisor; and Evercore
Inc. as investment banker. Kurtzman Carson Consultants LLC is the
claims agent.
MOUNTAIN PROVINCE: Diamond Sale Proceeds Hit US$8.9 Million
-----------------------------------------------------------
Mountain Province Diamonds Inc. reports the preliminary results of
its latest diamond sale in Antwerp, Belgium, which closed on Sept.
19, 2020. The latest sale represents the Company's first
traditional commercial sale since February and the start of the
COVID-19 Pandemic. It is important to note that these results do
not include the sale of any high value fancy and special stones.
Total proceeds from the sale were US$8.9 million (CAD$11.7 million)
from 210,661 carats at an average realized value of US$42 per
carat, indicating a 1% discount to values achieved for similar
diamonds at the February sale.
Despite COVID-19 restricting travel into Belgium, bidding was
strong and consistent with those seen earlier in the year. The
Company's next sale event is scheduled to close on Oct. 31, 2020.
Stuart Brown, the Company's president and CEO, commented:
"We are pleased to have finally resumed our traditional sales
channels as the markets around the globe continue to gradually open
for business. The results of the first small sale, post the
COVID-19 Pandemic are an encouraging start considering that the
market has been at a standstill for nearly 6 months. The results
of the sale were a positive sign as the markets for rough and
polished diamonds start to return."
About Mountain Province Diamonds
Mountain Province Diamonds -- http://www.mountainprovince.com/--
is a 49% participant with De Beers Group in the Gahcho Kue diamond
mine located in Canada's Northwest Territories. The Gahcho Kue
Joint Venture property consists of several kimberlites that are
actively being mined, developed, and explored for future
development. The Company also controls 106,202 hectares of highly
prospective mineral claims and leases that surround the Gahcho Kue
Joint Venture property that include an indicated mineral resource
for the Kelvin kimberlite and inferred mineral resources for the
Faraday kimberlites.
Mountain Province reported a net loss of C$128.76 million for the
year ended Dec. 31, 2019, compared to a net loss of C$18.93 million
for the year ended Dec. 31, 2018.
* * *
As reported by the TCR on July 21, 2020, Moody's Investors Service
downgraded Mountain Province Diamonds Inc.'s Corporate Family
rating to Caa3 from Caa1. The downgrade of MPD's rating reflects
Moody's view that the company will be challenged to repay its
revolving credit facility as per its revolving credit facility
waiver agreement [1] given the current difficult rough diamond
market as the coronavirus pandemic has further weakened prices and
sales volumes, as well as the increased risk that the company
enters into a debt restructuring transaction.
In May 2020, S&P Global Ratings lowered its issuer credit rating on
Toronto-based Mountain Province Diamonds Inc. (MPV) and its
issue-level rating on the company's second-lien secured notes to
'CCC-' from 'CCC+'. "We believe MPV faces a high risk of
exhausting its liquidity within the next several months, and
increased likelihood for engaging in a debt restructuring
transaction we view as a distressed," S&P said.
As reported by the TCR on Aug. 28, 2020, Fitch Ratings downgraded
Mountain Province Diamonds Inc.'s (MPVD) Issuer Default Rating to
'CCC' from 'B-'. The downgrade reflects materially lower diamond
prices and the currently challenged diamond market due to
coronavirus pandemic implications.
NELNET INC: Moody's Confirms Ba1 CFR, Outlook Negative
------------------------------------------------------
Moody's Investors Service confirmed Nelnet, Inc.'s Ba1 corporate
family and Ba2 (hyb) junior subordinated debt ratings concluding
the review for downgrade initiated on June 23, 2020, following the
company's announcement that the US Department of Education (DOE)
will not renew its contract to service the DOE's federal direct
student loans. The outlook is negative.
The confirmation of Nelnet's ratings reflects Moody's assessment
that while profitability and franchise strength would weaken from
the loss of the DOE federal direct student loan servicing contract,
they will over time be largely, if not completely, offset by the
company establishing a bank along with ramping up its private
student loan lending business.
RATINGS RATIONALE
On June 22, the company announced that the US Department of
Education (DOE) decided not to renew its contract to service DOE's
federal direct student loans. Given the potential negative impact
to the company's financial profile, Moody's placed Nelnet's ratings
on review for possible downgrade. Nelnet's subsidiaries, Nelnet
Servicing, LLC (Nelnet Servicing) and Great Lakes Educational Loan
Services, Inc. (Great Lakes), were awarded student loan servicing
contracts by the DOE in June 2009. As of 31 March 2020, Nelnet
Servicing was servicing $185.5 billion of student loans for 5.5
million borrowers under its contract, and Great Lakes was servicing
$243.2 billion of student loans for 7.3 million borrowers under its
contract. These servicing contracts expire on 14 December 2020 with
two potential six-month extensions at the DOE's discretion through
14 December 2021.
Subsequent to the company's announcement, the DOE announced on 24
June the five companies who signed a new contract to service the
DOE's federal direct student loans in the future. Only two of these
five companies awarded new contracts by the DOE are among the
current direct student loan servicers with the two having a
relatively small market share of around 10% of federal direct
student loans outstanding. Moody's believes that several of the
other existing servicers were offered awarded contracts by the DOE,
but declined due to unfavorable economics.
Given these developments, the DOE may ultimately reverse its
original decision. However, if the DOE's contract decision stands,
Nelnet Servicing and Great Lakes will eventually be required to
migrate these portfolios onto another provider's system, however,
Moody's believes such transfer will not occur for at least a year
or two.
Moody's believes that the loss of the DOE federal direct student
loan servicing contract would reduce the company's net income up to
20% relative to its 2019 level. In addition, the contract provides
the company with scale, insight and relationships in its core
student loan business services offerings. However, Moody's believes
that the negative impact of the loss of the federal student loan
servicing contract will over time be largely, if not completely,
offset by the company establishing a bank along with ramping up its
private student loan lending business. The company obtained
approval in March by the Federal Deposit Insurance Corporation
(FDIC) and the Utah Department of Financial Institutions (UDFI) to
establish a Utah-charted industrial bank.
The Ba1 corporate family rating currently assigned to Nelnet is
derived from its standalone assessment, which reflects the
company's credit profile, supported by its solid core earnings
generation, low corporate leverage, strong asset profile and
adequate liquidity position. As Nelnet's student loan portfolio
runs off, the company is facing operational and execution risks as
it goes through a strategic transformation with the loss of the DOE
servicing contract a setback and the establishment of the bank a
positive to those efforts.
After the 2008/09 financial crisis, the company significantly
strengthened its financial profile reducing its leverage and almost
entirely funding its business with securitizations, warehouse
facilities and cash generated from operations. At 30 June 2020, the
company had just $50 million of corporate debt outstanding,
consisting primarily of $30 million outstanding on its $455 million
unsecured line of credit due in 2024 and $20.4 million of junior
subordinated hybrid securities.
Moody's assesses that as a student loan provider, Nelnet faces a
high regulatory risk. As student debt service increasingly weighs
on household finances, there have been many proposed measures to
alleviate the burden. A large-scale program to refinance loans
under the Federal Family Education Loan Program (FFELP) and private
student loans with direct loans funded by the US government would
be credit negative for FFELP and private student loan lenders and
servicers, particularly those concentrated in the market, such as
Nelnet. While repayment at par would result in lenders not
incurring credit losses on forgiven loans, a reduction in lenders'
loan portfolios would deprive lenders of future net interest income
and servicers of future servicing income.
The negative outlook reflects the uncertain negative impact over
the next 12-18 months on the company's profitability from the
potential loss of its federal direct student loan servicing
contract.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Since the outlook is negative, rating upgrades over the next 12-18
months are unlikely. The outlook could return to stable if Moody's
were to assess that the negative impact on the company's future
financial profile, particularly profitability, was modest, or if
the company was able to mitigate these profitability pressures,
such as through the prudent build up in its private student loan
origination business.
The ratings could be downgraded if Moody's were to assess a likely
financial performance deterioration, for example, if net income to
managed assets falls consistently below and is expected to remain
below 0.45% from its three-year average of around 0.60% to 0.70%.
In addition, the ratings could be downgraded if leverage materially
increases, or if the value of the investment portfolio declines
due, for example, to increasing prepayment speeds on the FFELP
portfolio.
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
NPC INTL: About 1,000 Pizza Hut Stores Could be Sold to Competitors
-------------------------------------------------------------------
Josh Saul of Bloomberg News reports that the Pizza Hut restaurants
up for sale in the bankruptcy of operator NPC International Inc.
could be bought by a competitor in the pizza industry, the
company's lenders said in a court filing.
Pizza Hut wants the right to approve any buyer of its restaurants
currently owned by NPC, the pizza chain's largest domestic
franchisee, to ensure any new owner can handle the brand's
standards.
If Pizza Hut doesn't consent to the change in control, any buyer
will only own the leases and property -- not an operating Pizza Hut
franchise, the company said in its objection Friday, Sept. 18,
2020.
About NPC International
NPC International, Inc. -- https://www.npcinternational.com/ -- is
a franchisee company with over 1,600 franchised restaurants across
two iconic brands -- Wendy's and Pizza Hut -- spanning 30 states
and the District of Columbia.
NPC International and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
20-33353) on July 1, 2020. At the time of the filing, Debtors
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 Weil, Gotshal & Manges, LLP, as bankruptcy
counsel; Alixpartners, LLP as financial advisor; Greenhill & Co.,
LLC as investment banker; and Epiq Corporate Restructuring, LLC as
claims, noticing and solicitation agent and administrative advisor.
OBITX INC: Incurs $1.08 Million Net Loss in Second Quarter
----------------------------------------------------------
OBITX, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $1.08
million for the three months ended July 31, 2020, compared to a net
loss of $41,218 for the three months ended July 31, 2019.
For the six months ended July 31, 2020, the Company reported a net
loss of $49.29 million compared to a net loss of $103,663 for the
six months ended July 31, 2019.
As of July 31, 2020, the Company had $1.93 million in total assets,
$506,909 in total liabilities, and $1.42 million in total
stockholders' equity.
The Company has negative cash flow and there are no assurances the
Company will generate a profit or obtain positive cash flow. The
Company has sustained its solvency through the support of its
related parties, which raise substantial doubt about its ability to
continue as a going concern.
"Management is taking steps to raise additional funds to address
its operating and financial cash requirements to continue
operations in the next twelve months. Management has devoted a
significant amount of time to the raising of capital from
additional debt and equity financing. However, the Company's
ability to continue as a going concern is dependent upon raising
additional funds through debt and equity financing and generating
revenue. There are no assurances the Company will receive the
necessary funding or generate the revenue necessary to fund
operations. The financial statements contain no adjustments for
the outcome of this uncertainty," OBITX stated.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1730869/000147793220005491/obitx_10q.htm
About OBITX, Inc.
OBITX, Inc. -- http://www.ObitX.com-- is engaged in the business
of digital cryptocurrency and blockchain development and
consulting.
OBITX reported a net loss from operations of $168,028 for the year
ended Jan. 31, 2020, compared to a net loss from operations of
$392,042 for the year ended Jan. 31, 2019.
M&K CPAS, PLLC, in Houston, TX, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated June 2,
2020, citing that the Company suffered a net loss from operations
and has a net capital deficiency, which raises substantial doubt
about its ability to continue as a going concern.
ONEWEB GLOBAL: Court OKs Plan Vote to Tap $235M Funds
-----------------------------------------------------
Law360 reports that a New York bankruptcy judge sent OneWeb
Global's $181 million equity-swap Chapter 11 plan to a creditor
vote while approving $235 million in new financing that the
satellite internet startup said will go toward restarting its
launch program.
At a telephone hearing, OneWeb counsel told U.S. Bankruptcy Judge
Robert Drain that it had secured full creditor consent for the
plan, which will include $10 million for unsecured creditors and
payment of the expenses of the case by the new owner of its assets,
in addition to new debtor-in-possession financing through the end
of the 2020.
About OneWeb Global Limited Ltd.
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 ought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
20-22437) on March 27, 2020. At the time of the filing, Debtors
disclosed assets of between $1 billion and $10 billion and
liabilities of the same range.
ORANGE BLOSSOM: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
Orange Blossom Catering, Inc., according to court dockets.
About Orange Blossom Catering Inc.
Orange Blossom Catering, a company based in Saint Petersburg, Fla.,
offers full-service event planning for personal, community and
corporate functions.
Orange Blossom Catering sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-06185) on Aug. 14,
2020. Ryan Clelland, president, signed the petition. At the time
of filing, Debtor disclosed assets of between $500,000 and $1
million and liabilities of between $1 million and $10 million.
Judge Catherine Peek Mcewen oversees the case. Debtor is
represented by Camille J. Iurillo, Esq. and Kevin Hing, Esq. of The
Iurillo Law Group P.A.
ORCA INVESTMENTS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Orca Investments, LLC
8 Spofford Street
Georgetown, MA 01833
Chapter 11 Petition Date: September 23, 2020
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 20-11930
Judge: Hon. Melvin S. Hoffman
Debtor's Counsel: Marques C. Lipton, Esq.
PARKER & LIPTON
10 Converse Place, Suite 201
Winchester, MA 01890
Tel: (781) 729-0005
Email: mlipton@parkerlipton.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Matthew D. Newhall, manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the petition is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/BQSZ3MA/Orca_Investments_LLC__mabke-20-11930__0001.0.pdf?mcid=tGE4TAMA
PACKAGING COORDINATORS: Moody's Assigns B3 CFR, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service assigned a B3 Corporate Family Rating and
B3-PD Probability of Default Rating to Packaging Coordinators
Midco, Inc. (NEW). Moody's also assigned B2 ratings to the
company's proposed first-lien credit facilities, consisting of a
$125 million revolver expiring 2025, and $870 million term loan due
2027. The rating outlook is stable.
Proceeds from the proposed senior secured first lien term loan and
a privately placed second lien term loan (unrated), along with a
contribution of new common and preferred equity from Kohlberg &
Company and Mubadala, will fund the leveraged buyout of PCI,
refinance existing debt, and pay transaction fees and expenses. The
proposed $125 million revolving credit facility is expected to be
undrawn at closing.
The ratings of predecessor company, Packaging Coordinators Midco,
Inc., including the B3 CFR, B3-PD PDR, and all associated
instrument ratings, will be withdrawn upon closing of the
transaction and repayment of existing debt. The acquisition
involves only a change in ownership and a recapitalization;
operationally there is no change.
The ratings are subject to the deal closing as proposed and the
receipt and review of the final documentation.
Moody's assigned the following ratings to Packaging Coordinators
Midco, Inc. (NEW):
Corporate Family Rating, assigned at B3
Probability of Default Rating, assigned at B3-PD
Senior Secured First Lien Revolver due 2025 at B2 (LGD3)
Senior Secured First Lien Term Loan due 2027 at B2 (LGD3)
Outlook Actions:
Outlook, Assigned Stable
RATINGS RATIONALE
Packaging Coordinator Midco, Inc. (NEW)'s B3 Corporate Family
Rating (CFR) reflects its very high pro forma financial leverage
following the sponsor to sponsor LBO, with debt-to-EBITDA of
approximately 8.3 times (on a Moody's adjusted basis) for the
twelve months ended June 30, 2020. The rating also reflects PCI's
modest scale, both on an absolute basis and relative to several
much larger competitors, as well as the risk of revenue losses due
to selective in-sourcing by customers. The rating also incorporates
event and financial policy risk due to private equity ownership
reflected in the company's acquisitive nature and associated
integration risks. PCI benefits from its leading position among
contract packaging services companies, and a relatively well
diversified customer base consisting largely of blue-chip
pharmaceutical clients. Moody's expects the company's growth will
continue to be supported by favorable industry tailwinds, as the
pharmaceutical industry will continue to increase its reliance on
outsourced service providers.
The company's good liquidity profile reflects Moody's expectation
of break-even to modestly positive free cash flow over the next 12
months, and a sizable revolving credit facility.
The stable outlook reflects Moody's expectation that PCI will
benefit from high single-digit earnings growth, which will support
the company's ability to reduce leverage. However, even with
expected EBITDA growth, leverage is expected to remain high due to
the company's aggressive financial policies.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if the company were to experience
operating disruptions or loss of a major contract. A downgrade
could also occur if the company's liquidity profile were to erode,
such that free cash flow was to turn negative on a sustained basis,
or interest coverage falls below one times.
Ratings could be upgraded if the company can profitably grow in
scale and maintain good product and customer diversity.
Additionally, the company will need to maintain good liquidity,
reflected in consistently positive free cash flow, and debt/EBITDA
will need to be sustained below 6 times, for ratings to be
upgraded.
Following are some of the preliminary credit agreement terms, which
remain subject to market acceptance.
The proposed first lien term loan is expected to have no financial
maintenance covenants while the proposed revolving credit facility
will contain a springing maximum first lien leverage ratio that
will be tested when the revolver is more than 40% drawn. In
addition, the first lien credit facility contains incremental
facility capacity up to the greater of $175 million or 100%
consolidated EBITDA , plus an additional amount subject to either a
5.0x pro forma First Lien Net Leverage Ratio (pari passu secured
debt), 7.0x Secured Net Leverage Ratio ( junior debt), or if
unsecured, either (i) 7.25x Total Net Leverage Ratio or (ii)
subject to the 2.0x interest coverage ratio (such incremental debt
may also be incurred on a leverage neutral basis if used to finance
an acquisition or investment). Collateral leakage is permitted
through transfers of assets to unrestricted subsidiaries; material
intellectual property may not be transferred to an unrestricted
subsidiary unless such unrestricted subsidiary provides a license
to the Agent to allow the Agent to exercise remedies with respect
to such material intellectual property after an event of default.
Only domestic wholly-owned subsidiaries must provide guarantees;
partial dividends of ownership interests could jeopardize
guarantees subject to certain limitations on guarantee releases.
There are leverage-based step-downs in the asset sale prepayment
requirement to 50% and 0% if the First Lien Net Leverage Ratio is
equal to or less than 4.50x and 4.00x, respectively.
Social and governance considerations are material to PCI's credit
profile. The rating reflects social risk associated with operating
specialized facilities and equipment for products that require cold
chain handling, high potency and non-potent drug manufacturing, and
commercial and clinical packaging, and distribution services that
are heavily regulated by multiple government agencies. However,
growth in outsourcing of various pharmaceutical services to third
party providers, will benefit companies like PCI. Within PCI's
businesses, this is particularly true as pharmaceutical companies'
own facilities become outdated or require significant investment to
keep up with newly developed regulatory requirements.
Among governance considerations, PCI's financial policies under
private equity ownership are aggressive, reflected in very high
initial debt levels following the sponsor to sponsor LBO, as well
as a strategy to supplement organic growth with material
debt-funded acquisitions. Further, part of the acquisition will be
funded with $300 million of preferred equity, which Moody's expects
to pay in kind. Although Moody's does not include this in leverage
calculations, the rating agency believes that over time this
instrument will be refinanced with debt, leading to sustained high
levels of leverage.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Packaging Coordinators Midco, Inc. (NEW) is a global provider of
outsourced pharmaceutical services that include commercial and
clinical packaging, clinical storage and distribution services,
high potency and non-potent drug manufacturing, and selected drug
development and analytical services. For the LTM period ending June
30, 2020, PCI generated revenue of approximately $696 million.
PCI's parent firm and issuer of the audited financial statements,
Pioneer UK Midco 1 Limited (guarantor of the rated debt) is
majority owned by private equity firm Kohlberg & Company, along
with minority stakes by equity sponsor Partners Group, and
Mubadala, and the management team.
PLANTERS EXCHANGE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The Office of the U.S. Trustee on Sept. 22 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of The Planters Exchange, Inc.
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. 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. Judge Karen K. Specie oversees the case. The Law Office
of Allen P. Turnage serves as the Debtor's legal counsel.
PLUM CIRCLE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee, until further notice, will not appoint an
official committee of unsecured creditors in the Chapter 11 case of
Plum Circle Community Trust, according to court dockets.
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, the 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 the Debtor's legal counsel.
Steven S. Oscher was appointed as Chapter 11 trustee for Debtor's
bankruptcy estate on Aug. 19, 2020. Trenam, Kemker, Scharf,
Barkin, Frye, O'Neill & Mullis, P.A. and Oscher Consulting, P.A.,
serve as the trustee's legal counsel and accountant, respectively.
PPV INC: Hearing on Exclusivity Extension Bid Continued to Oct. 20
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon have continued
the hearing to consider the request of PPV, Inc. and Bravo
Environmental NW, Inc., for an extension of their exclusivity
period for filing a Chapter 11 Plan and Disclosure Statement. The
Continued Hearing has been scheduled for October 20, 2020 at 1:30
p.m. by telephone.
PPV, Inc. and Bravo Environmental NW, Inc., have asked the
Bankruptcy Court to extend through and including September 18,
2020:
(i) the deadline set by the Court for the Debtors' exclusivity
periods; and
(ii) the deadline within which the Debtors must decide whether
to assume or reject all unexpired leases of non-residential real
property.
The proposed extension will give time for the Debtors to establish
bidding procedures in order to achieve the highest and best price
for PPV and/or Bravo, and receive multiple letters of intent from
interested parties.
The Debtors said they have made significant progress even with the
Covid-19 pandemic that caused the delay or postpone the discussions
with potential lenders or buyers or in light of the state of the
financial economy. The Debtors have been approached with a
framework for a possible sale transaction that will facilitate a
confirmable plan of reorganization and has been in discussions with
key creditors about the status of such sale negotiations and the
possible treatment of creditors' claims in a plan of
reorganization. Also, the Debtors have established a data room for
interested parties to review financials and information on the
Debtors and their operations.
However, those discussions have stalled since the Debtors submitted
their last request for an extension of the exclusivity period, and
Debtors are now concerned that the potential buyer for that sale
transaction may not be interested or able to complete a sale to
support the confirmation of a plan.
Without the extension, the exclusivity periods and deadline to
accept or reject non-residential real property leases was scheduled
to lapse on August 7, 2020.
About PPV, Inc.
PPV, Inc. -- https://www.ppvnw.com/ -- is a waste management
services provider in Portland, Oregon. The company offers
industrial cleaning, recycling, treatment, and technical waste
management services.
PPV, Inc. filed a petition under Chapter 11 of the Bankruptcy Code
(Bankr. D. Ore. Lead Case No. 19-34517) on Dec. 10, 2019. In the
petition signed by Joseph J. Thuney, president, the Debtor was
estimated to have between $1 million and $10 million in both assets
and liabilities. Douglas R. Ricks, Esq. at Vanden Bos & Chapman,
LLP is the Debtor's counsel.
Affiliate Bravo Environmental NW, Inc., also filed for Chapter 11
bankruptcy (Bankr. D. Ore. Case 19-34518) on Dec. 10, 2019.
The cases are jointly administered before the Honorable David W.
Hercher. No creditors' committee has been appointed in this case.
PULMATRIX INC: Incurs $1.2 Million Net Loss in Second Quarter
-------------------------------------------------------------
Pulmatrix, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $1.17
million on $3.50 million of revenues for the three months ended
June 30, 2020, compared to a net loss of $7.84 million on $4.82
million of revenues for the three months ended June 30, 2019.
For the six months ended June 30, 2020, the Company reported a net
loss of $5.85 million on $6.26 million of revenues compared to a
net loss of $13 million on $4.82 million of revenues for the same
period in 2019.
As of June 30, 2020, the Company had $35.07 million in total
assets, $21.18 million in total liabilities, and $13.88 million in
total stockholders' equity.
Through June 30, 2020, the Company has incurred an accumulated
deficit of $221.0 million, primarily due to expenses incurred
through a combination of research and development activities
related to its various product candidates and general and
administrative expenses supporting those activities. The Company
has financed its operations since inception primarily through the
sale of preferred and common stock, the issuance of convertible
promissory notes, term loans and collaboration and license
agreements. The Company's total cash and cash equivalents as of
June 30, 2020 was $27.3 million.
Pulmatrix said, "We anticipate that we will continue to incur
losses, and that such losses will increase over the next several
years due to development costs associated with our iSPERSE pipeline
programs. We expect that our research and development and general
and administrative expenses will continue to increase and, as a
result, we will need additional capital to fund our operations,
which we may raise through a combination of equity offerings, debt
financings, other third-party funding and other collaborations and
strategic alliances.
"We expect that our existing cash and cash equivalents at June 30,
2020 and anticipated interest income will enable us to fund our
operating expenses and capital expenditure requirements for at
least the next 12 months following the date of this Quarterly
Report on Form 10-Q. We have based our projections of operating
capital requirements on assumptions that may prove to be incorrect
and we may use all of our available capital resources sooner than
we expect. Because of the numerous risks and uncertainties
associated with research, development and commercialization of
pharmaceutical products, we are unable to estimate the exact amount
of our operating capital requirements.
"The ultimate impact of the COVID-19 pandemic on the Company's
operations is unknown and will depend on future developments, which
are highly uncertain and cannot be predicted with confidence.
These include but are not limited to including the duration of the
COVID-19 pandemic, new information which may emerge concerning the
severity of the COVID-19 pandemic, and any additional preventative
and protective actions that regulators, or the board or management
of the Company, may determine are needed.
"The COVID-19 pandemic has created significant economic uncertainty
and volatility in the credit and capital markets. The Company may
not be able to raise sufficient additional capital and may tailor
our drug candidate development program based on the amount of
funding we are able to raise in the future. Nevertheless, there is
no assurance that these initiatives will be successful.
"In addition, as previously discussed, on July 10, 2020, the joint
steering committee established by us and Cipla terminated our Phase
2 clinical study of Pulmazole in connection with our renegotiation
of the Cipla Agreement. There can be no assurance that we will be
able to renegotiate the Cipla Agreement on favorable terms, or at
all."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1574235/000149315220014929/form10-q.htm
About Pulmatrix
Pulmatrix, Inc. -- http://www.pulmatrix.com/-- is a clinical stage
biopharmaceutical company developing innovative inhaled therapies
to address serious pulmonary and non-pulmonary disease using its
patented iSPERSE technology. The Company's proprietary product
pipeline is initially focused on advancing treatments for serious
lung diseases, including Pulmazole, an inhaled anti-fungal for
patients with ABPA, and PUR1800, a narrow spectrum kinase inhibitor
in lung cancer. Pulmatrix's product candidates are based on
iSPERSE, its proprietary engineered dry powder delivery platform,
which seeks to improve therapeutic delivery to the lungs by
achieving optimal local drug concentrations and reducing systemic
side effects to improve patient outcomes.
Pulmatrix reported a net loss of $20.59 million for the year ended
Dec. 31, 2019, compared to a net loss of $20.56 million for the
year ended Dec. 31, 2018. As of March 31, 2020, the Company had
$30.82 million in total assets, $23.88 million in total
liabilities, and $6.94 million in total stockholders' equity.
RADHA KRISHN: Seeks to Hire Javed Law Firm as Special Counsel
-------------------------------------------------------------
Radha Krishn LP seeks approval from the U.S. Bankruptcy Court for
the Western District of Texas to hire Javed Law Firm, PLLC as its
special counsel.
Debtor needs the firm's legal assistance to prosecute its property
damage insurance claim. The firm will be paid on a 40 percent
contingent fee basis, plus expenses.
Nohayia Javed, Esq., the firm's attorney who will be providing the
services, is a "disinterested person" within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.
Ms. Javed holds office at:
Nohayia Javed, Esq.
Javed Law Firm, PLLC
3019 Spider Lily
San Antonio, TX 78258
Telephone: (832) 360-0476
Facsimile: (281) 605-5020
About Radha Krishn
Based in San Marcos, Texas, Radha Krishn, LP sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
20-10764) on July 6, 2020. At the time of the filing, Debtor
disclosed assets of between $1 million and $10 million and
liabilities of the same range.
Judge Tony M. Davis oversees the case.
Martin Warren Seidler, Esq., at the Law Offices of Martin Seidler,
is Debtor's legal counsel.
RADIO DESIGN: Seeks Plan Exclusivity Extension Thru Sept. 30
------------------------------------------------------------
Radio Design Group, Inc., is asking the Bankruptcy Court for the
District of Oregon for an order extending the exclusivity period
under 11 U.S.C. Section 1121 to September 30, 2020.
This is the Debtor's fifth extension request.
On August 21, 2020, Judge Thomas M. Renn granted the Debtor's
fourth motion and extended the exclusivity periods to August 31.
James Hendershot, the President of Radio Design Group, Inc., said
the Debtor in August continued to work with the Navy on approval of
its new project. "Assuming [a contract] is approved, I believe
this project will help provide the funding we need for confirmation
of a plan of reorganization," Hendershot said. "I believe it would
be a waste of resources for all involved to file a plan without
knowing the outcome of these discussions. If approved by the Navy,
we will file a plan and move towards confirmation. Our financial
projections for such a scenario indicate that the next few months
will be incredibly profitable and provide a significant benefit to
everyone involved. If the project is not approved, I am not sure if
the company will be able to continue in operations."
"I believe if we have one final month of exclusivity, we will have
sufficient information about the status of this new project to be
able to decide if we can move forward with a plan or if the case
needs to go in a different direction.
"Maintaining exclusivity during this period of time is essential to
avoid the potential distraction of competing plans and provide the
[Debtor] with the opportunity to propose a feasible plan."
He added that, based on the Debtor's monthly operating reports, the
Debtor has suffered a significant drop in revenue during the second
and third quarters of 2020 as a result of the pandemic. "We expect
our short-term cash flow issues to be resolved heading into the
Fourth Quarter of 2020 and are continuing to work with our secured
creditors on cash collateral issues during this time," he said.
The Debtor filed its fourth extension request on July 31, 2020. At
that time, Hendershot said the Covid-19 pandemic affected the
commercial/entertainment market that led to shutdowns, which caused
the Debtor to struggle with short term cash flow. He said the
Debtor was in continued discussions with Chase Bank regarding the
future of the company, and with the extended time granted, the
Debtor would be able to pursue a new project with the U.S. Military
that will result to significant cash flow that can be used for
operations and repayment of creditors.
About Radio Design Group
Radio Design Group, Inc., is a design and engineering firm based in
Grants Pass, Oregon. Since its incorporation in 1992, Radio Design
has grown from a small RF consulting company specializing in small
commercial markets to a vital contributor to unique and innovative
products that have advanced the state of technology in both the
commercial and defense-related markets.
Radio Design sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Ore. Case No. 19-63617) on Dec. 2, 2019. In the
petition signed by James Hendershot, president, the Debtor was
estimated to have $1 million to $10 million in assets and
liabilities of the same range. Judge Thomas M. Renn is assigned to
the case. The Debtor is represented by Loren S. Scott, Esq., at
The Scott Law Group.
Radio Design previously sought bankruptcy protection on July 24,
2014 (Bankr. D. Ore. Case No. 14-62732).
REMINGTON OUTDOOR: Court Denies Bid to Appoint Retirees Committee
-----------------------------------------------------------------
Judge Clifton Jessup, Jr. of the U.S. Bankruptcy Court for the
Northern District of Alabama denied the appointment of a retirees
committee in the Chapter 11 cases of Remington Outdoor Company,
Inc. and its affiliates.
In his order, Judge Jessup denied, without prejudice, the request
of the United Mine Workers of America to appoint a committee to
represent retired workers in light of Remington's decision to sell
most of its assets.
The labor union, which has approximately 975 retirees or their
beneficiaries, cannot represent Remington's retired workers because
of a potential conflict of interest with the company's employees.
About Remington Outdoor Company
Remington Outdoor Company, Inc. and its affiliates are
manufacturers of firearms, ammunition and related products for
commercial, military, and law enforcement customers throughout the
world. They operate seven manufacturing facilities located across
the United States. The companies' principal headquarters are
located in Huntsville, Alabama.
Remington Outdoor Company and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Lead Case
No. 20-81688) on July 27, 2020. At the time of the filing,
Remington disclosed assets of between $100 million and $500 million
and liabilities of the same range.
Judge Clifton R. Jessup Jr. oversees the cases.
Debtors have tapped O'Melveny & Myers LLP as their bankruptcy
counsel, Burr & Forman LLP as local counsel, M-III Advisory
Partners LP as financial advisor, Ducera Partners LLC as investment
banker, and Prime Clerk LLC as notice, claims and balloting agent.
The U.S. Bankruptcy Administrator for the Northern District of
Alabama appointed a committee of unsecured creditors on Aug. 6,
2020. The committee is represented by Fox Rothschild, LLP and
Baker Donelson Bearman Caldwell & Berkowitz, PC.
REVINT INTERMEDIATE II: Moody's Assigns B3 CFR, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service assigned new ratings to Revint
Intermediate II, LLC, including a B3 corporate family rating, B3-PD
probability of default rating, and a B3 instrument rating to the
healthcare revenue cycle management company's senior secured
first-lien credit facilities, comprising a $75 million revolver and
a $630 million term loan. Proceeds from the new term loan plus $120
million of incremental equity from the current private equity
sponsor will be used to refinance existing debt at Revint, satisfy
transaction expenses, and acquire peer RCM provider Triage
Consulting Group, as well as allocate cash to the balance sheet.
The outlook is stable.
Assignments:
Issuer: Revint Intermediate II, LLC
Corporate family rating, assigned B3
Probability of default rating, assigned B3-PD
Gtd Senior Secured 1st lien Term Loan due 2027, assigned B3 (LGD4)
Gtd Senior Secured 1st lien Revolving Credit Facility due 2025,
assigned B3 (LGD4)
Outlook, stable
RATINGS RATIONALE
The assignment of the B3 CFR reflects the combined company's small,
sub-$300 million revenue scale, high, roughly 6.5 times opening
pro-forma Moody's-adjusted debt-to-EBITDA leverage and moderate
integration risks as Revint merges with a similarly sized and
similarly profitable healthcare RCM peer. (In its leverage
calculation, Moody's expenses software development costs that
Revint capitalizes. Without that reduction in EBITDA, opening
leverage would be 5.9 times.) The lack of a combined-company
operating history as well as substantial adjustments and addbacks
to EBITDA (given Revint's active acquisition program) lessen the
borrower's quality of earnings and therefore weigh on the ratings.
Equity-friendly credit documentation, which allows for significant
incremental debt, gives the company leeway to continue to pursue
debt funded acquisitions, which it has demonstrated an ample
appetite for in the past. Additionally, substantial retention
bonuses for Triage professionals and earnout payments for prior
Revint acquisitions, neither of which Moody's includes in its
leverage calculation, will cut heavily into free cash flow.
The combined company's 10% revenue CAGR over the last few years is
driven entirely by strong performance at the historic Revint
standalone entity, while Triage's revenues have stagnated due to a
limited focus on sales and revenue growth. After a slight
COVID-related slowdown in revenue growth in 2020 (and in otherwise
strong margins), Moody's expects the combined company to
demonstrate renewed healthy growth as case volumes at hospitals
rebound and as the combined company leverages the successes that
Revint's sales team has demonstrated. Moody's expects Moody's
adjusted leverage to moderate towards 6.0 times by late 2021, more
in keeping with the B3 CFR.
Servicing the LBO's debt load and contingent earnout and bonus
payments will limit Revint's operational and financial flexibility
in a highly competitive, consolidating environment that includes
many players, some considerably larger and less leveraged than
Revint. Certain of those competitors offer the same or even more
services along the healthcare RCM continuum than Revint offers, and
customers may opt to limit the number of vendors they use in order
to simplify the outsourcing of complex services that are subject to
regulatory changes. Revint, however, is a long-standing competitor
in a fragmented market. It seeks to distinguish itself by offering
its healthcare-provider customers a full suite of services, rather
than point solutions, across the RCM spectrum:
diagnosis-related-group ("DRG") validation, transfer DRG, charge
capture, underpayments and denials recovery, and Medicare
reimbursement.
Moody's believes the complementarity of Revint's data analytics and
technology-platform strengths and Triage's
underpayment-identification strengths supports the rationale for
the business combination. But even together the companies present a
revenue base of only about $280 million, small for the B3 rating
category. Still, Moody's expects that market share inroads and
cross-selling opportunities will continue to allow for
upper-single-digit-percentage growth over the ratings horizon.
Healthcare industry trends -- including increased healthcare
spending, higher patient volumes with lower margins, a rise in
costs attributed to waste and abuse, and greater, regulatory-driven
complexity in the billing process itself -- also support the
rating.
Moody's views Revint's liquidity as adequate, as demonstrated by a
healthy, $38 million opening cash balance and free cash flows that
will be pressured in the short term. Moody's expects free cash flow
could continue to be negative through 2021. However, free-cash-flow
(as defined by EBITDA less capex) coverage of interest, at better
than 3.0 times through the ratings horizon, is strong for the
ratings category. A $75 million revolving credit facility, undrawn
at closing, will support weakness in cash flows. The transaction's
loose covenant package, including a springing net leverage limit
when the revolver is 35% drawn and no covenants associated with the
term loans, suggests the company will have unimpeded access to the
liquidity facility in early quarters.
The stable rating outlook reflects Moody's expectation that
top-line growth near 10% and maintenance of strong mid- to
upper-30%s EBTIDA margins will allow for moderate deleveraging over
the next 12 to 18 months.
Terms in the first lien credit agreement contain provisions for
incremental debt capacity up to the greater of $123 million and
100% of consolidated EBITDA for the trailing four fiscal quarters
plus additional amounts subject to pro-forma first-lien net
leverage of 5.0 times (if pari passu secured); pro-forma secured
net leverage of 6.0 time (if junior secured); or subject to either
pro-forma total net leverage of 6.0 times or cash interest coverage
of 2.0 times (if unsecured). In addition, incremental debt may be
incurred to finance an acquisition or investment so long as the
relevant pro forma leverage (coverage) does not increase
(decrease). Subject to an earlier maturing incremental sublimit
less than the greater of $62 million and 50% of consolidated
EBITDA, the maturity of the incremental facilities must be no
earlier than the maturity of the existing facilities. There are no
anticipated "blocker" provisions providing additional restrictions
on top of the covenant carve-outs to limit collateral leakage
through transfers of assets to unrestricted subsidiaries.
Subsidiaries are required to provide guarantees only if
wholly-owned; the sale or disposition of partial equity interests
raises the risk of a release of guarantees. The requirement that
net asset sale proceeds be used to reinvest or repay the loans
steps down to 50% and 0%, subject to 4.50 times and 4.0 times
first-lien net leverage, respectively.
FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if revenue growth and moderate margin
expansion enable Revint sustain Moody's-adjusted debt-to-EBITDA
leverage below 6.0 times, and if free cash flow as a percentage of
debt is expected to be sustained at at least 5%. A ratings
downgrade could result if Moody's expects free cash flow will
remain negative, or if access to the revolver appears threatened.
Failure to achieve at least mid-single-digit revenue growth or to
make progress towards delevering, due to difficulties integrating
Triage or losing significant customers, would also pressure the
rating.
Dallas, Texas-based Revint Intermediate II, LLC provides revenue
cycle management services, focusing on healthcare claims management
and patient payment solutions for physicians' offices and small to
large hospitals and hospital systems. Moody's expects Revint to
generate 2020 revenues of $280 million, pro-forma for a full year's
worth of revenue from California-based Triage, which it is
scheduled to buy in late 2020, with backing from Revint's private
equity owners, New Mountain Capital LLC.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
RGN-GROUP HOLDINGS: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------------
The U.S. Trustee for Region 3 on Sept. 21, 2020, appointed a
committee to represent unsecured creditors in the Chapter 11 cases
of RGN-Group Holdings, LLC and its affiliates.
The committee members are:
1. CBRE Global Investors
Attn: Andrew Horn, VP Finance
601 S Figueroa Street, Ste. 4900
Los Angeles, CA 90017
Tel: (646) 991-5237
Email: Andrew.horn@cbre.com
2. Steelbridge Las Olas West LLC
Attn: Albert Kim, Principal
9 West 57th Street
New York, NY 10019
Telephone: (917) 472-4256
Email: akim@apollolp.com
3. Thoits Bros., Inc.
Attn: John Shenk, CEO
629 Emerson Street
Palo Alto, CA 94301
Tel: (650) 323-4868
Email: john@thoitsbros.com
4. Arch Vine LLC
Attn: Sean Moghavem, CEO
Afshin Moghavem, Principal
420 S Beverly Drive, No. 206
Beverly Hills, CA 90212
Tel: (310) 553-4600
Email: sean@archwayco.com
5. Hudson Merrill Place
Attn: Michael Gottfried, Esq.
Elkins Kalt Weintraub Reuben Gartside LLP
10345 W Olympic Blvd.
Los Angeles, CA 90064
Tel: (310) 746-4400
Email: mgottfried@elkinskalt.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About RGN-Group Holdings
RGN-Group Holdings, LLC and its affiliates are primarily engaged in
renting and leasing real estate properties.
On Aug. 17, 2020, RGN-Group Holdings and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 20-11961). At the time of the filing, RGN-Group
Holdings disclosed total assets of $1,005,956,000 and total
liabilities of $946,016,000.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped Faegre Drinker Biddle & Reath LLP as their
bankruptcy counsel, Alixpartners as financial advisor, Duff &
Phelps LLC as restructuring advisor, and Epiq Corporate
Restructuring LLC as claims and noticing agent.
ROLETTE COUNTY, ND: Moody's Cuts Issuer Rating to B2, Outlook Neg.
------------------------------------------------------------------
Moody's Investors Service downgrades Rolette County, ND's issuer
rating to B2 from Ba1. Moody's has also downgraded the county's
lease revenue rating to Caa1 from Ba3. This action concludes the
review for possible downgrade initiated on June 30, 2020. The
downgrade affects $9.2 million of lease revenue bonds.
RATINGS RATIONALE
The issuer rating was downgraded to B2 because of a large,
unsustainable operating imbalance in the county's jail fund, which
will consume the bulk of the county's very limited general fund
resources. The county is unlikely to fix the imbalance or to
support its lease obligation for the jail beyond fiscal 2021
without extraordinary state support. The jail facility, which has
been a financial burden on the county since it was built in 2017,
was temporarily closed by the state for compliance violations and
will reopen in September 2020 with higher mandated costs and lower
revenue. The county's tax base is small, resident income levels are
low, liquidity and fund balance are very narrow, and its debt
burden is high. The county's constrained revenue-raising ability,
weaker budget management, and inability to effectively manage core
operations are material governance considerations. The issuer
rating represents Moody's assessment of hypothetical debt of the
county supported by a general obligation unlimited tax (GOULT)
pledge.
The Caa1 lease revenue rating is notched twice from the county's
issuer rating because of the heightened risk of non-appropriation
and the more essential nature of the county's jail facility, which
is the pledged asset.
Governance is a material factor in this rating action. The county
is already levying at the maximum allowable rate and has no
prospects for raising additional revenue. The jail itself has had
issues which management is attempting to address.
RATING OUTLOOK
The outlook is negative because the risk of non-appropriation on
the county's lease is high. The state legislature's willingness to
extend extraordinary support will play a key role when it returns
to session in February 2021. The county is exploring several
options with the state, including new levy authority, increased
state aid, and authorization to refinance the lease through the
Bank of North Dakota. The details and efficacy of any state support
will be important rating considerations. The county's upcoming
lease payments are on February 1, 2021 and August 1, 2021.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Significant and sustained increase in operating reserves
- Substantial improvement in jail operations
- State support that is likely to help the county to achieve
balanced and sustainable operations
- Upgrade in issuer rating (lease rating)
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Non-appropriation for lease payments (lease rating)
- Lack of state support or other credible plan to balance
operations
- Continued degradation of operating reserves
- Downgrade in issuer rating (lease rating)
LEGAL SECURITY
The lease revenue bonds are secured by rental payments made by the
county to the trustee, Zion Bank, subject to annual appropriation.
PROFILE
Rolette County is located about 10 miles from the Canadian border
in north central North Dakota (Aa1 stable). The County encompasses
an area of about 913 square miles and includes the Turtle Mountains
and the International Peace Gardens.
METHODOLOGY
The principal methodology used in the issuer rating was US Local
Government General Obligation Debt published in July 2020. The
principal methodology used in the lease rating was Lease,
Appropriation, Moral Obligation and Comparable Debt of US State and
Local Governments published in July 2018.
SMP ENTERPRISES: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of SMP Enterprises, Ltd.
About SMP Enterprises Ltd.
SMP Enterprises, Ltd. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Case No. 20-22595) on Sept. 4,
2020. At the time of the filing, Debtor disclosed assets of
between $100,001 and $500,000 and liabilities of the same range.
Jeffrey T. Morris, Esq., serves as the Debtor's bankruptcy
attorney.
TNT CRANE: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The Office of the U.S. Trustee disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 cases of TNT Crane & Rigging, Inc. and its affiliates.
About TNT Crane & Rigging
TNT Crane & Rigging, Inc. and its affiliates provide operated and
maintained (O&M) crane services and comprehensive lifting services.
As a provider of O&M services, the Company offers their customers
with highly-skilled operators, technical expertise and project
engineering and design in connection with their equipment rentals.
On Aug. 23, 2020, TNT Crane & Rigging and five of its affiliates
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
Del., Case No. 20-11982). The petitions were signed by Michael
Appling, Jr., chief executive officer.
At the time of the filing, the Debtors estimated their consolidated
assets to be $500 million to $1 billion and their consolidated
liabilities to be $500 million to $1 billion.
The Debtors tapped Simpson Thacher & Bartlett LLP as their
bankruptcy counsel, Young Conaway Stargatt Taylor LLP as Delaware
counsel, Miller Buckfire & Co. as restructuring advisor, Stifel
Nicolaus & Co., Inc. as investment banker, FTI Consulting Inc. as
financial advisor, and Prime Clerk LLC as claims and noticing
agent. Deloitte Tax LLP provides tax services to Debtors.
TRANS-LUX CORP: Removes Interim Tag from CEO Fazio
--------------------------------------------------
Trans-Lux Corporation's Board of Directors appointed Nicholas Fazio
to be the Company's chief executive officer. Mr. Fazio, 41, was
appointed interim chief executive officer on April 14, 2020, and
was appointed a director of the Company on Nov. 19, 2018. Mr.
Fazio has been director and chief executive officer of Unilumin
North America Inc. since 2017.
About Trans-Lux
Headquartered in New York, New York, Trans-Lux Corporation --
http://www.trans-lux.com/-- designs and manufactures TL Vision
digital video displays for the financial, sports and entertainment,
gaming, education, government, and commercial markets. With a
comprehensive offering of LED Large Screen Systems, LCD Flat Panel
Displays, Data Walls and scoreboards (marketed under Fair-Play by
Trans-Lux), Trans-Lux delivers comprehensive video display
solutions for any size venue's indoor and outdoor display needs.
Trans-Lux reported a net loss of $1.40 million for the year ended
Dec. 31, 2019, compared to a net loss of $4.69 million for the year
ended Dec. 31, 2018. As of June 30, 2020, the Company had $10.78
million in total assets, $14.94 million in total liabilities, and a
total stockholders' deficit of $4.15 million.
TRANS-LUX CORP: Stockholders Pass All Proposals at Annual Meeting
-----------------------------------------------------------------
At the 2020 Annual Meeting of Stockholders of Trans-Lux
Corporation, the stockholders:
(1)(a) approved the advisory resolution on executive
compensation;
(1)(b) approved the advisory resolution on the triennial
frequency of future advisory votes on executive
compensation;
(2) elected Yang Liu to serve as a director until the 2023
Annual Meeting of Stockholders, or until the election and
qualification of his successor, or his earlier death,
resignation or removal; and
(3) ratified the appointment of Marcum LLP as the independent
registered public accounting firm of the Company for the
fiscal year ending Dec. 31, 2019.
About Trans-Lux
Headquartered in New York, New York, Trans-Lux Corporation --
http://www.trans-lux.com/-- designs and manufactures TL Vision
digital video displays for the financial, sports and entertainment,
gaming, education, government, and commercial markets. With a
comprehensive offering of LED Large Screen Systems, LCD Flat Panel
Displays, Data Walls and scoreboards (marketed under Fair-Play by
Trans-Lux), Trans-Lux delivers comprehensive video display
solutions for any size venue's indoor and outdoor display needs.
Trans-Lux reported a net loss of $1.40 million for the year ended
Dec. 31, 2019, compared to a net loss of $4.69 million for the year
ended Dec. 31, 2018. As of June 30, 2020, the Company had $10.78
million in total assets, $14.94 million in total liabilities, and a
total stockholders' deficit of $4.15 million.
UNIVERSITY OF PUERTO RICO: Extends Pact With Bondholders to Feb. 28
-------------------------------------------------------------------
Michelle Kaske of Bloomberg News reports that the University of
Puerto Rico and its creditors may push debt-restructuring
negotiations into 2021 as the parties extended to Feb. 28, 2021 an
agreement to keep discussions outside of court.
UPR, which has $341 million of debt, will pay $10.8 million
(October through December 2020 payment) by Jan. 1, 2021, according
to a filing to bondholders posted on the Municipal Securities
Rulemaking Board's website.
The school will direct as much as $7.2 million by Feb. 26, 2021
(January and February 2021 payment) if UPR and its creditors reach
a forbearance agreement that goes beyond March 31, according to the
filing.
About the University of Puerto Rico
The University of Puerto Rico is a component unit of the
commonwealth of Puerto Rico. It is the only public university
system in the commonwealth, with multiple campuses serving over
51,000 students. The hospital is a legally separate entity from the
university, although the university appoints the majority of the
hospital board and is financially accountable for the hospital.
VAREX IMAGING: Moody's Assigns B2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service assigned a B2 Corporate Family Rating and
a B2-PD Probability of Default Rating to Varex Imaging Corporation
(Varex). Moody's also assigned a B1 rating to the company's
proposed $300 million senior secured 7-year notes. Proceeds from
the new notes will be used to fully retire existing debt, including
a $266 million term loan A and a $100 million revolving credit
facility. As part of this transaction, Varex will also put in place
a new ABL facility (unrated) for an amount of $100 million. The
outlook is stable.
"Varex's B2 Corporate Family Rating incorporates a sharp
deterioration in credit metrics due to the adverse impact of
coronavirus pandemic" said Jean-Yves Coupin, Moody's Analyst. "That
said, pro forma leverage will improve to below 7x over the next 12
to 18 months as Varex's earnings recover due to the return of
medical procedures and cost cutting initiatives" continued Coupin.
"Robust market positions in the niche medical imaging component
business, a track record of generating positive free cash flow and
a low appetite for leverage before the pandemic support the
rating."
Moody's took the following rating actions:
Issuer: Varex Imaging Corporation
Corporate Family Rating, Assigned B2
Probability of Default Rating, Assigned B2-PD
Proposed Senior Secured notes, Assigned B1 (LGD3)
Speculative Grade Liquidity Rating, Assigned SGL-2
Outlook: Assigned Stable
RATINGS RATIONALE
The B2 CFR reflects the company's very high leverage with pro forma
Moody's adjusted debt-to-EBITDA close to 9x for the twelve months
ended July 3, 2020. Moody's expects that leverage will decline to
below 7x as the headwinds from the coronavirus recede over the next
12 to 18 months. The rating is also constrained by Varex's modest
scale and pressure on hospitals' budgets that will dampen the
growth outlook for the new equipment market. Even prior to the
pandemic, Varex had faced pressures on profitability including from
tariffs and deteriorating profitability in the detector business.
The company also has some concentration with its top customer, a
large original equipment manufacturer ("OEM"), representing about
17% of Varex's revenue. Further, Varex faces some governance risk
due to internal control issues that have resulted in some
regulatory filing delays in recent quarters.
The B2 rating is supported by the company's long and sticky
relationships with key customers to supply a critical component of
their equipment and Moody's expectation that revenue growth will
resume once the adverse effects of the coronavirus pandemic recede.
Reflecting pent-up demand for medical imaging, Moody's forecasts
that Varex will generate double-digit earnings growth through
fiscal year 2022, which will result in solid deleveraging. That
said, Moody's expects that demand in the industrial segment will
return more slowly due to the uncertain outlook around passenger
air travel. Moody's forecasts that adjusted debt/EBITDA will
decline to towards 7.5x by the end of FY2021, with further
deleveraging in 2022. Moody's expects the company to generate
positive free cash flow in excess of $15 million per year beginning
in 2021. The rating is supported by Moody's expectation for good
liquidity. The rating also reflects Moody's expectations for
relatively conservative financial policies going forward given the
company's low appetite for leverage prior to the pandemic.
The stable outlook reflects Moody's expectation that Varex will
steadily reduce its currently very high leverage as the pandemic
ebbs, primarily reflecting a recovery in earnings.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if the company fails to improve
operating performance, free cash flow remains negative, or if
liquidity weakens. Further, failure to address internal controls,
or a more aggressive stance towards acquisitions or shareholder
returns would lead to a downgrade. Specifically, the ratings could
be downgraded if Varex fails to reduce adjusted debt to EBITDA
towards 6 times over the next 12-18 months.
Ratings could be upgraded if Varex grows earnings and free cash
flow such that adjusted debt to EBITDA is expected to be sustained
below 5 times. Improved customer diversity or a shift to a more
recurring revenue model could also support an upgrade.
The Speculative Grade Liquidity Rating of SGL-2 reflects Moody's
expectation that Varex will maintain good liquidity over the next
12-18 months, with no near-term debt maturities. Varex's liquidity
is supported by $110 million of cash at close of the refinancing
transaction. Moody's estimates that Varex's free cash flow will
improve materially (to at least $15 million in 2021) with earnings
growth and reduced corporate expenses. Liquidity is supported by a
new 5-year accounts receivable securitization facility (unrated)
that provides for borrowings of $100 million. This facility has a
1.0x fixed charge covenant tested when excess availability is less
than the greater of 10% of the Line Cap and $7.5 million. Moody's
expects the company to make minimal draws on this facility over the
next 12 months. Alternative sources of liquidity are limited as
substantially all assets are pledged.
Varex faces some degree of environmental risk due to the handling
of substances that are classified as toxic or hazardous materials.
From a governance standpoint, Varex has had internal control issues
that have resulted in delays in regulatory filing. Moody's regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.
The pandemic has had a material negative impact on Varex's
financial performance given the significant reduction in passenger
air travel and the temporary deferral of medical procedures and
wellness visits.
Varex is a manufacturer of a broad range of medical products, which
include X-ray imaging components (X-ray tubes, digital detectors,
image processing software and workstations) for use in a range of
applications, including radiographic or fluoroscopic imaging,
mammography, computed tomography, and oncology. The company also
manufactures imaging components for industrial end-users such as
airport security, cargo screening and nondestructive examination.
Varex generated revenue of $771 million in the trailing twelve
months to July 2020.
The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.
VERSANT HEALTH: Moody's Places B3 CFR on Review for Upgrade
-----------------------------------------------------------
Moody's Investors Service has placed Versant Health Holdco, Inc.'s
B3 corporate family rating, B2 senior secured bank facility and
Caa1 2nd lien term loan on review for upgrade, following a
September 17 announcement by MetLife, Inc. (A3 stable) that it
would acquire Versant for $1.675 billion in cash. Moody's has also
placed the Ba3 insurance financial strength rating of Superior
Vision Insurance, Inc., Versant's operating subsidiary, on review
for upgrade. Moody's expects Versant's debt to be paid off prior to
the deal closing, which is expected before year-end 2020.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
The review for upgrade reflects Versant's pending acquisition by
MetLife, one of the largest global insurance companies. Versant
would become part of the Group Benefits business, which is one of
the largest business lines for MetLife, offering life, dental,
group short- and long-term disability, individual disability,
accidental death and dismemberment, vision and accident and health
coverage, as well as prepaid legal plans. MetLife has holding
company liquidity of approximately $6.6 billion as of June 30,
2020.
Versant's ratings reflect the company's high leverage and limited
product diversification. As of June 30, debt-to-capital (with
Moody's adjustment) was 76% and debt-to-EBITDA 6.0x, which offsets
its relatively low risk operating model, good growth potential and
strong market position in the managed care vision space.
Upon closing of the deal by MetLife, Moody's expects to upgrade
Versant's ratings. If the deal does not occur a ratings upgrade
could occur if: 1) adjusted financial leverage as measured by
debt-to-capital with Moody's adjustments is sustained below 60%; 2)
adjusted debt-to-EBITDA is sustained below 6.5x; and 3) EBITDA
coverage and cash flow coverage of interest expense is sustained
above 3.0 (3-year weighted average).
If the deal does not occur, a downgrade could occur if: 1)
membership declines by 5% or more; 2) a sustained increase in
debt-to-EBITDA above 8.0x; 3) medical loss ratios increase above
80% on a sustained basis.
Versant Health Holdco, Inc. is headquartered in Linthicum,
Maryland. As of June 30, 2020, the company was the third largest
vision care company in the US with 34 million average covered
lives. Year-to-date revenues were $524 million.
Affected ratings
Issuer: Versant Health Holdco, Inc.
B3 corporate family rating, placed on review for upgrade
B2 first lien senior secured facility, placed on review for
upgrade
Caa1 second lien term loan, placed on review for upgrade
Issuer: Superior Vision Insurance, Inc.
Ba3 insurance financial strength rating, placed on review for
upgrade
Outlook actions
Issuer: Versant Health Holdco, Inc.
Outlook, changed to ratings under review from stable
Issuer: Superior Vision Insurance, Inc.
Outlook, changed to ratings under review from stable
The principal methodology used in these ratings was US Health
Insurance Companies Methodology published in November 2019.
VIVUS INC: U.S. Trustee Appoints Equity Committee
-------------------------------------------------
The U.S. Trustee for Regions 3 and 9 on Sept. 22, 2020, appointed a
committee to represent equity security holders in the Chapter 11
cases of Vivus, Inc. and its affiliates.
The committee members are:
1. Bruce Makosky
16196 Baan Siri Sukhumvit 10
Klongtoey, Bangkol 10110
Thailand
Phone: +66-86-069-7531
2. Esopus Creek Value Series Fund LP – Series "A"
Andrew L. Sole, Esq., Managing Member
Esopus Creek Advisors LLC as General Partner
81 Newtown Lane, #307
East Hampton, NY 11937
Phone: (631) 605-5776
3. Steven Chlavin
9663 Santa Monica Blvd., Suite 214
Beverly Hills, CA 90210
Phone: (310) 913-1558
About Vivus Inc.
Vivus Inc -- https://www.vivus.com/ -- is a biopharmaceutical
company committed to the development and commercialization of
innovative therapies that focus on advancing treatments for
patients with serious unmet medical needs. VIVUS has three approved
therapies and one product candidate in clinical development. Qsymia
(phentermine and topiramate extended release) is approved by FDA
for chronic weight management. The Company commercializes Qsymia
in the U.S. through a specialty sales force supported by an
internal commercial team and license the commercial rights to
Qsymia in South Korea. VIVUS was incorporated in 1991 in California
and reincorporated in 1996 in Delaware. As of the Petition Date,
VIVUS is a publicly traded company with its shares listed on the
Nasdaq Global Market LLC under the ticker symbol "VVUS." The
Company maintains its headquarters in Campbell, California.
Vivus Inc and three of its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Case No.
20-11779) on July 7, 2020. The petitions were signed by Mark Oki,
chief financial officer. Judge Laurie Selber Silverstein presides
over the cases.
As of May 31, 2020, Debtors reported total assets of $213,884,000
and total liabilities of $281,669,000.
The Debtors have tapped Weil Gotshal & Manges LP as their general
banruptcy counsel, Richards, Layton & Finger, P.A. as local
counsel, Ernst & Young as financial advisor, and Piper Sandler
Companies as investment banker. Stretto is the claims and noticing
agent.
[*] DSI Adds Four New Professionals to Offices Meet Demand
----------------------------------------------------------
Development Specialists, Inc., one of the leading turnaround
management and financial advisory firms in the United States, is
staffing up to meet an expected wave of business insolvencies due
to the COVID-19 pandemic. The company recently added four
financial professionals to its New York, Chicago and South Florida
offices.
"As government relief money starts to run out over the next month
or so, I think we'll see business insolvencies start to pile up and
need assistance reorganizing or winding down operations," said
Bradley Sharp, DSI President and CEO. "We are reacting to the
reality."
Yi Zhu joins DSI as a director in the New York Office. He has a
decade of experience in the restructuring industry and has worked
on high-profile matters including The Great Atlantic & Pacific Tea
Company (A&P) just prior to its' Chapter 11 bankruptcy filing.
Prior to joining DSI, Zhu worked at the Hina Group, based in
Beijing, China. He also held high-level roles with Price
Waterhouse Coopers, Deloitte Advisory and GlassRatner Advisory &
Capital. Mr. Zhu received his M.B.A. from the Columbia School of
Business, a master's degree from State University of New York at
Albany and an undergraduate degree from Fudan University in China.
The Chicago office added two associates, David Young and Gabria
Brenner. Mr. Young has a strong background in actuarial,
probability and financial mathematics. Prior to joining DSI, he
worked at XSell Technologies, an online platform that helps B2B
enterprises with organizational and financial matters. He holds an
undergraduate degree in actuarial science from Illinois State
University.
Ms. Brenner joins DSI from Grant Thornton in Chicago where she
gained experience in public accounting and finance as an Audit
Associate. She earned an accounting degree from Indiana
University's Kelly School of Business.
Richard Twaits joins the South Florida office as an Associate. He
has a background in public accounting and previously worked at
Grant Thornton in Miami where he served as a Senior Audit
Consultant. Mr. Twaits also held auditing roles at KPMG in New
York City and PwC in Orlando. He holds a degree in accounting from
Stetson University.
"I'd like to welcome all of these professionals to the DSI team,"
said Mr. Sharp. "Their experience and talents will help bolster our
current resources to help manage an influx of work we are already
starting to see from the fallout of the pandemic crisis."
About DSI
Development Specialists, Inc. (DSI) is one of the leading providers
of management consulting and financial advisory services, including
turnaround consulting, financial restructuring, litigation support,
fiduciary services and forensic accounting. Its clients include
business owners, private-equity investors, corporate boards,
financial institutions, secured lenders, bondholders and unsecured
creditors. For more than 40 years, DSI has been guided by a single
objective: maximizing value for all stakeholders. With our highly
skilled and diverse team of professionals, offices in the U.S. and
international affiliates and an unparalleled range of experience,
DSI has built a solid reputation as an industry leader.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Stephen Jairyun Jung
Bankr. C.D. Cal. Case No. 20-12611
Chapter 11 Petition filed September 16, 2020
represented by: Jaenam Coe, Esq.
In re G Wealth 88, Inc.
Bankr. E.D. Cal. Case No. 20-24356
Chapter 11 Petition filed September 16, 2020
See
https://www.pacermonitor.com/view/CVO5DYY/G_Wealth_88_Inc__caebke-20-24356__0001.0.pdf?mcid=tGE4TAMA
represented by: Stephen Reynolds, Esq.
REYNOLDS LAW CORPORATION
E-mail: sreynolds@lr-law.net
In re Source Direct Inc.
Bankr. M.D. Fla. Case No. 20-06975
Chapter 11 Petition filed September 16, 2020
See
https://www.pacermonitor.com/view/3ZEMPYA/Source_Direct_Inc__flmbke-20-06975__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re Airbrasive Jet Technologies, LLC
Bankr. D.N.J. Case No. 20-20625
Chapter 11 Petition filed September 16, 2020
See
https://www.pacermonitor.com/view/BFFNIOQ/Airbrasive_Jet_Technologies_LLC__njbke-20-20625__0001.0.pdf?mcid=tGE4TAMA
represented by: Wolfgang Heimerl, Esq.
HEIMERL LAW FIRM
E-mail: Wolfgang@HeimerlLawFirm.com
In re Valley Enterprises T.S. Inc
Bankr. C.D. Cal. Case No. 20-11684
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/CKZNSVY/Valley_Enterprises_TS_Inc__cacbke-20-11684__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re New Moon Orlando, LLC
Bankr. M.D. Fla. Case No. 20-05204
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/OBGWDYA/New_Moon_Orlando_LLC__flmbke-20-05204__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re R & H Machinery
Bankr. D. Hawaii Case No. 20-01089
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/F2HEMQA/R__H_Machinery__hibke-20-01089__0001.0.pdf?mcid=tGE4TAMA
represented by: Mark S. Kawata, Esq.
E-mail: mkawata@markskawata.com
In re Fitness Blueprint, LLC d/b/a The Foundry Chicago
Bankr. N.D. Ill. Case No. 20-17260
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/3DKFFFI/Fitness_Blueprint_LLC_dba_The__ilnbke-20-17260__0001.0.pdf?mcid=tGE4TAMA
represented by: Scott R. Clar, Esq.
CRANE, SIMON, CLAR & GOODMAN
E-mail: sclar@cranesimon.com
In re 4S Property Investments, LLC
Bankr. W.D. Mo. Case No. 20-60848
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/CW5KIMA/4S_Property_Investments_LLC__mowbke-20-60848__0001.0.pdf?mcid=tGE4TAMA
represented by: David E. Schroeder, Esq.
DAVID SCHROEDER LAW OFFICES, P.C.
E-mail: bk1@dschroederlaw.com
In re 4S Transportation, LLC
Bankr. W.D. Mo. Case No. 20-60850
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/5R4MDPQ/4S_Transportation_LLC__mowbke-20-60850__0001.0.pdf?mcid=tGE4TAMA
represented by: David E. Schroeder, Esq.
DAVID SCHROEDER LAW OFFICES, P.C.
E-mail: bk1@dschroederlaw.com
In re The Brookside Personal Care Home, Inc.
Bankr. M.D. Pa. Case No. 20-02740
Chapter 11 Petition filed September 17, 2020
See
https://www.pacermonitor.com/view/AVRQQMY/The_Brookside_Personal_Care_Home__pambke-20-02740__0001.0.pdf?mcid=tGE4TAMA
represented by: Cindy Boyle, Esq.
BRESSET & SANTORA, LLC
In re Walter G. Wright
Bankr. D. Vt. Case No. 20-10293
Chapter 11 Petition filed September 17, 2020
represented by: Todd Taylor, Esq.
In re Aleksandra Neva Kalinina
Bankr. D. Maine Case No. 20-10422
Chapter 11 Petition filed September 18, 2020
In re Walter Terry Frueh
Bankr. D. Ore. Case No. 20-62163
Chapter 11 Petition filed September 18, 2020
represented by: Michael O'Brien, Esq.
In re Armando Rene Figueroa De Jesus
Bankr. D.P.R. Case No. 20-03696
Chapter 11 Petition filed September 18, 2020
represented by: Charles Cuprill, Esq.
CHARLES A. CUPRILL LAW OFFICES P.S.C
In re Gabbidon Builders, LLC
Bankr. W.D.N.C. Case No. 20-30845
Chapter 11 Petition filed September 19, 2020
See
https://www.pacermonitor.com/view/YKDT6XY/Gabbidon_Builders_LLC__ncwbke-20-30845__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert Lewis, Jr., Esq.
THE LEWIS LAW FIRM, P.A.
E-mail: rlewis@thelewislawfirm.com
In re MD Williams Logging, LLC
Bankr. S.D. Ala. Case No. 20-12217
Chapter 11 Petition filed September 21, 2020
See
https://www.pacermonitor.com/view/NSL2XWI/MD_Williams_Logging_LLC__alsbke-20-12217__0001.0.pdf?mcid=tGE4TAMA
represented by: Barry A Friedman, Esq.
BARRY A FRIEDMAN & ASSOCIATES, PC
E-mail: bky@bafmobile.com
In re Pamela Louise Anyadike
Bankr. C.D. Cal. Case No. 20-18600
Chapter 11 Petition filed September 21, 2020
represented by: Oliver Olumba, Esq.
In re Richard Michael Glantz
Bankr. N.D. Cal. Case No. 20-30749
Chapter 11 Petition filed September 21, 2020
represented by: Gina Klump, Esq.
In re James Samatas
Bankr. N.D. Ill. Case No. 20-17355
Chapter 11 Petition filed September 21, 2020
represented by: Marvin Miller, Esq.
In re Matthew Joseph Morris
Bankr. M.D. La. Case No. 20-10656
Chapter 11 Petition filed September 21, 2020
In re The Greek Chefs, Inc.
Bankr. E.D.N.Y. Case No. 20-72992
Chapter 11 Petition filed September 21, 2020
See
https://www.pacermonitor.com/view/3DTKSHI/The_Greek_Chefs_Inc__nyebke-20-72992__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence F. Morrison, Esq.
MORRISON TENENBAUM, PLLC
E-mail: info@m-t-law.com
In re Amerson Investment, LLC
Bankr. M.D.N.C. Case No. 20-10732
Chapter 11 Petition filed September 21, 2020
See
https://www.pacermonitor.com/view/MJV5EYQ/Amerson_Investment_LLC__ncmbke-20-10732__0001.0.pdf?mcid=tGE4TAMA
represented by: Erik M. Harvey, Esq.
BENNETT GUTHRIE PLLC
E-mail: EHarvey@Bennett-Guthrie.com
In re Farmacia Nueva Borinquen, Inc.
Bankr. D.P.R. Case No. 20-03715
Chapter 11 Petition filed September 21, 2020
See
https://www.pacermonitor.com/view/QNNNQ6I/FARMACIA_NUEVA_BORINQUEN_INC__prbke-20-03715__0001.0.pdf?mcid=tGE4TAMA
represented by: Nilda Gonzalez Cordero, Esq.
NILDA GONZALEZ CORDERO
E-mail: ngonzalezc@ngclawpr.com
In re B&R Systems, Inc. d/b/a Salt & Light, LLC
Bankr. N.D. Ala. Case No. 20-02975
Chapter 11 Petition filed September 22, 2020
See
https://www.pacermonitor.com/view/BZWB2SI/BR_Systems_Inc_dba_Salt__Light__alnbke-20-02975__0001.0.pdf?mcid=tGE4TAMA
represented by: Walter F. McArdle, Esq.
SPAIN & GILLON, LLC
E-mail: wmcardle@spain-gillon.com
In re The Foot and Ankle Center of Colorado, P.C.
Bankr. D. Colo. Case No. 20-16282
Chapter 11 Petition filed September 22, 2020
See
https://www.pacermonitor.com/view/KPMLWOI/The_Foot_and_Ankle_Center_of_Colorado__cobke-20-16282__0001.0.pdf?mcid=tGE4TAMA
represented by: Bonnie Bell Bond, Esq.
LAW OFFICE OF BONNIE BELL BOND, LLC
E-mail: bonnie@bellbondlaw.com
In re Caruso and Miles, Ltd.
Bankr. N.D. Ill. Case No. 20-17405
Chapter 11 Petition filed September 22, 2020
See
https://www.pacermonitor.com/view/MQEDDBQ/Caruso_and_Miles_Ltd__ilnbke-20-17405__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert R. Benjamin, Esq.
GOLAN CHRISTIE TAGLIA LLP
E-mail: rrbenjamin@gct.law
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***