/raid1/www/Hosts/bankrupt/TCR_Public/201123.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, November 23, 2020, Vol. 24, No. 327
Headlines
1008 3RD AVE: Case Summary & 2 Unsecured Creditors
24 HOUR FITNESS: Plan Exclusivity Extended to February 10
ACASTI PHARMA: Incurs $6.1 Million Net Loss in Second Quarter
AIR FLORIDA: Seeks to Hire Bartolone Law as Counsel
ALLEN AND SCOTT: Case Summary & 20 Largest Unsecured Creditors
ALTERRA MOUNTAIN: S&P Affirms 'B' ICR; Outlook Negative
AMNEAL PHARMACEUTICALS: S&P Alters Outlook to Stable
ANDES INDUSTRIES: Snell, Hagens Update List of Investors
APTEAN INC: Moody's Affirms B3 CFR, Outlook Stable
BA 98 LOVE LANE: Case Summary & 7 Unsecured Creditors
BAUSCH HEALTH: S&P Rates $1.75BB Multi-Tranche Unsecured Notes 'B'
BECK & CHASE: Hires Curd Galindo as Counsel
BENJA INCORPORATED: Trustee Hires Finestone Hayes as Counsel
BRAUN EVENTS: Seeks to Hire Golding Law Offices as Legal Counsel
CARVER BANCORP: Posts $809K Net Loss in Second Quarter
CBAK ENERGY: Creditor Agrees to Swap $11.2 Million Debt for Equity
CBAK ENERGY: Posts $42K Net Income in Third Quarter
CHARGING BEAR: Hires Douglas N. Gould as Attorney
CHESAPEAKE ENERGY: Hires Shearman & Sterling as Special Counsel
CHESAPEAKE ENERGY: Sells Oklahoma Assets to Tapstone in Auction
CLEAN ENERGY: Case Summary & 20 Largest Unsecured Creditors
CNC PUMA: Case Summary & 20 Largest Unsecured Creditors
CNO FINANCIAL: S&P Assigns 'BB' Rating to New Subordinated Debt
COMMUNITY PROVIDER: PCO Taps Resnik Hayes as Bankruptcy Counsel
COTY INC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
COVIA HOLDINGS: Porter, Paul 2nd Update on Term Lender Group
CREATD INC: Needs Sufficient Revenues to Stay as Going Concern
DASHING PROPERTIES: Gets OK to Hire Raymond H. Aver as Counsel
DE'ANGELEO REVOCABLE: Hires Stonepoint as Real Estate Broker
DIAMOND J FARMS: Voluntary Chapter 11 Case Summary
DIOCESE OF CAMDEN: Arthur J. Abramowitz Updates on Saint Joseph
DOLPHIN ENTERTAINMENT: Incurs $138K Net Loss in Third Quarter
DPW HOLDINGS: Incurs $16.7 Million Net Loss in Third Quarter
ETHEMA HEALTH: Incurs $10.2 Million Net Loss in Third Quarter
EXACTUS INC: Incurs $3.1 Million Net Loss in Third Quarter
FANCHEST INC: Seeks to Hire Offit Kurman as Attorney
FREEPORT-MCMORAN INC: S&P Affirms 'BB' ICR; Outlook Positive
FUSE MEDIA: Sold to Latino Group, Is In Post-Bankruptcy Reset
GARRETT MOTION: Gibson Dunn Updates List of First Lien Group
GLOBAL ACQUISITIONS: Gets Court Approval to Hire Appraiser
GLOBAL HEALTHCARE: Posts $1.1 Million Net Income in Second Quarter
GULFPORT ENERGY: Paul, Porter Represent Noteholders Group
HARVEY OST OILFIELD: Case Summary & 20 Largest Unsecured Creditors
HEALTHIER CHOICES: Incurs $1.30 Million Net Loss in Third Quarter
HERTZ CORPORATION: Creditors' Committee Members Disclose Claims
HOUSE ISLAND NORTH: Voluntary Chapter 11 Case Summary
IMPRESA HOLDINGS: Committee Gets OK to Hire Buchalter as Counsel
IMPRESA HOLDINGS: Committee Gets OK to Hire Financial Advisor
IMPRESA HOLDINGS: Committee Hires Burr & Forman as Delaware Counsel
INNOVATION PET: Case Summary & 19 Unsecured Creditors
IOLA LIVING: Hires Alliance Appraisal as Appraiser
JACKSAM CORP: Needs to Achieve Profit to Stay as Going Concern
JAGUAR HEALTH: Incurs $7.87 Million Net Loss in Third Quarter
JAGUAR HEALTH: Says Substantial Going Concern Doubt Exists
JET SALES: Case Summary & 20 Largest Unsecured Creditors
JONES SODA: Reports $450K Net Loss for Quarter Ended Sept. 30
K&W CAFETERIAS: Seeks to Hire Leonard Ryden as Broker
KOPIN CORP: Has $969,000 Net Loss for the Quarter Ended Sept. 26
LIVEXLIVE MEDIA: Incurs $10.2 Million Net Loss in Second Quarter
MALLINCKRODT PLC: Robbins, Sullivan Represent First Lien Group
MARIANINA OIL: Hires Zarin & Steinmetz as Special Counsel
MEADE INSTRUMENTS: Seeks to Hire Co-Special Litigation Counsel
MGM GROWTH: S&P Rates New $500MM Senior Unsecured Notes 'BB-'
NINE ENERGY: S&P Upgrades ICR to 'CCC'; Outlook Negative
OASIS PETROLEUM: Emerges From Chapter 11 Bankruptcy
PACKERS HOLDINGS: S&P Affirms 'B-' ICR on Debt Add-Ons, Dividend
PRIMARIS HOLDINGS: Case Summary & 11 Unsecured Creditors
PROFESSIONAL INVESTORS 23: Involuntary Chapter 11 Case Summary
PROFESSIONAL INVESTORS 30: Involuntary Chapter 11 Case Summary
PROFESSIONAL INVESTORS 34: Involuntary Chapter 11 Case Summary
PROFESSIONAL INVESTORS 35: Involuntary Chapter 11 Case Summary
PROFESSIONAL INVESTORS 46: Involuntary Chapter 11 Case Summary
PROPULSION ACQUISITION: S&P Affirms 'CCC+' ICR; Outlook Stable
RE/MAX LLC: S&P Alters Outlook to Stable, Affirms 'BB' ICR
SERVICE PROPERTIES: S&P Rates Guaranteed Note Issuance 'BB'
SHEA 92: Voluntary Chapter 11 Case Summary
SOMERSET ACADEMY: S&P Affirms 'BB' Rating on Lease Revenue Bonds
SOMERSET ACADEMY: S&P Affirms BB Rating on Education Revenue Bonds
SUNOPTA INC: S&P Upgrades ICR to 'B-' on Improving Cost Structure
VICTORIA TOWERS: Hires Rosen & Kantrow as Attorney
WC 4811 SOUTH: Hires Columbia Consulting as Financial Advisor
WC 8120 RESEARCH: Hires Columbia Consulting as Financial Advisor
WC SOUTH CONGRESS: Hires Columbia Consulting as Financial Advisor
WC TEAKWOOD: Hires Columbia Consulting as Financial Advisor
WESTERN URANIUM: CFO Gets $150K Annual Salary Under New Contract
WILSON'S TRUCKING: Gets Court Approval to Hire Special Counsel
[^] BOND PRICING: For the Week from November 16 to 20, 2020
*********
1008 3RD AVE: Case Summary & 2 Unsecured Creditors
--------------------------------------------------
Debtor: 1008 3rd Ave, LLC
2019 Villa Dr, 203
Bay Point, CA 94565
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
Northern District of California
Case No.: 20-41809
Debtor's Counsel: E. Vincent Wood, Esq.
THE LAW OFFICES OF E. VINCENT WOOD
1501 N. Broadway, Suite 261
Walnut Creek, CA 94596
Tel: (925) 278-6680
Fax: (925) 955-1655
Email: vince@woodbk.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Daryl Sibbitt, president.
A copy of the petition containing, among other items, a list of the
Debtor's two unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QUIYCJA/1008_3rd_Ave_LLC__canbke-20-41809__0001.0.pdf?mcid=tGE4TAMA
24 HOUR FITNESS: Plan Exclusivity Extended to February 10
---------------------------------------------------------
At the behest of 24 Hour Fitness Worldwide, Inc. and its
affiliates, the Honorable Karen B. Owens extended the periods
within which the Debtors have the exclusive right to file a plan
through and including February 10, 2021, and to solicit acceptances
for the chapter 11 plan to and including April 13, 2021.
The Debtors said they have worked tirelessly to rationalize their
lease portfolio, obtain DIP financing to fund these cases, and file
a Plan and Disclosure Statement, which is supported by substantial
majorities of the Debtors' DIP Lenders and Holders of Prepetition
Credit Facility Claims and Senior Notes Claims. Since the Petition
Date, the Debtors have also worked with their real estate advisor,
Hilco Real Estate, LLC, to analyze their club footprint and
determine which of their leases should be assumed or rejected
pursuant to section 365 of the Bankruptcy Code. As a result of this
ongoing analysis, the Debtors have rejected approximately 176
leases in accordance with procedures approved by the U.S.
Bankruptcy Court for the District of Delaware.
Due to the worldwide pandemic, the Debtors said they need to
approach their reorganization with flexibility and creativity to
ensure effective and efficient administration of their estates as
the Debtors seek to emerge from chapter 11 as quickly as possible.
Despite the challenges presented by the COVID-19 pandemic, the
Debtors have made meaningful strides toward achieving their stated
objective of administering these chapter 11 cases, but much work
remains to be done. In particular, the Debtor's proposed hearing on
Plan confirmation is requested to commence in December of 2020.
In addition, the Debtors' debt structure reflects the operational
complexity. The Debtors' prepetition balance sheet includes
approximately $1.4 billion in funded debt spread across multiple
credit facilities and stakeholders, including $930.3 million in
principal amount outstanding under a Prepetition Credit Facility
and $500 million in principal amount of unsecured Senior Notes. The
Debtors have been actively negotiating with the ad hoc group of
holders of indebtedness under the Prepetition Credit Facility and
the Senior Notes Indenture and have reached a consensus to support
the Debtors' Plan, as set forth in a Restructuring Support
Agreement.
The Debtors are working to resolve and reconcile any creditor
requests for payment of post-petition administrative expenses. The
Debtors' DIP Financing, along with the Debtors' cash proceeds
generated from operations, provide sufficient liquidity to pay
their administrative expenses as they come due in accordance with
the Final DIP Order -- including during the requested extension of
the Exclusive Periods. The Debtors expect to continue to pay all
ongoing ordinary-course expenses or have made arrangements for the
payment of such expenses under the Plan, in accordance with the
Final DIP Order.
About 24 Hour Fitness Worldwide
24 Hour Fitness Worldwide, Inc., owns and operates fitness centers
in the United States. As of March 31, 2017, the company operated
426 clubs serving approximately 3.6 million members across 13
states and 23 markets, predominantly in California, Texas, and
Colorado. For the 12 months ended March 31, 2017, the company
generated total revenue of about $1.4 billion. In May 2014, 24 Hour
Fitness was acquired by affiliates of AEA Investors LP, Fitness
Capital Partners, and Ontario Teachers' Pension Plan for a total
purchase price of approximately $1.8 billion.
24 Hour Fitness Worldwide and its affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 20-11558) on June 15,
2020. 24 Hour Fitness was estimated to have $1 billion to $10
billion in assets and liabilities as of the bankruptcy filing.
The Honorable Karen B. Owens is the case judge. The Debtors tapped
Weil, Gotshal & Manges, LLP as lead bankruptcy counsel; Pachulski
Stang Ziehl & Jones, LLP as local counsel; FTI Consulting, Inc. as
financial advisor; Lazard Freres & Co. LLC as investment banker;
and Prime Clerk, LLC as claims agent.
ACASTI PHARMA: Incurs $6.1 Million Net Loss in Second Quarter
-------------------------------------------------------------
Acasti Pharma Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
and comprehensive loss of $6.15 million for the three months ended
Sept. 30, 2020, compared to a net loss and comprehensive loss of
$21.16 million for the three months ended Sept. 30, 2019.
For the six months ended Sept. 30, 2020, the Company reported a net
loss and comprehensive loss of $10.81 million compared to a net
loss and comprehensive loss of $30 million for the six months ended
Sept. 30, 2019.
As of Sept. 30, 2020, the Company had $13.83 million in total
assets, $4.96 million in total liabilities, and $8.87 million in
total shareholders' equity.
R&D expenses before depreciation, amortization and stock-based
compensation expenses were $0.8 million for the three months ended
Sept. 30, 2020, compared to $3.3 million for the three months ended
Sept. 30, 2019. The net decrease was mainly attributable to a
reduction in salaries and research contracts with the reduction in
R&D activities.
General and administrative expenses before stock-based compensation
expenses were $1.1 million for the three months ended Sept. 30,
2020, compared to $1.1 million for the three months ended Sept. 30,
2019. This reflects a $0.27 million increase related to legal fees
related offset by a decrease of $0.23 million related to salaries,
due to a reversal of bonus accruals.
Sales and marketing expenses before stock-based compensation
expenses were $0.02 million for the three months ended Sept. 30,
2020, compared to $0.66 million for the three months ended Sept.
30, 2019. The decrease was mostly due to a reduction in
professional fees as a result of a reclassification of professional
and other expenses to R&D.
Cash and cash equivalents totaled $11.6 million as of Sept. 30,
2020, compared to $14.2 million at March 31, 2020. Acasti believes
that existing cash will fully fund the Company's operations through
the second calendar quarter of 2021 or through to an eventual
completion of the evaluation of strategic options, but there can be
no assurance as to when or whether Acasti will complete any
strategic transaction, collaboration or non-dilutive financings. If
the Company cannot raise additional funds or find one or more
strategic partners, it may not be able to realize its assets and
discharge its liabilities in the normal course of business. As a
result, there exists substantial doubt about the Company's ability
to continue as a going concern, and therefore, realize its assets
and discharge its liabilities in the normal course of business.
Going Concern
The Corporation has incurred operating losses and negative cash
flows from operations since its inception. The Corporation's
current assets of $13.7 million as at Sept. 30, 2020 include cash
and cash equivalents totaling $11.5 million. The Corporation's
current liabilities total $3.8 million at Sept. 30, 2020 and are
comprised primarily of amounts due to or accrued for creditors.
The Corporations ability to continue as a going concern for the
next twelve months from the issuance of the financial statements is
dependent upon its ability to achieve a successful strategic
alternative and ultimately generate cashflows to meet its
obligations.
The Company said, "Due to the failure of the Corporation's Phase 3
clinical studies to meet its primary endpoints, and the resulting
decision not to file an NDA to obtain FDA approval for CaPre, the
Corporation has commenced a formal process to explore and evaluate
strategic alternatives to enhance shareholder value, which is
currently the focus of the Corporation's activities. There is no
assurance that a strategic transaction will be consummated as such
transaction is not within the Corporation's control. Management
plans to reduce operating expenses including workforce reductions,
while they evaluate these opportunities. As a result, there is a
substantial doubt about the Corporation's ability to continue as a
going concern."
Hires Financial Advisor
On Sept. 29, 2020, the Company announced that it had engaged
Oppenheimer & Co. Inc. as its financial advisor to assist in the
strategic review process. Potential strategic alternatives that
may be explored or evaluated as part of this review include, but
are not limited to, a merger, business combination or other
strategic transaction involving Acasti and/or CaPre. There is no
defined timeline for completion of the review process.
Reduction in Headcount
The Company initiated a plan in September 2020 to reduce personnel
and expenses to preserve cash and further reduce its operations
consistent with the decision to discontinue substantially all
commercialization and research and development activities. The
Company expects to devote significant time and resources to
identifying and evaluating strategic alternatives, however, there
can be no assurance that such activities will result in any
agreements or transactions that will enhance shareholder value.
Jan D'Alvise, chief executive officer of Acasti, commented, "We
remain committed to maximizing value for our shareholders, and as
previously disclosed, we are actively exploring and evaluating a
range of strategic options. We have also taken a number of
proactive steps to preserve our cash by reducing staff,
discontinuing all commercialization activities and putting R&D
activities on hold. This has resulted in certain one-time and
non-cash charges as reflected in our financial statements this
quarter. While we continue to pursue strategic alternatives, we
plan to complete the full data analyses for TRILOGY as contemplated
in the Statistical Analysis Plan, including the pooling of the data
from TRILOGY 1 and 2. As previously disclosed, we plan to provide
an update on the final TRILOGY data when feasible."
Retention Agreements
In connection with its strategic review process, the Company also
announces that, upon the recommendation of the Governance and Human
Resources Committee of the board of directors, it has entered into
retention incentive agreements with Ms. Jan D'Alvise, the Company's
president and chief executive officer, and Mr. Pierre Lemieux, the
Company's chief operating officer and chief scientific officer.
The Retention Agreements provide that the Company will pay Ms.
D'Alvise an employment retention incentive of US $100,000 provided
that she remains employed with the Company until the earlier of
April 30, 2021 or the closing of a merger or like transaction with
a third party.
In addition, the Retention Agreements also provide that the Company
will pay each of Ms. D'Alvise and Mr. Lemieux an amount of up to
US$125,000 in the event that certain milestones are met in relation
to the monetization by the Company of its assets relating to the
Company's drug candidate, CaPre.
The Company also announces the upcoming departure of Mr. Brian
Groch, its chief commercial officer, from his position with the
Company effective Dec. 31, 2020, until which date he is continuing
in his role with Acasti. The Company would like to thank Mr. Groch
for his contributions to the Company and wishes him well in his
future endeavors.
NASDAQ Minimum Bid Price Rule
On Feb. 28, 2020, Acasti received written notification from the
NASDAQ Listing Qualifications Department for failing to maintain a
minimum bid price of $1.00 per share for the preceding 30
consecutive business days, as required by NASDAQ Listing Rule
5550(a)(2) – bid price. Under NASDAQ Listing Rule 5810(c)(3)(A)
- compliance period, Acasti initially had 180 calendar days to
regain compliance.
On April 17, 2020, Acasti was informed that NASDAQ had granted
temporary regulatory relief related to the Minimum Bid Price Rule
due to the COVID-19 pandemic for all NASDAQ-listed companies and
therefore extended the deadline for Acasti to regain compliance to
Nov. 9, 2020.
On Nov. 11, 2020, Acasti was further informed that NASDAQ had
granted an additional 180 calendar days, or until May 10, 2021, for
Acasti to regain compliance with the Minimum Bid Price Rule.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1444192/000117184320008002/f10q_111620p.htm
About Acasti Pharma
Acasti -- http://www.acastipharma.com/-- is a biopharmaceutical
innovator that has historically focused on the research,
development and commercialization of prescription drugs using OM3
fatty acids delivered both as free fatty acids and
bound-to-phospholipid esters, derived from krill oil. OM3 fatty
acids have extensive clinical evidence of safety and efficacy in
lowering triglycerides in patients with hypertriglyceridemia, or
HTG. CaPre, an OM3 phospholipid therapeutic, was being developed
for patients with severe HTG.
Acasti reported a net loss and total comprehensive loss of $25.51
million for the year ended March 31, 2020, compared to a net loss
and total comprehensive loss of $39.37 million for the year ended
March 31, 2019. As of June 30, 2020, Acasti had $20.14 million in
total assets, $9.11 million in total liabilities, and $11.04
million in total shareholders' equity.
KPMG LLP, in Montreal, Canada, the Company's auditor since 2009,
issued a "going concern" qualification in its report dated June 29,
2020, citing that the Corporation has incurred operating losses and
negative cash flows from operations since its inception, and
additional funds will be needed in the future that raise
substantial doubt about its ability to continue as a going concern.
AIR FLORIDA: Seeks to Hire Bartolone Law as Counsel
---------------------------------------------------
Air Florida Helicopter Charters, Inc., seeks authority from the
U.S. Bankruptcy Court for the Middle District of Florida to employ
Bartolone Law, PLLC, as counsel to the Debtor.
Air Florida requires Bartolone Law to:
(a) advise as to the Debtor's rights and duties in this case;
(b) prepare pleadings related to this case, including a
disclosure statement and a plan of reorganization; and
(c) take any and all other necessary action incident to the
proper preservation and administration of this estate.
Bartolone Law will be paid at these hourly rates:
Attorneys $375
Paraprofessionals $125
On November 10, 2020, the Debtor paid Bartolone Law in the amount
of $7,500.
Bartolone Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Aldo G. Bartolone, a partner of Bartolone Law, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Bartolone Law can be reached at:
Aldo G. Bartolone, Jr.
BARTOLONE LAW, PLLC.
1030 N. Orange Ave., Suite 300
Orlando, FL 32801
Tel: (407) 294-4440
Fax: (407) 287-5544
E-mail: aldo@bartolonelaw.com
About Air Florida Helicopter Charters
Air Florida Helicopter Charters, Inc., filed a Chapter 11
bankruptcy petition (Bankr. M.D. Fla. Case No. 20-05967) on Oct.
23, 2020. The Debtor hired Bartolone Law, PLLC, as counsel.
ALLEN AND SCOTT: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Allen and Scott Enterprises, Inc.
d/b/a All Terrain Landscaping and Snow Management
d/b/a Allen & Scott Enterprises
d/b/a All Terrain Landscape and Snow Management, LLC
d/b/a Allen & Scott
136 Casco Drive
Avon, IN 46123
Case No.: 20-06420
Business Description: Allen and Scott Enterprises, Inc. --
https://www.allterrainlandscape.com --
specializes in commercial and residential
services, including but not limited to,
commercial grounds maintenance and
residential turf care.
Chapter 11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Southern District of Indiana
Judge: Hon. James M. Carr
Debtor's Counsel: Jeffrey Hester, Esq.
HESTER BAKER KREBS LLC
One Indiana Sq Suite 1330
Indianapolis, IN 46204
Tel: 317-833-3030
Email: jhester@hbkfirm.com
Debtor's
Accountant: BOGARD CPA ACCOUNTING
Total Assets: $955,359
Total Liabilities: $2,393,228
The petition was signed by D. Craig Thompson, authorized
representative.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/LVBQONQ/Allen_and_Scott_Enterprises_Inc__insbke-20-06420__0001.0.pdf?mcid=tGE4TAMA
ALTERRA MOUNTAIN: S&P Affirms 'B' ICR; Outlook Negative
-------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on Alterra
Mountain Co. because it believes the negative effects of the
pandemic will mostly be limited to the upcoming 2020/2021 ski
season. Specifically, S&P anticipates that its visitation and
consumer ancillary spending could normalize by the 2021/2022 ski
season if an effective vaccine is widely disseminated by mid-2021.
S&P also revised its recovery rating on the company's first-lien
credit facilities, which comprise a $450 million revolver due 2022,
a term loan B due 2024 (approximately $1.718 billion outstanding as
of October 2020), and a $400 million term loan B-2 due 2026, to '4'
(45%) from '3' (50%) because it expects weaker recovery prospects
for the company's secured lenders following its issuance of the
proposed $250 million term loan add-on. The rating agency also
affirmed its 'B' issue-level rating on this debt.
At the same time, S&P assigned its 'B' issue-level rating and '4'
recovery rating to the proposed $250 million term loan B add-on due
2026.
S&P said, "The negative outlook reflects the possibility that we
could lower our rating on Alterra if the pandemic's effects on the
upcoming 2020/2021 ski season are worse than we currently assume or
if we believe the company will unexpectedly burn cash in its full
fiscal year 2021. We could also lower the rating if prolonged
COVID-19 related restrictions or closures, leveraging acquisitions,
or other leveraging uses of cash lead us to believe that its
leverage will remain above our mid-7x downgrade threshold in fiscal
year 2022."
"We expect consumer concerns related to COVID-19 and restrictions
on travel, indoor activities, and ski resort capacity to reduce
Alterra's revenue in fiscal year 2021 and cause its leverage to
rise well above our mid-7x downgrade threshold. However, we have
affirmed our 'B' issuer credit rating because our base-case
scenario assumes that the company's leverage improves below our
downgrade threshold in fiscal year 2022 if there is a successful
widespread dissemination of a vaccine in mid-year 2021. Our
revised base case assumes the company's total lease adjusted debt
to EBITDA will be very high in fiscal year 2021 and that it will
materially reduce its leverage in fiscal year 2022 if the
conditions in the 2021/2022 season normalize and the company uses
excess cash to prepay its debt. We are willing to look out to
fiscal 2022 ending July for Alterra to restore credit measures
because we assume the negative effects of the pandemic on the
company's business in the upcoming 2020/2021 ski season will be
mostly temporary. In addition, we do not anticipate Alterra will
use its excess cash to make opportunistic leveraging acquisitions
or other leveraging transactions or that it will materially burn
through its cash balances."
"We downwardly revised our base-case assumptions for the company's
revenue and EBITDA in fiscal year 2021 and now expect a 10%-15%
decline relative to its performance in fiscal year 2020 because of
reduced ski visitation, a significant drop in visitation in its
high-margin CMH segment, limited consumer spending on ancillary
revenue categories like food and beverage, and an effective ticket
price (ETP) approximately 15% below its high fiscal-year 2020 ETP.
Alterra's fiscal-year 2020 ticket pricing was artificially elevated
due to an early end to the 2019/2020 ski season in response to the
COVID-19 pandemic, which pushed down per-pass visitation relative
to historical levels while its pass sales remained at normal
levels. Even though we anticipate the company's revenue will
decline, we assume higher ski visitation in fiscal year 2021
compared with fiscal year 2020 under our base-case forecast because
we believe its resorts will remain open for the entire ski season
(compared to being closed for a portion of the previous fiscal
year) and it will experience average snowfall across its resort
footprint. Accordingly, any temporary closure of its ski resorts
during the 2020/2021 ski season would negatively affect Alterra's
ability to reduce its leverage to the mid-7x area by fiscal year
2022 and could lead us to lower our rating."
"We assume visitation at the company's destination resorts
(including Deer Valley and Steamboat) will be below the portfolio
average because of reduced air travel and potential travel
restrictions and that revenue at its Canadian CMH heli-skiing
business will be very low because the Canadian border is closed to
travelers from the U.S. We expect Alterra's fiscal-year 2021 EBITDA
margin will decline relative to 2019 because the average spend per
visitor will likely be lower at regional and drive-to resorts than
at destination resorts. We also anticipate lower ancillary revenue
from its limited high-margin service offerings, including ski
school, lodging, and food and beverage sales. This is despite our
assumption that ski visitation will expand in fiscal year 2021
because resorts were closed for a portion of fiscal year 2020,
which enables an easy year-over-year comparison. We expect
Alterra's ski visitation to rise by 3%-5% and we assume its ticket
pricing increases modestly in fiscal year 2022. We also expect some
margin expansion in fiscal year 2022 because the company will be
able to operate for the full ski season and we believe its
ancillary sales will increase in the absence of COVID-19
restrictions, resulting in leverage in the mid-6x area."
"We believe that the company has enough liquidity to weather its
reduced revenue in the 2020/2021 ski season even if it is
unexpectedly required to shut down all of its resorts because of
COVID-19 mitigation efforts. Pro forma for the $250 million term
loan B add-on, we expect Alterra to have full availability under
its $450 million revolving credit facility and approximately $820
million in cash. We estimate that this amount of liquidity would be
more than sufficient to cover its cash burn if it is unexpectedly
required to suspend some or all of its operations for the 2020/2021
ski season. We also believe that Alterra is unlikely to use its
cash balances to prepay debt in fiscal year 2021 under our revised
base-case scenario. Furthermore, we believe it is unlikely that the
company will choose to reduce its liquidity until the pandemic has
subsided and it is confident its visitation and operations will
recover. Therefore, we do not net the $650 million of cash Alterra
raised in response to the COVID-19 pandemic against its debt in our
calculations. Given we assume operations will recover significantly
in fiscal year 2022, we also believe it will use its excess cash to
prepay debt and reduce its leverage in fiscal year 2022."
"Our negative outlook on Alterra reflects the significant risk to
its revenue, EBITDA, and cash flow in fiscal year 2021 because of
the ongoing COVID-19 pandemic and the growing number of cases in
the U.S. It also incorporates our expectation that the company's
credit measures will be weak for the current rating until fiscal
year 2022. While our base-case forecast assumes the company will
not close any resorts, significant uncertainty exists around how
the federal government and state governments will react over the
next several weeks and months to the rising level of COVID-19 cases
throughout the U.S. If we come to believe resort closures are
likely, reduced ski visitation will materially reduce Alterra's
revenue and cash flow relative to our base-case forecast and cause
it to generate negative free cash flow, or that it is unlikely to
use the incremental $650 million of cash it added to its balance
sheet to repay debt, we would likely lower our issuer credit
rating. Additionally, while we believe that one or multiple
COVID-19 vaccines will likely be successfully disseminated before
the 2021/2022 ski season, we could consider downgrading the company
if we anticipate that lingering negative economic headwinds from
the COVID-19 pandemic will lead to reduced ski visitation, revenue,
EBITDA, and cash flow generation in fiscal year 2022."
Elevated consumer demand for outdoor entertainment options
perceived as safe and compatible with social distancing could lead
to increased visitation at Alterra's regional and drive-to resorts,
which account for the majority of its portfolio.
S&P said, "We believe that consumers may perceive skiing as a safer
alternative to other out-of-home entertainment options because of
the outdoor nature of the sport and the typical use of masks.
Therefore, despite the company's inability to offer certain
amenities and ancillary services, we believe the headwinds
effecting the ski industry and Alterra in the 2020/2021 ski season
may be moderate compared with those facing other out-of-home
entertainment options. Also, at least over the next several
quarters, we believe that consumer demand for flights and a
reduction in available flight routes will likely lead to greater
demand for regional and drive-to resorts than destination fly-to
resorts as long as interstate travel is not further restricted over
the next few months. Alterra's revenue mix is weighted towards
regional and drive-to resorts, which we view as favorable amid the
COVID-19 pandemic as well as in a recessionary environment."
"The negative outlook reflects the possibility that we could lower
our rating on Alterra if the pandemic's effects on the upcoming
2020/2021 ski season are worse than we currently assume or if we
believe the company will unexpectedly burn cash in its full fiscal
year 2021. We could also lower the rating if prolonged COVID-19
related restrictions or closures, leveraging acquisitions, or other
leveraging uses of cash lead us to believe that its leverage will
remain above our mid-7x downgrade threshold in fiscal year 2022."
"We could lower our rating on Alterra if we believe that a weaker
2020/2021 ski season will lead to elevated cash burn, or leveraging
acquisitions or other transactions would cause its total lease
adjusted leverage to rise above our mid-7x downgrade threshold in
fiscal year 2022. Given that we do not net its cash in our adjusted
leverage calculation, we could also lower our rating if its
leverage remains above the mid-7x area because the company fails to
repay term loan debt with excess cash in 2022."
"It is unlikely that we will revise our outlook on Alterra for the
duration of the pandemic. However, we could revise our outlook to
stable if we are reasonably certain the company's operations will
recover according to our base-case assumptions and believe it will
use its excess cash to prepay its large term loan balances.
Specifically, we could raise our rating by one notch or more if we
believe Alterra will likely sustain lease-adjusted debt to EBITDA
of less than 6x."
AMNEAL PHARMACEUTICALS: S&P Alters Outlook to Stable
----------------------------------------------------
S&P Global Ratings affirmed its ratings on Bridgewater, N.J.-based
Amneal Pharmaceuticals LLC, including the 'B' long-term corporate
credit rating, and revised the outlook to stable from negative.
S&P said, "The outlook revision reflects our greater confidence
that Amneal will have adjusted debt to EBITDA in the 7.5x area for
2020 and generate free cash flow in the $105 million area (free
cash flow to debt greater than 3%). This is a material improvement
from Amneal's 2019 operating results, including adjusted debt to
EBITDA of 8.5x and a free cash flow deficit of nearly $100 million.
Results in 2020 are stronger than 2019 from the launch of eight
complex generics since the second half of 2019 and some cost
cutting. Notably, Amneal captured a first-to-market opportunity
with EluRyng, a generic for NuvaRing, after several quarters of
delays."
"Our stable outlook on Amneal reflects our expectation for
low-single-digit-percent revenue growth and improving EBITDA margin
from launching new products and some cost cutting. We expect
adjusted debt to EBITDA in 6.5x-7.5x range in 2020 and 2021."
"We could consider a lower rating if Amneal's leverage weakens
above 8x and its free-cash-flow-to-debt ratio weakens below 2.5%.
This is a tighter trigger than before because this scenario would
indicate repeated underperformance."
"We could consider a higher rating for Amneal if we expect adjusted
debt to EBITDA to remain below 5x driven by new products launches
and supported by a pipeline of potential future launches. In this
scenario, we would expect Amneal's publicly stated financial policy
to support sustained lower leverage."
ANDES INDUSTRIES: Snell, Hagens Update List of Investors
--------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Snell & Wilmer L.L.P. and Hagens Berman Sobol
Shapiro LLP submitted a supplemental verified statement to disclose
an updated list of Investors that they are representing in the
Chapter 11 cases of Andes Industries, Inc. and PCT International,
Inc.
In 2016, HBSS was retained to represent EZconn Corporation, eGTran
Corporation, and Cheng-Sun Lan.
In 2016, HBSS was retained to represent Crestwood Capital
Corporation and Devon Investment, Inc.
Additionally, in 2016, HBSS was retained to represent the
Petitioning Creditors in connection with the Chapter 11 Cases.
On or about September 22, 2020, the Firms were retained to
represent the Interest Holders in the Chapter 11 Cases for the
purpose of objecting to the Debtors' Plan.
Snell only represents the Petitioning Creditors and the Interest
Holders in these Chapter 11 Cases.
The Petitioning Creditors and the Interest Holders are the only
creditors or other parties in interest in the Chapter 11 Cases for
which HBSS is required to file a Verified Statemennt pursuant to
Rule 2019.
As of Nov. 17, 2020, each of the Petitioning Creditors' and
Interest Holders' and their disclosable economic interests are:
EZconn Corporation
No. 12, Lane 12, Lite Road
Beitou District, Taiwan 112
* Nature of Claim: Judgements
* Amount of Claim Interest: $451,522.79 (Andes)
$8,384,561.49 (PCT)
Crestwood Capital Corporation
c/o Ronald W. Hofer
1428 Harvest Crossing Dr.
McLean, Virginia 22101
* Nature of Claim: Judgement
* Amount of Claim Interest: $5,279,263.64 (Andes)
Devon Investments, Inc.
c/o Ronald W. Hofer
1428 Harvest Crossing Dr.
McLean, Virginia 22101
* Nature of Claim: Judgement
* Amount of Claim Interest: $8,195,402.00 (Andes)
eGTran Corporation
c/o Michael Kroon, Esq.
P.O. Box 71
Road Town, Tortola
BVI VG1110
* Nature of Claim: Judgement
* Amount of Claim Interest: $122,995.57 (PCT & Andes)
Cheng-Sun Lan
c/o Alex C.Y. Chen
9F-5, No. 26, Sec. 2
Minquan E. Rd.
Zhongshan Dist.
Taipei, Taiwan
* Nature of Claim: Judgement
* Amount of Claim Interest: $54,815.10 (PCT & Andes)
Polar Star Management Ltd.
c/o Portcullis (BVI) Ltd of Portcullis Chambers
4th Floor Ellen Skelton Building
3076 Sir Francis Drake Highway
Road Town, Tortola
British Virgin Islands
VG1110
* Nature of Claim: Equity Holder of Andes Industries, Inc.
* Amount of Claim Interest: 5.39% (Andes)
Chi-Jen (Dennis) Lan
c/o Alex C.Y. Chen
9F-5, No. 26, Sec. 2
Minquan E. Rd. Zhongshan Dist.
Taipei, Taiwan
* Nature of Claim: Equity Holder of Andes Industries, Inc.
* Amount of Claim Interest: 8.61% (Andes)
Attorneys for Creditors EZconn Corporation, eGTran Corporation,
Cheng-Sun Lan, Devon Investment, Inc., and Crestwood Capital
Corporation, Polar Star Management Ltd. and Chi-Jen Lan can be
reached at:
SNELL & WILMER L.L.P.
Christopher H. Bayley, Esq.
Benjamin W. Reeves, Esq.
One Arizona Center
400 E. Van Buren, Suite 1900
Phoenix, AZ 85004-2202
Telephone: 602.382.6000
E-Mail: cbayley@swlaw.com
breeves@swlaw.com
- and -
HAGENS BERMAN SOBOL SHAPIRO LLP
Greer N. Shaw, Esq.
301 N. Lake Ave., Suite 920
Pasadena, CA 91101
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3943yfP and https://bit.ly/2Hoqefr
About Andes Industries
Creditors EZconn Corporation, Crestwood Capital Corporation, and
Devon Investment Inc. filed involuntary bankruptcy petitions
against Andes Industries, Inc. and PCT International, Inc. under
Chapter 7 of the Bankruptcy Code in the U.S. Bankruptcy Court for
the District of Arizona. On Dec. 4, 2019, the Chapter 7 cases were
converted to cases under Chapter 11 (Bankr. D. Ariz. Lead Case No.
19-14585). Judge Paul Sala oversees the cases.
The Debtors tapped Sacks Tierney P.A. as legal counsel, Beus
Gilbert McGroder PLLC as special counsel, and Keegan Linscott &
Associates, PC as financial consultant.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on Jan. 29, 2020. The committee is represented by Allen
Barnes & Jones, PLC.
The Debtors filed their joint Chapter 11 plan and disclosure
statement on June 8, 2020.
APTEAN INC: Moody's Affirms B3 CFR, Outlook Stable
--------------------------------------------------
Moody's Investors Service affirmed Aptean, Inc.'s B3 Corporate
Family Rating, B3-PD Probability of Default Rating (PDR) and B2
rating on its existing senior secured first lien credit facilities.
Concurrently, Moody's assigned a B2 rating to Aptean's new $130
million incremental senior secured delayed draw first lien term
loan. The company is using proceeds from the delayed draw first
lien term loan, as well as a new, unrated $75 million incremental
second lien term loan to fund three acquisitions. The acquisitions
will expand the company's services in product lifecycle management
(PLM) and enterprise resource planning (ERP) software in the United
States and European small and medium enterprise (SME) markets.
Aptean expects to close the acquisitions in November and December
of this year. Given the lack of equity used to finance the
acquisitions, the extremely high leverage and significant
restructuring required, the company is weakly positioned in the B3
category. The outlook is however, stable.
RATINGS RATIONALE
Aptean's B3 CFR reflects its small scale, very high leverage and
negative to breakeven free cash flow as a result of high
restructuring and business optimization expenses. Aptean's
aggressive strategy of debt-funded acquisitions highlights the
company's very aggressive financial policies under private equity
ownership, and the likelihood that leverage is expected to remain
high.
Leverage for the period ended September 30, 2020 is approximately
11x pro forma for the pending acquisitions and excluding
transaction fees (Moody's adjusted, including expensing of
capitalized software), albeit under 8x excluding restructuring
charges and giving full credit for planned synergies. Leverage
levels are substantially higher if transaction costs are counted.
Moody's expects Aptean to remain acquisitive, which will likely
result in limited debt repayment and additional borrowings over
time. The company's financial policies remain a key corporate
governance consideration under Moody's ESG framework.
The company's credit profile is supported by Aptean's solid niche
positioning as a provider of vertically focused ERP software to SME
customers. The critical nature of the company's products, high
proportion of recurring revenues and solid retention rates of over
90% provides for a stable base of free cash flow if the company
decided to pause its M&A activity. While Moody's expects total
revenue to decline organically in the low single digit range for FY
2020 from a drop in new license sales and lower service revenue,
Moody's expects modest growth and deleveraging in FY 2021.
Additionally, the company's track record of integrating acquired
businesses and realizing cost synergies should benefit the company
to reduce leverage.
As with most enterprise software companies, environmental and
social risks are low. Governance risks remain high as evidenced by
the private equity owners' aggressive financial policies including
acquisition appetite and very high leverage levels.
The B2 rating on the first lien debt reflects its senior most
position in the capital structure. The first lien debt is rated one
notch above the B3 CFR.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects the expectation that the company will
successfully integrate the acquisitions and achieve cost synergies
such that debt-to-EBITDA declines to toward low 8x by the end of
2021.
The ratings could be downgraded if integration challenges arise,
the recessionary economic environment results in more pronounced
organic revenue declines than currently anticipated or leverage is
not on track to quickly get below 8.5x. The ratings could also be
downgraded if the company pursues additional debt financed
acquisitions without material equity contributions. Weakening
liquidity and sustained negative free cash flow could also result
in a downgrade.
The ratings could be upgraded if the company demonstrates a
commitment to more conservative financial policies, while
maintaining its debt-to-EBITDA below 6.5x and free cash flow to
debt above 5% with good liquidity.
Moody's expects Aptean's liquidity to remain adequate over the next
12-18 months. Pro forma for the proposed transaction, the company
will have a cash balance of approximately $28 million. Moody's
projects the company to generate positive free cash flow, but it
will likely remain suppressed by acquisition and restructuring
expenses. Aptean's liquidity is also supplemented by an undrawn $50
million revolving credit facility, albeit small relative to its
annual cash interest rate of approximately $60 million (pro forma
for the debt financing), $10 million in additional purchase price
consideration, $8 million in debt amortization, $3 million in
capital expenditures as well as significant restructuring expenses
required to integrate the acquisitions. The revolving facility
contains a springing maximum first lien net leverage ratio leverage
covenant of 8.1x (tested only when 35% drawn). Moody's expects the
company to maintain a sufficient cushion over the next 12-18
months.
Affirmations:
Issuer: Aptean, Inc.
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Secured Bank Credit Facility, Affirmed B2 (LGD3)
Assignments:
Issuer: Aptean, Inc.
Delayed Draw Senior Secured Bank Credit Facility, Assigned B2
(LGD3)
Outlook Actions:
Issuer: Aptean, Inc.
Outlook, Remains Stable
The principal methodology used in these ratings was Software
Industry published in August 2018.
Aptean is a provider of vertical-focused ERP systems and related
products primarily to SME customers. For the last twelve months
ended September 30, 2020, pro forma revenue was $322 million.
Aptean is owned by private equity firms TA, Charlesbank and Vista.
BA 98 LOVE LANE: Case Summary & 7 Unsecured Creditors
-----------------------------------------------------
Debtor: BA 98 Love Lane, LLC
5230 Washington St
Ste 201
West Roxbury, MA 02132-6346
Business Description: BA 98 Love Lane, LLC classifies its business
as Single Asset Real Estate (as defined in
11 U.S.C Section 101(51B)).
Chapter 11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 20-12258
Debtor's Counsel: Samuel P. Reef, Esq.
LAW OFFICE OF SAMUEL P. REEF
77 Pond St.
Sharon, MA 02067-2090
Tel: (781) 784-7777
Email: sam@reeflaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Terrence McDonough, member.
A copy of the Debtor's list of seven unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/HYPXAKI/BA_98_Love_Lane_LLC__mabke-20-12258__0004.0.pdf?mcid=tGE4TAMA
A copy of the petition is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/AC5BPDQ/BA_98_Love_Lane_LLC__mabke-20-12258__0001.0.pdf?mcid=tGE4TAMA
BAUSCH HEALTH: S&P Rates $1.75BB Multi-Tranche Unsecured Notes 'B'
------------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '5'
recovery rating to Bausch Health Companies Inc.'s proposed
multi-tranche $1.75 billion senior unsecured notes offering
maturing 2029 and 2031. The '5' recovery rating indicates S&P's
expectations for modest (10%-30%; rounded estimate: 25%) recovery
in the event of a payment default. The company plans to use the
proceeds from this offering and cash on hand to redeem its EUR1.5
billion notes due 2023 and pay related fees and expenses.
S&P's 'B+' issuer credit rating is unchanged, reflecting the
company's substantial scale and good revenue diversity. It also
reflects its expectation that Bausch's leverage will remain above
6x over the next two years.
In addition, the company has announced its intention to spin off
its eye health businesses. The remaining entity (RemainCo) is a
weaker business with $4.9 billion in revenue and $2.5 billion in
EBITDA by S&P's estimate, based on 2019 pro forma financials. In
S&P's opinion, the biggest risk for RemainCo is the lack of a clear
growth driver beyond Xifaxan (29.6% of RemainCo's revenue, based on
2019 pro forma financials), which will begin facing generic
competition in 2028. This raises the risk for a debt-funded
acquisition in the future if the company's new product launches and
internal research and development pipeline prove unable to offset
Xifaxan's decline. S&P therefore will place significant emphasis on
assessing RemainCo's financial policy. In addition, RemainCo will
be more exposed to drug price reform.
BECK & CHASE: Hires Curd Galindo as Counsel
-------------------------------------------
Beck & Chase Enterprises, Inc., seeks authority from the U.S.
Bankruptcy Court for the Central District of California to employ
Curd Galindo & Smith LLP, as counsel to the Debtor.
Beck & Chase requires Curd Galindo to:
a. give the Debtor legal advice with respect to its powers and
duties as Debtor-in-Possession, and the continued operation
of its business and management of its property;
b. prepare on behalf of the Debtor the necessary applications,
schedules, statements, applications, answers, orders,
reports and other legal papers associated with the Chapter
11 case;
c. prepare and timely submit to the Debtor's creditors and the
Bankruptcy Court, a Subchapter V Plan of Reorganization;
d. shepard the Debtor as necessary in compliance with the
guidelines for the Debtor's promulgated by the Office of
the U.S. Trustee;
e. prosecute and assist in prosecuting any adversary actions,
claims, objections or contested matters which may be
necessary or ancilliary proceedings to the bankruptcy case;
and
f. perform all other legal services for the Debtor-in-
Possession, which may be necessary herein.
Curd Galindo will be paid at these hourly rates:
Attorneys $500
Associates $275
Paralegals $125
On June 7, 2020, the Debtor paid Curd Galindo a retainer in the
amount of $5,000. The Firm deducted fees and expenses and the
remaining balance of $12,192 was held in the Firm's trust account.
Curd Galindo will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffrey B. Smith, partner of Curd Galindo & Smith LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Curd Galindo can be reached at:
Jeffrey B. Smith, Esq.
CURD GALINDO & SMITH LLP
301 East Ocean Boulevard, Suite 1700
Long Beach, CA 90802
Tel: (562) 624-1177
Fax: (562) 624-1178
E-mail: jsmith@cgsattys.com
About Beck & Chase Enterprises
Beck & Chase Enterprises, Inc., based in Orange, CA, filed a
Chapter 11 petition (Bankr. C.D. Cal. Case No. 20-12864) on Oct.
13, 2020. The petition was signed by Donna K. Beck, CEO. In its
petition, the Debtor was estimated to have $500,000 to $1 million
in assets and $1 million to $10 million in liabilities. CURD,
GALLINDO & SMITH, LLP, serves as bankruptcy counsel to the Debtor.
BENJA INCORPORATED: Trustee Hires Finestone Hayes as Counsel
------------------------------------------------------------
Kyle Everett, the Chapter 11 Trustee of Benja Incorporated, seeks
authority from the U.S. Bankruptcy Court for the Northern District
of California to employ Finestone Hayes LLP, as counsel to the
Trustee.
The Trustee requires Finestone Hayes to:
a) advise and represent the Trustee as to all matters and
proceedings within the Chapter 11 case, other than those
particular areas that may be assigned to special counsel;
b) assist, advise and represent the Trustee with respect to
his duties under Bankruptcy Code Section 1106(a);
c) advise and assist the Trustee in converting the case to a
proceeding under Chapter 7 of the Bankruptcy Code;
d) assist, advise and represent the Trustee regarding any
lawsuits or claims that are being prosecuted by or against
the Debtor;
e) assist and advise the Trustee in the investigation and
disposition, if appropriate, of assets of the estate;
f) assist and advise the Trustee regarding the investigation
and prosecution of potential avoidable transfers; and
g) assist, advise and represent the Trustee in dealing with
the creditors and other constituencies, analyze the
claims in this case and formulating and seeking approval of
a Plan of Reorganization, as appropriate.
Finestone Hayes will be paid at these hourly rates:
Attorneys $525
Associates $300 to $425
Finestone Hayes will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Stephen D. Finestone, a partner of Finestone Hayes LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Finestone Hayes can be reached at:
Stephen D. Finestone (125675)
Jennifer C. Hayes (197252)
Ryan A. Witthans (301432)
FINESTONE HAYES LLP
456 Montgomery Street, 20 th Floor
San Francisco, California 94104
Tel. (415) 421-2624
Fax (415) 398-2820
E-mail: sfinestone@fhlawllp.com
About Benja Incorporated
Benja Incorporated -- https://benja.co -- operates a shoppable
media network. Benja sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 20-30819) on October 15,
2020. The petition was signed by Andrew J. Chapin, president and
CEO. The case is assigned to Judge Dennis Montali. The Debtor is
represented by Paul S. Manasian, Esq. At the time of filing, the
Debtor had estimated both assets and liabilities between $1 million
to $10 million.
BRAUN EVENTS: Seeks to Hire Golding Law Offices as Legal Counsel
----------------------------------------------------------------
Braun Events Inc. seeks authority from the U.S. Bankruptcy Court
for the Northern District of Illinois to employ The Golding Law
Offices, P.C. as its legal counsel.
The Debtor selected the firm to:
(a) give legal advice regarding its rights, powers and
duties;
(b) assist in negotiation, formulation and confirmation of a
plan of reorganization;
(c) examine and investigate claims asserted against the
Debtor;
(d) take such actions as may be necessary with reference to
the claims against the Debtor;
(e) take necessary actions to collect and, in accordance with
applicable law, recover or sell property of the Debtor;
(f) prepare legal papers;
(g) assist the Debtor in obtaining refinancing of its secured
debt from replacement lenders; and
(h) perform all other legal services for the Debtor in
connection with its Chapter 11 case.
Golding's customary hourly rates are:
Richard N. Golding $490
Jonathan D. Golding $390
Paralegals $190
Golding received a retainer of $12,500, plus the filing fee of
$1,717. Approximately $4,000 of the retainer was expended on
pre-bankruptcy legal services.
Jonathan Golding, Esq., a partner at Golding, disclosed in court
filings that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estate.
The firm can be reached through:
Jonathan D. Golding, Esq.
The Golding Law Offices, P.C.
500 N. Dearborn Street, 2nd FL
Chicago, IL 60610
Tel: (312) 832-7892
Fax: (312) 755-5720
Email: jgolding@goldinglaw.net
About Braun Events Inc.
Braun Events Inc., a company that provides special events equipment
rental services, filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
20-18843) on Oct. 17, 2020. Braun Events President Robert Braun
signed the petition.
At the time of filing, the Debtor disclosed $546,997 in assets and
$2,202,249 in liabilities.
Judge David D. Cleary oversees the case. The Golding Law Offices,
P.C. serves as the Debtor's legal counsel.
CARVER BANCORP: Posts $809K Net Loss in Second Quarter
------------------------------------------------------
Carver Bancorp, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $809,000 on $5.07 million of total interest income for the three
months ended Sept. 30, 2020, compared to a net loss of $1.05
million on $5.29 million of total interest income for the three
months ended Sept. 30, 2019.
For the six months ended Sept. 30, 2020, the Company reported a net
loss of $1.62 million on $9.86 million of total interest income
compared to a net loss of $2.19 million on $10.87 million of total
interest income for the six months ended Sept. 30, 2019.
As of Sept. 30, 2020, the Company had $672.65 million in total
assets, $626.26 million in total liabilities, and $46.39 million in
total equity.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1016178/000101617820000034/carv-20200930.htm
About Carver Bancorp
Carver Bancorp, Inc., is the holding company for Carver Federal
Savings Bank, a federally chartered savings bank. The Company is
headquartered in New York, New York. The Company conducts business
as a unitary savings and loan holding company, and the principal
business of the Company consists of the operation of its
wholly-owned subsidiary, Carver Federal. Carver Federal was
founded in 1948 to serve African-American communities whose
residents, businesses and institutions had limited access to
mainstream financial services. The Bank remains headquartered in
Harlem, and predominantly all of its seven branches and four
stand-alone 24/7 ATM centers are located in low- to moderate-income
neighborhoods.
Carver Bancorp reported a net loss of $5.42 million for the year
ended March 31, 2020, compared to a net loss of $5.94 million for
the year ended March 31, 2019. As of June 30, 2020, the Company
had $670.7 million in total assets, $623.6 million in total
liabilities, and $47.04 million in total equity.
CBAK ENERGY: Creditor Agrees to Swap $11.2 Million Debt for Equity
------------------------------------------------------------------
CBAK Energy Technology, Inc. entered into a cancellation agreement
with a creditor who loaned an aggregate of RMB 72 million
(approximately $11.17 million) to a subsidiary of the Company.
Pursuant to the terms of the Cancellation Agreement, the Creditor
agreed to cancel the Debt in exchange for an aggregate of 3,192,291
shares of common stock of the Company at an exchange price of $3.50
per share. Upon receipt of the Shares, the creditor will release
the Company from any claims, demands and other obligations relating
to the Debt. The Cancellation Agreement contains customary
representations and warranties of the Company and the creditor.
The creditor does not have registration rights with respect to the
Shares. The closing price of the Company's common stock on Nov.
11, 2020, as reported by the Nasdaq Stock Market, was $3.48 per
share.
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn/-- is engaged in the
business of developing, manufacturing and selling new energy
highpower lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of $10.85 million for the year
ended Dec. 31, 2019, compared to a net loss of $1.96 million for
the year ended Dec. 31, 2018. As of Sept. 30, 2020, the Company
had $102.07 million in total assets, $85.03 million in total
liabilities, and $17.04 million in total equity.
Centurion ZD CPA & Co., in Hong Kong, China, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated May 14, 2020, citing that the Company has a working capital
deficiency, accumulated deficit from recurring net losses and
significant short-term debt obligations maturing in less than one
year as of Dec. 31, 2019. All these factors raise substantial
doubt about its ability to continue as a going concern.
CBAK ENERGY: Posts $42K Net Income in Third Quarter
---------------------------------------------------
CBAK Energy Technology, Inc., filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting net
income of $41,715 on $10.62 million of net revenues for the three
months ended Sept. 30, 2020, compared to a net loss of $1.78
million on $8.09 million of net revenues for the three months ended
Sept. 30, 2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss of $3.51 million on $22.15 million of net revenues
compared to a net loss of $6.93 million on $17.53 million of net
revenues for the nine months ended Sept. 30, 2019.
As of Sept. 30, 2020, the Company had $102.07 million in total
assets, $85.03 million in total liabilities, and $17.04 million in
total equity.
Liquidity and Capital Resources
The Company has financed its liquidity requirements from short-term
bank loans, other short-term loans and bills payable under bank
credit agreements, advances from its related and unrelated parties,
investors and issuance of capital stock.
As of Sept. 30, 2020, the Company had cash and cash equivalents of
$7.9 million. Its total current assets were $34.7 million and its
total current liabilities were $71.5 million, resulting in a net
working capital deficiency of $36.8 million. These factors raise
substantial doubts about the Company's ability to continue as a
going concern.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1117171/000121390020037380/f10q0920_cbakenergytech.htm
About CBAK Energy
Dalian, China-based CBAK Energy Technology, Inc., formerly China
BAK Battery, Inc. -- http://www.cbak.com.cn-- is engaged in the
business of developing, manufacturing and selling new energy
highpower lithium batteries, which are mainly used in the following
applications: electric vehicles; light electric vehicles; and
electric tools, energy storage, uninterruptible power supply, and
other high power applications.
CBAK Energy reported a net loss of $10.85 million for the yearended
Dec. 31, 2019, compared to a net loss of $1.96 million for the year
ended Dec. 31, 2018. As of June 30, 2020, the Company had $92.41
million in total assets, $77.28 million in total liabilities, and
$15.12 million in total equity.
Centurion ZD CPA & Co., in Hong Kong, China, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated May 14, 2020, citing that the Company has a working capital
deficiency, accumulated deficit from recurring net losses and
significant short-term debt obligations maturing in less than one
year as of Dec. 31, 2019. All these factors raise substantial
doubt about its ability to continue as a going concern.
CHARGING BEAR: Hires Douglas N. Gould as Attorney
-------------------------------------------------
Charging Bear, LLC, seeks authority from the U.S. Bankruptcy Court
for the Western District of Oklahoma to employ Douglas N. Gould
P.L.C., as attorney to the Debtor.
Charging Bear requires Douglas N. Gould to:
(a) provide Debtor legal advice with respect to its powers and
duties as debtor-in- possession in the continuing
operation of its business and management of their
property;
(b) prepare on behalf of Debtor as debtor-in-possession all
necessary applications, answers, orders, pleadings,
reports and other legal papers; and
(c) perform all other legal services for Debtor as debtor-in-
possession which may be necessary herein.
Douglas N. Gould will be paid at the hourly rate of $350.
Pre-petition, Douglas N. Gould received a retainer of $12,000 from
the Debtor. Douglas N. Gould deducted the filing fee and
pre-petition charges of $2,000, leaving a post-petition retainer of
$8,800.
Douglas N. Gould will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Douglas N. Gould, a partner of Douglas N. Gould P.L.C., assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Douglas N. Gould can be reached at:
Douglas N. Gould, Esq.
DOUGLAS N. GOULD, PLC
5500 N Western., Ste. 150
Oklahoma City, OK 73118
Tel: (405) 286-3338
Fax: (405) 841-1001
E-mail: dg@dgouldlaw.net
About Charging Bear
Charging Bear LLC, based in Oklahoma City, OK, filed a Chapter 11
petition (Bankr. W. Okla. Case No. 20-13610) on Nov. 11, 2020. The
petition was signed by Charles V. Long, Jr., managing member. In
its petition, the Debtor disclosed $3,400,544 in assets and
$4,081,531 in liabilities. DOUGLAS N. GOULD, PLC, serves as
bankruptcy counsel to the Debtor.
CHESAPEAKE ENERGY: Hires Shearman & Sterling as Special Counsel
---------------------------------------------------------------
Chesapeake Energy Corporation, and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Southern District
of Texas to employ Shearman & Sterling LLP, as special counsel to
the Debtor.
Chesapeake Energy requires Shearman & Sterling to:
a. assist with certain aspects of the sale of certain of the
Debtors' non-core assets, including in Oklahoma and
Hemphill County;
b. assist with other acquisition and disposition matters;
c. advise on other related corporate and transactional
matters, including, without limitation, the negotiation and
documentation of midstream service agreements; and
d. provide other general corporate, regulatory, and tax advice
related to the forgoing, when and as needed, and assisting
with other matters, as requested by the Debtors, consistent
with past practice and not otherwise duplicative of
services provided by the Debtors' primary bankruptcy
counsel.
Shearman & Sterling will be paid at these hourly rates:
Attorneys $595 to $1,645
Legal Assistants $290 to $425
Shearman & Sterling will also be reimbursed for reasonable
out-of-pocket expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: Shearman & Sterling was first retained by the
Debtors in 2018. Initially, the Firm offered a
discount to the Debtors to assist with the
transition of the client relationship to Shearman &
Sterling in connection with the opening of the
Firm's Houston office and related hiring of lateral
partners, including myself. Consistent with prior
practice, from time to time the Firm undertakes a
review and, where appropriate, an adjustment of
rates, typically on an annual basis. In 2020, due
in part to the disruptions caused by COVID-19, the
Firm undertook its review and adjustment of rates
shortly after the Debtors filed the Chapter 11
Cases. The rates the Firm is charging in this
matter are comparable to the rates the Firm charges
for similar matters in non-bankruptcy
representations. The Firm's hourly rates vary
with the experience and seniority of its attorneys
and paralegals, and are adjusted each year. The
2020 hourly rates for Shearman & Sterling's
attorneys range from $595 to $1,645.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: The Debtors have approved a budget and staffing
plan for Shearman & Sterling through the end of
calendar year 2020.
Jeremy R. Kennedy, partner of Shearman & Sterling LLP, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Shearman & Sterling can be reached at:
Jeremy R. Kennedy, Esq.
SHEARMAN & STERLING LLP
800 Capitol Street, Suite 2200
Houston, TX 77002
Tel: (713) 354-4900
About Chesapeake Energy Corporation
Headquartered in Oklahoma City, Chesapeake Energy Corporation's
(NYSE: CHK) operations are focused on discovering and developing
its large and geographically diverse resource base of
unconventional oil and natural gas assets onshore in the United
States.
Chesapeake Energy reported a net loss of $308 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2019, the company had $16.19
billion in total assets, $2.39 billion in total current
liabilities, $9.40 billion in total long-term liabilities, and
$4.40 billion in total equity.
Chesapeake Energy and its affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 20-33233) on June 28, 2020, after
reaching terms of a Chapter 11 plan of reorganization to eliminate
approximately $7 billion of debt.
The Debtors tapped Kirkland & Ellis LLP as legal counsel, Jackson
Walker LLP as co-counsel and conflicts counsel, Alvarez & Marsal as
restructuring advisor, Rothschild & Co and Intrepid Financial
Partners as financial advisors, and Reevemark as communications
advisor. Epiq Global is the claims agent, maintaining the page
http://www.chk.com/restructuring-information
Wachtell, Lipton, Rosen & Katz serves as legal counsel to
Chesapeake Energy's Board of Directors.
MUFG Union Bank, N.A., the DIP facility agent and exit facilities
agent, has tapped Sidley Austin LLP as legal counsel, RPA Advisors
LLC as financial advisor, and Houlihan Lokey Capital Inc. as
investment banker.
Davis Polk & Wardell LLP and Vinson & Elkins L.L.P. serve as legal
counsel to an ad hoc group of first lien last out term loan lenders
while Perella Weinberg Partners and Tudor, Pickering, Holt & Co.
serve as the group's investment bankers.
Franklin Advisers, Inc., has tapped Akin Gump Strauss Hauer & Feld
LLP as legal counsel, FTI Consulting, Inc. as financial advisor,
and Moelis & Company LLC as investment banker.
On July 9, 2020, the Office of the U.S. Trustee appointed a
committee to represent unsecured creditors in Debtors' Chapter 11
cases. The unsecured creditors' committee has tapped Brown Rudnick,
LLP and Norton Rose Fulbright US, LLP as its legal counsel, and
AlixPartners, LLP as its financial advisor. On July 24, 2020, the
bankruptcy watchdog appointed a committee of royalty owners. The
royalty owners' committee is represented by Forshey & Prostok, LLP.
CHESAPEAKE ENERGY: Sells Oklahoma Assets to Tapstone in Auction
---------------------------------------------------------------
Jamison Cocklin of Natural Gas Intelligence reports that Chesapeake
Energy Corp. has sold its massive Oklahoma asset position to
Tapstone Energy LLC for $130.5 million.
Both Oklahoma City producers reached a deal after Tapstone
successfully bid for the assets during a bankruptcy auction in
early November. Tapstone had been selected as the stalking horse
bidder last month, when the U.S. Bankruptcy Court for the Southern
District of Texas approved the sale.
The sales includes more than 700,000 net acres covering a wide
variety of producing formations in west and northwest Oklahoma.
Tapstone is focused on the Anadarko Basin in Oklahoma, Texas and
Kansas. Its core assets are located in Oklahoma's unconventional
STACK play, aka the Sooner Trend of the Anadarko Basin, mostly in
Canadian and Kingfisher counties. It also has mature legacy assets
in all three states.
Chesapeake, which filed for Chapter 11 bankruptcy protection in
June 2020 to wipe out $7 billion of debt, was once one of
Oklahoma's largest oil and gas producers. But it hasn't focused on
those properties in recent years, instead spending in places like
the Powder River Basin of Wyoming and Eagle Ford Shale in Texas to
drive more oil production.
At one time or another, Chesapeake has operated in nearly all of
the Lower 48's major plays, but it has whittled its asset base down
in recent years as part of cost-cutting initiatives it tried
undertaking before filing bankruptcy. It also has a sharp focus on
the Marcellus Shale in Pennsylvania and the Haynesville Shale in
Louisiana.
The Midcontinent accounted for just 12,000 boe/d of Chesapeake's
3Q2020 production as the company continues to work through the
bankruptcy proceedings. Overall, Chesapeake produced 445,000 boe/d
in the third quarter.
About Chesapeake Energy Corp.
Headquartered in Oklahoma City, Chesapeake Energy Corporation's
(NYSE: CHK) operations are focused on discovering and developing
its large and geographically diverse resource base of
unconventional oil and natural gas assets onshore in the United
States.
Chesapeake Energy reported a net loss of $308 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2019, the company had $16.19
billion in total assets, $2.39 billion in total current
liabilities, $9.40 billion in total long-term liabilities, and
$4.40 billion in total equity.
Chesapeake Energy and its affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 20-33233) on June 28, 2020, after
reaching terms of a Chapter 11 plan of reorganization to eliminate
approximately $7 billion of debt.
The Debtors tapped Kirkland & Ellis LLP as legal counsel, Jackson
Walker LLP as co-counsel and conflicts counsel, Alvarez & Marsal as
restructuring advisor, Rothschild & Co and Intrepid Financial
Partners as financial advisors, and Reevemark as communications
advisor. Epiq Global is the claims agent, maintaining the page
http://www.chk.com/restructuring-information
Wachtell, Lipton, Rosen & Katz serves as legal counsel to
Chesapeake Energy's Board of Directors.
MUFG Union Bank, N.A., the DIP facility agent and exit facilities
agent, has tapped Sidley Austin LLP as legal counsel, RPA Advisors
LLC as financial advisor, and Houlihan Lokey Capital Inc. as
investment banker.
Davis Polk & Wardell LLP and Vinson & Elkins L.L.P. serve as legal
counsel to an ad hoc group of first lien last out term loan lenders
while Perella Weinberg Partners and Tudor, Pickering, Holt & Co.
serve as the group's investment bankers.
Franklin Advisers, Inc., has tapped Akin Gump Strauss Hauer & Feld
LLP as legal counsel, FTI Consulting, Inc. as financial advisor,
and Moelis & Company LLC as investment banker.
On July 9, 2020, the Office of the U.S. Trustee appointed a
committee to represent unsecured creditors in Debtors' Chapter 11
cases. The unsecured creditors' committee has tapped Brown Rudnick,
LLP and Norton Rose Fulbright US, LLP as its legal
counsel, and AlixPartners, LLP as its financial advisor.
On July 24, 2020, the bankruptcy watchdog appointed a committee of
royalty owners. The royalty owners' committee is represented by
Forshey & Prostok, LLP.
CLEAN ENERGY: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Clean Energy Collective, LLC
PO Box 270927
Louisville, CO 80027
Business Description: Clean Energy Collective, LLC --
https://www.cleanenergyco.com --
is a clean energy company that is based in
Louisville, Colorado, serving residential,
commercial, and non-profit customers.
CEC developed a model of delivering
clean power-generation through medium-scale
facilities that are collectively owned by
participating utility customers.
Chapter 11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
District of Colorado
Case No.: 20-17543
Debtor's Counsel: David V. Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Email: dwadsworth@wgwc-law.com
Total Assets: $1,870,355
Total Liabilities: $39,998,916
The petition was signed by Thomas M. Jannsen, CEO and CFO.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/LH7N4IA/Clean_Energy_Collective_LLC__cobke-20-17543__0001.0.pdf?mcid=tGE4TAMA
CNC PUMA: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: CNC Puma Corporation Inc.
The Bank Plates & Poiurs
The Bank of Mexican Food
28645 Old Town Front St
Temecula, CA 92590-2703
Business Description: CNC Puma Corporation Inc. --
https://www.thebankoldtown.com -- owns and
operates bar & restaurants specializing in
Mexican cuisine.
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
Central District of California
Case No.: 20-17551
Judge: Hon. Mark D. Houle
Debtor's Counsel: J. Luke Hendrix, Esq.
LAW OFFICES OF J. LUKE HENDRIX
28693 Old Town Front St Suite 400-D
Temecula, CA 92590
Tel: (951) 221-3721
Email: luke@jlhlawoffices.com
Total Assets: $250,128
Total Liabilities: $1,134,882
The petition was signed by Ryan Parent, chief financial
officer/secretary.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7XFXTGY/CNC_Puma_Corporation_Inc__cacbke-20-17551__0001.0.pdf?mcid=tGE4TAMA
CNO FINANCIAL: S&P Assigns 'BB' Rating to New Subordinated Debt
---------------------------------------------------------------
S&P Global Ratings has assigned its 'BB' debt rating to CNO
Financial Group Inc.'s (NYSE: CNO) proposed issuance of fixed-rate
subordinated debt, maturing November 2060. The rating is two
notches below its 'BBB-' issuer credit and senior debt ratings on
the holding company. The two notches reflect the subordination of
the issue and the optional interest deferability feature.
The proposed notes will be unsecured obligations and rank junior to
the company's current and future senior indebtedness. CNO has the
option to defer the interest payment on these notes for up to five
years. The deferred interest payments would remain cumulative.
Other than a regulatory capital event or rating agency event (as
defined in the offering prospectus), CNO has the option of
redeeming these notes on or after Nov. 25, 2025.
The company intends to use the proceeds of this issuance for
general corporate purposes. S&P will likely view this subordinated
debt as having intermediate equity content for the purpose of
leverage and capital-adequacy calculations.
S&P said, "In assigning equity credit for hybrid issues, we also
take into account management's intent to maintain such instruments
in its long-term capital structures. Before this proposed issuance,
CNO's financing structure comprises mostly senior notes. This
proposed 2060 subordinated note is CNO's first meaningful hybrid
issuance. As the company further develops its capital structure, we
believe that management intends to maintain hybrids as part of its
long-term capital structure."
"On a pro forma basis, after taking into account this proposed
issuance, we expect CNO's financial leverage and fixed-charge
coverage to remain within our expectations of less than 25% and
above 8x, respectively."
COMMUNITY PROVIDER: PCO Taps Resnik Hayes as Bankruptcy Counsel
---------------------------------------------------------------
Timothy Stacy, the patient care ombudsman appointed in the Chapter
11 cases of Community Provider of Enrichment Services, Inc. and its
affiliates, received approval from the U.S. Bankruptcy Court for
the Central District of California to employ Resnik Hayes Moradi,
LLP as his bankruptcy counsel.
The PCO needs the firm's assistance to:
a. understand the scope of his duties as well as the
activities and events of the Debtors' Chapter 11 cases;
b. analyze, draft and file reports and other required
documents;
c. analyze filings in the cases and how the requested relief
will impact the cases and patients;
d. discuss, negotiate, meet and attend court hearings.
Resnik will be paid at these rates:
Roksana D. Moradi-Brovia $500 per hour
Associates $350 per hour
Paralegals $135 per hour
Resnik is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Roksana D. Moradi-Brovia, Esq.
Matthew D. Resnik, Esq.
Resnik Hayes Moradi, LLP
17609 Ventura Blvd., Suite 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: roksana@RHMFirm.com
matt@RHMFirm.com
About Community Provider of Enrichment Services
Community Provider of Enrichment Services, Inc., which conducts
business under the name CPES, is a community human services and
healthcare organization based in Tucson, Ariz. It offers a full
range of community-based behavioral health services, substance
abuse treatment, foster care, and intellectual and developmental
disability supports with locations throughout Arizona and
California. For more information, visit https://www.cpes.com/
CPES and its affiliate, Novelles Developmental Services, Inc.,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
C.D. Cal. Lead Case No. 20-10554) on April 24, 2020. On Aug. 11,
2020, another affiliate, CPES California, Inc., filed a Chapter 11
petition (Bankr. C.D. Cal. Case No. 20-15456).
At the time of the filing, CPES reported $1 million to $10 million
in both assets and liabilities while Novelles Developmental
Services disclosed assets of $100,000 to $500,000 and liabilities
of the same range. CPES California disclosed assets of $1 million
to $10 million and liabilities of $100,001 to $500,000.
Judge Deborah J. Saltzman oversees the cases.
Debtors tapped Faegre Drinker Biddle & Reath LLP as their legal
counsel and CohnReznick Capital Market Securities, LLC as their
investment banker.
Timothy J. Stacy is the patient care ombudsman appointed in the
Debtors' Chapter 11 cases. He is represented by Resnik Hayes
Moradi, LLP.
COTY INC: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on Coty
Inc., given its adequate liquidity position and its forecast that
its operating performance and credit measures should improve.
S&P is revising its outlook to negative from stable, since there is
little room in the rating for Coty to miss its base case forecast.
S&P could lower the rating if economic disruptions from the second
wave of the coronavirus pandemic appear to be longer lasting and
more severe than its base case forecast indicates, and its leverage
remains elevated and free cash flow is negative. This could make it
more difficult to refinance its more than $2 billion of debt
maturing in April of 2023.
S&P said, "The rating affirmation reflects our assessment of Coty's
liquidity as adequate, and our forecast for improving credit
measures and positive free cash flow due to better sales trends,
cost reductions, and debt repayment. We are affirming the rating on
Coty because we expect credit measures to improve significantly in
fiscal 2021 (ending June 30, 2021)."
The company plans to repay debt with the $2.5 billion of proceeds
from its pending sale of Wella AG to KKR & Co Inc. In addition,
sales trends are beginning to improve and the company is beginning
to realize the benefits of its cost-reduction initiatives. The
company's sales showed sequential improvement in all regions and
across both its prestige and mass businesses in the first quarter
of fiscal 2021 (ended Sept. 30, 2020). Its organic sales declined
19% in the quarter, which was much better than the 60% drop that
occurred in its fiscal fourth quarter (ended June 30, 2020).
In addition, the company has made significant changes to its cost
structure by focusing on its marketing investments and executing
its fixed-cost reduction strategy. Coty took out approximately $80
million of fixed costs in the quarter, which was a 17% decline year
over year. This enabled it to generate a gross margin of 58.6% and
an S&P Global Ratings' adjusted EBITDA margin of 9.3%, compared
with 60.2% and 13.3%, respectively, in the prior year quarter
despite significantly lower sales. The company is in the midst of a
three-year cost-restructuring program that should result in total
cost savings of $600 million annually by fiscal 2023 and is on
target to reduce costs by $200 million this fiscal year. Partially
offsetting these cost savings are the costs to execute the program,
about $500 million spread over the next three years.
Coty fortified its liquidity position earlier this calendar year by
raising $1.0 billion from the issuance of convertible preferred
equity to KKR. It had about $1.7 billion of liquidity as of Sept.
30, 2020, consisting of $536 million of cash and about $1.2 billion
of revolver availability.
S&P said, "We believe this will enable it to withstand significant
near-term industry headwinds. The company has a minimum liquidity
covenant of $350 million through March 31, 2021. Based on its
current liquidity position and our expectation it will generate
positive free cash flow in fiscal 2021, we expect it to meet this
requirement."
Despite the expected improvement, credit measures should remain
weak as the company continues its restructuring and faces ongoing
headwinds caused by the pandemic.
S&P said, "Though we expect credit measures to improve in fiscal
2021, we still expect them to be weak. We forecast leverage at
about 10x in 2021 (about 8.5x excluding preferred stock) and EBITDA
interest coverage at about 2x. Though we expect free cash flow will
turn positive, our forecast for about $100 million of discretionary
cash flow in fiscal 2021 is modest relative to the company's
adjusted debt load, which includes more than $5.5 billion of pro
forma reported debt and $1 billion of preferred stock. We forecast
discretionary cash flow to improve to above $400 million in 2022,
but leverage will likely still be high at around 7.5x (low-6x
excluding preferred). Coty's credit metrics will likely remain weak
through fiscal 2022 because its portfolio is heavily skewed to
fragrances and color cosmetics. Demand for these categories is
highly correlated to social activity and is affected by in-school
participation and people going into their offices to work. We
forecast Coty's organic sales will decline in the fiscal second
quarter but will show sequential improvement, and its sales could
be flat for the full fiscal year." Still, it is vulnerable to
demand changes because of the pandemic. Currently it only generates
about 13% of sales through the fast-growing e-commerce channel and
it has little presence in the skincare category, which is currently
the best performing category in the beauty market. It is heavily
dependent on developed markets, and has a modest presence in China,
which is one of the fastest growing markets. This could make it
difficult for the company to offset declines in its core markets if
the current spike in COVID-19 cases persists for a prolonged period
or gets worse."
Downside risks are present due to renewed stay-at-home orders, and
the company has little room for underperformance.
S&P said, "There are downside risks to our forecast given many
countries in Europe and states in the U.S. are implementing new
stay-at-home mandates because of a surge in COVID-19 cases. We do
not expect these mandates to be as restrictive as those seen in
March and April of 2020, so we do not believe the revenue declines
will be as severe. Nevertheless, these actions could cause Coty's
progress to be slow and uneven, and there is little room in the
current rating for Coty to underperform our base case forecast. A
significant portion of the company's debt capital structure matures
in April 2023, including its $2.75 billion revolver ($1.56 billion
outstanding as of Sept. 30, 2020), $3.0 billion term loan A (about
$1.9 billion expected to be outstanding after repayment with Wella
proceeds), and $645 million euro notes. This means the company must
show a significant improvement in operating performance over the
next two years in order to successfully refinance on satisfactory
terms. Under our base case forecast, we expect the company to
improve leverage to the mid-7x area (low-6x excluding preferred
stock) and generate more than $400 million of free cash flow.
However, if the company does not achieve its expected cost savings,
or if demand drops significantly more than we currently expect,
this could result in negative free cash flow in 2021, which we
believe may jeopardize the company's ability to successfully
refinance on satisfactory terms."
"The negative outlook reflects the risk of a lower rating over the
next 12 months if economic disruptions from the second wave of the
coronavirus pandemic appear to be longer lasting and more severe
than our base case forecast indicates, and the company's leverage
remains elevated and free cash flow remains negative."
"We could lower the rating if we believe Coty's capital structure
will become unsustainable or it will face a liquidity crisis
because it cannot refinance its 2023 debt maturities before
becoming current in April 2022. In our view, an unsustainable
capital structure would be reflected by leverage sustained above
10x while the company continues to burn cash."
This could occur if:
-- The recent surge in COVID-19 cases is not contained and
consumer mobility becomes more restricted due to personal choice or
government mandates; or
-- Coty does not effectively execute its "All-In-To-Win"
transformation strategy. The program is broad, and there is risk
there will be missteps that could keep credit metrics elevated
because of further market share losses and additional restructuring
charges.
-- S&P could revise the outlook to stable if Coty improves its
operating performance such that it is confident it can successfully
refinance its 2023 debt maturities on satisfactory terms before
they become current in early 2022.
This would require the company to:
-- Continue to demonstrate progress in lowering its cost structure
such that EBITDA margin approaches 15%;
-- Stabilize sales;
-- Sustain leverage below 10x; and
-- Maintain at least 15% cushion under the covenants in its credit
facility which go into effect in its fourth fiscal quarter of 2021
(ending June 30, 2021).
COVIA HOLDINGS: Porter, Paul 2nd Update on Term Lender Group
------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Paul, Weiss, Rifkind, Wharton & Garrison LLP and
Porter Hedges LLP submitted a second amended verified statement to
disclose an updated list of members in Ad Hoc Group of Term Loan
Lenders in the Chapter 11 cases of Covia Holdings Corporation, et
al.
In March 2020, the Ad Hoc Group of Term Loan Lenders retained Paul,
Weiss to represent it as counsel in connection with a potential
restructuring of Covia and its affiliated debtors in the Chapter 11
Cases. In June 2020, the Ad Hoc Group of Term Loan Lenders retained
Porter Hedges to serve as its Texas counsel with respect to such
matters.
The Ad Hoc Group of Term Loan Lenders filed the Verified Statement
Pursuant to Bankruptcy Rule 2019 of Ad Hoc Group of Term Loan
Lenders, dated July 9, 2020 [Docket No. 139] and the Amended
Verified Statement Pursuant to Bankruptcy Rule 2019 of Ad Hoc Group
of Term Loan Lenders, dated October 2, 2020 [Docket No. 621]. The
Ad Hoc Group of Term Loan Lenders submits this Second Amended
Verified Statement to amend information disclosed in the Original
Verified Statement and Amended Verified Statement.
As of Nov. 17, 2020, members of the Ad Hoc Group of Term Loan
Lenders and their disclosable economic interests are:
Anchorage Capital Group, L.L.C.
610 Broadway, 6th Fl.
New York, NY 10012
* Term Loans: $376,018,487.23
Angel Island Capital Management, LLC
1 Embarcadero Center, Suite 2150
San Francisco, CA 94111
* Term Loans: $398,692,298.24
* Swap Claims: $27,799,698.51
Angelo, Gordon & Co., L.P.
245 Park Avenue
New York, NY 10167
* Term Loans: $33,239,004.44
CBAM Partners, LLC
51 Astor Place 12th Floor
New York, NY 10003
* Term Loans: $88,751,657.72
HPS Investment Partners, LLC
40 West 57th Street, 33rd Floor
New York, NY 10019
* Term Loans: $44,395,207.95
Invesco Senior Secured Management, Inc.
1166 Avenue of the Americas, 26th Floor
New York, NY 10036
* Term Loans: $49,054,820.05
MJX Asset Management, LLC
12 E 49th Street, 38th Floor
New York, NY 10017
* Term Loans: $46,809,014.10
Oaktree Capital Management, L.P.
333 S. Grand Avenue, 28th Floor
Los Angeles, CA 90071
* Term Loans: $4,912,500.00
Voya Investment Management Co. LLC and
Voya Alternative Asset Management LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, AZ 85258
* Term Loans: $102,665,587.48
Nothing contained in this Second Amended Verified Statement is
intended to or should be construed as (i) a limitation upon, or
waiver of any right to assert, file and/or amend its claims in
accordance with applicable law and any orders entered in these
Chapter 11 Cases by any member of the Ad Hoc Group of Term Loan
Lenders, or (ii) an admission with respect to any fact or legal
theory.
The Ad Hoc Group of Term Loan Lenders, through its undersigned
counsel, reserves the right to amend or supplement this Amended
Verified Statement as necessary for that or any other reason in
accordance with the requirements set forth in Bankruptcy Rule
2019.
Counsel for the Ad Hoc Group of Term Loan Lenders can be reached
at:
John F. Higgins, Esq.
M. Shane Johnson, Esq.
Megan N. Young-John, Esq.
Porter Hedges LLP
1000 Main Street, 36th Floor
Houston, TX 77002
Tel: (713) 226-6000
Fax: (713) 226-6248
Email: jhiggins@porterhedges.com
sjohnson@porterhedges.com
myoung-john@porterhedges.com
- and -
Brian S. Hermann, Esq.
Andrew M. Parlen, Esq.
Sean A. Mitchell, Esq.
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
Tel: (212) 373-3000
Fax: (212) 757-3990
Email: bhermann@paulweiss.com
aparlen@paulweiss.com
smitchell@paulweiss.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3947zkp
About Covia Holdings Corporation
Covia Holdings Corporation and its affiliates --
http://www.coviacorp.com/-- provide diversified mineral-based and
material solutions for the energy and industrial markets. They
produce a specialized range of industrial materials for use in the
glass, ceramics, coatings, foundry, polymers, construction, water
filtration, sports and recreation, and oil and gas markets.
Covia Holdings Corporation, based in Independence, Ohio, and its
affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case
No. 20-33295) on June 29, 2020.
In its petition, Covia disclosed $2,504,740,814 in assets and
$1,903,952,839 in liabilities. The petition was signed by Andrew D.
Eich, executive vice president, chief financial officer, and
treasurer.
The Hon. Marvin Isgur presides over the case.
The Debtors tapped KIRKLAND & ELLIS LLP, and KIRKLAND & ELLIS
INTERNATIONAL LLP, as counsel; JACKSON WALKER L.L.P., as
co-counsel; KOBRE & KIM LLP, as special litigation counsel; PJT
PARTNERS LP, as investment banker; ALIXPARTNERS, LLP, as financial
advisor; and PRIME CLERK LLC, as claims and noticing agent.
CREATD INC: Needs Sufficient Revenues to Stay as Going Concern
--------------------------------------------------------------
Creatd, Inc. (formerly Jerrick Media Holdings, Inc.) filed its
quarterly report on Form 10-Q, disclosing a net loss of $13,575,643
on $424,814 of net revenue for the three months ended Sept. 30,
2020, compared to a net loss of $1,934,011 on $91,386 of net
revenue for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $5,722,928,
total liabilities of $3,320,534, and $2,402,394 in total
stockholders' equity.
The Company said, "As of September 30, 2020, the Company had an
accumulated deficit of $65.3 million, a net loss of $20.7 million
and net cash used in operating activities of $5.0 million for the
reporting period then ended. The Company is in default on
debentures as of the date of this filing. These factors raise
substantial doubt about the Company's ability to continue as a
going concern for a period of one year from the issuance of these
financial statements.
"On January 30, 2020, the World Health Organization declared the
COVID-19 novel coronavirus outbreak a "Public Health Emergency of
International Concern" and on March 10, 2020, declared it to be a
pandemic. Actions taken around the world to help mitigate the
spread of the coronavirus include restrictions on travel, and
quarantines in certain areas, and forced closures for certain types
of public places and businesses. The COVID-19 coronavirus and
actions taken to mitigate it have had and are expected to continue
to have an adverse impact on the economies and financial markets of
many countries, including the geographical area in which the
Company operates. While it is unknown how long these conditions
will last and what the complete financial impact will be to the
Company, capital raising efforts and our operations may be
negatively affected.
"The Company is attempting to further implement its business plan
and generate sufficient revenues; however, its cash position may
not be sufficient to support its daily operations. While the
Company believes in the viability of its strategy to further
implement its business plan and generate sufficient revenues and in
its ability to raise additional funds by way of a public or private
offering of its debt or equity securities, there can be no
assurance that it will be able to do so on reasonable terms, or at
all. The ability of the Company to continue as a going concern is
dependent upon its ability to further implement its business plan
and generate sufficient revenues and its ability to raise
additional funds by way of a public or private offering."
A copy of the Form 10-Q is available at:
https://bit.ly/3fdBfg5
Creatd, Inc., formerly Jerrick Media Holdings, Inc., is a
technology company focused on the development of digital
communities, marketing branded digital content, and e-commerce
opportunities. Creatd's content distribution platform, Vocal,
delivers a robust long-form, digital publishing platform organized
into highly engaged niche-communities capable of hosting all forms
of rich media content. Through Creatd's proprietary algorithm
dynamics, Vocal enhances the visibility of content and maximizes
viewership, providing advertisers access to target markets that
most closely match their interests. The Company is based in Fort
Lee, New Jersey.
DASHING PROPERTIES: Gets OK to Hire Raymond H. Aver as Counsel
--------------------------------------------------------------
Dashing Properties Management, Inc. received approval from the U.S.
Bankruptcy Court for the Central District of California to hire the
Law Offices Of Raymond H. Aver as its legal counsel.
The services the firm will render are:
a. represent the Debtor at its initial interview;
b. represent the Debtor at the meeting of creditors pursuant
to Bankruptcy Code Section 341(a), or any continuance thereof;
c. represent the Debtor at court hearings;
d. prepare legal papers;
e. advise the Debtor regarding matters of bankruptcy law,
including its rights and remedies with respect to its assets and
the claims of its creditors;
f. represent the Debtor with regard to all contested matters;
g. represent the Debtor with regard to the preparation of a
disclosure statement and the negotiation, preparation and
implementation of a plan of reorganization;
h. analyze claims that have been filed in the Debtor's
bankruptcy case;
i. negotiate with the Debtor's secured and unsecured
creditors regarding the amount and payment of their claims;
j. object to claims as may be appropriate; and
k. perform all other legal services for the Debtor other than
adversary proceedings, which would require further written
agreement.
Aver Firm's hourly rates are:
Raymond H. Aver, Shareholder $525
Ani Minasan, Paraprofessional $175
The firm received a pre-bankruptcy retainer in the sum of $17,500,
exclusive of the $1,717 filing fee.
Aver Firm neither holds nor represents an interest adverse to the
estate and is a disinterested person as required by the Bankruptcy
Code Section. 327(a), according to court filings.
The firm can be reached through:
Raymond H. Aver, Esq.
Law Offices of Raymond H. Aver, APC
10801 National Boulevard, Suite 100
Los Angeles, CA 90064
Tel: (310) 571-3511
Email: ray@everlaw.com
About Dashing Properties Management
Dashing Properties Management, Inc. sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
20-11769) on Oct. 1, 2020, listing under $1 million in both assets
and liabilities. Judge Victoria S. Kaufman oversees the case. The
Law Offices of Raymond H. Aver, APC serves as the Debtor's legal
counsel.
DE'ANGELEO REVOCABLE: Hires Stonepoint as Real Estate Broker
------------------------------------------------------------
De'Angeleo Revocable Trust seeks authority from the U.S. Bankruptcy
Court for the Western District of Texas to employ Stonepoint
Properties, as real estate broker to the Debtor.
De'Angeleo Revocable requires Stonepoint to market and sell the
Debtor's real properties located at 1803 Burnett St., San Antonio,
TX 78202, and 248 GreyHawk, Spring Branch, TX 78070.
Stonepoint will be paid based upon its normal and usual hourly
billing rates.
Angie Robago, partner of Stonepoint Properties, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Stonepoint can be reached at:
Angie Robago
STONEPOINT PROPERTIES
8023 Vantage Ste 890
San Antonio, TX 78230
Tel: (210) 384-0200
About De'Angeleo Revocable Trust
De'Angeleo Revocable Trust filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
20-51801) on October 26, 2020. At the time of the filing, the
Debtor had estimated assets of between $1,000,001 and $10,000,000
and liabilities of between $500,001 and $1,000,000 million. The
Law Office of Albert W. Van Cleave III, PLLC serves as the Debtor's
counsel.
DIAMOND J FARMS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Diamond J Farms LLC
100 Shoreline Highway
Building B, Suite 100
Mill Valley, CA 94941
Business Description: Diamond J Farms LLC is engaged in activities
related to real estate.
Chapter 11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Northern District of California
Case No.: 20-30933
Judge: Hon. Hannah L. Blumenstiel
Debtor's Counsel: James A. Shepherd, Esq.
LAW OFFICES OF JAMES SHEPHERD
3000 Citrus Circle
Suite 204
Walnut Creek, CA 94598
Tel: 925-954-7554
E-mail: jim@jsheplaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $50,000 to $100,000
The petition was signed by Lane Jenkins, sole member/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/M53DKQA/Diamond_J_Farms_LLC__canbke-20-30933__0001.0.pdf?mcid=tGE4TAMA
DIOCESE OF CAMDEN: Arthur J. Abramowitz Updates on Saint Joseph
---------------------------------------------------------------
In the Chapter 11 cases of The Diocese of Camden, New Jersey,
Attorney Arthur J. Abramowitz and a member of the firm Sherman
Silverstein Kohl Rose & Podolsky submitted a supplemental verified
statement under Rule 2019 of the Federal Rules of Bankruptcy
Procedure, to disclose that it is representing Saint Joseph High
School, Hammonton, N.J., Inc.
SSK is representing sixty-two parishes, one mission and five
schools collectively referred to as the "Clients" that were
previously identified in Docket # 134. The party listed below, for
purposes of this pleading is referred to as "Client."
As of Nov. 16, 2020, the Client and their disclosable economic
interests are:
Saint Joseph High School, Hammonton, N.J., Inc.
500 Greentree Road
Glassboro NJ 08028
* Contingent, unliquidated creditor
SSK holds no claims against nor does it have any interest in the
Debtor, and it has not represented a committee or indenture trustee
in this case. The Client is not an affiliate or insider, except to
the extent, as stated in the DECLARATION OF REVEREND ROBERT E.
HUGHES REGARDING STRUCTURE AND RE: FILING HISTORY OF THE DIOCESE OF
CAMDEN, NEW JERSEY, AND IN SUPPORT OF THE CHAPTER 11 PETITION AND
FIRST DAY PLEADINGS [Docket #3] 60: "Pursuant to N.J.S.A. 16:15-1
and 15-3, each of the Parish Corporations is governed by a Board of
Trustees comprised of the Bishop, the Vicar General of the Diocese,
the Pastor of the Parish and two lay members of the Parish."
The schools are not affiliates or insiders of one another, except,
to the extent state in 65 of the Declaration that states: "There
are five high schools affiliated with the Diocese. Three of these
high schools are Title 15A nonprofit corporations: (i) Camden
Catholic High School located in Cherry Hill, New Jersey; (ii) Holy
Spirit High School located in Absecon, New Jersey; and (iii) Paul
VI High School located in Haddon Township, New Jersey. The Bishop
of the Diocese is the member of the corporation and he appoints the
trustees and certain corporate officers and has certain reserved
powers."
SSK provides legal services to the Client with respect to matters
related to these bankruptcy cases. The Client is aware of and have
consented to SSK's representation in this case.
The full amount of each of the Client's claims is undetermined
currently.
All the information contained herein is intended solely to comply
with Bankruptcy Rule 2019 and is not intended to be used for any
other purpose. SSK and the Client reserve all their rights,
including the right to supplement or amend this statement or the
information contained herein pursuant to Bankruptcy Rule 2019.
The filing of this Verified Statement is without prejudice to any
and all rights of Client and without waiving any such rights
including without limitation: Client's rights to have final orders
in non-core matters entered only after de novo review by a District
Court Judge; Client's rights to trial by jury in any proceeding and
any trial on its claims; Client's rights to have the reference
withdrawn by the District Court in any matter subject to mandatory
or discretionary withdrawal or abstention to the extent not
previously directed; Client's rights in not submitting itself to
the jurisdiction of the Bankruptcy Court; and/or any other rights,
claims, actions, defenses, reclamations, setoffs, or recoupments to
which Client is or may be entitled under any agreement, in law or
in equity, all of which rights, claims, actions, defenses,
reclamations, setoffs, and recoupments the Client expressly reserve
and maintain.
Counsel for certain Parishes, a Mission, and certain schools can be
reached at:
Arthur J. Abramowitz, Esq.
Sherman, Silverstein, Kohl, Rose & Podolsky, P.A.
308 Harper Drive, Suite 200
Moorestown, NJ 08057
Tel: 856-662-0700
Email: aabramowitz@shermansilverstein.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/35M6N9x
About The Diocese of Camden, NJ
The Diocese of Camden, New Jersey is a nonprofit religious
corporation organized pursuant to Title 16 of the Revised Statutes
of New Jersey. The Diocese is the secular legal embodiment of the
Roman Catholic Diocese of Camden, a juridic person recognized under
Canon Law.
The Diocese of Camden sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 20-21257) on Oct. 1, 2020.
The petition was signed by Reverend Robert E. Hughes, vicar
general/vice president. At the time of the filing, the Debtor had
total assets of $53,575,365 and liabilities of $25,727,209. Judge
Jerrold N. Poslusny Jr. oversees the case. McMANIMON, SCOTLAND &
BAUMANN, LLC is the Debtor's legal counsel.
DOLPHIN ENTERTAINMENT: Incurs $138K Net Loss in Third Quarter
-------------------------------------------------------------
Dolphin Entertainment, Inc., filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $137,630 on $6.39 million of total revenues for the three months
ended Sept. 30, 2020, compared to a net loss of $326,441 on $5.95
million of total revenues for the three months ended Sept. 30,
2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss of $1.01 million on $18.22 million of total revenues
compared to a net loss of $1 million on $18.55 million of total
revenues for the same period a year ago.
As of Sept. 30, 2020, the Company had $51.27 million in total
assets, $30.80 million in total liabilities, and $20.47 million in
total stockholders' equity.
The Company had an accumulated deficit of $97,040,233 as of Sept.
30, 2020. As of Sept. 30, 2020, the Company had a working capital
deficit of $2,348,377 and therefore does not have adequate capital
to fund its obligations as they come due or to maintain or grow its
operations. In addition, several of the Company's subsidiaries
operate in industries that have been adversely affected by the
government mandated work-from-home, stay-at-home and
shelter-in-place orders as a result of the novel coronavirus
COVID-19. As a result, the Company's revenues have been negatively
impacted by a reduction in the services we provide to clients
operating in these industries. The Company has taken measures such
as a freeze on hiring, salary reductions, staff reductions and cuts
in non-essential spending to mitigate the reduction in revenues.
The Company said it is dependent upon funds from the issuance of
debt securities, securities convertible into shares of Common
Stock, sales of shares of Common Stock and financial support of
certain shareholders. The continued spread of COVID-19 and
uncertain market conditions may limit the Company's ability to
access capital. If the Company is unable to obtain funding from
these sources within the next 12 months, it could be forced to
curtail its business operations or liquidate. These factors raise
substantial doubt about the ability of the Company to continue as a
going concern within one year after these unaudited condensed
consolidated financial statements are issued.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1282224/000155335020001028/dlpn_10q.htm
About Dolphin Entertainment
Headquartered in Coral Gables, Florida, Dolphin Entertainment, Inc.
-- http://www.dolphinentertainment.com/-- is an independent
entertainment marketing and premium content development company.
Through its subsidiaries, 42West LLC, The Door Marketing Group LLC
and Shore Fire Media, Ltd, the Company provides expert strategic
marketing and publicity services to many of the top brands, both
individual and corporate, in the entertainment, hospitality and
music industries.
Dolphin Entertainment reported a net loss of $1.19 million for the
year ended Dec. 31, 2019, compared to a net loss of $2.91 million
for the year ended Dec. 31, 2018. As of June 30, 2020, the Company
had $49.75 million in total assets, $30.21 million in total
liabilities, and $19.54 million in total stockholders' equity.
BDO USA, LLP, in Miami, Florida, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated March
30, 2020 citing that the Company has suffered recurring losses from
operations from prior years, has an accumulated deficit, and a
working capital deficit that raise substantial doubt about its
ability to continue as a going concern.
DPW HOLDINGS: Incurs $16.7 Million Net Loss in Third Quarter
------------------------------------------------------------
DPW Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $16.73 million on $5.67 million of total revenue for the three
months ended Sept. 30, 2020, compared to a net loss of $10.34
million on $5.34 million of total revenue for the three months
ended Sept. 30, 2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss of $24.64 million on $16.68 million of total revenue
compared to a net loss of $21.11 million on $16.10 million of total
revenue for the nine months ended Sept. 30, 2019.
As of Sept. 30, 2020, the Company had $43.64 million in total
assets, $39.12 million in total liabilities, and $4.52 million in
total stockholders' equity.
The Company expects to continue to incur losses for the foreseeable
future and needs to raise additional capital to continue its
business development initiatives and to support its working capital
requirements. On Feb. 10, 2020, the Company entered into a Master
Exchange Agreement with Esousa Holdings, LLC, which agreed to
purchase up to approximately $7.7 million in certain promissory
notes previously issued by the Company. Management believes that
the Company has access to capital resources through potential
public or private issuances of debt or equity securities. However,
if the Company is unable to raise additional capital, which ability
could be adversely affected by the outbreak of a novel coronavirus,
it may be required to curtail operations and take additional
measures to reduce costs, including reducing its workforce and
eliminating outside consultants to conserve its cash in amounts
sufficient to sustain operations and meet its obligations. These
matters raise substantial doubt about the Company's ability to
continue as a going concern.
Backlog
The Company reports that its order backlog at the end of the third
quarter was approximately $66.5 million, including $46 million of
related party backlog (note that related-party backlog is
delinquent in the production schedule).
DPW's CFO Kenneth S. Cragun said, "The results for the first nine
months of 2020 demonstrate that we are achieving our objectives to
grow revenue and improve operating results. In spite of the
disruption from the COVID-19 pandemic, we were able to grow third
quarter revenues by 6.2% from the prior year period, driven by our
defense business. Our gross margins for the first nine months of
2020 improved dramatically, up $2.9 million or 110.8% from the
first nine months of 2019. Combined with a reduction in operating
expenses, our loss from continuing operations for the first nine
months of 2020 decreased by $10.4 million from the comparable prior
year period."
DPW's CEO and Chairman, Milton "Todd" Ault, III said, "There are,
in my view, three important indicators that stockholders and
investors should pay attention to; first, top-line growth during a
disruptive pandemic; second, major improvement in gross margins and
third, lower operating expenses. I would like to thank our
employees and partners for their dedication, focus and amazing
performance during these challenging times. At the beginning of
2018, we stated that our long-term goals include growing our
consolidated business to $100 million in annual revenues. We
believe we are making progress towards this goal with our
significant order backlog, improved capital structure, growth in
the defense business and new product announcements such as the
Coolisys electric vehicle chargers."
Mr. Ault continued, "I would like to restate our mission and
discuss our strategy. As a holding company, our business strategy
is designed to increase shareholder value. Under this strategy, we
are focused on managing and financially supporting our existing
subsidiaries and partner companies, with the goal of pursuing
monetization opportunities and maximizing shareholder value. We
have, are and will consider several initiatives including, among
others: public offerings, the sale of individual subsidiaries and
investees, the sale of certain or all equity interests in secondary
market transactions, or a combination thereof, as well as other
opportunities to maximize shareholder value. Over the recent past
we have provided capital and relevant expertise to fuel the growth
of businesses in defense/aerospace, industrial, telecommunications,
medical, automotive and textiles. We have provided capital to
subsidiaries as well as partner companies in which we have an
equity interest or may be actively involved, influencing
development through board representation and management support.
We anticipate making additional investments to increase value to
shareholders after satisfying our debt obligations and addressing
working capital needs."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/896493/000121465920009743/dpw111520010q.htm
About DPW Holdings
DPW Holdings, Inc. -- http://www.DPWHoldings.com/-- is a
diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through its wholly and majority-owned subsidiaries and
strategic investments, the Company provides mission-critical
products that support a diverse range of industries, including
defense/aerospace, industrial, telecommunications, medical, and
textiles. In addition, the Company owns a select portfolio of
commercial hospitality properties and extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
DPW's headquarters are located at 201 Shipyard Way, Suite E,
Newport Beach, CA 92663.
DPW Holdings recorded a net loss available to common stockholders
of $32.93 million for the year ended Dec. 31, 2019, compared to a
net loss available to common stockholders of $32.34 million for the
year ended Dec. 31, 2018. As of June 30, 2020, the Company had
$40.49 million in total assets, $37.46 million in total
liabilities, and $3.03 million in total stockholders' equity.
Ziv Haft., Certified Public Accountants (Isr.) BDO Member Firm, the
Company's auditor since 2012, issued a "going concern"
qualification in its report dated May 29, 2020 citing that the
Company has a working capital deficiency, has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
ETHEMA HEALTH: Incurs $10.2 Million Net Loss in Third Quarter
-------------------------------------------------------------
Ethema Health Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $10.23 million on $89,829 of revenues for the three months ended
Sept. 30, 2020, compared to a net loss of $353,230 on $148,042 of
revenues for the three months ended Sept. 30, 2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss of $11.53 million on $255,672 of revenues compared to a
net loss of $5.11 million on $328,244 of revenues for the same
period a year ago.
As of Sept. 30, 2020, the Company had $3.25 million in total
assets, $33.20 million in total liabilities, $400,000 in preferred
stock, and a total stockholders' deficit of $29.95 million.
As of Sept. 30, 2020 the Company has a working capital deficiency
of approximately $28,300,000 and accumulated deficit of
approximately $57,100,000. Management believes that current
available resources will not be sufficient to fund the Company's
planned expenditures over the next 12 months.
Ethema said, "...[T]he Company will be dependent upon the raising
of additional capital through placement of common shares, and/or
debt financing in order to implement its business plan, and
generating sufficient revenue in excess of costs. If the Company
raises additional capital through the issuance of equity securities
or securities convertible into equity, stockholders will experience
dilution, and such securities may have rights, preferences or
privileges senior to those of the holders of common stock or
convertible senior notes. If the Company raises additional funds
by issuing debt, the Company may be subject to limitations on its
operations, through debt covenants or other restrictions. If the
Company obtains additional funds through arrangements with
collaborators or strategic partners, the Company may be required to
relinquish its rights to certain geographical areas, or techniques
that it might otherwise seek to retain. There is no assurance that
the Company will be successful with future financing ventures, and
the inability to secure such financing may have a material adverse
effect on the Company's financial condition. These factors create
substantial doubt about the Company's ability to continue as a
going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/792935/000172186820000540/f2sgrst10q111520.htm
About Ethema Health
Headquartered in West Palm Beach, Florida, Ethema Health
Corporation -- http://www.ethemahealth.com/-- operates in the
behavioral healthcare space specifically in the treatment of
substance use disorders. Ethema developed a unique style of
treatment over the last eight years and has had much success with
in-patient treatment for adults. Ethema will continue to develop
world class programs and techniques for North America.
Ethema reported a net loss of $14.96 million for the year ended
Dec. 31, 2019, compared to a net loss of $8.18 million for the year
ended Dec. 31, 2018. As of Dec. 31, 2019, the Company had $3.21
million in total assets, $23.23 million in total liabilities, and a
total stockholders' deficit of $20.02 million.
Daszkal Bolton LLP, in Fort Lauderdale, Florida, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated July 10, 2020, citing that the Company had accumulated
deficit of approximately $45.5 million and negative working capital
of approximately $18.3 million at Dec. 31, 2019, which raises
substantial doubt about its ability to continue as a going concern.
EXACTUS INC: Incurs $3.1 Million Net Loss in Third Quarter
----------------------------------------------------------
Exactus, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $3.06
million on $678,050 of total net revenues for the three months
ended Sept. 30, 2020, compared to a net loss of $2.03 million on
$60,153 of total net revenues for the three months ended Sept. 30,
2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss of $7.56 million on $2.04 million of total net revenues
compared to a net loss of $4.54 million on $215,816 of total net
revenues for the same period a year ago.
As of Sept. 30, 2020, the Company had $3.11 million in total
assets, $5 million in total liabilities, and a total stockholders'
deficit of $1.89 million.
The Company had a net loss attributable to Exactus Inc. common
stockholders of $6,081,726 for the nine months ended September 30,
2020. The net cash used in operating activities was $563,022 for
the nine months ended Sept. 30, 2020. Additionally, the Company
had an accumulated deficit of $27,005,407 and working capital
deficit of $3,649,981 at Sept. 30, 2020. The Company said these
factors raise substantial doubt about its ability to continue as a
going concern for a period of twelve months from the issuance date
of this report. Management cannot provide assurance that the
Company will ultimately achieve profitable operations or become
cash flow positive, or raise additional debt and/or equity capital.
The Company is seeking to raise capital through additional debt
and/or equity financings to fund its operations in the future.
Although the Company has historically raised capital from sales of
common and preferred shares and from the issuance of convertible
promissory notes, there is no assurance that it will be able to
continue to do so. If the Company is unable to raise additional
capital or secure additional lending in the near future, management
expects that the Company will need to curtail its operations.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1552189/000165495420012678/exdi10q_sep302020.htm
About Exactus
Exactus Inc. (OTCQB:EXDI) -- http://www.exactusinc.com/-- is a
producer and supplier of hemp-derived ingredients and feminized
hemp genetics. Exactus is committed to creating a positive impact
on society and the environment promoting sustainable agricultural
practices. Exactus specializes in hemp-derived ingredients
(CBD/CBG/CBC/CBN) and feminized seeds that meet the highest
standards of quality and traceability. Through research and
development, the Company continues to stay ahead of market trends
and regulations. Exactus is at the forefront of product
development for the beverage, food, pets, cosmetics, wellness, and
pharmaceutical industries.
Exactus reported a net loss of $10.22 million for the year ended
Dec. 31, 2019, compared to a net loss of $4.34 million for the year
ended Dec. 31, 2018. As of June 30, 2020, the Company had $6.03
million in total assets, $5.21 million in total liabilities, and
$817,142 in total stockholders' equity.
RBSM LLP, in Henderson, NV, the Company's auditor since 2014,
issued a "going concern" qualification in its report dated May 22,
2020, citing that the Company has recurring losses from operations,
limited cash flow, and an accumulated deficit. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
FANCHEST INC: Seeks to Hire Offit Kurman as Attorney
----------------------------------------------------
Fanchest, Inc., seeks authority from the U.S. Bankruptcy Court for
the Eastern District of New York to employ Offit Kurman, P.A., as
attorney to the Debtor.
Fanchest, Inc. requires Offit Kurman to:
a. take all necessary action to protect and preserve the
bankruptcy estate of the Debtor, including the prosecution
of actions on the Debtor's and the estate's behalf, the
defense of any actions commenced against the Debtor, the
negotiation of disputes in which the Debtor is involved,
and the preparation of objections to claims filed against
the Debtor's estate;
b. provide legal advice with respect to the Debtor's powers
and duties as debtor in possession in the continued
operation of its business and management of its property;
c. negotiate, prepare and pursue confirmation of a subchapter
V plan;
d. prepare on behalf of the Debtor, as debtor in possession,
necessary motions, applications, answers, orders, reports,
and other legal papers in connection with the
administration of the Debtor's estate;
e. appear in court and to protect the interests of the Debtor
before this Court;
f. assist with any disposition of the Debtor's assets, by sale
or otherwise;
g. review all pleadings filed in this case; and
h. perform all other legal services in connection with this
case as may reasonably be required.
Offit Kurman will be paid at these hourly rates:
Attorneys $425 to $650
Paralegals $165
Offit Kurman will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael T. Conway, partner of Offit Kurman, P.A., assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Offit Kurman can be reached at:
Michael T. Conway, Esq.
OFFIT KURMAN, P.A.
590 Madison Avenue, 6th Floor
New York, NY 10016
Tel: (929) 476-0041
Fax: (212) 545-1656
E-mail: Michael.Conway@OffitKurman.com
About Fanchest, Inc.
Fanchest, Inc., based in Brooklyn, NY, filed a Chapter 11 petition
(Bankr. E.D.N.Y. Case No. 20-43932) on Nov. 6, 2020. The petition
was signed by James Waltz, president. In its petition, the Debtor
disclosed $11,784,774 in assets and $3,814,453 in liabilities. The
Hon. Jil Mazer-Marino presides over the case. OFFIT KURMAN, P.A.,
serves as bankruptcy counsel to the Debtor.
FREEPORT-MCMORAN INC: S&P Affirms 'BB' ICR; Outlook Positive
------------------------------------------------------------
S&P Global Ratings revised the outlook on U.S.-based miner
Freeport-McMoRan Inc. to positive from stable and affirmed all its
ratings, including the 'BB' issuer credit ratings on FCX.
Freeport-McMoRan Inc. made significant progress in production and
cost-reduction measures at its Grasberg underground mine in
Indonesia this year.
Copper prices have rebounded amid renewed Chinese demand and an
expected global supply shortage in 2021 such that S&P now expects
Freeport will end 2021 with adjusted leverage close to 1.5x, about
half a turn lower than previously forecasted.
The Grasberg underground mine completion will drive profitability
and lower leverage in 2021 and 2022. Grasberg is on track to
produce 1.4 billion pounds of copper in 2021, which will
significantly reduce operating costs per pound. S&P Global Ratings
now assumes consolidated unit net production costs of about
$1.45-$1.50 per pound in 2020, down from S&P's $1.70-$1.75
assumption at the beginning of the year. S&P expects adjusted
leverage to decline to about 3x in 2020 and 1.5x in 2021 with
further reduction of unit net production costs.
Grasberg operations could drive significant cash flow growth after
the transition to underground mining is complete in 2022, even with
the reduced share of profit from this partnership.
S&P said, "We estimate that beginning in 2023, FCX should retain at
least $1 billion in discretionary cash flow (DCF) after accounting
for capital expenditures and distributions to noncontrolling
interests in PT Freeport Indonesia (PT-FI). We believe this will
build up a sizable liquidity cushion for potential smelter
construction and additional debt repayment."
Grasberg's profits are shared with the Indonesian government. FCX's
share of economic interest from Grasberg will decline to its
ownership share of 48.8%, and PT-FI's will increase to 51.2%
beginning in 2023.
Significant debt repayment and cost management during a low price
environment provides liquidity cushion and upside potential.
Copper price recovery has been strong since the collapse in the
first quarter. S&P believes Freeport could achieve a stronger
EBITDA margin in 2020, close to 25% and up from 16.4% in 2019.
Significant reduction in unit net cash costs should offset lower
production and relatively flat average annual copper prices. Given
its $2.86 per pound copper price assumption for 2021 and $2.90 for
2022, S&P expects FCX's operating cash flows (OCF) to increase to
about $4 billion in 2022 from the rating agency's estimate of $2.7
billion in 2020.
Freeport has repaid approximately $1.1 billion in debt principal
since year-end 2018. In addition, a portion of notes with near-term
maturities were refinanced with the issuance of $4 billion in new
senior notes maturing in 2027 through 2030. FCX's earliest
maturities are $524 million of 3.55% senior notes due in 2022 and
the Cerro Verde term loan balance due in two tranches, $305 million
in 2021 and $525 million in 2022. S&P believes the company should
generate sufficient free operating cash flow (FOCF) to repay these
upcoming maturities.
Indonesian operations pose significant regulatory and
environmental, social, and governance risks.
S&P said, "We continue to apply a negative adjustment that results
in a rating one notch below the implied anchor score. This reflects
Freeport's high concertation in the Indonesian operations, which we
expect will exceed 40% of consolidated revenues and copper
production after the transition to underground mining is complete
in 2022." Freeport will spend $1 billion-$1.2 billion per year to
complete the transition and could later invest additional funds on
smelter construction in Indonesia."
While the Grasberg minerals district is a highly productive and
profitable asset, it is exposed to heightened environmental
regulations, including management of tailings and overburden
created in the process of separation of rock from ore. The Grasberg
district is beset with frequent political, social, and economic
instability that could affect operations. Successful operations in
Indonesia require an annual renewal of export license and a good
relationship with the Indonesian government (which owns a majority
stake through PT-FI).
The positive outlook reflects the potential for an upgrade of
Freeport contingent upon achieving production and cost targets at
the Grasberg mine in the next 12 months. S&P believes Freeport is
on track to lower adjusted leverage below 2x at the end of 2021
based on its operational progress and S&P's expectation of
favorable copper demand outlook. Freeport has reached about 58% of
its 2021 production run rate target and reduced site and delivery
costs about 40% this year.
S&P could upgrade Freeport by one notch in the next 12 months if:
-- EBITDA and cash flows continue to improve such that adjusted
leverage declines under 2x and funds from operations (FFO) to debt
improves above 30%; and
-- The company generates positive FOCF after accounting for
noncontrolling dividend distributions to PT-FI and a potential
investment in a new smelter in Indonesia.
S&P could revise the outlook on Freeport to stable in the next 12
months if:
-- Adjusted leverage stays above 3x;
-- Further adjustments in the Grasberg mine plan lead to lower
than anticipated production volumes, higher costs and weaker
margins such that adjusted EBITDA falls below $3 billion; or
-- An aggressive shareholder returns coupled with spending on
corporate development including acquisitions, smelter spending and
mine development that could leave no DCF remaining for debt
repayment.
FUSE MEDIA: Sold to Latino Group, Is In Post-Bankruptcy Reset
-------------------------------------------------------------
Dade Hayes of Deadline reports that Fuse Media, owner of linear
cable networks, digital and streaming properties and live events
all aimed at Latino and multicultural millennial audiences, has
been acquired by a Latino-led management group.
Miguel "Mike" Roggero, who had been serving as CEO, leads the new
management and ownership team. The company, whose investors once
included Jennifer Lopez, went through Chapter 11 bankruptcy last
year.
Financial terms were not reported in the announcement. In filings
last year in U.S. Bankruptcy Court in Delaware, Fuse said it had
$201.2 million in assets and $242 million in debt.
Joining Roggero on the management and ownership team are content
distribution chief Judi Lopez and head of ad sales Fernando Romero.
Marc Leonard, Mark McIntire and Patrick Courtney oversee
programming, marketing and digital, respectively. Fuse's newly
configured board of directors includes Tony Nieves, president of
MARCA, a creative and marketing agency targeting the Latino
community, and Emeli Colletta, the former head of marketing for
Univision Interactive.
In 2015, Fuse merged with NUVOtv, which was backed by Jennifer
Lopez and her manager, Benny Medina. As with many cable networks,
it traveled a circuitous path after launching in 1994 as an
all-music joint venture of Canada's MuchMusic and Rainbow Media,
the onetime content arm of Cablevision now known as AMC Networks.
When Cablevision took full control in 2003, it maintained a
street-level studio in New York across Seventh Avenue from Madison
Square Garden. Fuse also earned a footnote in TV history as the
first traditional-media home of Billy Eichner's breakout YouTube
show, Billy on the Street.
Fuse in 2018 encountered difficulty with its primary linear
network, which was dropped by Comcast and Verizon because of those
operators' complaints about low-rated programming. Today, the
channel still reaches tens of millions of pay-TV homes via carriage
by Dish, DirecTV, Charter, Altice USA and virtual MVPDs like Sling
and FuboTV.
Along with the main channel, the company also has FM (Fuse Music).
While the network is not a mass-audience draw, executives have long
noted its multicultural appeal and its median age, which they say
is more than 15 years below cable's average.
"At a time when millions of Americans of all races and ethnicities
are calling for more representation and servicing of underserved
communities, the Fuse Media management team is taking ownership of
its collective destiny," Ruggero said. "Only through ownership can
Latino and other minorities reach our true potential." Media
companies, he added, "must do a better job of realistically
reflecting communities of color. Ownership means control and the
best way to determine one's fate. And today, we are taking our
destinies, and those of our community, into our own hands."
About Fuse Media
Fuse Media -- http://www.fusepress.tv-- is a cross-platform
entertainment media brand for multicultural youth. The company's
platforms include the Fuse and FM (Fuse Music) linear and
video-on-demand (VOD) channels; Fuse.TV online and social media
properties; OTT apps; and live events.
Fuse, LLC, and eight subsidiaries sought Chapter 11 protection
(Bankr. D. Del., Lead Case No. 19-10872) on April 22, 2019.
Fuse tapped Pachulski Stang Ziehl & Jones LLP as counsel, FTI
Consulting as financial advisor, and Kurtzman Carson Consultants,
LLC, as claims agent.
GARRETT MOTION: Gibson Dunn Updates List of First Lien Group
------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firm of Gibson, Dunn & Crutcher LLP submitted an amended
verified statement to disclose an updated list of Ad Hoc Group of
First Lien Lenders that it is representing in the Chapter 11 cases
of Garrett Motion Inc., et al.
On or about September 2020, members of the Ad Hoc Group of First
Lien Lenders retained attorneys presently with Gibson, Dunn &
Crutcher LLP to represent them as counsel in connection with a
potential restructuring of the outstanding debt obligations of the
above-captioned debtors and certain of their subsidiaries and
affiliates. From time to time thereafter, certain additional
holders of the Debtors' outstanding debt obligations have joined
the Ad Hoc Group of First Lien Lenders.
On September 22, 2020, the Ad Hoc Group of First Lien Lenders filed
the Verified Statement of the Ad Hoc Group of First Lien Lenders
Pursuant to Bankruptcy Rule 2019 [Docket No. 45]. Since that time,
the membership of the Ad Hoc Group of First Lien Lenders and the
disclosable economic interests in relation to the Debtors held or
managed by such members has changed. The Ad Hoc Group of First Lien
Lenders submits this Amended Verified Statement accordingly.
As of the date of this Amended Verified Statement, Gibson Dunn
represents the members of the Ad Hoc Group of First Lien Lenders in
their capacity as lenders under that certain Credit Agreement,
dated as of September 27, 2018 by and among Garrett LX III
S.a.r.l., Garrett Borrowing LLC and Garrett Motion Sarl, as
borrowers, the guarantors party thereto, the lenders party thereto,
and JPMorgan Chase Bank N.A., as administrative agent.
Gibson Dunn does not represent or purport to represent any other
entities in connection with the Debtors' chapter 11 cases. Gibson
Dunn does not represent the Ad Hoc Group of First Lien Lenders as a
"committee" and does not undertake to represent the interests of,
and is not a fiduciary for, any creditor, party in interest, or
other entity that has not signed a retention agreement with Gibson
Dunn. In addition, the Ad Hoc Group of First Lien Lenders does not
represent or purport to represent any other entities in connection
with the Debtors' chapter 11 cases.
Upon information and belief formed after due inquiry, Gibson Dunn
does not hold any disclosable economic interests in relation to the
Debtors.
As of Nov. 16, 2020, members of the Ad Hoc Group of First Lien
Lenders and their disclosable economic interests are:
Angelo, Gordon & Co.
245 Park Avenue
New York, NY 10167
* Term Loan B Obligations (€): 1,000,000.00
* Term Loan B Obligations ($): 40,288,002.66
* Senior Note Obligations (€): 2,310,000.00
* DIP Obligations: 32,000,000.00
Banco Bilboa Vizcaya
Argentaria, S.A.
New York Branch
1345 Avenue of the Americas
44th Floor
New York, NY 10105
* Revolving Loan Obligations (€): 32,000,000.00
* Term Loan A Obligations (€): 19,062,500.00
Blue Mountain Capital Management, LLC
280 Park Avenue
New York, NY 10017
* Term Loan B Obligations (€): 5,730,666.66
* Term Loan B Obligations ($): 4,421,250.00
* DIP Obligations: 2,800,000.00
Credit Suisse Asset Management, LLC &
Credit Suisse Asset Management Limited
11 Madison Avenue
New York, NY 10010
* Term Loan A Obligations (€): 23,637,500.00
* Term Loan B Obligations (€): 20,441,461.38
* Term Loan B Obligations ($): 35,556,238.87
* DIP Obligations ($): 34,000,000.00
Deutsche Bank AG
London Branch
Winchester House
1 Great Winchester St.
London EC3N 2DB, United Kingdom
* Revolving Loan Obligations (€): 47,500,000.00
* Term Loan A Obligations (€: 12,581,250.00
Eaton Vance Management
Two International Place
Boston, MA 02110
* Term Loan B Obligations (€): 10,642,666.67
* Term Loan B Obligations ($): 6,496,314.88
* DIP Obligations ($): 4,000,000.00
Elmwood Asset Management, LLC
40 West 57th Street Suite 1800
New York, NY 10017
* Term Loan B Obligations ($): 7,806,402.05
* DIP Obligations ($): 8,000,000.00
GoldenTree Asset Management LP
300 Park Avenue
20th Floor
New York, NY 10022
* Term Loan B Obligations (€): 13,917,333.33
* Term Loan B Obligations ($): 11,322,322.89
* DIP Obligations ($): 3,600,000.00
Hayfin Capital Management LLP
One Eagle Place
London, SW1Y 6AF
United Kingdom
* Term Loan B Obligations (€): 5,412,000.00
* Term Loan B Obligations ($): 2,456,250.00
HBK Master Fund L.P.
2300 North Field Street Suite 2200
Dallas, Texas 75201
* Term Loan A Obligations (€): 22,050,000.00
* Term Loan B Obligations (€): 17,056,656.00
Intermediate Capital Group PLC
Procession House
55 Ludgate Hill
London, EC4M 7JW
* Term Loan A Obligations (€): 19,062,500.00
* Term Loan B Obligations (€): 26,418,772.99
* DIP Obligations ($): 20,000,000.00
Invesco Senior Secured Management, Inc.
1166 Avenue of the Americas
25th Floor
New York, NY 10036
* Term Loan A Obligations (€): 15,000,000.00
* Term Loan B Obligations (€): 13,531299.16
* Term Loan B Obligations ($): 31,566,485.40
* DIP Obligations ($): 41,586,902.67
Investcorp Credit Management US LLC
280 Park Avenue
36th Floor
New York, NY 10017
* Term Loan B Obligations (€): 3,274,666.67
* Term Loan B Obligations ($): 10,540,797.35
* DIP Obligations ($): 4,000,000.00
Knighthead Capital Management LLC
1140 Sixth Avenue 12th Floor
New York, NY 10036
* Term Loan B Obligations (€): 5,000,000.00
M&G Alternatives Investment Management Limited and
M&G Investment Management Limited
10 Fenchurch Avenue
London, EC3M 5AG
* Term Loan B Obligations (€): 25,926,150.00
Marble Point Credit Management LLC
600 Steamboat Road Suite 202
Greenwich, CT 06830
* Term Loan B Obligations ($): 15,170,489.92
Nova Kreditna Banka Moribor d.d.
Ulica Vita Kraigherja 4
2000 Maribor, Slovenia
* Term Loan B Obligations (€): $8,186,666.67
Partners Group (USA) Inc.
1200 Entrepreneurial Drive
Broomfield, CO 80021
* Term Loan B Obligations (€): 3,555,466.67
Term Loan B Obligations ($): 1,992,398.64
Sixth Street Partners LLC
888 7th Ave.
35th Floor
New York, NY 10106
* Term Loan B Obligations ($): 15,754,536.00
* DIP Obligations ($): 16,000,000.00
Steele Creek Investment Management LLC
201 S. College Street
Suite 1690
Charlotte, NC 28202
* Term Loan B Obligations ($): 16,249,584.76
* DIP Obligations ($): 6,400,000.00
Sumitomo Mitsui Banking Corporation
Prinzenallee 7
40549 Dusseldorf, Germany
* Revolving Loan Obligations (€): 24,000,000.00
* Term Loan A Obligations (€): 12,962,500.00
Unicredit Bank AG
Arabellastrasse 12
81925 Munich, Germany
* Revolving Loan Obligations (€): 32,000,000.00
* Term Loan A Obligations (€): 19,062,500.00
Voya Alternative Asset Management LLC
7337 East Doubletree Ranch Road
Suite 100
Scottsdale, AZ 8525
* Term Loan B Obligations (€): 1,637,333.33
* Term Loan B Obligations ($): 20,143,483.45
Counsel to the Ad Hoc Group of First Lien Lenders can be reached
at:
GIBSON, DUNN & CRUTCHER LLP
Scott J. Greenberg, Esq.
Steven A. Domanowski, Esq.
200 Park Avenue
New York, NY 10166
Telephone: (212) 351-4000
Facsimile: (212) 351-4035
Email: sgreenberg@gibsondunn.com
sdomanowski@gibsondunn.com
- and -
Robert A. Klyman, Esq.
Matther G. Bouslog, Esq.
333 South Grand Avenue
Los Angeles, CA 90071
Telephone: (213) 229-7562
Facsimile: (213) 229-6562
Email: rklyman@gibsondunn.com
mbouslog@gibsondunn.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/35U3Q7f
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.
GLOBAL ACQUISITIONS: Gets Court Approval to Hire Appraiser
----------------------------------------------------------
Global Acquisitions Holding Group, Inc. received approval from the
U.S. District Court for the Central District of California to hire
Kristina Bruke of Appraisal Solution to appraise its real property
located at 15816 La Pena Ave., La Mirada, Calif.
Prior to the petition date, Appraisal Solution received $1,000 from
Global Acquisitions President Zeferino Luna.
Appraisal Solution and Ms. Burke are "disinterested persons" within
the meaning of Section 101(14) of the Bankruptcy Code, according to
court filings.
The appraiser can be reached at:
Kristina Burke, Esq.
Appraisal Solution
2516 Knoxville Ave.
Long Beach, CA 90815
Mobile: (562) 355-2430
Email: tinaburke11@gmail.com
About Global Acquisitions Holding Group
Global Acquisitions Holding Group, Inc. is a single asset real
estate (as defined in 11 U.S.C. Section 101(51)). It is the owner
of fee simple title to certain property located at 15816 La Pena
Ave., La Mirada, Calif., having an appraised value of $700,000.
Global Acquisitions Holding Group sought protection under Chapter
11 of the Bankruptcy Code (Bankr. C. D. Cal. Case No. 20-18910) on
Sept. 30, 2020. Global Acquisitions President Zeferino Luna, Jr.
signed the petition.
At the time of the filing, Debtor had total assets of $700,000 and
total liabilities of $1,220,295.
Judge Sheri Bluebond oversees the case. Anyama Law Firm, A
Professional Corporation, is Debtor's legal counsel.
GLOBAL HEALTHCARE: Posts $1.1 Million Net Income in Second Quarter
------------------------------------------------------------------
Global Healthcare REIT, Inc., filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
net income of $1.12 million on $5.13 million of total revenue for
the three months ended June 30, 2020, compared to a net loss of
$170,124 on $1.61 million of total revenue for the three months
ended June 30, 2019.
For the six months ended June 30, 2020, the Company reported net
income of $1.18 million on $8.98 million of total revenue compared
to a net loss of $9,969 on $2.89 million of total revenue for the
same period during the prior year.
Lance Baller, Global's president and CEO, said, "During the second
quarter, we built upon our prior successful efforts to effectively
navigate through the pandemic with operational improvements. It is
an instance where being smaller and more agile allowed our staff to
serve our residents in new and innovative ways. The Company
continues to move to a hybrid model of operated and leased
properties to minimize downside risk. Our operated facilities
performed well in the quarter, well ahead of the national averages.
As the Company moves forward with its recently enhanced business
model, the results have been effective. We look forward to our
rebranded Oklahoma City facility reopening after extensive
renovations late in the first quarter of 2021 to further enhance
our success. This facility will have a niche highly skilled
nursing segment for that community while still offering our
standard skilled nursing services. Also, the Company will be
implementing the necessary steps to rebrand the Company with a
corporate name that aligns it better with its current business
model. The Company has chosen Selectis Health, Inc. and will seek
the necessary majority shareholder approval to complete this
change. The Company has been working on strengthening its
management for more timely financial reporting and more efficient
operations which will support our growth. We will also shortly
begin rolling out our rebranding effort with the launch of a new
corporate website under the web address www.selectis.com. This
rollout will also entail the completion of individual websites and
digital marketing tools for each of our facilities."
As of June 30, 2020, the Company had $43.05 million in total
assets, $41.50 million in total liabilities, and $1.55 million in
total equity.
For the six months ended June 30, 2020, the Company reported net
cash provided by operations of $1,409,936. The Company has
incurred net losses in each of the previous five fiscal years and,
as of June 30, 2020, had an accumulated deficit of $10,792,565.
The Company said these circumstances raise substantial doubt as to
its ability to continue as a going concern. The Company's ability
to continue as a going concern is dependent upon the Company's
ability to generate sufficient revenues and cash flows to operate
profitably and meet contractual obligations or raise additional
capital through debt financing or through sales of common stock.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/727346/000149315220021975/form10-q.htm
About Global Healthcare
Global Healthcare REIT, Inc., acquires, develops, leases, manages
and disposes of healthcare real estate, and provides financing to
healthcare providers. The Company's portfolio will be comprised of
investments in the following three healthcare segments: (i) senior
housing, (ii) post-acute/skilled nursing and (iii) bonds securing
senior housing communities.
Global Healthcare reported a net loss attributable to common
stockholders of $891,614 for the year ended Dec. 31, 2019, compared
to a net loss attributable to common stockholders of $2.02 million
for the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had $39.88 million in total assets, $39.51 million in total
liabilities, and $366,650 in total equity.
MaloneBailey, LLP, in Houston, Texas, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
July 10, 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.
GULFPORT ENERGY: Paul, Porter Represent Noteholders Group
---------------------------------------------------------
In the Chapter 11 cases of Gulfport Energy Corporation, et al., the
law firms of Porter Hedges LLP and Porter Hedges LLP submitted a
verified statement under Rule 2019 of the Federal Rules of
Bankruptcy Procedure, to disclose that they are representing the Ad
Hoc Group of Noteholders.
The ad hoc group of certain beneficial holders of, or investment
managers or advisors to funds and/or accounts that hold, 6.625%
Senior Notes due 2023, 6.000% Senior Notes due 2024, 6.375% Senior
Notes due 2025, and the 6.375% Senior Notes due 2026.
In May 2020, certain members of the Ad Hoc Group of Noteholders
retained Paul, Weiss to represent them as counsel in connection
with a potential restructuring of the Debtors. In October 2020,
certain members of the Ad Hoc Group of Noteholders retained Porter
Hedges to serve as their Texas counsel with respect to such
matters.
As of Nov. 11, 2020, members of the Ad Hoc Group of Noteholders and
their disclosable economic interests are:
AllianceBernstein L.P.
150 4th Avenue North
Nashville, Tennessee 37219
* 2023 Notes: 255,000
* 2024 Notes: 36,995,000
* 2025 Notes: 56,829,000
* 2026 Notes: 43,398,000
BlackRock Financial Management
40 East 52nd Street
New York, New York 10022
* 2023 Notes: 2,343,000
* 2024 Notes: 32,135,000
* 2025 Notes: 24,134,000
* 2026 Notes: 1,444,000
Gen IV Investment Opportunities, LLC
1700 Broadway, 38th Floor
New York, New York 10019
* 2023 Notes: 5,500,000
* 2024 Notes: 19,000,000
* 2025 Notes: 3,665,000
* 2026 Notes: 8,500,000
* Existing Equity Interests: 2,670,525
JPMorgan Investment Management Inc. and
JPMorgan Chase Bank, N.A
1 E Ohio St., Floor 06
Indianapolis, Indiana 46204
* 2023 Notes: 13,855,000
* 2024 Notes: 67,140,000
* 2025 Notes: 24,306,000
* 2026 Notes: 67,314,000
MacKay Shields LLC
1345 Avenue of the Americas
New York, New York 10105
* 2023 Notes: 37,800,000
* 2024 Notes: 101,455,000
* 2025 Notes: 53,007,000
* 2026 Notes: 29,995,000
Nomura Corporate Research and
Asset Management Inc.
309 West 49th Street
New York, New York 10019
* 2024 Notes: 11,949,000
* 2025 Notes: 20,708,000
* 2026 Notes: 13,742,000
Silver Point Capital, L.P.
2 Greenwich Plaza
Greenwich, Connecticut 06830
* 2023 Notes: 38,832,000
* 2024 Notes: 137,879,000
* 2025 Notes: 217,710,000
* 2026 Notes: 136,787,000
* RBL Loans: 8,285,714.29
Third Point LLC
55 Hudson Yards
New York, New York 10001
* 2023 Notes: 31,170,000
* 2024 Notes: 33,735,000
* 2025 Notes: 17,312,000
* 2026 Notes: 8,050,000
Whitebox Advisors LLC
3033 Excelsior Blvd., Suite 500
Minneapolis, Minnesota 55416
* 2023 Notes: 15,110,000
* 2024 Notes: 7,269,000
* 2025 Notes: 3,100,000
* 2026 Notes: 10,770,000
Nothing contained in this Verified Statement is intended to or
should be construed to constitute (i) a limitation upon, or waiver
of, any right to assert, file, and/or amend claims against the
Debtors held by any member of the Ad Hoc Group of Noteholders, its
affiliates, or any other entity in accordance with applicable law
and any orders entered in these Chapter 11 Cases, or (ii) an
admission with respect to any fact or legal theory.
The Ad Hoc Group of Noteholders, through Counsel, reserves the
right to amend or supplement this Verified Statement as necessary
in accordance with Bankruptcy Rule 2019.
Counsel to the Ad Hoc Group of Noteholders can be reached at:
John F. Higgins, Esq.
M. Shane Johnson, Esq.
Megan Young-John, Esq.
Porter Hedges LLP
1000 Main Street, 36th Floor
Houston, TX 77002
Tel: (713) 226-6000
Fax: (713) 226-6248
Email: jhiggins@porterhedges.com
sjohnson@porterhedges.com
myoung-john@porterhedges.com
- and -
Alan W. Kornberg, Esq.
Robert A. Britton, Esq.
Michael M. Turkel, Esq.
Miriam M. Levi, Esq.
Stephanie P. Lascano, Esq.
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
Tel: (212) 373-3000
Fax: (212) 757-3990
Email: akornberg@paulweiss.com
rbritton@paulweiss.com
mturkel@paulweiss.com
mlevi@paulweiss.com
slascano@paulweiss.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3pGlvHn
About Gulfport Energy Corp.
Gulfport Energy Corporation (NASDAQ: GPOR) --
http://www.gulfportenergy.com/-- is an independent natural gas and
oil company focused on the exploration and development of natural
gas and oil properties in North America and a producer of natural
gas in the contiguous United States. Headquartered in Oklahoma
City, Gulfport holds significant acreage positions in the Utica
Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer
plays in Oklahoma. In addition, Gulfport holds non-core assets that
include an approximately 22% equity interest in Mammoth Energy
Services, Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil
Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.
Gulfport Energy reported net loss of $2.0 billion for the year
ended Dec. 31, 2019 as compared to net income of $430.6 million for
the year ended Dec. 31, 2018. As of June 30, 2020, Gulfport had
$2.58 billion in total assets, $2.35 billion in total liabilities,
and $231.34 million in total stockholders' equity.
As of Sept. 30, 2020, Gulfport had $2,375,559,000 in assets and
$2,520,336,000 in liabilities.
Gulfport Energy Corporation and its affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 20-35562) on Nov. 13,
2020.
The Hon. David R. Jones is the case judge.
The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy
counsel; JACKSON WALKER L.L.P. as local bankruptcy counsel; ALVAREZ
& MARSAL NORTH AMERICA, LLC as restructuring advisor; and PERELLA
WEINBERG PARTNERS L.P. and TUDOR, PICKERING, HOLT & CO. as
financial advisor. PRICEWATERHOUSECOOPERS LLP is the tax services
provider. EPIQ CORPORATE RESTRUCTURING, LLC, is the claims agent.
WACHTELL, LIPTON, ROSEN & KATZ is counsel for the Special Committee
of Gulfport Energy's Board of Directors of Gulfport Energy
Corporation and CHILMARK PARTNERS is the financial advisor.
KATTEN MUCHIN ROSENMAN LLP is counsel for the Special Committee of
the Governing Body of each Debtor other than Gulfport Energy
Corporation, and M-III PARTNERS, LP is the financial advisor.
HARVEY OST OILFIELD: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Harvey OST Oilfield Services, LLC
PO Box 1509
Malta, MT 59538-1509
Business Description: Harvey OST Oilfield Services, LLC is a
wholesaler of petroleum & petroleum
products.
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
District of Montana
Case No.: 20-40109
Debtor's Counsel: Steven M. Johnson, Esq.
CHURCH HARRIS JOHNSON & WILLIAMS PC
PO Box 1645
Great Falls, MT 59403-1645
Tel: 406-761-3000
Fax: 406-453-2323
Total Assets: $987,624
Total Liabilities: $3,430,931
The petition was signed by Dennis Ost, managing member.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/VWYQDGI/HARVEY_OST_OILFIELD_SERVICES_LLC__mtbke-20-40109__0001.0.pdf?mcid=tGE4TAMA
HEALTHIER CHOICES: Incurs $1.30 Million Net Loss in Third Quarter
-----------------------------------------------------------------
Healthier Choices Management Corp. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $1.30 million on $3.35 million of net total sales for
the three months ended Sept. 30, 2020, compared to a net loss of
$1.15 million on $3.42 million of net total sales for the three
months ended Sept. 30, 2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss of $2.81 million on $10.69 million of net total sales
compared to a net loss of $3.17 million on $11.61 million of net
total sales for the same period a year ago.
As of Sept. 30, 2020, the Company had $14.36 million in total
assets, $11.19 million in total liabilities, and $3.17 million in
total stockholders' equity.
The Company incurred a loss from operations of approximately $2.7
million for the nine months ended Sept. 30, 2020. As of Sept. 30,
2020, cash and cash equivalents totaled approximately $0.6 million.
Management believes these conditions raises substantial doubt
about the Company's ability to continue as a going concern within a
year and a day from the issuance of these consolidated financial
statements. The ability of the Company to continue as a going
concern is dependent on the Company's ability to generate
significant revenue and raise additional funds (either through
equity or debt financings, collaborative agreements or from other
sources). There are no assurances that the Company will be
successful in its efforts to generate significant revenues,
maintain a sufficient cash balance or report profitable operations
to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/844856/000084485620000042/form10q.htm
About Healthier Choices
Headquartered in Hollywood, Florida, Healthier Choices Management
Corp. -- www.healthiercmc.com -- is a holding company focused on
providing consumers with healthier daily choices with respect to
nutrition and other lifestyle alternatives.
The Company reported a net loss of $2.80 million for the year ended
Dec. 31, 2019, compared to a net loss of $13.16 million for the
year ended Dec.31, 2018.
HERTZ CORPORATION: Creditors' Committee Members Disclose Claims
---------------------------------------------------------------
In the Chapter 11 cases of The Hertz Corporation, et al., the law
firms of Benesch, Friedlander, Coplan & Aronoff LLP and Kramer
Levin Naftalis & Frankel LLP submitted a verified statement under
Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose
that they are representing the Official Committee of Unsecured
Creditors.
On the Petition Date, each of the Debtors filed a voluntary
petition for relief under chapter 11 of the Bankruptcy Code with
this Court.
On June 11, 2020, the Office of the United States Trustee for
Region 3 appointed the nine-member Creditors' Committee consisting
of: (i) American Automobile Association, Inc.; (ii) Emma Bradley;
(iii) Janice Dawson; (iv) International Brotherhood of Teamsters;
(v) Pension Benefit Guaranty Corporation; (vi) Sirius XM Radio
Inc.; (vii) Southwest Airlines Co.; (viii) U.S. Bank, National
Association, as indenture trustee; and (ix) Wells Fargo Bank, N.A.,
as indenture trustee. See Dkt. No. 392.
As of Nov. 16, 2020, each Committee members and their disclosable
economic interests are:
American Automobile Association, Inc.
1000 AAA Drive
Heathrow, FL 32746
Attn: David Polansky
* Unsecured claim of at least $11,235,688 on account of
prepetition trade payables.
Emma Bradley
c/o Law Office of Richard Cornfeld, LLC
1010 Market Street, Suite 1645
St. Louis, MO 63101
Attn: Richard Cornfeld
* Ms. Bradley is a litigation claimant in a case styled as Bradley
v. The Hertz Corporation, 3:15-cv-00652-NJR (S.D. Ill.), filed
May 1, 2015. On behalf of herself and a putative class of
similarly situated individuals who rented vehicles from Hertz in
Missouri since May 2010, Ms. Bradley alleges that Hertz charged
members of its Gold Plus Rewards Program an "Energy Surcharge"
and an excessive Licensing Fee in violation of the Missouri
Merchandising Practices Act, Mo. Rev. Stat. § 407.010 et seq.
Plaintiff's motion for class certification was fully briefed and
awaiting decision at the time Hertz filed its Suggestions of
Bankruptcy. The court had denied Hertz' motion for summary
judgment with respect to Plaintiff's claims for unfair practices
under the Missouri Merchandising Practices Act. See Bradley v.
Hertz Corp., No. 3:15-CV-652-NJR-RJD, 2019 WL 3975177 (S.D. Ill.
Aug. 22, 2019), reconsideration denied, No. 3:15-CV-652-NJR,
2020 WL 1529530 (S.D. Ill. Mar. 31, 2020).
Damages have not yet been liquidated but could exceed
$11,900,000 plus punitive damages.
Janice Dawson
c/o Barrera & Associates
2298 E. Maple Ave.
El Segundo, CA 90245
Attn: Patricio Barrera
* Plaintiff Janice Dawson filed a Wage and Hour Class Action
lawsuit against Hertz Transporting, Inc. The parties settled the
class action lawsuit in the amount of $1,550,000 which was
preliminarily approved by the United States District Court,
Central District Court of California.
International Brotherhood of Teamsters
25 Louisiana Ave., NW
Washington, DC 20001
Attn: Iain Gold
The International Brotherhood of Teamsters has claims totaling
$38,429,859.50 as follows:
* General unsecured claims on account of vacation pay of
$3,364,881.08, and
* Priority claims on account of vacation, sick and paid leave,
claims under the WARN Act, and other grievances of
$35,064,978.42.
Pension Benefit Guaranty Corporation
1200 K Street, NW
Washington, D.C. 20005
Attn: Jack Butler
* Contingent, unliquidated claims in an amount greater than
$132,200,000 arising from pension obligations of the Debtors.
Sirius XM Radio Inc.
1221 Avenue of the Americas
New York, NY 10020
Attn: Patrick Donnelly
* Unsecured claim of at least $2,000,000 on account of prepetition
trade payables.
Southwest Airlines Co.
2702 Love Field Drive HDQ-4GC
Dallas, TX 75235
Attn: James Sheppard
* Unsecured claim of at least $61.6 million relating to
prepetition trade payables and rejection damages.
U.S. Bank National Association
60 Livingston Ave. EP-MN-WS ID
St. Paul, MN 55107
Attn: Cindy Woodward
* Indenture Trustee for Senior Note totaling approximately
$27,593,000.
Wells Fargo Bank, N.A.
Corporate Trust Services
9062 Old Annapolis Road
Columbia, Maryland 21045
Attn: Megan Ford
Indenture Trustee for the following notes:
* $900,000,000 in 6.00% Senior Notes due January 2028
* $800,000,000 in 5.50% Senior Notes due October 2024
* $500,000,000 in 6.25% Senior Notes due October 2022
* $500,000,000 in 7.125% Senior Notes due August 2026.
Counsel for the Official Committee of Unsecured Creditors can be
reached at:
BENESCH, FRIEDLANDER, COPLAN & ARONOFF LLP
Jennifer R. Hoover, Esq.
Kevin M. Capuzzi, Esq.
John C. Gentile, Esq.
1313 North Market Street, Suite 1201
Wilmington, DE 19801
Telephone: (302) 442-7010
Facsimile: (302) 442-7012
Email: jhoover@beneschlaw.com
kcapuzzi@beneschlaw.com
jgentile@beneschlaw.com
- and -
KRAMER LEVIN NAFTALIS & FRANKEL LLP
Thomas Moers Mayer, Esq.
Amy Caton, Esq.
Alice J. Byowitz, Esq.
1177 Avenue of the Americas
New York, NY 10036
Telephone: (212) 715-9100
Facsimile: (212) 715-8000
Email: tmayer@kramerlevin.com
acaton@kramerlevin.com
abyowitz@kramerlevin.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3fjpiFt and https://bit.ly/332Cp9p
About Hertz Corp.
Hertz Corp. and its subsidiaries operate a worldwide vehicle rental
business under the Hertz, Dollar, and Thrifty brands, with car
rental locations in North America, Europe, Latin America, Africa,
Asia, Australia, the Caribbean, the Middle East, and New Zealand.
They also operate a vehicle leasing and fleet management solutions
business. Visit http://www.hertz.comfor more information.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A. as local counsel, Moelis &
Co. as investment banker, and FTI Consulting as financial advisor.
Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC as financial advisor. Ernst & Young
LLP provides audit and tax services to the committee.
HOUSE ISLAND NORTH: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: House Island North Real Estate Holding Company, LLC
1 House Is
Portland, ME 04108
Business Description: House Island North Real Estate Holding
Company -- https://www.houseisland.me -- is
private island hospitality and destination
event venue company.
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
District of Maine
Case No.: 20-20425
Judge: Hon. Peter G. Cary
Debtor's Counsel: George J. Marcus, Esq.
MARCUS CLEGG
16 Middle St Ste 501
Portland, ME 04101-5166
Email: bankruptcy@marcusclegg.com
Total Assets as of November 18, 2020: $5,602,500
Total Liabilities as of November 18, 2020: 5,112,984
The petition was signed by Noah J. Gordon, 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/HPFUTGY/House_Island_North_Real_Estate__mebke-20-20425__0001.0.pdf?mcid=tGE4TAMA
IMPRESA HOLDINGS: Committee Gets OK to Hire Buchalter as Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of Impresa Holdings
Acquisition Corporation and its affiliates received approval from
the U.S. Bankruptcy Court for the District of Delaware to retain
Buchalter, P.C. as its lead counsel.
The firm will provide these services:
(a) attend meetings of the committee;
(b) review financial and operational information furnished by
the Debtors to the committee;
(c) analyze and negotiate the budget and the terms and use of
the Debtors' cash collateral;
(d) assist in the Debtors' efforts to market and sell their
assets;
(e) assist the committee in negotiations with the Debtors and
other parties on any proposed Chapter 11 plan or exit strategy;
(f) confer with the Debtors' management, legal counsel,
financial advisor and other retained professionals;
(g) confer with the principals, legal counsel and advisors of
the Debtors' lenders and equity holders;
(h) review the Debtors' schedules, statements of financial
affairs and business plan;
(i) advise the committee as to the ramifications regarding all
of the Debtors' activities and motions before the court;
(j) review and analyze the Debtors' financial advisors' work
product and report to the committee;
(k) investigate and analyze the Debtors' pre-bankruptcy
conduct, transactions and transfers;
(l) provide the committee with legal advice regarding the
Debtors' Chapter 11 cases;
(m) prepare pleadings; and
(n) perform other legal services for the committee.
Buchalter will be paid at these hourly rates:
Julian Gurule Shareholder $745
Michael Wachtell Shareholder $625
Paul Arrow Shareholder $550
Nicholas Couchot Associate $275
Norman Shaw Paralegal $275
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases,
Buchalter made the following disclosures:
-- it has not agreed to any variations from, or alternatives
to, its standard or customary billing arrangements for this
engagement;
-- although in certain instances Buchalter's rates may vary
based upon geographic location, in these Chapter 11 cases, the firm
proposes to charge its lowest customary rates;
-- the firm has not represented the committee in the 12 months
prior to the Debtors' Chapter 11 filing; and
-- the committee and its legal counsel are currently
formulating a budget and staffing plan that is consistent with the
U.S. Trustee Guidelines.
Julian Gurule, Esq., a partner at Buchalter, disclosed in court
filings that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
Buchalter can be reached through:
Julian Gurule, Esq.
Buchalter, A Professional Corporation
1000 Wilshire Boulevard, Suite 1500
Los Angeles, CA 90017-2457
Tel: (213) 891-0700
Fax: (213) 896-0400
About Impresa Holdings
Impresa Holdings Acquisition Corp. designs, manufactures and
supplies precision sheet metal parts, CNC-machined components and
assemblies for commercial jets, regional and business aircraft,
military aircraft, and civil and military helicopters. Its services
include sheet metal fabrication, hydroform pressing and brake.
Impresa began operating in 1973 as Venture Aircraft and expanded
through a 2012 acquisition of Swift-Cor Aerospace. It then changed
its name to Impresa Aerospace.
Operating from a production facility in Gardena, Calif., Impresa
provides machined parts, fabricated components, assembled parts and
tooling for the aerospace and defense industries. In addition to
Boeing, its customers include Spirit AeroSystems, Raytheon,
Northrop Grumman, Cessna, Lockheed Martin and Gulfstream. It has
provided parts and components for Boeing's major airframes,
including the 787, 777 and 747 as well as the Airbus A380 and
Gulfstream's G550 and G650 planes.
On Sept. 24, 2020, Impresa and its affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 20-12399). At the time of
the filing, Impresa had estimated assets of less than $50,000 and
liabilities of between $10 million and $50 million.
Morris Nichols Arsht & Tunnell, LLP and Duff & Phelps Securities,
LLC serve as Debtors' legal counsel and investment banker,
respectively. Stretto is the claims agent.
IMPRESA HOLDINGS: Committee Gets OK to Hire Financial Advisor
-------------------------------------------------------------
The official committee of unsecured creditors of Impresa Holdings
Acquisition Corporation and its affiliates received approval from
the U.S. Bankruptcy Court for the District of Delaware to retain
Dundon Advisers LLC as its financial advisor.
The services that Dundon Advisers will render are:
a. assist in the analysis, review and monitoring of the
restructuring process, including an assessment of the unsecured
claims pool and potential recoveries for unsecured creditors;
b. develop a complete understanding of the Debtors' businesses
and their valuations;
c. determine whether there are viable alternative paths for the
disposition of the Debtors' assets from those being currently
proposed by the Debtors;
d. monitor and, to the extent appropriate, assist the Debtors
in efforts to develop and solicit transactions, which would support
unsecured creditor recovery;
e. assist the committee in identifying, valuing and pursuing
estate causes of action;
f. assist the committee to address claims against the Debtors
and to identify, preserve, value and monetize tax assets of the
Debtors;
g. advise the committee in negotiations with the Debtors and
third parties;
h. assist the committee in reviewing the Debtors' financial
reports;
i. review and provide analysis of any proposed disclosure
statement and Chapter 11 plan, and if appropriate, assist the
committee in developing an alternative Chapter 11 plan;
j. attend meetings and assist in discussions with the
committee, the Debtors, the secured lenders, the U.S. Trustee, and
other parties;
k. attend meetings of the committee and meetings with other
key stakeholders and parties;
l. provide testimony; and
m. perform other advisory services for the committee in
connection with Debtors' Chapter 11 cases.
The firm's customary hourly rates are:
Alex Mazier $700
Ammar Alyemany $400
April Kimm $525
Colin Breeze $630
Demetri Xistris $550
Eric Reubel $600
Harry Tucker $475
Laurence Pelosi $700
Lee Rooney $400
Matthew Dundon $750
Michael Garbe $525
Peter Hurwitz $700
Phillip Preis $650
Tabish Rizvi $550
Matthew Dundon, a principal at Dundon Advisers, disclosed in court
filings that the firm is disinterested as defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew Dundon
Dundon Advisers LLC
440 Mamaroneck Avenue, Fifth Floor
Harrison, NY 10528 USA
Phone: +1 (914) 341-1188
Fax: +1 (212) 202-4437
About Impresa Holdings
Impresa Holdings designs, manufactures, and supplies precision
sheet metal parts, CNC-machined components, and assemblies for
commercial jets, regional and business aircraft, military aircraft,
and civil and military helicopters. The company's services include
sheet metal fabrication, hydroform pressing and brake.
Impresa began operating in 1973 as Venture Aircraft and expanded
through a 2012 acquisition of Swift-Cor Aerospace. It then changed
its name Impresa Aerospace.
Operating from a production facility in Gardena, Calif., Impresa
provides machined parts, fabricated components, assembled parts and
tooling for the aerospace and defense industries. In addition to
Boeing, the debtor's customers include Spirit AeroSystems,
Raytheon, Northrop Grumman, Cessna, Lockheed Martin and Gulfstream.
It has provided parts and components for Boeing's major airframes,
including the 787, 777 and 747 as well as the Airbus A380 and
Gulfstream's G550 and G650 planes.
On Sept. 24, 2020, Impresa Holdings Acquisition Corp. and its
affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case
No. 20-12399). At the time of the filing, Impresa Holdings had
estimated assets of less than $50,000 and liabilities of between
$10 million and $50 million.
Morris Nichols Arsht & Tunnell, LLP and Duff & Phelps Securities,
LLC serve as Debtors' legal counsel and investment banker,
respectively. Stretto is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a committee of
unsecured creditors on Oct. 5, 2020. The committee tapped
Buchalter P.C. as its bankruptcy counsel, Burr & Forman LLP as
Delaware counsel, and Dundon Advisers LLC as financial advisor.
IMPRESA HOLDINGS: Committee Hires Burr & Forman as Delaware Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors of Impresa Holdings
Acquisition Corp. and its affiliates received approval from the
U.S. Bankruptcy Court for the District of Delaware to retain Burr &
Forman, LLP as its Delaware counsel.
Burr & Forman will provide these services:
a. advise the committee regarding its powers and duties and
provide strategic advice on how to accomplish its goals;
b. draft, review and comment on drafts of documents to ensure
compliance with local rules, practices and procedures;
c. assist the committee in its consultation with the
committee's lead counsel Buchalter, P.C. and the U.S. Trustee
relative to the administration of the Debtors' Chapter 11 cases;
d. draft, file, and serve documents as requested by Buchalter
and the committee;
e. assist the committee and Buchalter, as necessary, in the
investigation (including through discovery) of the acts, conduct,
assets, liabilities and financial condition of the Debtors, the
operation of their businesses, and any other matter relevant to the
cases or to the formulation of a plan of reorganization or
liquidation;
f. compile and coordinate delivery to the court and the U.S.
Trustee information required by the Bankruptcy Code, Bankruptcy
Rules, Local Rules, and any applicable U.S. Trustee guidelines;
g. appear in court and at any meetings of creditors in its
capacity as Delaware counsel;
h. monitor the case docket and coordinate with Buchalter and
any other professional retained by the committee;
i. participate in calls with the committee;
j. prepare, update and distribute critical dates memoranda and
working group lists;
k. handle inquiries and calls from creditors and counsel to
interested parties regarding pending matters and the general status
of the cases and coordinate with Buchalter on any necessary
responses; and
l. take on additional tasks and projects as the committee may
assign.
The current standard hourly rates charged by Burr & Forman
professionals and paraprofessionals are:
Richard A. Robinson Partner $855
J. Cory Falgowski Partner $635
Laura L. Ahtes Paralegal $320
The firm's hourly rates are:
Partners $315 to $855
Counsel $325 to $790
Associates $265 to $420
Legal Assistants $130 to $320
J. Cory Falgowski, Esq., a partner at Burr & Forman, disclosed in
court filings that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Falgowski disclosed that:
-- Burr & Forman has not agreed to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case;
-- the firm has not represented the committee in the 12 months
prepetition; and
-- Burr & Forman is developing a budget and staffing plan that
will be presented for approval by the committee in conjunction with
Buchalter.
The firm can be reached through:
Richard A. Robinson,Esq.
J. Cory Falgowski, Esq.
Burr & Forman LLP
1201 N. Market Street, Suite 1407
Wilmington, DE 19801
Tel: (302) 830-8300
Email: rrobinson@burr.com
jfalgowski@burr.com
About Impresa Holdings
Impresa Holdings designs, manufactures, and supplies precision
sheet metal parts, CNC-machined components, and assemblies for
commercial jets, regional and business aircraft, military aircraft,
and civil and military helicopters. The company's services include
sheet metal fabrication, hydroform pressing and brake.
Impresa began operating in 1973 as Venture Aircraft and expanded
through a 2012 acquisition of Swift-Cor Aerospace. It then changed
its name Impresa Aerospace.
Operating from a production facility in Gardena, Calif., Impresa
provides machined parts, fabricated components, assembled parts and
tooling for the aerospace and defense industries. In addition to
Boeing, the debtor's customers include Spirit AeroSystems,
Raytheon, Northrop Grumman, Cessna, Lockheed Martin and Gulfstream.
It has provided parts and components for Boeing's major airframes,
including the 787, 777 and 747 as well as the Airbus A380 and
Gulfstream's G550 and G650 planes.
On Sept. 24, 2020, Impresa Holdings Acquisition Corp. and its
affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case
No. 20-12399). At the time of the filing, Impresa Holdings had
estimated assets of less than $50,000 and liabilities of between
$10 million and $50 million.
Morris Nichols Arsht & Tunnell, LLP and Duff & Phelps Securities,
LLC serve as Debtors' legal counsel and investment banker,
respectively. Stretto is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a committee of
unsecured creditors on Oct. 5, 2020. The committee tapped
Buchalter P.C. as its bankruptcy counsel, Burr & Forman LLP as
Delaware counsel, and Dundon Advisers LLC as financial advisor.
INNOVATION PET: Case Summary & 19 Unsecured Creditors
-----------------------------------------------------
Debtor: Innovation Pet, Inc.
17011 Beach Blvd., Suite 900
Huntington Beach CA 92647
Business Description: Innovation Pet, Inc. --
https://www.innovationpet.com --
is a pet products company that offers
innovative products that meet the needs and
solves problems for pets and their caring
guardian. The Company's products include
chicken coops, coop odor eliminator, coop
nesting & cleaning, dog houses, hutches &
cottontails, hutch odor eliminator, duck
houses, and cat & dog treats, toys & litter
treatment.
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
Central District of California
Case No.: 20-13223
Judge: Hon. Scott C. Clarkson
Debtor's Counsel: James C. Bastian, Jr., Esq.
Melissa Davis Lowe, Esq.
SHULMAN BASTIAN FRIEDMAN & BUII LLP
100 Spectrum Center Drive, Suite 100
Irvine, CA 92618
Tel: 949-340-3400
Fax: 949-340-3000
Email: JBastian@shulmanbastian.com
MLowe@shulmanbastian.com
Total Assets: $1,085,209
Total Liabilities: $3,364,179
The petition was signed by Victoria Coopman, chief executive
officer.
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/5A4VESQ/Innovation_Pet_Inc_a_California__cacbke-20-13223__0001.0.pdf?mcid=tGE4TAMA
IOLA LIVING: Hires Alliance Appraisal as Appraiser
--------------------------------------------------
Iola Living Assistance, Inc., seeks authority from the U.S.
Bankruptcy Court for the Eastern District of Wisconsin to employ
Alliance Appraisal Group, as appraiser to the Debtor.
Iola Living requires Alliance Appraisal to appraise the Debtor's
real properties known as the Living Oaks Assisted Living, located
at 505 W. Iola Street, Iola, WI 54945, and the Willows, located at
515 W. Iola Street, Iola, WI 54945.
Alliance Appraisal will be paid at the hourly rate of $300.
Alliance Appraisal will be paid a retainer in the amount of
$5,000.
Alliance Appraisal will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey G. Pelegrin, partner of Alliance Appraisal Group, assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Alliance Appraisal can be reached at:
Jeffrey G. Pelegrin
ALLIANCE APPRAISAL GROUP
4321 West College Avenue, Suite 200
Appleton, WI 54914
Tel: (920) 460-9005
About Iola Living Assistance
Iola Living Assistance, Inc. -- http://iolaseniorliving.com/--
owns and operates a rehabilitation center in Iola, Wisconsin. It
offers independent living apartments, assisted living apartments,
and rehabilitative/long term care.
Iola Living Assistance, Inc., based in Iola, WI, filed a Chapter 11
petition (Bankr. E.D. Wis. Case No. 20-27329) on Nov. 6, 2020. In
the petition signed by CEO Jordan C. Edseth, the Debtor disclosed
$3,488,034 in assets and $6,224,895 in liabilities. The Hon.
Katherine M. Perhach presides over the case. STEINHILBER SWANSON
LLP, serves as bankruptcy counsel to the Debtor.
JACKSAM CORP: Needs to Achieve Profit to Stay as Going Concern
--------------------------------------------------------------
Jacksam Corporation filed its quarterly report on Form 10-Q,
disclosing a net loss of $2,165,693 on $735,604 of sales for the
three months ended Sept. 30, 2020, compared to a net loss of
$5,944,452 on $1,303,053 of sales for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $1,188,879,
total liabilities of $8,367,861, and $7,178,982 in total
stockholders' deficit.
Jacksam Corporation said, "The Company's financial statements are
prepared using U.S. GAAP applicable to a going concern, which
contemplates the realization of assets and liquidation of
liabilities in the normal course of business. However, the Company
has negative working capital, recurring losses, and does not have a
source of revenues sufficient to cover its operating costs. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
"The ability of the Company to continue as a going concern is
dependent upon its ability to successfully execute the business
plan and attain profitable operations. The accompanying financial
statements do not include any adjustments that may be necessary if
the Company is unable to continue as a going concern.
"In the coming year, the Company's foreseeable cash requirements
will relate to continual development of the operations of its
business, maintaining its good standing and making the requisite
filings with the SEC, and the payment of expenses associated with
operations and business developments. The Company may experience a
cash shortfall and be required to raise additional capital.
"Historically, it has mostly relied upon convertible notes payable
and cash flows from operations to finance its operations and
growth. Management may raise additional capital by retaining net
earnings or through future private offerings of the Company's stock
or through loans from private investors, although there can be no
assurance that it will be able to obtain such financing. The
Company's failure to do so could have a material and adverse effect
upon it and its shareholders."
A copy of the Form 10-Q is available at:
https://bit.ly/3pLaGnm
JAGUAR HEALTH: Incurs $7.87 Million Net Loss in Third Quarter
-------------------------------------------------------------
Jaguar Health, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
and comprehensive loss of $7.87 million on $2.77 million of total
revenue for the three months ended Sept. 30, 2020, compared to a
net loss and comprehensive loss of $7.56 million on $973,000 of
total revenue for the three months ended Sept. 30, 2019.
For the nine months ended Sept. 30, 2020, the Company reported a
net loss and comprehensive loss of $25.04 million on $6.81 million
of total revenue compared to a net loss and comprehensive loss of
$32.58 million on $4.27 million of total revenue for the nine
months ended Sept. 30, 2019.
As of Sept. 30, 2020, the Company had $36.23 million in total
assets, $28.43 million in total liabilities, and $7.81 million in
total stockholders' equity.
Jaguar said, "The Company, since its inception, has incurred
recurring operating losses and negative cash flows from operations
and has an accumulated deficit of $158.1 million as of Sept. 30,
2020. The Company expects to incur substantial losses and negative
cash flows in future periods. Further, the Company's future
operations are dependent on the success of the Company's ongoing
development and commercialization efforts, as well as securing of
additional financing and generating positive cash flows from
operations. There is no assurance that the Company will have
adequate cash balances to maintain its operations. In addition, as
a result of the recent outbreak of novel COVID-19, the Company may
experience disruptions in fiscal year 2020 until November 2021 that
could severely impact its supply chain, ongoing and future clinical
trials and commercialization of Mytesi.
"Although the Company plans to finance its operations and cash flow
needs through equity and/or debt financing, collaboration
arrangements with other entities, license royalty agreements, as
well as revenue from future product sales, the Company does not
believe its current cash balances are sufficient to fund its
operating plan through one year from the issuance of these
unaudited condensed consolidated financial statements. The Company
has an immediate need to raise cash. There can be no assurance
that additional funding will be available to the Company on
acceptable terms, or on a timely basis, if at all, or that the
Company will generate sufficient cash from operations to adequately
fund operating needs. If the Company is unable to obtain an
adequate level of financing needed for short-term operations and
the long-term development and commercialization of its products,
the Company will need to curtail planned activities and reduce
costs. Doing so will likely have an adverse effect on the
Company's ability to execute on its business plan; accordingly,
there is substantial doubt about the ability of the Company to
continue in existence as a going concern. The accompanying
unaudited condensed consolidated financial statements do not
include any adjustments that might result from the outcome of these
uncertainties."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1585608/000155837020013865/jagx-20200930x10q.htm
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial
stage pharmaceuticals company focused on developing novel,
sustainably derived gastrointestinal products on a global basis.
The Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc.,
focuses on developing and commercializing proprietary human
gastrointestinal pharmaceuticals for the global marketplace from
plants used traditionally in rainforest areas. Its Mytesi
(crofelemer) product is approved by the U.S. FDA for the
symptomatic relief of noninfectious diarrhea in adults with
HIV/AIDS on antiretroviral therapy.
Jaguar reported a net loss of $38.54 million for the year ended
Dec. 31, 2019, compared to a net loss of $32.15 million for the
year ended Dec. 31, 2018. As of June 30, 2020, the Company had
$37.58 million in total assets, $25.16 million in total
liabilities, $10.88 million in Series A redeemable convertible
preferred stock, and $1.54 million in total stockholders' equity.
Mayer Hoffman McCann P.C., in San Francisco, California, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated April 2, 2020 citing that the
Company has experienced losses since inception, significant cash
used in operations, and is dependent on future financing to meet
its obligations and fund its planned operations. These conditions
raise substantial doubt about its ability to continue as a going
concern.
JAGUAR HEALTH: Says Substantial Going Concern Doubt Exists
----------------------------------------------------------
Jaguar Health, Inc., filed its quarterly report on Form 10-Q,
disclosing a net loss and comprehensive loss of $7,866,000 on
$2,773,000 of total revenue for the three months ended Sept. 30,
2020, compared to a net loss and comprehensive loss of $7,555,000
on $973,000 of total revenue for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $36,234,000,
total liabilities of $28,428,000, and $7,806,000 in total
stockholders' equity.
Jaguar Health said, "The Company, since its inception, has incurred
recurring operating losses and negative cash flows from operations
and has an accumulated deficit of US$158.1 million as of September
30, 2020. The Company expects to incur substantial losses and
negative cash flows in future periods. Further, the Company's
future operations are dependent on the success of the Company's
ongoing development and commercialization efforts, as well as
securing of additional financing and generating positive cash flows
from operations. There is no assurance that the Company will have
adequate cash balances to maintain its operations. In addition, as
a result of the recent outbreak of novel COVID-19, the Company may
experience disruptions in fiscal year 2020 until November 2021 that
could severely impact its supply chain, ongoing and future clinical
trials and commercialization of Mytesi.
"Although the Company plans to finance its operations and cash flow
needs through equity and/or debt financing, collaboration
arrangements with other entities, license royalty agreements, as
well as revenue from future product sales, the Company does not
believe its current cash balances are sufficient to fund its
operating plan through one year from the issuance of these
unaudited condensed consolidated financial statements. The Company
has an immediate need to raise cash. There can be no assurance
that additional funding will be available to the Company on
acceptable terms, or on a timely basis, if at all, or that the
Company will generate sufficient cash from operations to adequately
fund operating needs. If the Company is unable to obtain an
adequate level of financing needed for short-term operations and
the long-term development and commercialization of its products,
the Company will need to curtail planned activities and reduce
costs. Doing so will likely have an adverse effect on the
Company's ability to execute on its business plan; accordingly,
there is substantial doubt about the ability of the Company to
continue in existence as a going concern. The accompanying
unaudited condensed consolidated financial statements do not
include any adjustments that might result from the outcome of these
uncertainties."
A copy of the Form 10-Q is available at:
https://bit.ly/2ISFNwk
San Francisco, California-based Jaguar Health, Inc., operates as a
natural-products pharmaceutical company. The Company engages in
development and commercialization of gastrointestinal prescription
products for humans and animals, as well as non-prescription
gastrointestinal products for animals. Jaguar Health serves human
and animal health market worldwide.
JET SALES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Jet Sales West LLC
24 Western Briar Rd.
Roswell, NM 88201
Business Description: Jet Sales West LLC rents and leases
commercial and industrial machinery and
equipment.
Chapter 11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
District of New Mexico
Case No.: 20-12179
Judge: Hon. David T. Thuma
Debtor's Counsel: Larry Fields, Esq.
LARRY G. FIELDS, ATTORNEY
2809 Riverside Dr
Roswell, NM 88201
Email: fieldslaw@me.com
Total Assets: $3,120,000
Total Liabilities: $9,673,226
The petition was signed by Lyle Byrum, manager.
A copy of the petition containing, among other items, a list of the
Debtor's 20 largest unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/SRE7V7Y/Jet_Sales_West_LLC__nmbke-20-12179__0001.0.pdf?mcid=tGE4TAMA
JONES SODA: Reports $450K Net Loss for Quarter Ended Sept. 30
-------------------------------------------------------------
Jones Soda Co. filed its quarterly report on Form 10-Q, disclosing
a net loss of $450,000 on $3,541,000 of revenue for the three
months ended Sept. 30, 2020, compared to a net loss of $476,000 on
$3,032,000 of revenue for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $9,303,000,
total liabilities of $4,136,000, and $5,167,000 in total
shareholders' equity.
The Company said, "As of September 30, 2020, we had cash and
cash-equivalents of approximately US$4.3 million and working
capital of approximately US$6.7 million. Net cash used in
operations during the nine months ended September 30, 2020 totaled
approximately US$1.9 million compared to US$2.0 million used in
operations for the same period a year ago.
"We have experienced recurring losses from operations and negative
cash flows from operating activities. This situation creates
uncertainties about our ability to execute our business plan,
finance operations, and indicates substantial doubt about our
ability to continue as a going concern.
"We continue to experience negative cash flows from operations, as
well as an ongoing requirement for additional capital to support
working capital needs. Therefore, currently, based upon our
near-term anticipated level of operations and expenditures,
management believes that cash on hand is not sufficient to enable
us to fund operations for twelve months from the date the condensed
consolidated financial statements included in this Report are
issued. These conditions raise substantial doubt as to our ability
to continue as a going concern. Our ability to continue operations
is dependent upon achieving a profitable level of operations and on
our ability to obtain necessary financing to fund ongoing
operations. The continued spread of COVID-19 and uncertain market
conditions may limit our ability to access capital, may reduce
demand for our products, and may negatively impact our supply
chain.
"We will require additional financing to support our working
capital needs in the future. The amount of additional capital we
may require, the timing of our capital needs and the availability
of financing to fund those needs will depend on a number of
factors, including our strategic initiatives and operating plans,
the performance of our business and the market conditions for
available debt or equity financing. Additionally, the amount of
capital required will depend on our ability to meet our sales goals
and otherwise successfully execute our operating plan. We believe
it is imperative that we meet these sales objectives in order to
lessen our reliance on external financing in the future. The
continued spread of COVID-19 and uncertain market conditions may
limit our ability to access capital, may reduce demand for our
products, and may negatively impact our supply chain. We intend to
continually monitor and adjust our operating plan as necessary to
respond to developments in our business, our markets and the
broader economy. Although we believe various debt and equity
financing alternatives will be available to us to support our
working capital needs, financing arrangements on acceptable terms
may not be available to us when needed. Additionally, these
alternatives may require significant cash payments for interest and
other costs or could be highly dilutive to our existing
shareholders. Any such financing alternatives may not provide us
with sufficient funds to meet our long-term capital requirements.
If necessary, we may explore strategic transactions that we
consider to be in the best interest of our company and our
shareholders, which may include, without limitation, public or
private offerings of debt or equity securities, a rights offering,
and other strategic alternatives; however, these options may not
ultimately be available or feasible when needed."
A copy of the Form 10-Q is available at:
https://bit.ly/3lHFHGh
Jones Soda Co. develops, produces, markets and distributes premium
beverages which it sells and distributes primarily in the United
States and Canada through its network of independent distributors
and directly to its national and regional retail accounts. The
Company is based in Seattle, Washington.
K&W CAFETERIAS: Seeks to Hire Leonard Ryden as Broker
-----------------------------------------------------
K&W Cafeterias, Inc. seeks approval from the U.S. Bankruptcy Court
for the Middle District of North Carolina to hire Leonard Ryden
Burr Real Estate as its broker.
The broker will market the following properties:
a. Residential home at 705 Polo Oaks Drive, Winston-Salem,
N.C. The Debtor is not aware of any liens or encumbrances with
respect to this property, with the exception of accrued 2020
property taxes. The recommended listing price for this property is
$159,000.
b. Residential condominium at 20611 Cutter Ct., Cornelius,
N.C. The listing price for this parcel has not yet been determined.
However, the current tax value for the parcel is $677,600.
c. Residential condominium at 20613 Cutter Ct., Cornelius,
N.C. The listing price for this parcel has not yet been determined.
However, the current tax value for the parcel is $753,600.
d. Residential home at 20701 Pointe Regatta Drive, Cornelius,
N.C. The listing price for this parcel has not yet been determined.
However, the current tax value for the parcel is $709,500.
e. Approximately 2.73-acre property commonly known as Regatta
Island Drive, Cornelius, N.C. The listing price for this parcel has
not yet been determined. However, the current tax value for the
parcel is $2.4 million.
The Debtor has agreed to pay the broker a 5.5 percent commission at
closing with respect to the property at 705 Polo Oaks Drive; 4
percent with respect to the property at Regatta Island Drive; and 5
percent with respect to the remaining real properties.
Leonard Ryden is a disinterested person as that term is defined in
Section 101(14) of the Bankruptcy Code, according to court filings.
The broker can be reached through:
Molly Allred
Leonard Ryden Burr Real Estate
201 S Stratford Rd #200
Winston-Salem, NC 27103
Phone: +1 336-779-9200
About K&W Cafeterias
K&W Cafeterias, Inc., a company based in Winston Salem, N.C., filed
a Chapter 11 petition (Bankr. M.D.N.C. Case No. 20-50674) on Sept.
2, 2020. Judge Benjamin A. Kahn presides over the case.
In the petition signed by Dax C. Allred, president, the Debtor
disclosed $30,085,274 in assets and $22,189,229 in liabilities.
The Debtor tapped Northen Blue, LLP as its bankruptcy counsel, and
Bell Davis & Pitt P.A. and Constangy Brooks Smith & Prophete LLP as
its special counsel.
William Miller, U.S. bankruptcy administrator, appointed a
committee to represent unsecured creditors in Debtor's Chapter 11
case. The committee is represented by Waldrep Wall Babcock &
Bailey, PLLC.
KOPIN CORP: Has $969,000 Net Loss for the Quarter Ended Sept. 26
----------------------------------------------------------------
Kopin Corporation filed its quarterly report on Form 10-Q,
disclosing a net loss of $968,769 on $9,512,752 of revenues for the
three months ended Sept. 26, 2020, compared to a net loss of
$6,505,364 on $6,139,332 of revenues for the same period in 2019.
At Sept. 26, 2020, the Company had total assets of $37,659,025,
total liabilities of $14,353,810, and $23,305,215 in total
stockholders' equity.
Kopin Corp. said, "The Company incurred net losses of US$29.4
million and net cash outflows from operations of US$21.0 million
for the fiscal year ended 2019. The Company incurred a net loss of
US$5.8 million and net cash outflows from operations of US$6.3
million for the nine months ended September 26, 2020. In addition,
the Company has experienced a significant decline in its cash and
cash equivalents and marketable debt securities over the last
several years, which was primarily a result of funding operating
losses, of which a significant component related to the Company's
ongoing investments in research and development. The Company had
US$15.6 million of cash and cash equivalents and marketable debt
securities at September 26, 2020. The Company's historical and
current use of cash in operations combined with limited liquidity
resources raise substantial doubt regarding the Company's ability
to continue as a going concern."
A copy of the Form 10-Q is available at:
https://bit.ly/3lOa127
Kopin Corporation invents, develops, manufactures, and sells
various components and systems in the United States, the
Asia-Pacific, Europe, and internationally. It offers miniature
active-matrix liquid crystal displays, liquid crystal on silicon
displays/spatial light modulators, organic light emitting diode
displays, application specific integrated circuits, backlights,
optical lenses, and audio integrated circuits, as well as SOLOS
smart glasses, which are hands-free head-worn devices that obtain
information from sensors or the Internet via a smartphone and
displays the information on the sunglass lens. The company's
products are used in industrial and public safety applications;
consumer augmented and virtual reality wearable headsets; soldier,
avionic, and military armored vehicle applications; 3D optical
inspection systems; and training and simulation markets. Kopin
Corporation was founded in 1984 and is headquartered in
Westborough, Massachusetts.
LIVEXLIVE MEDIA: Incurs $10.2 Million Net Loss in Second Quarter
----------------------------------------------------------------
LiveXLive Media, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $10.19 million on $14.56 million of revenue for the three months
ended Sept. 30, 2020, compared to a net loss of $10.62 million on
$9.58 million of revenue for the three months ended Sept. 30,
2019.
LiveXLive CEO and Chairman, Robert Ellin, commented, "Delivering
the most authentic voice in music in the past 25 years, LiveXLive
is a leading talent-first platform focused on connecting artists
with their superfans - building long term, sustainable, valuable
franchises in audio music, podcasting, OTT, pay-per-view and live
streaming. Delivering our 10th consecutive quarter of record
revenues, our team has built one of the most powerful social live
music networks in the world to Attend, Listen, Watch, Engage, and
Transact. Based on completed and planned pay-per-view events, the
substantial increase in sponsorship deals, and an expected
improvement in ad revenue, we expect to report our 11th consecutive
quarter of record revenue for our current Q3 fiscal quarter."
For the six months ended Sept. 30, 2020, the Company reported a net
loss of $17.72 million on $25.06 million of revenue compared to a
net loss of $21.58 million on $19.08 millino of revenue for the
same period during the prior year.
As of Sept. 30, 2020, the Company had $81.01 million in total
assets, $67.81 million in total liabilities, and $13.20 million in
total stockholders' equity.
At Sept. 30, 2020, LiveXLive had approximately $21.0 million in
cash and cash equivalents, which includes restricted cash of $0.2
million.
The Company's principal sources of liquidity have historically been
its debt and equity issuances and its cash and cash equivalents
(which cash, cash equivalents and restricted cash amounted to $21.0
million as of Sept. 30, 2020). The Company has a history of
losses, and had a working capital deficiency of $11.8 million as of
Sept. 30, 2020. The Company said these factors, among others,
raise substantial doubt about its ability to continue as a going
concern within one year from the date that these financial
statements are filed.
LiveXlive said, "The Company's ability to continue as a going
concern is dependent on its ability to execute its growth strategy
and on its ability to raise additional funds. The continued spread
of COVID-19 and uncertain market conditions may limit the Company's
ability to access capital, may reduce demand for its services, and
may negatively impact its ability to retain key personnel".
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1491419/000121390020037379/f10q0920_livexlivemedia.htm
About LiveXLive Media
Headquartered in West Hollywood, CA, LiveXLive --
http://www.livexlive.com-- is a global digital media company
focused on live entertainment. The Company operates LiveXLive, a
live music video streaming platform; and Slacker Radio, a streaming
music pioneer; and also produces original music-related content.
LiveXLive is at 'live social music network', delivering premium
livestreams, digital audio and on-demand music experiences from the
world's top music festivals and concerts, including Rock in Rio,
EDC Las Vegas, Hangout Music Festival, and many more. LiveXLive
also gives audiences access to premium original content, artist
exclusives and industry interviews. Through its owned and operated
Internet radio service, Slacker Radio (www.slacker.com), LiveXLive
delivers its users access to millions of songs and hundreds of
expert-curated stations.
LiveXLive reported a net loss of $38.93 million for the year ended
March 31, 2020, compared to a net loss of $37.76 million for the
year ended March 31, 2019. As of June 30, 2020, the Company had
$57.63 million in total assets, $68.94 million in total
liabilities, and a total stockholders' deficit of $11.32 million.
BDO USA, LLP, in Los Angeles, California, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated June 26, 2020, citing that the Company has suffered recurring
losses from operations, negative cash flows from operating
activities and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern. In
addition, the COVID-19 pandemic could have a material adverse
impact on the Company's results of operations, cash flows and
liquidity.
MALLINCKRODT PLC: Robbins, Sullivan Represent First Lien Group
--------------------------------------------------------------
In the Chapter 11 cases of Mallinckrodt PLC, et al., the law firms
of Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP and
Sullivan Hazeltine Allinson LLC submitted a verified statement
under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to
disclose that they are representing the Ad Hoc First Lien Notes
Group.
The Ad Hoc First Lien Notes Group formed by certain unaffiliated
holders of the Debtors' 10.000% first lien senior secured notes due
2025 issued under that certain Indenture dated as of April 7,
2020.
In or around November 2020, the Members of the Ad Hoc First Lien
Notes Group engaged Counsel to represent the Ad Hoc First Lien
Notes Group in connection with the Members’ holdings of the First
Lien Notes.
As of Nov. 17, 2020, members of the Ad Hoc First Lien Notes Group
and their disclosable economic interests are:
Aurelius Capital Management, LP
535 Madison Avenue 31st Floor
New York, NY 10022
* First Lien Notes: $49,629,000
* $103,512,201 2024 Term Loan Obligations
* $23,592,648 2025 Term Loan Obligations
* $34,673,000 Second Lien Notes Obligations
* $44,284,000 5.500% Senior Notes Obligations
* $49,200,000 5.625% Senior Notes Obligations
* $62,340,000 5.750% Senior Notes Obligations
* $20,804,000 4.75% Unsecured Notes Obligations
* 3,700,000 Shares
Capital Research and Management Company
333 South Hope Street 50th Floor
Los Angeles, CA 90071
* First Lien Notes: $170,880,000
* $17,188,000 5.500% Senior Notes Obligations
* $6,096,000 5.625% Senior Notes Obligations
* $12,025,000 5.750% Senior Notes Obligations
Counsel does not represent or purport to represent (a) any of the
Members of the Ad Hoc First Lien Notes Group in their individual
capacities in connection with their holdings of
the First Lien Notes or (b) any party other than the Ad Hoc First
Lien Notes Group in these Chapter 11 Cases. Upon information and
belief formed after due inquiry, Counsel does not currently hold
any claim against, or interest in, the Debtors or their estates.
Counsel submits this Verified Statement out of an abundance of
caution, and nothing herein should be construed as an admission
that the requirements of Bankruptcy Rule 2019 apply to Counsel's
representation of the Ad Hoc First Lien Notes Group.
Nothing in this Verified Statement, including Exhibit A hereto, is
intended to or should be construed to constitute: (i) a waiver or
release of any claims or interests against the Debtors by any
Member of the Ad Hoc First Lien Notes Group; (ii) an admission with
respect to any fact or legal theory; or (iii) an amendment to, or
restatement of, any proof of claim or interest in the Debtors.
Nothing herein should be construed as a limitation upon, or a
waiver of, any Ad Hoc First Lien Notes Group Members' right to
assert, file and/or amend a proof of claim in accordance with
applicable law and any orders entered in these Chapter 11 Cases.
The Ad Hoc First Lien Notes Group and Counsel reserve the right to
amend or supplement this Verified Statement as necessary in
accordance with Bankruptcy Rule 2019.
Counsel to the Ad Hoc First Lien Notes Group can be reached at:
SULLIVAN HAZELTINE ALLINSON LLC
William D. Sullivan, Esq.
919 North Market Street, Suite 420
Wilmington, DE 19801
Tel: (302) 428-8191
Fax: (302) 428-8195
Email: bsullivan@sha-llc.com
- and –
ROBBINS, RUSSELL, ENGLERT, ORSECK, UNTEREINER &
SAUBER LLP
Lawrence S. Robbins, Esq.
Michael L. Waldman, Esq.
Donald Burke, Esq.
Jason A. Shaffer, Esq.
2000 K Street, N.W., 4th Floor
Washington, DC 20006
Telephone: (202) 775-4500
Facsimile: (202) 775-4510
Email: lrobbins@robbinsrussell.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3nOMgaP and https://bit.ly/36Yxyao
About Mallinckdrodt
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
As of March 27, 2020, the Company had $10.17 billion in total
assets, $8.27 billion in total liabilities, and $1.89 billion in
total shareholders' equity.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware in the U.S. (Bankr. D.
Del. Lead Case No. 20-12522) to seek approval of a restructuring
that would reduce total debt by $1.3 billion and resolve
opioid-related claims against the Company.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Latham & Watkins LLP, Ropes & Gray LLP and Wachtell, Lipton, Rosen
& Katz are serving as counsel to the Company, Guggenheim
Securities, LLC is serving as investment banker and AlixPartners
LLP is serving as restructuring advisor to Mallinckrodt. Hogan
Lovells is serving as counsel with respect to the Acthar Gel
matter. Prime Clerk LLC is the claims agent.
MARIANINA OIL: Hires Zarin & Steinmetz as Special Counsel
---------------------------------------------------------
Marianina Oil Corp. seeks authority from the U.S. Bankruptcy Court
for the Southern District of New York to employ Zarin & Steinmetz
as substitute special litigation counsel in place of the Law
Offices of Joseph A. Romano, P.C.
The Debtor is party to several environmental actions and
proceedings involving, inter alia, (a) NYSDEC and (b) The City of
White Plains (the "Litigations").
Zarin & Steinmetz will render the following services:
a. continue to represent the Debtor with respect to the claims
and issues asserted in the Litigations;
b. assist and advise the Debtor and Debtor's bankruptcy
counsel, in connection with settling and/or adjudicating
the claims raised in the Litigations;
c. appear before this Court and any other Federal or State or
Administrative Court, as the Debtor deems necessary and/or
appropriate; and
d. perform all other necessary legal services requested or
required by the Debtor in this case as it relates to the
Litigations and any related claims.
Zarin & Steinmetz will be paid based upon its normal and usual
hourly billing rates.
Zarin & Steinmetz will be paid a retainer in the amount of
$15,000.
Zarin & Steinmetz will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Michael Zarin, Esq., partner of Zarin & Steinmetz, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Zarin & Steinmetz can be reached at:
Michael Zarin, Esq.
ZARIN & STEINMETZ
81 Main St. Suite 415
White Plains, NY 10601
Tel: (914) 682-7800
About Marianina Oil Corp.
Marianina Oil Corp. is engaged in activities related to real
estate. The company is the owner of fee simple title to a property
located at 34 East Post Road, White Plains, NY 10601, valued at
$1.6 million.
Marianina Oil Corp. filed a Chapter 11 petition (Bankr. S.D.N.Y.
Case No. 20-23070) on Sept. 23, 2020. In the petition signed by
Frank Codella, president, the Debtor disclosed total assets of
$1,600,000 and total liabilities of $14,215,000 as of the filing.
The Hon. Robert D. Drain is the case judge. Davidoff Hutcher &
Citron LLP, led by Robert L. Rattet, Esq., is the Debtor's legal
counsel.
MEADE INSTRUMENTS: Seeks to Hire Co-Special Litigation Counsel
--------------------------------------------------------------
Meade Instruments Corp., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Central District of
California to employ Sall Spencer Callas & Krueger, a Law
Corporation, and Parker Mills LLP, as co-special litigation
counsels to the Debtors.
Meade Instruments requires the Firms to provide legal services in
connection with the investigation, negotiation and litigation (or
arbitration) of potential claims against the Shepard Mullin Richter
& Hampton LLP law firm, and certain of its attorneys, arising out
of the Mullin' representation of the Debtor in connection with
transactional matters and the joint defense of the Debtor, Sunny
Optics, Inc. and Ningbo Sunny Electronic Co., Ltd. in the
litigation matter entitled Optronic Technologies, Inc. d/b/a Orion
Telescopes & Binoculars v. Ningbo Sunny Electronic Co., Ltd., et
al., United States District Court, Northern District of California,
Case No. 5:16-cv-06370-EJD (the "Shepard Mullin Matter").
Meade Instruments will be paid a Contingency Fee of 25% if the
Shepard Mullin Matter is settled pre-litigation or up to 42.5% of
the gross recovery if the Shepard Mullin Matter continues to trial.
In addition, contingent fees percentages will be reduced by 2.5% if
the Debtor timely advances and pays all costs and costs retainers.
In the event the Shepard Mullin Matter appeal any judgment, the Law
Firms shall defend such appeal on behalf of the Debtors and receive
additional compensation of 5% percent of the gross recovery.
To the best of the Debtors' knowledge the firms are a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtors and their estates.
The Firms can be reached at:
SALL SPENCER CALLAS & KRUEGER
A Law Corporation
32351 Coast Highway
Laguna Beach, CA 92651
Tel: (949) 499-2942
- and -
PARKER MILLS LLP
800 West Sixth Street, Suite 500
Los Angeles, CA 90017
Tel: (213) 622-4441
About Meade Instruments Corp.
Meade Instruments Corp. designs and manufactures optical products,
including telescopes, cameras, binoculars, and sports optics
products.
Meade Instruments Corp. filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
19-14714) on Dec. 4, 2019. In the petition signed by Victor
Aniceto, president, the Debtor was estimated to have $10 million to
$50 million in both assets and liabilities. Marc C. Forsythe, Esq.,
at Goe Forsythe & Hodges LLP is the Debtor's legal counsel. Sall
Spencer Callas & Krueger, a Law Corporation, and Parker Mills LLP,
as co-special litigation counsels.
MGM GROWTH: S&P Rates New $500MM Senior Unsecured Notes 'BB-'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '3'
recovery rating to Las Vegas-based casino resort owner MGM Growth
Properties Operating Partnership L.P.'s (a subsidiary of MGM Growth
Properties LLC [MGP]) proposed $500 million senior unsecured notes
due 2029 and placed the issue-level rating on CreditWatch with
negative implications. MGP Finance Co-Issuer Inc. is the co-issuer
of the notes. The '3' recovery rating indicates S&P's expectation
for meaningful recovery (50%-70%; rounded estimate: 65%) in the
event of a payment default.
S&P said, "We expect the company to use the proceeds from the
proposed notes for general corporate purposes, which may include
redeeming up to $700 million of the operating partnership (OP)
units held by MGP's majority owner, MGM Resorts International. MGM
Resorts has until Feb. 14, 2022, to exercise its redemption
rights."
"The CreditWatch listing on MGP and its majority owner MGM Resorts
reflects the significant stress on MGM Resorts' revenue and cash
flow across its portfolio this year and our expectation that it may
experience a slower recovery than other gaming operators. This is
because of its concentration in Las Vegas (where it derives about
half of its property-level EBITDAR), which is a market that is
heavily reliant on air travel as well as conventions and group
meetings—categories that we believe will be slow to return and
may experience more permanent disruption. Therefore, we believe it
is increasingly likely that MGM Resorts will be unable to improve
its consolidated leverage below 5.5x in 2021, which is our
downgrade threshold at the current 'BB-' rating. We could lower our
ratings on MGM Resorts, and potentially MGP, if it fails to meet
this threshold."
The development of a medical solution to the coronavirus, including
the recent announcements by Pfizer and Moderna that their
experimental vaccines have been 90% or more effective in preventing
COVID-19, would likely further improve visitation to Las Vegas.
Specifically, this could occur if a successful vaccine is approved
and widely disseminated in 2021.
S&P said, "The Pfizer and Moderna announcements are broadly in line
with our assumption that a medical solution will emerge and be
distributed by mid-2021, which could bode well for the pace of the
company's recovery in the second half of 2021. Although we will
consider whether MGM Resorts' liquidity and business strengths
warrant extending our outlook horizon to 2022 for the company to
restore credit measures, especially if a vaccine or effective
treatment becomes widely available around mid-2021, we believe MGM
Resorts will likely be challenged to achieve sufficient run-rate
EBITDA toward the end of 2021 such that it would be on-pace to
reduce its S&P-adjusted net debt to EBITDA below 5.5x, increasing
downside rating risk. We plan to resolve the CreditWatch listing by
the end of the year."
"Although MGM Resorts' ownership stake in MGP has fallen to 57%,
and could decline further if MGM Resorts elects to redeem the
additional $700 million of OP units, we expect to continue
consolidating MGP (and its new joint venture) in our rating
analysis of MGM Resorts given its majority ownership, board seats,
and influence over MGP. Despite the reduction in its ownership, MGM
Resorts retains voting control through its ownership of MGP's
single class B share. This share provides the company with a
majority of the voting power as long as it retains economic
ownership of at least 30%. MGM also consolidates MGP into its
financial statements and we expect it will continue to do so.
Therefore, it is unlikely that we will deconsolidate MGP until MGM
Resorts materially reduces its influence over MGP, including its
voting control, economic ownership, and governance."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's '1' recovery rating on MGP's senior secured debt and its
'3' recovery rating on its senior unsecured debt remain unchanged.
-- While S&P's estimated recovery for MGP's unsecured debt would
indicate a recovery rating of '2' (70%-90%), the rating agency has
capped the recovery rating at '3' (50%-70%) because it caps its
recovery ratings on the unsecured debt of issuers it rates in the
'BB' category at '3'." This cap addresses that these creditors'
recovery prospects are at greater risk of being impaired by the
issuance of additional priority or pari passu debt prior to
default.
Simulated default assumptions
-- S&P's simulated default scenario contemplates a payment default
occurring in 2024 (in line with the rating agency's assumed default
year for MGP's sole tenant) due to a significant deterioration in
tenant MGM Resorts' operating results coupled with a major
disruption in the debt and equity markets. S&P assumes that MGM
Resorts' cash flows will be reduced by prolonged economic weakness
and increased competitive pressures, particularly in Las Vegas. In
its simulated default scenario, S&P expects MGM Resorts to continue
to make its rent payments, reflecting the priority position of the
rent payments that MGP receives from MGM Resorts. However, because
of MGM Resorts' lower cash flow, S&P assumes that the company would
be able to renegotiate and reduce its rent payments to MGP.
-- S&P used an income capitalization approach in its recovery
analysis and assume that MGP is reorganized or sold as a going
concern. S&P uses a 12.5% distressed blended capitalization rate.
-- S&P assumes MGP's $1.35 billion revolving credit facility would
be 60% drawn at the time of default. The rating agency assumes that
MGP would be able to cover most of its debt service and other
capital requirements despite the lower rent payments by MGM
Resorts. Therefore, S&P assumes the company will use its revolving
facility to fund acquisitions and that the acquisitions generate a
return of 8% (similar to its previously completed acquisitions).
-- S&P values MGP based on net operating income (NOI) of about
$575 million at emergence. This reflects a 35% stress to S&P's
estimated pro forma 2020 NOI level of about $828 million as well as
expected incremental NOI from additional acquisitions.
-- S&P assumes any debt maturing between now and the year of
default is refinanced on similar terms and its maturity is extended
to at least the year of default.
-- S&P subtracts additional property costs of 5% of gross recovery
value to reflect the added costs that MGP may incur if MGM Resorts
defaults.
-- S&P assumes administrative claims total 5% of gross recovery
value after property costs.
Simplified waterfall
-- NOI at emergence: About $575 million
-- Blended capitalization rate: 12.5%
-- Gross recovery value: $4.6 billion
-- Net recovery value (after 5% additional property costs and 5%
administrative expenses): $4.1 billion
-- Estimated senior secured claims: $0.8 billion
-- Value available for senior secured claims: $4.1 billion
-- Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Estimated senior unsecured claims: $4.0 billion
-- Value available for senior unsecured claims: $3.3 billion
-- Recovery expectations: Capped at 50%-70% (rounded estimate:
65%)
Note: All debt amounts include six months of prepetition interest.
NINE ENERGY: S&P Upgrades ICR to 'CCC'; Outlook Negative
--------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
oil field services provider Nine Energy Service Inc. to 'CCC' from
'SD', reflecting its assessment of the company's credit risk
following debt repurchases.
S&P said, "The upgrade reflects our reassessment of Nine following
its recent below-par debt repurchases that we viewed as distressed.
Despite the debt and interest reductions, we believe the capital
structure remains unsustainable in the current oil field services
industry environment as constrained E&P spending continues to limit
OFS revenue and margins, especially for smaller service providers.
While we recognize Nine's adequate liquidity position, which
included $80 million of cash and almost $40 million of undrawn ABL
availability at the end of the third quarter, we expect negative to
flat EBITDA in the near-term will erode liquidity over the next 12
months unless industry conditions improve more rapidly than we
currently anticipate. Based on these factors, as well as the very
low trading levels on the company's debt and equity, we believe
there is a heightened probability of restructuring in the next 12
months."
However, the remaining $346 million of unsecured notes are not due
until November 2023, and could provide some runway toward a
recovery given Nine's low capital spending needs.
S&P said, "Although we expect industry conditions to improve from
2020 lows, the extent of growth in drilling and completion activity
levels is still uncertain, and we believe Nine's ability to expand
margins will depend on broader adoption of its newer completion
tools. Furthermore, we believe the company will continue to
opportunistically repurchase its unsecured notes in the open
market, and thus we don't expect to change the 'D' issue-level
rating on the notes until we believe they are no longer likely to
be repurchased or otherwise restructured in transactions we would
view as distressed."
"The negative outlook reflects our expectation that Nine will
continue to generate negative to flat EBITDA in the near term, with
liquidity eroding as a result. We believe the capital structure
remains unsustainable amid a weak oil field services industry
environment, with an elevated probability of restructuring in the
next 12 months."
"We could lower the ratings if liquidity deteriorates or we believe
there is an increased likelihood of conventional default in a
shorter time frame."
"We could consider an upgrade if we no longer view the company's
capital structure as unsustainable. This could occur if E&P
spending is stronger than we currently anticipate or if Nine's
margins exceed our expectations. Furthermore, an upgrade would be
conditional on minimal to no probability of conventional default or
distressed debt exchanges."
OASIS PETROLEUM: Emerges From Chapter 11 Bankruptcy
---------------------------------------------------
Oasis Petroleum Inc. on Nov. 19, 2020, announced that it has
successfully completed its financial restructuring and emerged from
Chapter 11. Oasis Petroleum has successfully restructured its
balance sheet and reduced its prepetition debt by $1.8 billion and
resolved the Mirada litigation, pursuant to its restructuring
support agreement and "pre-packaged" restructuring plan (the
"Plan") confirmed by the Bankruptcy Court on November 10, 2020.
Oasis Petroleum's new common stock is expected to commence trading
on NASDAQ under the ticker symbol OAS at market open on November
20, 2020.
Chairman of the Board, Douglas E. Brooks said, "On behalf of the
new board of directors, I would like to acknowledge our
appreciation to our employees for their diligent work during this
process. Oasis is now uniquely positioned with a best-in-class
balance sheet, a quality and sustainable long-lived asset base, and
a rigorous new capital discipline that should translate into
long-term value creation for our shareholders. This new direction
for Oasis will be executed within a strong ESG culture to provide
value for all stakeholders. The offices of the CEO and
Non-Executive Chairman have been separated to reflect the broader
strategic issues including, but not limited to, balancing cash
returns and growth initiatives while maintaining operational
excellence and sound environmental stewardship."
Restructuring Highlights
Oasis' new capital structure includes a new $575 million
reserve-based revolving credit facility ("New RBL Facility")
maturing in May 2024. Oasis' unsecured claims, including holders of
Oasis' senior unsecured notes, received their proportionate
distribution of 100% of Oasis' newly issued common stock (subject
to dilution).
New RBL Facility
* $575 million borrowing base
* $340 million drawn at emergence
* First borrowing base redetermination scheduled for April 1, 2021
* Matures May 2024
* LIBOR + 300-400 bps rate with 100 bps floor
New Common Equity and Warrants
* Equity allocated to unsecured note holders: Approximately 20
million shares of
common stock outstanding
* Shares authorized at emergence: 60 million shares
* Shares reserved for Long Term Incentive Plan, which constitutes
the Management
Incentive Plan: approximately 2.4 million shares
* Warrants to current Oasis Petroleum shareholders: Approximately
1.6 million
warrants exercisable for one share of common stock at an initial
exercise price of
$94.57, expiring on November 19, 2024.
New Board of Directors
Oasis Petroleum has appointed a new Board of Directors effective
today composed of experienced industry professionals with a clear
understanding of the expectations and objectives of shareholders.
Douglas E. Brooks has been named Chairman of the Board. The new
Board of Directors consists of seven members (six of whom are
independent) including: Douglas E. Brooks (Chairman), Thomas B.
Nusz (CEO), Samantha Holroyd, John Jacobi, N. John Lancaster, Jr.,
Robert McNally and Cynthia L. Walker. Biographies for the new
board members can be found on the Company's website
www.oasispetroleum.com.
Pro Forma Capital Structure Details
In accordance with the Plan, approximately $1.8 billion in
pre-petition senior unsecured notes have been equitized resulting
in $112.5 million in annual interest savings. Details of the
Company's pro forma capital structure and liquidity, excluding
Oasis Midstream Partners, are outlined below:
Pro Forma Capital Structure after Emergence ($ millions)
as of Pro
Forma as of
Debt at Principal Value Sep 30, 2020 Restructuring Nov
19, 2020
RBL Facility:
Old RBL Facility $361 ($361)
$0
New RBL Facility 340
340
----------------------------------------------------------------------
Sub-Total RBL Facility $361 ($21)
$340
Senior Unsecured Notes:
6.500% sr unsec notes due Nov 1, 2021 $44 ($44)
$0
6.875% sr unsec notes due Mar 15, 2022 834 (834)
0
6.875% sr unsec notes due Jan 15, 2023 308 (308)
0
6.250% sr unsec notes due May 1, 2026 395 (395)
0
2.625% sr unsec conv notes
due Sept 15, 2023 245 (245)
0
----------------------------------------------------------------------
Sub-Total Senior Unsecured Notes $1,826 ($1,826)
$0
Total Debt $2,187 ($1,847)
$340
Liquidity
Borrowing Base $ 438 $137
$575
(-) Borrowing under revolver 361 (21)
340
(-) Pro forma LCs 77 (36)
41
(+) Cash 50 (34)
16
----------------------------------------------------------------------
Total Liquidity $50 $160 $
210
Chief Executive Officer and Director, Thomas B. Nusz said, "Today
marks a new beginning for Oasis Petroleum. We are emerging from the
bankruptcy process as an even stronger company with an intense
focus on generating sustainable returns and positive free cash flow
coupled with a sharp goal of creating long term value for our
shareholders. These outcomes will be achieved by further cost
reductions, new efficiencies, and strategic repositioning to
reflect the current industry conditions.
I'd like to express our gratitude to our stakeholders including our
regulators, vendors, customers, royalty interest owners, working
interest owners and surface owners for their partnership throughout
this process. The support of our lenders and noteholders has also
been critical to the efficient completion of our financial
restructuring. Finally, I want to thank our employees for their
ongoing dedication to safety and execution. We look forward to
operating efficiently, safely and responsibly, for the benefit of
our stakeholders and communities, as we maximize our value for
shareholders."
Hedging
Oasis Petroleum currently has 29 mbopd swapped at $42.09 per barrel
in 2021, 19 mbopd swapped at $42.74 per barrel in 2022, and 14
mbopd swapped at $43.68 per barrel in 2023.
Listing on the NASDAQ
In connection with emergence from Chapter 11, all of the Company's
existing equity interests will be cancelled, effective before the
market opens on November 20, 2020. Shares of the Company's new
common stock will commence trading on the NASDAQ under the ticker
symbol "OAS" on November 20, 2020.
Details of the restructuring, the securities issued pursuant to the
Plan and the debt and other agreements entered into as part of the
Plan will be provided in a Form 8-K which can be viewed on the
Company's website or the Securities and Exchange Commission's
website at www.sec.gov.
Oasis posted Select Financial and Operational Detail on the
Company's website today at
http://oasispetroleum.investorroom.com/non-gaap.Oasis plans to
share updated information and will post an updated investor
presentation in the coming weeks on its website at
www.oasispetroleum.com.
As previously disclosed, Oasis Midstream Partners (NASDAQ: OMP), an
independent legal entity operated as a master limited partnership,
and all subsidiaries in which it owns an equity interest were not
included in Oasis Petroleum's Chapter 11 proceedings.
Advisors
Tudor, Pickering, Holt & Co. and Perella Weinberg Partners are
acting as financial advisors for the Company, Kirkland & Ellis LLP
is acting as legal advisor and AlixPartners, LLP is acting as
restructuring advisor.
Evercore is acting as financial advisor and Paul, Weiss, Rifkind,
Wharton & Garrison LLP and Porter Hedges LLP are acting as legal
advisors to the Ad Hoc Committee of Senior Noteholders.
About Oasis Petroleum
Headquartered in Houston, Texas, Oasis
--http://www.oasispetroleum.com/-- is an independent exploration
and production company focused on the acquisition and development
of onshore, unconventional crude oil and natural gas resources in
the United States. Its primary production and development
activities are located in the Williston Basin in North Dakota and
Montana, with additional oil and gas properties located in the
Delaware Basin in Texas.
Oasis reported a net loss attributable to the company of $128.24
million for the year ended Dec. 31, 2019, compared to a net loss
attributable to the company of $35.29 million for the year ended
Dec. 31, 2018.
For the six months ended June 30, 2020, the Company reported a net
loss attributable to the company of $4.40 billion on $554.15
million of total revenues compared to a net loss attributable to
the company of $72.12 million on $1.10 billion of total revenues
for the same period in 2019.
As of June 30, 2020, the Company had $2.62 billion in total assets,
$3.21 billion in total liabilities, and a total stockholders'
deficit of $589.91 million.
On Sept. 30, 2020, Oasis Petroleum Inc. and its affiliates sought
Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-34771).
The Hon. Marvin Isgur is the case judge.
The Debtors tapped KIRKLAND & ELLIS LLP as counsel; JACKSON WALKER
L.L.P. as co-bankruptcy counsel; TUDOR, PICKERING, HOLT & CO. and
PERELLA WEINBERG PARTNERS LP as investment banker; and ALIXPARTNERS
LLP as financial advisor. KURTZMAN CARSON CONSULTANTS LLC is the
claims agent. PRICEWATERHOUSECOOPERS is the external auditor and
DELOITTE TOUCHE TOHMATSU LIMITED is the tax advisor.
Evercore is acting as financial advisor and Paul, Weiss, Rikind,
Wharton & Garrison LLP and Porter Hedges LLP are acting as legal
advisors to the Ad Hoc Committee of Senior Noteholders.
PACKERS HOLDINGS: S&P Affirms 'B-' ICR on Debt Add-Ons, Dividend
----------------------------------------------------------------
S&P Global Ratings affirmed all of its ratings on Packers Holdings
LLC, including its 'B-' issuer credit rating and 'B-' issue-level
rating on the existing first-lien facility.
Packers intends to fund a $294 million shareholder distribution to
its sponsor owner using proceeds from a new $300 million term loan
due in 2024. In addition to the incremental term loan, the company
is also looking to raise its revolver limit $10 million and extend
the maturity of the first-lien facility to 2024.
Meanwhile, S&P assigned 'B—' issue-level ratings to the $300
million first lien term loan due 2024. The recovery rating is '3'.
The stable outlook reflects S&P's expectations that steady
operating performance, productivity efforts, and new business wins
will support deleveraging to the low- to mid-7x area over the next
12 months.
Despite a slight increase in leverage pro forma for the dividend,
solid earnings growth and good cash flow generation support
deleveraging.
S&P said, "Pro forma for the dividend recapitalization, we forecast
adjusted leverage will rise to the mid-7x area in 2020 and decline
up to 0.5x in 2021. Packers has fared well during the COVID-19
pandemic, with 9% revenue growth in 2020 through Sept. 30, 2020. A
heightened focus on sanitation services drove an increase in
frequency for cleaning services and demand for its chemicals
business (up 36% in the third quarter), which also benefited as
customers sought hand sanitizers and disinfectants. Despite
pandemic-driven plant closures across portion of its customer
network, stringent U.S. Department of Agriculture (USDA) and Food
and Drug Administration (FDA) regulations mandated an increased
service frequency to temporarily shuttered customers in order to
maintain ongoing food safety compliance and prevent delays in plant
reopenings. Through revenue growth and cost actions, the company
expanded adjusted margins to the mid-15% area during the pandemic.
However, we expect them to remain in the high-14% area over the
long term as Packers balances hiring and labor efficiencies with
strong demand. Finally, given our expectation moderate seasonal
working capital requirements and minimal capital expenditure
(capex) requirements, we expect annual free operating cash flow
(FOCF) to surpass $100 million in 2020 and 2021."
"The stable outlook reflects our expectations that steady operating
performance, productivity efforts, and new business wins will
support deleveraging to the low- to mid-7x area over the next 12
months."
While unlikely over the next 12 months, S&P could raise its ratings
on Packers if the company reduces adjusted leverage below the 7x
area on a sustained basis. This could occur if:
-- Packers generates better-than-expected operating results due to
expansion into higher-margin, FDA-regulated plants; or
-- It outperforms S&P's cost management expectations; and
-- The company's financial sponsor owners demonstrate a commitment
to maintaining moderate leverage metrics over a sustained period,
with limited risk for releveraging.
Although unlikely over the 12 months, S&P could lower its ratings
on Packers if operating performance and FOCF deteriorate, leading
to liquidity constraints or an unsustainable capital structure.
This could occur upon:
-- An increase in customer losses;
-- Reduced plant production days;
-- A drastic spike in input costs; or
-- If the financial sponsor pursues more aggressive financial
policy actions including a large debt-financed acquisition or
dividend recapitalization.
PRIMARIS HOLDINGS: Case Summary & 11 Unsecured Creditors
--------------------------------------------------------
Debtor: Primaris Holdings, Inc.
4215 Philips Farm Rd Ste 101a
Columbia, MO 65201-0055
Business Description: Primaris Holdings, Inc. --
https://primaris.org -- is a privately held
company in the healthcare consulting
business. Primaris leads and supports
systems and clinicians in implementing
solutions that improve healthcare quality
and reduce costs.
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
Western District of Missouri
Case No.: 20-20773
Judge: Hon. Dennis R. Dow
Debtor's Counsel: Rachel Lynn Foley, Esq.
Jill Olsen, Esq.
FOLEY LAW
4016 S Lynn Ct Dr Ste B
Independence, MO 64055-3379
Tel: (816) 718-8305
Email: clients@kcbankruptcy.com
Total Assets: $3,170,289
Total Liabilities: $5,203,068
The petition was signed by Richard A. Royer, CEO.
A copy of the petition containing, among other items, a list of the
Debtor's 11 unsecured creditors is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QKRXIXY/Primaris_Holdings_Inc__mowbke-20-20773__0001.0.pdf?mcid=tGE4TAMA
PROFESSIONAL INVESTORS 23: Involuntary Chapter 11 Case Summary
--------------------------------------------------------------
Alleged Debtor: Professional Investors 23, LLC
350 Ignacio Blvd.
Suite 300
Novato, CA 94949
Type of Business: Professional Investors 23, LLC is a Single
Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Involuntary Chapter
11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Northern District of California
Judge: Hon. Hannah L. Blumenstiel
Name of Petitioner: Professional Financial Investors, Inc.
350 Ignacio Blvd., Suite 300
Novato, CA 94949
Nature of Claim &
Claim Amount: Intercompany Loan, $904,255
Petitioner's Counsel: Ori Katz, Esq.
Barret J. Marum, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
Four Embarcadero Center, 17th Floor
San Franciso, CA 94111
Tel: 415-434-9100
Email: okatz@sheppardmullin.com
bmarum@sheppardmullin.com
A copy of the Involuntary Petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KD7TLZA/Professional_Investors_23_LLC__canbke-20-30923__0001.0.pdf?mcid=tGE4TAMA
PROFESSIONAL INVESTORS 30: Involuntary Chapter 11 Case Summary
--------------------------------------------------------------
Alleged Debtor: Professional Investors 30, LLC
350 Ignacio Blvd.
Suite 300
Novato, CA 94949
Business Description: Professional Investors 30, LLC is a Single
Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Involuntary Chapter
11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Northern District of California
Case Number: 20-30930
Name of Petitioner: Professional Financial Investors, Inc.
350 Ignacio Blvd., Suite 300
Novato, CA 94949
Nature of Claim &
Claim Amount: Intercompany Loan, $294,000
Petitioner's Counsel: Ori Katz, Esq.
Barret J. Marum, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
Four Embarcadero Center, 17th Floor
San Franciso, CA 94111
Tel: 415-434-9100
Email: okatz@sheppardmullin.com/
bmarum@sheppardmullin.com
A full-text copy of the Involuntary Petition is available for free
at:
https://www.pacermonitor.com/view/VZW7ADI/Professional_Investors_20_LLC__canbke-20-30919__0001.0.pdf?mcid=tGE4TAMA
PROFESSIONAL INVESTORS 34: Involuntary Chapter 11 Case Summary
--------------------------------------------------------------
Alleged Debtor: Professional Investors 34, LLC
350 Ignacio Blvd.
Suite 300
Novato, CA 94949
Type of Business: Professional Investors 34, LLC is a Single
Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Involuntary Chapter
11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Northern District of California
Case Number: 20-30936
Judge: Hon. Hannah L. Blumenstiel
Name of Petitioner: Professional Financial Investors, Inc.
350 Ignacio Blvd., Suite 300
Novato, CA 94949
Nature of Claim &
Claim Amount: Intercompany Loan, $491,809
Petitioner's Counsel: Ori Katz, Esq.
Barret J. Marum, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
Four Embarcadero Center, 17th Floor
San Franciso, CA 94111
Tel: 415-434-9100
Email: okatz@sheppardmullin.com
bmarum@sheppardmullin.com
A copy of the Involuntary Petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/WZGWBWQ/Professional_Investors_34_LLC__canbke-20-30936__0001.0.pdf?mcid=tGE4TAMA
PROFESSIONAL INVESTORS 35: Involuntary Chapter 11 Case Summary
--------------------------------------------------------------
Alleged Debtor: Professional Investors 35, LLC
350 Ignacio Blvd.
Suite 300
Novato, CA 94949
Type of Business: Professional Investors 35, LLC is a Single
Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Involuntary Chapter
11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Northern District of California
Case Number: 20-30937
Judge: Hon. Hannah L. Blumenstiel
Name of Petitioner: Professional Financial Investors, Inc.
350 Ignacio Blvd., Suite 300
Novato, CA 94949
Nature of Claim &
Claim Amount: Intercompany Loan, $42,220
Petitioner's Counsel: Ori Katz, Esq.
Barret J. Marum, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
Four Embarcadero Center, 17th Floor
San Franciso, CA 94111
Tel: 415-434-9100
Email: okatz@sheppardmullin.com
bmarum@sheppardmullin.com
A copy of the Involuntary Petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XC3RTKI/Professional_Investors_35_LLC__canbke-20-30937__0001.0.pdf?mcid=tGE4TAMA
PROFESSIONAL INVESTORS 46: Involuntary Chapter 11 Case Summary
--------------------------------------------------------------
Alleged Debtor: Professional Investors 46, LLC
350 Ignacio Blvd.
Suite 300
Novato, CA 94949
Type of Business: Professional Investors 46, LLC is a Single
Asset Real Estate debtor (as defined in 11
U.S.C. Section 101(51B)).
Involuntary Chapter
11 Petition Date: November 20, 2020
Court: United States Bankruptcy Court
Northern District of California
Case Number: 20-30942
Name of Petitioner: Professional Financial Investors, Inc.
350 Ignacio Blvd., Suite 300
Novato, CA 94949
Nature of Claim &
Claim Amount: Management Fees and Administrative
Costs, $20,053
Petitioner's Counsel: Ori Katz, Esq.
Barret J. Marum, Esq.
SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
Four Embarcadero Center, 17th Floor
San Franciso, CA 94111
Tel: 415-434-9100
Email: okatz@sheppardmullin.com
bmarum@sheppardmullin.com
A copy of the Involuntary Petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/IIQGVEQ/Professional_Investors_46_LLC__canbke-20-30942__0001.0.pdf?mcid=tGE4TAMA
PROPULSION ACQUISITION: S&P Affirms 'CCC+' ICR; Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC+' rating on Propulsion
Acquisition LLC (Belcan), which recently completed an amendment of
its first-lien term loan, extending its maturity to 2024 and
loosening its covenant. The rating agency still expects credit
metrics to remain weak for 2020 and into 2021.
At the same time, S&P assigned its 'CCC+' issue-level rating to the
company's amended and restated $430.8 million first-lien term loan
due 2024. The recovery rating is '3', indicating its expectation
for meaningful (50%-70%; rounded estimate: 60%) in a default
scenario.
Belcan's recent transaction improves liquidity. As part of the
company's acquisition of Telesis, the company amended its
first-lien term loan. The amendment extends the maturity to July
2024 from July 2021. The amendment also addressed the company's
first-lien net leverage covenant that it was at risk of violating
due to the impact of the coronavirus pandemic on earnings. S&P
previously expected that the company could have difficulty
refinancing, extending the maturity, or loosening covenants due to
weak end markets and unpredictability in the credit markets. As
part of the transaction, Belcan raised $95 million of second-lien
notes due 2025, used $24 million of cash on hand, received $15
million of sponsor equity, and drew about $22 million on the
asset-based lending (ABL) revolver. The company used this to repay
about $73 million on the term loan (including accrued interest),
acquiring Telesis for $68 million and paying $15 million of
transaction fees. Belcan also has the option to issue $40 million
of additional second-lien notes and use the proceeds to repay $30
million of the first-lien term loan, which S&P expects the company
to exercise.
S&P said, "The stable outlook on Belcan reflects that while credit
metrics have weakened, we expect some improvement in 2021. It also
reflects the company's successful amendment of its first-lien
credit facility, which extended its maturity from July 2021 to July
2024 and loosened covenant requirements. We expect debt to EBITDA
to weaken to above 10x in 2020, but to recover in 2021 to the
low-8x area."
S&P could lower its rating if it believes the company will likely
default within 12 months if:
-- A near-term liquidity crisis occurs, likely driven by a greater
impact on earnings and free cash flow from the coronavirus pandemic
than it expects;
-- S&P believes it is considering a distressed exchange offer or
redemption; or
-- S&P believes the company is at risk of violating its covenant.
S&P could raise its rating on Belcan if it expects debt to EBITDA
to improve to around 8x and to remain there. This would likely be
driven by:
-- Commercial aerospace, auto, and industrial demand starting to
recover from the pandemic impact;
-- Belcan's cost reductions being successful;
-- Defense work remaining steady; and
-- Debt-financed acquisitions not exceeding S&P's expectations.
RE/MAX LLC: S&P Alters Outlook to Stable, Affirms 'BB' ICR
----------------------------------------------------------
S&P Global Ratings revised its outlook on Denver-based residential
real estate and mortgage franchisor RE/MAX LLC to stable from
negative and affirmed its 'BB' issuer credit rating.
The stable outlook reflects S&P's belief that supportive U.S.
residential real estate market fundamentals and RE/MAX's ability to
sustain a stable agent count will support its adjusted debt to
EBITDA remaining below 3x.
Despite the broader economic impact from the pandemic, the U.S.
real estate market rebounded strongly in the second half of 2020 as
low-rate financing and strong consumer demand drove home sales
volumes and prices up. Following a sharp drop in home sales in
April and May, a substantial rebound in demand precipitated by
historic low mortgage rates and demand for spacious suburban homes,
has buoyed RE/MAX's operating performance. Home price appreciation,
elevated home sales transactions, RE/MAX's ability to stabilize and
grow its agent count, and continued traction in scaling the Motto
Mortgage business and other acquired capabilities are positive
revenue tailwinds heading into 2021. S&P expects revenue (excluding
Marketing Funds) to grow in the mid-to-high single digit percent
area in 2021, following around a 5% decline for full-year 2020.
Although leading economic indicators are positive, S&P expects the
demand boom will moderate somewhat in 2021. S&P remains cautious
around the slowing pace of job gains and high unemployment rates
which raise longer-term concerns around home affordability given
rising median home prices and low inventory.
S&P said, "We expect RE/MAX's adjusted leverage to be 2x-3x over
the next 12 months, with solid free cash flow. In addition to a
supportive housing market environment, RE/MAX's recurring fee
revenue base is reliant on its ability to attract and retain its
agent base. The company reported monthly U.S. and Canadian agent
gains from midyear through October (as well as mid-teens percent
growth in its international agent count). Given high agent
competition, the sustainability in recent agent growth is difficult
to predict. However, we note the company's continued focus on
technology initiatives (such as CRM and lead generation platform
booj) and acquired data and digital capabilities (the recent
acquisitions of Gadberry Group and wemlo this year) demonstrate its
commitment to investing in the productivity and long-term growth of
its two brands and their franchisees."
"As such, we expect the company will continue its pace of business
and technology investments, including expanding acquired loan
processing platform wemlo and location intelligence provider
Gadberry capabilities into existing franchises, and to position
both products for profitable growth in the future. We continue to
expect shareholder returns and acquisitions to also remain a
priority over the near-term. Altogether, we expect the company to
operate within the 2x-3x adjusted debt to EBITDA range."
"RE/MAX's pursuit of independent regional franchisers and stated
financial policy permitting gross leverage up to 4x could result in
elevated credit metrics. Although the timing of such transactions
is unpredictable and driven by the life events of franchise owners
(and thus not included in our base case forecast), we expect RE/MAX
to remain opportunistic in acquiring remaining independent master
franchiser rights. Although we believe the company may use cash
flow, existing cash balances (which we net against debt in our
adjusted leverage calculation), or debt capacity to finance
acquisition and investment spending, or to return capital to
shareholders, the rating reflects our belief that it is unlikely
that RE/MAX would engage in further leveraging transactions that
would increase and sustain adjusted debt/EBITDA above 3.5x, the
threshold at which we would lower our 'BB' issuer credit rating.
RE/MAX's financial policy is to allow gross leverage up to 4x,
including investment and acquisition spending and shareholder
returns; however, the company historically has maintained
significant cash balances, causing net leverage to be well within
our downgrade threshold. We expect the company to continue to
maintain strong liquidity in the form of cash balances, revolver
availability, and free cash flow generation to support spending and
for RE/MAX to make financial policy choices that enables it to
maintain adjusted net leverage below 3.5x."
"Our stable outlook reflects our belief that continued demand for
existing residential home sales and RE/MAX's ability to sustain a
stable agent count will support its adjusted debt to EBITDA
remaining below 3x."
S&P could lower its ratings on RE/MAX if it believes the company
will sustain adjusted leverage sustained over 3.5x or free
operating cash flow (FOCF) to debt below 10%. The rating agency
believes this could occur if:
-- Business conditions deteriorate and agent attrition rates begin
to rise for multiple quarters;
-- The company takes on increased debt for acquisition spending,
shareholder distributions, or to finance the sale of co-founder
David Linigar's minority ownership stake.
Although unlikely given RE/MAX's financial policy, S&P could raise
its ratings if it believes that the company is willing to sustain
adjusted debt to EBITDA of below 2x over the economic cycle,
including consideration of potential acquisitions and shareholder
returns.
SERVICE PROPERTIES: S&P Rates Guaranteed Note Issuance 'BB'
-----------------------------------------------------------
S&P Global Ratings affirmed the 'BB-' issuer credit rating on
Service Properties Trust (SVC) and assigned its 'BB' issue-level
and '2' recovery rating to SVC's $450 million 5.5% unsecured senior
notes issuance, which has subsidiary guarantees. The '2' recovery
rating reflects substantial (70%-90%, rounded est. 85%) recovery
prospects in the event of a payment default.
S&P said, "The negative outlook reflects our view that SVC's
operating performance will likely remain weak over the next two to
three quarters, with improving performance expected following a
successful widespread distribution of a COVID-19 vaccine."
"We assigned a 'BB' issue-level rating and '2' recovery rating to
SVC's newly issued $450 million senior unsecured notes that have
subsidiary guarantees. These notes are pari passu with SVC's
existing $800 million senior unsecured notes with subsidiary
guarantees, but are structurally senior to its existing unsecured
notes that don't have guarantees as well as its unsecured credit
facility. Because of the structural subordination of the notes
without guarantees, we are revising our recovery rating to '3' from
'2' and lowering our issue-level rating to 'BB-' from 'BB' on those
notes."
"SVC amended its credit agreement governing its $1.0 billion
revolving credit facility and $400 million term loan on Nov. 6,
2020. In exchange for waiving all of its covenants through July 15,
2022 (when the facility matures), SVC pledged certain additional
equity interests of subsidiaries owning properties with an
undepreciated book value of $1.8 billion as of Sept. 30, 2020. SVC
repaid its term loan on Nov. 5, 2020, and we expect the company to
use proceeds from this bond issuance to redeem the remaining $50
million unsecured notes maturing in February of 2021 and to repay
borrowings under its revolving credit facility. Pro forma for these
expected repayments, SVC will have no significant near-term debt
maturities until its $500 million senior unsecured notes come due
in August 2022."
"We acknowledge the recent news related to two vaccines with high
efficacy rates is extremely encouraging, and could lead to a
significant resurgence in travel once the vaccines are widely
available. However, we expect near-term operating results to be
weaker than previously expected, due to the recently terminated
operating agreements with InterContinental Hotels Group PLC (IHG)
and Marriott International Inc. The aforementioned agreements will
transition to an operating agreement with Sonesta International
Hotels Corp., and hotels will be rebranded to Sonesta. However, the
Sonesta operating agreement does not have any minimum returns/rents
to buffer cash flows during challenging times, and we also note the
increased risk and reliance on Sonesta (IHG, Marriott, and Sonesta
comprised 55.7% of revenues as of Sept. 30). We will continue to
monitor economic trends and the company's operating performance,
along with the company's planned asset sales (which could provide
some relief to currently elevated leverage as well as reduce tenant
concentration). If weakness persists beyond our expectations, it
could place additional pressure on our current rating."
Environmental, Social, and Governance (ESG) credit factors for this
credit rating change:
-- Health and safety
S&P said, "The negative outlook reflects our view that SVC's
operating performance will likely remain weak over the next two to
three quarters, with improving performance following a successful
widespread distribution of a COVID-19 vaccine. We expect the
company to report significant revenue per available room (RevPAR)
declines in 2020 with a sharp recovery in late 2021 (albeit well
below 2019 levels) that lead to material near-term EBITDA
deterioration in its lodging segment. As such, we expect its S&P
Global Ratings-adjusted debt to EBITDA to increase above 14x by
year-end 2020 before improving to around 11x by year-end 2021."
"We could lower our ratings on SVC if its operating performance
deteriorates beyond our current expectations, which could result
from growing tenant risks or changes to its asset portfolio such
that it sustains adjusted debt to EBITDA above 11x beyond year-end
2021. This could also occur if we experience a more severe and
prolonged global recession, or if consumer behavior and travel
don't recover materially post-vaccine. This scenario would further
erode its operator coverage levels or lead to future lease
amendments or deferrals that reduce its rental revenue."
S&P could revise its outlook on SVC to stable if:
-- Its operating performance materially improves, likely due to a
turnaround in the global economy that leads to increased consumer
confidence and a more favorable lodging environment; and
-- SVC successfully executes its planned dispositions such that
its S&P Global Ratings-adjusted debt to EBITDA declines below the
9.5x area and it reinstates its dividend to near pre-pandemic
levels (as a percentage of adjusted funds from operations [AFFO]).
SHEA 92: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: Shea 92, LLC
1353 W Cindy Street
Chandler, AZ 85224
Business Description: Shea 92, LLC is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: November 19, 2020
Court: United States Bankruptcy Court
District of Arizona
Case No.: 20-12640
Debtor's Counsel: William R. Richardson, Esq.
RICHARDSON & RICHARDSON, PC
1745 S. Alma School Road
Suite 100
Mesa, AZ 85210-3010
Tel: 480-464-0600
Email: wrichlaw@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Divyesh N. Patel, managing member of
Sharda Advisors, LLC, managing member.
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/63PYVIY/Shea_92_LLC__azbke-20-12640__0001.0.pdf?mcid=tGE4TAMA
SOMERSET ACADEMY: S&P Affirms 'BB' Rating on Lease Revenue Bonds
----------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB' rating on the Nevada State Dept. of Business &
Industry's series 2015A, 2018A, and 2018B (taxable) charter school
lease revenue bonds, issued for Somerset Academy of Las Vegas
(Somerset).
"The positive outlook reflects our view of the school's improved
financial performance based on audited fiscal 2020 results, which
in our view could support a higher rating," said S&P Global Ratings
credit analyst Robert Tu.
S&P views Somerset's improvement in coverage, growth in liquidity,
and moderation of its debt burden positively. Nevertheless, S&P
understands the academy plans to purchase two of its leased
campuses, Skye Canyon and Aliante. While plans are still
preliminary, management has indicated the debt amount could total
$30 million for both campuses and the issuance would likely occur
sometime in 2021. This could lead to some moderation in financial
performance, although in S&P's view, Somerset has some debt
capacity at the current rating level. S&P expects to review the
transaction and any rating implications as further details are
available. Additionally, S&P continues to closely monitor the
academic performance at Somerset. As noted in S&P's article
published Feb. 5, 2020, on RatingsDirect, Somerset's authorizer
issued one notice of breach, and three notices of concern, related
to academic performance at various campuses of the charter network.
While S&P does not expect the authorizer to take action in the
current year due to state assessments being suspended for 2019-2020
in light of the COVID-19 pandemic, the rating agency continues to
monitor the school's academic performance in meeting its
authorizer's requirements as the school goes through the charter
renewal process in fiscal 2021. If the school is able to navigate
these two challenges successfully while maintaining current
financial performance metrics, S&P could raise the rating.
SOMERSET ACADEMY: S&P Affirms BB Rating on Education Revenue Bonds
------------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB' rating on Arizona Industrial Development
Authority's series 2019A and 2019B (taxable) education revenue
bonds, issued for Somerset Academy of Las Vegas--Lone Mountain
Campus, Nev.
"The positive outlook reflects our view of the school's improved
financial performance based on audited fiscal 2020 results, which
in our view could support a higher rating," said S&P Global Ratings
credit analyst Robert Tu.
S&P views Somerset's improvement in coverage, growth in liquidity,
and moderation of its debt burden positively. Nevertheless, S&P
understands the academy plans to purchase two of its leased
campuses, Skye Canyon and Aliante. While plans are still
preliminary, management has indicated the debt amount could total
$30 million for both campuses and the issuance would likely occur
sometime in 2021. This could lead to some moderation in financial
performance, although in S&P's view, Somerset has some debt
capacity at the current rating level. S&P expects to review the
transaction and any rating implications as further details are
available. Additionally, S&P continues to closely monitor the
academic performance at Somerset. As noted in S&P's article
published Feb. 5, 2020, on RatingsDirect, Somerset's authorizer
issued one notice of breach, and three notices of concern, related
to academic performance at various campuses of the charter network.
While S&P does not expect the authorizer to take action in the
current year due to state assessments being suspended for 2019-2020
in light of the COVID-19 pandemic, the rating agency continues to
monitor the school's academic performance in meeting its
authorizer's requirements as the school goes through the charter
renewal process in fiscal 2021. If the school is able to navigate
these two challenges successfully while maintaining current
financial performance metrics, S&P could raise the rating.
SUNOPTA INC: S&P Upgrades ICR to 'B-' on Improving Cost Structure
-----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Mississauga,
Ont.- and Minneapolis-based food and beverage manufacturer SunOpta
Inc. to 'B-' from 'CCC+'.
S&P also raised its issue-level rating on the company's senior
secured second-lien notes to 'CCC+' from 'CCC'. The '5' recovery
rating on the notes is unchanged pending details on the amount of
the debt repayment following the GI sale.
The stable outlook reflects the company's improved profitability,
driven by higher volumes in core plant-based products, higher
capacity utilization, and effective cost management. The outlook
also incorporates S&P's view that SunOpta will maintain an S&P
Global Ratings' adjusted debt-to-EBITDA ratio in the low-to-mid 6x
area over the next 12 months and generate modest positive free cash
flow, reflecting improved EBITDA and lower interest expense because
of debt repayment.
S&P said, "We forecast SunOpta's operating performance to remain
robust in fiscal 2021. The upgrade reflects our expectation that
Sunopta's year-to-date performance is sustainable, leading to
ongoing EBITDA growth and margin expansion. Factors include a
favorable view of SunOpta's execution on the company's ongoing
improvement initiatives across business divisions, particularly
growth in SunOpta's plant-based foods and beverages segment. The
company's operating performance is benefiting from growing demand
for SunOpta's plant-based aseptic beverages made from oats, almond,
and soy. Furthermore, the company has taken initiatives to
stabilize its frozen fruit segment, which was severely pressured in
2019. These initiatives include, but are not limited to, expanding
supplier relationships, successfully selling prior-year inventory,
passing cost increases on to customers, and materially reducing
direct labor costs. These factors positively contributed to the
segment's revenues and EBITDA in the current year, with company's
total revenues for the 12 months ended Sept. 26, 2020, growing 3.5%
while EBITDA almost tripled compared with the same period last year
leading to a 500-basis-point year-over-year improvement of S&P
Global Ratings' adjusted EBITDA margins. As a result, SunOpta
generated healthy free operating cash flow that was used to repay
about US$50 million of revolver borrowings during the year.
Therefore, a combination of EBITDA improvement and debt reduction
led to substantial improvement in credit measures such that debt to
EBITDA on an S&P Global Ratings' adjusted basis for the last 12
months (LTM) to Sept. 26, 2020, improved to 6x from about 18x a
year ago."
"We expect this momentum to continue through fiscal 2021.
Specifically, we expect SunOpta to benefit from industry tailwinds
as consumer preferences shift toward non-dairy beverage categories
and the company benefits from food-at home consumption through the
pandemic. Therefore, we now forecast SunOpta's organic revenues to
increase in the low-to-mid single-digit percentage area as the
company steadily expands its plant-based beverage capacity and
distribution. Due to a combination of higher revenues, better plant
capacity utilization, and meaningful cost control (particularly in
the frozen fruit operations), we expect SunOpta to sustain EBITDA
margins on in the 7.5%-8.0% area (on an S&P Global Ratings'
adjusted basis) through year-end 2020 and 2021, which is a
significant improvement from 4.5% in 2019."
"The stable outlook reflects the company's improved profitability,
spurred by the higher volumes in core plant-based products, better
capacity utilization, and effective cost management. It also
incorporates our view that SunOpta will maintain a debt-to-EBITDA
ratio in the low-to-mid 6x area on an S&P Global Ratings' adjusted
basis and generate modest positive free cash flow reflecting
improved EBITDA and lower interest expense as a result of debt
repayment."
"We could lower the ratings on SunOpta over the next 12 months if
the company's operating performance weakened such that adjusted
debt to EBITDA approached 8x. Even though we expect the company
could have break-even free operating cash flow as it continues its
investments, negative free cash flow due to operating
underperformance could also pressure the ratings. In this
situation, we forecast SunOpta would be unable to cover its
mandatory fixed charges of interest and capital expenditure (capex)
with internally generated cash flow, potentially weakening
prospects for a successful refinancing of its second-lien debt."
"We could raise the rating if we view an improvement in SunOpta's
business risk profile as exhibited by the company's continued
success in executing on its expansion plans and steadily increasing
its revenues and EBITDA. Alternatively, we could raise the ratings
if we believe the company can sustain its adjusted debt-to-EBITDA
ratio below 5x while achieving positive free cash flow operation
with sufficient liquidity."
VICTORIA TOWERS: Hires Rosen & Kantrow as Attorney
--------------------------------------------------
Victoria Towers Development, Corp., seeks authority from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Rosen & Kantrow, PLLC, as attorney to the Debtor.
Victoria Towers requires Rosen & Kantrow to assist and provide
legal services to the Debtor in the Chapter 11 Bankruptcy
Proceedings.
Rosen & Kantrow will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Fred S. Kantrow, partner of Rosen & Kantrow, PLLC, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.
Rosen & Kantrow can be reached at:
Fred S. Kantrow, Esq.
ROSEN & KANTROW, PLLC
38 New Street
Huntington, NY 11743
Tel: (631) 423 8527
E-mail: Fkantrow@rkdlawfirm.com
About Victoria Towers Development
Victoria Towers Development Corp. is the owner of fee simple title
to 29 residential condo units located at 133-38 Sanford Avenue,
Flushing NY having an appraised value of $33.37 million.
Victoria Towers Development Corp., based in Flushing, NY, filed a
Chapter 11 petition (Bankr. E.D.N.Y. Case No. 20-73303) on Oct. 30,
2020. In its petition, the Debtor disclosed $33,370,000 in assets
and $39,217,115 in liabilities. The petition was signed by Myint
J. Kyaw, president.
The Hon. Robert E. Grossman presides over the case. ROSEN &
KANTROW, PLLC, serves as bankruptcy counsel to the Debtor.
WC 4811 SOUTH: Hires Columbia Consulting as Financial Advisor
-------------------------------------------------------------
WC 4811 South Congress LLC seeks authority from the U.S. Bankruptcy
Court for the Western District of Texas to employ Columbia
Consulting Group, PLLC, as financial advisor to the Debtor.
WC 4811 South requires Columbia Consulting to:
a. coordinate and negotiate with the Refinance Lenders,
Current Lenders, Creditors or counsel of Creditors for the
Debtor;
b. Chief Restructuring Officer services, as may be required,
that may include but are not limited to:
i. assist in the preparation of projections and assistance
in structuring a Plan of Reorganization;
ii. assist in the preparation of Schedules and MORs, if
necessary;
iii. provide Expert Testimony, if necessary; and
iv. provide other financial and accounting consulting
services, that may be required.
Columbia Consulting will be paid at these hourly rates:
Partners $250 to $300
Clerks $75 to $175
Columbia Consulting will be paid a retainer in the amount of
$10,000.
Columbia Consulting will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey A. Worley, partner of Columbia Consulting Group, PLLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and its estates.
Columbia Consulting can be reached at:
Jeffrey A. Worley
COLUMBIA CONSULTING GROUP, PLLC
101 Long Prairie Road, Suite 744 MB 17
Flower Mound, TX 75028
Tel: (972) 809-6393
About WC 4811 South Congress
Based in Austin, Texas, WC 4811 South Congress LLC is a single
asset real estate debtor (as defined in 11 U.S.C. Section
101(51B)).
WC 4811 South Congress sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-11105) on Oct. 6,
2020. The petition was signed by Natin Paul, president of managing
member. At the time of the filing, the Debtor had estimated assets
of between $10 million and $50 million and liabilities of between
$1 million and $10 million. Fishman Jackson Ronquillo PLLC is the
Debtor's legal counsel.
WC 8120 RESEARCH: Hires Columbia Consulting as Financial Advisor
----------------------------------------------------------------
WC 8120 Research LP, seeks authority from the U.S. Bankruptcy Court
for the Western District of Texas to employ Columbia Consulting
Group, PLLC, as financial advisor to the Debtor.
WC 8120 Research requires Columbia Consulting to:
a. coordinate and negotiate with the Refinance Lenders,
Current Lenders, Creditors or counsel of Creditors for the
Debtor;
b. Chief Restructuring Officer services, as may be required,
that may include but are not limited to:
i. assist in the preparation of projections and assistance
in structuring a Plan of Reorganization;
ii. assist in the preparation of Schedules and MORs, if
necessary;
iii. provide Expert Testimony, if necessary; and
iv. provide other financial and accounting consulting
services, that may be required.
Columbia Consulting will be paid at these hourly rates:
Partners $250 to $300
Clerks $75 to $175
Columbia Consulting will be paid a retainer in the amount of
$10,000.
Columbia Consulting will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey A. Worley, partner of Columbia Consulting Group, PLLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and its estates.
Columbia Consulting can be reached at:
Jeffrey A. Worley
COLUMBIA CONSULTING GROUP, PLLC
101 Long Prairie Road, Suite 744 MB 17
Flower Mound, TX 75028
Tel: (972) 809-6393
About WC 8120 Research LP
WC 8120 Research LP is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)) based in Austin, Texas.
WC 8120 Research sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-11106) on Oct. 6,
2020. The petition was signed by Natin Paul, manager of general
partner. At the time of the filing, the Debtor had estimated
assets of between $10 million and $50 million and liabilities of
between $1 million and $10 million. Fishman Jackson Ronquillo PLLC
is the Debtor's legal counsel.
WC SOUTH CONGRESS: Hires Columbia Consulting as Financial Advisor
-----------------------------------------------------------------
WC South Congress Square LLC seeks authority from the U.S.
Bankruptcy Court for the Western District of Texas to employ
Columbia Consulting Group, PLLC, as financial advisor to the
Debtor.
WC South Congress requires Columbia Consulting to:
a. coordinate and negotiate with the Refinance Lenders,
Current Lenders, Creditors or counsel of Creditors for the
Debtor;
b. Chief Restructuring Officer services, as may be required,
that may include but are not limited to:
i. assist in the preparation of projections and assistance
in structuring a Plan of Reorganization;
ii. assist in the preparation of Schedules and MORs, if
necessary;
iii. provide Expert Testimony, if necessary; and
iv. provide other financial and accounting consulting
services, that may be required.
Columbia Consulting will be paid at these hourly rates:
Partners $250 to $300
Clerks $75 to $175
Columbia Consulting will be paid a retainer in the amount of
$10,000.
Columbia Consulting will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey A. Worley, partner of Columbia Consulting Group, PLLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and its estates.
Columbia Consulting can be reached at:
Jeffrey A. Worley
COLUMBIA CONSULTING GROUP, PLLC
101 Long Prairie Road, Suite 744 MB 17
Flower Mound, TX 75028
Tel: (972) 809-6393
About WC South Congress Square
Based in Austin, Texas, WC South Congress Square LLC is primarily
engaged in renting and leasing real estate properties.
WC South Congress Square sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-11107) on Oct. 6,
2020. The petition was signed by Natin Paul, manager of general
partner.
At the time of the filing, the Debtor had estimated assets of
between $50 million and $100 million and liabilities of between $10
million and $50 million.
Fishman Jackson Ronquillo PLLC is the Debtor's legal counsel.
WC TEAKWOOD: Hires Columbia Consulting as Financial Advisor
-----------------------------------------------------------
WC Teakwood Plaza LLC, seeks authority from the U.S. Bankruptcy
Court for the Western District of Texas to employ Columbia
Consulting Group, PLLC, as financial advisor to the Debtor.
WC Teakwood requires Columbia Consulting to:
a. coordinate and negotiate with the Refinance Lenders,
Current Lenders, Creditors or counsel of Creditors for the
Debtor;
b. Chief Restructuring Officer services, as may be required,
that may include but are not limited to:
i. assist in the preparation of projections and assistance
in structuring a Plan of Reorganization;
ii. assist in the preparation of Schedules and MORs, if
necessary;
iii. provide Expert Testimony, if necessary; and
iv. provide other financial and accounting consulting
services, that may be required.
Columbia Consulting will be paid at these hourly rates:
Partners $250 to $300
Clerks $75 to $175
Columbia Consulting will be paid a retainer in the amount of
$10,000.
Columbia Consulting will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Jeffrey A. Worley, a partner of Columbia Consulting Group, PLLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and its estates.
Columbia Consulting can be reached at:
Jeffrey A. Worley
COLUMBIA CONSULTING GROUP, PLLC
101 Long Prairie Road, Suite 744 MB 17
Flower Mound, TX 75028
Tel: (972) 809-6393
About WC Teakwood Plaza
Based in Austin, Texas, WC Teakwood Plaza LLC is primarily engaged
in renting and leasing real estate properties.
WC Teakwood Plaza sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-11104) on Oct. 6,
2020. The petition was signed by Natin Paul, president of managing
member. At the time of the filing, the Debtor had estimated assets
of between $10 million and $50 million and liabilities of between
$1 million and $10 million. Fishman Jackson Ronquillo PLLC is the
Debtor's legal counsel.
WESTERN URANIUM: CFO Gets $150K Annual Salary Under New Contract
----------------------------------------------------------------
Western Uranium & Vanadium Corp. entered into a new employment
agreement with its Chief Financial Officer, Robert Klein. The
Agreement is effective as of Oct. 1, 2020 and has an initial term
that ends on Sept. 30, 2021. The Agreement will automatically
renew for successive annual terms unless either party provides a
90-day advance written notice of their intention not to renew. The
Agreement provides for a base salary of $150,000 per year, the
amount of which is subject to review at least annually on or about
December 15th of each year during the term of the Agreement. Under
the Agreement, Mr. Klein will be eligible to receive a bonus after
the end of each calendar year or such earlier date as the Board of
Directors may determine, in an amount to be determined and approved
by the Board. A bonus will also be considered upon the closing of
a strategic transaction by the Company. The Agreement provides
that Mr. Klein will continue to be eligible to participate
generally in any employee benefit plan of the Company or its
affiliates and to receive annual stock option grants under the
Company's incentive stock option plan in amounts to be determined
and approved by the Board. The Agreement also provides Mr. Klein
with certain rights of indemnification and advancement of expenses
in his capacity as an officer or employee of the Company and for
having served any other entity as an officer, director or employee
at the Company's request.
About Western Uranium
Western Uranium & Vanadium Corp. is a Colorado based uranium and
vanadium conventional mining company focused on low cost near-term
production of uranium and vanadium in the western United States,
and development and application of kinetic separation.
Western Uranium reported a net loss of $2.11 million for the year
ended Dec. 31, 2019, compared to a net loss of $2.04 million for
the year ended Dec. 31, 2018. As of Sept. 30, 2020, the Company
had $23.15 million in total assets, $4.15 million in total
liabilities, and $19 million in total stockholders' equity.
MNP LLP, in Mississauga, Ontario, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated April
14, 2020, citing that the Company has incurred continuing losses
and negative cash flows from operations and is dependent upon
future sources of equity or debt financing in order to fund its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
WILSON'S TRUCKING: Gets Court Approval to Hire Special Counsel
--------------------------------------------------------------
Wilson's Trucking, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Missouri to hire Sherry DeJanes,
Esq., an attorney practicing in Kansas City, Mo., as special
counsel.
Wilson's Trucking selected the attorney since she has the expertise
and ability to represent the company in corporate matters,
investigating and making the appropriate demand (if insurance
coverage is available) to protect and defend the company against
the claim of Jack Anderson.
Ms. DeJanes will be paid at the rate of $300 per hour.
Ms. DeJanes disclosed in court filings that she neither holds nor
represents any interest adverse to the Debtor with respect to the
matters on which she is to be employed.
The attorney holds office at:
Sherry D. DeJanes, Esq.
406 W 39th Ter
Kansas City, MO 64111
Phone: (816) 753-5922
About Wilson's Trucking, LLC
Wilson's Trucking, LLC filed its petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. W.D. Mo. Case No. 20-41805) on
Oct. 16, 2020, listing under $1 million in both assets and
liabilities. Judge Cynthia A. Norton oversees the case. Erlene W.
Krigel, Esq., at Krigel & Krigel, PC serves as the Debtor's legal
counsel.
[^] BOND PRICING: For the Week from November 16 to 20, 2020
-----------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
AMC Entertainment Holdings AMC 5.750 14.039 6/15/2025
AMC Entertainment Holdings AMC 6.125 13.676 5/15/2027
AMC Entertainment Holdings AMC 5.875 12.857 11/15/2026
American Energy- Permian
Basin LLC AMEPER 12.000 1.440 10/1/2024
American Energy- Permian
Basin LLC AMEPER 12.000 1.440 10/1/2024
American Energy- Permian
Basin LLC AMEPER 12.000 1.440 10/1/2024
BPZ Resources BPZR 6.500 3.017 3/1/2049
Basic Energy Services BASX 10.750 19.426 10/15/2023
Basic Energy Services BASX 10.750 21.500 10/15/2023
Bristow Group Inc/old BRS 6.250 6.250 10/15/2022
Bristow Group Inc/old BRS 4.500 6.250 6/1/2023
Buffalo Thunder
Development Authority BUFLO 11.000 50.125 12/9/2022
CBL & Associates LP CBL 5.250 39.199 12/1/2023
CEC Entertainment CEC 8.000 5.000 2/15/2022
Calfrac Holdings LP CFWCN 8.500 8.942 6/15/2026
Callon Petroleum Co CPE 6.250 41.602 4/15/2023
Callon Petroleum Co CPE 8.250 31.828 7/15/2025
Chesapeake Energy Corp CHK 11.500 15.500 1/1/2025
Chesapeake Energy Corp CHK 5.500 6.250 9/15/2026
Chesapeake Energy Corp CHK 5.750 5.500 3/15/2023
Chesapeake Energy Corp CHK 11.500 14.280 1/1/2025
Chesapeake Energy Corp CHK 6.625 4.875 8/15/2020
Chesapeake Energy Corp CHK 8.000 6.000 6/15/2027
Chesapeake Energy Corp CHK 4.875 5.360 4/15/2022
Chesapeake Energy Corp CHK 6.875 5.033 11/15/2020
Chesapeake Energy Corp CHK 8.000 6.050 1/15/2025
Chesapeake Energy Corp CHK 7.000 6.000 10/1/2024
Chesapeake Energy Corp CHK 7.500 6.063 10/1/2026
Chesapeake Energy Corp CHK 8.000 5.500 3/15/2026
Chesapeake Energy Corp CHK 8.000 5.963 6/15/2027
Chesapeake Energy Corp CHK 8.000 5.500 3/15/2026
Chesapeake Energy Corp CHK 8.000 5.332 1/15/2025
Chesapeake Energy Corp CHK 6.875 5.261 11/15/2020
Chesapeake Energy Corp CHK 8.000 5.500 3/15/2026
Chesapeake Energy Corp CHK 8.000 5.332 1/15/2025
Chesapeake Energy Corp CHK 8.000 5.963 6/15/2027
Chinos Holdings CNOHLD 7.000 0.332 N/A
Chinos Holdings CNOHLD 7.000 0.332 N/A
Corning GLW 7.000 118.448 5/15/2024
Dean Foods Co DF 6.500 0.750 3/15/2023
Dean Foods Co DF 6.500 0.830 3/15/2023
Diamond Offshore Drilling DOFSQ 7.875 7.250 8/15/2025
Diamond Offshore Drilling DOFSQ 3.450 7.563 11/1/2023
Diamond Offshore Drilling DOFSQ 4.875 4.999 11/1/2043
Diamond Offshore Drilling DOFSQ 5.700 7.000 10/15/2039
EnLink Midstream Partners LP ENLK 6.000 52.938 N/A
Energy Conversion Devices ENER 3.000 7.875 6/15/2013
Energy Future Competitive
Holdings Co LLC TXU 1.005 0.072 1/30/2037
Exela Intermediate LLC /
Exela Finance EXLINT 10.000 29.941 7/15/2023
Exela Intermediate LLC /
Exela Finance EXLINT 10.000 30.786 7/15/2023
Extraction Oil & Gas XOG 7.375 25.000 5/15/2024
Extraction Oil & Gas XOG 5.625 25.000 2/1/2026
Extraction Oil & Gas XOG 7.375 24.012 5/15/2024
Extraction Oil & Gas XOG 5.625 24.636 2/1/2026
Federal Home Loan Mortgage FHLMC 0.410 99.785 11/25/2022
Ferrellgas Partners LP /
Ferrellgas Partners
Finance Corp FGP 8.625 18.000 6/15/2020
Ferrellgas Partners LP /
Ferrellgas Partners
Finance Corp FGP 8.625 20.000 6/15/2020
Fleetwood Enterprises FLTW 14.000 3.557 12/15/2011
Foresight Energy LLC /
Foresight Energy
Finance Corp FELP 11.500 0.469 4/1/2023
Foresight Energy LLC /
Foresight Energy
Finance Corp FELP 11.500 0.469 4/1/2023
Frontier Communications Corp FTR 10.500 48.000 9/15/2022
Frontier Communications Corp FTR 7.125 44.000 1/15/2023
Frontier Communications Corp FTR 8.750 46.000 4/15/2022
Frontier Communications Corp FTR 9.250 43.770 7/1/2021
Frontier Communications Corp FTR 6.250 42.750 9/15/2021
Frontier Communications Corp FTR 10.500 47.544 9/15/2022
Frontier Communications Corp FTR 10.500 47.544 9/15/2022
GNC Holdings GNC 1.500 1.250 8/15/2020
GTT Communications GTT 7.875 33.830 12/31/2024
GTT Communications GTT 7.875 33.379 12/31/2024
General Electric Co GE 5.000 89.000 N/A
Global Eagle Entertainment GEENQ 2.750 0.500 2/15/2035
Goodman Networks GOODNT 8.000 53.000 5/11/2022
Great Western Petroleum
LLC / Great Western
Finance Corp GRTWST 9.000 58.250 9/30/2021
Great Western Petroleum
LLC / Great Western
Finance Corp GRTWST 9.000 57.269 9/30/2021
Guitar Center GTRC 13.000 47.409 4/15/2022
Hertz Corp/The HTZ 6.250 44.521 10/15/2022
Hi-Crush HCR 9.500 5.867 8/1/2026
Hi-Crush HCR 9.500 5.867 8/1/2026
High Ridge Brands Co HIRIDG 8.875 2.914 3/15/2025
High Ridge Brands Co HIRIDG 8.875 2.914 3/15/2025
HighPoint Operating Corp HPR 7.000 40.606 10/15/2022
HighPoint Operating Corp HPR 8.750 33.504 6/15/2025
ION Geophysical Corp IO 9.125 65.989 12/15/2021
ION Geophysical Corp IO 9.125 64.778 12/15/2021
ION Geophysical Corp IO 9.125 64.778 12/15/2021
ION Geophysical Corp IO 9.125 64.778 12/15/2021
Inn of the Mountain Gods
Resort & Casino INNMTN 9.250 97.125 11/30/2020
Inn of the Mountain Gods
Resort & Casino INNMTN 9.250 98.875 11/30/2020
International Wire Group ITWG 10.750 89.150 8/1/2021
International Wire Group ITWG 10.750 89.150 8/1/2021
J Crew Brand LLC /
J Crew Brand Corp JCREWB 13.000 53.882 9/15/2021
JC Penney Corp JCP 5.875 9.000 7/1/2023
JC Penney Corp JCP 6.375 0.063 10/15/2036
JC Penney Corp JCP 5.875 8.313 7/1/2023
JC Penney Corp JCP 8.625 0.250 3/15/2025
JC Penney Corp JCP 7.125 0.250 11/15/2023
JC Penney Corp JCP 8.625 0.526 3/15/2025
JCK Legacy Co MNIQQ 6.875 0.599 3/15/2029
Jonah Energy LLC / Jonah
Energy Finance Corp JONAHE 7.250 2.507 10/15/2025
Jonah Energy LLC / Jonah
Energy Finance Corp JONAHE 7.250 2.452 10/15/2025
K Hovnanian Enterprises HOV 5.000 11.001 2/1/2040
K Hovnanian Enterprises HOV 5.000 11.001 2/1/2040
KCA Deutag UK Finance PLC KCADEU 9.625 48.500 4/1/2023
KCA Deutag UK Finance PLC KCADEU 9.875 47.969 4/1/2022
KCA Deutag UK Finance PLC KCADEU 9.625 49.347 4/1/2023
KCA Deutag UK Finance PLC KCADEU 9.875 48.000 4/1/2022
KLX Energy Services Holdings KLXE 11.500 41.500 11/1/2025
KLX Energy Services Holdings KLXE 11.500 41.076 11/1/2025
KLX Energy Services Holdings KLXE 11.500 41.076 11/1/2025
LSC Communications LKSD 8.750 16.063 10/15/2023
LSC Communications LKSD 8.750 15.851 10/15/2023
Lehman Brothers Holdings LEH 6.000 0.474 7/20/2029
Liberty Media Corp LMCA 2.250 46.625 9/30/2046
Lonestar Resources America LONE 11.250 7.750 1/1/2023
Lonestar Resources America LONE 11.250 7.375 1/1/2023
MAI Holdings MAIHLD 9.500 16.104 6/1/2023
MAI Holdings MAIHLD 9.500 16.104 6/1/2023
MAI Holdings MAIHLD 9.500 16.104 6/1/2023
MF Global Holdings Ltd MF 9.000 15.625 6/20/2038
MF Global Holdings Ltd MF 6.750 15.625 8/8/2016
Mashantucket Western
Pequot Tribe MASHTU 7.350 16.250 7/1/2026
Men's Wearhouse Inc/The TLRD 7.000 1.750 7/1/2022
Men's Wearhouse Inc/The TLRD 7.000 4.541 7/1/2022
NGL Energy Partners LP /
NGL Energy Finance Corp NGL 7.500 48.180 11/1/2023
NWH Escrow Corp HARDWD 7.500 25.500 8/1/2021
NWH Escrow Corp HARDWD 7.500 25.088 8/1/2021
Neiman Marcus Group LLC/The NMG 7.125 4.340 6/1/2028
Neiman Marcus Group
LTD LLC / Neiman Marcus
Group LLC / Mariposa
Borrower / NMG NMG 8.000 4.750 10/25/2024
Neiman Marcus Group
LTD LLC / Neiman Marcus
Group LLC / Mariposa
Borrower / NMG NMG 14.000 27.250 4/25/2024
Neiman Marcus Group
LTD LLC / Neiman Marcus
Group LLC / Mariposa
Borrower / NMG NMG 14.000 27.250 4/25/2024
Neiman Marcus Group
LTD LLC / Neiman Marcus
Group LLC / Mariposa
Borrower / NMG NMG 8.750 5.161 10/25/2024
Neiman Marcus Group
LTD LLC / Neiman Marcus
Group LLC / Mariposa
Borrower / NMG NMG 8.000 4.141 10/25/2024
Neiman Marcus Group
LTD LLC / Neiman Marcus
Group LLC / Mariposa
Borrower / NMG NMG 8.750 5.161 10/25/2024
Nine Energy Service NINE 8.750 27.896 11/1/2023
Nine Energy Service NINE 8.750 28.344 11/1/2023
Nine Energy Service NINE 8.750 28.631 11/1/2023
Northwest Hardwoods HARDWD 7.500 35.625 8/1/2021
Northwest Hardwoods HARDWD 7.500 35.250 8/1/2021
OMX Timber Finance
Investments II LLC OMX 5.540 0.573 1/29/2020
Oasis Petroleum OAS 6.875 29.250 3/15/2022
Oasis Petroleum OAS 6.875 28.500 1/15/2023
Oasis Petroleum OAS 2.625 26.250 9/15/2023
Oasis Petroleum OAS 6.500 26.000 11/1/2021
Optimas OE Solutions
Holding LLC / Optimas
OE Solutions OPTOES 8.625 65.250 6/1/2021
Optimas OE Solutions
Holding LLC / Optimas
OE Solutions OPTOES 8.625 66.745 6/1/2021
Owens & Minor OMI 3.875 101.876 9/15/2021
Party City Holdings PRTY 6.125 42.986 8/15/2023
Party City Holdings PRTY 6.125 42.986 8/15/2023
Peabody Energy Corp BTU 6.000 40.559 3/31/2022
Peabody Energy Corp BTU 6.375 25.000 3/31/2025
Peabody Energy Corp BTU 6.375 25.566 3/31/2025
Peabody Energy Corp BTU 6.000 40.268 3/31/2022
Protective Life
Global Funding PL 2.700 100.012 11/25/2020
Renco Metals RENCO 11.500 24.875 7/1/2003
Revlon Consumer Products REV 6.250 20.904 8/1/2024
SESI LLC SPN 7.125 28.750 12/15/2021
SESI LLC SPN 7.125 28.186 12/15/2021
SESI LLC SPN 7.750 26.074 9/15/2024
Sable Permian Resources
Land LLC / AEPB
Finance Corp AMEPER 7.125 0.771 11/1/2020
Sears Holdings Corp SHLD 8.000 1.200 12/15/2019
Sears Holdings Corp SHLD 6.625 2.478 10/15/2018
Sears Holdings Corp SHLD 6.625 2.478 10/15/2018
Sears Roebuck Acceptance SHLD 7.500 0.809 10/15/2027
Sears Roebuck Acceptance SHLD 6.750 0.415 1/15/2028
Sears Roebuck Acceptance SHLD 6.500 0.688 12/1/2028
Sempra Texas Holdings Corp TXU 5.550 13.500 11/15/2014
Senseonics Holdings SENS 5.250 30.063 1/15/2025
Senseonics Holdings SENS 5.250 45.750 2/1/2023
Summit Midstream Partners LP SMLP 9.500 16.000 N/A
Tilray TLRY 5.000 45.000 10/1/2023
Toys R Us TOY 7.375 1.337 10/15/2018
Transworld Systems TSIACQ 9.500 27.000 8/15/2021
Voyager Aviation Holdings
LLC / Voyager Finance Co VAHLLC 9.000 50.499 8/15/2021
Voyager Aviation Holdings
LLC / Voyager Finance Co VAHLLC 9.000 50.499 8/15/2021
*********
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 ***