/raid1/www/Hosts/bankrupt/TCR_Public/201216.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, December 16, 2020, Vol. 24, No. 350
Headlines
06-010 GRIDLEY: Expects Sale to Pay Claims in Full
1400 NORTHSIDE: Seeks to Hire Stowers & Company as Listing Broker
1400 NORTHSIDE: Taps 515 Life Real Estate as Listing Broker
4202 PARTNERS: Proposes Auction Sale as 4th Option to Pay Creditors
4202 PARTNERS: Secured Creditors Say Plan Unconfirmable
ACME HOLDINGS: Unsecured Creditors Will Get 41% of Claims
ACME HOLDINGS: UST Says Debtor Not Entitled to Discharge
ACQUIRED SALES: Has $96K Net Income for Quarter Ended Sept. 30
AEMETIS INC: Posts $12.2MM Net Loss for Quarter Ended Sept. 30
AEROCENTURY CORP: Posts $27.8M Net Loss for Sept. 30 Quarter
AKOUSTIS TECHNOLOGIES: Has $12.0M Net Loss for Sept. 30 Quarter
ALASKA COMMUNICATIONS: Egan-Jones Hikes Sr. Unsecured Ratings to B
ALIMERA SCIENCES: Reports $618K Net Loss for Sept. 30 Quarter
ALLIED ESPORTS: Has $6.5M Net Loss for Quarter Ended Sept. 30
ALPHA ENERGY: Needs More Capital to Stay as Going Concern
ALPHA ENTERTAINMENT: Liquidation Plan Okayed After Sale to The Rock
ALPHA ENTERTAINMENT: Unsecureds Will Recover 8% to 12% in Plan
ALTERNUS ENERGY: Says Substantial Doubt on Going Concern Exists
AMERGENT HOSPITALITY: Has $9.5M Net Loss for Sept. 30 Quarter
AMERICAN INTERNATIONAL: Posts $1.5M Net Loss for Sept. 30 Quarter
AMMO INC: Posts $2.3-Mil. Net Loss for Quarter Ended Sept. 30
APEX GLOBAL: Reports $1.3M Net Loss for Quarter Ended Aug. 1
ART CENTER: Gets OK to Hire C.R. Hyde as Legal Counsel
ASCENA RETAIL: Projects Significant Decline in Q1 Revenue
AYTU BIOSCIENCE: Increases Bought Deal Offering to $25 Million
AYTU BIOSCIENCE: Launches $10 Million Bought Deal Offering
BLACKJEWEL LLC: Dec. 17 Hearing on Plan & Disclosures
BLACKJEWEL LLC: First Surety Says Plan Patently Unconfirmable
BLACKJEWEL LLC: United Bank Objects to Amended Plan & Disclosure
BRIAN FAMILY: Seeks to Hire Dohmeyer Valuation as Appraiser
CENTURY 21: Asks Dec. 28 Hearing on Insurance Action Interest Sale
CFO MGMT: Trustee Selling Double Droptine Ranch for $3.2 Million
CHEYENNE HOTEL: Unsecureds to Recover 100% in 6 Quarters
CHICK LUMBER: May Use Cash Collateral Thru Dec. 31
CHRISTOPHER & BANKS: Considers Bankruptcy Filing Among Options
COMMUNITY HEALTH: Sells $2.8 Billion Debt to Refinance Notes
COMMUNITY HEALTH: Subsidiary Commences Cash Tender Offer
COMMUNITY HEALTH: Unit Prices $2.8 Billion Senior Secured Notes
CRED INC: US Trustee Asks Court to Deny SAL & SOFA Extension
CROWN REMODELING: Seeks to Hire Jeffrey M. Sirody as Legal Counsel
CUSTOM FABRICATION: Disclosure Statement Approved by Judge
DALF ENERGY: Equity Holders to Fund Adversary Proceedings
DALF ENERGY: Jan. 19, 2021 Plan Confirmation Hearing Set
DAMEN 4 MANAGEMENT: Seeks to Hire McDermott Will as Special Counsel
DENBURY ONSHORE: Wyo. High Court Affirms $35MM Award to APMTG
DESOTO OWNERS: Seeks to Hire NDC Development as Consultant
EBONY MEDIA: Creditor's Credit Bid Cut Amid Board Row
ENPRO INDUSTRIES: Egan-Jones Lowers Senior Unsecured Ratings to B+
EVEREST REAL ESTATE: Seeks to Hire Rosen Systems as Appraiser
FERRELLGAS PARTNERS: Posts $46.1 Million Net Loss in First Quarter
FIRST RESPONSE: Seeks to Hire Stevenson & Bullock as Legal Counsel
FITNESS BLUEPRINT: Plan Filing Deadline Extende to Feb. 16, 2021
GENNADY MOSHKOVICH: Bid to Reconsider Property Sale Denied
GLOBAL CORE: Seeks to Tap Christopher A. Wood as Bankruptcy Counsel
GORHAM PAPER: Committee Seeks to Hire Reed Smith as Legal Counsel
GORHAM PAPER: Committee Taps Argus Management as Financial Advisor
GOURDOUGH'S HOLDINGS: Seeks Approval to Hire Mad Works Architecture
GRAVITY HOLDINGS: Seeks Court Approval to Hire Accountant
GREEN MOUNTAIN: Seeks to Hire Anne H. Stevenson as Accountant
GULFPORT ENERGY: Paul, Porter Update List of Noteholder Group
HI-CRUSH INC: Lawsuits Against Frac Sand Mining Increase
HKO 3 LLC: Plan to Pay Unsecured Creditors in Full in 3 Years
K&W CAFETERIAS: Proposed Sale of Assets Denied Without Prejudice
KEVIN L THURMON: Thurmons Not Small Biz Debtors, Court Says
LIMERICK DINING: Restaurant Hits Chapter 11 Bankruptcy
LRGHEALTHCARE: Objections & Pitfalls Await Winning Bidder
LUCKY STAR-DEER: Kravit Partners Represents Sanford, 8 Others
MAGNOLIA LANE: Wants Solicitation Period Extended Thru Feb. 5
MALLINCKRODT PLC: Bankruptcy Stays ALS Drug Securities Class Action
MEADE INSTRUMENTS: Fair Harbor Buying Proof of Claim for $13.5K
MEDICAL SIMULATION: Unsecured Creditors Will Get 38% in Plan
MICHAEL CHRIS WOLD: Court Confirms Chapter 11 Plan
MICHAEL GALMOR: Trustee Selling 132-Acre Wheeler Land for $66K
MYINT KYAW: Kravit Partners Represents Sanford, 8 Others
NABORS INDUSTRIES: Egan-Jones Lowers Sr. Unsecured Ratings to CCC-
NACASHA LECA RUFFIN: Branch Buying Atlanta Property for $665K
NIAGARA FRONTIER COUNTRY: Status Conference Continued to Feb. 18
OUTFRONT MEDIA: Egan-Jones Lowers Senior Unsecured Ratings to B-
PARK SEVEN: Gets OK to Hire Allen Barnes as Legal Counsel
PENNSYLVANIA REIT: Successfully Exits Chapter 11 Bankruptcy
PETER SAMUEL ROSEN: Selling 1/3 Tallahassee Land Interest for $75K
PROCRETE READY MIX: Agreed Final Cash Collateral Order Issued
PUERTO RICO HOSPITAL: Court Won't Reinstate Oversight Board Claim
QUEEN ELIZABETH: Kravit Partners Represents Sanford, 8 Others
REMINGTON OUTDOOR: Seeks to Tap B. Riley, NAI Global as Brokers
ROCKET TRANSPORTATION: Voluntary Chapter 11 Case Summary
RONALD DWAYNE COLLINS: $7.5K Sale of Ford Coachmen to Moore Okayed
RTW RETAILWINDS: $6.1 MM Escrowed Funds Ordered for Release
SEADRILL LTD: Forbearance Deal With Creditors Expired Dec. 14
SPIRE INC: Egan-Jones Cuts Sr. Unsecured Debt Ratings to BB+
SUMMIT HOTEL: Egan-Jones Lowers Senior Unsecured Ratings to BB+
SUPERIOR ENERGY: To File Status Report by April 8
TAMARAC 10200: Dec. 21 Videocon on Bid Procedures for All Assets
TEGNA INC: Egan-Jones Cuts Sr. Unsecured Debt Ratings to CCC+
UNIVERSAL TOWERS: Seeks to Hire HREC Investment as Broker
VICTORIA TOWERS: Kravit Partners Represents Sanford, 8 Others
VISHAY INTERTECHNOLOGY: Egan-Jones Hikes Sr. Unsec. Ratings to BB
VIVUS INC: To Emerge from Bankruptcy as Icahn Enterprises Unit
VTV THERAPEUTICS: Causes MacAndrews to Purchase 625K Class A Shares
VTV THERAPEUTICS: CEO Holcombe & CFO Howard Retain Posts Until 2020
WAVE COMPUTING: May File Under Seal Exhibit to Bid Procedures
*********
06-010 GRIDLEY: Expects Sale to Pay Claims in Full
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06-010 Gridley Business Trust filed with the U.S. Bankruptcy Court
for the District of Nevada a An Amendeded Plan of Reorganization
and a corresponding Disclosure Statement on December 10, 2020.
Class 3 General Unsecured Claims consist of capital investments
made by the investing beneficiaries of the business trust to
satisfy administrative and operating costs. The general unsecured
claims amount to approximately $181,147, the claims consist of Mesa
Asset Management claims, U.S. Trustee claim from prior bankruptcy
filing, and the balance of claimants have insider affiliated
status. After payment of the Class 1 claims, the general unsecured
creditor claims will be paid 100% of their allowed claim. Class 3
claimants receive a vote to either accept or reject the Plan.
Mesa has $62,438.96 in costs and $85,900 in management fees which
are owed, plus accrued interest. The investors have $32,157.93 in
cost to be reimbursed to those who made contributions, plus accrued
interest.
Class 4 consists of equity holding members of the Business Trust
and tenants-in-common. The members of Class 4 initially invested
into a loan that was secured by the real property in the estate.
Upon foreclosure, the majority of investors elected to become
members of the Business Trust Debtor. Our investors elected to hold
their interests as Tenants-in-Common. The Equity Holders are
members of the Debtor and will be subordinated as insiders to the
other creditor Class 1-3. Class 4 will receive a pro rata
distribution of sale proceeds after Classes 1-3 have been paid in
full and all administrative allowed claims have been paid in full.
Class 4 members will receive a pro rata distributions as will the
Tenants-in-Common based upon the initial investment to the initial
loan amount.
Class 4 are insider claims and are not valid for confirmation of
the plan. All members of Class 4 will receive a right to vote to
accept or reject the plan to be provided as information for the
Court and creditors.
The Debtor will implement its Plan by having MESA serve as the Plan
Agent for payment of Claims pursuant to the Plan. The Plan Agent
will make the plan payments from the revenue that is generated from
the sale of Debtor assets in whole or in part and the annual income
of $0. The real property value held by the estate is estimated as
$4,015,800. The sales costs and other expenses of sale will be paid
from the proceeds of sale at the time of closing. The expected net
revenue from the sale of the Property is anticipated to be
sufficient to pay all allowed claims 100%.
A full-text copy of the Disclosure Statement dated December 10,
2020, is available at https://bit.ly/3oQL0V9 from PacerMonitor.com
at no charge.
The Debtor is represented by:
Timothy P. Thomas, Esq.
LAW OFFICE OF TIMOTHY THOMAS, LLC
1771 E. Flamingo Rd. B-212
Las Vegas, NV 89119
Tel: (702) 227-0011
E-mail: tthomas@tthomaslaw.com
About 06-010 Gridley Business Trust
06-010 Gridley Business Trust, based in Las Vegas, NV, filed a
Chapter 11 petition (Bankr. D. Nev. Lead Case No. 14-14028) on June
6, 2014. The Hon. August B. Landis oversees the case.
In its petition, the Debtor disclosed $1.21 million in assets, and
$694,384 in liabilities. The petition was signed by Peter J.
Becker, managing member of Trustee, Mesa Asset Management, LLC.
The LAW OFFICES OF TIMOTHY P. THOMAS, LLC, serves as bankruptcy
counsel to the Debtor.
1400 NORTHSIDE: Seeks to Hire Stowers & Company as Listing Broker
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1400 Northside Drive, Inc. and its affiliate, Cummins Beveridge
Jones, II, seek approval from the U.S. Bankruptcy Court for the
Northern District of Georgia to employ Stowers & Company as
exclusive listing broker.
The Debtors need the assistance of the firm to market two duplexes
located at 641 and 647 Green St., NW, Atlanta, Ga., valued at
$525,000 and $550,000, respectively.
Stowers & Company will receive a commission in the amount of 6
percent of the sales price upon the sale of the property.
Mel Stowers, a licensed real estate agent and president of Stowers
& Company, disclosed in court filings that he and the firm are
"disinterested persons" within the meaning of Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Mel Stowers
Stowers & Company
257 Lawrence Street, NE, Unit 5236
Marietta, GA 30061
Telephone: (770) 528-9422
Email: mstowers@stowersco.com
About 1400 Northside Drive
1400 Northside Drive, Inc., owner of a male strip club known as
Swinging Richards, filed a voluntary Chapter 11 petition (Bankr.
N.D. Ga. Case No. 19-56846) on May 2, 2019. The case is jointly
administered with the Chapter 11 case filed by Cummins Beveridge
Jones II (Bankr. N.D. Ga. Case No. 19-20853), the Debtor's chief
executive officer and chief financial officer.
At the time of the filing, 1400 Northside Drive was estimated to
have $50,000 to $100,000 in assets and $1 million to $10 million in
liabilities.
Judge James R. Sacca oversees the case.
Paul Reece Marr, P.C. is the Debtor's legal counsel.
1400 NORTHSIDE: Taps 515 Life Real Estate as Listing Broker
-----------------------------------------------------------
1400 Northside Drive, Inc. and its affiliate, Cummins Beveridge
Jones, II, seek approval from the U.S. Bankruptcy Court for the
Northern District of Georgia to employ 515 Life Real Estate
Company, LLC as exclusive listing broker.
The Debtors need the assistance of 515 Life Real Estate to market a
residential real estate located at 124 Lone Oak Way, Fairmont, Ga.
for a list price of $150,000.
The firm will receive a commission in the amount of 6 percent of
the sales price upon the sale of the property. If there is a
cooperating broker, 515 Life Real Estate will pay 3 percent of the
property's sales price.
Barry Hardison, the owner and licensed broker at 515 Life Real
Estate, disclosed in court filings that he and his firm are
"disinterested persons" within the meaning of Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Barry Hardison
515 Life Real Estate Company, LLC
1651 Lumber Company Road
Talking Rock, GA 30175-4187
Telephone: (706) 301-5600
Facsimile: (706) 692-0060
Email: barryhardison@windstream.net
About 1400 Northside Drive
1400 Northside Drive, Inc., owner of a male strip club known as
Swinging Richards, filed a voluntary Chapter 11 petition (Bankr.
N.D. Ga. Case No. 19-56846) on May 2, 2019. The case is jointly
administered with the Chapter 11 case filed by Cummins Beveridge
Jones II (Bankr. N.D. Ga. Case No. 19-20853), the Debtor's chief
executive officer and chief financial officer.
At the time of the filing, 1400 Northside Drive was estimated to
have $50,000 to $100,000 in assets and $1 million to $10 million in
liabilities.
Judge James R. Sacca oversees the case.
Paul Reece Marr, P.C. is the Debtor's legal counsel.
4202 PARTNERS: Proposes Auction Sale as 4th Option to Pay Creditors
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4202 Partners LLC (the "4202 Debtor"), 4218 Partners LLC the "4218
Debtor"), 175 Pulaski RLM LLC ("Pulaski") and 4202 Ki Tov LLC ("Ki
Tov") (collectively, the "Debtors"), filed the Amended Joint
Disclosure Statement in connection with the Amended Joint Chapter
11 Plan of Reorganization on December 10, 2020.
Originally, the plan offered three options to each of the Secured
Creditors, in an effort to obtain their consent, based upon
different payment scenarios. Since the original filing of the
Amended Plan, the Debtors have added a fourth option ( the "Fourth
Option") predicated on the Debtors and Secured Creditors jointly
pursuing a coordinated auction sale of the Properties under a
transparent marketing process. In its most basic terms, the purpose
of the auction is to flesh out true current market value for the
Properties following extensive marketing, in conjunction with the
Debtors' ability to make an overbid. This Fourth Option gives the
Secured Creditors the opportunity to have the Properties sold
expeditiously under an auction, while allowing the Debtors the
right to continue with the Project if they can and overbid to match
the market price.
Under the Fourth Option, if a bona fide third-party buyer emerges
for the Properties, then that bona fide offer will be deemed the
floor price, and the Debtors shall be entitled to make an overbid
at the auction equal to the offer of the bona fide third-party
buyer, plus payment of $25,000, plus the Debtors' commitment to
fund all payment obligations due under the Amended Plan for
administrative expenses, priority claims and the $100,000 General
Creditor Fund. Conversely, if the Debtors do not make a timely
overbid, or cannot establish their financial wherewithal to fund
the Overbid, then the right to direct completion of the auction
sale reverts to the Secured Creditors, which can either direct a
sale of the Properties to the bona fide third-party pursuant to the
Amended Plan, or credit bid and match the third-party offer
themselves and thereafter fund the balance of the payments due to
other creditors and administrative expenses under the Amended Plan.
The Debtors or Secured Creditors shall fund distributions under the
Amended Plan via either sale proceeds, the Overbid or Exit
Financing pursuant to the so-called New Project Loan, as defined in
the Amended Plan, in an amount up to $20 million dollars. In
addition, depending on which option is selected, the Debtors also
project obtaining the New Value Contribution of $5 million dollars
for a total of up to $25 million dollars whether NEWCO emerges to
make the Overbid or functions as the Reorganized Debtors, it shall
have the right and authority without further order of the
Bankruptcy Court to raise additional capital and obtain additional
financing as it deems appropriate. To the extent applicable, the
Debtors shall file a Plan Supplement prior to confirmation
disclosing the identity of the Exit Lender.
A full-text copy of the Amended Joint Disclosure Statement dated
December 10, 2020, is available at https://bit.ly/2LmVCfO from
PacerMonitor.com at no charge.
Attorneys for 4202 Partners LLC:
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway 22nd Floor
New York, New York
Tel: (212) 221-5700
Kevin J. Nash
Attorneys for 4218 Partners & 175 Pulaski:
NUTOVIC & ASSOCIATES
261 Madison Avenue, 26th Floor
New York, New York 10016
Tel: (212) 421-9100
Isaac Nutovic
Attorneys for 4202 Ki Tov:
ZEICHNER ELLMAN & KRAUSE LLP
1211 Avenue of the Americas
New York, New York 10036
Tel: (212) 826-5317
Nathan Schwed
About 4202 Partners
4202 Partners LLC, based in Brooklyn, NY, filed a Chapter 11
petition (Bankr. E.D.N.Y. Case No. 20-42438). In the petition
signed by Samuel Pfeiffer, manager, the Debtor listed $6,500,000 in
assets and $12,403,577 in liabilities. Goldberg Weprin Finkel
Goldstein LLP, serves as bankruptcy counsel to the Debtor.
4202 PARTNERS: Secured Creditors Say Plan Unconfirmable
-------------------------------------------------------
Secured Creditors Maguire Ft. Hamilton LLC and 4202 Fort Hamilton
Debt LLC object to the Amended Joint Disclosure Statement filed by
debtors 4202 Partners LLC (the "4202 Debtor"), 4218 Partners LLC
the "4218 Debtor"), 175 Pulaski RLM LLC and 4202 Ki Tov LLC.
The Secured Creditors claim that the Disclosure Statement fails to
discuss the number and value of unsecured claims, the proposed
distributions to unsecured creditors, or even reference to the
unsecured creditors of 175 Pulaski and Ki Tov.
The Secured Creditors point out that the Disclosure Statement fails
to explain or provide sufficient detail regarding the
(impermissible) third-party releases offered to Mr. Fischman, Mr.
Pfeiffer, and Ms. Krausz from "all persons or entities receiving
distributions hereunder" and the value of any such claims being
released.
The Secured Creditors assert that the Debtors need not and should
not be permitted to proceed with a plan that does not and cannot
meet the requirements for confirmation set forth in Section 1129.
Permitting the solicitation process to go forward in these cases
simply delays the inevitable at the expense of the Secured
Creditors, all while these Debtors continue their failure to fund
any of their postpetition obligations.
The Secured Creditors further assert that the Debtors' Plan is just
the sort of speculative, longshot plan that the feasibility
requirement is meant to prevent. The Debtors do not have the
funding to effectuate their Plan. The Debtors' haphazard attempt to
provide evidence of financing from L&L Capital Partners fails
miserably.
The Secured Creditors state that the Plan does not provide that
unsecured creditors will be paid in full, yet the Plan contemplates
that Mr. Fischman, Mr. Pfeiffer, and Ms. Krausz will retain their
equity in the Debtors (or, more accurately, be given equity in
"Newco"). This type of equity retention is expressly prohibited by
the absolute priority rule.
A full-text copy of the Secured Creditors' objection to the Amended
Joint Disclosure Statement dated December 10, 2020, is available at
https://bit.ly/37YjZrL from PacerMonitor.com at no charge.
Attorneys for Maguire:
MORITT HOCK & HAMROFF LLP
Leslie A. Berkoff
400 Garden City Plaza
Garden City, New York 11530
Telephone: (516) 873-2000 ext. 243
Facsimile: (516) 873-2010
E-mail: lberkoff@moritthock.com
Attorneys for 4202 Fort:
SEYFARTH SHAW LLP
M. Ryan Pinkston (pro hac vice)
SEYFARTH SHAW LLP
560 Mission Street, Suite 3100
San Francisco, California 94105
Telephone: (415) 544-1013
Facsimile: (415) 397-8549
E-mail: rpinkston@seyfarth.com
Jerry A. Montag
SEYFARTH SHAW LLP
620 8th Avenue
New York, NY 10018
Telephone: (212) 218-4646
Facsimile: (917) 344-1339
E-mail: jmontag@seyfarth.com
About 4202 Partners
4202 Partners LLC, based in Brooklyn, NY, filed a Chapter 11
petition (Bankr. E.D.N.Y. Case No. 20-42438). In the petition
signed by Samuel Pfeiffer, manager, the Debtor listed $6,500,000 in
assets and $12,403,577 in liabilities. Goldberg Weprin Finkel
Goldstein LLP, serves as bankruptcy counsel to the Debtor.
ACME HOLDINGS: Unsecured Creditors Will Get 41% of Claims
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Acme Holdings of N.Y., Inc., filed with the U.S. Bankruptcy Court
for the Western District of New York a Disclosure Statement for
Chapter 11 Plan on October 29, 2020.
General unsecured creditors are classified in Class 18 and will
receive an estimated distribution of 41% of their allowed claims
payable in full on the first anniversary date.
Holders of equity interest shall be paid the net proceeds from sale
of assets after full payment of all secured claims with interest
and 41% of unsecured claims.
Debtor shall liquidate (sell) all assets within one year from the
effective date of the Plan. The proceeds of sale shall be used to
fund the Plan. The Debtor is authorized to sell assets for fair
market value free and clear of liens with the liens attach to the
proceeds in the order of priority and creditors are obligated to
provide lien releases to facilitate sale.
A full-text copy of the disclosure statement dated October 29,
2020, is available at https://tinyurl.com/yykh3gvw from
PacerMonitor.com at no charge.
About Acme Holdings of N.Y.
Acme Holdings of N.Y., Inc. owns an event venue in Batavia, N.Y. It
caters to weddings and receptions, holiday and family gatherings,
corporate events and conventions, and school functions and
fundraisers. Visit http://www.dibbleevents.com/for more
information.
Acme Holdings of N.Y. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 20-10204) on Feb. 5,
2020. At the time of the filing, Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range.
Judge Carl L. Bucki oversees the case.
David H. Ealy, Esq., at Cristo Law Group, LLC, is Debtor's legal
counsel.
ACME HOLDINGS: UST Says Debtor Not Entitled to Discharge
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William K. Harrington, the United States Trustee for Region 2,
objects to the Disclosure Statement and Plan of Reorganization of
Debtor Acme Holdings of N.Y., Inc.
The United States Trustee objects to the Disclosure Statement
because it does not contain an adequate discussion and sufficient
information and disclosure due to the following:
* The Debtor's Plan states that there are no priority unsecured
claims. The Debtor's Disclosure Statement (page 7) sets forth two
priority tax claims however. This discrepancy should be addressed.
* The Plan in section 9.01 provides that the Debtor will receive
a discharge pursuant to 11 U.S.C. Sec. 1141. However, as a
corporation that will be liquidating under its Plan, under Sec.
1141(d)(3) the Debtor is not entitled to a discharge.
* The Disclosure Statement should address how the Debtor will be
able to perform under its Plan if the Debtor's principal is
incarcerated in connection with the criminal proceedings.
A full-text copy of the United States Trustee's objection dated
December 10, 2020, is available at https://bit.ly/3nc4ROb from
PacerMonitor at no charge.
About Acme Holdings of N.Y.
Acme Holdings of N.Y., Inc. owns an event venue in Batavia, N.Y. It
caters to weddings and receptions, holiday and family gatherings,
corporate events and conventions, and school functions and
fundraisers. Visit http://www.dibbleevents.com/for more
information.
Acme Holdings of N.Y. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 20-10204) on Feb. 5,
2020. At the time of the filing, Debtor disclosed assets of
between $1 million and $10 million and liabilities of the same
range.
Judge Carl L. Bucki oversees the case.
David H. Ealy, Esq., at Cristo Law Group, LLC, is Debtor's legal
counsel.
ACQUIRED SALES: Has $96K Net Income for Quarter Ended Sept. 30
--------------------------------------------------------------
Acquired Sales Corp. filed its quarterly report on Form 10-Q,
disclosing net income of $95,823 on $1,509,437 of net sales for the
three months ended Sept. 30, 2020, compared to a net loss of
$146,466 on $0 of net sales for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $25,872,111,
total liabilities of $4,714,948, and $21,157,163 in total
shareholders' equity.
Acquired Sales said, "The COVID-19 pandemic and its ramifications,
combined with the expenses and potential liabilities associated
with litigation involving Lifted, combined with the regulatory
risks and uncertainties associated with the cannabinoid-infused
products, vaping and nicotine products industries, combined with
the risks associated with internet hacking or sabotage, combined
with the risks of employee and/or independent contractor disloyalty
or theft of Company information and opportunities, have created
significant adverse risks to the Company, which have caused
substantial doubt about the Company's ability to continue as a
going concern. Also, the Company has Preferred Stock outstanding
that is currently accruing dividends at the rate of 3% per year.
Also, the Company has not yet paid an aggregate of US$350,000 of
bonuses owed to its CEO Gerard M. Jacobs, and William C. "Jake"
Jacobs, President and CFO, because it currently does not have the
funds to do so. These bonuses are due and payable upon demand. In
addition, factors that could materially affect future operating
results include, but are not limited to, changes to laws and
regulations, especially those related to CBD, delta-8 THC, nicotine
products, vaping, vendor concentration risk, customer concentration
risk, customer credit risk, and counterparty risk. The Company
maintains levels of cash in a bank deposit account that, at times,
may exceed federally insured limits. The Company has not
experienced any losses in such account and it believes it is not
exposed to any significant credit risk on cash.
"No assurance or guarantee whatsoever can be given that the net
income of the Company's wholly-owned subsidiary Lifted Made will be
sufficient to allow the Company to pay all of its operating
expenses and the dividends accruing on the Company's preferred
stock. As a result, there is substantial doubt that the Company
will be able to continue as a going concern. Bankruptcy of the
Company at some point in the future is a possibility. The
accompanying financial statements do not include any adjustments
relating to the recoverability and classification of recorded asset
amounts or amounts and classification of liabilities that might be
necessary should the Company be unable to continue as a going
concern.
"The Company currently has one revenue-generating subsidiary,
Lifted Made. If and to the extent that the revenue generated by
Lifted Made is not adequate to pay the Company's operating expenses
and the dividends accruing on its preferred stock, then Company
management plans to sustain the Company as a going concern by
taking the following actions: (1) acquiring and/or developing
additional profitable businesses that will create positive income
from operations; and/or (2) completing private placements of the
Company's common stock and/or preferred stock. Management believes
that by taking these actions, the Company will be provided with
sufficient future operations and cash flow to continue as a going
concern. However, there can be no assurances or guarantees
whatsoever that the Company will be successful in consummating such
actions on acceptable terms, if at all. Moreover, any such actions
can be expected to result in substantial dilution to the existing
shareholders of the Company."
A copy of the Form 10-Q is available at:
https://bit.ly/2K0dSLA
Acquired Sales Corp. does not have significant operations.
Previously, it was engaged in selling software licenses and
hardware, and the provision of consulting and maintenance services.
The company is exploring potential acquisitions of all or a portion
of one or more operating businesses involving the manufacture and
sale of cannabidiol (CBD)-infused products, such as beverages,
muscle/joint rubs, oils, crystals, tinctures, bath bombs, isolate,
relief balms, elixirs, body washes, med sticks, lotions, vape pens
and cartridges, shatter, and gummies. Acquired Sales Corp. was
founded in 1986 and is headquartered in Lake Forest, Illinois.
AEMETIS INC: Posts $12.2MM Net Loss for Quarter Ended Sept. 30
--------------------------------------------------------------
Aemetis, Inc. filed its quarterly report on Form 10-Q, disclosing a
net loss of $12,217,000 on $40,923,000 of revenues for the three
months ended Sept. 30, 2020, compared to a net loss of $7,226,000
on $57,389,000 of revenues for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $122,170,000,
total liabilities of $297,733,000, and $175,563,000 in total
stockholders' deficit.
The Company has a working capital deficit, which includes
approximately US$59.3 million of debt maturing within the next 12
months, and the Company has been required to remit substantially
all excess cash from operations to its senior lender and is
therefore reliant on its senior lender to provide additional
funding when required. In order to meet its obligations during the
next 12 months, the Company will need to either refinance the
Company's debt or receive the continued cooperation from its senior
lender.
Aemetis said that this dependence on the senior lender raises
substantial doubt about its ability to continue as a going
concern.
A copy of the Form 10-Q is available at:
https://bit.ly/3mdCPjI
Headquartered in Cupertino, California, Aemetis, Inc. --
http://www.aemetis.com/-- is an advanced renewable fuels and
biochemicals company focused on the acquisition, development and
commercialization of innovative technologies that replace
traditional petroleum-based products by the conversion of ethanol
and biodiesel plants into advanced biorefineries. Founded in 2006,
Aemetis owns and operates a 60 million gallon-per-year ethanol
production facility in the California Central Valley near Modesto.
Aemetis also owns and operates a 50 million gallon per year
renewable chemical and advanced fuel production facility on the
East Coast of India producing high quality distilled biodiesel and
refined glycerin for customers in India and Europe. Aemetis is
building a biogas digester, pipeline and gas cleanup project to
convert dairy waste gas into renewable natural gas, and is
developing a plant to convert waste orchard wood into cellulosic
ethanol. Aemetis holds a portfolio of patents and related
technology licenses for the production of renewable fuels and
biochemicals.
AEROCENTURY CORP: Posts $27.8M Net Loss for Sept. 30 Quarter
------------------------------------------------------------
AeroCentury Corp. filed its amended quarterly report on Form
10-Q/A, disclosing a net loss of $27,777,200 on $12,659,000 of
revenues for the three months ended Sept. 30, 2020, compared to a
net loss of $9,617,100 on $38,715,900 of revenues for the same
period in 2019.
At Sept. 30, 2020, the Company had total assets of $121,020,700,
total liabilities of $124,651,300, and $3,630,600 in total
stockholders' deficit.
The Company said that there is substantial doubt regarding its
ability to continue as a going concern.
AeroCentury further stated, "The Company was in default under its
MUFG Credit Facility as of December 31, 2019.
"On May 1, 2020, the Company and the MUFG Credit Facility Lenders
("MUFG Lenders") executed an amendment to the MUFG Credit Facility
(as amended, the "MUFG Loan Agreement") to convert the MUFG Credit
Facility into a term loan facility (as converted, the "MUFG Loan").
The amendment included certain requirements and establishment of
deadlines for achievement of milestones toward execution of Company
strategic alternatives for the Company and/or its assets acceptable
to the MUFG Lenders. The amendment cured the December default, but
the Company was in default under the MUFG Loan Agreement due to
non-payment of interest due on July 1, 2020, August 3, 2020,
September 1, 2020 and October 1, 2020. The Company was also
obligated to pay US$3.1 million related to the termination of the
MUFG Swaps in March 2020.
"On October 30, 2020, the MUFG Lenders sold the MUFG Loan and the
obligation of the Company from termination of the MUFG Swaps to
Drake Asset Management Jersey Limited ("Drake"), and the Company
and Drake entered into an amendment of the loan (as amended, the
"Drake Loan Agreement") under which, among other things, the cash
component of interest due for March 2020 and thereafter for the
term of the loan will be capitalized and the requirement for
execution of a Strategic Alternative and related milestones was
deleted.
"Drake has the right to exercise any and all remedies for default
under the Drake Loan Agreement. Such remedies include, but are not
limited to, declaring the entire indebtedness immediately due and
payable and, if the Company were unable to repay such accelerated
indebtedness, foreclosing upon the assets of the Company that
secure the indebtedness under the Drake Loan Agreement (the "Drake
Loan") and the indebtedness for the terminated swaps (together, the
"Drake Indebtedness"), which consist of substantially all of the
Company's assets except for certain assets held in the Company's
single asset special-purpose financing subsidiaries. The Company
also defaulted on payment under the Nord Loans.
"The COVID-19 pandemic has led to significant cash flow issues for
airlines, and some airlines, including some of the Company's
customers, have been unable to timely meet their obligations under
their lease obligations with the Company unless government
financial support is received, of which there can be no assurance.
Any additional significant nonpayment or late payment of lease
payments by a significant lessee or combination of lessees could in
turn impose limits on the Company's ability to fund its ongoing
operations as well as cause the Company to be unable to meet its
debt obligations, which in turn could lead to an immediate
acceleration of debt and foreclosure upon the Company's assets."
A copy of the Form 10-Q/A is available at:
https://bit.ly/3mcgtiT
AeroCentury Corp. is engaged in the business of investing in used
regional aircraft equipment and leasing the equipment to foreign
and domestic regional air carriers. The Company's principal
business objective is to acquire aircraft assets and manage those
assets in order to provide a return on investment through lease
revenue and, eventually, sale proceeds. The Company is
headquartered in Burlingame, California.
AKOUSTIS TECHNOLOGIES: Has $12.0M Net Loss for Sept. 30 Quarter
---------------------------------------------------------------
Akoustis Technologies, Inc., filed its quarterly report on Form
10-Q, disclosing a net loss of $11,950,000 on $636,000 of revenue
for the three months ended Sept. 30, 2020, compared to a net loss
of $8,975,000 on $543,000 of revenue for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $64,346,000,
total liabilities of $29,161,000, and $35,185,000 in total
stockholders' equity.
Akoustis said, "As of September 30, 2020, the Company had cash and
cash equivalents of US$37.2 million and working capital of US$35.1
million. The Company has historically incurred recurring operating
losses and experienced net cash used in operating activities of
US$7.9 million for the three months ended September 30, 2020, which
raises substantial doubt about the Company's ability to continue as
a going concern within one year after the issuance date."
A copy of the Form 10-Q is available at:
https://bit.ly/3a4bvC8
Akoustis Technologies, Inc., through its subsidiary, Akoustis,
Inc., develops, designs, manufactures, and sells radio frequency
(RF) filter products for the mobile wireless device industries in
the United States. The Company operates through two segments,
Foundry Fabrication Services and RF Filters. The Foundry
Fabrication Services segment provides engineering review services;
and smart systems technology and commercialization center foundry,
as well as manufacturing and microelectromechanical systems foundry
services. The RF Filters segment consists of amplifier and filter
products. It offers RF filters for mobile wireless devices, such
as smartphones and tablets, cellular infrastructure equipment, and
Wi-Fi premise equipment. The Company was founded in 2014 and is
headquartered in Huntersville, North Carolina.
ALASKA COMMUNICATIONS: Egan-Jones Hikes Sr. Unsecured Ratings to B
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 25, 2020, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Alaska Communications Systems Group Inc. to B from
B-.
Alaska Communications Systems Group Inc. is a full-service
telecommunications provider in Alaska.
ALIMERA SCIENCES: Reports $618K Net Loss for Sept. 30 Quarter
-------------------------------------------------------------
Alimera Sciences, Inc. filed its quarterly report on Form 10-Q,
disclosing a net loss of $618,000 on $12,473,000 of net revenue for
the three months ended Sept. 30, 2020, compared to a net loss of
$3,140,000 on $12,850,000 of net revenue for the same period in
2019.
At Sept. 30, 2020, the Company had total assets of $49,080,000,
total liabilities of $56,713,000, and $7,633,000 in total
stockholders' deficit.
Alimera Sciences said, "To date, the Company has incurred recurring
losses and negative cash flow from operations and has accumulated a
deficit of US$391,932,000 from inception through September 30,
2020. As of September 30, 2020, the Company had approximately
US$11,254,000 in cash and cash equivalents. The Company's ability
to avoid depleting its cash depends upon its ability to maintain
revenue and contain its expenses. Should the impact of the
COVID-19 pandemic be extended, the Company has plans in place to
reduce its expenses further in the future.
"Further, the Company must maintain compliance with the debt
covenants of its US$45,000,000 Loan and Security Agreement with
Solar Capital Ltd., as amended. In management's opinion, the
uncertainty regarding future revenues raises substantial doubt
about the Company's ability to continue as a going concern without
access to additional debt and/or equity financing over the course
of the next twelve months.
"To meet the Company's future working capital needs, the Company
may need to raise additional debt or equity financing. While the
Company has from time to time been able to raise additional capital
through issuance of equity and/or debt financing, and while the
Company has implemented a plan to control its expenses to satisfy
its obligations due within one year from the date of issuance of
these Interim Financial Statements, the Company cannot guarantee
that it will be able to maintain debt compliance, raise additional
equity, contain expenses, or increase revenue. Accordingly, there
is substantial doubt about the Company's ability to continue as a
going concern within one year after these Interim Financial
Statements are issued."
A copy of the Form 10-Q is available at:
https://bit.ly/3oHeEfi
Alimera Sciences, Inc., is an Alpharetta, Georgia-based
pharmaceutical company that specializes in the research,
development and commercialization of prescription ophthalmic
pharmaceuticals. The company is focused on diseases affecting the
back of the eye, or retina.
ALLIED ESPORTS: Has $6.5M Net Loss for Quarter Ended Sept. 30
-------------------------------------------------------------
Allied Esports Entertainment Inc. filed its quarterly report on
Form 10-Q, disclosing a net loss of $6,548,877 on $5,888,302 of
total revenues for the three months ended Sept. 30, 2020, compared
to a net loss of $4,253,472 on $6,041,541 of total revenues for the
same period in 2019.
At Sept. 30, 2020, the Company had total assets of $65,286,873,
total liabilities of $21,319,882, and $43,966,991 in total
stockholders' equity.
The Company said, "As of September 30, 2020, we had cash and
working capital of approximately US$5.8 million (excluding
approximately US$5.0 million of restricted cash) and US$53
thousand, respectively. Current liabilities include Senior Notes
in the gross principal amount of US$5.7 million which is payable in
12 monthly installments through September 1, 2021, and for which
certain payments can be accelerated at the option of the lender.
As of September 30, 2020, the Company also has a Bridge Note
outstanding in the amount of approximately US$1.4 million and
convertible debt in the aggregate amount of US$2.0 million, which
mature on February 23, 2022, and loans payable in the aggregate
amount of US$1.6 million outstanding under the Paycheck Protection
Program, which are due in monthly installments beginning in
November and continuing through April 2022. For the nine months
ended September 30, 2020 and 2019, we incurred net losses of
approximately US$26.2 million and US$10.9 million, respectively,
and used cash in operations of approximately US$6.5 million and
US$7.8 million, respectively. The aforementioned factors raise
substantial doubt about our ability to continue as a going concern
within one year after the issuance date of our condensed
consolidated financial statements. During the period from October
1, 2020 and November 2, 2020, the Company issued an aggregate
3,120,869 shares of its common stock in satisfaction of US$2.6
million and US$0.4 million of principal and interest, owed on the
Senior Notes, such that the principal owed on the Senior Notes as
of November 2, 2020 is approximately US$3.1 million."
A copy of the Form 10-Q is available at:
https://bit.ly/2JNU3HC
Allied Esports Entertainment Inc., an esports entertainment
company, provides infrastructure, transformative live experiences,
and multiplatform content and interactive services worldwide. The
company was incorporated in 2017 and is headquartered in Irvine,
California. Allied Esports Entertainment Inc. is a subsidiary of
Ourgame International Holdings Limited.
ALPHA ENERGY: Needs More Capital to Stay as Going Concern
---------------------------------------------------------
Alpha Energy, Inc. filed its quarterly report on Form 10-Q,
disclosing a net loss of $337,632 on $0 of revenue for the three
months ended Sept. 30, 2020, compared to a net loss of $216,063 on
$0 of revenue for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $1,035,470,
total liabilities of $1,938,909, and $903,439 in total
stockholders' deficit.
Alpha Energy said, "The Company does not have sufficient cash or
other current assets, nor does it have an ongoing source of
revenues sufficient to cover its operating costs and allow it to
continue as a going concern. These conditions 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 on the Company obtaining adequate capital to fund
operating losses until it becomes profitable. If the Company is
unable to obtain adequate capital, it could be forced to cease
operations.
"In order to continue as a going concern, the Company will need,
among other things, additional capital resources. Management's
plan is to obtain such resources for the Company by obtaining
capital from management and significant shareholders sufficient to
meet its minimal operating expenses and seeking equity and/or debt
financing. However, management cannot provide any assurances that
the Company will be successful in accomplishing any of its plans.
"The ability of the Company to continue as a going concern is
dependent upon its ability to successfully accomplish the plans and
eventually secure other sources of financing and attain profitable
operations. The accompanying financial statements do not include
any adjustments that might be necessary if the Company is unable to
continue as a going concern."
A copy of the Form 10-Q is available at:
https://bit.ly/3oLCiaE
Based in Houston, Texas, Alpha Energy Inc. (OTCMKTS:APHE) operates
as an oil and gas exploration and development company. The Company
focuses on obtaining existing oil and gas production assets, as
well as acquisition of oil and gas leases to pursue new exploration
and drilling opportunities.
ALPHA ENTERTAINMENT: Liquidation Plan Okayed After Sale to The Rock
-------------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that Alpha Entertainment Inc.,
the former owner of the XFL, received court approval to wind down
in bankruptcy after selling the football league to an investor
group led by Dwayne "The Rock" Johnson.
General unsecured creditors, the only stakeholder group entitled to
vote on the Chapter 11 liquidation plan, "voted overwhelmingly" in
favor of it, Judge Laurie S. Silverstein of the U.S. Bankruptcy
Court for the District of Delaware said before approving the plan
at a telephonic hearing Friday, December 11, 2020.
Alpha proposed its bankruptcy plan after selling its assets for $15
million and repaying a $9 million loan from XFL founder Vince
McMahon. The plan provides unsecured creditors with projected
recoveries of up to 12% of allowed claims, which total between $38
million and $57 million.
The company filed for bankruptcy in April 2020 after cutting
XFL’s 2020 season short in response to the coronavirus pandemic.
The case is In re Alpha Ent. LLC, Bankr. D. Del., No. 20-10940,
hearing 12/11/20.
About Alpha Entertainment LLC
Alpha Entertainment LLC, which does business as the "Xtreme
Football League" -- https://www.alphaentllc.com/ -- is a
professional American football league. The XFL kicked off with
games beginning in February 2020. The XFL offered fast-paced,
three-hour games with fewer play stoppages and simpler rules. The
XFL featured eight teams, 46-man active rosters, and a 10-week
regular season schedule, with a postseason consisting of two
semifinal playoff games and a championship game. The eight XFL
teams were the DC Defenders, the Dallas Renegades, the Houston
Roughnecks, the Los Angeles Wildcats, the New York Guardians, the
St. Louis BattleHawks, the Seattle Dragons, and the Tampa Bay
Vipers.
Alpha Entertainment, based in Stamford, CT, filed a Chapter 11
petition (Bankr. D. Del. Case No. 20-10940) on April 13, 2020. The
Hon. Laurie Selber Silverstein oversees the case. In its petition,
the Debtor was estimated to have $10 million to $50 million in both
assets and liabilities. The petition was signed by John Brecker,
independent manager.
The Debtor hired Young Conaway Stargatt & Taylor, LLP as counsel.
Donlin Recano & Company, Inc., is the claims agent and
administrative advisor.
ALPHA ENTERTAINMENT: Unsecureds Will Recover 8% to 12% in Plan
--------------------------------------------------------------
Alpha Entertainment LLC submitted a First Amended Chapter 11 Plan
and a corresponding Disclosure Statement.
Class 3 Allowed General Unsecured Claims are projected to total $38
million to $57 million. The creditors will recover 8% to 12% of
their claims. The Debtor estimates cash available for Distributions
for Allowed General Unsecured Claims of approximately $4.6
million.
Over 550 proofs of claim have been filed against the Estate. As of
the date of the Disclosure Statement, inclusive of amounts set
forth in the Schedules and not superseded by filed proofs of
claims, there are approximately $74 million in Claims asserted
against the Debtor and its Estate, including approximately $54
million in General Unsecured Claims.
A full-text copy of the Disclosure Statement dated November 2,
2020, is available at https://tinyurl.com/y4hmprg9 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Michael R. Nestor
Matthew B. Lunn
Kenneth J. Enos
Shane M. Reil
Matthew P. Milana
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 N. King Street
Rodney Square
Wilmington, Delaware 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
E-mail: mnestor@ycst.com
mlunn@ycst.com
kenos@ycst.com
sreil@ycst.com
mmilana@ycst.com
About Alpha Entertainment
Alpha Entertainment LLC, which does business as the "Xtreme
Football League" -- https://www.alphaentllc.com/ -- is a
professional American football league. The XFL kicked off with
games beginning in February 2020. The XFL offered fast-paced,
three-hour games with fewer play stoppages and simpler rules. The
XFL featured eight teams, 46-man active rosters, and a 10-week
regular season schedule, with a postseason consisting of two
semifinal playoff games and a championship game. The eight XFL
teams were the DC Defenders, the Dallas Renegades, the Houston
Roughnecks, the Los Angeles Wildcats, the New York Guardians, the
St. Louis BattleHawks, the Seattle Dragons, and the Tampa Bay
Vipers.
Alpha Entertainment LLC, based in Stamford, CT, filed a Chapter 11
petition (Bankr. D. Del. Case No. 20-10940) on April 13, 2020. The
Hon. Laurie Selber Silverstein presides over the case. In its
petition, the Debtor was estimated to have $10 million to $50
million in both assets and liabilities. The petition was signed by
John Brecker, independent manager.
The Debtor hired Young Conaway Stargatt & Taylor, LLP, as counsel;
and Donlin Recano & Company, Inc., as claims agent and
administrative advisor.
ALTERNUS ENERGY: Says Substantial Doubt on Going Concern Exists
---------------------------------------------------------------
On October 13, 2020, Alternus Energy Inc. filed its quarterly
report on Form 10-Q, disclosing a net loss of $1,672,041 on
$697,703 of revenues for the three months ended March 31, 2020,
compared to a net loss of $1,384,279 on $370,131 of revenues for
the same period in 2019.
At March 31, 2020, the Company had total assets of $43,989,508,
total liabilities of $41,884,502, and $2,105,007 in total
stockholders' equity.
The Company said, "Our unaudited condensed consolidated financial
statements as of March 31, 2020 and 2019 identify the existence of
certain conditions that raise substantial doubt about our ability
to continue as a going concern for twelve months from the issuance
of this report.
"The Company had net loss of (US$1,672,109) and (US$1,384,279) for
the periods ended March 31, 2020 and 2019, respectively.
"The Company had accumulated shareholders' equity of US$2,107,392
and US$3,878,161 as of March 31, 2020 and December 31, 2019,
respectively, and a working capital deficit of US$25,266,292 and
US$23,772,002 as of March 31, 2020 and December 31, 2019,
respectively. At March 31, 2020, the Company had US$765,679 of
cash on hand.
"Our operating revenues are insufficient to fund our operations and
our assets already are pledged to secure our indebtedness to
various third party secured creditor, respectively. The
unavailability of additional financing could require us to delay,
scale back or terminate our acquisition efforts as well as our own
business activities, which would have a material adverse effect on
the Company and its viability and prospects.
"The terms of our indebtedness, including the covenants and the
dates on which principal and interest payments on our indebtedness
are due, increases the risk that we will be unable to continue as a
going concern. To continue as a going concern over the next twelve
months from the date these financial statements are issued, we must
make payments on our debt as they come due and comply with the
covenants in the agreements governing our indebtedness or, if we
fail to do so, to (i) negotiate and obtain waivers of or
forbearances with respect to any defaults that occur with respect
to our indebtedness, (ii) amend, replace, refinance or restructure
any or all of the agreements governing our indebtedness, and/or
(iii) otherwise raise additional capital. However, we cannot
provide any assurances that we will be successful in accomplishing
any of these plans.
"The recent outbreak of the corona virus, also known as "COVID-19",
has spread across the globe and is impacting worldwide economic
activity. Conditions surrounding the corona virus continue to
rapidly evolve and government authorities have implemented
emergency measures to mitigate the spread of the virus. The
outbreak and the related mitigation measures may have an adverse
impact on global economic conditions as well as on the Company's
business activities. The extent to which the corona virus may
impact the Company's business activities will depend on future
developments, such as the ultimate geographic spread of the
disease, the duration of the outbreak, travel restrictions,
business disruptions, and the effectiveness of actions taken in the
United States and other countries to contain and treat the disease.
These events are highly uncertain and as such, the Company cannot
determine their financial impact at this time."
A copy of the Form 10-Q is available at:
https://bit.ly/3oRTSdb
Based in New York, Alternus Energy Inc. develops renewable and
sustainable energy projects worldwide and engages in planning,
creating and managing photovoltaic plants all over the world.
AMERGENT HOSPITALITY: Has $9.5M Net Loss for Sept. 30 Quarter
-------------------------------------------------------------
Amergent Hospitality Group, Inc. filed its quarterly report on Form
10-Q, disclosing a net loss (attributable to the Company) of
$9,549,701 on $4,702,151 of total revenue for the three months
ended Sept. 30, 2020, compared to a net loss (attributable to the
Company) of $3,884,741 on $7,326,013 of total revenue for the same
period in 2019.
At Sept. 30, 2020, the Company had total assets of $30,737,837,
total liabilities of $33,899,783, and $3,621,554 in total
stockholders' deficit.
The Company said that its current operating losses, combined with
its working capital deficit and uncertainties regarding the impact
of COVID-19, raise substantial doubt about its ability to continue
as a going concern.
A copy of the Form 10-Q is available at:
https://bit.ly/3gHtIHd
Amergent Hospitality Group, Inc. (OTCMKTS: AMHG) owns, operates and
franchises fast casual and full service restaurant brands.
AMERICAN INTERNATIONAL: Posts $1.5M Net Loss for Sept. 30 Quarter
-----------------------------------------------------------------
American International Holdings Corp. filed its quarterly report on
Form 10-Q, disclosing a net loss of $1,471,388 on $680,369 of
revenues for the three months ended Sept. 30, 2020, compared to a
net loss of $2,071,174 on $52,085 of revenues for the same period
in 2019.
At Sept. 30, 2020, the Company had total assets of $2,437,709,
total liabilities of $2,547,916, and $110,207 in total
stockholders' deficit.
American International Holdings said, "The Company has a net loss
of US$1,471,388 and US$3,544,719 for the three and nine months
ended September 30, 2020, and an accumulated deficit of
US$6,764,487 as of September 30, 2020. The ability to continue as
a going concern is dependent upon the Company generating profitable
operations in the future and/or to obtain the necessary financing
to meet its obligations and repay its liabilities arising from
normal business operations when they come due. These financials do
not include any adjustments relating to the recoverability and
reclassification of recorded asset amounts, or amounts and
classifications of liabilities that might result from this
uncertainty. There can be no assurance that the Company will
become commercially viable without additional financing, the
availability and terms of which are uncertain. If the Company
cannot secure necessary capital when needed on commercially
reasonable terms, its business, condition (financial and otherwise)
and commercial viability may be harmed. Although management
believes that it will be able to successfully execute its business
plan, which includes third party financing and the raising of
capital to meet the Company's future liquidity needs, there can be
no assurances in this regard. These matters raise substantial
doubt about the Company's ability to continue as a going concern."
A copy of the Form 10-Q is available at:
https://bit.ly/3meSeAk
American International Holdings Corp., a holding company, operates
in the health, wellness, medical spa, fashion, and auxiliary
industries in the United States and internationally. The company
operates medical spa and wellness clinic that offers wellness
services, including anti-aging, weight loss, and skin rejuvenation
treatments. It also provides various general contracting services,
such as remodeling, general construction, and interior finish
services. In addition, the company retails vitamin and nutritional
supplements, protein powders, pre-workout powders, and post-workout
supplement, as well as offers nutritional and weight loss plans.
American International Holdings Corp. is headquartered in Addison,
Texas.
AMMO INC: Posts $2.3-Mil. Net Loss for Quarter Ended Sept. 30
-------------------------------------------------------------
Ammo, Inc., filed its quarterly report on Form 10-Q, disclosing a
net loss of $2,338,625 on $12,012,872 of net sales for the three
months ended Sept. 30, 2020, compared to a net loss of $3,444,260
on $2,954,555 of net sales for the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $47,351,219,
total liabilities of $29,857,133, and $17,494,086 in total
stockholders' equity.
Ammo, Inc. said, "The Company anticipates that it will record
losses from operations for the foreseeable future. As of September
30, 2020, the Company's accumulated deficit was US$39,449,659. The
Company has limited capital resources, and operations to date have
been funded with the proceeds from equity and debt financings.
These conditions raise substantial doubt about our ability to
continue as a going concern for the period ended a year from the
date the financial statements are issued."
A copy of the Form 10-Q is available at:
https://bit.ly/3oPxUHJ
Ammo, Inc., designs, develops, manufactures, markets, and sells
ammunition products primarily for the sporting industry in the
United States and internationally. It was founded in 1990 and is
headquartered in Scottsdale, Arizona.
APEX GLOBAL: Reports $1.3M Net Loss for Quarter Ended Aug. 1
------------------------------------------------------------
Apex Global Brands Inc. filed its quarterly report on Form 10-Q,
disclosing a net loss of $1,333,000 on $4,379,000 of revenues for
the three months ended Aug. 1, 2020, compared to a net loss of
$1,267,000 on $5,603,000 of revenues for the same period ended Aug.
3, 2019.
At Aug. 1, 2020, the Company had total assets of $80,538,000, total
liabilities of $78,014,000, and $2,524,000 in total stockholders'
equity.
Apex Global said, "Future compliance failures under the senior
secured credit facility would subject the Company to significant
risks, including the right of its senior lender to terminate its
obligations under the senior secured credit facility, declare all
or any portion of the borrowed amounts then outstanding to be
accelerated and due and payable, and/or exercise any other right or
remedies it may have under applicable law, including foreclosing on
the Company's and/or its subsidiaries' assets that serve as
collateral for the borrowed amounts. If any of these rights were
to be exercised, or if the Company is unable to refinance its
senior secured credit facility by the accelerated maturity of March
31, 2021, which could be further accelerated to December 31, 2020
if certain milestones are not met, the Company's financial
condition and ability to continue operations would be materially
jeopardized. If the Company is unable to meet obligations to
lenders and other creditors, the Company may have to significantly
curtail or even cease operations. The Company is evaluating
potential sources of working capital and believes that the NOL
carryback provisions of the Coronavirus Aid, Relief, and Economic
Security ("CARES") Act passed by the U.S. Congress in March 2020
will result in additional liquidity, although the timing of these
future cash receipts is uncertain. NOL carryback claims are
expected to result in federal income tax refunds of approximately
US$9.0 million. Management's plans also include the evaluation of
strategic alternatives to enhance shareholder value. There is no
assurance that the Company will be able to execute these plans.
Because of this uncertainty, there is substantial doubt about the
Company's ability to continue as a going concern."
A copy of the Form 10-Q is available at:
https://bit.ly/2Kh0i6D
Apex Global Brands Inc., a brand ownership and marketing company,
creates and manages lifestyle brands worldwide. The Company was
formerly known as Cherokee Inc. and changed its name to Apex Global
Brands Inc. in June 2019. Apex Global Brands Inc. was founded in
1988 and is headquartered in Sherman Oaks, California.
ART CENTER: Gets OK to Hire C.R. Hyde as Legal Counsel
------------------------------------------------------
Art Center, Inc. received approval from the U.S. Bankruptcy Court
for the District of Arizona to hire the Law Offices of C.R. Hyde,
PLC as its legal counsel.
The firm's services will include:
a) advising the Debtor of its powers and duties in the
continued operation of its affairs;
b) assisting the Debtor to protect its assets and arrange for
a continuation of its affairs, and preparing legal documents;
c) court appearances; and
d) negotiating with the Debtor's creditors and taking the
necessary legal steps to confirm and consummate a plan of
reorganization.
C.R. Hyde, Esq., will charge $350 per hour for attorney's services
and $125 per hour for paralegal services. The retainer fee is
$15,000.
The firm can be reached at:
Charles Richard Hyde, Esq.
The Law Offices of C.R. Hyde, PLC
2810 N Swan Rd. #150
Tucson, AZ 85712
Tel: 520-270-1110
About Art Center Inc.
Art Center, Inc. is a private, not-for-profit art college in
Tucson, Ariz., with a branch campus in Albuquerque, N.M. Visit
https://suva.edu for more information.
Art Center filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 20-12891) on Nov.
30, 2020. At the time of filing, the Debtor estimated $100,000 to
$500,000 in both assets and liabilities.
Charles Richard Hyde, Esq. at The Law Offices of C.R. Hyde, PLC
represents the Debtor as counsel.
ASCENA RETAIL: Projects Significant Decline in Q1 Revenue
---------------------------------------------------------
Ascena Retail Group, Inc., said in a regulatory filing that it
currently estimates that revenue for its 2021 fiscal first quarter
ended October 31, 2020 will be in the range of $565 million to $585
million, down from $1.061 billion in the fiscal first quarter of
the prior year. As a result of the sales decline, the Company
expects to report a significant decline in its operating income for
the 2021 fiscal first quarter.
As previously disclosed, on July 23, 2020, the Company and certain
of the Company's direct and indirect subsidiaries commenced
voluntary cases under chapter 11 of title 11 of the United States
Code in the United States Bankruptcy Court for the Eastern District
of Virginia. In connection with the Chapter 11 Cases, the Company
obtained new debtor-in-possession ("DIP") financing, which is
discussed in more detail in Note 2 to the Company\'s Annual Report
on Form 10-K for the fiscal year ended August 1, 2020 (the "2020
Form 10-K"). The Company ended the fiscal first quarter with
outstanding pre-petition term loan debt of approximately $1,109
million and outstanding borrowings under its new DIP term loan
credit facility of approximately $312 million. Additionally, the
Company currently estimates that it will report cash and cash
equivalents as of October 31, 2020 in the range of $375-$385
million. The Chapter 11 Cases could have a material effect on the
Company\'s cash and debt balances.
The revenue data for the three months ended October 31, 2020 and
the cash and debt balances as of October 31, 2020 are preliminary
and have been prepared on the basis of currently available
information. The estimated 2021 fiscal first quarter information
presented above is subject to the completion of the Company's
standard procedures for the preparation and completion of its
quarterly financial statements. Given that these reviews are
ongoing, the Company may make further adjustments and there can be
no assurance that final results as of and for the three months
ended October 31, 2020 will not differ materially from the
estimates provided herein. In addition, the Company's independent
registered public accounting firm has not audited or reviewed, and
does not express an opinion or any other form of assurance with
respect to, this data.
About Ascena Retail Group Inc.
Ascena Retail Group, Inc. (Nasdaq: ASNA) is a national specialty
retailer offering apparel, shoes, and accessories for women under
the Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus
Fashion (Lane Bryant, Catherines and Cacique), and Value Fashion
(Dressbarn) segments, and for tween girls under the Kids Fashion
segment (Justice). Ascena, through its retail brands, operates
ecommerce websites and approximately 2,800 stores throughout the
United States, Canada, and Puerto Rico. Visit
http://www.ascenaretail.com/for more information.
Ascena Retail reported a net loss of $661.4 million for the fiscal
year ended Aug. 3, 2019, a net loss of $39.7 million for the year
ended Aug. 4, 2018, and a net loss of $1.06 billion for the year
ended July 29, 2017.
On July 23, 2020, Ascena Retail Group and its affiliates sought
Chapter 11 protection (Bankr. E.D. Va. Case No. 20-33113). As of
Feb. 1, 2020, Ascena Retail had $13,690,710,379 in assets and
$12,516,261,149 in total liabilities.
The Hon. Kevin R. Huennekens is the case judge.
The Debtors tapped Kirkland & Ellis LLP and Cooley LLP as
bankruptcy counsel, Guggenheim Securities, LLC, as financial
Advisor, and Alvarez and Marsal North America, LLC as
restructuring
advisor. Prime Clerk, LLC is the claims agent.
* * *
In September 2020, FullBeauty Brands Operations, LLC, won an
auction to acquire Ascena's Catherines intellectual property assets
for a base purchase price of $40.8 million and potential upward
adjustment for certain inventory.
In November 2020, Ascena won approval to to sell the intellectual
property of its Justice Brand and other Justice brand assets to
Justice Brand Holdings LLC, an entity formed by Bluestar Alliance
LLC (a leading brand management company), for $90 million.
The Company continues to operate its Ann Taylor, LOFT, Lane Bryant,
and Lou & Grey brands as normal through a reduced number of retail
stores and online.
AYTU BIOSCIENCE: Increases Bought Deal Offering to $25 Million
--------------------------------------------------------------
Aytu BioScience, Inc., reports that, due to demand, the underwriter
has agreed to increase the size of the previously announced public
offering and purchase on a firm commitment basis 4,166,667 shares
of common stock of the Company, at a price to the public of $6.00
per share, less underwriting discounts and commissions. The
closing of the offering is expected to occur on or about Dec. 15,
2020, subject to satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the sole book-running manager
for the offering.
The Company also has granted to the underwriter a 30-day option to
purchase up to an additional 625,000 shares of common stock at the
public offering price, less underwriting discounts and commissions.
The gross proceeds to Aytu, before deducting underwriting discounts
and commissions and offering expenses and assuming no exercise of
the underwriter's option to purchase additional common stock, are
expected to be approximately $25.0 million. The Company intends to
use the net proceeds from this offering for working capital and
other general corporate purposes.
The shares of common stock are being offered by the Company
pursuant to a "shelf" registration statement on Form S-3 (File No.
333-239010) previously filed with the Securities and Exchange
Commission on June 8, 2020, and declared effective by the SEC on
June 17, 2020. The offering of the shares of common stock is made
only by means of a prospectus, including a prospectus supplement,
forming a part of the effective registration statement. A
preliminary prospectus supplement and accompanying prospectus
relating to, and describing the terms of, the offering has been
filed with the SEC and is available on the SEC's website at
http://www.sec.gov. A final prospectus supplement and the
accompanying prospectus relating to the shares of common stock
being offered will be filed with the SEC. Electronic copies of the
final prospectus supplement and accompanying prospectus may be
obtained, when available, on the SEC's website at
http://www.sec.govor by contacting H.C. Wainwright & Co., LLC at
430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at
(646) 975-6996 or e-mail at placements@hcwco.com.
About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) --
http://www.aytubio.com-- is a commercial-stage specialty
pharmaceutical company focused on commercializing novel products
that address significant patient needs. The company currently
markets a portfolio of prescription products addressing large
primary care and pediatric markets. The primary care portfolio
includes (i) Natesto, an FDA-approved nasal formulation of
testosterone for men with hypogonadism, (ii) ZolpiMist, an
FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra
XR, an FDA-approved 12-hour codeine-based antitussive syrup.
Aytu Bioscience reported a net loss of $13.62 million for the year
ended June 30, 2020, compared to a net loss of $27.13 million for
the year ended June 30, 2019. As of Sept. 30, 2020, the Company
had $141.27 million in total assets, $50.21 million in total
liabilities, and $91.06 million in total stockholders' equity.
AYTU BIOSCIENCE: Launches $10 Million Bought Deal Offering
----------------------------------------------------------
Aytu BioScience, Inc., has entered into an underwriting agreement
with H.C. Wainwright & Co., LLC under which the underwriter has
agreed to purchase on a firm commitment basis 1,666,667 shares of
common stock of the Company, at a price to the public of $6.00 per
share, less underwriting discounts and commissions. The closing of
the offering is expected to occur on or about Dec. 15, 2020,
subject to satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the sole book-running manager
for the offering.
The Company also has granted to the underwriter a 30-day option to
purchase up to an additional 250,000 shares of common stock at the
public offering price, less underwriting discounts and commissions.
The gross proceeds to Aytu, before deducting underwriting discounts
and commissions and offering expenses and assuming no exercise of
the underwriter's option to purchase additional common stock, are
expected to be approximately $10.0 million. The Company intends to
use the net proceeds from this offering for working capital and
other general corporate purposes.
The shares of common stock are being offered by the Company
pursuant to a "shelf" registration statement on Form S-3 (File No.
333-239010) previously filed with the Securities and Exchange
Commission on June 8, 2020, and declared effective by the SEC on
June 17, 2020. The offering of the shares of common stock is made
only by means of a prospectus, including a prospectus supplement,
forming a part of the effective registration statement. A
preliminary prospectus supplement and accompanying prospectus
relating to, and describing the terms of, the offering will be
filed with the SEC and will be available on the SEC's website at
http://www.sec.gov. Electronic copies of the preliminary
prospectus supplement and accompanying prospectus may also be
obtained, when available, by contacting H.C. Wainwright & Co., LLC
at 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at
(646) 975-6996 or e-mail at placements@hcwco.com.
About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) --
http://www.aytubio.com/-- is a commercial-stage specialty
pharmaceutical company focused on commercializing novel products
that address significant patient needs. The company currently
markets a portfolio of prescription products addressing large
primary care and pediatric markets. The primary care portfolio
includes (i) Natesto, an FDA-approved nasal formulation of
testosterone for men with hypogonadism, (ii) ZolpiMist, an
FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra
XR, an FDA-approved 12-hour codeine-based antitussive syrup.
Aytu Bioscience reported a net loss of $13.62 million for the year
ended June 30, 2020, compared to a net loss of $27.13 million for
the year ended June 30, 2019. As of Sept. 30, 2020, the Company
had $141.27 million in total assets, $50.21 million in total
liabilities, and $91.06 million in total stockholders' equity.
BLACKJEWEL LLC: Dec. 17 Hearing on Plan & Disclosures
-----------------------------------------------------
The hearing at which the Court will consider confirmation of the
Plan and final approval of the Disclosure Statement of Blackjewel,
L.L.C., et al. will commence on December 17, 2020 at 9:30 a.m.
(Eastern Time) before the Honorable Benjamin A. Kahn at the
Bankruptcy Court, Robert C. Byrd U.S. Courthouse, 300 Virginia St,
Room 3200, Charleston, WV 25301.
The deadline for filing objections to the Plan (including any
assumption of an Executory Contract or Unexpired Lease as
contemplated in the Plan Supplement) or final approval of the
Disclosure Statement is December 10, 2020, at 4:00 p.m. (Eastern
Time).
Co-Counsel to the Debtors:
Joe M. Supple
SUPPLE LAW OFFICE, PLLC
801 Viand St.
Point Pleasant, WV 25550
Telephone: 304.675.6249
Facsimile: 304.675.4372
E-mail: joe.supple@supplelawoffice.com
– and –
Stephen D. Lerner
Nava Hazan
Travis A. McRoberts
SQUIRE PATTON BOGGS (US) LLP
201 E. Fourth St., Suite 1900
Cincinnati, Ohio 45202
Telephone: 513.361.1200
Facsimile: 513.361.1201
E-mail: stephen.lerner@squirepb.com
nava.hazan@squirepb.com
travis.mcroberts@squirepb.com
About Blackjewel L.L.C.
Blackjewel L.L.C.'s core business is mining and processing
metallurgical, thermal and other specialty and industrial coals.
Blackjewel operates 32 properties, including surface and
underground coal mines, preparation or wash plants, and loadouts or
tipples. Combined, Blackjewel and its affiliates hold more than 500
mining permits. Operations are located in the Central Appalachian
Basin in Virginia, Kentucky and West Virginia and the Powder River
Basin in Wyoming.
Blackjewel L.L.C. and four affiliates filed voluntary petitions
seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
W.Va. Lead Case No. 19-30289) on July 1, 2019. Blackjewel was
estimated to have $100 million to $500 million in asset and $500
million to $1 billion in liabilities as of the bankruptcy filing.
The Hon. Frank W. Volk is the case judge.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Supple Law Office, PLLC as local bankruptcy counsel; FTI
Consulting Inc. as financial advisor; Jefferies LLC as investment
banker; and Prime Clerk LLC as the claims agent.
The Office of the U.S. Trustee on July 3, 2019, appointed five
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case of Blackjewel LLC. Whiteford Taylor &
Preston LLP is the Committee's counsel.
BLACKJEWEL LLC: First Surety Says Plan Patently Unconfirmable
-------------------------------------------------------------
First Surety Corporation objects to the First Amended Disclosure
Statement and First Amended Joint Chapter 11 Plan of Liquidation
for Blackjewel L.L.C. and Its Affiliated Debtors.
First Surety claims that confirmation should be denied at the
disclosure statement hearing stage because a confirmation hearing
would be futile when a chapter 11 plan is patently unconfirmable.
None of the Plan's defects can be cured by voting or consent.
Accordingly, the Plan is patently unconfirmable.
First Surety does not consent to the favored treatment of Fee
Claims under the Plan. Moreover, there are no justifications for
the favored treatment of Fee Claims.
First Surety points out that the Debtors have no interest in any
surety bonds issued on their behalf. Because the Reclamation Trust
is predicated upon the transfer of the penal sums of these surety
bonds, and the Plan itself is predicated upon the Reclamation Trust
to administer the Remaining Permits, the Plan is not feasible and
cannot be confirmed.
First Surety asserts that the proposed exculpation provisions are
unreasonable, too broad, and not in the best interests of the
Debtors' estates. Not only does their inclusion preclude
confirmation but it further emphasizes the identity of the true
beneficiaries of the Plan, the Debtors' professionals.
First Surety further asserts that the Debtors proposed a plan of
liquidation designed to benefit one constituency, the Debtors'
professionals. This is never a proper goal for a chapter 11 plan,
much less a liquidating plan in a case that likely is
administratively insolvent.
A full-text copy of First Surety's objection to the Amended Plan
and Disclosure Statement dated December 10, 2020, is available at
https://bit.ly/37f54ue from PacerMonitor.com at no charge.
Attorneys for First Surety:
CALDWELL & RIFFEE, PLLC
Joseph W. Caldwell
3818 MacCorkle Avenue, S.E.
P.O. Box 4427
Charleston, WV 25364-4347
Telephone: (304) 925-2100
E-mail: joecaldwell@frontier.com
- and -
MANIER & HEROD, P.C.
Scott C. Williams
Robert W. Miller
1201 Demonbreun Street, Suite 900
Nashville, TN 37203
Telephone: (615) 244-0030
Facsimile: (615) 242-4203
E-mail: swilliams@manierherod.com
About Blackjewel LLC
Blackjewel L.L.C.'s core business is mining and processing
metallurgical, thermal and other specialty and industrial coals.
Blackjewel operates 32 properties, including surface and
underground coal mines, preparation or wash plants, and loadouts or
tipples. Combined, Blackjewel and its affiliates hold more than 500
mining permits. Operations are located in the Central Appalachian
Basin in Virginia, Kentucky and West Virginia and the Powder River
Basin in Wyoming.
Blackjewel L.L.C. and four affiliates filed voluntary petitions
seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
W.Va. Lead Case No. 19-30289) on July 1, 2019. Blackjewel was
estimated to have $100 million to $500 million in asset and $500
million to $1 billion in liabilities as of the bankruptcy filing.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Supple Law Office, PLLC as local bankruptcy counsel; FTI
Consulting Inc. as financial advisor; Jefferies LLC as investment
banker; and Prime Clerk LLC as the claims agent.
The Office of the U.S. Trustee on July 3, 2019, appointed five
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case of Blackjewel LLC. Whiteford Taylor &
Preston LLP is the Committee's counsel.
On September 25, 2020, the Debtors filed their Joint Plan of
Reorganization and the Disclosure Statement related thereto. The
hearing to consider confirmation of the plan and approval of the
disclosure statement will be held on December 17, 2020 at 9:30
a.m., prevailing Eastern Time.
BLACKJEWEL LLC: United Bank Objects to Amended Plan & Disclosure
----------------------------------------------------------------
United Bank joins in the Preliminary Objection of Active Medical,
LLC, Appalachian Medical, LLC, Black Diamond Insurance Group, LLC,
Blackjewel Trust, Clearwater Investment Holdings, LLC, Clearwater
Trust, Forrest Machine, LLC, Genesis Trucking, LLC, Grand Patrician
Resort, LLC, Jeffery A. Hoops, Patricia A. Hoops, Jeffery A. Hoops,
II, Jeremy A. Hoops, Joshua A. Hoops, Jessica Hoops, Lesley Hoops,
Amanda Hoops, Hoops Dynasty Trust, Legends Construction Company,
LLC, Lexington Coal Royalty Company, LLC, Republic Superior
Products, LLC, Revelation Energy Trust, Triple H Aviation, LLC,
Triple H Real Estate, LLC, Walls & Associates, PLLC and Brent T.
Walls to the First Amended Disclosure Statement and First Amended
Joint Chapter 11 Plan of Liquidation for Blackjewel L.L.C. and Its
Affiliated Debtors.
In addition to the facts and arguments set forth in the Objection,
United Bank further objects to the Disclosure Statement and Plan
for the following reasons:
* The Debtors' pending causes of action against the Hoops
Parties, Lexington Coal Company, and United Bank are wildly
speculative. The Debtors' Amended Complaint in the adversary
proceeding against United Bank chiefly alleges that United Bank
tortiously interfered with a Debtor-in-Possession Loan by
exercising control over collateral held by Clearwater Investment
Holdings, LLC.
* If the Plan is based primarily on the success or failure of
the Debtors' attempt to impose liability on United Bank through its
pending adversary proceeding and the Debtors at this stage have no
basis for such suit, the Disclosure Statement should state that
fact.
* The Disclosure Statement and Plan categorize the claims of
United Bank and certain taxing authorities in the same class.
However, the Plan denies United Bank any distributions until its
claim is allowed by a final order of the court.
A full-text copy of the United Bank's objection to the Amended Plan
and Disclosure Statement dated December 10, 2020, is available at
https://bit.ly/2WbDasI from PacerMonitor.com at no charge.
Counsel for the United Bank:
STEPTOE & JOHNSON PLLC
Joseph G. Bunn
Peter J. Raupp
C. Haley Bunn
James E. McDaniel
Chase Tower, 17th Floor
Post Office Box 1588
Charleston, West Virginia 25326-1588
Telephone: (304) 353-8000
Facsimile: (304) 353-8180
E-mail: Joe.Bunn@Steptoe-Johnson.com
Peter.Raupp@Steptoe-Johnson.com
Haley.Bunn@Steptoe-Johnson.com
Jim.McDaniel@Steptoe-Johnson.com
About Blackjewel LLC
Blackjewel L.L.C.'s core business is mining and processing
metallurgical, thermal and other specialty and industrial coals.
Blackjewel operates 32 properties, including surface and
underground coal mines, preparation or wash plants, and loadouts or
tipples. Combined, Blackjewel and its affiliates hold more than 500
mining permits. Operations are located in the Central Appalachian
Basin in Virginia, Kentucky and West Virginia and the Powder River
Basin in Wyoming.
Blackjewel L.L.C. and four affiliates filed voluntary petitions
seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
W.Va. Lead Case No. 19-30289) on July 1, 2019. Blackjewel was
estimated to have $100 million to $500 million in asset and $500
million to $1 billion in liabilities as of the bankruptcy filing.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Supple Law Office, PLLC as local bankruptcy counsel; FTI
Consulting Inc. as financial advisor; Jefferies LLC as investment
banker; and Prime Clerk LLC as the claims agent.
The Office of the U.S. Trustee on July 3, 2019, appointed five
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case of Blackjewel LLC. Whiteford Taylor &
Preston LLP is the Committee's counsel.
On September 25, 2020, the Debtors filed their Joint Plan of
Reorganization and the Disclosure Statement related thereto. The
hearing to consider confirmation of the plan and approval of the
disclosure statement will be held on December 17, 2020 at 9:30
a.m., prevailing Eastern Time.
BRIAN FAMILY: Seeks to Hire Dohmeyer Valuation as Appraiser
-----------------------------------------------------------
Brian Family, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Texas to hire Dohmeyer Valuation
Corporation to provide appraisal and valuation services.
The Debtor will compensate Dohmeyer in accordance with this fee
structure:
a. Debtor will pay the total sum of $1,000 to Dohmeyer for
services rendered in connection with the review, appraisal and
valuation of the Debtor's business and its component parts; and
b. Should the need arise for Dohmeyer to provide testimony in
connection with the Chapter 11 proceedings, the firm will be
compensated at Robert Dohmeyer's typical hourly rate of $325.
Dohmeyer does not hold or represent any material interest adverse
to the Debtor or its estate and 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:
Robert M. Dohmeyer, ASA
Dohmeyer Valuation Corporation
2374 Aspermount Drive
Frisco, TX 75034
Telephone: (214) 499-5954
Email: bdohmeyer@gmail.com
About Brian Family
Brian Family, LLC, a Frisco, Texas-based owner and operator of a
restaurant chain specializing in Mexican cuisine, filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
E.D. Tex. Case No. 20-42064) on October 1, 2020. The petition was
signed by David Anthony Brian, president and managing member.
At the time of the filing, the Debtor disclosed total assets of
$150,020 and total liabilities of $1,104,868.
Judge Brenda T. Rhoades oversees the case.
DeMarco Mitchell, PLLC serves as the Debtor's general counsel.
Mr. Scott Seidel has been appointed as the SubChapter V trustee for
the case.
CENTURY 21: Asks Dec. 28 Hearing on Insurance Action Interest Sale
------------------------------------------------------------------
Century 21 Department Stores, LLC, and its affiliates, ask the U.S.
Bankruptcy Court for the Southern District of New York to shorten
the notice period with respect to the private sale of interest in
the proceeds that now exist or may arise on account of the
Insurance Action in the Supreme Court of the State of New York to
the Participant.
The Debtors were reasonably positioned to weather the effects of
the global COVID-19 pandemic as a result of their careful insurance
planning. The Policyholders are named insureds under various
insurance policies that in the aggregate provide for up to $350
million of insurance coverage, including for property damage,
business interruption and other situations in which access to the
vicinity of the Debtors' stores is restricted. In exchange for the
protection afforded by the Insurance Policies, the Policyholders
paid in excess of $1.4 million annually in premiums to their
property and business interruption insurance carriers. However,
with one exception, the Insurers refused to honor their obligations
under the Insurance Policies to reimburse the Policyholders for
their losses as a result of the COVID-19 pandemic and ensuing
government-ordered store closures.
The Insurers' refusal to honor their obligations under the
Insurance Policies forced the Policyholders to commence the
Insurance Action and ultimately caused the Debtors to commence the
Chapter 11 Cases. Despite exploring strategic alternatives, the
Debtors' lack of liquidity and mounting expenses forced the Debtors
to liquidate their assets for the benefit of their creditors.
Accordingly, since the Petition Date, the Debtors have been engaged
in the orderly liquidation of their assets to maximize value.
As part of those liquidation efforts, the Debtors have sought to
monetize their largest asset, their claim against the Insurers
under the Insurance Policies, which the Debtors (and other
non-debtor Plaintiffs) are prosecuting in an adversary proceeding
pending before the Court. Litigation is inherently fraught with
risk. Therefore, the Debtors continue to believe that a sale of
the Insurance Action Interest now, which is supported by the
Committee and required by the Prepetition Agent under the terms of
the Cash Collateral Order, is in the best interests of their
estates in that it (a) maximizes the value of a contingent asset,
(b) provides mean to satisfy the ABL Facility and other secured
debts in full, (c) provides means to satisfy chapter 11
administrative expenses and priority claims in full and (d)
provides an immediate and meaningful distribution to the Debtors'
general unsecured creditors.
The Debtors previously received and accepted an offer for the
Insurance Action Interest and filed a motion to approve the sale of
such interest. Since filing the Initial Sale Motion, however, the
Debtors have received a superior offer from certain of their equity
holders and affiliates ("Gindi Parties"), the proposed terms of
which were negotiated directly, with assistance from the Debtors,
between the official committee of unsecured creditors and the Gindi
Parties.
The transactions proposed in the Sale Motion will provide to the
Debtors' estates, among other things, (a) at least $59 million in
cash, representing a substantial premium over the price offered for
the Insurance Action under the transaction contemplated in the
Initial Sale Motion, on substantially similar terms and for the
same asset, (b) a release of all claims that the Gindi Parties hold
against the Debtors and their estates, (c) indemnification for the
Debtors' estates provided by the Gindi Parties and (d) a lower
recovery threshold at which the Debtors will share in the proceeds
of the Insurance Action, in exchange for the settlement of claims
against the Gindi Parties. The combined sale and settlement of
which the Debtors respectfully request approval by the Sale Motion
deliver greater value, greater certainty, and greater consensus
than any alternative with which the Debtors have been presented.
The Debtors' for their part, solely through their independent
director, determined that in accordance with their fiduciary
duties, they should terminate the Participation Agreement dated as
of Nov. 23, 2020, of which the Debtors had previously sought
approval in the Initial Sale Motion, and instead enter into the
Sale Documents.
The Debtors ask the Court to set the date and time for the hearing
on the Sale Motion for Dec. 28, 2020 at 10:30 a.m. (ET), so that an
order approving the Sale Motion may (should the Court approve it)
be entered by Dec. 31, 2020 -- the date required under the sale
agreements, subject to the Court's availability. The Debtors also
ask that any objections to the Sale Motion be filed by Dec. 23,
2020 at 4:00 p.m. (ET) and that the Debtors be permitted to reply
to any objections, to the extent any objections are filed and a
rely is necessary, by Dec. 27, 2020 at 12:00 p.m. (ET).
A copy of the Agreeement is available at
https://tinyurl.com/yysnazw8 from PacerMonitor.com free of charge.
About Century 21
Century 21 Department Stores LLC and its affiliates are pioneers in
off-price retail offering access to designer brands at amazing
prices. They opened their iconic flagship location in downtown
Manhattan in 1961. As of the petition date, the Debtors have 13
stores across New York, New Jersey, Pennsylvania and Florida and an
online retail presence, operate seasonal pop-ups, and employ other
innovative retail concepts. Visit http://www.c21stores.com/for
more information.
Century 21 Department Stores LLC and its affiliates sought Chapter
11 protection (Bankr. S.D.N.Y. Lead Case No. 20-12097 on Sept. 10,
2020). Century 21 was estimated to have $100 million to $500
million in assets and liabilities as of the bankruptcy filing.
The Hon. Shelley C. Chapman is the case judge.
The Debtors have tapped Proskauer Rose LLP as their legal counsel,
Berkeley Research Group LLC as financial advisor, and Hilco
Merchant Resources LLC as liquidation consultant. Stretto is
the Debtors' claims agent.
On Sept. 16, 2020, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors. The committee is
represented by Lowenstein Sandler, LLP.
CFO MGMT: Trustee Selling Double Droptine Ranch for $3.2 Million
----------------------------------------------------------------
David Wallace, the Chapter 11 trustee for CFO Management Holdings,
LLC, asks the U.S. Bankruptcy Court for the Eastern District of
Texas to authorize him to sell the wild game ranch called the
Double Droptine Ranch located in Love County, Oklahoma, to Surplus
Tines LLC for $3.2 million, subject to higher and better offers.
Prior to the Petition Date, the Subsidiary Debtors had for some
time been in the business of developing and selling residential and
commercial real estate in the Collin and Denton Counties in North
Texas, as well as owning and managing the Ranch. Since his
appointment, the Trustee has been diligently assessing the extent
and value of the Debtor's property, maintaining and managing such
property, and marketing such properties for sale. At this point in
the Bankruptcy Case, the Trustee as sold (or is approaching closing
on a sale of) all of the real estate properties in the estate other
than the Ranch.
Before substantive consolidation of the assets and liabilities of
the Debtor and Subsidiary Debtors, the Ranch was under the name of
Double Droptine Ranch, LLC. The Ranch is a high-fenced ranch of
both native and exotic wildlife. It includes a 3200 square foot
ranch house, a separate ranch house for a caretaker or guests, a
horse barn, and game cleaning area.
The Trustee retained Tyler Thomas, currently of Briggs Freeman
Sotheby's, to market the Ranch for sale. The Broker has taken
numerous steps to ensure the thorough marketing of such properties.
With these marketing efforts, the Trustee believes that a sale of
the Ranch to the below-referenced buyer or another buyer under
substantially the same or more favorable terms would be at market
value and beneficial to the Debtor's estate.
The Trustee invited the two parties with the highest offers to
participate in a bidding process to identify the highest bidder
between those two potential buyers. The result of that marketing
and bidding process is the contract for the sale of the Ranch
entered into by Surplus Tines.
The terms of the Contract, subject to the approval of the Court,
include the following summarized terms, all as more thoroughly
described in the Contract: (i) Sale price of $3.2 million; (i) no
inspection period; (iii) $100,000 in non-refundable earnest money;
and (iv) closing deadline of Feb. 12, 2021 (unless extended by the
Trustee). The sale will be free and clear of all Interests other
than the Permitted Encumbrances.
At the time of the filing of this Motion, the Trustee intends to
proceed with a sale of Ranch to Surplus Tines under the terms of
the Contract, as an offeror who has provided the highest and best
offer to date at terms that the Trustee believes to be acceptable
and beneficial to the Debtor's estate. However, the Contract
contemplates the possibility of the Trustee entertaining additional
offers prior to or at the hearing on the Motion. The Trustee will
ultimately ask approval for whatever sale arrangement he believes,
in his judgment, is the most favorable to the Debtor's estate and
creditors.
Should the Trustee identify one or more Potential Buyers prior to
the Hearing who are willing to purchase Ranch under more favorable
terms for the Debtor's estate than those provided above and in the
Contract, the Trustee will provide that information to the Court at
the Hearing and request that the sale proceed with that Potential
Buyer(s) under such more favorable terms.
The Trustee estimates that the costs of sale of Ranch, including
commissions, fees, title policy, costs of document preparation and
recordation, and other closing costs would total approximately 8%
of the purchase price or roughly $256,000. In a sale to Surplus
Tines, the Broker would be paid a commission of 6% of the sales
price.
Legend Bank has filed a proof of claim in the case based on a 2016
loan agreement and accompanying note and mortgage on the Ranch. In
its proof of claim, Legend Bank claims to be owed $1,412,497 as of
the Petition Date, including certain interest and late charges
(Claim No. 72 in the Official Claims Registry). The Trustee is in
the process of reviewing the validity of Legend Bank's claim as
asserted. The Trustee believes that there is reason to challenge
the extent and status of Legend Bank's claim as a fraudulent
transfer or otherwise and intends to, between now and the date of
the hearing on this Motion, work with Legend Bank to address these
disputes.
In addition to the Legend Bank claim and lien-related issues
referenced, certain creditors ("Class-Action Plaintiffs") of the
Debtor have asserted a priority secured interest in Ranch, claiming
that other secured claims are subordinated to such creditors'
interests under various grounds, including the doctrine of
constructive trust. These claims were asserted in a complaint
filed against the Debtor and CPIF Lending, among others, on Dec. 6,
2019 (Adv. Case No. 19-04096). While the Trustee and the
Class-Action Plaintiffs are currently documenting a proposed
settlement, that settlement has not yet been finalized or approved
by the Court.
Due to the uncertainties about the status and extent of the claims
asserted by Legend Bank and to the extent that such disputes are
not resolved prior to the hearing on the Motion, the Trustee
proposes to hold $1.7 million (the amount proposed in the Plan as
the amount of the Legend Bank reserve) in escrow pending resolution
of any lien-related disputes and determination of claim priority by
order of the Court and entry of a Court order directing release of
such escrowed funds. Accordingly, the Trustee will escrow all
sales proceeds, with any valid liens transferring to such escrowed
proceeds. The Trustee's proposal for escrow of the proceedings
pending further lien analysis and determination, with any valid
liens passing to the proceeds, will protect the interests of Legend
Bank to the extent that it has a valid secured interest in the
Ranch.
As to other encumbrances on the property, the Trustee believes that
those encumbrances will either be addressed or preserved at
closing. To the best of the Trustee's knowledge, as of the filing
of the Motion there are no outstanding ad valorem tax obligations
for years prior to 2019. Any outstanding 2019 and 2020 ad valorem
taxes are to be paid at closing, and, should closing take place in
2021, any liens securing year 2021 ad valorem property taxes will
remain attached to the real estate until paid.
By the Motion, the Trustee is not intending to sell the Ranch free
of easements and similar property-related encumbrances (such as
utility-related easements and the like) to the extent that such
encumbrances are valid and recorded in the records of Love County,
Oklahoma as of the filing of the Motion and purposefully designated
as permitted encumbrances in the course of finalizing the sale of
Ranch.
The Trustee asks that notice of the Motion and the process set
forth be deemed sufficient notice of the proposed sale of Ranch in
accordance with Bankruptcy Rule 6004(f). He asks that the order
approving the sale of Ranch be effective immediately by providing
that the 14-day stay under Bankruptcy Rule 6004(h) is waived.
A copy of the Contract is available at https://tinyurl.com/y2ghp4h7
from PacerMonitor.com free of charge.
A telephonic hearing on the Motion is set for Jan. 5, 2021 at 2:30
p.m. (CT). The parties are instructed to dial 1-888-675-2535, use
Access No. 4225607 and security No. 2021. The objection deadline
is 23 days from the date of Notice service.
About CFO Management Holdings
CFO Management Holdings, LLC, through its subsidiaries, engages in
developing and selling residential and commercial real estate in
Collin County, Texas, and owns and manages a wild game ranch in
Southern Oklahoma. The subsidiaries are Carter Family Office, LLC,
Christian Custom Homes, LLC, Double Droptine Ranch, LLC, Frisco
Wade Crossing Partners, LLC, Kingswood Development Partners, LLC,
McKinney Executive Suites at Crescent Parc Development Partners,
LLC, North-Forty Development LLC, and West Main Station
Development, LLC.
CFO Management Holdings and its subsidiaries sought Chapter 11
protection (Bankr. E.D. Tex. Case No. Lead Case No. 19-40426) on
Feb. 17, 2019. In the petition signed by CRO Lawrence Perkins,
CFO
Management estimated $50 million to $100 million in both assets and
liabilities. Annmarie Chiarello, Esq. and Joseph J. Wielebinski
Jr., Esq., at Winstead PC, serve as the Debtor's bankruptcy
counsel.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on March 4, 2019. The committee is represented
by Singer & Levick PC as its legal counsel.
David Wallace was appointed as Chapter 11 trustee for the Debtors'
estates on April 10, 2019.
CHEYENNE HOTEL: Unsecureds to Recover 100% in 6 Quarters
--------------------------------------------------------
Creditor Galaxy Construction, LLC, filed a Fifth Amended Plan of
Reorganization and a corresponding Disclosure Statement for Debtor
Cheyenne Hotel Investments, LLC on December 10, 2020.
Under the Plan, Galaxy will make capital contributions to the
Debtor in exchange for 100% of the equity interests in the Debtor.
This Disclosure Statement describes the operations of the
Reorganized Debtor contemplated under the Plan. Except as otherwise
expressly indicated, the portions of this Disclosure Statement
describing the Debtor, its business, properties and management, and
the Plan have been prepared from information submitted to the Court
by the Debtor and an Appraisal dated October 1, 2020 of the
Debtor's assets, commissioned by Galaxy.
Class 3A shall consist of all Allowed Unsecured Claims not
separately classified in an amount not exceeding $1,000 per allowed
Unsecured Claim, or if a Claim is an Allowed Unsecured Claim in
excess of $1,000, with respect to which the holder of the Claim
elects to reduce the amount of the Allowed Unsecured Claim to
$1,000. Claimants holding Allowed Class 3-A Claims shall receive a
single payment equal to the lesser of $800, or 80% of the Allowed
Class 3-A Claim. Such payment shall be made not later than ten days
following the Effective Date or within ten days following allowance
of the Claim, if the Claim is not allowed as of the Effective Date.
Galaxy estimates there are 26 Claimants in this Class for a total
of $10,289.95. The estimated payment to this Class is $8,231.96
which is the lesser of $20,800.00 ($800 x 26 Creditors) or 80% of
$10,289.95= $8,231.96.
Class 3B consists of General Unsecured Claims. Claimants holding
Allowed Class 3-B Claims shall receive six equal installments
commencing on the first day of the first calendar quarter occurring
after the Effective Date and continuing on the first day of each of
the next five calendar quarters. The Claims in this Class are
approximately $189,910. Each of the payments will equal one-sixth
of the Allowed Claim in this class (approximately $31,651.67).
Class 3C consists of Hilton Claims. This Class consists of the
Allowed Unsecured Claims of Hilton. Hilton filed an amended proof
of claim for at least $1,894,865. To the extent the Class 3C
claims are Allowed, Claimants shall receive payment in the amount
of $200,000 on or before the Effective Date; and payment in the
amount of $1,000,000 on or before Dec. 31, 2021. Galaxy intends to
object to the allowance of the claim of Hilton.
In order for the Plan to be confirmed, the Court must determine
that the Plan is in the best interests of the Debtor's creditors.
Accordingly, the proposed plan must provide the Debtor's creditors
with more than they would receive in a Chapter 7 liquidation.
Since the Plan proposes to pay all secured creditors in full on
their allowed secured claims and 80% to Allowed Class 3A Small
Unsecured Creditors, 100% to Allowed Class 3B General Unsecured
Creditors and approximately 60% of Allowed Class 3C Hilton Claims.
The Plan will be funded by Galaxy's capital contributions that it
will make to rehabilitate and re-open the Hotel and pay Creditors
under the Plan. In addition, Galaxy will fund the Plan with the
profits it will earn through the resumption and continuation of the
Debtor's hotel business. Under the Plan, the current equity
interests in the Debtor will be cancelled and Galaxy will become
the new 100% equity owner of the Debtor.
A full-text copy of Galaxy's Fifth Amended Plan and Disclosure
Statement dated Dec. 10, 2020, is available at
https://bit.ly/3gF2cdf from PacerMonitor at no charge.
Attorneys for Galaxy:
Joyce W. Lindauer
Kerry S. Alleyne
Guy Holman
Joyce W. Lindauer Attorney, PLLC
1412 Main St., Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
E-mail: joyce@joycelindauer.com
Mark A. Larson
Larson Law Firm, LLC
1400 Main Street, Ste. 201D
Louisville, CO 80027
Telephone:303-228-9414
E-mail: mark@larsonlawyer.com
About Cheyenne Hotel Investments
Cheyenne Hotel Investments operates Homewood Suites by Hilton Hotel
located in Colorado Springs, Colo.
Cheyenne Hotel Investments sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Colo. Case No. 19-15473) on June 26,
2019. 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. The case is assigned to Judge Kimberley
H. Tyson. The Debtor is represented by Thomas F. Quinn, P.C.
CHICK LUMBER: May Use Cash Collateral Thru Dec. 31
--------------------------------------------------
Judge Bruce A. Harwood of the U.S. Bankruptcy Court for the
District of Hampshire has authorized Chick Lumber, Inc. to use cash
collateral on an interim basis through December 31, 2020 at 11:59
p.m. absent the entry of an order extending it.
The Debtor may use and expend Cash Collateral to pay the costs and
expenses incurred by the Debtor in the ordinary course of business
to the extent provided for in the Budget up to $1,446,618.71 during
the period between October 1 and December 31.
The Debtor will make these Adequate Protection Payments on the last
day of each month: (i) $481.70 to JELD-WEN, Inc.; (ii) $24.66 to
BFG; (iii) $37.83 to GreatAmerica Financial Services Corp.; (iv)
$219.06 to Citizens One Auto Finance; (v) $226.60 to Citizens One
Auto Finance; (vi) $211.94 to Citizens One Auto Finance; (vii)
$39.52 to Wells Fargo Equipment Finance, Inc. - Forklift; (viii)
$632.68 to Ford Motor Credit; (ix) $63.25 to Wells Fargo Equipment
Finance, Inc. - Moffett Machine; (x) $82.22 to Hitachi Capital
Financial; and (xi) $1,197.93 to an escrow account for Citizens
Financial Group, Inc. and American Express Bank, FSB.
Judge Harwood held that given the dispute between the Debtor, RBS
Citizens and Amex FSB regarding the validity, enforceability,
perfection and priority of the security interests in, to and on the
Debtor's cash collateral and other property claimed by them, the
Debtor will deposit monthly with Counsel to the Debtor. The Escrow
Agent will deposit each App Escrow Payment in a non-interest
bearing IOLTA Account in the name of the Escrow Agent, as Escrow
Agent for the benefit RBS Citizens, Amex Bank and the Debtor with
Citizens Bank, N.A. or another banking institution qualified to
serve as a depository for property of the estate. Pending the
further order or orders of the Court, the Escrow Agent will hold
the funds in the RBS Citizens-Amex APP Escrow Account.
Further, each Record Lienholder is granted a replacement lien in,
to and on the Debtor's post-petition property of the same kinds and
types as the collateral in, to and on which it held or claims to
have held valid and enforceable, perfected liens on the Petition
Date as security for any loss or diminution in the value of the
collateral held by any such Record Lienholder on the Petition Date
which will have and enjoy the same priority as it had on the
Petition Date under applicable state law.
A hearing on the further motion for permission to use Cash
Collateral will be held on December 23 at 2:00 p.m.
A copy of the Court's order is available at https://bit.ly/34Iweai
from PacerMonitor.com.
About Chick Lumber, Inc.
Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer
of lumber, plywood, steel beams, engineered wood, trusses, steel
and asphalt roofing, windows, doors, siding, trim, stair parts, and
finish materials. It also offers drafting and design, installation,
delivery, outside sales, and plan reading and estimating services.
Chick Lumber sought Chapter 11 protection (Bankr. D.N.H. Case No.
19-11252) on Sept. 9, 2019, in Concord, N.H. In the petition
signed by Salvatore Massa, president, the Debtor disclosed between
$1 million and $10 million in both assets and liabilities. Judge
Bruce A. Harwood oversees the case. William S. Gannon PLLC is the
Debtor's legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on Oct. 3, 2019. The Committee is represented by
Goldstein & McClintock, LLLP as its legal counsel.
CHRISTOPHER & BANKS: Considers Bankruptcy Filing Among Options
--------------------------------------------------------------
Women's clothing retailer Christopher & Banks Corp. hired strategic
advisers including B. Riley Securities Inc. to study strategic
alternatives. Previously, it hired Berkeley Research Group for
financial advice and B. Riley Financial Inc. for investment banking
services after racking up years of losses.
Nicole Norfleet of the Star Tribune reports that Christopher &
Banks said it is considering strategies including selling the
company or seeking bankruptcy protection as customers remain
hesitant to shop in its stores and its sales continue to suffer
during the coronavirus pandemic.
The Plymouth-based retailer said it lost $10.8 million, or 29 cents
a share, during its third quarter ended Oct. 31. Sales decreased
nearly 23% to $72.8 million in the quarter compared with the same
period last year, an improvement from earlier in the pandemic when
state mandates forced Christopher & Banks to temporarily close its
stores and sales plummeted more than 50%.
Still, company performance was not as good as executives had hoped,
the retailer said.
"We have not seen the level of sales recovery that we had
anticipated," Keri Jones, the company's chief executive, said in a
statement. "We believe that COVID has had an outsized impact on our
customer demographic as her shopping behavior is more pragmatic
with limited demand for new outfits in the absence of social
engagements."
The company has kept doors open through the pandemic with the help
of a $10 million loan from the federal Paycheck Protection Program,
which it believes will be entirely forgiven. It has just $1.2
million in cash.
Alternatives include further lease concessions and deferrals for
its stores, further reductions of operating and capital
expenditures and refinancing the company's debt.
The retailer also is considering a "sale of the company or its
assets and restructuring its debt and liabilities through a private
restructuring, or a restructuring under the protection of
applicable bankruptcy laws."
During the quarter, the retailer continued to see growth in online
sales, which helped offset the company's decline, but even that
appears to have flattened.
E-commerce sales increased about 32% compared with the same period
last year, but still a far cry from the nearly 71% jump in the
second quarter.
Because the retailer's core customers are older, they are more
likely to avoid health risks of going out shopping. Jones said
company managers believed customers were still hesitant to shop in
brick-and-mortar stores.
Before the arrival of the coronavirus, Jones, a former Target Corp.
executive, had been engineering a turnaround at the retailer, which
has a loyal following but has struggled to maintain consistent
profits through the years.
About Christopher & Banks
Founded in 1956 and headquartered in Plymouth, Minnesota,
Christopher & Banks has a long history of serving older,
value-conscious women. The chain grew out of Braun's Fashion,
which opened in Minneapolis in 1956 and went public in 1992. It
now operates 450 stores in 44 states, including outlet stores and
its plus-size division, CJ Banks.
Christopher & Banks was delisted from the New York Stock Exchange
in April 2019 because its market capitalization had dropped below
$15 million for more than 30 days.
COMMUNITY HEALTH: Sells $2.8 Billion Debt to Refinance Notes
------------------------------------------------------------
Lauren Coleman-Lochner of Bloomberg News reports that Community
Health Systems Inc. is selling $2.8 billion of debt, some of which
will refinance notes due 2023, in a step to help it manage its
significant obligations.
The long-struggling hospital operator is using some of the proceeds
from the sale Friday, December 11, 2020, to buy back as much as $1
billion of 6.25% notes due 2023 through a tender offer. It received
enough demand for the new debt to boost the offering from a planned
$1.05 billion and slightly lower the yields it's paying.
About Community Health Systems Inc.
Community Health Systems, Inc. -- http://www.chs.net-- is a
publicly traded hospital company and an operator of general acute
care hospitals in communities across the country. The Company,
through its subsidiaries, owns, leases or operates 99 affiliated
hospitals in 17 states with an aggregate of approximately 16,000
licensed beds. The Company's headquarters are located in
Franklin, Tennessee, a suburb south of Nashville.
Community Health reported a net loss attributable to the Company's
stockholders of $675 million for the year ended Dec. 31, 2019,
following a net loss attributable to the Company's stockholders of
$788 million for the year ended Dec. 31, 2018. As of Sept. 30,
2020, the Company had $16.51 billion in total assets, $17.99
billion in total liabilities, $481 million in redeemable
noncontrolling interests in equity of consolidated subsidiaries,
and a total stockholders' deficit of $1.95 billion.
* * *
As reported by the TCR on Nov. 29, 2019, S&P Global Ratings raised
its issuer credit rating on U.S.-based hospital operator Community
Health Systems Inc. to 'CCC+' from 'SD' (selective default). The
upgrade to 'CCC+' reflects the company's longer-dated debt
maturity
schedule, and S&P's view that Community's efforts to rationalize
its hospital portfolio as well as improve financial performance and
cash flow should strengthen credit measures over the next couple of
years.
In November 2020, Fitch Ratings has affirmed the Long-Term Issuer
Default Ratings (IDR) of Community Health Systems, Inc. (CHS) and
subsidiary CHS/Community Health Systems, Inc. at 'CCC'.
COMMUNITY HEALTH: Subsidiary Commences Cash Tender Offer
--------------------------------------------------------
Community Health Systems, Inc.'s wholly owned subsidiary,
CHS/Community Health Systems, Inc. has commenced a cash tender
offer for up to $1,000 million of the Issuer's approximately $2,675
million aggregate principal amount outstanding 6.250% Senior
Secured Notes due 2023 on the terms and subject to the conditions
set forth in the Issuer's Offer to Purchase dated Dec. 11, 2020.
The Tender Offer will expire at 11:59 p.m., New York City time, on
Jan. 11, 2021, unless extended or earlier terminated by the Issuer.
The Issuer reserves the right to amend, extend or terminate the
Tender Offer at any time subject to applicable law.
Each holder who validly tenders, and does not validly withdraw, its
2023 Notes on or prior to 5:00 p.m., New York City time, on Dec.
24, 2020, unless extended, will be entitled to an early tender
payment, which is included in the total consideration above, of
$30.00 for each $1,000 principal amount of 2023 Notes validly
tendered by such holder if such 2023 Notes are accepted for
purchase pursuant to the Tender Offer.
Holders validly tendering, and not validly withdrawing, 2023 Notes
after the Early Tender Deadline and on or before the Expiration
Time will be eligible to receive only the tender offer
consideration, which represents the total consideration less the
early tender payment.
In addition, holders whose 2023 Notes are accepted for payment in
the Tender Offer will receive accrued and unpaid interest from the
last interest payment date to, but not including, the applicable
settlement date for their 2023 Notes purchased pursuant to the
Tender Offer. The 2023 Notes tendered prior to 5:00 p.m., New York
City time, on Dec. 24, 2020, may be withdrawn at any time prior to
the Withdrawal Deadline. 2023 Notes tendered after the Withdrawal
Deadline may not be withdrawn.
Subject to the satisfaction or waiver of certain conditions, the
Issuer reserves the right, following the Early Tender Deadline, to
accept for purchase prior to the Expiration Time all Notes validly
tendered on or prior to the Early Tender Deadline. The Issuer will
announce whether it intends to exercise the Early Settlement
Election following the Early Tender Deadline. If the Issuer
exercises the Early Settlement Election, it will pay the total
consideration promptly following the Early Settlement Announcement,
plus accrued and unpaid interest on the purchased 2023 Notes from
the interest payment date for the 2023 Notes immediately preceding
the Early Settlement Date to, but not including, the Early
Settlement Date.
The Issuer's obligation to accept for purchase, and to pay for,
2023 Notes validly tendered and not validly withdrawn pursuant to
the Tender Offer is subject to the satisfaction or waiver of
certain conditions, including, among others, the condition that the
Issuer has completed a debt financing on terms and conditions
satisfactory to it yielding gross cash proceeds of $1,050.0 million
or more. The complete terms and conditions of the Tender Offer are
set forth in the Tender Offer documents that are being sent to
holders of 2023 Notes. Holders of 2023 Notes are urged to read the
Tender Offer documents carefully.
The Issuer has retained Citigroup Global Markets Inc. to act as
dealer manager in connection with the Tender Offer. Questions
about the Tender Offer may be directed to Citigroup Global Markets
Inc. at (800) 558-3745 (toll free) or (212) 723-6106 (collect).
Copies of the Tender Offer documents and other related documents
may be obtained from Global Bondholder Services Corporation, the
depositary and information agent for the Tender Offer, at (866)
470-3800 (toll free) or (212) 430-3774 (collect) or email
contact@gbsc-usa.com.
The Tender Offer is being made solely by means of the Tender Offer
documents.
About Community Health
Community Health Systems, Inc. -- http://www.chs.net-- is a
publicly traded hospital company and an operator of general acute
care hospitals in communities across the country. The Company,
through its subsidiaries, owns, leases or operates 99 affiliated
hospitals in 17 states with an aggregate of approximately 16,000
licensed beds. The Company's headquarters are located in
Franklin, Tennessee, a suburb south of Nashville.
Community Health reported a net loss attributable to the Company's
stockholders of $675 million for the year ended Dec. 31, 2019,
following a net loss attributable to the Company's stockholders of
$788 million for the year ended Dec. 31, 2018. As of Sept. 30,
2020, the Company had $16.51 billion in total assets, $17.99
billion in total liabilities, $481 million in redeemable
noncontrolling interests in equity of consolidated subsidiaries,
and a total stockholders' deficit of $1.95 billion.
* * *
As reported by the TCR on Dec. 11, 2020, S&P Global Ratings lowered
the issuer credit rating on Community Health Systems to 'SD'
(selective default) from 'CC'. The downgrade follows Community's
exchange of $700 million of the $1.476 billion outstanding on its
senior unsecured notes due in 2028 for $400 million cash and 10
million in new common shares.
In November 2020, Fitch Ratings affirmed the Long-Term Issuer
Default Ratings (IDR) of Community Health Systems, Inc. (CHS) and
subsidiary CHS/Community Health Systems, Inc. at 'CCC'.
COMMUNITY HEALTH: Unit Prices $2.8 Billion Senior Secured Notes
---------------------------------------------------------------
Community Health Systems, Inc.'s wholly owned subsidiary,
CHS/Community Health Systems, Inc. has priced an offering of $1.9
billion aggregate principal amount of its 5.625% Senior Secured
Notes due 2027 and $0.9 billion aggregate principal amount of its
6.000% Senior Secured Notes due 2029. The sale of the Notes is
expected to be consummated on or about Dec. 28, 2020, subject to
customary closing conditions. The size of the Notes Offering was
increased, across the two series of Notes, by $1.75 billion
aggregate principal amount subsequent to the initial announcement
of the Notes Offering.
The Issuer intends to use the net proceeds of the Notes Offering to
repurchase and/or redeem all of its 6.250% Senior Secured Notes due
2023 and to pay related fees and expenses. In particular, the
Issuer intends to use the net proceeds from the Notes Offering (i)
to purchase the portion of the Issuer's outstanding 2023 Notes that
are validly tendered and accepted for purchase in the cash tender
offer announced on Dec. 11, 2020, and (ii) to the extent the
aggregate principal amount of 2023 Notes validly tendered and
accepted for purchase in the cash tender offer is less than the
entire aggregate principal amount of 2023 Notes outstanding, redeem
or repurchase (in one or more open market repurchases and/or
privately negotiated transactions) the remaining outstanding
principal amount of 2023 Notes.
The Notes are being offered in the United States to qualified
institutional buyers pursuant to Rule 144A under the Securities Act
of 1933, as amended, and outside the United States pursuant to
Regulation S under the Securities Act. The Notes have not been
registered under the Securities Act and may not be offered or sold
in the United States absent registration or an applicable exemption
from the registration requirements.
About Community Health
Community Health Systems, Inc. -- http://www.chs.net-- is a
publicly traded hospital company and an operator of general acute
care hospitals in communities across the country. The Company,
through its subsidiaries, owns, leases or operates 99 affiliated
hospitals in 17 states with an aggregate of approximately 16,000
licensed beds. The Company's headquarters are located in
Franklin, Tennessee, a suburb south of Nashville.
Community Health reported a net loss attributable to the Company's
stockholders of $675 million for the year ended Dec. 31, 2019,
following a net loss attributable to the Company's stockholders of
$788 million for the year ended Dec. 31, 2018. As of Sept. 30,
2020, the Company had $16.51 billion in total assets, $17.99
billion in total liabilities, $481 million in redeemable
noncontrolling interests in equity of consolidated subsidiaries,
and a total stockholders' deficit of $1.95 billion.
* * *
As reported by the TCR on Dec. 11, 2020, S&P Global Ratings lowered
the issuer credit rating on Community Health Systems to 'SD'
(selective default) from 'CC'. The downgrade follows Community's
exchange of $700 million of the $1.476 billion outstanding on its
senior unsecured notes due in 2028 for $400 million cash and 10
million in new common shares.
In November 2020, Fitch Ratings affirmed the Long-Term Issuer
Default Ratings (IDR) of Community Health Systems, Inc. (CHS) and
subsidiary CHS/Community Health Systems, Inc. at 'CCC'.
CRED INC: US Trustee Asks Court to Deny SAL & SOFA Extension
------------------------------------------------------------
Law360 reports that the U.S. Trustee's Office asked a Delaware
bankruptcy judge Monday, Dec. 14, 2020, to deny cryptocurrency
investment platform CRED Inc.'s request to extend the deadline to
file its financial information until mid-January, citing the firm's
"gross mismanagement" and "incompetence" as evidence a trustee
needs to take over the case.
In his objection, U.S. Trustee Andrew Vara said CRED has apparently
made no progress toward providing the court with a financial
statement or a list of assets and liabilities in the five weeks
since it entered Chapter 11 and that it should not be given more
time.
About CRED Inc.
Cred Inc. is a cryptocurrency platform that accepts loans of
cryptocurrency from non-U.S. persons and pays interest on those
loans. Cred -- https://mycred.io -- is a global financial services
platform serving customers in over 100 countries. Cred is a
licensed lender and allows some borrowers to earn a yield on
cryptocurrency pledged as collateral.
Cred Inc. and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 20-12836) on Nov. 7, 2020. Cred was estimated
to have assets of $50 million to $100 million and liabilities of
$100 million to $500 million as of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP as their bankruptcy counsel,
Cousins Law LLC as local counsel, and MACCO Restructuring Group,
LLC as financial advisor. Donlin, Recano & Company, Inc. is the
claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Dec. 3,
2020.
CROWN REMODELING: Seeks to Hire Jeffrey M. Sirody as Legal Counsel
------------------------------------------------------------------
Crown Remodeling, LLC seeks approval from the U.S. District Court
for the District of Maryland to hire Jeffrey M. Sirody &
Associates, P.A. as its legal counsel.
The Debtor requires legal assistance to:
a. prepare pleadings and applications and conduct examinations
incidental to any related proceedings or to the administration of
the Chapter 11 case;
b. determine the status of the Debtor with respect to the
claims of creditors;
c. advise the Debtor of its rights, duties and obligations;
d. take other necessary action incident to the proper
preservation and administration of the case; and
e. advise and assist the Debtor in the formulation and
implementation of a Chapter 11 plan.
The firm received an initial retainer of $10,000 from the Debtor,
of which $7,000 has been drawn down prior to filing.
Jeffrey M. Sirody & Associates does not represent any interest
adverse to the Debtor and its estate, according to a court filing.
The firm can be reached through:
Jeffrey M. Sirody, Esq.
Jeffrey M. Sirody & Associates, P.A.
1777 Reisterstown Rd., Suite 360 E
Baltimore, MD 21208
Telephone: (410) 415-0445
Facsimile: (410) 415-0744
About Crown Remodeling LLC
Based in Owings Mills, Md., Crown Remodeling, LLC is a general
contractor that offers roofing installation, storm damage repair,
window services, chimney repair, and lead paint services. Visit
https://www.crownremodelingllc.com for more information.
Crown Remodeling sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Md. Case No. 20-20690) on Dec. 10, 2020.
Crown Remodeling President Jeff Weissberg signed the petition.
At the time of the filing, Debtor had total assets of $231,157 and
liabilities of $1,219,792.
Judge David E. Rice oversees the case.
Jeffrey M. Sirody and Associates is Debtor's legal counsel.
CUSTOM FABRICATION: Disclosure Statement Approved by Judge
----------------------------------------------------------
Judge Neil W. Bason of the U.S. Bankruptcy Court for the Central
District of California, Los Angeles Division, has entered an order
approving the Disclosure Statement filed by Debtor Custom
Fabrications International, LLC, on a final basis.
The Disclosure Statement contains information adequate to enable
creditors, equity security holders, and other holders of claims and
interests (under the Debtor's Plan) to make an informed judgment
about the Debtor's Plan, and satisfies the requirements of section
1125 of the Bankruptcy Code.
The hearing on the Disclosure Statement complied with the orders of
this Court and of the Bankruptcy Code, the Bankruptcy Rules, and
the Local Rules for the United States Bankruptcy Court for the
Central District of California and no further hearing is required
with respect to the Debtor's Disclosure Statement.
A full-text copy of the order dated December 10, 2020, is available
at https://bit.ly/3r1Z9ke from PacerMonitor.com at no charge.
Attorneys for Debtor:
Kevin Tang
Tang & Associates
17011 Beach Blvd, Suite 900
Huntington Beach, CA 92647
Tel.: (714) 594-7022
Fax: (714) 594-7024
E-mail: kevin@tang-associates.com
About Custom Fabrications International
Custom Fabrications International, LLC, filed a Chapter 11
bankruptcy petition (Bankr. C.D. Cal. Case No. 20-12531) on March
6, 2020, disclosing under $1 million in both assets and
liabilities. The Debtor is represented by Kevin Tang, Esq., at Tang
& Associates.
DALF ENERGY: Equity Holders to Fund Adversary Proceedings
---------------------------------------------------------
DALF Energy, LLC filed the First Amended Chapter 11 Plan for the
liquidation of its primary assets and for the resolution of
outstanding claims against and interests in the Debtor.
The Allowed Claims of the Class 4 General Unsecured creditors shall
be paid from the proceeds received in connection with the Adversary
Proceeding and Removed Litigation, as well as the sale of the
Debtor's other Assets, Class 4 creditors shall be paid a sum in
Cash of up to 100% of the Allowed Amounts of their claims with a
Pro Rata distribution of such proceeds remaining after payment of
the Allowed Claims of creditors in Classes 1 through 3, and any
taxes which are determined to be due and owing as a result of the
liquidation of such Assets.
Class 5 shall consist of all interests in the Debtor. After the
Allowed Claims in Classes 1 through 4 are paid in full, all
remaining funds received from the proceeds of the Adversary
Proceedings and Removed Litigation, as well as the liquidation of
the Debtor's assets, shall be distributed by the Distribution Agent
to the Equity owners. Unless all Unclassified Claims and Allowed
Claims in Classes 1 through 4 are paid in full, the Holders of
Stock Claims or Class 5 Equity Interests shall not be entitled to
receive or retain any proceeds on account of such Claims or
Interests. The Equity owners of the Debtor are contributing
significant new value to the Debtor to fund the Adversary
Proceedings for the benefit of the Bankruptcy Estate and its
creditors.
A full-text copy of the first amended plan of liquidation dated
December 8, 2020, is available at https://bit.ly/2W22nFY from
PacerMonitor at no charge.
Attorney for the Debtor:
H. Anthony Hervol
LAW OFFICE OF H. ANTHONY HERVOL
4414 Centerview Road, Suite 207
San Antonio, Texas 78228
Tel: (210) 522-9500
Fax: (210) 522-0205
About DALF Energy
DALF Energy, LLC is a privately held company in the oil and gas
extraction business.
DALF Energy, LLC, filed its voluntary petition under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-50369) on Feb.
17, 2020. In the petition signed by Carlos Sada Gonzalez,
co-manager, the Debtor estimated $1 million to $10 million in both
assets and liabilities. H. Anthony Hervol, Esq. at LAW OFFICE OF
H. ANTHONY HERVOL, represents the Debtor.
DALF ENERGY: Jan. 19, 2021 Plan Confirmation Hearing Set
--------------------------------------------------------
On Dec. 7, 2020, the U.S. Bankruptcy Court for the Western District
of Texas, San Antonio Division, held a hearing to consider the
Disclosure Statement regarding the Chapter 11 Plan of Liquidation
of Debtor DALF Energy, LLC. On December 10, 2020, Judge Craig A.
Gargotta approved the First Amended Disclosure Statement and
ordered that:
* Jan. 8, 2021, is fixed as the last day for mailing or
transmitting ballots setting forth written acceptances or
rejections of the Debtor's First Amended Chapter 11 Plan of
Reorganization.
* Jan. 8, 2021, is fixed as the last day for filing and serving
written objections to confirmation of the Debtor's First Amended
Chapter 11 Plan of Reorganization.
* Jan. 19, 2021, at 10:30 a.m. in the United States Bankruptcy
Court for the Western District of Texas, San Antonio Division is
the telephonic hearing on confirmation of the Plan.
A full-text copy of the order dated December 10, 2020, is available
at https://bit.ly/3qPt6Un from PacerMonitor at no charge.
Attorney for the Debtor:
H. Anthony Hervol
LAW OFFICE OF H. ANTHONY HERVOL
4414 Centerview Road, Suite 207
San Antonio, Texas 78228
Tel: (210) 522-9500
Fax: (210) 522-0205
About DALF Energy
DALF Energy, LLC is a privately held company in the oil and gas
extraction business.
DALF Energy filed its voluntary petition under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-50369) on Feb. 17,
2020. In the petition signed by Carlos Sada Gonzalez, co-manager,
the Debtor estimated $1 million to $10 million in both assets and
liabilities. H. Anthony Hervol, Esq. at LAW OFFICE OF H. ANTHONY
HERVOL, represents the Debtor.
DAMEN 4 MANAGEMENT: Seeks to Hire McDermott Will as Special Counsel
-------------------------------------------------------------------
Damen 4 Management of Illinois, LLC and Damen 4 Management, LLC
seek approval from the U.S. Bankruptcy Court for the Northern
District of Illinois to employ McDermott Will & Emery LLP as its
special counsel.
The firm's services will include:
a. advising the Debtors in connection with the
post-confirmation equity fundraising contemplated by their amended
joint Subchapter V plan of reorganization;
b. drafting all necessary documentation in connection with the
sale of a new class of equity security in Damen 4 Management; and
c. other necessary services relating to the Debtors'
post-confirmation equity fundraising.
The principal attorney responsible for providing the fundraising
services will be Kristian Werling, whose billable rate is $950 per
hour.
Kristian Werling, Esq., a partner at McDermott Will, disclosed in
court filings that the firm does not represent or hold any interest
adverse to the Debtor or its estate.
The firm can be reached through:
Kristian A. Werling, Esq.
McDermott Will & Emery LLP
444 West Lake Street
Chicago, IL 60606-0029
Telephone: (312) 984-2157
Facsimile: (312) 984-7700
Email: kwerling@mwe.com
About Damen 4 Management of Illinois
Chicago, Ill.-based Damen 4 Management of Illinois, LLC is a
privately held company in the healthcare industry.
On May 27, 2020, Damen 4 Management of Illinois and its affiliate,
Damen 4 Management, LLC, filed voluntary Chapter 11 petitions
(Bankr. N.D. Ill. Lead Case No. 20-11501). The petitions were
signed by Damen CEO Brian Carey.
At the time of the filings, each Debtor disclosed assets of $1
million to $10 million and liabilities of the same range.
Debtors are represented by Fox Rothschild, LLP.
DENBURY ONSHORE: Wyo. High Court Affirms $35MM Award to APMTG
-------------------------------------------------------------
In the case captioned DENBURY ONSHORE, LLC and DENBURY RESOURCES
INC. n/k/a DENBURY INC., Appellants (Defendants), v. APMTG HELIUM
LLC, Appellee (Plaintiff), Case No. S-19-0172 (Wyo.), the Supreme
Court of Wyoming affirmed the district court's award of over $35
million in damages and interest to APMTG Helium LLC.
APMTG previously entered into a Helium Feedgas Agreement (HFA I)
with Cimarex Energy Co. and Riley Ridge, LLC. Under the agreement,
Cimarex and Riley Ridge agreed to design, construct, and operate a
natural gas processing plant called the Riley Ridge Plant, and to
annually deliver specified quantities of helium to APMTG.
Denbury Onshore, LLC, a subsidiary of Denbury Resources Inc., later
acquired the interests of Cimarex and Riley Ridge in the Riley
Ridge Plant and assumed all their rights and obligations under the
Helium Feedgas Agreement. On May 23, 2013, Denbury and APMTG
executed an "Amended and Restated Helium Feedgas Agreement" (HFA
II).
Denbury, however, failed to deliver the agreed-upon amounts of
helium to APMTG.
APMTG filed a complaint against Denbury before the district court
alleging breach of contract, unjust enrichment, and breach of the
implied covenant of good faith and fair dealing.
Denbury claimed its nonperformance was excused by two force majeure
events:
(1) the failure of its contractor to complete its natural
gas processing plant, and
(2) the ongoing failure of its supply wells due to sulfur
deposition plugging the wellbores.
After a bench trial, the district court decided that Denbury had
failed to show its non-performance was excused by a force majeure
event except for a period of 36 days. It awarded APMTG over $35
million in damages and interest. It also denied Denbury's requested
termination of the agreement under the doctrines of frustration of
purpose and impossibility of performance due to its chronic force
majeure status.
On appeal, the Supreme Court held that under New York law, the
doctrines of frustration of purpose and impossibility of
performance are not applicable because HFA II provided for the
occurrence of the alleged frustration or impossibility in their
contract. The court found that the agreement expressly states that
"failure of performance of contractor" and "natural or mechanical
supply well failure" may excuse a party's performance and the
payment of liquidated damages. However, the court also found that
the agreement did not include these as grounds for termination.
The Supreme Court also agreed with the district court's finding
that Denbury had failed to prove that any purported ongoing force
majeure event on or after the effective date of the HFA II excusing
non-performance under the agreement was "outside the reasonable
control of [Denbury] that could not have been avoided or overcome
by [Denbury's] exercise of reasonable care and diligence."
The Court explained that the phrase "failure of performance of
contractor" contemplates the failure of performance of a
third-party contractor, not one of the parties. The Court pointed
out that there was no more third-party contractor when HFA II took
effect because Denbury had removed its contractor, BCCK Engineering
Incorporated, from the project approximately 18 months earlier.
The Supreme Court likewise agreed with the district court's finding
that Denbury has not attempted to, nor actually implemented any
remedy/remedies for the sulfur deposition issues in two wells, and
that Denbury has "chosen" not to use the remaining three wells as
supply wells. The court held that these failures and choices do not
constitute force majeure under the HFA II.
A full-text copy of the Court's opinion dated December 4, 2020 is
available at https://tinyurl.com/yym4qmdw from Leagle.com.
Denbury is represented by:
Darin B. Scheer, Esq.
James R. Belcher, Esq.
Casey R. Terrell, Esq.
CROWLEY FLECK PLLP
Casper, Wyoming
APMTG is represented by:
Scott P. Klosterman, Esq.
Amy M. Iberlin, Esq.
WILLIAMS, PORTER, DAY, AND NEVILLE, P.C.
159 N Wolcott St Suite 400
Casper, WY 82601
E-mail: SKLOSTERMAN@WPDN.NET
AIBERLIN@WPDN.NET
- and -
Jason A. Neville, Esq.
SPENCE LAW FIRM, LLC
232 E. 2nd Street, Suite 101
Casper, WY 82601
E-mail: neville@spencelawyers.com
About Denbury Resources
Headquartered in Plano, Texas, Denbury Resources Inc. --
http://www.denbury.com/--is an independent oil and natural gas
company with onshore production and development activities in the
Gulf Coast and Rocky Mountains regions. The Company's goal is to
increase the value of its properties through a combination of
exploitation, drilling and proven engineering extraction
practices,
with the most significant emphasis relating to carbon dioxide
enhanced oil recovery (CO2 EOR) operations.
Denbury filed a Chapter 11 petition (Bankr. S.D. Tex. Case No.
20-33801) on July 30, 2020. The Hon. David R. Jones oversees the
case.
At the time of filing, the Debtors have $4,607,091,000 Total
Assets
as of March 31, 2020 and $3,117,646,000 Total Debts as of March
31,
2020.
The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy
counsel; JACKSON WALKER L.L.P. as local bankruptcy counsel;
EVERCORE GROUP L.L.C. as financial advisor; and ALVAREZ & MARSAL
NORTH AMERICA, LLC as restructuring advisor. EPIQ CORPORATE
RESTRUCTURING, LLC, is the claims agent.
* * *
Denbury Inc. (NYSE: DEN) on Sept. 18, 2020, announced it has
successfully completed its financial restructuring and emerged from
Chapter 11. Denbury restructured its balance sheet and eliminated
$2.1 billion of bond debt.
DESOTO OWNERS: Seeks to Hire NDC Development as Consultant
----------------------------------------------------------
Desoto Owners LLC filed an amended application seeking approval
from the U.S. Bankruptcy Court for the Eastern District of New York
to hire NDC Development Company as its consultant.
NDC Development will provide:
(i) pre-development services such as feasibility analysis,
development management, land use planning, project budgeting,
project scheduling and value engineering, and
(ii) entitlement services such as identifying stakeholders in
the development process, assembling a project team including
architects, engineers, contractors and consultants, interfacing
with local, state and private interest groups and negotiating with
various agencies for the approvals of the project.
Prior to commencing its Chapter 11 case, the Debtor executed an
agreement on Aug. 30 to retain NDC and two related entities. The
agreement was to have NDC and its affiliates provide development,
construction management and brokerage services to the Debtor.
The Debtor expects to confirm a plan before any commission payment
is due and before it can use construction management and brokerage
services. Accordingly the Debtor is seeking only to retain NDC at
its usual hourly rate of $225 per hour with the understanding that
post-confirmation any fees paid will be applied towards any
commission due on completion of services.
The Debtor anticipates that approximately $25,000 of NDC services
will be needed prior to confirmation of its plan. Payment of these
fees is expected to be funded by loans from ML Estate Holding LLC.
NDC President Ronald J. Allen disclosed in court filings that the
firm is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Ronald J. Allen
NDC Development Company
1001 3rd Avenue West, Suite 600
Bradenton, FL 34205
Telephone: (941) 782-0330
Email: rallen@ndcassetmanagement.com
About Desoto Owners LLC
Desoto Owners LLC is a single asset real estate (as defined in 11
U.S.C. Section 101(51B)).
Desoto Owners filed a voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-43387) on
Sep. 22, 2020. The petition was signed by Moshe Fridman, chief
executive officer. At the time of filing, the Debtor estimated $1
million to $10 million in assets and $10 million to $50 million in
liabilities.
Isaac Nutovic, Esq. at Nutovic & Associates represents the Debtor
as counsel.
EBONY MEDIA: Creditor's Credit Bid Cut Amid Board Row
-----------------------------------------------------
Law360 reports that a Texas bankruptcy judge Friday, December 11,
2020, sent a creditor of the owner of long-running Black cultural
magazines Ebony and Jet to the company's auction with a limited
ability to credit bid due to its involvement in a settlement that
led to the ouster of Ebony's board.
After a remote hearing, U.S. Bankruptcy Judge David Jones said
Parkview Capital Credit Inc. will only be able to put up $13
million of the $14.1 million it claims Ebony Media Operations owes
at the company's upcoming Chapter 11 auction as a consequence of a
deal it struck with members of the publisher's board.
About Ebony Media
Ebony Media Holdings LLC is the publisher of Black cultural
magazines Ebony and Jet.
Creditors Parkview Capital Credit Inc. and David M. Abner &
Associates, Plum Studio filed involuntary Chapter 7 petitions
against Ebony Media Operations, LLC, and Ebony Media Holdings LLC
(Bankr. S.D. Tex. Case No. 20-33665 and 20-33667) on July 23, 2020.
The court on Sept. 3, 2020, entered an order approving a
stipulation signed by the Debtors and the petitioners to an entry
of order for relief in the bankruptcy cases and the conversion of
the cases to cases under Chapter 11 of the Bankruptcy Code.
The Debtors have tapped Pendergraft & Simon, LLP as their legal
counsel and FTI Capital Advisors, LLC as their investment banker.
ENPRO INDUSTRIES: Egan-Jones Lowers Senior Unsecured Ratings to B+
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by EnPro Industries, Inc. to B+ from BB-.
Headquartered in Charlotte, North Carolina, EnPro Industries, Inc.
is an American industrial conglomerate, through its various
divisions and subsidiaries it provides engineered industrial
products for critical applications in a wide range of industries.
EVEREST REAL ESTATE: Seeks to Hire Rosen Systems as Appraiser
-------------------------------------------------------------
Everest Real Estate Investments, LLC seeks authority from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Rosen
Systems, Inc. to determine the auction value of its personal
property.
The firm will charge a flat fee of $4,900.
Rosen Systems does not represent interest adverse to the Debtor or
the estate in the matters upon which it is to be engaged, according
to court filings.
The firm can be reached through:
Gus Rosen
Rosen Systems, Inc.
2323 Langford St.
Dallas, TX 75208
Phone: +1 972-248-2266
About Everest Real Estate Investments
Everest Real Estate Investments, LLC is a health care services
provider established in Humble, Texas specializing in general acute
care hospital. It offers completely comprehensive medical care,
treating both major and minor injuries. For more information,
visit www.setexaser.com.
Everest Real Estate filed a Chapter 11 petition (Bankr. S.D. Tex.
Case No. 20-34077) on August 14, 2020. In the petition signed by
Thomas Vo, M.D., majority owner of managing partner, the Debtor was
estimated to have at least $50 million in both assets and
liabilities.
Judge Christopher M. Lopez oversees the case. The Debtor tapped
The Gerger Law Firm, PLLC as its legal counsel.
FERRELLGAS PARTNERS: Posts $46.1 Million Net Loss in First Quarter
------------------------------------------------------------------
Ferrellgas Partners, L.P. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
attributable to the company of $46.06 million on $300,894 of total
revenues for the three months ended Oct. 31, 2020, compared to a
net loss attributable to the company of $45.34 million on $293,214
of total revenues for the three months ended Oct. 31, 2019.
As of Oct. 31, 2020, the Company had $1.65 billion in total assets,
$1.12 billion in total current liabilities, $1.64 billion in
long-term debt, $83.34 million in operating lease liabilities,
$49.54 million in other liabilities, and a total partners' deficit
of $1.24 billion.
The Company continued its strong operational performance during the
first quarter of fiscal 2021, leading to a $7.1 million increase in
operating income and setting a foundation for continued growth in
fiscal 2021. The Company implemented strategies to deliver gallons
more efficiently leading to significant decreases in operating
expense during the quarter. The Company sold 167.6 million propane
gallons for the quarter, compared to 179.9 million in the prior
year quarter. However, these overall volume decreases were
partially offset by a continued increase in Blue Rhino tank
exchange sales due to increased strategies in marketing and "stay
at home" buying trends. Margin per gallon for the year was $.08,
or 10% higher than the prior year, attributable to strategic
product placement, sound supply chain logistics strategies and
lower wholesale propane prices. Overall, the increase in margin,
increase in tank exchange volumes and customer growth were
partially offset by decreased retail sales volumes due to a
relatively weaker economy. This has resulted in an increase in
gross margin dollars of $4.1 million or 2.6% higher than prior
year. Operating expenses decreased $5.5 million or 5% due to the
strategies to deliver gallons more efficiently.
The Company continues to implement numerous initiatives to increase
efficiency and profitability. These initiatives produced strong
results in the first quarter and enable continued high performance
in the areas of growth and operational expense management. Strong
execution by a leaner and more agile workforce of essential workers
is driving high performance throughout the Company, both in the
field and in corporate locations.
Adjusted EBITDA, a non-GAAP measure, increased by $8.8 million, or
35%, to $33.9 million in the current quarter compared to $25.1
million in the prior year quarter. "I could not be more proud of
our people as we continue the transformation of the company. If
you compare our financial results with first quarter last year you
can see why," said James E. Ferrell, interim chief executive
officer and president of Ferrellgas.
As previously disclosed, the Company entered into a Transaction
Support Agreement with a majority of the holders of the Company's
8.625% Senior Notes Due 2020 on Dec. 10, 2020. The TSA sets forth
a restructuring process to satisfy the obligations under the 2020
Notes and refinance the balance sheet of the Company and its
operating partnership. The transactions contemplated by the TSA
are intended to de-lever the Company's balance sheet, consistent
with the Company's strategy to create a solid financial foundation
for future growth.
The TSA executed between the Company and its noteholders will
permit Ferrellgas to remain an independent, employee-owned business
under current management while restructuring substantially all of
its debt. Importantly, the restructuring will have no impact on
the Company's operations, will not inhibit its ability to provide
propane to its almost 800,000 customers throughout the United
States and Puerto Rico, and will allow its premier Blue Rhino tank
exchange business to continue to expand beyond the current 60,000
selling locations.
As previously announced, the Company indefinitely suspended its
quarterly cash distribution as a result of not meeting the required
fixed charge coverage ratio contained in the senior unsecured notes
due 2020.
Going Concern
Ferrellgas Partners has $357.0 million in unsecured notes due June
15, 2020, which Ferrellgas Partners failed to repay, that are
classified as current in the condensed consolidated financial
statements. Additionally, Ferrellgas, L.P. has $500.0 million in
unsecured notes due May 1, 2021, that are also classified as
current in the condensed consolidated financial statements. The
ability of Ferrellgas Partners to restructure, refinance or
otherwise satisfy these notes is uncertain considering the level of
other outstanding indebtedness. Given these concerns, Ferrellgas
Partners believes there is substantial doubt about the entity's
ability to continue as a going concern. Ferrellgas has engaged
Moelis & Company LLC as its financial advisor and the law firm of
Squire Patton Boggs LLP to assist in its ongoing process to reduce
existing debt and address its debt maturities. On Dec. 10, 2020,
Ferrellgas Partners, Ferrellgas Partners Finance Corp., the
operating partnership and additional Ferrellgas entities entered
into a Transaction Support Agreement with certain holders of, or
investment advisors, sub-advisors, or managers of discretionary
accounts that hold, claims arising under, derived from or based
upon the indenture governing the Ferrellgas Partners Notes due June
15, 2020. There is no assurance that the transactions contemplated
by the TSA will be consummated and the outcome of Ferrellgas' debt
reduction strategy continues to remain uncertain.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/922358/000155837020014376/fgp-20201031x10q.htm
About Ferrellgas
Ferrellgas Partners, L.P. (www.ferrellgas.com), through its
operating partnership, Ferrellgas, L.P., and subsidiaries, serves
propane customers in all 50 states, the District of Columbia, and
Puerto Rico.
* * *
As reported by the TCR on June 23, 2020, S&P Global Ratings lowered
its issuer credit rating on Kansas-based propane distributor
Ferrellgas Partners L.P. to 'SD' (selective default) from 'CC'.
The downgrade reflects Ferrellgas Partners' decision not to make
the final maturity payment on its senior unsecured notes due June
15 and its subsequent decision to enter into a forbearance
agreement with the noteholders on June 7.
FIRST RESPONSE: Seeks to Hire Stevenson & Bullock as Legal Counsel
------------------------------------------------------------------
First Response Fire Protection, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Michigan to hire
Stevenson & Bullock, P.L.C. as its legal counsel.
The Debtor requires the firm to prepare legal papers, appear at
court hearings, and advise the Debtor in all legal matters during
its Chapter 11 case.
The firm's attorneys and support staff expected to handle the case
will be paid at these hourly rates:
ATTORNEYS
Michael A. Stevenson $425
Charles D. Bullock $400
Kimberly Bedigian $350
Sonya N. Goll $325
Michelle Stephenson $325
Ernest M. Hassan, III $300
Elliot Crowder $300
PARALEGALS
Leslie D. Haas $150
LEGAL ASSISTANTS
Rachel Schultz $100
The firm received $9,217 for pre-bankruptcy fees and expenses for
its representation of the Debtor.
Elliot Crowder, Esq., an attorney at Stevenson & Bullock, disclosed
in court filings that he and the firm are "disinterested persons"
as defined by Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Elliot G. Crowder, Esq.
Stevenson & Bullock, P.L.C.
26100 American Drive, Suite 500
Southfield, MI 48034
Telephone: (248) 354-7906
Facsimile: (248) 354-7907
Email: ecrowder@sbplclaw.com
About First Response Fire Protection
Based in New Baltimore, Mich., First Response Fire Protection, Inc.
provides fire protection services for over 15 years.
First Response Fire Protection sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 20-52260) on
Dec. 10, 2020. The petition was signed by Scott Sharpe, the
company's president.
At the time of the filing, Debtor had estimated assets of between
$100,000 and $500,000 and liabilities of between $1 million and $10
million.
Stevenson & Bullock, P.L.C. is Debtor's legal counsel.
FITNESS BLUEPRINT: Plan Filing Deadline Extende to Feb. 16, 2021
----------------------------------------------------------------
Judge LaShonda A. Hunt of the U.S. Bankruptcy Court for the
Northern District of Illinois, Eastern Division, has ordered that
the deadline for Debtor Fitness Blueprint, LLC d/b/a The Foundry
Chicago to file its plan of reorganization is extended from Dec.
16, 2020 through and including February 16, 2021.
A full-text copy of the order dated Dec. 10, 2020, is available at
https://bit.ly/3gBZsNO from PacerMonitor at no charge.
Counsel for the Debtor:
Scott R. Clar
Crane, Simon, Clar & Goodman
135 S. LaSalle, #3705
Chicago, IL 60603
Tel: (312) 641-6777
E-mail: sclar@cranesimon.com
About Fitness Blueprint
Fitness Blueprint, LLC, d/b/a The Foundry Chicago, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ill. Case No. 20-17260) on Sept. 17, 2020.
Judge Lashonda A. Hunt oversees the case.
Scott R. Clar, Esq., and Jacob Comrov, Esq., of the law firm of
Crane, Simon, Clar & Goodman serve as the Debtor's counsel.
William Avellone was appointed as Subchapter V Trustee.
GENNADY MOSHKOVICH: Bid to Reconsider Property Sale Denied
----------------------------------------------------------
In the case captioned In re: Gennady Moshkovich, Chapter 11,
Debtor(s), Case No. 2:20-bk-11547-BB (Bankr. C.D. Cal.), Judge
Sheri Bluebond denied the motion of BOBS, LLC for reconsideration
of the court's decision authorizing the sale of the real property
located at 911/917 Loma Vista Drive, Beverly Hills, CA 90210. The
judge also denied Bobs' alternative request for a stay pending
appeal of the order authorizing the foregoing sale.
Judge Bluebond held that Bobs has not established cause for the
court to reconsider its decision to approve the sale of the
property to NVSI, Inc. The judge also added that Bobs has not made
the showing necessary to entitle it to a stay pending appeal.
Judge Bluebond found that Bobs should not under any circumstance be
permitted to credit bid any portion of its alleged claims at a sale
of the property in that there is no allowed or undisputed portion
of its secured claim. The judge noted that the debtor has disputed
the entirety of Bobs' lien in adversary proceeding number
2:20-ap-01623.
The judge also pointed out that Bobs did not object to the sale or
seek authority to credit bid at any time prior to the hearing on
the debtor's motion to sell the property.
Lastly, Judge Bluebond found that the sale was proposed in good
faith and is the product of arm's-length negotiations between NVSI
and the debtor, and that it is critical that the debtor consummate
the sale promptly –- before the loan proceeds being used by the
debtor to maintain the property are exhausted.
A full-text copy of Judge Bluebond's order dated December 8, 2020
is available at https://tinyurl.com/y4pvkcm6 from Leagle.com.
Gennady Moshkovich sought Chapter 11 protection (Bankr. C.D. Cal.
Case No. 20-11547) on Feb. 12, 2020. The Debtor tapped David
Golubchik, Esq., as counsel.
GLOBAL CORE: Seeks to Tap Christopher A. Wood as Bankruptcy Counsel
-------------------------------------------------------------------
Global Core Woodward, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Oklahoma to hire Christopher A.
Wood & Associates, P.C. as its bankruptcy counsel.
The firm's services will include:
a. representing the Debtor's interest in matters and
proceedings arising in or relating to its Chapter 11 case;
b. investigating and prosecuting causes of action belonging to
the estate under applicable non-bankruptcy law; and
c. preparing a business plan and confirmation of a plan of
reorganization.
Christopher Wood, Esq., will charge an hourly fee of $250 and will
seek reimbursement for work-related expenses.
Mr. Wood disclosed in court filings that he does not hold or
represent any interest adverse to Debtor or its estate and that he
is a "disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Christopher A. Wood, Esq.
Christopher A. Wood & Associates, P.C.
1133 N. Portland Avenue
Oklahoma City, OK 73107
Telephone: (405) 525-5005
Facsimile: (405) 521-8567
Email: cawlaw@hotmail.com
About Global Core Woodward
Global Core Woodward, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)). It owns a property located
at 3410 Williams Ave, Woodward, Okla., having a current value of
$4.30 million.
Global Core Woodward sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Okla. Case No. 20-13781) on Nov. 30,
2020. The petition was signed by Sukhwinder Singh, member.
At the time of the filing, Debtor had total assets of $4,775,293
and total liabilities of $4,277,781.
Christopher A. Wood & Associates, P.C. is Debtor's legal counsel.
GORHAM PAPER: Committee Seeks to Hire Reed Smith as Legal Counsel
-----------------------------------------------------------------
The official committee of unsecured creditors of Gorham Paper and
Tissue, LLC and its affiliate seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Reed Smith
LLP as its legal counsel.
The firm's services will include:
(a) advising the committee of its rights, powers and duties in
the Debtors' Chapter 11 cases;
(b) assisting the committee in its consultations with the
Debtors relative to the administration of the cases;
(c) advising the committee regarding applicable non-profit
law;
(d) reviewing and analyzing all applications, motions, orders,
statements of operations and schedules filed with the bankruptcy
court, advising the committee as to their propriety, and taking
appropriate action in furtherance of the committee's interests and
objectives;
(e) preparing legal papers;
(f) representing the committee at hearings held before the
court;
(g) assisting the committee in analyzing the claims of the
Debtors' creditors and in negotiating with such creditors;
(h) assisting in the committee's investigation of the acts,
conduct, assets, liabilities and financial condition of the
Debtors;
(i) assisting the committee in its analysis of, and
negotiations with, the Debtors or their creditors; and
(j) performing all other necessary legal services as may be
required.
The firm's attorneys and paralegals will be paid at their regular
hourly rates not exceeding $600 per hour.
Claudia Springer, Esq., a partner at Reed Smith, disclosed in court
filings that the firm and all of the attorneys are "disinterested
persons" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Claudia Z. Springer, Esq.
Reed Smith LLP
Three Logan Square, 1717 Arch Street, Suite 3100
Philadelphia, PA 19103
Telephone: (215) 241-7946
Email: cspringer@reedsmith.com
About Gorham Paper and Tissue
Founded in 2011, Gorham Paper and Tissue LLC --
http://www.gorhampt.com/-- operates a paper mill and manufactures
customized tissues, towels and specialty packagings.
Gorham Paper and Tissue and affiliate White Mountain Tissue, LLC,
sought Chapter 11 protection (Bankr. D.N.H. Lead Case No. 20 12814
and 20-12815) on Nov. 4, 2020. Gorham Paper was estimated to have
assets of $1 million to $10 million and liabilities of $50 million
to $100 million.
The Hon. Karen B. Owens is the case judge.
The Debtors have tapped Bernstein, Shur, Sawyer & Nelson, P.A. as
their bankruptcy counsel, Polsinelli PC as local counsel, and B.
Riley Securities as investment banker. Donlin Recano & Company,
Inc. is the claims and noticing agent.
On Nov. 10, 2020, the Office of the United States Trustee for the
District of Delaware appointed the official committee of unsecured
creditors. Reed Smith agreed to serve as the committee's legal
counsel.
GORHAM PAPER: Committee Taps Argus Management as Financial Advisor
------------------------------------------------------------------
The official committee of unsecured creditors of Gorham Paper and
Tissue, LLC and its affiliate seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Argus
Management Corporation as its financial advisor.
The committee requires the firm to:
(a) review and assess the Debtors' historical and ongoing
financial statements;
(b) review and assess debtor-in-possession financing budget
and critically challenge underlying assumptions;
(c) review and assess business plans or forecasts of any
businesses that may arise from a reorganization;
(d) review and assess inventory of intellectual property
assets available from the Debtors and franchisees;
(e) review and assess franchise agreements to determine
consistency with market terms and fees due;
(f) review and assess the Debtors' IP commercialization plans,
strategy and management team;
(g) perform IP valuation analyses of the Debtors' IP
commercialization plans as well as alternative value maximizing
options;
(h) provide a forensic accounting review of the Debtors' books
and records, as directed by the committee;
(i) work in coordination with the investment banking firm
proposed to be retained by the Debtors to market and sell all or
parts of the business;
(j) monitor cash movement and related activity throughout the
cases; and
(k) perform such other professional services as may be
requested by the committee.
The firm will be paid at these current standard hourly rates:
Thomas Doherty $550
Lawton Bloom $550
Peter Sullicvan $325
The committee and Argus have agreed upon the blended rate for all
professionals working on the case of $375 per hour.
Thomas Doherty, a principal at Argus, disclosed in court filings
that the firm is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Thomas B. Doherty
Argus Management Corporation
2 Rosenfeld Drive, Suite F
Hopedale, MA 01747
Telephone: (508) 381-1902
About Gorham Paper and Tissue
Founded in 2011, Gorham Paper and Tissue LLC --
http://www.gorhampt.com/-- operates a paper mill and manufactures
customized tissues, towels and specialty packagings.
Gorham Paper and Tissue and affiliate White Mountain Tissue, LLC,
sought Chapter 11 protection (Bankr. D.N.H. Lead Case No. 20 12814
and 20-12815) on Nov. 4, 2020. Gorham Paper was estimated to have
assets of $1 million to $10 million and liabilities of $50 million
to $100 million.
The Hon. Karen B. Owens is the case judge.
The Debtors have tapped Bernstein, Shur, Sawyer & Nelson, P.A. as
their bankruptcy counsel, Polsinelli PC as local counsel, and B.
Riley Securities as investment banker. Donlin Recano & Company,
Inc. is the claims and noticing agent.
On Nov. 10, 2020, the Office of the United States Trustee for the
District of Delaware appointed the official committee of unsecured
creditors. Reed Smith agreed to serve as the committee's legal
counsel.
GOURDOUGH'S HOLDINGS: Seeks Approval to Hire Mad Works Architecture
-------------------------------------------------------------------
Gourdough's Holdings, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Western District of Texas to employ
Mad Works Architecture + P.C.
The Debtors need the firm's services related to proving building
code reviews and the City of Austin master comment report responses
required to secure a building permit.
The firm will be paid hourly and is entitled to receive fees of not
more than $4,000 for its services. The retainer fee is $1,100.
Michael Diani of Mad Works disclosed in court filings that the firm
is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code and does not hold or represent an
interest adverse to the Debtors and their estates.
The firm can be reached through:
Michael Diani
Mad Works Architecture + P.C.
Austin, TX 78702
Telephone: (512) 829-7295
Email: info@mad-works.com
About Gourdough's Holdings
Gourdough's Holdings, LLC and its affiliates operate in the service
industry and have made a name for themselves in the Austin food
scene. The companies started as a food trailer in 2009.
Gourdough's Holdings holds 100 percent of the interest in
Gourdough's LLC, which operates the location on South First, and 80
percent of the interest of Gourdough's Public House, LLC, which
operates the dine-in restaurant location on S. Lamar.
Gourdough's Holdings and its affiliates sought Chapter 11
protection (Bankr. W.D. Tex. Lead Case No. 20-10720) on June 22,
2020. At the time of the filing, Gourdough's Holdings had estimated
assets of less than $50,000 and liabilities of between $1 million
and $10 million.
Judge H. Christopher Mott oversees the cases.
The Debtors hired Hajjar Peters, LLP as their bankruptcy counsel,
Texas Liquor Control as tax consultant, and Rachel M. Morgan, PLLC
as accountant. The Debtors also tapped the services of Austin,
Texas-based firm Mad Works Architecture + P.C.
GRAVITY HOLDINGS: Seeks Court Approval to Hire Accountant
---------------------------------------------------------
Gravity Holdings, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Louisiana to hire Roland
Kraushaar, a certified public accountant at Waskom Brown &
Associates.
The accountant will assist the Debtor in the preparation and filing
of tax returns, the analysis of various financial documents and the
handling of other accounting duties in its Chapter 11 case.
Mr. Kraushaar and the members of his firm are disinterested persons
and do not hold or represent an interest adverse to the Debtor's
estate.
The accountant holds office at:
Roland D. Kraushaar, CPA
Waskom Brown & Associates
816 University Parkway
Natchitoches, LA 71457
About Gravity Holdings, Inc.
Gravity Holdings, Inc., based in Elmer, LA, filed a Chapter 11
petition (Bankr. W.D. La. Case No. 20-80549) on Nov. 11, 2020. In
its petition, the Debtor disclosed $72,080 in assets and $2,077,503
in liabilities. The petition was signed by David Blumenstock,
president-secretary.
The Hon. Stephen D. Wheelis presides over the case.
Thomas R. Willson, Esq., serves as the Debtor's bankruptcy counsel.
GREEN MOUNTAIN: Seeks to Hire Anne H. Stevenson as Accountant
-------------------------------------------------------------
Green Mountain Specialties Corp. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire Anne H.
Stevenson, CPA, P.A. as its accountant.
The Debtor requires the firm to:
a. advise as to the Debtor's tax liabilities;
b. prepare all necessary tax returns;
c. communicate with the Internal Revenue Service on behalf of
the Debtor if needed; and
d. prepare any accounting documents and materials required of
the Debtor.
The firm will be charged at the rate of $1,500 per return for the
preparation of corporate federal tax returns of the Debtor, $600
per return for form 1040 returns, and $125 per hour for QuickBooks
clean-up. Other CPA work will be billed at a range of $295 per hour
to $65 per hour for administrative work.
Stevenson represents no interest adverse to the Debtor or to the
estate, according to a court filing.
The firm can be reached through:
Anne H. Stevenson, CPA
Anne H. Stevenson, CPA, P.A.
233 E Rich Ave.
DeLand, FL 32724
Telephone: (386) 738-7353
About Green Mountain Specialties Corp.
Green Mountain Specialties Corp., filed a Chapter 11 bankruptcy
petition (Bankr. M.D. Fla. Case No. 20-06370) on Nov. 17, 2020,
disclosing under $1 million in both assets and liabilities.
The Debtor is represented by the Law Offices of L. William Porter
III, P.A.
GULFPORT ENERGY: Paul, Porter Update List of Noteholder Group
-------------------------------------------------------------
In the Chapter 11 cases of Gulfport Energy Corporation, et al., the
law firms of Porter Hedges LLP and Porter Hedges LLP submitted an
amended verified statement under Rule 2019 of the Federal Rules of
Bankruptcy Procedure, to disclose an updated list of Ad Hoc Group
of Noteholders that they are representing.
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.
The Ad Hoc Group of Noteholders filed the Verified Statement
Pursuant to Bankruptcy Rule 2019 of the Ad Hoc Group of
Noteholders, dated November 16, 2020 [Docket No. 95]. The Ad Hoc
Group of Noteholders submits this Amended Verified Statement to
amend information disclosed in the Original Verified Statement.
As of Dec. 7, 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: 4,755,000
* 2024 Notes: 40,335,000
* 2025 Notes: 58,732,000
* 2026 Notes: 43,509,000
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: 13,745,000
* 2024 Notes: 66,920,000
* 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: 30,000,000
* 2024 Notes: 100,055,000
* 2025 Notes: 50,507,000
* 2026 Notes: 27,790,000
Nomura Corporate Research and
Asset Management Inc.
309 West 49th Street
New York, New York 10019
* 2024 Notes: 12,974,000
* 2025 Notes: 21,808,000
* 2026 Notes: 14,972,000
Silver Point Capital, L.P.
2 Greenwich Plaza
Greenwich, Connecticut 06830
* 2023 Notes: 78,910,000
* 2024 Notes: 172,879,000
* 2025 Notes: 222,210,000
* 2026 Notes: 149,296,000
* RBL Loans: 8,702,427
Third Point LLC
55 Hudson Yards
New York, New York 10001
* 2023 Notes: 31,170,000
* 2024 Notes: 33,735,000
* 2025 Notes: 20,066,000
* 2026 Notes: 8,050,000
Whitebox Advisors LLC
3033 Excelsior Blvd., Suite 500
Minneapolis, Minnesota 55416
* 2023 Notes: 22,110,000
* 2024 Notes: 7,269,000
* 2025 Notes: 8,100,000
* 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/3qWccU8
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.
HI-CRUSH INC: Lawsuits Against Frac Sand Mining Increase
--------------------------------------------------------
Mike Tighe of News8000 reports that nearly a dozen western
Wisconsin residents filed new lawsuits against frac sand mines in
Jackson and Chippewa counties, while almost four dozen others are
trying to amend four lawsuits against Hi-Crush mines in Trempealeau
County.
"Frac sand mining facilities are destructive forces on our rural
landscape," said Tim Jacobson, an attorney at Fitzpatrick, Skemp &
Butler in Onalaska who has been involved in legal challenges
against several planned and existing frac sand mines in Wisconsin,
as well as one originally planned near Zion National Park in
southern Utah.
"These open-pit mines depress property values, pollute our rivers
and the air, and shatter the peaceful lives and well-being of those
who live nearby with blasting and round-the-clock industrial
noises," Jacobson said.
The lawsuits against the Hi-Crush mines in Blair and Whitehall,
pending since 2019, have been put on hold twice.
The first time was when Hi-Crush filed motions to dismiss, which a
court ultimately rejected. The second delay came when Hi-Crush
filed for Chapter 11 bankruptcy court protection.
Attorneys for the plaintiffs negotiated provisions in the
bankruptcy court confirmation order to preserve the rights of those
individuals to continue their state court lawsuits against
Hi-Crush.
During the bankruptcy proceedings, plaintiffs' counsel learned the
identity of liability insurers and contractors of Hi-Crush, which
the plaintiffs now seek to bring in as additional defendants,
Jacobson said.
Five more people are seeking to join the lawsuit as plaintiffs
against Hi-Crush Blair.
Nine people have filed a new lawsuit against the Wisconsin
Proppants Hixton frac sand facility in Jackson County, and two are
suing the EOGDS Mine in Chippewa County.
The lawsuits allege that the facilities have caused a significant
loss in property values and increase water pollution, as well as
exposing nearby residents to toxic silica dust, blasting shockwaves
and excessive noise, among other nuisances.
The lawsuit against Wisconsin Proppants also claims that the mining
operations harmed an adjacent beef cattle operation and points out
that the facility spilled about 400,000 gallons of mine sludge in
2019.
The suit against EOG Resources and Kraemer Mining & Materials
asserts that repeated blasting at the mine is believed to have
collapsed the plaintiffs' drinking water well and cracked their
house foundation, resulting in dangerous levels of radon gas
seeping into the home, Jacobson said.
The frac sand mines being sued have been cited for a range of
environmental and safety violations. For example, in addition to
the Wisconsin Proppants 400,000-gallon spill, Hi-Crush Whitehall
caused a spill of 10 million gallons of mine sludge in 2018. Both
spills contaminated the Trempealeau River.
Hi-Crush Blair also received a notice of violation from the
Wisconsin DNR for excessive arsenic in well water starting on or
about November 2016 and continuing at least through October 16,
2017. Groundwater contamination reached a point of being as high as
four times the acceptable limit of arsenic, without any notice
being provided to neighbors regarding potential impact to their
drinking water wells, Jacobson said.
The companies also have received dozens of citations from the Mine
Safety and Health Administration, while Wisconsin Proppants has
received as many as 44 citations or orders from MSHA.
"Frac sand mining companies have been running amok,” Jacobson
said. “These lawsuits filed by neighbors to the mines seek to
impose some accountability and protect these folks from ongoing
harm."
About Hi-Crush Inc.
Hi-Crush Inc. -- http://www.hicrushinc.com/-- is a
fully-integrated provider of proppant and logistics services for
hydraulic fracturing operations, offering frac sand production,
advanced wellsite storage systems, flexible last mile services, and
innovative software for real-time visibility and management across
the entire supply chain. The Company's strategic suite of
solutions provides operators and service companies in all major
U.S. oil and gas basins with the ability to build safety,
reliability and efficiency into every completion.
Hi-Crush and its affiliates sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 20-33495) on
July 12, 2020. As of March 31, 2020, Debtors had total assets of
$953.082 million and total liabilities of $699.137 million.
Judge David R. Jones oversees the cases.
The Debtors tapped Hunton Andrews Kurth LLP and Latham & Watkins
LLP as their legal counsel, Alvarez & Marsal North America LLC as
financial advisor, and Lazard Freres & Co. LLC as investment
banker. Kurtzman Carson Consultants LLC is the claims and noticing
agent and solicitation agent.
HKO 3 LLC: Plan to Pay Unsecured Creditors in Full in 3 Years
-------------------------------------------------------------
HKO 3, LLC filed a First Amended Plan and a corresponding First
Amended Disclosure Statement on Dec. 10, 2020.
Class 1 consists of the U.S. Bank National Association, as Trustee
for Sutherland Grantor, Series VII. This claim shall be paid at
5.5% interest amortized over 30 years payable in eight months.
Should Debtor be unable to refinance in eight months, Debtor agrees
to list the Property for sale. The property shall be listed for
ninety days. If the property is not sold, the property will be
auctioned and U.S. Bank is permitted to credit bid its lien at an
auction.
Class 2 consists of General Unsecured Claims which total $3,370.77
(subject to objection and reclassification). Allowed Class 3
Claims shall be paid quarterly in full over three years at $280.89
per quarter.
A full-text copy of the First Amended Disclosure Statement dated
December 10, 2020, is available at https://bit.ly/3a646lJ from
PacerMonitor at no charge.
Attorneys for Debtor:
McMANIMON, SCOTLAND & BAUMANN, LLC
75 Livingston Avenue, Suite 201
Roseland, NJ 07068
Tel: (973) 622-1800
Anthony Sodono, III
Sari B. Placona
E-mail: asodono@msbnj.com
splacona@msbnj.com
About HKO 3, LLC
HKO 3, LLC, is engaged in activities related to real estate, whose
principal assets are located at 597-603 Broadway Newark, NJ 07104.
HKO 3, LLC, filed a Chapter 11 petition (Bankr. D.N.J. Case No.
20-18601) on July 16, 2020. At the time of filing, the Debtor was
estimated to have $1 million to $10 million in assets and $500,000
to $1 million in liabilities. Anthony Sodono, III, Esq. of
MCMANIMON, SCOTLAND & BAUMANN, LLC, is the Debtor's counsel.
K&W CAFETERIAS: Proposed Sale of Assets Denied Without Prejudice
----------------------------------------------------------------
Judge Benjamin A. Kahn of the U.S. Bankruptcy Court for the Middle
District of North Carolina denied K&W Cafeterias, Inc.'s bidding
procedures in connection with the auction sale of (i) assets used
in its restaurant operations, and (ii) real estate owned by its
affiliates, Allred Investment Co., LLC and DGV, LLC, that is
currently leased to the Debtor for use in its restaurant
operations, without prejudice to the Debtor's right to ask the
Court's approval of a sale of some or all of its assets at any time
after the entry of the Order.
The Debtor filed a Notice of Cancellation of Auction on Dec. 8,
2020.
The Sale Hearing scheduled for 9:30 a.m. (ET) on Dec. 16, 2020 is
cancelled.
Within three business days after entry of the Order, the Debtor
will serve a copy of the Order on (a) the Bankruptcy Administrator;
(b) counsel to the Committee; (c) the counsel to Truist; (d) the
counsel to the Affiliates; (e) all the parties known to the Debtor
who hold any liens or security interests in its Assets who have
filed UCC-1 financing statements against it, or who, to its
knowledge, have asserted any liens on any of its assets; (e) all
the non-debtor counterparties to the Debtor's executory contracts
and unexpired leases; and (f) all parties who have filed a notice
of appearance and request for service of papers pursuant to
Bankruptcy Rule 2002.
A hearing on the Motion was held on Dec. 9, 2020.
A copy of the Bidding Procedures is available at
https://tinyurl.com/y2t9x4n5 from PacerMonitor.com free of charge.
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 has tapped Northen Blue, LLP as its bankruptcy counsel,
and Bell Davis & Pitt P.A. and Constangy Brooks Smith & Prophete
LLP as 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 as bankruptcy counsel.
KEVIN L THURMON: Thurmons Not Small Biz Debtors, Court Says
-----------------------------------------------------------
In the case captioned IN RE: KEVIN LYNN THURMON and SUSAN JANE
THURMON, Debtors, Case No. 20-41400-can11 (Bankr. W.D. Mo.), Judge
Cynthia A. Norton sustained the United States Trustees' objection
to the designation of Kevin Lynn and Susan Jane Thurmon as
subchapter V small business debtors. Judge Norton, however,
overruled the UST's objection to confirmation of the Thurmons'
chapter 11 plan.
The UST objected to the individual debtors' designation as
subchapter V small business debtors because they ceased operating
their business, Dowel, LLC, sold the assets several months before
they filed their bankruptcy case, and are now retired. The UST
argued that the debtors therefore are not "engaged" in commercial
or business activities.
The debtors insisted that they qualify, arguing that:
(1) the statutory definition of a small business debtor does
not say that debtors must be "currently" engaged in business;
(2) even if construed that way, they are engaged in business
activity since Dowel, LLC is still an entity in good standing; and
(3) all the cases thus far unanimously agree that debtors do
not have to be "currently" engaged in business to qualify for
subchapter V small business relief.
Judge Norton agreed with the UST. She held that the Thurmons were
not as a matter of fact or law "engaged in commercial or business
activities" on the day they filed bankruptcy because they had in
fact sold the business with no intent to return to it and were
otherwise not active or involved in any commercial or business
activities. The judge further explained that keeping the empty
shell of the former business entity open with the Missouri
Secretary of State's office does not render them "engaged" in
business activities, either.
Judge Norton, however, overruled the UST's objection to the
confirmation of the Thurmons' consensual plan.
The UST had argued that the plan is not confirmable because it is
not accompanied by a disclosure statement and does not provide for
payment of UST fees, as would be required in a nonsubchapter V
chapter 11 case.
Judge Norton, however, found that the requirement to file a
disclosure statement has either been waived or is not applicable
under the unusual circumstances of the case. The judge also found
that, with the agreement of the parties to immediately proceed to
confirmation, the applicable requirements of Section 1129(a) of the
Bankruptcy Code are otherwise met, subject to the requirement that
the Thumons include language in the order of confirmation to make
the plan compliant with Section 1129(a)(12).
Judge Norton held that the plan itself substantially complies with
section 1125 of the Bankruptcy Code by containing adequate
information. The only "adequate information" within the meaning of
section 1125 that the Thurmons' plan lacks relates to feasibility
and the court accepted a proffer at the hearing related to
feasibility.
"It would make no sense for confirmation of the plan to be delayed
for the filing of a separate disclosure statement when all voting
impaired creditors voted in favor of the plan and no party
requested the court make [section] 1125 applicable, suggesting that
the information in the plan was adequate for the creditors to
determine how to vote," Judge Norton said. "Even if the court
required a disclosure statement at this late date, that would not
necessarily cause the plan to be reballoted. And there is some
limited authority for the proposition that when acceptances or
rejections are not required and are not solicited, a disclosure
statement likewise should not be required."
The Debtors' plan is a consensual plan that all voting classes of
impaired claims have voted to accept.
A full-text copy of Judge Norton's memorandum opinion and order
dated December 8, 2020 is available at https://tinyurl.com/y3ylzzn4
from Leagle.com.
Kevin Lynn Thurmon and Susan Jane Thurmon sought Chapter 11
protection (Bankr. W.D. Mo. Case No. 20-41400) on Aug. 3, 2020. The
Debtors tapped Bradley D. McCormack, Esq., and Michael J. Wambolt,
Esq., at The Sader Law Firm, as counsel.
LIMERICK DINING: Restaurant Hits Chapter 11 Bankruptcy
------------------------------------------------------
Laura Smythe of Philadelphia Business Journal reports that Limerick
Dining Corp., the entity behind the Montgomery County neighborhood
eatery Limerick Diner in Limerick, Pennsylvania, has filed for
Chapter 11 bankruptcy protection amid the Covid-19 pandemic.
Limerick Dining Corp. indicates its principal place of business as
the location of the Limerick Diner at 411 W. Ridge Pike in
Limerick, according to filings in United States Bankruptcy Court
for the Eastern District of Pennsylvania. Limerick Dining Corp. has
both assets and debt valued at $50,000 or less, per court
documents.
Limerick Realty Partners LLC, which denotes its principal place of
business as the same location, has also filed for Chapter 11
bankruptcy protection. That entity similarly has both assets and
debt each valued at $50,000 or less.
The president of both entities is Mark Klein, who has owned and
operated multiple Pennsylvania and New Jersey diners for more than
15 years. His portfolio has included the Pottstown Metro 101 Diner,
Voorhees Diner, South Street Diner and Upper Darby's Llanerch
Diner, which rose to fame when it was featured in the 2012 movie
"Silver Linings Playbook" starring Jennifer Lawrence and Bradley
Cooper.
The recent bankruptcy filings pertain solely to the Limerick Diner
and associated Montco property, said Michael Siddons, the attorney
representing Klein in both bankruptcy protection filings. The
restaurant business operates as its own entity while the real
estate is owned by the separate, related entity of Limerick Realty
Partners, he noted.
Lists of the largest creditors for both entities were not included
in the initial bankruptcy filings and are forthcoming, Siddons
said. The diner has not closed, and the plan is for both entities
to "make a go at reorganization," he added, saying the filings are
ultimately a sign of the times during Covid-19. Siddons anticipates
more of these filings are forthcoming from similar small
businesses.
"The restaurant and bar industry has been particularly hit hard by
Covid and this entity didn't have a blip before Covid," he said.
"... All these shutdowns eviscerated their business and they're
hanging in there trying to make it work."
The 411 W. Ridge Pike property controlled by Limerick Realty
Partners LLC was included in a Dec. 2, 2020 auction arranged by the
Montgomery County Sheriff's office. The auction included dozens of
other Montco properties, including the real estate tied to Lulu
Country Club and the DoubleTree Suites by Hilton Hotel Philadelphia
West, both of which did not sell.
Ultimately, sale of the 411 W. Ridge Pike was stayed, or
temporarily blocked, by the bankruptcy filings that were also
entered into court Dec. 2, 2020 ahead of the auction, Siddons said.
An automatic stay goes into effect anytime a bankruptcy is filed
for, he noted.
"It's not a permanent stop, but it's definitely a powerful tool,"
Siddons added.
He characterized the filing as an "emergency filing." The presiding
bankruptcy court judge granted a motion for an expedited hearing
that will take place Dec. 16, 2020.
The bankruptcy filing effectively blocked Parke Bank, which is a
primary creditor in the bankruptcy filings, from taking control of
the Limerick property, said Parke Bank CEO Vito Pantilione.
The debt that Limerick Dining Corp. and Limerick Realty Partners
LLC owes long predates the Covid-19 pandemic, he added. It takes
about 18 months to lead to the sheriff’s sale alone, Pantilione
said, and that comes after the bank has exhausted all other
options.
"We have some damn good borrowers, some good people having a hard
time," Pantilione noted. "We're trying our best to work with them
to work through the crisis. … But this started way before the
pandemic."
About Limerick Dining Corp.
Limerick Dining Corp. filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
20-14626) on Dec. 2, 2020. The petition was signed by Mark Klein,
president. At the time of the filing, the Debtor was estimated to
have assets and liabilities of less than $50,000. Michael Alan
Siddons, Esq., serves as the Debtor's counsel.
LRGHEALTHCARE: Objections & Pitfalls Await Winning Bidder
---------------------------------------------------------
Bob Sanders of NH Business Review reports that it remains to be
seen whether Concord Hospital will have some competition in its
effort to acquire the bankrupt LRGHealthcare, but whoever prevails
in Wednesday's, December 16, 2020, auction will have to overcome
some 25 objections to the sale filed in the second week of
Decemberby various creditors.
The deadline to submit bids ended 4 p.m. Monday, but an attorney
for LRGH would not reveal the number or name of other bidders by NH
Business Review's deadline.
However, interest was building as more than 50 organizations
expressed interest. A dozen potential bidders signed no disclosure
agreements, and "ctive discussions, including in-depth due
diligence" continued with four of them, according to an update
filed last week by LRGH. There was no notice of an auction
cancellation at deadline.
LRGH, which owns Lakes Regional General Hospital in Laconia and
Franklin Regional Hospital and a number of healthcare affiliates,
filed for Chapter 11 bankruptcy on Oct. 19 with $128 million in
debt, but with Concord Hospital on hand as a "stalking horse"
buyer.
That means that bidders must top Concord Hospital’s $30 million
bid by at least $1.1 million – a "breakup fee" the hospital would
get for sticking its neck out in the acquisition.
Two years ago, Concord Hospital expressed interest in LRGH, as did
a number of other organizations, but all backed out when they
realized the extent of LRGH's debt. The bankruptcy filing was a way
of getting rid of that debt, but creditors have had a lot to say
about that.
Dispute over payments
Objections to the sale by the state and federal governments could
be the most problematic.
The biggest creditor KeyBank, holds a $111 million mortgage on a
loan dating back to 2012 and was refinanced in September 2015, and
it said it expects to get paid from the proceeds of the auction.
The federal Department of Housing and Urban Development, which
guaranteed the loan, was a bit more forceful. In an objection filed
Friday by U.S Attorney Scott Murray, HUD said that LRGH could not
sell its assets free of HUD or KeyBank’s interest.
"While HUD is willing to consent to the sale, HUD's consent is
conditioned on payment of the net proceeds of the sale to the
holder of KeyBank's secured claim at the closing," said the
agency's filing.
But that would mean that there would be no money left over for
everybody else. Indeed, LRGH’s cash collateral would sink to as
low as $1.26 million in January 2021, according to a budget update
filed at the beginning of last week. Its biweekly payroll alone
costs more than $3.2 million. (That cash collateral does not
include the $3.7 million LRGH received from the state's Covid-19
Provider Relief Fund, since it still isn’t known if that is a
grant or a loan.)
The good news is the company's budget is on target for the last
week of November, and LRGH has performed $3.3 million better than
budget over the last six weeks.
Still, New Hampshire Attorney General Gordon MacDonald objected in
another Friday, December 11, 2020, filing, "the proposed sale would
leave the Debtor undercapitalized and likely unable to pay the
State upwards of $10 million owed in connection with a state
program used to fund uncompensated care for individuals."
The state also wants to make sure that its agencies maintain
regulatory control over the hospital, particularly the AG's
Charitable Trust Division, which has to ultimately approve the
transaction. Indeed, hospital mergers are getting increased media
scrutiny across the country, as critics claim that they drive up
medical costs by cutting competition.
Many of LRGH's unsecured creditors objected to the sale as well,
arguing that the "cure amount" (the amount owed to them before the
bankruptcy filing) was off.
Anthem disputed that it is owed nothing, noting there were bound to
be overpayments. AmerisourceBergen Drug Corp., claimed it was owed
more than $370,000, not the $192,000 listed. But all that means
very little, since unsecured creditors get paid pennies on the
dollar if they get anything at all.
Then there are objections of some of LRGH’s affiliates, like The
Wellness Center, which has sites in Laconia and Moultonborough and
provide fitness programs to people with chronic disabilities
The centers operate independently of LRGH yet the condo where the
Laconia center is located is still in LRGH's name. That's because
The Wellness Center borrowed $450,000 to purchase it. The center
paid off the loan in 2012, but it "belatedly" started the process
to transform title. So if LRGH sold off that asset in bankruptcy,
The Wellness Center would be "wiped out," they said.
Claims like these are just a few of the hurdles any bidder will
have to clear even after winning the bid.
Weekly jobless claims rise again in New Hampshire. Nearly 3,000
filed for unemployment benefits in the second week of December
2020.
As the weather cools and the pandemic heats up, unemployment claims
in New Hampshire and the nation are on the rise, according to the
latest report from the U.S. Department of Labor.
Initial unemployment claims in New Hampshire jumped sharply. Some
2,923 were filed in the week ending Dec. 5, 2020, 941 more than the
number the federal government previously reported. It is also up by
615 over the previous week's now-official number, which was revised
upwards. Either way, people are getting laid off at six times
pre-pandemic levels.
Last week’s surge came after a drop in claims in the first week
of December 2020, which followed a more substantial increase the
last week of November 2020.
Perhaps even more disturbing was a very slight uptick in continuing
claims – the first increase since the spring. Some 20,902 Granite
Staters were collecting benefits during the week ending Nov. 28,
2020, 284 more than the number reported the third week of November
2020.
Nationally, unemployment claims rose as well. Some 853,000 new
claims were filed, 141,000 more than the second week of December
2020.
As for the benefits being received by unemployed people, it has now
been 13 weeks since federal government's $300 weekly enhancement
ended. A bipartisan proposal has been put forward in Congress,
supported by the state's congressional delegation, that would
revive that $300 extra payment, and would benefits and eligibility.
The deadline for the lame-duck Congress and president to hammer out
an agreement has been pushed into third week of December 2020.
About LRGHealthcare
LRGHealthcare -- http://www.lrgh.org/-- is a not-for-profit
healthcare charitable trust operating Lakes Region General
Hospital, Franklin Regional Hospital, and numerous other affiliated
medical practices and service programs.
LRGH is a community based acute care facility with a licensed bed
capacity of 137 beds, and FRH is a 25-bed critical access hospital
with an additional 10-bed inpatient psychiatric unit. In 2002,
Lakes Region Hospital Association and Franklin Regional Hospital
Association merged, with the merged entity renamed LRGHealthcare.
LRGHealthcare offers a wide range of medical, surgical, specialty,
diagnostic, and therapeutic services, wellness education, support
groups, and other community outreach services.
LRGHealthcare filed a Chapter 11 petition (Bankr. D.N.H. Case No.
20-10892) on October 19, 2020. The petition was signed by Kevin W.
Donovan, president and chief executive officer. At the time of the
filing, the Debtor estimated to have $100 million to $500 million
in both assets and liabilities.
Judge Bruce A. Harwood oversees the case.
The Debtor tapped Nixon Peabody LLP as counsel; Deloitte
Transactions and Business Analytics LLP and Kaufman, Hall &
Associates, LLC as financial advisors; and Epiq Corporate
Restructuring, LLC as claims, noticing, solicitation, and
administrative agent.
LUCKY STAR-DEER: Kravit Partners Represents Sanford, 8 Others
-------------------------------------------------------------
In the Chapter 11 case of Lucky Star-Deer Park Mezz LLC, the law
firm of Kravit Partners, LLC submitted a verified statement under
Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose
that it is representing the following parties:
a. Sanford Avenue Partner LLC, 34-30 Collins Place, Flushing,
NY 11354;
b. Xizhu Bai, 2 Arbor Fields Ct., Old Westbury, NY 11568;
c. W & L Group Construction Inc., 34-28 Collins Place,
Flushing, New York 11354;
d. Meng Hua Wang, 10 St. Andrews Court, Old Westbury, NY
11568;
e. Zhen En Lin, 133-38 Sanford Avenue, 5F, Flushing, New York
11355;
f. Xing Mei Ni, 133-38 Sanford Avenue, 6F, Flushing, New York
11355;
g. Liang Wen Pan, 133-38 Sanford Avenue, 15D, Flushing, New
York 11355;
h. Hui Lin, 133-38 Sanford Avenue, 15B, Flushing, New York
11355; and
i. Qui Hui Lin, 133-38 Sanford Avenue, 15E, Flushing, New
York 11355.
The Parties may hold claims against the Debtors arising out of
certain agreements, law, or equity specific to the respective
Parties and their relationships with the Debtors. The claims of the
Parties may include, but are not necessarily limited to, secured
claims, unsecured claims, and administrative claims. Each Party is
preparing to state the nature and amount of their claim against the
Debtors in their respective proof of claim, to be filed by the
applicable deadline.
Based upon information provided to KPL by each of Sanford Avenue
Partner LLC, Xizhu Bai, W & L Group Construction Inc., Meng Hua
Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui Lin, and Qui Hui
Lin, attached hereto as Exhibit A is a brief description of the
nature and amount of currently understood disclosable economic
interests of each of the Parties in relation to the Debtors.
Sanford Avenue Partner, LLC
34-30 Collins Place
Flushing, NY 11354
* Nature of Claim: Purchase of Note/ Mortgage Loan/ Guaranty
* Amount: Approximately $40 Million
Xizhu Bai
2 Arbor Fields Ct.
Old Westbury, NY 11568
* Nature of Claim: Judgments/Purchase Agreements/Settlement
Agreement
* Amount: Unknown at this time
W & L Group Construction Inc.
34-28 Collins Place
Flushing, New York 11354
* Nature of Claim: Work Performed/Loan/Construction Lien/Guaranty
* Amount: Unknown at this time
Meng Hua Wang
10 St. Andrews Court
Old Westbury, NY 11568
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Zhen En Lin
133-38 Sanford Avenue, 5F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Xing Mei Ni
133-38 Sanford Avenue, 6F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Liang Wen Pan
133-38 Sanford Avenue, 15D
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Hui Lin
133-38 Sanford Avenue, 15B
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Qui Hui Lin
133-38 Sanford Avenue, 15E
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
The pertinent facts and circumstances in connection with the
engagement of KPL is that each Party has separately requested KPL
to serve as its counsel in connection with these chapter 11 cases.
At the time of the engagement of KPL by the Parties, KPL did not
have any claims against the Debtors or interests in the Debtors.
The information contained herein is based upon information provided
by Sanford Avenue Partner LLC, Xizhu Bai, W & L Group Construction
Inc., Meng Hua Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui
Lin, and/or Qui Hui Lin, respectively, to KPL and is provided for
the purposes of complying with Bankruptcy Rule 2019 and is not
intended for any other use or purpose, and is subject to change.
KPL reserves the right to amend this Verified Statement as may be
necessary in accordance with the requirements set forth in
Bankruptcy Rule 2019. The undersigned hereby verifies that this
Verified Statement is true and accurate to the best of the
undersigned's knowledge and belief.
The Firm can be reached at:
KRAVIT PARTNERS, LLC
Margarita Y. Ginzburg, Esq.
79 Madison Avenue, 2nd Floor
New York, NY 10016
Tel: 212-252-0550
Email: mginzburg@kravit.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3qWaphP
About Lucky Star-Deer Park LLC
Lucky Star-Deer Park, LLC is a single asset real estate as defined
in 11 U.S.C. Section 101(51B) based in Flushing, N.Y.
Lucky Star-Deer Park sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-73301) on Oct. 30,
2020. Myint J. Kyaw, the company's manager, signed the petition.
At the time of the filing, the Debtor had estimated assets of less
than $50,000 and liabilities of between $100,001 and $500,000.
Rosen & Kantrow, PLLC is the Debtor's legal counsel.
MAGNOLIA LANE: Wants Solicitation Period Extended Thru Feb. 5
-------------------------------------------------------------
Magnolia Lane Condominium Association, Inc. requests the U.S.
Bankruptcy Court for the Southern District of Florida, Miami
Division, to extend the period during which the Debtor has the
exclusive right to solicit acceptances of a Chapter 11 exit plan to
February 5, 2021.
Magnolia Lane said it needs more time to negotiate with creditors,
litigate claims, and amend a plan and disclosure statement, and
solicit acceptances.
"Debtor and Creditors have been negotiating, and there are several
impaired classes who would vote for the plan as is, but in a few
other cases, litigation is ongoing. In a few cases, the litigation
is troublesome, thus additional time is needed due to the continued
litigation," Magnolia Lane said.
The Court previously granted an extension of the plan until
November 9, 2020, and the exclusive solicitation period to January
6, 2021. The Debtor filed an amended plan and disclosure statement
on November 9, 2020, and the disclosure hearing was set for
December 14.
A hearing on the request to extend the exclusivity period was also
set for December 14.
About Magnolia Lane Condominium Association
Based in Miami, Fla., Magnolia Lane Condominium Association, Inc.
filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 19-24437) on
October 28, 2019.
In the petition signed by Mercedes Rodriguez, vice president, the
Debtor was estimated to have $100,000 to $500,000 in assets and $1
million to $10 million in liabilities.
Judge Laurel M. Isicoff oversees the case. The Debtor has tapped
John Paul Arcia, P.A., as its bankruptcy counsel; Florida Property
Management Solutions, Inc., as its property manager; and Preferred
Accounting Services and Kapila Mukamal, LLP as its accountants.
On September 11, 2020, Magnolia Lane Condominium Association filed
with the Bankruptcy Court a Disclosure Statement and Plan of
Reorganization dated July 31, 2020. General unsecured creditors
are classified in Class Four and Class Five and will receive a
distribution of 10% of their allowed claims in 60 equal monthly
installments, to be distributed from cash flow, reserves, and
Special Assessments paid by unit owners. Secured Creditors are
classified in Class Three and shall receive a distribution of 31%
of their allowed claims, to be distributed from cash flow,
reserves, and Special Assessments paid by unit owners.
MALLINCKRODT PLC: Bankruptcy Stays ALS Drug Securities Class Action
-------------------------------------------------------------------
Brian Flood of Bloomberg Law reports that a securities class action
alleging Mallinckrodt Public Limited Co. and its top officers
failed to disclose problems with a drug for amyotrophic lateral
sclerosis will be put on hold due to the company's bankruptcy
proceedings, a federal court in New Jersey said Thursday.
The pharmaceutical giant allegedly failed to disclose safety
concerns about the injectable drug H.P. Acthar Gel, and accordingly
overstated its viability as an ALS treatment. When the company
announced it was discontinuing phase 2B trials of the drug in July
2019, its stock price fell 7.8%, the plaintiffs claimed.
Mallinckrodt filed for bankruptcy in October 2020.
About Mallinckdrodt PLC
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.
MEADE INSTRUMENTS: Fair Harbor Buying Proof of Claim for $13.5K
---------------------------------------------------------------
Meade Instruments Corp. asks the U.S. Bankruptcy Court for the
Central District of California to authorize the sale of its General
Unsecured Proof of Claim Number 0000010085 filed in the Tuesday
Morning Corp.'s Chapter 11 Bankruptcy filed in the U.S. Bankruptcy
Court for the Northern District of Texas bearing case number
20-31476 in the amount of $16,451, to Fair Harbor Capital for a
cash payment of $13,490.
On June 2, 2020, the Debtor filed the Proof of Claim. On Nov. 19,
2020, the Debtor received an offer from Fair Harbor to purchase the
Proof of Claim for the Purchase Price on the terms of their Claim
Purchase Agreement. The Purchase Price is approximately 82% of the
Claim Amount.
Due to factors normally attendant to large chapter 11 cases it is
unknown when and how much the Debtor will be paid (or not paid)
upon its Claim. Rather than wait an undeterminable length of time
for the Tuesday Morning bankruptcy to distribute an undeterminable
amount of funds, the Debtor agreed to sell the Proof of Claim to
Fair Harbor for the Sale Amount.
The Debtor does not believe that the sale will result in an adverse
tax consequence to the bankruptcy estate. It asks the entry of an
order approving the private sale of the Proof of Claim to Fair
Harbor for the Sale Amount.
Absent any objection to the Motion, the Debtor asks that the 14-day
stay under Fed. R. Bankr. P. 6004(h) be waived so that the parties
may quickly close the sale.
A copy of the Contract is available at https://tinyurl.com/y3wfm844
from PacerMonitor.com free of charge.
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.
MEDICAL SIMULATION: Unsecured Creditors Will Get 38% in Plan
------------------------------------------------------------
Medical Simulation Corporation filed an Amended Plan of Liquidation
and a corresponding Disclosure Statement on December 10, 2020.
Brett Enlow is a former contractor of the Debtor. Mr. Enlow filed a
Proof of Claim asserting a claim against the estate in the amount
of $38,572 for alleged non-payment of invoices. The Debtor has
filed an objection to Mr. Enlow's Claim. Mr. Enlow has filed a
response to the objection to his Claim. The matter is set for trial
to occur in December 2020. If the Debtor prevails a claim of
$38,572 would be removed from the claim register. As a result,
general unsecured creditors holding Allowed Claims would receive an
increased distribution. Enlows' Claim represents less than 1% of
the general unsecured creditor Claims.
Herb von Winckelmann is a former employee of the Debtor. Mr. von
Winckelmann filed a Proof of Claim asserting an unsecured Claim in
the amount of $100,143.81 for unpaid performance bonus and unpaid
paid time off. The Debtor filed an objection to Mr. von
Winckelmann's Claim. As a result of the objection Mr. von
Winckelmann withdrew his Claim against the bankruptcy estate. As a
result, general unsecured creditors holding Allowed Claims will
receive an increased distribution. Mr. von Winckelmann Claim
represents less than 1% of the general unsecured creditor Claims.
Unlike with the Liquidating Trust, the Chapter 7 Trustee would take
a percentage of all revenues received, which would diminish any
distribution to creditors. The Debtor has an estimated asset value
of $5,446,344. Assuming an estate of $5,446,344, a Chapter 7
trustee would be paid $186,640.32. Legal fees in a Chapter 7 are
projected to be $55,000. The Chapter 7 trustee would have to
satisfy Chapter 11 administrative Claims projected to be $60,000.
The Chapter 7 trustee would then pay priority Claims in the
approximate amount of $80,496.66. After the payment of these
amounts, there would remain an estate of $5,064,207 for
distribution to Class 2 general unsecured creditors. Assuming
allowed claims of approximately $13,680,657, Class 2 claimants
would receive a Pro Rata distribution of approximately 37%.
Under the Plan as proposed, assuming an estimated asset value of
$5,446,344, the Liquidating Trustee is paid hourly as opposed to
commission based. Accordingly, it is projected a Liquidating
Trustee would incur fees and costs of $10,000. Legal fees are
projected to be $45,000. The reason for the reduction in legal
fees is because the Liquidating Trustee is proposing to hire
counsel who already has experience and knowledge with the case. The
Liquidating Trustee would have to satisfy Chapter 11 administrative
Claims projected to be $60,000. The Liquidating Trustee would then
pay priority Claims in the approximate amount of $80,496.66. After
the payment of these amounts, there would remain an estate of
$5,064,207.10 for distribution to Class 2 general unsecured
creditors. Assuming allowed claims of approximately $13,680,657,
Class 2 claimants would receive a Pro Rata distribution of
approximately 38%.
A full-text copy of the Amended Liquidating Plan dated December 10,
2020, is available at https://bit.ly/37XrteH from PacerMonitor.com
at no charge.
The Debtor is represented by:
WADSWORTH GARBER WARNER AND CONRARDY, P.C.
Aaron A. Garber, #36099
2580 W Main Street, Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Fax: 303-296-7600
Email: agarber@wgwc-law.com
About Medical Simulation Corp.
Medical Simulation Corp., a manufacturer of medical equipment and
supplies, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. Colo. Case No. 19-20101) on Nov. 22, 2019. 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. The case is assigned to Judge Elizabeth E. Brown.
MICHAEL CHRIS WOLD: Court Confirms Chapter 11 Plan
--------------------------------------------------
In the case captioned In re: MICHAEL CHRIS WOLD, PRISCILLA ARDINE
WOLD, Chapter 11 Debtor(s), Case No. 20-01087-FPC11 (Bankr. E.D.
Wash.), Judge Frederick P. Corbit confirmed the Debtors' Second
Amended Chapter 11 Plan of Reorganization.
The debtors' Second Amended Chapter 11 Plan was filed on October
12, 2020. The Plan pays priority creditors in full and pays
general unsecured creditors 12% over the term of the Plan. In
contrast, after deducting costs of sale, the Debtors believe there
would be a 10.6% distribution to unsecured creditors in a Chapter
7.
On December 3, 2020, Judge Corbit found that the debtors, as
proponents of the Plan, have met their burden of proving each of
the elements sections 1129(a) and 1129(b) of the Bankruptcy Code by
a preponderance of the evidence, which is the applicable
evidentiary standard for confirmation of the Plan.
A full-text copy of Judge Corbit's findings of fact and conclusions
of law dated December 8, 2020 is available at
https://tinyurl.com/yxpwwt3v from Leagle.com.
Michael Chris Wold and Priscilla Ardine Wold are debtors in a
Chapter 11 case (Bankr. E.D. Wash. Case No. 20-01087). Geoff
Groshong serves as Subchapter V Trustee.
MICHAEL GALMOR: Trustee Selling 132-Acre Wheeler Land for $66K
--------------------------------------------------------------
Kent Ries, the Trustee of Michael Stephen Galmor and Galmor's/G&G
Steam Service, Inc., and the Liquidator the Galmor Family Limited
Partnership ("GFLP"), asks the U.S. Bankruptcy Court for the
Northern District of Texas to authorize the sale of the land
situated in the County of Wheeler, Texas, described as a 132.7-acre
tract of land out of Section 4, Block A-8, H. & G.N. Ry. Co.
Survey, also known as 132.7 ac in Sec 4, Blk A-8, H&GN, Wheeler
County, Texas, to Dennis Smock for $66,350, subject to higher and
better offers.
Included among the GFLP real property is the Pit Place Property.
The Trustee has received the offer of Dennis Smock to purchase the
Pit Place Property for the price of $66,350. He believes the offer
represents a fair value of the Pit Place Property. The Pit Place
Property was listed for sale by the Trustee's broker for $500/acre
for the 133-acre tract, a total of $66,350. Other than property
taxes, the Trustee is not aware of any liens on the Pit Place
Property.
The Trustee asks authority execute all documents and instruments
necessary to effectuate the purposes and intent of the Motion. He
represents that the sale as proposed is a bona fide sale to a good
faith purchaser for value. He believes the sale, as proposed, is
in the best interest of all creditors of the estates and should be
approved.
In order to maximize the liquidation value of property of the
estate, the Trustee will sell the Pit Place Property to the highest
bidder. Accordingly, he has developed the following provisions
governing the sale of the Pit Place Property in the event competing
bids are received:
A. In the event the Trustee receives one or more competing
bids, in writing, from one or more parties, a telephonic auction
will be held among all interested bidders.
B. A competing bid must be in writing, in an amount of at
least $66,350 and served upon the Trustee no later than 4:30 p.m.
on Jan. 4, 2021, at the office of Kent Ries, 2700 S. Western St.,
Suite 300, Amarillo, Texas. A good faith earnest money in the
amount of $5,000 must accompany the competing bid.
C. In the event Trustee receives more than one or more
competing bids in a timely manner, a telephonic auction of the Pit
Place Property will be held at 10:00 a.m. on Jan. 11, 2021.
D. In order to participate in the telephonic auction, an
interested bidder must have given timely written notice of a
competing bid, have deposited $5,000 with the Trustee and have
specified the telephone number at which bidder may be reached for
the auction. The bidding will be in increments of, at least,
$3,000.
E. Any competing bidder must provide the Trustee with evidence
of the financial resources to fund the closing of the proposed
purchase.
F. The highest bidder at the telephonic auction will be
awarded the Pit Place Property and closing of the sale of the Pit
Place Property to the highest bidder will occur within 15 days from
Court approval. In the event the highest bidder is unable to close
as provided herein such bidder will forfeit its earnest money
deposit and the Trustee may, in his sole discretion, sell the Pit
Place Property to the next highest bidder or re-notice the entire
sale.
G. The good faith earnest money deposit will be fully
refundable to all unsuccessful bidders and will be applied to the
purchase price of the successful bidder.
Finally, the Trustee asks that the 14-day stay requirement pursuant
to F.R.B.P. 6004(h) be waived.
The Objection Deadline is Jan. 1, 2021 at 4:00 p.m.
A copy of the Contract is available at https://tinyurl.com/y5vvxl4s
from PacerMonitor.com free of charge.
Michael Stephen Galmor owns and manages Galmor's/G&G Steam Service,
Inc. of Shamrock, Texas. He also raises cattle in his individual
capacity. Michael Stephen Galmor sought Chapter 11 protection
(Bankr. N.D. Tex. Case No. 18-20209) on June 19, 2018. The Debtor
tapped Max Ralph Tarbox, Esq., at Tarbox Law, P.C. as counsel.
MYINT KYAW: Kravit Partners Represents Sanford, 8 Others
--------------------------------------------------------
In the Chapter 11 case of MYINT KYAW a/k/a Jeffrey Wu, the law firm
of Kravit Partners, LLC submitted a verified statement under Rule
2019 of the Federal Rules of Bankruptcy Procedure, to disclose that
it is representing the following parties:
a. Sanford Avenue Partner LLC, 34-30 Collins Place, Flushing,
NY 11354;
b. Xizhu Bai, 2 Arbor Fields Ct., Old Westbury, NY 11568;
c. W & L Group Construction Inc., 34-28 Collins Place,
Flushing, New York 11354;
d. Meng Hua Wang, 10 St. Andrews Court, Old Westbury, NY
11568;
e. Zhen En Lin, 133-38 Sanford Avenue, 5F, Flushing, New York
11355;
f. Xing Mei Ni, 133-38 Sanford Avenue, 6F, Flushing, New York
11355;
g. Liang Wen Pan, 133-38 Sanford Avenue, 15D, Flushing, New
York 11355;
h. Hui Lin, 133-38 Sanford Avenue, 15B, Flushing, New York
11355; and
i. Qui Hui Lin, 133-38 Sanford Avenue, 15E, Flushing, New
York 11355.
The Parties may hold claims against the Debtors arising out of
certain agreements, law, or equity specific to the respective
Parties and their relationships with the Debtors. The claims of the
Parties may include, but are not necessarily limited to, secured
claims, unsecured claims, and administrative claims. Each Party is
preparing to state the nature and amount of their claim against the
Debtors in their respective proof of claim, to be filed by the
applicable deadline.
Based upon information provided to KPL by each of Sanford Avenue
Partner LLC, Xizhu Bai, W & L Group Construction Inc., Meng Hua
Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui Lin, and Qui Hui
Lin, attached hereto as Exhibit A is a brief description of the
nature and amount of currently understood disclosable economic
interests of each of the Parties in relation to the Debtors.
Sanford Avenue Partner, LLC
34-30 Collins Place
Flushing, NY 11354
* Nature of Claim: Purchase of Note/ Mortgage Loan/ Guaranty
* Amount: Approximately $40 Million
Xizhu Bai
2 Arbor Fields Ct.
Old Westbury, NY 11568
* Nature of Claim: Judgments/Purchase Agreements/Settlement
Agreement
* Amount: Unknown at this time
W & L Group Construction Inc.
34-28 Collins Place
Flushing, New York 11354
* Nature of Claim: Work Performed/Loan/Construction Lien/Guaranty
* Amount: Unknown at this time
Meng Hua Wang
10 St. Andrews Court
Old Westbury, NY 11568
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Zhen En Lin
133-38 Sanford Avenue, 5F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Xing Mei Ni
133-38 Sanford Avenue, 6F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Liang Wen Pan
133-38 Sanford Avenue, 15D
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Hui Lin
133-38 Sanford Avenue, 15B
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Qui Hui Lin
133-38 Sanford Avenue, 15E
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
The pertinent facts and circumstances in connection with the
engagement of KPL is that each Party has separately requested KPL
to serve as its counsel in connection with these chapter 11 cases.
At the time of the engagement of KPL by the Parties, KPL did not
have any claims against the Debtors or interests in the Debtors.
The information contained herein is based upon information provided
by Sanford Avenue Partner LLC, Xizhu Bai, W & L Group Construction
Inc., Meng Hua Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui
Lin, and/or Qui Hui Lin, respectively, to KPL and is provided for
the purposes of complying with Bankruptcy Rule 2019 and is not
intended for any other use or purpose, and is subject to change.
KPL reserves the right to amend this Verified Statement as may be
necessary in accordance with the requirements set forth in
Bankruptcy Rule 2019. The undersigned hereby verifies that this
Verified Statement is true and accurate to the best of the
undersigned's knowledge and belief.
The Firm can be reached at:
KRAVIT PARTNERS, LLC
Margarita Y. Ginzburg, Esq.
79 Madison Avenue, 2nd Floor
New York, NY 10016
Tel: 212-252-0550
Email: mginzburg@kravit.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3mgWSxL
The Chapter 11 case is In re MYINT KYAW a/k/a JEFFREY WU (Bankr.
E.D.N.Y. Case No. 20-72407-reg).
NABORS INDUSTRIES: Egan-Jones Lowers Sr. Unsecured Ratings to CCC-
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Nabors Industries Ltd. to CCC- from CCC.
Nabors Industries is an American global oil and gas drilling
contractor based and headquartered in Houston, Texas.
NACASHA LECA RUFFIN: Branch Buying Atlanta Property for $665K
-------------------------------------------------------------
Nacasha Leca Ruffin asks the U.S. Bankruptcy Court for the Northern
District of Georgia to authorize the sale of the real property
located at 2650 Cascade Road, Atlanta, Georgia to Courtney Branch
for $665,000.
As shown in the Debtor's schedules, two creditors assert liens on
the Property: (i) Republic Bank; and (ii) (ACE) Access Capital for
Entrepreneurs.
The Debtor asks entry of an order authorizing her to sell the
Property on the terms set forth in the Agreement for Purchase and
Sale of Real Estate, free and clear of liens, claims, and
encumbrances, with all liens or security interests of the Secured
Creditors attaching to the proceeds of the sale.
As shown in the Purchase Agreement, the Debtor proposes to sell the
Property for $665,000. The Debtor submits that the proposed
purchase price amounts to fair market value for the Property. The
closing is scheduled for Dec. 21, 2020.
The Debtor has determined that selling the Property pursuant to the
Purchase Agreement is in the best interests of the estate and its
creditors. The sale will help maximize the value of the Debtor's
bankruptcy estate for the benefit of creditors. The Property is a
rental property that is not generating a profit for the bankruptcy
estate. The Debtor has received an offer equivalent to the fair
market value. As such, she believes that she has demonstrated a
sound business justification for the relief requested in the
Motion.
Finally, the Debtor asks that the order granting the Motion be
effective immediately by providing that the 14-day stays applicable
under Rule 6004(h) of the Bankruptcy Rules be waived.
A copy of the Purchase Agreement is available at
https://tinyurl.com/yyd6j7uc from PacerMonitor.com free of charge.
Nacasha Leca Ruffin sought Chapter 11 protection (Bankr. N.D. Ga.
Case No. 20-60067) on Jan. 2, 2020. The Debtor tapped William A.
Rountree, Esq., at Rountree Leitman & Klein, LLC as counsel.
NIAGARA FRONTIER COUNTRY: Status Conference Continued to Feb. 18
----------------------------------------------------------------
A status conference among Niagara Frontier Country Club, Inc., its
counsel and the United States Trustee has been adjourned to Feb.
18, 2021, at 3:00 p.m. in Buffalo.
The conference was previously set for Nov. 16.
The adjournment follows a hearing Nov. 4 on the Debtor's motions to
use cash collateral and to provide adequate protection.
The U.S. Bankruptcy Court for the Western District of New York
previously authorized Niagara Frontier Country Club to use cash
collateral on interim basis as set forth in the budget.
The court has been entering Interim Orders authorizing the
uninterrupted use of cash collateral pending a Final Hearing since
August 2018.
In October 2020, the counsel for the Debtor and counsel for M&T
Bank requested the court to grant a further Interim Order and to
further continue the Final Hearing. The court determined that a
further interim relief is necessary to avoid immediate and
irreparable harm to the Debtor and its estate.
The Interim Cash Collateral Order grants M&T Bank and Richard Elia
roll-over or replacement liens granting security to the same
extent, in the same priority, and with respect to the same assets,
as served as collateral for the Debtor's Prepetition Indebtedness,
to the extent of Cash Collateral actually used during the pendency
of the Chapter 11 case, without the need of any further public
filing or other recordation to perfect such liens or security
interests.
About Niagara Frontier Country Club Inc.
Niagara Frontier Country Club, Inc. --
http://niagarafrontiergolfclub.com/-- is a private,
membership-based golf club located in Youngstown, New York. The
18-hole Niagara Frontier course at the Niagara Frontier Country
Club facility features 6,236 yards of golf from the longest tees
for a par of 70.
Niagara Frontier Country Club sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D.N.Y. Case No. 18-11695) on Aug. 30,
2018. In the petition signed by Henry Sandonato, president, the
Debtor was estimated to have assets of $1 million to $10 million
and liabilities of $1 million to $10 million.
Judge Michael J. Kaplan oversees the case.
OUTFRONT MEDIA: Egan-Jones Lowers Senior Unsecured Ratings to B-
----------------------------------------------------------------
Egan-Jones Ratings Company, on November 25, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Outfront Media Inc. to B- from B.
Headquartered in New York, Outfront Media, Inc. is one of the
largest outdoor media companies.
PARK SEVEN: Gets OK to Hire Allen Barnes as Legal Counsel
---------------------------------------------------------
Park Seven Holdings, LLC received approval from the U.S. Bankruptcy
Court for the District of Arizona to hire Allen Barnes & Jones, PLC
as its legal counsel.
The firm's services will include:
a. advising the Debtor regarding its reorganization;
b. representing the Debtor in negotiations involving secured
and unsecured creditors;
c. representing the Debtor at court hearings; and
d. preparing legal papers necessary to assist in the Debtor's
reorganization.
Allen Barnes' hourly rates are:
Hilary L. Barnes, Member $425
Philip J. Giles, Member $325
Cody D. Vandewerker, Associate $300
David B. Nelson, Associate $285
Paralegals and Law Clerks $115 - $195
Allen Barnes received a retainer in the amount of $26,717 from Park
Seven Operations, LLC.
Hilary Barnes, Esq., a member of Allen Barnes, disclosed in court
filings that the firm is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code and has no connection with
the creditors or any other interested party.
The firm can be reached through:
Hilary L. Barnes, Esq.
Allen Barnes & Jones, PLC
1850 N. Central Avenue, Suite 1150
Phoenix, AZ 85004
Tel: 602-256-6000
Email: hbarnes@allenbarneslaw.com
About Park Seven Holdings
Park Seven Holdings, LLC filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
20-13014) on Dec. 2, 2020. The petition was signed by Jean
Gonzvar, managing member of Jema Capital, LLC, manager. At the
time of the filing, the Debtor estimated $1 million to $10 million
in both assets and liabilities. Hilary L. Barnes, Esq., at Allen
Barnes & Jones, PLC, represents the Debtor as counsel.
PENNSYLVANIA REIT: Successfully Exits Chapter 11 Bankruptcy
------------------------------------------------------------
PREIT (NYSE: PEI), a leading operator of diverse retail and
experiential destinations, on Dec. 11, 2020, announced it has
successfully completed its financial restructuring and emerged from
Chapter 11 following an expedited process.
Consistent with previous announcements, PREIT now has access to up
to $130 million of new capital to support its operations and
continue advancing its strategic priorities. In addition to
recapitalizing its business, PREIT’s debt maturity schedule has
been extended, providing the Company with enhanced financial
flexibility.
Throughout the restructuring process, PREIT has continued
operations as usual and met all obligations to tenants, suppliers
and the communities in which it operates. In addition, suppliers
and other trade creditors and business partners were unimpaired,
and all suppliers and employees have been, and will continue to be,
paid in full. The Company’s common stock will continue to trade
on the New York Stock Exchange (NYSE) under the same ticker symbol
PEI. Moving forward, PREIT will continue to offer distinctive
retail and experiential destinations as it moves to transform its
portfolio of bullseye locations in high barrier-to-entry markets
into multi-use sustainable districts incorporating an array of new
uses, while prioritizing the health and safety of its employees,
partners, customers and communities.
"We have significantly strengthened the Company thanks to the
overwhelming support of our financial stakeholders, as well as our
employees, customers, communities and business partners,” said
Joseph F. Coradino, CEO of PREIT. “Having quickly and efficiently
completed our financial restructuring, PREIT is now a more
resilient company with additional resources and financial
flexibility to continue delivering terrific experiences for
consumers and outstanding service for our retail partners. PREIT
has a history of being a first-mover in adapting to new trends in
retail and will continue to stay ahead of the emerging concepts and
uses across our portfolio."
Coradino continued, "On behalf of all of us at PREIT, I thank our
tenants, suppliers, and other business partners for their support
throughout this process. I am also deeply grateful to our dedicated
employees for their hard work and unwavering commitment to working
safely, delivering great experiences and executing our winning
strategy."
About PREIT
Pennsylvania Real Estate Investment Trust (NYSE:PEI) is a publicly
traded real estate investment trust that owns and manages
innovative properties at the forefront of shaping consumer
experiences through the built environment. PREIT's robust portfolio
of carefully curated retail and lifestyle offerings mixed with
destination dining and entertainment experiences are located
primarily in densely-populated, high barrier-to-entry markets with
tremendous opportunity to create vibrant multi-use destinations. On
the Web: http://www.preit.com/
PREIT and certain of its affiliates filed a voluntary Chapter 11
petition in the United States Bankruptcy Court for the District of
Delaware (Bankr. D. Del. Case No. 20-12737) on Nov. 1, 2020, to
implement its prepackaged Chapter 11 plan.
The Debtors have tapped DLA Piper LLP (US) LLP and Wachtell,
Lipton, Rosen & Katz as their legal counsel, and PJT Partners LP as
their financial advisor. PREIT's claims agent is Prime Clerk,
maintaining the page https://cases.primeclerk.com/PREIT
PETER SAMUEL ROSEN: Selling 1/3 Tallahassee Land Interest for $75K
------------------------------------------------------------------
Peter Samuel Rosen asks the U.S. Bankruptcy Court for the Southern
District of Florida to authorize his sale of his one-third interest
in a parcel of land in Tallahassee, Florida, and more accurately
described as 25 1N 1W .547 AC in 1½ of NW ¼ OR 874-1141;
1360/2362; 1484;543 550; OR 1538/2017; 1910/2369; 1928/2334, free
and clear of all liens, to New Sun Properties, LLC for $75,000.
The Debtor's brother, Michael Rosen, and his sister-in-law, Kira
Rosen are each asking to sell their one-third interest in the
Property along with the one-third owned by the Debtor. The value
of the Debtor's one-third interest in the Property was reflected at
$20,000 in the Debtor's Schedules. The Debtor's one-third value is
based on the Leon County Property Appraiser valuation of the
Property at $60,000.
The sale price of the Property is $75,000 with the proceeds to be
divided equally between the Debtor, his brother, and his
sister-in-law. The Debtor does not require the Property, and along
with his brother and sister-in-law, desires to sell the Property to
New Sun on the terms of their Vacant Land Contract.
The Property is not subject to any mortgages. The Debtor is
subject to various judgments which cloud title on the Property
because of their being recorded in Leon County; however, none of
these judgments are specifically related to, or resulting from, the
subject property. The various judgments are outlined in the Title
Search (Exhibit C).
Proper service and the requisite notice pursuant to Rules 2002 and
6004 will be provided to all judgment creditors. Those creditors
who have recorded their judgments in Leon County have an interest
in the proceeds of any sale of the Property. However, should the
Court grant the Motion, any and all proceeds from the sale of the
Property will not be retained by Debtor, but will be held in Trust
by the Van Horn Law Group, P.A., and will be used to supplement
plan payments to creditors, including judgment creditors, through
the Debtor’s yet filed Plan of Reorganization. Therefore, any
judgment creditor that may have a claim to the proceeds will be
able to assert same through the Debtor's Chapter 11 case.
The exact closing date will be determined subject to the Court's
Order and the requisite notice and service. However, the closing
will likely occur within approximately two weeks after entry of the
Court's Order. The sale of the Property is subject to Court
approval.
The Debtor's judgments are clouding title to the Property and
without satisfactions of judgment for each, the Title Company will
not issue a policy without an Order from the Court allowing the
Property to be sold free and clear of all liens. As a result, the
Debtor is asking entry of an Order approving the sale of the
Property Free and Clear of All Liens.
A copy of the Contract is available at https://tinyurl.com/y2nj9wt6
from PacerMonitor.com free of charge.
Peter Samuel Rosen filed for voluntary relief under Chapter 13 of
the Bankruptcy Code on May 13, 2020. The case was converted to a
case under Chapter 11 (Bankr. S.D. Fla. Case No. 20-15249-SMG) on
June 22, 2020.
PROCRETE READY MIX: Agreed Final Cash Collateral Order Issued
-------------------------------------------------------------
Judge Edward Morris on December 14 signed on an Agreed Final Order
authorizing Procrete Ready Mix, LLC's use of cash collateral.
Procrete Ready Mix, LLC and Commercial Credit Group, Inc.,
previously advised the U.S. Bankruptcy Court for the Northern
District of Texas, Fort Worth Division, they have reached an
agreement regarding Procrete's use of Cash Collateral.
As of November 13, 2020, CCG asserts that the Debtor was indebted
to CCG in the combined amount of at least $84,801.59, plus
interest, late fees, attorneys' fees, and costs. The Indebtedness
is evidenced by a Negotiable Promissory Note and Security Agreement
dated June 28, 2019 in the original face amount of $103,530 and
other collateral documentation including CCG's interest noted on
documents of title.
The Debtor's obligations to CCG under the CCG Loan Documents were
originally secured by a perfected security interest in certain
equipment. Prior to the Petition Date, a 2019 Dura-Haul was
foreclosed on by CCG. A 2013 Volvo was involved in an accident and
is currently being held at a third-party repair shop. The parties
agree that the automatic stay is terminated as it relates to the
2013 Volvo, and both the 2013 Volvo and the Insurance Proceeds
constitute CCG's collateral. The Debtor acknowledges that the
security interest in favor of CCG has attached in the Equipment
Collateral and that CCG perfected its interest in the Equipment
Collateral by having its liens in the Equipment Collateral
identified in the certificates of title for the 2013 Volvo and by
currently holding the certificate of title for the 2013 Volvo. The
Debtor agrees that it will segregate the Insurance Proceeds and
that it will not use, transfer, or spend the Insurance Proceeds
without a further written agreement with CCG or a final order by
the Court.
In addition to being secured by the Equipment Collateral, the
parties also agree that the obligations owing to CCG by the Debtor
under the CCG Loan Documents are secured by a valid and perfected
blanket security interest in any and all accounts, accounts
receivable, chattel paper, contract rights, documents, equipment,
fixtures, general intangibles, goods, instruments, inventory,
securities, deposit accounts, investment property and all other
property.
To provide adequate protection for the interest of CCG in the
Collateral, as well as the claims which may be asserted in the
Collateral by Ash Grove Cement Company and the Small Business
Administration, the Debtor consents to the creation of and grants
to CCG, Ash Grove and the SBA, a post-petition replacement lien
upon all types of property and assets of the Debtor in which CCG,
Ash Grove and the SBA has possessed a security interest
pre-petition, including but not limited to, all goods, inventory,
equipment, accounts, chattel paper, contract rights, general
intangibles, investment property, securities entitlements and other
personal property now owned or hereafter acquired.
A copy of the Agreed Final Order is available at
https://bit.ly/34cGNTL from PacerMonitor.com.
About Procrete Ready Mix, LLC
Procrete Ready Mix, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 20-43507-elm11) on
November 13, 2020. In the petition signed by Terry Daniels,
managing member, the Debto disclosed up to $500,000 in assets and
up to $10 million in liabilities.
Judge Edward Morris oversees the case.
Eric A. Liepins is the Debtor's counsel.
Lender Commercial Credit Group, Inc., is represented by:
Jarom J. Yates, Esq.
HAYNES AND BOONE, LLP
2323 Victory Ave., Suite 700
Dallas, TX 75219
Tel: 214-651-5000
Fax: 214-651-5940
Email: jarom.yates@haynesboone.com
PUERTO RICO HOSPITAL: Court Won't Reinstate Oversight Board Claim
-----------------------------------------------------------------
A motion to vacate the court's order which granted the debtor's
objection to the Commonwealth of Puerto Rico's proof of claim was
denied by Judge Enrique S. Lamoutte in the case captioned IN RE:
PUERTO RICO HOSPITAL SUPPLY INC, Chapter 11, Debtor, Case No.
19-01022 (Bankr. D.P.R.). The motion was filed by the Special
Claims Committee of the Financial Oversight Management Board
("SCC").
Seeking the avoidance of constructive and fraudulent transfers, the
SCC, as representative for the Commonwealth of Puerto Rico, filed
its Proof of Claim No. 72 on July 8, 2019, for the amount of
$5,613,160.
On May 7, 2020, the debtor filed its objection to the proof of
claim. It argued that the claim was filed without adequate
supporting documentation and that the claimant had failed to
request relief from the automatic stay to timely file the alleged
avoidance actions and was, therefore, legally time barred to do
so.
Upon the claimant's failure to reply, the court granted the
debtor's objection on June 12, 2020.
On August 27, 2020, the SCC sought to vacate the court's order. The
SCC argued that its failure to timely respond was the result of
excusable neglect. It alleged the Covid-19 global pandemic and
associated disruption and disablement of law offices from normal
procedures should be considered by the court to be a "unique or
extraordinary circumstance" worthy of relief under Fed. R. Civ. P.
60(b).
The court found that the SCC failed to reach the demanding standard
of excusable neglect. While the court acknowledged that the
Covid-19 pandemic was beyond the SCC's control and that the sudden
changes in office practices may not have been foreseeable, the
court still held that the Covid-19 pandemic cannot be a
justification for the SCC to forgo its ongoing duty to inquire into
the status of the case.
A full-text copy of Judge Lamoutte's opinion and order dated
December 4, 2020 is available at https://tinyurl.com/y4pud3lo from
Leagle.com.
Attorney for the Debtors:
CHARLES A. CUPRILL P.S.C. LAW OFFICES
356 Fortaleza Street, Second Floor
San Juan, PR 00901
Tel: (787) 977-0515
Fax: (787) 977-0518
E-mail: ccuprill@cuprill.com
About Puerto Rico Hospital Supply
Puerto Rico Hospital Supply, Inc., distributes medical supplies in
Puerto Rico. Customed Inc., founded in 1991, manufactures surgical
appliances and supplies.
Puerto Rico Hospital Supply, Inc. and Customed, Inc., filed
voluntary Chapter 11 petitions (Bankr. D.P.R. Case Nos. 19-01022
and 19-01023) on Feb. 26, 2019. The petitions were signed by Felix
B. Santos, president. The cases are assigned to Judge Enrique S.
Lamoutte Inclan.
At the time of the filing, Puerto Rico Hospital estimated $50
million to $100 million in assets and $10 million to $100 million
in liabilities while Customed, Inc. estimated $10 million to $50
million in both assets and liabilities. Alexis Fuentes
Hernandez, Esq., at Fuentes Law Offices, represents the Debtors.
QUEEN ELIZABETH: Kravit Partners Represents Sanford, 8 Others
-------------------------------------------------------------
In the Chapter 11 case of Queen Elizabeth Realty Corp., the law
firm of Kravit Partners, LLC submitted a verified statement under
Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose
that it is representing the following parties:
a. Sanford Avenue Partner LLC, 34-30 Collins Place, Flushing,
NY 11354;
b. Xizhu Bai, 2 Arbor Fields Ct., Old Westbury, NY 11568;
c. W & L Group Construction Inc., 34-28 Collins Place,
Flushing, New York 11354;
d. Meng Hua Wang, 10 St. Andrews Court, Old Westbury, NY
11568;
e. Zhen En Lin, 133-38 Sanford Avenue, 5F, Flushing, New York
11355;
f. Xing Mei Ni, 133-38 Sanford Avenue, 6F, Flushing, New York
11355;
g. Liang Wen Pan, 133-38 Sanford Avenue, 15D, Flushing, New
York 11355;
h. Hui Lin, 133-38 Sanford Avenue, 15B, Flushing, New York
11355; and
i. Qui Hui Lin, 133-38 Sanford Avenue, 15E, Flushing, New
York 11355.
The Parties may hold claims against the Debtors arising out of
certain agreements, law, or equity specific to the respective
Parties and their relationships with the Debtors. The claims of the
Parties may include, but are not necessarily limited to, secured
claims, unsecured claims, and administrative claims. Each Party is
preparing to state the nature and amount of their claim against the
Debtors in their respective proof of claim, to be filed by the
applicable deadline.
Based upon information provided to KPL by each of Sanford Avenue
Partner LLC, Xizhu Bai, W & L Group Construction Inc., Meng Hua
Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui Lin, and Qui Hui
Lin, attached hereto as Exhibit A is a brief description of the
nature and amount of currently understood disclosable economic
interests of each of the Parties in relation to the Debtors.
Sanford Avenue Partner, LLC
34-30 Collins Place
Flushing, NY 11354
* Nature of Claim: Purchase of Note/ Mortgage Loan/ Guaranty
* Amount: Approximately $40 Million
Xizhu Bai
2 Arbor Fields Ct.
Old Westbury, NY 11568
* Nature of Claim: Judgments/Purchase Agreements/Settlement
Agreement
* Amount: Unknown at this time
W & L Group Construction Inc.
34-28 Collins Place
Flushing, New York 11354
* Nature of Claim: Work Performed/Loan/Construction Lien/Guaranty
* Amount: Unknown at this time
Meng Hua Wang
10 St. Andrews Court
Old Westbury, NY 11568
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Zhen En Lin
133-38 Sanford Avenue, 5F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Xing Mei Ni
133-38 Sanford Avenue, 6F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Liang Wen Pan
133-38 Sanford Avenue, 15D
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Hui Lin
133-38 Sanford Avenue, 15B
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Qui Hui Lin
133-38 Sanford Avenue, 15E
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
The pertinent facts and circumstances in connection with the
engagement of KPL is that each Party has separately requested KPL
to serve as its counsel in connection with these chapter 11 cases.
At the time of the engagement of KPL by the Parties, KPL did not
have any claims against the Debtors or interests in the Debtors.
The information contained herein is based upon information provided
by Sanford Avenue Partner LLC, Xizhu Bai, W & L Group Construction
Inc., Meng Hua Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui
Lin, and/or Qui Hui Lin, respectively, to KPL and is provided for
the purposes of complying with Bankruptcy Rule 2019 and is not
intended for any other use or purpose, and is subject to change.
KPL reserves the right to amend this Verified Statement as may be
necessary in accordance with the requirements set forth in
Bankruptcy Rule 2019. The undersigned hereby verifies that this
Verified Statement is true and accurate to the best of the
undersigned's knowledge and belief.
The Firm can be reached at:
KRAVIT PARTNERS, LLC
Margarita Y. Ginzburg, Esq.
79 Madison Avenue, 2nd Floor
New York, NY 10016
Tel: 212-252-0550
Email: mginzburg@kravit.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/34fuBBF
About Queen Elizabeth Realty Corp.
Queen Elizabeth Realty Corp. is primarily engaged in renting and
leasing real estate properties.
Queen Elizabeth Realty Corp. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 20-73327) on Nov. 3, 2020. At the time of the filing, the
Debtor had estimated assets of less than $50,000 and liabilities of
between $10 million and $50 million. Judge Robert E. Grossman
oversees the case. Rosen & Kantrow, PLLC represents the Debtor.
REMINGTON OUTDOOR: Seeks to Tap B. Riley, NAI Global as Brokers
---------------------------------------------------------------
Remington Outdoor Company, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Northern District of Alabama
to employ B. Riley Real Estate, LLC and NAI Global of New York
City, Inc. as real estate brokers.
The Debtors need consulting and marketing services in connection
with the potential sale of their real properties in Huntsville,
Ala. and Madison, N.C.
Upon the closing of the sale of each property, B. Riley will be
paid one and one-half percent of the gross sale proceeds while NAI
Global will be paid one percent of the gross proceeds.
The brokers will also seek reimbursement for out-of-pocket expenses
incurred.
Michael Jerbich, president of B. Riley, and Jay Olshonsky,
president of NAI Global, disclosed in court filings that the firms
are "disinterested persons" as that term is defined in Section
101(14) of the Bankruptcy Code and do not hold or represent an
interest adverse to the Debtors' estates.
The firms can be reached through:
Michael Jerbich
B. Riley Real Estate, LLC
875 N. Michigan Avenue, Suite 3900
Chicago, IL 60611
Telephone: (312) 894-7621
Email: mjerbich@brileyfin.com
- and –
Jay B. Olshonsky
NAI GLOBAL OF NEW YORK CITY, INC.
717 5th Avenue, 15th Floor
New York, NY 10022
Email: jolshonsky@naiglobal.com
About Remington Outdoor Company
Remington Outdoor Company, Inc. and its affiliates are
manufacturers of firearms, ammunition and related products for
commercial, military and law enforcement customers throughout the
world. They operate seven manufacturing facilities located across
the United States. The companies' principal headquarters are
located in Huntsville, Ala.
Remington Outdoor Company and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala. Lead Case
No. 20-81688) on July 27, 2020. At the time of the filing,
Remington disclosed assets of between $100 million and $500 million
and liabilities of the same range.
Judge Clifton R. Jessup Jr. oversees the cases.
The Debtors tapped O'Melveny & Myers LLP as their bankruptcy
counsel, Burr & Forman LLP as local counsel, M-III Advisory
Partners LP as financial advisor, Ducera Partners LLC as investment
banker, and Prime Clerk LLC as notice, claims and balloting agent.
The U.S. Bankruptcy Administrator for the Northern District of
Alabama appointed a committee of unsecured creditors on Aug. 6,
2020. The committee is represented by Fox Rothschild, LLP and Baker
Donelson Bearman Caldwell & Berkowitz, PC.
ROCKET TRANSPORTATION: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Rocket Transportation, Inc.
27005 Trolley Industrial Dr.
Taylor, MI 48180
Business Description: Rocket Transportation, Inc. is a privately
held company in the general freight trucking
industry.
Chapter 11 Petition Date: December 14, 2020
Court: United States Bankruptcy Court
Eastern District of Michigan
Case No.: 20-52337
Judge: Maria L. Oxholm
Debtor's Counsel: David Ross Ienna, Esq.
JAAFAR LAW GROUP PLLC
1 Parklane Blvd Suite 729 East
Dearborn, MI 48126
Tel: 888-324-7629
Email: david@fairmaxlaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amar Al Hadad, president.
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/FGPSDXQ/Rocket_Transportation_Inc__miebke-20-52337__0001.0.pdf?mcid=tGE4TAMA
RONALD DWAYNE COLLINS: $7.5K Sale of Ford Coachmen to Moore Okayed
------------------------------------------------------------------
Judge Suzanne H. Bauknight of the U.S. Bankruptcy Court for the
Eastern District of Tennessee authorized Ronald Dwayne Collins'
sale of 2004 Ford Coachmen vehicle, VIN #1FDXE45563HB65151, to
Danny Moore for $7,500.
The sale is free and clear of all liens and encumbrances.
Ronald Dwayne Collins sought Chapter 11 protection (Bankr. E.D.
Tenn. Case No. 20-31765) on July 23, 2020. The Debtor tapped
Thomas Tarpy, Esq., as counsel.
RTW RETAILWINDS: $6.1 MM Escrowed Funds Ordered for Release
-----------------------------------------------------------
In the case captioned In re: RTW RETAILWINDS, INC, et al., Chapter
11, Debtors, Case No. 20-18445 (JKS) (Bankr. D.N.J.), John K.
Sherwood granted the debtors' motion to compel the release of
$6,100,000 held in escrow.
The debtors sought the release of $6,100,000 held in escrow at the
closing of the sale of the debtors' e-commerce business to Saadia
Group LLC. At issue is the interpretation of Section 5.9 of the
Asset Purchase Agreement dated August 28, 2020, which provides:
"Standby Letters of Credit. At or prior to Closing, Buyer shall
replace each Standby Letter of Credit set forth on Schedule 5.9 by
either (i) causing the termination, expiration or cancellation and
return of all outstanding Standby Letters of Credit, and/or (ii)
with respect to each such Standby Letter of Credit, the furnishing
to such issuing bank a cash deposit, or at the discretion of such
issuing bank, a backup standby letter of credit satisfactory to the
issuing bank, in an amount equal to 105% of the principal amount of
the applicable Standby Letter(s) of Credit. Buyer acknowledges and
agrees that it shall be solely responsible for ensuring that any
credit support provided pursuant to this Section 5.9 satisfies all
of the credit support provisions of the applicable Transferred
Contract or Assumed Lease to which it relates. Sellers will
cooperate with Buyer in connection with the performance of Buyer's
obligations under this Section 5.9."
Schedule 5.9 of the Purchase Agreement listed these letters of
credit:
Hartford Fire Insurance Co. $1,600,000
The Travelers Indemnity Co. $25,000
American Alternative Insurance Corporation $4,500,000
----------
Total Standby Outstanding $6,125,000
The debtors argued that this is a cash component of the transaction
because once the letters of credit are replaced by Saadia, the
debtors can cancel their existing letters of credit and get back
the cash they have posted as collateral.
Saadia, on the other hand, contended it has no obligation to
replace the letters of credit under the agreement. Relying on the
second sentence of Section 5.9, Saadia insisted that its obligation
to replace letters of credit is limited to Transferred Contracts
and Assumed Liabilities and related letters of credit, if any.
Since there was none of these, Saadia argued that it has no
exposure.
Judge Sherwood, however, noted that Section 2.3 of the Purchase
Agreement sets forth obligations under the Transferred Contracts
and Assumed Leases that were separate from Saadia's obligations
under Section 5.9. The judge also added that the second sentence of
Section 5.9 would have relevance to a transaction where letters of
credit provided credit support for Transferred Contracts or Assumed
Leases being assumed by the bidder -- but not with Saadia.
The judge concluded that, considering the first sentence of Section
5.9, Schedule 5.9 and Section 2.3, it would appear that Saadia
agreed to replace the letters of credit. Judge Sherwood said "The
language makes it clear that the Debtors expected Saadia to replace
the letters of credit attached to Schedule 5.9. This clear
commitment is not conditioned or modified by the unrelated
commitment to provide credit support for Transferred Contracts or
Assumed Leases."
A full-text copy of Judge Sherwood's decision and order dated
December 8, 2020 is available at https://tinyurl.com/y5c34tgj from
Leagle.com.
About RTW Retailwinds
RTW Retailwinds, Inc. [OTC PINK: RTWI], formerly known as New York
& Company, Inc., is a specialty women's omnichannel retailer with a
powerful multi-brand lifestyle platform providing curated fashion
solutions that are versatile, on trend, and stylish at a great
value. The specialty retailer, first incorporated in 1918, has
grown to now operate 378 retail and outlet locations in 32 states
while also growing a substantial eCommerce business. The Company's
portfolio includes branded merchandise from New York & Company,
Fashion to Figure, and Happy x Nature. The Company's branded
merchandise is sold exclusively at its retail locations and online
at http://www.nyandcompany.com/,http://www.fashiontofigure.com/,
http://www.happyxnature.com/,and through its rental subscription
businesses at http://www.nyandcompanycloset.com/and
http://www.fashiontofigurecloset.com/
RTW Retailwinds, Inc. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 20-18445)
on July 13, 2020. The petitions were signed by Sheamus Toal, CEO,
CFO, and treasurer. As of July 13, 2020, the Debtors reported total
assets of $405,356,610 and total liabilities of $449,962,395.
The Honorable John K. Sherwood presides over the cases. Michael D.
Sirota, Esq., Stuart Komrower, Esq., Ryan T. Jareck, Esq., and
Matteo W. Percontino, Esq. Of Cole Schotz P.C. serve as counsel to
the Debtors. Berkeley Research Group, LLC, has been tapped as
financial advisor to the Debtors; B. Riley FBR, Inc. as investment
banker; and Prime Clerk, LLC as claims and noticing agent.
SEADRILL LTD: Forbearance Deal With Creditors Expired Dec. 14
-------------------------------------------------------------
Sam Chambers of Splash247 reports that the forbearance agreements
inked between creditors and John Fredriksen's Seadrill expired on
December 14, 2020, leaving the drilling firm exposed to legal
battles if it fails to make necessary payments on time.
In a release to the Oslo Bors, Seadrill said it continues to
maintain its readiness to carry out a comprehensive restructuring
of its balance sheet. Such a restructuring may involve the use of a
court-supervised process.
Seadrill said it is still engaging in constructive discussions with
its financial stakeholders in relation to potential further
forbearances and the heads of terms of a comprehensive
restructuring of its balance sheet. "Whilst no agreement has been
reached at this point it is expected that potential solutions will
lead to significant equitization of debt which is likely to result
in minimal or no recovery for current shareholders," Seadrill
stated.
Seadrill has been in serious financial trouble for the last three
years. In 2017, it filed for chapter 11 bankruptcy protection. In
June 2020, the company delisted from the New York Stock Exchange as
well as making plans to axe 30% of its staff. Earlier this month
Seadrill Partners, a Seadrill limited liability company, also filed
for chapter 11.
Fredriksen, 75, has described Seadrill's restructuring as the most
complex he has ever seen is in his whole career.
About Seadrill Ltd.
Seadrill Limited (OSE:SDRL, OTCQX:SDRLF) --
http://www.seapdrill.com/-- is a deepwater drilling contractor
providing drilling services to the oil and gas industry. As of
March 31, 2018, it had a fleet of over 35 offshore drilling units
that include 12 semi-submersible rigs, 7 drillships, and 16 jack-up
rigs.
On Sept. 12, 2017, Seadrill Limited sought Chapter 11 protection
after reaching terms of a reorganization plan that would
restructure $8 billion of funded debt. It emerged from bankruptcy
in July 2018.
Demand for exploration and drilling has fallen further during the
COVID-19 pandemic as oil firms seek to preserve cash, idling more
rigs and leading to additional overcapacity among companies serving
the industry.
In June 2020, Seadrill wrote down the value of its rigs by $1.2
billion and said it planned to scrap 10 rigs.
Seadrill is presently in talks with lenders on a restructuring of
its $5.7 billion bank debt.
About Seadrill Partners
Seadrill Partners LLC (NYSE: SDLP) is a limited liability company
formed bydeepwater drilling contractor Seadrill Ltd.
(OTCMKTS:SDRLF), to own, operate and acquire offshore drilling
rigs. Seadrill Partners was founded in 2012 and is headquartered
in London, the United Kingdom. Seadrill Partners, set up as an
asset-holding unit, owns four drillships, four semi-submersible
rigs and three so-called tender rigs which are all operated by
Seadrill Ltd.
Seadrill Partners LLC and its affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 20-35740) on Dec. 1,
2020.
Seadrill Partners disclosed $4,579,300,000 in assets and
$3,122,300,000 in total debts of June. 30, 2020.
JACKSON WALKER L.L.P., led by Matthew D. Cavenaugh, is the Debtors'
counsel.
SPIRE INC: Egan-Jones Cuts Sr. Unsecured Debt Ratings to BB+
------------------------------------------------------------
Egan-Jones Ratings Company, on November 24, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Spire Incorporated to BB+ from BBB-.
Spire Inc. is a public utility holding company based in St. Louis,
Missouri, providing natural gas service through its regulated core
utility operations while engaging in non-regulated activities that
provide business opportunities.
SUMMIT HOTEL: Egan-Jones Lowers Senior Unsecured Ratings to BB+
---------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Summit Hotel Properties, Inc. to BB+ from BBB-.
Headquartered in Austin, Texas, Summit Hotel Properties, Inc.
operates as a real estate investment trust.
SUPERIOR ENERGY: To File Status Report by April 8
-------------------------------------------------
In the case is DEWAYNE BROWN v. SUPERIOR ENERGY SERVICES, INC., ET
AL., Case No. CV 20-489 KWR/CG, (D.N.M.), the United States
District Court for the District of New Mexico ordered Superior
Energy Services, Inc., et al. to advise the Court of the status of
their bankruptcy proceeding by April 8, 2021.
In an action brought by Dewayne Brown against the Defendants,
Superior Energy notified the Court that they had filed for Chapter
11 bankruptcy and explained that the action brought by Mr. Brown is
automatically stayed pending resolution of the bankruptcy
proceeding.
The Court stayed discovery and ordered the telephonic status
conference set for January 26, 2021 vacated.
About Superior Energy Services
Headquartered in Houston, Texas, Superior Energy Services (SPN) --
htttp://www.superiorenergy.com/ -- serves the drilling, completion
and production-related needs of oil and gas companies worldwide
through a diversified portfolio of specialized oilfield services
and equipment that are used throughout the economic life cycle of
oil and gas wells.
As of June 30, 2020, the Company had $1.73 billion in total assets,
$222.9 million in total current liabilities, $1.28 billion in
long-term debt, $135.7 million in decommissioning liabilities,
$54.09 million in operating lease liabilities, $2.53 million in
deferred income taxes, $125.74 million in other long-term
liabilities, and a total stockholders' deficit of $95.13 million.
On Dec. 7, 2020, Superior Energy and its affiliates sought Chapter
11 protection (Bankr. S.D. Tex. Lead Case No. 20-35812) to seek
approval of a prepackaged Chapter 11 plan of reorganization.
Ducera Partners LLC and Johnson Rice & Company L.L.C. are acting as
financial advisors for the Company, Latham & Watkins LLP and Hunton
Andrews Kurth LLP are acting as legal counsel, and Alvarez & Marsal
is serving as restructuring advisor. Kurtzman Carson Consultants
LLC is the claims agent.
Evercore L.L.C. is acting as financial advisor for an ad hoc group
of noteholders with Davis Polk & Wardwell LLP and Porter Hedges LLP
serving as legal counsel. FTI Consulting, Inc. is acting as
financial advisor for the agent for the Company's secured
asset-based revolving credit facility with Simpson Thacher &
Bartlett LLP acting as legal counsel.
TAMARAC 10200: Dec. 21 Videocon on Bid Procedures for All Assets
----------------------------------------------------------------
Judge Peter D. Russin of the U.S. Bankruptcy Court for the Southern
District of Florida will convene a video conference on Dec. 21,
2020 at 1:30 p.m. to consider the bidding procedures proposed by
Tamarac 10200, LLC and Unipharma, LLC in connection with the sale
of substantially all assets to NHTV (AIV) ULM BIDCO, LLC, on the
terms of the Asset Purchase Agreement, dated Dec. 7, 2020, subject
to overbid.
In exchange, NHTV offers the following: (i) $20 million, which
amount will be credited against obligations outstanding under the
Loan Documents; plus (ii) the assumption by the Buyer of (A) the
remaining outstanding debt due under the prepetition senior secured
lending arrangement and (B) if so elected by the buyer in
accordance with the Stalking Horse Bid Agreement, all or any
portion of the outstanding obligations under the DIP Facility; plus
(iii) the assumption by the Stalking Horse Bidder of the other
assumed liabilities.
A hearing on the Motion to Shorten Notice on the Bidding Procedures
Motion was held on Dec. 9, 2020 at 1:30 p.m.
To register for the video conference, parties must manually enter
the following registration link in a browser:
https://www.zoomgov.com/meeting/register/vJItdOCgpj8jH4ETZQg505XmhyCrdOEzK9w
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Jan. (TBD), 2021 at 5:00 p.m. (ET)
b. Initial Bid: Must include (i) cash consideration of not
less than the sum of the Purchase Price (including the amount of
the Assumed Debt as of the Closing Date) plus (a) all amounts
outstanding under the DIP Documents, (b) the Expense Reimbursement
and (c) an initial cash overbid of $500,000 and (ii) assumption of
the Assumed Liabilities (other than the Assumed Debt)
c. Deposit: 10% of the proposed bid
d. Auction: The Debtors ask to have the Auction commence not
later than Jan. 20, 2021 at 10:00 a.m. (ET), a date that falls 44
days from the Petition Date, subject to the right of the Debtors,
in the exercise of their reasonable business judgment, to adjourn
the Auction to a later date in consultation with the Stalking Horse
Bidder. It will take place at the offices of Berger Singerrnan
LLP, located at 1450 Brickell Avenue, Suite 1900, Miami, Florida
33131, or such other place and time, or by electronic means (e.g.,
Zoom), as the Debtors will notify all Competing Qualified Bidders,
including the Stalking Horse Bidder, the counsel for the Stalking
Horse Bidder and other invitees in accordance with the Bidding
Procedures.
e. Bid Increments: $500,000
f. Sale Hearing: Jan. (TBD), 2021
g. Sale Objection Deadline: Jan. 14, 2021 at 4:00 p.m. (ET)
h. Closing: Feb. 5, 2021
i. Credit Bid: Credit bids will be accepted. The Stalking
Horse Bid Agreement is, in part, a Credit Bid.
j. The criteria for payment of the Expense Reimbursement (if
any) to the Stalking Horse Bidder.
A copy of the Bidding Procedures is available at
https://tinyurl.com/y6xloacf from PacerMonitor.com free of charge.
Tamarac 10200, LLC and Unipharma, LLC each sought Chapter 11
protection (Bankr. S.D. Fla.) on Dec. 7, 2020.
TEGNA INC: Egan-Jones Cuts Sr. Unsecured Debt Ratings to CCC+
-------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by TEGNA Incorporated to CCC+ from B. EJR also
downgraded the rating on commercial paper issued by the Company to
C from B.
Tegna Inc. is an American publicly traded broadcast, digital media
and marketing services company headquartered in Tysons, Virginia.
UNIVERSAL TOWERS: Seeks to Hire HREC Investment as Broker
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Universal Towers Construction, Inc. seeks authority from the U.S.
Bankruptcy Court for the Middle District of Florida to employ HREC
Investment Advisor.
HREC will assist its co-broker Fisher Auction in soliciting and
procuring prospective purchasers for the Debtor's hotel located at
7800 Universal Blvd., Orlando, Fla.
If there is a buyer's broker representing the winning bidder, then
Fisher, HREC and the buyer's broker will each receive a 1 percent
commission. If there is no buyer's broker representing the winning
bidder, then both firms will each receive a 1.5 percent commission.
HREC is a "disinterested person" as that phrase is defined in
Section 101(14) and does not hold interest adverse to the Debtor or
its estate on matters in which the firm is to be engaged, according
to court filings.
HREC can be reached through:
Paul Sexton
HREC Investment Advisor
7512 Dr. Phillips Boulevard, Suite 50-904
Orlando, FL 32819
Phone: 407-963-4840
About Universal Towers Construction
Universal Towers Construction, Inc., owns the 400-room Crowne Plaza
Hotel located at 7800 Universal Blvd., Orlando, Fla.
Universal Towers Construction filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
20-03799) on July 3, 2020. Lis R. Oliveira-Sommerville, president
of Universal Towers, signed the petition.
At the time of the filing, the Debtor was estimated to have $10
million to $50 million in both assets and liabilities.
Eric S. Golden, Esq., at Burr & Forman LLP, serves as the Debtor's
legal counsel.
VICTORIA TOWERS: Kravit Partners Represents Sanford, 8 Others
-------------------------------------------------------------
In the Chapter 11 case of Victoria Towers Development Corp., the
law firm of Kravit Partners, LLC submitted a verified statement
under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to
disclose that it is representing the following parties:
a. Sanford Avenue Partner LLC, 34-30 Collins Place, Flushing,
NY 11354;
b. Xizhu Bai, 2 Arbor Fields Ct., Old Westbury, NY 11568;
c. W & L Group Construction Inc., 34-28 Collins Place,
Flushing, New York 11354;
d. Meng Hua Wang, 10 St. Andrews Court, Old Westbury, NY
11568;
e. Zhen En Lin, 133-38 Sanford Avenue, 5F, Flushing, New York
11355;
f. Xing Mei Ni, 133-38 Sanford Avenue, 6F, Flushing, New York
11355;
g. Liang Wen Pan, 133-38 Sanford Avenue, 15D, Flushing, New
York 11355;
h. Hui Lin, 133-38 Sanford Avenue, 15B, Flushing, New York
11355; and
i. Qui Hui Lin, 133-38 Sanford Avenue, 15E, Flushing, New
York 11355.
The Parties may hold claims against the Debtors arising out of
certain agreements, law, or equity specific to the respective
Parties and their relationships with the Debtors. The claims of the
Parties may include, but are not necessarily limited to, secured
claims, unsecured claims, and administrative claims. Each Party is
preparing to state the nature and amount of their claim against the
Debtors in their respective proof of claim, to be filed by the
applicable deadline.
Based upon information provided to KPL by each of Sanford Avenue
Partner LLC, Xizhu Bai, W & L Group Construction Inc., Meng Hua
Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui Lin, and Qui Hui
Lin, attached hereto as Exhibit A is a brief description of the
nature and amount of currently understood disclosable economic
interests of each of the Parties in relation to the Debtors.
Sanford Avenue Partner, LLC
34-30 Collins Place
Flushing, NY 11354
* Nature of Claim: Purchase of Note/ Mortgage Loan/ Guaranty
* Amount: Approximately $40 Million
Xizhu Bai
2 Arbor Fields Ct.
Old Westbury, NY 11568
* Nature of Claim: Judgments/Purchase Agreements/Settlement
Agreement
* Amount: Unknown at this time
W & L Group Construction Inc.
34-28 Collins Place
Flushing, New York 11354
* Nature of Claim: Work Performed/Loan/Construction Lien/Guaranty
* Amount: Unknown at this time
Meng Hua Wang
10 St. Andrews Court
Old Westbury, NY 11568
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Zhen En Lin
133-38 Sanford Avenue, 5F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Xing Mei Ni
133-38 Sanford Avenue, 6F
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Liang Wen Pan
133-38 Sanford Avenue, 15D
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Hui Lin
133-38 Sanford Avenue, 15B
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
Qui Hui Lin
133-38 Sanford Avenue, 15E
Flushing, New York 11355
* Nature of Claim: Loans to Victoria Towers or affiliated
entity/Purchase of Units
* Amount: Unknown at this time
The pertinent facts and circumstances in connection with the
engagement of KPL is that each Party has separately requested KPL
to serve as its counsel in connection with these chapter 11 cases.
At the time of the engagement of KPL by the Parties, KPL did not
have any claims against the Debtors or interests in the Debtors.
The information contained herein is based upon information provided
by Sanford Avenue Partner LLC, Xizhu Bai, W & L Group Construction
Inc., Meng Hua Wang, Zhen En Lin, Xing Mei Ni, Liang Wen Pan, Hui
Lin, and/or Qui Hui Lin, respectively, to KPL and is provided for
the purposes of complying with Bankruptcy Rule 2019 and is not
intended for any other use or purpose, and is subject to change.
KPL reserves the right to amend this Verified Statement as may be
necessary in accordance with the requirements set forth in
Bankruptcy Rule 2019. The undersigned hereby verifies that this
Verified Statement is true and accurate to the best of the
undersigned's knowledge and belief.
The Firm can be reached at:
KRAVIT PARTNERS, LLC
Margarita Y. Ginzburg, Esq.
79 Madison Avenue, 2nd Floor
New York, NY 10016
Tel: 212-252-0550
Email: mginzburg@kravit.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3nkEAxa
About Victoria Towers Development
Flushing, N.Y.-based Victoria Towers Development Corp. is the owner
of fee simple title to 29 residential condo units located at 133-38
Sanford Avenue, Flushing N.Y., having an appraised value of $33.37
million.
Victoria Towers 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 the Debtor's bankruptcy counsel.
VISHAY INTERTECHNOLOGY: Egan-Jones Hikes Sr. Unsec. Ratings to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2020, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Vishay Intertechnology Inc. to BB from B+.
Headquartered in Malvern, Pennsylvania, Vishay Intertechnology,
Inc. is an American manufacturer of discrete semiconductors and
passive electronic components founded by Polish-born businessman
Felix Zandman.
VIVUS INC: To Emerge from Bankruptcy as Icahn Enterprises Unit
--------------------------------------------------------------
Linly Lin of Bloomberg News reports that Vivus Inc. received
approval from the U.S. Bankruptcy Court in Delaware on its Second
Amended Joint Prepackaged Chapter 11 plan of Reorganization. The
Court approved the disclosure statement and solicitation procedures
and confirmed the Second Amended Plan. The Plan implements the
mediated settlement among the company, Icahn Enterprises Holdings,
and the equity committee. Vivus will continue to manufacture and
sevice for Qsymia capsules.
About Vivus Inc
Vivus Inc -- https://www.vivus.com/ -- is a biopharmaceutical
company committed to the development and commercialization of
innovative therapies that focus on advancing treatments for
patients with serious unmet medical needs. VIVUS has three approved
therapies and one product candidate in clinical development. Qsymia
(phentermine and topiramate extended release) is approved by FDA
for chronic weight management. The Company commercializes Qsymia in
the U.S. through a specialty sales force supported by an internal
commercial team and license the commercial rights to Qsymia in
South Korea. VIVUS was incorporated in 1991 in California and
reincorporated in 1996 in Delaware. As of the Petition Date, VIVUS
is a publicly traded company with its shares listed on the Nasdaq
Global Market LLC under the ticker symbol "VVUS." The Company
maintains its headquarters in Campbell, California.
Vivus Inc and three of its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Case No.
20-11779) on July 7, 2020. The petitions were signed by Mark Oki,
chief financial officer. Hon. Laurie Selber Silverstein presides
over the cases.
As of May 31, 2020, the Debtors reported total assets of
$213,884,000 and total liabilities of $281,669,000.
Weil Gotshal & Manges LP serves as general counsel to the Debtors,
while Richards, Layton & Finger, P.A. acts as local counsel to the
Debtors. Ernst & Young is the Debtors' financial advisor, and Piper
Sandler Companies acts as investment banker. Stretto is claims and
noticing agent to the Debtors.
On Sept. 22, 2020, the United States Trustee appointed the official
committee of equity security holders. The equity committee is
represented by Morris, Nichols, Arsht & Tunnell LLP.
VTV THERAPEUTICS: Causes MacAndrews to Purchase 625K Class A Shares
-------------------------------------------------------------------
vTv Therapeutics Inc. exercised its right to cause MacAndrews &
Forbes Group LLC to purchase 625,000 shares of the Company's Class
A common stock at a per share price of $1.60 pursuant to the terms
of the letter agreement between the Company and the Investor dated
Dec. 23, 2019. The Investor funded $1.0 million to the Company in
exchange for 625,000 shares of Class A common stock following the
execution of definitive documentation by and between the Company
and the Investor.
About vTv Therapeutics
vTv Therapeutics Inc. is a clinical-stage biopharmaceutical company
focused on developing oral small molecule drug candidates. vTv has
a pipeline of clinical drug candidates led by programs for the
treatment of type 1 diabetes, Alzheimer's disease, and inflammatory
disorders. vTv's development partners are pursuing additional
indications in type 2 diabetes, chronic obstructive pulmonary
disease (COPD), and genetic mitochondrial diseases.
vTv Therapeutics reported a net loss attributable to common
shareholders of $17.91 million for the year ended Dec. 31, 2019
compared to a net loss attributable to common shareholders of $8.65
million for the year ended Dec. 31, 2018. As of Sept. 30, 2020,
the Company had $7.05 million in total assets, $12.83 million in
total liabilities, $45.59 million in redeemable noncontrolling
interest, and a total stockholders' deficit attributable to the
Company of $51.37 million.
Ernst & Young LLP, in Raleigh, North Carolina, the Company's
auditor since 2000, issued a "going concern" qualification in its
report dated Feb. 20, 2020 citing that to date, the Company has not
generated any product revenue, has not achieved profitable
operations, has insufficient liquidity to sustain operations and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
VTV THERAPEUTICS: CEO Holcombe & CFO Howard Retain Posts Until 2020
-------------------------------------------------------------------
vTv Therapeutics LLC, and for certain limited purposes vTv
Therapeutics Inc., entered into a new employment agreement with the
Company's President and Chief Executive Officer, Stephen L.
Holcombe, pursuant to which Mr. Holcombe will continue to serve as
the Company's president and chief executive officer until Dec. 31,
2021 (or such earlier date upon which Mr. Holcombe's employment may
be terminated in accordance with the terms of the Holcombe
Employment Agreement). The new agreement includes substantially
similar terms and conditions as Mr. Holcombe's prior employment
agreement, which is replaced and superseded by the new agreement.
On Dec. 10, 2020, the Company entered into a new employment
agreement with the Company's Executive Vice President and Chief
Financial Officer, Rudy C. Howard, pursuant to which Mr. Howard
will continue to serve as the Company's executive vice president
and chief financial officer until Dec. 31, 2021 (or such earlier
date upon which Mr. Howard's employment may be terminated in
accordance with the terms of the Howard Employment Agreement). The
new agreement includes substantially similar terms and conditions
as Mr. Howard's prior employment agreement, which was replaced and
superseded by the new agreement.
About vTv Therapeutics
vTv Therapeutics Inc. is a clinical-stage biopharmaceutical company
focused on developing oral small molecule drug candidates. vTv has
a pipeline of clinical drug candidates led by programs for the
treatment of type 1 diabetes, Alzheimer's disease, and inflammatory
disorders. vTv's development partners are pursuing additional
indications in type 2 diabetes, chronic obstructive pulmonary
disease (COPD), and genetic mitochondrial diseases.
vTv Therapeutics reported a net loss attributable to common
shareholders of $17.91 million for the year ended Dec. 31, 2019
compared to a net loss attributable to common shareholders of $8.65
million for the year ended Dec. 31, 2018. As of Sept. 30, 2020, the
Company had $7.05 million in total assets, $12.83 million in total
liabilities, $45.59 million in redeemable noncontrolling
interest, and a total stockholders' deficit attributable to the
Company of $51.37 million.
Ernst & Young LLP, in Raleigh, North Carolina, the Company's
auditor since 2000, issued a "going concern" qualification in its
report dated Feb. 20, 2020 citing that to date, the Company has not
generated any product revenue, has not achieved profitable
operations, has insufficient liquidity to sustain operations and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
WAVE COMPUTING: May File Under Seal Exhibit to Bid Procedures
-------------------------------------------------------------
Judge M. Elaine Hammond of the U.S. Bankruptcy Court for the
Northern District of California authorized Wave Computing, Inc. and
affiliates to file under seal the unredacted version of the
Stalking Horse Agreement (Exhibit 2) to their proposed bidding
procedures relating to the sale of substantially all assets for
$57.5 million cash, plus assumption of certain liabilities and
obligations, subject to overbid.
The Debtors are further authorized to file the redacted version of
the Stalking Horse Agreement without schedules, of which such
schedules will be made available upon request. The copy of the
unredacted Stalking Horse Agreement filed under seal is
confidential, will remain under seal, and will not be made
available to anyone other than the (i) the Court, (ii) the U.S
Trustee, (iii) counsel for the DIP Agent and DIP Lender, (v)
counsel to the Creditors' Committee on a strictly confidential
basis.
The Requesting Party will file such Notice and ask with the Court,
and will enter into a confidentiality agreement with the Debtors
that will be subject to further Court Order. If the Debtors and a
Requesting Party cannot agree to a form of confidentiality within
10 days of the filing of the Notice, the Requesting Party or the
Debtors may ask further Court adjudication to determine whether the
Requesting Party is entitled to the unredacted version of the
Stalking Horse Agreement.
The Notice of the Motion as provided therein will be deemed good
and sufficient and the requirements of the Bankruptcy Rules and
Bankruptcy Local Rules are satisfied by such notice.
A copy of the APA and the Bidding Procedures is available at
https://tinyurl.com/y3yzdvnv from PacerMonitor.com free of charge.
About Wave Computing
Wave Computing, Inc. -- https://wavecomp.ai -- is a Santa Clara,
Calif.-based company that revolutionizes artificial intelligence
(AI) with its dataflow-based solutions.
Wave Computing and its affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Cal. Lead Case No. 20 50682)
on April 27, 2020. At the time of the filing, the Debtors had
estimated assets of between $1 million and $10 million and
liabilities of between $50 million and $100 million.
Judge Elaine M. Hammond oversees the cases.
The Debtors have tapped Sidley Austin, LLP as their bankruptcy
counsel, Affeld Grivakes LLP as conflict counsel, Paul Weiss
Rifkind Wharton & Garrison LLP as special counsel. Lawrence
Perkins, chief executive officer of SierraConstellation Partners
LLC, is the Debtors' chief restructuring officer.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on May 18, 2020. The committee is represented by Hogan
Lovells US, LLP.
*********
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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