/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/210318.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, March 18, 2021, Vol. 25, No. 76 Headlines 2374 VILLAGE COMMON: Gets Cash Collateral Access Thru April 15 AGV PARTNERS: Gets OK to Hire Buddy D. Ford as Legal Counsel ALAMO DRAFTHOUSE: U.S. Trustee Appoints Creditors' Committee ALTERA INFRASTRUCTURE: S&P Lowers Issuers Credit Rating to 'CCC+' AMC ENTERTAINMENT: Creditors Are Happy on Theater Reopenings in CA ARMED BEAVERS: Gets OK to Hire Haynie & Company as Accountant ASTON CUSTOM: Gets OK to Hire Joyce W. Lindauer as Legal Counsel AVID BIOSERVICES: Prices $125M Offering of Exchangeable Sr. Notes AVIENT CORP: Moody's Affirms Ba2 CFR on Clariant Acquisition BEN CLYMER'S: Trustee Gets OK to Hire NAI Capital as Broker BRAZOS ELECTRIC: U.S. Trustee Appoints Creditors' Committee BRIGGS & STRATTON: Professional Fees Reach $45 Mil. in Case BWX TECHNOLOGIES: S&P Affirms 'BB' ICR, Outlook Stable CALIFORNIA-NEVADA METHODIST: 2 Retirement Centers in Chapter 11 CHEMOURS CO: S&P Alters Outlook to Positive, Affirms 'B+' ICR CHESAPEAKE SAILING: Gets OK to Hire Steven B. Preller as Counsel CHINA FISHERY: Kirkland & Ellis Updates on Noteholders CICI'S HOLDINGS: Successfully Emerges From Chapter 11 COSMOS HOLDINGS: To Swap $1 Million Debt for Equity COTY INC: S&P Affirms 'B-' Rating on Senior Unsecured Debt CSI COMPRESSCO: GP OKs Amended COC Agreement With Senior VP CWGS ENTERPRISES: S&P Upgrades ICR to 'B+' on Robust RV Demand DENVER SELECT: Case Summary & 20 Largest Unsecured Creditors DOUGLAS DYNAMICS: S&P Alters Outlook to Stable, Affirms 'BB-' ICR EAGLE HOSPITALITY TRUST: Court Gives Go Signal to Probe Ex-Insiders ELITE AUTO DEALER: Unsecured Creditors to Receive Nothing in Plan EMINENT BICYCLES: Case Summary & 4 Unsecured Creditors ENERGY FUTURE: NextEra Energy Can Seek $60 Mil. in Bankruptcy Case EYEPOINT PHARMACEUTICALS: Incurs $45.4 Million Net Loss in 2020 FESTIVE WORKS: May Use Cash Collateral on Final Basis FIELDWOOD ENERGY: Hunt Oil, et al., Say Plan Fatally Flawed FIELDWOOD ENERGY: JX Nippon Says Disclosures Insufficient FREEMAN HOLDINGS: Taps Duerr & Cullen to Provide Tax Services FREEMAN MOBILE: Taps Duerr & Cullen to Provide Tax Services FULL HOUSE: Swings to $147K Net Income in 2020 GIRARDI & KEESE: Judge Brushes Aside Fake Dementia Claims GREENVILLE CASUALTY: A.M. Best Affirms B (Fair) FS Rating GUIORA LLC: Beverly Hills Property Owner Seeks Chapter 11 GUNSMOKE LLC: Gets OK to Hire Haynie & Company as Accountant HAPPY BEAVERS: Gets OK to Hire Haynie & Company as Accountant HAYWARD INDUSTRIES: S&P Upgrades ICR to 'B+' Following IPO HIGHPOINT RESOURCES: Plan Hearing Set 4 Days After Ch. 11 Filing INNOVATIVE SOFTWARE: Gets Cash Collateral Access on Final Basis INTERNATIONAL WIRE: S&P Upgrades ICR to 'B-', Outlook Stable JAGUAR HEALTH: Signs $5 Million Non-Dilutive Financing Transaction JFG HOLDINGS: May 25 Plan Confirmation Hearing Set K COLBERT: Gets OK to Hire Chris Barsness as Legal Counsel KHAN AVIATION: April 26 Plan Confirmation Hearing Set LA DHILLON: Unsecureds to be Paid in Full via Quarterly Payments LADAN INC: April 15 Plan & Disclosure Hearing Set LANCASHIRE HOLDINGS: S&P Rates $400MM Jr. Subordinated Notes 'BB+' LAROCHE CARRIER: US Trustee Opposes Amended Disclosures LUCKIN COFFEE: Enters Restructuring Deal With Noteholders LW RETAIL: Gets Cash Collateral Access Thru April 8 MALLINCKRODT PLC: Rockford Wants Acthar Cases Out of Bankruptcy MALLINCKRODT PLC: Troutman, Gibson 3rd Update on Term Lender Group MEDOLAC LABORATORIES: Case Summary & 20 Top Unsecured Creditors MILLERS LANE: Gets OK to Hire Marcus & Millichap as Broker MOBITV INC: U.S. Trustee Appoints Creditors' Committee MSCI INC: Moody's Rates 2030 Incremental Unsecured Notes 'Ba2' NATIONAL CAMPUS: S&P Lowers 2019 Revenue Bond Rating to 'B' NATIONAL RIFLE ASSOCIATION: Reaches Deal With AG on Deposition NATIONAL RIFLE: Bonds Ellis Represents Judge Journey, Rocky NATURALSHRIMP INC: To Preview Plant Operations in Iowa NINE POINT: Files for Chapter 11 With Credit Bid from Lenders NORTHERN OIL: Widens Net Loss to $906 Million in 2020 OBALON THERAPEUTICS: Incurs $12.3 Million Net Loss in 2020 OCCIDENTAL PETROLEUM: S&P Alters Outlook to Stable, Affirms BB- ICR OCEAN AVENUE: Case Summary & 7 Unsecured Creditors PELICAN FAMILY: Case Summary & 20 Largest Unsecured Creditors PHASE III BUILDING: Gets OK to Hire Jason A. Burgess as Counsel PHI GROUP: Incurs $2.9 Million Net Loss in Fiscal 2019 PURDUE PHARMA: State AGs Criticize Chapter 11 Plan PURDUE PHARMA: Wants to Unload Opioid Claims in $10 Bil. Plan QUOTIENT LIMITED: Says Liquidation of Funds Won't Affect Operations REGENT UNIVERSITY: Moody's Hikes $84M Revenue Bonds to Ba2 RETIRED-N-FIT LLC: Files for Chapter 11 Bankruptcy RVT INC: Unsecureds to Get 100%; April 20 Status Conference Set SEADRILL LTD: Removes 162 Workers From Gulf of Mexico SEAVIEW HOMES: Case Summary & 11 Unsecured Creditors SHRUNGI LLC: Gets OK to Hire Joyce W. Lindauer as Legal Counsel SKLAR EXPLORATION: Debtors, Family Dispute Committee Report SOUTHEAST POWERGEN: S&P Affirms 'B' Rating on $480MM Term Loan B STONEMOR PARTNERS: S&P Alters Outlook to Positive, Affirms CCC ICR SUMMIT MIDSTREAM: Unit Enters Into $175 Million Credit Facility TAMKO BUILDING: Moody's Affirms B1 CFR & Alters Outlook to Stable TAMKO BUILDING: S&P Alters Outlook to Stable, Affirms 'BB-' ICR TCF FINANCIAL: Moody's Still Reviews Ba1 Preferred Stock Rating TEXXON PETROCHEMICALS: Gets OK to Hire Eric A. Liepins as Counsel TRANSDIGM INC: S&P Affirms 'B+' Issuer Credit Rating, Outlook Neg. VISTRA ENERGY: Moody's Affirms Ba1 CFR & Alters Outlook to Stable WC SOUTH CONGRESS: April 15 Plan Confirmation Hearing Set WILSONART LLC: Moody's Rates Amended $1.2BB First Lien Loan 'B2' [*] Bankruptcies Declined in 2020 Across California Area [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 2374 VILLAGE COMMON: Gets Cash Collateral Access Thru April 15 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Pennsylvania has authorized 2374 Village Common Drive, LLC to use the cash collateral of Wells Fargo Bank, N.A. on an interim basis through April 15, 2021, in accordance with a budget. The Court says the prepetition liens of Wells Fargo will be continued postpetition as to both prepetition and postpetition assets, but the value of Wells Fargo's liens will not be greater postpetition than the value thereof at the time of the filing of the Bankruptcy Petition initiating the case, plus accruals and advances thereafter, and minus payments to Wells Fargo thereafter. No additional financing statements or mortgages need be filed to perfect such postpetition liens and security interests. The Debtor will resume making regular monthly mortgage payments to Wells Fargo in the amount of $29,893 beginning in March 2021. The Debtor is directed to provide Wells Fargo with access to the Debtor's records and financial information as Wells Fargo may reasonably request, in addition to the monthly financial reports required by the U.S. Trustee. A final hearing on the Debtor's use of Cash Collateral is scheduled for April 9 at 10 a.m. via the Zoom Video Conference Application. A copy of the Order is available for free at https://bit.ly/3rQ85ZM from PacerMonitor.com. About 2374 Village Common Drive 2374 Village Common Drive, LLC is a Pennsylvania limited liability company, which operates its business at 2374 Village Common Drive, Erie, Pa. It is a single asset real estate entity under 11 U.S.C Sec. 101(51B). 2374 Village Common Drive owns the medical facility where Tri-State Pain Institute, LLC and Greater Erie Surgery Center, Inc. conduct business. On March 5, 2021, 2374 Village Common Drive sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Penn. Case No. 21-10118). In the petition signed by Joseph Martin Thomas, M.D., sole member, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Thomas P. Agresti oversees the case. Michael P. Kruszewski, Esq. is the Debtor's legal counsel. AGV PARTNERS: Gets OK to Hire Buddy D. Ford as Legal Counsel ------------------------------------------------------------ AGV Partners Inc. received approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Buddy D. Ford, P.A. as its legal counsel. The Debtor requires legal counsel to assist in the preparation of a Chapter 11 plan and provide other services necessary to administer its Chapter 11 case. The firm will be paid at these rates: Buddy D. Ford, Esq. $425 per hour Senior Associate Attorneys $375 per hour Junior Associate Attorneys $300 per hour Senior Paralegal $150 per hour Senior Paralegal $150 per hour Junior Paralegal $100 per hour The Debtor paid the firm an advance fee of $6,738. Buddy D. Ford does not represent interest adverse to the Debtor and its bankruptcy estate, according to court papers filed by the firm. The firm can be reached through: Buddy D. Ford, Esq. Jonathan A. Semach, Esq. Heather M. Reel, Esq. Buddy D. Ford, P.A. 9301 West Hillsborough Avenue Tampa, FL 33615-3008 Tel: (813) 877-4669 Email: All@tampaesq.com Buddy@tampaesq.com Jonathan@tampaesq.com Heather@tampaesq.com About AGV Partners AGV Partners Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 21-00647) on Feb. 11, 2021. At the time of the filing, the Debtor had estimated assets of between $100,001 and $500,000 and liabilities of between $500,001 and $1 million. Judge Michael G. Williamson oversees the Debtor's case. The Debtor is represented by Buddy D. Ford, P.A. ALAMO DRAFTHOUSE: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------ The U.S. Trustee for Region 3 on March 15 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Alamo Drafthouse Cinemas Holdings, LLC and its affiliates. The committee members are: 1. Summit Glory Property, LLC Attn: Thomas Costanzo 28 Liberty Street New York, NY 10005 Phone: 917-854-6514 E-mail: tcostanzo@fosun.com 2. Albee Development LLC Attn: AJ Levine c/o Acadia Realty Trust 411 Theodore Fremd Avenue, Suite 300 Rye, NY 10580 Phone: 914-288-8123 Fax: 914-428-2760 E-mail: alevine@acadiarealty.com 3. Sloans Lake-FCA, LLC Attn: Al Lindemann c/o FCA Partners LLC 300 S. Tryon St., Ste 420 Charlotte, NC 28202 Phone: 704-972-2608 E-mail: al.lindemann@fcapartners.com 4. MEP Mainstreet Operations, LLC Attn: Adam Block, Esq. c/o The Cordish Companies 601 E. Pratt Street, 6th Floor Baltimore, MD 21202 Phone: 410-347-2760 E-mail: ablock@cordish.com 5. Sony Electronics Inc. Attn: Richard Blazier 115 West Century Road, Suite 250 Paramus, NJ 07652 Phone: 201-930-7030 E-mail: Richard.blazier@sony.com 6. Vista Entertainment Solutions (USA) Inc. Attn: Kelvin James Preston 335 N. Maple Drive, Suite 150 Beverly Hills, CA 90210 Phone: +64 21 108 9376 E-mail: kelvin.preston@vista.co 7. Iced Tea with Lemon LLC Attn: William D. DiGaetano 100 S Central Expressway #14 Richardson, TX 75080 c/o Shanti M. Katona Esq. Phone: 302-252-0924 E-mail: skatona@polsinelli.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Alamo Drafthouse Cinemas Holdings Founded in 1997, Alamo Drafthouse Cinemas Holdings, LLC -- https://drafthouse.com -- operates and franchises movie theaters. In addition to its movie theaters, the company operates "Mondo," an online and print editorial business and a merchandising business. It also hosts "Fantastic Fest," an annual film festival held in Austin, Texas. Alamo Drafthouse Cinemas Holdings and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 21-10474) on March 3, 2021. In the petitions signed by Matthew Vonderahe, chief financial officer, the Debtors disclosed assets of between $100 million and $500 million and liabilities of the same range. Judge Mary F. Walrath oversees the cases. The Debtors tapped Young Conaway Stargatt & Taylor LLP as their bankruptcy counsel, Portage Point Partners as financial advisor, and Houlihan Lokey Capital Inc. as investment banker. Epiq Corporate Restructuring, LLC is the claims and noticing agent. ALTERA INFRASTRUCTURE: S&P Lowers Issuers Credit Rating to 'CCC+' ----------------------------------------------------------------- On March 12, 2021, S&P Global Ratings lowered its issuer credit rating (ICR) on Altera Infrastructure L.P. to 'CCC+' from 'B', and its issue-level rating on the partnership's senior unsecured notes to 'CCC' from 'B-'. The recovery rating remains at '5' and indicates a modest (10%-30%, rounded estimate: 10%) recovery in the event of a payment default. Weak outlook for offshore activity results in subdued demand for Altera's services. Despite some improvement in our expectations for commodity pricing, the outlook for offshore activity remains highly uncertain given the long lead time and high capital costs associated with projects. S&P said, "Therefore, we expect that overall activity levels will remain subdued throughout 2021. We do not anticipate a more substantial and sustained recovery until 2022-2023." This is material for Altera because its cash flows are projected to be more dependent on activity levels with greater volume sensitivity, as opposed to being mostly contracted under long-term take-or-pay agreements as they were previously. S&P said, "Credit metrics will remain at an unsustainable level during our outlook horizon. More volatile and weaker cash flows will continue to pressure Altera's credit metrics. Altera's contractual structure is weakening, largely due to lower contribution from its floating production storage and offloading (FPSO) segment, as customers have chosen to not renew or extend their upcoming take-or-pay agreements. We project that Petrojarl I will be the only wholly-owned FPSO vessel generating revenues by 2022, in addition to Itajai and Libra through the joint venture with Ocyan S.A." At the same time, Altera is adding seven shuttle tankers to its fleet, with the majority operating under contracts of affreightments, which are shorter term with some volumetric risks. Weaker commodity prices have resulted in some interest from shippers in repurposing and redeploying existing FPSO vessels, as opposed to building new ones. However, given the long lead time required to modify these highly specialized vessels, S&P expects that the potential cash flow impact would be outside of our outlook time frame. Combining challenged cash flows with an elevated debt level, S&P anticipates that debt to EBITDA will remain above 8.0x under its base-case scenario. Refinancing risk will likely remain elevated due to high leverage and could weaken Altera's liquidity. The current consolidated high debt level is the result of Altera's strategy of aggressively using secured financing at the vessel level. In addition, the partnership has unsecured financing, including $250 million notes maturing in August 2022 at the Shuttle Tankers segment and about $687 million notes at the parent level maturing in July 2023. Altera's high leverage will likely be an impediment to refinancing the full amount of these upcoming maturities on an unsecured basis. The debt at Altera Shuttle Tanker is ring-fenced, with the bondholders of the Shuttle Tankers notes having recourse only to this entity. However, the lack of a refinancing strategy creates additional uncertainty for all upcoming maturities, especially on the unsecured financing front. This risk is heightened for the senior unsecured notes at the parent level, which are structurally subordinated to the first-lien secured debt. S&P said, "We assess liquidity as adequate, given that we are not factoring these upcoming maturities as they are beyond our one-year horizon for liquidity. As we start including these maturities in our analysis, liquidity could weaken, which could lead to a negative rating action. "However, we see refinancing risk as very high, this could be mitigated by additional support from owner Brookfield Business Partners L.P. Although we are not factoring any uncommitted financing in our base case scenario, the owner has provided support in the past to the partnership through various debt instruments. "The negative outlook reflects our expectation that Altera will depend upon favorable business, financial, and economic conditions to meet its financial commitments. We expect leverage will remain elevated during the next two years, with debt to EBITDA above 8.0x. We deem this type of leverage to be unsustainable, and the partnership could face difficulties in refinancing its unsecured obligations. Although we assess liquidity as adequate, the liquidity profile could weaken over the next year, largely due to the upcoming maturity of the $250 million Shuttle Tanker bonds due August 2022 (not rated). "We could lower the ratings if we believe a default or distressed exchange offering is likely during the next 12 months. This could occur if there is no successful refinancing strategy for the partnership's upcoming unsecured obligations and if there is no support from its owner. "We could raise the ratings if we expect Altera's capital structure will be sustainable which could occur if there is a sustained recovery in offshore activity, and if there is a strategy for the upcoming unsecured maturity." AMC ENTERTAINMENT: Creditors Are Happy on Theater Reopenings in CA ------------------------------------------------------------------ Katherine Doherty of Bloomberg News reports that AMC Entertainment's creditors are growing bullish as the company reopens theaters in California and New York, key markets for the cinema group. The company's 12% bonds due 2026, which changed hands late last year for as little as 5 cents on the dollar, were among the top gainers in the U.S. high-yield bond market Monday, March 15, 2021, rallying to around 86.25 cents. The move comes as the chain reopens cinemas in California. Its New York City theaters began welcoming guests in early March 2021. As more locations reopen, AMC is seeking to offer more film showtimes than usual. According to MarketWatch, shares of AMC Entertainment advanced 4.15% to $13.56 Wednesday, on what proved to be an all-around positive trading session for the stock market, with the NASDAQ Composite Index COMP, +0.40% rising 0.40% to 13,525.20 and the Dow Jones Industrial Average DJIA, +0.58% rising 0.58% to 33,015.37. AMC closed $6.80 short of its 52-week high ($20.36), which the company achieved on January 27th. About AMC Entertainment Holdings AMC Entertainment Holdings, Inc., is engaged in the theatrical exhibition business. It operates through theatrical exhibition operations segment. It licenses first-run motion pictures from distributors owned by film production companies and from independent distributors. The Company also offers a range of food and beverage items, which include popcorn; soft drinks; candy; hot dogs; specialty drinks, including beers, wine and mixed drinks, and made to order hot foods, including menu choices, such as curly fries, chicken tenders and mozzarella sticks. AMC operates over 900 theatres with 10,000 screens globally, including over 661 theatres with 8,200 screens in the United States and over 244 theatres with approximately 2,200 screens in Europe. The Company's subsidiary also includes Carmike Cinemas, Inc. AMC was forced to shutter its theaters when the Covid-19 pandemic struck in March 2020. It has reopened its theaters but admissions have been substantially low. The world's biggest theater chain said in an October 2020 filing that liquidity will be largely depleted by the end of 2020 or early 2021 if attendance doesn't pick up, and it's exploring actions that include asset sales and joint ventures. ARMED BEAVERS: Gets OK to Hire Haynie & Company as Accountant ------------------------------------------------------------- Armed Beavers, LLC, received approval from the U.S. Bankruptcy Court for the District of Colorado to hire Haynie & Company, CPAs as its accountant. The firm will assist the Debtor in accounting and tax matters, including the preparation of 2020 tax returns. Brian Jacobson, a certified public accountant and a partner at Haynie & Company will be the responsible person at the firm. The firm will be paid at these rates: Partner/Principal $400 per hour Staff $100 - $200 per hour Haynie & Company is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court papers filed by the firm. The firm can be reached through: Brian Jacobson CPA Haynie & Company, CPAs 200 E. 7th St., Suite 300 Loveland, CO 80537 Phone: 970-667-5316 Fax: 970-667-2269 Email: brianj@hayniecpas.com About Armed Beavers Armed Beavers, LLC, a Loveland, Colo.-based company that provides sporting and recreational goods and supplies, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-14963) on July 22, 2020. At the time of the filing, the Debtor had estimated assets of between $100,001 and $500,000 and liabilities of between $500,001 and $1 million. Judge Joseph G. Rosania Jr. oversees the case. The Debtor tapped Jorgensen, Brownell & Pepin P.C. as its legal counsel and Haynie & Company, CPAs as its accountant. ASTON CUSTOM: Gets OK to Hire Joyce W. Lindauer as Legal Counsel ---------------------------------------------------------------- Aston Custom Homes & Design, Inc., received approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Joyce W. Lindauer Attorney, PLLC as its legal counsel. The Debtor requires legal counsel to prepare a plan of reorganization and provide other services in connection with its Chapter 11 case. The firm will be paid at these rates: Joyce Lindauer $395 per hour Kerry Alleyne $250 per hour Guy Holman $205 per hour Paralegals/Legal Assistants $65 to $125 per hour The firm received a retainer of $6,800, which included the filing fee of $1,738. Joyce Lindauer, Esq., disclosed in a court filing that she and the firm's members and contract attorneys are "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Joyce W. Lindauer, Esq. Kerry S. Alleyne, Esq. Guy H. Holman, Esq. Joyce W. Lindauer Attorney, PLLC 1412 Main Street, Suite 500 Dallas, TX 75202 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 Email: joyce@joycelindauer.com About Aston Custom Homes & Design Aston Custom Homes & Design, Inc. -- http://www.astoncustomhome.com -- is a home design and construction company based in Dallas, Texas. It specializes in the reconstruction of historic homes. Aston Custom Homes & Design sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No. 21-30208) on Feb. 1, 2021. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Stacey G. Jernigan oversees the Debtor's case. The Debtor is represented by Joyce W. Lindauer Attorney, PLLC. AVID BIOSERVICES: Prices $125M Offering of Exchangeable Sr. Notes ----------------------------------------------------------------- Avid Bioservices, Inc.'s wholly-owned subsidiary, Avid SPV, LLC, has priced its sale of $125 million aggregate principal amount of exchangeable senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The issuance and sale of the notes are scheduled to settle on March 12, 2021 , subject to customary closing conditions. The Issuer also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $18.75 million aggregate principal amount of the notes. The notes will be senior, unsecured obligations of the Issuer, will be fully and unconditionally guaranteed by the company on a senior, unsecured basis, and will accrue interest at a rate of 1.250% per annum payable semi-annually in arrears on March 15 and September 15 of each year, beginning on Sept. 15, 2021. The notes will mature on March 15, 2026, unless earlier repurchased, redeemed or exchanged. Before Sept. 15, 2025, noteholders will have the right to exchange their notes only upon the occurrence of certain events. From and after Sept. 15, 2025, noteholders may exchange their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date of the notes. The notes will be settled in cash, shares of the company's common stock or a combination of cash and shares of the company’s common stock, at the Issuer's election. The initial exchange rate is 47.1403 shares of the Company's common stock per $1,000 principal amount of notes (which represents an initial exchange price of approximately $21.21 per share of the company's common stock). The initial exchange price represents a premium of approximately 32.5% over the last reported sale price of $16.01 per share of the company's common stock on March 9, 2021 . The exchange rate and exchange price of the notes will be subject to adjustment upon the occurrence of certain events. The notes will be redeemable, in whole or in part, for cash at the Issuer's option at any time, and from time to time, on or after March 20, 2024 if the last reported sale price of the company's common stock has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Issuer provides notice of redemption at a redemption price equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If a "fundamental change" (as defined in the indenture for the notes) occurs, then noteholders may require the Issuer to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. The net proceeds from the offering are estimated to be approximately $120.6 million (or approximately $138.7 million if the initial purchasers fully exercise their option to purchase additional notes), after deducting the initial purchasers' discounts and commissions and estimated offering expenses. The Issuer expects to make an intercompany loan to the company of all of the net proceeds from this offering. The company intends to use approximately $11.2 million of such loan to pay the cost of the capped call transactions described below, and to use up to approximately $41.3 million of such loan to redeem all of the company's outstanding 10.50% Series E Convertible Preferred Stock (assuming such redemption occurs on April 10, 2021, all such shares remain outstanding through such date and none of such shares are converted into the company's common stock prior to such redemption). The company intends to use the remaining net proceeds for working capital and other general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, the Issuer expects to make an intercompany loan to the company of all of the net proceeds from the sale of additional notes, which the company intends to use to pay the cost of additional capped call transactions and for working capital and other general corporate purposes. The company may also use a portion of such loans for the acquisition of, or investment in, technologies, solutions or businesses that complement the company's business, although it has no commitments to enter into any such acquisitions or investments at this time. In connection with the pricing of the notes, the company entered into privately negotiated capped call transactions with the initial purchasers or their affiliates. The capped call transactions cover, subject to customary adjustments, the number of shares of the company's common stock that initially underlie the notes. The capped call transactions are expected to reduce or offset the potential dilution of the company’s common stock as a result of any exchange of the notes and/or offset any potential cash payments the Issuer is required to make in excess of the principal amount of exchanged notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional notes, the company expects to enter into additional capped call transactions with the option counterparties. The cap price of the capped call transactions will initially be approximately $28.02 per share of the company's common stock, which represents a premium of approximately 75.0% over the last reported sale price of the company's common stock of $16.01 per share on March 9, 2021, and is subject to certain adjustments under the terms of the capped call transactions. In connection with establishing their initial hedges of the capped call transactions, the option counterparties and/or their respective affiliates may purchase shares of the company's common stock and/or enter into various derivative transactions with respect to the company's common stock concurrently with, or shortly after, the pricing of the notes, including with certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of the company's common stock or the notes at that time. In addition, the option counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the company's common stock and/or purchasing or selling the company's common stock or other securities in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date for the capped call transactions, which are expected to occur during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity date of the notes). This activity could also cause or avoid an increase or decrease in the market price of the company's common stock or the notes, which could affect the ability of noteholders to exchange the notes, and, to the extent the activity occurs during any observation period related to an exchange of notes, it could affect the number of shares of the company's common stock and value of the consideration that holders of the notes will receive upon exchange of the notes. Neither the notes, nor any shares of the company's common stock potentially issuable upon exchange of the notes, have been, nor will be, registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. About Avid Bioservices Avid Bioservices -- http://www.avidbio.com-- is a dedicated contract development and manufacturing organization (CDMO) focused on development and CGMP manufacturing of biopharmaceutical drug substances derived from mammalian cell culture. The company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With over 28 years of experience producing monoclonal antibodies and recombinant proteins, Avid's services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs, the company provides a variety of process development activities, including upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of its services ranges from standalone process development projects to full development and manufacturing programs through commercialization. Avid Bioservices reported a net loss of $10.47 million for the year ended April 30, 2020, a net losses of $4.21 million for the year ended April 30, 2019, and a net loss of $21.81 million for the year ended April 30, 2018. As of Jan. 31, 2021, the Company had $168.18 million in total assets, $82.81 million in total liabilities, and $85.37 million in total stockholders' equity. AVIENT CORP: Moody's Affirms Ba2 CFR on Clariant Acquisition ------------------------------------------------------------ Moody's Investors Service affirmed Avient Corporation's Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating, Ba1 senior secured bank credit facility rating and Ba3 senior unsecured notes rating. The outlook remains stable. "The rating affirmation reflects Avient's progress integrating the acquisition of Clariant's Masterbatch business and resilient financial performance during the pandemic," said Domenick R. Fumai, Moody's Vice President and lead analyst for Avient Corporation. Affirmations: Issuer: Avient Corporation Corporate Family Rating, Affirmed Ba2 Probability of Default Rating, Affirmed Ba2-PD Senior Secured Bank Credit Facility, Affirmed Ba1 (LGD2) Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD5) Outlook Actions: Issuer: Avient Corporation Outlook, Remains Stable RATINGS RATIONALE The affirmation reflects credit metrics that are returning to levels more consistent with the current rating as a result of the company's resilient operating performance during the pandemic as well as the progress integrating the Clariant Masterbatch business. The rating reflects the company's enhanced scale, geographic reach and improved business profile following its recent portfolio transformation. Over the last several years, Avient has divested its PP&S business segment in 2019, which was highly exposed to cyclical end markets such as autos, industrial and construction. The company subsequently completed the acquisition of Clariant Masterbatch in July 2020 increasing exposure to higher growth and less economically sensitive end markets such as packaging, healthcare and consumer goods. Avient now derives approximately 87% of its EBITDA from specialty applications and about 60% of revenue from those end markets on a pro forma basis. The exposure to these less cyclical end markets was a major contributing factor to the company's FY 2020 performance, in which pro forma sales of $3.78 billion declined only 5% from the prior year while EBITDA grew from $440 million to $456 million. While auto production significantly declined during 2020 and industrial production contracted, healthcare, packaging and consumer demand remained robust due to the pandemic. Avient's rating further incorporates good liquidity and consistently solid free cash flow generation due to the company's asset-light business model. Avient's rating is constrained by expectations that leverage will temporarily remain at the lower end of Moody's expected range for the Ba2 CFR; however, adjusted Debt/EBITDA is projected to decline towards 3.7x in FY 2022 as global economic conditions continue to improve and as the Clariant Masterbatch acquisition further contributes to profitability. Moody's expects continued healthy demand in its key end markets and some volume recovery in the more cyclical sectors as well as cost synergies from the Clariant Masterbatch integration to result in additional EBITDA growth in FY 2021. The rating further contemplates Avient's capital allocation policy to be prudently balanced between bolt on M&A, though another sizable acquisition would likely place downward pressure on the ratings, as well as modest share repurchases and dividend payments. The rating is further limited by Avient's exposure to several end markets that are highly cyclical including transportation, of which autos is the largest concentration, as well as industrial, electrical and electronics. Furthermore, despite a good track record of integrating prior acquisitions, and progress thus far, there are still some integration risk concerns surrounding the Clariant Masterbatch acquisition given its size. The SGL-2 rating reflects expectations that Avient will maintain good liquidity over the next 12 months. Liquidity is supported by cash on the balance sheet of roughly $650 million as of December 31, 2020, and an expectation of positive free cash flow in FY 2021 and FY 2022. Moody's expects Avient to maintain cash balances of around $500 million over the next 12 months but does not expect the company to repay a significant amount of debt. Liquidity is further boosted by about $280 million in revolving credit availability as of December 31, 2020. Debt capital is comprised of $632.6 million first lien term loan due 2026, $600 million 5.25% senior unsecured notes due 2023, $650 million 5.75% senior unsecured notes due 2025 and modest additional debt. The Ba1 ratings on the senior secured credit facility, one notch above the Ba2 CFR, reflects a first priority lien on substantially all domestic assets. The Ba3 rating on the unsecured notes reflects effective subordination to the secured debt. The stable outlook reflects Moody's view that the company will continue making progress in deleveraging with expectation that adjusted financial leverage (Debt/EBITDA) remains between 3.5-4.0x and also factors continued solid free cash flow generation and that it maintains good liquidity to support operations. The stable outlook further assumes that the integration remains on track and that the $75 million cost synergy target is reached by the end of the third year. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the rating with expectations for retained cash flow-to-debt (RCF/Debt) sustained above 20% and adjusted financial leverage sustained below 3.0x. An upgrade would also require a commitment to more conservative financial policies. Moody's would likely downgrade the rating with expectations for retained cash flow to debt sustained below 15%, adjusted financial leverage sustained above 4.0x, or available liquidity below $400 million. Furthermore, ratings can be downgraded if there is a significant debt-funded acquisition and failure to obtain the targeted cost synergies. ESG CONSIDERATIONS Moody's also considers environmental, social and governance considerations in Avient's rating. Although Avient is a specialty chemical company, environmental liabilities based on probable future expenditures are ample relative to the company's size and totaled $119.7 million as of December 31, 2020, though Moody's do not view this as currently impacting the credit profile due to the long tail nature of these liabilities. Changes in regulation, estimates or new developments could result in future additional costs, which may adversely impact the credit profile. The company became a founding member of the Alliance to End Plastic Waste in 2019, a collective that aims to practice sustainable developments and build innovative solutions to facilitate reduction, reuse and the recycling of plastics. Avient maintains a sound corporate sustainability program and many of its products have social and environmental benefits that help customers be more eco-conscious such as light-weighting, reducing packaging waste and improving recyclability. The company's long term focus on sustainability is another credit positive. Governance risk is viewed as below average given the company's status as a publicly traded company, with an independent board of directors and SEC financial reporting requirements. Avient Corporation, headquartered in Avon Lake, Ohio, is a global provider of customized polymers and services. Avient develops performance enhancing additives, as well as liquid, fluoropolymer, and silicone colorants. The company operates in three business segments: 1) Color Additives & Inks 2) Specialty Engineered Materials and 3) Distribution. Avient reported revenue of approximately $3.2 billion for the fiscal year ended December 31, 2020. The principal methodology used in these ratings was Chemical Industry published in March 2019. BEN CLYMER'S: Trustee Gets OK to Hire NAI Capital as Broker ----------------------------------------------------------- Todd Frealy, the trustee appointed in the Chapter 11 case of Ben Clymer's The Body Shop Perris Inc., received approval from the U.S. Bankruptcy Court for the Central District of California to hire NAI Capital Commercial, Inc. The trustee requires the services of a real estate broker to market and sell the vacant lot located on the Southwest corner of Kalmia St. and Hayes Ave. in Murrieta, Calif. Pimlico Ranch, LLC, an affiliate of Ben Clymer's, owns the property. The trustee agrees to pay NAI Capital and any real estate broker representing the ultimate buyer a 6 percent commission on the gross sales price. Chris Jackson, the co-chief executive officer of NAI Capital, disclosed in a court filing that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Chris Jackson NAI Capital Commercial, Inc. 15821 Ventura Blvd., Suite 320 Encino, CA 91436 Tel: 818-905-2400 Fax: 818-905-2524 About Ben Clymer's The Body Shop Perris Ben Clymer's The Body Shop Perris Inc. is an auto body repair and painting company offering, among other services, unibody and frame repair, glass repair, dent removal, paintless dent removal, paint matching on site, chip and scratch repair, and buffing and polishing. Ben Clymer's The Body Shop Perris sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-14798) on July 15, 2020. At the time of the filing, the Debtor disclosed total assets of $2,838,204 and total liabilities of $6,874,527. Judge Scott C. Clarkson oversees the case. The Debtor is represented by the Law Offices of Robert M. Yaspan. Todd A. Frealy is the Chapter 11 trustee appointed in the Debtor's case. The trustee is represented by Levene, Neale, Bender, Yoo & Brill, LLP. BRAZOS ELECTRIC: U.S. Trustee Appoints Creditors' Committee ----------------------------------------------------------- The U.S. Trustee for Region 7 on March 15 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Brazos Electric Power Cooperative Inc. The committee members are: 1. MUFG Bank, Ltd. Attn: David Helffrich 500 N. Akard St., Suite 4200 Dallas, TX 75248 Tel: 214-922-4247 E-mail: david.helffrich@unionbank.com Counsel: Sidley Austin, LLP Duston McFaul, Esq. 1000 Louisiana St., Suite 5900 Houston, TX 77002 Tel: 713-495-4516 E-mail: dmcfaul@sidley.com 2. Pension Benefit Guaranty Corporation Attn: Michael Strollo 1200 K Street, N.W. Washington, D.C. 20005 Tel: 202-229-4907 Fax: 202-326-4138 E-mail: strollo.michael@pbgc.gov Counsel: Andrea Wong, Esq. Quinette Bonds, Esq. Melissa Harris, Esq. Pension Benefit Guaranty Corporation 1200 K Street, N.W. Washington, D.C. 20005 Tel: 202-229-3019 Fax: 202-326-4138 E-mail: harris.melissa@pbgc.gov 3. Viridiana Garcia c/o Anne Andrews, Esq. 4701 Von Karman Ave., Suite 300 Newport Beach, CA 92660 Tel: 254-800-5405 E-mail: w_martinez07@yahoo.com Counsel: Andrews & Thornton Anne Andrews, Esq. 4701 Von Karman Ave., Suite 300 Newport Beach, CA 92660 Tel: 949-748-1000 Fax: 949-315-3540 E-mail: aa@andrewsthornton.com 4. Stefano Russolillo 2917 Dockside Drive Little Elm, TX 75068 Tel: 972-768-0350 E-mail: srussolillo@me.com Counsel: Robins Cloud LLP Ian P. Cloud, Esq. 2000 West Loop South, Suite 2200 Houston, TX 77027 Tel: 713-650-1200 Fax: 713-650-1400 E-mail: icloud@robinscloud.com 5. Leslie Hixson 1400-B County Road 387 Bartlett, TX 76511 Tel: 254-780-7574 E-mail: cameo1382@gmail.com Counsel: D. Miller & Associates, PLLC Rochelle Guiton, Esq. 2610 W. Sam Houston Pkwy., Suite 200 Houston, TX 77042 Tel: 713-850-8600 Fax: 713-366-3463 E-mail: rochelle@dmillerlaw.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Brazos Electric Power Cooperative Brazos Electric Power Cooperative Inc. is a 3,994-megawatt transmission and generation cooperative which members' service territory covers 68 counties from the Texas Panhandle to Houston. It was organized in 1941 and the first cooperative formed in the Lone Star state with the primary intent of generating and supplying electrical power. At present, Brazos Electric is the largest generation and transmission cooperative in the state and is the wholesale power supplier for its 16 member-owner distribution cooperatives and one municipal system. Brazos Electric filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No. 21-30725) on March 1, 2021. At the time of the filing, the Debtor disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge David R. Jones oversees the case. Brazos Electric hired Norton Rose Fulbright and Dallas partner Louis Strubeck, to lead its restructuring effort. Lawyers say that Foley & Lardner LLP bankruptcy partner Holland O'Neil is also advising Brazos Electric. Stretto is the claims and noticing agent. BRIGGS & STRATTON: Professional Fees Reach $45 Mil. in Case ----------------------------------------------------------- Rich Kirchen of the Milwaukee Business Journal reports that the professional fees have reached $45 million in Briggs & Stratton's bankruptcy cases. According to the report, driven largely by a nearly $20 million fee for Briggs & Stratton Corp.'s investment-banking firm and another $11.2 million for its bankruptcy law firm, professional fees totaled $45.1 million for the company's Chapter 11 case. Milwaukee-area bankruptcy lawyers said the fees for law firms and other professionals in the case were within the normal range for this size case. However, the pending $19.64 million payment to investment banking firm Houlihan Lokey Capital Inc. stood out for some area attorneys. "The billing rates are astronomical but par for the course for a large case like this," said one Milwaukee attorney who spoke on the condition of anonymity. Investment banking firms are engaged under different fee arrangements than law firms that can result in larger payments than those paid to bankruptcy lawyers, two Milwaukee attorneys said. "I was surprised at the size of the Houlihan award," said another Milwaukee attorney who also declined to be identified. Houlihan Lokey, in its request for funds, described its charges as "reasonable and necessary given the variety and complexity of the issues involved in this case." The bottom line is that despite the significant payments to Houlihan Lokey and others, the Briggs & Stratton Chapter 11 remains on track to pay unsecured creditors in the range of 7 cents to 10 cents on the dollar. That represents a "really good" payment for such a large case, said the attorney who spoke on the condition of anonymity. Briggs & Stratton filed for Chapter 11 bankruptcy in July 2020 and in September 2020 announced the company was being sold to KPS Capital Partners of New York City. While KPS has been running the company now known as Briggs & Stratton LLC for months, the Chapter 11 case continues with post-sale procedures in U.S. Bankruptcy Court. Bankruptcy Court judge Barry Schermer in Missouri already has approved paying some of the fees. Other payment submissions, including one from Houlihan Lokey, are pending and scheduled for a hearing in April 2021. The fees paid to professional-services firms come from funds remaining after secured creditors are paid. After the professional-services bills are paid, the balance of funds are divided among unsecured creditors. Briggs & Stratton retained Houlihan Lokey, of Chicago, to perform multiple services during the case. The investment banking firm listed as one of its central roles as negotiating a "global settlement" among Briggs, the unsecured creditors committee, KPS, the Pension Benefit Guaranty Corp. and Briggs' lenders. Houlihan Lokey said it increased financial recoveries for unsecured creditors by negotiating concessions from numerous parties in the case. The result was "essentially a fully consensual sale" of Briggs that paved the way for a consensus among the parties for the company's financial reorganization, Houlihan said. Another service Houlihan Lokey performed was providing operational and financial information on Briggs and its subsidiaries to prospective buyers including KPS. "Houlihan Lokey's services have been substantial, necessary and beneficial to the debtors (Briggs)," Reid Snellenbarger, a managing director and a member of the firm's financial restructuring group, said in the company's application for payment. The firm's requested compensation is comparable to customary charges by other practitioners, Snellenbarger said. Representatives of Briggs & Stratton Corp. didn’t respond to requests for comment. The company's lead law firm in the bankruptcy case was Weil Gotshal & Manges LLP of New York City. The firm described the case as complex and said in its application for payment that it delivered "incredibly successful" results within an expedited time frame. Also on the Briggs legal team as special counsel was Milwaukee-based Foley & Lardner LLP, which applied for payments of $1,635,000. The third-highest amount sought by professional services firms is from Ernst & Young LLP for $7.12 million. Briggs retained the firm as a financial adviser and tax adviser to Briggs & Stratton. Another notable payment was for the law firm that represented the official unsecured creditors committee. Schermer approved a payment of about $1.8 million to Brown Rudnick LLP of New York City. About Briggs & Stratton Corp. Briggs & Stratton Corporation is a producer of gasoline engines for outdoor power equipment and a designer, manufacturer and marketer of power generation, pressure washer, lawn and garden, turf care, and job site products. The Company's products are marketed and serviced in more than 100 countries on six continents through 40,000 authorized dealers and service organizations. Visit https://www.basco.com/ for more information. Briggs & Stratton Corporation and four affiliates concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mo. Lead Case No. 20-43597) on July 20, 2020. The petitions were signed by Mark A. Schwertfeger, senior vice president and chief financial officer. At the time of the filing, Briggs & Stratton Corporation disclosed total assets of $1,589,398,000 and total liabilities of $1,350,058,000 as of March 29, 2020. Judge Barry S. Schermer oversees the cases. The Debtors tapped Weil, Gotshal & Manges LLP as bankruptcy counsel; Carmody MacDonald P.C. as local counsel; Foley & Lardner LLP as corporate counsel; Houlihan Lokey Inc. as investment banker; Ernst & Young, LLP as restructuring and tax advisor; Deloitte LLP as auditor and tax consultant; and Kurtzman Carson Consultants, LLC as claims and noticing agent. The Office of the U.S. Trustee appointed a committee to represent unsecured creditors in Debtors' Chapter 11 cases. * * * In October 2020, KPS Capital Partners LP, through a newly formed affiliate, acquired substantially all the assets of Briggs & Stratton Corp. and certain of its wholly owned subsidiaries. BWX TECHNOLOGIES: S&P Affirms 'BB' ICR, Outlook Stable ------------------------------------------------------ S&P Global Ratings affirmed its 'BB' issuer credit rating on BWX Technologies Inc. and its 'BB' issue-level rating on its senior unsecured notes. S&P said, "The stable outlook reflects our expectation that, despite our forecast for improving earnings, we believe BWX's increased capital expenditure requirements over the next few years will limit its free cash flow. "We expect the company to modestly expand its EBITDA, though we believe its free cash flow will likely remain weak. Given the nature of the naval nuclear reactor business, we have good visibility into BWX's future revenue. Specifically, we forecast a modest increase in its revenue in 2021 and a slight decline in 2022, though improvements in its other segments could offset that decline. While we forecast BWX will only modestly increase its revenue, we expect its EBITDA to improve at a slightly faster pace because it divested a less-profitable portion of its business in June 2020, which will improve its EBITDA margins. However, despite our forecast for improving earnings, we expect the company's free cash flow to remain constrained as it continues to increase its capital spending, largely related to its efforts to commercialize the Moly-99 medical isotope and increase the capacity of its naval nuclear reactor business for the Columbia-class ballistic submarine. The Moly-99 project has already faced delays and higher-than-expected costs and there is some risk that its capital spending needs will continue to exceed our expectations and it may take longer than anticipated to become profitable. "Shipbuilding budgets will likely remain robust. We don't expect significant changes to U.S. defense spending under the Biden Administration and shipbuilding remains well supported in Congress. With a total backlog of approximately $4.4 billion (more than 2x annual sales), BWX has good revenue visibility. We expect the company to manufacture the Virginia Class submarine at a rate of two vessels per year (with the potential for a faster pace) and the Columbia class submarine at a rate of almost one per year starting in 2024. Additionally, we expect BWX to produce a Ford Class aircraft carrier every four years. BWX has not been significantly affected by the COVID-19 pandemic. Given that the company derives a large portion of its business from the U.S. military and another significant portion from critical areas, such as nuclear power plants and hospitals, the demand for its services has been largely unaffected by the coronavirus pandemic. In addition, BWX has not dealt with any supply chain issues or significant internal disruptions due to the pandemic. The only area of the company's business that has been negatively affected is its medical business given that elective procedures were temporarily suspended for a portion of 2020. S&P saod, "The stable outlook on BWX reflects our expectation that, despite our forecast it will modestly improve its earnings over the next few years, its increased capital spending needs will limit the improvement in its free cash flow, which we expect will remain weak into 2022. We expect the company's free operating cash flow (FOCF) to debt to be in the 0%-5% range while it reports funds from operations (FFO) to debt of about 30% and debt to EBITDA in the 2.0x-2.5x range over the next two years." S&P could raise its ratings on BWX if its FOCF to debt increases above 10% and its FFO to debt rises above 30% on a sustained basis. This could occur if: -- It expands its earnings faster than S&P expects due to a rapid increase in its revenue or rising profitability; or -- Its cash generation is stronger than S&P expects due to lower working capital outflows or capital expenditure. S&P could lower it ratings on BWX if its FFO to debt falls below 20% or its debt to EBITDA rises above 4x. This could occur if: -- There are significantly higher costs involved in, and additional delays to, the launch of Moly-99; -- There is a significant decline in the funding for nuclear warships or lower demand in nondefense markets; or -- The company makes large debt-financed acquisitions or share repurchases, though S&P views this as unlikely under management's historically conservative financial policy. CALIFORNIA-NEVADA METHODIST: 2 Retirement Centers in Chapter 11 --------------------------------------------------------------- California-Nevada Methodist Homes has sought Chapter 11 protection with its two continuing care retirement communities potentially headed to the auction block. CNMH is a not-for-profit corporation that operates two continuing care retirement communities. One of the CCRCs, known as Lake Park, is located in Oakland, California. The other CCRC, known as Forest Hill, is located in Pacific Grove, California. CNMH has been in business for close to 70 years, since 1954. Lake Park has 155 residents and Forest Hill has 70 residents. CNMH has a total of 223 employees. Steven A. Nerger, a partner in the firm of Silverman Consulting, who is presently serving as CRO of the Debtor, explains that in recent years, CNMH has faced a growing number of financial challenges. These challenges have resulted from, among other contributing factors, changing attitudes of seniors towards institutional care, the difficulty that smaller CCRCs like CNMH have in achieving "economies of scale" from purchasing and pricing standpoints, direct competition from nearby communities, and the devastating impact of the COVID-19 pandemic. These challenges have directly led to the commencement of this Chapter 11 case. The Debtor intends to continue operating its CCRCs during the Chapter 11 cases. In its motion to use cash collateral, the Debtor said that it requires the use of cash collateral to retain and pay costs of professionals, consultants and advisors who will enable the Debtor to reorganize the Debtor or, if appropriate, market the Debtor for potential sale, in a manner that maximizes value for the Debtor's estate and its creditors, as may be approved by the Court. Taken together, the services provided by all of the foregoing parties and other entities are critical to the preservation of the Debtor's business and asset value. About California-Nevada Methodist Homes California-Nevada Methodist Homes -- http://www.cnmh.org/-- is a California non-profit public benefit corporation that operates nursing homes & long-term care facilities. It presently operates two continuing care retirement communities, one known as Lake Park, in Oakland California, and the other, known as Forest Hill, in Pacific Grove, California. On March 16, 2021, California-Nevada Methodist Homes filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 21-40363). The Debtor estimated assets of $10 million to $50 million and liabilities of $50 million to $100 million. The Hon. Charles Novack is the case judge. Hanson Bridgett LLP, led by Neal L. Wolf, is the Debtor's counsel. Silverman Consulting is the financial advisor. Stretto LLC is the claims agent. CHEMOURS CO: S&P Alters Outlook to Positive, Affirms 'B+' ICR ------------------------------------------------------------- S&P Global Ratings revised the outlook to positive from negative and affirmed its 'B+' issuer credit rating on The Chemours Co. S&P also affirmed all its issue-level ratings on Chemours. The recovery ratings remain unchanged. S&P said, "The positive outlook reflects our view that we could raise the ratings on Chemours over the next few quarters if the company continues to deliver on its expected earnings in line with our projections. "The outlook revision reflects Chemours' better-than-anticipated performance and our view that its credit metrics will continue to strengthen over the next one to two years. We now anticipate that the ratio of funds from operations (FFO) to total debt will be in the 15% to 20% range over the next two years on a weighted-average basis, compared with previous expectations slightly below 15%. We expect that combined earnings from its three major businesses; the titanium dioxide business (Tio2), thermal & specialized solutions (TSS), and advanced performance materials (APM) business, will grow by mid- to high-single digits in 2021. A key underlying assumption we make is that economic activity will continue to recover in the U.S., Europe, and China in 2021. Furthermore, we believe Chemours will continue its successful efforts at gaining back Tio2 market share lost in 2019 when the company aimed to move to longer-term contract agreements. We believe these market share gains in part will boost 2021 EBITDA and credit metrics, to levels above those achieved in 2019. However, we still view Chemours' leverage metrics as relatively weaker than similarly rated peers such as Albaugh LLC." The outlook revision does not factor in potential increases in environmental liabilities beyond those already provided for by the company. Chemours has signed an agreement with Dupont and Corteva to split any additional liabilities with respect to all legacy polyfluoroalkyl substances (PFAS) litigation. The agreement provides a framework in which Chemours and DuPont/Corteva agree to split, 50/50 from the start of the agreement, all legacy (pre-July 2015) PFAS liabilities for 20 years or $4 billion, whichever is sooner. The company plans to place $500 million in an escrow account over the next eight years to cover any associated settlements. S&P said, "We believe the escrow account will be more than sufficient to cover any potential settlements and do not anticipate any increase in these liabilities over the next 12 months. We believe the sharing agreement with Dupont and Corteva benefits Chemours and therefore we view it as credit positive, relative to our previous expectations." S&P said, "Our business risk profile assessment incorporates our view of the company's strengths, including its competitive advantages and a market-leading position (despite recent market share losses) in its key product TiO2, as well as in its TSS, APM, and chemical solutions business. In particular, Chemours' large scale, low-cost position, and technological strengths relative to other TiO2 players contribute to its market leadership position. The large scale of the company's plants and its technological capabilities enable it to use a large variety of inputs that contribute to its low-cost position. The company produces TiO2 using the chloride process, which generally generates a superior, higher-value product than the alternate sulfate process. "Our assessment of the business risk profile also incorporates key risks. Chief among these are the potential for volatility in EBITDA arising from exposure to a competitive commodity product and the absence of substantial diversity in earnings sources. In addition, demand is linked to GDP and is susceptible to economic downturns. We believe Chemours' earnings and margins from businesses other than TiO2 are good but not significant enough to fully offset this volatility, even after factoring in the improvement in these businesses. Still, we believe that Chemours' strengths, particularly its market leadership and competitive advantages, position it at the high end of the fair business risk profile relative to companies with similar profiles. "The positive outlook on Chemours reflects our expectations for stronger earnings and credit metrics over the next year. We project Chemours' metrics such as weighted average FFO to debt to be in the 15% to 20% range. Our base case scenario assumes the company will be able to expand EBITDA and margins beyond pre-pandemic levels. We base these assumptions on our belief that demand in key end markets will recover faster than our previous expectations in the U.S., Europe, and China. Our base case assumes that management successfully wins back a significant portion of market share lost in 2019. We factor in known environmental and contingent liabilities into our rating, and do not, at this point, assume a sizable increase in these liabilities beyond those provided. We do not assume any acquisitions, debt-funded shareholder rewards, or sale of any significant businesses in our base case. "We could revise our outlook to stable on Chemours over the next year if we expected the weighted-average FFO-to-debt ratio to drop below 15%. This could occur if earnings did not rebound as quickly as we anticipated as a result of the disruptive effect and fallout of the coronavirus situation. TiO2 pricing and demand slowly increased the past few months of 2020, but if end markets stall demand and pricing is pressured, metrics could weaken. We could also lower the rating if it became apparent that the current provisions and accruals for contingent liabilities were insufficient and these provisions would likely increase substantially. "We could consider raising our ratings on Chemours over the next couple of quarters if the company continues to deliver earnings in line with our projections. In this scenario, we expect the ratio of FFO to total debt to remain sustainably above 15%. For the ratings upgrade, we would require a brief demonstrated track record of at least a couple of quarters of improving volumes and margins. However, we would consider the volatility in earnings from the TiO2 business and assess the sustainability of such improvement before considering an upgrade." CHESAPEAKE SAILING: Gets OK to Hire Steven B. Preller as Counsel ---------------------------------------------------------------- Chesapeake Sailing Charters, LLC, received approval from the U.S. Bankruptcy Court for the District of Maryland to hire the Law Offices of Steven B. Preller as its legal counsel. The Debtor requires legal counsel to prepare a plan of reorganization, seek approval of the plan and give legal advice on its responsibilities in its Chapter 11 case. The Law Offices of Steven B. Preller will be paid at the hourly rate of $225 and will receive reimbursement for work-related expenses incurred. Steven Preller, Esq., disclosed in a court filing that he is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Steven B. Preller, Esq. Law Offices of Steven B. Preller 130 Holiday Court, Suite 108 Annapolis, MD 21401 Phone: (410) 573-1611 Email: spreller@msn.com About Chesapeake Sailing Charters Chesapeake Sailing Charters, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 20-20989) on Dec. 26, 2020. At the time of the filing, the Debtor disclosed assets of between $500,001 and $1 million and liabilities of the same range. Judge Nancy V. Alquist oversees the Debtor's case. The Debtor is represented by the Law Offices of Steven B. Preller. CHINA FISHERY: Kirkland & Ellis Updates on Noteholders ------------------------------------------------------ In the Chapter 11 cases of China Fishery Group Limited (Cayman), et al., the law firm of Kirkland & Ellis 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 that it is representing. K&E's representation of certain entities that hold, or that act as investment manager of or advisor to certain funds, controlled accounts, and/or other entities that hold or are beneficial owners of the 9.75% Senior Notes Due 2019, the Club Loan Facility obligations that matured as of 2018, and claims arising under that certain $35 million facility letter dated August 26, 2014 among Bank of America, N.A., China Fisheries International Limited, and South Pacific Shipping Agency Limited. K&E previously represented certain entities in their capacities as holders of the Senior Notes. K&E represents only the Ad Hoc Group and does not represent or purport to represent any entity other than the Ad Hoc Group, in connection with the Debtors' chapter 11 cases. In addition, the Ad Hoc Group does not represent or purport to represent any other entity in connection with the Debtors' chapter 11 cases at this time. As of March 16, 2021, the Committee Members and their disclosable economic interests are: Burlington Loan Management DAC Pinnacle 2 Eastpoint Business Park Dublin 3 Ireland * $65,571,000 principal amount of Senior Notes * $53,250,000 principal amount of Club Loans Cowell & Lee Asia Credit Opportunities Fund c/o Cowell & Lee Capital Management Limited Room 1501 Ruttonjee House, 11 Duddell Street Central Hong Kong People's Republic of China * $47,282,000 principal amount of Senior Notes Monarch Alternative Capital LP 50-52 Welbeck Street 1st Floor London, United Kingdom W1G 9HL * $32,101,000 principal amount of Senior Notes * $115,629,369 principal amount of Club Loans * $30,998,083.56 of CF Facility Claims VCFG, LLC 3600 West 80th Street Suite 225 Minneapolis, MN 55431 * $80,000,000 principal amount of Club Loans SC Lowy Primary Investments, Ltd. 8 Queens Road Central 17th Floor Hong Kong People's Republic of China * $9,874,000 principal amount of Senior Notes * $18,500,000 principal amount of Club Loans Arkkan Capital Management Limited 8 Queens Road Central 23rd Floor Hong Kong People's Republic of China * $11,122,000 principal amount of Senior Notes * $12,000,000 principal amount of Club Loans Deutsche Bank, London Branch c/o: Deutsche Bank AG Hong Kong Branch 61/F, International Commerce Centre 1 Austin Road West Kowloon, Hong Kong * $7,185,000 principal amount of Senior Notes * $18,173,076.60 principal amount of Club Loans Counsel to the Ad Hoc Group can be reached at: KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP Patrick J. Nash, Jr., P.C., Esq. Gregory F. Pesce, Esq. Heidi M. Hockberger, Esq. 300 North LaSalle Chicago, IL 60654 Telephone: (312) 862-2000 Facsimile: (312) 862-2200 A copy of the Rule 2019 filing is available at https://bit.ly/3vIGbl0 at no extra charge. About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. In the petition signed by CEO Ng Puay Yee, China Fishery Group was estimated to have assets at $500 million to $1 billion and debt at $10 million to $50 million. The cases are assigned to Judge James L. Garrity Jr. Weil, Gotshal & Manges LLP has been tapped to serve as lead bankruptcy counsel for China Fishery and its affiliates other than CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal replaces Meyer, Suozzi, English & Klein, P.C., the law firm initially hired by the Debtors. The Debtors have also tapped Klestadt Winters Jureller Southard & Stevens, LLP, as conflict counsel; Goldin Associates, LLC, as financial advisor; RSR Consulting LLC as restructuring consultant; and Epiq Bankruptcy Solutions, LLC, as administrative agent. Kwok Yih & Chan serves as special counsel. On Nov. 10, 2016, William Brandt, Jr., was appointed as Chapter 11 trustee for CFG Peru Investments Pte. Limited (Singapore), one of the Debtors. Skadden, Arps, Slate, Meagher & Flom LLP serves as the trustee's bankruptcy counsel; Hogan Lovells US LLP serves as special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP, serves as special litigation counsel. CICI'S HOLDINGS: Successfully Emerges From Chapter 11 ----------------------------------------------------- On March 15, 2021, Cicis announced that it has successfully emerged from Chapter 11 protection, swiftly completing the process in less than two months. The reorganization, which has strengthened the corporate team, company operations and financial structure, coincides with the simultaneous D&G Investors acquisition of the brand. Cicis Enterprises entered into an agreement to sell the company to D&G Investors when it announced its restructuring plans in early February. D&G Investors, a newly-formed affiliate of SSCP Management and Gala Capital Partners, is a highly accomplished restaurant investment, ownership and operations team with a combined 60-plus years of success at the franchisee and franchisor levels. Together, the new ownership group owns and operates more than 200 restaurant locations in their collective portfolios. The sale to D&G Investors includes Cicis Enterprises, JMC Restaurant Distribution, and all of its assets and subsidiaries. As has been the case throughout the restructuring process, current Cicis restaurant operations will continue to serve our communities and customers with the best unlimited pizza around. "We are looking forward to partnering with D&G Investors going forward and ensuring the brand is poised for an extremely bright future," said Jeff Hetsel, President and COO. "For more than 35 years, Cicis has held a special place in the hearts, minds and appetites of many Americans and our focus is to ensure our guests keep that connection to our brand for many years to come." Cicis worked diligently to reorganize the company with creditors and additional entities over the last couple months to finalize the D&G Investors acquisition. As a result, D&G Investors is infusing its operational knowhow and investment capital to sustain near and long-term business objectives. Anand Gala, founder and managing partner of Gala Capital Partners, and Chris, Sunil and Puja Dharod, principals of SSCP Management, led the formation of D&G Investors. "Cicis has so many attributes that are appealing and we believe in a bright future in this post-pandemic world," said Chris Dharod. "While the pandemic has been a difficult time for many restaurant brands, not just Cicis, the brand does have staying power because of the strength of the brand and the business model. We are committed to advancing the company and working closely with franchisees to grow their businesses together." Currently, Cicis has operations in more than 30 states totaling just under 300 locations. Under D&G Investors, Cicis will benefit from the parent company's proven ability to scale concepts and refine unit-level economics through operational and supply chain efficiencies, which are already strengths of the Cicis business model. "Chris, Sunil and I are franchisee-focused leaders that share very similar principles in how we nurture and grow franchise systems. We are geared towards nurturing the success of our franchisees on a local level," said Gala. "At the same time, we see an enormous opportunity to use the proven business model Cicis has and expand on it to grow the franchise system into its potential." Confident that it is guiding the company in the right direction, Cicis is well-positioned to move beyond the challenges of the COVID-19 pandemic. Throughout the past 2020, persistent guest loyalty has demonstrated the strong bonds between the brand and its fans. Facilitating guest affinity have been enhanced safety protocols in the restaurants, the brand's popular MyCicis app, tech-enabled delivery, and curbside pick-up. The Cicis brand has been a symbol of the "Best Pizza Value Anywhere" with restaurants filled with delicious pizzas, salads, wings and desserts all for around $6. Financial details of the acquisition have not been made available. Cicis headquarters will remain in the Dallas area. About CiCi's Holdings CiCi's Holdings Inc. is the owner, operator and franchisor of family-oriented unlimited pizza restaurants. With approximately 318 locations across 26 states, including 11 owned restaurants and 307 franchise locations owned and operated by 128 franchisees, the CiCi's brand is known as a "go-to" destination for family and other group outings through its wide variety of pizza, pasta, and salad bar items and cost-effective price point. CiCi's Holdings and its affiliates sought Chapter 11 protection (Bankr. N.D. Tex. Lead Case No. 21-30146) on Jan. 25, 2021, with a restructuring support agreement for a plan that would have lender D&G Investors LLC take over ownership. D&G is an affiliate of private investment firm Gala Capital. Cici's Holdings was estimated to have $10 million to $50 million in assets and $50 million to $100 million in liabilities as of the bankruptcy filing. The Hon. Stacey G. Jernigan is the case judge. The Debtors tapped Gray Reed & McGRAW LLP as bankruptcy counsel and Piper Sandler & Co. as investment banker. Stretto is the claims agent. COSMOS HOLDINGS: To Swap $1 Million Debt for Equity --------------------------------------------------- Cosmos Holdings Inc. entered into a debt exchange agreement with an unaffiliated third-party lender and Grigorios Siokas, the Company's chief executive officer and principal shareholder, as Guarantor. The Agreement provides for the issuance by the Company of 259,741 shares of common stock, at the rate of $3.85 per share, in exchange for an aggregate of $1,000,000 principal amount of an existing loan made by the Lender to the Company. About Cosmos Holdings Cosmos Holdings Inc. is a multinational pharmaceutical wholesaler. The Company imports, exports and distributes pharmaceutical products of brand-name and generic pharmaceuticals, over-the-counter (OTC) medicines, and a variety of dietary and vitamin supplements. Currently, the Company distributes products mainly in the EU countries via its two wholly owned subsidiaries SkyPharm SA and Decahedron Ltd. Cosmos Holdings reported a net loss of $3,298,965 for the year ended Dec. 31, 2019, compared to a net loss of $9,060,658 for the year ended in 2018. As of Sept. 30, 2020, the Company had $38.57 million in total assets, $43.34 million in total liabilities, and a total stockholders' deficit of $4.77 million. The audit report of Armanino LLP dated April 14, 2020, states that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. COTY INC: S&P Affirms 'B-' Rating on Senior Unsecured Debt ---------------------------------------------------------- S&P Global Ratings affirmed its ratings on Coty Inc.'s debt facilities, including its 'B' rating on the senior secured debt and its 'B-' rating on the senior unsecured debt. S&P revised the senior unsecured debt recovery rating to '3' from '4', indicating its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default. S&P said, "The rating actions result from our review of the impact of the company's sale of 60% stake in the Wella business to KKR and the inclusion of the company's equity interest in King Kylie LLC into the company's collateral package. As part of the 2020 covenant holiday negotiation, Coty agreed to include 100% of its equity interests in King Kylie as part of the collateral pool. Under the company's credit agreement, equity interests in all other joint ventures and any other non-wholly-owned subsidiary are recognized as excluded equity interests, and therefore not part of the collateral package. "In our analysis of the transactions, we no longer include the projected debt service costs and capital expenditures related to Wella in our default EBITDA proxy because of Coty's sale of majority stake in the business. We have also updated our analysis to reflect the inclusion of Coty's stake in King Kylie's business into Coty's security package for its lenders. We utilize a discrete asset valuation (DAV) approach to value Coty's remaining 40% stake in Wella and the company's equity interest in King Kylie. In evaluating the recovery prospects for debtholders, we have valued the company on a going-concern basis using a combination of EBITDA multiple valuation for its base business and DAV for the company's ownership stakes in Wella and King Kylie LLC. "The review does not affect our 'B-' long-term issuer credit rating or negative outlook on Coty. We continue to believe the company's credit measures will improve in the second half of fiscal 2021 (ending June 2021) including free operating cash flow generation turning positive due to better sales trends and cost reductions. Despite the anticipated improvement, we expect credit measures to remain weak as the company continues its restructuring and faces ongoing headwinds caused by the pandemic. We forecast leverage at about 10x in 2021 (about 8.5x excluding preferred stock) and EBITDA interest coverage at about 2x." ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors The company's debt structure is composed of: -- A $2.75 billion revolving credit facility (with $456 million outstanding as of Dec. 31, 2020) maturing in April 2023; -- Term A facility with $1.9 billion outstanding as of Dec. 31, 2020, maturing in April 2023; -- Term B facility with $1.5 billion outstanding as of Dec. 31, 2020, maturing in April 2025; -- 2023 senior unsecured euro notes with $676 million outstanding as of Dec. 31, 2020, maturing in April 2023; -- 2026 dollar notes with $550 million outstanding as of Dec. 31, 2020 maturing in April 2026; and -- 2026 euro notes with $307 million outstanding Dec. 31, 2020, maturing in April 2026. Simulated default assumptions -- S&P's simulated default scenario contemplates a default in 2023, primarily due to missteps in executing its restructuring plan or due to a steep decline in demand for the company's products. S&P believes that in a distressed situation, funds from the company's operations would not be adequate to support the interest burden and cash needs for its operations. -- Coty Inc. is the borrower/issuer of all the debt. Coty BV is a co-borrower under the revolver. S&P continues to value the company on a going concern basis. The bank loans are guaranteed by the borrower and its direct and indirect wholly-owned domestic subsidiaries and secured by perfected first-priority security interest in substantially all assets of the borrower and each subsidiary guarantor, subject to certain exceptions, whether owned on the closing date or thereafter acquired. (All facilities are cross-guaranteed.) The unsecured notes are guaranteed direct and indirect wholly-owned domestic subsidiaries (U.S. and euro notes cross-guaranteed). -- The company has operations globally, with approximately 35% of its EBITDA generated in the U.S. and 65% overseas. The company's debt is incurred in the U.S. (with the exception of Coty BV being a co-borrower on the revolving credit facility), and each of the secured facilities are cross-guaranteed and cross-collateralized. In the event of an insolvency proceeding, the company would most likely file for bankruptcy protection under the auspices of the U.S. federal bankruptcy court system even though it has significant foreign operations, S&P does not assume any filings in foreign jurisdictions. The company could file for bankruptcy protection in foreign jurisdictions as well but in such a case, it would add complexity to the administration of the bankruptcy case and would incur additional bankruptcy-related costs, resulting in lower recovery prospects. -- S&P believes the company would be reorganized rather than liquidated under a default scenario, given Coty's portfolio of well-recognized brand names with strong market shares and its geographic diversity. -- S&P said, "We estimate $5.3 billion in gross recovery value at the time of default under our projected scenario. We base this on assumptions of the realization rates for Coty's ownership stakes in Wella and King Kylie as well as an assumption of an EBITDA multiple applied against the company's distressed emergence EBITDA under our hypothetical default scenario. Our analysis considers a 60% realization rate on the company's investments in Wella and King Kylie, resulting in a $1.3 billion combined DAV at default. We have valued the company's base business based on an enterprise value to gauge recovery and apply a 6.5x multiple on an assumed distressed emergence EBITDA of $645 million that results in an estimate gross recovery value of $4.2 billion. To determine net recovery value available for distribution to creditors, we reduced our estimate of total gross recovery value of $5.6 billion by 5% to account for estimated bankruptcy administrative expenses. This results in a total net recovery value of about $5.3 billion." Calculation of EBITDA at emergence -- Simulated year of default: 2023 -- Total debt service assumptions (assumed default year interest plus amortization): $600 million -- Minimum capex assumptions: $118 million -- Operational adjustment: -10% ($72 million) -- EBITDA multiple: 6.5x Simplified waterfall: -- Emergence EBITDA: $645.3 million -- Multiple: 6.5x -- Gross recovery value: $4.2 billion -- Gross asset value: $2.3 billion -- Realization rate: 60% -- DAV: $1.4 billion -- Total gross recovery value: $5.6 billion -- Net recovery value for waterfall after administrative expenses (5%): $5.3 billion -- Valuation split (obligor/nonobligors): 22%/57%/14%/7% -- Collateral for secured creditors: $3.3 billion -- First-lien claims: $5.6 billion -- Recovery expectation: 70%-90% (rounded estimate 80%) -- Collateral for unsecured creditors: $1.9 billion -- Unsecured claims: $3.8 billion -- Recovery expectation: 50%-70% (rounded estimate 50%) Note: All debt amounts at default include six months accrued pre-petition interest. CSI COMPRESSCO: GP OKs Amended COC Agreement With Senior VP ----------------------------------------------------------- CSI Compressco GP LLC, the general partner of CSI Compressco LP, a Delaware limited partnership, approved amendments to the change of control agreement with Roy E. McNiven, senior vice president of operations of the general partner. Mr. McNiven's original change of control agreement was executed in August 2020. Under the Amended COC Agreement, if Mr. McNiven resigns from the General Partner beginning July 29, 2021 and ending Feb. 4, 2022, the Company will have an obligation to pay Mr. McNiven (a) $550,000.00, less applicable tax withholdings and deductions, in a single lump sum payment; and (b) a pro rata short-term cash-based incentive plan award for 2021 to the extent the applicable performance objectives are met. The COC Agreement also provides for full acceleration of vesting of any outstanding restricted unit awards, phantom unit awards, and other unit-based awards upon Mr. McNiven's resignation to the extent permitted under the applicable plan. Mr. McNiven will not be eligible for payouts if resigns (i) prior to the Resignation Period claiming a material diminution in his authority, duties, or responsibilities or (ii) following the Resignation Period claiming Good Reason (as defined in the Existing COC Agreement), unless in either event such resignation follows a new Change of Control (as defined in the Existing COC Agreement) separate and apart from Spartan Energy Partners' acquisition of the General Partner. All payments and benefits due under the Amended COC Agreement or the Existing COC Agreement are conditioned upon the execution and nonrevocation by Mr. McNiven of a release for the Company's benefit. About Compressco CSI Compressco is a provider of compression services and equipment for natural gas and oil production, gathering, artificial lift, transmission, processing, and storage. CSI Compressco's compression and related services business includes a fleet of approximately 4,900 compressor packages providing approximately 1.2 million in aggregate horsepower, utilizing a full spectrum of low-, medium- and high-horsepower engines. CSI Compressco also provides well monitoring and automated sand separation services in conjunction with compression and related services in Mexico. CSI Compressco's aftermarket business provides compressor package reconfiguration and maintenance services. CSI Compressco's customers comprise a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. CSI Compressco is managed by Spartan Energy Partners. CSI Compressco reported a net loss of $73.84 million for the year ended Dec. 31, 2020, compared to a net loss of $20.97 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $709.96 million in total assets, $59.41 million in total current liabilities, $675.88 million in total other liabilities, and a total partners' deficit of $25.33 million. * * * As reported by the TCR on Feb. 25, 2021, Moody's Investors Service has completed a periodic review of the ratings of CSI Compressco LP and other ratings that are associated with the same analytical unit. Moody's said CSI Compressco's Caa1 corporate family rating reflects its modest scale relative to its peers and high but improving debt leverage. CWGS ENTERPRISES: S&P Upgrades ICR to 'B+' on Robust RV Demand -------------------------------------------------------------- S&P Global Ratings raised the issuer credit rating on CWGS Enterprises LLC to 'B+' from 'B' and the issue-level rating on its senior secured revolving credit facility and term loan to 'BB-' from 'B+'. The outlook is stable, reflecting anticipated robust EBITDA generation in 2021 and possibly 2022, and a leverage cushion compared to the 5x downgrade threshold. Despite CWGS's anticipated moderate leverage, rating upside is constrained by the company's acquisition and shareholder returns strategy, which is likely to be a significant use of cash in 2021. The upgrade reflects robust retail demand for RVs in 2021 and possibly 2022, which can enable CWGS to maintain adjusted debt to EBITDA well below 5x. The perception that RVs are a safe travel option during the COVID-19 pandemic will likely support continued high revenue and EBITDA generation at CWGS through 2021 and possibly for a portion of 2022. S&P said, "Our updated forecast is that total lease-adjusted debt to EBITDA will be in the low-3x area in 2021 and the 3x-3.5x range in 2022 if demand remains at least stable compared to 2021. CWGS recently updated its guidance for adjusted EBITDA in 2021 to be $640 million-$690 million, which anticipates sustained demand perhaps over the next couple of quarters similar to the past few months. We assume CWGS could have S&P-adjusted EBITDA margin in the low-teens percent area in 2021, similar to approximately 12% in 2020. We preliminarily assume its EBITDA margin could contract somewhat in 2022 as demand cools and the company continues spending to integrate acquired assets." The RV Industry Association, a trade organization that represents RV manufacturers, published that North American industry shipments will increase almost 24% in calendar year 2021 based on the midpoint of its shipments guidance. S&P said, "The demand is particularly strong for towables at entry-level prices, for which we believe CWGS is well-positioned. Publicly traded OEMs also report record backlogs, which reflects confidence dealers have in future retail demand. While backlogs are an imperfect indicator and subject to cancellation by dealers at any time without penalty, the recent spikes support our 2021 performance assumptions for CWGS. Inventory orders reflect dealers' gauge on consumer sentiment and the perception that RV travel provides a safe value proposition against competing air travel and other options until the second half of 2021, when we assume widespread immunity to COVID-19 could be achieved. We also believe the substantial backlog reflects a need to replenish dealer-level inventory, which has been reduced over the past several quarters." CWGS's acquisitive appetite and investment spending constrain further rating upside. CWGS has an ambitious expansion and investment plan, which includes store acquisitions, real estate development, expansion of the servicing and repairs footprint, preparation for servicing electric vehicles, and the creation of a peer-to-peer RV rentals platform. S&P said, "We estimate that CWGS's sizable investment plan could reduce year-end cash balances in 2021 compared to 2020. This is a source of risk, particularly if the acquisitions are made close to a potential moderation or decline in RV demand after 2021. CWGS's cash balances declined substantially in the fourth quarter of 2020 partly to fund its expansion plan, but also to return capital to shareholders. We believe the recent cash usage is indicative of liquidity uses over the coming quarters." CWGS has publicly reiterated a goal to have a presence in all 48 contiguous U.S. states, which would enable it to overcome regulatory hurdles related to interstate distribution and enhance the attractiveness of its footprint for partnerships with electric vehicle companies. S&P said, "We assume 20-30 store count additions in 2021 and that the pace of store additions will moderate in 2022. Contrary to integration problems with the Gander Outdoor lease acquisitions over the past few years, we understand the new plan seeks to add stores that have more familiar formats, sizes, and investment requirements. Over the intermediate term, the expansion could complement the RV servicing and repairs revenue streams, which is a relatively high-margin business, and lay the foundation for partnerships in electric vehicles, which we believe could benefit from long-term growth prospects." S&P said, "We assume the aggressive investment plan will be supported by cash flow from strong RV sales in the coming months. Potential proceeds from sale-leaseback transactions that could be completed over time are an additional source of acquisition capital, perhaps in 2022. We assume constructed or purchased stores would ramp up and begin to contribute EBITDA over 18 months. "Key risks are the sustainability of retail demand, economic uncertainty, and the potential for a mismatch between shipments and retail sales. We believe RV demand could soften following a spike in 2020 and 2021 as customers return to other forms of travel. Accordingly, we incorporate a sensitivity analysis in 2022 for this rating and outlook action that assumes a 10%-15% decline in total revenue, which could raise our measure of adjusted leverage toward our 5x downgrade threshold." S&P believes current strong RV demand is supported by factors that could cause the rate of retail growth to moderate or to moderately decline for a period if the pandemic is largely over. Recent RV demand might have been partly supported by stimulus payments in 2020 that added to the discretionary income of consumers who did not otherwise lose their jobs. The discontinuation of stimulus payments could cool off some demand. In addition, high unemployment or a longer-than-anticipated economic recovery could dampen demand for discretionary items such as RVs. Another potential source of volatility is high market share competition among OEMs in the RV industry, which in 2019 caused wholesale production and shipments to outpace retail demand and contributed to an industrywide inventory correction. Surplus inventory at dealerships led to discounting and temporarily but meaningfully pressured margins across the industry. In the current environment, OEMs may compete for market share when consumer demand is perceived to be strong and temporary, which could cause inadvertent overproduction and excess inventory. Such dynamics could introduce variability in revenue growth, EBITDA margin, and working capital uses of cash if the industry does not efficiently produce to align with retail demand. S&P believes a potential indicator of such risk is if OEMs expand manufacturing capacity by constructing new factories. CWGS's expansion plan also carries implementation risks. Ground-up constructions take 12-18 months to reach maturation, at which point the currently elevated retail demand might have moderated, possibly significantly. In addition, CWGS's RV rental platform might not translate into earnings for years or at all due to the risky nature of technology investments. Additional business considerations: -- S&P's assessment of CWGS's business risk reflects the company's reliance on sometimes volatile consumer discretionary spending, vulnerability to economic cyclicality, and the potential for declines in consumer credit availability to hurt demand for RVs. -- The company has a fairly high fixed-cost base due to leases related to its retail and dealership locations, low adjusted EBITDA margin compared with other rated leisure companies, and supplier concentration. -- Its membership services provide a recurring revenue stream and relatively high retention rates, while its RV parts and services business helps reduce EBITDA volatility. The outlook is stable, reflecting anticipated robust EBITDA generation in 2021 and possibly 2022, and a leverage cushion compared to the 5x downgrade threshold. Despite CWGS's anticipated moderate leverage, rating upside is constrained by the company's acquisition and shareholder returns strategy, which is likely to be a significant use of cash in 2021. S&P said, "We could lower our rating on CWGS if we anticipate adjusted leverage will be sustained above 5x. Such a scenario could result from a combination of risk factors, including a pullback in retail sales that leads to EBITDA margin deterioration, as well as cash usage for investment spending, dividends, and share repurchases that inadvertently coincides with a period of soft RV demand. "We could raise the rating on CWGS if we believe adjusted debt to EBITDA could be sustained below 4x with a sufficient cushion to absorb volatility and acquisition activity over an economic cycle. Such a scenario would depend on our confidence that the current RV demand is sufficiently sustainable to enable CWGS to manage costs and maintain leverage below 4x. The RV business is highly cyclical, therefore we would like to see at least a 1x sustained cushion compared to our upgrade threshold during times of economic and consumer spending growth." DENVER SELECT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Denver Select Property, LLC DBA Lawson Adventure Park and Cabins DBA Premium Adventure Tours DBA Lawson Adventure Park DBA Lawson Adventure Park Operations DBA Lawson Adventure Park Development 3424-3440 Alvarado Rd. Dumont, CO 80436 Business Description: Denver Select Property, LLC owns and operates an adventure park. Chapter 11 Petition Date: March 15, 2021 Court: United States Bankruptcy Court District of Colorado Case No.: 21-11233 Debtor's Counsel: Jeffrey A. Weinman, Esq. WEINMAN & ASSOCIATES, P.C. 730 17th Street, Suite 240 Denver, CO 80202 Tel: (303) 572-1010 E-mail: jweinman@weinmanpc.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Greg Books, manager. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at PacerMonitor.com: https://www.pacermonitor.com/view/GAQLB5Y/Denver_Select_Property_LLC__cobke-21-11233__0003.0.pdf?mcid=tGE4TAMA A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/BZBFWFI/Denver_Select_Property_LLC__cobke-21-11233__0001.0.pdf?mcid=tGE4TAMA DOUGLAS DYNAMICS: S&P Alters Outlook to Stable, Affirms 'BB-' ICR ----------------------------------------------------------------- S&P Global Ratings revised its outlook to stable from negative and affirmed its 'BB-' issuer credit rating. At the same time, S&P affirmed its 'BB-' issue-level rating and '3' recovery rating on its subsidiary Douglas Dynamics LLC's $275 million term loan due in 2026. The '3' recovery rating indicates its expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default. The outlook revision reflects Douglas Dynamics' good operating performance during the pandemic, despite a challenging year, and S&P's belief that earnings will continue to improve over the next 12 months. The temporary closure of its facilities earlier in 2020, below-average snowfall for the previous two winters, continued chassis supply chain issues, and the height of lockdowns in the U.S. occurring during its preseason order period, all weighed on the company in the first half of 2020. These factors caused S&P Global Ratings-adjusted EBITDA to dip into negative territory in the first quarter of 2020 before rebounding. However, despite this pressure on profitability, S&P believes the company managed well through the difficult period and positioned itself well when demand returned. As a result, the company ended December 2020 with S&P Global Ratings-adjusted leverage of 3.3x, a meaningful improvement compared to its previous expectations. S&P said, "Since mid-May, all of Douglas Dynamics' facilities are fully operational, and we expect they will remain open. Previously, we anticipated that a silver lining to the pandemic could be the increased availability of chassis from OEMs (original equipment manufacturers), which has been a headwind for the company in recent years. However, with medium- and heavy-duty truck production ramping up, we believe Class 4-6 chassis constraints remain an obstacle for the company. Moreover, volatility in snowfall amounts also pose a risk. Despite these potential roadblocks, we anticipate orders will continue to increase in 2021, as dealers gained more confidence after the second quarter of 2020 and placed a high level of orders in the back half of 2020. We also anticipate top-line results will benefit from new products which we believe have been well received by the market, such as the half-ton V-plow introduced within the work-truck attachments segment in September 2020, and the first responder, a new Henderson product recently released within the work-truck solutions segment." Improving margins should enable the company to continue to reduce leverage. Even with the challenging first half, Douglas Dynamics ended 2020 with S&P Global Ratings-adjusted leverage of 3.3x. The company paid down $50 million in debt during the year, which helped offset a portion of the EBITDA decline. S&P said, "Our ratings incorporate our view that the company will generally operate with S&P Global Ratings-adjusted debt to EBITDA in the 2x-3x area, but during volatile periods that could increase to the 3x-4x area. In our view, Douglas Dynamics will continue to improve margins in 2021, but it may take until 2022 to get back to pre-pandemic levels. Due to a quicker than expected recovery in the company's end markets, we now forecast S&P Global Ratings-adjusted debt to EBITDA in the mid- to high-2x range in 2021." S&P said, "We anticipate that Douglas Dynamics will make capital allocation decisions that will enable them to maintain leverage below 3x over the next 12 months. We expect the company to continue with modest dividend growth each year. However, we believe the company could begin to pursue bolt-on acquisitions this year and forecast modest, bolt-on type acquisitions in the $20 million area. Our forecast does not incorporate any large, debt-funded acquisitions at this time. "The stable outlook reflects our expectation that demand will continue to improve and that Douglas Dynamics will improve its margins, resulting in S&P Global Ratings-adjusted debt to EBITDA to be in the 2x-3x area over the next 12 months." S&P could lower the rating on Douglas Dynamics if: -- S&P expects leverage to rise above 3x on a sustained basis in favorable market conditions. In its view, this could be the case if the company adopts a more aggressive financial policy and pursues relatively large debt-funded acquisitions, reducing its cushion to withstand weather-related volatility and chassis supply chain constraints. Although unlikely over the next 12 months, S&P could raise its rating on Douglas Dynamics if: -- The company maintains a significantly more conservative financial policy in which it reduces S&P Global Ratings-adjusted leverage comfortably below 2x, inclusive of potential acquisitions and shareholder returns. In S&P's view, this level of leverage would provide cushion to withstand inherent volatility in its business. EAGLE HOSPITALITY TRUST: Court Gives Go Signal to Probe Ex-Insiders ------------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that a Delaware judge ruled that Eagle Hospitality Trust can investigate two business partners who have been accused by the bankrupt real estate company of being primarily responsible for its financial distress. With Judge Christopher S. Sontchi's authorization, Singapore-based Eagle plans to seek information from Taylor Woods and Howard Wu, who previously controlled an affiliated corporate entity called Eagle Hospitality REIT Management Pte. Ltd. The two also currently oversee another entity, Urban Commons LLC, whose hotel lease payments were Eagle's sole source of revenue. "Woods and Wu seized every opportunity to benefit themselves, and the entities they controlled, at the Debtors' expense," said Eagle Hospitality. About Eagle Hospitality Group Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality stapled group comprising Eagle Hospitality Real Estate Investment Trust and Eagle Hospitality Business Trust. Based in Singapore, Eagle H-REIT is established with the principal investment strategy of investing on a long-term basis in a diversified portfolio of income-producing real estate, which is used primarily for hospitality or hospitality-related purposes as well as real estate-related assets in connection with the foregoing, with an initial focus on the United States. EHT US1, Inc. and 26 affiliates, including 15 LLC entities that each owns hotels in the U.S., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10036) on Jan. 18, 2021. EHT US1 estimated $500 million to $1 billion in assets and liabilities as of the bankruptcy filing. The Debtors tapped Paul Hastings LLP and Cole Schotz P.C. as their bankruptcy counsel, FTI Consulting Inc. as restructuring advisor, and Moelis & Company LLC as investment banker. Rajah & Tann Singapore LLP and Walkers serve as Singapore Law counsel and Cayman Law counsel, respectively. Donlin, Recano & Company, Inc. is the claims agent. The U.S. Trustee for Regions 3 and 9 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases on Feb. 4, 2021. The committee is represented by Morris James, LLP and Kramer Levin Naftalis & Frankel, LLP. ELITE AUTO DEALER: Unsecured Creditors to Receive Nothing in Plan ----------------------------------------------------------------- Elite Auto Dealer Inc., filed with the U.S. Bankruptcy Court for the District of Nevada a Disclosure Statement describing Chapter 11 Plan on March 11, 2021. The car industry has been devastated by COVID-19. Additionally, there was a dispute with Creditor LV.Net, LLC. After extensive litigation, a resolution was negotiated with LV.Net and a 9019 Motion for Settlement was approved by the Court. Unfortunately, due to the continued effects of COVID-19, Debtor has been unable to generate sufficient income to continue operations and is therefore forced to file this liquidating plan. The Debtor has scheduled against it approximately $1,070,755.00 in unsecured claims. Class 1 consists of the Fausto Benini Secured Claim in the sum of $279,918.38. Within 30 days of the Effective Date, Debtor shall release the 2012 Nissan Altima, VIN # 1N4AL2APQCN53; and 2007 Nissan Titan, VIN # 1N6AA06A16N533243 as full and final payment of the Benini claim. If the Debtor were to wholesale the vehicles it would receive only $2,200.00. Here it is a benefit to Creditors that Benini is receiving two vehicles for a satisfaction of his secured claim allowing additional assets to be used for administrative and priority debts. Class 2 consists of Wolf Larson Secured Claim in the sum of $143,590.82. Within 30 days of the Effective Date, Debtor shall release 2007 BMW X3, VIN # BXPC934X8WJ08694; and 2006 Nissan Maxima, VIN # 1N4BA41E57C832536 as full and final payment of the Larson claim. If the Debtor were to wholesale the vehicles it would receive only $1,300.00. Here it is a benefit to Creditors that Larson is receiving two vehicles for a satisfaction of his secured claim allowing additional assets to be used for administrative and priority debts. Class Allowed Unsecured Claims shall receive nothing. The members shall retain their membership interests in the Reorganized Debtor and shall receive no distribution. All sums contemplated to be paid under the Plan to creditors whose claims are not liquidated or are disputed shall be paid into a segregated trust account until such claims are an Allowed Claim, in which case the proceeds shall be disbursed, or such claim shall be disallowed. Following Plan confirmation, the Debtor will liquidate all assets and remit payment as provided. The Debtor shall be liquidated by Anderson Voss. The Bankruptcy Court has scheduled April 28, 2021, at 9:30 a.m. as the hearing to consider adequacy of the disclosure statement. A full-text copy of the Disclosure Statement dated March 11, 2021, is available at https://bit.ly/3cFgtFa from PacerMonitor.com at no charge. Counsel for the Debtor: Brandy Brown, Esq. KUNG & BROWN 214 S. Maryland Pkwy. Las Vegas, NV 89101 Tel: 702-382-0883 E-mail: bbrown@ajkunglaw.com About Elite Auto Dealer Elite Auto Dealer, Inc., is a car dealer in Las Vegas, Nevada. Elite Auto Dealer filed a Chapter 11 petition (Bankr. D. Nev. Case No. 20-12221) on May 5, 2020. In the petition signed by Anderson Voss, president, the Debtor was estimated to have $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Brandy Brown, Esq., at Kung & Brown, serves as bankruptcy counsel to the Debtor. EMINENT BICYCLES: Case Summary & 4 Unsecured Creditors ------------------------------------------------------ Debtor: Eminent Bicycles, LLC 1665 South Rancho Santa Fe Rd Suite C1 San Marcos, CA 92078 Business Description: Eminent Bicycles, LLC is a manufacturer of bicycles and parts. Chapter 11 Petition Date: March 16, 2021 Court: United States Bankruptcy Court Southern District of California Case No.: 21-01006 Debtor's Counsel: Ajay Gupta, Esq. GUPTA EVANS AND ASSOIATES, PC 1620 5th Avenue, #650 San Diego, CA 92101 Tel: (619) 866-3444 Fax: (619) 330-2055 E-mail: ag@SoCal.law Total Assets: $139,388 Total Liabilities: $1,410,600 The petition was signed by Jeffrey Soncrant, CEO. A full-text copy of the petition containing, among other items, a list of the Debtor's four unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/SKOJOLQ/Eminent_Bicycles_LLC__casbke-21-01006__0001.0.pdf?mcid=tGE4TAMA ENERGY FUTURE: NextEra Energy Can Seek $60 Mil. in Bankruptcy Case ------------------------------------------------------------------ Daniel Gill of Bloomberg Law reports that the Third Circuit held that NextEra Energy Inc. can assert its $60 million claim against Energy Future Holdings Corp.'s bankruptcy estate for helping to preserve the value of a company Energy Future controlled and later sold its interest in. NextEra, one of the largest utilities in the U.S., in 2016 sought to buy Energy First's stake in Oncor Electric Delivery Co. for $9.8 billion during Energy Future's bankruptcy proceedings. After the deal fell through, NextEra asserted its administrative claim, saying its due diligence and creation of a "road-map" eventually led to a deal with Sempra Energy for $9.45 billion. About Energy Future Holdings Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors had $42 billion of funded indebtedness as of the bankruptcy filing. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring Agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. On May 13, 2014, the U.S. Trustee appointed the Official Committee of TCEH Unsecured Creditors in the Chapter 11 Cases. The TCEH Committee is composed of (a) the Pension Benefit Guaranty Corporation; (b) HCL America, Inc.; (c) BNY, as Indenture Trustee under the EFCH 2037 Notes due 2037 and the PCRBs; (d) LDTC, as Indenture Trustee under the TCEH Unsecured Notes; (e) Holt Texas LTD, d/b/a Holt Cat; (f) ADA Carbon Solutions (Red River); and (g) Wilmington Savings, as Indenture Trustee under the TCEH Second Lien Notes. The TCEH Committee retained Morrison & Foerster LLP as counsel; Polsinelli PC as co-counsel and conflicts counsel; Lazard Freres & Co. LLC as investment banker; FTI Consulting, Inc., as financial advisor; and Charles River Associates as an energy consultant. On Oct. 27, 2014, the U.S. Trustee appointed the Official Committee of Unsecured Creditors representing the interests of the unsecured creditors for EFH, EFIH, EFIH Finance, and EECI, Inc. The EFH/EFIH Committee is composed of (a) American Stock Transfer & Trust Company, LLC; (b) Brown & Zhou, LLC c/o Belleair Aviation, LLC; (c) Peter Tinkham; (d) Shirley Fenicle, as successor-in-interest to the Estate of George Fenicle; and (e) David William Fahy. The EFH/EFIH Committee retained Montgomery, McCracken, Walker & Rhodes, LLP, as co-counsel and conflicts counsel; AlixPartners, LLP, as restructuring advisor; Sullivan & Cromwell LLC as counsel; Guggenheim Securities as investment banker; and Kurtzman Carson Consultants LLC as noticing agent for both the TCEH Committee and the EFH/EFIH Committee. Given the size and complexity of the Chapter 11 Cases, the U.S. Trustee proposed, and the Debtors and the TCEH Committee agreed, to recommend that the Bankruptcy Court appoint a committee to, among other things, review and report as appropriate on fee applications and statements submitted by the professionals paid for by the Debtors' Estates. The Fee Committee is comprised of four members: (a) one member appointed by and representative of the Debtors (Cecily Gooch, Vice President and Special Counsel for Restructuring, Energy Future Holdings); (b) one member appointed by and representative of the TCEH Creditors' Committee (Peter Kravitz, Principal and General Counsel, Province Capital); (c) one member appointed by and representative of the U.S. Trustee (Richard L. Schepacarter, Trial Attorney, Office of the United States Trustee); and (d) one independent member (Richard Gitlin, of Gitlin and Company, LLC). The Fee Committee retained Godfrey & Kahn, S.C., as counsel; and Phillips, Goldman & Spence, P.A., as co-counsel. On Aug. 29, 2016, Judge Sontchi confirmed the Chapter 11 exit Plans of two of Energy Future Holdings Corp.'s subsidiaries, power generator Luminant and retail electricity provider TXU Energy Inc. (the "T-Side Debtors"). The Plan became effective on Oct. 3, 2016. On Aug. 20, 2017, Sempra Energy (NYSE:SRE) announced an agreement to acquire EFH. Under the agreement, Sempra Energy will pay approximately $9.45 billion in cash to acquire EFH and its ownership in Oncor, while taking a major step forward in resolving Energy Future's long-running bankruptcy case. The enterprise value of the transaction is approximately $18.8 billion, including the assumption of Oncor's debt. On Nov. 3, 2017, the Bankruptcy Court entered an order closing the Chapter 11 cases of 40 affiliate debtors. The claims asserted against, and interests asserted in, the Closing Cases are transferred to the lead case of Texas Competitive Electric Holdings Company LLC, Case No. 14-10978. EYEPOINT PHARMACEUTICALS: Incurs $45.4 Million Net Loss in 2020 --------------------------------------------------------------- EyePoint Pharmaceuticals, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $45.39 million on $34.44 million of total revenues for the year ended Dec. 31, 2020, compared to a net loss of $56.79 million on $20.36 million of total revenues for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $91.72 million in total assets, $73.17 million in total liabilities, and $18.54 million in total stockholders' equity. The Company had cash and cash equivalents of $44.9 million at Dec. 31, 2020. On Feb. 4, 2021, the Company received net proceeds of approximately $108.0 million from the issuance of shares of the Company's common stock in an underwritten public offering. The Company has a history of operating losses and has not had significant recurring cash inflows from revenue. The Company's operations have been financed primarily from sales of its equity securities, issuance of debt and a combination of license fees, milestone payments, royalty income and other fees received from its collaboration partners. In the first quarter of 2019, the Company commenced the U.S. launch of its first two commercial products, YUTIQ and DEXYCU. However, the Company has not received sufficient revenues from its product sales to fund operations and the Company does not expect revenues from its product sales to generate sufficient funding to sustain its operations in the near-term. The Company expects to continue fulfilling its funding needs through cash inflows from revenue of YUTIQ and DEXYCU product sales, licensing and research collaboration transactions, additional equity capital raises and other arrangements. The Company believes that its cash and cash equivalents of $44.9 million at Dec. 31, 2020 and the net proceeds of approximately $108.0 million received in February 2021 from the issuance of Common Stock, coupled with expected cash inflows from its product sales will enable the Company to fund its current and planned operations for at least the next twelve months from the date these consolidated financial statements were issued and therefore the conditions raising substantial doubt raised in prior periods has been alleviated. The Company said actual cash requirements could differ from management's projections due to many factors, including the continued effect of the Pandemic on the Company's business and the medical community, the timing and results of the Company's clinical trials for EYP-1901, additional investments in research and development programs, the success of commercialization for YUTIQ and DEXYCU, the actual costs of these commercialization efforts, competing technological and market developments and the costs of any strategic acquisitions and/or development of complementary business opportunities. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1314102/000156459021012894/eypt-10k_20201231.htm About EyePoint Pharmaceuticals EyePoint Pharmaceuticals, formerly pSivida Corp. -- http://www.eyepointpharma.com-- headquartered in Watertown, MA, is a specialty biopharmaceutical company committed to developing and commercializing innovative ophthalmic products in indications with high unmet medical need to help improve the lives of patients with serious eye disorders. The Company currently has two commercial products: DEXYCU, the first approved intraocular product for the treatment of postoperative inflammation, and YUTIQ, a three-year treatment of chronic non-infectious uveitis affecting the posterior segment of the eye. FESTIVE WORKS: May Use Cash Collateral on Final Basis ----------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey has authorized Festive Works, LLC and affiliates to use cash collateral on a final basis in accordance with the budget and provide adequate protection. The Debtors do not have sufficient unencumbered cash or other assets with which to continue to operate their business in Chapter 11. The Debtors require immediate authority to use cash collateral in order to continue their business operations without interruption. The Court entered an order approving a settlement and compromise by and between the Debtors and Unity Bank on March 4, 2021, which provided, among other things, that Unity Bank will consent to the Debtors' use of cash collateral until confirmation of the Debtors' plans. Unity Bank asserts a security interest in substantially all of the Debtors' assets and the Settlement sets forth the treatment of Unity Bank's claims and interests. The Debtor is authorized to use cash collateral and make disbursements in the ordinary course of its business for the purpose of paying operating and other expenses. As adequate protection for use of cash collateral, Unity Bank is granted replacement liens pursuant to sections 361 and 363 of the Bankruptcy Code, to the extent of any diminution in the value of Unity Bank's collateral, with the same priority in the Debtors' postpetition collateral, and proceeds thereof, that Unity Bank held in the Debtors' prepetition collateral, subject to the Carve-Out. The replacement liens and security interests granted are automatically deemed perfected without the necessity of Unity Bank taking possession, filing financing statements, mortgages, or other documents. In accordance with the Settlement, Unity Bank has agreed to a professional fee carve out of $340,000, which amount will be a carve-out from Unity Bank's liens and allocated as follows: (i) the Debtors' counsel, Porzio, Bromberg & Newman, P.C. - $159,250, (ii) the Debtors' financial advisor, M. Greenwald Associates LLP ("MGA") - $32,500, (iii) the Debtors' broker/auctioneer, AuctionAdvisors - $133,250, and (iv) Subchapter V trustee - $15,000. The amounts for Porzio and MGA are inclusive of: (a) $100,000 allocated to Porzio for prepetition payments, thereby leaving Porzio with a net carveout of $59,250; and (b) $10,000 allocated to MGA for prepetition payments, thereby leaving MGA with a net carveout of carveout of $22,500. Assuming Unity Bank is paid $2,950,000 at closing (or higher amount as set forth in the order approving the sale of the Debtors' assets), Unity Bank consents to the Debtors' use of the good faith deposit to pay its professionals' prepetition fees. A copy of the Order is available for free at https://bit.ly/3vsIisM from PacerMonitor.com. About Festive Works, LLC Festive Works, LLC sought Chapter 11 protection (Bankr. D. N.J. Case No. 21-10445) on Jan. 20, 2021. The case is assigned to Judge John K. Sherwood. The Debtor disclosed $1 million to $10 million in assets and liabilities. The Debtor tapped John S. Mairo, Esq., at Porzio, Bromberg & Newman, P.C. as counsel. M. Greenwald Associates LLP serves as the Debtor's financial advisor. The petition was signed by Agapios Kyritsis, member. FIELDWOOD ENERGY: Hunt Oil, et al., Say Plan Fatally Flawed ----------------------------------------------------------- Hunt Oil Company and its subsidiaries Chieftain International (U.S.) L.L.C. (formerly Chieftain International (U.S.), Inc.) and Hunt Chieftain Development, L.P. object to the Disclosure Statement for Joint Chapter 11 Plan of Fieldwood Energy LLC and its Affiliated Debtors. Hunt is still in the process of determining the anticipated decommissioning and P&A obligations in respect of the purported abandoned properties and other shelf assets that may be implicated by the Debtors' proposed abandonment strategy using the limited information provided by the Debtors. Hunt points out that failing to remediate such glaring deficiencies in the Disclosure Statement for what is already a precarious restructuring strategy and rushing into solicitation in respect of a plan that is fatally flawed would be a further waste of estate resources. Hunt joins and incorporates the Chevron Objection, filed February 12, 2021, the XTO Objection, filed February 22, 2021, the Marathon Objection, filed March 1, 2021, and the Eni Objection, filed on March 3, 2021, including objections raised therein to the feasibility and confirmability of the Plan. Counsel for Hunt Oil Company: BAKER BOTTS L.L.P. 2001 Ross Avenue, Suite 900 Dallas, TX 75201-2980 Telephone: 214.953.6500 Facsimile: 214.661.6503 James R. Prince Kevin Chiu E-mail: jim.prince@bakerbotts.com kevin.chiu@bakerbotts.com - and – BAKER BOTTS L.L.P. 910 Louisiana Street Houston, Texas 77002-4995 Telephone: 713.229.1234 Facsimile: 713.229.1522 David R. Eastlake E-mail: david.eastlake@bakerbotts.com About Fieldwood Energy Fieldwood Energy is a portfolio company of Riverstone Holdings focused on acquiring and developing conventional assets, primarily in the Gulf of Mexico region. It is the largest operator in the Gulf of Mexico owning an interest in approximately 500 leases covering over two million gross acres with 1,000 wells and 750 employees. Visit https://www.fieldwoodenergy.com for more information. Fieldwood Energy and its 13 affiliates previously sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 18-30648) on Feb. 15, 2018, with a prepackaged plan that would deleverage $3.286 billion of funded by $1.626 billion. On Aug. 3, 2020, Fieldwood Energy and its 13 affiliates again filed voluntary Chapter 11 petitions (Bankr. S.D. Tex. Lead Case No. 20-33948). Mike Dane, senior vice president and chief financial officer, signed the petitions. At the time of the filing, the Debtors disclosed $1 billion to $10 billion in both assets and liabilities. Judge David R. Jones oversees the cases. The Debtors tapped Weil, Gotshal & Manges LLP as their legal counsel, Houlihan Lokey Capital, Inc. as investment banker, and AlixPartners, LLP as financial advisor. Prime Clerk LLC is the claims, noticing, and solicitation agent. The first-lien group employed O'Melveny & Myers LLP as its legal counsel and Houlihan Lokey Capital, Inc. as its financial advisor. The RBL lenders employed Willkie Farr & Gallagher LLP as their legal counsel and RPA Advisors, LLC as their financial advisor. Meanwhile, the cross-holder group tapped Davis Polk & Wardwell LLP and PJT Partners LP as its legal counsel and financial advisor, respectively. On Aug. 18, 2020, the Office of the U.S. Trustee appointed a committee of unsecured creditors. Stroock & Stroock & Lavan, LLP and Conway MacKenzie, LLC serve as the committee's legal counsel and financial advisor, respectively. FIELDWOOD ENERGY: JX Nippon Says Disclosures Insufficient --------------------------------------------------------- JX Nippon Oil Exploration (U.S.A.) Limited objects to the Disclosure Statement for Joint Chapter 11 Plan of Fieldwood Energy LLC and Its Affiliated Debtors and Joinder in the Objection of XTO Offshore, Inc., HHE Energy Company and XH LLC, of Chevron U.S.A., Inc. and of Lexon Insurance Company, Ironshore Indemnity Inc. and Ironshore Specialty Insurance Company. While the Debtor filed hundreds of pages of documents with the Disclosure Statement, among other topics, the Disclosure Statement and Plan do not provide adequate information regarding: * The allocation of executory contracts and assets of the Debtors; * The allocation of cash under the Plan and an explanation of how it will be used; * How the Debtors can allocate the same leases to different new entities or abandon the same leases that will also be allocated to a new entity; * How decommissioning is to occur for all transferred properties including the cost and time required to decommission each property; and * The liquidation analysis of Estate assets. Nippon joins in the XTO Objection, Chevron Objection and Lexon Objection and further objects to the third party releases, as well as to the inadequacy of information in the Disclosure Statement and Plan especially with regard to the lack of information regarding the transfer of the Debtors' properties contemplated by the Plan, the impact of releases and transfers of property on any claims third parties may have against non-Debtors, and the intended use of Debtors' funds. Counsel for Nippon: CARVER, DARDEN, KORETZKY, TESSIER, FINN, BLOSSMAN & AREAUX L. L. C. Leann Opotowsky Moses Peter J. Segrist 1100 Poydras Street, Suite 3100 New Orleans, Louisiana 70163 Telephone: (504) 585-3800 Telecopier: (504) 585-3801 E-mail: moses@carverdarden.com - and – GIEGER, LABORDE & LAPEROUSE, L.L.C. Lambert M. Laperouse 5151 San Felipe, Suite 750 Telephone: (832) 255-6002 Facsimile: (832) 255-6001 laperouse@glllaw.com About Fieldwood Energy Fieldwood Energy is a portfolio company of Riverstone Holdings focused on acquiring and developing conventional assets, primarily in the Gulf of Mexico region. It is the largest operator in the Gulf of Mexico owning an interest in approximately 500 leases covering over two million gross acres with 1,000 wells and 750 employees. Visit https://www.fieldwoodenergy.com for more information. Fieldwood Energy and its 13 affiliates previously sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 18-30648) on Feb. 15, 2018, with a prepackaged plan that would deleverage $3.286 billion of funded by $1.626 billion. On Aug. 3, 2020, Fieldwood Energy and its 13 affiliates again filed voluntary Chapter 11 petitions (Bankr. S.D. Tex. Lead Case No. 20-33948). Mike Dane, senior vice president and chief financial officer, signed the petitions. At the time of the filing, the Debtors disclosed $1 billion to $10 billion in both assets and liabilities. Judge David R. Jones oversees the cases. The Debtors tapped Weil, Gotshal & Manges LLP as their legal counsel, Houlihan Lokey Capital, Inc. as investment banker, and AlixPartners, LLP as financial advisor. Prime Clerk LLC is the claims, noticing, and solicitation agent. The first-lien group employed O'Melveny & Myers LLP as its legal counsel and Houlihan Lokey Capital, Inc. as its financial advisor. The RBL lenders employed Willkie Farr & Gallagher LLP as their legal counsel and RPA Advisors, LLC as their financial advisor. Meanwhile, the cross-holder group tapped Davis Polk & Wardwell LLP and PJT Partners LP as its legal counsel and financial advisor, respectively. On Aug. 18, 2020, the Office of the U.S. Trustee appointed a committee of unsecured creditors. Stroock & Stroock & Lavan, LLP and Conway MacKenzie, LLC serve as the committee's legal counsel and financial advisor, respectively. FREEMAN HOLDINGS: Taps Duerr & Cullen to Provide Tax Services ------------------------------------------------------------- Freeman Holdings, LLC, and its affiliates received approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire Duerr & Cullen, CPAs, P.A. The firm, through its accountant Chris Duerr, will provide the Debtor with tax-related services, including the preparation of tax returns. Duerr & Cullen has agreed that payment of its fees and expenses will be subject to proper application and court approval. There are no pre-bankruptcy fees owed to the firm. Mr. Duerr disclosed in a court filing that he and his firm are "disinterested persons" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Duerr can be reached at: Chris Duerr Duerr & Cullen, CPAs, P.A. 1304 N. Maitland Avenue Maitland, FL 32751 Tel: (407) 644-6968 Fax: (407) 644-6946 Email: cduerr@dccpas.net admin@dccpas.net About Freeman Holdings Freeman Holdings LLC and its affiliates, Freeman Holdings II LLC and FWP Realty Holdings LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 20-15410) on May 17, 2020. At the time of the filing, the Debtors each had estimated assets of between $500,001 and $1 million and liabilities of between $1 million and $10 million. Judge Scott M. Grossman oversees the cases. Wernick Law, PLLC is the Debtors' legal counsel. The Debtors also tapped Duerr & Cullen, CPAs, P.A. to provide them with tax-related services. FREEMAN MOBILE: Taps Duerr & Cullen to Provide Tax Services ----------------------------------------------------------- Freeman Orthodontics, P.A., and Interstellar Disruption, LLC, received approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire Duerr & Cullen, CPAs, P.A. The firm, through its accountant Chris Duerr, will provide tax-related services, including the preparation of tax returns to Freeman Orthodontics and Interstellar Disruption. Both companies are affiliates of Freeman Mobile Orthodontics, PLLC. Duerr & Cullen has agreed that payment of its fees and expenses will be subject to proper application and court approval. There are no pre-bankruptcy fees owed to the firm. Mr. Duerr disclosed in a court filing that he and his firm are "disinterested persons" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Duerr can be reached at: Chris Duerr Duerr & Cullen, CPAs, P.A. 1304 N. Maitland Avenue Maitland, FL 32751 Tel: (407) 644-6968 Fax: (407) 644-6946 Email: cduerr@dccpas.net admin@dccpas.net About Freeman Mobile Orthodontics Freeman Mobile Orthodontics, PLLC, is a Fort Lauderdale-based orthodontics specialist that provides orthodontic care to patients in Florida. Freeman Mobile Orthodontics and affiliates, Freeman Orthodontics P.A. and Interstellar Disruption, LLC sought Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 20-15408) on May 17, 2020. At the time of the filing, Freeman Mobile disclosed assets of between $1 million and $10 million and liabilities of the same range. The Hon. Scott M. Grossman is the case judge. The Debtors tapped Wernick Law, PLLC as their bankruptcy counsel, and Galvan Messick, PLLC and Nelson Mullins Riley & Scarborough, LLP as their special counsel. The Debtors also tapped Duerr & Cullen, CPAs, P.A. to provide them with tax-related services. FULL HOUSE: Swings to $147K Net Income in 2020 ---------------------------------------------- Full House Resorts, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing net income of $147,000 on $125.59 million of revenues for the year ended Dec. 31, 2020, compared to a net loss of $5.82 million on $165.43 million of revenues for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $212.62 million in total assets, $155.94 million in total liabilities, and $56.68 million in total stockholders' equity. The Company stated, "The current circumstances are dynamic and the impacts of the coronavirus on our business operations, including the duration and impact on overall customer demand, is ongoing and uncertain. For example, since our casinos have been allowed to reopen, some guests have chosen to not travel or visit our properties for health concerns, which has led to lower occupancy and lower room rates at our hotels. Additional closures or disruptions in our casino business would likely have a negative impact on our business and operating results. As the coronavirus continues to spread in the United States, we may elect on a voluntary basis to again close certain of our properties or portions thereof, or governmental officials may order additional closures or impose further restrictions on travel or on our operations, including the number of people allowed in our casino or perhaps sitting at any specific table game or bank of slot machines. Even as vaccines are becoming more readily available, the pandemic may still have the potential to have a material adverse impact on our business, results of operations, financial position and cash flows." A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/Archives/edgar/data/891482/000089148221000020/fll-20201231x10k.htm About Full House Resorts, Inc. Headquartered in Las Vegas, Nevada, Full House Resorts -- www.fullhouseresorts.com -- owns, leases, develops and operates gaming facilities throughout the country. The Company's properties include Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy's Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; and Stockman's Casino in Fallon, Nevada. The Company also operates the Grand Lodge Casino at the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada under a lease agreement with the Hyatt organization. The Company is currently constructing a new luxury hotel and casino in Cripple Creek, Colorado, adjacent to its existing Bronco Billy's property. * * * As reported by the TCR on Feb. 9, 2021, Moody's Investors Service assigned a Caa1 Corporate Family Rating and Caa1-PD Probability of Default Rating to Full House Resorts Inc. (FHR). The Caa1 CFR reflects the long, approximately 24 months, Bronco Billy's construction period, uncertainty related to the level of visitation and earnings at the redesigned property, FHR's modest scale, and exposure to cyclical discretionary consumer spending. GIRARDI & KEESE: Judge Brushes Aside Fake Dementia Claims --------------------------------------------------------- Law360 reports that a Los Angeles judge on Monday, March 15, 2021, brushed aside claims Girardi Keese founder Thomas Girardi was feigning dementia to avoid punishment for taking his clients' funds, keeping the 81-year-old attorney in a temporary conservatorship over objections from the State Bar of California and his former co-counsel. Los Angeles Superior Court Judge Daniel Juarez said he had no reason to question a psychiatrist's declaration last week that Girardi cannot understand court proceedings and has Alzheimer's disease. "I don't have a basis to hold back on the temporary conservatorship," the probate judge said. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: 213.626.2311 Facsimile: 213.629.4520 E-mail: emiller@sulmeyerlaw.com GREENVILLE CASUALTY: A.M. Best Affirms B (Fair) FS Rating --------------------------------------------------------- AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "bb+" from "bb" and affirmed the Financial Strength Rating (FSR) of B (Fair) of Greenville Casualty Insurance Company (Greer, SC). The outlook of the FSR has been revised to positive from stable while the outlook of the Long-Term ICR is positive. These Credit Ratings reflect Greenville Casualty's balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. The upgrade of the Long-Term ICR reflects Greenville Casualty's improved balance sheet strength, driven by increased risk-adjusted capitalization, reduced underwriting leverage and increased liquidity measures over the most recent five-year period, which were derived from solid growth in policyholders' surplus and reduced premium writings. The positive outlooks reflect Greenville Casualty's improved operating performance in recent years, driven by management's underwriting initiatives which have stabilized results. AM Best expects sustained improvement in operating performance metrics with moderate volatility over the near to medium term. GUIORA LLC: Beverly Hills Property Owner Seeks Chapter 11 --------------------------------------------------------- Guiora LLC has filed for Chapter 11 bankruptcy protection in California. On March 10, 2021, Guiora LLC, the owner of a six-bed, 11,846 square-foot residential property located at 705 N. Alta Drive in Beverly Hills, California, filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 21-10551). The Debtor reports $10 million to $50 million in assets and liabilities. The Debtor lists no unsecured creditors. The law firm Klehr Harrison Harvey Branzburg LLP, led by Richard Michael Beck, is the Debtor's counsel. GUNSMOKE LLC: Gets OK to Hire Haynie & Company as Accountant ------------------------------------------------------------ Gunsmoke, LLC, received approval from the U.S. Bankruptcy Court for the District of Colorado to hire Haynie & Company, CPAs as its accountant. The firm will assist the Debtor in accounting and tax matters, including the preparation of 2020 tax returns. Brian Jacobson, a certified public accountant, and a partner at Haynie & Company will be the responsible person at the firm. The firm will be paid at these rates: Partner/Principal $400 per hour Staff $100 - $200 per hour Haynie & Company is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court papers filed by the firm. The firm can be reached through: Brian Jacobson CPA Haynie & Company, CPAs 200 E. 7th St., Suite 300 Loveland, CO 80537 Phone: 970-667-5316 Fax: 970-667-2269 Email: brianj@hayniecpas.com About Gunsmoke LLC Gunsmoke, LLC, a gun shop in Loveland, Colo., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-14962) on July 22, 2020. At the time of the filing, the Debtor had estimated assets of between $100,001 and $500,000 and liabilities of between $1 million and $10 million. Judge Joseph G. Rosania Jr. oversees the case. The Debtor tapped Jorgensen, Brownell & Pepin P.C. as its legal counsel and Haynie & Company, CPAs as its accountant. HAPPY BEAVERS: Gets OK to Hire Haynie & Company as Accountant ------------------------------------------------------------- Happy Beavers, LLC, received approval from the U.S. Bankruptcy Court for the District of Colorado to hire Haynie & Company, CPAs as its accountant. The firm will assist the Debtor in accounting and tax matters, including the preparation of 2020 tax returns. Brian Jacobson, a certified public accountant and a partner at Haynie & Company will be the responsible person at the firm. The firm will be paid at these rates: Partner/Principal $400 per hour Staff $100 - $200 per hour Haynie & Company is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court papers filed by the firm. The firm can be reached through: Brian Jacobson CPA Haynie & Company, CPAs 200 E. 7th St., Suite 300 Loveland, CO 80537 Phone: 970-667-5316 Fax: 970-667-2269 Email: brianj@hayniecpas.com About Happy Beavers Happy Beavers, LLC filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 20-14853) on July 17, 2020. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Joseph G. Rosania Jr. oversees the case. The Debtor tapped Jorgensen, Brownell & Pepin P.C. as its legal counsel and Haynie & Company, CPAs as its accountant. HAYWARD INDUSTRIES: S&P Upgrades ICR to 'B+' Following IPO ---------------------------------------------------------- S&P Global Ratings assigned a 'B+' issuer credit rating to U.S.-based swimming pool equipment manufacturer Hayward Industries Inc. and raised its rating on the senior secured first-lien term loan to 'B+' from 'B' with an unchanged recovery rating of '3', indicating its expectations for meaningful recovery in the event of a payment default. The higher estimated recovery of 65% reflects reduced first-lien term debt. S&P said, "The stable outlook reflects our expectation for continued EBITDA growth given the favorable outlook for U.S. pool equipment sales that should reduce leverage below 4x in the next year." The upgrade reflects an improved financial risk profile following the IPO, but Hayward continues to be financial sponsor-controlled. S&P said, "We estimate the debt repayment from IPO proceeds totaling about $369 million results in pro forma fiscal year-end 2020 debt to EBITDA of about 5x (below 5x assuming last year's restructuring charges do not repeat). In addition, we expect low-double-digit percentage sales growth and EBITDA margins approaching 25% to lead to debt to EBITDA below 4x over the next year. Although leverage sustained well below 4x could support a higher rating, we factor into our financial risk profile assessment the continued control of the company by majority owners CCMP Capital Advisors and Alberta Investment Management Corp. They together control more than 50% of the company. This could mean Hayward may adopt a more aggressive financial policy than reflected in our base-case projections and lead to debt to EBITDA over 4x, either because of possible acquisitions or shareholder returns." Hayward's operating outlook remains favorable, underpinned by strong industry fundamentals. S&P said, "Although we remain cautious about the strength of the U.S. economic recovery, we believe Hayward will continue to benefit from strong demand for new swimming pools and associated equipment. The company's strong order backlog, which we believe increased by more than double-digit percentages year over year by fiscal year end 2020, supports this outlook. Moreover, its significant exposure to the aftermarket pool equipment segment (which contributes about 75% of total sales) provides a recurring, nondiscretionary stream of cash flows. In addition, we do not believe the recent growth of new pool construction (in part caused by increased demand for at-home leisure because of the COVID-19 pandemic) is overheated. Annual pool installations remain below the industry's long-term average. Therefore, we believe Hayward should continue to benefit from new pool equipment demand because of installations, and more importantly from significantly higher recurring aftermarket demand given its portfolio is significantly skewed to aftermarket sales." Hayward maintains a strong competitive position and significant share in U.S. swimming pool equipment market, which has a large installed base and benefits from higher average spending from increased usage of premium-priced automated pool maintenance equipment. Hayward also has a track record of consistently implementing industry-standard, low-single-digit percentage price increases. S&P also expecta margins to expand because of better operating leverage from higher volumes and ongoing operating cost reduction initiatives, which should permit it to more than offset labor and raw material cost inflation. The favorable industry outlook and continuation of these operating trends should fuel low-double-digit percentage top-line growth in 2020, which will likely taper off closer to mid-single digits thereafter as demand normalizes. Good free operating cash flow (FOCF) supports further debt repayment, although last year's record cash flow will likely normalize. Sales growth in 2020 coupled with good working capital management led to record FOCF of just under $200 million and a cash balance of more than $100 million. S&P continues to expect healthy FOCF, but closer to $90 million because of working capital deficits primarily related to longer receivable days and higher cash taxes. Still, Hayward's cash generation provides ample liquidity to continue to repay debt to the extent acquisition opportunities do not exist and one-time dividends are not considered. The stable outlook reflects S&P's expectation for continued strong sales growth and better EBITDA margins from economies of scale as Hayward leverages its manufacturing footprint with higher production volumes. This should allow the company to continue to generate mid-single-digit percentage EBITDA growth and reduce leverage near or below 4x over the next year. An upgrade would be predicated on: -- Operating performance continuing to meet expectations; -- Ongoing deleveraging; and -- A more conservative financial policy commitment from its controlling owners. Specifically, S&P could raise the ratings one notch once the company reduces leverage closer to 3.5x and publicly commits to a leverage target sustained in the mid-3x or below area. S&P could lower the ratings if: -- The company's operating performance materially underperforms expectations; and -- It materially increases leverage either for a large acquisition or to fund shareholder returns. S&P said, "Specifically, we would downgrade Hayward if debt to EBITDA were sustained above 5x. Although weaker operating performance is not likely in 2020, the company could face negligible sales growth and EBITDA margin erosion of more than 200 basis points during a negative industry cycle. We estimate that if the company increases debt more than $300 million in such an operating scenario, leverage would likely increase back above 5x." HIGHPOINT RESOURCES: Plan Hearing Set 4 Days After Ch. 11 Filing ---------------------------------------------------------------- Law360 reports that a Delaware bankruptcy judge Tuesday, March 16, 2021, approved oil and gas producer HighPoint Resources' first-day request for a Thursday, March 18, 2021, confirmation hearing for its prepackaged Chapter 11 plan, overriding arguments the bankruptcy is being pushed forward too fast. At a virtual hearing, U.S. Bankruptcy Judge Christopher Sontchi scheduled HighPoint's plan confirmation hearing just four days after the company filed for Chapter 11 over arguments from the federal government that creditors had not been given enough notice. "No notice period is being shortened," he said. Denver, Colorado-based HighPoint filed for Chapter 11 on Sunday, March 14, 2021, seeking approval for a plan to merge with fellow Denver-based oil company. About HighPoint Resources HighPoint Resources Corporation (NYSE: HPR) is a Denver, Colorado-based company focused on the development of oil and natural gas assets located in the Denver-Julesburg Basin of Colorado. Additional information about HighPoint may be found on its website at http://www.hpres.com/ On March 14, 2021, HighPoint Resources Corporation and two affiliated companies filed petitions under chapter 11 of the United States Bankruptcy Code (Bankr. D. Del. Lead Case No. 21-10565) to seek confirmation of a prepackaged plan that would provide for a merger with Bonanza Creek Energy, Inc. Kirkland & Ellis LLP is serving as legal advisor, Tudor, Pickering, Holt & Co. / Perella Weinberg Partners are serving as financial advisor, and AlixPartners, LLP, is serving as restructuring advisor to HighPoint. Epiq Corporate Restructuring is the claims agent. Evercore is serving as financial advisor and Vinson & Elkins LLP is serving as legal advisor to Bonanza Creek. Akin Gump LLP is serving as legal advisor to an informal group of HighPoint noteholders that have signed the TSA. J.P. Morgan Securities LLC also served as an advisor to HighPoint. INNOVATIVE SOFTWARE: Gets Cash Collateral Access on Final Basis --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, has authorized Innovative Software Solution, Inc. to use cash collateral on a final basis. The Debtor is authorized to use the cash collateral to make monthly adequate protection payments of $100 to On Deck Capital and $200 to the U.S. Small Business Administration. The Debtor is directed to be current with all adequate protection payments by March 19, 2021. Any liens in favor of the Banks including, without limitation, the Replacement Liens, will be subject to carve-out for all fees due to the U.S. Trustee and/or Clerk of Court; and Debtor is authorized to pay the U.S. Trustee fees without further order of the Court, pursuant to 28 U.S.C. section 1930. A copy of the Order is available for free at https://bit.ly/2OUb98A from PacerMonitor.com. About Innovative Software Solution, Inc. Innovative Software Solution, Inc. filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-10538) on Jan. 20, 2021. Natalie Frazier, president, signed the petition. Judge Scott M. Grossman oversees the case. Van Horn Law Group, PA, serves as the Debtor's legal counsel. INTERNATIONAL WIRE: S&P Upgrades ICR to 'B-', Outlook Stable ------------------------------------------------------------ S&P Global Ratings raised its issuer credit rating on U.S.-based wire producer International Wire Group Holdings Inc. (IWG) to 'B-' from 'CCC'. S&P assigned its 'B-' issue-level and '3' recovery ratings to the revolving credit facility and term loan due in 2025. Following the refinance of its capital structure, S&P expects IWG's leverage to improve to about 4x. The company has secured a new five-year credit facility and completed the redemption of the remaining outstanding senior secured notes that were due August 2021. As a result of the new maturity profile (weighted average maturity of 5 years), S&P views the company's capital structure as sustainable and expect IWG's debt leverage to remain about 4x EBITDA over the next 12-24 months. S&P said, "We expect EBITDA generation over the next 12-24 months to remain stable because of supportive demand conditions for its bare wire and engineered wire products. We expect U.S. light vehicle sales to grow to 16.4 million units in 2021 compared to 14.4 million in 2020. In addition, demand for IWG's products should be supported by real consumer spending growth and equipment investment growth of 5% and 8.5%, respectively. IWG is experiencing solid demand from industrial and energy markets, such as electrical appliances, power supply and railway applications, electronic and data communications applications, and automotive markets. Following the sale of the High Performance Conductors (HPC) segment in 2019, we expect IWG's EBITDA generation to be $35 million-$45 million in 2021 and 2022 compared to about $50 million in 2018. "The stable outlook reflects our view that IWG will maintain leverage of 4x-5x under current supportive demand conditions expected over the coming 12-24 months as its end markets continue recovering following the pandemic disruption in 2020. Specifically, we expect resilience in the industrial and energy industries. "We could upgrade the rating if the company consistently improves earnings and cash flow generation following the implementation of a new capital structure, the ongoing transition following the sale of the HPC segment, and the execution of a new business strategy under the new ownership. Following this transition phase, we would expect IWG to sustain leverage of 4x for a higher rating. "While unlikely in 2021, we could lower the rating on IWG in the longer term if the company generates persistent weak free operating cash flow and discretionary cash flow over the next several years as its debt maturities (December 2025) approach, resulting in the view that the capital structure is unsustainable." JAGUAR HEALTH: Signs $5 Million Non-Dilutive Financing Transaction ------------------------------------------------------------------ Jaguar Health, Inc. has signed the definitive agreement related to the previously announced term sheet for a third non-dilutive royalty financing transaction, pursuant to which Jaguar is selling to the lender for an aggregate purchase price of $5 million a royalty interest in future potential crofelemer sales for the proposed COVID-related indication in long-hauler patients, for which the Company is currently exploring the pathway of conditional marketing authorization in the European Union. The COVID-related indication is the initial indication to be pursued by Napo EU, the exclusive target of the planned Dragon special purpose acquisition company (the "Dragon SPAC"), which is anticipated to be listed on AIM Italia. "We are very happy to have secured an additional $5 million of non-dilutive financing to fund pipeline opportunities for crofelemer (Mytesi)," stated Lisa Conte, Jaguar's founder, president, and CEO. "We are continuing to actively investigate the long-hauler opportunity and have started to identify key opinion leader physicians in the US, as well as Europe, focused on addressing the symptoms - including gastrointestinal distress - that afflict a significant proportion of COVID-19 survivors for an extended period after recovery. Long-hauler syndrome is now a recognized condition in the US, where there are at least 125 clinics dedicated to treating long-hauler patients." Jaguar intends to use the proceeds from the proposed transaction to support regulatory activities associated with the Company's development pipeline, including supporting the development program for crofelemer for the prophylaxis and/or symptomatic relief of inflammatory diarrhea, initially to be studied in a long-hauler COVID-19 recovery patient population. This $5 million royalty financing transaction follows a $6 million royalty transaction consummated in October 2020 and a $6 million royalty transaction consummated in December 2020 with affiliates of the lender. Mytesi (crofelemer delayed release tablets), the only oral plant-based prescription medicine approved under FDA Botanical Guidance, is a novel, first-in-class anti-secretory agent which has a basic normalizing effect locally on the gut, and this mechanism of action has the potential to benefit multiple disorders. Mytesi is a non-opiate chloride ion channel modulating antidiarrheal medicine that is approved in the U.S. by the FDA for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. About Jaguar Health Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial stage pharmaceuticals company focused on developing novel, sustainably derived gastrointestinal products on a global basis. The Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary human gastrointestinal pharmaceuticals for the global marketplace from plants used traditionally in rainforest areas. Its Mytesi (crofelemer) product is approved by the U.S. FDA for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy. Jaguar reported a net loss of $38.54 million for the year ended Dec. 31, 2019, compared to a net loss of $32.15 million for the year ended Dec. 31, 2018. As of Sept. 30, 2020, the Company had $36.23 million in total assets, $28.43 million in total liabilities, and $7.81 million in total stockholders' equity. Mayer Hoffman McCann P.C., in San Francisco, California, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 2, 2020 citing that the Company has experienced losses since inception, significant cash used in operations, and is dependent on future financing to meet its obligations and fund its planned operations. These conditions raise substantial doubt about its ability to continue as a going concern. JFG HOLDINGS: May 25 Plan Confirmation Hearing Set -------------------------------------------------- On March 10, 2021, debtor JFG Holdings, Inc. filed with the U.S. Bankruptcy Court for the Northern District of Texas an Amended Plan of Reorganization and Amended Disclosure Statement. On March 11, 2021, Judge Edward Morris approved the Amended Disclosure Statement and ordered that: * May 18, 2021, is fixed as the last day for filing and serving written acceptances or rejections of the Plan in the form of a ballot. * May 25, 2021, at 1:30 p.m. in the Courtroom of the Honorable Edward Morris, 501 Tenth Street, 2 Floor, Fort Worth, Texas is fixed for the hearing on Confirmation of the Plan. * May 18, 2021, is fixed as the last day for filing and serving written objections to confirmation of the Plan. A full-text copy of the order dated March 11, 2021, is available at https://bit.ly/3lk2710 from PacerMonitor.com at no charge. Attorney for the Debtor: Eric A. Liepins ERIC A. LIEPINS, P.C. 12770 Coit Road Suite 1100 Dallas, Texas 75251 Tel: (972) 991-5591 Fax: (972) 991-5788 About JFG Holdings JFG Holdings, Inc., a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)), filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 20-43378) on Nov. 2, 2020. JFG Holdings President Janice Grimes signed the petition. At the time of filing, the Debtor estimated assets of up to $50,000 and estimated liabilities of $1 million to $10 million. Eric A. Liepins, P.C., serves as the Debtor's legal counsel. K COLBERT: Gets OK to Hire Chris Barsness as Legal Counsel ---------------------------------------------------------- K Colbert Properties, LLC, received approval from the U.S. Bankruptcy Court for the Central District of California to hire the Law Office of Chris Barsness as its legal counsel. The firm's services will include: (a) assisting the Debtor in its review and analysis of existing contractual arrangements with creditors, and advise the Debtor as to appropriate legal steps to be taken in connection with the administration, sale, termination or abandonment of property of the estate; (b) investigating the validity of security interests claimed by various parties and the applicability of the Debtor's avoiding powers and other causes of action; (c) taking the necessary steps to assist in the collection of accounts, objections to claims and similar matters; (d) assisting the Debtor in the preparation and submission of a disclosure statement and plan of reorganization; (e) assisting the Debtor in obtaining an order for post-petition borrowing; (f) preparing and filing motions and objections to claims; (g) assisting the Debtor in retaining professionals to market or conduct a valuation of its assets; and (h) investigating the facts surrounding any alleged secured creditor claims and potentially bringing legal action against any secured creditor. Chris Barsness, Esq., the principal attorney designated to represent the Debtor, will be paid at the rate of $400 per hour. The rate for paralegals and legal assistants is $85 per hour. The firm received a retainer of $10,000 and the filing fee of $1,738. Mr. Barsness disclosed in a court filing that he and his firm do not have interest adverse to the Debtor and its bankruptcy estate. The firm can be reached through: Chris Barsness, Esq. Law Office of Chris Barsness 15615 Alton Parkway, Suite 450 Irvine, CA 92618 Phone: (949) 529-1072 Email: chris@irvinecounsel.com About K Colbert Properties K Colbert Properties, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-10686) on Jan. 28, 2021. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Sandra R. Klein oversees the Debtor's case. The Debtor is represented by the Law Office of Chris Barsness. KHAN AVIATION: April 26 Plan Confirmation Hearing Set ----------------------------------------------------- NA Khan Trustee, the Khan Entities Trustee, and the IOI Debtors (collectively, the "Plan Proponents"), filed the motion for an order approving Disclosure Statement for the Joint Chapter 11 Plan of Liquidation for Najeeb Ahmed Khan, Khan Aviation, Inc. and Its Jointly Administered Debtors, and Interlogic Outsourcing, Inc. and Its Jointly Administered Debtors. On March 11, 2021, Judge Scott W. Dales granted the motion and ordered that: * The UST Objection is deemed withdrawn as stated on the record at the Disclosure Statement Hearing. The Lake City Objection and all other objections and responses to the Motion are overruled as stated on the record at the Disclosure Statement Hearing. * The Disclosure Statement is approved. * April 26, 2021, at 10:00 a.m. in the United States Bankruptcy Court for the Western District of Michigan, 1 Division Ave N, Room 200 Grand Rapids, Michigan 49503 is the Confirmation Hearing to consider the request of the Plan Proponents for confirmation of the Plan. * April 14, 2021 is fixed as the last day for filing and serving written objections or responses to the Plan Proponents' request for confirmation of the Plan. * April 21, 2021 is fixed as the last day to file any responses to any objections filed and served. * April 14, 2021 is the deadline for the receipt of Ballots accepting or rejecting the Plan. A full-text copy of the order dated March 11, 2021, is available at https://bit.ly/3eFBlyO from PacerMonitor.com at no charge. Counsel for the IOI Debtors: Paul Hastings LLP Matt Murphy Nathan S. Gimpel Matthew Smart 71 South Wacker Drive Forty-Fifth Floor Chicago, IL 60606 Telephone: (312) 499-6036 Facsimile: (312) 499-6100 - and - CBH Attorneys & Counselors, PLLC Steven L. Rayman 141 East Michigan Avenue Suite 301 Kalamazoo, MI 49007 Telephone: (269) 345-5156 Facsimile: (269) 345-5161 Counsel for the NA Khan Trustee: McDonald Hopkins LLP Nicholas M. Miller Michael J. Kaczka 300 N. LaSalle Street Suite 1400 Chicago, IL 60654 Telephone: (312) 280-0111 Facsimile: (312) 280-8232 -and- Miller Johnson L. Hillegonds 45 Ottawa Avenue, SW, Suite 1100 P.O. Box 306 Grand Rapids, MI 49501 Telephone: (616) 831-1711 Facsimile: (616) 988-1711 Counsel for the Khan Entities Trustee: Beadle Smith PLC Kevin M. Smith 445 South Livernois Suite 305 Rochester Hills, MI 48307 Telephone: (248) 650-6094 Facsimile: (248) 650-6095 About Khan Aviation Khan Aviation, Inc. and its affiliates, GN Investments LLC, KRW Investments Inc., NJ Realty LLC, NAK Holdings LLC, and Sarah Air LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mich. Case Nos. 19-04261, 19-04262, 19-04264, 19-04266, 19-04267 and 19-04268) on Oct. 8, 2019. The cases are jointly administered with that of Najeeb Ahmed Khan (Bankr. W.D. Mich. Case No. 19-04258), which is the lead case. Judge Scott W. Dales presides over the cases. The Debtors are represented by Robert F. Wardrop, II, Esq., at Wardrop & Wardrop, P.C. Kelly Hagan was appointed as Chapter 11 trustee for the Debtors' bankruptcy estates. The trustee is represented by Hagan Law Offices, PLC. At the time of the filing, the Debtors' estimated assets and liabilities are as follows: Debtors Assets Liabilities ------- -------------------- ---------------------- Khan Aviation $1-mil. to $10-mil. $1-mil. to $10-mil. GN Investments $1-mil. to $10-mil. $100-mil. to $500-mil. KRW Investments $10-mil. to $50-mil. $100-mil. to $500-mil. NJ Realty $1-mil. to $10-mil. $100-mil. to $500-mil. NAK Holdings $1-mil. to $10-mil. $100-mil. to $500-mil. Sarah Air $500,000 to $1-mil. $100-mil. to $500-mil. LA DHILLON: Unsecureds to be Paid in Full via Quarterly Payments ---------------------------------------------------------------- La Dhillon Investments, LLC, filed with the U.S. Bankruptcy Court for the Western District of Louisiana a Disclosure Statement describing Plan of Reorganization on March 11, 2021. Debtor has entered into a franchise agreement with Choice Hotels International, Inc., which requires various improvements to Debtor's hotel (the "PIP"). Mr. Singh shall provide DIP/exit financing, structured on a junior basis to the secured claim of BNY ("DIP Financing"), to fund the PIP for Choice Hotels. The DIP Financing will be in the approximate amount of $400,000, and will be funded as needed, though pursuant to Debtor's agreement with Choice Hotels, it is anticipated that the amount will be fully funded on or before March 30, 2021. To obtain an extension of until March 30, 2021 to satisfy the PIP, Choice Hotels required an extension fee of $5,000, for which Mr. Singh has paid individually. BNY's claims against the Debtor are categorized in Class 1, recognized as being secured by all assets of the Debtor, and will be treated as fully secured under this Plan. The Debtor will satisfy the secured claims of BNY in full, in the amount of $1,800,000.00, plus interest. BNY will issue to Debtor a new Promissory Note ("New Note") to address the secured balance due under the current note in the amount of $1,800,000.00. This amount will be treated as principal and will bear interest at a rate of 4% per annum. The Debtor will satisfy priority tax claims in the total approximate amount of $32,494.61 by paying an amount sufficient to pay the claims as filed with interest at the applicable statutory interest rate in equal monthly installments in an amount sufficient to retire the respective claims within sixty months from the Petition Date (approximately $600.00 per month, including interest). Devinder Singh's Exit financing claim will arise from the approximate $400,000 in new money which will be funded as needed, though pursuant to Debtor's agreement with Choice Hotels, this amount is anticipated to be funded on or before April 30, 2021. The DIP financing claim will be satisfied by renewed equity interest in the Debtor. Full funding of DIP financing is a condition for the Plan to become effective. General unsecured claims total approximately $195,346.89. Under the Plan's proposed treatment of Class 3, which contains general unsecured claims against the Debtor, general unsecured claims will be paid in full, without interest, with payments commencing 60 days from the Effective Date which shall be made in equal quarterly installments of approximately $9,767.34 over five years. Payments and distributions under the Plan will be funded by the ongoing operations of the business and the potential proceeds from the Adversary Proceeding. A full-text copy of the Disclosure Statement dated March 11, 2021, is available at https://bit.ly/2OXLhsC from PacerMonitor.com at no charge. Attorneys for the Debtor: Bradley L. Drell, Esq. Heather M. Mathews, Esq. GOLD WEEMS BRUSER SUES & RUNDELL P. O. Box 6118 Alexandria, LA 71307-6118 Tel: (318) 445-6471 Fax: (318) 445-6476 E-mail: bdrell@goldweems.com About La Dhillon Investments La Dhillon Investments, LLC, based in Ruston, LA, filed a Chapter 11 petition (Bankr. W.D. La. Case No. 20-30840) on Sept. 14, 2020. In the petition signed by Devinder Singh, owner, the Debtor was estimated to have $0 to $50,000 in assets and $1 million to $10 million in liabilities. The Hon. John S. Hodge presides over the case. Gold Weems Bruser Sues & Rundell, serves as bankruptcy counsel to the Debtor. LADAN INC: April 15 Plan & Disclosure Hearing Set ------------------------------------------------- On Feb. 18, 2021, debtor Ladan, Inc., filed with the U.S. Bankruptcy Court for the Northern District of California a Combined Chapter 11 Plan of Reorganization and Disclosure Statement. On March 11, 2021, Judge Dennis Montali tentatively approved the Disclosure Statement and ordered that: * April 8, 2021 is the last day for submitting written ballots accepting or rejecting the plan. * April 8, 2021 is the last day for filing and serving written objections to the disclosure statement and/or to confirmation of the plan. * April 15, 2020 at 9:30 a.m. by telephone or video is the hearing on final approval of the disclosure statement and on confirmation of the plan. A full-text copy of the order dated March 11, 2021, is available at https://bit.ly/3cCzecv from PacerMonitor.com at no charge. Attorneys for Ladan: GOODRICH & ASSOCIATES JEFFREY J. GOODRICH 336 Bon Air Center, #335 Greenbrae, CA 94904 Tel: (415) 925-8630 About Ladan Inc. Ladan, Inc. -- http://ludwigsfinewine.com/-- is a privately held company that owns and operates wine, beer, and liquor stores. Ladan, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 20-30130) on Feb. 6, 2020. The case is assigned to Judge Dennis Montali. In the petition signed by Magid Nazari, president, the Debtor had $258,503 in assets and $7,672,414 in liabilities. Jeffrey Goodrich, Esq., at GOODRICH & ASSOCIATES, is the Debtor's counsel. LANCASHIRE HOLDINGS: S&P Rates $400MM Jr. Subordinated Notes 'BB+' ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB+' issue-level rating to Lancashire Holdings Ltd.'s (BBB/Stable/--) (LSE: LRE) 5.625% $400 million junior subordinated notes due 2041. S&P's issue-level rating is two notches below its long-term issuer credit rating on Lancashire, which reflects the subordination and deferability of interest payments. These notes are contractually subordinated to policyholder obligations and to all existing and future secured and unsecured senior debt and all subordinated debt obligations of Lancashire. The notes rank equally to all future junior subordinated debt of the company. S&P said, "We expect the proposed issuance will receive Tier 2 capital treatment under the Bermuda Monetary Authority's capital requirement rules. We assign an intermediate equity content to these junior subordinated notes." Lancashire intends to use a substantial portion of the net proceeds from this offering to redeem debt outstanding and the remainder for general corporate purposes. Financial leverage as of year-end 2020 was 18.4% and fixed-charge coverage was 0.8x. S&P said, "We expect financial leverage for 2021 will modestly increase to about 21%, incorporating the new $400 million debt and redemption of $328 million of existing debt. Furthermore, we believe fixed-charge coverage will improve to more than 4x, assuming an average catastrophe year, as Lancashire capitalizes on firming re/insurance pricing." Ratings List New Rating Lancashire Holdings Ltd. Junior Subordinated BB+ LAROCHE CARRIER: US Trustee Opposes Amended Disclosures ------------------------------------------------------- Nancy J. Gargula, United States Trustee ("U.S. Trustee"), submitted limited objections and comments to the Amended Disclosure Statement filed by debtor LaRoche Carrier, LLC on February 15, 2021. Subsequent to filing the Amended Disclosure Statement (Docket #208), the Debtor filed another Amended Disclosure Statement on March 9, 2021, that has an amended plan attached as Exhibit A (Docket #216). On March 10, 2021, the Debtor filed an Amended Plan (Docket #217). The filing of these documents raises the following concerns which the Debtor should address: * The major difference between Disclosure Statement #208 and Disclosure Statement #216 relates to the payment terms to BMO Harris Bank. It is unclear whether there are any other differences between the two disclosure statements. * With respect to the recital of the payment terms to BMO Harris Bank, the plan attached as Exhibit A to Disclosure Statement #216 does not match that Disclosure Statement, nor does it match the Amended Plan filed at #217. As a result, it is not clear which payment terms are accurate. The U.S. Trustee comments on the following concerns that potentially make the Amended Plan #217 unlikely to be confirmed. These concerns are raised at this time to hopefully promote action by the Debtor and save resources as this case has been pending for almost two years already: * The Amended Plan provides at Class 4, Equity Interests of the Debtor, that the Debtor's owner, Jean-Paul Kalonji will pay $10,000.00 into the plan. However, Mr. Kalonji is currently the debtor in a confirmed Chapter 13 case, case no. 19-10489, and as such, is obligated to pay all his disposable income into his Chapter 13 plan. It is unclear how Mr. Kalonji can accomplish both goals. * The Amended Plan provides that both the claims of the IRS ($22,844.21) and of the Indiana Department of Workforce Development ($3,079.49) are disputed and expected to be objected to. At the least, more information is needed regarding the nature and timing of the Debtor's objections as it is unlikely that a plan will be confirmed without some resolution or clarity regarding these claims. A full-text copy of the US Trustee's objection dated March 11, 2021, is available at https://bit.ly/3ljtW9G from PacerMonitor.com at no charge. About LaRoche Carrier LaRoche Carrier, LLC, was engaged in using multiple vehicles and multiple trailers. The company was paying drivers by the miles and ran into difficulty keeping drivers and also having mechanical failures for both the tractors and the trailers. Laroche Carrier LLC sought Chapter 11 protection (Bankr. N.D. Ind. Case No. 19-10532) on April 1, 2019. Frederick W. Wehrwein, Esq., at FRED WEHRWEIN, P.C., is the Debtor's counsel. LUCKIN COFFEE: Enters Restructuring Deal With Noteholders --------------------------------------------------------- Luckin Coffee Inc. (in Provisional Liquidation) (OTC: LKNCY) on March 16, 2021, announced that it has entered into a restructuring support agreement (the "RSA") with holders of a majority of Luckin Coffee's $460 million1 0.75% Convertible Senior Notes due 2025 (the "Existing Notes"). The holders of Existing Notes who are party to the RSA (the "Restricted Group") collectively hold or control approximately 59% in aggregate principal amount of the Existing Notes. Now that the terms of the RSA are public, Luckin Coffee can and will seek support for the RSA from additional holders of the Existing Notes. Pursuant to the restructuring contemplated in the RSA (the "Restructuring"), which the Restricted Group has agreed to support and vote in favor of, Luckin Coffee expects to restructure the Existing Notes in a manner designed to allow the Company to comprehensively address its capital structure and better position it for long-term success. The Restructuring is expected to provide recovery to the holders of the Existing Notes in the amount of approximately 91-96% of par value.2 "We are pleased to reach this agreement with our noteholders, which represents an important milestone for Luckin Coffee," said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. "Today, we have a new leadership team and a viable plan to return Luckin Coffee to growth and value creation. The Board of Directors and management team believe that the Restructuring is in the best interests of the Company and its stakeholders. We will continue to take action to strengthen our capital structure while delivering outstanding products and services for our customers." All Luckin Coffee stores remain open for business, continuing to offer high quality products, affordability and convenience to customers in the People's Republic of China (the "PRC"). The transactions contemplated in the RSA are expected to strengthen Luckin Coffee's financial stability and enhance its continuing ability to serve its customers. The Company continues to meet its trade obligations in the ordinary course of business, including paying suppliers, vendors and employees. Transactions Contemplated in the RSA As described in more detail and subject to the terms therein, the RSA contemplates, among other things, that the holders of the Existing Notes shall receive, on or after the effective date of the Restructuring, for each $1,000 principal amount and accrued and unpaid interest of the Existing Notes: * Cash in an amount of $320, representing a recovery of 32% of par (the "Cash Consideration"); * $230 principal amount of 9.00% One-Year Senior Secured Notes (the "New Notes A"), representing a recovery of 23% of par; * $300 principal amount of 9.00% Five-Year Senior Secured Notes (the "New Notes B"), representing a recovery of 30% of par; * A number of American Depository Shares of Luckin Coffee ("ADSs") valued at $60, representing 6% of par; and * if Luckin Coffee is able to raise equity in the amount of $50 million or more prior to the effective date of the Restructuring, then each holder of Existing Notes will have the option (the "Equity Conversion Option") to elect to replace up to $100 principal amount of New Notes A per $230 principal amount of New Notes A (such principal amount elected, the "Equity Conversion Amount") with ADSs, or if ADSs are not available, New Notes B and/or cash, subject to a top-up mechanism that guarantees a recovery of 150% on the Equity Conversion Amount, representing an additional recovery of up to 5% of par.4 Luckin Coffee expects to implement the Restructuring through a scheme of arrangement in respect of the Existing Notes (the "Scheme") pursuant to section 86 of the Companies Act (2021 Revision) (the "Companies Act") of the Cayman Islands.5 The RSA provides that the Scheme must be approved in the Cayman Court and then enforced in the United States under chapter 15 of the U.S. Bankruptcy Code. RSA Timeline As further detailed in the RSA, the RSA will be effective and binding upon the Company and the Restricted Group until the earlier of: (i) the implementation of the Restructuring following its approval in the Cayman Court and enforcement in the U.S. Bankruptcy Court and (ii) December 31, 2021 (the “RSA Long-Stop Date”); provided that the Company and the JPLs may extend the RSA Long-Stop Date (i) for a period of up to 30 days, unless the Majority Ad Hoc Group (as defined in the RSA) objects to such extension and provides 5 business days’ prior written notice of such objection to the Company and the JPLs and (ii) until such later time as agreed in writing between the Company, the JPLs and the Majority Ad Hoc Group. Prior to the RSA Long-Stop Date, the Company is required to complete certain milestones to ensure the Restricted Group’s continued support for the Restructuring. These milestones include obtaining reasonable assurance of offshore7 funding in an amount equal to or greater than the Cash Consideration by June 14, 2021. In addition, the milestones require Luckin Coffee to file (i) a petition with the Cayman Court under section 86 of the Companies Act for an order approving the Scheme; and (ii) a summons with the Cayman Court for directions to convene the relevant meeting of creditors in respect of the Scheme, in each case no later than September 1, 2021. As required under the RSA, the Company shortly will commence the formal PRC regulatory approval process to transfer funds offshore through a planned capital reduction, in an amount sufficient to satisfy the Cash Consideration. The Company’s unaudited consolidated cash balance, excluding restricted cash and illiquid investments, amounts to approximately $775 million as of February 28, 2021.8 The capital reduction process is subject to approval from the relevant regulators in the PRC. Importantly, this remittance of PRC funds is not expected to have any impact on the Company’s ability to continue to meet its trade obligations in the ordinary course of business, including paying suppliers, vendors and employees. While there is no certainty that the above-described PRC regulatory approvals will be obtained, the Company is also pursuing alternative funding solutions from external investment sources. The Company is presently engaged in exclusive discussions for a period of 30 days9 with a credible investor, with a view to raise at least $250 million of equity funding through a private placement. This contemplated transaction is subject to ongoing negotiations and could be conditioned upon a number of factors, such as the market conditions and the filing of the Company's 2019 annual report.10 Accordingly, there is no assurance with respect to the terms or the completion of this transaction. Instructions to Become Party to the RSA In connection with the Restructuring, Luckin Coffee is advised by Davis Polk & Wardwell LLP as legal counsel and Houlihan Lokey as financial advisor. Holders of Existing Notes may contact Houlihan Lokey at HL_Lake@HL.com with any questions regarding the RSA or the Restructuring. A copy of the RSA and instructions for holders of Existing Notes who would like to accede to the RSA are available on the Joint Provisional Liquidators' website at https://dm.epiq11.com/case/luckin/documents. About Luckin Coffee Luckin Coffee (OTC: LKNCY) -- http://www.luckincoffee.com/-- has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, Luckin Coffee pursues its mission to be part of everyone's everyday life, starting with coffee. Luckin Coffee was founded in 2017 and is based in China. In July 2020, Luckin Coffee called in liquidators in the Cayman Islands to oversee a corporate restructuring and negotiate with creditors to salvage its business, less than four months after shocking the market with a US$300 million accounting fraud. The Company hired Houlihan Lokey as financial advisers to implement a workout with creditors. The start-up company also named Alexander Lawson of Alvarez & Marsal Cayman Islands and Tiffany Wong Wing Sze of Alvarez & Marsal Asia to act as "light-touch" joint provisional liquidators (JPLs) under a Cayman Islands court order. The Joint Provisional Liquidators of Luckin Coffee, Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited, on Feb. 5, 2021, filed a verified petition under chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-10228). The Chapter 15 Petition seeks, among other things, recognition in the United States of the Company's provisional liquidation pending before the Grand Court of the Cayman Islands. DLA Piper LLP (US), led by Thomas R. Califano and Robert Craig Martin, is the U.S. counsel. LW RETAIL: Gets Cash Collateral Access Thru April 8 --------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of New York has authorized LW Retail Associates LLC to use the cash collateral of National Bank of New York City on an interim basis in the ordinary course of business in accordance with the budget through April 8, 2021. LW Retail asserts that the value of its estate will be maximized by the continuation of the Debtor as a going concern, and the use of the Collateral is essential to such operation. On October 2, 2015, the Debtor entered into an Amended and Restated Mortgage Note with NBNYC pursuant to which, NBNYC extended credit to the Debtor in the amount of $6,250,000 at a variable interest rate of 3.5% with monthly payments in the amount of $28,246.89, said payments having been established using a 30-year amortization schedule, with a maturity date of November 1, 2020. The current unpaid balance is approximately $5,673,488.49. While the Note expired by its own terms, NBNYC extended the Note's term for an additional 12 months; the new maturity date is November 1, 2021. To secure the Debtor's obligations under the Note, on or about October 2, 2015, the Debtor and NBNYC entered into an Agreement of Assumption of Note and Mortgage Consolidation of Notes and Mortgages and Modification of the Consolidated Mortgage which grants NBNYC a mortgage and security interest in the Debtor's assets. The Debtor states that the grant of security by the Debtor to NBNYC pursuant to the Note was perfected by virtue of the filing of a UCC-1 financing statement which was filed on October 5, 2015. To secure the Debtor's obligations under the Note, on October 2, 2015, the Debtor and NBNYC entered into an Assignment of Leases and Rents pursuant to which the Debtor assigned to NBNYC its rights in all existing and future leases, rents, claims arising from any rejection of any lease in bankruptcy, lease guaranties, proceeds from the sale of the foregoing. In addition to the existing rights and interests of NBNYC and the Board in the Collateral and for the purpose of adequately protecting such interests of them from Collateral Diminution, NBNYC and the Board are granted replacement liens in all of the Debtor's pre-petition and post-petition assets and proceeds, including the Cash Collateral and the proceeds of the foregoing, to the extent that such prior liens were valid, perfected and enforceable as of the Petition Date, and in the amount of such Collateral Diminution. As further adequate protection of NBNYC's interests, the Debtor will make monthly adequate protection payments to NBNYC in the amount provided for in the underlying loan documents which are at the non-default contract rate of interest. The Court's order also provides for further adequate protection of New York City Department of Tax and Finance's interests. Real property taxes became due to NYCDTF on July 1, 2017. As the Petition Date, $128,466.85 in real property tax payments remained due and owing from the Debtor to NYCDTF. Real property taxes are a first priority statutory lien on real property. The Order provides that the Debtor will make monthly adequate protection payments to NYCDTF in the amount of $1,284.66 per month and such payment is deemed to satisfy the provisions of 11 U.S.C. section 362(d)(3)(B). A further interim hearing is scheduled for April 8 at 10:30 a.m. A copy of the order is available for free at https://bit.ly/2OwmaNI from PacerMonitor.com. About LW Retail Associates LLC LW Retail Associates, LLC, owns in fee simple interest four condominium units in New York valued by the Company at $12.20 million in the aggregate. LW Retail Associates filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 17-45189) on Oct. 5, 2017. In the petition signed by Louis Greco, manager, the Debtor disclosed $12.64 million in assets and $6.25 million in liabilities. LW Retail considers itself a Single Asset Real Estate as defined in 11 U.S.C. Section 101(51B). Judge Elizabeth S. Stong oversees the case. Dawn Kirby, Esq., at DelBello Donnellan Weingarten Wise & Wiederkehr, LLP, is the Debtor's counsel. Goldberg Weprin Finkel Goldstein LLP, is the special litigation counsel. MALLINCKRODT PLC: Rockford Wants Acthar Cases Out of Bankruptcy --------------------------------------------------------------- Law360 reports that the city of Rockford, Illinois, has urged a federal court to hold off ruling on Mallinckrodt's bid to transfer its case involving the drugmaker's hormone treatment Acthar to the Delaware court overseeing the company's bankruptcy, saying the Judicial Panel on Multidistrict Litigation should first rule on a consolidation request. Mallinckrodt in January 2021 asked for a transfer of this and nine related cases, which alleged claims for antitrust, racketeering and other violations, to Delaware Bankruptcy Court where it sought Chapter 11 protection in mid-October with $5.3 billion in debt. About Mallinckrodt PLC Mallinckrodt 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. On the Web: http://www.mallinckrodt.com/ 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 them. Mallinckrodt plc disclosed $9,584,626,122 in assets and $8,647,811,427 in liabilities as of Sept. 25, 2020. Judge John T. Dorsey oversees the cases. The Debtors tapped Latham & Watkins LLP and Richards, Layton & Finger P.A. as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray LLP as litigation counsel; Torys LLP as CCAA counsel; Guggenheim Securities LLC as investment banker; and AlixPartners LLP as restructuring advisor. Prime Clerk, LLC is the claims agent. The official committee of unsecured creditors retained Cooley LLP as its legal counsel, Robinson & Cole LLP as co-counsel, and Dundon Advisers LLC as its financial advisor. On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an official committee of opioid related claimants. The OCC tapped Akin Gump Strauss Hauer & Feld LLP as its lead counsel, Cole Schotz as Delaware co-counsel, Province Inc. as financial advisor, and Jefferies LLC as investment banker. MALLINCKRODT PLC: Troutman, Gibson 3rd Update on Term Lender Group ------------------------------------------------------------------ Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firms of Dunn & Crutcher LLP and Troutman Pepper Hamilton Sanders LLP submitted a third amended verified statement to disclose an updated list of Ad Hoc First Lien Term Lender Group that they are representing in the Chapter 11 cases of Mallinckrodt PLC, et al. On or around May 2019, the Ad Hoc First Lien Term Lender Group was formed and retained attorneys currently affiliated with Gibson, Dunn & Crutcher LLP to represent them as counsel in connection with a potential restructuring of the outstanding debt obligations of the above-captioned debtors and certain of their subsidiaries and affiliates. In September 2020, the Ad Hoc First Lien Term Lender Group retained Troutman Pepper Hamilton Sanders LLP as Delaware counsel. On October 14, 2020, the Ad Hoc First Lien Term Lender Group filed its Verified Statement of the Ad Hoc First Lien Term Lender Group Pursuant to Bankruptcy Rule 2019 [Docket No. 194]. On November 10, 2020, the Ad Hoc First Lien Term Lender Group filed its First Amended Verified Statement of the Ad Hoc First Lien Term Lender Group Pursuant to Bankruptcy Rule 2019 [Docket No. 470]. On January 14, 2021, the Ad Hoc First Lien Term Lender Group filed its Second Amended Verified Statement of the Ad Hoc First Lien Term Lender Group Pursuant to Bankruptcy Rule 2019 [Docket No. 1168]. The Ad Hoc First Lien Term Lender Group now files this Third Amended Verified Statement to amend and supplement the disclosures set forth on Exhibit A. As of March 14, 2021, members of the Ad Hoc First Lien Term Lender Group and their disclosable economic interests are: Benefit Street Partners LLC 9 West 57th Street, 49th Floor New York, NY 10019 * First Lien Credit Agreement Claims: $19,611,231 Blackrock Financial Management, Inc. 55 East 52nd Street New York, NY 10055 * First Lien Credit Agreement Claims: $12,119,730 Canyon Capital Advisors LLC 2000 Avenue of the Stars, 11th Floor Los Angeles, CA 90067 * First Lien Credit Agreement Claims: $170,566,242 * $5,000,000 10% Senior Notes due 2025 Canyon CLO Advisors LLC 2000 Avenue of the Stars, 11th Floor Los Angeles, CA 90067 * First Lien Credit Agreement Claims: $23,325,740 Caspian Capital LP 10 East 53rd Street New York, NY 10022 * First Lien Credit Agreement Claims: $109,678,213 CIFC Asset Management LLC 875 Third Avenue, 24th Floor New York, NY 10022 Asset Management LLC * First Lien Credit Agreement Claims: $63,586,888 Contrarian Capital Management, L.L.C. 411 West Putnam Avenue, Suite 425 Greenwich, CT 06830 * First Lien Credit Agreement Claims: $19,969,344 Eaton Vance Management and Boston Management and Research 2 International Place, 9th Floor Boston, MA 02110 * First Lien Credit Agreement Claims: $238,288,177 First Eagle Alternative Credit, LLC 227 West Monroe Street, Suite 3200 Chicago, IL 60606 * First Lien Credit Agreement Claims: $42,804,423 First Trust Advisors 120 E Liberty Drive Suite 400 Wheaton, IL 60187 * First Lien Credit Agreement Claims: $51,929,382 * $25,000,000 10% First Lien Notes due 2025 * $28,000,000 10% Second Lien Notes due 2025 * $1,500,000 5.625% Senior Notes due 2023 * $2,000,000 5.5% Senior Notes due 2025 Glendon Capital Management, L.P. 2425 Olympic Boulevard, Suite 500E Santa Monica, CA 90404 * First Lien Credit Agreement Claims: $42,888,681 Marathon Asset Management, LP One Bryant Park, 38th Floor New York, NY 10036 * First Lien Credit Agreement Claims: $55,571,608 Morgan Stanley Senior Funding, Inc. 1585 Broadway, 2nd Floor New York, NY 10036 * First Lien Credit Agreement Claims: $38,328,993 MSD Credit Opportunity Master Fund, L.P. 645 Fifth Avenue, 21st Floor New York, NY 10022-5910 * First Lien Credit Agreement Claims: $20,289,203 Neuberger Berman Investment Advisers LLC and Neuberger Berman Loan Advisers LLC 190 South LaSalle Street, 23rd Floor Chicago, IL 60603 * First Lien Credit Agreement Claims: $39,794,604 Octagon Credit Investors, LLC 250 Park Avenue, 15th Floor New York, NY 10177 * First Lien Credit Agreement Claims: $67,917,192 PGIM, Inc. 655 Broad Street, 9th Floor Newark, New Jersey 07102 * First Lien Credit Agreement Claims: $17,760,771 Redding Ridge Asset Management, LLC 126 East 56th St., 22nd Floor New York, NY 10022 * First Lien Credit Agreement Claims: $8,866,876 Redwood Capital Management, LLC 910 Sylvan Ave. Englewood Cliffs, NJ 07632 * First Lien Credit Agreement Claims: $46,777,904 Silver Point Capital, LP Two Greenwich Plaza Greenwich, CT 06830 * First Lien Credit Agreement Claims: $305,875,457 Nuveen Asset Management LLC TIAA-CREF Investment Management, LLC and Teachers Advisors, LLC 8500 Andrew Carnegie Blvd. Charlotte, NC 28262 * First Lien Credit Agreement Claims: $96,538,645 Trimaran Advisors, L.L.C. and Trimaran Advisors Management, L.L.C. 600 Lexington Ave. New York, New York 10022 * First Lien Credit Agreement Claims: $16,508,287 Counsel for the Ad Hoc First Lien Term Lender Group can be reached at: TROUTMAN PEPPER HAMILTON SANDERS LLP David M. Fournier, Esq. Kenneth A. Listwak, Esq. Hercules Plaza, Suite 5100 1313 N. Market Street, P.O. Box 1709 Wilmington, DE 19899-1709 Telephone: (302) 777-6500 Facsimile: (302) 421-8390 E-mail: david.fournier@troutman.com ken.listwak@troutman.com - and - Scott J. Greenberg, Esq. Michael J. Cohen, Esq. Matthew L. Biben, Esq. GIBSON, DUNN & CRUTCHER LLP 200 Park Avenue New York, NY 10166 Telephone: (212) 351-4000 Facsimile: (212) 351-4035 E-mail: sgreenberg@gibsondunn.com mcohen@gibsondunn.com mbiben@gibsondunn.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://bit.ly/3qUX0FN and https://bit.ly/2OW808q About Mallinckdrodt Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. As of March 27, 2020, the Company had $10.17 billion in total assets, $8.27 billion in total liabilities, and $1.89 billion in total shareholders' equity. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware in the U.S. (Bankr. D. Del. Lead Case No. 20-12522) to seek approval of a restructuring that would reduce total debt by $1.3 billion and resolve opioid-related claims against the Company. Mallinckrodt plc disclosed $9,584,626,122 in assets and $8,647,811,427 in liabilities as of Sept. 25, 2020. Latham & Watkins LLP, Ropes & Gray LLP and Wachtell, Lipton, Rosen & Katz are serving as counsel to the Company, Guggenheim Securities, LLC is serving as investment banker and AlixPartners LLP is serving as restructuring advisor to Mallinckrodt. Hogan Lovells is serving as counsel with respect to the Acthar Gel matter. Prime Clerk LLC is the claims agent. MEDOLAC LABORATORIES: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Medolac Laboratories, A Public Benefit Corporation FDBA Neolac, Inc. 1031 Nevada Highway Boulder City, NV 89005 Business Description: Medolac Laboratories, A Public Benefit Corporation -- https://www.medolac.com -- is a producer of human milk based nutritional and therapeutic products intended to provide breast milk to preterm babies. Chapter 11 Petition Date: March 17, 2021 Court: United States Bankruptcy Court District of Nevada Case No.: 21-11271 Judge: Hon. August B. Landis Debtor's Counsel: Matthew C. Zirzow, Esq. LARSON & ZIRZOW, LLC 850 E. Bonneville Ave. Las Vegas, NV89101 Tel: 702-382-1170 Email: mzirzow@lzlawnv.com Debtor's Accountant: HELMUT A. KOEHN PC Debtor's Special Litigation Counsel: H1 LAW GROUP Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Elena M. Medo, chairman/chief executive officer. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/HFGJBCA/MEDOLAC_LABORATORIES_A_PUBLIC__nvbke-21-11271__0001.0.pdf?mcid=tGE4TAMA MILLERS LANE: Gets OK to Hire Marcus & Millichap as Broker ---------------------------------------------------------- Millers Lane Center, LLC, received approval from the U.S. Bankruptcy Court for the Western District of Kentucky to hire Marcus & Millichap Real Estate Investment Services, Inc., as its real estate broker. The Debtor requires the services of a real estate broker to market and sell its industrial storage warehouse in Louisville, Ky. Marcus & Millichap will get a 3 percent commission on the total sale price of the property. Larry Hausman of Marcus & Millichap disclosed in a court filing that his firm does not have an interest materially adverse to the interest of the Debtor's bankruptcy estate, creditors and equity security holders. Marcus & Millichap can be reached through: Larry Hausman Marcus & Millichap Real Estate Investment Services, Inc. 9300 Shelbyville Road Louisville, KY 40222 About Millers Lane Center Millers Lane Center LLC, a privately held company in the general rental centers industry, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ky. Case No. 19-32095) on July 2, 2019. In the petition signed by its managing member, Mark S. Brewer, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Joan A. Lloyd oversees the case. The Debtor tapped Kaplan Johnson Abate & Bird, LLP as its bankruptcy counsel, The Law Office of C. Thomas Hectus as special counsel, and Winters Tax & Consulting Services, LLC, as accountant. MOBITV INC: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------ The U.S. Trustee for Regions 3 and 9 on March 15 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of MobiTV, Inc. and MobiTV Service Corporation. The committee members are: 1. ATEME, Inc. Attn: Ray Fitzgerald 750 W. Hampden Ave. Suite 290 Englewood, CO 80110 E-mail: r.fitzgerald@ateme.com 2. BEAR Cloud Technologies Inc. Attn: Donald James Jr. 1160 Battery Street East, Suite 110 San Francisco, CA 94111 Phone: (415) 720-5020 E-mail: finance@bearcloudtech.com 3. Loma Alta Holdings, Inc. Attn: Mark McGourty 2000 Crow Canyon Place, Suite 250 San Ramon, CA 94583 Phone: (510) 928-4421 E-mail: mmcgourty@kovarus.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About MobiTV Inc. Founded in 2000, MobiTV is the first company to bring live and on-demand television to mobile devices and is a leader in application-based television and video delivery solutions. MobiTV provides end-to-end internet protocol streaming television services ("IPTV") via a proprietary cloud-based, white-label application. On March 1, 2021, MobiTV Inc. and MobiTV Service Corporation filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10457). MobiTV Inc. estimated at least $10 million in assets and $50 million to $100 million in liabilities as of the filing. FTI Consulting, Inc. and FTI Capital Advisors LLC have been retained as the Debtors' financial advisor and investment banker to assist in negotiation of strategic options. Pachulski Stang Ziehl & Jones LLP and Fenwick & West LLP are serving as the Debtors' legal counsel. Stretto is the claims agent, maintaining the page https://cases.stretto.com/MobiTV. MSCI INC: Moody's Rates 2030 Incremental Unsecured Notes 'Ba2' -------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to MSCI Inc.'s proposed incremental 3.625% senior unsecured notes due 2030. MSCI plans to use the net proceeds to repay its $500 million 4.75% senior unsecured notes due 2026, along with related prepayment fees and other expenses. RATINGS RATIONALE Moody's considers the lower 3.625% interest rate and extended maturity profile of the proposed notes compared to the 4.75% notes due 2026 that the net proceeds will be used to repay positive credit developments. There is a mildly negative profit and cash flow impact from early repayment costs. Financial leverage should remain around 3.5 times in 2021. Therefore, the Ba2 corporate family rating and senior unsecured rating, as well as the stable outlook, remain unchanged at this time. All financial metrics cited reflect Moody's standard adjustments. MSCI's Ba2 CFR is supported by its growing, recurring subscription base of investment risk management and decision support tools and equity index products. Revenue growth is driven by subscription growth, the rising popularity of equity exchange traded funds and international funds, including those employing passive equity investment strategies, increasing use of risk management products and steady subscriber retention rates above 90%. A high proportion of revenues from recurring subscriptions provides visibility, but AUM-based fees reflect volatile equity market risk. Moody's notes MSCI's revenue size is somewhat small compared to many other services issuers also rated in the Ba2 rating category, but expectations for 8% to 10% revenue growth, EBITA margins of over 50% and good free cash flow to debt of over 10% over the next 12 to 18 months provide ratings support. MSCI's largest customer accounts for over 10% of revenues and over 40% of assets under management (AUM) -based fees. While financial leverage is somewhat high compared to other services companies also rated in the Ba2 category, debt to EBITDA should return to approaching 3.5 times by the end of 2021 through revenue-growth-driven profit expansion. Meanwhile, EBITA to interest around 6 times, very good free cash flow and EBITA margins around 50% compare favorably to other Ba2 services issuers. MSCI is a service provider to sophisticated financial market businesses, so there are limited environmental and social risks, including few adverse impacts from the coronavirus pandemic. MSCI's financial strategies have prioritized building liquidity while the economic disruption and uncertainty from the coronavirus pandemic remains elevated, but Moody's anticipates the company maintain its historically opportunistic and aggressive financial strategies, including borrowing to fund shareholder returns, and perhaps acquisitions, from time to time. Although overall governance risk is moderate, Moody's considers MSCI's financial strategies aggressive, as they feature annual shareholder returns from dividends and share repurchases which are often in excess of internally-generated free cash flow, leading the company to add debt as its profits grow, periodically and temporarily driving debt to EBITDA to over 4 times. That said, Moody's expects MSCI will maintain its target financial leverage range of 3.0 to 3.5 times (as defined by the company) while it remains an active purchaser of its own stock. Debt-funded acquisitions are also a risk, although the pace and scale of M&A has been moderate historically. Moody's considers MSCI's liquidity profile very good, reflected in the SGL-1 speculative grade liquidity rating. Moody's expects MSCI will maintain over $250 million of cash and cash equivalents. The company had $1.3 billion of cash as of December 31, 2020. Additional liquidity support is provided by free cash flow expected to remain in excess of $500 million and full availability of the $400 million unsecured revolving credit facility maturing in 2024. MSCI is seeking a $500 million unsecured revolver maturing in 2026; if closed, the larger size and longer revolving period would be positive liquidity developments. The stable outlook reflects Moody's expectations for 8% revenue growth, high and increasing rates of profitability and debt to EBITDA to remain above 3.5 times. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if financial policies are revised to emphasize lower debt levels such that debt to EBITDA will remain around 3 times and free cash flow to debt will stay above 10%. The ratings could be downgraded if Moody's notes a meaningful increase in competition, MSCI's client retention rates deteriorate or a more difficult pricing environment evolves. The ratings could also be downgraded if Moody's anticipates low revenue growth, an erosion in rates of profitability, debt to EBITDA sustained above 4.5 times, or free cash flow to debt under 5%. Issuer: MSCI Inc. Senior Unsecured Notes due 2030, Assigned Ba2 (LGD4) The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. MSCI is a global provider of investment risk and decision support tools, including indices and portfolio risk and performance analytics products and services. Moody's expects revenues of over $1.8 billion in 2021. NATIONAL CAMPUS: S&P Lowers 2019 Revenue Bond Rating to 'B' ----------------------------------------------------------- S&P Global Ratings lowered its long-term rating four notches to 'B' from 'BB+' on the California Statewide Communities Development Authority's series 2019 college housing revenue bonds, issued on behalf of National Campus & Community Development Corp. (NCCD)-Hooper Street LLC (the borrower). NCCD-Hooper Street LLC is a California-based, single-member limited liability company, and its sole member is Texas-based NCCD. The outlook is negative. "The multinotch downgrade reflects our view of the significant operating pressure that the borrower faces due to our view of the loss of rental revenue as a result of lower-than-expected occupancy at the project, now called Founders Hall, following the onset of the COVID-19 pandemic," said S&P Global Ratings credit analyst Mary Ellen Wriedt. S&P said, "We understand that on Feb. 22, 2021, cash flow from Founders Hall was insufficient to make the monthly loan payment required under the loan agreement, and as a result, an event of default under the bond documents occurred. Prior to Feb. 22, 2021, deposits had been made from the capitalized interest account, and the Jan. 1, 2021, debt service payment of $2.3 million was made to the trustee. The project, which opened in fall 2020 to 28% occupancy, currently has 37% occupancy for the spring semester, due to lower housing demand as a result of online instruction, as well as the de-densification of the facility occupancy. As a result of a city ordinance, the California College of the Arts (CCA) was unable to require students to live on campus. "We understand management expects to draw on its debt service reserve fund (DSRF) to make the July 1, 2021, debt service payment of $2.3 million; the magnitude of the DSRF draw is unknown at this time but, given limited other reserves, could be close to the full amount of debt service due. We understand the DSRF is currently fully funded at $6.0 million. Additionally, we anticipate debt service coverage will be significantly impaired in fiscal 2021, likely below 1.0x. "The negative outlook reflects our view that it is likely the project will continue to generate weaker rental revenues and will need to use debt service reserve funds, with no clear ability to replenish these funds, and no extraordinary support from CCA. We understand that if the DSRF is drawn to make the July 1, 2021, debt service payment, the project will have a 12-month replenishment requirement, which could prove challenging. We believe there is a high level of uncertainty regarding the duration and extent of the COVID-19 pandemic and recognize that the situation is fluid. "We could lower the rating further if occupancy does not improve and COVID-19-related pressures continue to influence the trajectory of the project's finances and result in continued draws on the debt service reserve funds for future payments. "We could revise the outlook to stable if the housing project were to improve occupancy so that it is able to stabilize operating performance and cover both operations and debt service requirements." Total long-term debt currently outstanding is $89.9 million. NATIONAL RIFLE ASSOCIATION: Reaches Deal With AG on Deposition -------------------------------------------------------------- Law360 reports that the National Rifle Association told a Texas bankruptcy judge on Monday, March 15, 2021, that it had reached an agreement with the Office of the New York Attorney General that will allow an NRA board member to sit for a deposition focused on the organization's decision to file for Chapter 11 protection in January 2021. During a virtual hearing, NRA attorney Gregory E. Garman of Garman Turner Gordon LLP said that the parties held a discussion session on Sunday, March 14, 2021, that resulted in the deal for NRA board member Phillip Journey to sit for a short, focused deposition where New York Attorney General Letitia James. About the National Rifle Association Founded in 1871 in New York State, the National Rifle Association of America is a gun rights advocacy group. The NRA claims to be the longest-standing civil rights organization and has more than five million members. Seeking to move its domicile and principal place of business to Texas amid lawsuits in New York, National Rifle Association of America sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 21-30085) on Jan. 15, 2021. Affiliate Sea Girt LLC simultaneously sought Chapter 11 protection (Case No. 21-30080). The NRA was estimated to have assets and liabilities of $100 million to $500 million as of the bankruptcy filing. Judge Harlin Dewayne Hale oversees the cases. The Debtors tapped Neligan LLP and Garman Turner Gordon LLP as their bankruptcy counsel, and Brewer, Attorneys & Counselors as their special counsel. The U.S. Trustee for Region 6 appointed an official committee of unsecured creditors on Feb. 4, 2021. The committee is represented by Norton Rose Fulbright US, LLP. NATIONAL RIFLE: Bonds Ellis Represents Judge Journey, Rocky ----------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Bonds Ellis Eppich Schafer Jones LLP submitted a verified statement to disclose that it is representing Honorable Phillip Journey and Roscoe B. Marshall, Jr. in the Chapter 11 cases of National Rifle Association of America and Sea Girt LLC. As of March 15, 2021, the creditors and their disclosable economic interests are: Judge Journey * Nature of Claim: Unsecured Claim; Membership Interest; and Contingent D&O Liability * Total Estimated Liability: General Unsecured Claim of $4,193.63 per Debtors' Amended Schedule E/F; Unknown Rocky Marshall * Nature of Claim: Membership Interest; and Contingent D&O Liability * Total Estimated Liability: Unknown Each of the parties listed in the foregoing chart has consented to this multiple representation by Counsel in the above-captioned matter. Counsel reserves the right to amend this Verified Statement in accordance with the requirements set forth in Bankruptcy Rule 2019. Counsel for The Honorable Phillip Journey and Roscoe B. Marshall, Jr. can be reached at: M. Jermaine Watson, Esq. Joshua N. Eppich, Esq. H. Brandon Jones, Esq. Clay M. Taylor, Esq. J. Robertson Clarke, Esq. BONDS ELLIS EPPICH SCHAFER JONES LLP 420 Throckmorton Street, Suite 1000 Fort Worth, TX 76102 Telephone: (817) 405-6900 Facsimile: (817) 405-6902 E-mail: jermaine.watson@bondsellis.com joshua@bondsellis.com brandon@bondsellis.com clay.taylor@bondsellis.com robbie.clarke@bondsellis.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://bit.ly/3qUwlJ4 About the National Rifle Association Founded in 1871 in New York State, the National Rifle Association of America is a gun rights advocacy group. The NRA claims to be the longest-standing civil rights organization and has more than five million members. Seeking to move its domicile and principal place of business to Texas amid lawsuits in New York, National Rifle Association of America sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 21-30085) on Jan. 15, 2021. Affiliate Sea Girt LLC simultaneously sought Chapter 11 protection (Case No. 21-30080). The NRA was estimated to have assets and liabilities of $100 million to $500 million as of the bankruptcy filing. Judge Harlin Dewayne Hale oversees the cases. The Debtors tapped Neligan LLP and Garman Turner Gordon LLP as their bankruptcy counsel, and Brewer, Attorneys & Counselors as their special counsel. The U.S. Trustee for Region 6 appointed an official committee of unsecured creditors on Feb. 4, 2021. The committee is represented by Norton Rose Fulbright US, LLP. NATURALSHRIMP INC: To Preview Plant Operations in Iowa ------------------------------------------------------ NaturalShrimp, Inc. is scheduled to preview the Webster City, IA plant with local officials and Debi Durham, Director of the Iowa Economic Development Authority. An invitation has also been extended to Governor Kim Reynolds. Topics and preview will include the planned stocking of the hatchery shrimp on March 23, 2021 and the development of a seafood processing center at the plant. Gerald Easterling, CEO of NaturalShrimp said, "NaturalShrimp has been working with local elected officials and have had operations underway for approximately 45 days. We are very excited to preview the hatchery tanks and the installation of our EC and Hydrensis equipment. We also look forward to discussing with the elected officials and Director plans to open a seafood processing plant. It is expected that this processing plant will generate significant value-added revenue and create approximately 50 new jobs." William Delgado, CFO of Natural Shrimp added, "We are pleased that our initial investment in the Alder Aqua facility is going well. We continue on our timetable to deliver fresh shrimp to the upper Midwest region. In addition, our recent S-3 filing will be instrumental in paying off our remaining debt and preferred shares. This financing will also include a $10,000,000 expansion at the Texas facility, effectively tripling the size. This equity financing, which is referenced by our June 17, 2020 8K, will allow us additional capital to make future acquisitions as they become available." About Natural Shrimp NaturalShrimp, Inc. is a publicly traded aqua-tech Company, headquartered in Dallas, with production facilities located near San Antonio, Texas. The Company has developed a commercially viable system for growing shrimp in enclosed, salt-water systems, using patented technology to produce fresh, never frozen, naturally grown shrimp, without the use of antibiotics or toxic chemicals. NaturalShrimp systems can be located anywhere in the world to produce gourmet-grade Pacific white shrimp. NaturalShrimp recorded a net loss of $4.81 million for the year ended March 31, 2020, compared to a net loss of $7.21 million for the year ended March 31, 2019. As of Dec. 31, 2020, the Company had $15.39 million in total assets, $9.60 million in total liabilities,$208,333 in series D redeemable convertible preferred stock, and $5.58 million in total stockholders' equity. Turner, Stone & Company, L.L.P., in Dallas, Texas, issued a "going concern" qualification in its report dated June 26, 2020, citing that Company has suffered significant losses from inception and has a significant working capital deficit. These conditions raise substantial doubt about its ability to continue as a going concern. NINE POINT: Files for Chapter 11 With Credit Bid from Lenders ------------------------------------------------------------- Nine Point Energy and its affiliates on Monday, March 15, 2021, filed for Chapter 11 protection in Delaware bankruptcy court with more than $100 million in debt The Debtors have arranged a bankruptcy financing package and a credit bid from its secured lenders. The Debtors owed an aggregate principal amount of $256.9 million, plus approximately $4.3 million in interest under the repetition credit facility. Under the DIP Term Sheet, the DIP Lenders have agreed to (a) consent to the Debtors' use of cash collateral, as well as (b) provide "new money" loans under the DIP Facility. The new money delayed-draw term loan facility consists of (A) $13 million available upon entry of the Interim Order (the "Interim Amount"), (B) an additional $5 million available upon entry of the Final Order (the "Final Amount"), and (ii) a roll-up (the "Roll-Up Term Loans") of (A) $39 million of Prepetition Obligations (but excluding Prepetition Secured Swap Obligations) on an interim basis (the "Interim Roll-Up Amount"), (B) $15 million of Prepetition Obligations on a final basis (the "Final Roll-Up Amount," and together with the Interim Roll-Up Amount, the "Roll-Up Amount"), and (C) approximately $16.1 million of Prepetition Secured Swap Obligations on an interim basis. The Stalking Horse Term Sheet provides that the Company will pursue a sale of substantially all of its assets under section 363 of the Bankruptcy Code. The Prepetition Secured Lenders and the DIP Lenders have committed to serve through a newly formed acquisition vehicle and/or one or more of its designee(s)) as a Stalking Horse Bidder pursuant to the terms outlined in the Stalking Horse Term Sheet, which terms will be further documented in an asset purchase agreement that the Company and Stalking Horse Bidder will enter into in accordance with the terms of the Stalking Horse Term Sheet. The aggregate consideration for the Purchased Assets will consist of (i) a credit bid, on a dollar-for-dollar basis, pursuant to Section 363(k) of the Bankruptcy Code, in an aggregate amount not less than $250 million comprised of (A) the full amount of the DIP Obligations outstanding as of the Closing Date, and (B) a portion of up to 100% of the Prepetition Obligations (the Purchase Price set forth in this (i), collectively, the "Credit Bid Amount"); (ii) assumption of the Assumed Liabilities; (iii) any liens or claims granted by the Debtors to the Prepetition Agent as adequate protection for any diminution in value of the interests of the Prepetition Lenders; and (iv) Excluded Cash. The Debtors' chief objective in commencing the Chapter 11 cases is to pursue a value-maximizing sale transaction that can optimally position the Debtors' business for long-term success while also preserving the Debtors' employees' job. The Debtors believe that the proposed sale provides the Debtors with the best presently available opportunity to accomplish these goals and ensure their operations are preserved as a going concern. In addition, the Debtors believe that the liquidity guaranteed under the DIP Term Sheet during the Chapter 11 cases will ensure that the Debtors preserve value during the chapter 11 process and that the Debtors' operations are best positioned to capitalize on opportunities for profitable growth following emergence. Further, the Debtors believe that the sale process contemplated by the Stalking Horse Term Sheet will ensure there is adequate opportunity to determine if a higher or otherwise better alternative to the contemplated Stalking Horse Bid is available. The Debtors, with the assistance of Perella Weinberg Partners LP ("PWP") and Tudor, Pickering, Holt & Co. ("TPH"), reached out to other potential financial and strategic parties to solicit interest in, among other things, an acquisition of the Debtors. The Debtors and their advisors will continue to actively engage with potential bidders to ensure that the sale process is broad and as competitive as possible. About Nine Point Nine Point Energy is an independent oil and gas exploration and production ("E&P") company focused on the safe, efficient development of unconventional shale oil and natural gas resources in the Williston Basin of North Dakota and Montana. It holds interests in, and operates, approximately 198 wells in the Williston Basin, where Nine Point has operated since 2011. Its holdings cover approximately 54,917 net acres, which interests are primarily located in McKenzie and Williams Counties, North Dakota. Nine Point also focuses on the strategic acquisitions of oil and natural gas resources. The Debtors' headquarters are located in Denver, Colorado, with a field office in Alexander, North Dakota. On March 15, 2021, Nine Point Energy Holdings Inc. and its 3 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10570). Nine Point Energy estimated more than $100 million in both assets and liabilities as of the bankruptcy filing. LATHAM & WATKINS LLP and YOUNG CONAWAY STARGATT & TAYLOR, LLP, are serving as the Debtors' bankruptcy counsel. ALIXPARTNERS, LLP, is the financial advisor, and PERELLA WEINBERG PARTNERS LP is the Debtors' investment banker. LYONS, BENENSON & COMPANY INC. is the compensation consultant. STRETTO is the claims agent. NORTHERN OIL: Widens Net Loss to $906 Million in 2020 ----------------------------------------------------- Northern Oil and Gas, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $906.04 million on $552.21 million of total revenues for the year ended Dec. 31, 2020, compared to a net loss of $76.32 million on $472.40 million of total revenues for the year ended Dec. 31, 2019. "Northern enters 2021 in an enviable position," commented Nick O'Grady, Northern's chief executive officer. "The fourth quarter showed the durability of our strategy, the cash generating power of our asset base, and our commitment to focusing on return on capital employed. The flexibility and dynamic nature of our non-operated business model have never been so clear. We enter 2021 as a multi-basin company, dedicated to the allocation of capital into the highest return projects, with a reinvigorated capital structure that should provide for growth opportunities and a clear path to our ultimate goal: to responsibly return capital to shareholders." As of Dec. 31, 2020, the Company had $872.09 million in total assets, $1.09 billion in total liabilities, and a total stockholders' deficit of $223.30 million. Fourth quarter, adjusted net income was $35.7 million or $0.64 per diluted share, up from $21.5 million or $0.50 per diluted share in the prior year. Fourth quarter GAAP net loss was $146.2 million or $3.21 per diluted share. Adjusted EBITDA in the fourth quarter was $94.3 million. Lease operating costs were $28.2 million in the fourth quarter of 2020, or $8.58 per Boe, down 5% on a per unit basis compared to the third quarter. Fourth quarter general and administrative costs totaled $4.4 million, which includes non-cash stock-based compensation. Cash G&A costs totaled $3.4 million or $1.04 per Boe in the fourth quarter, down 25% on a per unit basis compared to the third quarter. Capital spending for the fourth quarter was $48.9 million, made up of $17.9 million of organic drilling and completion capital and $31.0 million of total acquisition spending and other items, inclusive of ground game D&C spending. Northern had 5.9 net wells turned online in the fourth quarter. Wells in process totaled 28.1 net wells as of Dec. 31, 2020. On the ground game acquisition front, Northern closed on 11 transactions during the fourth quarter totaling 4.6 net wells, 663 net mineral acres and 373 net royalty acres (standardized to a 1/8 royalty interest). As of Dec. 31, 2020, Northern had $1.8 million in cash and $532.0 million of borrowings outstanding on its revolving credit facility. Northern had total liquidity of $129.8 million as of Dec. 31, 2020, consisting of cash and borrowing availability under the revolving credit facility. On Jan. 4, 2021, Northern retired $65 million, or 50% of its VEN Bakken Note. In February 2021, Northern strengthened its balance sheet through common equity and debt transactions. Northern issued 14.4 million shares of common equity for gross proceeds of $140.2 million. Northern also issued $550 million of 8.125% Senior Unsecured Notes due 2028. With the net proceeds from these transactions, Northern retired the remaining $65 million of its VEN Bakken Note and retired $272.1 million, or 95% of its remaining Senior Secured Notes due 2023 on Feb. 18, 2021. Northern intends to call or purchase the remaining 2023 Notes on or before May 15, 2021. Northern used the remainder of the proceeds to retire debt under its revolving credit facility and for cash on hand. As of March 11, 2021, Northern had $287.0 million of borrowings outstanding on its revolving credit facility, leaving $373.0 million of borrowing availability. Northern additionally has $15.7 million Senior Secured Notes due 2023 that remain outstanding, and $550 million of newly issued Senior Unsecured Notes due 2028. In April 2021, upon closing of the Reliance acquisition, Northern will fund the unadjusted cash purchase price of $126.4 million, less the $17.5 million deposit previously paid. The cash purchase price will be subject to typical closing adjustments, including an expected reduction for the net cash flows already received by Reliance from the properties since the effective date. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1104485/000110448521000026/nog-20201231.htm About Northern Oil Northern Oil and Gas, Inc. -- http://www.northernoil.com-- is an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties, primarily in the Bakken and Three Forks formations within the Williston Basin in North Dakota and Montana. OBALON THERAPEUTICS: Incurs $12.3 Million Net Loss in 2020 ---------------------------------------------------------- Obalon Therapeutics, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $12.33 million on $1.59 million of total revenue for the year ended Dec. 31, 2020, compared to a net loss of $23.67 million on $3.28 million of total revenue for the year ended Dec. 31, 2019. Net loss per share for the full year of 2020 was $1.59, compared to $5.03 for the full year of 2019. Cost of revenue was $1.0 million for the full year of 2020, down from $3.0 million for the full year of 2019. Gross profit for the full year of 2020 was $0.6 million compared to $0.3 million for the full year of 2019. Research and Development expense for the full year of 2020 totaled $2.5 million, down from $6.9 million for the full year of 2019. Selling, general and administrative expense decreased to $8.8 million for the full year of 2020, compared to $16.7 million for the full year of 2019. Operating loss for the full year of 2020 was $12.0 million, down from a loss of $23.2 million for the full year of 2019. As of Dec. 31, 2020, the Company had $10.61 million in total assets, $5.95 million in total liabilities, and $4.66 million in total stockholders' equity. Financial results for the fourth quarter of 2020 Revenue for the fourth quarter of 2020 was $0.1 million, compared to $0.8 million for the fourth quarter of 2019, with the decrease primarily due to the suspension of operations in the second quarter of 2020. Net loss for the fourth quarter of 2020 was $1.3 million, compared to $4.9 million for the fourth quarter of 2019. Net loss per share for the fourth quarter of 2020 was $0.17, compared to $0.64 for the fourth quarter of 2019. Cost of revenue was $0 for the fourth quarter of 2020, down from $0.6 million for the fourth quarter of 2019. Gross profit for the fourth quarter of 2020 was $0.1 million compared to $0.2 million for the fourth quarter of 2019. Research and development expense for the fourth quarter of 2020 totaled $0.2 million, down from $1.5 million for the fourth quarter of 2019. Selling, general and administrative expense decreased to $1.2 million for the fourth quarter of 2020, compared to $3.6 million for the fourth quarter of 2019. Operating loss for the fourth quarter of 2020 was $1.4 million, down from a loss of $5.0 million for the fourth quarter of 2019. As of Dec. 31, 2020, the Company had cash and cash equivalents of $3.9 million and $0.4 million of debt related to its Payroll Protection Program loan. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/Archives/edgar/data/1427570/000155837021002923/obln-20201231x10k.htm About Obalon Therapeutics, Inc. Obalon Therapeutics, Inc. (NASDAQ:OBLN) -- http://www.obalon.com-- is a San Diego-based company focused on developing and commercializing novel technologies for weight loss. OCCIDENTAL PETROLEUM: S&P Alters Outlook to Stable, Affirms BB- ICR ------------------------------------------------------------------- S&P Global Ratings revised its outlook on Occidental Petroleum Corp. (OXY) to stable from negative and affirmed all of its ratings on the company, including its 'BB-' issuer credit and unsecured issue-level ratings. S&P's '3' (50%-70%; rounded estimate: 50%) recovery rating on the unsecured debt remains unchanged. S&P said, "We expect improved financial leverage metrics over the next two years. We revised our outlook on OXY to stable primarily due to our forecast for an improvement in its leverage based on our new oil and gas price assumptions in addition to other factors, such as its lower cost structure and near-term debt maturity schedule. We currently expect average FFO to debt to be in the 12%-15% range while its debt to EBITDA averages between 5.0x and 5.5x. These metrics compare favorably with our prior estimates and are supported by our view that OXY's operations are well positioned to capitalize on present commodity prices. While the company's leverage remains elevated for the current rating, we believe it will focus on using its excess cash flows and proceeds from potential asset sales for debt repayment in the near term to repair its balance sheet prior to increasing its shareholder returns. However, given that our forecast assumes the price for WTI will decline to $50/bbl in 2023, OXY's financial leverage may rise if it fails to deliver on its asset sale targets or becomes more aggressive with its capital expenditure or shareholder distributions. "Free cash flow and asset sales could fuel further debt reduction. Aside from our expectation for commodity price-related deleveraging, OXY has delivered on its promise to reduce costs following its acquisition of Anadarko, which is reflected in approximately $2.3 billion of combined annualized overhead and operating cost savings in 2020. We also anticipate its $2.9 billion capital budget for 2021 will enable it to maintain relatively flat production while potentially generating several billion dollars of free cash flow, which--along with proceeds from its divestitures--will likely provide it with opportunities to reduce its debt. Management confirmed that the company still intends to sell $2 billion-$3 billion of assets this year even though market conditions have improved and we believe these sales would most likely include a portion of its stake in Western Midstream Partners L.P. (WES) and its Ghana assets, which it continues to hold for sale." Moreover, given the recovery in the price of its common stock, the company could receive incremental proceeds if certain warrants that are currently in-the-money are exercised. Diminished near-term debt maturity schedule lessens credit risk. OXY repaid $2.4 billion of debt last year and refinanced $7 billion of near-term debt maturities into 2025 and beyond. Although the new notes were issued at higher interest rates than the company has paid historically, it has reduced its near-term debt obligations to a very manageable $400 million this year, about $2 billion in 2022, and roughly $950 million in 2023, which is an improvement from the $12 billion-plus near-term burden it carried around this time in 2020. OXY's liquidity remains solid as well, with an undrawn $5 billion revolving credit facility supplemented by $2 billion of unrestricted cash as of year-end 2020, plus incremental liquidity from its new $400 million receivable securitization facility. S&P said, "The stable outlook on OXY reflects our expectation that it will focus on using its near-term excess cash flows for debt repayment, which supports our forecast for improving financial measures. We currently expect the company's FFO to debt to average in the 12%-15% range while its debt to EBITDA averages between 5.0x and 5.5x over the next two years based on our latest oil and gas price forecast. In addition, we believe further improvements are likely if OXY is able to meet its divestiture targets." S&P could lower its rating on OXY if: -- Its adjusted debt to EBITDA increases and is sustained well above 6.0x. This could occur if oil and gas prices retreat and the company does not meet our cash flow expectations; or -- Contrary to S&P's expectations, it comes to believe OXY is overly reliant on the capital markets, aggressively spends capital, or favors shareholder returns over debt reduction. S&P said, "We could raise our rating on OXY if its financial metrics improve relative to our base-case scenario such that its average FFO to debt nears 20% while its debt to EBITDA approaches 4x on a sustained basis. This would most likely occur if commodity prices increase or the company achieves material debt reduction beyond our current expectations while maintaining at least adequate liquidity and we see a plausible path toward further deleveraging." OCEAN AVENUE: Case Summary & 7 Unsecured Creditors -------------------------------------------------- Debtor: Ocean Avenue Sports Bar and Grill Enterprises, LLC 123 San Marco Avenue Saint Augustine, FL 32084 Business Description: Ocean Avenue Sports Bar and Grill is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: March 17, 2021 Court: United States Bankruptcy Court Middle District of Florida Case No.: 21-00638 Debtor's Counsel: Robert D. Wilcox, Esq. WILCOX LAW FIRM 1301 Riverplace Blvd., Suite 800 Jacksonville, FL 32207 Tel: 904-405-1250 E-mail: rw@wlflaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Julie Lazecki, manager. A copy of the petition containing, among other items, a list of the Debtor's seven unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LXCZ2LI/Ocean_Avenue_Sports_Bar_and_Grill__flmbke-21-00638__0001.0.pdf?mcid=tGE4TAMA PELICAN FAMILY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Pelican Family Medicine, P.A. 5429 Wrightsville Avenue Wilmington, NC 28403 Business Description: Pelican Family Medicine, P.A. is a family practice physician in Wilmington, North Carolina. Chapter 11 Petition Date: March 15, 2021 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 21-00582 Debtor's Counsel: Algernon L. Butler, III, Esq. BUTLER & BUTLER, LLP 111 N. 5th Avenue PO Box 38 Wilmington, NC 28401 Tel: 910-762-1908 Fax: 910-762-9441 E-mail: albutleriii@butlerbutler.com Total Assets: $242,677 Total Liabilities: $1,545,287 The petition was signed by Mark Thomas Armitage, president. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors, is available at PacerMonitor.com at. https://www.pacermonitor.com/view/2RJNU6A/Pelican_Family_Medicine_PA__ncebke-21-00582__0001.0.pdf?mcid=tGE4TAMA PHASE III BUILDING: Gets OK to Hire Jason A. Burgess as Counsel --------------------------------------------------------------- Phase III Building Supplies, Inc., received approval from the U.S. Bankruptcy Court for the Northern District of Florida to hire The Law Offices of Jason A. Burgess, LLC as its legal counsel. The firm's services will include: a. advising the Debtor regarding its powers and duties and the continued management of its business; b. advising the Debtor regarding its responsibilities in complying with the U.S. trustee's operating guidelines and reporting requirements and with the local rules of the court; c. preparing legal documents including a plan of reorganization; d. protecting the interest of the Debtor in all matters pending before the court; and e. representing the Debtor in negotiations with its creditors and in the preparation of its disclosure statement and plan of reorganization. The firm will be paid at these rates: Jason Burgess, Esq. $350 per hour Associate $225 per hour Paralegal $75 per hour The Law Offices of Jason A. Burgess agreed to a minimum fee of $6,738 for its representation of the Debtor. Meanwhile, the firm paid $1,738 on behalf of the Debtor for the filing fee. Jason Burgess, Esq., disclosed in a court filing that he does not represent any interest adverse to the Debtor and its bankruptcy estate. Mr. Burgess can be reached at: Jason A. Burgess, Esq. The Law Offices of Jason A. Burgess, LLC 1855 Mayport Road Atlantic Beach, FL 32233 Phone: (904) 372-4791 Fax: (904) 372-4994 Email: jason@jasonAburgess.com About Phase III Building Supplies Phase III Building Supplies, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 21-10023) on Feb. 11, 2021. At the time of the filing, the Debtor disclosed assets of between $100,001 and $500,000 and liabilities of the same range. Judge Karen K. Specie oversees the Debtor's case. The Debtor is represented by The Law Offices of Jason A. Burgess, LLC. PHI GROUP: Incurs $2.9 Million Net Loss in Fiscal 2019 ------------------------------------------------------ PHI Group, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $2.93 million on zero revenue for the year ended June 30, 2019, compared to a net loss of $2.03 million on $1.67 million of total revenues for the year ended June 30, 2018. As of June 30, 2020, the Company had $1.08 million in total assets, $7.08 million in total liabilities, and a total stockholders' deficit of $6 million. M.S. Madhava Rao, Chartered Accountant, in Bangalore, India, issued a "going concern" qualification in its report dated March 10, 2021, citing that the Company has incurred losses since inception, has accumulated a significant deficit, has negative cash flows from operations, and currently has no revenues. These factors raise substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://www.sec.gov/Archives/edgar/data/704172/000149315221005812/form10-k.htm About PHI Group PHI Group -- http://www.phiglobal.com-- is primarily engaged in the operations of PHILUX Global Funds, SCA, SICAV-RAIF, a "Reserved Alternative Investment Fund" under the laws of Luxembourg, and the development of the Asia Diamond Exchange in Vietnam. Besides, the Company provides corporate finance services, including merger and acquisition advisory and consulting services for client companies through its wholly owned subsidiary PHILUX Capital Advisors, Inc. (formerly PHI Capital Holdings, Inc.) (www.philuxcap.com) and invests in selective industries as well as special situations that may potentially create significant long-term value for shareholders. PHILUX Global Funds will include a number of sub-funds for investment in agriculture, renewable energy, real estate, infrastructure, and the Asia Diamond Exchange in Vietnam. PURDUE PHARMA: State AGs Criticize Chapter 11 Plan -------------------------------------------------- Law360 reports that oxyContin maker Purdue Pharma has filed its long-awaited Chapter 11 plan with a New York bankruptcy court under which its former owners have agreed to up their contributions to an opioid abatement trust fund to almost $4.3 billion, drawing immediate criticism from several state attorneys general that the plan still falls short. OxyContin maker Purdue Pharma has filed its Chapter 11 bankruptcy plan in New York, saying Tuesday, March 16, 2021, it would provide over $10 billion in value to mitigate the damages of the opioid crisis. About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell LLP and Dechert LLP as legal counsel; PJT Partners as investment banker; AlixPartners as financial advisor; and Prime Clerk LLC as claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in Debtors' bankruptcy cases. David M. Klauder, Esq., was appointed as fee examiner. The fee examiner is represented by Bielli & Klauder, LLC. PURDUE PHARMA: Wants to Unload Opioid Claims in $10 Bil. Plan ------------------------------------------------------------- Jeremy Hill and Jef Feeley of Bloomberg Law report that Purdue Pharma LP has floated a settlement plan calling for members of the billionaire Sackler family to pay more than $4.2 billion to help resolve the thousands of lawsuits that drove the maker of OxyContin opioid painkillers into bankruptcy. Court papers filed late Monday, March 15, 2021, by Purdue detailed a Chapter 11 reorganization plan calling for the drugmaker to hand over the company's assets to trusts for the benefit of states, cities and counties suing to recoup billions spent dealing with the U.S. opioid crisis. About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell LLP and Dechert LLP as legal counsel; PJT Partners as investment banker; AlixPartners as financial advisor; and Prime Clerk LLC as claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in Debtors' bankruptcy cases. David M. Klauder, Esq., was appointed as fee examiner. The fee examiner is represented by Bielli & Klauder, LLC. QUOTIENT LIMITED: Says Liquidation of Funds Won't Affect Operations ------------------------------------------------------------------- Quotient Limited was advised by a representative of Credit Suisse that Credit Suisse Asset Management has suspended redemptions from two funds managed by CSAM in which the Company had invested an aggregate of approximately $110.35 million. The funds are the Credit Suisse Supply Chain Finance Investment Grade Fund and the Credit Suisse (Lux) Supply Chain Finance Fund. Each fund holds short term credit obligations of various obligors. According to a press release issued by CSAM, redemptions in the funds were suspended because "[a] certain part of the Subfunds' assets is currently subject to considerable uncertainties with respect to their accurate valuation." CSAM subsequently began a liquidation of the funds. Pursuant to the liquidation, the Company has already received cash distributions of approximately $57 million, bringing the Company's cash on hand to approximately $67 million as of March 11, 2021. Based on information provided by Credit Suisse, the Company expects to receive further substantial cash distributions from the funds in the next several weeks. Credit Suisse has advised that the credit assets held by the funds are covered by insurance that potentially will be available to cover losses the funds would incur if any of the obligors on the funds' credit assets were to default. The Company does not know if the funds will incur losses (net of insurance) on the credit assets held by the funds. The Company believes, and has advised Credit Suisse, that any such losses should be borne by Credit Suisse (and not by the Company or other fund investors). The Company does not expect these developments will materially affect its operations or its progress toward the planned commercialization of its MosaiQ products. About Quotient Limited Penicuik, United Kingdom-based Quotient Limited is a commercial-stage diagnostics company committed to reducing healthcare costs and improving patient care through the provision of innovative tests within established markets. With an initial focus on blood grouping and serological disease screening, Quotient is developing its proprietary MosaiQTM technology platform to offer a breadth of tests that is unmatched by existing commercially available transfusion diagnostic instrument platforms. The Company's operations are based in Edinburgh, Scotland; Eysins, Switzerland and Newtown, Pennsylvania. Quotient Limited reported a net loss of $102.77 million for the year ended March 31, 2020, compared to a net loss of $105.4 million for the year ended March 31, 2019. As of Dec. 31, 2020, the Company had $245.73 million in total assets, $238.06 million in total liabilities, and $7.66 million in total shareholders' equity. Ernst & Young LLP, in Belfast, United Kingdom, the Company's auditor since 2007, issued a "going concern" qualification in its report dated June 12, 2020, citing that the Company is currently involved in an arbitration dispute with a customer and an adverse outcome of this dispute in addition to the Company's expenditure plans over the next 12 months could result in net cash outflows over the next 12 months exceeding the Company's existing available cash and short-term investment balances, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. REGENT UNIVERSITY: Moody's Hikes $84M Revenue Bonds to Ba2 ---------------------------------------------------------- Moody's Investors Service has upgraded Regent University's (VA) approximately $84 million of outstanding revenue bonds to Ba2 from Ba3. The Educational Facilities Revenue Bonds, Series 2006 were issued through the Virginia College Building Authority. The outlook is stable. RATINGS RATIONALE The rating upgrade to Ba2 from Ba3 incorporates Regent's continued positive operating performance, with no reliance on endowment for the third consecutive year, in addition to the January 2021 pay off of its $33.5 million operating line of credit that reduced debt by nearly 30%, eliminated line of credit renewal risk, and released cash and investment collateral. Ongoing momentum with positive operating cash flow margins will contribute to growth in cash and investments, adding longer term financial cushion. The fiscal 2020 operating cash flow margin of 14.7% covered debt service by 3.5x. Fiscal 2021 operations are on track for similar performance despite impacts from the coronavirus pandemic due primarily to conservative revenue assumptions. With a largely online student body - 83% of its 10,490 headcount enrollment - Regent has already invested in online delivery modalities and, further, has more modest exposure to auxiliary enterprises (average 6% over fiscal 2016-20), which have been a source of revenue disruption at many universities. The Ba2 rating further acknowledges the university's high reliance on student charges and moderate liquidity. Regent's primarily online student market remains very vulnerable to the rising number of online competitors. Further, while there was a release of investments collateralizing the line of credit, pro forma spendable cash and investments to debt and operations remain modest at 0.5x and 0.3x, respectively, with 131 days cash on hand. Fair strategic positioning reflects Regent's competitive operating environment, limited donor support, and the consideration of key person risk under Moody's governance taxonomy; however, senior leadership team changes over the last three years that have stewarded positive operations following over a decade of shortfalls indicate improved governance and will build credibility if sustained. RATING OUTLOOK The stable outlook reflects Moody's expectation that Regent will sustain its fiscal discipline, with positive cash flow adding to financial reserves. The outlook also incorporates Moody's expectations that management will continue to control expenses, with little to no use of endowment or additional debt, while implementing its strategic plan to grow enrollment. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING -- Demonstrated ability to sustain to operating revenue growth and strong operating performance -- Ongoing gains in total cash and investments including unrestricted liquidity FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING -- Return to weak operating performance -- Reduction of liquidity relative to debt and operations -- Evidence of building student market pressures, reflected in declining enrollment or net tuition revenue LEGAL SECURITY The Series 2006 revenue bonds have a secured interest in Unrestricted University Revenues. The Loan Agreement incorporates limits on additional parity indebtedness. Under these limits pro forma debt should be less than total cash and investments and less than 2.0x expendable financial resources. There is a cash funded debt service reserve fund. PROFILE Regent University is a private university founded in 1978 by Pat Robertson. Regent offers associates, bachelors, masters, and doctoral degrees, including a law school, at its campus in Virginia Beach and online. The university generated operating revenue of $126 million in fiscal 2020 and enrolled over 10,490 students on a headcount basis and 7,907 full-time equivalent (FTE) students in fall 2020. METHODOLOGY The principal methodology used in this rating was Higher Education published in May 2019. RETIRED-N-FIT LLC: Files for Chapter 11 Bankruptcy -------------------------------------------------- Retired-N-Fit, LLC, doing business as Beyond Fifty Fitness, has filed for Chapter 11 bankruptcy protection. On March 12, 2021, filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10561). Retired-N-Fit, LLC -- http://www.beyondfiftyde.com/-- runs a Delaware fitness studio for adults ages 50 and beyond. It estimated $50,000 to $100,000 in assets and $100,000 to $500,0000 in liabilities as of the bankruptcy filing. RVT INC: Unsecureds to Get 100%; April 20 Status Conference Set --------------------------------------------------------------- RVT, Inc. submitted an Amended Disclosure Statement accompanying Chapter 11 Plan dated March 11, 2021. The Bankruptcy Court has scheduled April 20, 2021, at 2:00 p.m. in Courtroom 6C in 411 West Fourth Street, Santa Ana CA 92701 as the hearing/status conference. The Amended Disclosure Statement does not alter the proposed treatment for creditors: * Class 1 and 2 consist of claims secured by Collateral which generally are entitled to be paid in full, over time, with interest. Class 1 is reserved for claims secured only by real estate that is an individual Debtor's principal residence. Class 2 contains all other secured claims. * Class 4 consists of General Unsecured Claims which will receive an estimated percentage of 100% of their claims. The Debtor believes the Plan is feasible because, both on the Effective Date and for the duration of the Plan, the proponent estimates that Debtor will have sufficient cash to make all distributions. A full-text copy of the Amended Disclosure Statement dated March 11, 2021, is available at https://bit.ly/3qPgKdO from PacerMonitor.com at no charge. Attorney for RVT, Inc.: Larry Fieselman, Esq. OAKTREE LAW 10900 183rd Street, Suite 270 Cerritos CA90703 Tel: (562) 741-3943 Fax: (562) 264-1496 About RVT Inc. Based in Fontana, California, RVT Inc. filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 19-17552) on Aug. 28, 2019, listing under $1 million in both assets and liabilities. The Hon. Mark S. Wallace is the case judge. OAKTREE LAW represents the Debtor. SEADRILL LTD: Removes 162 Workers From Gulf of Mexico ----------------------------------------------------- Jason Jiang of Splash reports that John Fredriksen's offshore driller Seadrill is going to lay off 162 workers from its operations in the Gulf of Mexico. The company said the layoff was due to it being unable to secure a new contract for its drillship West Neptune. The layoffs have begun this month and are expected to be completed by the end of May 2021. According to a letter Seadrill sent to the Texas Workforce Commission, the West Neptune will soon complete operations under its current contract and is anticipated to be cold stacked. Seadrill again filed for chapter 11 in the Southern District of Texas in February 2021 less than three years after it emerged from a restructuring under Chapter 11. 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 said it is in talks with lenders on a restructuring of its $5.7 billion bank debt. Seadrill Partners LLC, a limited liability company formed by deep-water drilling contractor Seadrill Ltd. to own, operate and acquire offshore drilling rigs, along with its affiliates, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-35740) on Dec. 1, 2020, after its parent company swept one of its bank accounts to pay disputed management fees. Mohsin Y. Meghji, managing partner at M3 Partners, acting as the Company's Chief Restructuring Officer, signed the petitions. On Feb. 7, 2021, Seadrill GCC Operations Ltd., Asia Offshore Drilling Limited, Asia Offshore Rig 1 Limited, Asia Offshore Rig 2 Limited, and Asia Offshore Rig 3 Limited sought Chapter 11 protection. Seadrill GCC estimated $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Additionally, on February 10, 2021, Seadrill Limited and 114 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code with the Court. The lead case is In re Seadrill Limited (Bankr. S.D. Tex. Case No. 21-30427). Seadrill Limited disclosed $7.291 billion in assets against $7.193 billion in liabilities as of the bankruptcy filing. In the new Chapter 11 cases, Kirkland & Ellis LLP is counsel for the Debtors. HoulihanLokey, Inc., is the financial advisor. Alvarez & Marsal North America, LLC, is the restructuring advisor. The law firm of Jackson Walker L.L.P. is co-bankruptcy counsel. The law firm of Slaughter and May is co-corporate counsel. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel. Prime Clerk LLC is the claims agent. SEAVIEW HOMES: Case Summary & 11 Unsecured Creditors ---------------------------------------------------- Debtor: Seaview Homes, LLC 315 NW Coast Street Newport, OR 97365 Business Description: Seaview Homes, LLC is primarily engaged in renting and leasing real estate properties. The company owns seven properties in Newport Oregon having a total current value of $3.44 million. Chapter 11 Petition Date: March 15, 2021 Court: United States Bankruptcy Court District of Oregon Case No.: 21-60452 Judge: Hon. David W. Hercher Debtor's Counsel: Theodore J. Piteo, Esq. MICHAEL D. O'BRIEN & ASSOCIATES, P.C. 12909 SW 68th Parkway, Suite 160 Portland, OR 97223 Tel: 503-786-3800 Fax: 503-272-7796 E-mail: enc@pdxlegal.com Total Assets: $3,686,248 Total Liabilities: $2,362,592 The petition was signed by Susan Armstrong, member. A full-text copy of the petition containing, among other items, a list of the Debtor's 11 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/JPDF5GA/Seaview_Homes_LLC__orbke-21-60452__0001.0.pdf?mcid=tGE4TAMA SHRUNGI LLC: Gets OK to Hire Joyce W. Lindauer as Legal Counsel --------------------------------------------------------------- Shrungi, LLC, received approval from the U.S. Bankruptcy Court for the Eastern District of Texas to hire Joyce W. Lindauer Attorney, PLLC as its legal counsel. The Debtor requires legal counsel to prepare a plan of reorganization and provide other services in connection with its Chapter 11 case. The firm will be paid at these rates: Joyce Lindauer $395 per hour Kerry Alleyne $250 per hour Guy Holman $205 per hour Paralegals/Legal Assistants $65 to $125 per hour The firm received a retainer of $6,750, which included the filing fee of $1,738. Joyce Lindauer, Esq., disclosed in a court filing that she and the firm's members and contract attorneys are "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Joyce W. Lindauer, Esq. Kerry S. Alleyne, Esq. Guy H. Holman, Esq. Joyce W. Lindauer Attorney, PLLC 1412 Main Street, Suite 500 Dallas, TX 75202 Telephone: (972) 503-4033 Facsimile: (972) 503-4034 Email: joyce@joycelindauer.com About Shrungi LLC Shrungi, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Texas Case No. 21-40166) on Feb. 1, 2021. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. Judge Brenda T. Rhoades oversees the Debtor's case. The Debtor is represented by Joyce W. Lindauer Attorney, PLLC. SKLAR EXPLORATION: Debtors, Family Dispute Committee Report ----------------------------------------------------------- Sklar Exploration Company, LLC and Sklarco, LLC, on March 11, 2021 submitted an Amended Disclosure Statement to accompany their Amended and Restated Joint Plan of Reorganization dated December 18, 2020. The Committee investigated the Debtors' transactions with Howard Sklar and certain family trusts (the "Related Parties"). This investigation involved the examinations of Howard Sklar, individually, and James Katchadurian, as the representative of the Debtors, and the review of over twenty-one gigabytes of data produced by the Debtors. At the request of the Bankruptcy Court, the Committee prepared and filed its Report Summarizing Investigation Relating to Debtors' Transfers to Howard Sklar and Related Family Trusts (the "Committee Report"). The Committee Report determined that during the four-year period immediately preceding the Petition Date, the Debtors transferred to Related Parties approximately $19.5 million. The Related Parties dispute the Committee Report, including allegations, implications, and conclusions drawn in the Committee Report, and maintain that it presents a one-sided, incomplete presentation of the facts. To the extent that the Committee Report serves as a preview of Causes of Action that a creditor trustee or other party may bring against the Related Parties, the Related Parties will contest those Causes of Action and reserve all rights and defenses in connection with any such litigation. The Related Parties are preparing a response to the Committee Report and will file it with the Court. The Committee has expressed objection to the Debtors' separateness and resultant asset ownership classifications. The Debtors believe that such objection(s) are resolved through agreed Plan provisions input following negotiations with the Committee and other parties. The Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Classes 6 and C - Allowed General Unsecured Claims against SEC and Sklarco will receive a beneficial interest in the Creditor Trust on the Effective Date of the Plan, and shall receive distributions of payments made on account of the Creditor Trust Obligation, which amount is not less than $22 million. The Creditor Trust shall also receive the proceeds and/or payments on account of certain assets assigned to the Creditor Trust, as well as certain distributions upon occurrence of a Monetizing Event. These classes are impaired. * All equity interests will be placed in escrow and subject to an escrow agreement and any valid liens until the occurrence of certain events. Class D interests in Sklarco will also receive certain distributions. * All equity interests will be placed in escrow and subject to an escrow agreement and any valid liens. Upon completion of the wind down by SEC, all membership interests will be canceled. A full-text copy of the Amended Disclosure Statement dated March 11, 2021, is available at https://bit.ly/2OHVTfp from PacerMonitor.com at no charge. Counsel to the Debtors: Jeffrey S. Brinen KUTNER BRINEN, P.C. Keri L. Riley 1660 Lincoln St., Suite 1850 Denver, CO 80264 Telephone: 303-832-2400 E-mail: klr@kutnerlaw.com About Sklar Exploration Company Sklar Exploration Company, LLC -- https://sklarexploration.com/ -- is an independent exploration production company owned and managed by Howard F. Sklar. With offices in Boulder, Colo., Shreveport, La., and Brewton, Ala., Sklar owns interests in oil and gas wells located throughout the United States. Its exploration and production activities have historically focused on the hydrocarbon-rich Lower Gulf Coast basins and in the Interior Gulf Coast basins of East Texas, North Louisiana, South Mississippi, South Alabama, and the Florida Panhandle. Sklar Exploration Company and Sklarco, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Lead Case No. 20-12377) on April 1, 2020. At the time of the filing, Sklar Exploration had estimated assets of between $1 million and $10 million and liabilities of between $10 million and $50 million. Sklarco disclosed assets of between $10 million and $50 million and liabilities of the same range. Judge Elizabeth E. Brown oversees the cases. The Debtors tapped Kutner Brinen, P.C., as bankruptcy counsel, and Berg Hill Greenleaf & Ruscitti, LLP and Armbrecht Jackson, LLP as special counsel. The U.S. Trustee for Region 19 appointed a committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The Committee is represented by Munsch Hardt Kopf & Harr, P.C. SOUTHEAST POWERGEN: S&P Affirms 'B' Rating on $480MM Term Loan B ---------------------------------------------------------------- S&P Global Ratings affirmed the 'B' rating on Southeast PowerGen LLC's $480 million term loan B and $57.154 million revolving credit facility. The recovery rating remains '3', reflecting its expectation of meaningful recovery of (50%-70%, rounded estimate: 55%). The stable outlook reflects its view that the project will generate cash flows in line with its base-case forecast and that the minimum debt service coverage ratio (DSCR) of 1.46x will occur during the refinance period. Southeast PowerGen LLC (SEPG) is a project-financed, special-purpose entity owning about 2.2 gigawatts of electric generation capacity from six natural-gas-fired plants in Georgia. An affiliate of Carlyle Power Partners owns 100% of SEPG. SEPG issued a $480 million ($207.4 million outstanding) senior secured term loan in December 2014, and it has a $57.154 million revolving credit facility. Net proceeds supported Carlyle's acquisition of SEPG, repaid existing subsidiary debt, made a distribution to GE Energy Financial Services (a previous co-owner), and funded liquidity reserve accounts. SEPG will repay the issued term loan through minimal mandatory amortization and an annual cash flow sweep that is greater than 75% of excess cash flow or an amount sufficient to meet specific targeted debt balances. The portfolio includes: -- One combined-cycle mid-merit facility: Effingham (510 megawatts [MW]); -- Four combustion-turbine peaking facilities: Monroe (309 MW), Walton (465 MW), Sandersville 1,2,5,6 (300 MW), and Sandersville 3,4,7,8 (300 MW); and -- One cogeneration facility: Mid-Georgia Cogen (300 MW). -- A subsidiary of SEPG, Mackinaw Power LLC (A-/Negative), owns the Monroe and Walton facilities. They are fully contracted through May 2024. SEPG receives distributions from Mackinaw, which has senior secured debt backed by the project's assets. -- Four contracted assets with good operating history provide stable cash flows in the short term. -- Well-maintained assets with useful lives up to 2040. -- Merchant risk at two plants leading to cash flow volatility in an illiquid bilateral market. -- Off-take contracts at the contracted plants expiring during our refinance period, introducing additional recontracting risk. Although SEPG has less leverage compared with peers, a significant amount of the term loan B will be outstanding at debt maturity. The affirmation corrects an analytical error, which changes some scores but not the rating. The affirmation follows a change in the analytical approach to assign ratings to SEPG. This new approach corrects a misapplication of our project finance criteria. The error derives from the fact that our project finance criteria does not fully cover how to assess the subordination of a holding company borrower (SEPG) where there is a mix of encumbered and unencumbered assets—that is, "partial subordination". The application of our analytical framework does not change the rating outcome, but does change some scores. S&P said, "The project's risk profile is now scored slightly less risky as we now take the average of each asset's individual risk profile weighted by its cash contributions to SEPG. Previously the risk profile of the weakest assets established the portfolio's risk profile. The new approach highlights the importance of Mackinaw Power in our forecast. Its peak power generating (or peaker) assets with capacity revenues are slightly less volatile than CCGTs with energy revenues. We expect Mackinaw to contribute more than 50% of SEPG's cash flows after Mackinaw's project finance debt is paid off in October 2023." S&P said, "Our revised refinancing assumption raises coverage levels and improves base-case performance. The DSCR calculation to establish base-case performance stays the same and we refer to it as the HoldCo DSCR. The HoldCo DSCR is essentially the same used in the credit agreement, whereby the numerator is the sum of the distributions of the encumbered subsidiaries and the CFADS of the unencumbered subsidiaries and the denominator is the debt service of SEPG. However, coverage in our forecast is higher because of a change in our refinancing scenario, in which we now assume a 100% cash flow sweep rather than a mortgage-style amortization. This is because it is a much more realistic scenario, as term loan Bs are usually refinanced with the same debt structure. This raises the minimum DSCR to 1.46x from 0.91x in our last publication from January 2020, improving the base-case performance to 'b+' from 'b'. However, coverage is lower than it would have been using the previous forecast, as we have lowered CFADS primarily due to our assumption of lower merchant capacity prices for the Mackinaw Power assets (Monroe and Walton) and higher operating expenses given the historical track record and management's budget. The project's performance in the downside remains in the 'b' category, and thus continues to have no impact on the base case outcome." The analytical approach reflects weaknesses in the project's structure, but partially offset by SEPG's favorable comparison to peers. The analytical framework also contains modifiers and ratings caps. The project receives a negative one notch for subordination risk and a negative one notch for a weakness in the security package. S&P said, "We recognize that distributions from Mackinaw Power are subordinate to operating cost and debt service at that project. We reflect the impact of this subordination by calculating a subordinated DSCR and comparing it to the Holdco DSCR. The subordinated DSCR divides the distributions from Mackinaw Power by its distribution lock-up ratio of 1.2x and subsequently adds those distributions to SEPG's CFADS. The minimum subordinated DSCR is 0.99x, which we assess as 'b'. Given the one-notch difference between the two DSCR ratios, we assign a negative one notch for subordination." The absence of a pledge on the physical assets of the unencumbered subsidiaries to the term loan B lenders in our view does not sufficiently limit additional security to third parties, and we apply a negative one notch to account for this weakness. There are two ratings caps. The first is the rating on Mackinaw Power (A-/Negative) because SEPG partially depends on the distributions from Mackinaw Power to repay the TLB and because Mackinaw can cross-default SEPG. Given the high rating on Mackinaw, there is no impact from this cap. The second is the base-case performance using a consolidated DSCR. The consolidated DSCR takes the CFADS of both the encumbered and unencumbered OpCos as the numerator and the debt service of both SEPG and Mackinaw in the denominator. The min consolidated DSCR of 1.19x results in a cap of 'b'. Because the project stand-alone credit profile (SACP) before any rating caps is also 'b', the consolidated cap does not impact the rating. The notching for security package weakness and partial subordination would result in a preliminary outcome of 'b-'. However, S&P applies a positive notch for comparing favorably with peers because SEPG is much more similar to its 'B', 'B+', and 'BB-' rated peers. There are no 'B-' ratings among the peer set. Sandy Creek Energy Associates and Panda Stonewall, are now in the 'CCC' category. SEPG does not share this level of weakness and it is making cash sweeps. Notably, SEPG's leverage at $94/kW is clearly lower than its peers, which start at $220 and go up to $1,026, helping to lower the project's risks. This results in a final rating of 'B'. S&P said, "We expect Sandersville and Effingham to be sold, with proceeds uses to fully repay the term loan B. A notable development unrelated to the new analytical approach are the announcements in February and March that SEPG would be selling Sandersville and Effingham, respectively. It expects to close both transactions within 60 days, which should be the end of May. Combined, we expect both sales to generate enough proceeds for SEPG to pay off the entire term loan B debt. Thus, we expect to withdraw the rating by end of the second quarter. "The stable outlook reflects our expectation that market conditions will remain as is, resulting in our minimum DSCR, which occurs in 2024 in our refinancing period, below 1.5x. For 2021, we expect coverage below 2.0x. Although two of the power plants within the project portfolio are merchant-exposed, cash flows from the contracted plants will provide support and reduce volatility during the duration of the term loan B. "We could lower the rating if the minimum DSCR in our base-case forecast falls to the middle of 1.0x-1.5x range. We could also lower our rating if the project does not have a viable refinancing plan by mid-2021, although we expect it will pay the debt by then given the announced sale of Sandersville and Effingham. Weaker coverage would most likely be the result of poor operational performance, higher costs than forecast, or an acceleration of major maintenance, or in conjunction with weak future capacity demand for the contracted assets. "We could raise the rating if an improving power market boosts gross margins at Effingham such that the base-case forecast minimum DSCRs move into the lower end of the 1.5x-2.5x range and the project's performance improves in our downside scenario. This could occur if the merchant plants can recontract on favorable terms and stabilize cash flow. Coverage could also improve if more of the principal is repaid than forecast and if costs decrease." STONEMOR PARTNERS: S&P Alters Outlook to Positive, Affirms CCC ICR ------------------------------------------------------------------ S&P Global Ratings affirmed its 'CCC' issuer credit rating on StoneMor Partners L.P. (STON) and revised the outlook to positive from negative, reflecting the possibility that STON could be on track to generate positive free cash flow and EBITDA on a sustained basis. STON has benefited from the COVID-19 pandemic and management turnaround efforts. The COVID-19 pandemic has been a tailwind for STON, as well as the death care industry, because it has resulted in a higher number of deaths, increased cemetery preneed sales, and cost reductions. The company produced about $5.5 million of EBITDA in third-quarter 2020, the first positive EBITDA quarter in a while S&P expects STON to produce positive EBITDA in fourth-quarter 2020 and 2021. Free cash flow also turned positive in third-quarter 2020 (about $2 million). S&P expects the company to produce modestly positive free cash flow in 2021. In addition, STON has executed a series of divestitures and used most of the proceeds to repay debt. S&P said, "We think covenants will remain very tight over the next 12 months. Under the indenture, STON is again subject to an interest coverage covenant test (defined as operating cash flow plus cash interests, divided by cash interests) with quarterly step-ups that started in fourth-quarter 2020. Annual cash interest costs will be about $26 million if the company elects to pay in kind on its payment-in-kind (PIK) notes, or $34 million if the company elects to pay cash on its PIK notes. This would mean the operating cash flow needs to be about $12 million (if PIK interests are elected) or $15 million (if cash interests are elected) for 2021 in order to for STON to meet the interest coverage ratio in fourth-quarter 2021 (stepping up to 1.45x). This compares to $2.5 million in reported operating cash flow in third-quarter 2020. Some of the cost-reduction efforts and working capital management programs could help generate additional cash compared to the third-quarter 2020 amount, but the covenant cushion will likely be very tight over the course of 2021. That said, we think the risk for a traditional payment default (if STON cannot cover its cash interest expense) has reduced significantly versus a year ago, given the roughly $40 million in unrestricted cash on balance sheet. "STON has recently announced its plan to refinance the PIK notes. There are no additional details. Our rating action is not contingent upon the company's ability to execute this refinancing. We will evaluate the credit effects of the potential refinancing after it is completed." Recent history of underperformance and covenant violation remain a concern. STON has underperformed its guidance and violated its covenants on several occasions over the past few years. Revenue has fallen for two years in a row as the company grapples with numerous operational and financial issues. The new management team has implemented many initiatives to boost sales and reduce costs, but it will take time to fully turn around the business. In light of the operational stabilization over the several quarters, management has indicated a willingness to resume growth via acquisitions. While acquisitions are a crucial growth driver for other death care industry peers, STON's acquisition track record is very limited. S&P cautions the risk of overpayment and integration as the company competes with larger acquirers with lower cost of capital. The positive outlook reflects the possibility that the company's recent positive momentum continues, even after pandemic tailwinds dissipate, and that STON generates positive free cash flow and EBITDA on a sustained basis. S&P said, "We could consider revising the outlook to stable or lowering the rating if STON cannot continue its upward momentum such that it comes close to violating its covenants. "We could consider raising the rating if STON executes the refinancing plan with favorable terms (such as lower interest rates and more lenient covenants). Absent a refinancing, we could consider a higher rating if STON continues its positive momentum by delivering positive EBITDA and free cash flow, such that we have higher confidence about its ability to meet its existing covenants." SUMMIT MIDSTREAM: Unit Enters Into $175 Million Credit Facility --------------------------------------------------------------- Summit Permian Transmission, LLC, an unrestricted subsidiary of Summit Midstream Partners, LP that directly owns SMLP's 70% interest in Double E Pipeline, LLC, entered into a credit agreement with ING Capital LLC, Mizuho Bank, Ltd. and MUFG Union Bank, N.A. The Credit Agreement provides Permian Transmission with $175.0 million of senior secured credit facilities, including a $160.0 million Term Loan Facility and a $15.0 million Working Capital Facility. The Credit Facilities can be used to finance Permian Transmission's capital calls associated with its investment in Double E, debt service and other general corporate purposes. The Credit Facilities mature on the earlier of (i) the sixth anniversary of the term conversion date and (ii) seven years after the initial funding date, which occurred on the Closing Date. The term conversion date will occur upon satisfaction of customary conditions, including bringing the Double E project into service under its transportation agreements. During construction of the Double E project, the Credit Facilities will be drawn on an as-needed basis, so long as there are no defaults, events of default, no event that has had a material adverse effect on Permian Transmission or Double E and certification is provided that Permian Transmission has sufficient funds to satisfy the capital call requirements necessary to complete the Double E project and that the Double E project is on schedule. Permian Transmission is required to fund a minimum equity contribution amount of approximately $145.0 million, which was supported at closing with Permian Transmission's existing investment in Double E and a $16.0 million letter of credit issued under SMLP's existing revolving credit facility. The Credit Facilities include customary representations and warranties, affirmative covenants, negative covenants, and events of default with customary cure periods, knowledge qualifiers and materiality qualifiers. Events of default include non-payment of principal and interest, noncompliance with affirmative and negative covenants, inaccuracy of representations and warranties, not achieving term conversion by a specified date, termination of material contracts, revocation of material permits and other customary events of default. Permian Transmission is required to take all actions, within its control, to comply with any such covenants that apply to Double E. Secured interests in the equity and assets of Permian Transmission, including its 70% direct membership interest in Double E, have been granted under the Credit Facilities. Upon term conversion, the Credit Facilities will amortize based on a 10-year sculpted amortization schedule. Permian Transmission will also be required to maintain a 6-month debt service reserve, which can be supported by letters of credit issued under the Working Capital Facility. In addition, the Credit Facilities allow for restricted payments so long as there are no defaults or events of default, Permian Transmission maintains a 1.20x debt service coverage ratio and complies with the debt service reserve requirements and there is no breach of a material contract that would have a material adverse effect on distributions to Permian Transmission. About Summit Midstream Summit Midstream Partners is a value-driven limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in unconventional resource basins, primarily shale formations, in the continental United States. SMLP provides natural gas, crude oil and produced water gathering services pursuant to primarily long-term and fee-based gathering and processing agreements with customers and counterparties in six unconventional resource basins: (i) the Appalachian Basin, which includes the Utica and Marcellus shale formations in Ohio and West Virginia; (ii) the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; (iii) the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; (iv) the Permian Basin, which includes the Bone Spring and Wolfcamp formations in New Mexico; (v) the Fort Worth Basin, which includes the Barnett Shale formation in Texas; and (vi) the Piceance Basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado. SMLP has an equity investment in Double E Pipeline, LLC, which is developing natural gas transmission infrastructure that will provide transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas. SMLP also has an equity investment in Ohio Gathering, which operates extensive natural gas gathering and condensate stabilization infrastructure in the Utica Shale in Ohio. SMLP is headquartered in Houston, Texas. Summit Midstream reported net income of $189.08 million for the year ended Dec. 31, 2020, compared to a net loss of $393.73 million for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $2.49 billion in total assets, $1.48 billion in total liabilities, $89.66 million in mezzanine capital, and $922.89 million in total partners' capital. * * * As reported by the TCR on Jan. 18, 2021, S&P Global Ratings raised its issuer credit rating on Summit Midstream Partners L.P. (SMLP) to 'CCC+' from 'SD' (selective default). S&P said, "It is unlikely we would consider a stable outlook at this time given the heightened refinancing risk for multiple maturities." TAMKO BUILDING: Moody's Affirms B1 CFR & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service affirmed TAMKO Building Products LLC's B1 Corporate Family Rating and B1-PD Probability of Default Rating. Moody's also affirmed the B2 rating on the company's senior secured term loan, which is being increased to $843 million from $593 million. Proceeds from the incremental $250 million add-on to the term loan will be used to pay a dividend to shareholders and related fees and expenses. Finally, Moody's changed the outlook to stable from negative. The change in outlook to stable from negative reflects Moody's expectation that over the next two years TAMKO will benefit from growth in demand for residential roof repair, the main driver of TAMKO's revenue. Revenue growth, respectable profitability and good liquidity further supports the change in outlook to stable. The following ratings/assessments are affected by the action: Ratings Affirmed: Issuer: TAMKO Building Products LLC Corporate Family Rating, Affirmed B1 Probability of Default Rating, Affirmed B1-PD Senior Secured Term Loan B, Affirmed B2 (LGD4) Outlook Actions: Issuer: TAMKO Building Products LLC Outlook, Changed To Stable From Negative RATINGS RATIONALE TAMKO's B1 CFR reflects Moody's expectation that the company will benefit from ongoing demand for residential roofing repair and robust new home construction. Moody's projects that TAMKO will maintain sound credit metrics, such as adjusted debt-to-LTM EBITDA remaining slightly below 4.0x over the next two years and interest coverage, measured as EBITA-to-interest-expense, will be about 5.0x by late 2022. Moody's also forecasts robust operating performance with adjusted EBITA margin sustained in the range of 12% - 17%. However, Moody's believes that the company will distribute more dividends in the future, which will remain a significant constraint to TAMKO's credit profile. Also, TAMKO faces significant competition in all of its markets from other roofing companies, which are bigger and better capitalized, and will make it difficult for TAMKO to meaningfully expand market share. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade: -- Debt-to-LTM EBITDA is sustained below 3.5x -- Preservation of good liquidity -- Maintain conservative financial policies Factors that could lead to a downgrade: -- Debt-to-LTM EBITDA is maintained above 4.5x -- EBITA-to-interest expense is sustained below 2.0x -- The company's liquidity profile deteriorates -- Aggressive dividend initiatives The principal methodology used in these ratings was Manufacturing Methodology published in March 2020. TAMKO Building Products LLC, headquartered in Galena, Kansas, is a manufacturer and marketer of residential roofing products and accessories throughout the United States. The Carlyle Group, through its affiliates, has a significant, non-controlling interest in TAMKO. TAMKO BUILDING: S&P Alters Outlook to Stable, Affirms 'BB-' ICR --------------------------------------------------------------- S&P Global Ratings revised the outlook to stable from negative on TAMKO Building Products LLC, reflecting its expectation that strong earnings momentum will continue in 2021, with credit measures adequate for the rating in spite of higher debt. S&P said, "We are also affirming the 'BB-' issuer credit rating and our 'BB-' rating on TAMKO's first-lien term loan. "The dividend recapitalization reverses the deleveraging, pushing adjusted leverage back to about 4x. We believe the $250 million add-on to the first-lien debt, which will finance a dividend to the owners, illustrates the company's aggressive financial policies. TAMKO has been paying out most of its free cash flow as shareholder distributions. While we view the company as committed to managing its adjusted leverage to about 4x, we believe its overall financial policies will limit further deleveraging. Absent this debt add-on, TAMKO's adjusted leverage would have been between 3x and 4x, helped by solid demand and strong earnings expectations at least for the next few quarters. This would represent high cushion on the credit measures. However, the incremental debt depletes some of this cushion buildup, and we now expect adjusted leverage to be a turn higher at 4x-5x. Therefore, its credit quality is now more susceptible to a potential downturn in business conditions. "We expect TAMKO to sustain the higher revenues from 2020, based on strong volumes and improved pricing. We expect TAMKO's revenues to grow by 2%-3% in 2021, supported by a solid backlog. Higher volumes in 2020 benefited from heightened repair-and-remodel activities during the second half, which we expect is carrying into 2021. We expect demand from residential end markets (repair-and-remodel as well as new construction) will continue to be strong. The active storm season of 2020, particularly in the U.S. Southeast, will drive some replacement needs in 2021. We believe TAMKO is more exposed to demand from storm activity (hail, low-category hurricanes, etc.) and the inherent volatility. It tends to benefit more in years of high storm activity, or disadvantaged by a lack thereof, than some the other roofing producers. We believe this could create some volatility in earnings and cash flow year over year. "Further, similar to its peers, TAMKO implemented mid-single-digit percentage price increases during the first two months of 2021. We believe this, along with implementation of future announced price increases beginning second quarter, should help sustain revenues even if demand slows toward the end of year. They also help match some expected cost increases. Nonetheless, TAMKO has a narrow product profile and is smaller than other players, offset by high exposure to less-cyclical, nondiscretionary roofing-related repair-and-remodel demand. "Rising raw material costs may compress margins, but free cash flow should remain healthy. We expect TAMKO's EBITDA margins to be around 20% over the next 12 months, 200-300 basis points lower than those of 2020. Since asphalt-based shingles account for over 70% of the company's revenues, its major costs (asphalt and freight) are closely tied to crude oil prices. We expect the recent rebound in crude prices to raise input costs, leading to margin compression. We believe the company's ability to pass through material costs will be key to its future earnings and margins." The company expects capital expenditures (capex) of about $60 million-$70 million in 2021, about half of which would be for projects delayed from 2020 and some capacity expansion. Despite heightened capex and working capital buildup, we expect healthy free cash flows at about $60 million-$80 million. S&P said, "The stable outlook on TAMKO reflects our view that higher volumes and favorable pricing will help the company sustain credit measures despite the increased debt load. We expect the company to maintain adjusted debt to EBITDA of 4x-5x." S&P may lower the rating over the next 12 months if: -- EBITDA declines more than 15%, raising adjusted leverage above 5x. Such a scenario could materialize if demand conditions turn unfavorable or rapidly rising costs, such as asphalt, cannot be passed through for higher than expected margin depletion; -- The company takes on a more aggressive financial policy, such as pursuing more debt-funded acquisitions or dividend payouts, further deteriorating credit metrics; or -- Carlyle Global Partners increases ownership to more than 40%. S&P views an upgrade as unlikely over the next 12 months. However, it may raise the rating if: -- The company materially changes its dividend and overall financial policy such that credit measures strengthen and S&P expects them to be maintained under most market conditions. Specifically, it would expect adjusted leverage of 3x-4x on a sustained basis; or -- The company significantly expands its size, scale, and product diversity, but absent an unlikely change in its dividend policy in the next 12 months. TCF FINANCIAL: Moody's Still Reviews Ba1 Preferred Stock Rating --------------------------------------------------------------- Moody's Investors Service said that the review for upgrade of the long-term ratings of TCF Financial Corporation (TCF, noncumulative preferred stock Ba1(hyb)) as well as the long-term ratings and assessments, including the baa1 Baseline Credit Assessment, and the Prime-2(cr) short-term counterparty risk assessment of its lead bank, TCF National Bank (long-term deposits A2), continues as the company's pending merger with Huntington Bancshares Incorporated (Huntington, long-term senior unsecured Baa1) progresses. The review was initiated on December 14, 2020. RATINGS RATIONALE The rating review commenced following the banks' announcement that they will merger in an all-stock transaction which will create a top 10 US regional bank with assets of approximately $168 billion. Moody's placed TCF's BCA and ratings on review for upgrade because it believes that TCF's creditors may benefit from the merger. TCF's BCA reflects the bank's solid balance sheet, supported by its large, low-cost funding base, improved liquidity, stable asset quality and adequate capitalization. The BCA also reflects TCF's healthy core profitability despite recent pressure from low interest rates and expenses related to the merger of equals between TCF and Chemical Financial Corporation in August 2019. TCF's above peer-average growth of certain national lending businesses in recent years and its commercial real estate concentration are credit challenges despite generally good asset quality performance. Moody's review is unlikely to conclude until after the deal has received regulatory approvals and the transaction closes. The banks' management team anticipates that this will occur in the second quarter of 2021. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's review for upgrade will focus on the benefits to TCF's creditors of the proposed combination, specifically the benefits of the increased scale and more diverse franchise. Given the direction of the ratings review, rating downgrades are unlikely over the next 12-18 months. The methodology used in these ratings was Banks Methodology published in November 2019. TEXXON PETROCHEMICALS: Gets OK to Hire Eric A. Liepins as Counsel ----------------------------------------------------------------- Texxon Petrochemicals, LLC, received approval from the U.S. Bankruptcy Court for the Eastern District of Texas to employ Eric A. Liepins, P.C. as its legal counsel. The Debtor requires legal assistance to orderly liquidate its assets, reorganize the claims of the estate, and determine the validity of claims asserted against the estate. The firm will be paid at these rates: Eric Liepins, Esq. $275 per hour Paralegals/Legal Assistants $30 - $50 per hour Liepins received a retainer of $5,000, plus the filing fee. The firm will also receive reimbursement for out-of-pocket expenses incurred. Eric Liepins, Esq., disclosed in a court filing that his firm does not represent any interest adverse to the Debtor's estate. The firm can be reached through: Eric A. Liepins, Esq. Eric A. Liepins, P.C. 12770 Coit Road, Suite 1100 Dallas, TX 75251 Telephone: (972) 991-5591 Facsimile: (972) 991-5788 Email: eric@ealpc.com About Texxon Petrochemicals Texxon Petrochemicals, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Texas Case No. 20-42453) on Dec. 14, 2020. 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. Judge Brenda T. Rhoades oversees the Debtor's case. The Debtor is represented by Eric A. Liepins, P.C. TRANSDIGM INC: S&P Affirms 'B+' Issuer Credit Rating, Outlook Neg. ------------------------------------------------------------------ S&P Global Ratings affirmed all of its ratings on TransDigm Inc., including its 'B+' issuer credit rating. S&P said, "The negative outlook reflects our expectation that the company's debt to EBITDA may remain weak into 2022 due to the uncertainty around the pace of the recovery in commercial air travel and whether it will be able to restore its margins to pre-pandemic levels. "We expect TransDigm's credit metrics to start to recover in the second half of fiscal year 2021. The effects of the coronavirus pandemic significantly reduced the volume of global commercial air travel last year, which weakened the demand for TransDigm's products and led to a decline in its revenue. The company's revenue from the commercial aerospace aftermarket (about 31% of fiscal-year 2019 revenue) was affected more immediately than the revenue from its other segments as airlines cut spending to preserve cash and their need for aircraft maintenance declined due to the lower volume of flights. The demand from its commercial original equipment manufacturer (OEM) customers (32% of 2019 revenue) also weakened because Boeing Co. and Airbus S.E. lowered the build rates across all of their platforms (excluding the Boeing 737 MAX) in April 2020. This reduced TransDigm's revenue and earnings in 2020 and caused its debt to EBITDA to increase to 7.3x. We expect the company's sales to weaken a bit further in fiscal year 2021 on a full year of lower demand. However, we do expect to see some improvement in TransDigm's aftermarket demand late in the fiscal year as the volume of domestic traffic starts to recover as more people get vaccinated, although international demand will likely remain weak. The volume of new aircraft production will likely be flat this year with some increases in narrowbody production possible by the end of the year. We expect the company's debt to EBITDA to remain above 7x in fiscal year 2021 before improving below that level in fiscal year 2022. "The negative outlook on TransDigm reflects our expectation that its credit metrics will remain weak if air travel does not begin to recover or it is unable to restore its margins to pre-pandemic levels. We now expect the company's debt to EBITDA to remain above 7x in fiscal year 2021 before improving in 2022." S&P could lower its rating on TransDigm if its debt to EBITDA isn't trending to be below 7x in 2022. This could occur because of: -- Sustained lower aftermarket demand; -- Sustained lower build rates; -- Continued weak margins; or -- A more aggressive-than-anticipated financial policy. S&P could revise its outlook on TransDigm to stable if its debt to EBITDA declines below 7x and S&P expects it to remain there. This would likely occur if: -- There is a recovery in the volume of air traffic that supports increasing aftermarket demand; -- Build rates remain at current levels or higher; -- The company's cost-cutting initiative are effective; or -- Its acquisitions and dividends are in line with our expectations. VISTRA ENERGY: Moody's Affirms Ba1 CFR & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service changed Vistra Energy Corp.'s rating outlook to stable from positive following the large loss incurred during February's severe cold weather event in Texas. At the same time, Moody's affirmed Vistra's long-term ratings, including its Ba1 corporate family rating and Ba1-PD probability of default rating, and downgraded its speculative grade liquidity rating to SGL-2 from SGL-1. Downgrades: Issuer: Vistra Energy Corp. Speculative Grade Liquidity Rating, Downgraded to SGL-2 from SGL-1 Affirmations: Issuer: Vistra Energy Corp. Probability of Default Rating, Affirmed Ba1-PD Corporate Family Rating, Affirmed Ba1 Issuer: Vistra Operations Company LLC Senior Secured Regular Bond/Debenture, Affirmed Baa3 (LGD3) Senior Unsecured Regular Bond/Debenture, Affirmed Ba2 (LGD5) Issuer: Dynegy Inc. Senior Unsecured Regular Bond/Debenture, Affirmed Ba2 (LGD5), Assumed by Vistra Energy Corp. Outlook Actions: Issuer: Vistra Energy Corp. Outlook, Changed To Stable From Positive Issuer: Vistra Operations Company LLC Outlook, Changed To Stable From Positive RATINGS RATIONALE "Vistra's 2021 CFO pre-WC to debt ratio is likely to fall precipitously because it could lose more than $1 billion as a result of the February winter storm," said Toby Shea, VP -- Senior Credit Officer, "Although the company's current credit rating can withstand this one-time event and financial metrics should recover close to pre-storm levels in 2022, positive momentum on the rating is unlikely until there is some clarity on any Texas power market reforms or other changes." During last month's extreme cold weather event in Texas and the Midwest, Vistra appears to have outperformed most other generators operationally but nevertheless incurred more losses than many of them. Various system-wide problems exacerbated these losses over the course of several days. In addition to power plant mechanical failures, natural gas production and deliveries were disrupted, limiting the ability of gas plants to run even if they were mechanically sound. Vistra's losses do not appear to be attributable to anything fundamentally flawed about its operations or risk management but rather to a rapidly changing and unpredictable set of circumstances during the cold weather event. Moody's view ESG factors as a material driver of the change in Vistra's outlook to stable from positive. In particular, the power outages that occurred have highlighted the social risk facing Vistra because Moody's regard responsible production, which includes reliability and community relations, as a key component of social risk within Moody's ESG analytical framework. Moreover, Moody's consider the potential for more extreme weather events as a form of environmental risk that must be addressed and managed by the company. Vistra has exhibited strong CFO pre-WC to debt ratios over the past two years, at approximately 26% in 2019 and 34% in 2020, putting it in a strong position to absorb these losses. The storm event will bring the CFO pre-WC to debt ratio down severely, however, to well below 15% in 2021 from what would otherwise have been about 26%. Moody's expect Vistra to use free cash flow to offset about $600 million of the losses and to return to a CFO pre-WC to debt ratio of 24% or above after 2021. The speed and extent of this financial recovery will depend partly on whether there are any reforms or changes to the Texas power market in response to the February outages. The affirmation of Vistra's Ba1 CFR and other long-term ratings reflects its large and diversified generation portfolio, strong and profitable retail operation, moderate leverage of below 3.0x net debt to EBITDA, and strong financial metrics at above 24% CFO pre-WC to debt on a run-rate basis. Vistra's generation business provides about 70% of consolidated EBITDA, with about half coming from Texas. The generation fleet mainly comprises natural gas and coal-fired power plants, but most of the fleet's value lies within 20 GW of high-efficiency gas-fired power plants. This large fleet of gas plants and strong retail operations help to mitigate volatile merchant power markets. Vistra's retail business, which contributes about 30% of consolidated EBITDA, is stable and profitable because of its large scale, strong brands, and the company's ownership of generation assets. Owning generation provides a critical competitive advantage because it gives the retail operation greater control over the costs and risks associated with power procurement. Liquidity The downgrade of Vistra's speculative grade liquidity rating to SGL-2 from SGL-1 reflects the lower level of available revolving credit facility and cash on hand following the cold weather event. Although Vistra has adequate liquidity to address most of the losses incurred last month, managing the event will temporarily constrain what had been a very good liquidity profile prior to February. After the event, Moody's estimates that the company will still have about $1 billion of available liquidity from a combination of cash on hand and revolving credit facility availability. Moody's believe that Vistra will bolster its liquidity over the course of 2021 as it refinances its short-term borrowings under its $2.725 billion revolving credit facility with long-term debt. Moody's are likely to raise Vistra's SGL rating as the availability under its revolving credit facility increases. Vistra's business produces strong cash flow, which Moody's expect to continue. Outside of the one-time losses incurred in February, Moody's generally expect Vistra to generate about $1.5 to $2 billion of free cash flow before growth capital expenditures and dividends. Even though it expects to spend $683 million on growth capital in 2021, Vistra has a high degree of both timing and financing flexibility regarding its growth capital expenditures. A large portion of the spending is related to storage projects in California that can take on partners or be project financed if necessary because they will receive contracted cash flow. The company expects to pay about $300 million of dividends in 2021. Vistra's revolving credit facility contains a material adverse change clause for new borrowing, which the bank group has not exercised as a result of the cold weather event. The revolving facility also has a covenant of 4.25x consolidated first lien net debt to EBITDA. Moody's expect the company to be able to continue to comply with this financial covenant requirement going forward. Vistra's next major long-term debt maturity is a $1.5 billion senior secured notes issuance due July 2024. Outlook Vistra's stable outlook reflects its strong long-term business fundamentals and its ability to manage and absorb the large one-time loss in February, although this will mean that the company will operate with higher debt leverage in 2021. Its outlook could return to positive should it pays down the debt incurred from the loss and continue to strengthen its credit and business risk profile. Texas will likely take measures to counter the potential impact on grid reliability of more severe weather events. A positive outlook will be dependent on clarity as to what form these measures will take and how they might affect Vistra's credit quality. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that Could Lead to an Upgrade Moody's could consider positive rating action should the company meet and maintain its net debt to EBITDA target of around 2.5x and produce a CFO pre-WC to debt ratio of 24% or higher. Such an action would also be conditioned on Moody's expectation that Texas will take the necessary corrective actions to address its reliability issues in a manner that is not credit negative for Vistra. Factors that Could Lead to a Downgrade Moody's could consider a negative rating action if the company diverges from its low debt leverage policy and its CFO pre-WC to debt ratio falls to below 18% on a sustained basis. Moody's could also take a negative rating action should Texas fails to make changes to its power supply system and market design in a way that adequately addresses the impact of extreme weather events and does not increase Vistra's business risk. The principal methodology used in these ratings was Unregulated Utilities and Unregulated Power Companies published in May 2017. WC SOUTH CONGRESS: April 15 Plan Confirmation Hearing Set --------------------------------------------------------- On March 8, 2021, the U.S. Bankruptcy Court for the Western District of Texas conducted a hearing to consider approval of the Amended Disclosure Statement in Support of Amended Chapter 11 Plan of Reorganization of debtor WC South Congress Square, LLC, where the Debtor and the Noteholder announced agreement regarding revisions to be made to the Amended Disclosure Statement addressing the Noteholder's objections to same. On March 10, 2021, the Debtor filed its Second Amended Disclosure Statement in Support of Second Amended Chapter 11 Plan of Reorganization. On March 11, 2021, Judge Tony M. Davis approved the Second Amended Disclosure Statement and ordered that: * April 12, 2021, at 5:00 p.m. is fixed as the last day for filing and serving written objections to confirmation of the Plan. * April 12, 2021, at 5:00 p.m. is fixed as the last day for submitting ballots for acceptances or rejections of the Plan. * April 14, 2021, at 5:00 p.m. is fixed as the last day for counsel for the Debtor to file with the Court a ballot summary. * April 15, 2021, at 9:00 a.m., at the U.S. Bankruptcy Court, Courtroom No. 1, 903 San Jacinto Blvd., Austin, Texas is the hearing on the confirmation of the Plan and any objections. A full-text copy of the order dated March 11, 2021, is available at https://bit.ly/3ljVxYm from PacerMonitor.com at no charge. Proposed Counsel for the Debtor: Mark H. Ralston, Esq. FISHMAN JACKSON RONQUILLO PLLC Three Galleria Tower 13155 Noel Road, Suite 700 Dallas, TX 75240 Telephone: (972) 419-5544 Facsimile: (972) 4419-5500 E-mail: mralston@fjrpllc.com Counsel for 510 South: KELL C. MERCER, P.C. Kell C. Mercer 1602 E. Cesar Chavez Street Austin, Texas 78702 Tel: (512) 627-3512 Fax: (512) 597-0767 E-mail: kell.mercer@mercer-law-pc.com About WC South Congress Square Based in Austin, Texas, WC South Congress Square LLC owns a multi family apartment community with 115 rental units located at 500 South Congress Avenue in Austin, as well as two adjacent office buildings with a total of over 70,000 square feet of office space. The managing member of the Debtor is World Class Holdings VI, LLC, which is controlled by Natin Paul, a real estate entrepreneur very active in the Austin market. WC South Congress Square sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 20-11107) on October 6, 2020. The petition was signed by Natin Paul, manager of general partner. At the time of the filing, the Debtor had estimated assets of between $50 million and $100 million and liabilities of between $10 million and $50 million. Fishman Jackson Ronquillo PLLC is the Debtor's legal counsel. WILSONART LLC: Moody's Rates Amended $1.2BB First Lien Loan 'B2' ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to the amended $1.2 billion first lien senior secured term loan and a B2 rating to the amended $175 million senior secured revolving credit facility of Wilsonart LLC. The company's other ratings, including the B2 Corporate Family Rating, and stable outlook were unchanged. The transaction will be leverage neutral while improving the company's debt maturity profile, which will be pushed out three years, and lowering its interest cost. The ratings on the existing senior secured term loan and revolving credit facility (both rated B2) will be withdrawn upon closing of the transaction. Assignments: Issuer: Wilsonart LLC Senior Secured 1st Lien Term Loan, Assigned B2 (LGD3) Senior Secured Revolving Credit Facility, Assigned B2 (LGD3) RATINGS RATIONALE Wilsonart's B2 CFR reflects Moody's expectations that the company will reduce debt to EBITDA to approximately 5.5x and improve interest coverage to 2.5x within the next 12 months, from 6.6x and 1.8x, respectively, at and for the twelve months ended September 30, 2020. Moody's expectations incorporate full availability on the company's $175 million revolver through the remainder of 2021. Moody's forecast assumes modest top line growth and margin improvement in 2021, reflecting solid fundamentals in the repair and remodel sector which will support demand for the company's products. The B2 rating on Wilsonart's proposed and existing senior secured bank credit facility, at the same level with the Corporate Family Rating, reflects its position as the preponderance of debt in Wilsonart's capital structure. These instruments benefit from a first-priority interest in substantially all of Wilsonart's domestic tangible and intangible assets and are guaranteed by the company's existing and future domestic subsidiaries. The revolver and the term loan rank pari passu to each other in a recovery scenario. A key governance consideration is Wilsonart's aggressive financial policy, which tends to favor shareholders over creditors. Wilsonart pays a regular dividend to its parent company, Wilsonart International Holdings LLC, which is majority owned by Clayton, Dubilier, and Rice, LLC and Illinois Tool Works Inc. Furthermore, the company has a history of growth through acquisitions and operating with high financial leverage. The stable outlook reflects Moody's expectation of strong demand dynamics within the repair and remodel sector through the end of 2021 and Wilsonart's maintenance of good liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgrade if Wilsonart operates with debt to EBITDA consistently below 5.0x and EBITA to interest coverage sustained above 3.0x. In considering an upgrade Moody's would also take into account the overall aggressiveness of the company's balance sheet management. The ratings could be downgraded if the company operates with debt to EBITDA consistently over 6.0x and EBITA to interest coverage below 1.5x. Additionally, significant debt-financed acquisitions or shareholder-friendly actions affecting the company's leverage or liquidity profile could adversely impact the ratings. The principal methodology used in these ratings was Manufacturing Methodology published in March 2020. Headquartered in Austin, Texas, Wilsonart is a manufacturer and distributor of decorative engineered surfaces for commercial and residential markets. The company's product offering includes high and low pressure laminates; acrylic resin; solid surfaces; quartz; expoxy resin laboratory tops; adhesives; and worktops designed for construction and repair and remodeling. Wilsonart is one of the largest players in its segment in North America and operates in several European markets as well. Revenues for the twelve months ended September 30, 2020 were approximately $1.1 billion. [*] Bankruptcies Declined in 2020 Across California Area -------------------------------------------------------- Patch (California) reports that across California, 51,385 total bankruptcies were filed in 2020 -- 26.08 percent fewer than in 2019, when 69,518 were filed. And in Contra Costa County, 1,077 total bankruptcies were filed in 2020 compared with 1,463 in 2019, according to the U.S. Courts Administrative Office. Businesses accounted for around 4 percent of all bankruptcies in the U.S. during 2020, but they can have a large effect on the economy as locations are shuttered and employees are laid off. Businesses tend to be dependent on each other, and there can be an economic ripple effect that takes years to play out, said Neil Peretz, an attorney with more than 15 years of experience litigating bankruptcy cases in the public and private sectors. Peretz represented public interests in large bankruptcy cases as an attorney for the U.S. Department of Justice during the Great Recession. "Each entity in the economic food chain is trying to hang on a little bit longer," said Peretz, who now runs a company called Proxifile that helps small creditors negotiate the bankruptcy process when larger businesses fail. "Not everything can cease instantly and people are still trying to sort that out." Business bankruptcies in Contra Costa County Business bankruptcies in Contra Costa County decreased last year: 69 business bankruptcies were filed in 2020 compared with 75 in 2019. There were 41 business bankruptcies under Chapter 7, commonly referred to as liquidation bankruptcies, in Contra Costa County during 2020. That's a decrease from 2019, when 54 businesses filed under Chapter 7. All non-exempt property is sold during a Chapter 7 bankruptcy, which can be used by both businesses and individuals. Contra Costa County had 23 Chapter 11 bankruptcies filed in 2020 compared with 10 in 2019. Non-business bankruptcies in Contra Costa County There were 1,008 non-business bankruptcy filings in 2020 compared with 1,388 in 2019. Contra Costa County had 743 non-business Chapter 7 filings in 2020 and 809 in 2019. Chapter 13 bankruptcy filings, also known as "wage earner's plans," saw a decrease in Contra Costa County in 2020 compared with 2019. There were 262 filed in 2020 and 571 filed in 2019. Chapter 13 is typically used by people with a regular income to reorganize and pay off debts over time. It gives an opportunity for people to keep their homes. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Sathish Chari, Dr. and Bernadette Chari Bankr. D. Ariz. Case No. 21-01701 Chapter 11 Petition filed March 10, 2021 represented by: Lawrence D. Hirsch, Esq. PARKER SCHWARTZ, PLLC E-mail: lhirsch@psazlaw.com In re Gudorf Plumbing Heating Cooling and Electrical, Inc. Bankr. S.D. Ind. Case No. 21-70159 Chapter 11 Petition filed March 10, 2021 See https://www.pacermonitor.com/view/VV4JDDQ/Gudorf_Plumbing_Heating_Cooling__insbke-21-70159__0001.0.pdf?mcid=tGE4TAMA represented by: KC Cohen, Esq. KC COHEN, LAWYER, PC E-mail: kc@esoft-legal.com In re Raymond Vannausdle Bankr. S.D. Iowa Case No. 21-00291 Chapter 11 Petition filed March 10, 2021 represented by: Robert Gainer, Esq. In re 210 Boonton Avenue Limited Liability Company Bankr. D.N.J. Case No. 21-11950 Chapter 11 Petition filed March 10, 2021 See https://www.pacermonitor.com/view/4PNT5HA/210_BOONTON_AVENUE_LIMITED_LIABILITY__njbke-21-11950__0001.0.pdf?mcid=tGE4TAMA represented by: Lawrence F. Morrison, Esq. MORRISON TENENBAUM, PLLC E-mail: info@m-t-law.com In re Alexander S. Dimitrov Bankr. E.D.N.Y. Case No. 21-40622 Chapter 11 Petition filed March 10, 2021 represented by: Alla Kachan, Esq. In re G A V Rest. Corp. Bankr. E.D.N.Y. Case No. 21-40617 Chapter 11 Petition filed March 10, 2021 See https://www.pacermonitor.com/view/XLFPZQY/G_A_V_Rest_Corp__nyebke-21-40617__0001.0.pdf?mcid=tGE4TAMA represented by: Lawrence F. Morrison, Esq. MORRISON TENENBAUM, PLLC E-mail: info@m-t-law.com In re Earthworx & Sales, LLC Bankr. W.D. Pa. Case No. 21-20534 Chapter 11 Petition filed March 11, 2021 See https://www.pacermonitor.com/view/YJHLVBA/Earthworx__Sales_LLC__pawbke-21-20534__0001.0.pdf?mcid=tGE4TAMA represented by: Donald R. Calaiaro, Esq. CALAIARO VALENCIK E-mail: dcalaiaro@c-vlaw.com In re Big Kat Daddys, LLC Bankr. S.D. Tex. Case No. 21-30895 Chapter 11 Petition filed March 11, 2021 See https://www.pacermonitor.com/view/TQAKYRQ/Big_Kat_Daddys_LLC__txsbke-21-30895__0001.0.pdf?mcid=tGE4TAMA represented by: Nima Taherian, Esq. LAW OFFICE OF NIMA TAHERIAN E-mail: nima@ntaherian.com In re William John Bullis, II Bankr. W.D. Wash. Case No. 21-10485 Chapter 11 Petition filed March 11, 2021 represented by: Steven Hathaway, Esq. In re Timberline Four Seasons Utilities, Inc. Bankr. N.D. W.Va. Case No. 21-00125 Chapter 11 Petition filed March 11, 2021 See https://www.pacermonitor.com/view/VCYMZLY/Timberline_Four_Seasons_Utilities__wvnbke-21-00125__0001.0.pdf?mcid=tGE4TAMA represented by: Martin P. Sheehan, Esq. SHEEHAN & ASSOCIATES, PLLC E-mail: sheehanbankruptcy@wvdsl.net In re Clifford Passage, LLC Bankr. C.D. Cal. Case No. 21-11994 Chapter 11 Petition filed March 12, 2021 See https://www.pacermonitor.com/view/DAGWOPY/Clifford_Passage_LLC__cacbke-21-11994__0001.0.pdf?mcid=tGE4TAMA represented by: Matthew Abbasi, Esq. ABBASI LAW CORPORATION E-mail: matthew@malawgroup.com In re Retired-N-Fit, LLC Bankr. D. Del. Case No. 21-10561 Chapter 11 Petition filed March 12, 2021 See https://www.pacermonitor.com/view/PZKBBTA/Retired-N-Fit_LLC__debke-21-10561__0001.0.pdf?mcid=tGE4TAMA represented by: David M. Klauder, Esq. BIELLI & KLAUDER, LLC E-mail: dklauder@bk-legal.com In re Nicholas Heras, Jr. Bankr. D. Mass. Case No. 21-10313 Chapter 11 Petition filed March 12, 2021 represented by: Kate Nicholson, Esq. In re Entertainment Cinemas Lebanon, LLC Bankr. D.N.H. Case No. 21-10143 Chapter 11 Petition filed March 12, 2021 See https://www.pacermonitor.com/view/25TEO2Y/Entertainment_Cinemas_Lebanon__nhbke-21-10143__0001.0.pdf?mcid=tGE4TAMA represented by: William S. Gannon, Esq. WILLIAM S. GANNON PLLC E-mail: bgannon@gannonlawfirm.com In re Jose Ruben Morales Troche Bankr. D.P.R. Case No. 21-00776 Chapter 11 Petition filed March 12, 2021 represented by: Nilda M. Gonzalez Cordero, Esq. In re Jean Y. Duplessis Bankr. D. Mass. Case No. 21-10321 Chapter 11 Petition filed March 14, 2021 represented by: David Baker, Esq. In re Stephen Brandon Anderson and Morgan Paige Anderson Bankr. M.D. Tenn. Case No. 21-00732 Chapter 11 Petition filed March 14, 2021 represented by: Denis Waldron, Esq. DUNHAM HILDEBRAND, PLLC In re Domus Build & Design Inc. Bankr. N.D. Cal. Case No. 21-40353 Chapter 11 Petition filed March 15, 2021 See https://www.pacermonitor.com/view/KP4ZV6A/Domus_Build__Design_Inc__canbke-21-40353__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re 5707 Hayes Street, LLC Bankr. S.D. Fla. Case No. 21-12448 Chapter 11 Petition filed March 15, 2021 See https://www.pacermonitor.com/view/QS6AT6Q/5707_Hayes_Street_LLC__flsbke-21-12448__0001.0.pdf?mcid=tGE4TAMA represented by: Mark S. Roher, Esq. LAW OFFICE OF MARK S. ROHER, P.A. E-mail: mroher@markroherlaw.com In re Eduardo Gonzalea-Hernandez Bankr. S.D. Fla. Case No. 21-12437 Chapter 11 Petition filed March 15, 2021 represented by: Peter Spindel, Esq. In re Adolfo Alejandro Lengyel Bankr. S.D. Fla. Case No. 21-12436 Chapter 11 Petition filed March 15, 2021 represented by: Peter Spindel, Esq. In re Baretta, Inc. Bankr. E.D. Mo. Case No. 21-40914 Chapter 11 Petition filed March 15, 2021 See https://www.pacermonitor.com/view/WK2QLFY/Baretta_Inc__moebke-21-40914__0001.0.pdf?mcid=tGE4TAMA represented by: Frank Ledbetter, Esq. LEDBETTER LAW FIRM, LLC E-mail: stlatty@gmail.com In re Edison Plaza Diner, LLC Bankr. D.N.J. Case No. 21-12085 Chapter 11 Petition filed March 15, 2021 See https://www.pacermonitor.com/view/34E3Y4Y/Edison_Plaza_Diner_LLC__njbke-21-12085__0001.0.pdf?mcid=tGE4TAMA represented by: David L. Stevens, Esq. SCURA, WIGFIELD, HEYER, STEVENS & CAMMAROTA, LLP E-mail: ecfbkfilings@scuramealey.com In re Donald Anthony Della Bankr. W.D. Pa. Case No. 21-70103 Chapter 11 Petition filed March 15, 2021 represented by: Kevin J. Petak, Esq. SPENCE, CUSTER, SAYLOR, WOLFE & ROSE, LLC In re Johnnie David Jackow and Betty Ann Jackow Bankr. S.D. Tex. Case No. 21-30924 Chapter 11 Petition filed March 15, 2021 represented by: Margaret McClure, Esq. In re Ryan 8641, LLC Bankr. E.D. Wisc. Case No. 21-21327 Chapter 11 Petition filed March 15, 2021 See https://www.pacermonitor.com/view/FH523WQ/Ryan_8641_LLC__wiebke-21-21327__0001.0.pdf?mcid=tGE4TAMA represented by: Paul A. Strouse, Esq. STROUSE LAW OFFICES E-mail: Strouselawoffices@gmail.com In re Ryan 1000, LLC Bankr. E.D. Wisc. Case No. 21-21326 Chapter 11 Petition filed March 15, 2021 See https://www.pacermonitor.com/view/E6VHQXY/Ryan_1000_LLC__wiebke-21-21326__0001.0.pdf?mcid=tGE4TAMA represented by: Paul A. Strouse, Esq. STROUSE LAW OFFICES E-mail: Strouselawoffices@gmail.com In re Harrison Place LLC Bankr. N.D. Cal. Case No. 21-40362 Chapter 11 Petition filed March 16, 2021 See https://www.pacermonitor.com/view/22UWLOY/Harrison_Place_LLC__canbke-21-40362__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re The Jefferson Corner LLC Bankr. N.D. Cal. Case No. 21-40361 Chapter 11 Petition filed March 16, 2021 See https://www.pacermonitor.com/view/2RGFFLA/The_Jefferson_Corner_LLC__canbke-21-40361__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Trinity Urban Development LLC Bankr. N.D. Cal. Case No. 21-40360 Chapter 11 Petition filed March 16, 2021 See https://www.pacermonitor.com/view/FRWFXTQ/Trinity_Urban_Development_LLC__canbke-21-40360__0001.0.pdf?mcid=tGE4TAMA Filed Pro Se In re Phyto-Plus, Inc. Bankr. M.D. Fla. Case No. 21-01225 Chapter 11 Petition filed March 16, 2021 See https://www.pacermonitor.com/view/MTHUD6Y/PHYTO-PLUS_INC__flmbke-21-01225__0001.0.pdf?mcid=tGE4TAMA represented by: Buddy D. Ford, Esq. BUDDY D. FORD, P.A. E-mail: All@tampaesq.com In re Denise E. King Bankr. N.D. Ga. Case No. 21-52167 Chapter 11 Petition filed March 16, 2021 represented by: Theodore Stapleton, Esq. In re Kuehl Companies, LLC Bankr. N.D. Ill. Case No. 21-03411 Chapter 11 Petition filed March 16, 2021 See https://www.pacermonitor.com/view/DNUMFCY/Kuehl_Companies_LLC__ilnbke-21-03411__0001.0.pdf?mcid=tGE4TAMA represented by: John J. Lynch, Esq. LYNCH LAW LLC E-mail: JLynch@Lynch4Law.com In re Rizzo & Restuccia, P.C. Bankr. D. Mass. Case No. 21-40188 Chapter 11 Petition filed March 16, 2021 See https://www.pacermonitor.com/view/YWFYXNI/Rizzo__Restuccia_PC__mabke-21-40188__0001.0.pdf?mcid=tGE4TAMA represented by: John F. Sommerstein, Esq. LAW OFFICES OF JOHN F. SOMMERSTEIN E-mail: jfsommer@aol.com ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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