/raid1/www/Hosts/bankrupt/TCR_Public/210510.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, May 10, 2021, Vol. 25, No. 129
Headlines
120 YORK: May Use Kinsley Cash Collateral Thru May 18
1369 LONDONDERRY: Taps Camellia Yeroomian as Real Estate Agent
1900 ORCHARD: Gets OK to Hire Goldberg Weprin as Bankruptcy Counsel
335 LAKE AVENUE: $9.38M Sale of Aspen Property to Black Approved
3MB LLC: June 29 Amended Plan Confirmation Hearing Set
AGILE THERAPEUTICS: Incurs $17.1 Million Net Loss in First Quarter
ALGON CORPORATION: June 16 Plan Confirmation Hearing Set
ALLIE'S PARTY: Seeks to Use $80,000 of First Bank et al. Cash
ANTECO PHARMA: Case Summary & 3 Unsecured Creditors
BALLOON BOY: Court Approves Lease Agreement With High Properties
BAUSCH HEALTH: S&P Alters Outlook to Negative, Affirms 'B+' ICR
BAY HARBOR: $17K Cash Sale of 2014 Mercedes-Benz E350 Approved
BISHOP METAL: Case Summary & 14 Unsecured Creditors
BM318 LLC: $992K Sale of $118-Acre Parker County Land Approved
BOY SCOUTS OF AMERICA: Sidley Austin Beats Representation Challenge
BURN FITNESS: Wins Cash Collateral Access Thru May 31
CANTERA COURT: May Use Cash Collateral Thru June 30
CARBONYX INC: Competing Proponents Say Sunshine Plan Unconfirmable
CARBONYX INC: Trustee Questions Sunshine Plan's Feasibility
CARLA'S PASTA: Revised Order Approving Sale of All Assets Issued
CD THOMAS FARMS: Case Summary & 4 Unsecured Creditors
CENTURY ALUMINUM: Reports $140 Million Net Loss for First Quarter
CENTURY TOWNHOMES: Joint Plan of Reorganization Confirmed by Judge
CITY-WIDE COMMUNITY: Files Emergency Bid to Use Cash Collateral
CLEANSPARK INC: Posts $7.4 Million Net Income in Second Quarter
COLONIAL GATE: Case Summary & 10 Unsecured Creditors
COLONIAL GATE: Seeks Cash Collateral Access
COLUMBUS MCKINNON: S&P Lowers ICR to 'B+' on Acquisition of Dorner
CONAIR HOLDINGS: S&P Assigns 'B' ICR, Outlook Stable
CONNECTIONS COMMUNITY: Hearing on Bid Procedures Set for May 17
CONNECTIONS COMMUNITY: May 17 Hearing on Bid Procedures for Assets
CONNECTIONS COMMUNITY: Seeks May 17 Hearing on Bid Procedures
CPG INTERMEDIATE: S&P Upgrades ICR to 'B', Outlook Stable
CRC INVESTMENTS: Case Summary & 13 Unsecured Creditors
CYTOSORBENTS CORP: Incurs $4.2 Million Net Loss in First Quarter
DAVIS SAND: $9K Sale of 1992 Case W11B Loader to West Michigan OK'd
DENNIS M. DANZIK: US Seeks More Time to Object to Batmobiles Sale
DHANANI GROUP: S&P Affirms 'B' ICR on Good Operating Performance
DIVISIONS HOLDING: S&P Assigns 'B' ICR, Outlook Stable
DORCHESTER RESOURCES: May Use Cash Collateral Until September 1
EAGLE INTERMEDIATE: S&P Assigns 'B-' ICR, Outlook Stable
EAS GRACELAND: Wins Cash Collateral Access Thru May 25
EASTERDAY RANCHES: Sets Bidding Procedures for Sale of All Assets
ELECTRONIC DATA: Seeks to Hire Waldrep Wall as Bankruptcy Counsel
ENGINEERED PROPULSION: Taps Peters Revnew as Labor Counsel
ENTRUST ENERGY: Wins Cash Collateral Access Thru May 28
ESSA PHARMA: Incurs $13 Million Net Loss in Second Quarter
FAIRBANKS COMPANY: July 8 Plan & Insurance Settlement Hearing Set
FIREBALL REALTY: $720K Sale of Manchester Property to Sargent OK'd
FIRST TO THE FINISH: Wins Cash Collateral Access Thru May 18
FIVE STAR SENIOR: Posts $3.3 Million Net Income in First Quarter
FRANCESCA'S HOLDINGS: Files Wind-Down Plan After $18M Sale
GAINCO INC: Wins Temporary Cash Collateral Access
GAMESTOP CORP: S&P Upgrades ICR to 'B', Off CreditWatch Positive
GATEWAY CASINOS: S&P Cuts ICR to CCC on Near-Term Refinancing Risk
GENWORTH FINANCIAL: S&P Places 'B-' ICR on CreditWatch Positive
GRAY TELEVISION: S&P Alters Outlook to Stable, Affirms 'B+' ICR
H.R.P. II: Hearing on Sale of Hammond Property Set for May 11
HENRY FORD: Announces Ch.11 Auction Results With Bid from HPV OPCO
HEO INC: Wins Cash Collateral Access Thru May 27
HERTZ CORP: Court OKs Adequate Protection Fix with Lender
HOMES BY KC: K. Hutchinson Buying Atlanta Property for $360K
HOMES BY KC: May 11 Hearing on $360K Sale of Atlanta Property
HORIZON GLOBAL: Incurs $15.2 Million Net Loss in First Quarter
HS MIDCO: S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable
I MORALES TIRE: June 16 Plan & Disclosure Hearing Set
I-LOGIC TECHNOLOGIES: S&P Rates New $350MM Sr. Secured Notes 'B'
INFINERA CORPORATION: Incurs $48.3-Mil. Net Loss in First Quarter
INTEGRATED GROUP: Wins Cash Collateral Access
INW MANUFACTURING: S&P Assigns 'B-' ICR, Outlook Stable
J.C. PENNEY: CEO Touts $1.2 Bil. Cash Buffer After Bankruptcy
JAB OF ROCKLAND: Extends Plan Filing Deadline to July 9
JACKSONVILLE ADVANCED: Case Summary & 13 Unsecured Creditors
JACKSONVILLE ADVANCED: Seeks Cash Collateral Access
KK ALLIANCE: Case Summary & 3 Unsecured Creditors
KK FIT HERSHEY: Case Summary & 7 Unsecured Creditors
KK FIT SOUTH: Case Summary & 4 Unsecured Creditors
KK FIT WYO: Case Summary & 3 Unsecured Creditors
KK FIT YORK: Case Summary & 4 Unsecured Creditors
KK FIT: Voluntary Chapter 11 Case Summary
KKL FIT III: Case Summary & 5 Unsecured Creditors
KOPIN CORP: Incurs $4.1 Million Net Loss in First Quarter
KWK INC: Case Summary & 2 Unsecured Creditors
L&L WINGS: Seeks to Hire Davidoff Hutcher as Legal Counsel
LIQUIDMETAL TECHNOLOGIES: Incurs $691K Net Loss in First Quarter
LOVES FURNITURE: To Liquidate Assets After GOB Sales
LUCKY STAR-DEER: Affiliate Taps Certilman Balin as Special Counsel
MERCURY PARENT: S&P Alters Outlook to Stable, Affirms 'B' ICR
MEREDITH CORP: S&P Places 'B' Issuer Credit Rating on Watch Pos.
MERITAGE COMPANIES: Plan Exclusivity Extended Thru July 29
MERITOR INC: S&P Alters Outlook to Stable, Affirms 'BB' ICR
METRONOMIC HOLDINGS: $356K Auction Sale of Miami Property Approved
MEZZ57TH LLC: Gets Interim Approval to Use Cash Collateral
MILLER ENERGY: KPMG to Face Class Claims Over Falsified Audit
MISSISSIPPI MATERNAL-FETAL: Court OKs Deal on Cash Collateral Use
N.G. PURVIS: Case Summary & 20 Largest Unsecured Creditors
NORTHERN OIL: Reports First Quarter Results
ORGANIC POWER: Taps CPA Luis R. Carrasquillo as Financial Advisor
ORGANIC POWER: Taps Godreau & Gonzalez Law as Special Counsel
PARAMOUNT RESOURCES: S&P Assigns 'B-' ICR, Outlook Positive
PATRICIAN HOTEL: Plan Exclusivity Extended Until May 13
PENN VIRGINIA: S&P Rates Proposed Senior Unsecured Notes 'B'
PIKEWOOD INC: Seeks Cash Collateral Access
PINK MONKEY: Seeks to Hire Wadsworth Garber as Bankruptcy Counsel
PUERTO RICO: July 13 Disclosure Statement Hearing Set
PURDUE PHARMA: Asks Court for Another 27-Day Opioid Suits Extension
QBS PARENT: S&P Alters Outlook to Stable, Affirms 'B-' ICR
QUALITY WELDING: $350K Sale of 2 90-Gal. LPG Storage Tank Approved
RAHMANIA PROPERTIES: Court Approves Second Amended Disclosures
RAPOWER-3 LLC: Receiver's Sale of Millard County Property Approved
RENEWABLE ENERGY GROUP: S&P Assigns 'B+' ICR, Outlook Stable
RESTLAND MEMORIAL: Case Summary & 19 Unsecured Creditors
REVLON INC: Citi's Loss Disrupts Syndicated Loan Industry
RICHARD YOUNG: Trustee's $170K Sale of Assets to Jones Approved
ROBERT F. TAMBONE: $3M Auction Sale of Wenham Asset Set for May 26
ROBERT F. TAMBONE: Files Notice of May 26 Wenham Property Auction
ROBERT F. TAMBONE: Order on Wenham Property Auction Hearing Issued
RONNA'S RUFF: Plan of Reorganization Confirmed by Judge
SAHAR P. MONTALVO: $1.35M Sale of Fishers Property to Snyders OK'd
SCOTTY'S HOLDINGS: Brewhouse's $110K Sale of Liquor License OK'd
SHAMROCK FINANCE: Seeks Continued Access to Cash Collateral
SHELTON BROTHERS: Sale Procedures for All Progressive Assets OK'd
SHELTON BROTHERS: Wins Cash Collateral Access Thru May 20
SHILOH INDUSTRIES: Court Okays Plan With $3M for Unsecured Payout
SOUND INPATIENT: S&P Rates New $150MM Incremental Term Loan 'B'
SRAM LLC: S&P Assigns 'BB-' Rating on New Sr. Sec. Credit Facility
STEWART SUPERMARKET: May 19 Hearing on Bid to Use Cash Collateral
TALLGRASS ENERGY: S&P Affirms 'BB-' Rating on Senior Unsecured Debt
TELEMACHUS LLC: Has Until June 1 to File Plan & Disclosures
THERMASTEEL INC: June 21 Plan Confirmation Hearing Set
TMMM MECH: Wins Access to Cash Collateral Thru May 13
TRANSOCEAN LTD: Reports First Quarter 2021 Results
TUESDAY MORNING: Names New CEO After Bankruptcy Exit, Losses
U.S.A. PARTS: $750K Sale of Kearneysville Property Denied as Moot
US GLOVE: May Use Cash Collateral Thru July 1
VISTRA OPERATIONS: S&P Rates $1.25BB Senior Unsecured Notes 'BB'
W RESOURCES: Seeks to Continue Hearing on Property Sale to May 19
WADE PARK: Wants Plan Exclusivity Extended Thru August 23
WEINSTEIN CO: Harvey Accuses Attorney Jose Baez of Legal Fee Fraud
WILDFIRE INC: Wants Final Cash Collateral Order Amended
WILLIAM E. ROBINSON: $50K Mansfield Asset Sale to Dark Horse OK'd
YELLOW CORP: Incurs $63.3 Million Net Loss in First Quarter
YI GROUP: S&P Upgrades ICR to 'B-', Outlook Stable
[*] Philadelphia Chapter 11 Filings Drop as Govt. Aid Arrives
[^] BOND PRICING: For the Week from May 3 to 7, 2021
*********
120 YORK: May Use Kinsley Cash Collateral Thru May 18
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Judge Henry W. Van Eck approved the stipulation between 120 York,
LLC and Kinsley Construction, Inc., pursuant to which Kinsley
consented to the Debtor's use of cash collateral to pay the
approved expenses, pursuant to the budget from the Petition Date
until the earlier of (a) 5 p.m. on May 18, 2021, or (b) the date on
which an Event of Default occurs.
The budget provided for $122,618 in total expenses over the
eight-month period, allocated as follows:
$5,375 for the month of May 2021,
$9,811 for the month of June 2021,
$66,243 for the month of July 2021,
$8,094 for the month of August 2021,
$12,833 for the month of September 2021,
$6,411 for the month of October 2021,
$6,044 for the month of November 2021, and
$7,807 for the month of December 2021.
The Debtor acknowledged that the outstanding principal balance on
the $15.912 million Loan as of the Petition Date was $8.54 million
and that the Debtor is obligated to pay Kinsley certain other
amounts under the terms of the Loan, including interest, attorneys'
fees, costs, late charges and other charges.
The Debtor also acknowledged that the Note, the Mortgage and the
Pre-Petition Obligations are valid, binding, and legally
enforceable in accordance with their terms, and that Kinsley has a
duly perfected, valid, first priority security interest in and lien
on the cash collateral to secure the Loan.
As adequate protection for the Debtor's use of cash collateral:
* the Debtor ratifies and confirms its grant to Kinsley,
effective as of the Petition Date, of first priority liens upon and
security interests in all of the Debtor's now existing and
hereafter acquired Cash Collateral, and
* any cash collateral used by the Debtor and not otherwise
secured shall constitute a cost and expense of administration in
the Debtor's Chapter 11 case and shall have a super-priority status
pursuant to section 364(c)(1) of the Bankruptcy Code. The amount
of cash collateral paid shall be paid ahead of all other costs and
expenses of administration including those specified in Sections
503(b) or 507(a) of Bankruptcy Code, except that such
administrative costs and expenses of Kinsley shall be pari passu
with allowed costs and expenses of professionals and fees owed to
the Office of the United States Trustee.
As additional adequate protection, the Debtor shall pay all
insurance premiums necessary to maintain adequate insurance
coverage on all of Debtor's assets and taxes when due.
A copy of the stipulated Order is available for free at
https://bit.ly/3vHmlWq from PacerMonitor.com.
Kinsley Construction, Inc. is represented by:
Scott F. Landis, Esq.
BARLEY SNYDER LLP
126 East King Street
Lancaster, PA 17602
Telephone: (717) 399-1503
About 120 York, LLC
120 York, LLC is a corporation engaged in owning and managing real
estate in Central Pennsylvania.
The Debtor filed a Chapter 11 petition (Bankr. M.D. Pa. Case No.
21-00945) on April 27, 2021. As of the Petition Date, the Debtor
estimated between $10 million and $50 million in both assets and
liabilities. William Hynes, manager, signed the petition.
Cunningham, Chernicoff & Warshawsky, P.C., represents the Debtor as
counsel.
1369 LONDONDERRY: Taps Camellia Yeroomian as Real Estate Agent
--------------------------------------------------------------
1369 Londonderry Estate, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Camellia Yeroomian, a real estate agent at The Agency.
The Debtor needs a real estate agent to assist in the sale of its
real property located at 1369 Londonderry Place, Los Angeles,
Calif.
Ms. Yeroomian will get a 3 percent commission if she is the sole
agent involved in the sale. If another agent is involved in the
sale, the Debtor will pay a 4 percent commission to be split
between the agents.
In court papers, Ms. Yeroomian disclosed that she is a
disinterested person as that term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Camellia Yeroomian
The Agency
23622 Calabasas Road, Suite 148
Calabasas, CA 91302
Tel: (310)245-0418
Email: camellia.yeroomian@theagency
About 1369 Londonderry
1369 Londonderry Estate, LLC, a West Hollywood, Calif.-based
company, filed for Chapter 11 bankruptcy protection (Bankr. C.D.
Calif. Case No. 20-20801) on Dec. 9, 2020. At the time of the
filing, the Debtor disclosed $30,000,000 in assets and $59,244,349
in liabilities. Judge Sheri Bluebond oversees the case. The
Debtor is represented by The Turoci Firm, Inc.
1900 ORCHARD: Gets OK to Hire Goldberg Weprin as Bankruptcy Counsel
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1900 Orchard Holdings, LLC received approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire
Goldberg Weprin Finkel Goldstein, LLP as its bankruptcy counsel.
The firm will render these services:
a. provide the Debtor with all necessary representation in
connection with its Chapter 11 case as well as its responsibilities
under the Bankruptcy Code;
b. represent the Debtor in all proceedings before the
bankruptcy court and the Office of the U.S. Trustee;
c. review and prepare legal papers and file adversary
proceedings;
d. contest the lender's entitlement to default interest and
other charges; and
e. render all other legal services required by the Debtor to
obtain confirmation of a plan of reorganization based upon
anticipated cure and reinstatement of the mortgage and resolution
of other claims.
The firm's billing rates for bankruptcy matters are as follows:
Partner $575 per hour
Associates $275 - $425 per hour
Goldberg received a retainer of $20,000 from the Debtor.
As disclosed in court filings, Goldberg does not hold an interest
adverse to the Debtor and its bankruptcy estate.
The firm can be reached through:
Kevin J. Nash, Esq.
Goldberg Weprin Finkel Goldstein, LLP
1501 Broadway 22nd Floor
New York, NY 10036
Tel:(212) 221-5700
Email: knash@gwfglaw.com
About 1900 Orchard Holdings
1900 Orchard Holdings LLC, a single asset real estate debtor based
in Brooklyn, N.Y., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 21-40529) on Feb. 28,
2021. At the time of the filing, the Debtor had between $1 million
and $10 million in both assets and liabilities. Judge Elizabeth S.
Stong oversees the case.
Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP is
the Debtor's legal counsel.
Wells Fargo Bank, National Association, as trustee for the benefit
of the holders of CFCRE 2016-C7 Mortgage Trust Commercial Mortgage
Pass-Through Certificates, Series 2016-C7, is represented by
Christopher P. Schueller, Esq., at Buchanan Ingersoll & Rooney PC.
335 LAKE AVENUE: $9.38M Sale of Aspen Property to Black Approved
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Judge Joseph G. Rosania, Jr., of the U.S. Bankruptcy Court for the
District of Colorado amended his order authorizing 335 Lake Avenue,
LLC's sale of the real estate located at 335 Lake Avenue, in Aspen,
Colorado, to Steven Black for $9.375 million, under the terms of
the Purchase Agreement and Settlement Agreement, nunc pro tunc to
April 7, 2021.
The sale is free and clear of any interest.
The U.S. Bank's lien on the property, which the Debtor disputes,
will attach to the proceeds of the sale, which will be deposited in
an account earning the highest interest rate possible while still
being compliant with 11 U.S.C. Section 345.
Within seven days of the Closing on the Property, the Debtor and
Mr. Black will cause Adversary Proceeding No. 20-1145-JGR to be
dismissed with prejudice.
The plan-confirmation process will be fast-tracked to address the
adequate-protection concern of U.S. Bank, as detailed in a separate
minute order.
Pursuant to Bankruptcy Rule 6004(h), the Court finds cause to order
that the sale will not be stayed.
The Court's Oral Findings of Fact and Conclusions of Law set forth
in the hearings on April 1, 2021, and on April 27, 2021, are
incorporated in the Order by reference.
About 335 Lake Avenue
335 Lake Avenue, LLC is a single asset real estate (as defined in
11 U.S.C. Section 101(51B)).
On April 1, 2020, 335 Lake Avenue filed a voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo.
Case No. 20-12378). James K. Daggs, Debtor's manager, signed the
petition. At the time of the filing, Debtor disclosed total
assets
of $10 million to $50 million. Judge Joseph G. Rosania Jr.
oversees the case.
Debtor has tapped Weinman & Associates, P.C. as its bankruptcy
counsel and Allen Vellone Wolf Helfrich & Factor, P.C. and Klein
Cote Edwards Citron, LLC as its special counsel.
3MB LLC: June 29 Amended Plan Confirmation Hearing Set
------------------------------------------------------
On Feb. 4, 2021, debtor 3MB, LLC filed with the U.S. Bankruptcy
Court for the Eastern District of California a First Amended
Disclosure Statement and First Amended Plan of Reorganization.
On May 4, 2021, Judge Rene Lastreto, II approved the First Amended
Disclosure Statement and ordered that:
* June 15, 2021, is fixed as the last day to file acceptance
or rejection of the First Amended Plan.
* June 15, 2021, is fixed as the last day to file any
objection to confirmation of the First Amended Plan.
* June 22, 2021, is fixed as the last day to file any replies
to objections to confirmation of the First Amended Plan.
* June 22, 2021, is fixed as the last day for the Debtor to
submit a worksheet for determining acceptance of First Amended Plan
of Reorganization.
* June 29, 2021, is the hearing on confirmation of the First
Amended Plan and on such objections as may be made to
confirmation.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/3f730Ya from PacerMonitor.com at no charge.
Attorney for the Debtor:
Leonard K. Welsh
Law Offices of Leonard K. Welsh
4550 California Avenue, Second Floor
Bakersfield, California 93309
Telephone:(661)328-5328
Email: lwelsh@lkwelshlaw.com
About 3MB LLC
3MB LLC owns a mixed-use shopping center, commonly referred to as
the Village at Towne Center, in Bakersfield, California. The
Shopping Center comprises of four buildings, two of which include
second-story office space. The Shopping Mall has a current value
of $12 million.
3MB first sought bankruptcy protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 18-14663) on Nov. 19,
2018. The Debtor again sought Chapter 11 protection (Bankr. E.D.
Cal. Case No. 20-12642) on Aug. 11, 2020. Robert Bell, Esq.,
signed the petition. At the time of the filing, the Debtor had
total assets of $12,276,441 and liabilities of $10,249,027. Judge
Jennifer E. Niemann oversees the case. The Law Office of Leonard
K. Welsh is Debtor's legal counsel.
AGILE THERAPEUTICS: Incurs $17.1 Million Net Loss in First Quarter
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Agile Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $17.13 million on $116,000 of net revenues for the three months
ended March 31, 2021, compared to a net loss of $7.88 million on
zero revenue for the three months ended March 31, 2020.
As of March 31, 2021, the Company had $59.48 million in total
assets, $24.42 million in total liabilities, and $35.05 million in
total stockholders' equity.
"In December 2020, we began our initial commercial shipments of
Twirla to wholesalers, who have been working down their inventories
during the first quarter of 2021. As wholesalers complete the
inventory work-down, we expect product revenue from wholesalers
will more closely reflect script demand growth for Twirla at the
retail level. We are encouraged by recent trends, which we believe
reflect our anticipated momentum and show steady, increasing demand
for our product and a growing base of prescribers," said Chairman
and Chief Executive Officer, Al Altomari. "We continue to be
optimistic about Twirla's trajectory and are encouraged by the
response to our product, the first and only weekly contraceptive
patch that delivers a low dose of estrogen."
As of March 31, 2021, Agile had $40.1 million of cash, cash
equivalents and marketable securities, compared to $54.5 million as
of Dec. 31, 2020.
As of March 31, 2021, Agile had 88,263,741 shares of common stock
outstanding.
Financial Update
* Agile has $25 million of capital potentially available through
its loan facility with Perceptive Advisors, including a tranche of
$15 million in 2021, and a
tranche of $10 million, which will be available through
June 2022, both contingent on achieving a pre-determined revenue
target.
* Additionally, the Company has the potential to access
additional capital through its existing at-the-market arrangement,
under which Agile may sell up to an aggregate
of $50 million in gross proceeds through the sale of
shares of common stock.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1261249/000155837021005699/agrx-20210331x10q.htm
About Agile
Agile Therapeutics, Inc. is a forward-looking women's healthcare
company dedicated to fulfilling the unmet health needs of today's
women. The Company's product and product candidates are designed
to provide women with contraceptive options that offer freedom from
taking a daily pill, without committing to a longer-acting method.
Our initial product, Twirla, (levonorgestrel and ethinyl
estradiol), a transdermal system, is a non-daily prescription
contraceptive.
Agile reported a net loss of $51.85 million for the year ended Dec.
31, 2020, compared to a net loss of $18.61 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $73.06
million in total assets, $23.73 million in total liabilities, and
$49.33 million in total stockholders' equity.
Iselin, New Jersey-based Ernst & Young LLP issued a "going concern"
qualification in its report dated March 1, 2021, on the
consolidated financial statements for the year ended Dec. 31, 2020,
citing that the Company has generated losses since inception, used
substantial cash in operations, anticipates it will continue to
incur net losses for the foreseeable future and requires additional
capital to fund its operating needs beyond 2021.
ALGON CORPORATION: June 16 Plan Confirmation Hearing Set
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On April 29, 2021, the U.S. Bankruptcy Court for the Southern
District of Florida conducted a hearing to consider approval of the
disclosure statement filed by Algon Corporation.
On May 4, 2021, Judge Robert A. Mark approved the disclosure
statement and ordered that:
* June 16, 2021, at 2:00 p.m., by Zoom Meeting is the hearing
to consider confirmation of the plan.
* May 26, 2021, is the last day for filing and serving fee
applications.
* June 2, 2021, is the Debtor's deadline for serving notice of
fee applications.
* June 2, 2021, is the last day for filing and serving
objections to confirmation of the plan.
* June 2, 2021, is the last day for filing a ballot accepting
or rejecting the plan.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/3hd83su from PacerMonitor.com at no charge.
Attorneys for Debtor:
Aaronson Schantz Beiley P.A.
Geoffrey S. Aaronson, Esq.
Tamara D. McKeown, Esq.
One Biscayne Tower
2 S. Biscayne Blvd, 34th Floor
Miami, Florida 33131
Tel: 786.594.3000
Fax: 305.424.9336
E-mail: gaaronson@aspalaw.com
tmckeown@aspalaw.com
About Algon Corporation
Miami, Fla.-based Algon Corporation -- https://www.algon.com/ -- is
a worldwide distributor of raw materials and industrial parts for
the pharmaceutical, cosmetic, and food industries.
Algon Corp sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 19-18864) on July 1, 2019. In the
petition signed by its president, Alfredo Suarez, the Debtor was
estimated to have assets and liabilities of less than $10 million.
The case is assigned to Judge Robert A. Mark.
The Debtor is represented by Geoffrey S. Aaronson, Esq., at
Aaronson Schantz Beiley P.A.
ALLIE'S PARTY: Seeks to Use $80,000 of First Bank et al. Cash
-------------------------------------------------------------
Allie's Party Equipment Rental, Inc. sought permission from the
Bankruptcy Court to use cash collateral to pay all regular expenses
totaling $80,309, pending a noticed hearing on the Debtor's motion.
First-Citizens Bank & Trust Company and the U.S. Small Business
Administration potentially have blanket liens on the Debtor's
assets, including cash collateral.
The Debtor urgently needed to pay certain expenses to preserve its
business as a going concern, expenses such as weekly payroll,
payroll processing charges, employee health insurance, rent for the
Debtor's two operational facilities and its storage facility,
business and vehicle insurance, website hosting, and various
utilities. Similarly, rent, fuel, and utility expenses must be
paid to operate the business. The list of critical expenses
attached to the motion disclosed $18,888 in outstanding payroll for
each of the week ending April 30, 2021, and May 7, 2021 that needed
to be paid by May 15, 2021. Other critical expenses include May
2021 rent payable to N & B Enterprises for $12,849 and to GenMyk,
LLC for $7,725, among others.
The Debtor said it is willing to make adequate protection payments
to First-Citizens for $9,498, which is the normal monthly payment
due on or about May 15, 2021 for various vehicles financed by First
Citizens Bank. The Debtor said it is not opposed to making
adequate protection payments to the SBA. The first ordinary course
payment to the SBA on account of the COVID-19-related Economic
Injury Disaster Loan, however, is not due until June of 2021.
Paying SBA at this time would appear to be premature, the Debtor
said.
The Debtor projected approximately $150,000 of revenues for May
2021 so that the amount that would be spent for the proposed
expenses will be replaced during May 2021 through ordinary course
business operations.
A copy of the Motion, together with the list of critical expenses
(as Exhibit 3), is available for free at https://bit.ly/3f5w8ia
from PacerMonitor.com.
The secured creditors may be reached through their
representatives:
Mario Ramiro
Financial Services Manager/Vice President
First-Citizens Bank & Trust Company
Email: mario.ramiroii@firstcitizens.com
Juhi Patel
Case Manager, Office of Disaster Assistance
U.S. Small Business Administration
Telephone: (202) 934-2475
Email: Juhi.Patel@sba.gov
About Allie's Party Equipment Rental
Allie's Party Equipment Rental, Inc., which offers party equipment
rental services in 130 Vallecitos De Oro, San Marcos, California,
filed a Chapter 11 petition (Bankr. S.D. Cal. Case No. 21-01804) on
April 30, 2021. The petition, signed by Michael B. Nicholson,
president, disclosed $1,055,520 in total assets and $5,143,074 in
total liabilities.
Curry Advisors, A Professional Law Corporation, represents the
Debtor as counsel. Judge Christopher B. Latham is assigned to the
case. Jean Goddard is appointed as the Debtor's Subchapter V
Trustee.
ANTECO PHARMA: Case Summary & 3 Unsecured Creditors
---------------------------------------------------
Debtor: Anteco Pharma, LLC
920 Lexington Way
Waunakee, WI 53597
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Western District of Wisconsin
Case No.: 21-11012
Judge: Hon. Catherine J. Furay
Debtor's Counsel: Kristin J. Sederholm, Esq.
KREKELER STROTHER, S.C.
2901 West Beltline Highway
Suite 301
Madison, WI 53713
Tel: 608-258-8555
Fax: 608-258-8299
E-mail: ksederho@ks-lawfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Howard R. Teeter, authorized member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/A3OAKMA/ANTECO_PHARMA_LLC__wiwbke-21-11012__0001.0.pdf?mcid=tGE4TAMA
BALLOON BOY: Court Approves Lease Agreement With High Properties
----------------------------------------------------------------
Judge Michael G. Williamson of the U.S. Bankruptcy Court for the
Middle District of Florida authorized Balloon Boy, Inc. (i) to
enter into the Lease Agreement with High Properties, and (ii) to
lease the premises located at 6497 Parkland Drive, Suite B (107),
in Sarasota, Florida 34243, on the terms and conditions identified
in the Lease Agreement and the Motion.
Richard J. Cole, III, Esq. is directed to serve a copy of the Order
on interested parties who do not receive service by CM/ECF and file
a proof of service within three days of entry of the Order.
About Balloon Boy Inc.
Balloon Boy, Inc. sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-09491) on Dec.
31, 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.
The Debtor tapped Cole & Cole Law, P.A. and Olivo Small Business
CPA Solutions as its legal counsel and accountant, respectively.
BAUSCH HEALTH: S&P Alters Outlook to Negative, Affirms 'B+' ICR
---------------------------------------------------------------
S&P Global Ratings affirmed the 'B+' issuer credit rating on Bausch
Health Cos. Inc. (BHC) and revised its outlook to negative from
stable. This is driven by a combination of higher-than-expected
opening leverage and a less diversified business mix for Bausch
Pharma.
The negative outlook reflects the possibility for a one-notch
downgrade when the company consummates the spin-off transaction,
given that Bausch Pharma's adjusted leverage will likely stay above
5x for at least two years post spin, as well as an uncertain
financial policy under the new management team.
Background information: In 2020, BHC announced its intention to
spin off its eye-care business. The remaining entity, which we
refer to as "Bausch Pharma" in this report will focus on
gastroenterology, aesthetics/dermatology, neurology, and
international pharmaceuticals.
The outlook revision follows BHC's announcement that Bausch
Pharma's opening leverage will be roughly 1x higher than the
previous guidance. BHC raised its leverage target for Bausch Pharma
to ~6.5x-6.7x at the time of the proposed spin-off, roughly 1x
higher than the previous target of mid-5x. S&P expects the higher
opening leverage would result in Bausch Pharma's pro forma adjusted
leverage staying above 5x for at least two years following the
spin-off, assuming 0.7x deleveraging per year and no material
capital deployment such as dividends, share repurchases, or
acquisitions.
Bausch Pharma will have a weaker business profile. The current plan
is for BHC to spin off its eyecare unit (roughly 44% of 2019
revenue) as a separate entity. In S&P's view, this leaves the
remaining entity with less diversification and a higher reliance on
its top product, Xifaxan, which S&P estimates would account for
approximately 30% of pro forma revenue and approximately 40% of pro
forma EBITDA.
S&P said, "We are awaiting more information on Bausch Pharma's
business and financial strategy, but we think the need for
acquisitions will increase as Xifaxan comes closer to patent
expiry.While the new management team has not elaborated on Bausch
Pharma's strategy, we think it is likely that the company will
execute debt-funded acquisitions ahead of the 2028 Xifaxan patent
expiry, given the unproven pipeline and pressure to protect against
potential topline decline."
Bausch Pharma is a sizable pharmaceutical company with stable
near-term free cash flow generation ability partially offsetting
these weaknesses are the fact that the remaining entity is a
sizable pharmaceutical company with roughly $4.6 billion in pro
forma revenue and $2.4 billion in pro forma EBITDA (assuming no
further divestitures). It is also well diversified beyond Xifaxan,
and Xifaxan should have strong patent protection through 1/1/2028.
Importantly, S&P thinks Bausch Pharma could generate annual free
cash flow in the $900 million-$1 billion range over the next few
years, which should help reduce leverage and create capacity for
acquisition(s). All of these characteristics compare favorably
against other 'B'-rated peers.
The negative outlook reflects the possibility for a one-notch
downgrade, given that Bausch Pharma's adjusted leverage will likely
stay above 5x for at least two years post-spin, as well as an
uncertain financial policy under the new management team.
S&P said, "We could lower the rating, likely by one notch to 'B',
if we think Bausch Pharma's S&P Global Ratings-adjusted leverage
would stay above 6x and its free cash flow-to-debt ratio stay below
5% on a sustained basis. The most likely path for a downgrade is an
unexpected deterioration for Xifaxan and/or the ortho-dermatology
business. Another path could be a more aggressive financial policy
under the new management team.
"We could consider revising the outlook back to stable if we gain
comfort that the new management team will balance the need to
sustain long-term topline growth (likely through acquisitions) with
maintaining financial discipline. In that case, we could change the
issuer credit rating to 'B+/Stable' given Bausch Pharma's sizable
scale and business stability."
BAY HARBOR: $17K Cash Sale of 2014 Mercedes-Benz E350 Approved
--------------------------------------------------------------
Judge Edward L. Morris of the U.S. Bankruptcy Court for the
Northern District of Texas authorized Bay Harbor Investment Group,
LLC's sale of its 2014 Mercedes-Benz E350 to Pompano Ford Lincoln
for $17,000 cash.
The 14-day stay imposed by Federal Rule of Bankruptcy Procedure
6004(h) is waived.
The Debtor is authorized to execute any instruments necessary to
effectuate the Transaction and transfer of the Automobile to
Purchaser pursuant to the Order in accordance with the Motion.
About Bay Harbor Investment Group, LLC
Based in Midland, Texas, Bay Harbor Investment Group, LLC
primarily
engages in renting and leasing real estate properties.
Bay Harbor Investment sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 20-42757) on Aug. 31,
2020. Bay Harbor Investment President Thomas Kelly signed the
petition.
At the time of the filing, Debtor had estimated assets of between
$10 million and $50 million and liabilities of the same range.
Judge Edward L. Morris oversees the case. Crowe & Dunlevy, P.C.
is
Debtor's legal counsel.
BISHOP METAL: Case Summary & 14 Unsecured Creditors
---------------------------------------------------
Debtor: Bishop Metal Inc.
422 Hays Avenue, Rear
Pittsburgh, PA 15210
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 21-21149
Debtor's Counsel: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
938 Penn Avenue, 5th Fl.
Suite 501
Pittsburgh, PA 15222
Tel: 412-232-0930
Fax: 412-232-3858
E-mail: dcalaiaro@c-vlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jane Bishop, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/IJCF5WY/Bishop_Metal_Inc__pawbke-21-21149__0001.0.pdf?mcid=tGE4TAMA
BM318 LLC: $992K Sale of $118-Acre Parker County Land Approved
--------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas authorized BM318, LLC's sale of 118.34 acres of
unimproved land located in Parker County, Texas, to Centurion
American Acquisitions, LLC, for approximately $992,119 cash at
closing.
The Contract (by the agreement of the Debtor and the Buyer) is
amended to delete any term or provision that permits, authorizes or
enables the Buyer (or any assignee, successor or assign of the
Buyer) to assume all or any part of the unpaid balance of the debt
evidenced by the promissory note dated May 3, 2019, signed by the
Debtor and payable to the order of Southern Star Capital, LLC
("SSC") in the original principal amount of $1.65 million.
The Contract is also amended by agreement to delete any term or
provision that permits, authorizes or enables the Buyer (or any
assignee, successor or assign of the Buyer) to purchase the
Property subject to, or without paying in full, the lien securing
payment of the BM318 Note, including the lien created by that
certain deed of trust signed by Debtor on May 3, 2019, and recorded
under Clerk's File No. 2019-18475 in the Official Public Records of
Parker County, Texas.
The Contract is also amended, by agreement, to reflect the
following: (a) there is no Certificate of Deposit owned by the
Debtor and issued by Citizens Bank, and there is no other form of
deposit account with Citizens Bank in which the Debtor owned or
owns an interest; (b) the credit to be applied against the unpaid
balance of the BM318 Note for a fund of $165,000 delivered by the
Debtor to SSC for placement into a Certificate of Deposit will be
applied to that portion of the sale proceeds payable to SSC, and no
part of such credit will reduce the amount payable under the terms
of the Order to Citizens Bank; and (c) any release of the Debtor's
liability for all or any part of the unpaid balance of the BM318
Note is contingent upon the payment in full of the amounts
described in the Order to SSC and to Citizens Bank.
All claims in or against the Property will attach to the net
proceeds arising from the sale. All issues regarding the extent,
validity, perfection, priority and enforceability of the Deed of
Trust, the BM318 Note and/or the collateral assignment of those
claims and liens to Citizens Bank have been fully and finally
resolved by the parties according to the terms of the Order. Any
other issues regarding the extent, validity, perfection, priority
and enforceability of any remaining claims with respect to any net
sale proceeds will be determined by the Court upon proper
application at a later date.
At the closing on the sale of the Property to Buyer, the title
company and/or closing agent are ordered to pay the following sums
and amounts directly to the parties indicated below and according
to the wiring instructions or other delivery instructions provided
by such parties (or their counsel) to the title company or closing
agent:
(1) all amounts owed to Parker CAD for 2020 ad valorem real
property taxes;
(2) To Citizens Bank, the full and complete SSC Loan Payoff
will be paid as instructed; and
(3) To SSC, the remaining balance owed on the BM318 Note
Payoff (after deducting what is paid to Citizens Bank for the SSC
Loan Payoff) will be paid as instructed.
All of the remaining net proceeds of sale will be paid and
delivered to Debtor through its counsel, Joyce W. Lindauer
Attorney, PLLC, l412 Main Street, Suite 500, Dallas, Texas 75202.
Any and all parties asserting liens or encumbrances against the
Property shall, to the extent necessary, execute contemporaneously
with closing on the Contract (or as soon as reasonably practical
thereafter as requested by the Buyer), any and all documents,
releases or instruments necessary to release, remove or terminate
the lien, liens or encumbrances which have been asserted against
the Property, which releases will be held in trust by the title
company or closing agent until such time as the amounts payable
under the terms of this Order are fully and finally paid with the
exception of Parker CAD whose liens that secure all amounts
ultimately owed for year 2021 ad valorem property taxes will remain
attached to the Property and become the responsibility of the
Buyer.
About BM318 LLC
BM318, LLC is a Single Asset Real Estate (as defined in 11 U.S.C.
Section 101(51B)) based in Aledo, Texas.
BM318, LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Tex. Case No. 20-42789) on Sept. 1, 2020. The
petition was signed by Tim Barton, president. At the time of the
filing, the Debtor had estimated assets of between $1 million and
$10 million and liabilities of the same range. Judge Mark X.
Mullin oversees the case. Joyce W. Lindayuer Attorney, PLLC, is
the Debtor's legal counsel.
BOY SCOUTS OF AMERICA: Sidley Austin Beats Representation Challenge
-------------------------------------------------------------------
Law360 reports that a Delaware federal judge has upheld a
bankruptcy court decision that allowed Sidley Austin LLP to serve
as the Boy Scouts of America's counsel in its Chapter 11 case,
rejecting claims from the Scouts' insurer that the firm had a
conflict of interest.
Century Indemnity Co. had argued that the bankruptcy court made
legal errors in May 2020 when it approved the retention of Sidley
nunc pro tunc — meaning retroactively to the beginning of the
case — because the firm was then representing Century in three
other matters.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BURN FITNESS: Wins Cash Collateral Access Thru May 31
-----------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan,
Southern Division, has authorized Burn Fitness, LLC and its related
debtor entities, Burn Fitness-2, LLC and Burn Fitness-3, LLC to use
cash collateral on an interim basis through May 31, 2021 in
accordance with the budget, with a variance of five percent.
The Debtors require use of cash collateral to pay their
post-petition obligations of rent, payroll, compensation to
independent contractors, and obtain necessary supplies and services
required to operate their businesses. The Debtors have been
severely impacted by the COVID-19 pandemic, which resulted in total
shut-downs of their health and fitness facilities, and then
significantly reduced operations pursuant to state regulations
where they could only operate with 25% of their normal capacity.
Comerica Bank has a first position perfected security interest
against all of the Debtors' assets, including the Debtors'
pre-petition Cash Collateral. The loan obligations to Comerica are
supported by various loan documents which include Security
Agreements, and are guaranteed by, cross-collateralized and
cross-defaulted by and among each of the Debtors, as well as
guaranteed by Alyssa Tushman, Mark Dufresne and Burn Fitness
Holdings LLC.
The U.S. Small Business Administration has a second position
perfected security interest against certain of the Debtors' assets,
including Debtors' pre-petition Cash Collateral.
These obligations to Comerica and the SBA are evidenced by:
A. Burn Fitness, LLC:
(1) Comerica Loan (SBA7(a) Loan), Obligation No. 9895461407-26
dated August 1, 2018 in the original amount of $790,000; UCC-1
Financing Statement filed on July 2, 2014, Filing No. 2014097721-4,
UCC-3 Continuation Statement filed February 2, 2019, Filing No.
20190202000007-1; and UCC-1 Financing Statement filed August 6,
2018, Filing No. 20180807000192-8. The present balance due on this
loan (as of April 30, 2021) is approximately $551,874.36. The
monthly payment is $8771.00.
(2) U.S. Small Business Administration "SBA Disaster Loan"
dated September 1, 2020 in the original amount of $150,000. UCC-1
Financing Statement filed on September 10, 2020, Filing No.
20200910000353-5. The present balance due on this loan is $150,000.
The first monthly payment due on this loan is September 1, 2021 in
the amount of $731.
B. Burn Fitness-2, LLC:
(1) Comerica Loan (SBA7(a) Loan) Obligation No. 9895370970-26
dated June 23, 2014 in the original amount of $841,000; as amended
on February 21, 2015 to the maximum amount of $853,000; UCC-1
Financing Statement filed on July 2, 2014, Filing No. 014097735-3,
UCC-3 Continuation Statement filed February 2, 2019, Filing No.
20190202000006-2. The present balance due on this loan (as of April
30, 2021) is approximately $442,245.61. The monthly payment is
$9098.16.
(2) U.S. Small Business Administration "SBA Disaster Loan"
dated September 1, 2020 in the original amount of $150,000.00. UCC1
Financing Statement filed on September 10, 2020, Filing No.
20200910000365-0. The present balance due on this loan is $150,000.
The first monthly payment due on this loan is September 1, 2021 in
the amount of $731.
C. Burn Fitness-3, LLC:
(1) Comerica Term Note (SBA7(a) Loan), Obligation No.
9895444619-26, dated July 15, 2017 in the original amount of
$1,523,000; UCC-1 Financing Statement filed on July 28, 2017,
Filing No. 201707310000092-8. The present balance due on this loan
(as of April 30, 2021) is approximately $1,024,104.51. The monthly
payment is $16,153.78.
(2) U.S. Small Business Administration, "SBA Disaster Loan"
dated September 1, 2020 in the original amount of $150,000. UCC-1
Financing Statement filed on September 10, 2020, Filing No.
20200910000364-1. The present balance due on this loan is $150,000.
The first monthly payment due on this loan is September 1, 2021 in
the amount of $731.
The Debtors are authorized to use Cash Collateral in these
amounts:
Burn Fitness, LLC : $106,522.17
Burn Fitness 2, LLC: $95,391.74
Burn Fitness 3, LLC: $94,240.24
In addition to its existing security interests and liens, as
adequate protection of the Bank's interest in the Prepetition
Collateral and the Cash Collateral, the Debtors grant the Bank
valid and automatically perfected first priority replacement liens
and security interests in and upon all of the properties and assets
of the Debtors, effective as of the Petition Date.
To the extent that adequate protection is insufficient to
adequately protect the Bank from any diminution of its interest,
the Bank is granted a super priority administrative expense claim,
subject to the Carve Out for the Debtors' unpaid attorney and
accountant's fees, up to the amounts stated in the Budget, which
have been incurred and/or accrued post-petition.
As adequate protection, the SBA is granted a replacement lien on
the Debtors' post-petition tangible and intangible personal
property. The replacement lien will be valid without regard to
applicable federal, state or local filing or recording statutes,
provided that SBA may, but need not, take such steps as it deems
necessary to comply with federal, state or local statutes, and the
automatic stay is modified accordingly.
The Debtors will also make adequate protection payments to Comerica
beginning on May 1, 2021 and continuing on the first day of each
consecutive month thereafter, until the effective date of a
confirmed plan of reorganization, the dismissal, liquidation or
conversion of a particular Debtor's chapter 11 case, or pursuant to
further order of the Court, in these monthly payment amounts:
Burn Fitness, LLC: $8,771.00
Burn Fitness 2, LLC: $9,098.16
Burn Fitness 3, LLC: $16,153.78
A final hearing on the Cash Collateral Motion is scheduled for May
25 at 11 a.m.
A copy of the order is available for free at https://bit.ly/2RCW5he
from PacerMonitor.com.
About Burn Fitness, LLC
Burn Fitness operate health and fitness centers in three separate
locations in Michigan -- Rochester, Clawson and and Livonia. Burn
Fitness focuses on personal service and a high-quality experience.
Burn Fitness and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 21-43828) on
April 30, 2021. In the petition signed by Alyssa Tushman, manager
and authorized agent, each of the Debtors disclosed up to $1
million in assets and up to $10 million in liabilities.
Judge Mark A. Randon oversees the case.
Julie Beth Teicher, Esq. at MADDIN, HAUSER, ROTH & HELLER, P.C. is
the Debtor's counsel.
CANTERA COURT: May Use Cash Collateral Thru June 30
---------------------------------------------------
Judge David R. Jones authorized Cantera Court Complex, Inc., to use
cash collateral on an interim basis from April 30, 2021, through
and including June 30, 2021, in accordance with the budget.
The Court ruled that:
* Falcon International Bank is granted a replacement lien on
all income of the Debtor to include contract for deed payments,
rents, and all accounts receivable acquired by the Debtor since the
Petition Date. Falcon is ratified and confirmed in its lien on the
Debtor's contract for deed payments, rents and all accounts
receivable perfected by the Falcon pre-petition, with such lien and
replacement lien to continue until further Court order, or until
the confirmation of a Plan of Reorganization.
* the Debtor will pay Falcon (1) $23,779 and (2) $8,599 -- for
tax and insurance escrow -- monthly beginning May 1, 2021 and
continuing thereafter on the first of each month until a Plan is
confirmed or until further Court order. Falcon will apply these
amounts to (1) the payment of interest only on the Commercial Loan
secured by the Cantera Court Complex office building located at
9802 McPherson, Laredo, Texas, and (2) the payment of the
pre-default contractual principal and interest on the Debtor's
Residential Loan owed to Falcon.
* the Falcon Adequate Protection Payments and tax and
insurance escrow will be reduced if a sale of property that is
pre-petition collateral to the Loans is approved by the Court and
Falcon's lien is paid in full at closing of said sale during the
course of the Debtor's case.
Final hearing on the motion is set for June 30, 2021 at 9 a.m., by
telephone and video conference, or as set by the Court.
Parties-in-interest objecting to the relief sought in the motion
must serve and file written objections no later than two business
days before the final hearing.
A copy of the Interim Order is available for free at
https://bit.ly/3eYVChq from PacerMonitor.com.
About Cantera Court Complex, Inc.
Cantera Court Complex, Inc. is the owner and operator of Cantera
Court Complex, one of the premier multi-tenant retail centers in
Laredo, Texas. It also owns six residential properties doing
business as BMW Creative Homes that are under contracts for deed.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-50044) on April 30,
2021. In the petition signed by Eric Lee Benavides, director, the
Debtor disclosed up to $10 million in both assets and liabilities.
Catherine S. Curtis, Esq. at PULMAN, CAPPUCCIO & PULLEN, LLP is the
Debtor's counsel.
Falcon International Bank, as Lender, is represented by:
Richard E. Haynes III
Trevino Haynes, PLLC
3910 E. Del Mar Blvd., Suite 107
Laredo, TX 78041-6661
E-mail: rhaynes@thlaw.us
CARBONYX INC: Competing Proponents Say Sunshine Plan Unconfirmable
------------------------------------------------------------------
Frank Rango, Bhavna Patel, River Partners 2012-CBX LLC, C6 Ardmore
Ventures, LLC, Ingo Wagner, and Harmir Realty Co. LP (collectively,
the "Competing Proponents"), object to the Disclosure Statement
filed by Creditor Law Office of Van Shaw and Sunshine Recycling,
Inc. (the "Sunshine Proponents") for Debtor Carbonyx, Inc.
As reported in the TCR, a Combined Plan of Reorganization and
Disclosure Statement for debtor Carbonyx, Inc., was filed by
unsecured creditor Law Office of Van Shaw and investor Sunshine
Recycling, Inc., on March 15, 2021. The Plan proposes that
Sunshine Recycling, Inc., will become the new equity owner of the
Debtor. The Reorganized Debtor ("Carbonyx II") will own and
operate a new scrap metal recycling plant adjacent to the former
premises of the Debtor in Oklahoma, using
some or all of the Debtor's machinery and equipment. This new
scrap metal business will generate the revenue to fund the Plan. A
copy of the Sunshine Plan is available at https://bit.ly/2QlvswJ
from PacerMonitor.com.
The Competing Proponents aver that:
* The Competing Proponents have not seen any evidence that
Shaw is indeed a creditor of the Debtor although the Sunshine Plan
purports to be filed by the Law Office of Van Shaw as an "Unsecured
Creditor" of the Debtor in the alleged amount of $750,000.
* The Sunshine Disclosure Statement should not be approved
because the Sunshine Plan on its face is not confirmable.
* Shaw cannot be affected by the reorganization process and
thus should not be considered a party in interest if Shaw is not a
creditor. As a result, the Sunshine Plan cannot be considered by
the Court.
* Even if the alleged Shaw claim is an allowed claim, there is
no basis to classify it separately from other general unsecured
claims, other than the improper basis of gerrymandering.
* There is no basis for classifying the Shaw claim separately
from other general unsecured claims other than to create an
impaired class that will approve the Sunshine Plan. Therefore, the
Sunshine Plan is patently unconfirmable.
A full-text copy of Competing Proponents' objection to Sunshine
Proponents' Disclosure Statement dated May 4, 2021, is available at
https://bit.ly/3ur9Fmp from PacerMonitor.com at no charge.
Counsel for Competing Proponents:
FROST BROWN TODD LLC
Mark A. Platt
mplatt@fbtlaw.com
2101 Cedar Springs Road, Suite 900
Dallas, Texas 75201
Tel: (214) 580-5852
Fax: (214) 545-3473
About Carbonyx Inc.
Plano, Texas-based Carbonyx, Inc., filed a Chapter 11 petition
(Bankr. E.D. Tex. Case No. 20-40494) on Feb. 18, 2020. In the
petition signed by Hasmukh Patel, authorized agent, the Debtor was
estimated to have up to $50,000 in assets and $10 million to $50
million in liabilities.
Judge Brenda T. Rhoades oversees the case. Eric A. Liepins, P.C.,
serves as the Debtor's bankruptcy counsel.
On Nov. 10, 2020, Linda Payne was appointed as Chapter 11 trustee
in the Debtor's case. The trustee is represented by the Law
Offices of Bill F. Payne, PC.
CARBONYX INC: Trustee Questions Sunshine Plan's Feasibility
-----------------------------------------------------------
Linda S. Payne, Chapter 11 Trustee, objects to the Disclosure
Statement of Law Offices of Van Shaw and Sunshine Recycling, Inc.
(the "Sunshine Proponents") for debtor Carbonyx, Inc.
The Chapter 11 Trustee objects to the Disclosure Statement in that
it fails to provide sufficient information from which any creditor
or investor would be able to determine whether the Plan is
feasible. The Debtor's Plan cannot be confirmed because it is not
feasible for, at least, the following reasons:
* The plan fails to sufficiently identify funding, or how and
when creditors and parties in interest, will be paid.
* The Disclosure Statement makes no effort to value those
assets and provide the creditors with a liquidation analysis to
determine what is in their best interest.
* The Disclosure Statement makes reference to cash payments as
soon as reasonably possible after the Effective Date. A typical
investor would need to understand and interpret funding and
projected payments.
The Trustee notes that the Disclosure Statement contains no
projections as to the viability of the company to perform.
Accordingly, she believes it is impossible for a creditor to
determine the feasibility of the Reorganized Debtor's ability to
make the required payments.
A full-text copy of the Chapter 11 Trustee's objection to Sunshine
Proponents' Disclosure Statement dated May 4, 2021, is available at
https://bit.ly/2Sz8xz1 from PacerMonitor.com at no charge.
Counsel for Chapter 11 Trustee:
Bill F. Payne #15649500
Law Offices of Bill F. Payne, P.C.
12770 Coit Road, Suite 541
Dallas, TX 75251
(972) 628-4901 Phone
bill@wpaynelaw.com
About Carbonyx Inc.
Plano, Texas-based Carbonyx, Inc. filed a Chapter 11 petition
(Bankr. E.D. Tex. Case No. 20-40494) on Feb. 18, 2020. In the
petition signed by Hasmukh Patel, authorized agent, the Debtor was
estimated to have up to $50,000 in assets and $10 million to $50
million in liabilities.
Judge Brenda T. Rhoades oversees the case. Eric A. Liepins, P.C.
serves as the Debtor's bankruptcy counsel.
On Nov. 10, 2020, Linda Payne was appointed as Chapter 11 trustee
in the Debtor's case. The trustee is represented by the Law
Offices of Bill F. Payne, PC.
CARLA'S PASTA: Revised Order Approving Sale of All Assets Issued
----------------------------------------------------------------
Judge James J. Tancredi of the U.S. Bankruptcy Court for the
District of Connecticut issued a Revised Bench Ruling on Carla's
Pasta, Inc., and Suri Realty, LLC's sale of substantially all
assets.
The Sale is approved, as modified by the Revised Bench Ruling and
the accompanying Revised Sale Order.
The Debtors are authorized to sell the Property free and clear of
the liens referenced in Schedule 4.10 of the Asset Purchase
Agreement and those claims and interests delineated in the Revised
Sale Order.
As the Debtors' Motion to Sell only partially complies with L.
Bankr. Rule 6004-1, the Court respectfully declines to issue a
wide-ranging free and clear order at variance therewith. It has
revised the parameters of the proposed successor liability
protections in the Revised Sale Order to reduce their complexity,
the potential for confusion and any variance from fundamental
notions of fairness or interference with governmental or regulatory
prerogative.
To the extent the Committee of Unsecured Creditors persists in its
request for enhanced informational access to the Purchaser beyond
the protections afforded to it and the Debtors under the Asset
Purchase Agreement with regard to access to records, such a request
is denied and the objection related thereto is overruled.
The Revised Bench Ruling modifies and supersedes the Court's prior
Bench Ruling in order to reconcile its terms with the Revised Sale
Order and to clarify portions of its prior Ruling.
Simultaneously with the docketing of the Revised Bench Ruling, the
Court has approved and docketed a Revised Sale Order. Accordingly,
the Debtors will proceed to promptly close the sale to the
Purchaser in accordance with the provisions of the Revised Sale
Order and the Revised Bench Ruling.
About Carla's Pasta
Carla's Pasta was founded in 1978 by Carla Squatrito and is a
family-owned and operated business and is headquartered in South
Windsor, Connecticut. Carla's Pasta manufactures high-quality
food
products including pasta sheets, tortellini, ravioli, and steam
bag
meals for branded and private label retail, foodservice
distributors, and restaurant Carla's Pasta's stock is held by
members of the Squatrito family.
On Dec. 31, 2016, Carla's Pasta acquired 100% of Suri Realty,
LLC's
membership interests. Suri's business is limited to the ownership
of two adjoining parcels of real property with an address of 50
Talbot Lane, South Windsor, Connecticut, and 280 Nutmeg Road,
South Windsor, Connecticut.
Carla's Pasta operates its business from an approximately
150,000-sq. ft. BRC+ certified production facility.
On Oct. 29, 2020, an involuntary petition for relief under Chapter
7 of the Bankruptcy Code was filed against Suri by the Dennis
Group, HJ Norris, LLC, Renaissance Builders, Inc., and Elm
Electrical, Inc. On Dec. 17, 2020, the Court approved Suri's
request and converted the involuntary Chapter 7 case to a Chapter
11.
Carla's Pasta filed a Chapter 11 petition (Bankr. D. Conn. Case
No.
21-20111) on Feb. 8, 2021. The Debtor estimated assets of $10
million to $50 million and liabilities of $50 million to $100
million.
The law firm of Locke Lord LLP is the Debtors' counsel. Cowen &
Co
is the Debtors' investment banker. Sandeep Gupta of Nova Advisors
is the Debtors' CRO.
CD THOMAS FARMS: Case Summary & 4 Unsecured Creditors
-----------------------------------------------------
Debtor: CD Thomas Farms, LLC
6690 Otoe Road
Alliance, NE 69301
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
District of Nebraska
Judge: Hon. Thomas L Saladino
Case No.: 21-40520
Debtor's Counsel: Wayne E. Griffin, Esq.
WAYNE E. GRIFFIN LAW OFFICE
406 N. Dewey Street
P.O. Box 911
North Platte, NE 69103
Tel: (308) 534-3526
Fax: (308) 532-8649
E-mail: wGriffinLaw@hotmail.com
Total Assets: $171,898
Total Liabilities: $2,661,311
The petition was signed by Chad W. Thomas, the managing member.
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/QG4RQUQ/CD_Thomas_Farms_LLC__nebke-21-40520__0001.0.pdf?mcid=tGE4TAMA
CENTURY ALUMINUM: Reports $140 Million Net Loss for First Quarter
-----------------------------------------------------------------
Century Aluminum Company announced its first quarter 2021 results.
Shipments of primary aluminum for the quarter ended March 31, 2021
remained flat compared to the quarter ended Dec. 31, 2020. Net
sales for the first quarter of 2021 increased by 14 percent
sequentially due to higher aluminum prices and regional premiums.
Century reported a net loss of $(140.0) million for the first
quarter of 2021, a $104.5 million increase in net loss
sequentially. First quarter results were negatively impacted by
$87.4 million of exceptional items, in particular $92.7 million of
unrealized losses on forward derivative contracts (net of tax).
Thus, Century reported an adjusted net loss of $(52.5) million for
the first quarter of 2021, a $21.9 million increase in adjusted net
loss sequentially.
Adjusted EBITDA for the first quarter of 2021 was $(19.7) million,
a decrease of $20.5 million from the prior quarter primarily driven
by higher power prices as a result of extraordinarily cold
temperatures in the U.S. Midwest and South during February 2021.
Century's cash position at quarter end was $26.3 million and
availability under its revolving credit facilities was $63.8
million. Quarterly cash flow was negatively impacted as a result
of the initial spend for the restart at its Mt. Holly facility, its
normal semi-annual debt interest payment, and changes in working
capital.
"We are making solid progress on the enhancements to our safety
systems and processes, including robust training in safety
leadership for our people," commented Michael Bless, president and
chief executive officer. "Century's entire team is committed to
and focused on this principal priority. We are also continuing to
develop our low-carbon aluminum products as well as the expansion
of our smelters' exposure to renewable power resources; we are
committed to playing an important role in this critical global
effort and meeting the growing demand from our customers for green
products."
Mr. Bless continued, "Industry conditions have continued to
improve, reflecting the pace and level of general manufacturing
activity. The global primary aluminum market is in balance, and
global inventories continue to fall. The availability of prompt
metal units in our key markets remains constrained, driven by
robust demand and the limited global capacity additions. The
outlook for the industry remains uniformly healthy."
"We made good progress on many important initiatives during the
quarter," concluded Mr. Bless. "Hawesville has returned to
stability, and the team has begun the process of restoring the
capacity impacted by the equipment malfunctions in late December;
in addition, we were pleased to reach a new five-year labor
contract which provides a solid base for the plant's stability,
growth and development. The new power contract for Mt. Holly was
approved by all required parties, and began as scheduled on April
1; we have started the rebuild activity that will bring this
excellent plant to 75 percent of its design capacity. Finally, the
recently completed debt refinancing lowers Century's cost of
capital and provides incremental liquidity."
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/949157/000094915721000077/exhibit99120210331q1earnin.htm
About Century Aluminum Company
Century Aluminum Company -- http://www.centuryaluminum.com-- owns
primary aluminum capacity in the United States and Iceland.
Century's corporate offices are located in Chicago, IL. Visit
www.centuryaluminum.com for more information.
Century Aluminum reported a net loss of $123.3 million for the year
ended Dec. 31, 2020, compared to a net loss of $80.8 million for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$1.39 billion in total assets, $240.3 million in total current
liabilities, $613.2 million in total noncurrent liabilities, and
$546.1 million in total shareholders' equity.
CENTURY TOWNHOMES: Joint Plan of Reorganization Confirmed by Judge
------------------------------------------------------------------
Judge Jeffery A. Deller has entered findings of fact, conclusions
of law and order confirming the Joint Chapter 11 Plan of
Reorganization of Debtor Century Townhomes Association and
Pennsylvania American Water Company.
The Joint Plan complies with all requirements of confirmation as
set forth in Bankruptcy Code § 1129 of the Bankruptcy Code, in
that:
* The Joint Plan Proponents proposed the Joint Plan in good
faith and not by any means forbidden by law.
* Any payments made or to be made for services, costs, and/or
expenses incurred during the administration of the Debtor's
bankruptcy have been approved, or are subject to approval, by the
Court.
* The Plan Proponents have disclosed the identity and
affiliation of any individual proposed to serve as a director,
officer or voting trustee of the Reorganized Debtor, and the same
is consistent with the interest of creditors, equity security
holders, and public policy.
* All classes of claims or interests, including impaired
classes of claims or interests, have accepted the Joint Plan.
* The Joint Plan complies with the payment provisions of
certain claims, as enumerated in Bankruptcy Code Sec. 1129(a)(9).
As of the Effective Date, all assets of the Debtor and its estate
shall be transferred to and vest/revest in the Reorganized Debtor.
A full-text copy of the Plan Confirmation Order dated May 4, 2021,
is available at https://bit.ly/2SA7oHt from PacerMonitor.com at no
charge.
Counsel to the Debtor:
Kathryn L. Harrison, Esq.
CAMPBELL & LEVINE, LLC
310 Grant Street, Suite 1700
Pittsburgh, Pennsylvania 15219
Tel: 412-261-0310
Fax: 412-261-5066
kharrison@camlev.com
Attorney for PAW:
Kirk B. Burkley, Esq.
BERNSTEIN-BURKLEY, P.C.
Suite 2200, 707 Grant Street
Pittsburgh, PA 15219
Tel: (412)456-8108
Fax: (412) 456-8135
kburkley@bernsteinlaw.com
About Century Townhomes Association
Century Townhomes Association is a Pennsylvania non-profit
corporation that operates a homeowners association for residential
townhomes located in Clairton, Pennsylvania, known as Century
Townhomes. Century Townhomes was a project of Action Housing,
Inc., designed to provide affordable housing in the City of
Clairton. The development consists of over 425 residential
townhomes, owned by individual homeowners, landlords who rent units
to leaseholders, and a non-profit organization that provides
housing to individuals with disabilities in its units.
Century Townhomes Association sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. Pa. Case No. 18-21925) on May 10,
2018. In the petition signed by Eric Hatchett, president, the
Debtor was estimated to have assets of less than $100,000 and
liabilities of less than $500,000. Judge Jeffery A. Deller is the
presiding judge. The Debtor hired Campbell & Levine, LLC, as its
legal counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
CITY-WIDE COMMUNITY: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------------
City-Wide Community Development Corp. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Northern District of Texas,
Dallas Division, for authority to use cash collateral and provide
adequate protection.
The Debtors propose use of rents and other proceeds from operations
of all real estate projects that are cash collateral of their
lenders to meet ordinary and necessary business expenses.
CWCDC and debtor-affiliates Lancaster Urban Village Residential,
LLC and Lancaster Urban Village Commercial, LLC are co-developers
of Lancaster Urban Village. Each has pledged property, including
all accounts and offspring from the Project, in connection with the
financing for the Project. CWCDC is the 100% owner of Residential
and Commercial. Sherman Roberts is the President and Chief
Executive Officer of each of the Debtors.
The Department of Housing and Urban Development provided under a
note $14 million in construction financing for the residential
portion of the Project. This residential portion represents
approximately 57% of the total project.
The note is secured by a blanket first lien deed of trust on the
residential portion of the Project. The balance owed is
approximately $12 million, and the total project has been appraised
for $20 million rounded.
Legacy Bank, N.A. provided $900,000 of construction financing in
connection with the Lancaster Kiest Office Building project, a
commercial office building with over 12,000sq. ft. having an
estimated value of over $2.5 million. The project is fully
leased.
The City of Dallas provided under a note -- secured by a second
lien deed of trust -- additional funding for construction financing
of the Project, which upon information and belief, has been
completely paid. However, in 2019, for no apparent additional
consideration, Dallas secured rights to payment of a "fee" for
arrangement of the new market tax credits, Tax Increment Financing
and other financial arrangements that supported the original
financings pursuant to a subordinated deed of trust in second lien
position. However, this disputed note is paid only in a waterfall
that assumes the first lien payment is made, along with unsecured
obligations owed, if any, by CWCDC to its partner, Catalyst Urban
Partners.
According to the Debtors, Dallas is being treated as a lien
claimant in the Project out of an abundance of caution.
Nonetheless, CWCDC has other projects where Dallas has a clear cash
collateral interest, and where that interest is adequately
protected by the replacement liens discussed given the substantial
equity in those other projects held by CWCDC. To the extent that
Dallas has a valid lien in the Project, the Debtors propose as
adequate protection for the cash collateral replacement liens on
all of the Debtors' projects.
A copy of the motion is available for free at
https://bit.ly/3xTzdL6 from PacerMonitor.com.
About City-Wide Community Development Corp.
City-Wide Community Development Corp. and affiliates are primarily
engaged in renting and leasing real estate properties.
City-Wide Community Development Corp. and affiliates Lancaster
Urban Village Residential, LLC and Lancaster Urban Village
Commercial, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 21-30847) on April
30, 2021. In the petition signed by Sherman Roberts, president and
CEO, the Debtors disclosed $12,026,657 in assets and $10,332,946 in
liabilities.
Kevin S. Wiley, Sr., Esq. at ILEY LAW GROUP, PLLC is the Debtors'
counsel.
CLEANSPARK INC: Posts $7.4 Million Net Income in Second Quarter
---------------------------------------------------------------
CleanSpark, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing net income
attributable to the company of $7.40 million on $8.12 million of
net total revenues for the three months ended March 31, 2021,
compared to a net loss attributable to the company of $5.82 million
on $3.66 million of total net revenues for the three months ended
March 31, 2020.
For the six months ended March 31, 2021, the company reported net
income attributable to the company of $232,510 on $10.38 million of
total net revenues compared to a net loss attributable to the
company of $7.73 million on $4.64 million of total net revenues for
the six months ended March 31, 2020.
As of March 31, 2021, the Company had $292.61 million in total
assets, $8.89 million in total liabilities, and $283.72 million in
total stockholders' equity.
The Company has incurred losses in the past while it developed its
infrastructure and software platforms. The Company incurred
operating losses of $8.7 million and produced net income during the
six months ended March 31, 2021. The Company has sufficient
capital for ongoing operations from raising additional capital
through the registered sale of equity securities pursuant to a
registration statement on Form S-3. As of March 31, 2021, the
Company had working capital of $171,118,618.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/827876/000166357721000230/clsk10q.htm
About CleanSpark
Headquartered in Bountiful, Utah, CleanSpark, Inc. --
www.cleanspark.com -- is in the business of providing advanced
energy software and control technology that enables a plug-and-play
enterprise solution to modern energy challenges. Its services
consist of intelligent energy monitoring and controls, microgrid
design and engineering and consulting services. Its software
allows energy users to obtain resiliency and economic optimization.
The Company's software is uniquely capable of enabling a microgrid
to be scaled to the user's specific needs and can be widely
implemented across commercial, industrial, military and municipal
deployment.
CleanSpark reported a net loss of $23.35 million for the year ended
Sept. 30, 2020, a net loss of $26.12 million for the year ended
Sept. 30, 2019, and a net loss of $47.01 million for the year ended
Sept. 30, 2018. As of Dec. 31, 2020, the Company had $78.17
million in total assets, $6.14 million in total liabilities, and
$72.03 million in total stockholders' equity.
COLONIAL GATE: Case Summary & 10 Unsecured Creditors
----------------------------------------------------
Debtor: Colonial Gate Gardens LLC
45 Washington Ave
Spring Valley, NY 10977
Business Description: Colonial Gate Gardens LLC is a Single Asset
Real Estate debtor (as defined in 11 U.S.C.
Section 101(51B)). The Debtor is the fee
simple owner of 26 properties located in New
York having a total current value of $7.51
million.
Chapter 11 Petition Date: May 6, 2021
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 21-22265
Debtor's Counsel: Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUM J. ROSEN, PLLC
38 New St
Huntington, NY 11743-3327
Tel: 631-423-8527
Fax: 631-423-4536
E-mail: arosen@ajrlawny.com
Total Assets: $7,948,556
Total Liabilities: $5,041,896
The petition was signed by Yitzchok Loeffler, managing director.
A full-text copy of the petition containing, among other items, a
list of the Debtor's list of 10 unsecured creditors, is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/GT2OU2I/Colonial_Gate_Gardens_LLC__nysbke-21-22265__0001.0.pdf?mcid=tGE4TAMA
COLONIAL GATE: Seeks Cash Collateral Access
-------------------------------------------
Colonial Gate Gardens LLC asks the U.S. Bankruptcy Court for the
Southern District of New York for authority to use the cash
collateral of Wilmington Trust, National Association, as Trustee
for the Benefit of the Holders of Corevest American Finance 2017-1
Trust Mortgage Pass-Through Certificates, on an interim basis and
provide adequate protection.
The Debtor says it has significant and immediate cash needs to
continue paying its ongoing obligations as a debtor-in-possession
and propose a plan of reorganization and emerge from bankruptcy.
Reorganization under Chapter 11 is critical to preserving the
Debtor's value as a going concern. The Debtor anticipates its
expenses for the next 90 days will total $85,825.22, exclusive of
payments to Wilmington. The Debtor expects receipts to total
$414,000. In addition, the Debtor has collected, through a
management company, and still has on hand, approximately $130,000
to be used towards the operation of the Properties.
The Debtor's immediate need for the use of cash collateral is based
on the Debtor's need to meet its real estate tax obligations,
insurance obligations, utility obligations, maintenance expenses,
management expenses and other operating expenses.
The Debtor's primary assets consist of single-family houses and or
condominium units throughout Orange, Rockland and Ulster Counties
in New York. The Properties are encumbered by a blanket first
mortgage held by Wilmington in the original principal amount of
$4,271,000.
As of the Petition Date, the Debtor was allegedly indebted to
Wilmington in the total amount of approximately $4,900,000
consisting of unpaid principal and alleged unpaid interest. The
Debtor believes that the aggregate market value of the Properties
is presently approximately $7,515,000. The Debtor's only source of
income are the rents from the Properties and this constitutes the
Cash Collateral held by Wilmington.
As adequate protection for the Debtor's use of cash collateral, the
Debtor proposes provide Wilmington with Replacement Liens on the
Post-petition Collateral to the same extent and validity as its
pre-petition lien and monthly payments that are equal to the
monthly payments required by the Debtor under the loan agreement
which requires interest-only payments at the non-default contract
rate.
The Adequate Protection Liens will be subject to the Carve Out for:
(i) payments of those fees due to the Office of the United States
Trustee pursuant to 28 U.S.C. section 1930; (ii) the payment of
allowed professional fees and disbursements incurred by the
Debtor's professionals retained by an Order of the Bankruptcy
Court, and any statutory committee appointed in the case pursuant
to fee orders or any Monthly Compensation Order, and in the event
of a default that results in the termination of the Debtor's
authorization to use cash collateral, unpaid Professional Fees and
Disbursements incurred prior to delivery of a carve out trigger
notice in accordance with the Budget not to exceed the sum of
$50,000; (iii) any recoveries in favor of the estate pursuant to
chapter 5 of the Bankruptcy Code; and (iv) any amounts allowed by
the Court as fees and expenses of a trustee appointed under section
726(b) of the Bankruptcy Code in an amount not to exceed $7,500.
The Debtor will also undertake to keep the Collateral fully insured
against all loss, peril and hazard and make Wilmington the
additional insured in any such insurance policy maintained by the
Debtor as to the Collateral.
A copy of the motion is available for free at
https://bit.ly/3exeDIO from PacerMonitor.com.
About Colonial Gate Gardens LLC
Colonial Gate Gardens LLC is a limited liability company, formed
and existing under the laws of the State of New York, with its
principal office located at 45 Washington Ave, Spring Valley, New
York 10977. Colonial Gate Gardens is engaged in the real estate
investment business by purchasing single-family homes and or
condominium units, renovating them and then leasing them to tenants
in exchange for rent.
Colonial Gate Gardens sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 21-22265) on May 6,
2021. In the petition signed by Yitzchok Loeffler, managing
director, the Debtor disclosed up to $10 million in both assets and
liabilities.
Avrum J. Rosen, Esq., at LAW OFFICE OF AVRUM J. ROSEN, PLLC is the
Debtor's counsel.
COLUMBUS MCKINNON: S&P Lowers ICR to 'B+' on Acquisition of Dorner
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Columbus
McKinnon Corp. (CMCO) to 'B+' from 'BB-' and removed all ratings
from CreditWatch, where S&P had placed them with negative
implications on March 2021.
S&P also assigned a 'B+' issue-level and '3' recovery rating to the
proposed first-lien, senior secured term loan.
CMCO is issuing a $450 million first-lien term loan B to refinance
the bridge loan it used to acquire Dorner Manufacturing. In
addition, CMCO also recently issued $207 million of equity,
including the greenshoe option that the underwriters exercised.
Leverage will increase following the acquisition of Dorner, a
designer and manufacturer of conveyor systems. CMCO initially
financed the transaction with a credit facility that included a
$650 million bridge loan. Since then, the company raised $207
million in equity to fund a portion of the transaction. Although
the equity raise was well above S&P's initial expectations, the
ultimate debt burden following the close of the transaction remains
sizable.
Similar to other industrial companies S&P rates, CMCO seems to be
emerging out of the COVID-induced recession and returning to
growth. The company further increased its earlier fiscal
fourth-quarter (ended March 31, 2021) guidance and disclosed
positive order and backlog data.
S&P said, "Still, the company is significantly increasing its debt
load. Initially, we expect leverage to be around 5x pro forma for
the transaction before dropping to around 4x in fiscal 2022. Our
leverage calculation incorporates underfunded pension liabilities
and operating lease adjustments. We expect marked improvement in
macroeconomic conditions in 2021, with 6.5% GDP growth, but we
believe risks remain in our forecast for the company. Specifically,
we believe the company remains exposed to significant raw material
price increases for aluminum and steel, its largest raw material
inputs. These price increases threaten to dampen the company's
incremental margins.
"In our view, the Dorner acquisition increases the company's scale
and further diversifies its product offerings. Dorner sells to the
food, e-commerce, and consumer end markets, which should modestly
reduce earnings volatility relative to CMCO's exposure to broader
industrials end markets. Still, pro forma for the transaction CMCO
remains exposed to cyclical industries and may see relatively steep
declines through periods of weaker economic activity. As well, the
company will need to demonstrate it can integrate Dorner's
precision conveyer belt business into its legacy hoists and
actuators offerings.
"We believe liquidity remains solid following the transaction. As
of Dec. 31, 2020, CMCO had over $250 million of liquidity from cash
on hand along with an undrawn revolver balance. We expect the
company's liquidity position to benefit from good free operating
cash flow (FOCF) as result of a low capital expenditure (capex)
requirements and other liquidity uses. CMCO's revolver has been
extended to May 2026 concurrently with this transaction.
"The stable outlook reflects our view that CMCO's performance will
improve materially and EBITDA margins will return to pre-pandemic
levels as it integrates Dorner into the legacy business. Over the
next 12 months, we believe CMCO will reduce leverage to around 4x
and that it will continue to generate positive FOCF."
S&P could lower the rating on CMCO if leverage remains above 5x.
This could happen, for example, if:
-- The company engages in more material debt-financing
transactions; or
-- The expected recovery is significantly slower than we currently
anticipate.
S&P could raise its ratings on CMCO if:
-- Stronger-than-expected operating performance reduces leverage
comfortably below 3.5x; and
-- S&P believes that management is committed to maintaining that
level of leverage, including future acquisitions and dividends.
CONAIR HOLDINGS: S&P Assigns 'B' ICR, Outlook Stable
----------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to branded
personal care and culinary products provider Conair Holdings LLC
and its 'B' issue-level rating to the first-lien term loan. The
recovery rating on the term loan is '3', indicating its expectation
for meaningful recovery (50%-70%; rounded estimate: 55%) in the
event of a payment default.
S&P said, "The stable outlook reflects our expectation that
leverage will be sustained above 6x over the next couple of years,
as higher tariffs and the resumption of expenses reduced during the
COVID-19 pandemic offset gains from productivity initiatives and
organic sales growth."
Private equity firm American Securities LLC has entered into an
agreement to acquire Conair.
The purchase will be funded in part with a $1.165 billion
first-lien term loan and $430 million second-lien term loan. The
company will also establish a $400 million asset-based lending
(ABL) revolving credit facility that will be undrawn at close.
S&P said, "Our ratings on Conair reflect its good market positions
in unrelated consumer discretionary categories that are highly
competitive and somewhat cyclical. Conair owns a wide portfolio of
products including hair care appliances, grooming devices, and
other beauty products in its personal care segment (about 60% of
sales) and small kitchen appliances and cookware, as well as
commercial foodservice equipment, in its culinary segment (about
40%). The company has good brand awareness and leading positions in
many subcategories, though we view them as highly competitive."
Conair's culinary segment, underpinned by the Cuisinart and Waring
brands, includes a variety of small kitchen appliances and premium
cookware, as well as commercial foodservice equipment. The company
has leading positions in multiple subcategories but modest share in
the overall culinary appliance category. It competes against larger
players such as Spectrum Brands Inc., Newell Brands Inc., and SEB
S.A. group with greater financial resources. The at-home culinary
products industry benefits from favorable industry dynamics
amplified by the COVID-19 pandemic. Consumers focused on health and
wellness have spent more time at home cooking from scratch,
increasing demand for small kitchen appliances and other culinary
products. S&P said, "While we expect category growth will moderate
from historic highs in 2020, we expect a large base of consumers
will continue cooking at home, sustaining higher demand compared to
before the pandemic. Given its established market position and high
brand awareness, we believe Cuisinart is well positioned to take
advantage of these trends and deliver solid organic sales growth."
This could include leveraging its brand equity and track record of
innovation to introduce new products into adjacent subcategories.
S&P said, "The company's personal care segment, headlined by its
Conair, BaByliss, and Scunci brands, has even stronger market share
positions and high brand awareness, though we do not believe the
Conair brand commands significant price premiums. The business
faced meaningful hurdles in 2020 due to lockdowns and the decline
in social activity. This was partly offset by more at-home
grooming. We expect greater use of hair styling products as social
activity increases and some sustained demand for at-home grooming
products, which should help drive high-single-digit percentage
organic growth in 2021. A shift toward higher-end
professional-grade products over the next couple of years could
also drive growth for BaByliss. Nevertheless, we view long-term
growth prospects as modest given the category's mature and highly
competitive nature.
"While the categories are unrelated, we view both as vulnerable to
economic downturns given their discretionary nature. This includes
the culinary segment. While the larger food-at-home category tends
to be recession-resistant, we believe sales of small kitchen
appliances would decline in a downturn due to their higher prices
and consumers' ability to defer purchases or trade down to
lower-price products.
"We expect leverage will remain high under financial sponsor
ownership. We estimate pro forma S&P adjusted leverage at
transaction close will be about 6.3x. Despite our expectation for
healthy organic sales growth, we believe profitability will
modestly weaken in 2021 due to higher tariffs (a tariff moratorium
on some products imported from China ended on Dec. 31, 2020) and
resumption of certain expenses (including advertising, travel,
trade show, and labor) significantly reduced after the outbreak of
the pandemic. We expect these higher costs will offset gains from
organic revenue growth and the roll-off of some nonrecurring costs,
weakening leverage modestly in 2021 to the mid-6x area.
"Starting in 2022, we expect Conair will begin to achieve cost
savings from new productivity initiatives that will drive
incremental profitability and modest deleveraging. Nevertheless, we
expect it to maintain aggressive financial policies under American
Securities control. While we do not incorporate merger and
acquisition activity into our forecast, we believe Conair will
maintain an appetite for acquisitions. We also believe the sponsor
would consider a dividend if the company deleveraged significantly
ahead of our expectations. Credit metrics would likely weaken
further if the company pursued meaningful debt-financed
acquisitions or dividends."
Conair's product diversity and omnichannel presence should enable
it to generate stable revenue growth, notwithstanding recessionary
risk across its categories. Conair has good product diversity given
its participation in two unrelated categories, with no product
subcategory accounting for more than 10% of sales. Given its
history of product innovation and growth into new categories such
as air fryers in 2019 and air purifiers in 2021, S&P believes
Conair will maintain good diversity. The company also has a robust
presence across all major retail channels and has demonstrated its
ability to adapt to changing consumer preferences. In recent years,
the company increased Cuisinart's e-commerce presence substantially
to meet much higher consumer demand for small kitchen appliance
products online. After further acceleration fueled by the pandemic,
e-commerce now accounts for the largest share of Cuisinart sales.
E-commerce sales of Conair's personal care appliances have also
grown meaningfully but still tend toward other channels. Its
variety of products and ability to reach a diverse set of consumers
wherever they are shopping helps it maintain a relatively moderate
customer concentration. These factors mitigate the risk of any lost
customer relationship pertaining to a particular brand and should
support steady operating performance.
S&P said, "We expect the company to deliver modest cost savings
over the next several years through new productivity initiatives.
Conair operates with an asset-lite model, outsourcing substantially
all its production, mostly to manufacturers in China. Despite this
model, we view the company's profitability as average. With support
from American Securities, the company has identified cost-saving
opportunities through various supply chain, operations and
procurement initiatives. We expect the company will begin to
realize some of these savings in 2022, which should help improve
profit margins. Notwithstanding potential long-term profit
improvement, Conair's outsourced model gives it reduced control
over its supply chain, including product quality and delivery
performance. In addition, it is subject to the ongoing risks of
tariff increases and cost inflation that could be difficult to pass
on to customers. We understand Conair owns a Chinese subsidiary
that works closely with its vendors and has managed these risks
well historically. Its close supplier relationships have also
enabled the company to successfully launch innovative products.
However, sudden significant supply chain management changes could
increase the risk of disruption. Our forecast assumes Conair will
manage changes smoothly given its on-shore presence in China and
track record of execution.
"The stable outlook reflects our expectation for steady organic
sales growth over the next couple of years but sustained weak
credit metrics. We believe the return of tariffs and certain
expenses reduced during the pandemic will offset profit
contributions from productivity initiatives and organic growth,
resulting in S&P adjusted leverage sustained above 6x over the next
couple of years. We also expect depressed free cash flow in 2021
due in part to one-time costs, but exceeding $50 million in 2022
and $100 million in 2023."
S&P could lower the rating if:
-- Leverage weakens and is sustained above 7x because of more
aggressive financial policies; or
-- Operating performance deteriorates because consumer
discretionary spending is disrupted by substantially weakened
economic conditions, competition significantly intensifies, or the
company struggles to effectively manage its outsourced supply chain
model in an inflationary environment.
S&P said, "While unlikely over the next 12 months, we could raise
our ratings on Conair if the company performs substantially above
our expectations and we are confident it will adopt less aggressive
financial policies, including sustaining leverage below 5x. An
upgrade would be predicated on a commitment from the financial
sponsor not to pursue debt-financed dividends or acquisitions that
would meaningfully deteriorate credit ratios."
CONNECTIONS COMMUNITY: Hearing on Bid Procedures Set for May 17
---------------------------------------------------------------
Connections Community Support Programs, Inc., filed with the U.S.
Bankruptcy Court for the District of Delaware a notice of hearing
on proposed bidding procedures in connection with the sale of some
or all assets to Conexio Care, Inc., for $10 million cash, plus the
payment of all Cure Costs for executory contracts being assumed and
assigned to the Stalking Horse, plus Transfer and other related
taxes, subject to overbid
The hearing to consider the relief requested by the Motion will be
held on May 17, 2021 at 11:30 a.m. (ET). Any objections or
responses to the relief requested by the Motion must be filed by
May 11, 2021, at 4:00 p.m. (ET).
On April 27, 2021, the Debtor filed its Sale and Bidding Procedures
Motion. On the same day, the Court entered the Order Shortening
the Time for Notice of the Hearing to Consider the Motion of Debtor
for Entry of Orders (I)(A) Establishing Bidding Procedures; (B)
Approving Bid Protections; (C) Establishing Procedures Relating to
Assumption and Assignment of Certain Executory Contracts and
Unexpired Leases, Including Notice of Proposed Cure Amounts; (D)
Approving Form and Manner of Notice; (E) Scheduling a Hearing to
Consider Any Proposed Sale; and (F) Granting Certain Related
Relief; and (II)(A) Approving a Sale of Some or All of the Assets
of the Debtor; (B) Authorizing Assumption and Assignment of Certain
Executory Contracts and Unexpired Leases in Connection with the
Sale; and (C) Granting Related Relief.
If no objections to the Sale and Bidding Procedures Motion are
timely filed, served and received in accordance with the Notice,
the Court may grant the relief requested in the Sale and Bidding
Procedures Motion without further notice or hearing.
About Connections Community Support Programs
Connections Community Support Programs Inc. is a multifaceted
not-for-profit 501(c)(3) health and human services organization
operating and founded in Delaware with over 100 locations
throughout the State of Delaware and more than 1,100 employees.
Since its founding in 1985, CCSP has grown from providing
assistance to older adults with lifelong histories of psychiatric
hospitalization to one of Delaware's largest nonprofit
organizations that touches the lives of approximately 10,000 of
Delaware's most vulnerable citizens and their families, dealing
with behavioral health and substance use disorders, housing
challenges, and developmental and intellectual disabilities. The
Organization leases 408 properties (including 389 leased
facilities
associated with housing and veterans' services) and owns 48
properties.
On April 19, 2021, Connections Community Support Programs Inc.
filed for Chapter 11 protection (Bankr. D. Del. Case No. 21-10723)
on April 19, 2021. The Debtor estimated assets and debt of $50
million to $100 million as of the bankruptcy filing.
CHIPMAN BROWN CICERO & COLE, LLP, led by Mark L. Desgrosseilliers,
is the Debtor's counsel. SSG ADVISORS, LLC, is the investment
banker. OMNI AGENT SOLUTIONS is the claims and noticing agent.
CONNECTIONS COMMUNITY: May 17 Hearing on Bid Procedures for Assets
------------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware granted Connections Community Support Programs, Inc.'s
request to shorten the notice period for proposed bidding
procedures in connection with the sale of some or all assets to
Conexio Care, Inc., for $10 million cash, plus the payment of all
Cure Costs for executory contracts being assumed and assigned to
the Stalking Horse, plus Transfer and other related taxes, subject
to overbid
The hearing to consider the relief requested by the Motion will be
held on May 17, 2021, at 11:30 a.m. (ET). Any objections or
responses to the relief requested by the Motion must be filed by
May 11, 2021, at 4:00 p.m. (ET).
All persons who intend to object to the relief requested by the
Motion and who wish to appear by videoconference at the Hearing
will advise the counsel for the Debtor by email at
desgross@chipmanbrown.com no later than May 12, 2021, at 12:00 p.m.
(noon) (ET).
Promptly upon entry of the Order, the Debtor will serve notice of
the Motion on the following parties, or their counsel, if known, by
electronic mail, hand-delivery, or overnight mail, as available:
(a) the Office of the United States Trustee for the District of
Delaware; (b) counsel to WSFS; (c) the counsel to the proposed
Stalking Horse Bidder; (c) the Top 30 Creditors; and (d) any party
that has requested notice under Bankruptcy Rule 2002. In the event
that the Debtor is unable to serve such parties by any of
electronic mail, hand-delivery, or overnight mail, the Debtor will
promptly serve such parties by regular, U.S. mail.
About Connections Community Support Programs
Connections Community Support Programs Inc. is a multifaceted
not-for-profit 501(c)(3) health and human services organization
operating and founded in Delaware with over 100 locations
throughout the State of Delaware and more than 1,100 employees.
Since its founding in 1985, CCSP has grown from providing
assistance to older adults with lifelong histories of psychiatric
hospitalization to one of Delaware's largest nonprofit
organizations that touches the lives of approximately 10,000 of
Delaware's most vulnerable citizens and their families, dealing
with behavioral health and substance use disorders, housing
challenges, and developmental and intellectual disabilities. The
Organization leases 408 properties (including 389 leased
facilities
associated with housing and veterans' services) and owns 48
properties.
On April 19, 2021, Connections Community Support Programs Inc.
filed for Chapter 11 protection (Bankr. D. Del. Case No. 21-10723)
on April 19, 2021. The Debtor estimated assets and debt of $50
million to $100 million as of the bankruptcy filing.
CHIPMAN BROWN CICERO & COLE, LLP, led by Mark L. Desgrosseilliers,
is the Debtor's counsel. SSG ADVISORS, LLC, is the investment
banker. OMNI AGENT SOLUTIONS is the claims and noticing agent.
CONNECTIONS COMMUNITY: Seeks May 17 Hearing on Bid Procedures
-------------------------------------------------------------
Connections Community Support Programs, Inc., asks the U.S.
Bankruptcy Court for the District of Delaware for entry of an
order:
(i) shortening the time for notice period;
(ii) setting the hearing on May 17, 2021, at 11:30 a.m. (ET)
to consider entry of the Bidding Procedures Order, including
approval of the Bidding Procedures, in connection with the sale of
some or all assets to Conexio Care, Inc. for $10 million cash, plus
the payment of all Cure Costs for executory contracts being assumed
and assigned to the Stalking Horse, plus Transfer and other related
taxes, subject to overbid; and
(iii) setting the objection deadline to the entry of the
Bidding Procedures Order as May 11, 2021, at 4:00 p.m. (ET).
The Debtor respectfully submits that compelling circumstances and
good cause exist in the case to shorten the notice period for the
hearing to consider entry of the proposed Bidding Procedures Order.
Initially, in the case the Debtor seeks to shorten notice by only
one day. Moreover, to avoid any potential prejudice, it has
proposed to set the objection deadline as May 11, 2021, at 4:00
p.m. (ET) with respect to the Motion, one day longer than the
objection deadline established otherwise by the Local rules for the
Motion. Accordingly, parties in interest in the Chapter 11 Case
will suffer no prejudice from the slightly shortened notice
requested.
Moreover, shortened notice is necessary to avoid immediate and
irreparable harm to the Debtor. As set forth in the First Day
Declaration and as stated by the counsel at the hearing held before
the Court on April 22, 2021, the Debtor has only recently entered
into the Stalking Horse APA. Indeed, although the Debtor signed a
letter of intent with the proposed Stalking Horse Bidder just prior
to the Petition Date, the Debtor and such bidder only entered into
the Stalking Horse APA on April 21, 2021, at around 10:30 p.m.
(ET).
Since signing the Stalking Horse APA, the Debtor, through its
professionals, has worked diligently with counsel for the proposed
Stalking Horse Bidder and WSFS to prepare the Motion and the forms
of Bidding Procedure Order, exhibits thereto, and form of Sale
Order. Those documents were only recently completed. Filing of
the Motion by today and entry of the proposed Bidding Procedures
Order by May 19, 2021 is a requirement for the Debtor to continue
to use WSFS' cash collateral and a requirement of the proposed
Stalking Horse bid itself. Accordingly, absent a prompt hearing on
the Motion and this Court’s approval of the Bidding Procedures,
the Debtor will not be able to finance the case and would likely
lose the only current offer for the sale of its assets with the
concomitant loss of approximately 1,100 jobs.
In light of the current COVID-19 pandemic, the Debtor's current
constraints on its use of WSFS' Cash Collateral, and the critical
nature of the services provided by the Debtor to its clients and to
the people of Delaware generally, it is difficult to imagine
circumstances more exigent than those the Debtor faces today.
Pursuant to Local Rule 9006-1(e), the Court may rule on the Motion
to Shorten without the need for a hearing, and accordingly, the
Debtor requests that the Motion to Shorten be granted without
further hearing.
About Connections Community Support Programs
Connections Community Support Programs Inc. is a multifaceted
not-for-profit 501(c)(3) health and human services organization
operating and founded in Delaware with over 100 locations
throughout the State of Delaware and more than 1,100 employees.
Since its founding in 1985, CCSP has grown from providing
assistance to older adults with lifelong histories of psychiatric
hospitalization to one of Delaware's largest nonprofit
organizations that touches the lives of approximately 10,000 of
Delaware's most vulnerable citizens and their families, dealing
with behavioral health and substance use disorders, housing
challenges, and developmental and intellectual disabilities. The
Organization leases 408 properties (including 389 leased
facilities
associated with housing and veterans' services) and owns 48
properties.
On April 19, 2021, Connections Community Support Programs Inc.
filed for Chapter 11 protection (Bankr. D. Del. Case No. 21-10723)
on April 19, 2021. The Debtor estimated assets and debt of $50
million to $100 million as of the bankruptcy filing.
CHIPMAN BROWN CICERO & COLE, LLP, led by Mark L. Desgrosseilliers,
is the Debtor's counsel. SSG ADVISORS, LLC, is the investment
banker. OMNI AGENT SOLUTIONS is the claims and noticing agent.
CPG INTERMEDIATE: S&P Upgrades ICR to 'B', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on CPG
Intermediate LLC to 'B' from 'B-' and its issue-level rating on its
revolving credit facility and first-lien term loan to 'B' from
'B-'. S&P's '3' recovery rating on the company's debt remains
unchanged, indicating its expectation for meaningful (50%-70%;
rounded estimate: 55%) recovery in the event of a payment default.
The stable outlook reflects S&P's expectation that CPG will
maintain weighted-average adjusted debt to EBITDA in the 4x-5x
range, pro forma for its acquisitions, over the next couple of
years.
The upgrade reflects CPG's better-than-anticipated earnings in 2020
supported by stable demand in its microencapsulation business and
construction and remodeling end markets despite the pandemic. S&P
said, "The company's microencapsulation products are used in goods
such as laundry detergents, which is a segment that performed well
in 2020--due to increased laundry consumption amid the
pandemic--and we expect will continue to expand in 2021.
Furthermore, CPG's revenue from its solvent cements segment
increased last year due to the steady demand in the global
construction and housing end markets. Given the upward revision of
our forecasts for U.S. real GDP growth and consumer spending, we
expect a further ramp-up in economic activity will positively
affect the demand for the company's products. Specifically, we
expect CPG's credit metrics, such as its S&P Global
Ratings-adjusted weighted-average funds from operations (FFO) to
debt, to improve to between 15% and 20% over the next 12 months.
Under our base-case scenario, we assume the company will maintain a
sufficient cushion in its metrics such that they remain in line
with our expectations for the current rating even if they weaken
slightly from current levels."
S&P said, "Our rating reflects CPG's niche markets and limited
applications in generally competitive product markets, such as
those for structural adhesives and plumbing products.The company's
production is also concentrated at a single site that generates a
material portion of its revenue. Furthermore, it faces some
customer concentration because one of its customers accounts for a
significant amount of its sales. Partially offsetting these
weaknesses are CPG's above-average EBITDA margins, low capital
expenditure requirements, diversified supplier base, and
substantial positions in niche parts of the adhesives and sealants
markets. The company also maintains significant market positions in
solvent cements for irrigation and electrical use and methyl
methacrylate adhesives for engineered stone and marine
applications.
"The factors that constrain our assessment of CPG's business risk
profile include its small market share in a very fragmented market
and its significant manufacturing and customer concentrations.The
company's geographic diversity is also limited because it only
derives about 35% of its sales from outside of North America and
more than 10% from the Middle East and Africa.
CPG's business strengths include some barriers to entry in certain
markets due to its proprietary technology. More generally, the
company benefits from the small size and specialized nature of its
markets. S&P said, "We expect CPG to offset increases in its raw
material costs by raising its prices. The company also benefits
from its research and development and ability to innovate in the
microencapsulation market, in which it holds a large number of
patents. We do not believe CPG has significant raw material or
supplier concentrations because many of its raw materials are
commonly available commodities. These strengths contribute to our
expectation that its EBITDA margins will remain high."
S&P said, "The rating also incorporates our view of CPG's private
ownership by a number of owners, including George Sherman who owns
a large minority stake in the company. We believe there is
uncertainty regarding the eventual transfer of ownership from the
company's current owners, which creates a risk that its future
financial policies will become more aggressive than we currently
anticipate. However, we expect CPG's financial policy to reflect
its owners' and management's longer-term commitment to maintain a
less aggressive financial policy relative to those of financial
sponsor-owned companies.
"The stable outlook on CPG reflects our expectation that it will
expand its niche market applications and maintain its solid EBITDA
margin by focusing on higher-margin products, which will likely
allow it to sustain credit measures we consider appropriate for the
current rating. We also expect the company to maintain
weighted-average adjusted debt to EBITDA in the 4x-5x (pro forma
for its acquisitions) range. We do not anticipate that CPG will
lose key customers or face operational issues at its key
manufacturing locations.
"We could lower our ratings on CPG in the next 12 months if its
debt to EBITDA approaches 6.5x (pro forma for its acquisitions) on
a weighted-average basis. This would likely occur because of a
significant deterioration in its operating performance due to
unexpected challenges at the company's microencapsulation facility,
the loss of a significant customer, or weakening conditions in the
construction market. Under this scenario, CPG's EBITDA margins
would need to decline by 500 basis points (bps) from our base-case
forecast with its revenue increasing by 5% less than we currently
expect. Furthermore, we could lower our ratings if the company's
financial policies become more aggressive than we presently
envision due to its current ownership or the loss of any key
personnel, including George Sherman, such that--in our view--it
will negatively affect its capital structure or earnings.
"We could consider taking a positive rating action on CPG in the
next 12 months if its debt to EBITDA approaches 4x (pro forma for
its acquisitions) on a weighted-average basis. This would likely
occur due to a faster-than-anticipated expansion in the
construction market or the company's microencapsulation business
such that it increase its volumes and sustains stronger EBITDA
margins. This scenario could lead us to raise our rating on CPG if
its EBITDA margins expand by 150 bps and its revenue increases by
1% relative to the assumptions in our base-case forecast. Before
raising our rating, we would like to see the company demonstrate
that it is committed to maintaining its credit metrics at these
levels."
CRC INVESTMENTS: Case Summary & 13 Unsecured Creditors
------------------------------------------------------
Debtor: CRC Investments, LLC
d/b/a 1906 Pine Crest Inn and Restaurant
85 Pine Crest Lane
Tryon, NC 28782
Business Description: CRC Investments, LLC is the fee simple owner
of 12 buildings located at 85 Pine Crest
Lane, Tryon, North Carolina valued a $3.05
million.
Chapter 11 Petition Date: May 6, 2021
Court: United States Bankruptcy Court
Middle District of North Carolina
Case No.: 21-80172
Debtor's Counsel: Joshua H. Bennett, Esq.
BENNETT GUTHRIE PLLC
1560 Westbrook Plaza Dr
Winston Salem, NC 27103
Tel: 336-765-3121
Fax: 336-765-8622
Total Assets: $3,618,600
Total Liabilities: $2,639,250
The petition was signed by Carl Ray Caudle, Jr., general manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/WXNCWZI/CRC_Investments_LLC__ncmbke-21-80172__0001.0.pdf?mcid=tGE4TAMA
CYTOSORBENTS CORP: Incurs $4.2 Million Net Loss in First Quarter
----------------------------------------------------------------
Cytosorbents Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $4.17 million on $10.60 million of total revenue for the three
months ended March 31, 2021, compared to a net loss of $3.45
million on $8.71 million of total revenue for the three months
ended March 31, 2020.
As of March 31, 2021, the Company had $87.48 million in total
assets, $10.22 million in total liabilities, and $77.26 million in
total stockholders' equity.
Dr. Phillip Chan, chief executive officer of CytoSorbents stated,
"Product sales grew by a healthy 24% in Q1 2021 compared to a year
ago, aided by 27% growth in our core non-COVID-19 business and 79%
growth in distributor and partner sales overall. We believe that
Q1 2021 sales would have been even higher, but were hampered for
most of the quarter by restrictions and lockdowns throughout Europe
in many of our core markets, coupled with rapidly declining new
COVID-19 infections and hospitalizations globally throughout the
first two months of the quarter. COVID-19 related sales for Q1
2021 were approximately $1.8M, down from an average of $2.6M in the
prior three quarters. However, March brought another dreaded
COVID-19 wave to Europe, Latin America, the Middle East, and India,
resulting in a massive spike in new worldwide infections and a
strengthening of COVID-19 related orders of CytoSorb, despite a
continuation of lockdowns and restrictions."
"Once the COVID-19 pandemic diminishes, we believe we will continue
our multi-year cycle of sales growth based on the breadth and
strength of our core non-COVID-19 businesses in critical care and
cardiac surgery and the growing body of evidence generated by our
clinical programs. The accelerated adoption of CytoSorb around the
world that we are seeing due to COVID-19 and new exciting
applications, such as liver dialysis therapy and anti-thrombotic
drug removal during cardiac surgery, are expected to accelerate
this growth phase. Because of this, we continue to invest in our
commercialization team, new manufacturing facilities, and
importantly, Company-sponsored clinical studies designed to support
inclusion of our therapy into global standard treatment
guidelines."
"To this end, we have made excellent progress in our clinical
programs. The U.S. STAR-T trial is our current clinical priority,
as we believe it provides the shortest, lowest risk, and most
visible path to potential U.S. regulatory approval. Our FDA
conditional IDE approval gave us the green light to complete our
operational readiness activities and begin anticipated enrollment
of the study in Q3 2021. We have already evaluated and received
verbal agreement from all of our clinical trial centers to
participate in the study, selected a contract research
organization, and established a Data and Safety Monitoring Board
(DSMB) and Clinical Evaluation Committee (CEC). We are now
proceeding with clinical trial agreements and ethics committee
review at these trial sites. Most importantly, today we are
pleased to announce STAR-T trial leadership by two seminal figures
in cardiovascular clinical research, Dr. Michael Mack and Dr. C.
Michael Gibson. Their guidance and involvement in the study design
has already proven invaluable. We look forward to sharing more
detail of the study once the IDE is fully approved."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1175151/000110465921060974/ctso-20210331x10q.htm
About CytoSorbents
Based in Monmouth Junction, New Jersey, CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb is approved in the
European Union with distribution in 67 countries around the world,
as an extracorporeal cytokine adsorber designed to reduce the
"cytokine storm" or "cytokine release syndrome" that could
otherwise cause massive inflammation, organ failure and death in
common critical illnesses. These are conditions where the risk of
death is extremely high, yet no effective treatments exist.
Cytosorbents reported a net loss of $7.84 million for the year
ended Dec. 31, 2020, compared to a net loss of $19.26 million for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$89.95 million in total assets, $10.73 million in total
liabilities, and $79.21 million in total stockholders' equity.
DAVIS SAND: $9K Sale of 1992 Case W11B Loader to West Michigan OK'd
-------------------------------------------------------------------
Judge Thomas L. Perkins of the U.S. Bankruptcy Court for the
Central District of Illinois authorized Davis Sand & Gravel Inc.'s
sale of its a 1992 Case W11B loader, outside the ordinary course of
business, to West Michigan Tractor Sales for $9,000.
The Debtor is authorized to execute a bill of sale and other
documents necessary to close the sale. It will file a Report of
Sale and other such reporting requirements of the Court.
About Davis Sand & Gravel
Davis Sand & Gravel, Inc. sought protection under Chapter 11 of
the
Bankruptcy Code (Bankr. C.D. Ill. Case No. 21-80023) on Jan. 12,
2021. At the time of the filing, the Debtor had estimated assets
of between $1 million and $10 million and estimated liabilities of
less than $1 million. Judge Thomas L. Perkins oversees the case.
Rafool & Bourne, P.C., is the Debtor's legal counsel.
DENNIS M. DANZIK: US Seeks More Time to Object to Batmobiles Sale
-----------------------------------------------------------------
The United States, on behalf of its agency the Internal Revenue
Service, files with the U.S. Bankruptcy Court for the District of
Wyoming its second unopposed request to extend its time to object
to Dennis Meyer Danzik's proposed sale to Hinz Consulting, LLC, or
its assigns for $380,000, of the following automobiles free of all
liens and encumbrances to:
1. 1966 Batmobile [DC Comics license number 3] which has been
rebuilt on a 1967 Ford Fairlane and 1977 Lincoln Continental
frames, with a current motor and drive system consisting of a 2009
Ford 460 ci large block engine, and B&M racing transmission. Along
with DC Comics License Tag.
Arizona Title Number: 345E015047014 ODOMETER: 0 [Historic
Vehicles]
Titled last as 1977 Lincoln Continental 4DSD
Vehicles Identification Number: 7YB2A960425
2. 1989 Batmobile [Warner Brothers licensed] which has been
rebuilt on a 1979 Chevrolet CCL frame, with a current motor and
drive system consisting of a 2013 L-3 6.2 liter Corvette C-6 engine
and a B&M racing transmission. Along with Warner-Brothers
License.
Arizona Title Number: 0L01013178055 ODOMETER: 0 [Historic
Vehicles]
Titled last as 1979 Chevrolet CCL
Vehicles Identification Number: 1N47L91338703
The Debtor filed his Motion for an Order Approving the Sale of
Property Outside the Ordinary Course of Business on March 25, 2021.
The motion concerns the Batmobiles which are subject to a
first-position tax lien held by the United States.
The United States has several concerns with the motion, agreement
and proposed order filed by Debtor and has conveyed those concerns
to the Debtor's counsel. The counsel for the parties agreed to
work toward a possible informal resolution of the issues
surrounding the motion and proposed sale. The parties have made
progress.
The Debtor's counsel has indicated he will revise the sale
agreement and suggested that the parties agree to extend the
objection deadline for another two weeks. The parties agree that a
second extension of the deadline for objecting to the proposed sale
motion is appropriate. The Debtor does not oppose the relief
requested in the Motion.
For the foregoing reasons, the United States respectfully requests
a second 14-day extension of time, to and including May 14, 2021,
to file an objection to the Debtor's Motion to Sell.
Dennis Meyer Danzik sought Chapter 11 protection (Bankr. D. Wyo.
Case No. 20-20010) on Jan. 10, 2020. The Debtor tapped Ken
McCartney, Esq., as counsel.
DHANANI GROUP: S&P Affirms 'B' ICR on Good Operating Performance
----------------------------------------------------------------
S&P Global Ratings revised the rating outlook on Houston-based
restaurant operator Dhanani Group Inc. to stable from negative and
affirmed the 'B' issuer credit rating, reflecting the expectation
for a stabilizing operating performance.
At the same time, S&P affirmed its 'B' issue-level rating on the
company's first-lien credit facilities. The recovery rating is
'3'.
The stable outlook reflects S&P's expectation for a gradually
steady performance over the next 12 months.
The outlook revision follows Dhanani's better-than-anticipated
performance during the pandemic and our expectation for steady
performance in the next 12 months. Dhanani reported resilient
operating performance through 2020 as a result of the strong
business momentum at the Popeyes operation, offsetting the negative
impact from its Burger King and La Madeleine operations during the
COVID-19 pandemic. Dhanani's overall sales increased 9.2% and S&P
Global Ratings-adjusted EBITDA margin improved to 15.2% in 2020
from 14.7% in 2019, resulting adjusted leverage in the low- to
mid-5x area by the end of 2020. S&P believes the
better-than-expected performance reflects that quick-service
restaurant (QSR) operators are somewhat less exposed to the effects
of the pandemic because take-out and drive-thru offerings account
for a higher percentage of their sales.
S&P said, "While we think the long-term comparable-store sales
trends would gradually return to normal, we believe good
performance will likely continue at Dhanani over the near term. In
2021, we expect Dhanani's sales to grow in the
low-single-digit-percent area, reflecting a performance recovery
from its Burger King and La Madeleine operations and a tempered
comparable-store sales at the Popeyes operation. Given a large
number of Popeyes store acquisitions last year, we believe the
company would continue to expand its footprint, but at a more
moderate pace. We also expect the adjusted EBIDTA margin to
moderate to the mid- to high-14% area, as operating costs return to
normal in 2021. As a result, we expect S&P Global Ratings-adjusted
leverage to stay in the mid-5x area by the end of 2021.
"Despite good scale and brand diversity relative to many other QSR
operators, we believe Dhanani still faces exposure to commodity
price fluctuations and rising labor costs. Dhanani is the
second-largest Burger King franchisee and the largest Popeyes
franchisee. Although La Madeleine is a much smaller franchise,
Dhanani is the largest franchisee of the brand. We believe the
company's good track record in operating three different QSR brands
gives it diversity and synergy in operating know-how. As a
restaurant operator, Dhanani is sensitive to commodity price
fluctuations and labor costs. Although the overall labor cost was
lower due to the pandemic in 2020, we believe that reemployment to
a normal level would potentially affect the company's operating
margins from the rising wage environment. However, we continue to
believe that the company's portfolio of different QSR brands with
varied menu offerings somewhat mitigates the risks of operating
setbacks due to price inflation in input commodities.
"The stable outlook reflects our expectation for relatively steady
performance over the next 12 months, with adjusted leverage in the
near mid-5x range on a moderate EBITDA base. We also expect
continued positive free operating cash flow (FOCF) and adequate
sources of liquidity."
S&P could lower the rating if:
-- Weaker-than-expected operating performance drove debt to EBITDA
above the mid-6x area on a sustained basis and generated minimal
FOCF;
-- S&P expected a delayed recovery in Burger King and La Madeleine
operations or cost pressure that strained EBITDA margins by more
than 250 basis points (bps) below its expectations; or
-- The company adopted a more aggressive financial policy,
resulting in sustained weaker credit metrics.
S&P could raise the ratings if:
-- The company delivers meaningfully improved credit metrics on a
continued basis, resulting in leverage sustained below 5x; and
-- S&P also need to believe that the company will adopt a
conservative financial policy going forward, and that the
possibility of a re-leveraging event would be minimal.
DIVISIONS HOLDING: S&P Assigns 'B' ICR, Outlook Stable
------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
Newport, Ky.-based integrated facilities management provider
Divisions Holding Corp., the borrower of the proposed debt. S&P
also assigned its 'B' issue-level and '3' recovery ratings to the
proposed first-lien debt facilities.
The stable outlook reflects S&P's expectation that DMG will
maintain steady credit measures over the next 12 months, including
adjusted debt leverage of 5x-6x and free operating cash flow to
debt in the mid-single-digit percent area, adjusted for one-time
events.
S&P's ratings on DMG reflect several key risks. These include
adjusted leverage above 5x over the next 12-18 months and notable
working capital requirements over the next year as the company
grows; operations in the highly fragmented and price-competitive
U.S. facilities management industry characterized by low switching
costs and limited barriers to entry, which could pressure or cap
EBITDA margins; its top five customers account for about 50% of
fiscal year 2020 (ended March 31, 2021) revenues, though customers
typically have multiple buying centers making independent
decisions; and DMG's limited scale and scope compared to peers,
with a narrow end-market focus largely on U.S. retailers and about
$60 million in EBITDA.
These risks are partially offset by several strengths. These
strengths include an asset-lite business model with 100% of
services outsourced to third-party vendors, offering significant
operational flexibility; a national presence across the U.S.
serving customers at hundreds of locations across multiple service
offerings; nondiscretionary service offerings that provide stable
demand patterns (though business is subject to some seasonality);
and a blue-chip customer base and long-tenured relationships
averaging about 12 years.
The company has limited scale and scope, along with high exposure
to transaction-based revenues. DMG offers integrated facilities
management services to commercial multisite customers through a
100% subcontractor model that involves leveraging its database of
third-party vendors to fulfil service requests from its customers.
The company generated about $430 million in revenues and about $60
million of S&P Global Ratings-adjusted EBITDA in fiscal year 2020,
with about two-thirds of revenue attributed to on-demand services
such as handyman work, plumbing, and electrical. While about
one-third of revenue comes from scheduled services including
fixed-price payments at fixed intervals, on-demand work is expected
to continue to dominate the revenue mix, limiting the
predictability of cash flows. With about 40% of revenue from snow
removal and landscaping, the business remains exposed to
seasonality trends despite the needs-based nature of its service
offerings. DMG has yet to significantly diversify its revenue base
in terms of service offerings, although S&P believes its asset-lite
model has well positioned it to grow over the coming years given
ample whitespace in the $32 billion total addressable market, which
is expected to grow in the mid-single-digit area.
DMG's strategy has driven long-term customer relationships despite
the lackluster terms on its contracts. DMG's "land and expand"
strategy has been key to its growth while driving long-term
customer relationships (averaging about 12 years) within its
blue-chip customer base. Contracts typically span about one to two
years, can generally be terminated upon prior written notice, and
S&P believes lack material protections.
S&P expects adjusted debt to EBITDA to decline to the mid-5x area
from high-5x area over the next year. DMG has rapidly grown over
the past two years, with top-line growth of about 19% and 37% for
fiscal years 2019 and 2020, respectively, largely driven by
increased wallet share within its existing customer base. Although
we expect growth to slow, core demand for DMG's service offering
should remain stable given its nondiscretionary service offerings.
We expect low-double-digit revenue growth for fiscal 2021, slowing
to the high-single-digit area in fiscal 2022, with adjusted EBITDA
margins in the low-teens percent area. DMG has benefited from
sizable margin expansion over the past 12 months driven by an
improved invoicing and pricing strategy along with new processes
and governance to address invoice leakage and overages.
DMG leverages its service quality, technology platform, and ability
to provide a variety of services to large multilocation customers
to overcome competitive industry dynamics. The company operates in
a highly fragmented market characterized by low barriers to entry
given minimal capital requirements and a commoditized service
offering, combined with intense price competition with numerous
small regional providers, which limits any pricing power. However,
DMG has distinguished itself by maintaining its service quality--a
key criterion in customers' decision-making process--leveraging its
field teams and proprietary technology platform that verifies the
work being conducted to ensure key performance indicators are
achieved. Its digital tools connect all three relevant parties--the
customer, the vendor, and DMG--for seamless communication
throughout the process.
S&P said, "The stable outlook reflects our expectation that DMG
will maintain steady credit measures over the next 12 months,
including adjusted debt leverage of 5x-6x and free operating cash
flow (FOCF) to debt in the mid-single-digit percent area, adjusted
for one-time events. This is based on our view that operating
performance will be supported by more work orders, new customer
wins, and expanded service offerings leveraging its asset-lite
business model, while sustaining EBITDA margins.
"We could lower our rating if the company experiences operating
difficulties like a key customer loss as a result of worse service
quality or margin compression due to competitive industry dynamics.
We could also lower our rating if the company exhibits a more
aggressive financial policy led by debt-financed dividends or
poorly timed acquisitions."
S&P estimates this would likely result in:
-- S&P Global Ratings-adjusted debt to EBITDA rising above 6.5x;
or
-- FOCF to debt adjusted for one-time events declining towards the
low- to mid-single-digit area.
While very unlikely over the next 12 months, S&P could consider an
upgrade if:
-- The company demonstrates strong operating performance;
-- It significantly diversifies and expands its business scale;
and
-- Leverage remains comfortably below 5x.
DORCHESTER RESOURCES: May Use Cash Collateral Until September 1
---------------------------------------------------------------
Judge Sarah A. Hall authorized Dorchester Resources, LP to use cash
collateral of Simmons Bank, as successor-by-merger to Bank SNB, on
the earliest to occur of:
* September 1, 2021,
* the occurrence of an event of default,
* the sale of all or substantially all of the Debtor's assets,
and
* the confirmation of a Chapter 11 plan in the Debtor's case.
The weekly budget through July 2021 provided for total expenses and
fees, as follows:
$10,000 for Week 2 of May 2021,
$94,250 for Week 4 of May 2021,
$144,250 for Week 4 of June 2021, and
$10,000 for Week 2 of July 2021.
The cash collateral includes the balance of funds in the Debtor's
operating bank accounts, cash, rents, income, products, proceeds
from the Debtor's business operations, all cash proceeds from
collection, sale, lease or other disposition or conversion of the
pre-petition collateral.
As of the Petition Date, the Debtor owes the Pre-petition Lender at
least $19,963,081 consisting of $19,935,731 in principal and at
least $27,351 in accrued and unpaid interest, fees and charges due
under certain pre-petition loan documents, secured by substantially
all of the Debtor's assets.
As adequate protection, the Pre-petition Lender is granted valid,
perfected, first-priority and additional and replacement security
interest and liens on all of the Debtor's assets in which the
Pre-petition Lender holds validly perfected liens as of the
Petition Date.
Moreover, the Pre-petition Lender is granted super-priority
administrative claims to the extent of any diminution in value, and
subject to the carve-out.
The carve-out consists of quarterly fees payable to the Clerk of
Bankruptcy Court, administrative expense actually incurred as of
the event of default, (c) the aggregate amount of fees and expenses
of any state professional included in the budget, and (d) after an
event of default, the reasonable fees and expenses of the estate
professionals that are incurred and allowed by the Court of up to
$100,000 in the aggregate.
The Pre-petition Lender is entitled to adequate protection for the
Debtor's use of pre-petition collateral, including cash collateral
and protection against the diminution in the value of the
Pre-petition Lender's interest in the pre-petition collateral for
any reason.
The Pre-petition Lender reserves the right to credit bid.
Moreover, the Debtor releases, acquits and forever discharges the
Pre-petition Lender and it directors, officers, representatives,
agents, attorneys, financial advisors and controlling persons from
any claim, counterclaim, demand, controversy or any costs and
damages and professionals employees, which the Debtor has against
the released parties that may have arisen at any time prior to the
date of the final hearing on the motion.
A copy of the Order is available for free at https://bit.ly/3eOvUMo
from Omni Agent Solutions, the claims agent.
About Dorchester Resources
Dorchester Resources, LP filed a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Okla. Case No.
21-10840) on April 5, 2021. At the time of the filing, the Debtor
had between $10 million and $50 million in both assets and
liabilities.
Judge Sarah A. Hall oversees the case.
The Debtor tapped Christensen Law Group, PLLC as counsel and Dakil
Auctioneers, Inc. as marketing and sales agent. Omni Agent
Solutions is the claims and administrative agent.
Pre-petition Lender Simmons Bank, as successor-by-merger to Bank
SNB, is represented by:
Joseph J. Wielebinski, Esq.
Annmarie Chiarello, Esq.
WINSTEAD PC
500 Winstead Building
2728 N. Harwood Street
Dallas, TX 75201
Tel: (214) 745-5400
Fax: (214) 745-53900
Email: jwielebinski@winstead.com
achiarello@winstead.com
- and -
William H. Hoch, III, Esq.
Margaret M. Sine, Esq.
CROWE & DUNLEY
A Professional Corporation
Braniff Building
324 N. Robinson Avenue, Suite 100
Oklahoma City, OK 73102-8273
Tel: (405) 235-7700
Fax: (405) 239-6651
Email: will.hoc@crowedunlevy.com
meg.sine@crowedunlevy.com
EAGLE INTERMEDIATE: S&P Assigns 'B-' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings assigned our 'B-' issuer credit rating to Eagle
Intermediate HoldCo Inc. ("Ensono").
S&P said, "We also assigned our 'B' issue-level rating to the
company's proposed first-lien senior secured credit facilities that
includes a $100 million five-year revolver and a $723 million
seven-year first-lien term loan. The recovery rating is '2'. We
assigned our 'CCC' issue-level rating to the company's proposed
$250 million second-lien secured term loan, with a '6' recovery
rating.
"The stable outlook reflects our expectation for customer capex
investments to support robust earnings growth and deleveraging,
mostly from growing demand for its mainframe services and public
cloud services."
Ensono's IT services are sticky with customers and customer churn
remains low. S&P believes that many of Ensono's customers view IT
management as critical to their businesses and that it would be
very challenging to rip and replace IT managed service providers.
The IT environment has grown more complex over the last few years
as companies are tasked with operating their IT through a number of
infrastructures, including mainframe, private cloud, and public
cloud. Ensono helps its customers manage IT infrastructure
end-to-end, modernizing business apps, and provides mainframe
talent which is harder to find as mainframe programmers leave the
workforce.
Churn as a percentage of monthly recurring revenue was about 1% in
2019 and under 1% in 2020 despite a high level of uncertainty in
the economic environment during most of the year. S&P believes
Ensono can grow with a continued rise in volume--from both existing
customers increasing their data needs and new customer acquisition,
despite on-going downward pressure on pricing of IT services.
S&P said, "The stable outlook reflects our view that cash flow will
remain relatively low over the next few years after capital
expenditures, capital lease payments, and software license
payments, but we expect the company to maintain sufficient
liquidity over the next 12 months. We expect leverage to improve to
the low-7x area by the end of 2021, from the mid-7x area pro forma
for deal close as a result of continued earnings growth. Business
growth is supported by mainframe outsourcing and continued high
growth for public cloud services--ultimately leading to sustained
revenue growth of about 8% annually.
"We could lower the rating if the company's liquidity is not
sufficient to meet debt service and other contractual commitments
as demonstrated by sustained negative free cash flows. Higher
mandatory payments, inability to refinance large capital lease
payments, or declining cash flow from operations could lead to a
tighter liquidity position and lead us to believe the capital
structure is unsustainable. A downgrade could also occur because
elevated customer churn leads to sustained revenue declines or if
the company fails to achieve profitable growth and EBITDA expansion
from upfront capital investments.
"We could raise the rating if Ensono reliably generates positive
cash flow after debt service and other mandatory payments while
leverage improves and sustains at levels less than 6.5x. This could
occur if the company continues to grow in 6%-9% range with margin
expansion toward the mid-20% area. We would also assess business
diversification whereby the company materially grows its public
cloud services and private cloud businesses such that exposure to
mainframe services is reduced."
EAS GRACELAND: Wins Cash Collateral Access Thru May 25
------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Tennessee has
authorized EAS Graceland LLC to use cash collateral on an interim
basis through May 25, 2021, and provide adequate protection.
The Debtor requires access to cash collateral to operate its
ongoing business and fund interim cash requirements, including for
maintenance, utilities, supplies, insurance, taxes, landscaping and
other services from third parties and other operational costs until
the subsequent hearing.
The Debtor is authorized to spend up to a maximum of 105% of each
line item listed under "Expenses" on the Budget and to spend up to
a maximum of 105% of the aggregate total amount identified in the
"Total Expenses" line item on the Budget.
The Debtor is also authorized to pay quarterly fees due to the U.S.
Trustee program for disbursements made by the Debtor. The Debtor
may spend cash collateral for capital expenditures, except that the
Debtor may only spend cash collateral for the items listed as "Room
Repairs & Furniture (to bring more rooms online)" beginning in
November 2020 if Debtor is in compliance with the Interim Budget.
The Debtor may spend additional cash collateral to pay other
amounts as may be agreed by the Debtor and iBorrow REIT, L.P., as
lender, in writing.
iBorrow asserts a first priority perfected security interest and
liens in the Collateral. iBorrow asserts that as of September 15,
2020, the Debtor owed it $3,337,831.
EAS Graceland asserts that iBorrow is adequately protected by an
equity cushion in the Debtor's Property.
As adequate protection for the Debtor's use of cash collateral, the
Cash Collateral Order provides that iBorrow is granted a
replacement, postpetition security interest in and lien upon all of
the Debtor's assets of the same type in which iBorrow holds a
prepetition lien or security interest, including without limitation
cash collateral, to the extent that the Debtor's use of cash
collateral results in any decrease, following the petition date, in
the value of the collateral securing iBorrow's claims, with such
replacement liens being subject to any prior liens and encumbrances
existing on the petition date and with such replacement liens
having the same validity as iBorrow's liens and security interests
in prepetition collateral.
The Debtor is also directed to make adequate protections payments
to iBorrow. The payments will consist of $25,600 plus 50% of any
amount remaining after payment of items consistent with the Interim
Budget. The adequate protection payment for the month of April 2021
will be remitted to iBorrow no later than May 3, 2021.
As additional adequate protection, the Debtor will collect,
segregate, and retain all postpetition revenue collected from the
operation of the Property in one or more Debtor-in-possession
accounts at depositories approved by the United States Trustee that
do not contain funds generated from other properties owned or
operated by the Debtor.
A copy of the Order is available at https://bit.ly/3harhz0 from
PacerMonitor.com.
About EAS Graceland
EAS Graceland, LLC is a Single Asset Real Estate debtor. It sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D.
Tenn. Case No. 20-24484) on Sept. 15, 2020. In the petition signed
by Laure Marmontel, manager, the Debtor disclosed up to $50,000 in
assets and up to $10 million in liabilities.
Judge David S. Kennedy oversees the case.
Glankler Brown PLLC serves as Debtor's legal counsel.
iBorrow Reit, L.P. is represented by Ryan K. Cochran, Esq. at
Waller Lansden Dortch & Davis, LLP.
EASTERDAY RANCHES: Sets Bidding Procedures for Sale of All Assets
-----------------------------------------------------------------
Judge Whitman L. Holt of the U.S. Bankruptcy Court for the Eastern
District of Washington authorized the bidding procedures proposed
by Easterday Ranches, Inc., and Easterday in connection with the
auction sale of all or substantially all assets.
Qualified Bidders seeking to submit bids for the Assets must do so
in accordance with the terms of the Bidding Procedures and the
Order.
Following entry of the Order, the Debtors will be authorized, but
not obligated, to select one or more bidders to act as a stalking
horse bidder and enter into a purchase agreement.
As set forth in the Bidding Procedures, the Debtors have the
option, but are not required, to designate a Stalking Horse Bidder
in their business judgment. To the extent a determination is made
by the Debtors to provide for and pay Bid Protections in connection
with a Stalking Horse APA, the Debtors will disclose such Bid
Protections in the corresponding motion designating a Stalking
Horse Bidder to be filed pursuant to the Bidding Procedures. The
Stalking Horse Bidder Motion will set forth the reasons the Debtors
believe the Bid Protections satisfy the requirements of section
503(b) of the Bankruptcy Code.
A hearing will be held within eight days of filing of the Staking
Horse Bidder Motion. Any objection to the designation of Stalking
Horse Bidder or to the Bid Protections set forth in the Stalking
Horse Bidder Notice will be filed no later than one business day
before the hearing at 4:00 p.m. (PT). Absent any timely Stalking
Horse Objection, such Bid Protections may be paid without further
action or order by the Court as required by the stalking horse
agreement with the Stalking Horse Bidder.
Any credit bid made by a Successful Bidder or Backup Bidder must
include a cash component sufficient to pay the Bid Protections and
any fees and expenses that will be payable by the Debtors to their
broker at the closing.
If the Debtors designate a Stalking Horse Bidder, they will file
the Stalking Horse Bidder Motion. The Stalking Horse Bidder
Motion, if filed, will also include a copy of the Stalking Horse
Bidder's Qualified Bidder APA, and will include modifications to
the bidding and auction procedures necessary to account for the
Stalking Horse Bid. TStalking Horse Bid will be deemed to
constitute a Qualified Bid and such Stalking Horse Bidder will be
deemed to be a Qualified Bidder.
The Bid Deadline is May 31, 2021, at 4:00 p.m. (PT). If at least
two Qualified Bids (including, if applicable, any Stalking Horse
Bid) are received by the Bid Deadline, the Debtors will hold the
Auction on June 14, 2021 commencing at 10:00 a.m. (PT) in
accordance with the Bidding Procedures, via videoconference unless
otherwise determined by the Debtors and communicated to all
Consultation Parties and Qualified Bidders.
Promptly following the conclusion of the Auction (and not later
than one calendar day thereafter), the Debtors will promptly file
with the court the Notice of Auction Results. If theys do not
receive a Stalking Horse Bid or other Qualified Bid by the Bid
Deadline, then the Debtors may file a notice cancelling the
Auction.
The Sale Hearing will commence on July 14, 2021, at 11:00 a.m.
(PT). The Sale Objection Deadline is June 30, 2021 at 4:00 p.m.
(PT). Any reply to any objection to the Sale must be filed by July
12, 2021, at 4:00 p.m. (PT).
The Sale Notice and Assumption and Assignment/Cure Notice are
approved in all respects.
The Assumption and Assignment Procedures are approved in all
respects. The Cure Objection Deadline is May 17, 2021, at 4:00
p.m. (PT) and the Assumption and Assignment Objection Deadline is
June 30, 2021, at 4:00 p.m. (PT).
If a Contract Counterparty timely files a Cure Objection and the
amount in dispute is less than $100,000, the Sale Hearing will be
used a status conference with respect to such Cure Objection. If,
however, the amount in dispute is more than $100,000, the Debtors
reserve the right to have such dispute resolved at the Sale
Hearing.
The other salient terms of the Bidding Procedures are:
a. Each Bid must clearly set forth the purchase price in U.S.
dollars to be paid for each individual Asset subject to the
applicable asset package, including and identifying separately any
cash and non-cash components.
b. On the Bid Deadline, each Bid, other than a credit bid,
must be accompanied by a cash deposit in the amount equal to 10% of
the aggregate cash and non-cash Purchase Price of the Bid, to be
held together with other bidders' cash deposits in a
non-interest-bearing account to be identified and established by
the Debtors.
c. Joint Bids are permitted, provided that the Qualified
Bidders have complied with the Joint Bid Discussion Protocol.
d. Any Secured Creditor with the right and power to credit
bid claims secured by their liens, will have the right to credit
bid all or a portion of such Secured Creditor's secured claims.
e. Pursuant to the Bidding Procedures Order, the Debtors are
authorized, but not obligated, in the exercise of their business
judgment, in consultation with the Consultation Parties, to provide
the Stalking Horse Bidder with bid protections, subject to further
Court approval.
f. Bidding will commence at the Baseline Bid. The first
overbid at the Auction will be in an amount not less than (i) the
amount of the Baseline Bid plus (ii) the Bid Protections (if any)
plus (iii) an additional increment in an amount to be determined by
the Debtors.
g. Any Overbid following the Minimum Initial Overbid or
following any subsequent Prevailing Highest Bid for all or
substantially all of the Assets will be in increments in such
amounts to be determined by the Debtors. The Debtors may establish
different overbid increments at the Auction.
Notwithstanding the possible applicability of Bankruptcy Rules
6004(h) or 6006(d), the terms and conditions of the Order will be
immediately effective and enforceable upon its entry.
A copy of the Bidding Procedures is available at
https://tinyurl.com/a5f57bny from PacerMonitor.com free of charge.
About Easterday Ranches and Easterday Farms
Easterday Ranches, Inc. is a privately held company in the cattle
ranching and farming business.
Easterday Ranches sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Wash. Case No. 21-00141) on Feb. 1,
2021. Its affiliate, Easterday Farms, a Washington general
partnership, filed a Chapter 11 bankruptcy petition (Bankr. E.D.
Wash. Case No. 21-00176) on Feb. 8, 2021. The cases are jointly
administered under Case No. 21-00141.
At the time of the filing, the Debtors disclosed assets of between
$100 million and $500 million and liabilities of the same range.
Judge Whitman L. Holt oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as their lead
bankruptcy counsel, Bush Kornfeld LLP as local counsel, and Davis
Wright Tremaine LLP as special counsel. T. Scott Avila and Peter
Richter of Paladin Management Group serve as restructuring
officers.
The U.S. Trustee for Region 18 appointed an official committee of
unsecured creditors on Feb. 16, 2021.
ELECTRONIC DATA: Seeks to Hire Waldrep Wall as Bankruptcy Counsel
-----------------------------------------------------------------
Electronic Data Magnetics, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of North Carolina to hire
Waldrep Wall Babcock & Bailey, PLLC as its bankruptcy counsel.
The firm's services include:
(a) advising the Debtor with respect to its powers and duties
in the continued operation of its business;
(b) advising the Debtor with respect to all general bankruptcy
matters;
(c) preparing legal papers;
(d) representing the Debtor at all critical hearings on
matters relating to its affairs and interests;
(e) prosecuting and defending litigated matters that may arise
during the Debtor's Chapter 11 case;
(f) preparing and filing a disclosure statement and
negotiating, presenting and implementing a plan of reorganization;
(g) assisting and advising the Debtor with regard to
communications to the general creditor body or other
parties-in-interest regarding any matters concerning the case;
(h) negotiating transactions and preparing any necessary
documentation related thereto;
(i) representing the Debtor on matters relating to the
assumption or rejection of executory contracts and unexpired
leases; and
(j) other legal services.
The firm will be paid at these rates:
James C. Lanik (Partner) $485 per hour
Jennifer B. Lyday (Partner) $425 per hour
John P. McNames (Partner) $350 per hour
Evan A. Lee (Associate) $260 per hour
Marybeth Ford (Paralegal) $220 per hour
Jackie E. Jones (Paralegal) $220 per hour
Waldrep Wall received an initial retainer in the amount of $5,000
on March 9 and a second retainer in the amount of $100,000 on April
6.
Waldrep Wall is disinterested as that term is defined in Section
101(14) of the Bankruptcy Code, according to court papers filed by
the firm.
The firm can be reached through:
James C. Lanik, Esq.
Jennifer B. Lyday, Esq.
Waldrep Wall Babcock & Bailey, PLLC
1076 West Fourth Street
Winston-Salem, NC 27101
Tel: 336-930-7620
Fax: 336-722-1993
Email: notice@waldrepwall.com
About Electronic Data Magnetics
Electronic Data Magnetics, Inc., a High Point, N.C.-based company
that manufactures and reproduces magnetic and optical media, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
N.C. Case No. 21-10222) on April 22, 2021. At the time of the
filing, the Debtor had between $1 million and $10 million in both
assets and liabilities. Judge Lena M. James oversees the case.
Waldrep Wall Babcock & Bailey, PLLC is the Debtor's legal counsel.
Truist Bank, as lender, is represented by Bell, Davis & Pitt, P.A.
ENGINEERED PROPULSION: Taps Peters Revnew as Labor Counsel
----------------------------------------------------------
Engineered Propulsion Systems, Inc., received approval from the
U.S. Bankruptcy Court for the Western District of Wisconsin to hire
Peters, Revnew, Kappenman & Anderson, P.A. as special counsel.
The Debtor needs the firm's legal advice on various labor and
employment matters.
Thomas Revnew, Esq., the firm's attorney who will be providing the
services, will be paid at the rate of $350 per hour. The hourly
rates for other professionals at the firm range from $185 to $400
per hour.
As disclosed in court filings, Peters, Revnew, Kappenman & Anderson
is a "disinterested person" within the meaning of Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Thomas R. Revnew, Esq.
Peters, Revnew, Kappenman & Anderson, P.A.
7300 Metro Blvd., Suite 500
Minneapolis, MN 55439
Phone: 952.921.4622
Fax: 952.896.1704
Email: trevnew@prkalaw.com
firm@prkalaw.com
About Engineered Propulsion Systems
Engineered Propulsion Systems, Inc., a manufacturer of aircraft
engines and engine parts in New Richmond, Wis., filed a Chapter 11
petition (Bankr. W.D. Wis. Case No. 20-11957) on July 29, 2020.
Engineered Propulsion President Michael Fuchs signed the petition.
At the time of the filing, the Debtor was estimated to have $100
million to $500 million in assets and $10 million to $50 million in
liabilities.
Judge G. Michael Halfenger oversees the case.
The Debtor tapped Steinhilber Swanson, LLP as bankruptcy counsel;
Jarchow Law, LLC as its general corporate counsel; and Peters,
Revnew, Kappenman & Anderson, P.A. as labor counsel. Simma,
Flottemesch & Orenstein, Ltd., is the Debtor's accountant.
ENTRUST ENERGY: Wins Cash Collateral Access Thru May 28
-------------------------------------------------------
Judge Marvin Isgur authorized Entrust Energy, Inc., and its
affiliated debtors to use cash collateral on an interim through and
including the week ending May 28, 2021, in accordance with the
Budget. The Debtors' continued access to cash collateral will
allow them to continue their business operation, maintain business
relationships with vendors, suppliers and customers, and make
payroll. The Court also authorized the Debtors to pay fees and
expenses to the U.S. Trustee.
The 27-week cash flow budget through November 5, 2021, provided for
total operating expenses as follows:
$1,273,882 for the week ending May 7, 2021,
$589,477 for the week ending May 14, 2021,
$660,846 for the week ending May 21, 2021,
$601,106 for the week ending May 28, 2021,
$369,893 for the week ending June 4, 2021,
$264,353 for the week ending June 11, 2021,
$192,803 for the week ending June 18, 2021,
$59,316 for the week ending June 25, 2021,
$387,506 for the week ending July 2, 2021,
$17,845 for the week ending July 9, 2021,
$69,316 for the week ending July 16, 2021,
$15,645 for the week ending July 23, 2021,
$40,023 for the week ending July 30, 2021,
$253,236 for the week ending August 6, 2021,
$329,009 for the week ending August 13, 2021,
$27,736 for the week ending August 20, 2021,
$54,359 for the week ending August 27, 2021,
$264,967 for the week ending September 3, 2021
$67,278 for the week ending September 10, 2021,
$27,067 for the week ending September 17, 2021,
$30,444 for the week ending September 24, 2021,
$8,085 for the week ending October 1, 2021,
$78,350 for the week ending October 8, 2021,
$26,735 for the week ending October 15, 2021,
$28,639 for the week ending October 22, 2021,
$15,901 for the week ending October 29, 2021, and
$171,994 for the week ending November 5, 2021.
The Debtor has said creditors are adequately protected because of
the Debtors' cash in excess of approximately $24,675,990 and
accounts receivable in excess of the $17,111,533.
A copy of the Order is available for free at
https://bit.ly/3eizWgN
The Court will convene a final, or on request a further interim,
hearing on May 20, 2021 at 1:30 p.m.
About Entrust Energy
Houston, Texas-based Entrust Energy generates, transmits and
distributes electrical energy to homes and businesses.
Entrust Energy and 14 of its affiliates sought Chapter 11
bankruptcy protection (Bankr. S.D. Texas Lead Case No. 21-31070) on
March 30, 2021. Entrust Energy had estimated assets of between
$100 million and $500 million and liabilities of between $50
million and $100 million as of the bankruptcy filing.
Baker & Hostetler LLP, led by Elizabeth A. Green, Esq., is the
Debtors' legal counsel. BMC Group, Inc. is the claims noticing and
solicitation agent. Judge Marvin Isgur is assigned to the case.
ESSA PHARMA: Incurs $13 Million Net Loss in Second Quarter
----------------------------------------------------------
ESSA Pharma Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a loss and
comprehensive loss of $12.97 million for the three months ended
March 31, 2021, compared to a loss and comprehensive loss of $9.35
million for the three months ended March 31, 2020.
For the six months ended March 31, 2021, the Company reported a
loss and comprehensive loss of $19.49 million compared to a loss
and comprehensive loss of $13.97 million for the six months ended
March 31, 2020.
As of March 31, 2021, the Company had $210 million in total assets,
$4.59 million in total liabilities, and $205.41 million in
shareholders' equity. ESSA is a clinical stage company and does
not currently generate revenue.
As of March 31, 2021, the Company has working capital of
$206,202,601 (Sept. 30, 2020 - $79,093,604). Operational
activities during the six months ended March 31, 2021 were financed
mainly by proceeds from the acquisition of Realm, financings
completed in August 2019, July 2020 and February 2021. At March
31, 2021, the Company had available cash reserves and short-term
investments of $208,597,224 (September 30, 2020 - $78,332,100) to
settle current liabilities of $3,179,691 (Sept. 30, 2020 -
$1,203,324). At March 31, 2021, the Company believed that it had
sufficient capital to satisfy its obligations as they became due
and execute its planned expenditures for more than twelve months.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1633932/000155837021006061/tmb-20210331x10q.htm
About Essa
Vancouver, BC-based Essa Pharma, Inc. ESSA -- www.essapharma.com --
is a clinical stage pharmaceutical company, focused on developing
novel and proprietary therapies for the treatment of prostate
cancer in patients whose disease is progressing despite treatment
with current standard of care therapies, including
second-generation anti-androgen drugs such as abiraterone,
enzalutamide, apalutamide, and darolutamide.
Essa reported a loss and comprehensive loss of $23.44 million for
the year ended Sept. 30, 2020, a loss and comprehensive loss of
$12.75 million for the year ended Sept. 30, 2019, a loss and
comprehensive loss of $11.63 million for the year ended Sept. 30,
2018, and a loss and comprehensive loss of $4.50 million for the
year ended Sept. 30, 2017.
FAIRBANKS COMPANY: July 8 Plan & Insurance Settlement Hearing Set
-----------------------------------------------------------------
The Fairbanks Company filed with the U.S. Bankruptcy Court for the
Northern District of Georgia a motion for entry of an order
approving the Disclosure Statement.
On May 4, 2021, Judge Paul W. Bonapfel granted the motion and
ordered that:
* The Disclosure Statement is approved.
* All Asbestos Claims in Class 4 of the Plan are temporarily
allowed solely for purposes of voting to accept/in favor of or
reject/against the Plan, each in the amount specified in the Voting
Procedures and designated for such Asbestos Claim on the applicable
ballot or master ballot.
* June 24, 2021 is fixed as the last day to file objections
and responses, if any, to confirmation of the Plan and/or one or
more of the Insurance Settlement Motions.
* July 1, 2021 is fixed as the last day for the Plan
Proponents to file and serve a consolidated reply and any other
party in interest may file a reply to any objections or responses
to confirmation of the Plan and/or one or more of the Insurance
Settlement Motions.
* June 24, 2021, at 4:00 p.m. is the Voting Deadline.
* July 8, 2021, at 10:00 a.m. is the Combined Hearing to
consider confirmation of the Plan and the Insurance Settlement
Motions.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/3tA9xjj from PacerMonitor.com at no charge.
Counsel to Debtor:
Paul M. Singer, Esq.
Andrew J. Muha, Esq.
Luke A. Sizemore, Esq.
REED SMITH LLP
225 Fifth Avenue, Suite 1200
Pittsburgh, PA 15222
Telephone: (412) 288-3131
Facsimile: (412) 288-3063
E-mail: psinger@reedsmith.com
amuha@reedsmith.com
lsizemore@reedsmith.com
William L. Rothschild
OGIER, ROTHSCHILD & ROSENFELD, PC
Sandy Springs Office
450 Winfield Glen Court
Sandy Springs, GA 30342
Telephone: (404) 525-4000
Facsimile: (678) 381-1175
E-mail: br@orratl.com
About The Fairbanks Company
Incorporated in 1891, The Fairbanks Company --
http://www.fairbankscasters.com/-- is a Georgia corporation that
manufactures customized material handling equipment in its more
than 200,000-square-foot manufacturing and warehousing facility
located in Rome, Georgia.
The Fairbanks Company sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 18-41768) on July 31,
2018. In the petition signed by CEO Robert P. Lahre, the Debtor
estimated assets of $1 million to $10 million and liabilities of
$100,000 to $500,000.
Judge Paul W. Bonapfel oversees the case.
The Debtor tapped Reed Smith LLP as its bankruptcy counsel, and
Ogier, Rothschild & Rosenfeld, PC, as its local counsel. Cohen &
Grigsby, P.C., is the insurance coverage counsel.
On Oct. 11, 2018, the U.S. Trustee for Region 21 appointed a
committee, which is comprised of creditors who hold unsecured
claims against the Debtor for personal injury or wrongful death
resulting from exposure to asbestos or asbestos-containing
products. The committee tapped Caplin & Drysdale, Chartered as its
legal counsel, and Jones & Walden, LLC as its local counsel.
On April 17, 2019, the court appointed James L. Patton Jr. as legal
representative for persons who may in the future assert an
asbestos-related personal injury claim against the Debtor.
FIREBALL REALTY: $720K Sale of Manchester Property to Sargent OK'd
------------------------------------------------------------------
Judge Michael A. Fagone of the U.S. Bankruptcy Court for the
District of New Hampshire authorized Fireball Realty, LLC's private
sale of the real property located at 16 South Willow Street, in
Manchester, New Hampshire, to Charles Sargent, Sr., and/or assigns
for $720,000 pursuant to the terms of their Purchase and Sale
Agreement.
A hearing on the Motion was held on April 27, 2021, at 10:00 a.m.
The sale is free and clear of all liens, claims and interests to
the fullest extent permitted by Code Section 363, without
advertising or competitive bidding.
In consideration of the payment of the Purchase Price at Closing,
the Debtor may execute and deliver to the Buyer a Fiduciary Deed to
the Subject Property and do, or cause to be done, execute or cause
to be executed and take or cause to be taken each and every act,
action or document required by the Contract.
The Debtor shall:
a. Pay from the Sale proceeds the customary and usual,
out-of-pocket closing costs and expenses incurred by the Debtor in
connection with the Sale, such as Transfer Taxes and recording
fees;
b. Pay in full from the proceeds of the Sale the real estate
taxes assessed against the Subject Property by the City of
Manchester as of the Sale, plus any accrued interest thereon, which
are to be determined;
c. Pay Primary Bank $720,000 from the proceeds of the Sale.
Nothing contained in the Order will affect the right of the Debtor
to contest on any grounds any unpaid Lien or Claim asserted by any
creditor or party interest, including the amount thereof or the
nature, extent, validity, enforceability or perfection of any lien
or other encumbrance or interest in, to or on the Subject Property,
except for the Liens and Claims paid from the Sale proceeds.
For good cause shown to the satisfaction of the Court and because
no objections to the Motion were filed, the 14-day stay
contemplated by F.R.B.P. 6004(h) is waived, and the Order will
become effective immediately upon entry.
About Fireball Realty, LLC
Fireball Realty LLC is a real estate agency in Manchester, New
Hampshire.
The Debtor sought Chapter 11 protection (Bankr. D. N.H. Case No.
19-10922) on June 28, 2019.
The Debtor estimated assets and liabilities in the range of $1
million to $10 million.
The Debtor tapped William S. Gannon, Esq., at William S. Gannon
PLLC as counsel.
The petition was signed by Charles R. Sargent, Jr., member.
FIRST TO THE FINISH: Wins Cash Collateral Access Thru May 18
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Illinois has
entered a Sixth Interim Order authorizing First to the Finish Kim
and Mike Viano Sports Inc. to use cash collateral on an interim
basis through May 18, 2021 and provide adequate protection.
The Court says all terms and conditions of the Interim Order
pursuant to 11 U.S.C. sections 361 and 363 (i) Authorizing Debtor
to Utilize Cash Collateral; (ii) Granting Adequate Protection; and
(iii) Scheduling Final Hearing pursuant to Bankruptcy Rule 4001(b)
dated October 27, 2020, remain in full force and effect except as
explicitly modified by the Sixth Interim Order.
The Challenge Period provided in the prior cash collateral order is
extended through and including May 18, 2021 with respect to any
challenge by Nike USA Inc. of CNB Bank and Trust, N.A.'s liens
only. Moreover, any statutes of limitations or repose will be
tolled with respect to any challenge by Nike of CNB's liens only.
The deadlines set forth in the Interim Order for the Lien Challenge
Period will not be extended for any other party or purpose.
A final telephonic hearing on the Motion is scheduled for May 18 at
9:00 a.m.
A copy of the order is available for free at https://bit.ly/2SCEyWX
from PacerMonitor.com.
About First to the Finish Kim
and Mike Viano Sports Inc.
First to the Finish Kim and Mike Viano Sports Inc. sells sporting
goods, hobbies, and musical instruments.
First to the Finish Kim and Mike Viano Sports filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Ill. Case No. 20-30955) on October 7, 2020. The petition was
signed by Mike Viano, president. At the time of filing, the Debtor
estimated $1 million to $10 million in both assets and
liabilities.
Judge Laura K. Grandy oversees the case.
The Debtor is represented by Carmody MacDonald P.C.
FIVE STAR SENIOR: Posts $3.3 Million Net Income in First Quarter
----------------------------------------------------------------
Five Star Senior Living Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing net income
of $3.32 million on $269.10 million of total revenues for the three
months ended March 31, 2021, compared to a net loss of $17.21
million on $297.45 million of total revenues for the three months
ended March 31, 2020.
As of March 31, 2021, the Company had $471.13 million in total
assets, $179.07 million in total current liabilities, $78.44
million in total long-term liabilities, and $213.63 million in
total shareholders' equity.
Katherine Potter, president and chief executive officer, made the
following statement:
"Our recently announced strategic business plan is designed to
further improve our senior living operations as we reshape our
management business to focus on areas of operational strength as
well as direct our efforts towards where we see the strongest
market opportunities with the active, aging adult population. We
believe this sharpened focus on larger and lower acuity communities
will not only highlight our expertise as a senior living operator,
but also support the evolution of our services business to better
serve our target demographic and continue to diversify our revenue
sources."
"We are pleased to have completed all vaccination clinics across
our communities and proud of our organization for its dedicated
response throughout the COVID-19 pandemic. Our commitment to
safety and wellness underscores our ongoing mission to enrich the
resident experience at our communities and drive the recovery and
future success of our business. We are encouraged to see positive
momentum with move-ins and occupancy trends over the course of
March and April, with 90 net positive moves since March 31st in our
comparable communities."
"Our rehabilitation and wellness services will continue to be an
integral part of our company as we implement our strategic plan.
In the first quarter, Ageility opened eight net new outpatient
rehabilitation clinics. This segment represents approximately 39%
of our total management and operating revenues. Our financial
position remains strong with $109.5 million of unrestricted cash on
our balance sheet and no amounts outstanding on our revolving
credit facility. We feel confident in our ability to execute our
strategic plan throughout 2021 and beyond."
First Quarter Highlights:
* As of May 1, 2021, all of FVE's senior living communities have
completed vaccination clinics and over 85% of FVE's residents have
received a COVID-19 vaccine. At May 1, 2021, all of FVE's owned,
leased and managed senior living communities were accepting new
residents in at least one service line of business (independent
living, assisted living or memory care). Combined senior living
revenues and management fees, including those for communities FVE
manages on behalf of Diversified Healthcare Trust, or DHC, for the
first quarter ended March 31, 2021 decreased to $30.9 million from
$38.0 million for the same period in 2020, primarily due to
decreased average occupancy resulting from the impact of the
COVID-19 pandemic as well as the impact of the sale of nine senior
living communities and closure of seven senior living communities
in 2020 that FVE previously managed on behalf of DHC. Spot
occupancy at communities FVE owns and leases as of March 31, 2021
was 68.2%, which represents a 150 basis points decrease as compared
to Dec. 31, 2020. Spot occupancy at the communities FVE manages on
behalf of DHC was 70.2% as of March 31, 2021, which is a 60 basis
points decrease when compared to Dec. 31, 2020.
* Rehabilitation and wellness services revenues for the first
quarter of 2021 decreased to $19.6 million from $21.4 million for
the same period in 2020, primarily due to a reduction of inpatient
clinic visits as a result of the COVID-19 pandemic partially offset
by the opening of 21 net new Ageility physical therapeutic clinics
since Jan. 1, 2020. For the first quarter of 2021, Ageility opened
8 net new outpatient rehabilitation clinics.
* Net income for the first quarter of 2021 was impacted by $7.8
million of Provider Relief Funds received and recognized under the
Coronavirus Aid, Relief, and Economic Security Act, or CARES Act,
primarily for our senior living communities, which continued to
experience a reduction of revenues and increased expenses related
to decreased occupancy and other impacts of the COVID-19 pandemic.
* Earnings before interest, taxes, depreciation and
amortization, or EBITDA, for the first quarter of 2021 was $6.8
million compared to $(13.1) million for the first quarter of 2020.
Adjusted EBITDA, as described further below, was $6.9 million for
the first quarter of 2021 compared to $12.4 million for the first
quarter of 2020. EBITDA and Adjusted EBITDA for the first quarter
of 2021 includes $7.8 million of Provider Relief Funds received and
recognized under the CARES Act. EBITDA and Adjusted EBITDA are
non-GAAP financial measures.
* As of March 31, 2021, FVE had unrestricted cash and cash
equivalents of $109.5 million. In addition, FVE had no amounts
outstanding under its $65.0 million revolving credit facility.
Strategic Plan
On April 9, 2021, FVE announced a new strategic plan, or the
Strategic Plan, to reposition its senior living management business
to focus on larger independent living, assisted living and memory
care communities as well as stand-alone independent living and
active adult communities.
Pursuant to the Strategic Plan, FVE intends to, among other things,
(i) amend its management arrangements with DHC to transition 108
senior living communities, with approximately 7,500 living units,
that FVE currently manages for DHC, to new operators, (ii) close
and reposition 27 skilled nursing units, with approximately 1,500
living units, in continuing care retirement communities, or CCRCs,
that FVE will continue to manage for DHC, (iii) close 37 Ageility
inpatient rehabilitation clinics in certain transitioning
communities and (iv) eliminate certain positions in FVE's
corporate, regional and divisional teams as well as impacted units
and clinics.
In connection with implementing the Strategic Plan, FVE expects to
incur non-recurring cash expenses of up to $20.5 million,
approximately $15.0 million of which FVE expects DHC will
reimburse. These expenses are expected to include up to $7.5
million of retention bonus payments, up to $10.2 million of
severance, benefits and transition expenses, and up to $2.8 million
of restructuring expenses, of which FVE expects DHC to reimburse
approximately $5.9 million, $7.5 million and $1.6 million,
respectively. FVE expects to complete the transitions and closures
contemplated by the Strategic Plan, or the Transition, by the end
of 2021.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1159281/000115928121000039/0001159281-21-000039-index.htm
About Five Star Senior
Headquartered in Newton, Massachusetts, Five Star Senior Living
Inc. -- http://www.fivestarseniorliving.com-- is a senior living
and rehabilitation and wellness services company. As of March 31,
2021, FVE operated 252 senior living communities (29,265 living
units) located in 31 states, including 228 communities (26,963
living units) that it managed and 24 communities (2,302 living
units) that it owned or leased. FVE operates independent living,
assisted living, and memory care communities, continuing care
retirement communities and skilled nursing facilities.
Additionally, FVE's rehabilitation and wellness services segment
includes Ageility Physical Therapy SolutionsTM, or Ageility, a
division of FVE, which provides rehabilitation and wellness
services within FVE communities as well as to external customers.
As of March 31, 2021, Ageility operated 215 outpatient
rehabilitation clinics and 37 inpatient rehabilitation clinics in
28 states. FVE is headquartered in Newton, Massachusetts.
Five Star reported net loss of $7.59 million for the year ended
Dec. 31, 2020, compared to a net loss of $20 for the year ended
Dec. 31, 2019. As of Dec. 31, 2020, the Company had $454.21
million in total assets, $177.91 million in total current
liabilities, $65.77 million in total long-term liabilities, and
$210.53 million in total shareholders' equity.
FRANCESCA'S HOLDINGS: Files Wind-Down Plan After $18M Sale
----------------------------------------------------------
Alex Wolf of Bloomberg News reports that boutique women's clothing
chain Francesca's Holdings Corp. released a plan to wind down its
bankruptcy estate following an $18 million sale of the business to
an affiliate of TerraMar Capital LLC and Tiger Capital LLC earlier
this 2021.
Francesca's plan would fully compensate the company's lenders and
pay all professional fees, but didn't indicate what general
unsecured creditors would recover.
The company aims to send the plan to unsecured creditors for a vote
later in May 2021, it told the U.S. Bankruptcy Court for the
District of Delaware Wednesday, May 5, 2021.
The Houston-based retailer won court approval in January 2021 to
sell itself.
About Francesca's Holdings
Francesca's Holdings and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No.
20-13076) on Dec. 3, 2020. Francesca's Holdings had total assets
of
$264.7 million and total liabilities of $290.5 million as of Nov.
1, 2020.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped O'Melveny & Myers LLP and Richards, Layton &
Finger P.A. as legal counsel; FTI Capital Advisors LLC as financial
advisor and investment banker; A&G Realty Partners as real estate
advisor; and KPMG LLP as tax and accounting advisor. Bankruptcy
Management Solutions Inc. is the notice, claims and balloting
agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' cases.
Cole Schotz P.C. and Province, LLC serve as the committee's legal
counsel and financial advisor, respectively.
GAINCO INC: Wins Temporary Cash Collateral Access
-------------------------------------------------
Judge David R. Jones authorized Gainco, Inc., to temporarily use
cash collateral to avoid immediate and irreparable harm to Debtor
and its estate pending a final hearing.
The Court directed the Debtor to expend the temporary cash
collateral only pursuant to the terms of the current order and the
budget. The budget -- for the weeks commencing May 1, 2021 and May
8, 2021 -- provided for $170,538 in total expenses, including
$92,000 in payroll and $35,000 in job expenses.
The Court ruled that:
(a) the Debtor shall provide to the Subchapter V Trustee and
Traditions Commercial Finance, LLC, within seven days of the date
of the current order an accounting of all amounts received by the
Debtor on invoices factored with Traditions and immediately
turnover all such funds to Traditions.
(b) the Debtor shall not make any payments on account of any
pre-petition debt prior to the effective date of a confirmed
chapter 11 plan or plans with respect to any of the Debtors, except
with respect to payment to Traditions and as provided in any order
in connection with any request for relief sought by the Debtor at
the outset of the case.
(c) the Debtor shall provide the Subchapter V Trustee and
Traditions, within days of the date of the current Order, copies
of all executory contracts the Debtor has with any person or entity
and any contracts or written agreements with any person or entity
included in the Job Expenses line item of the budget.
(d) alleged creditors (i) Yellowstone Capital LLC, (ii)
Traditions, (iii) Payroll Funding Company LLC, (iv) CHTD Company
and (v) Affiliated Funding Corporation who assert a security
interest in the cash collateral are granted a valid, perfected, and
non-avoidable replacement lien and security interest on all of
Debtor's accounts, receivables and proceeds thereof to the extent
acquired after the Petition Date.
Nothing in the current order, however, shall be construed to be a
determination of the validity, extent or priority of the alleged
claims, liens and security interests of the alleged creditors.
(e) the ad valorem tax liens currently held by San Patricio
County incident to any real property or tangible personal property
shall neither be primed by nor subordinated to any liens granted in
the current order.
A continued hearing on use of cash collateral will be held on May
17, 2021 at 12:30 p.m. It is anticipated that all persons will
appear telephonically and also may appear via video at this
hearing. Audio communication will be by use of the Court's regular
dial-in number. Video participation is available via GoToMeeting.
A copy of the Order is available for free at https://bit.ly/3ha0Qt7
from PacerMonitor.com.
About Gainco, Inc.
Gainco, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-21122 on April 30,
2021. In the petition signed by Theresa Nix, president, the Debtor
disclosed up to $1 million in assets and up to $10 million in
liabilities.
The Law Offices of William B. Kingman, P.C. is the Debtor's
counsel.
GAMESTOP CORP: S&P Upgrades ICR to 'B', Off CreditWatch Positive
----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
video-game retailer GameStop Corp. to 'B' from 'B-' and removed the
ratings from CreditWatch, where S&P placed them with positive
implications on April 5, 2021. S&P also raised the issue-level
rating on the asset-based lending (ABL) facility to 'BB-' from 'B'.
The recovery rating remains '1'.
S&P said, "The stable outlook reflects our expectation for better
operating performance and relatively stable credit protection
measures over the next 12 months.
"The upgrade reflects our view of reduced financial risk following
the $550 million gross equity issuance and redemption of $216
million secured notes. We expect performance to improve in 2021
following weak operating results in 2020. We associate that with
the coronavirus pandemic and the cyclical effects of an elongated
video game console release cycle giving way to pent-up demand. Our
view also considers its recent equity issuance and debt repayment,
and solid credit protection measures. We expect low adjusted
leverage of less than 2x with all adjusted debt compromising
operating lease obligations. The equity offering provides
additional liquidity, which we believe will partially fund its
transformational efforts. These actions come amid significant
management turnover and continued long-term operational risks
because of changing technologies and customer habits in the video
game industry. Despite these risks, we revised our financial risk
profile to intermediate from aggressive given the reduction in
debt.
"We expect significant growth in sales and adjusted EBITDA this
year following volatile performance in 2020. In 2020, sales fell
more than 21% to about $5.1 billion and adjusted EBITDA declined
62% to $151 million as performance was hampered by the pandemic and
cyclicality of the video game industry. In contrast, we expect
sales and EBITDA to normalize in 2021 and revenue to increase 13%
or more on improving demand. We also expect adjusted EBITDA in the
low- to mid-$400 million area with EBITDA margins of about 7%,
compared to 3% in 2020 and 6.2% in 2019. Our margin expectations
assume better sales leverage and the positive effects of cost
reductions last year.
"Our expectations also consider meaningful economic growth and
customer traffic trends as the negative economic effects of the
coronavirus pandemic potentially wane. We also consider the
cyclicality of video game industry sales following the launch of
new video game consoles. We anticipate customers will satiate
pent-up demand following the elongated timeline to the recent video
game generation launch late last year. For fiscal 2021, we forecast
GameStop will sustain better performance, noting the recent
improvement in operating trends including a meaningful increase in
same-store sales in the first quarter. We also expect the company
to maintain positive free operating cash flow (FOCF), with about
$80 million this year. Still, we continue to see uncertainty in its
transitional strategy and execution risks associated with its
business initiatives over the long term."
Management turnover and transformative initiatives do not guarantee
a successful long-term market position. GameStop has undergone
significant management changes the last several months as the
business pivots, in our opinion, toward a model that supports its
transformation strategies. S&P thinks the appointment of new
executives with technology and ecommerce backgrounds and the
announced departure of tenured executives reinforce the retailer's
intention to reinvent itself. This includes the recently announced
departure of CEO George Sherman in July 2021 along with other
C-suite leadership positions, including the CFO and chief marketing
officer, who resigned this year. Moreover, Ryan Cohen, the founder
of e-commerce company Chewy, was designated as chairman-elect of
the board of directors. These actions signal a significant business
transformation will be underway. Prospects for success remain
unclear.
S&P thinks the company's transformative efforts will involve
sizable execution risks and, potentially, a material increase in
its capital investments. GameStop retains a significant
brick-and-mortar store footprint, though its relevance is waning
amid the rapidly emerging industry shift toward digital video game
distribution.
GameStop remains highly dependent on physical video game sales,
increasing long-term operating risks. Its efforts to diversify have
historically led to mixed results. S&P said, "We think the company
remains heavily exposed to physical video gaming products.
GameStop's efforts to diversify into other markets have had modest
benefits and include sales from collectibles, trading cards, and
similar pop-culture products. However, we believe GameStop will
remain highly leveraged to the video game merchandise, especially
physical games over the near term. While GameStop has pursued
initiatives to reinvent itself amid the expanding digital
distribution, we expect increased competition from traditional
players, new market entrants, and video game developers to
intensify. Moreover, we believe GameStop is vulnerable to the video
game industry's highly cyclical nature, lack of supplier diversity,
dependence on customer acceptance and timing of new titles, and
resale of used games."
S&P said, "The stable ratings outlook reflects our expectation that
the recent launch of next-generation video game consoles and demand
for video games will improve operating performance over the next 12
months. We expect relatively stable credit protection measures
including adjusted leverage in the low- to mid-1x range."
S&P could lower the rating if:
-- GameStop inadequately adapts its business model to changing
market conditions, leading us to expect persistent deterioration in
operating results.
S&P could raise the rating if:
-- S&P believes GameStop's business transformation is gaining
significant traction against the evolving industry landscape,
increasing our confidence that it is positioned for sustained
long-term sales and EBITDA growth; and
-- This scenario would likely coincide with a lower dependence on
the video game console cycle and subsequent reduced performance
volatility.
GATEWAY CASINOS: S&P Cuts ICR to CCC on Near-Term Refinancing Risk
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on B.C.-based
casino operator Gateway Casinos & Entertainment Ltd. to 'CCC' from
'CCC+'. S&P Global Ratings also revised its liquidity assessment on
the company to less than adequate from adequate.
S&P said, "At the same time, we lowered our issue-level ratings on
Gateway's first-lien secured debt to 'CCC+' from 'B-' and on the
company's second-lien secured notes to 'CC' from 'CCC-'.
"We believe Gateway faces near-term refinancing risks related to
the upcoming April 2022 maturity of US$150 million held by GTWY
Holdings Ltd. (a holding company [Holdco] that owns a 100% equity
interest in Gateway).
"Gateway will require significant financing in 2022. GTWY Holdings
Ltd. has a US$150 million loan in place, due April 2022, secured by
the Holdco's equity interest in Gateway. We include this debt in
our leverage metric calculation because the Holdco has no operating
assets and generally depends on Gateway for servicing this debt
obligation. Although debt will be amortized significantly through
December 2021, the interest is payment in kind and, as a result, we
forecast about US$179 million will need to be refinanced before
April 2022. We expect the company will have a refinancing plan for
its Holdco debt at least six months before maturity. If delayed,
Gateway and the Holdco could experience refinancing risks if they
face a higher interest rate or an uncertain credit market
environment. The amortization of the Holdco debt already limits
Gateway's financial flexibility and, based on current operations,
we do not believe the company would be able to repay the Holdco
debt through organic cash flow and existing liquidity."
The limited refinancing options, constrained liquidity and
operating cash flow, and approaching debt maturity increase the
likelihood that the Holdco will engage in a transaction with the
debtholders that we could characterize as distressed based on the
terms and conditions agreed on. S&P Global Ratings could view this
as selective default and would result in a further downgrade.
Liquidity will likely be insufficient to pay down the Holdco debt
due April 2022. S&P said, "We expect that the Holdco and Gateway
won't have sufficient liquidity on the balance sheet to repay the
US$179 million due April 2022. In the absence of any organic cash
flow, we forecast that cash on hand and availability under a large
employer emergency financing facility (LEEFF) loan, which
represents Gateway's current liquidity, won't be sufficient to
refinance the upcoming maturity. Therefore, without additional
support from Gateway's financial sponsor, in our opinion, liquidity
will be constrained given the large maturity."
Government policy combined with slow vaccination rollout have
resulted in unpredictable operations, leading to cash flow
uncertainty. Operations in the Ontario gaming properties have been
unpredictable through the COVID-19 pandemic, with venues not only
operating at severely restricted capacity but also operating
intermittently in response to provincial orders. In addition, it is
unclear when the B.C. properties will be allowed to reopen. S&P
said, "Given the irregular operations (with restricted capacities
when operational) in Ontario and unpredictability as to when they
will be lifted, uncertainty on the B.C. properties reopening, slow
rollout of vaccinations, and the potential for a prolonged closure
in Ontario, there is a risk that revenue generation could be weaker
than we forecast. Even though we expect that Gateway will benefit
from various government programs that will subsidize costs and
support EBITDA generation, we still don't expect revenues to
recover enough in the next 12 months to generate cash flow to
refinance the Holdco debt."
The negative outlook reflects S&P Global Ratings' view that
although the LEEFF funding, along with cash on the balance sheet,
provides Gateway with sufficient liquidity to cover its interest
and debt amortization payments through fiscal 2021, the April 2022
maturity of the Holdco debt is a source of significant refinancing
risk.
S&P said, "We could lower our rating on Gateway if we expect the
company or the Holdco to initiate a distressed debt exchange or
restructuring over the next six months if the pace of recovery is
slower than expected.
"We could consider a positive rating action if properties reopen
such that Gateway generates sustained EBITDA growth while a
credible plan is pursued to refinance the 2022 Holdco debt
maturity."
GENWORTH FINANCIAL: S&P Places 'B-' ICR on CreditWatch Positive
---------------------------------------------------------------
S&P Global Ratings placed its 'B-' issuer credit rating on Genworth
Financial Inc. and 'BB+' long-term financial strength and issuer
credit ratings on Genworth Mortgage Insurance Corp. (GMICO) on
CreditWatch with positive implications.
S&P said, "Our CreditWatch positive placement follows Genworth's
announcement earlier through its intermediate holding company,
Enact, of a filing of a red herring prospectus for a partial IPO of
EHI. We view this filing as a strategic initiative to improve
Genworth's financial flexibility and GMICO's competitive standing.
While the IPO is subject to market conditions and necessary
regulatory and government-sponsored enterprises (GSEs; Fannie Mae
and Freddie Mac) approvals, we believe there is a good likelihood
of the IPO being completed in the next few weeks. Although
execution risk remains, the outlook for the U.S. economic recovery
and mortgage insurance sector conditions have improved from last
year, which could aid in valuation as well. Our sector view of U.S.
mortgage insurance is stable. A successful completion of the IPO
(of about 20%) provides for the regulatory and minority
shareholders' oversight expected of a publicly listed company. In
addition, we view the governance arrangements through an
independent capital committee with input on specific capital
management decisions as a credit positive. This is further
supported by Genworth's decision to maintain a majority independent
board, although the company retains the right to nominate the
majority of the directors. Collectively, these factors could help
in limiting Genworth's influence, partially mitigating risks from
Genworth's weaker creditworthiness and thereby improving GMICO's
credit profile. However, we do not believe GMICO will be fully
insulated, as Genworth will still have control and influence
through at least 80% ownership. We don't expect that Genworth will
further reduce its stake in Enact.
"The CreditWatch positive placement on our ratings on Genworth
reflects the improvement in the company's liquidity profile and its
ability to manage its near-term obligations. If sufficient proceeds
are raised, along with $757 million in cash as of the end of
first-quarter 2021, Genworth can pay its September 2021 maturity
and AXA obligations in full, with the remaining cash to cover
ongoing expenses into 2022. Genworth's financial flexibility will
likely improve when regular dividends are initiated by Enact's
board, which would help manage maturities in 2023-2024 totaling
about $800 million. However, it may be late 2021 or 2022 before
dividends can be expected. Currently, GSEs have restricted dividend
payments from mortgage insurance operating companies due to the
stressed economic conditions. The constraints on dividends from
GMICO to the holding company could potentially continue as long as
the forbearance relief remains in effect. In addition, Enact's
board will have to implement a dividend policy, so there is some
risk to the timing and level of dividends that can be expected. In
the meantime, tax transfers from Genworth's subsidiaries could help
partially offset the drag from operating expenses once the
2021-2022 obligations are paid down, although those could be lower
than in recent quarters.
"We have withdrawn our 'B' short-term rating on Genworth at the
issuer's request."
GMICO
The CreditWatch positive placement reflects GMICO's governance
benefits from the partial IPO listing.
S&P could raise its ratings on GMICO by up to two notches within
the next three months if:
-- The IPO is successfully completed, resulting in about 20%
minority shareholding,
-- Governance aspects are assessed to provide meaningful
mitigation of Genworth's influence,
-- GMICO's capitalization is sufficiently redundant at the 'BBB'
stress level.
S&P could affirm the ratings and revise the outlook to negative in
case the IPO is not completed within the next three months.
Furthermore, S&P could lower our ratings on GMICO over the next 12
months if:
-- Genworth's consolidated capitalization weakens below the 'BBB'
confidence level on a sustained basis; or
-- Genworth's consolidated financial leverage (excluding life and
runoff operations) is not below 50% or consolidated fixed-charge
coverage is below 2.0x.
Genworth
The CreditWatch positive placement reflects Genworth's scope of
debt reduction and relative improvement in the company's liquidity
profile. S&P anticipates that the proceeds from the IPO would help
Genworth's consolidated financial leverage (excluding life/runoff)
to sustainably improve to about 40% and fixed-charge coverage to
about 4x over the next two years.
S&P could raise its ratings on Genworth by one notch within the
next three months if:
-- The IPO is successfully completed and liquidity risks abate;
-- Genworth's consolidated capitalization remains redundant at the
'BBB' level.
In case the IPO is not completed, S&P could revise the outlook to
negative and potentially lower the ratings within the next 12
months if Genworth's ability to service its obligations and debt
maturities beyond 2021 doesn't improve.
GRAY TELEVISION: S&P Alters Outlook to Stable, Affirms 'B+' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on U.S. television
broadcaster Gray Television Inc. to stable from positive. At the
same time, S&P affirmed its 'B+' issuer credit rating, on the
company.
S&P said, "Additionally, we placed our issue-level rating on Gray's
senior unsecured debt on CreditWatch with negative implications
reflecting our view that incremental senior secured debt in the
capital structure to fund the Meredith acquisition will reduce
potential recovery prospects for unsecured lenders.
"The stable outlook reflects our expectation that leverage will
increase to the low-6x area over the next 12 months due to
incremental debt from the Meredith acquisition, which is within our
previously established 5.5x-6.5x range for the 'B+' rating. We
expect that core advertising will grow at a low double-digit
percent rate in 2021 as the TV broadcasting industry continues to
recover from the recession brought on by the coronavirus pandemic.
"Acquisitions of Meredith's TV stations will push leverage back
above our 5.5x upgrade threshold. Gray is acquiring Meredith's 17
TV stations in a debt-financed transaction valued at $2.7 billion.
The financing for the transaction is fully committed with a $1.45
billion incremental senior secured term loan and $1.35 billion
second-lien secured bridge facility, although the company expects
to raise more permanent financing closer to the acquisition's
closing. While we expect the ultimate financing structure will have
a similar amount of first-lien debt, we believe the company could
raise unsecured debt instead of second-lien debt, since it has
historically had a relatively balanced mix of secured and unsecured
debt in its capital structure. Pro forma for the transaction and
synergies, we expect 2021 adjusted leverage will be in the low-6x
area. Gray has identified $55 million of annualized synergies
related to the Meredith acquisition. Of these synergies, $25
million relate to a step-up in Meredith's retransmission rates to
Gray's retransmission rates that we expect will be realized near
closing, with the remainder to be realized largely in 2022. While
we expect the company to be able to reduce leverage below 5.5x over
the long term, particularly as large-scale acquisition
opportunities in the industry have become more sparse, we do not
expect this to happen until 2023 at the earliest and the pace of
deleveraging will remain dependent on its financial policy."
Recently announced acquisitions are consistent with Gray's
historical financial policy. Gray has a history of increasing
leverage to fund acquisitions and subsequently deleveraging to
provide financial flexibility. Prior to acquiring Quincy and
Meredith, Gray increased leverage to above 6x (including preferred
stock) to fund the acquisition of Raycom Media in January 2019. The
company reduced leverage to about 5x at the end of 2020, but the
Meredith acquisition will push leverage back to the low-6x area in
2021. S&P expects Gray will continue to seek ways to invest in its
business, but believe there are limited opportunities for
additional large scale consolidation remaining in the TV broadcast
industry with the current regulatory framework. Following Gray's
pending acquisitions, it will reach 25% of U.S. TV households
(including the UHF discount) relative to the maximum 39% allowed by
the Federal Communications Commission.
S&P said, "Absent additional acquisitions, we believe the company
will continue to use more of its free operating cash flow (FOCF) to
fund shareholder-friendly initiatives. Gray has a share repurchase
authorization of over $200 million and repurchased $75 million in
2020. The company also initiated a common dividend of $0.08 per
share that will be a cash outflow of roughly $30 million annually.
Despite increasingly using cash flow to reward shareholders, the
company also has a track record of repaying debt. We expect Gray
will reduce leverage through debt repayment, but do not believe
that it will be able to repay sufficient debt to reduce leverage
below our 5.5x upgrade threshold over the next 12 to 24 months."
Debt financing for the acquisition of Meredith's TV stations will
likely reduce recovery prospects for unsecured debtholders. S&P
said, "As the transaction will be fully debt-funded and could
potentially introduce another tranche of debt in front of the
existing senior unsecured notes, we believe it is likely that the
recovery prospects of unsecured noteholders will likely deteriorate
as a result of the Meredith transaction because of the incremental
senior debt in the capital structure. We will not be able to assess
the actual impact to recovery until we know the details of the
permanent financing. Therefore we are placing our 'B+' issue-level
rating on the unsecured notes on CreditWatch with negative
implications and plan to resolve the CreditWatch when the final
capital structure is announced and the transaction closes."
S&P said, "The stable outlook reflects our expectation that
leverage will increase to the low-6x area over the next 12 months
due to incremental debt from the Meredith acquisition. It also
reflects our expectation that core advertising will grow at a low
double-digit percent rate in 2021 as the TV broadcasting industry
continues to recover from the coronavirus pandemic.
"We could raise the rating if we expected the company's financial
policy regarding debt repayment, shareholder returns, and
acquisitions would support the company achieving sustained leverage
below 5.5x over the next 12 months."
Although unlikely over the next 12 months, we could lower the
rating if S&P expected leverage to increase above 6.5x. This could
occur if:
-- A resurgence in the coronavirus pandemic caused the recovery in
core advertising to stall;
-- Subscriber declines accelerated, causing net retransmission
revenues to decline; and
-- The company used most of its cash balance for
shareholder-rewarding initiatives.
H.R.P. II: Hearing on Sale of Hammond Property Set for May 11
-------------------------------------------------------------
Judge James R. Ahler of the U.S. Bankruptcy Court for the Northern
District of Indiana issued an order amending his previous order
authorizing H.R.P. II, LLC's bidding procedures in connection with
the sale of its real, personal and intangible property located at
1717 Summer Street, in Hammond, Indiana, to Transport Properties,
LLC, for $1.2 million, pursuant to the terms and conditions of the
Contract, subject to overbid.
The following is a summary of the parcels included in the proposed
sale, with reference to property owner, assessed value and
outstanding taxes that are allegedly due and owing with respect to
each parcel, including prior years and 2018 taxes payable in 2019:
PIN Owner Assessed Value
Alleged Taxes through 2019 Estimate
2018,
payable in 2019
45-07-05-151-005.000-023 Debtor $ 74,400 $
16,674.39 $ 3,443.32
45-07-05-151-006.000-023 Non-Debtor HRP $ 24,200 $
5,275.18 $ 1,403.38
45-07-05-151-003.000-023 Debtor $301,700
$198,408.02 $12,679.90
45-07-05-151-004.000-023 Non-Debtor HRP $118,500 $
6,361.30 $ 5,235.38
45-07-05-151-002.000-023 Debtor $ 39,900 $
8,827.15 $ 2,041.36
45-07-05-151-001.000-023 Debtor $ 7,000 $
745.76 $ 314.46
45-07-06-278-021.000-023 Debtor $ 26,500 $
16,627.08 $ 1,106.86
45-07-06-227-011.000-023 Debtor $ 34,800 $
20,548.43 $ 1,444.14
Totals $627,000
$273,467.31 $27,668.80
The case was heard on April 27, 2021, for the previously scheduled
Sale Hearing.
The Court granted the Debtor's Motion for Entry of an Order
Amending Bidding Procedures Order and Bidding Procedures for Sale
of Property Free and Clear of Liens, Claims and Encumbrances and
Rescheduling the Sale Hearing.
The dates set forth in the Bidding Procedures Order and the Bidding
Procedures are amended as follows:
a. Bid Deadline: April 30, 2021, at 5:00 p.m. (CT)
b. Auction: May 4, 2021, at 11:00 a.m. (CT)
c. Successful Bidder Deadline (i.e., deadline for the Debtor
to file and serve notice of Successful Bidder and amount of
Successful bid): The calendar day after the Auction is completed at
12:00 p.m. (CT)
d. Sale Objection Deadline: May 7, 2021, at 4:00 p.m. (CT)
e. Sale Hearing: May 11, 2021, at 1:30 p.m. (CT)
About H.R.P. II, LLC
H.R.P. II LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ind. Case No. 17-21695) on June 15, 2017. At
the
time of the filing, the Debtor estimated assets of less than $1
million and liabilities of less than $500,000. Judge James R.
Ahler presides over the case. The Debtor hired Fox Rothschild
LLP,
as general bankruptcy counsel, replacing Shaw Fishman Glantz &
Towbin LLC.
HENRY FORD: Announces Ch.11 Auction Results With Bid from HPV OPCO
------------------------------------------------------------------
On May 6, 2021, Henry Ford Village announced that the auction held
as a part of its court-supervised sale process has concluded with
HFV OPCO, LLC, a newly-formed affiliate of Sage Healthcare Partners
("Sage") deemed as the highest or best offer. The transaction is
subject to Bankruptcy Court approval, as well as regulatory
approvals and customary closing conditions.
In accordance with the terms outlined in the asset purchase
agreement presented during the auction, Sage will acquire all of
HFV's assets for $76.3 million, integrating Henry Ford Village into
its expansive network of senior living communities. Additionally,
Sage plans to increase programmatic activities for residents and
employees while investing in the improvement of HFV's campus. Sage
has also pledged to uphold HFV's current commitments to maintain
the health, safety and lifestyle of its residents.
"HFV's leadership team and advisors are pleased with the results of
the auction. We're confident that Sage, as the winning bidder,
considers the long-term best interests of our residents, employees,
and all the wonderful people that make HFV a true community," said
Chad Shandler, Henry Ford Village's Chief Restructuring Officer and
a Senior Managing Director at FTI Consulting. "Throughout the sale
process, our guiding focus was to identify a path forward that
upheld HFV's values and stabilized its financial position while
allowing us to maintain the care and lifestyle our residents have
come to know, love and rely on. Under Sage's ownership, we believe
HFV will achieve just that while providing a distribution to
unsecured creditors."
"The community at Henry Ford Village is vibrant, and Sage takes
great pride in bearing the responsibility of preserving this
community for years to come," said Avi Satt, President of Sage
Healthcare Partners. "We're excited to bring a new chapter to the
community's story and look forward to strengthening HFV financially
while enhancing the lifestyle residents have come to love. HFV is
more than an exciting addition to Sage's reputable portfolio, it is
an opportunity to carry on the legacy of a long-standing and
wonderful community."
Objections to the sale are due May 21, 2021. The transaction with
Sage will be heard at a hearing with the U.S. Bankruptcy Court
currently scheduled for May 24, 2021.
Additional Information
All relevant sale-related court filings, as well as additional
information about Henry Ford Village's Chapter 11 case are
available at http://www.kccllc.net/HFVor by calling (866) 476-0898
for U.S./Canadian calls or (781) 575-2114 for international calls.
Henry Ford Village is represented in this matter by Sheryl Toby of
Dykema Gossett PLLC. FTI Consulting is serving as Chief
Restructuring Officer (CRO) and restructuring advisor.
About Henry Ford Village
Henry Ford Village, Inc., is a non-profit, non-stock corporation
established to operate a continuing care retirement community
located at 15101 Ford Road, Dearborn, Mich. It provides senior
living services comprised of 853 independent living units, 96
assisted living units and 89 skilled nursing beds.
Henry Ford Village sought Chapter 11 protection (Bankr. E.D. Mich.
Case No. 20-51066) on Oct. 28, 2020. In the petition signed by CRO
Chad Shandler, Henry Ford Village was estimated to have $50 million
to $100 million in assets and $100 million to $500 million in
liabilities.
The Hon. Mark A. Randon is the case judge.
The Debtor has tapped Dykema Gossett PLLC as its legal counsel and
FTI Consulting, Inc., as its financial advisor. Kurzman Carson
Consultants, LLC, is the claims agent.
HEO INC: Wins Cash Collateral Access Thru May 27
------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Gainesville Division, has authorized Heo, Inc. to use cash
collateral on an interim basis through May 27, 2021, the date of
the final hearing.
The Debtor requires the use of cash collateral to fund critical
operations and preserve the value of its assets.
The Debtor is a borrower on loans from the U.S. Small Business
Administration and the Bank of Hope, which may assert security
interests in the Debtor's personal and real property. The Debtor
says that as of the Petition Date, the amount owed to the Lenders
is $926,478.
The Debtor asserts that it generates substantially all of its
revenue from the operation of its property. The Debtor
acknowledges the revenue from the property may constitute Cash
Collateral as that term is defined in 11 U.S.C. section 363.
As adequate protection for the Debtor's use of cash collateral, the
Lenders, to the extent they hold a valid lien, security interest,
or right of setoff as of the Petition Date under applicable law,
are granted a valid and properly perfected lien on all property
acquired by the Debtor after the Petition Date that is the same or
similar nature, kind, or character as each party's respective
prepetition collateral, except that no replacement lien will attach
to the proceeds of any avoidance actions under Chapter 5 of the
Bankruptcy Code. The Adequate Protection Liens will be deemed
automatically valid and perfected upon entry of the Order.
A copy of the Court's order is available for free at
https://bit.ly/3bcyCdu from PacerMonitor.com.
About Heo, Inc.
Heo, Inc. owns and operates a commercial building located at 1356
Union Avenue Memphis, Tennessee. Heo, Inc. is wholly owned and
operated by Hyo S. Heo.
Heo, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N. D. Ga. Case No. 21-20173) on February 18, 2021. In
the petition signed by Hyo Sook Heo, authorized representative, the
Debtor disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Judge James R. Sacca oversees the case.
Rountree Leitman & Klein, LLC represents the Debtor as counsel.
HERTZ CORP: Court OKs Adequate Protection Fix with Lender
---------------------------------------------------------
Judge Mary F. Walrath approved the stipulation between Hertz Corp.
and its debtor-subsidiaries with the Pre-petition Secured Parties
relating to cash collateral and adequate protection issues.
Judge Walrath ruled that:
* the Pre-petition Secured Parties shall file, no later than 4
p.m. (Eastern) on June 4, 2021, the proposed form of Adequate
Protection Order and (ii) one or more motions (each, an Adequate
Protection Motion) pursuant to Section 363(e) of the Bankruptcy
Code and Bankruptcy Rule 4001, and provide proper notice of each
document to the requisite parties-in-interest.
* further hearing to consider the motion will be on June 28,
2021, at 3 p.m. (prevailing Eastern time) unless otherwise agreed
to by the Parties or established by further Court order.
* the Pre-petition Secured Parties and any other
parties-in-interest shall file any replies to the Adequate
Protection Response(s) by June 26, 2021, at 4 p.m. (prevailing
Eastern time).
* the Second Adequate Protection period shall be extended
through the later of (a) June 28, 2021 and (b) the date set forth
in the order entered by the Court following the further hearing,
except as may be otherwise agreed by the Parties or established by
further Court order.
* the Parties will confer regarding scheduling and deadlines
for any discovery, if necessary. Each of the Parties shall obtain
and have access to all materials produced in discovery relating to
the further hearing, if any, provided that any Party's access to
said materials may be subject to any agreements on confidentiality
and disclosure, and to the Protective Order, which Order shall
remain in effect without amendment or modification.
* adequate protection as provided in the Third Interim RAC
Order shall continue through the end of the Second Adequate
Protection period as extended by the First Agreed Order, the Second
Agreed Order, and the current Stipulation and Agreed Order.
* references to the Third Interim Adequate Protection Order in
the DIP Credit Agreement shall reflect the modifications in the
current Stipulation and Agreed Order.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
HOMES BY KC: K. Hutchinson Buying Atlanta Property for $360K
------------------------------------------------------------
Homes by KC, LLC, asks the U.S. Bankruptcy Court for the Northern
District of Georgia to authorize the sale of the real property
located at 1373 Benteen Way SE, in Atlanta, Georgia, to Kristofer
D. Hutchinson for $360,000.
The Debtor owns the Property.
There is one mortgage lien on the Property, which is held by ABS
Loan Trust IV. The Secured Creditor filed a proof of claim in the
amount of $127,664.34. There are no other creditors asserting
liens on the Property.
As shown in the Agreement for Purchase and Sale of Real Estate, the
Debtor proposes to sell the Property for $360,000. The Debtor
submits that the proposed purchase price amounts to fair market
value for the Property. The closing is scheduled for May 25, 2021.
The Debtor has determined that selling the Property pursuant to the
Purchase Agreement is in the best interests of the estate and its
creditors. It asks Court's approval to sell the Property on the
terms set forth in the Purchase Agreement free and clear of liens,
claims, and encumbrances, with all liens or security interests of
the Secured Creditor attaching to the proceeds of the sale.
Finally, the Debtor asks that the order granting the Motion be
effective immediately by providing that the 14-day stays applicable
under Rule 6004(h) of the Bankruptcy Rules be waived.
A copy of the Agreement is available at
https://tinyurl.com/tjt8dnp6 from PacerMonitor.com free of charge.
The Purchaser:
Kristofer D. Hutchinson
E-mail: KHutch365@gmail.com
About Homes By KC
Homes By KC, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 20-63784) on March 2,
2020. At the time of the filing, the Debtor had between $100,001
and $500,000 in both assets and liabilities. Judge James R. Sacca
oversees the case. Rountree, Leitman & Klein, LLC is the Debtor's
legal counsel.
HOMES BY KC: May 11 Hearing on $360K Sale of Atlanta Property
-------------------------------------------------------------
Judge James R. Sacca of the U.S. Bankruptcy Court for the Northern
District of Georgia will convene a hearing on May 11, 2021, at
10:30 a.m. (ET) to consider Homes by KC, LLC's sale of the real
property located at 1373 Benteen Way SE, in Atlanta, Georgia to
Kristofer D. Hutchinson for $360,000.
Given the current public health crisis, hearings may be telephonic
only. Interested parties must check the "Important Information
Regarding Court Operations During COVID-19 Outbreak" tab at the top
of the GANB Website prior to the hearing for instructions on
whether to appear in person or by phone.
The counsel for the Debtor will serve the Order and Notice upon all
creditors and the United States Trustee.
About Homes By KC
Homes By KC, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 20-63784) on March 2,
2020. At the time of the filing, the Debtor had between $100,001
and $500,000 in both assets and liabilities. Judge James R. Sacca
oversees the case. Rountree, Leitman & Klein, LLC is the Debtor's
legal counsel.
HORIZON GLOBAL: Incurs $15.2 Million Net Loss in First Quarter
--------------------------------------------------------------
Horizon Global Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $15.15 million on $199.19 million of net sales for the three
months ended March 31, 2021, compared to a net loss of $17.03
million on $163.25 million of net sales for the three months ended
March 31, 2020.
As of March 31, 2021, the Company had $468.15 million in total
assets, $492.41 million in total liabilities, and a total
shareholders' deficit of $24.26 million.
"We carried our positive momentum from 2020 into the first quarter
of 2021, with our continued operational improvement initiatives
driving significantly improved financial performance," stated Terry
Gohl, Horizon Global's president and chief executive officer. "Our
global team has shown great tenacity as the Company continues to
thrive in this unprecedented macro-economic environment. Our first
quarter financial results reflect improvement across the board,
from sales to profitability, as we continued to execute to our plan
and received outstanding support from our customers and suppliers
across the globe."
Gohl continued, "While a proportion of our period-over-period net
sales increase is attributable to the COVID-impacted environment in
the back half of March 2020, demand levels in January and February
2021 far exceeded those from the prior year periods. The sales
increase is even more impactful when considering industry-wide
logistics and supply chain headwinds. In addition to elevated
sales across the business, our order book increased each month
during the first quarter and continues to grow."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1637655/000163765521000084/hzn-20210331.htm
About Horizon Global
Horizon Global -- http://www.horizonglobal.com-- is a designer,
manufacturer, and distributor of a wide variety of
custom-engineered towing, trailering, cargo management and other
related accessory products in North America, Australia and Europe.
The Company serves OEMs, retailers, dealer networks and the end
consumer.
Horizon Global reported a net loss attributable to the Company of
$36.56 million for the 12 months ended Dec. 31, 2020, compared to
net income attributable to the company of $80.75 million for the 12
months ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$456.49 million in total assets, $480.34 million in total
liabilities, and a total shareholders' deficit of $23.85 million.
HS MIDCO: S&P Affirms 'B-' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
cybersecurity and automation software provider HS Midco Inc. (doing
business as HelpSystems) and its 'B-' issue-level rating on its
revolving credit facility and first-lien term loan (including the
$170 million fungible first-lien term loan).
S&P said, "We affirmed our ratings on HelpSystems following its
announcement of an equity recapitalization to add a new financial
sponsor into its ownership group. The new financial sponsor will
invest new cash equity into the company to join its common equity
ownership group. In addition, HelpSystems' existing shareholders TA
Associates and Charlesbank will reinvest in the business as part of
the transaction. Specifically, the company will issue $588 million
of preferred equity to fund a payment to its current ownership
group. We will treat this preferred equity as debt for analytical
purposes because it is callable and the payment-in-kind margin is
high, which we believe creates an incentive for redemption
(potentially with the proceeds from new debt) potentially in the
third year when it is first callable, although it does not detract
from our view of HelpSystems' credit quality because it is
subordinated to the company's debt and does not require cash
payments."
At the same time, HelpSystems will also complete two acquisitions
focused on cybersecurity. The company has continued to move away
from low-growth automation software and toward higher-growth
cybersecurity solutions via acquisitions. S&P expects it to derive
about 65% of its revenue from cybersecurity following the close of
the two acquisitions. HelpSystems will fund these acquisitions with
a $170 million fungible first-lien term loan and a $130 million
non-fungible second-lien term loan.
S&P said, "We anticipate HelpSystems' starting funds from
operations (FFO) cash interest coverage will be in the high-1x area
due to the negative EBITDA contribution from one of the
acquisitions. However, we believe it will continue to expand its
revenue by the mid-single-digit percent area and maintain
above-average EBITDA margins such that it improves its FFO cash
interest coverage by year-end 2021. We also note that HelpSystems'
capital expenditure is low, which--along with its EBITDA margins of
close to 50%--helps it generate unadjusted FOCF. Even with the
acquisitions HelpSystems completed in 2020, it was still able to
generate more than $60 million of unadjusted FOCF. We believe the
company's high proportion of recurring revenue, above-average
EBITDA margins, close to $100 million of total liquidity, and
unadjusted FOCF of more than $60 million will provide it with ample
liquidity to service its debt over the next couple of years.
"The stable outlook on HelpSystems reflects that, while its debt
load will remain high following the transaction, we believe its
high proportion (almost 80%) of recurring revenue, above-average
EBITDA margins, good growth prospects, and unadjusted FOCF
generation of more than $60 million will enable it to maintain
stable operations over the next few years.
"We could lower our rating on HelpSystems if we believe its capital
structure has become unsustainable. This could occur if there is
prolonged weakness in the spending on information technology (IT)
infrastructure or it experiences missteps in its integration of the
two cybersecurity acquisitions that disrupt its business. We could
also lower our rating if the company's unadjusted FOCF after debt
service approached breakeven and its liquidity declined due to
competitive pressures or large debt-financed acquisitions or
shareholder returns.
"Although unlikely over the next 12 months, we could raise our
rating on HelpSystems if it maintains FFO cash interest coverage of
more than 2x and generates more than $100 million of unadjusted
FOCF. We would also want to see the company's preferred equity
leave the capital structure before we upgraded the rating. We view
an upgrade as unlikely because we expect that the company's
financial sponsors will continue to use its balance sheet to expand
its business."
I MORALES TIRE: June 16 Plan & Disclosure Hearing Set
-----------------------------------------------------
On May 3, 2021, Debtor I Morales Tire Corp. filed with the U.S.
Bankruptcy Court for the District of Puerto Rico a disclosure
statement and plan of reorganization under subchapter V of chapter
11. On May 4, 2021, Judge Mildred Caban Flores ordered that:
* June 16, 2021, at 9:00 a.m. via Microsoft Teams is the
hearing on final approval of the disclosure statement and
confirmation of the Plan.
* The last day for filing written acceptances or rejections of
the plan of reorganization is fixed as not later than 14 days prior
to the confirmation hearing date.
* A written summary of ballots must be filed with the
bankruptcy court and served upon the U.S. trustee 7 days prior to
the hearing on confirmation.
* An objection to the conditionally approved disclosure
statement and to confirmation of a chapter 11 plan shall be filed
and served no later than 14 days prior to the confirmation hearing
date.
* Objections to claims must be filed not later than twenty 21
days prior to confirmation hearing date.
* Applications for compensation shall be filed and served not
later than 7 days prior to confirmation hearing date.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/3unHUuO from PacerMonitor.com at no charge.
The Debtor is represented by:
Javier Vilarino, Esq.
Vilarino & Associates, LLC
1519 Avenida de la Constitucion 5th Floor
San Juan, PR 00918
Phone: +1 787-565-9894
Email: office@vilarinolaw.com
About I. Morales Tire Corp.
Aguas Buenas, P.R.-based I. Morales Tire Corp. filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.P.C. Case No. 21-00311) on Feb. 3, 2021, listing $100,001 to
$500,000 in both assets and liabilities. Judge Mildred Caban
Flores oversees the case. Vilarino & Associates, LLC, serves as
the Debtor's legal counsel.
I-LOGIC TECHNOLOGIES: S&P Rates New $350MM Sr. Secured Notes 'B'
----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level and '3' recovery
ratings to capital markets and data analytics provider I-Logic
Technologies Bidco Ltd.'s (dba ION Analytics') proposed $350
million senior secured notes due in 2028. S&P expects the notes to
rank pari passu with existing first-lien secured credit facilities
(term debt) and have the same guarantors. The transaction will be
leverage neutral with ION using about $315 million of proceeds to
refinance existing dollar- and euro-dominated term loans on a pro
rata basis. In addition, the company will use $35 million in
transaction proceeds for general corporate purposes including
strategic investments in personnel.
The integration of ION's recent merger with Acuris continues to
progress as planned. S&P's stable outlook reflects its view that
the company will demonstrate solid operating performance, high
renewal rates, and cash synergies realization over the next six-18
months, leading to low- to mid-single-digit-percent organic revenue
growth and EBITDA margins expanding from the high-40% to mid-50%
range. This results in leverage falling comfortably below the 8x
area and free operating cash flow to debt improving to the mid- to
high-single-digit-percent range by year-end 2021.
ISSUE RATINGS - RECOVERY ANALYSIS
Acuris Finance Sarl and Acuris Finance US Inc., are the issuers of
the proposed secured notes.
Pro forma for the transaction the company's debt capitalization
will consists of the new secured notes and the existing first-lien
credit facility ($20 million committed revolver, EUR790 million and
$960 million term debt).
S&P said, "Our simulated default scenario contemplates a default
occurring in 2024 due to either operational missteps or a technical
failure in the company's service offerings, along with increased
competitive pressure from existing players in the financial
technology industry.
"We continue to use a going-concern approach because we believe the
company would reorganize in the event of a default given its good
recurring revenue, high contract renewal rate, market position, and
unique data assets. We continue to use a 6.5x EBITDA multiple,
which is in line with the multiples we use for other companies in
the software and services subsector of the technology industry."
Key analytical factors
Simulated default assumptions
-- Simulated year of default: 2024
-- EBITDA at emergence: $194 million
-- Implied enterprise valuation multiple: 6.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): about
$1.2 billion
-- First-lien debt claims: about $1.9 billion
--Recovery expectations: 50%-70% (rounded estimate: 60%)
Note: S&P's debt balances at default include about six months of
pre-petition interest and fees.
INFINERA CORPORATION: Incurs $48.3-Mil. Net Loss in First Quarter
-----------------------------------------------------------------
Infinera Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $48.32 million on $330.91 million of total revenue for the three
months ended March 27, 2021, compared to a net loss of $99.27
million on $330.27 million of total revenue for the three months
ended March 28, 2020.
As of March 27, 2021, the Company had $1.57 billion in total
assets, $505.93 million in total current liabilities, $453.43
million in long-term debt, $1.96 million in long-term financing
obligations, $19.94 million in long-term accrued warranty, $28.96
million in long-term deferred revenue, $3.68 million in long-term
deferred tax liability, $72.91 million in long-term operating lease
liabilities, $86.79 million in other long-term liabilities, and
$393.35 milion in total stockholders' equity.
"The first quarter marked another quarter of strong performance.
Non-GAAP revenue came in ahead of the mid-point of our outlook with
both non-GAAP gross margin and non-GAAP operating margin above the
high end of our outlook," said David Heard, Infinera CEO. "I am
encouraged by the positive start to 2021 with broad-based demand
for our differentiated open optical solutions, and remain confident
about the opportunities ahead of us as we continue to manage
through the current industry-wide supply chain challenges and
ongoing pandemic impact."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1138639/000113863921000075/infn-20210327.htm
About Infinera
Headquartered in Sunnyvale, Calif., Infinera -- www.infinera.com
--is a global supplier of innovative networking solutions that
enable carriers, cloud operators, governments, and enterprises to
scale network bandwidth, accelerate service innovation, and
automate network operations. The Infinera end-to-end
packet-optical portfolio delivers industry-leading economics and
performance in long-haul, submarine, data center interconnect, and
metro transport applications.
Infinera reported a net loss of $206.72 million for the year ended
Dec. 26, 2020, compared to a net loss of $386.62 million for the
year ended Dec. 28, 2019.
As of Dec. 26, 2020, the Company had $1.73 billion in total assets,
$633.88 million in total current liabilities, $445.99 million in
net long-term debt, $1.38 million in long-term financing lease
obligation, $21.34 million in non-current accrued warranty, $29.81
million in non-current deferred revenue, $4.16 million in deferred
tax liability, $76.13 million in operating lease liabilities,
$93.51 million in other long-term liabilities, and $426.28 million
in total stockholders' equity.
INTEGRATED GROUP: Wins Cash Collateral Access
---------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey has
authorized Integrated Group, LLC to use cash collateral on an
interim basis in accordance with the budget.
The Debtor requires immediate authority to use cash collateral to
continue its business operations without interruption, toward the
objective of formulating a plan of reorganization.
The U.S. Small Business Administration has asserted a secured claim
against the Debtor in the approximate amount of $150,000. The SBA
asserts a valid and subsisting first lien and security interest in
the Debtor's accounts receivable and all other assets securing the
Pre-Petition Debt, together with accrued interest, fees and costs.
The SBA asserts it has made a prima facia showing that it has a
properly perfected lien on the Collateral at the commencement of
the case.
The Debtor is authorized to use the Cash Collateral in order to
meet the minimum, reasonable, necessary and ordinary post-petition
cash needs of the Debtor to pay actual post-petition expenses of
the Debtor necessary to (a) maintain and preserve its assets; and
(b) continue operation of its business, including the payment of
payroll, payroll taxes and insurance expenses, and (c) remit
adequate protection payments to the SBA.
As adequate protection for the use of Cash Collateral, the SBA is
granted:
(a) Replacement Lien. A replacement perfected security
interest in and to all of the Debtor's acquired assets, including
but not limited to, accounts receivable, inventory, equipment,
prescription records and files, and general intangibles, under
Bankruptcy Code Section 361 (2), but only to the extent and with
the same priority in the Debtor's Post-Petition Collateral, and the
proceeds thereof, that the SBA held with respect to the Debtor's
Pre-Petition Collateral.
(b) Statutory Rights Under Section 507(b). To the extent that
the adequate protection provided proves insufficient to protect
the SBA's interest in and to the cash collateral, the SBA will have
a super priority administrative expense claim, pursuant to
Bankruptcy Code Section 507(b), senior to any and all claims
against the Debtor under Section 507(b), whether in this proceeding
or in any superseding proceeding, subject to the SBA having a valid
pre-petition lien upon the Debtor's Pre-Pelition Collateral.
(c) Deemed Perfected. Subject to the SBA having a valid
pre-petition lien upon the Debtor's Pre-Petition Collateral, the
replacement lien and security interest granted is automatically
deemed perfected upon the entry of the Order, without the necessity
of the SBA taking possession, filing financing statements,
mortgages or other documents. The Debtor will, upon the request of
the SBA, immediately execute and deliver to the SBA any and all
financing statements, continuation statements, certificates of
title or other instruments or documents considered by the SBA to be
necessary in order to perfect the security interests and liens in
the Debtor's Post-Petition Collateral and the proceeds thereof
granted by the Order, and the SBA is authorized to receive, file
and record the foregoing at the expense of the Debtor, which
actions will not be deemed a violation of the automatic stay
provisions of Code Section 362.
The Debtor will also start remitting monthly payments to the SBA in
the amount of $731 on July 15, 2021.
The SBA agrees to a carve-out from its pre-petition and
post-petition liens in the amount of $40,000 regarding the Debtor's
professional fees and the Subchapter V Trustee's fees. Payments
from other sources will not affect the amount of the carve-out.
The Debtor projects total cash receipts of:
$230,000 for April,
$250,000 for May,
$300,000 for June,
$300,000 for July,
$325,000 for August,
$325,000 for September,
$350,000 for October,
$350,000 for November, and
$350,000 for December.
A copy of the Order and the Debtor's budget is available at
https://bit.ly/3hcaNGD from PacerMonitor.com.
About Integrated Group, LLC
Integrated Group LLC manufactures office furniture, including
fixtures. It sought bankruptcy protection (Bankr. D.N.J. Case No.
21-12484) on March 26, 2021. In the petition signed by Michael
Boyle, managing member, the Debtor disclosed up to $50,000 in
assets and up to $10 million in liabilities.
Judge John K. Sherwood oversees the case.
David Edelberg, Esq., at SCARINCI HOLLENBECK oversees the case.
INW MANUFACTURING: S&P Assigns 'B-' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating to
U.S.-based INW Manufacturing LLC, a third-party manufacturer of
health and wellness products, and its 'B-' issue-level rating to
the term loans. The recovery rating on the term loans is '3',
indicating its expectation for meaningful recovery (50%-70%;
rounded recovery: 65%) in the event of a payment default.
The stable outlook reflects S&P's expectation that INW will
continue to generate satisfactory organic sales and profit growth.
S&P's base-case forecast is for free operating cash flow (FOCF) of
$20 million-$45 million annually over the next two years, adjusted
leverage reduction to the low-5x area over the next year from 6x
pro forma at close, and a pause on large acquisitions. However,
credit metrics may remain weak given integration risk, potentially
more gradual cost synergy realization, and the likely resumption of
debt-financed acquisition activity after 2021.
Private equity firm Cornell Capital LLC acquired INW. INW
simultaneously acquired U.K.-based Bee Health Ltd. and recently
agreed to make another large acquisition.
INW must integrate two sizable acquisitions and consolidate a
portion of its legacy footprint while managing attractive growth
potential in a competitive industry. INW could struggle to manage
its growth-focused business model, including smoothly integrating
Bee Health and the pending acquisition given its modest stand-alone
scale and pre-2020 history of profit volatility. This was primarily
caused by over-reliance on one customer that experienced problems,
but also inventory write offs and difficulties integrating a
previous acquisition (ProTec). S&P estimates these new acquisitions
will increase INW's sales base about 60% and add a few facilities
while diversifying its customer base and geographic footprint.
However, organizational complexity and operational risk will at
least temporarily increase. At the same time, INW continues its
legacy plant integration initiatives.
S&P said, "We believe INW will pause sizable additional
acquisitions, however a resumption is likely by 2022. We believe
Cornell's strategy includes using INW as a platform to make
additional third-party health and wellness manufacturing
acquisitions because of underlying growth potential and significant
market fragmentation. However, the capital raise and management
attention required to effectively consolidate Bee Health and the
pending acquisition will likely limit near-term acquisitions to
small bolt-on deals. Notwithstanding the sizable upfront equity
investment, there could be sustained high leverage if future
acquisition financing consists of a higher mix of debt. We believe
this is possible given financial sponsors' typical desire to
maximize return on investment. We also point to Cornell's recent
leveraging behavior with other portfolio companies."
The company's growth-focused client base faces low barriers to
entry and the need to anticipate evolving consumer demand trends.
INW's top 10 clients account for nearly 50% of pro forma sales, far
less concentrated than in years past. S&P said, "However, we
believe much of its customer base participates in markets with
relatively low barriers to entry, demonstrated by the prevalence of
asset-light consumer product firms that reach end users through
multiple channels, including direct-to-consumer/e-commerce and
direct marketing. We recognize demand for health and wellness
products should remain firm--buttressed by aging populations and a
desire for healthier lifestyles, which the COVID-19 pandemic likely
solidified--and that client insourcing risk is not high due to
limited in-house manufacturing capacity." However, it is important
that INW's largest customers--in many cases with research and
development (R&D) support from the company--anticipate evolving
consumer preferences to hold market share, especially since there
are many competing choices for consumers and new entrants will
likely emerge.
Moreover, INW's pro forma sales continue to overindex to direct
marketers, which carry unique business model opportunities and
risks. Before the pandemic, many direct marketers struggled to
maintain distributor bases in the "gig" economy. As economies
reopen and employment opportunities increase, it's possible some of
these direct marketer clients could see a reversal of sales gains
achieved during the pandemic if they lose distributors. Other
direct marketer risks include managing and adequately compensating
an independent sales force while remaining compliant with
regulations, such as avoiding unsubstantiated product and
income-potential claims. INW's performance under prior ownership
suffered in 2019 due in part to its previous over-reliance on a
direct marketer in China which was hurt by a regulatory-driven
industry crackdown. INW's customer base includes few large,
financially solid consumer health care firms.
S&P said, "We assume INW's moderate profit margins will continue to
improve this year, though the company has an inconsistent track
record. INW's status as a third-party manufacturer involves
moderate EBITDA margins but some input cost protection because of
pass-through arrangements with clients when costs reach certain
thresholds. Nevertheless, its performance largely depends on the
success of its clients' products. Moreover, the potential for
asset-light clients to move business to other manufacturers likely
limits INW's pricing power. We believe INW is one of the larger
players in the approximately $13 billion-$17 billion total
addressable U.S. client market, though its pro forma market share
is 5% or below. In our opinion, its scale is modest. INW's
profitability improved meaningfully in 2020 after deteriorating
significantly in 2019. We estimate adjusted EBITDA declined more
than 50% in 2019 (excluding acquisition earnout-type costs expensed
through the income statement). The profit deterioration was caused
by meaningfully lower demand from its largest customer, inventory
write offs, and acquisition integration missteps. We expect INW's
pro forma profit margins will improve over the next year by at
least 100 basis points, aided by favorable industry trends (such as
aging populations and increased desire for healthy lifestyles), new
customer additions following increased commercial efforts that
began in 2018, the nearly complete closure and transfer of business
from a loss-making legacy facility to other plants, and some
consultant-identified cost savings.
"The stable outlook reflects our expectation that INW will continue
to generate satisfactory organic sales and profit growth. Our
base-case forecast is for FOCF of $20 million-$45 million annually
over the next two years, adjusted leverage reduction to the low-5x
area over the next year from 6x pro forma at close, and a pause on
large acquisitions. However, credit metrics may remain weak given
integration risk, potentially more gradual cost synergy
realization, and the likely resumption of debt-financed acquisition
activity after 2021."
S&P could raise the rating over the next 12 months if INW:
-- Effectively integrates the acquisitions while managing
consolidation activity at the legacy INW facilities;
-- Sustains adjusted leverage below 6.5x; and
-- Generates over $20 million of annual discretionary cash flow
(DCF) after tax distributions.
It would need to achieve these while transacting and integrating
acquisitions (which will likely be primarily debt-financed).
S&P could lower the rating if it believes:
-- The capital structure has become unsustainable, with adjusted
leverage approaching 10x, resulting in forecast break-even to
negative FOCF and EBITDA cash interest coverage of 1.5x or below;
or
-- INW's liquidity will weaken substantially.
This could occur if INW has problems managing its growth-driven
business model, integrating recent and future potential
debt-financed acquisitions, and managing legacy INW consolidation.
It could also result if the company's largest customers lose
significant market share, potentially due to an inability to
anticipate evolving consumer purchasing trends, or competition from
rivals escalates, leading to a loss of business.
J.C. PENNEY: CEO Touts $1.2 Bil. Cash Buffer After Bankruptcy
-------------------------------------------------------------
Eliza Ronalds-Hannon of Bloomberg News reports that JCPenney landed
in bankruptcy court after foundering during the pandemic, but the
reorganized retailer now sports a relatively big liquidity cushion
and its sales are growing.
The company has more than $1.2 billion of cash and credit
availability, interim Chief Executive Officer Stanley Shashoua said
in an interview. And the 119-year-old company, whose financials are
no longer public, has improved sales since it left bankruptcy in
December 2020.
"We are very pleased to be running ahead of plan," Shashoua said.
"With improving sales and cash flow, and a strong liquidity
position, we are turning our focus from stabilization to growth."
About J.C. Penney Company
J.C. Penney Company, Inc. -- http://www.jcpenney.com/-- is an
apparel and home retailer, offering merchandise from an extensive
portfolio of private, exclusive, and national brands at over 850
stores and online. It sells clothing for women, men, juniors, kids,
and babies.
On May 15, 2020, J.C. Penney announced that it has entered into a
restructuring support agreement with lenders holding 70% of its
first-lien debt. The RSA contemplates agreed-upon terms for a
pre-arranged financial restructuring plan that is expected to
reduce several billion dollars of indebtedness.
To implement the plan, J.C. Penney and its affiliates on May 15,
2020, filed voluntary petitions for reorganization under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
20-20182). At the time of the filing, J.C. Penney disclosed assets
of between $1 billion and $10 billion and liabilities of the same
range.
Judge David R. Jones oversees the cases.
The Debtors have tapped Kirkland & Ellis and Jackson Walker, LLP as
legal counsel; Katten Muchin Rosenman, LLP as special counsel;
Lazard Freres & Co. LLC as investment banker; AlixPartners, LLP as
restructuring advisor; and KPMG, LLP as tax consultant. Prime Clerk
is the claims agent, maintaining the page
http://cases.primeclerk.com/JCPenney
A committee of unsecured creditors has been appointed in Debtors'
Chapter 11 cases. The committee is represented by Cole Schotz,
P.C., and Cooley, LLP.
* * *
J.C. Penney in November 2020 won approval to sell substantially all
of its retail and operating assets ("OpCo") to a group formed by
landlords Brookfield Asset Management, Inc. and Simon Property
Group and senior lenders through a combination of cash and new term
loan debt.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal
counsel and BRG Capital Advisors, LLC is serving as financial
adviser to Simon and Brookfield.
JAB OF ROCKLAND: Extends Plan Filing Deadline to July 9
-------------------------------------------------------
Judge Robert D. Drain has entered an order granting JAB of
Rockland, Inc., d/b/a David's Bagels an extension until July 9,
2021, of its deadline to file a Chapter 11 Plan and Disclosure
Statement. The Debtor's deadline to obtain confirmation of the Plan
is also extended to and including August 20, 2021.
About JAB of Rockland Inc.
JAB of Rockland, Inc., which conducts business under the name
David's Bagels, filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 19-23153) on June 11, 2019, disclosing under $1
million in both assets and liabilities. Judge Robert D. Drain
oversees the case. The Debtor is represented by Elizabeth A. Haas,
Esq., PLLC.
JACKSONVILLE ADVANCED: Case Summary & 13 Unsecured Creditors
------------------------------------------------------------
Debtor: Jacksonville Advanced Machining, LLC
3811 University Blvd West
Unit 34
Jacksonville, FL 32257
Business Description: Jacksonville Advanced Machining, LLC is a
manufacturer of precision machine
components.
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 21-01149
Debtor's Counsel: Donald M. DuFresne, Esq.
PARKER & DUFRESNE, P.A.
8777 San Jose Blvd., Suite 301
Jacksonville, FL 32217
Tel: 904-733-7766
Fax: 904-733-2919
E-mail: bankruptcy@jaxlawcenter.com
Total Assets: $378,674
Total Liabilities: $1,171,134
The petition was signed by Ramkumar Devarajan, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/AV63NGY/Jacksonville_Advanced_Machining__flmbke-21-01149__0001.0.pdf?mcid=tGE4TAMA
JACKSONVILLE ADVANCED: Seeks Cash Collateral Access
---------------------------------------------------
Jacksonville Advanced Machining, LLC asks the U.S. Bankruptcy Court
for the Middle District of Florida, Jacksonville Division, for
authority to use cash collateral nunc pro tunc to the commencement
of the case.
The Debtor requires the use of cash collateral to be able to
continue to operate its business and preserve its value as a going
concern.
As part and parcel of its operations, the Debtor generates cash on
a point-of-sale basis. Revenues and receivables are constantly
being deposited in Debtor's operating accounts. Debtor operates one
operating account out of SunTrust Bank.
The prepetition cash in the operating accounts at SunTrust Bank
were frozen just prior the commencement of the case.
The Debtor believes the Internal Revenue Service may allege an
interest in cash collateral as it has levied on the Debtor's bank
account. The collateral securing payment to the IRS has a value of
$49,000.
As adequate protection, the Debtor is offering:
i) a replacement lien to the same nature, priority and extent
that the IRS enjoyed as of the Petition Date; and
ii) cash payments equal to amortize a debt equal to the value
of the collateral that the IRS encumbers over a five-year period at
4% interest.
The Debtor has and will keep throughout the case all insurance
necessary and appropriate to protect the collateral which is
required in the ordinary course of the Debtor's business. The
Debtor proposes to pay the IRS over 60 months at 4% $718.24 per
month as adequate protection towards its claim.
A copy of the motion is available for free at
https://bit.ly/3uBpFCg from PacerMonitor.com.
About Jacksonville Advanced Machining, LLC
Jacksonville Advanced Machining, LLC manufactures metal parts. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 3:21-bk-01149) on May 7, 2021. In
the petition signed by Ramkumar Devarajan, president, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
PARKER & DuFRESNE, P.A represents the Debtor as counsel.
KK ALLIANCE: Case Summary & 3 Unsecured Creditors
-------------------------------------------------
Debtor: KK Alliance, Inc.
f/k/a Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-10138
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of three unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/46WNCDA/KK_Alliance_Inc__pambke-21-01038__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/4IN3VSY/KK_Alliance_Inc__pambke-21-01038__0001.0.pdf?mcid=tGE4TAMA
KK FIT HERSHEY: Case Summary & 7 Unsecured Creditors
----------------------------------------------------
Debtor: KK Fit Hershey, Inc.
d/b/a PA Fitness
f/k/a Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-01039
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisbug, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of seven unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/5VA4DLY/KK_Fit_Hershey_Inc__pambke-21-01039__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/5C3RQ4A/KK_Fit_Hershey_Inc__pambke-21-01039__0001.0.pdf?mcid=tGE4TAMA
KK FIT SOUTH: Case Summary & 4 Unsecured Creditors
--------------------------------------------------
Debtor: KK Fit South York, Inc.
FKA Gold's Gym
2899 Whiteford Road
York, PA 174 02
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-01037
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of four unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/4HIOTBQ/KK_Fit_South_York_Inc__pambke-21-01037__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7SM6GJA/KK_Fit_South_York_Inc__pambke-21-01037__0001.0.pdf?mcid=tGE4TAMA
KK FIT WYO: Case Summary & 3 Unsecured Creditors
------------------------------------------------
Debtor: KK Fit Wyo, Inc.
FKA Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-01042
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of three unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/DVWTNRQ/KK_Fit_Wyo_Inc__pambke-21-01042__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/DDIHGBQ/KK_Fit_Wyo_Inc__pambke-21-01042__0001.0.pdf?mcid=tGE4TAMA
KK FIT YORK: Case Summary & 4 Unsecured Creditors
-------------------------------------------------
Debtor: KK Fit York, Inc.
FKA Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 17, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-01036
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of four unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/7PRYVBY/KK_Fit_York_Inc__pambke-21-01036__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/6ZVV24Q/KK_Fit_York_Inc__pambke-21-01036__0001.0.pdf?mcid=tGE4TAMA
KK FIT: Voluntary Chapter 11 Case Summary
-----------------------------------------
Debtor: KK Fit, Inc.
f/k/a Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-01035
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
The Debtor listed Gold's Gym International as its sole unsecured
creditor holding a claim of $500,000.
A full-text copy of the is available for free at PacerMonitor.com
at:
https://www.pacermonitor.com/view/6B2S2DI/KK_Fit_Inc__pambke-21-01035__0001.0.pdf?mcid=tGE4TAMAx
KKL FIT III: Case Summary & 5 Unsecured Creditors
-------------------------------------------------
Debtor: KKL Fit III, Inc.
DBA PA Fitness
FKA Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 21-01040
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of five unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/CPRJI4Y/KKL_Fit_III_Inc__pambke-21-01040__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/5Z564AA/KKL_Fit_III_Inc__pambke-21-01040__0001.0.pdf?mcid=tGE4TAMA
KOPIN CORP: Incurs $4.1 Million Net Loss in First Quarter
---------------------------------------------------------
Kopin Corporation provided an update on its business initiatives
and reported financial results for the first quarter ended March
27, 2021.
"We are pleased with the strong start to the year, reflecting
increasing demand from customers in multiple market segments," said
Dr. John C.C. Fan, Kopin's CEO. "Revenues increased by
approximately 48% in the first quarter of 2021 as compared to the
first quarter of 2020, primarily driven by our defense production
and funded development programs where we now have more than 10
programs in various stages of development. Several of these are
scheduled to reach initial production ramp and revenues in the
second half of this year and beyond. Our active pipeline of
development programs includes using our advanced display products
in armored vehicle targeting and training systems, rotary-wing
aircraft helmets, automatic and semi-automatic rifle day scopes and
targeting systems, among others. These programs are all using our
microdisplays and are increasingly utilizing our sophisticated
optics systems and ruggedized assemblies. We believe we are the
sole source supplier to most of these programs.
"Our R&D activities have been increasing in the past several
quarters, reflecting the significant opportunities we see in the
augmented and virtual reality space. In particular, our
customer-funded R&D revenues jumped more than 80% year-over-year,
primarily because of the accelerating interest in our efforts
developing the next generation of displays and display
technologies."
Dr. Fan continued, "We also want to address the global
semiconductor chip shortage that has impacted so many industries.
While we do use semiconductor materials in our products,
fortunately we did not experience any meaningful impact from the
shortage in the first quarter of 2021. The current environment is
dynamic, however, and we are working closely with our suppliers and
customers to manage this potential issue.
"In short, we are continuing to make strong progress in executing
our strategy and it is showing in our performance. We are
experiencing the strongest defense segment activities in Kopin's
history and we expect to make a number of exciting announcements in
the coming months. We believe that both AR and VR have gained
tremendous traction in the past year and we expect this momentum to
continue for some time, with Kopin positioned to capitalize on this
opportunity," concluded Dr. Fan.
First Quarter Financial Results
Total revenues for the first quarter ended March 27, 2021 was $11.7
million, compared with $7.9 million for the first quarter ended
March 28, 2020, a 48% increase year over year.
Cost of Products Sold for the first quarter ended March 27, 2021
was $6.4 million, compared with $5.6 million for the first quarter
ended March 28, 2020. Gross margin for the first quarter of 2021
was 15% compared with 5% for the first quarter of 2020.
Research and Development (R&D) expenses for the first quarter of
2021 were $3.6 million compared to $2.3 million for the first
quarter of 2020, a 52% increase year over year. The increase was
driven by the increase in funded research and development
revenues.
Selling, General and Administrative (SG&A) expenses were $5.9
million for the first quarter of 2021, compared to $3.4 million for
the first quarter of 2020. Non-GAAP SG&A expenses were $3.5
million for the first quarter of 2021, compared to $3.3 million for
the first quarter of 2020, a 5% increase year over year.
Net Loss Attributable to Kopin Corporation for the first quarter of
2021 was $4.1 million, or $0.05 per share, compared with Net Loss
Attributable to Kopin Corporation of $3.6 million, or $0.04 per
share, for the first quarter of 2020. Non-GAAP Net Loss
Attributable to Kopin Corporation for the first quarter of 2021 was
$1.8 million, or $0.02 per share, compared with Non-GAAP Net Loss
Attributable to Kopin Corporation of $3.5 million, or $0.04 per
share, for the first quarter of 2020.
Net Cash Used in Operating Activities for the first quarter ended
March 27, 2021 was approximately $0.2 million. Kopin's Cash and
Equivalents and Marketable Securities were approximately $35.6
million at March 27, 2021 as compared to $20.7 million at Dec. 26,
2020. During the quarter ended March 27, 2021, the Company issued
2.4 million shares under its then-existing At-The-Market (ATM)
program and generated $15.5 million in net cash proceeds which
concluded its initial $20 million ATM program.
The Company has no long-term debt.
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/771266/000115752321000574/a52422726ex99_1.htm
About Kopin
Kopin Corporation -- http://www.kopin.com-- is a developer and
provider of innovative display and optical technologies sold as
critical components and subassemblies for military, industrial and
consumer products. Kopin's technology portfolio includes
ultra-small Active Matrix Liquid Crystal displays (AMLCD), Liquid
Crystal on Silicon (LCOS) displays and Organic Light Emitting Diode
(OLED) displays, a variety of optics, and low-power ASICs.
Kopin reported a net loss of $4.53 million for the year ended Dec.
26, 2020, compared to a net loss of $29.37 million for the year
ended Dec. 28, 2019. As of Dec. 26, 2020, the Company had $47.55
million in total assets, $16.88 million in total current
liabilities, $276,409 in noncurrent contract liabilities and asset
retirement obligations, $821,306 in operating lease liabilities,
$1.27 million in other long-term liabilities, and $28.29 million in
total stockholders' equity.
KWK INC: Case Summary & 2 Unsecured Creditors
---------------------------------------------
Debtor: KWK, Inc.
FKA Gold's Gym
2899 Whiteford Road
York, PA 17402
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Middle District of Pennsylvania
Case No.: 21-01041
Debtor's Counsel: Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street
Harrisburg, PA 17110
Tel: (717) 238-6570
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kurt Krieger, president.
A copy of the Debtor's list of two unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/4L5V6HI/KWK_Inc__pambke-21-01041__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/CT2RV6A/KWK_Inc__pambke-21-01041__0001.0.pdf?mcid=tGE4TAMA
L&L WINGS: Seeks to Hire Davidoff Hutcher as Legal Counsel
----------------------------------------------------------
L&L Wings, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ Davidoff Hutcher &
Citron, LLP as its legal counsel.
The firm will render these services:
a. advise the Debtor regarding its powers and duties and the
continued management of its property and affairs;
b. negotiate with creditors of the Debtor, work out a plan of
reorganization and take the necessary legal steps in order to
effectuate such a plan including negotiations with creditors and
other parties in interest;
c. prepare legal papers;
d. appear before the bankruptcy court;
e. attend meetings and negotiate with representatives of
creditors and other parties in interest;
f. advise the Debtor in connection with any potential
refinancing of secured debt or sale of its business;
g. represent the Debtor in connection with obtaining
post-petition financing;
h. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
i. perform all other legal services for the Debtor, which are
necessary to administer its Chapter 11 case.
The firm will be paid at these rates:
Attorneys $400 - $725 per hour
Paraprofessionals $195 - $260 per hour
Robert Rattet, Esq., co-chair of Davidoff Hutcheris, disclosed in a
court filing that his firm is a "disinterested person" as defined
in Bankruptcy Code Section 101(14).
The firm can be reached through:
Robert L. Rattet, Esq.
Jonathan S. Pasternak, Esq.
Davidoff Hutcher & Citron LLP
605 Third Avenue, 34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212-286-1884
Email: rlr@dhclegal.com
jsp@dhclegal.com
About L&L Wings Inc.
L&L Wings, Inc. is a retailer of beachwear and beach sundry items.
It operates 26 stores throughout North Carolina, South Carolina,
Florida, Texas, and California.
L&L Wings sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. N.Y. Case No. 21-10795) on April 24, 2021. In
the petition signed by Ariel Levy, president, the Debtor disclosed
up to $50 million in assets and up to $100 million in liabilities.
Judge Shelley C. Chapman oversees the case. Davidoff Hutcher &
Citron, LLP is the Debtor's legal counsel.
LIQUIDMETAL TECHNOLOGIES: Incurs $691K Net Loss in First Quarter
----------------------------------------------------------------
Liquidmetal Technologies, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $691,000 on $72,000 of total revenue for the three
months ended March 31, 2021, compared to a net loss of $746,000 on
$71,000 of total revenue for the three months ended March 31,
2020.
As of March 31, 2021, the Company had $38.02 million in total
assets, $1.33 million in total liabilities, and $36.69 million in
total shareholders' equity.
Cash used in operating activities totaled $387,000 and $697,000 for
the three months ended March 31, 2021 and 2020, respectively. The
cash was primarily used to fund operating expenses related to its
business and product development efforts.
Cash provided by (used in) investing activities totaled $102,000
and $818,000 for the three months ended March 31, 2021 and 2020,
respectively. Investing inflows primarily consist of proceeds from
the sale of debt securities. Investing outflows primarily consist
of purchases of debt securities and capital expenditures for
additional building improvements.
Cash provided by financing activities totaled $0 and $0 for the
three months ended March 31, 2021 and 2020, respectively.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1141240/000143774921010767/lqmt20210331_10q.htm
About Liquidmetal Technologies
Lake Forest, California-based Liquidmetal Technologies, Inc. --
http://www.liquidmetal.com-- is a materials technology company
that develops and commercializes products made from amorphous
alloys. The Company's family of alloys consists of a variety of
bulk alloys and composites that utilize the advantages offered by
amorphous alloys technology. The Company designs, develops and
sells products and custom parts from bulk amorphous alloys to
customers in a wide range of industries. The Company also partners
with third-party manufacturers and licensees to develop and
commercialize Liquidmetal alloy products.
Liquidmetal reported a net loss of $2.64 million for the year ended
Dec. 31, 2020, compared to a net loss of $7.43 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $38.81
million in total
assets, $1.42 million in total liabilities, and $37.39 million in
total shareholders' equity.
LOVES FURNITURE: To Liquidate Assets After GOB Sales
----------------------------------------------------
Alex Wolf of Bloomberg News reports that Loves Furniture Inc., the
Midwest chain that launched last 2020 from the ashes of Art Van
Furniture, filed a bankruptcy plan that would hand over the job of
liquidating its assets to a trustee.
The company's plan, filed Thursday, May 6, 2021, with the U.S.
Bankruptcy Court for the Eastern District of Michigan, would form a
trust charged with liquidating remaining assets after the company
completes going-out-of-business sales.
The plan would create multiple classes of creditors projected to
receive less than they're owed. The company didn't provide
estimated recovery amounts.
A trustee would have authority to distribute funds to creditors,
administer outstanding claims.
About Loves Furniture
Loves Furniture Inc. -- http://www.lovesfurniture.com/-- is a
furniture retailer that sells furniture, mattresses, home decor and
appliances. It conducts business under the name Loves Furniture
and Mattresses.
Loves Furniture sought Chapter 11 protection (Bankr. E.D. Mich.
Case No. 21-40083) on Jan. 6, 2021. The Debtor was estimated to
have $10 million to $50 million in assets and liabilities at the
time of the filing.
Judge Thomas J. Tucker oversees the case.
The Debtor tapped Butzel Long, A Professional Corporation, led by
Max J. Newman, Esq., as legal counsel; B. Riley Advisory Services
as financial advisor; and Stretto as claims and noticing agent.
On Jan. 14, 2021, the U.S. Trustee for Region 9 appointed an
official committee of unsecured creditors. The committee tapped
Foley & Lardner LLP as its legal counsel and Conway Mackenzie, LLC
as its financial advisor.
LUCKY STAR-DEER: Affiliate Taps Certilman Balin as Special Counsel
------------------------------------------------------------------
Victoria Towers Development Corp., an affiliate of Lucky Star-Deer
Park, LLC, received approval from the U.S. Bankruptcy Court for the
Eastern District of New York to hire Certilman Balin as special
counsel.
The Debtor needs the firm's legal assistance in connection with its
application to the New York Attorney General to update and amend
its offering plan that would allow it to resume the marketing and
sale of its condominium units.
The Debtor owns a condominium located at 133-38 Sanford Ave.,
Flushing, N.Y.
Richard Herzbach, Esq., a partner at Certilman Balin and the
attorney who will be providing the services, will be paid at the
rate of $550 per hour.
The rates for the firm's associates range from $300 to $350 per
hour. Paralegals charge an hourly fee of $250.
Mr. Herzbach disclosed in a court filing that he and other
attorneys at Certilman Balin do not have any relationship to the
Debtor and its affiliates or to other parties in interest in their
Chapter 11 cases.
Certilman Balin can be reached through:
Richard Herzbach, Esq.
Certilman Balin
90 Merrick Avenue
East Meadow, NY 11554
Phone: 516.296.7006/516.296.7000
Fax: 516.296.7111
Email: rherzbach@certilmanbalin.com
About Lucky Star-Deer Park
Lucky Star-Deer Park, LLC, is a single asset real estate as defined
in 11 U.S.C. Section 101(51B). The company is based in Flushing,
N.Y.
Lucky Star-Deer Park and affiliates, Flushing Landmark Realty LLC
and Victoria Towers Development Corp., sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case Nos.
20-73301, 20-73302 and 20-73303) on Oct. 30, 2020. On Nov. 3,
2020, another affiliate, Queen Elizabeth Realty Corp., filed a
Chapter 11 petition (Bankr. E.D.N.Y. Case No. 20-73327). Judge
Robert E. Grossman oversees the cases, which are jointly
administered under Case No. 20-73301.
At the time of the filing, Lucky Star-Deer Park was estimated to
have assets of less than $50,000 and liabilities of between
$100,001 and $500,000.
The Debtors tapped Rosen & Kantrow PLLC as their bankruptcy
counsel, Certilman Balin as special counsel, Joseph A. Broderick
P.C. as accountant, and Miu & Co. as audit consultant.
MERCURY PARENT: S&P Alters Outlook to Stable, Affirms 'B' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Mercury Parent LLC (doing
business as Matrix Medical Network) to stable from negative and
affirmed the 'B' issuer credit rating. S&P also affirmed their 'B'
issue-level and '3' recovery ratings on the senior secured debt
issued by Community Care Health Network Inc.
The stable outlook reflects S&P's expectation that Matrix will
maintain its revenue and EBITDA substantially above 2019 levels,
notwithstanding uncertainty regarding the extent to which improved
margins and new sources of revenues are sustainable.
Growth in EBITDA stemming from Matrix Medical's clinical solutions
business enabled the company to reduce leverage from 6.9x in 2019
to 3.5x in 2020. In response to the COVID-19 pandemic, Matrix used
its clinician workforce and mobile medical clinics to establish a
clinical solutions business, which provides on-site clinical
support for essential service providers, COVID-19 testing and
tracing services, vaccine study and administration support,
clinical trials, lab processing, and environmental assessments.
Despite less than a full year of operations, this business led to
revenue growth of over 50% and EBITDA nearly doubling. S&P's rating
is limited at this time by a high degree of uncertainty regarding
the sustainability of revenues in the clinical solutions business
beyond 2021, as well as uncertainty around the financial policy of
the private equity sponsor, which could bring leverage above 5x.
S&P said, "We expect the company's performance and credit metrics
to remain strong in 2021, subject to financial policy-driven
decisions.Matrix's adjusted leverage declined to about 3.5x in
2020, from 6.9x in 2019, as EBITDA nearly doubled (to $95 million).
We anticipate the business will continue to generate annual free
operating cash above $50 million in 2021.
"Although we believe the company's leverage could potentially
remain below 4x over the next two years, even with an EBITDA
contraction of 250-400 basis points as the company's pricing power
weakens in the clinical solutions business, we assume leverage will
likely increase to above 5x, either via acquisitions or dividends,
given ownership by a financial sponsor.
"Our view of the business reflects the company's narrow focus on
niche health assessment and clinical solution markets, the
fragmented nature of these industries, high customer
concentrations, and relatively low barriers to entry. We view the
company's negotiating power as limited in both markets given the
much larger scale of its top customers and the potential for
insourcing by large private employer customers. We also view
regulatory risk around the usage and frequency of these health
assessments as a key credit risk. Our view of the business
incorporates several strengths, including the company's leading
position and good customer retention rates, and we view the
company's extensive network of more than 4,200 nurse practitioners
and 50 mobile clinics as a moderate barrier to new entrants."
The previous publication reflected the financial risk of CCHN Group
Holdings Inc. as aggressive. It is highly leveraged.
S&P is also withdrawing the issuer credit rating on CCHN Group
Holdings Inc. as it assesses it as analytically undifferentiated
from Mercury Parent LLC.
Environmental, Social, and Governance (ESG) credit factors for this
credit rating change:
-- Health and safety.
S&P said, "The stable outlook reflects our expectation that Matrix
will maintain its revenue and EBITDA substantially above 2019
levels, notwithstanding uncertainty regarding the extent to which
improved margins and new sources of revenues are sustainable.
"We could lower the rating if we expect annual free operating cash
flow to be sustained below 3% of debt (about $10 million). Such a
scenario is possible if the company pursues significant
debt-financed acquisitions, experiences a steeper-than-anticipated
decline in its clinical solutions business, or a disruption in the
health-assessment business.
"We could upgrade Matrix if we become confident in the
sustainability of new revenue sources and EBITDA margins. This
could occur over the next 12 months if the company is able to
position its clinical solutions business for long-term viability
beyond the COVID-19 pandemic through significant contract wins. We
would also need to gain confidence that the company will maintain
leverage below 5x, notwithstanding the current private equity
owners."
MEREDITH CORP: S&P Places 'B' Issuer Credit Rating on Watch Pos.
----------------------------------------------------------------
S&P Global Ratings placed its 'B' issuer credit rating on
U.S.-based media company Meredith Corp. on CreditWatch with
positive implications.
S&P plans to resolve the CreditWatch when additional information on
the company's new capital structure, following the sale of the LMG,
becomes available, and it evaluates the NMG business on a
stand-alone basis. S&P does not expect this to occur until later in
2021 since the company does not expect the sale to close until the
calendar fourth quarter.
The CreditWatch placement follows the announcement that Meredith
Corp. has entered into a definitive agreement under which Gray
Television Inc. will acquire Meredith's Local Media Group for $2.7
billion in cash proceeds. Meredith's LMG business comprises 17
television stations across the U.S., along with 12 websites and 12
applications focused on news, sports, and weather. Following the
sale of the LMG, Meredith's remaining business, its NMG, will be
spun out to existing Meredith shareholders as a stand-alone
publicly traded company retaining the Meredith Corp. name. Current
Meredith shareholders will receive cash consideration per share of
approximately $14.50 and a 1-for-1 equity share in the post-close
Meredith. The NMG comprises the company's lifestyle brands, print
magazines, marketing products and services, and digital media
assets.
S&P said, "We could raise our issuer credit rating on Meredith if
we expected the transaction would result in the company's leverage
declining below 5x on a sustained basis. Meredith stated it has an
initial target leverage ratio of approximately 2x after the
transaction, which would be well below our 5x threshold for an
upgrade. However, an upgrade would also be predicated on our view
of the company's remaining business. We expect to view the NMG
business as weaker than the company's current business given the
expected decline in scale and diversity following the divestiture,
increased exposure to the decline in print advertising revenue, and
significant competition facing digital advertising revenue. We
could potentially raise the issuer credit rating following the
transaction depending on the company's pro forma leverage and
financial policy and our evaluation of the NMG on a stand-alone
basis.
"We plan to resolve the CreditWatch when additional information on
the company's new capital structure, following the sale of the LMG,
becomes available. We do not expect this to occur until later in
2021 because the company does not expect the sale to close until
the calendar fourth quarter. In resolving the CreditWatch, we will
consider the company's new capital structure and its financial
policy and evaluate the business of the NMG on a stand-alone basis.
We plan to withdraw our ratings on the company's existing rated
debt when it is repaid.
"If Meredith did not complete the transaction, we would likely
affirm our 'B' issuer credit rating on the company. This assumes
its operating performance and credit measures remain in our
expected range for the current rating."
MERITAGE COMPANIES: Plan Exclusivity Extended Thru July 29
----------------------------------------------------------
Judge Madeleine C. Wanslee of the U.S. Bankruptcy Court for the
District of Arizona extended the periods on an interim basis within
which the Debtor Meritage Companies, LLC has the exclusive right to
file a Plan of Reorganization and to solicit acceptances from April
30, 2021, to July 29, 2021. This is the Debtor's third request for
an extension.
The Debtor has been operating as debtor-in-possession since the
filing of the Chapter 11 proceedings.
The Debtor, Jack A. Barrett, the principal of Barrett, the Gross
parties, and others pursued a mediation conducted by the Honorable
Daniel Collins, which proved successful. The settlement was read
into the record. Subsequently, the parties have worked on the
settlement documentation and a further discussion with Judge
Collins was necessary. The parties have continued to work on the
settlement documentation and are down to some final issues. Some of
the terms of the settlement are that the Gross parties are to
object to nothing proposed by the Debtor or Barrett in their
respective bankruptcy cases and are to withdraw the proofs of
claims they filed.
The Debtor is leading this case to a fair and equitable resolution
by, among other things, participating in mediation to facilitate a
potential resolution of Gross' claims.
In light of these issues, the Debtor and Jack A. Barrett will be
able to use the additional 90 days to complete settlement
documentation and approvals with the Gross parties and then
finalize the Plan of Reorganization with that settlement
incorporated.
A copy of the Debtor's Motion to extend is available at
https://bit.ly/3xT5DoM from PacerMonitor.com.
A copy of the Court's Extension Order is available at
https://bit.ly/33kVtzk from PacerMonitor.com.
About Meritage Companies
Meritage Companies, LLC, a land developer in Wasilla, Alaska,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
D. Ariz. Case No. 20-07718) on June 30, 2020. The petition was
signed by Jack A. Barrett, manager.
At the time of the filing, the Debtor had estimated assets of less
than $50,000 and liabilities of between $10 million and $50
million.
Judge Madeleine C. Wanslee presides over the case. The Debtor
tapped Lamar D. Hawkins, Esq., at Guidant Law, PLC, as legal
counsel, David H. Bundy, Esq., of the Law Office of David H. Bundy,
PC as special counsel and Coldwell Banker Brokerage-Ogden, as real
estate broker. On December 8, 2020, the Debtor employed Rick Jones
as a criminal investigator.
MERITOR INC: S&P Alters Outlook to Stable, Affirms 'BB' ICR
-----------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating on
Meritor Inc. and revised the outlook on the rating to stable from
negative. S&P also affirmed its 'BB-' issue-level rating on the
company's unsecured debt. The recovery rating remains '5'.
The stable outlook reflects S&P's expectation that Meritor's credit
metrics will be consistent with our expectations for the rating due
to higher earnings and cash flows, with debt to EBITDA approaching
3x this year.
Industry truck production is rebounding from 2020 lows. S&P's
forecast this year sees North America heavy-duty truck production
surging by more than 20% and smaller gains in Europe and
lighter-duty trucks in North America. Driven by these growth
assumptions, it foresees Meritor's debt to EBITDA declining to near
3x this year and below 3x in 2022 (reflecting S&P debt adjustments
for leases, post-retirement obligations and accounts receivables
securitization). The company has a solid global market position in
commercial truck drivetrain systems, with leading market share in
the commercial truck drivetrain, mobility and braking systems, and
components markets in North America, and demand is closely tied to
truck production. Meritor also participates in the commercial
vehicle aftermarket, which it views as somewhat more stable than
new vehicle demand.
Meritor's EBITDA margins are likely to recover this year and
approach pre-pandemic levels. S&P said, "We expect higher volumes
to support margin expansion and assume Meritor's cost-saving
actions taken last year, including consolidation of facilities,
will benefit profitability during the recovery. We forecast
adjusted EBITDA margins around 10% in fiscal 2021 compared to near
7% last year. We view raw material cost inflation, particularly for
steel, to be a risk to this gain. The company is typically able to
pass cost along raw material cost increases to customers with a
three-to-six-month lag through a commodity price index mechanism.
We view freight cost inflation as an additional risk, particularly
because cost pass-through must be negotiated with customers."
Meritor is increasing its pipeline of orders related to vehicle
electrification. The company had several significant wins in the
electric drivetrain space, including with PACCAR Inc. Meritor's
development and testing of components requires investment which
will initially be a drag on margins and capital. S&P views
successful execution of an electrification strategy as important to
Meritor maintaining its competitive edge.
S&P said, "The stable outlook reflects our view that recovering
demand for commercial vehicles will lead to improving revenue and
profit in 2021 and 2022. We expect credit metrics will strengthen
this year such that debt to EBITDA remains below 4x on a consistent
basis.
"We could lower our rating on Meritor during the next 12 months if
adjusted debt leverage rises above 4x or its free operating cash
flow (FOCF) to debt falls below 10% and we see little likelihood of
near-term improvement. This scenario could occur if commercial
truck and industrial demand fails to recover as strongly as we
expect, impeding Meritor's financial performance."
METRONOMIC HOLDINGS: $356K Auction Sale of Miami Property Approved
------------------------------------------------------------------
Judge Laurel M. Isicoff of the U.S. Bankruptcy Court for the
Southern District of Florida authorized Metronomic Holdings, LLC's
bidding procedures in connection with the sale of real property
located at 3200 Thomas Ave., in Miami, Florida, to Cube Group, LLC,
for $356,000, subject to overbid.
The Stalking Horse Bidder will be deemed a Qualified Bidder
pursuant to the Bid Procedures for all purposes.
The following dates and deadlines regarding competitive bidding
were established (subject to modification in accordance with the
Bid Procedures):
a. April 28, 2021, at 5:00 p.m. (ET): Deadline to submit Bid
to be considered for the Auction
b. April 29, 2021, at 10:00 a.m. (ET): Date and time of
Auction
c. April 30, 2021, at 5:00 p.m. (ET): Debtor to file notice of
Successful Bidder
d. April 28, 2021, at 5:00 p.m. (ET): Deadline to file and
serve objections to relief requested at Sale Hearing (except for
any objection that arises at the Auction)
e. May 3, 2021, at 1:30 p.m. (ET): Date and time of Sale
Hearing
The Stalking Horse Agreement is approved. The Debtor is authorized
to enter into the Stalking Horse Agreement with the Stalking Horse
Bidder and to pay the Break-Up Fee pursuant to the terms and
conditions set forth in the Stalking Horse Agreement.
The Bid Protections are approved. The Debtor is authorized to pay
the Stalking Horse Bidder the Break-Up Fee if and to the extent
they become due and payable under the Stalking Horse Agreement and
the terms of the Bid Procedures Order.
As further described in the Bid Procedures, if a Qualified Bid,
other than the Stalking Horse Agreement, is received by the Bid
Deadline, the Debtor will conduct the Auction virtually at 10:00
a.m. (ET) on April 29, 2021, or such later time on such day or
other place as the Debtor will notify all Qualified Bidders who
have submitted Qualified Bids, if a Qualified Bid is timely
received.
To the fullest extent permissible under Bankruptcy Code Section
363(k), Katalox, in its capacity as first-position secured
creditor, may credit bid, as a Qualified Bid or subsequent Bid, in
its sole and absolute discretion, any portion and up to the entire
amount of its secured claim. In the event the amount of the Credit
Bid exceeds the total amount of the highest bids for the Asset
subject to the Credit Bid, such Credit Bid will be deemed the
highest and best bid and such Credit Bid will be accepted by the
Debtor and be presented for approval to the Court.
The Sale Notice is approved. Within two business days after the
entry of the Order, the Debtor (or its agent) will serve the Sale
Notice on the Notice Parties.
The Post-Auction Notice is approved. Subsequent to the conclusion
of the Auction, the Debtor (or its agent) will serve the
Post-Auction Notice on the Notice Parties.
Agentis, PLLC, counsel to Katalox, will serve as the closing agent
of the Sale.
In the event that the Closing does not occur on May 10, 2021, the
Debtor will abandon the Asset to Katalox and may do so without
further order by the Court, unless such deadline is extended in
writing by Katalox and the Debtor.
The other salient terms of the Bidding Procedures are:
a. Initial Bid: Each Bid or combination of Bids (a) must
propose a purchase price equal to or greater than the sum of (i)
the value of the Stalking Horse Agreement, as determined by the
Debtor i; and (ii) an initial overbid of at least $8,000, and (b)
must obligate the Bidder(s) to pay, to the extent provided in the
Agreement, all amounts which the Stalking Horse Bidder under the
Agreement has agreed to pay, including (if any) assumed
liabilities.
b. Deposit: 10% of the aggregate value of the cash
consideration of the Bid
c. Bid Increments: $1,000
The requirements of Bankruptcy Rules 6004(h) and 6006(d) are
waived.
The Debtor is authorized to take all actions necessary to
effectuate the relief granted pursuant to the Order in accordance
with the Motion.
The terms and conditions of the Order will be immediately effective
and enforceable upon its entry, notwithstanding any provision in
the Bankruptcy Rules or the Local Rules to the contrary, and the
Debtor may, in its discretion and without further delay, take any
action and perform any act authorized under the Order.
A copy of the Bidding Procedures is available at
https://tinyurl.com/9vmrtr4k free of charge.
About Metronomic Holdings
Metronomic Holdings, LLC is a real estate company that owns and
manages a portfolio of real estate assets in Miami-Dade County,
Fla., and McHenry County, Ill.
Metronomic Holdings filed a Chapter 11 petition (Bankr. S.D. Fla.
Case No. 20-20310) on September 23, 2020. At the time of the
filing, the Debtor disclosed assets of between $50 million and
$100
million and liabilities of the same range.
Judge Laurel M. Isicoff oversees the case. The Debtor hired Aleida
Martinez Molina as its legal counsel. On March 3, 2021, the Debtor
employed Pack Law, P.A. to serve as co-counsel with Weiss Serota
Helfman Cole & Bierman, P.L., the firm handling its Chapter 11
case.
MEZZ57TH LLC: Gets Interim Approval to Use Cash Collateral
----------------------------------------------------------
Judge Sean H. Lane authorized Mezz57th LLC, d/b/a John Barrett, to
use cash collateral on an interim basis pursuant to the budget.
The Court granted the lenders (i) Lawrence F. Flick IV Flick, (ii)
Saw Investment Fund LLC, and (iii) Jeffrey Sellers replacement
liens to the extent that the Lenders' liens in pre-petition cash
collateral were valid, perfected and enforceable as to the nature,
extent and validity of said pre-petition liens and claims, and to
the extent of collateral diminution.
Before the Petition Date, the Debtor obtained loans from each of
the Lenders: (a) $ f $1,050,720 from Seller (b) $400,000 from Saw,
and (c) $500,000 and $15,000 from Flick, for which loans the Debtor
granted the Lenders a first lien and security interest in its
inventory, accounts receivable, money, and the proceeds thereof.
The replacement liens shall be first and senior security interests
and liens in favor of Lenders in all of the Debtor's assets and
properties, subject only to existing senior and valid and perfected
liens, if any, on said property as of the Petition Date.
As further adequate protection, the claim which arises in favor of
the Lenders as a result of any diminution in value of their
collateral, if any, from the Debtor's use of cash collateral shall
have priority in payment over all of the Debtor's obligations and
over all administrative expenses of the kind specified under
Sections 503(b), or 507(b) of the Bankruptcy Code, other than the
fees owed to the United States Trustee, and interest, if any.
A copy of the Order is available for free at https://bit.ly/2RBbuyA
from PacerMonitor.com.
About Mezz57th LLC
New York-based Mezz57th LLC, a provider of luxury beauty salon, spa
and related services under the name John Barrett, filed a Chapter
11 petition (Bankr. S.D.N.Y. Case No. 20-11316) on May 29, 2020.
In the petition signed by John Barrett, president and managing
member, the Debtor was estimated to have $1 million to $10 million
in both assets and liabilities.
The Hon. Sean H. Lane oversees the case. Ballon Stoll Bader &
Nadler, P.C., serves as bankruptcy counsel to the Debtor
MILLER ENERGY: KPMG to Face Class Claims Over Falsified Audit
-------------------------------------------------------------
Law360 reports that accounting giant KPMG will have to face a
certified class' claims that it helped the now-defunct Miller
Energy Resources Inc. falsify financials about oil and gas assets,
a Tennessee federal judge ruled Friday, May 7, 2021.
U.S. District Judge Thomas A. Varlan overruled KPMG's objections to
a federal magistrate judge's report recommending certification for
the class of Miller Energy investors, despite the auditor's
assertion that it had, among other things, rebutted the presumption
that all members of the class had relied on its public statements
when deciding to invest.
About Miller Energy
Miller Energy Resources, Inc. --
http://www.millerenergyresources.com/-- is an oil and natural gas
production company focused on Alaska. The Company has a substantial
acreage, reserve, and resource position in the State, significant
midstream and rig infrastructure to support production, and 100%
working interest in and operatorship of most of its assets.
Miller Energy Resources and 10 of its affiliates filed Chapter 11
bankruptcy petitions (Bank. D. Alaska Lead Case No. 15-00236) on
Oct. 1, 2015. Carl F. Giesler, Jr., the CEO, signed the
petitions.
Judge Gary Spraker is assigned to the cases.
The Debtors have engaged Andrews Kurth LLP as counsel, David H.
Bundy P.C., as local counsel, Seaport Global Securities as
financial advisor, and Prime Clerk as claims and noticing agent.
On Aug. 6, 2015, Cook Inlet, a wholly-owned by MER, became the
subject of an involuntary Chapter 11 case filed by four creditors
asserting to have an aggregate claim of $2.8 million. The
petitioning creditors were Baker Hughes Oilfield, M-I LLC,
Schlumberger Tech. Corp, and Baker Petrolite, LLC. Judge Spraker
granted an order for relief under Chapter 11 of the Bankruptcy
Code
on Oct. 2, 2015.
Cook Inlet disclosed $180 million in assets and $212 million in
liabilities in its schedules.
On Oct. 16, 2015, the U.S. Trustee formed an official committee of
unsecured creditors. The Committee tapped Snow Spence Green LLP as
counsel and Erik LeRoy, P.C, as local counsel. The members of the
Committee are (i) Cruz Construction Inc., (ii) Baker Hughes
Oilfield Operations, Inc., (iii) Cudd Pressure Control, Inc., (iv)
Exxon Mobil Corporation, (v) Inlet Drilling Alaska, Inc., (vi)
National Oilwell Varco LP, and (vii) Schlumberger Technology
Corporation.
MISSISSIPPI MATERNAL-FETAL: Court OKs Deal on Cash Collateral Use
-----------------------------------------------------------------
Judge Neil P. Olack authorized Mississippi Maternal-Fetal Medicine,
P.A., to use cash collateral after the Debtor and objecting lender
Simply Funding LLC reached an agreement concerning the Debtor's
access to the cash collateral in which Simply Funding has
interest.
The Debtor and Simply Funding are parties to a pre-petition
Receivables Purchase Agreement under which the Debtor sold to
Simply Funding 20% of all receivables arising from the sale of
product or service in the course of the Debtor's until Simply
Funding received the purchased amount of $71,500.
The Debtor granted Simply Funding a security interest in and lien
on the Specified Percentage of receivables it purchased, which
constitute accounts and payment intangibles and all proceeds under
the Receivables Purchase Agreement. Simply Funding perfected its
security interest with UCC financing statement filed with the
Mississippi Secretary of State. As of May 3, 2021, Simply Funding
had not received $57,988 in Receivables that it purchased from the
Debtor under the Receivables Purchase Agreement.
Judge Olack ruled that Debtor shall pay Simply Funding $1,611
monthly 14 days after entry of the current interim order until the
full amount of $57,988 is paid, and that the Debtor shall provide
for those payments to Simply Funding in the Debtor's Chapter 11
Plan of Reorganization. Simply Funding said it will vote in favor
of the Debtor's Chapter 11 Plan that provides payments to Simply
Funding consistent with the terms of their stipulation.
A copy of the order is available for free at https://bit.ly/3h37ku0
from PacerMonitor.com.
About Mississippi Maternal-Fetal Medicine
Mississippi Maternal-Fetal Medicine, PA filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Miss. Case No. 21-00091) on Jan. 20, 2021, listing under $1
million in both assets and liabilities.
Judge Neil P. Olack oversees the case.
J. Walter Newman IV, Esq., at Newman & Newman serves as the
Debtor's counsel.
Strategic Funding Source, Inc., as lender, is represented by:
Erno Lindner, Esq.
BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, P.C.
633 Chestnut Street, Suite 1900
Chattanooga, TN 37450
Tel: 423-209-4206
Fax: 423-752-9633
Email: elindner@bakerdonelson.com
Simply Funding LLC, as lender, is represented by:
James A. McCullough, II, Esq.
BRUNINI, GRANTHAM, GROWER & HEWES, PLLC
Post Office Drawer 119
Jackson, MS 39205
Telephone: (601) 948-3101
Facsimile: (601) 960-6902
Email: jmccullough@brunini.com
- and -
Shanna M. Kaminski, Esq.
Kaminski Law, PLLC
P.O. Box 725220
Berkley, MI 48072
Telephone: (248) 462-7111
Email: skaminski@kaminskilawpllc.com
N.G. PURVIS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: N. G. Purvis Farms, Inc.
2504 Spies Road
Robbins, NC 27325
Business Description: N. G. Purvis Farms, Inc. operates in the hog
and farming industry.
Chapter 11 Petition Date: May 6, 2021
Court: United States Bankruptcy Court
Eastern District of North Carolina
Case No.: 21-01068
Debtor's
General
Bankruptcy
Co-Counsel: Algernon L. Butler, III, Esq.
BUTLER & BUTLER, L.L.P.
111 N. 5th Avenue
PO Box 38
Wilmington, NC 28401
Tel: 910-762-1908
Email: albutleriii@butlerbutler.com
- and -
HENDREN, REDWINE & MALONE, PLLC
Debtor's
Special
Counsel: ROBBINS MAY & RICH LLP
Total Assets: $34,268,361
Total Liabilities: $53,126,237
The petition was signed by Jerry M. Purvis, Sr., president.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/UW3WHWI/N_G_Purvis_Farms_Inc__ncebke-21-01068__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. 101 Inc.
$151,784
Attn: Managing Officer/Agent
4791 W 900 S
Pendleton, IN
46064
2. 2 F Farms $198,065
Attn: Managing Officer/Agent
PO Box 517
Salisbury, NC
28145
3. Buchanan Farms/ $160,708
Nutrien AG Solutions
Attn: Managing Officer/Agent
490 Copper Mine Road
Sanford, NC
27330
4. Cargill, Incorporated $431,655
Attn: Managing Officer/Agent
935 Interstate Road Ridge
Gainesville, GA 30501
5. DSM Nutritional $126,880
Products LLC
Attn: Managing Officer/Agent
3927 Collection
Center Drive
Chicago, IL 60693
6. Fidelity Bank PPP Loan $1,653,000
Attn: Managing Officer/Agent
PO Box 996
Fuguay Varina, NC 27526
7. Honeycutt Pig Farm $507,279
Attn: Managing Officer/Agent
28376 Millingport Road
Albemarble, NC 28001
8. International Ingredient $113,640
Corporation
Attn: Managing Officer/Agent
MSC 7593,
PO Box 415000
Nashville, TN 3741-7593
9. Jerry Apple $122,845
5403 Highway 150-E
Brown Summitt
NC 27214
10. Lake Phelps Grain $174,357
Attn: Managing Officer/Agent
PO Box 249
Creswell, NC 27928
11. Mercer Landmark Inc. Contract Finish $1,320,096
Attn: Managing Officer/Agent Facility
426 W Market St Agreement
Celina, OH 45822
12. Murphy Brown LLC Claims Under $627,193
Attn: Managing Officer/Agent Feed Purchase
200 Commerce Street Agreement
Smithfield, VA 23430
13. MWI Animal Health $240,377
Veterinary Supply
Attn: Managing Officer/Agent
14659 Collection Center Drive
Chicago, IL 60693
14. P & F Farms, Inc. Claims Under $186,729
Attn: Managing Officer/Agent Sow Farm Grower/
1210 Lake Fork Road Gilt Mutiplier
Salisbury, NC 28146 Contract
15. PIC USA, INC. Claims Under $650,409
Attn: Managing Officer/Agent Genetics
100 Bluegrass Contract
Commons Bvld Ste 2200
Hendersonville, TN 37075
16. Pollitt Ventures, Inc. Claims Under $150,000
Att: Maanaging Officer/Agent Sow Farm Grower
PO Box 936 Contract and
Clarkesville, GA 30523 Settlement
Agreement
17. Sam Black $121,607
2020 Morgana Gold Hill
Gold Hill, NC 28071
18. Sunrise Cooperative, Inc. Feeding $1,647,598
Attn: Managing Officer/Agent and Service
2025 W. State St. Agreement
Foremont, OH 43420
19. The Redwood Group, LLC $674,013
Attn: Managing Officer/Agent
5920 Nall Avenue, Suite #400
Mission, KS 66202
20. Trexler Farms $118,774
Attn: Managing Officer/Agent
12955 Hwy 52
Gold Hil, NC 28071
NORTHERN OIL: Reports First Quarter Results
-------------------------------------------
Northern Oil and Gas, Inc. announced its 2021 first quarter
financial and operating results.
MANAGEMENT COMMENTS
"The first quarter performance was above our internal expectations
across all metrics as our core Williston & Permian properties
continued to deliver," commented Nick O'Grady, Northern's chief
executive officer. "The Company generated $41.7 million of Free
Cash Flow, approximately 6% of our total quarter end market
capitalization - in a single quarter. I am also very excited that
we were able to continue to improve our liquidity and balance sheet
with the completion of our financings in February. These
transactions along with the continued growth of our business should
provide us with sufficient cash flow to continue our strategy of
making additional accretive acquisitions, reducing debt and
providing returns to our stockholders. Our first ever quarterly
dividend is the culmination of a tireless multi-year effort to put
the Company in a position to return cash to its stockholders. As we
achieve our targets, we believe we can provide meaningful cash
returns to investors over the coming years."
FIRST QUARTER FINANCIAL RESULTS
Oil and natural gas sales for the first quarter were $157.3
million. First quarter GAAP net loss, inclusive of a $128.6 million
non-cash net mark-to-market loss on derivatives, was $90.4 million
or $1.66 per diluted share. First quarter Adjusted Net Income was
$40.2 million or $0.62 per diluted share, up from $21.7 million or
$0.44 per diluted share in the prior year. Adjusted EBITDA in the
first quarter was $98.8 million.
PRODUCTION
First quarter production was 38,417 Boe per day, a 7.5% increase
from the fourth quarter of 2020. Oil represented 76% of total
production in the first quarter. Northern estimates that
curtailments and shut-ins still reduced the Company's average daily
production by an average of approximately 2,000 Boe per day in the
first quarter, but that was a significant improvement from the
fourth quarter of 2020. Northern had 6.7 net wells turned online
during the first quarter, compared to 6.9 net wells turned online
in the fourth quarter of 2020.
PRICING
During the first quarter, NYMEX West Texas Intermediate ("WTI")
crude oil averaged $58.13 per Bbl, and NYMEX natural gas at Henry
Hub averaged $3.37 per million cubic feet ("Mcf"). Northern's
unhedged net realized oil price in the first quarter was $51.57,
representing a $6.56 differential to WTI prices. Northern's
unhedged net realized gas price in the first quarter was $4.37 per
Mcf, representing approximately 130% realizations compared with
Henry Hub pricing.
OPERATING COSTS
Lease operating costs were $34.3 million in the first quarter of
2021, or $9.92 per Boe, up 15.6% on a per unit basis compared to
the fourth quarter of 2020. This is consistent with Northern's
prior commentary of extensive workover expense related to bringing
curtailed and shut-in production back to sales, and is expected to
be transitory in nature. First quarter general and administrative
costs totaled $6.8 million or $1.96 per Boe. This includes $2.5
million of legal and other transaction expenses in connection with
the Reliance acquisition and $0.8 million of non-cash stock-based
compensation. Northern's G&A costs excluding these amounts totaled
$3.5 million or $1.01 per Boe in the first quarter. Northern
expects approximately $2.5 - $3.5 million in additional
non-recurring advisory and other transaction costs related to the
Reliance acquisition to be incurred in the second quarter of 2021.
CAPITAL EXPENDITURES AND ACQUISITIONS
Capital spending for the first quarter was $38.1 million, made up
of $33.1 million of organic drilling and completion capital and
$5.0 million of total acquisition spending and other items,
inclusive of ground game D&C spending. Northern added 6.7 net
wells to production in the first quarter, and wells in process
decreased to 22.7 net wells, down 5.4 net wells from the prior
quarter as well completions accelerated. On the ground game
acquisition front, Northern closed on 6 transactions during the
first quarter totaling 1.3 net wells and 186 net mineral acres.
MARCELLUS SHALE ACQUISITION
On Feb. 3, 2021, Northern announced a definitive agreement to
acquire assets from Reliance Marcellus, LLC, a subsidiary of
Reliance Industries, Ltd., for $175.0 million in cash plus 3.25
million common stock warrants. The acquisition has an effective
date of July 1, 2020 and closed on April 1, 2021. EQT Corporation,
the operator of substantially all the assets, elected to exercise
its preferential purchase right on a portion of the assets, which
(together with the exercise of other preferential purchase rights)
reduced the cash purchase price, net to Northern, by approximately
$48.6 million, or 28%. Northern retained approximately 99% of the
inventory on the assets.
LIQUIDITY AND CAPITAL RESOURCES
Northern had total liquidity of $417.2 million as of March 31,
2021, consisting of cash of $2.7 million, the Reliance acquisition
deposit of $17.5 million, and $397.0 million of 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 additionally strengthened
its balance sheet through common equity and debt transactions
alongside of its announcement of the Reliance Marcellus
acquisition. Northern issued 14.3 million shares of common equity
for gross proceeds of $140.3 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 will call the remaining $15.7 million of 2023 Notes
on or about
May 15, 2021. Northern used the remainder of the proceeds to
retire debt under its revolving credit facility and for cash on
hand.
On April 1, 2021, upon closing of the Reliance acquisition,
Northern funded the adjusted cash purchase price of $120.9 million
with cash on hand, the $17.5 million deposit made during the first
quarter, and borrowings under its credit facility. The cash
purchase price included typical closing adjustments, including a
reduction for the net cash flows already received by Reliance from
the properties since the effective date, which was July 1, 2020.
Northern expects additional cash purchase price reductions to be
received over the next several months for net cash flows generated
after the effective date, but not received by Reliance prior to the
closing date.
STOCKHOLDER RETURNS
On April 23, 2021, Northern's Board of Directors declared all
current and accrued cash dividends for Northern's Series A
Preferred Stock, to be paid on May 15, 2021 in the total amount of
$22.0 million.
On May 6, 2021, Northern's Board of Directors declared its first
ever regular quarterly cash dividend for Northern's common stock of
$0.03 per share for stockholders of record as of June 30, 2021,
payable July 30, 2021.
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/1104485/000110448521000064/exhibit991-2021qx1earnings.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.
Northern Oil reported a net loss of $906.04 million for the year
ended Dec. 31, 2020, compared to a net loss of $76.32 million for
the year ended Dec. 31, 2019. 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.
ORGANIC POWER: Taps CPA Luis R. Carrasquillo as Financial Advisor
-----------------------------------------------------------------
Organic Power, LLC, received approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire CPA Luis R.
Carrasquillo & Co., P.S.C., as its financial advisor.
The Debtor needs a financial advisor to assist it in the financial
restructuring of its affairs by providing advice in strategic
planning, preparing a plan of reorganization and participating in
negotiations with creditors.
The retainer fee for the firm's services is $15,000.
As disclosed in court filings, the firm and its members are
disinterested persons within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Luis R. Carrasquillo, CPA
CPA Luis R. Carrasquillo & Co., P.S.C.
28Th Street, # TI-26
Turabo Gardens Ave.
Caguas, P.R. 00725
Tel: (787) 746-4555/(787) 746-4556
Fax: (787) 746-4564
Email: luis@cpacarrasquillo.com
About Organic Power
Organic Power, LLC is a Vega Baja, P.R.-based company that offers
food processing companies, restaurants, pharmaceuticals and retail
outlets an alternative to landfill disposal -- a low cost and
environmentally friendly recycling option. Visit
https://prrenewables.com
Organic Power sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 21-00834) on March 17, 2021. Miguel
E. Perez, president, signed the petition. In its petition, the
Debtor disclosed assets of between $10 million and $50 million and
liabilities of the same range.
Judge Edward A. Godoy oversees the case.
Fuentes Law Offices, LLC, and Godreau & Gonzalez Law, LLC, serve as
the Debtor's bankruptcy counsel and special counsel, respectively.
CPA Luis R. Carrasquillo & Co., P.S.C. is the financial advisor.
ORGANIC POWER: Taps Godreau & Gonzalez Law as Special Counsel
-------------------------------------------------------------
Organic Power, LLC, received approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire Godreau & Gonzalez
Law, LLC as special counsel.
The Debtor requires a special counsel to litigate any cause of
action related to its Payment Protection Program.
Rafael Gonzalez Valiente, Esq., is the firm's attorney who will be
providing the services.
The rates that will be used to compensate Godreau & Gonzalez Law
will be those approved by the Debtor and the court after the filing
by the firm of a fee application.
As disclosed in court filings, Godreau & Gonzalez Law will not hold
or represent any interest adverse to the Debtor and its bankruptcy
estate.
Godreau & Gonzalez Law can be reached through:
Rafael A. Gonzalez Valiente, Esq.
Godreau & González Law, LLC
Calle McLeary 1806, Suite 1-B
San Juan P.R. 00911
P.O. Box 9024176
San Juan P.R. 00902
Tel: (787)726-0077
About Organic Power
Organic Power, LLC, is a Vega Baja, P.R.-based company that offers
food processing companies, restaurants, pharmaceuticals and retail
outlets an alternative to landfill disposal -- a low cost and
environmentally friendly recycling option. Visit
https://www.prrenewables.com/
Organic Power sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 21-00834) on March 17, 2021. Miguel
E. Perez, president, signed the petition. In its petition, the
Debtor disclosed assets of between $10 million and $50 million and
liabilities of the same range.
Judge Edward A. Godoy oversees the case.
Fuentes Law Offices, LLC and Godreau & Gonzalez Law, LLC, serve as
the Debtor's bankruptcy counsel and special counsel, respectively.
CPA Luis R. Carrasquillo & Co., P.S.C., is the financial advisor.
PARAMOUNT RESOURCES: S&P Assigns 'B-' ICR, Outlook Positive
-----------------------------------------------------------
On May 5, 2021, S&P Global Ratings assigned its 'B-' issuer credit
rating to Calgary-based oil and gas exploration and production
company Paramount Resources Ltd.
Paramount has good scale and geographic diversification but its
proved developed ratio is low relative to that of rated peers.
Paramount has good scale (projected production of about 80,000 boe
per day in 2021) and geographic diversification, operating in key
Canadian plays such as Karr, Wapiti, Kaybob, and Central Alberta.
During 2021, close to 65% of 2021 production is expected from the
Grande Prairie region (Karr/Wapiti Montney) and the balance from
Kaybob and Central Alberta and other regions. In addition, the
company has sizable undeveloped acreage and vertically integrated
midstream assets, including infrastructure at Kaybob. S&P also
believe it has some degree of competitive advantage through its
ownership of Fox Drilling, which drills all its wells at Karr and
Wapiti. However, the company's proved developed (PD) ratio of about
40% of proved reserves and PD reserve life index of four years are
below those of rated peers, which have an average PD ratio of about
50% and a PD reserve life index of six years. Although management
has considerable experience in the regions in which Paramount
operates and is a mitigant to unforeseen development risk, S&P
believes capital risk to build the PD component still exists.
S&P said, "The company's relatively higher cost structure and weak
profitability metrics constrain improvement in our business risk
assessment.We believe the company has higher cash operating costs
relative to those of peers in the 'B' category. Although operating
costs have been declining due to initiatives such as innovation,
technological advancement, and new water disposal wells at Karr,
Paramount's cash operating costs are slightly higher than those of
its peers. We believe per unit costs will fall as the company
focuses operations in the Grande Prairie region where production is
expected to increase from 2020 levels and well economics are more
competitive; however, we expect its cost structure will continue to
lag that of peers at least over the near term. Partially offsetting
this is a low decline rate, which results in meaningfully low
sustaining capital requirements relative to those of peers."
In addition, although Paramount has a good product mix and the
proportion of liquids is expected to increase as it concentrates on
its highly liquids-focused properties of Karr and Wapiti, product
mix is still likely to be heavily weighted toward natural gas
(about 55% of production in 2021). Although stronger near-term gas
prices improve projected cash flow generation, the profitability
profile for gas-focused producers remains weaker than for producers
with a crude oil-focused product mix. S&P said, "Based on our
five-year profitability assessment, which we calculate on a unit
EBIT/thousand cubic feet basis, we estimate the company's unit EBIT
to rank in the bottom quartile of the North American peer group."
S&P said, "We estimate the company will generate strong credit
measures over our forecast period, supported by improved commodity
prices and our expectation for disciplined capital spending. Our
financial risk assessment reflects our expectation that the company
will generate an adjusted funds from operations (FFO)-to-debt ratio
of about 45% in 2021 and 2022. The meaningful improvement in credit
measures from 2020 levels is primarily based on our expectation for
higher production, higher oil and gas prices, and a more
constructive outlook for condensate prices. We believe
differentials between condensate and West Texas Intermediate (WTI)
prices have narrowed considerably and we expect they will remain
tight over our forecast period. Reduced import volumes (production
curtailments in Permian) and lower domestic supply while demand
remains stable, with relatively stable production from oil sands
projects, underpin our expectation. Given that about 45% of the
company's production is liquids (which includes condensate
production) and with 57% of total company production hedged for
2021, we believe there is muted downside risk to our 2021 cash flow
estimates.
"We expect production will increase to about 80,000 boe per day in
2021 from 68,000 boe per day in 2020. Considering significantly
higher cash flows and capital spending at sustaining levels in
2021, we estimate the company will generate positive free cash
flows of more than C$100 million. We believe the positive free cash
flows, coupled with proceeds of C$80 million from noncore asset
dispositions completed in the first quarter, should enable
management to reduce borrowings under the credit facility. Although
we assume Paramount could invest in some growth spending in 2022,
we believe debt reduction and our continued expectation of
relatively strong commodity prices should help preserve the
strength in credit measures even in 2022.
"That said, our assessment incorporates the sensitivity of the
company's credit measures to commodity prices. Although we view
downside risk to be limited in 2021, no hedges have been entered
into for 2022. We estimate all else being equal, a decline of 50
U.S. cents per million Btu (mmBtu) in natural gas and a decline of
US$10 per barrel in crude oil prices from S&P Global Ratings' 2022
pricing assumptions could result in the FFO-to-debt ratio
approaching our downside threshold of 20% in 2022. Accordingly, we
believe management will need to exercise financial discipline,
ensuring total future spending remains aligned with cash flow
generation.
"The positive outlook reflects S&P Global Ratings' expectation for
strong credit measures, with an adjusted FFO-to-debt ratio
estimated to average 45% over the next two years. The outlook also
reflects our expectation for moderate financial policies that
demonstrate the use of free cash flows for debt reduction.
"We could revise the outlook to stable over the next 12 months if
the company's two-year weighted-average FFO-to-debt ratio
approached 20%. This could occur if commodity prices declined and
Paramount failed to correspondingly reduce capital spending.
"We could raise the rating over the next 12 months if we expect the
company to sustain an FFO-to-debt ratio at the upper end of the
30%-45% range, while demonstrating disciplined financial policy.
This could occur if commodity prices improved meaningfully and the
company managed capital spending within cash flow generation. In
this scenario, we would also expect Paramount to have sufficient
availability on its credit facility and have successfully extended
its maturity."
PATRICIAN HOTEL: Plan Exclusivity Extended Until May 13
-------------------------------------------------------
Judge Robert A. Mark of the U.S. Bankruptcy Court for the Southern
District of Florida, Miami Division extended the periods within
which the Debtors have the exclusive right to file a Plan and
disclosure statement to May 13, 2021, and to solicit votes and
acceptance of a Plan to and including July 13, 2021.
While the Debtors remain hopeful that a sale of any or all units in
the building would resolve the remaining issues, the Debtors have
nonetheless attempted to move the remaining issues forward and have
been successful in locating a buyer who is interested in purchasing
the Debtors units.
With the extension, the Debtors will have time to address the
issues they need to address in this case.
A copy of the Court's Extension Order is available at
https://bit.ly/3fe5kg3 from PacerMonitor.com.
About Patrician Hotel LLC
Based in Miami Beach, Fla., Patrician Hotel, LLC and three
affiliates filed voluntary petitions under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 19-25290) on
November 14, 2019, listing under $1 million in both assets and
liabilities.
Judge Robert A. Mark oversees the case.
Robert F. Reynolds, Esq. at Slatkin & Reynolds, P.A., represents
the Debtor as counsel. The Debtors tapped DWNTWN Realty Advisors,
LLC, as their real estate broker.
PENN VIRGINIA: S&P Rates Proposed Senior Unsecured Notes 'B'
------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on
Houston-based exploration and production company Penn Virginia
Corp. At the same time, S&P assigned its 'B' issue-level rating and
'2' recovery rating to the new senior unsecured notes. The '2'
recovery rating indicates its expectation of substantial (70% to
90%: rounded estimate: 85% cap) recovery in the event of default.
The stable outlook reflects S&P's expectation that Penn Virginia
will generate positive free cash flow and maintain credit measures
it considers appropriate for the current rating.
Penn Virginia's production and reserve base are relatively small
but it has a high exposure to liquids production. The company has
about 90,100 net acres spread across Gonzales, Fayette, Lavaca, and
DeWitt counties in Texas. It operates 100% of its acreage, 91% of
which is held by production. Penn Virginia produced 24,281 barrels
of oil equivalent (boe) per day in 2020 and had total reserves of
126.4 million barrels of oil equivalent (mmboe) as of the end of
the year, which is on the smaller side relative to our rating
universe. About 60% of the company's reserves were proved
undeveloped, which will require additional capital to prove-up.
However, Penn Virginia has a significant exposure to oil because
over 75% of its production and reserves are weighted toward oil,
which supports its stronger profitability relative to that of its
peers. Additionally, the company's access to Gulf Coast markets
enables it to realize higher prices for its production. Penn
Virginia has identified approximately 500 drilling locations in its
inventory, which equates to about 12 years of drilling at its
current pace, and believe two-thirds of these sites would provide
an average internal rate of return of 55% assuming a West Texas
Intermediate (WTI) oil price of $55/barrel (bbl). Additionally, the
company does not have any acres on federal lands, which eases its
potential regulatory burden. Penn Virginia plans to use two
drilling rigs in 2021, drill 43 gross wells, and bring 40 gross
wells on line while closely monitoring commodity prices and its
costs.
S&P's highly leveraged assessment of the company's financial risk
reflects its private-equity ownership. On Jan. 15, 2021, Penn
Virginia closed transactions with affiliates of Juniper Capital
whereby Juniper contributed $150 million of cash and oil and gas
assets to Penn Virginia in exchange for approximately 60% of the
total voting power and economic interest in the company.
Additionally, Juniper holds five of the nine board seats at Penn
Virginia and Juniper's Managing Partner is the company's chairman.
S&P expects Penn Virginia to maintain conservative financial
policies with debt to EBITDA of between 1.0x and 1.5x. However,
companies owned by financial sponsors typically follow a more
aggressive financial policy at some point to achieve their
sponsors' desired returns. S&P said, "We expect Penn Virginia to
generate some free cash flow in 2021 and reduce its debt to EBITDA
toward 1x. We also expect the company to continue to support its
cash flow by hedging over 75% of its expected production in 2021.
Furthermore, we anticipate Penn Virginia will continue to focus on
its cost structure and capital returns."
S&P said, "The stable outlook on Penn Virginia reflects our view
that it will increase its production and reserves while maintaining
adequate liquidity and financial measures in-line with the current
rating over the next 12 months, including funds from operations
(FFO) to debt of more than 50%. Additionally, the company's strong
hedging program will provide it with a measure of cash flow
protection. We expect Penn Virginia to use its free cash flow for
debt reduction.
"We could lower our rating on Penn Virginia if we view its leverage
as unsustainable or its liquidity as constrained. This could occur
if commodity prices fall below our expectations, the company does
not meet its expected production targets, or its capital spending
is significantly higher than we expect.
"We could raise our ratings on Penn Virginia if it improves the
scale of its reserves and production to levels that are more
consistent with those of its higher-rated peers while maintaining
adequate liquidity. Additionally, an upgrade would require us to
re-evaluate Penn Virginia's private equity ownership and potential
impact to financial policies in conjunction with a decrease in
sponsor ownership."
PIKEWOOD INC: Seeks Cash Collateral Access
------------------------------------------
Pikewood, Inc. asks the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania to approve a Stipulation authorizing the
Debtor's use of cash collateral, providing adequate protection, and
granting conditional relief from the automatic stay.
The Debtor requires the use of cash collateral for the continued
operation of its business and to permit the Debtor to formulate and
confirm a plan of reorganization.
The Provident Bank provided to the Debtor a loan originally dated
January 30, 2012, in the original principal amount of $209,680.
The loan has a current outstanding principal balance in the amount
of $27,513 plus interest, costs, and attorneys' fees.
The Provident loan is secured by, inter alia, a first position lien
on all of the Debtor's assets, including, but not limited to,
accounts receivable and inventory, and the proceeds thereof.
Provident perfected its lien on the Debtor's assets by filing a
UCC-1 Financing Statement on October 18, 2006, which was duly
continued by the filing of continuation statements, most recently
on May 18, 2016.
The Debtor's Stipulation with Provident provides for these terms:
A. The Debtor may use the Collateral, including cash collateral, in
the ordinary course of its business.
B. As adequate protection for the Debtor's use of the Collateral:
(i) the Debtor acknowledges that Provident has a duly
perfected first priority security interest in and lien on all of
the Debtor's assets; and
(ii) Provident is granted a replacement lien and security
interest pursuant to 11 U.S.C. section 363(c) and (e) to the extent
that Provident's cash collateral is used by the Debtor, which
replacement lien and security interest will have the same priority
in the Debtor's post-petition assets and the proceeds thereof, as
does Provident's pre-petition lien and security interest.
C. Provident's replacement lien is automatically deemed to be
continuously perfected from the Petition Date without the necessity
of Provident Bank taking possession, filing financing Statements,
mortgages or other documents to continue the perfection of its
lien.
D. The Debtor will continue to make regular monthly payments to
Provident Bank in the amount of $2,287.23, representing the
ordinary debt service payments required under the Provident loan.
E. In the event that the Debtor's payments are more than seven days
late, the Debtor shall be deemed in default of this Stipulation and
Provident is entitled to certify such default to the Bankruptcy
Court. In the event that such payment default is not cured within
five business days, Provident may proceed to enforce its
non-bankruptcy remedies, with the automatic stay being lifted for
cause as to Provident and the Collateral pursuant to 11 U.S.C.
section 362(d)(1) immediately upon the filing of the Certification
of Default and without further Court Order.
A copy of the motion is available for free at
https://bit.ly/3vLiEPq from PacerMonitor.com.
About Pikewood Inc.
Pikewood, Inc. is the operator of a Minuteman Press franchise,
which currently has two locations, in Allentown and Bethlehem,
Pennsylvania. The Debtor sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Pa. Case No. 21-10595) on March 11,
2021. David A. Pike, vice president, signed the petition. In its
petition, the Debtor disclosed assets of $113,419 and liabilities
of $3,039,125.
Judge Patricia M. Mayer oversees the case.
Fitzpatrick Lentz & Bubba, P.C. is the Debtor's legal counsel.
PINK MONKEY: Seeks to Hire Wadsworth Garber as Bankruptcy Counsel
-----------------------------------------------------------------
Pink Monkey, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Columbia to hire Wadsworth
Garber Warner Conrardy, P.C. as its bankruptcy counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
powers and duties under the Bankruptcy Code;
b. assist the Debtor in the development of a Chapter 11 plan
of reorganization;
c. file pleadings, reports and actions, which may be required
under Chapter 11;
d. take necessary actions to enjoin and stay until final
decree continuation of pending proceedings and to enjoin and stay
until final decree herein commencement of lien foreclosure
proceedings and all matters as may be provided under Section 362 of
the Bankruptcy Code; and
e. other legal services for the Debtor, which may be
necessary.
The firm received a retainer in the amount of $11,057.
Wadsworth does not represent interest adverse to the Debtor's
bankruptcy estate, according to court papers filed by the firm.
The firm can be reached through:
Aaron A. Garber, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 West Main Street, Suite 200
Littleton, CO 80120
Tel: (303) 296-1999
Fax: (303) 296-7600
Email: agarber@wgwc-law.com
About Pink Monkey Inc.
Pink Monkey, Inc. -- https://pinkmonkeystudio.com -- is a custom
fabrication, special event design, and production company based in
Silt, Colo.
Pink Monkey filed a Chapter 11 petition (Bankr. D. Colo. Case No.
21-12195) on April 27, 2021 in the United States Bankruptcy Court
District of Colorado. In the petition signed by Nathan Cox,
president and co-owner, the Debtor reported $282,117 in total
assets and $1,397,703 in total liabilities. Judge Elizabeth E.
Brown oversees the case. Wadsworth Garber Warner Conrardy, P.C.
serves as the Debtor's legal counsel.
PUERTO RICO: July 13 Disclosure Statement Hearing Set
-----------------------------------------------------
On April 6, 2021, the Commonwealth of Puerto Rico, the Employees
Retirement System of the Government of the Commonwealth of Puerto
Rico, and the Puerto Rico Public Buildings Authority, by and
through the Financial Oversight and Management Board for Puerto
Rico and in its capacity as sole representative of the
Commonwealth, ERS, and PBA (the "Debtors" under PROMESA section
315(b)), filed a motion requesting an order scheduling a Disclosure
Statement Hearing to consider the adequacy of the information
contained in the Disclosure Statement.
On May 4, 2021, Judge Laura Taylor Swain granted the motion and
ordered that:
* The form of Disclosure Statement Notice and reflecting the
redlined changes set forth therein, is approved.
* July 13, 2021, at 9:30 a.m. is the time and date for the
Disclosure Statement Hearing.
* On a date no earlier than the 28th day following completion
of service of the Disclosure Statement Hearing Notice is the
deadline to file objections to the adequacy of the Disclosure
Statement.
* On the 14th day following the Disclosure Statement Objection
Deadline, but in no event later than 14 days before the Disclosure
Statement Hearing, is the deadline for the Debtors or other parties
in interest to file replies or responses to the DS Objections.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and chair of a committee to review professionals' fees.
PURDUE PHARMA: Asks Court for Another 27-Day Opioid Suits Extension
-------------------------------------------------------------------
Law360 reports that Purdue Pharma is asking a New York bankruptcy
judge for another 27-day extension of an injunction freezing opioid
suits against the company and its owners, saying it needs more time
to ensure it gets court approval for its Chapter 11 plan
disclosures.
In a motion filed Thursday, May 6, 2021, Purdue said while it
expects to submit the Chapter 11 disclosures to the court next
week, it wants to make sure the extension doesn't expire before the
court decides if the disclosure is sufficiently complete and
informative to send the plan to creditors for a vote.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation facing the Company.
The Company's consolidated balance sheet at Aug. 31, 2019, showed
$1.972 billion in assets and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain, in White Plains, New York, has
been assigned to oversee Purdue's Chapter 11 case.
Davis Polk & Wardwell LLP and Dechert LLP are serving as legal
counsel to Purdue. PJT Partners is serving as investment banker,
and AlixPartners is serving as financial advisor. Prime Clerk LLC
is the claims agent.
QBS PARENT: S&P Alters Outlook to Stable, Affirms 'B-' ICR
----------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on QBS
Parent Inc.'s (D/B/A Quorum Business Services) as well as its 'B'
issue-level rating on the company's first-lien debt and 'CCC'
issue-level rating on its second-lien debt.
S&P said, "We revised the outlook to stable from negative,
reflecting our expectation for continued operational improvement
and stable profitability that lead to sufficient FOCF and liquidity
to support the capital structure.
"We expect stronger global GDP growth and recovery in oil and gas
markets to support modest revenue growth over the next two years.
S&P Global Ratings raised its 2021 U.S. real GDP growth forecast to
6.5%, based on accelerating pace of COVID-19 vaccinations, faster
economic reopening schedule, and announcement of a fiscal stimulus
plan. We also raised our price assumptions for Brent crude oil
price to $60 per barrel (bbl) and West Texas Intermediate (WTI)
crude price to $55/bbl for the remainder of 2021 and 2022. Quorum
remains exposed to a volatile commodity market, particularly with
about 20% of total recurring revenue generated from small and
midsize business (SMB) producers mainly in upstream oil and gas.
However, we believe the recovery in commodity prices will support
upstream players as the industry outlook improves over the medium
and longer terms. In the near term, we expect growth to be muted as
Quorum's customers face industry capital constraints and thus are
more conservative in discretionary spending in pursuit of higher
profitability.
"We expect S&P Global Ratings-adjusted leverage will remain
elevated with an acquisition-heavy growth strategy, offset by a
modestly expanding recurring revenue base and stable retention
rates of mid-90%. Quorum made five acquisitions over 2019 and 2020,
and frequently financed growth with incremental borrowing. While
these transactions meaningfully improved scale, incremental debt
issuance coupled with the weaker end-market environment in 2020
raised S&P Global Ratings-adjusted leverage to near 12x as of Dec.
31, 2020, from about 10x at the end of 2019. Quorum expanded its
recurring revenue base, which consists of subscription software
products that are mission-critical to its customers. However, the
company experienced weakness in its professional and field services
segments in 2020, which represent a third of its business and are
more project-based and discretionary in nature, as oil and gas
companies pulled back on spending. As a result, organic revenues
declined in the mid-teens percentage area in 2020. We expect
gradual recovery in customer spending to support low-single-digit
percentage revenue growth.
"S&P Global Ratings-adjusted EBITDA margins declined in 2020 due to
transaction costs and expenses incurred to integrate platforms,
partially offset by temporary cost reductions related to the
COVID-19 pandemic which we expect will return in 2021. We expect
the company to expand margins modestly through higher revenues and
efficiency synergies from acquisitions but expect margins to remain
within the mid- to high-20% area, barring significant
transactions."
Quorum's announced combination with Aucerna and acquisition of
TietoEVRY's oil and gas software business provide potential for
product and geographical diversification, but ratings and outlook
are unaffected as these businesses remain outside of the lender
group. Quorum announced in February of 2021 that it will merge with
Canada-based Aucerna, provider of integrated planning, execution,
and reserves software for the energy industry. As of now, however,
QBS Parent remains an independent legal entity separate from
Aucerna and remains solely responsible for servicing its previously
issued debt. S&P said, "While we expect these companies to
coordinate on strategy somewhat over the near term, our rating on
Quorum is unaffected and we do not expect material changes to the
firm's operating performance or credit metrics absent a legal
combination of these entities. Should these businesses be legally
combined in the future under a single capital structure, we would
reevaluate our ratings on the newly combined entity."
S&P said, "The stable outlook on Quorum reflects our expectation
that macroeconomic recovery and an oil and gas industry rebound, as
well as synergies from recent acquisitions, will lead to sufficient
free cash flow generation. We expect the company will have adequate
liquidity to fund its growth plans."
S&P could lower its rating on QBS if:
-- S&P believes it cannot generate positive FOCF in the next 12
months;
-- It faces weaker demand, sales, and profitability than S&P
expects. This could result from end-market turmoil, sustained low
commodity prices, or operational missteps associated with recent
acquisitions;
-- It has less-than-adequate liquidity; or
-- The capital structure is unsustainable.
Over the longer term, S&P sees potential risks from broader
decarbonization of the global economy and growing consumption of
renewable energy that could limit the prospects of Quorum's
customers in the oil and gas markets, potentially resulting in a
lower rating, absent of significant deleveraging.
Although unlikely over the next 12 months given Quorum's high
leverage, S&P would consider an upgrade if:
-- The company maintains revenue growth; and
-- Expands EBITDA margins such that it sustains S&P Global
Ratings-adjusted leverage under 7x and keeps its FOCF-to-debt ratio
above 5%.
QUALITY WELDING: $350K Sale of 2 90-Gal. LPG Storage Tank Approved
------------------------------------------------------------------
Judge Katharine M. Samson of the U.S. Bankruptcy Court for the
Southern District of Mississippi authorized Quality Welding &
Fabrication, Inc.'s sale of two 90-gallon LPG storage tanks to
Pep-Up, Inc., for $350,000, plus shipping.
All shipping costs should be paid by the Purchaser and that the
Debtor is authorized to incur preparation and painting expenses in
the approximate amount of $21,286 for each tank.
The $200,000 of the $245,150 non-refundable deposit will be held by
Hancock Whitney, in escrow, to be applied to the principal balance
of Hancock Whitney's claim upon closing of the sale along with the
rest of the sale net proceeds. It is agreed that the entire
non-refundable deposit is cash collateral, the remaining $45,150 of
which will be used to refurbish and/or otherwise prepare the tanks
for consummation of the sale.
After shipment and final payment that the Debtor is authorized to
remit the remaining sale proceeds of approximately $307,428 to the
first lien holder as to said tanks, Hancock Whitney Bank.
About Quality Welding & Fabrication
Based in Columbia, Mississippi, Quality Welding & Fabrication,
Inc.
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Miss. Case no. 20-50970) on June 11, 2020, listing $1 million
to $10 million in both assets and liabilities.
Robert Alan Byrd, Esq., at Byrd & Wiser represents the Debtor as
counsel. Massey Higginbotham & Vise, P.A. was hired as its
special counsel.
RAHMANIA PROPERTIES: Court Approves Second Amended Disclosures
--------------------------------------------------------------
Judge Elizabeth S. Stong has entered an order approving on a final
basis the Second Amended Disclosure Statement and the relief set
forth in the Conditional Order Approving Disclosure Statement filed
by Mohammed Rahman and 74th Street Funding LLC, creditors of debtor
Rahmania Properties LLC.
Hearings before the Court held on March 18, 2021, March 23, 2021,
and May 3, 2021 show to approve the Second Amended Disclosure
Statement as containing adequate information.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/3xRF2sd from PacerMonitor.com at no charge.
Attorneys for Mohammed M. Rahman:
Marc A. Pergament, Esq.
Weinberg, Gross & Pergament LLP
400 Garden City Plaza, Suite 403
Garden City, New York 11010
Attorneys for 74th Street Funding, Inc.:
Gary O. Ravert, Esq.
Ravert PLLC
116 West 23 Street, Suite 500
New York, NY 10011
About Rahmania Properties
Rahmania Properties LLC owns and operates a mixed-use property in
Queens, N.Y. The Debtor filed a Chapter 11 petition (Bankr.
E.D.N.Y. Case No. 15-43971) on Aug. 28, 2015. In the petition
signed by Mohammed A. Rahman, president, the Debtor disclosed $6.8
million in assets and $3.3 million in liabilities.
RAPOWER-3 LLC: Receiver's Sale of Millard County Property Approved
------------------------------------------------------------------
Magistrate Judge Daphne A. Oberg of the U.S. District Court for the
District of Utah authorized R. Wayne Klein, the court-appointed
Receiver for the estates of RaPower-3, LLC and affiliates, to sell
the real property located in Millard County, Utah, identified by
parcel number DO-4568-1, at a public sale to the highest and best
offeror, free and clear of all interests.
The sale of the Property free and clear of interests as set forth
in the motion to the proposed buyer or a higher and better offeror
at auction is approved.
The method and form of the publication notice as set forth in the
motion are approved. The notice will be published in the Millard
County Chronicle Progress, a newspaper of general circulation
throughout Millard County, Utah, once a week for a period of four
weeks prior to the public sale.
The auction procedures described in the motion and attached to the
motion as Exhibit C are approved.
About RaPower-3, LLC
RaPower-3, LLC -- https://www.rapower3.com/ -- is a solar energy
equipment supplier in Oasis, Utah. RaPower3 uses technology
developed by International Automated Systems, Inc.
RaPower-3, LLC sought protection under Chapter 11 of the
Bankruptcy
Code (Bankr. D. UT. Case No. 18-24865) on June 29 2018. In the
petition signed by its president, Neldon P. Johnson, the Debtor
estimated assets between $500,000 to $1 million and liabilities
between $10 million to $50 million. Judge Kevin R. Anderson
presides over the case.
David E. Leta, Esq., and Jeffrey D. Tuttle at Snell & Wilmer
L.L.P.
is the Debtor's counsel.
RENEWABLE ENERGY GROUP: S&P Assigns 'B+' ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issuer credit rating to
Renewable Energy Group Inc. (REGI), underpinned by its assessment
of the company's significant exposure to market and regulatory
risks, and, to a lesser extent, execution risk given the large
Geismar expansion, combined with its view that its financial policy
is somewhat conservative, with S&P Global Ratings-adjusted leverage
averaging around 2.5x-3x over the next few years. S&P are also
assigning their 'BB' issue-level rating to the proposed $500
million senior secured notes, supported by a recovery rating of '1'
(95%).
The outlook is stable.
REGI is exposed to significant commodity risks, given exposure to
agriculture-based inputs that are uncorrelated to the renewable
fuels that it produces. The heating oil--soybean oil (also known as
HOBO)--spread is the benchmark for the company's forecasted gross
margins. The company's inputs are mostly agricultural waste
products like soybean oil, corn oil, and tallow (animal fats), but
also include restaurant waste. The company's end products,
biofuels, are more correlated to heating oil markets and demand for
diesel. Supply and demand for these products have unrelated
drivers. As a result, S&P thinks gross margins before subsidies and
regulatory provisions could be volatile from day to day.
The inherent volatility underlying the economics, however, is
mitigated by federal and state regulatory mechanisms such as the
federal RFS and the California's Low Carbon Fuel Standard (LCFS).
These subsidies and incentives act to stabilize demand for clean
fuels with regard to expected price fluctuations that are common in
commodity markets. There are also supply-based incentives, such as
the Biodiesel Mixture Excise Tax Credit (BTC), which aids
profitability.
S&P said, "Given the market construct, we think regulatory risk is
heightened compared to traditional refiners and find it difficult
to forecast long-term demand. We believe the most important
regulatory mechanism is the RFS, which mandates that refiners
comply with federal blending standards, also known as renewable
volume obligations (RVOs). Renewable identification numbers (RINs)
are created by biofuel producers like REGI and sold to refining
customers to meet their demand requirements. Refiners either buy
the fuel to blend or must purchase RINs to remain in compliance. As
a result of this construct, the demand for biofuels in the near
term is somewhat predictable and REGI's margins are supported by
RINs prices that move inversely to the HOBO spread. The RINs sales,
plus other subsidies that provide incentives for biofuel
production, create some stability in margins even as commodity
prices fluctuate. As a result, cash flow forecasts benefit from
somewhat stable margins, assuming a healthy and predictable market.
Although we assume the incentives remain in place and, as such,
margins remain somewhat predictable over the next few years in our
base case, the uncertainty regarding regulation is a key
qualitative factor in the rating. Demand becomes harder to predict
over the long term.
S&P thinks profitability will be challenged because the industry is
capital-intensive and commodity risk creates some volatility. HOBO
spreads can compress for various reasons. For instance, soybeans
can become more expensive or heating oil prices could decline.
While these forces can stress biofuel producers like REGI, RINs
prices (and other regulatory mechanisms) should increase to
continue incentivizing mandated blending standards. This creates an
inverse correlation between the HOBO spread and RINs. However,
there is a lag between the margin fluctuations and the offsetting
response of RINs pricing because high cost producers need to close
plants (including some of REGI's less profitable plants) as a
reaction to stressed pricing, ultimately balancing the market. This
balancing takes time, and creates periods of lower margins. S&P
said, "As a result, we think the company's profitability will be
more volatile over the short term compared to longer time frames.
As stronger players come into the market that are less likely to
shutter plants under stress, we think the inverse correlation that
boosts margins in times of commodity stresses might weaken over
time. Over the next few years, larger and better diversified
refiners such as HollyFrontier Corp., Valero Energy Corporation and
Marathon Oil Corp. will be entering or expanding into the biofuels
market."
Given the competitive market and exposure to end customers, the
company is more or less a price taker and some of its incentives,
which include some local subsidies, are passed on to customers. As
a result, the company is only able to capture a portion of the
total value of each gallon.
At the same time, REGI has some advantages that should help it
remain profitable over the next few years compared to current
competitors. Importantly, the company has good feedstock
flexibility and geographic diversification, giving the company the
ability to buy cheaper products if, for instance, soybean oil
increases in price. The company has some product diversification
between biodiesel and renewable diesel (RD), which earns a premium
as it receives 1.7x the D4 RINs price (compared to 1.5x for
biodiesel). Its exposure to RD will grow with the Geismar expansion
completed in 2024. The company also has downstream operations that
S&P expects to grow over time and earns some margins from
byproducts created in the production process.
Larger refiners, such as Valero, Marathon, and HollyFrontier will
enter the biofuels space over the next few years. With larger,
stronger competitors moving into biofuel and RD production, the
supply side of the equation will become more crowded and more cost
competitive over the next few years. S&P said, "Currently, we think
REGI has economies of scale and feedstock advantages given the
fractured market, but these advantages will likely deteriorate over
time. Also, while we expect supply to grow, we think future demand
will depend on regulatory appetites and political momentum related
to environmental, social, and governance (ESG) factors. As a
result, we think future demand is harder to rely on than the
blatantly upward supply trend. We believe this could pressure
margins over the next few years. We have the view that as stronger
suppliers replace weaker biofuel producers, RINs will become less
likely to respond quickly to margin stress." Therefore, margins and
cash flow stability might deteriorate over time.
The company has good scale, geographic diversification, and
feedstock flexibility compared with other pure-play biofuel
refiners, but is dwarfed in size by traditional refiners. The
company has a retail segment and transport terminals that add a
degree of vertical integration. Having said that, the company
produces only two main fuel categories--biodiesel and RD. Growth
plans include expansion of the downstream section, and more
importantly its large Geismar unit expansion, which should increase
its production of RD. The Geismar project should cost about $825
million over the next few years and be operational in 2024. S&P
said, "Given the long lead time and large project size relative to
the company's size, we think execution risk will be elevated over
the next few years. If the company is able to complete that project
within budget and without major delays, we'd expect the company to
delever materially in 2024 based on significant EBITDA growth."
This also assumes the market doesn't materially change over the
next few years such that margins are much weaker for RD in 2024.
S&P said, "The company's good historical utilization and feedstock
flexibility supports our view of operating efficiency.
Historically, we think the refineries generally maintain
utilization above their nameplate capacities, which underscores
their ability to switch between feedstocks and adapt to market
changes. We think smaller, less diversified competitors are more
likely to shutter operations in response to feedstock stresses or
isolated operational events, whereas REGI has historically been
able to navigate those issues and maintain solid output levels.
Again, as larger competitors move into the business, this advantage
to peers will deteriorate. The supply certainty of some proposals,
like Valero's agreement with Darling and HollyFrontier's
pretreatment facility, offer different supply-sourcing models. We
think the company's maintenance capital expenditures (capex) and
cost structure seem reasonable, but we lack pure-play rated peers
to compare it against. We think the vertical integration, which
could improve as the company expands downstream operations, helps
their operating efficiency as well. However, the vertical
integration is fairly limited.
"The company's financial risk is relatively conservative in our
view, with S&P Global Ratings-adjusted leverage around 2.5x-3x over
the next few years based on gross unadjusted secured debt of $500
million. We take a conservative view of REGI's forecast given the
underlying risks. As discussed, the volatile profitability from
quarter to quarter is an uncertain risk leading to our conservative
base case view. The changing landscape of the nascent biofuel
market makes it difficult to predict demand. We don't explicitly
include potential federal, state, or local incentives that are
being contemplated, although we note that several opportunities
exist. For example, western states such as Arizona and New Mexico
have shown interest in developing California LCFS-like incentives
to boost demand. We think marine- and jet-fuel blending could
become mandated in the future as well. If new domestic incentives
or export demand materialize, it could offset some of the stress
related to growing supply. At the same time, we think the BTC rolls
off over the next few years and the LCFS price declines, which is
offset by increasing RINs prices in our forecast. Finally, the
company plans to expand its downstream operations and could remain
acquisitive over the next few years, leading to growth but not
necessarily deleveraging.
"The stable outlook incorporates our view that margin per gallon of
biodiesel and RD will not materially change from the current levels
over the next two years. We expect any fluctuations in the
feedstock costs to be offset by the inverse correlation to RINs
prices, which should help mitigate EBITDA volatility with respect
to market risk. We expect the BTC incentive will not be renewed and
the LCFS prices decline from current highs, and we expect other
regulations, especially RINs, to gradually increase to provide
incentives for biofuel production. Finally, we expect the
significant Geismar expansion to be completed in 2024 without
material cost overruns."
S&P could consider a negative rating action if forecasted S&P
Global Ratings-adjusted debt to EBITDA averaged over 4x or business
risk increased materially which could be driven by:
-- Margin pressure due to feedstock prices increasing or biofuel
demand declining without an equivalent offsetting response in
subsidy values.
-- Margin pressure due to increased competition that is not
balanced by expanding biofuels demand and incentive programs.
-- Changes to regulatory constructs that affect blending
standards, significant small refinery exemptions (SREs), or subsidy
values; or
-- the Geismar expansion project faces delays or cost overruns.
While unlikely at this time, S&P could raise the rating if:
-- the demand outlook for biofuels becomes more visible and
predictable while forecasted margins remain in the current range or
improve, while the Geismar expansion nears commercial operations,
and
-- S&P has confidence that S&P Global Ratings-adjusted
debt-to-EBITDA would remain below 3x sustainably even in adverse
market conditions.
RESTLAND MEMORIAL: Case Summary & 19 Unsecured Creditors
--------------------------------------------------------
Debtor: Restland Memorial Parks, Inc.
990 Patton Street Ext.
Monroeville, PA 15146-4535
Chapter 11 Petition Date: May 7, 2021
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 21-21148
Judge: Hon. Gregory L. Taddonio
Debtor's Counsel: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
938 Penn Avenue, 5th Fl.
Suite 501
Pittsburg, PA 15222
Tel: 412-232-0930
Fax: 412-232-3858
E-mail: dcalaiaro@c-vlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Mark Lehnert, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/KCRJYAQ/Restland_Memorial_Parks_Inc__pawbke-21-21148__0001.0.pdf?mcid=tGE4TAMA
REVLON INC: Citi's Loss Disrupts Syndicated Loan Industry
---------------------------------------------------------
A judge's decision to allow a group of dissident Revlon Inc.
creditors keep more than a half a billion dollars accidentally sent
to them by Citigroup Inc. last 2020 has already had significant
impact on the syndicated loan industry, a trade group said in
asking an appeals court to overturn the ruling, Chris Dolmetsch of
Bloomberg News reports.
The Loan Syndications and Trading Association said in a brief filed
with the appeals court in Manhattan that U.S. District Judge Jesse
Furman's surprise decision in February 2021 has "significantly
disrupted" the drafting and negotiation of credit facilities and
the expectations of participants in the market.
About Revlon Inc.
Headquartered in New York, New York, Revlon, Inc. conducts its
business exclusively through its direct wholly-owned operating
subsidiary, Revlon Consumer Products Corporation and its
subsidiaries. Revlon is an indirect majority-owned subsidiary of
MacAndrews & Forbes Incorporated, a corporation beneficially owned
by Ronald O. Perelman. Mr. Perelman is Chairman of Revlon's and
Products Corporation's Board of Directors.
* * *
In July 2020, S&P Global Ratings lowered issuer credit rating on
Revlon Inc. to 'CC' from 'CCC-'. Concurrently, S&P lowered its
issue-level rating on the company's $880 million Brandco first lien
term loan to 'CCC-' from 'CCC' and maintain '2' recovery rating.
In addition, S&P lowered its issue-level rating on the remaining
tranches of secured debt to 'C' from 'CC' and maintained '5'
recovery rating. Lastly, S&P affirmed its 'C' issue-level rating
on the company's two tranches of unsecured notes, the '6' recovery
ratings remain unchanged.
The negative outlook reflects S&P's expectation that it will lower
its issuer credit rating on Revlon to 'SD' (selective default) and
its issue-level rating on its February 2021 notes to 'D' after the
transaction closes.
The downgrade follows Revlon's announcement that it commenced an
offer to exchange any and all of its outstanding amounts of 5.75%
notes due February 2021 for a combination of new 5.75% notes due
February 2024 and an early tender/consent fee. The existing
noteholders will receive $750 principal amount of new notes for
every $1,000 of existing notes tender and $50 of cash as an early
tender/consent fee. Holders who tender their existing notes after
the early tender deadline (Aug. 7, 2020) will receive only $750
principal amount of new notes for every $1,000 principal amount of
existing notes tendered.
RICHARD YOUNG: Trustee's $170K Sale of Assets to Jones Approved
---------------------------------------------------------------
Judge Selene D. Maddox of the U.S. Bankruptcy Court for the
Northern District of Mississippi issued final judgment on order
authorizing H. Kenneth Lefoldt, Jr., the duly appointed Chapter 11
Trustee for the bankruptcy cases of Richard Young, RTR Farms, Inc.
and Double Y Farms, Inc., to sell one unit in Island 66 Partnership
No. 2, bearing certificate number 283, and one unit of Island 66
Hunting Club, Inc., bearing stock number 255, to Cindy Jones and/or
assigns for $170,250.
The Final Judgment is entered granting the Trustee's Motion for
Authority to Sell Assets Free and Clear of Liens, Interests,
Encumbrances and Claims - Island 66. All terms and provisions
contained in the Court's Order are incorporated.
About Richard Young
Richard Young filed for chapter 11 bankruptcy protection (Bankr.
N.D. Miss. Case No. 17-14065) on Oct. 25, 2017, and is represented
by Craig M. Geno, Esq. of the Law Offices of Craig M. Geno, PLLC.
On Oct. 25, 2019, the Court appointed H. Kenneth Lefoldt, Jr. as
the Chapter 11 Trustee.
ROBERT F. TAMBONE: $3M Auction Sale of Wenham Asset Set for May 26
------------------------------------------------------------------
Judge Janet E. Bostwick of the U.S. Bankruptcy Court for the
District of Massachusetts authorized Robert F. Tambone's bid
procedures in connection with the private sale of all of his right,
title, and interest in the real property located at 57 Walnut Road,
in Wenham, Massachusetts, to Tyler W. Cowan and Courtney M. Cowan
or their nominee for the sum of $3.185 million, in accordance with
the terms of their Purchase and Sale Agreement, subject to higher
and better offers.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: May 25, 2021, at 2:00 p.m.
b. Initial Bid: An amount not less than $75,000 greater than
the Purchase Price, or $3.26 million
c. Deposit: $163,000
d. Auction: An auction for the Property will be held at the
Sale Hearing only if there is a Competing Bid. In the absence of a
Competing Bid, the Debtor will ask approval of the Private Sale to
the Purchasers. Any party who has filed a timely counteroffer must
be present at the Auction, failing which the counteroffer may not
be considered.
e. Sale Hearing: May 26, 2021, at 10:30 a.m. by video
f. Sale Objection Deadline: May 25, 2021, at 12:00 p.m.
The form of the Sale Notice is approved. The Debtor will serve
copies of the Sale Notice and the Video Hearing Order upon the
Office of the United States Trustee, the counsel to the Purchasers,
all of the Debtor's creditors, the Office of the Attorney General,
all relevant taxing authorities, all known parties with an interest
in purchasing the Property, and all parties having filed a notice
of appearance in the Debtor's bankruptcy case by no later than May
3, 2021.
Notwithstanding any contrary rule or provision, the Order will not
be stayed upon entry, and will immediately be enforceable in
accordance with its terms.
A copy of the Bid Procedures is available at
https://tinyurl.com/42cj3eve from PacerMonitor.com free of charge.
Robert F. Tambone sought Chapter 11 protection (Bankr. D. Mass.
Case No. 20-11378) on June 22, 2020. The Debtor tapped Kathleen
Cruickshank, Esq.,
ROBERT F. TAMBONE: Files Notice of May 26 Wenham Property Auction
-----------------------------------------------------------------
Robert F. Tambone filed with the U.S. Bankruptcy Court for the
District of Massachusetts a notice of his private sale of all of
his right, title, and interest in the real property located at 57
Walnut Road, in Wenham, Massachusetts, to Tyler W. Cowan and
Courtney M. Cowan or their nominee for the sum of $3.185 million,
in accordance with the terms of their Purchase and Sale Agreement,
subject to higher and better offers.
Notice is given, under Sections 105, 363(b) and (f), and 365 of 11
U.S.C. Sections 101, et seq., Federal Rules of Bankruptcy Procedure
6004(c) and 6006(a), and the Bid Procedures Order of the Bankruptcy
Court dated April 30, 2021 and pursuant to the Sale Motion, the
Debtor intends to sell all of the Property.
The Property is owned by the Debtor and his non-debtor spouse as
tenants by the entirety. The Purchasers have agreed to purchase
the Property for the sum of $3.185 million, free and clear of all
liens, claims, encumbrances, interests. The sale will be on an "as
is" "where is" basis with no representations or warranties of any
kind except as may be set forth in the purchase and sale agreement
between the Debtor and the Purchasers. Any perfected, enforceable,
and valid liens will attach to the proceeds of the sale.
On April 30, 2021, the Bid Procedures Order was entered. The Bid
Procedures Order, and the Bid Procedures set forth therein, will
govern the conduct of the sale, including but not limited to the
submission of bids, determination of qualified bids, and
consideration of the highest and best bid.
Through the Sale Notice, the Debtor solicits counteroffers for the
Property. The Counteroffer Deadline is May 25, 2021. The
Objection Deadline is May 25, 2021, at 12:00 p.m. (ET). A copy of
any objection must be served upon the Service Parties so as to be
actually received by 12:00 p.m. on the Objection Deadline.
The Sale Hearing is set for May 26, 2021, at 10:30 a.m. (ET) by
video. The Order Regarding Video Hearing on Sale Motion dated April
30, 2021 governs the procedures for the Sale Hearing.
An auction for all or any part of the Property will be held at the
time of the Sale Hearing only if there is a qualifying Competing
Bid by the Counteroffer Deadline which complies with the
requirements of the Bid Procedures Order with purchase price to be
paid at
closing of not less than $3.26 million and accompanied by a Deposit
of $163,000 in good funds.
The Purchasers and any parties submitting Competing Bids will be
required to attend the Auction by video. The Debtor will provide
the Purchasers and any party filing Competing Bids with the link to
attend the Sale Hearing by video. Terms and conditions for the
Auction are set forth in the Bid Procedures Order and the attached
Bid Procedures.
The Sale Hearing is a public hearing. The public is invited to
listen to the Sale Hearing by telephone. Any person wishing to
listen to the Sale Hearing by telephone must email the Courtroom
Deputy, leah_kaine@mab.uscourts.gov. If a request is not made by
12:00 p.m. on May 25, 2021, the Courtroom Deputy may not be able to
respond.
Robert F. Tambone sought Chapter 11 protection (Bankr. D. Mass.
Case No. 20-11378) on June 22, 2020. The Debtor tapped Kathleen
Cruickshank, Esq.,
ROBERT F. TAMBONE: Order on Wenham Property Auction Hearing Issued
------------------------------------------------------------------
Judge Janet E. Bostwick of the U.S. Bankruptcy Court for the
District of Massachusetts issued an order regarding the video
hearing on Robert F. Tambone's private sale of all of his right,
title, and interest in the real property located at 57 Walnut Road,
in Wenham, Massachusetts, to Tyler W. Cowan and Courtney M. Cowan
or their nominee for the sum of $3.185 million, in accordance with
the terms of their Purchase and Sale Agreement, subject to higher
and better offers.
To facilitate the Hearing scheduled for May 26, 2021, at 10:30 a.m.
on the Motion filed by the Debtor, the Court orders as follows:
1. The Hearing on the Matter will be held by video. No
individual will be admitted into the courtroom for the Hearing or
permitted to participate in the Hearing in any way not contemplated
by the Order.
2. The counsel for the Debtor will serve a copy of the Order
on all parties entitled to notice and all parties served with the
Notice of Sale, and will file a certificate of service by May 3,
2021. The counsel for any party planning to attend the Hearing
will serve a copy of the Order on the party they represent.
3. The Hearing will take place remotely using Zoomgov.com
videoconference technology. Zoom is available without charge for
persons attending the Hearing. All participants in the Hearing
must undertake appropriate set up and testing of Zoom.
Instructions for use of Zoom and links to its tutorials can be
found on the Court’s website at:
http://www.mab.uscourts.gov/pdfdocuments/mab_participant_video_guide.pdf
4. The Participant Guide for Video Hearings provides
information on what equipment the counsel and interested parties
must have to participate in the Hearing as well as helpful tips.
By participating in the Hearing, counsel and interested parties
affirm that they:
5. Any other counsel or pro se parties who will be actively
participating in the Hearing will notify Leah Kaine, Courtroom
Deputy, by e-mail at leah_kaine@mab.uscourts.gov no later than
12:00 p.m. (Eastern Time) on May 25, 2021.
6. Prior to the Hearing, the Courtroom Deputy will send an
email to each Participant providing the login information to appear
at the Hearing.
7. The Hearing is open to the public. The public is invited
to listen to the Hearing by telephone. Any person wishing to
listen to the Hearing by telephone must email the Courtroom Deputy.
If a request is not made by at least 12:00 p.m. on May 25, 2021,
the Courtroom Deputy may not be able to respond.
Robert F. Tambone sought Chapter 11 protection (Bankr. D. Mass.
Case No. 20-11378) on June 22, 2020. The Debtor tapped Kathleen
Cruickshank, Esq.,
RONNA'S RUFF: Plan of Reorganization Confirmed by Judge
-------------------------------------------------------
Judge Thomas P. Agresti has entered an order finally approving the
Disclosure Statement and confirming the Plan of Reorganization
filed by Debtor Ronna's Ruff Bark Trucking, Inc., including any
stipulations or other amendments finally approved by the Court
which are incorporated by reference into the Plan.
The Court has determined that the requirements for final approval
of the Disclosure Statement and for confirmation of the Plan under
11 U.S.C. Sec. 1129 are satisfied and all objections filed, if any,
having been resolved or withdrawn.
A full-text copy of the Plan Confirmation Order dated May 4, 2021,
is available at https://bit.ly/3b9cYqw from PacerMonitor.com at no
charge.
About Ronna's Ruff Bark Trucking
Ronna's Ruff Bark Trucking, Inc., is a privately held company in
the skidding logs business.
Ronna's Ruff Bark Trucking, based in Shippenville, Pa., filed a
Chapter 11 petition (Bankr. W.D. Pa. Case No. 19-11167) on Nov. 25,
2019. In the petition signed by Erick Merryman, owner, the Debtor
was estimated to have $1 million to $10 million in both assets and
liabilities. The Honorable Thomas P. Agresti is the presiding
judge. Michael S. JanJanin, Esq., at Quinn Buseck Leemhuis Toohey
& Kroto, Inc., serves as bankruptcy counsel. No committee,
examiner or trustee has been appointed in the case.
SAHAR P. MONTALVO: $1.35M Sale of Fishers Property to Snyders OK'd
------------------------------------------------------------------
Judge Jeffrey J Graham of the U.S. Bankruptcy Court for the
Southern District of Indiana authorized the private sale proposed
by Sahar P. Montalvo and Lacy J. Montalvo of the residential real
estate located at 12925 Water Ridge Dr., in Fishers, Indiana, to
Karina A. Snyder and Mark A. Snyder for $1.35 million.
The closing agent will deliver to the Debtors' counsel at the
closing of the sale the amount of Fulcrum Co.'s claim of $56,723 to
be held in trust pending resolution of the Fulcrum Objection.
Until such resolution, Fulcrum's and Constructive Loans, LLC
("Lender")'s liens will attach to the proceeds of the sale held in
such escrow to the same extent the liens encumber the Assets.
Fulcrum will have 30 days from the date of the Order to file a
brief in support of the Fulcrum Objection on the issue of Fulcrum's
priority as to the cabinetry, and the Lender will have 30 days from
the date of such brief to file a response. These deadlines may be
extended by the Court upon proper application by either Fulcrum or
the Lender.
The Debtors' counsel will maintain the Disputed Funds in trust
pending further direction by the Court.
The sale is free and clear of all liens, claims, interests, and
encumbrances.
The proceeds of sale are to be distributed in accordance with
priority of liens, first to the estate for payment of the counsel
and the US Trustee fees attributable to the sale, next to Hamilton
County assessor for real estate taxes, next to brokers fees and
costs to close, next to the Lender to establish the escrow for
Fulcrum and pay its claim.
The 14-day waiting period under Bankruptcy Rule 6004(h) is waived.
Sahar P. Montalvo and Lacy J. Montalvo sought Chapter 11 protection
(Bankr. S.D. Ind. Case No. 21-01235) on March 29, 2021. The
Debtors taped KC Cohen, Esq., as counsel.
SCOTTY'S HOLDINGS: Brewhouse's $110K Sale of Liquor License OK'd
----------------------------------------------------------------
Judge Jeffrey J. Graham of the U.S. Bankruptcy Court for the
Southern District of Indiana authorized Scotty's Brewhouse
Mishawaka, LLC, an affiliate of Scotty's Holdings, LLC, to sell its
Indiana Alcoholic Beverage Permit, License No. RR71-06901, to BIN
23 at Grandview, LLC, for $110,000, free and clear of all liens,
claims, interests, and encumbrances.
On April 29, 2021, a telephonic hearing was held on the Sale
Motion.
All terms of the Asset Purchase Agreement are approved.
The Court directs the Indiana Alcohol and Beverage Commission to
allow the transfer of the License from the Debtor to the Purchaser
consistent with Indiana Code 7.1-3-24-8 subject to any further
requirements of the Indiana Code.
The Purchaser will legally be entitled to operate under the License
after the Purchaser has complied with Indiana Code 7.1-3-24-10 and
obtained the chairman's approval.
The Debtor is authorized to disburse the License's Sale Proceeds
pursuant to the cash use order entered on Oct. 25, 2019 and to pay
its trust fund portion of sales tax owed to the State of Indiana.
The provisions of the Order will become effective immediately. The
Rule 6004(h) 14-day stay is waived.
About Scotty's Holdings
Scotty's Brewhouse is a craft beer sports bar with 16 locations
throughout Indiana, Illinois, Ohio, Florida, and Texas. The
original Scotty's Brewhouse was opened in Muncie, Indiana in 1996.
Scotty's Holdings, LLC, and its affiliates, including Scotty's
Brewhouse, filed voluntary petitions seeking relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Ind. Lead Case No.
18-09243)
on Dec. 11, 2018. In the petitions signed by Berekk Blackwell,
executive manager, Scotty's Holdings estimated $1 million to $10
million in both assets and liabilities and Scotty's Brewhouse
estimated $100,000 to $500,000 in both assets and liabilities.
The Debtors hired Quarles & Brady LLP, and Hester Baker Krebs LLC,
as attorneys.
SHAMROCK FINANCE: Seeks Continued Access to Cash Collateral
-----------------------------------------------------------
Shamrock Finance LLC asks the U.S. Bankruptcy Court for the
District of Massachusetts, Eastern Division, for authority to use
cash collateral, with a variance of 20%.
Shamrock's assets largely constitute its cash and its receivables,
i.e., monies Shamrock loaned to its motor vehicle dealer customers.
The amounts owed from Shamrock's customers are either accounts
receivable or notes receivable. Pursuant to the Interim Cash
Collateral Order, Shamrock has been authorized to use, and has
used, its cash to make floorplan loans to its customers and to fund
its operations.
By order dated April 23, 2021, the Court authorized Shamrock to
retain William R. Dewey, IV as its Chief Restructuring Officer. Mr.
Dewey has served and continues to serve in that capacity since
entry of the CRO Order.
As set forth in Dewey's declaration in support of the motion, from
the Petition Date to May 1, 2021, Shamrock has increased the value
of its cash and accounts receivable by approximately $288,521. As
the Dewey Declaration makes clear, the positive increase in value
is due in part to Shamrock’s positive operating cash flow, which
contributed to the $744,725 increase in cash, from $393,708 to
$1,138,432. "Active" dealer receivables have declined by
$1,164,185, while the "inactive" dealer receivables increased by
$773,741. The actual postpetition decline in value of the active
receivables, however, is only approximately $328,229, which is more
than offset by the cash increase of $744,725. The increase of
inactive dealer receivables, and the concomitant decrease in
active dealer receivables, is simply a classification change made
by Mr. Dewey that does not reflect any postpetition value
diminution. The classification change was the product of an asset
analysis undertaken after Mr. Dewey became Shamrock's CRO that
resulted in procedural changes. Mr. Dewey reclassified prepetition
active dealer accounts with an aggregate unpaid principal balance
of approximately $836,000 from active to inactive accounts. The
actual behavior and payments made by these borrowers, however,
remains unchanged from the Petition Date. The changes are largely
for accounting purposes.
The Debtor contends the survival and success of its business
requires that it provide reliable and timely advances to its
customers on account of its various floor plan arrangements. Mr.
Dewey and Shamrock are preparing a revised cash flow budget to
update the previously submitted budget that Shamrock anticipates
filing prior to the scheduled May 12 hearing on the Cash Collateral
Motion.
Shamrock requests authority to continue honoring its prepetition
credit agreements with its existing active customers and new
customers it acquires after the Petition Date, and to enter into
and perform floor planning arrangements with the customers in the
ordinary course of Shamrock's business. In this regard, as it has
done since the Petition Date pursuant to the Interim Cash
Collateral Order, Shamrock intends to make advances and new loans
in the ordinary course of its business, and to collect payments
from its customers and apply those payments to those customers'
accounts, in the amounts and as otherwise set forth in the Budget.
The Debtor disclosed there were five creditors that filed UCC-1
financing statements against Shamrock prior to the Petition Date:
Lawrence Kaplan, DJJD, Inc., Leonard and Mary Bofanti, Alfred
Lausten, and Stephanie A. Harris. As previously noted by the Court,
Shamrock does not believe any of the creditors who filed UCC-1
financing statements hold perfected liens and security interests in
any cash collateral.
The United States Trustee has indicated that a number of
noteholders who did not file any UCC-1 financing statement may have
an interest in Shamrock's cash collateral. Shamrock disputes that
any secured or unsecured creditor who did not record a UCC-1
financing statement holds an unavoidable lien or security interest
in Shamrock's cash collateral. Shamrock intends to file one or more
adversary proceedings to avoid the unperfected security interests
that the UST avers exist shortly.
Shamrock disputes the validity and extent of security interests in
any of its cash collateral, both because some of the alleged
secured creditors failed to file UCC-1 financing statements to
perfect their security interests, as well as for other defects as
described above with the recorded UCC-1 financing statements.
Shamrock requests that the Court authorize it to use cash -- its
inventory -- to make advances, and provide replacement liens to the
various creditors asserting a security interest on the same types
of post-petition property of the estate against which each held
purported security interests as of the Petition Date, to the extent
of any diminution in value of their respective prepetition security
interests, with the same force, effect and priority, as such
prepetition security interests enjoyed in Shamrock's assets, and
without prejudice to Shamrock's rights to contest the amount,
validity, priority and extent of any and all security interests,
liens and claims.
Shamrock proposes to adequately protect the putative security
interests by preserving the going concern value of its assets --
its dealer receivables -- through continued operations. The
entitlement to and measure of the protection required is always
determined by the extent of the anticipated or actual decrease, if
any, in the value of the secured creditor's collateral during
course of the bankruptcy case.
A copy of the motion is available for free at
https://bit.ly/3hapOZw from PacerMonitor.com.
About Shamrock Finance
Shamrock Finance LLC -- https://www.shamrockfinance.com -- is an
auto sales finance company in Ipswich, Mass.
Shamrock Finance sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 21-10315) on March 12,
2021. Kevin Devaney, manager, signed the petition. At the time of
filing, the Debtor had estimated assets of between $1 million and
$10 million and liabilities of between $10 million and $50
million.
Judge Frank J. Bailey oversees the case.
The Debtor tapped Jeffrey D. Sternklar LLC as its bankruptcy
counsel and the Law Offices of James J. McNulty as special counsel.
William R. Dewey, IV, a director at Mid-Market Management Group, is
the Debtor's chief restructuring officer.
SHELTON BROTHERS: Sale Procedures for All Progressive Assets OK'd
-----------------------------------------------------------------
Judge Elizabeth D. Katz of the U.S. Bankruptcy Court for the
District of Massachusetts issued a proceeding memorandum and order
granting Shelton Brothers, Inc.'s bidding procedures in connection
with the sale of substantially all assets of Progressive
Distribution, LLC, to Michael Merrifield, or his nominee for
$400,000, subject to overbid.
The Debtor's proposed procedures that will govern the proposed sale
and any competitive bidding are:
a. All overbids must be in an amount that is not less than a
minimum increase of 10% of the Purchase Price be required for any
bid exceeding the Purchase Price.
b. All overbids must be submitted to the Debtor no later than
five days before a final hearing on the proposed sale.
c. All overbids must be accompanied by a deposit in the form
of a certified check payable to the order of the Debtor or other
immediately available funds in an amount equal to 5% of such bid.
d. All overbids must be accompanied by a copy of the Agreement
executed by the overbidder with the same terms and conditions,
except total purchase price and deposit amount.
e. In the event any overbids are received, an open auction
will be held at the final hearing for the purpose of determining
the highest and best bidder.
f. The second highest bidder, as so notified by the Debtor and
Progressive, will be required to serve as the back-up bidder and
keep its bid to consummate the Agreement open and irrevocable
unless and until the Prevailing Bidder consummates the sale.
g. In the event that the Buyer is not the Prevailing Bidder
for the purchase of Progressive's assets, the Buyer will receive a
break-up fee of 5% of the Purchase Price, subject to final Court
approval upon application by the Buyer. The proposed Break-Up Fee
will be paid on a first priority basis from the proceeds of the
sale of Progressive's assets.
The Debtor says that the Break-Up Fee, Minimum Higher Bid, and
other proposed overbid procedures are reasonable and necessary to
induce the Buyer to consummate the proposed transaction.
About Shelton Brothers, Inc.
Shelton Brothers, Inc. is a beer importing and distributing
company
located in Belchertown, Mass. Shelton Brothers filed a voluntary
petition under the provisions of Chapter 11 of the Bankruptcy Code
(Bankr. D. Mass. Case No. 20-30606) on Dec. 18, 2020. In the
petition signed by Daniel W. Shelton, president, the Debtor
disclosed between $1 million to $10 million in both assets and
liabilities.
Judge Elizabeth D. Katz oversees the case.
Andrea M. O'Connor, Esq., at Fitzgerald Attorneys at Law, P.C.,
represents the Debtor as counsel.
SHELTON BROTHERS: Wins Cash Collateral Access Thru May 20
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts has
authorized Shelton Brothers, Inc. to use cash collateral on an
interim basis in accordance with the budget through May 20, 2021.
In consideration of the Debtor's use of cash collateral, RNSS, LLC
is granted a continuing and uninterrupted post-petition security
interest in all of the Debtor's assets -- other than causes of
action and claims under Chapter 5 of the U.S. Bankruptcy Code or
proceeds thereof -- to the extent of the validity, perfection,
priority, enforceability, and sufficiency of its pre-petition lien
or security interest.
The Post-Petition Lien granted by the Interim Order will be valid
and fully perfected without the execution or recording of any
further security agreements, mortgages, financing statements, or
any other such documents or any other further action by the Debtor
or RNSS.
The Debtor is authorized and directed to make monthly interest
payments to RNSS in the amount of $16,631.
The Court held that by May 20, 2021, the Debtor must use its
commercially reasonable efforts, subject to any further required
Bankruptcy Court approval, to:
* sell Inventory C.O.D. by End Date;
* collect current accounts receivable by End Date;
* operate the business in accordance with the budget and
continue to provide RNSS the weekly reporting evidencing its
compliance with the budget; and
* provide detailed information regarding the specific proposed
sales of inventory and collection of accounts receivable upon
request.
A telephonic hearing to consider the Debtor's further use of cash
collateral is scheduled for May 20 at 12:30 p.m.
A copy of the Order is available at https://bit.ly/2QUqnfs from
PacerMonitor.com.
About Shelton Brothers, Inc.
Shelton Brothers, Inc. is a beer importing and distributing company
located in Belchertown, Mass. Shelton Brothers filed a voluntary
petition under the provisions of Chapter 11 of the Bankruptcy Code
(Bankr. D. Mass. Case No. 20-30606) on Dec. 18, 2020. In the
petition signed by Daniel W. Shelton, president, the Debtor
disclosed between $1 million to $10 million in both assets and
liabilities.
Judge Elizabeth D. Katz oversees the case.
Andrea M. O'Connor, Esq., at Fitzgerald Attorneys at Law, P.C.,
represents the Debtor as counsel.
SHILOH INDUSTRIES: Court Okays Plan With $3M for Unsecured Payout
-----------------------------------------------------------------
Law360 reports that global auto parts supplier Shiloh Industries on
Thursday, May 6, 2021, won approval from a Delaware bankruptcy
judge for a Chapter 11 plan that carves out $3 million for
unsecured creditors from the proceeds of the company's $218 million
asset sale.
At a virtual hearing, U.S. Bankruptcy Judge Laurie Selber
Silverstein approved Shiloh's liquidation plan after being told by
representatives of both secured and unsecured creditors that the
case had proceeded unusually smoothly. Shiloh sought bankruptcy
protection on Aug. 31, 2020 with $563.4 million in debt, reporting
that the business had been shaken by a combination of factors,
including international trade friction and production downturns.
About Shiloh Industries
Shiloh Industries, Inc., and its subsidiaries are global innovative
solutions providers focusing on light-weighting technologies that
provide environmental and safety benefits to the mobility markets.
On August 30, 2020, Shiloh Industries and its subsidiaries sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 20-12024). The petitions were signed by Lillian
Etzkorn, an authorized person.
The Debtors reported total consolidated assets of $664,170,000 and
total consolidated debt of $563,360,000 as of April 30, 2020.
Judge Laurie Selber Silverstein oversees the case.
The Debtors have tapped Jones Day and Richards, Layton & Finger
P.A. as their legal counsel; Houlihan Lokey Capital Inc. as a
financial advisor, Ernst & Young LLP as restructuring advisor, and
Prime Clerk LLC as claims and noticing agent.
On Sept. 15, 2020, the United States Trustee appointed the
five-member official committee of unsecured creditors. The
committee selected Foley & Lardner LLP as its lead counsel and
Morris James as Delaware counsel.
SOUND INPATIENT: S&P Rates New $150MM Incremental Term Loan 'B'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '3'
recovery rating to Sound Inpatient Physicians Inc.'s proposed $150
million incremental first-lien term loan due 2025. The '3' recovery
rating indicates its expectation for meaningful (50%-70%; rounded
estimate: 55%, down from 60%) recovery in the event of a payment
default. S&P expects the company to use the proceeds from this term
loan to finance acquisitions. Following the transaction, it expects
Sound Inpatient's adjusted leverage to be about 7.3x in 2021 before
improving to 6.4x in 2022.
S&P said, "Our 'B' issuer credit rating is unchanged. The stable
outlook on Sound Inpatient reflects our view that it will continue
to experience steady demand for its hospitalist services. We expect
that this will largely offset the reduction in its revenue stemming
from the changes the Centers for Medicare & Medicaid Services (CMS)
made to the Bundled Payment for Care Improvement Advanced (BPCIA)
in 2021, which resulted in smaller program sizes."
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- The company's capital structure comprises a $75 million
first-lien revolving credit facility, a $745 million first-lien
senior secured credit facility (including the incremental term
loan), and a $215 million second-lien term loan.
-- S&P's hypothetical default scenario contemplates a default
stemming primarily from a decline or adverse change in Sound
Inpatient's reimbursement or the market demand for its hospitalist
services.
-- S&P estimates that for the company to default its EBITDA would
need to decline to about $91 million.
-- Given the company's market position, we would expect it to be
reorganized rather than liquidated in the event of a default.
-- S&P values the company by applying a 5.5x multiple to its
default-level EBITDA. This multiple is consistent with the
multiples it uses for its similarly rated peers.
Simulated default assumptions
-- Simulated year of default: 2024
-- EBITDA at emergence: $91 million
-- EBITDA multiple: 5.5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $476
million
-- Valuation split (obligors/nonobligors): 100%/0%
-- Collateral value available to first-lien creditors: $476
million
-- Secured first-lien debt: Approximately $817 million
--Recovery expectations: 50%-70% (rounded estimate: 55%)
-- Collateral value available to second-lien creditors: $0
-- Secured second-lien debt: Approximately $225 million
--Recovery expectations: 0%-10% (rounded estimate: 0%)
Note: All debt amounts include six months of prepetition interest.
SRAM LLC: S&P Assigns 'BB-' Rating on New Sr. Sec. Credit Facility
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue level rating and '3'
recovery rating to the proposed senior secured credit facility.
S&P said, "At the same time, despite the distribution, we are
affirming the 'BB-' issuer credit rating on SRAM because we expect
that leverage will remain comfortably below our 4x downgrade
threshold in 2021.
"The stable outlook reflects our expectation that SRAM will grow
EBITDA by around 30%-35% in 2021 and end the year with leverage of
around 3x.
"We affirmed the 'BB-' issuer credit rating, with a stable outlook
despite a significant increase in expected SRAM's leverage because
we anticipate it will remain comfortably below our 4x downgrade
threshold this year. SRAM grew its adjusted EBITDA by about 17% in
2020 due to increased original equipment manufacturer (OEM)
products and aftermarket demand; decreased operating expense from
less travel, events, and racing; and factory efficiencies from its
ongoing improvement efforts. Strong demand for SRAM's bicycle
components continued into early 2021, and we expect that demand
will remain elevated until widespread immunity is achieved such
that consumers regain access to a broader set of recreational
activities. In addition to the pandemic-driven demand that has
benefited many outdoor recreation activities, we believe SRAM has
gained market share from successful product innovation and because
we believe that some OEMs have switched to SRAM because of its
shorter production lead times compared with competitors.
Additionally, bike-component manufacturers have benefited from
ridership trends over the past several years, supporting,
particularly in the developing economies of Asia, Latin America,
and Africa, as rapid urbanization and improving economic conditions
have driven demand for bicycles as personal transportation. In the
U.S. and Europe, municipalities have continued to implement
investments in cycling infrastructure that will likely enhance the
perceived safety and value of cycling as a mode of transport.
Additionally, Global E-bike sales now comprise a larger share of
the total market than either road or terrain bike sales, and we
expect that continued growth in this comparatively higher-price
segment will help drive SRAM's revenue growth. Under the
assumptions in our current base case, we expect that SRAM will
substantially increase revenues and EBITDA this year, and that its
leverage will be around 3x.
"The stable outlook reflects our expectation that SRAM will grow
EBITDA by around 30%-35% in 2021 such that it ends the year with
leverage of around 3x, which is a good cushion compared to our 4x
downgrade threshold incorporating potential future operating
volatility.
"We could lower the rating if revenue and EBITDA volatility
increases in a manner that causes the company to sustain leverage
above 4x.
"Although unlikely, we would consider higher ratings if the company
utilized significant excess free cash flow for voluntary debt
repayment, if OEM and aftermarket volumes continue to grow, or we
become more certain that revenue and EBITDA growth can keep
lease-adjusted leverage comfortably below our 3x upgrade threshold,
incorporating potentially high volatility in the business,
potentially large acquisitions, or future leveraging distributions,
which would likely require a change in SRAM's financial policy of
tolerating leverage of up to 3x."
S&P Global Ratings believes there remains high, albeit moderating,
uncertainty about the evolution of the coronavirus pandemic and its
economic effects. Vaccine production is ramping up and rollouts are
gathering pace around the world. Widespread immunization, which
will help pave the way for a return to more normal levels of social
and economic activity, looks to be achievable by most developed
economies by the end of the third quarter. However, some emerging
markets may only be able to achieve widespread immunization by
year-end or later. S&P said, "We use these assumptions about
vaccine timing in assessing the economic and credit implications
associated with the pandemic. As the situation evolves, we will
update our assumptions and estimates accordingly."
STEWART SUPERMARKET: May 19 Hearing on Bid to Use Cash Collateral
-----------------------------------------------------------------
At the behest of Stewart Supermarket, LLC, the Nevada Bankruptcy
Court will hold a hearing May 19, 2021, at 1:30 p.m. on the
Debtor's Motion to Use Cash Collateral
Stewart Supermarket, LLC was created in 2018. In November 2019, it
purchased the assets of an operating supermarket business and the
existing equipment and inventory therein from the prior owners for
an aggregate price of approximately $1,000,000. Moreover, the
Debtor leases the building in which the supermarket is operated
from the prior owners at a monthly rent of $10,000. The Debtor
also makes monthly payments of $8,900 on the purchase of the
equipment and inventory.
In 2019, the Debtor launched an expansion of services from funds
obtained through a loan broker who arranged for multiple loans from
lenders. The lenders filed UCC-1 security agreements claiming a
security interest in credit card receivables, inventory, equipment,
deposit accounts, chattel paper, letters of creditor rights,
general intangibles and all proceeds and products of the
collateral. These loans required high payments on a daily basis
which were taken from the Debtor's accounts. The primary income
for the business comes from the sales of groceries, alcohol, food
service and check cashing from customers in the surrounding
community.
In 2020, with the restrictions of the COVID-19 pandemic and the
shut-down of the economy and business, the Debtor suffered a lack
of cash flow and decreased revenues. The Debtor's accounts were
overwhelmed by the withdrawals of payments and were frozen by the
banking institutions. The Debtor made more than $143,509 in
pre-petition payments on the secured loans. Additionally, over
$42,279 was garnished from the Debtor's credit card processing
account and operating accounts. The Debtor also paid an additional
$11,111 in an attempt to negotiate a resolution of the secured
lender execution efforts before the Debtor could no longer sustain
the settlement payments. Payments to the secured lenders in 2020
total to more than $196,899.
The secured lenders filed litigation actions in the State of New
York. A secured lender domesticated a judgment in the State of
Nevada and garnished the Debtor's operating account. In order to
avoid defaulting on the payroll to its employees and ceasing
operations, the Debtor filed its voluntary bankruptcy petition
under Chapter 11.
Moreover, the Debtor has taken advantage of the Payroll Protection
Payment Loans and borrowed money in the first round, and has also
taken an EIDL loan with the Small Business Administration under the
CARES Act.
Aside from the rent and purchase payments, the Debtor has minimal
pre-petition debt with vendors and has reached agreements to
continue to receive bank services and vendor purchases to maintain
the supermarket and the check cashing operations.
By this motion, the Debtor is seeking the Court's permission to use
the cash collateral in order to continue paying ordinary course
expenses and not incur additional debts, except for the necessary
expenses in the administration of its bankruptcy case. The Debtor
seeks permission to pay $5,000 monthly for legal fees of its
counsel and the Subchapter V Trustee. The 12-month budget filed
with the Court provided for $301,405 in total expenses for the
month of May 2021. A copy of the budget is available for free at
https://bit.ly/3tmnUaO from PacerMonitor.com.
A copy of the Motion is available at https://bit.ly/3hbVqxI from
PacerMonitor.com free of charge.
About Stewart Supermarket
Stewart Supermarket, LLC, which operates a supermarket business,
restaurant and check cashing business at one location in Las Vegas,
Nevada, filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Nev. Case No. 21-11508) on March 26,
2021. Maher Al-Sayegh, manager, signed the petition. At the time
of the filing, the Debtor disclosed $115,944 in assets and
$2,367,682 in liabilities. Judge August B. Landis oversees the
case. The Debtor is represented by the Law Office of Timothy P.
Thomas, LLC.
Brian Shapiro has been appointed as the Subchapter V trustee.
TALLGRASS ENERGY: S&P Affirms 'BB-' Rating on Senior Unsecured Debt
-------------------------------------------------------------------
S&P Global Ratings affirmed all of its issue-level ratings on
Prairie ECI Acquiror L.P. and Tallgrass Energy Partners L.P. (TEP),
including its 'BB-' issue-level rating on TEP's senior unsecured
debt and its 'B-' issue-level rating on the secured debt at
Prairie. S&P's '2' recovery rating on TEP's unsecured debt and '6'
recovery rating on Prairie's secured debt remain unchanged.
TEP recently completed two transactions that did not affect S&P's
issuer credit rating or outlook on the company. It rates TEP and
Prairie at the same level and analyze them on a consolidated
basis.
Most significantly, TEP contributed its Pony Express Pipeline (PXP)
to a newly established joint venture (JV) named Liberty Express
Pipeline LLC (LEP). PXP transports crude oil from Guernsey, Colo.
to Cushing, Okla. and has historically been the company's
second-most important asset by EBITDA contribution after the
Rockies Express Pipeline. The JV formation will slightly reduce
TEP's cash flows over the next few years, though it will likely
bolster its longer-term deleveraging trend and strengthen its
contract profile. Overall, S&P views the transaction as slightly
credit positive over the long term, although it anticipates the
company's credit metrics will be somewhat weaker than we previously
expected in 2021 and 2022.
TEP also recently agreed to a revolver amendment that, among other
things, reduced the total capacity of the facility to $1.90 billion
from $2.25 billion. S&P said, "This doesn't have a material effect
on the company's liquidity given that we expect the 5.5x leverage
covenant on its revolver to be the limiting factor for its
availability. We also continue to view TEP's liquidity as adequate
and anticipate that its liquidity sources will be more than 1.5x
its uses over the next 12 months."
S&P said, "While both of these transactions will affect our
recovery analysis, offsetting factors ultimately result in an
affirmation on all of the issue-level ratings in the capital
structure. The dropdown of PXP will change the collateral package
for TEP's debt. Specifically, the new collateral package reduces
the value available to the lenders in our simulated default
scenario. This is offset by the lower amount of revolver debt
outstanding at default.
"The negative outlook on TEP is based on our view that its leverage
is elevated for the current rating. We expect its S&P Global
Ratings-adjusted leverage to remain near 7.5x-8.0x this year based
on its proportional consolidation of Rockies and PXP. Under our
base-case scenario, we think TEP will use its cash to repay debt
over the next few years such that S&P Global Ratings-adjusted
leverage falls below 7.5x in 2022 and remains at that level. We
could downgrade the company by one notch if it fails to deleverage
as we expect."
TELEMACHUS LLC: Has Until June 1 to File Plan & Disclosures
-----------------------------------------------------------
Judge Jack Schmetterer of the U.S. Bankruptcy Court for the
Northern District of Illinois has entered an order within which the
deadline for debtor Telemachus, LLC, to file its Chapter 11 Plan
and Disclosure Statement is extended to June 1 , 2021.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/2PY0Lxz from PacerMonitor.com at no charge.
The Debtor is represented by:
Ben Schneider, Esq.
Matthew Stone, Esq.
Schneider & Stone
8424 Skokie Blvd., Suite 200
Skokie, IL 60077
Phone: 847-933-0300
Email: ben@windycitylawgroup.com
About Telemachus LLC
Telemachus, LLC is a single asset real estate debtor (as defined in
11 U.S.C. Section 101(51B)). It is the owner of fee simple title
to a property located at 769 W. Jackson Blvd., Chicago, Illi.,
having an appraised value of $3 million.
Telemachus filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 20-21374) on Dec.
11, 2020. The petition was signed by Marc Washor, managing member
of Baklava, LLC (owner of Debtor). At the time of filing, the
Debtor disclosed $3,226,189 in assets and $2,228,372 in
liabilities. Judge Jack B. Schmetterer oversees the case.
Schneider & Stone represents the Debtor as counsel.
THERMASTEEL INC: June 21 Plan Confirmation Hearing Set
------------------------------------------------------
On May 3, 2021, the Chapter 11 Trustee of Debtor Thermasteel, Inc.
filed with the U.S. Bankruptcy Court for the Western District of
Virginia, Roanoke Division, an Amended Disclosure Statement and a
First Amended Plan of Reorganization.
On May 4, 2021, Judge Paul M. Black conditionally approved the
Disclosure Statement and ordered that:
* June 7, 2021, is fixed as the last day for filing and
serving written objections to the Disclosure Statement.
* June 21, 2021, at 2:00 p.m., at the US Bankruptcy Court, 2nd
Flr, 210 Church Ave., Roanoke, VA 24011 is the hearing on
confirmation of the Plan.
* June 7, 2021, is fixed as the last day for filing written
acceptances or rejections of the Plan.
* June 7, 2021, is fixed as the last day for filing and
serving written objections to confirmation of the Plan.
* June 18, 2021, is fixed as the last day for the Chapter 11
Trustee to file a summary report on the votes with the Court.
A full-text copy of the order dated May 4, 2021, is available at
https://bit.ly/2Q3nZCE from PacerMonitor.com at no charge.
The Chapter 11 Trustee:
William E. Callahan, Jr., Esq.
GENTRY LOCKE RAKES & MOORE LLP
P.O. Box 40013
Roanoke, VA 24022-0013
Telephone: (540) 983-9309
Facsimile: (540) 983-9400
Email: callahan@gentrylocke.com
About Thermasteel Inc.
Thermasteel, Inc. -- http://www.thermasteelinc.com/-- is a
provider of panelized composite building systems, manufacturing
composite foundation, floor, wall, roof and ceiling panel for
residential, commercial and industrial applications. Its
pre-insulated steel framing has been used in large military housing
projects in the USA, Germany and Guantanamo Bay, Cuba. Production
facilities are presently located in USA (Virginia, Alaska), and
Russia, with products being shipped via container to many other
countries.
Thermasteel sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Va. Case No. 18-71461) on Oct. 26, 2018. At the
time of the filing, the Debtor estimated assets of $1 million to
$10 million and liabilities of the same range. The case is
assigned to Judge Paul M. Black.
The Debtor tapped the Law Office of Richard D. Scott as its legal
counsel.
William E. Callahan, Jr., is the Chapter 11 trustee appointed in
the Debtor's case. The Trustee tapped Gentry Locke Rakes & Moore,
LLP as his legal counsel and Hicok, Brown & Company CPAs as his
accountant.
TMMM MECH: Wins Access to Cash Collateral Thru May 13
-----------------------------------------------------
TMMM Mech, LLC sought the approval of the Bankruptcy Court to
collect receivables and use cash to pay ordinary operating expenses
until further Court order on the Debtor's use of cash collateral.
The Debtor's assets consist of miscellaneous office equipment,
truck, van, accounts receivable, machinery and equipment consist
the collateral securing the Debtor's obligation to ROC Funding
Group under a commercial with a balance of approximately $147,000
as of the Petition Date. The loan is in default.
A copy of the motion is available for free at
https://bit.ly/3eQMviE from PacerMonitor.com
* * *
Judge Stacey L. Meisel authorized TMMM Mech, LLC to use case
collateral of up to $20,000 through and including May 13, 2021 for
the reasonable and necessary operating expenses of its business.
A copy of the order is available for free at https://bit.ly/3vVL2P7
from PacerMonitor.com. Final hearing on the motion is scheduled
for May 13 at 10 a.m., prevailing Eastern Time, in Newark.
About TMMM Mech, LLC
TMMM Mech, located in Clifton, New Jersey, is in the utility system
construction business. It filed Chapter 11 petition (Bankr. D.N.J.
Case No. 21-13622) on April 30, 2021 in the United States
Bankruptcy Court District of New Jersey.
In the petition, the Debtor disclosed $802,530 in total assets and
$1,518,969 in total liabilities. The petition was signed by Simone
Timothy, managing member/owner.
The Law Offices of Ralph A. Ferrero, Jr., represents the Debtor as
counsel.
TRANSOCEAN LTD: Reports First Quarter 2021 Results
--------------------------------------------------
Transocean Ltd. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss
attributable to controlling interest of $99 million on $653 million
of contract drilling revenues for the three months ended March 31,
2021, compared to a net loss attributable to controlling interest
of $392 million on $759 million of contract drilling revenues for
the three months ended March 31, 2020.
As of March 31, 2021, the Company had $21.36 billion in total
assets, $1.30 billion in total current liabilities, $8.72 billion
in total long-term liabilities, and $11.34 billion in total
equity.
At March 31, 2021, the Company had $1.1 billion in unrestricted
cash and cash equivalents and $388 million in restricted cash and
cash equivalents. In the three months ended March 31, 2021, the
Company’s primary sources of cash were net cash provided by its
operating activities, and its primary uses of cash were repayments
of debt and capital expenditures.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1451505/000145150521000046/rig-20210331x10q.htm
About Transocean
Transocean is an international provider of offshore contract
drilling services for oil and gas wells. The company specializes
in technically demanding sectors of the offshore drilling business
with a particular focus on ultra-deepwater and harsh environment
drilling services. The company's mobile offshore drilling fleet is
considered one of the most versatile fleets in the world.
Transocean Ltd. reported a net loss of $568 million for the year
ended Dec. 31, 2020, compared to a net loss of $1.25 billion for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$21.80 billion in total
assets, $1.38 billion in total current liabilities, $8.98 billion
in total long-term liabilities, and $11.43 billion in total
equity.
* * *
As reported by the TCR on Dec. 1, 2020, S&P Global Ratings raised
its issuer credit on Switzerland-based offshore drilling contractor
Transocean Ltd. to 'CCC-' from 'SD' (selective default). The
upgrade follows the company's repurchase of at least $347.6 million
of the principal amount on various of its secured and unsecured
debt issues (with maturities ranging from 2020 to 2025) for about
$213 million in cash.
TUESDAY MORNING: Names New CEO After Bankruptcy Exit, Losses
------------------------------------------------------------
Tuesday Morning (OTCQX: TUEM), a leading off-price retailer of home
goods and decor, announced that Mr. Fred Hand, has been named Chief
Executive Officer and a member of the Board of Directors, effective
May 17, 2021. Mr. Hand is one of the most experienced and
well-respected off-price retail executives, most recently serving
as Chief Operating Officer of Burlington Stores, Inc.
Sherry Smith, Chairperson of the Board, stated, "After a
comprehensive search for a new CEO and interviews with several
high-quality candidates, we are confident Fred is the ideal choice
to lead Tuesday Morning's future growth. Fred is an exceptional
retailer with outstanding operating, merchandising, and leadership
skills, and importantly has a deep understanding of the off-price
business model. His record of strong leadership at Burlington and
extensive experience at other leading retailers, will be
instrumental in driving long-term value for Tuesday Morning."
Mr. Hand has served as Principal and Chief Operating Officer of
Burlington since July 2020 and was responsible for leading its
stores and real estate organizations. From January 2017 through
July 2020, Mr. Hand served as Chief Customer Officer/Principal and
prior to that served as Executive Vice President of Stores. Prior
to joining Burlington, Mr. Hand served as Senior Vice President,
Group Director of Stores of Macy's, Inc. from March 2006 to
February 2008. From 2001 to 2006, Mr. Hand served as Senior Vice
President, Stores and Visual Merchandising of Filene's Department
Stores. Mr. Hand held various other positions at The May Department
Stores Company from 1991 to 2001, including Area Manager, General
Manager, and Regional Vice President.
Mr. Hand stated, "I am honored and thrilled to take on the role as
Tuesday Morning's next CEO. Tuesday Morning is an iconic brand with
a great opportunity to lead in the off-price retail sector. I look
forward to working closely with the Company's Board, management
team and talented associates to take the Company to the next level.
I am motivated to build this organization to one that will not just
compete, but win."
Mr. Hand's appointment follows the previously announced transition
of Steven Becker, who will step down from his role as CEO and
Director. Mr. Becker will continue to serve in a consultancy role
until September 30, 2021 to ensure a smooth transition.
The Company operates 490 stores in 40 states providing a solid
footprint for future growth. It continues to provide a
consistently attractive product mix of name-brand, high-quality
products for the home at favorable prices for consumers.
About Tuesday Morning
Tuesday Morning Corporation (OTCQX: TUEM) is one of the original
off-price retailers specializing in name-brand, high-quality
products for the home, including upscale home textiles, home
furnishings, housewares, gourmet food, toys and seasonal décor, at
prices generally below those found in boutique, specialty and
department stores, catalogs and on-line retailers. Based in
Dallas, Texas, the Company opened its first store in 1974 and
currently operates 490 stores in 40 states. More information and a
list of store locations may be found on the Company's website at
http://www.tuesdaymorning.com/
On May 27, 2020, Tuesday Morning and six affiliates sought Chapter
11 protection (Bankr. N.D. Tex. Lead Case No. 20-31476). Tuesday
Morning disclosed total assets of $92 million and total liabilities
of $88.35 million as of April 30, 2020.
The Hon. Harlin Dewayne Hale is the case judge.
The Debtors tapped Haynes and Boone, LLP as general bankruptcy
counsel; Alixpartners LLP as financial advisor; Stifel, Nicolaus &
Co., Inc., as investment banker; A&G Realty Partners, LLC as real
estate consultant; and Great American Group, LLC as liquidation
consultant. Epiq Corporate Restructuring, LLC, is the claims and
noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on June 9, 2020. The creditors' committee tapped Munsch
Hardt Kopf & Harr, P.C., as counsel, and Winstead PC as Texas
co-counsel.
On Oct. 5, 2020, the Office of the U.S. Trustee appointed a
committee to represent equity security holders. The equity
committee tapped Pachulski Stang Ziehl & Jones, LLP as its legal
counsel, and PJ Solomon, L.P., and PJ Solomon Securities, LLC, as
its financial advisor and investment banker.
U.S.A. PARTS: $750K Sale of Kearneysville Property Denied as Moot
-----------------------------------------------------------------
Judge David L. Bissett of the U.S. Bankruptcy Court for the
Northern District of West Virginia denied as moot U.S.A. Parts
Supply, Cadillac U.S.A. Oldsmobile U.S.A. Limited Partnership's
sale of the real property located at 261 Industrial Blvd., in
Kearneysville, West Virginia, legally described as Lot No. 8,
Bardane Industrial Park, located in Jefferson County, West
Virginia, together with a Leaseback, to 261 Industrial Boulevard,
LLC, for $750,000, subject to higher and better offers.
On April 28, 2021, the Court entered a memorandum opinion
explaining why the case is ripe for dismissal. There is pending,
however, a motion by the Debtor to sell the Property. Based upon
the Court's memorandum opinion and imminent dismissal of the case,
the Court denied as moot the Debtor's motion to sell.
About U.S.A. Parts Supply
U.S.A. Parts Supply, Cadillac U.S.A. and Oldsmobile U.S.A. LP
(formerly doing business as Cadillac U.S.A. Parts Supply LP) is an
auto parts supplier in Kearneysville, W. Va.
U.S.A. Parts Supply filed a voluntary petition under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 20-00241) on March
22, 2020. The petition was signed by Michael Cannan, sole
shareholder and officer of general partner CUSAPS, Inc. At the
time of filing, the Debtor estimated $1 million to $10 million in
both assets and liabilities.
James P. Campbell, Esq. at Campbell Flannery, P.C., is the
Debtor's
legal counsel.
US GLOVE: May Use Cash Collateral Thru July 1
---------------------------------------------
Judge David T. Thuma approved the request of U.S. Glove, Inc. to
use cash collateral on an interim basis through July 1, 2021,
pursuant to the budget. The Debtor will use the cash collateral to
ensure that operations are maintained, the asset of the Estate
preserved, and that the Debtor be provided an opportunity to
reorganize its business.
As of the Petition Date, the Debtor may be indebted to Michael
Jacobs pursuant to loan documents on account of which the Debtor
may have granted Jacobs security interests in the Debtor's property
that includes accounts or other cash collateral.
The Debtor granted Jacobs and the Small Business Administration
replacement liens in an amount equal to and in the same priority as
they had as of the Petition Date to the extent that each had a
properly perfected security interest in cash collateral as of the
Petition Date. The Debtor is also authorized to make monthly cash
payments to Jacobs for $5,000. The Debtor's budget included line
items for cash inflows from PPP and EIDL, and cash outflows for SBA
loan (EIDL), however, at zero amounts.
A copy of the Order is available for free at https://bit.ly/33n1R9e
from PacerMonitor.com.
About U.S. Glove, Inc.
U.S. Glove, Inc. is a New Mexico Corporation with its headquarters
located at 6801 Washington Street NE, Albuquerque, New Mexico. It
manufactures hand and wrist support products for gymnastics and
cheerleading, as well as a variety of other ancillary products,
including wristbands, chalk, athletic tape, and grip brushes
designed to enhance athletic performance.
U.S. Glove sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.M. Case No. 21-10172) on February 14,
2021. In the petition signed by Randolph Chalker, authorized
person, the Debtor disclosed up to $500,000 in assets and up to $10
million in liabilities.
Judge David T. Thuma oversees the case.
The Debtor tapped Michael Best & Friedrich LLP as its bankruptcy
counsel and Walker & Associates, PC as its local counsel.
VISTRA OPERATIONS: S&P Rates $1.25BB Senior Unsecured Notes 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level and '3' recovery
ratings to Vistra Operations Co. LLC's $1.25 billion senior
unsecured notes, maturing 2029. Vistra Operations is a wholly owned
subsidiary of independent power producer Vistra Corp.
(BB/Stable/--).
The company intends to use the net proceeds from this issuance to
term out the $1.25 billion term loan A it raised in the first
quarter in the aftermath of winter storm Uri.
S&P recently lowered its issuer credit rating on parent Vistra to
'BB' from 'BB+'. The stable outlook reflects S&P Global Ratings'
view that after incorporating the impact from the one-time winter
event, the integrated wholesale retail model should allow Vistra's
run-rate EBITDA to stabilize in the $3.0 billion-$3.2 billion range
and financial measures, as reflected in the adjusted debt to
EBITDA, will trend in the 3.5x area in 2022.
W RESOURCES: Seeks to Continue Hearing on Property Sale to May 19
-----------------------------------------------------------------
W Resources, LLC Liquidating Trust filed with the U.S. Bankruptcy
Court for the Middle District of Louisiana its second ex parte
request (i) to continue hearing on proposed sale of its 40%
minority interest in Pine Valley, LLC, to Bradford H. Brian, and
Roger Hebert for $18,000, subject to overbid, from May 5, 2021, at
2:00 p.m. (CST) to May 19, 2021, at 2:00 p.m. (CST), and (ii) to
extend the deadline for responses to be filed through May 11,
2021.
On March 23, 2021, the Trust filed the Sale Motion, which
requested, the sale of a 40% membership interest in Pine Valley. A
hearing before the Court on the Sale Motion was set for May 5,
2021, at 2:00 p.m. (CST).
The parties continue to evaluate possible overbids and need
additional time to thoroughly consider same. The Trust requests a
continuance of the hearing on the Sale Motion in order to give
parties in interest additional time to evaluate possible overbids.
Notice of the requested continuance has been provided to the office
of the United States Trustee, which has indicated that it has no
objection.
About W Resources
W Resources, LLC, is a privately-owned company in Baton Rouge,
Louisiana, engaged in activities related to real estate. It is a
holding company with a diverse set of raw and recreational land,
farming and hunting operations, an aircraft hangar, oil and gas
interests, and equity-based interests.
W Resources sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. La. Case No. 18-10798) on July 23, 2018. In the
petition signed by Dwayne M. Murray, Chapter 11 trustee for
Michael
Worley, manager, the Debtor estimated assets and liabilities of
$50
million to $100 million each.
The Debtor hired Stewart Robbins & Brown, LLC, as its legal
counsel. Horne LLP serves as accountant.
WADE PARK: Wants Plan Exclusivity Extended Thru August 23
---------------------------------------------------------
Wade Park Land Holdings, LLC and Wade Park Land, LLC ask the U.S.
Bankruptcy Court for the Northern District of Georgia, Newnan
Division to extend the Debtors' exclusive period to file a Chapter
11 Plan and to solicit acceptances through and including August 23,
2021, and October 20, 2021, respectively.
As the Court is aware, the Debtors filed an adversary proceeding
immediately with the filing of the cases. The parties then withdrew
that action to the District Court. Since the First Exclusivity
Motion, that action has moved forward, with Motions to Dismiss
filed by each of the respective defendants.
On February 24, 2021, the Georgia District Court granted the Motion
to Dismiss as to Blake Goodman. It then transferred the action to
the Southern District of New York as to the remaining defendants.
The New York District Court recently settled on a renewed briefing
period for those defendants' Motion to Dismiss. Specifically, they
filed their renewed Motion to Dismiss and related briefing on April
16, 2021.
The Debtors and the other plaintiff have until May 7, 2021, to
respond and then the defendants have until May 21, 2021, to reply.
The New York District Court will then rule as to the remaining
Motion to Dismiss.
There has been progressing in the civil action since the First
Exclusivity Motion, but not enough progress for the Debtors to be
in a position to propose a Plan without significant contingencies.
There is no doubt that this is an unusual Chapter 11 case, with the
civil action being the centerpiece of the reorganization effort and
how the reorganization can and will proceed.
Thus, the Debtors need an additional period of exclusivity, with
another 120 days not being so long as to prejudice any party,
including the defendants, but also not being so short as to require
the Debtors to burden the docket and the Court with additional
requests in the interim.
The Debtors are current in their post-petition obligations,
although the Debtors might owe a nominal the United States Trustee
fee payment which they'll pay immediately.
No creditor's committee, examiner, or trustee has been appointed in
the cases.
A copy of the Debtor's Motion to extend is available at
https://bit.ly/33j20dF from PacerMonitor.com.
About Wade Park Land Holdings
Wade Park Land Holdings, LLC and Wade Park Land, LLC sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.
Lead Case No. 20-11192) on August 26, 2020. The petitions were
signed by Stanley E. Thomas, authorized representative.
At the time of the filing, Wade Park Land Holdings had estimated
assets of between $100 million and $500 million and liabilities of
between $100 million and $500 million. Wade Park Land had estimated
assets of between $100 million and $500 million and liabilities of
between $50 million and $100 million.
Judge Jeffery W. Cavender oversees the case. Stone & Baxter, LLP is
the Debtors' legal counsel.
WEINSTEIN CO: Harvey Accuses Attorney Jose Baez of Legal Fee Fraud
------------------------------------------------------------------
Law360 reports that Harvey Weinstein on Tuesday, May 4, 2021,
accused prominent criminal defense attorney Jose Baez of refusing
to refund him $1 million in legal fees after backing out of his
case in 2019, according to a suit filed in New York state court.
Weinstein tapped Baez to represent him in January 2019 as he stared
down a high-profile trial in New York. But Baez, known best for
leading Casey Anthony's murder trial acquittal, stepped away from
the case in July of that year. According to Tuesday's complaint,
Weinstein paid Baez $1 million, part of their agreement for Baez
and co-counsel Ronald S. Sullivan.
About The Weinstein Company
The Weinstein Company (TWC) -- http://www.WeinsteinCo.com/-- is a
multimedia production and distribution company launched in 2005 in
New York by Bob and Harvey Weinstein, the brothers who founded
Miramax Films in 1979. TWC also encompasses Dimension Films, the
genre label founded in 1993 by Bob Weinstein. During Harvey and
Bob's tenure at Miramax and TWC, they have received 341 Oscar
nominations and won 81 Academy Awards.
TWC dismissed Harvey Weinstein in October 2017, after dozens of
women came forward to accuse him of sexual harassment, assault or
rape.
The Weinstein Company Holdings LLC and 54 affiliates sought Chapter
11 protection (Bankr. D. Del. Lead Case No. 18-10601) on March 19,
2018 after reaching a deal to sell all assets to Lantern Asset
Management for $310 million.
The Weinstein Company Holdings estimated $500 million to $1 billion
in assets and $500 million to $1 billion in liabilities.
The Hon. Mary F. Walrath is the case judge.
Cravath, Swaine & Moore LLP is the Debtors' bankruptcy counsel,
with the engagement led by Paul H. Zumbro, George E. Zobitz, and
Karin A. DeMasi, in New York.
Richards, Layton & Finger, P.A., is the local counsel, with the
engagement headed by Mark D. Collins, Paul N. Heath, Zachary I.
Shapiro, Brett M. Haywood, and David T. Queroli, in Wilmington,
Delaware.
The Debtors also tapped FTI Consulting, Inc., as restructuring
advisor; Moelis & Company LLC as investment banker; and Epiq
Bankruptcy Solutions, LLC as claims and noticing agent.
The official committee of unsecured creditors retained Pachulski
Stang Ziehl & Jones, LLP as its legal counsel, and Berkeley
Research Group, LLC, as its financial advisor.
WILDFIRE INC: Wants Final Cash Collateral Order Amended
-------------------------------------------------------
Wildfire Inc. asks the U.S. Bankruptcy Court for the Central
District of California, Los Angeles Division, for entry of an order
amending the terms of the Final Cash Collateral Order solely to
update the Budget based upon the Debtor's increased order and
related expenses and provide for payment of the Debtor's tax
accountant.
Since entry of the Order Amending Final Cash Collateral Order on
April 21, 2021, the Debtor received a new large purchase order
which it cannot accommodate under the constraints of the Amended
Final Cash Collateral Order.
The Debtor entered into a Stipulation with secured creditors
JPMorgan Chase Bank, NA and the United States Small Business
Administration.
The Stipulation contains these relevant terms:
a) The Budget attached to the Amended Final Cash Collateral
Order, is amended and replaced with the revised budget and deemed
incorporated by reference into the Final Cash Collateral Order.
b) All other terms and conditions of the Amended Final Cash
Collateral Order will remain in full force and effect.
The proposed budget covers a total of 10 weeks, beginning on the
week ending April 17, 2021 and ending on the week ending June 19,
2021. The budget projects a total of $172,681.32 in total expenses
and a difference of $62,817.03 in expenses compared with the
original cash flow projection.
A full-text copy of the Stipulation is available for free at
https://bit.ly/33rcDeH from PacerMonitor.com.
About Wildfire Inc.
Wildfire Inc. -- https://wildfirelighting.com -- has focused on
creating innovative products designed to produce
audience-captivating black light visual effects.
Wildfire filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. C.D. Calif. Case Np. 21-10161) on
Jan. 11, 2021. John Berardi, chief executive officer, signed the
petition. At the time of filing, the Debtor disclosed $1,166,843
in assets and $738,105 on liabilities.
Judge Sandra R. Klein presides over the case.
Portillo Ronk Legal Team serves as the Debtor's legal counsel.
WILLIAM E. ROBINSON: $50K Mansfield Asset Sale to Dark Horse OK'd
-----------------------------------------------------------------
Judge Patricia M. Mayer of the U.S. Bankruptcy Court for the Middle
District of Pennsylvania authorized William E. Robinson's sale of
the real property located at 2460 South Main Street, in Mansfield,
Tioga County, Pennsylvania, to Dark Horse Holdings and Management,
LLC, for $50,000, subject to various costs of sale, free and clear
of all liens, claims, encumbrances, and other interests.
The Debtor is authorized to perform the relevant or appropriate
conveyances and duties referenced in the Motion.
Each of the Agreement, bills of sales, releases, other agreements,
certificates, assignments, documents and instruments executed in
connection therewith, and all of the other actions contemplated by
the sale of the Real Property are approved and authorized in their
entirety, except as may be modified in the Order.
Any other provisions of the Bankruptcy Code governing the sale of
property free and clear of all liens, claims, encumbrances and
other interests, outside the scope of the Debtor's ordinary course
of business, have been satisfied.
The counsel to the Debtor will be provided with a draft of the
Settlement Statement prior to closing.
Pursuant to the Agreement, the Debtor will pay costs and expenses
associated with the sale of the Real Property as follows:
a. Any notarization or incidental filing charges required to
be paid by the Debtor as Seller.
b. All other costs and charges apportioned to the Debtor;
c. All costs associated with the preparation of the conveyance
instruments and normal services with respect to closing, including
payment of a total of $5,000 payable to the Debtor's counsel,
Cunningham, Chernicoff & Warshawsky, P.C., in connection with the
implementation of the sale, the presentation and pursuit of this
Motion, consummation of closing and otherwise approved professional
fees and expenses in connection with the case. The foregoing sums
will be subject to the approval and allowance by the Court and will
be held by Cunningham, Chernicoff & Warshawsky, P.C. until such
time as the Court approves the application of such funds by
Cunningham, Chernicoff & Warshawsky, P.C.
d. Past due real estate taxes and present real estate taxes
pro-rated to the date of closing on the sale.
e. Any municipal charges and liens, pro rated, to the date of
closing on the sale.
f. A commission at the rate of 6% of the sale consideration
will be paid to United Country Jelliff Auction Group, the broker
for the Debtor. Payment to the Office of the U.S. Trustee of the
sum of $4,875 to be applied to fees owed or to be owed by the
Debtor.
Subsequent to the payment of costs of sale as set forth above, the
Debtor will pay the balance of the net proceeds to the Internal
Revenue Service on account of its lien.
No transfer tax is owed pursuant to 11 U.S.C. Section 1146, as it
is a transfer pursuant to a confirmed Plan of Reorganization.
Subject to the distributions set forth in the Order, all Liens and
Claims will be transferred and attach to the net proceeds obtained
for the Real Property.
The Order will be effective immediately upon its entry, and the
stay imposed by Bankruptcy Rule 6004 is declared inapplicable and
waived.
William E. Robinson sought Chapter 11 protection (Bankr. M.D. Pa.
Case No. 17-04408) on Oct. 23, 2017. The Debtor tapped Robert E.
Chernicoff, Esq., at Cunningham and Chernicoff PC as counsel.
YELLOW CORP: Incurs $63.3 Million Net Loss in First Quarter
-----------------------------------------------------------
Yellow Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $63.3 million on $1.19 billion of operating revenue for the
three months ended March 31, 2021, compared to net income of $4.3
million on $1.15 billion of operating revenue for the three months
ended March 31, 2020.
As of March 31, 2021, the Company had $2.35 billion in total
assets, $777.9 million in total current liabilities, $1.39 billion
in long-term debt, $148.5 million in operating lease liabilities,
$318.2 million in claims and other liabilities, and a total
shareholders' deficit of $281.2 million.
"The severe winter weather, including a generational storm in the
southern United States, significantly impacted our first quarter
results,"| said Darren Hawkins, chief executive officer. "In
February, roughly two-thirds of the 322 terminals in our network
were either closed or had limited operations for some period. Our
linehaul operations were also impacted by suspended service at
various times. The recovery period to get the network fully back
in cycle had a long tail that lasted into March and we estimate the
unfavorable impact to operating income in the first quarter was
approximately $16 million."
"With the impact of the winter weather behind us, LTL capacity
remains tight driven by an improving economy and consumer optimism.
We continue to see a strong yield environment."
"As previously indicated, we expect near-term headwinds from higher
purchased transportation expense primarily attributable to the use
of local cartage and over the road purchased transportation, both
of which are more expensive in a tight capacity environment. We
continue to expand our nationwide recruiting efforts including
holding more than two dozen hiring events and increasing the number
of driving academy locations to 17. We also took delivery of more
than 1,100 tractors, 1,600 trailers and 140 containers during the
first quarter as part of our $450 million to $550 million capital
expenditures plan in 2021. As we hire drivers and bring on
additional revenue equipment, we expect to use less local cartage
and over the road purchased transportation."
"We are in the process of executing the migration of our operating
companies to One Yellow technology platform. We are also focused
on optimizing the network to create One Yellow network and to
expand and enhance service in the 1, 2 and 3-day lanes nationwide.
The transformation to One Yellow remains on schedule to be
completed in the middle of 2022."
"The passage of the American Rescue Plan Act of 2021 will
strengthen eligible multiemployer pension plans that are currently
severely underfunded and substantially mitigate their unfunded
liabilities. The Act and the relief it provides will protect the
hard-earned benefits of retirees from many companies and many
industries including members of the Yellow team," concluded
Hawkins.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/716006/000156459021024038/yell-10q_20210331.htm
About Yellow Corporation
Yellow Corporation -- www.myyellow.com -- is a holding company
that, through its operating subsidiaries, offers its customers a
wide ange of transportation services. The Company reported a net
loss of $53.5 million for the year ended Dec. 31, 2020, compared to
a net loss of $104 million for the year ended Dec. 31, 2019. As of
Dec. 31, 2020, the Company had $2.18 billion in total assets,
$700.7 million in total current liabilities, $1.22 billion in
long-term debt (less current portion), $16.7 million in pension and
postretirement, $172.6 million in operating lease liabilities,
$297.7 million in in claims and other liabilities, and a total
shareholders' deficit of $223.3 million.
* * *
As reported by the TCR on July 14, 2020, S&P Global Ratings raised
its issuer credit rating on Overland Park, Kan.-based
less-than-truckload (LTL) and logistics company YRC Worldwide Inc.
to 'CCC+' from 'CCC' after the company announced the U.S.
Department of the Treasury will lend it an aggregate of $700
million under the Coronavirus Aid, Relief, and Economic Security
(CARES) Act, and that it has amended its term loan agreement to
waive the minimum EBITDA covenant through December 2021.
In July 2020, Moody's Investors Service confirmed the ratings of
truck carrier YRC Worldwide Inc., including the Caa1 corporate
family rating, following YRC's announcement that the United States
Department of Treasury intends to provide a $700 million loan to
YRC under authorization of the CARES Act. The Caa1 CFR considers
the company's position as one of the largest less-than-truckload
truck carriers in North America, thin operating margins and
substantial debt balance, in part due to Moody's adjustments
related to underfunded pension obligations.
YI GROUP: S&P Upgrades ICR to 'B-', Outlook Stable
--------------------------------------------------
S&P Global Ratings raised the issuer credit rating on YI Group
Holdings LLC to 'B-' from 'CCC+' and the rating for its first-lien
debt to 'B-' from 'CCC+'. The recovery rating for the first-lien
debt remains '3', indicating meaningful recovery for the first-lien
lenders in a hypothetical default.
S&P said, "Our stable outlook reflects our expectation that 2021
revenue will grow in the 13%-15% range and adjusted EBITDA margin
will remain in the 25%-27% range, leading to adjusted leverage
below 10x and breakeven to slightly positive free operating cash
flow.
"The upgrade reflects our expectation that revenue growth and
EBITDA margins will further improve, leading to adjusted leverage
of about 9x in 2021.We expect revenue growth to be driven by an
increase in specialty products sales, recovery in the hygiene
products segment, and continued demand for pandemic-related
products such as testing swabs and infection control products,
complemented by some small acquisitions. We also expect adjusted
EBITDA margins to remain in the mid-twenty-percent area with upside
potential, driven by procurement savings and a mix shift toward
higher-margin products."
The dental industry has been on the recovery trajectory since the
second quarter of 2020. In contrast to many of its peers, in 2020
the company slightly grew its revenue amid the pandemic. It
repurposed its dental swabs for COVID-19 testing and sold more
infection-control products, offsetting the lower patient volumes.
Adjusted EBITDA margin also improved by about 100 basis points
(bps) in 2020 year over year, reflecting tight cost controls amid
the pandemic.
S&P said, "Although the demand for dental supplies may still
fluctuate depending on the pace of the COVID-19 vaccination
rollout, we believe the company now has some capacity for
underperformance before reaching 10x leverage.
"We also expect the company to have sufficient liquidity to cover
its financial obligations and operational needs over the next 12
months. The company had a cash balance of about $70 million as of
year-end 2020. We expect the company to generate about $60 million
of EBITDA in 2021. With expected uses of about $60 million, which
include interest expenses of less than $35 million, debt repayment
of less than $5 million, working capital needs of about $10
million, and capital expenditure of about $12 million, we believe
the company has sufficient liquidity over the next 12 months.
"Our stable outlook reflects our expectation that 2021 revenue will
grow in the 13%-15% range and adjusted EBITDA margin will remain in
the 25%-27% range, leading to adjusted leverage below 10x and
break-even to slight positive free operating cash flow.
"We would consider a downgrade if the company's performance
deteriorates such that leverage is sustained above 10x and free
operating cash flow deficits persist. An EBITDA margin contraction
of 300 bps below our projections could lead to this scenario.
"We could revise the outlook to stable if revenue and EBITDA
continue to improve such that adjusted leverage is sustained at or
below mid 7x and free operating cash flow to debt ratio is
sustained at 3% or higher."
[*] Philadelphia Chapter 11 Filings Drop as Govt. Aid Arrives
-------------------------------------------------------------
Jeff Blumenthal of Philadelphia Business Journal reports that the
number of Chapter 11 bankruptcies filed in local federal courts
fell in the first quarter of 2021 by 27% from the previous quarter
and by 38% from the height of the pandemic, according to data
released by the U.S. Courts this week, as government aid programs
appear to have provided many businesses with a buffer from
Covid-19's crippling economic impact.
In the 3rd Circuit Court of Appeals, which includes Pennsylvania,
New Jersey, Delaware and the Virgin Islands, there were 390 Chapter
11 filings in the first quarter, down from 533 in the fourth
quarter of 2020, 468 in the third quarter and 629 in the second
quarter, when the pandemic’s impact was first felt.
Virtually all of those filings were in the bankruptcy haven of
Delaware, which saw 328 businesses seek Chapter 11 protection
compared to 476 in the fourth quarter of last 2020, 383 in the
third quarter and 595 in the second quarter. The most recent
numbers are still elevated from pre-pandemic 2019, when there were
606 Chapter 11 filings all year, but the decline is a sign that
fewer businesses are in a state of desperation.
Nationally, Delaware was home to 23% of all business Chapter 11
filings during the first quarter. The only other venue with more
than 100 filings was the Southern District of Texas, which had 223.
Situated in Houston, that court is often where energy companies
have sought bankruptcy protection during the pandemic. The Southern
District of New York only had 30 filings, compared to 280 in the
second quarter of last year when the pandemic first began to rage.
Chapter 11 business filings in the District of New Jersey (38) and
the Eastern District of Pennsylvania (9) were actually up from the
fourth quarter.
When choosing where to file, companies can select any state in
which they are incorporated or operate affiliates. That allowed
Delaware to join Manhattan as the nation's most popular bankruptcy
venues in the 1990s, as many companies are incorporated there and
the Wilmington judges were seen as more sophisticated and
predictable. More than half of the Fortune 500 are incorporated in
the First State, where the Delaware Court of Chancery is viewed as
a preeminent forum for resolving disputes involving the internal
affairs of businesses and also is a major center for intellectual
property cases. As bankruptcy filings in Delaware grew, the volume
of the caseload and average case size in Philadelphia's court
shrank.
The bankruptcy cases filed in Delaware since the pandemic began
were among the biggest. Hertz Corp.’s filing last 2020 was the
largest with $25.8 billion in assets — good enough to rank as the
24th-largest public company bankruptcy case in history. Other major
2020 filings in Delaware included tobacco supplier Pyxus
International, 24 Hour Fitness, GNC Holdings, Cirque du Soleil,
Lucky Brands, Brooks Brothers, and big screen software and display
maker Prysm. Companies filing in Delaware this 2021 include Holiday
Inn Resort Orlando Suites, Alamo Drafthouse Cinema and Christopher
& Banks Corp.
Hogan Lovells partner Kevin J. Carey, a former U.S. bankruptcy
judge who served five years in Philadelphia and 15 in Delaware
before retiring from the bench in late 2019, said he has seen
caseflow dissipate in recent months as many businesses have been
able to stave off doomsday scenarios due to federal stimulus
packages that included initiatives such as the Paycheck Protection
Program.
"Now that I am on the other side, I have seen that business filings
have slowed," Carey said. "It's a sign that the economy is coming
back. But it’s hard to say what’s going to happen next."
Carey said commercial real estate could play a major role in
determining the pace of business bankruptcies in the post-pandemic
world. Lenders could ultimately lose patience with landlords having
trouble renting out properties or collecting from tenants.
Among companies based in the Philadelphia region, perhaps the most
notable was shopping mall operator Pennsylvania Real Estate
Investment (PREIT), which filed in Delaware in November, listing
$2.4 billion in assets. PREIT (NYSE: PEI) is a perfect example of
the Philadelphia region's economy still being impacted by big
business Chapter 11 filings despite not many of them being
headquartered here.
Companies that operate national retail chains such as J.Crew,
Gold's Gym, Neiman Marcus, J.C. Penney, Le Pain Quotidien, Chuck E.
Cheese, New York & Co., Ann Taylor, Lane Bryant, California Pizza
Kitchen, Lord & Taylor, Men’s Wearhouse and Jos. A. Bank have
filed for Chapter 11 protection.
Local mall and shopping center landlords have been affected
dramatically by the bankruptcies of big box retail tenants. They
might not be debtors in these cases, but mall and retail center
owners have seen their revenue streams severely compromised –
especially since some of these tenants were demanding concessions
on rent even before they filed for Chapter 11. And with the trend
toward digital shopping accelerating during the pandemic, landlords
could have problems replacing them.
[^] BOND PRICING: For the Week from May 3 to 7, 2021
----------------------------------------------------
[^] BOND PRICING: For the Week from May 3 to 7, 2021
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Basic Energy Services BASX 10.750 20.173 10/15/2023
Basic Energy Services BASX 10.750 20.173 10/15/2023
Briggs & Stratton Corp BGG 6.875 8.500 12/15/2020
Buffalo Thunder
Development
Authority BUFLO 11.000 50.010 12/9/2022
Chinos Holdings Inc CNOHLD 7.000 0.332 N/A
Chinos Holdings Inc CNOHLD 7.000 0.332 N/A
Dean Foods Co DF 6.500 1.733 3/15/2023
Dean Foods Co DF 6.500 1.875 3/15/2023
Energy Conversion
Devices Inc ENER 3.000 7.875 6/15/2013
Energy Future
Competitive
Holdings Co LLC TXU 0.960 0.072 1/30/2037
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 10.000 35.437 7/15/2023
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 10.000 35.945 7/15/2023
Federal Home
Loan Banks FHLB 0.190 99.769 9/21/2022
Federal Home Loan
Mortgage Corp FHLMC 0.250 99.874 5/11/2022
Fleetwood Enterprises FLTW 14.000 3.557 12/15/2011
GNC Holdings Inc GNC 1.500 1.250 8/15/2020
GTT Communications Inc GTT 7.875 15.275 12/31/2024
GTT Communications Inc GTT 7.875 15.493 12/31/2024
Goodman Networks Inc GOODNT 8.000 38.367 5/11/2022
Goodman Networks Inc GOODNT 8.000 23.000 5/31/2022
High Ridge Brands Co HIRIDG 8.875 1.134 3/15/2025
High Ridge Brands Co HIRIDG 8.875 1.134 3/15/2025
Liberty Media Corp LMCA 2.250 48.628 9/30/2046
MAI Holdings Inc MAIHLD 9.500 15.895 6/1/2023
MAI Holdings Inc MAIHLD 9.500 15.895 6/1/2023
MAI Holdings Inc MAIHLD 9.500 15.895 6/1/2023
MF Global Holdings Ltd MF 9.000 15.625 6/20/2038
MF Global Holdings Ltd MF 6.750 15.625 8/8/2016
Mashantucket Western
Pequot Tribe MASHTU 7.350 16.000 7/1/2026
Navajo Transitional
Energy Co LLC NVJOTE 9.000 65.000 10/24/2024
Nine Energy Service NINE 8.750 41.485 11/1/2023
Nine Energy Service NINE 8.750 41.392 11/1/2023
Nine Energy Service NINE 8.750 40.824 11/1/2023
OMX Timber Finance
Investments II LLC OMX 5.540 0.879 1/29/2020
Optimas OE Solutions
Holding LLC /
Optimas OE
Solutions Inc OPTOES 8.625 91.057 6/1/2021
Optimas OE Solutions
Holding LLC /
Optimas OE
Solutions Inc OPTOES 8.625 91.057 6/1/2021
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Revlon Consumer
Products Corp REV 6.250 38.934 8/1/2024
Rolta LLC RLTAIN 10.750 1.698 5/16/2018
Sears Holdings Corp SHLD 8.000 3.470 12/15/2019
Sears Holdings Corp SHLD 6.625 2.779 10/15/2018
Sears Holdings Corp SHLD 6.625 2.779 10/15/2018
Sears Roebuck
Acceptance Corp SHLD 7.500 0.254 10/15/2027
Sears Roebuck
Acceptance Corp SHLD 6.500 0.624 12/1/2028
Sears Roebuck
Acceptance Corp SHLD 7.000 0.596 6/1/2032
Sears Roebuck
Acceptance Corp SHLD 6.750 0.403 1/15/2028
Sempra Texas
Holdings Corp TXU 5.550 13.500 11/15/2014
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Transworld Systems Inc TSIACQ 9.500 31.875 8/15/2021
United Community
Banks Inc/GA UCBI 4.012 99.638 2/14/2022
Voyager Aviation
Holdings LLC /
Voyager Finance Co VAHLLC 9.000 45.920 8/15/2021
Voyager Aviation
Holdings LLC /
Voyager Finance Co VAHLLC 9.000 47.960 8/15/2021
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
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The TCR subscription rate is $975 for 6 months delivered via
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*** End of Transmission ***