/raid1/www/Hosts/bankrupt/TCR_Public/210528.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, May 28, 2021, Vol. 25, No. 147
Headlines
176 ROUTE 50: Case Summary & 2 Unsecured Creditors
18 IRVING STREET: Voluntary Chapter 11 Case Summary
2017 IAVF WINDY: Liquidating Plan Confirmed by Judge
335 LAKE AVENUE: June 22 Plan & Disclosures Hearing Set
4218 PARTNERS: Unsecureds to Split What's Left of Sale Proceeds
625 FUSION LLC: Seeks Approval to Hire WLA LLC as Accountant
ACRO BIOMEDICAL: Delays Filing of First Quarter Form 10-Q
ADARA ENTERPRISES: Cash Access, $350,000 DIP Loan Win Final OK
ADVANCED CONTAINER: Incurs $297K Net Loss in First Quarter
AUTOMOTORES GILDEMEISTER: Taps Spencer Stuart as Consultant
AYTU BIOPHARMA: Stockholders Elect Six Directors
B & S DEVELOPMENT: Amos Financial Seeks to Bar Cash Collateral Use
BAINBRIDGE UINTA: Slated to Seek Plan Confirmation on June 25
BIOSTAGE INC: Incurs $874K Net Loss in First Quarter
BOSTON DONUTS: Wins Cash Collateral Access Thru July 23
BOUCHARD TRANSPORTATION: Owner Pivots to Chapter 11 Asset Sale
BULLDOGGE FITNESS: Wins Cash Collateral Access Thru June 30
BURN FITNESS: Gets Approval to Hire Maddin Hauser as Counsel
CALIFORNIA-NEVADA: Wins Cash Collateral Access Thru Aug. 6
CAREVIEW COMMUNICATIONS: Incurs $2.5M Net Loss in First Quarter
CD THOMAS FARMS: Seeks to Hire Wayne E. Griffin as Legal Counsel
CLINIGENCE HOLDINGS: Incurs $4.2 Million Net Loss in First Quarter
CLINIGENCE HOLDINGS: Signs LOI to Acquire ProCare Health
CRED INC: Cannot Block 3rd-Party Damage Suit, Says Investor
CRESTWOOD HOSPITALITY: Seeks Cash Collateral Access to Pay Vendors
DAVIDZON MEDIA: Wins Cash Collateral Access
DECK SUPPLY: Case Summary & 7 Unsecured Creditors
DEMETRIOS ESTIATORIO: Exit Plan OK'd, Cash Collateral Bid Denied
DMVH LLC: Case Summary & 2 Unsecured Creditors
DYNOTEC INDUSTRIES: Wins Interim OK to Use $185,000 Cash
EAGLE HOSPITALITY: Delaware Judge Blasts Chapter 11 Fraud Claims
ELECTRONIC DATA: Wins Cash Collateral Access Thru June 25
ENTRUST ENERGY: May Use Cash Collateral for Continued Operations
EXPO CONSTRUCTION: G.L. Nettles Opposes Disclosure Statement
FULL HOUSE: All Four Proposals Passed at Annual Meeting
GAIA INTERACTIVE: Has Interim OK to Use $133,000 Cash
GATEWAY KENSINGTON: Seeks Interim Use of Cash Collateral
GATEWAY KENSINGTON: Seeks to Hire Kirby Aisner as Legal Counsel
GEO GROUP: Credit Market Standing Slides Due to Cash Crunch
GIBSON FARMS: Gibsons to Contribute $100K; Amends Rabo's Claim
GIRARDI & KEESE: Passes Off 86 Talc Cases vs. Johnson & Johnson
GORDON BROTHERS: Affiliate Kamiak Seeks Cash Collateral Access
GROUND OPTIONS: Motions to Incur Debt, Use Cash Collateral Dropped
GUI-MER-FE: Case Summary & 2 Unsecured Creditors
GUITAMMER COMPANY: Seeks to Hire Hack Steer & Company as Accountant
GUITAMMER COMPANY: Taps Kremblas & Foster as Special Counsel
HIGHLAND CAPITAL: Committee Taps Teneo as Litigation Advisor
HORIZON BLUE CROSS: NJ Supreme Court Take on Bankruptcy Clause
HOSPITALITY INVESTORS: May 28 Deadline Set for Panel Questionnaires
INSPIREMD INC: Okays Additional Provision on Complaint Resolution
INTEGRATED AG: Plan Sponsor's Financing, Contribution to Fund Plan
J.S. CATES: Wins Cash Collateral Access Thru June 9
JMP HOSPITALITY: May Use Cash Collateral Thru Final Hearing Date
JUST ENERGY: Court Extends Stay Period to Sept. 30, 2021
KLAUSNER LUMBER: Unsecureds to Recoup 58.1% to 100% in Plan
LA DHILLON: July 1 Plan Confirmation Hearing Set
LATAM AIRLINES: Campania de Seguros, AerCap Out as Panel Members
LG ORNAMENTALS: Has Until August 23 to File Plan & Disclosures
LIGHTHOUSE RESOURCES: Bankruptcy Moots Its Fight for Coal Permit
LIVINGSCAPES LLC: Has Until Aug. 23 to File Plan & Disclosures
LOMPA RANCH: Seeks Approval to Hire Timothy Thomas as New Counsel
LW RETAIL: Wins Cash Collateral Access Thru June 25
MALLINCKRODT PLC: Ch. 11 Trustee Hearing Scheduled for Confirmation
MALLINCKRODT PLC: HHS Objects to Disclosure Statement
MARX STEEL: Wins Cash Collateral Access Thru July 2
METRO-GOLDWYN-MEYER: Anchorage Capital Profits $2 Billion on Deal
MYSTIC WINE: Gets Cash Collateral Access Thru July 23
NASHEF LLC: May Use Cash Collateral Thru July 23
NATIONAL SMALL BUSINESS: Wins Cash Collateral Access
NEWSTREAM HOTEL: Seeks to Hire Spencer Fane as Legal Counsel
NEWSTREAM HOTEL: Taps InnVentures IVI to Manage Hotel
PIAGGIO AMERICA: Has Until Aug. 11 to File Plan & Disclosures
PUERTO RICO: PREPA Goes Private to Save Island
PURDUE PHARMA: Defeats State's Opioid Settlement Vote Pushback
QUINCY BAG: U.S. Trustee Unable to Appoint Committee
RENNOVA HEALTH: Delays Filing of Form 10-Q Due to COVID-19
RENNOVA HEALTH: Gets $1 Million From Preferred Stock Offering
RESOURCES LIMITED: U.S. Trustee Unable to Appoint Committee
SAND DOLLAR: Seeks to Tap Peter Thomson as Local Counsel
SHAMROCK FINANCE: Examiner Taps Riemer & Braunstein as Counsel
SHILO INN: Gets Cash Collateral Access Thru July 30
SIZZLER USA: Files Suit to Lift PPP Loan Application Hold
SMG INDUSTRIES: Incurs $3.9 Million Net Loss in First Quarter
SOUTHERN ROCK: Taps Professional Management Systems as Accountant
STEREOTAXIS INC: Stockholders Approve All Proposals at Meeting
STOP & GO: Business Income to Fund Plan; Files Amended Plan
SUNRISE REAL ESTATE: Incurs $1.6 Million Net Loss in First Quarter
TD HOLDINGS: Delays Filing of First Quarter Form 10-Q
TEN & FREE: Wins Cash Collateral Access Thru June 4
TEXAS SOUTH: Delays Form 10-Q Filing Due to Working Capital Issues
TOP FLIGHT: U.S. Trustee Unable to Appoint Committee
TOWN SPORTS: Lenders Sued by Kennedy Lewis Over Bankruptcy Sale
UP ENERGY: Changes Name After Chapter 11 Exit
US REAL ESTATE: Wins Cash Collateral Access
VBI VACCINES: Secures $12M Second Tranche of Debt Financing With K2
VERTICAL MAC: Seeks Approval to Hire Moecker Auctions as Appraiser
WATKINS NURSERIES: Slated to Seek Plan Confirmation on June 30
WILDWOOD VILLAGES: Gets Cash Collateral Access Thru June 30
YUNHONG CTI: Incurs $380,349 Net Loss in First Quarter
[^] BOOK REVIEW: The First Junk Bond
*********
176 ROUTE 50: Case Summary & 2 Unsecured Creditors
--------------------------------------------------
Debtor: 176 Route 50, LLC
176 Route 50
Estell Manor, NJ 08319
Business Description: 176 Route 50, LLC is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: May 26, 2021
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 21-14402
Debtor's Counsel: David B. Smith, Esq.
SMITH KANE HOLMAN, LLC
112 Moores Road
Suite 300
Malvern, PA 19355
Tel: 610-407-7215
Fax: 610-407-7218
E-mail: dsmith@skhlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by James McCallion, the sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/XE26XJQ/176_Route_50_LLC__njbke-21-14402__0001.0.pdf?mcid=tGE4TAMA
18 IRVING STREET: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: 18 Irving Street, LLC
18 Irving Street
Somerville, MA 02144
Chapter 11 Petition Date: May 27, 2021
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 21-10776
Debtor's Counsel: Alex R. Hess, Esq.
ALEX R. HESS LAW GROUP
245 First Street, 18th Floor
Riverview II
Cambridge, MA 02142
Tel: 610-730-9472
E-mail: Ahess@arhlawgroup.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Gina Strauss, manager and sole member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/AVTMQ7Q/18_IRVING_STREET_LLC__mabke-21-10776__0001.0.pdf?mcid=tGE4TAMA
2017 IAVF WINDY: Liquidating Plan Confirmed by Judge
----------------------------------------------------
Judge Deborah L. Thorne has entered an order approving the
Disclosure Statement and confirming the Liquidating Plan of 2017
IAVF Windy City Fox Run LLC and its debtor-affiliates.
Consolidation for distribution purposes under the Plan means (a)
all remaining cash-on-hand and all liabilities of each of the
Debtors shall be deemed merged or treated as though they were
merged into and with the assets and liabilities of each other, (b)
each and every Claim filed in any of the Chapter 11 Cases shall be
treated as filed against the consolidated Debtors, and shall be
treated as one Claim against and obligation of the consolidated
Debtors, and (c) for purposes of determining the availability of
the right of set off, the Debtors shall be treated as one entity so
that debts due to any of the Debtors may be set off against the
debts of any of the other Debtors.
Except as set forth in the Plan and Asset Purchase Agreement, the
Debtors shall be deemed to have rejected all executory contracts
and leases not expressly assumed prior to or in connection with the
Confirmation Order and Asset Purchase Agreement. For the avoidance
of doubt, pursuant to the Asset Purchase Agreement, all unexpired
residential leases shall be assumed and assigned to Purchaser.
Notwithstanding anything to the contrary contained herein or in the
Plan, nothing in this Order or the Plan shall alter, impair or
otherwise impact the pending claims of the Debtors against Paper
Street Realty, LLC or counterclaims of Paper Street against the
Debtors removed from the Circuit Court of Cook County to the
Bankruptcy Court and pending as 2017 IAVF Windy City Fox Run LLC,
et al. v. Paper Street Realty d/b/a Paper Street Properties.
A full-text copy of the order dated May 20, 2021, is available at
https://bit.ly/3bX1Pd4 from PacerMonitor.com at no charge.
The Debtors are represented by:
Kevin H. Morse, Esq.
Clark Hill PLC
130 E. Randolph Street, Suite 3900
Chicago, Illinois 60601
Email: kmorse@clarkhill.com
About 2017 IAVF Windy City Fox Run
On Oct. 7, 2020, 2017 IAVF Windy City Fox Run, LLC (Bankr. N.D.
Ill. Case No. 20-18377, Lead Case) and affiliates 2017 IAVF Windy
City Parkside LLC (Bankr. N.D. Ill. Case No. 20-18379), 2017 IAVF
Windy City Shaddle LLC (Bankr. N.D. Ill. Case No. 20-18380), and
2017 IAVF Windy City Villa Brook LLC (Bankr. N.D. Ill. Case No.
20-18381) sought Chapter 11 protection.
The petitions were signed by Andrew Belew, president, Better
Housing Foundation, Inc., as manager.
Each of the Debtors was estimated to have assets in the range of
$10 million to $50 million and $50 million to $100 million in
debt.
The cases are assigned to Judge Carol A. Doyle.
The Debtors tapped Kevin H. Morse, Esq., at Clark Hill PLC, as
counsel.
335 LAKE AVENUE: June 22 Plan & Disclosures Hearing Set
-------------------------------------------------------
On April 19, 2021, debtor 335 Lake Avenue, LLC filed with the U.S.
Bankruptcy Court for the District of Colorado an Amended Disclosure
Statement accompanying Amended Chapter 11 Plan of Reorganization.
On May 20, 2021, Judge Joseph G. Rosania, Jr. approved the Amended
Disclosure Statement and ordered that:
* June 15, 2021, is fixed as the last day to submit Ballots
for Accepting or Rejecting the Plan.
* June 18, 2021, is fixed as the last day for the Debtor to
file a report regarding the submission of ballots accepting or
rejecting the Plan.
* June 22, 2021, at 9:30 a.m., by Zoom video conference is the
evidentiary hearing for final approval of the Disclosure Statement
and for consideration of confirmation of the Plan.
* The parties shall exchange witness lists and exhibits,
including all possible impeachment and/or rebuttal exhibits, on or
before June 11, 2021.
* Written objections directed to the exhibits must be filed
and served on opposing counsel or party on or before June 15,
2021.
A full-text copy of the order dated May 20, 2021, is available at
https://bit.ly/3hX3KBT from PacerMonitor.com at no charge.
Counsel for the Debtor:
Jeffrey A. Weinman
WEINMAN & ASSOCIATES, P.C.
730 17th Street, Suite 240
Denver, CO 80202-3506
Telephone: (303) 572-1010
Facsimile: (303) 572-1011
E-mail: jweinman@weinmanpc.com
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.
The 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.
4218 PARTNERS: Unsecureds to Split What's Left of Sale Proceeds
---------------------------------------------------------------
Maguire Ft. Hamilton LLC, a secured creditor of 4218 Partners LLC,
filed with the Bankruptcy Court an Amended Chapter 11 Plan for 4218
Partners LLC, and a Disclosure Statement explaining that Plan.
Maguire Ft. Hamilton is the proponent of the Plan, which
contemplates the sale, free and clear of all liens, claims and
encumbrances the Debtor's 4218 Property. The sale proceeds will be
used to fund the distributions to creditors under the Plan.
Treatment of Claims Under the Lender's Plan
* Class 1 Maguire Secured Claim
Class 1 is an Allowed Claim with a value equal to the sum of the
Debtor's obligation to Maguire, including interest, costs and
related charges. Maguire's Claim in Debtor 4218's case aggregates
$9,376,950, consisting of $8,250,000 million principal balance,
$1,126,950 in pre-petition contract and default interest and
post-petition interest, attorneys' fees, and costs. Maguire is
successor-in-interest to Ice Lender XVII LLC.
In full settlement and release of the Maguire Secured Claim with
respect to Debtor 4218, Maguire shall either: (a) be paid the Sale
Proceeds up to the amount of the Maguire Secured Claim, if Maguire
is not the Successful Bidder; or (b) receive the 4218 Property
through the Sale, if Maguire is the Successful Bidder.
To the extent that the Sale Proceeds are insufficient to fund all
distributions to Creditors -- if the Plan Proponent is the
Successful Bidder -- the Plan Proponent shall fund distributions to
satisfy the Allowed Administrative Expense Claims, Allowed
Professional Fee Claims, Allowed Priority Tax Claims, and
Bankruptcy Fees and shall fund up to $10,000 for the payment of
Allowed General Unsecured Claims.
* Class 2 Other Secured Claim
Class 2 consists of all Allowed Claims other than the Maguire
Secured Claim and Fort Hamilton Debt's Secured Claim, Secured by
property of the 4218 Debtor. Each holder of an Allowed Other
Secured Claim shall receive cash for the amount of such Allowed
Other Secured Claim after the later of the Effective Date or the
date upon which such Other Secured Claim becomes Allowed.
* Class 3 Fort Hamilton Debt
Class 3 consists of the Claim of Fort Hamilton Debt with respect to
the property that is the subject of the Air Rights Dispute.
The Air Rights Dispute and Fort Hamilton Debt's Claim shall not be
affected by the Lender's Plan except to the extent that Fort
Hamilton Debt and the Plan Proponent agree to an alternative
treatment. The Lender's Plan envisions vesting Maguire with the
right to pursue and/or defend any litigation.
* Class 4 General Unsecured Claims
Each holder of an Allowed General Unsecured Claim shall receive
cash equal to the greater of:
a. the amount of Allowed General Unsecured Claim, to the extent
the Sale Proceeds exceed the value of Maguire's Secured Claim in an
amount sufficient to pay all Allowed General Unsecured Claims in
full; or
b. (1) a pro rata share of the remaining Sale Proceeds after
payment of the Maguire's Secured Claim, to the extent such Sale
Proceeds exceed the value of the Maguire's Debt Secured Claim; and
(2) a pro rata share of the General Unsecured Claim
Carve-Out.
* Class 5 Interests. All Interests in the 4218 Debtor shall be
cancelled as of the Effective Date, and holders of such Interests
shall not receive any distribution under the Lender's Plan.
The Lender's Plan sets forth the sale procedures and bid
requirements for the sale of the 4218 Property, which procedures
shall be approved with the confirmation of the Lender's Plan.
Maguire may credit bid, under the Plan, all or portion of its
Maguire Secured Claim.
A copy of the Disclosure Statement is available for free at
https://bit.ly/3fRHRkQ from PacerMonitor.com.
Counsel for Maguire Ft. Hamilton LLC:
Leslie A. Berkoff, Esq.
MORITT HOCK & HAMROFF LLP
400 Garden City Plaza
Garden City, NY 11530
About 4218 Partners
4218 Partners LLC owns the property located at 4218 Fort Hamilton
Parkway, Brooklyn, New York, as well as, all rights attendant to
such property.
4218 Partners LLC, and 175 Pulaski RLM LLC, based in Brooklyn,
N.Y., sought Chapter 11 protection (Bankr. E.D.N.Y. Lead Case No.
19-44444) on July 21, 2019. In the petitions signed by Joseph
Fischman, manager, 4218 Partners estimated assets of $10 million to
$50 million and liabilities of $1 million to $10 million; and 175
Pulaski estimated assets and liabilities of $1 million to $10
million. The cases are assigned to the Hon. Nancy Hershey Lord.
Nutovic & Associates is the Debtors' attorney.
On May 21, 2021, Lender Maguire Ft. Hamilton filed an Amended
Chapter 11 Plan of Reorganization for Debtor 4218 Partners, which
Plan provides for the sale, free and clear of liens, claim, and
encumbrances of the Debtor's 4218 Property. MORITT HOCK & HAMROFF
LLP represents Maguire.
625 FUSION LLC: Seeks Approval to Hire WLA LLC as Accountant
------------------------------------------------------------
625 Fusion, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ WLA, LLC as its
accountant.
The Debtor needs an accountant to give advice on tax-related
issues; prepare payroll, monthly reports and tax returns; and
assist with the PPP loan forgiveness process.
WLA will charge $200 per hour for its services.
William Lee, an accountant at WLA, disclosed in a court filing that
his firm is a "disinterested person" as that term is defined in
Section 101 (14) of the Bankruptcy Code.
The firm can be reached through:
William Lee, CPA
WLA, LLC
5260 NW 109 Avenue
Doral, FL 33178
About 625 Fusion
625 Fusion, LLC owns Red Door Asian Bistro & Hibachi, an Asian
fusion restaurant, hibachi and sushi bar in Fort Lauderdale, Fla.
It conducts business under the name Tony's Asian Fusion.
625 Fusion filed for bankruptcy protection under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
21-13373) on April 9, 2021. At the time of the filing, the Debtor
disclosed total assets of up to $50,000 and total liabilities of up
to $1 million. Judge Peter D. Russin oversees the case.
Gamberg & Abrams and WLA, LLC serve as the Debtor's legal counsel
and accountant, respectively.
ACRO BIOMEDICAL: Delays Filing of First Quarter Form 10-Q
---------------------------------------------------------
Acro Biomedical Co., Ltd. filed with the Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its Quarterly Report on Form 10-Q for the three-month
period ended March 31, 2021.
"The compilation, dissemination and review of the information
required to be presented in the Form 10-Q for the quarter ended
March 31, 2021 has imposed time constraints that have rendered
timely filing of the Form 10-Q impracticable without undue hardship
and expense to the registrant. The registrant has no full-time
employees and requires additional time to provide information
necessary for the completion of the Form 10-Q. The registrant
undertakes the responsibility to file such report no later than
five days after its original prescribed due date," Acro Biomedical
said.
Based on preliminary information, for the three months ended March
31, 2021, the Company expects to report revenues of approximately
$99,500 and a loss of approximately $59,500, or ($0.00) per share
(basic and diluted). For the three months ended March 31, 2020,
the Company generate revenue $687,964 and net income of $81,116, or
$0.00 per share (basic and diluted).
About Acro Biomedical
Acro Biomedical Co., Ltd. has been engaged in the business of
developing and marketing nutritional products that promote wellness
and a healthy lifestyle. The Company's business to date has
involved the purchase of products from three suppliers in the
Republic of China. The Company sells product in bulk to companies
who may use its products as ingredients in their products or sell
the products they purchase from the Company to their own
customers.
Acro Biomedical reported a net loss of $117,453 for the year ended
Dec. 31, 2020, compared to a net loss of $371,604 for the year
ended Dec. 31, 2019.
Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 1, 2021, citing that the Company had limited
cash as of Dec. 31, 2020, had limited gross profit and incurred a
loss from its operations for the year ended Dec. 31, 2020. These
circumstances, among others, raise substantial doubt about the
Company's ability to continue as a going concern.
ADARA ENTERPRISES: Cash Access, $350,000 DIP Loan Win Final OK
--------------------------------------------------------------
Judge J. Kate Stickles authorized Adara Enterprises Corp., on a
final basis to:
(a) use cash collateral through the earliest to occur of (i) the
expiration of the Remedies Notice Period and (ii) the Effective
Date of the Debtor's Prepackaged Chapter 11 Plan of Reorganization;
and
(b) borrow from its Pre-petition Lender, ESW Holdings, Inc., up
to $350,000 in post-petition DIP financing.
The DIP Facility shall incur interest at 8% per annum (or 10%, in
the event of default), and shall mature on the earlier to occur of
the Effective Date of the Plan and the expiration of any Remedies
Notice Period. The funds available from the DIP Facility are
inclusive of all advances previously made pursuant to the Interim
Order.
The Remedies Notice Period is the period between the occurrence of
an event of default by the Debtor and five days after delivery of
the Carve-Out Trigger Notice to the Debtor, the U.S. Trustee, and
the Creditors' Committee, of the said default.
The Debtor will use the cash collateral and the DIP Loan proceeds
to (x) finance its working capital needs and other general
corporate purposes; and (y) pay related transaction costs, fees,
liabilities and expenses, including all professional fees and
expenses of the Debtor's professionals, and other administration
costs incurred in connection with the Chapter 11 case.
The Court-approved budget provided for cash flow (disbursements) at
$34,700 for the week ending May 31, 2021; and $170,000 for the week
ending June 7, 2021, or a total disbursement of $398,614 for the
eight-week period ending June 7, 2021. A copy of the budget (at
page 16) is available for free at https://bit.ly/3oLAGPu from
Donlin Recano, claims agent.
Pre-petition Obligations
As of the Petition Date, the Debtor was indebted to ESW Holdings
for at least $12,849,359, consisting of principal at $11,000,000
plus interest, fees and other amounts owing under the Pre-petition
Secured Obligation.
ESW Holdings is granted, as adequate protection for its interest in
the cash collateral:
* Adequate Protection Liens, consisting of valid, binding,
continuing, enforceable, fully perfected, first priority senior
replacement liens on and security interests in all tangible and
intangible pre- and post-petition property of the Debtor, to the
extent of any diminution in value of the Prepetition Collateral,
which liens shall be junior only to the Carve-Out and any Permitted
Encumbrance;
* Adequate Protection Super-priority Claims for the amount of
diminution in value of the Pre-petition Collateral, which shall be
allowed as a super-priority administrative expense claim against
the Debtor;
* Prepetition Secured Party's Fees and Expenses, for which the
Debtor shall reimburse ESW Holdings, specifically fees and expenses
incurred under the Loan Documents and as plan sponsor, which were
paid to legal counsel Goulston & Storrs PC and Morris, Nichols,
Arsht & Tunnell LLP, financial advisors and other consultants.
At all times during the Debtor's Chapter 11 case shall interest at
8% per annum accrue on the outstanding Pre-petition Secured
Obligations. A 10% interest rate (per annum) shall accrue on the
Pre-petition Secured Obligations after the occurrence of an event
of default.
The Prepetition Secured Obligations, the Prepetition Liens, the
Adequate Protection Super-priority Claims, the Adequate Protection
Liens and any claims arising from the DIP Financing shall be
subject and subordinate to prior payment of the Carve-Out.
Carve-Out
The Court's Order provides for a Carve-Out consisting of:
* all fees payable to the Clerk of the Court and to the Office
of the United States Trustee, plus interest at the statutory rate;
* all accrued unpaid fees and expenses incurred by persons or
firms retained by the Debtor and any Creditors' Committee appointed
in the Debtor's Chapter 11 case, to the extent allowed by the
Bankruptcy Court, at any time on or before one business day
following delivery by the Pre-petition Secured Party of a Carve-Out
Trigger Notice to the extent provided for in the Budget; and
* allowed professional fees up to an aggregate amount of $35,000
which is incurred after delivery by the Pre-petition Secured Party
of the Carve-Out Trigger Notice, to the extent allowed by the
Court.
ESW Holdings, as Pre-petition Secured Party and DIP Lender, shall
have the right to credit bid the full amount of the Pre-petition
Secured Obligations and the DIP Obligations in connection with any
sale of all or any portion of the Debtor's assets.
A copy of the order is available for free at https://bit.ly/2T9upB8
from Donlin Recano, claims agent.
About Adara Enterprises
Adara Enterprises Corp. operates as an asset management business.
Currently, the Debtor's primary asset is quantitative trading
software, which was originally developed at significant expense
over the course of 10-15 years by Clinton Group, Inc., and has been
used to assist in trades of more than $50 billion by Clinton and
its former licensees.
Adara Enterprises filed a Chapter 11 petition (Bankr. D. Del. Case
No. 21-10736) on April 22, 2021. LOEB & LOEB LLP and GELLERT SCALI
BUSENKELL & BROWN, LLC, serve as counsel to the Debtor. The Debtor
tapped DONLIN RECANO & CO, Inc., as claims and noticing agent.
ADVANCED CONTAINER: Incurs $297K Net Loss in First Quarter
----------------------------------------------------------
Advanced Container Technologies, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $296,973 on $1.87 million of sales for the three months
ended March 31, 2021, compared to a net loss of $333,392 on
$556,129 of sales for the three months ended March 31, 2020.
As of March 31, 2021, the Company had $4.29 million in total
assets, $1.81 million in total liabilities, and $2.47 million in
total stockholders' equity.
As of March 31, 2021, the Company had $447,824 in cash and accounts
receivable of $201,624. As of March 31, 2021 and Dec. 31, 2020,
the Company had negative working capital of $651,986 and
$1,208,780, respectively. As of March 31, 2021, the Company had no
commitments for capital expenditures. As of that date, the Company
had inventory of approximately 84,000 Medtainer products,
approximately 205,000 units of other products and no inventory of
GrowPods and related products.
On May 4, 2020, the Company made a note in favor of Customers Bank
in the principal amount of $137,690 pursuant to the terms of the
Coronavirus Aid, Relief, and Economic Security Act and pursuant to
all regulations and guidance promulgated or provided by the SBA and
other Federal agencies that are now, or may become, applicable to
the loan. The loan bears interest at the rate of 1% per annum. No
interest or principal will be required during the first 6 months
after the loan amount was disbursed, although interest will
continue to accrue over this deferral period. After the deferral
period and after taking into account any loan forgiveness
applicable to the loan pursuant to the program, as approved by SBA,
any remaining principal and accrued interest will be payable in
substantially equal monthly installments over the remaining
18-month term of the loan, in the amount and according to the
payment schedule provided by lender. The loan will be forgiven if
its proceeds are used for payroll, mortgage interest, rent, and
utilities during the 8-week period beginning on May 4, 2020.
However, the amount of loan forgiveness will be reduced if less
than 75% of the funds is expended for payroll over that period.
The processes relating to loan forgiveness have not yet been
finalized, as the result of which the Company has not applied for
loan forgiveness, but the Company believes that when they are
finalized and forgiveness is applied for, the entire loan will be
forgiven.
In 2020, the Company received $137,690 from the PPP Loan and
$210,000 from the sale of 348,983 shares of Common Stock to two
private investors. In 2021, the Company has received $615,000 from
sales of 485,000 Common Stock to private investors. The proceeds
from these transactions, which total $962,690, are insufficient to
meet the Company's capital needs, inasmuch as it believes that it
will require approximately $1,000,000 in additional funding for the
next 12 months, including approximately $600,000 to repay loans and
interest that are past due, assuming that the Company's operating
loss remains at the same level; however, the Company believes, but
cannot assure, that it will attain an operating profit in 2021.
The Company is seeking extensions of its past-due loans, and if it
is successful in doing so, the amount of such funding will be
reduced, but assurance can be given as to the extent that it will
be successful. The Company plans to fund its activities
principally through the sale of debt or equity securities to
private investors and, if attained, its profits. There is no
assurance that such funding will be available on acceptable terms
or available at all, or that the Company will attain profitability.
If the Company is unable to raise sufficient funds when required
or on acceptable terms, it may have to reduce significantly, or
discontinue, its operations. To the extent that funds are raised
by issuing equity securities or securities that are convertible
into the Company's equity securities, its stockholders may
experience significant dilution.
"While the Company expects that the entire Cares Loan will be
forgiven, it does not believe that such forgiveness will materially
affect its need for capital," Advanced Container said.
"The Company intends to devote its manpower and capital resources
to increasing revenues, while working to reduce the cost of goods
sold and operating expenses. Doing so depends on the successful
execution of its operating plan, which includes increasing sales of
existing products, introducing additional products and services,
controlling cost of goods sold and operation expenses, negotiating
extensions of existing loans and raising either debt or equity
financing," Advanced Container further said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1096950/000172186821000325/f2sactx10q050921.htm
About Advanced Container
Corona, Calif.-based Advanced Container Technologies, Inc.
--www.advancedcontainertechnologies.com -- markets and sells two
principal products: (i) GrowPods, which are specially modified
insulated shipping containers manufactured by GP Solutions, Inc.,
in which plants, herbs and spices may be grown hydroponically in a
controlled environment and (ii) Medtainers, which may be used to
store pharmaceuticals, herbs, teas and other solids or liquids and
can grind solids and shred herbs.
Advanced Container reported a net loss of $579,031 for the year
ended Dec. 31, 2020, compared to a net loss of $1.41 million for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$4.33 million in total assets, $2.44 million in total liabilities,
and $1.89 million in total stockholders' equity.
Irvine, California-based Haskell & White LLP, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated April 15, 2021, citing that the Company has a working capital
deficit, continued operating losses since inception, and has notes
payable that are currently in default. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
AUTOMOTORES GILDEMEISTER: Taps Spencer Stuart as Consultant
-----------------------------------------------------------
Automotores Gildemeister SpA received approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Spencer Stuart as its executive recruiting consultant.
Automotores Gildemeister needs the firm's assistance to conduct a
search for a chief executive officer who will serve on the company
following its reorganization. The firm will receive up to $300,000
as compensation and will be reimbursed for work-related expenses.
Aside from the CEO search, Spencer Stuart will also help conduct a
search for an independent director for USA Holdco and will receive
$100,000 for its services, plus reimbursement of expenses. The
firm will be compensated for any additional appointment of
directors.
Spencer Stuart can be reached through:
Janine Ames
Spencer Stuart
677 Washington Boulevard, Suite 901
Stamford, CT 06901
Tel: 230-324-6333
Fax: 203-326-3737
Email: jcames@spencerstuart.com
About Automotores Gildemeister
Headquartered in Santiago, Chile, Automotores Gildemeister SpA is
one of the largest car importers and distributors in Chile and Peru
operating a network of company-owned and franchised vehicle
dealerships. Its principal car brand is Hyundai, for which it is
the sole importer in both of its markets. For the last 12 months
ended June 30, 2020, AG reported consolidated net revenues of $770
million, of which 95.2% correspond to sales in Chile and Peru, its
key markets.
Automotores Gildemeister SpA and its affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Case No. 21-10685) in New York on April
12, 2021. The Hon. Lisa G Beckerman is the case judge. Automotores
was estimated to have $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel; Cariola, Dez, Prez-Cotapos and Bruzzone &
Gonzlez Abogados as special Chilean counsel; Rothschild & Co US
Inc. and Asesorias Financieras Rp Spa as investment bankers; and
FTI Consulting Canada ULC as financial advisor. Prime Clerk, LLC
is the claims and noticing agent and administrative advisor.
AYTU BIOPHARMA: Stockholders Elect Six Directors
------------------------------------------------
The 2021 annual meeting of stockholders for Aytu BioPharma, Inc.
was held on May 21, 2021, at which the stockholders:
(1) elected Joshua R. Disbrow, Gary V. Cantrell, Carl C.
Dockery,
John A. Donofrio, Jr., Michael E. Macaluso, and Steve Boyd
as members of the Company's board of directors; and
(2) ratified the appointment of Plante & Moran, PLLC as the
Company's independent registered public accounting firm for
the fiscal year ending June 30, 2021.
On May 17, 2021, Beth Hecht and Gerald McLaughlin resigned as
members of the board of directors of the Company based on a
disagreement with the Company regarding governance matters related
to the Company's April 16, 2021 equity grants. Beth Hecht and
Gerald McLaughlin did not serve on any committees of the Company's
board of directors. The Company and its board of directors
acknowledge receipt of the Resignation Letter and respectfully
disagree that the equity grants raise any governance issues.
About Aytu BioPharma
Englewood, Colorado-based Aytu BioPharma, Inc., formerly known as
Aytu BioScience, Inc. -- http://www.aytubio.com-- is a
commercial-stage specialty pharmaceutical company focused on
commercializing novel products that address significant patient
needs. The company currently markets a portfolio of prescription
products addressing large primary care and pediatric markets. The
primary care portfolio includes (i) Natesto, an FDA-approved nasal
formulation of testosterone for men with hypogonadism, (ii)
ZolpiMist, an FDA-approved oral spray prescription sleep aid, and
(iii) Tuzistra XR, an FDA-approved 12-hour codeine-based
antitussive syrup.
Aytu BioPharma reported a net loss of $13.62 million for the year
ended June 30, 2020, compared to a net loss of $27.13 million for
the year ended June 30, 2019. As of Dec. 31, 2020, the Company had
$166.74 million in total assets, $54.05 million in total
liabilities, and $112.69 million in total stockholders' equity.
B & S DEVELOPMENT: Amos Financial Seeks to Bar Cash Collateral Use
------------------------------------------------------------------
Amos Financial, LLC asked the Bankruptcy Court to prohibit B & S
Development, Inc. from using cash collateral consisting of rent
income generated from certain of the Debtor's assets.
Amos Financial is a successor-in-interest to Iberia Bank and
asserts a claim against the Debtor for $260,968 on account of a
promissory note Iberia Bank assigned to Amos Financial before the
Petition Date. The note is secured by a deed of trust on certain
of the Debtor's real property in Cordova and Memphis, Tennessee.
and continues to accrue interest at the 17% default rate.
Moreover, Amos Financial asserts a right to reimbursement for fees
and expenses incurred in connection with the loan.
Amos Financial said the Debtor continues to collect and use the
rent on the subject properties without Amos Financial's consent.
Accordingly, Amos asked the Court to prohibit the Debtor from using
its cash collateral.
A copy of the motion is available for free at
https://bit.ly/3hOPziy from PacerMonitor.com.
Hearing on the request is set for June 15, 2021 at 11 a.m., by
telephone or video conference. Objections are due by June 8.
Amos Financial, LLC is represented by:
Steven N. Douglass, Esq.
HARRIS SHELTON HANOVER WALSH, PLLC
40 South Main, Suite 2210
Memphis, TN 38103
Telephone: (901) 525-1455
Email: sdouglass@harrisshelton.com
About B & S Development
B & S Development, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tenn. Case
No.21-20894) on March 18, 2021, listing $500,001 to $1 million in
assets and $100,001 to $500,000 in liabilities. Judge M. Ruthie
Hagan oversees the case. Vanecia Belser Kimbrow, Esq., at the Law
Office Of Vanecia Belser Kimbrow represents the Debtor as legal
counsel.
BAINBRIDGE UINTA: Slated to Seek Plan Confirmation on June 25
-------------------------------------------------------------
Judge Mark X. Mullin entered an order conditionally approving the
Disclosure Statement to the Chapter 11 Plan of Bainbridge Uinta,
LLC.
A combined hearing on the Disclosure Statement and Plan
confirmation will be held on June 25, 2021, at 9:30 a.m.,
prevailing Central Time. Written objections must be received no
later than 5 p.m., prevailing Central Time, on June 23, 2021.
Judge Mullin has set June 14, 2021, at 5 p.m., prevailing Central
Time, as the Supplemental Administrative Claims Bar Date and June
24, 2021, as the Voting Report Filing Deadline.
A copy of the order is available for free at https://bit.ly/3hTFpwN
from PacerMonitor.com.
About Bainbridge Uinta
Bainbridge Uinta, LLC, develops and operates fields to extract
crude oil and natural gas.
Bainbridge Uinta sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Tex. Case No. 20-42794) on Sept. 1,
2020. In the petition signed by CEO Paul D. Ching, the Debtor was
estimated to have assets of between $50 million and $100 million
and liabilities of between $50 million and $100 million. The cases
are assigned to Judge Mark X. Mullin. Joseph M. Coleman, Esq. of
Kane Russell Coleman Logan PC serves as counsel to the Debtors.
Oak Hills Securities, Inc., is tapped as financial advisor to the
Debtors.
BIOSTAGE INC: Incurs $874K Net Loss in First Quarter
----------------------------------------------------
Biostage, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $874,000
on zero revenue for the three months ended March 31, 2021, compared
to a net loss of $2 million on zero revenue for the three months
ended March 31, 2020.
The $1.1 million quarter-over-quarter decrease in net loss was due
primarily to a $0.2 million decrease in research and development
costs, a $0.7 million decrease in general and administrative
expenses, a $0.1 million decrease in expense due to the change in
the fair value of the Company's warrant liability and an increase
of $0.1 million grant income for qualified expenditures from its
SBIR grant.
As of March 31, 2021, the Company had operating cash on-hand of
$0.5 million. The Company used net cash in operations of $0.6
million during the quarter ended March 31, 2021.
The Company expects that its operating cash on-hand as of March 31,
2021 of $0.5 million along with cash proceeds of approximately $0.3
million received in May of 2021 from existing investors, will
enable the Company to fund its operating expenses and capital
expenditure requirements into the third quarter of 2021.
As of March 31, 2021, the Company had $1.25 million in total
assets, $875,000 in total liabilities, and $381,000 in total
stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1563665/000110465921071224/tm2111640d1_10q.htm
About Biostage
Holliston, Massachusetts-based Biostage, Inc. -- www.biostage.com
-- is a biotechnology company developing bioengineered organ
implants based on the Company's novel Cellframe and Cellspan
technology. The Company's technology is comprised of a
biocompatible scaffold that is seeded with the recipient's own
cells. The Company believes that this technology may prove to be
effective for treating patients across a number of life-threatening
medical indications who currently have unmet medical needs. The
Company is currently developing its technology to treat
life-threatening conditions of the esophagus, bronchus or trachea
with the objective of dramatically improving the treatment paradigm
for those patients. Since inception, the Company has devoted
substantially all of its efforts to business planning, research and
development, recruiting management and technical staff, and
acquiring operating assets.
Biostage reported a net loss of $4.86 million for the year ended
Dec. 31, 2020, compared to a net loss of $8.33 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $2.07
million in total assets, $951,000 in total liabilities, and $1.12
million in total stockholders' equity.
Boston, Massachusetts-based RSM US LLP, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
April 13, 2021, citing that the Company has suffered recurring
losses from operations, has an accumulated deficit, uses cash flows
in operations, and will require additional financing to continue to
fund operations. This raises substantial doubt about the Company's
ability to continue as a going concern.
BOSTON DONUTS: Wins Cash Collateral Access Thru July 23
-------------------------------------------------------
Judge Christopher J. Panos authorized Boston Donuts, Inc. and its
debtor-affiliates to continue using cash collateral through the
earlier of July 23, 2021, or the entry of a further Court order.
Boston Donut's budget provided for total cost of goods, as
follows:
$38,454 for May 2021;
$39,223 for June 2021;
$40,008 for July 2021;
$40,808 for August 2021; and
$41,624 for September 2021.
Boston Donut's budget provided for total administrative expenses,
as follows:
$13,585 for May 2021;
$13,634 for June 2021;
$13,685 for July 2021;
$13,737 for August 2021; and
$13,790 for September 2021.
Hometown Bank, Quickstone Capital, and the Massachusetts Department
of Revenue (MDOR) are granted a continuing post-petition
replacement lien and security interest in all post-petition
property of the estate of the same type against which they held
validly perfected liens and security interest as of the Petition
Date.
A continued telephonic hearing on the Debtors' use of cash
collateral will be held on July 22, 2021 at 10:30 a.m. Objections
are due by July 20, 2021 at 4:30 p.m.
A copy of the order, including the budget of each debtor-affiliate,
is available for free at https://bit.ly/3vihM4S from
PacerMonitor.com.
About Boston Donuts, Inc.
Boston Donuts, Inc., generates revenues by manufacturing and
selling donuts. The Company sought Chapter 11 protection (Bankr.
D. Mass. Lead Case No. 19-41141) on July 11, 2019, along with its
debtor-affiliates Costa Cafe Inc., Maple Avenue Donuts, Inc., W&E
Trust, Inc., and EOR Holding Corporation. Their cases are jointly
administered.
Judge Christopher J. Panos oversees the case.
James P. Ehrhard, Esq., at Ehrhard & Associates, P.C., represents
the Debtors as counsel.
BOUCHARD TRANSPORTATION: Owner Pivots to Chapter 11 Asset Sale
--------------------------------------------------------------
Law360 reports that the owner of a fleet of oil barges submitted
proposed bidding procedures in Texas bankruptcy court late Tuesday,
May 25, 2021, saying that a sale of its assets was the best way to
maximize the value of the estate after the company took steps to
return the fleet to operability.
In its motion, Bouchard Transportation Co. said that it filed for
bankruptcy due to serious issues with the viability of its fleet of
49 vessels and has since significantly improved the status of its
ships, to the point it has garnered interest from potential bidders
to acquire the Debtor's assets.
The substantial interest in the Debtors' assets exhibited by a
variety of market players thus far has led the Debtors to determine
that establishing a court-approved schedule for their marketing
process culminating in a potential Auction governed by
court-approved Bidding Procedures will generate significant value
for the Debtors' estates and build on the marketing efforts that
have already been launched.
The Debtors propose these dates:
* Bid Deadline: July 2, 2021, at 5:00 p.m., prevailing Central
Time, as the deadline by which all binding bids must be actually
received by the Debtors pursuant to the Bidding Procedures; and
* Auction: July 7, 2021, at 10:00 a.m., prevailing Central Time,
as the time and date on which the Debtors will conduct the first
day of the Auction, if one is needed, and July 8, 2021, at 10:00
a.m., prevailing Central Time, as the time and date on which the
Debtors will conduct the second day of the auction, if it is
needed;
* Sale Hearing: July 12, 2021, or as soon thereafter as the
Court's calendar permits, as the date for a hearing to approve one
or more sales of the Assets.
About Bouchard Transportation
Founded in 1918, Bouchard Transportation Co., Inc.'s first cargo
was a shipment of coal. By 1931, Bouchard acquired its first oil
barge. Over the past 100 years and five generations later, Bouchard
has expanded its fleet, which now consists of 25 barges and 26 tugs
of various sizes, capacities and capabilities, with services
operating in the United States, Canada and the Caribbean.
Bouchard and certain of its affiliates sought Chapter 11 protection
(Bankr. S.D. Texas Lead Case No. 20-34682) on Sept. 28, 2020. At
the time of the filing, the Debtors had estimated assets of between
$500 million and $1 billion and liabilities of between $100 million
and $500 million.
Judge David R. Jones oversees the cases.
The Debtors tapped Kirkland & Ellis LLP, Kirkland & Ellis
International LLP and Jackson Walker LLP as their legal counsel;
Portage Point Partners, LLC as restructuring advisor; Jefferies LLC
as investment banker; and Berkeley Research Group, LLC as financial
advisor. Stretto is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' cases. The committee tapped
Ropes & Gray LLP as bankruptcy counsel, Clyde & Co US LLP as
maritime counsel, and Berkeley Research Group LLC as financial
advisor.
BULLDOGGE FITNESS: Wins Cash Collateral Access Thru June 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois has
authorized Bulldogge Fitness Group, Inc. to use the cash collateral
in which Wells Fargo Bank, N.A. asserts an interest on an interim
basis through June 30, 2021, in accordance with the budget, with a
10% variance.
As of the Petition Date, the Debtor owes Wells Fargo Bank, N.A.,
not less than $1,219,414.31, pursuant to certain loan agreements,
promissory notes, security agreements, and other documents
evidencing the Indebtedness executed by the Debtor in favor of
Wells Fargo Bank, N.A. Wells Fargo Bank, N.A., further asserts that
pursuant to the Loan Documents, it has a lien on all of the assets
of the Debtor together with the proceeds thereon, some of which
constitutes "cash collateral" within the meaning of section 363(a)
of the Bankruptcy Code.
As of the Petition Date, the Secured Lender held a perfected lien
on substantially all of the Debtor's pre-petition assets, including
but not limited to, cash on hand, inventory, accounts, accounts
receivable, and general intangibles, together with the proceeds
thereof.
In return for the Debtor's continued interim use of Cash
Collateral, and to protect Wells Fargo against any diminution in
value of the collateral the Prepetition Secured Lender will receive
an administrative expense claim pursuant to Section 507(b) of the
Bankruptcy Code equivalent to any diminution in the value of its
cash collateral after the petition date.
The Prepetition Secured Lender and any other subordinate lien
holders are granted replacement liens, attaching to the Collateral
and any dent-in-possession bank account, but only to the extent of
their prepetition liens and only to the extent of priority that
existed on the date of filing. The order is without prejudice to
any future avoidance of the subordinate liens.
The liens granted are valid, perfected, and enforceable without any
further action by the Debtor and/or the Prepetition Secured Lender
and need not be separately documents.
A further hearing on the use of cash collateral is scheduled for
June 28 at 2:00 p.m.
A copy of the order and the Debtor's June operating budget is
available for free at https://bit.ly/2RMNUPC from
PacerMonitor.com.
The Debtor projects total estimated income of $75,432.84 and total
expenses of $102,497.60 for the month of June.
About Bulldogge Fitness Group, Inc.
Bulldogge Fitness Group, Inc. operates a gymnasium and fitness
center in Downers Grove, Illinois, which is open to the general
public. Bulldogge has been adversely affected by the COVID-19
crisis and the disruption of business due to numerous State imposed
restriction on its operations.
Bulldogge sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 21-03336) on March 15, 2021. In the
petition signed by Scott Schroeder, president, the Debtor disclosed
up to $50,000 in assets and up to $10 million in liabilities.
Judge Timothy A. Barnes oversees the case.
Richard G. Larsen, Esq., at SPRINGERLARSENGREENE, LLC is the
Debtor's counsel.
BURN FITNESS: Gets Approval to Hire Maddin Hauser as Counsel
------------------------------------------------------------
Burn Fitness, LLC and its affiliates received approval from the
U.S. Bankruptcy Court for the Eastern District of Michigan to hire
Maddin, Hauser, Roth & Heller, P.C. as their legal counsel.
The firm's services include:
a. advising with respect to the Debtors' rights, powers and
duties in the continued management and operation of their financial
affairs and property;
b. assisting in the preparation of bankruptcy schedules and
statements of financial affairs;
c. assisting in the preparation of financial statements,
balance sheets and business plans;
d. attending meetings and negotiating with representatives of
creditors and other parties in interest;
e. advising and consulting with the Debtors regarding the
conduct of their Chapter 11 cases;
f. advising on matters relating to the evaluation of unexpired
leases and executory contracts;
g. taking all necessary action to protect and preserve the
Debtors' estates;
h. assisting in selling assets and drafting related
agreements;
i. assisting in formulating and prosecuting a plan of
reorganization and disclosure statement and taking necessary action
to obtain confirmation of the plan;
j, appearing before the court; and
k. performing all other necessary legal services.
Maddin will be paid at these rates:
Earle I. Erman $485 per hour
Julie Beth Teicher $435 per hour
David H. Freedman $410 per hour
David M. Eisenberg $285 per hour
As disclosed in court filings, Maddin is a disinterested person
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Julie Beth Teicher, Esq.
Maddin, Hauser, Roth & Heller, P.C.
28400 Northwestern Hwy., 2nd Floor
Southfield, MI 48034
Tel: 248-351-7059
Email: jteicher@maddinhauser.com
About Burn Fitness
Burn Fitness, LLC operates health and fitness centers in three
separate locations in Michigan -- Rochester, Clawson and and
Livonia. It 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. Lead 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. Maddin, Hauser, Roth & Heller,
P.C. is the Debtor's legal counsel.
CALIFORNIA-NEVADA: Wins Cash Collateral Access Thru Aug. 6
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Oakland Division, has authorized California-Nevada Methodist Homes
to use cash collateral on an interim basis through August 6, 2021.
The Court says cash collateral may only be used to fund the types
and corresponding amounts of itemized expenditures contained in the
budget and any budget subsequently agreed to by the Debtor,
Wilmington, Cal-Mortgage, and the Official Committee of Unsecured
Creditors appointed in the case; provided however that the Debtor
may use cash collateral in excess of the aggregate operating
disbursements so long as the percentage of deviation of the
aggregated expenses during a 4-week measuring period does not
exceed 10%.
As adequate protection for the Debtor's use of cash collateral,
Wilmington and Cal-Mortgage are granted a continuing replacement
security interest in, and lien, which will have the same priority,
validity, force, extent, status of perfection, and effect as the
prepetition liens held by Wilmington and Cal-Mortgage that they
replace , effective as of the Petition Date without the necessity
of Wilmington or Cal-Mortgage taking any further action, upon the
right, title, and interest in theproperty of the Debtor.
The Prepetition Liens and Adequate Protection Liens will be subject
to allowed fees and disbursements which accrue during the period
April 23, 2021 through August 6, 2021, in an amount not to exceed
$175,000 in the aggregate.
The Adequate Protection Liens will also be subject to (a) statutory
fees payable to the U.S. Trustee pursuant to 28 U.S.C. section
1930(a)(6), together with the statutory rate of interest, and any
fees payable to the Clerk of the Bankruptcy Court, (b) the allowed
professional fees and disbursements of a Chapter 7 trustee, if any,
pursuant to Bankruptcy Code section 327, and (c) the fees of a
Chapter 7 trustee, if any, that are allowed pursuant to Bankruptcy
Code 326 and will otherwise be junior only to any valid, perfected,
unavoidable liens or security interests that are superior to the
Prepetition Liens in existence as of the Petition Date, or any
valid and unavoidable liens or security interests that are senior
in priority to the Prepetition Liens that are perfected subsequent
to the Petition Date as permitted by section 546(b) of the
Bankruptcy Code.
The Debtor and the Committee will provide to counsels of record to
Wilmington and Cal-Mortgage and to each other, on or before the
30th day of each month (commencing in May 2021), invoices
documenting all fees and expenses incurred by the Debtor's and the
Committee's professionals during the prior month or as soon
thereafter as invoices are available; provided however, that if the
Debtor does not timely submit such invoices that will not change
the terms of the Carve Out.
As further adequate protection of the interests of Wilmington and
Cal-Mortgage in the Collateral, Wilmington and Cal-Mortgage are
granted, an allowed superpriority administrative expense claim in
the Chapter 11 Case.
The Adequate Protection Superpriority Claims will have priority
over all administrative expense claims and unsecured claims against
the Debtor or its estate, now existing or hereafter arising, of any
kind or nature whatsoever, as and to the extent provided by
Bankruptcy Code section.
As further adequate protection to the interests of Wilmington in
the Collateral against any diminution in value of such interest in
the Collateral, the Debtor is authorized to pay (a) 100% of the
reasonable and documented invoiced out-of-pocket fees, costs, and
expenses of Wilmington incurred post-petition and (b) 50% of the
legal fees and expenses incurred by McDermott Will and Emery LLP
in connection with the Chapter 11 Case, with the remainder of the
legal fees and expenses incurred by McDermott to be added to the
secured indebtedness and obligations owed to Wilmington as may be
allowed under applicable law; provided, however, that Wilmington
and McDermott will, disgorge any proceeds they receive for fees and
expenses if a final, non-appealable order or judgment is entered in
connection with a Challenge rendering the Prepetition Liens, the
Prepetition Secured Credit Documents, or the Prepetition Secured
Obligations invalid, unperfected, or unenforceable, or adjudicating
on any other basis that Wilmington is not entitled to the payment
or reimbursement of its legal fees and expenses from the estate in
the case, in whole or part.
A copy of the order and the Debtor's 15-week cash flow budget is
available for free at https://bit.ly/3i2rwNb from Stretto LLC, the
claims agent.
The Debtor projects total disbursements of $6,459 and total
receipts of $5,365 for the period.
About California-Nevada Methodist Homes
California-Nevada Methodist Homes -- http://www.cnmh.org/-- is a
California non-profit public benefit corporation that operates
nursing homes and long-term care facilities. It presently operates
two continuing care retirement communities, one known as Lake Park,
in Oakland Calif., and the other, known as Forest Hill, in Pacific
Grove, Calif.
On March 16, 2021, California-Nevada Methodist Homes filed a
Chapter 11 petition (Bankr. N.D. Calif. Case No. 21-40363). The
Debtor estimated assets of $10 million to $50 million and
liabilities of $50 million to $100 million.
The Hon. Charles Novack is the case judge.
The Debtor tapped Hanson Bridgett LLP, led by Neal L. Wolf, Esq.,
as legal counsel; and Silverman Consulting and B.C. Ziegler and
Company as financial advisors. Stretto LLC is the claims agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Chapter 11 case of
California-Nevada Methodist Homes. Perkins Coie, LLP serves as the
committee's legal counsel.
CAREVIEW COMMUNICATIONS: Incurs $2.5M Net Loss in First Quarter
---------------------------------------------------------------
CareView Communications, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $2.49 million on $2.32 million of net revenues for the
three months ended March 31, 2021, compared to a net loss of $2.94
million on $1.71 million of net revenues for the three months ended
March 31, 2020.
As of March 31, 2021, the Company had $5.15 million in total
assets, $110.84 million in total liabilities, and a total
stockholders' deficit of $105.69 million.
CareView said, "The Company is subject to risks like those of
healthcare technology companies whereby revenues are generated
based on both on a sales-based and subscription-based business
model such as dependence on key individuals, uncertainty of product
development, generation of revenues, positive cash flow, dependence
on outside sources of capital, risks associated with research,
development, and successful testing of its products, successful
protection of intellectual property, ability to maintain and grow
its customer base, and susceptibility to infringement on the
proprietary rights of others. The attainment of profitable
operations is dependent on future events, including obtaining
adequate financing to fulfill the Company's growth and operating
activities and generating a level of revenues adequate to support
the Company's cost structure.
"The Company has experienced net losses and significant cash
outflows from cash used in operating activities over the past
years. As of and for the three months ended March 31, 2021, the
Company had an accumulated deficit of approximately $190,300,000,
income from operations of approximately $226,000, net cash provided
by operating activities of $47,000, and an ending cash balance of
$355,439.
"As of March 31, 2021 and 2020, the Company had cash and a working
capital deficit of approximately $27,600,000 consisting primarily
of notes payables. Management has evaluated the significance of
the conditions described above in relation to the Company's ability
to meet its obligations and concluded that, without additional
funding, the Company will not have sufficient funds to meet its
obligations within one year from the date the condensed
consolidated financial statements were issued. While management
will look to continue funding operations by increased sales volumes
and raising additional capital from sources such as sales of its
debt or equity securities or loans to meet operating cash
requirements, there is no assurance that management's plans will be
successful.
"As of the date of this quarterly filing, the Company modified its
2011 HealthCor Partners Fund, LP and HealthCor Hybrid Offshore
Master Fund, LP senior secured notes currently classified as
long-term liabilities that were due April 20, 2021, for a total of
approximately $46,000,000 and 2012 HealthCor Partners Fund, LP and
HealthCor Hybrid Offshore Master Fund, LP senior secured notes
classified as long-term liabilities due January 31, 2022, for a
total of approximately $10,600,000 to extend the due dates to April
20, 2022.
"Management continues to monitor the immediate and future cash
flows needs of the company in a variety of ways which include
forecasted net cash flows from operations, capital expenditure
control, new inventory orders, debt modifications, increases sales
outreach, streamlining and controlling general and administrative
costs, competitive industry pricing, sale of equities, debt
conversions, new product or services offerings, and new business
partnerships.
"The Company's net losses, cash outflows, and working capital
deficit raise substantial doubt about the Company's ability to
continue as a going concern through May 24, 2022. The accompanying
condensed consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. This
basis of accounting contemplates the recovery of the Company's
assets and the satisfaction of liabilities in the normal course of
business. A successful transition to attaining profitable
operations is dependent upon achieving a level of positive cash
flows adequate to support the Company's cost structure."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1377149/000138713121006044/crvw-10q_033121.htm
About CareView Communications
CareView Communications, Inc. -- http://www.care-view.com-- is a
provider of products and on-demand application services for the
healthcare industry, specializing in bedside video monitoring,
software tools to improve hospital communications and operations,
and patient education and entertainment packages. Its proprietary,
high-speed data network system is the next generation of patient
care monitoring that allows real-time bedside and point-of-care
video monitoring designed to improve patient safety and overall
hospital costs. The entertainment packages and patient education
enhance the patient's quality of stay. CareView is dedicated to
working with all types of hospitals, nursing homes, adult living
centers and selected outpatient care facilities domestically and
internationally. The Company's corporate offices are located at
405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067.
Careview reported a net loss of $11.68 million for the year ended
Dec. 31, 2020, compared to a net loss of $14.14 million for the
year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$5.50 million in total assets, $108.76 million in total
liabilities, and a total stockholders' deficit of $103.26 million.
BDO USA, LLP, in Dallas, Texas, the Company's auditor since 2010,
issued a "going concern" qualification in its report dated April 8,
2021, citing that the Company has suffered recurring losses from
operations and has accumulated losses since inception that raise
substantial doubt about its ability to continue as a going concern.
CD THOMAS FARMS: Seeks to Hire Wayne E. Griffin as Legal Counsel
----------------------------------------------------------------
CD Thomas Farms, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nebraska to hire Wayne E. Griffin Law Office to
handle its Chapter 11 case.
The firm will bill $200 per hour for its services.
As disclosed in court filings, Wayne E. Griffin Law Office is a
disinterested person within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Wayne E Griffin, Esq.
Allen Fugate, Esq.
Wayne E. Griffin Law Office
406 N Dewey St.
North Platte, NE 69101
Phone: +1 308-534-3526
Fax: +1 (308) 532-8649
Email: wGriffinLaw@hotmail.com
About CD Thomas Farms
Alliance, Neb.-based CD Thomas Farms, LLC filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D. Neb. Case No. 21-40520) on May 7, 2021. Chad W. Thomas, managing
member, signed the petition. In the petition, the Debtor disclosed
$171,898 in assets and $2,661,311 in liabilities. Judge Thomas L
Saladino presides over the case. Wayne E. Griffin Law Office
serves as the Debtor's legal counsel.
CLINIGENCE HOLDINGS: Incurs $4.2 Million Net Loss in First Quarter
------------------------------------------------------------------
Clinigence Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $4.23 million on $2.01 million of sales for the three months
ended March 31, 2021, compared to a net loss of $1.12 million on
$465,630 of sales for the three months ended March 31, 2020.
As of March 31, 2021, the Company had $75.93 million in total
assets, $9.67 million in total liabilities, and $66.26 million in
total stockholders' equity.
The Company had cash of $3,741,458 for the three months ended March
31, 2021 compared to $26,931 as of Dec. 31, 2020, an increase of
$3,687,527 or 99%.
"Historically, we have had a working capital deficiency and we have
operated at a net loss since inception. With the acquisition of
AHP we generate cash primarily from capitation contracts. In order
to execute our business plans, including the expansion of
operations, our primary capital requirements in 2021 are likely to
rise. It is not possible to quantify those costs at this point in
time, in that they depend on AHP, AHAs and Clinigence Health's
business opportunities and the state of the overall economy. We
anticipate raising capital in the private markets to cover any such
costs, though there can be no guaranty we will be able to do so on
terms we deem to be acceptable. We do not have any plans at this
point in time to obtain a line of credit or other loan facility
from a commercial bank. We believe we have sufficient liquidity to
fund our operations through at least the next 12 months,"
Clinigence Holdings said.
Cash used in operating activities for the three months ended March
31, 2021, was $567,063, as compared to cash used in operating
activities of $872,992 for the three months ended March 31, 2020.
The decrease in cash used in operating activities was primarily
driven by an increase in revenue of $1.5 million for the three
months ended March 31, 2021 as compared to the same period in the
prior year, offset by $3.9 million in stock-based compensation
expense.
Cash provided by investing activities during the three months ended
March 31, 2021, was $3.9 million, primarily due to cash acquired in
the acquisition of AHP, compared to cash used in investing
activities of $2,656 from discontinued investing activities, during
the three months ended March 31, 2020.
Cash provided by financing activities for the three months ending
March 31, 2021 was $393,323 compared to cash used in investing
activities of $22,047 for the three months ending March 31, 2020
and consisted of proceeds from notes payable of $410,088 offset by
payments on notes payable of $16,765.
"We expect that working capital requirements will continue to be
funded through a combination of our existing funds and further
issuances of securities. Our working capital requirements are
expected to increase in line with the growth of our business.
Existing working capital, further advances and debt instruments,
and anticipated cash flow are anticipated to be adequate to fund
our operations over the next twelve months. We have no lines of
credit or other bank financing arrangements. Generally, we have
financed operations to date through the proceeds of the private
placement of equity and debt instruments. In connection with our
business plan, management anticipates additional increases in
operating expenses and capital expenditures relating to: (i)
developmental expenses associated with a start-up business and (ii)
marketing expenses. We intend to finance these expenses with
further issuances of securities, and debt issuances. Thereafter, we
expect we will need to raise additional capital and generate
revenues to meet long-term operating requirements. Additional
issuances of equity or convertible debt securities will result in
dilution to our current shareholders. Further, such securities
might have rights, preferences or privileges senior to our common
stock that may have a greater dilutive impact to our current
shareholders. Additional financing may not be available upon
acceptable terms, or at all. If adequate funds are not available
or are not available on acceptable terms, we may not be able to
take advantage of prospective new business endeavors or
opportunities, which could significantly and materially restrict
our business operations," the Company further said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1479681/000160706221000142/clnh033121form10q.htm
About Clinigence Holdings
Clinigence Holdings, a fully reporting, publicly-held company --
http://www.clinigencehealth.com-- is a healthcare information
technology company providing an advanced, cloud-based platform that
enables healthcare organizations to provide value-based care and
population health management. The Clinigence platform aggregates
clinical and claims data across multiple settings, information
systems and sources to create a holistic view of each patient and
provider and virtually unlimited insights into patient
populations.
Clinigence reported a net loss of $5.65 million in 2020 following a
net loss of $7.12 million in 2019.
New York, NY-based Marcum LLP, the Company's auditor since 2020,
issued a "going concern" qualification in its report dated March
31, 2021, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
CLINIGENCE HOLDINGS: Signs LOI to Acquire ProCare Health
--------------------------------------------------------
Clinigence Holdings, Inc. has signed a binding letter of intent to
acquire ProCare Health, Inc.
Based in Garden Grove, California and founded in 2011, ProCare is a
management services organization ("MSO") that currently provides
services for four independent physician associations ("IPAs") in
Southern and Northern California. MSOs are business organizations
that provide the necessary administrative infrastructure and
technology for risk-bearing IPAs to function successfully in their
relationships with contracted payors and regulatory agencies. MSOs
enable physician organizations to succeed in the assumption of
financial and population risk, to improve the organization's
performance in care delivery and to provide actionable data
analytics. ProCare provides claims administration, compliance,
credentialing, quality management, utilization management,
contracting, provider relations, member services, care management,
coding optimization and financial reporting services, among other
services.
Under the terms of the LOI, Clinigence will issue 759,000
newly-issued shares of common stock to the equity holders of
ProCare at closing in exchange for 100% of the outstanding equity
securities of ProCare. Additionally, an earnout structure has been
put in place to reward ProCare with any new MSO contracts in the
future. The transaction is expected to close within the next 4-6
weeks.
"We are excited to announce the proposed acquisition of ProCare
Health," stated Warren Hosseinion, M.D., chairman and chief
executive officer. "By bringing our distinctive MSO, clinical
management and technology solutions together, we expect to improve
the health of our patients, improve utilization metrics and
optimize financial outcomes."
About Clinigence Holdings
Clinigence Holdings, a fully reporting, publicly-held company --
http://www.clinigencehealth.com-- is a healthcare information
technology company providing an advanced, cloud-based platform that
enables healthcare organizations to provide value-based care and
population health management. The Clinigence platform aggregates
clinical and claims data across multiple settings, information
systems and sources to create a holistic view of each patient and
provider and virtually unlimited insights into patient
populations.
Clinigence reported a net loss of $5.65 million in 2020 following a
net loss of $7.12 million in 2019. As of March 31, 2021, the
Company had $75.93 million in total assets, $9.67 million in total
liabilities, and $66.26 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2020,
issued a "going concern" qualification in its report dated March
31, 2021, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
CRED INC: Cannot Block 3rd-Party Damage Suit, Says Investor
-----------------------------------------------------------
Law360 reports that an investment company allegedly swindled out of
millions by third parties with ties to cryptocurrency venture Cred
Inc. has accused its bankruptcy estate's liquidating trustee of
using bully tactics in an effort to block a New York lawsuit.
Attorneys for UpgradeYa Investments LLC said in an objection to an
emergency blocking motion filed by Cred that the Debtor's plan,
confirmed in March, included a "clarification" declaring that there
was no injunction against private, direct creditor lawsuits against
"any person or entity" other than the debtors.
About Cred Inc.
Cred Inc. is a cryptocurrency platform that accepts loans of
cryptocurrency from non-U.S. persons and pays interest on those
loans. Cred -- https://mycred.io -- is a global financial services
platform serving customers in over 100 countries. Cred is a
licensed lender and allows some borrowers to earn a yield on
cryptocurrency pledged as collateral.
Cred Inc. and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 20-12836) on November 7, 2020. Cred was
estimated to have assets of $50 million to $100 million and
liabilities of $100 million to $500 million as of the bankruptcy
filing.
Judge John T. Dorsey oversees the cases. The Debtors tapped Paul
Hastings LLP as their bankruptcy counsel, Cousins Law LLC as local
counsel, and MACCO Restructuring Group, LLC as financial advisor.
Donlin, Recano & Company, Inc. is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on December 3,
2020. The committee tapped McDermott Will & Emery LLLP as counsel
and Dundon Advisers LLC as financial advisor.
Robert Stark is the examiner appointed in the Debtors' cases. Ashby
& Geddes, P.A., and Ankura Consulting Group, LLC serve as the
examiner's legal counsel and financial advisor, respectively.
CRESTWOOD HOSPITALITY: Seeks Cash Collateral Access to Pay Vendors
------------------------------------------------------------------
Crestwood Hospitality LLC asked permission from the Bankruptcy
Court to use cash collateral to pay the pre-petition claims of its
critical vendors comprised of certain vendors for goods and
services, utility providers and governmental agencies that provide
permits and licenses critical to the Debtor's operations and are
therefore necessary to an effective reorganization. These claims
relate to payments in the ordinary course of business and are due
to parties that provide exclusive good and services that are not
readily available from other sources.
The Debtor said the pre-petition checks for many of the critical
vendors failed to clear the Debtor's pre-petition bank accounts due
to the filing of the bankruptcy case. The Debtor owes a total of
$41,900 for pre-petition goods and services essential to its hotel
operation. Accordingly, the Debtor asked the Court to authorize
payment of these amounts to ensure the continued availability of
the necessary goods and services.
A copy of the motion and the list of critical pre-petition payables
(at Exhibit A) is available for free at https://bit.ly/3bOvPrb from
PacerMonitor.com.
About Crestwood Hospitality LLC
Crestwood Hospitality LLC, operates the Holiday Inn Express &
Suites Tucson Mall, an "all suite" hotel built in 2004, pursuant to
a license agreement with Holiday Hospitality Franchising, LLC.
Crestwood filed a Chapter 11 petition (Bankr. D. Ariz. Case No.
21-03091) on April 23, 2021. In the petition signed by Sukhbinder
Khangura, member and vice president, the Debtor estimated between
$1 million and $10 million in assets, and between $10 million and
$50 million in liabilities.
Sacks Tierney P.A., represents the Debtor as counsel.
Judge Brenda Moody Whinery is assigned to the case.
DAVIDZON MEDIA: Wins Cash Collateral Access
-------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York has
authorized Davidzon Media, Inc. and affiliates to use cash
collateral on an interim basis and provide related relief.
The Debtor is authorized to use cash collateral in accordance with
the approved budget, with a 10% variance. The Permitted Variance
will be tested at the end of each week beginning with the end of
the first week of May, 2021, both for the preceding week and
cumulatively from the date of the Interim Order through the end of
the most recently completed week.
As adequate protection and security for the payment of the Adequate
Protection Obligations, Great Elm Capital Corp., the prepetition
secured lender, on account of the Loan Agreement and the
Prepetition Liens, is granted a valid, perfected replacement
security interest in and lien on all of the Prepetition Collateral
, subject and subordinate only to the Carve Out.
The Adequate Protection Obligations will constitute superpriority
claims as provided in section 507(b) of the Bankruptcy Code.
As additional adequate protection, the Debtors will (1) pay Great
Elm $55,000 by wire transfer in immediately available funds within
three business of entry of the Interim Order, and to pay Great Elm
$55,000 by wire transfer in immediately available funds on the
first Tuesday of each month following entry of the Interim Order.
The carve-out means all fees required to be paid to the Clerk of
the Court and to the United States Trustee under applicable law and
in the event that one or more of the Cases converts to chapter 7,
an additional amount of $3,000 for a Chapter 7 Trustee appointed in
such case.
These events constitute Events of Default:
(a) Any Case will be dismissed or converted to a case under
chapter 7 of the Bankruptcy Code, except to the extent Great Elm
consents to such dismissal or conversion;
(b) The Interim Order will be stayed, amended, modified,
reversed, or vacated without the written consent of Great Elm,
which stay is not vacated, or which amendment, modification,
reversal, or vacatur is not stayed within three business days
following the imposition of such stay or the effective date of such
amendment, modification, reversal or vacatur;
(c) Any Prepetition Collateral is sold without the prior
written consent of Great Elm;
(d) Any Debtor will file any application in support of any of
(a) through (c) above;
(e) Any Debtor's filing of a motion to appoint, any other
party's filing of a motion to appoint if such motion is not
resolved within 30 days, or the appointment of, a trustee or
examiner with expanded powers in any Case;
(f) Any Debtor's filing of a motion or other pleading seeking
to grant a lien on the Prepetition Collateral that is equal or
senior to the Prepetition Liens;
(g) The Court's entry of an order granting relief from the
automatic stay to allow for foreclosure on any Prepetition
Collateral with an aggregate book value in excess of $25,000;
(h) Any Debtor's failure to perform, in any respect, any of
the terms, conditions, covenants, or obligations under the Interim
Order.
A further hearing on the Debtors' application to use Cash
Collateral is scheduled for June 30, 2021 at 2 p.m.
A copy of the order is available for free at https://bit.ly/3yGDhhW
from PacerMonitor.com.
About Davidzon Media
Davidzon Media, Inc. filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
21-40308) on Feb. 8, 2021. Grigory Davidzon, president, signed the
petition. At the time of filing, the Debtor disclosed less than
$50,000 in assets and between $1 million and $10 million in
liabilities.
Judge Elizabeth S. Stong oversees the case.
The Law Offices of Alla Kachan, PC serves as the Debtor's counsel.
DECK SUPPLY: Case Summary & 7 Unsecured Creditors
-------------------------------------------------
Debtor: Deck Supply Warehouse, LLC
930 Shiloh Road, Building 1, Suite 1
Windsor, CA 95492
Business Description: Deck Supply Warehouse, LLC is wholesaler of
premium decking materials.
Chapter 11 Petition Date: May 27, 2021
Court: United States Bankruptcy Court
Northern District of California
Case No.: 21-10266
Judge: Hon. Charles Novack
Debtor's Counsel: Brian A. Barboza, Esq.
LAW OFFICES OF BRIAN A BARBOZA
141 Stony Circle, Suite 221
Santa Rosa, CA 95401
Tel: (707) 527-8553
E-mail: bbarboza@barbozaesq.com
Total Assets as of May 26, 2021: $569,116
Total Liabilities as of May 26, 2021: $1,518,068
The petition was signed by Jeanette Leavens, managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/DA7FNTY/Deck_Supply_Warehouse_LLC__canbke-21-10266__0001.0.pdf?mcid=tGE4TAMA
DEMETRIOS ESTIATORIO: Exit Plan OK'd, Cash Collateral Bid Denied
----------------------------------------------------------------
Judge Roberta A. Colton denied as moot the motion seeking to use
cash collateral of The Demetrios Estiatorio, LLC.
The Court on May 21 entered an Order Confirming Chapter 11 Plan of
Reorganization.
As previously reported by the Troubled Company Reporter, the U.S.
Bankruptcy Court for the Middle District of Florida authorized
Demetrios Estiatorio to use cash collateral on an interim basis
through May 13, 2021. The Debtor was authorized to pay: (a)
amounts expressly authorized by the Court, including payments to
the United States Trustee for quarterly fees; (b) the current and
necessary expenses set forth in the budget, plus an amount not to
exceed 10% for each line item; and (c) additional amounts as may be
expressly approved in writing by UCC Lenders as Secured Creditor.
Each Secured Creditor with a security interest in cash collateral
will have a perfected post-petition lien against cash collateral to
the same extent and with the same validity and priority as the
prepetition lien, without the need to file or execute any document
as may otherwise be required under applicable non-bankruptcy law.
The Debtor is also directed to maintain insurance coverage for its
property in accordance with the obligations under the loan and
security documents with the Secured Creditor.
A copy of the order and the Debtor's budget is available for free
at https://bit.ly/3xd9RHz from PacerMonitor.com. The Debtor
projected $41,925 in total sales and $27,131 in total expenses.
DMVH LLC: Case Summary & 2 Unsecured Creditors
----------------------------------------------
Debtor: DMVH LLC
848 N. Rainbow Suite 502
Las Vegas, NV 89107
Business Description: DMVH LLC is the fee simple owner of five
properties located in Las Vegas, Nevada.
Chapter 11 Petition Date: May 27, 2021
Court: United States Bankruptcy Court
District of Nevada
Case No.: 21-12712
Debtor's Counsel: Carrie E. Hurtik, Esq.
HURTIK LAW & ASSOCIATES
6767 W. Tropicana Avenue, Suite 200
Las Vegas, NV 89103
Tel: 702-966-5200
Fax: 702-966-5206
E-mail: churtik@hurtiklaw.com
Total Assets: $1,712,347
Total Liabilities: $820,417
The petition was signed by Nam Pham, member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/EQVYCNI/DMVH_LLC__nvbke-21-12712__0001.0.pdf?mcid=tGE4TAMA
DYNOTEC INDUSTRIES: Wins Interim OK to Use $185,000 Cash
--------------------------------------------------------
Judge Kathleen H. Sanberg authorized DynoTec Industries, Inc. to
use $185,247 in cash collateral on an interim basis to pay expenses
as budgeted.
In consideration thereof, the Debtor may grant adequate protection
to (i) New Market Bank, (ii) Funding Circle and its affiliates,
(iii) the United States Small Business Administration, and (iv) the
Internal Revenue Service during the interim period, in the form of
replacement liens in the cash collateral. The liens shall have the
same dignity, priority and effect as their respective pre-petition
interests.
The Debtor will also pay New Market, Funding Circle and their
affiliates, and the SBA the monthly interest due on the
pre-petition loans the lenders extended to the Debtor. Moreover,
the Debtor will provide that the cash collateral is insured.
A copy of the motion is available for free at
https://bit.ly/3hNqHYg from PacerMonitor.com.
Final hearing on the cash collateral request is on June 23, 2021 at
10:30 a.m. at Courtroom 8 West, Diana E. Murphy United States
Courthouse, 300 South Fourth Street, in Minneapolis, Minnesota.
About DynoTec Industries, Inc.
DynoTec Industries, Inc. was founded in 2007 as a transmission
repair and refurbishing shop in Shakopee, Minnesota. DynoTec's 100%
owner is Timothy Lundquist. Typically, the business does from
between $2,000,000 and $3,000,000 in sales per year. The business
has grown and changed over the years and now primarily caters to
commercial clients.
DynoTec sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Minn. Case No. 21-30803) on May 14, 2021. In the
petition signed by Timothy Lundquist, president, the Debtor
disclosed $1,285,850 in assets and $4,398,498 in liabilities.
Judge Kathleen H. Sanberg oversees the case.
SAPIENTIA LAW GROUP is the Debtor's counsel.
EAGLE HOSPITALITY: Delaware Judge Blasts Chapter 11 Fraud Claims
----------------------------------------------------------------
Law360 reports that a U.S. Bankruptcy Court judge declared
Wednesday, May 26, 2021, he was considering referral of an alleged
$2.4 million federal Paycheck Protection Program fraud to the U.S.
attorney's office, during a blistering ruling on a preliminary
injunction motion aimed at the original sponsors of Eagle
Hospitality.
Judge Christopher S. Sontchi's remark came during arguments on a
bid for an injunction filed by debtors EHT US 1 Inc. as well as
Urban Commons Queensway, a California leaseholder in the
multi-hotel bankruptcy of the U.S. affiliate of Singapore-based
Eagle Hospitality Real Estate Investment Trust.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based
in Singapore, Eagle H-REIT is established with the principal
investment strategy of investing on a long-term basis, in a
diversified portfolio of income-producing real estate which is used
primarily for hospitality and/or hospitality-related purposes, as
well as real estate-related assets in connection with the
foregoing, with an initial focus on the United States.
EHT US1, Inc., and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.
EHT US1, Inc., estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP as bankruptcy counsel; FTI
Consulting, Inc., as restructuring advisor; and Moelis & Company
LLC, as investment banker. Cole Schotz P.C. is the Delaware
counsel. Rajah & Tann Singapore LLP is Singapore Law counsel, and
Walkers is Cayman Law counsel. Donlin, Recano & Company Inc. is the
claims agent.
ELECTRONIC DATA: Wins Cash Collateral Access Thru June 25
---------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Greensboro Division, has authorized Electronic Data
Magnetics, Inc. to use cash collateral on an interim basis through
June 25, 2021.
The Debtor requires the immediate use of Cash Collateral to
complete existing orders and work-in-process and to enhance the
prospects for a successful reorganization.
Truist Bank has made one or more prepetition loans and has made
financial accommodations to the Debtor on which Truist contends the
Debtor is obligated to Truist in an amount in excess of $3,500,000.
As security for the Truist Debt -- excluding the Payroll
Protection Program loan -- Truist asserts a valid and perfected
security interest in and lien upon, among other things, all
accounts, equipment, inventory, and general intangibles of the
Debtor, and the proceeds thereof, all as further described and set
forth in certain prepetition loan and security agreements described
in the Cash Collateral Motion.
The SBA has made a prepetition loan to the Debtor in the original
principal amount of $150,000. As security for the SBA Debt, the SBA
asserts a valid and perfected security interest in and lien upon,
among other things, all accounts of the Debtor, and the proceeds
thereof, all as further described and set forth in the prepetition
loan and security documents. Pursuant to the SBA Debt, the Debtor
is obligated to pay the SBA $731 per month, beginning May 28,
2021.
As adequate protection, Truist and the SBA are granted a valid,
attached, choate, enforceable, perfected and continuing security
interest in and lien upon, all postpetition assets of the Debtor
that is of the same character and type, and to the same extent, as
the liens and encumbrances that their security interests imposed
upon the Debtor's assets prepetition. The priority of said security
interest in and liens upon the Postpetition Collateral will be the
same priority as exists among Truist, the SBA, the Debtor, and all
other creditors or claimants against the Debtor's bankruptcy
estate, in and upon the Prepetition Collateral.
As additional adequate protection for Truist's interest in Cash
Collateral, the Debtor will pay to Truist monthly adequate
protection payments in an amount equal it its non-default rate of
interest with respect to the First Note and the Second Note as
those terms are defined in the Cash Collateral Motion. The Debtor
is not required to pay interest with respect to the Payment
Protection Program loan by Truist to the Debtor.
As additional adequate protection for the SBA's interest in Cash
Collateral, the Debtor will keep the SBA Debt current.
A further interim hearing on the matter is scheduled for June 24 at
9:30 a.m.
A copy of the order and the Debtor's budget is available for free
at https://bit.ly/3yG1ox9 from PacerMonitor.com.
The Debtor projects total income of $551,348 and total operating
expenses funded by PPP/Richard Hallman of $20,842 and total
operating expenses funded by Truist of $39,056 for the week ending
June 4, 2021.
About Electronic Data Magnetics
Electronic Data Magnetics manufactures and reproduces magnetic and
optical media. The Company is a manufacturer of technically
advanced printed products used in a variety of markets including,
airlines, mass transit agencies, toll roads, parking institutions,
betting slips, printing for US GPO, tabulating cards, and RFID
tags.
Electronic Data Magnetics sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D.N.C. Case No. 21-10222) on April
22, 2021. In the petition signed by R. Richard Hallman, president
and CEO, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Lena M. James oversees the case.
James C. Lanik, Esq. at WALDREP WALL BABCOCK & BAILEY PLLC is the
Debtor's counsel.
Truist Bank, as lender, is represented by BELL, DAVIS & PITT, P.A.
ENTRUST ENERGY: May Use Cash Collateral for Continued Operations
----------------------------------------------------------------
Judge Marvin Isgur authorized Entrust Energy, Inc. and its debtor
affiliates to use cash collateral, until further Court order, to
fund their business operations and allow them to maintain business
relationships with vendors, suppliers and customers, as well as
make payroll.
The Debtors are directed to maintain the amount of $1,615,587 in a
segregated DIP account at JP Morgan Bank, N.A., to provide for the
Bank's setoff rights with respect to the $1.6 million loan the
Debtor obtained under the Paycheck Protection Program established
pursuant to the CARES Act. The Debtors shall maintain that account
pending further Court order. The Debtors may also pay fees and
expenses payable to the U.S. Trustee.
The Debtors' position is that no person or entity has a perfected
lien on the Debtors' cash, and that any such person or entity is
over-secured and thus adequately protected by their possession of
the Debtors' substantial cash on hand, as well as cash on hand in
excess of $24,675,990, and accounts receivable in excess of
$17,111,533.
A copy of the order is available for free at https://bit.ly/3wx7LB1
from PacerMonitor.com.
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. Tex. 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.
Judge Marvin Isgur oversees the cases.
Baker & Hostetler LLP, led by Elizabeth A. Green, Esq., is the
Debtors' legal counsel. BMC Group, Inc. is the claims noticing and
solicitation agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on April 28,
2021. The committee is represented by Charles Gibbs, Esq.
EXPO CONSTRUCTION: G.L. Nettles Opposes Disclosure Statement
------------------------------------------------------------
G.L. Nettles, Inc., a creditor of Expo Construction Group, LLC,
complained that the Disclosure Statement accompanying the Chapter
11 Plan of Expo Construction is "woefully deficient" because it
does not clearly and succinctly inform the average unsecured
creditor as to:
* which creditor is owed what, and what the creditor is going to
get;
* when is the creditor going to get paid, and what contingencies
there are to getting a distribution;
* whether the owners on the various construction projects have
paid the Debtor for work performed on the project - funds intended
to be distributed in part to various subcontractors;
* the amount of "retention funds" alluded to by the Debtor or
the status of the amount of payments being made; and
* how much various creditors will receive under the Plan.
G.L. Nettles added that the Disclosure Statement also failed to
provide information relating to the Debtor's financial projections,
liquidation analysis, and valuation analysis. As a result, the
Disclosure Statement should not be approved, G.L. Nettles
asserted.
A copy of the objection is available for free at
https://bit.ly/3wDE81h from PacerMonitor.com.
About Expo Construction Group
Expo Construction Group, LLC, a Houston-based general contractor,
filed a voluntary petition for relief under Chapter 11 of the
United States Code (Bankr. S.D. Tex. Case No. 20-34099) on Aug. 18,
2020. Melida Taveras, a managing member, signed the petition. At
the time of filing, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The Law
Office of Margaret M. McClure serves as the Debtor's legal counsel.
FULL HOUSE: All Four Proposals Passed at Annual Meeting
-------------------------------------------------------
Full House Resorts, Inc. held its Annual Meeting of Stockholders on
May 19, 2021, at which the stockholders:
(a) elected Kenneth R. Adams, Carl G. Braunlich, Lewis A.
Fanger,
Eric J. Green, Michael A. Hartmeier, Daniel R. Lee,
Kathleen
M. Marshall, and Michael P. Shaunnessy as directors to
serve
until the 2022 annual meeting of stockholders or until
their
successors are duly elected and qualified;
(b) approved an amendment to the Company's 2015 Equity
Incentive
Plan to increase the number of shares available for issuance
under the 2015 Plan;
(c) ratified the appointment of Deloitte & Touche LLP as the
Company's independent registered public accounting firm for
2021; and
(d) approved, on an advisory basis, the Company's named
executive
officer compensation as disclosed in the 2021 proxy
statement.
On May 19, 2021, the composition of two committees of the Company's
board of directors was changed. Effective immediately, the
compensation committee now consists of Carl Braunlich, Eric Green,
Michael Hartmeier, and Michael Shaunnessy, with Mr. Green
continuing to serve as its chairman. The nominating and corporate
governance committee now consists of Carl Braunlich, Eric Green,
and Michael Shaunnessy, with Mr. Shaunnessy serving as its
chairman.
About Full House Resorts Inc.
Headquartered in Las Vegas, Nevada, Full House Resorts --
www.fullhouseresorts.com -- owns, leases, develops and operates
gaming facilities throughout the country. The Company's properties
include Silver Slipper Casino and Hotel in Hancock County,
Mississippi; Bronco Billy's Casino and Hotel in Cripple Creek,
Colorado; Rising Star Casino Resort in Rising Sun, Indiana; and
Stockman's Casino in Fallon, Nevada. The Company also operates the
Grand Lodge Casino at the Hyatt Regency Lake Tahoe Resort, Spa and
Casino in Incline Village, Nevada under a lease agreement with the
Hyatt organization. The Company is currently constructing a new
luxury hotel and casino in Cripple Creek, Colorado, adjacent to its
existing Bronco Billy's property.
Full House reported net income of $147,000 for the year ended Dec.
31, 2020, compared to a net loss of $5.82 million for the year
ended Dec. 31, 2019. As of March 31, 2021, the Company had $453.94
million in total assets, $357.54 million in total liabilities, and
$96.41 million in stockholders' equity.
* * *
As reported by the TCR on Feb. 9, 2021, Moody's Investors Service
assigned a Caa1 Corporate Family Rating and Caa1-PD Probability of
Default Rating to Full House Resorts Inc. (FHR). The Caa1 CFR
reflects the long, approximately 24 months, Bronco Billy's
construction period, uncertainty related to the level of visitation
and earnings at the redesigned property, FHR's modest scale, and
exposure to cyclical discretionary consumer spending.
GAIA INTERACTIVE: Has Interim OK to Use $133,000 Cash
-----------------------------------------------------
Judge Stephen L. Johnson of the U.S. Bankruptcy Court for the
Northern District of California granted Gaia Interactive, Inc.
interim authority, pending a final hearing, to use $133,240 in cash
collateral pursuant to an approved four-week budget.
In exchange for cash collateral access, the Debtor will pay Cathay
Bank $3,750 every Monday, for the preceding week, by automatic
transfer/electronic funds as adequate protection for its interest
in the cash collateral. Cathay Bank is also granted a
post-petition lien on all assets of the Debtor, to the same extent
of Cathay Bank's valid and perfected security interest in its
pre-petition collateral. Cathay Bank will be allowed an
administrative priority claim to the extent the replacement lien is
insufficient to cover Cathay's adequate protection claims. Monique
D. Jewett-Brewster, Esq., at HOPKINS & CARLEY, A Law Corporation,
represents Cathay Bank.
A copy of the order is available for free at https://bit.ly/2QOxjdY
from PacerMonitor.com.
The final hearing on the motion will be held on June 9, 2021 at 9
a.m.
About Gaia Interactive, Inc.
Gaia Interactive, Inc., -- doing business under several names such
as Gaia Online; Gaia Online, LLC; Ravel Labs LLC and Unrave -- owns
and operates online communities platform in Santa Clara,
California. The Debtor filed a Chapter 11 petition (Bankr. N.D.
Cal. Case No. 21-50660) on May 12, 2021 in the U.S. Bankruptcy
Court for the Northern District of California, signed by James Cao,
CEO.
As of the Petition Date, the Debtor has $567,616 in total assets
and $8,193,464 in total liabilities. Judge Stephen L. Johnson
oversees the case. BINDER & MALTER, LLP represents the Debtor as
counsel.
GATEWAY KENSINGTON: Seeks Interim Use of Cash Collateral
--------------------------------------------------------
Gateway Kensington LLC asked the Bankruptcy Court to authorize its
use of cash collateral on an interim basis.
The Debtor is the developer and sponsor of a condominium in
Bronxville, New York, in which it still owns seven units. Five of
these units are currently rented, one is subject to a pending
contract of sale and one is vacant being marketed for sale. The
Debtor also owns a commercial condominium in Naples, Florida, which
is currently rented.
In March 2016, the Debtor contracted a $50 million loan with
Sterling National Bank to develop the Bronxville Property. In
April 2019, the parties modified the construction loan, converting
it to a term loan for $14,626,500 whereby the Debtor signed a
replacement mortgage note. As security for the mortgage note, the
Debtor granted SNB a first priority lien on the Bronxville Property
under the terms of a Replacement Mortgage and Security Agreement.
The Debtor later executed a Collateral Assignment of Leases and
Rents on the Bronxville Property as additional security for the
note, granting SNB a lien on the rent revenue on the Bronxville
Property. As of May 14, 2021, the Debtor owes SNB approximately
$5,233,871 on the Bronxville mortgage.
The Debtor is asking the Court to authorize the use of cash
collateral from rents generated from the Bronxville Property to pay
for ordinary expenses needed to continue its business operations.
The Debtor's budget provided for weekly operating expenses at these
amounts:
$12,612 for the week ending May 28, 2021;
$300 for the week ending June 4, 2021;
$3,930 for the week ending June 18, 2021;
$12,612 for the week ending June 25, 2021;
$58,877 for the week ending July 2, 2021; and
$12,912 for the week ending August 6, 2021.
A copy of the budget is available for free at
https://bit.ly/3hOD9qQ from PacerMonitor.com.
The Debtor proposed to grant SNB replacement liens in all of the
Debtor's post-petition assets and proceeds to the extent that SNB
had a valid security interest in subject pre-petition assets on the
Petition Date, as adequate protection for the proposed use of cash
collateral. The Debtor will also pay SNB the monthly debt
amortization at the contract (non-default) rate of interest
according to the terms of the SNB note.
The Debtor intends to sell the remaining condominium units and pay
off, with the sale proceeds, the outstanding mortgage and
distribute the remaining funds equitably to all allowed claims
filed in its bankruptcy case.
A copy of the motion is available for free at
https://bit.ly/3hVzRlo from PacerMonitor.com.
About Gateway Kensington LLC
Gateway Kensington LLC is a developer and sponsor of a condominium
in Bronxville, New York, and owns a commercial condominium in
Naples, Florida.
The Debtor filed a petition under Subchapter V of Chapter 11
(Bankr. S.D. N.Y Case No. 21-22274) on May 14, 2021 to protect its
assets and operations while it continues to sell its remaining
condominium units, pay off its outstanding mortgage and distribute
equitably the remaining funds to all allowed claims in its Chapter
11 case. The Debtor's bankruptcy was precipitated by an
arbitration award in excess of $12 million in a derivative
proceeding.
In a petition signed by John Fareri, manager, the Debtor estimated
between $1,000,001 and $10,000,000 in assets and between
$10,000,001 and $50,000,000 in liabilities.
KIRBY AISNER & CURLEY LLP represents the Debtor as counsel. The
firm may be reached through:
Erica R. Aisner, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road, Suite 237
Scarsdale, NY 10583
Telephone: (914) 401-9500
Email: eaisner@kacllp.com
GATEWAY KENSINGTON: Seeks to Hire Kirby Aisner as Legal Counsel
---------------------------------------------------------------
Gateway Kensington, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Kirby Aisner &
Curley, LLP as its legal counsel.
The firm will render these services:
a. give advice to the Debtor with respect to its power 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, if need be, 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. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
and
g. perform all other legal services for the Debtor in
connection with its Chapter 11 case.
The firm will be paid at these rates:
Partners $425 to $525 per hour
Associates $295 per hour
Paraprofessionals $150 per hour
Erica Aisner, Esq., a partner at Kirby Aisner & Curley, disclosed
in a court filing that her firm is a "disinterested person" as that
phrase is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Erica R. Aisner, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road, Suite 237
Scarsdale, NY 10583
Phone: (914) 401-9500
Email: eaisner@kacllp.com
About Gateway Kensington
Gateway Kensington LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
21-22274) on May 14, 2021. At the time of the filing, the Debtor
disclosed total assets of up to $10 million and total liabilities
of up to $50 million. Judge Robert D. Drain presides over the
case. Kirby Aisner & Curley LLP represents the Debtor as legal
counsel.
GEO GROUP: Credit Market Standing Slides Due to Cash Crunch
-----------------------------------------------------------
Davide Scigliuzzo of Bloomberg News reports that Geo Group Inc.'s
standing in the credit market took another hit Tuesday, May 25,
2021, after S&P Global Ratings cut the company's rating for the
second time in two months amid growing U.S. reluctance to use
private prisons.
S&P cited the increased risk of a distressed debt exchange as it
lowered Geo by two notches to CCC+, or seven steps into junk
territory. The move follows Geo's disclosure that it hired
financial advisers to assess its options and head off a potential
cash crunch.
Weakening operating conditions and "unsupportive capital markets"
will make it harder for Geo to refinance its debt.
About Geo Group
Geo Group conducts substantial business and manages and/or owns
correctional facilities (private prisons and/or mental health
facilities) in Thornton, Delaware County, Pennsylvania (George W.
Hill Correctional Facility) as well as elsewhere in Pennsylvania
(Moshannon Valley Correctional Facility in Philipsburg, PA) and
across the United States. Geo Group also conducts substantial
business in this District and Division by providing "rehabilitation
programs to individuals while in-custody and post-release into the
community."
GIBSON FARMS: Gibsons to Contribute $100K; Amends Rabo's Claim
--------------------------------------------------------------
Gibson Farms and its affiliates submitted a First Amended
Consolidated Plan of Reorganization and Disclosure Statement on May
20, 2021.
Class 3 is comprised of the Secured Claims of Rabo Agrifinance LLC,
in the amount of $10,629,288 as of the Petition Date comprised of
three notes. The Debtors propose to object to the amount of the
Secured Claim being asserted by Rabo through an adversary
proceeding objecting to Rabo's proof of claim. Once the Allowed
Secured Claim is determined by the claims reconciliation process,
the Amended Plan provides for payment in full of the Allowed
Secured Claims. For purposes of the Confirmation of the Amended
Plan for Debtors estimate the Allowed Secured Claims of Rabo to
total $10,625,000.
For purposes of the Amended Plan, the default interest is assumed
to equal $1,250,000. The Amended Plan then provides for the
Debtors to pay over to Rabo on the effective date the sum of
$425,000, and then prior to December 31, 2021, pay an additional
$200,000 towards the default interest by liquidating certain items
of farm machinery and equipment against which Rabo holds a
perfected security interest by selling such equipment.
Subsequent to the payment of the $625,000 to Rabo, and until the
Court can rule upon the Debtor's objection to Rabo's proof of claim
and requests for affirmative relief as it relates to default
interest, the Debtors will treat the balance of any default
interest, if any, by creating a reserve account plus interest at
the Federal discount rate estimated to be 1.35% per annum. The
Amended Plan shall then provide for the treatment of the balance
owing on the default interest by the Debtors funding a minimum of
$62,500 per annum for ten years plus interest.
Since the Debtors believe their assets subject to liens in favor of
their largest Secured Creditor, Rabo, totals in excess of $12.75
million, the Plan proposes to pay all creditors in full with
interest.
In order to have sufficient resources to fund the Plan payments
called for on the effective date, Paula and Lee Gibson shall
contribute $100,000 toward the initial payments made to Rabo for
payment on its default interest claim, and approximately $185,000
worth of payments toward the payment of Administrative Claims.
Additionally, the funds of the Gibsons shall provide the source of
a Capital Reserve for Equipment Repair and Replacement of an
estimated $100,000 per year.
Furthermore, the Cash Flow Projections reflect intercompany cash
management which allows NWC and Paul and Lee Gibson to supplement
the cash flow needs of Gibson Farms during the periods when
expenses for crop inputs are high and no revenue is being produced.
These loans are then repaid at the end of each crop year.
Like in the prior iteration of the Plan, General Unsecured
Creditors of the Debtors are to be paid 100% of their Allowed
Unsecured Claims, plus interest accruing from the Effective Date at
the rate of 1.35 percent per annum, over a 5-year term in equal
amortized annual payments of principal and interest with the first
such payment being due and payable on or before December 15, 2021,
and like payments being due on the same date every year thereafter
until December 15, 2025, when the final installment shall be paid.
A full-text copy of the First Amended Consolidated Plan of
Reorganization and Disclosure Statement dated May 20, 2021, is
available at https://bit.ly/3fNxA9h from PacerMonitor.com at no
charge.
Attorneys for Debtors:
MULLIN HOARD & BROWN, L.L.P.
David R. Langston, SBN: 11923800
P.O. Box 2585
Lubbock, Texas 79408-2585
Telephone: 806-765-7491
Telefax: 806-765-0553
E-mail: drl@mhba.com
About Gibson Farms
Gibson Farms has over 45 years' experience in farm management as
well as an established history in Moore County agriculture. Gibson
Farms rents farmland from Beauchamp Estates Partnership and Gibson
Investments as well as other landowners in the area. They raise
feed grains, forage crops, cotton which they sell either through
private contract or on the open market.
Gibson Farms and its affiliates filed voluntary petitions for
relief under Chapter 11 of Bankruptcy Code (Bankr. N.D. Tex. Lead
Case No. 20-20271) on Oct. 5, 2020. Paula Gibson, partner, signed
the petitions. At the time of the filing, the Debtors estimated
assets of between $1,000,001 and $10,000,000 and liabilities of
between $10,000,001 and $50,000,000.
Judge Robert L. Jones oversees the cases.
The Debtors have tapped Mullin Hoard & Brown, LLP as legal counsel;
Clint W. Bumguardner of W.T. Appraisal, Inc. as real estate
appraiser; and Frost, PLLC as accountant.
GIRARDI & KEESE: Passes Off 86 Talc Cases vs. Johnson & Johnson
---------------------------------------------------------------
Law360 reports that Girardi & Keese has the green light to hand off
86 of its 178 clients in mass tort cases against Johnson & Johnson
to California plaintiffs firm Robinson Calcagnie Inc., a California
federal bankruptcy judge ruled Tuesday, May 25, 2021, granting an
unopposed request from the Chapter 7 trustee.
In a brief order, U.S. Bankruptcy Judge Barry Russell gave his
blessing to the transfer, which was requested by the firm's
liquidation trustee, Elissa Miller of SulmeyerKupetz PC, late last
April 2021. Miller had told the court that offloading the cases
would protect Girardi Keese's clients as the firm wades through its
bankruptcy.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It
served clients in California in a variety of legal areas. It was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee.
The Chapter 7 trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
GORDON BROTHERS: Affiliate Kamiak Seeks Cash Collateral Access
--------------------------------------------------------------
Kamiak Vineyards, Inc., an affiliate of Gordon Brothers Cellars,
Inc., asked the Bankruptcy Court to authorize the continued use of
cash collateral on an interim basis through the earlier of:
-- the effective date of any plan confirmed by the Court in
the Debtor's case, or
-- July 31, 2021,
on the same terms as that which the Debtor reached with
parties-in-interest to the cash collateral in prior months.
Accordingly, the Debtor asked the Court for authority to provide
adequate protection to Bank of Eastern Washington (BOEW) in
consideration for such use.
A copy of the motion is available for free at
https://bit.ly/3fzTxss from PacerMonitor.com.
About Gordon Brothers Cellars
Gordon Brothers Cellars, Inc., owns and operates a wine business.
Gordon Brothers Cellars sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Wash. Case No. 20-02003) on Nov.
6, 2020. In the petition signed by Jeffrey J. Gordon, president,
the Debtor disclosed $447,844 in assets and $2,148,304 in
liabilities.
Gordon Brothers Cellars' case is jointly administered with the
Chapter 11 case of Kamiak Vineyards Inc., which sought bankruptcy
protection (Bankr. E.D. Wash. Case No. 20-02038) on Nov. 17, 2020.
Gordon Brothers Cellars' is the lead case.
Judge Whitman L. Holt oversees the cases.
Roger W. Bailey, Esq. at Bailey & Busey PLLC is the Debtor's
counsel. Kevin O'Rourke is the Chapter 11 Subchapter V Trustee.
Jason Ayres, Esq., and Todd Reuter, Esq., at Foster Garvey P.C.,
represent Bank of Eastern Washington.
Michael Paukert, Esq., at Paukert & Troppmann, PLLC, represents
Equitable Financial Life Insurance Company.
GROUND OPTIONS: Motions to Incur Debt, Use Cash Collateral Dropped
------------------------------------------------------------------
The Bankruptcy Court entered an order withdrawing the motions filed
by Ground Options, LLC to incur post-petition financing and use
cash collateral. The Court, in various prior dates, has heard,
granted in part, and continued hearing on these motions.
The Debtor has a pending motion to convert its case from Chapter 11
to Chapter 7. Holiday Tours, Inc. has objected to the Motion to
Convert.
About Ground Options
Ground Options, LLC, is in the business of providing ground
transportation options and solutions for various groups including
collegiate athletics. In the recent past, it has provided
logistics services for numerous college athletic conferences, the
NCAA championships, and the Big Ten Basketball Championships.
Other events for which the Company provided services include the
Presidential Inauguration, the Papal visit and the NBA All Star
events.
Ground Options sought Chapter 11 protection (Bankr. N.D. Ill. Case
No. 20-19706) on Nov. 3, 2020. The petition was signed by William
Maulsby, the CEO and managing partner. At the time of the filing,
the Debtor was estimated to have $50,000 to $100,000 in assets and
$1 million to $10 million in liabilities.
Judge Carol A. Doyle oversees the case.
The Debtor tapped Burke, Warren, Mackay & Serritella, P.C., as
counsel and Advantage Bookkeeping Professionals, Inc. as
accountant.
GUI-MER-FE: Case Summary & 2 Unsecured Creditors
------------------------------------------------
Debtor: GUI-MER-FE, Inc.
1656 Calle Santa Agueda
URB San Gerardo
San Juan, PR 00926
Chapter 11 Petition Date: May 27, 2021
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 21-01659
Debtor's Counsel: Madeline Soto Pacheco, Esq.
LUBE & SOTO LAW OFFICES, PSC
1130 Ave. FD Roosevelt
San Juan, PR 00920-2906
Tel: 787-841-1704
Email: madelinesotopacheco@gmail.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mercedes Garcia Reyes, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/TMF2AJQ/GUI-MER-FE_INC__prbke-21-01659__0001.0.pdf?mcid=tGE4TAMA
GUITAMMER COMPANY: Seeks to Hire Hack Steer & Company as Accountant
-------------------------------------------------------------------
The Guitammer Company seeks approval from the U.S. Bankruptcy Court
for the Southern District of Ohio to hire Hack, Steer & Company,
LLC as its accountant.
The services to be rendered by Steer consist of general accounting
and tax preparation services and production of related documents.
Steve Steer, the firm's accountant who will be providing the
services, charges $200 per hour. Some younger staff charge $75 per
hour.
Mr. Steer disclosed in a court filing that his firm is a
disinterested person as defined by Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Steve Steer, CPA
Hack, Steer & Company, LLC
314 E 2nd St, Salem, OH 44460
Phone: (330) 337-8713
Email: rhack@hacksteer.com
About The Guitammer Company
The Guitammer Company, a Columbus, Ohio-based manufacturer of audio
and video equipment, filed its voluntary petition for relief under
Chapter 11 of the Bankurptcy Code (Bankr. S.D. Ohio Case No.
21-50832) on March 16, 2021. At the time of filing, the Debtor
disclosed $1,240,945 in assets and $4,559,936 in liabilities.
Frederic P. Schwieg, Esq., at Schwieg Law, serves as the Debtor's
legal counsel.
GUITAMMER COMPANY: Taps Kremblas & Foster as Special Counsel
------------------------------------------------------------
The Guitammer Company seeks approval from the U.S. Bankruptcy Court
for the Southern District of Ohio to hire Kremblas & Foster as its
special counsel.
The Debtor needs a special counsel to perform patent and trademark
preservation and enforcement services.
Frank Foster, Esq., the firm's attorney who will be providing the
services, charges $300 per hour.
Mr. Foster disclosed in a court filing that he is a disinterested
person as required by Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Frank Foster, Esq.
Kremblas & Foster
7632 Slate Ridge Boulevard
Reynoldsburg, OH 43068-8159
Tel: 614-575-2100
Fax: 614-575-2149
About The Guitammer Company
The Guitammer Company, a Columbus, Ohio-based manufacturer of audio
and video equipment, filed its voluntary petition for relief under
Chapter 11 of the Bankurptcy Code (Bankr. S.D. Ohio Case No.
21-50832) on March 16, 2021. At the time of filing, the Debtor
disclosed $1,240,945 in assets and $4,559,936 in liabilities.
Frederic P. Schwieg, Esq., at Schwieg Law, serves as the Debtor's
legal counsel.
HIGHLAND CAPITAL: Committee Taps Teneo as Litigation Advisor
------------------------------------------------------------
The official committee of unsecured creditors of Highland Capital
Management, L.P. and its affiliates, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to retain Teneo
Capital, LLC as litigation advisor.
The firm's services include:
-- assisting in the investigation of business activities of
insiders, related and affiliated parties;
-- assisting in forensic review of financial information of the
Debtor;
-- assisting in the evaluation and analysis of causes of action;
-- assisting in the development of complaints prosecuting the
causes of action, including attendance at depositions and provision
of expert reports or testimony on case issues as required by the
committee; and
-- rendering such other litigation advisory or such other
financial advisory assistance as the committee or its legal counsel
may deem necessary that are consistent with the role of a
litigation advisor and not duplicative of services provided by
other professionals in the Debtor's Chapter 11 proceeding.
The firm will be paid as follows:
(i) a fixed fee of $40,000 per month for the first three
months, and $20,000 per month on a go-forward basis for the
services of Marc Kirschner, plus
(ii) regular hourly fees for any additional Teneo personnel,
plus
(iii) a percentage of recoveries of litigation, plus
(iv) reimbursement of expenses incurred by Teneo.
The firm's customary hourly rates are as follows:
Normal Discounted
Rates Rates
Senior Managing Directors,
Senior Advisors and $800-$1,250 $720-1,125
Managing Directors
Directors, Vice Presidents and
Consultants $500-$800 $450-$720
Associates and Analysts $350-$500 $315-$450
Administrative Staff $200-$300 $180-$270
Marc Kirschner, Esq., senior managing director at Teneo Capital,
disclosed in a court filing that the firm neither holds nor
represents any interest adverse to the Debtor's estate.
The firm can be reached through:
Marc S. Kirschner, Esq.
Teneo Capital, LLC
280 Park Ave, 4th Floor
New York, NY 1007
Tel: (212) 886-1600
Email: info@teneo.com
About Highland Capital Management
Highland Capital Management, LP was founded by James Dondero and
Mark Okada in Dallas in 1993. Highland Capital is the world's
largest non-bank buyer of leveraged loans in 2007. It also manages
collateralized loan obligations. In March 2007, it raised $1
billion to buy distressed loans. Collateralized loan obligations
are created by bundling together loans and repackaging them into
new securities.
Highland Capital Management sought Chapter 11 protection (Bank. D.
Del. Case No. 19-12239) on Oct. 16, 2019. On Dec. 4, 2019, the
case was transferred to the U.S. Bankruptcy Court for the Northern
District of Texas and was assigned a new case number (Bank. N.D.
Texas Case No. 19-34054). Judge Stacey G. Jernigan is the case
judge.
At the time of the filing, Highland had between $100 million and
$500 million in both assets and liabilities.
The Debtor tapped Pachulski Stang Ziehl & Jones LLP as bankruptcy
counsel, Foley & Lardner LLP as special Texas counsel, and Teneo
Capital, LLC as litigation advisor. Kurtzman Carson Consultants,
LLC is the claims and noticing agent.
The U.S. Trustee for Region 6 appointed a committee of unsecured
creditors on Oct. 29, 2019. The committee tapped Sidley Austin LLP
and Young Conaway Stargatt & Taylor LLP as bankruptcy counsel, and
FTI Consulting, Inc. as financial advisor.
HORIZON BLUE CROSS: NJ Supreme Court Take on Bankruptcy Clause
--------------------------------------------------------------
Law360 reports that the New Jersey Supreme Court will examine the
legitimacy of a settlement term under which money that a speech
language pathologist owed to Horizon Blue Cross Blue Shield of New
Jersey would not be dischargeable if she filed for bankruptcy,
according to an order made available Wednesday, May 26, 2021. The
justices granted to a limited degree the petition for certification
filed by Chryssoula Marinos-Arsenis and her business, Speech &
Language Center LLC, in challenging an appeals court decision
finding she must sign a settlement agreement with the bankruptcy
clause. Horizon has alleged it paid Marinos-Arsenis and her
business millions based on fraudulent claims.
About Horizon Blue Cross
headquartered in Newark, New Jersey is the only licensed Blue Cross
and Blue Shield Association plan in New Jersey, providing health
insurance coverage to over 3.2 million people throughout all of New
Jersey.
HOSPITALITY INVESTORS: May 28 Deadline Set for Panel Questionnaires
-------------------------------------------------------------------
The United States Trustee is soliciting members for an unsecured
creditors committee in the bankruptcy cases of Hospitality
Investors Trust, Inc., et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://bit.ly/2TnkKar and return it to
Joseph.McMahon@usdoj.gov at the Office of the United States Trustee
so that it is received no later than 4:00 p.m., on May 28, 2021.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Hospitality Investors
Headquartered in New York, Hospitality Investors Trust, Inc. --
http://www.HITREIT.com/-- is a self-managed real estate investment
trust that invests primarily in premium-branded select-service
lodging properties in the United States. As of Dec. 31, 2020, the
Company owns or has an ownership interest in a total of 101 hotels,
with a total of 12,673 guestrooms in 29 states.
Hospitality Investors Trust Inc. and subsidiary Hospitality
Investors Trust Operating Partnership LP, sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 21-10831) on May 19,
2021.
In the petition signed by CEO and president Jonathan P. Mehlman,
Hospitality Investors Trust estimated total assets of
$1,701,867,000 as of March 31, 2021 and estimated total liabilities
$1,360,423,000 as of March 31, 2021.
The cases are handled by Honorable Judge Craig T. Goldblatt.
Jeff J. Marwil, Esq., Paul V. Possinger, Esq., and Jordan E.
Sazant, Esq., at PROSKAUER ROSE LLP, and Jeremy W. Ryan, Esq., at
POTTER ANDERSON & CORROON LLP serve as the Debtors' attorneys.
JEFFERIES LLC is the Debtors' financial advisor. MORRISON &
FOERSTER LLP serves as counsel to the independent directors. EPIQ
CORPORATE RESTRUCTURING, LLC serves as claims agent.
Brookfield Strategic Real Estate Partners II Hospitality REIT II
LLC, as DIP Lender, is represented by:
Sean O'Neal, Esq.
Kara A. Hailey, Esq.
Cleary Gottlieb Steen & Hamilton LLP
One Liberty Plaza
New York, NY 10006
E-mail: soneal@cgsh.com
khailey@cgsh.com
- and -
Pauline K. Morgan, Esq.
Young Conaway Stargatt & Taylor, LLP
Rodney Square, 1000 King Street
Wilmington, DE 19801
E-mail: pmorgan@ycst.com
Trimont Real Estate Advisors, LLC, as DIP Agent, is represented
by:
Michael V. Blumenthal. Esq.
ThompsonKnight
900 Third Avenue, 20th Floor
New York, NY 10022
E-mail: michael.blumenthal@tklaw.com
INSPIREMD INC: Okays Additional Provision on Complaint Resolution
-----------------------------------------------------------------
The Board of Directors of InspireMD, Inc. approved and adopted
Amended and Restated Bylaws of the Company for the purposes of
adding Section 6 under Article VII thereof to provide that, unless
the Company consents in writing to the selection of an alternative
forum, the federal district courts of the United States shall be
the exclusive forum for resolving any complaint asserting a cause
of action arising under the Securities Act of 1933, as amended,
including all causes of action asserted against any defendant to
such complaint.
About InspireMD Inc.
Headquartered in Tel Aviv, Israel, InspireMD --
http://www.inspiremd.com-- is a medical device company focusing on
the development and commercialization of its proprietary MicroNet
stent platform technology for the treatment of complex vascular and
coronary disease. A stent is an expandable "scaffold-like"
device, usually constructed of a metallic material, that is
inserted into an artery to expand the inside passage and improve
blood flow. Its MicroNet, a micron mesh sleeve, is wrapped over a
stent to provide embolic protection in stenting procedures.
InspireMD reported a net loss of $10.54 million for the year ended
Dec. 31, 2020, compared to a net loss of $10.04 million for the
year ended Dec. 31, 2019. As of March 31, 2021, the Company had
$48.63 million in total assets, $4.68 million in total liabilities,
and $43.95 million in total equity.
INTEGRATED AG: Plan Sponsor's Financing, Contribution to Fund Plan
------------------------------------------------------------------
Integrated AG XI, LLC filed with the Bankruptcy Court a Disclosure
Statement explaining its Chapter 11 Plan of Reorganization dated
May 19, 2021. The Debtor is the proponent of the Plan.
The Plan will be financed as follows:
A. Financing from the Plan Sponsor for $700,000 under an
Agreement for Line of Credit, secured by a lien junior to GWB's
lien. The financing, which will be set up as a delay draw term
loan with quarterly draws (subject to an approved quarterly budget)
will be used to:
* satisfy all Allowed Administrative Expenses and Priority
Claims, which will be paid in full on the Effective Date;
* pay for all operating and maintenance costs and expenses of
the Ranch; and
* to fund the Debtor's obligations under the Plan.
All funds advanced under the Financing shall bear 9% interest per
annum. All interest shall accrue and shall not be due and payable
until the Reorganized Debtor has positive cash flow and can handle
all debt service payments on the first lien debt. Any portion of
the Financing may be convertible into equity in the Reorganized
Debtor at the exclusive option of the Plan Sponsor (the Debtor).
Any remaining unsold Property or the proceeds thereof shall remain
in the Reorganized Debtor after full payment of all Secured and
Unsecured Claims, including the Financing debt.
B. New value contribution of $200,000 by the Plan Sponsor on the
Effective Date.
C. Sales of parcels of the Debtor's Property, from time to time,
after the Effective Date and for a period of five years thereafter,
with the consent of GWB.
If GWB, however, does not consent to the proposed sale, the
Bankruptcy Court shall retain jurisdiction to determine whether
such failure to consent was unreasonable.
D. Cash on hand of $130,000, which the Debtor expects to have on
the Effective Date.
The Financing, along with the cash on hand, income from operations
and the sale proceeds of the Property, will be used to fund the
obligations under the Plan, as well as its business operations and
capital improvements to prepare parts of the farm for lease or
sale.
Treatment of Claims under the Plan
* Class 2 Secured Claim of GWB. The Debtor estimates that Class
2 Claim aggregates $17,290,429, which will be paid in full under
the Plan:
1a. in regular quarterly payments of interest only for two
years;
1b. regular equal quarterly payments over the next three
years;
1c. amortized over fifteen years with interest at 3.5% per
annum, or such rate determined by the Court beginning, on the date
that is 30 days after the Effective Date and continuing quarterly
until the date that is one month after the fifth year anniversary
of the Effective Date (Maturity Date), with a final balloon payment
of all remaining principal and interest on the Maturity Date.
2. the payment of 90% of the net sales proceeds from sales of
parcels of the Property from time to time.
GWB will retain its security interest in all existing collateral
and the lender protections, including the ability to enforce
remedies in the event of default.
* Class 3 Disputed Mechanics' Lien Claims
Class 3 consists of disputed claims of Graywolf Integrated
Construction Company for $2,245,719; Revolution Industrial LLC for
$611,222; and Sawyer Welding & Repair Inc. for $549,120 for
mechanic liens on account of work performed on the Shop Yard
parcel. The Mechanics' Lien is secured by the shop yard parcel,
but is subordinate to GWB's lien. The shop yard parcel is not
owned by the estate. As a result, holders of Class 3 Claims do not
hold secured claims. If allowed, holders of Class 3 Claims will be
paid in full from the net sales proceeds of the shop yard parcel,
with 4% per annum accrued interest, after payment in full of the
Allowed Secured Claim of GWB. Claims in Class 3 are impaired.
* Class 4 Unsecured, Non-Priority Claims
Class 4 consists of three categories of unsecured claims: General
Claims, Mechanics' Lien Claims and IBCD Investor Claims. All Class
4 Claims are impaired.
a. The Reorganized Debtor will place $10,000 in a separate
account for creditors in Class 4.01 General Claims. Allowed claims
will be paid pro rata up to the amount of the allowed claim.
b. The Reorganized Debtor shall pay $75,000 into a separate
interest-bearing account on the Effective Date until the time when
the Claims in Class 4.02 Mechanics' Lien Claims have been allowed
or disallowed by final non-appealable orders. Each holder of claim
under Class 4.02 Mechanics' Lien Claims shall be paid a pro rata
share 30 days after the allowance date.
c. Class 4.03 IBCD Investor Claims consists of claim of the
IBCD plaintiffs aggregating at least $3.7 million pending
investigation as to the validity and amount of the claim. The
Debtor shall pay $37,000 into a separate account on the Effective
Date held until such time when the claims have been allowed or
disallowed by final non-appealable orders.
In October 2020, IBCD sued the Debtor for wrongful and fraudulent
inducement of investments in the operation of the business of IBCD
for allegedly charging IBCD above-market rents for the property
lease, with a claim aggregating at least $3.7 million.
* Class 5 Equity Interests will be canceled and terminated. The
Plan Sponsor shall make a new value contribution for $200,000 on
the Effective Date in exchange for 100% of interests in the
Reorganized Debtor.
A copy of the Disclosure Statement is available for free at
https://bit.ly/3oUCvcO from PacerMonitor.com.
About Integrated AG XI
Scottsdale, Ariz.-based Integrated AG XI, LLC filed a Chapter 11
petition (Bankr. D. Ariz. Case No. 21-00414) on July 9, 2018. In
its petition, the Debtor disclosed $33,909,241 in assets and
$20,701,272 in liabilities. Bryan Hepler, an authorized
representative, signed the petition. Judge Daniel P. Collins
oversees the case. Burch & Cracchiolo, P.A., serves as the Debtor's
bankruptcy counsel.
J.S. CATES: Wins Cash Collateral Access Thru June 9
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota has
authorized J.S. Cates Construction, Inc. to use cash collateral on
an interim basis pending a final hearing.
The Debtor is authorized to use cash collateral to the extent set
forth in this table:
May 17- May 24- May 31- June 7-
Use of Cash May 23 May 30 June 6 June 13 Total
----------- ------- ------- ------- ------- -----
Payroll 1,950 4,031 4,031 4,031 14,043
Payroll taxes 741 1,532 1,532 1,532 5,337
Bank service
charge 10 10 10 10 40
Meals and
equipment 36 36 36 36 144
Insurance-
liability and
group benefits 1140 1140 1140 1140 4,560
Insurance-
officer's life 162 162 162 162 648
Licenses and fees 39 39 39 39 156
Office expenses 110 110 110 110 440
Advertising
and promotions 25 25 25 25 100
Administrative
Assistance 28 28 28 28 112
Rentals 0 0 0 0 0
Subscriptions 0 0 0 0 0
Auto expenses 488 488 488 488 1,952
Telephone 175 175 175 175 700
Repairs and
Maintenance 62 62 62 62 248
Utilities 109 109 109 109 436
Travel 0 0 0 0 0
------- ------- ------- ------- -----
Total Use of Cash 5,075 7,947 7,947 7,947 28,916
As adequate protection for the Debtor's use of cash collateral, the
Debtor is authorized to grant any creditor having an interest in
cash collateral a replacement lien in the debtor's post-petition
assets of the same type and nature as subject to the pre-petition
liens. The liens will have the same priority and affect as such
lien creditors held on the prepetition property of the debtor and
are granted only to the extent of the diminution in value of the
creditors' interest in pre-petition collateral.
As additional adequate protection, the Debtor is authorized to
grant any creditor having an interest in cash collateral a
replacement lien in the debtor's real estate in secondary position
to any existing mortgages and only to the extent of the diminution
in value of such creditors' interest in pre-petition collateral not
otherwise protected by replacement liens granted in the Debtor's
post-petition assets of the same type and nature as subject to the
pre-petition liens.
As additional adequate protection, the Debtor is authorized to (a)
maintain insurance on all the property in which all secured
creditors claim a security interest; (b) pay all post-petition
federal and state taxes, including timely deposit of payroll taxes;
(c) provide all secured creditors, upon reasonable notice, access
during normal business hours for inspection of their collateral and
the debtor's business records; and (d) deposit all cash proceeds
and income into a Debtor-in-Possession Account.
The replacement liens of the secured creditors are deemed properly
perfected without any further act or deed on the part of the debtor
or the creditor.
A final telephonic hearing on matter is scheduled for June 9, 2021
at 10 a.m.
A copy of the order is available for free at https://bit.ly/3fgTByu
from PacerMonitor.com.
About J.S. Cates Construction
J.S. Cates Construction, Inc., f/d/b/a J.S. Cates Companies, filed
a Chapter 11 petition (Bankr. D. Minn. Case No. 21-40881) on May
17, 2021 in the U.S. Bankruptcy Court for the District of
Minnesota.
In the petition signed by Jeffrey S. Cates, president & CEO, the
Debtor disclosed $1,153,474 in total assets and $1,767,454 in
estimated liabilities.
Judge Kathleen H. Sanberg is assigned to the case.
LARKIN HOFFMAN DALY & LINDGREN LTD is the Debtors counsel.
JMP HOSPITALITY: May Use Cash Collateral Thru Final Hearing Date
----------------------------------------------------------------
Judge John W. Kolwe of the U.S. Bankruptcy Court for the Western
District of Louisiana authorized JMP Hospitality, Inc., d/b/a
Holiday Inn Express, to use cash collateral to pay its ordinary and
necessary post-petition operating expenses, pursuant to the budget,
through the final hearing on the cash collateral request.
The Court directed the Debtor to pay lender Wilmington Trust,
National Association monthly adequate protection payments for
$46,535 (for debt service at the non-default rate and amounts to
fund the tax, insurance and FF&E escrow accounts held by the
Lender) within 5 days after entry of the Court order and on the
15th day of each succeeding month until confirmation of the
Debtor's reorganization plan or further orders of the Bankruptcy
Court.
The Lender is granted a valid, binding, enforceable, senior,
perfected post-petition security interest in all of the collateral
and cash collateral. The Lender's post-petition liens shall not be
subordinated to or made pari passu with any other lien unless
ordered by the Court
Wilmington Trust, as Trustee for registered holders of RBS
Commercial Funding Inc., Commercial Mortgage Pass-Through
Certificates, Series 2014-C21, asserts $3,653,488 in principal
amount as of April 28, 2021, as owed by the Debtor, plus interest,
late fees, default interest, yield maintenance and attorneys'
fees.
The Court also ruled that:
* the Debtor shall open and maintain one DIP account for PIP
improvements and one DIP account for Court-approved operating,
payroll and any other expenses of the Debtor's estate;
* the Debtor shall transact all of its revenues, cash receipts
and disbursements through the DIP accounts;
* the Debtor shall deposit $700,000 into the PIP DIP Account
within five business days of the entry of the current interim order
to begin funding the anticipated PIP requirements of Holiday Inn
for its "Blue" upgrades for the extension of the franchise license;
* the Debtor may pay the $55,000 required to apply for an
extension of the Debtor's Holiday Inn franchise agreement and PIP
expenditures from the Debtor's PIP DIP Account, provided that the
Debtor shall obtain the Lender's approval to pay contractors from
the PIP DIP Account;
* the Debtor may pay bills incurred by Driftwood Special
Servicing, LLC due to vendors during the period that Driftwood
operated the hotel facility as state court keeper for the Hotel,
which bills are understood to be in excess of the budget;
* the Debtor shall deposit all remaining hurricane damage
insurance proceeds in a designated account held by the Lender, and
the Debtor may request the Lender's approval to pay contractors
from those insurance proceeds;
* all post-petition fees owed by the Debtor to Holiday
Hospitality Franchising, LLC pursuant to the Holiday Inn Express &
Suites Hotel Relicensing License Agreement dated January 26, 2011
(between HHF, as licensor, and the Debtor, as licensee), shall be
paid in full on a monthly basis and in the ordinary course; and
* the Debtor may not pay any of its professional fees from the
cash collateral absent further Court order.
A copy of the order is available for free at https://bit.ly/3wlqeka
from PacerMonitor.com.
Final hearing on the cash collateral request is set for June 23,
2021 at 10:30 am.
Counsel for Wilmington Trust, National Association, as Trustee for
registered holders of RBS Commercial Funding Inc., Commercial
Mortgage Pass-Through Certificates, Series 2014-C21:
John M. Landis, Esq.
J. Dalton Courson, Esq.
Stone Pigman Walther Wittmann L.L.C.
909 Poydras Street, Suite 3150
New Orleans, LA 70112
Telephone: (504) 581-3200
Facsimile: (504) 581-3361
Email: jlandis@stonepigman.com
dcourson@stonepigman.com
About JMP Hospitality, Inc.
JMP Hospitality, Inc., is the fee simple owner of a Holiday Inn
Express hotel valued at $5 million and situated at 402 North MLK
Blvd, in Lake Charles, Louisiana. JMP Hospitality filed a Chapter
11 petition (Bankr. W.D. La. Case No. 21-20122) on April 29, 2021.
In the petition signed by Jyotsna Bhakta, president, the Debtor
disclosed $6,225,452 in total assets and $4,466,198 in total
liabilities.
WADE N KELLEY, LLC is the Debtor's counsel. Judge Robert R.
Summerhays is assigned to the case.
JUST ENERGY: Court Extends Stay Period to Sept. 30, 2021
--------------------------------------------------------
Luzi Ann Javier of Bloomberg News reports that Just Energy, a
retail electricity and natural gas provider pushed into bankruptcy
by the Texas blackouts, said the Ontario Superior Court of Justice
has extended the stay period under the Companies' Creditors
Arrangement Act to Sept. 30, 2021.
The company said it's is using the extended stay period to focus on
growing the business and to continue engaging with key
stakeholders, with a view of implementing a value maximizing
emergence plan.
The company continues to explore options regarding invoices
received from the Energy Reliability Council of Texas related to
the Texas extreme weather event in February 2021.
About Just Energy Group
Just Energy Group Inc. (TSX:JE; NYSE:JE) --
https//www.justenergy.com/ -- is a retail energy provider
specializing in electricity and natural gas commodities and
bringing energy-efficient solutions and renewable energy options to
customers. Currently operating in the United States and Canada,
Just Energy serves residential and commercial customers. Just
Energy is the parent company of Amigo Energy, Filter Group Inc.,
Hudson Energy, Interactive Energy Group, Tara Energy, and
terrapass.
On March 9, 2021, Just Energy Group Inc., Just Energy Corp.,
Ontario Energy Commodities Inc., Universal Energy Corporation, Just
Energy Finance Canada ULC, Hudson Energy Canada Corp., Just
Management Corp., Just Energy Finance Holding Inc., 11929747 Canada
Inc., 12175592 Canada Inc., JE Services Holdco I Inc., JE Services
Holdco II Inc., 8704104 Canada Inc., Just Energy Advanced Solutions
Corp., Just Energy (U.S.) Corp., Just Energy Illinois Corp, Just
Energy Indiana Corp., Just Energy Massachusetts Corp., Just Energy
New York Corp., Just Energy Texas I Corp., Just Energy, LLC, Just
Energy Pennsylvania Corp., Just Energy Michigan Corp., Just Energy
Solutions Inc., Hudson Energy Services LLC, Hudson Energy Corp.,
Interactive Energy Group LLC, Hudson Parent Holdings LLC, Drag
Marketing LLC, Just Energy Advanced Solutions LLC, Fulcrum Retail
Energy LLC, Fulcrum Retail Holdings LLC, Tara Energy, LLC, Just
Energy Marketing Corp., Just Energy Connecticut Corp., Just Energy
Limited, Just Solar Holdings Corp., and Just Energy (Finance)
Hungary ZRT filed for protection under the Companies' Creditors
Arrangement Act ("CCAA") before the Ontario Superior Court of
Justice (Commercial List).
Just Energy Group Inc. and its affiliates filed petitions under
Chapter 15 of the Bankruptcy Code in the United States (Bankr. S.D.
Tex. Lead Case No. 21-30823) on March 9, 2021, to seek recognition
of the Canadian proceedings.
FTI Consulting Canada Inc. has consented to act as monitor in the
CCAA proceeding. BMO Capital Markets has been engaged as financial
advisor, Osler, Hoskin & Harcourt LLP and Fasken Martineau DuMoulin
LLP are legal advisors in Canada, Kirkland & Ellis LLP and Jackson
Walker LLP are legal advisors in the United States.
KLAUSNER LUMBER: Unsecureds to Recoup 58.1% to 100% in Plan
-----------------------------------------------------------
Klausner Lumber One, LLC, and the Official Committee of Unsecured
Creditors filed, on May 21, 2021, a Disclosure Statement explaining
the First Amended Joint Chapter 11 Plan of Klausner Lumber One,
LLC.
The Debtor's Chapter 11 Plan incorporates a Plan Settlement, which
effects the allowance, compromise, treatment and satisfaction of
all Claims asserted -- aggregating $180 million -- or which may be
asserted by Florida Sawmills and the affiliates in the Debtor's
Chapter 11 case.
The Plan contemplates the sale of substantially all of the Debtor's
assets to the successful bidder, Binder Beteiligungs AG, acting
through its affiliate Timber One Acquisition Holdings LLC, for the
cash purchase price of $61 million, plus certain assumed
liabilities, pursuant to the modified Binder Asset Purchase
Agreement.
The Plan Settlement Agreement is predicated on the estimation that
the Net Distribution Proceeds available for distributions under the
Plan will be approximately $30 million.
Salient terms of the Plan Settlement:
A. Payment of Net Distribution Proceeds at $30 million
* Class 4 Florida Sawmills Deficiency/Unsecured Claims shall
receive $19 million.
* Class 5 General Unsecured Claims shall receive a pro-rata
distribution of $7.2 million of Net Distribution Proceeds.
* Class 6 Affiliate Unsecured Claims shall receive $3.8 million
of Net Distribution Proceeds.
However, if the total Allowed Class 5 General Unsecured Claims is
less than $7.2 million (in which case holders of Allowed Class 5
Claims will receive 100% recovery of their claims), the excess of
Class 5 Distribution Amount over the total Allowed Class 5 General
Unsecured Claims will be distributed as follows:
-- the first up to $200,000 will be added to the Class 6
Distribution Amount bringing Class 6 Claims total recovery to a
possible maximum amount of $4 million, and
-- any excess amount above $200,000 will be split equally
between the Class 4 Distribution Amount and the Class 6
Distribution Amount
B. Net Distribution Proceeds in Excess of $30 million
In the event the Net Distribution Proceeds exceeds $30 million, the
Class 4 Distribution Amount will be increased by the first
additional $1 million of Net Distribution Proceeds (i.e., Net
Distribution Proceeds between $30 million and $31 million) to a
maximum possible amount of $20 million. Thereafter, Net
Distribution Proceeds in excess of $31 million shall be split
equally (e.g., 33% to each Class) among the Class 4 Distribution
Amount, the Class 5 Distribution Amount, and the Class 6
Distribution Amount until the Class 5 General Unsecured Claims are
fully paid.
If the Class 5 Distribution Amount exceeds the total amount of
Allowed Class 5 General Unsecured Claims as a result of this
provision, the excess shall be split equally among only the Class 4
Distribution Amount and the Class 6 Distribution Amount.
C. Net Distribution Proceeds Less than $30 million
If the Net Distribution Proceed is less than $30 million,
distributions of the Available Net Distribution Proceeds to each of
Class 4, Class 5 and Class 6 will be proportionally reduced, as
follows:
* 63.33% to Class 4 Florida Sawmills Deficiency/Unsecured
Claims;
* 24% to Class 5 General Unsecured Claims; and
* 12.67% to Class 6 Affiliate Unsecured Claims.
D. Allowance of Claims
i. In full settlement of the Florida Sawmills Claim, the Florida
Sawmills Claim shall be an Allowed FS Deficiency/Unsecured Claim in
Class 4 under the Plan for $76,410,414; provided, however, that
total distribution for Allowed Claims in Class 4 shall be limited
to $19 million, if the Net Distribution Proceeds to be distributed
under the Plan is $30 million.
ii. In full settlement of the Affiliate Claims against the Debtor:
* certain claims are waived and withdrawn, and shall not be
Allowed.
* Claims 168, Claim 169, Claim 179, Claim 180, Claim 181, Claim
182, and Claim 194 shall be Allowed Affiliate Unsecured Claims in
Class 6 for $65,972,335, in the aggregate, provided that the total
distribution for Class 6 Allowed Claims shall be limited to $3.8
million if the Net Distribution Proceeds is $30 million;
* Allowed Subordinated Claims in Class 7 under the Plan
aggregating $36,546,504 shall receive no distributions under the
Plan on account of such Allowed Subordinated Claims.
The Affiliate Claims comprise all Claims filed against the Debtor
by all Persons related to Alpha Privatstiftung, Fritz Klausner
Holzindustrie GmbH, and Klausner Holzindustrie GmbH & Co. KG.
The Debtor, as of the Petition Date, was 100% owned by non-debtor
Klausner Holding USA, Inc, which was 100% owned by non-debtor KNB
GmbH (Austria). KNB GmbH, in turn, was 100% owned by non-debtor
Alpha Privatstiftung (Austria).
Florida Sawmills and the affiliates have consented to release the
Debtor and its officers, among others, from all actual or possible
claims, costs, causes of action, or any liability on the Effective
Date, pursuant to the release provisions of the Plan Settlement.
On the Effective Date, the Plan Administrator shall assume control
over the Post-Confirmation Estate and shall be authorized to
continue the usual and ordinary operations of the Debtor in the
ordinary course of the Debtor’s business and the liquidation of
the Post-Confirmation Estate.
A copy of the Amended Plan, with Settlement, is available for free
at https://bit.ly/2REtKri from Donlin Recano, claims agent.
Other Classified Claims Under the Plan
Each of these Classes of Claims shall receive 100% recovery under
the Plan:
* Class 1A Florida Sawmills (FS) Secured Claims;
* Class 1B Affiliate Secured Claims;
* Class 1C Other Secured Claims;
* Class 2 Priority Claims;
* Class 3A WARN Act Class Settlement Claims; and
* Class 3B Non-WARN Act Class Settlement Claims.
Allowed Class 5 General Unsecured Claims, estimated to be between
$6.3 and $12.4 million, shall receive pro rata distribution at $7.2
million of net distribution proceeds, or a 58.1% recovery.
However, if the total amount of the Allowed Class 5 General
Unsecured Claims is less than $7.2 million, the distribution to
Class 5 results in 100% recovery to Allowed Claims in Class 5.
Classes 3A, 3B, 4, 5, 6, and 7 are entitled to a vote on the Plan.
Completed ballots must be received by 5 p.m., prevailing Eastern
Time, on June 24, 2021.
A copy of the Distribution Summary under the Plan is available for
free at https://bit.ly/2StHNj8 from Donlin Recano, claims agent.
Confirmation hearing is set for July 1, 2021 at 9:30 a.m.,
prevailing Eastern Time. Objections to Plan confirmation must be
filed on or before June 24, 2021 at 4:00 p.m., prevailing Eastern
Time.
A copy of the Disclosure Statement is available for free at
https://bit.ly/3wERgDn from Donlin Recano, claims agent.
About Klausner Lumber One
Klausner Lumber One, LLC, is a privately-held company in the lumber
and plywood products manufacturing industry. It is 100% owned by
non-debtor Klausner Holding USA, Inc.
Klausner Lumber One sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 20-11033) on April 30,
2020. At the time of the filing, Debtor disclosed assets of between
$100 million and $500 million and liabilities of the same range.
Judge Karen B. Owens oversees the case.
The Debtor has tapped Westerman Ball Ederer Miller Zucker &
Sharfstein, LLP as its bankruptcy counsel; Morris, Nichols, Arsht &
Tunnell, LLP as local counsel; Asgaard Capital, LLC, as
restructuring advisor; and Cypress Holdings, LLC, as investment
banker.
The Office of the U.S. Trustee appointed a committee to represent
unsecured creditors in the Debtor's Chapter 11 case. The committee
tapped Foley & Lardner LLP and Faegre Drinker Biddle & Reath LLP as
its counsel.
LA DHILLON: July 1 Plan Confirmation Hearing Set
------------------------------------------------
On May 17, 2021, debtor La Dhillon Investments, LLC filed with the
U.S. Bankruptcy Court for the Western District of Louisiana an
amended disclosure statement with respect to an amended plan.
On May 20, 2021, Judge John S. Hodge approved the disclosure
statement and ordered that:
* June 24, 2021, is fixed as the last day for filing written
acceptances or rejections of the plan.
* June 24, 2021, is fixed as the last day for filing written
acceptances or rejections of the plan.
* June 30, 2021, is fixed as the deadline for the proponent of
the plan to file a tabulation of ballots accepting or rejecting the
plan; and a declaration or affidavit of compliance with 11 USC §
1129.
* July 1, 2021, at 10:00 a.m. is fixed for the hearing on
confirmation of the plan. The hearing will be held at the United
States Courthouse, Third Floor Courtroom, 201 Jackson Street,
Monroe, Louisiana, 71201.
A full-text copy of the order dated May 20, 2021, is available at
https://bit.ly/2SyFo77 from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Bradley L. Drell
Heather M. Mathews
GOLD, WEEMS, BRUSER, SUES & RUNDELL
P.O. Box 6118
Alexandria, LA 71307-6118
Tel: (318) 445-6471
Fax: (318) 445-6476
E-mail: bdrell@goldweems.com
About La Dhillon Investments
La Dhillon Investments, LLC, based in Ruston, LA, filed a Chapter
11 petition (Bankr. W.D. La. Case No. 20-30840) on Sept. 14, 2020.
In the petition signed by Devinder Singh, owner, the Debtor was
estimated to have $0 to $50,000 in assets and $1 million to $10
million in liabilities. The Hon. John S. Hodge presides over the
case. Gold Weems Bruser Sues & Rundell, serves as bankruptcy
counsel to the Debtor.
LATAM AIRLINES: Campania de Seguros, AerCap Out as Panel Members
----------------------------------------------------------------
The U.S. Trustee for Region 2 disclosed in a court filing that as
of May 26, these creditors are the remaining members of the
official committee of unsecured creditors in the Chapter 11 cases
of LATAM Airlines Group S.A. and its affiliates:
1. Bank of New York Mellon
Indenture Trustee for the 7.00% Senior Notes Due 2026
240 Greenwich Street
New York, New York 10286
Attention: Gary S. Bush, Vice President
Telephone: (212) 815-2747
2. Aircastle Limited
201 Tresser Blvd., Suite 400
Stamford, Connecticut 06901
Attention: Guy Bacigalupi
Telephone: (203) 504-1020
3. Sindicato De Empresa de Pilotos
De Latam Airlines Group S.A.
Cruz del Sur 133 Office 302
Las Condes, Santiago, Chile
Attention: Daniel Javier Bontempi Fernandez, President
Telephone: +562 2723 5095
4. Lufthansa Technik Aktiengesellschaft
Weg beim Jager 193
22335Hamburg, Fed.Rep.ofGermany
Attention: Jens Fischer, Senior Manager
Telephone: +49-40-5070-2709
5. Repsol, S.A.
Av. Victor Andres Belaunde 147 Torre 5
Piso 3 San Isidro, Lima, Peru
Attention: Eliana Flores Rios
Head of Aviation America
Telephone: +51 996413784
Campania de Seguros de Vida Consorcio Nacional de Seguros S.A. and
AerCap Holdings N.V. were previously identified as members of the
creditors committee. Their names no longer appear in the new
notice.
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados,
is the committee's Brazilian counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.
LG ORNAMENTALS: Has Until August 23 to File Plan & Disclosures
--------------------------------------------------------------
Judge Marian F. Harrison of the U.S. Bankruptcy Court for the
Middle District of Tennessee has entered an order within which the
deadline for Debtor LG Ornamentals, LLC for filing a Chapter 11
Plan and Disclosure Statement shall be extended 90 days to August
23, 2021.
A full-text copy of the order dated May 20, 2021, is available at
https://bit.ly/3vrgFzX from PacerMonitor.com at no charge.
Attorney for the Debtor:
Steven L. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
618 Church Street, Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 255-4516
Email: slefkovitz@lefkovitz.com
About LG Ornamentals
LG Ornamentals, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 20-03560) on July 29,
2020, listing under $1 million in both assets and liabilities.
Judge Charles M. Walker oversees the case. Steven L. Lefkovitz,
Esq., at Lefkovitz & Lefkovitz, PLLC, represents Debtor as legal
counsel.
LIGHTHOUSE RESOURCES: Bankruptcy Moots Its Fight for Coal Permit
----------------------------------------------------------------
Law360 reports that the acting solicitor general told the U.S.
Supreme Court it should reject Montana and Wyoming's fight to
overturn Washington's denial of a water quality certificate for a
proposed coal export facility because the project owner sold the
project site in its bankruptcy proceedings.
The high court in October 2020 sought the opinion of the United
States on whether it should hear, as a matter of original
jurisdiction, Montana and Wyoming challenge of Washington's
rejection of a Clean Water Act Section 401 permit for Lighthouse
Resources Inc.'s coal export project.
About Lighthouse Resources
Lighthouse Resources Inc. is an owner and operates two coal mines
located in Wyoming and Montana, delivering low sulfur,
subbituminous coal to both domestic and export customers. It also
owns and operates the Millennium Bulk Terminal in Longview,
Washington. The Company is widely recognized for its extraordinary
performance in both safety and environmental stewardship. Its
flagship project is the development of a trade route for coal from
the Rocky Mountain region of the United States to demand centers in
Asia.
Utah-based Lighthouse Resources and 13 subsidiaries, including
Decker Coal Company, filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 20-13056) on Dec. 3, 2020.
Lighthouse Resources was estimated to have $100 million to $500
million in assets and liabilities as of the filing.
The Debtors tapped JACKSON KELLY PLLC as general bankruptcy counsel
and BDO USA LLP as restructuring advisor. POTTER ANDERSON &
CORROON LLP is the local bankruptcy counsel. LANG LASALLE
AMERICAS, INC., is the marketer and seller of assets related to the
dock facility owned by Millennium Bulk Terminals-Longview, LLC.
ENERGY VENTURES ANALYSIS is the marketer and seller of Debtors'
coal mining assets. STRETTO is the claims agent.
LIVINGSCAPES LLC: Has Until Aug. 23 to File Plan & Disclosures
--------------------------------------------------------------
Judge Marian F. Harrison has entered an order within which the
deadline for debtor Livingscapes, LLC for filing a Chapter 11 Plan
and Disclosure Statement shall be extended 90 days to August 23,
2021.
A full-text copy of the order dated May 20, 2021, is available at
https://bit.ly/3uu0lNA from PacerMonitor.com at no charge.
Attorney for Debtor:
Steven L. Lefkovitz, Esq.
Lefkovitz & Lefkovitz, PLLC
618 Church Street, Suite 410
Nashville, TN 37219
Tel: (615) 256-8300
Fax: (615) 255-4516
Email: slefkovitz@lefkovitz.com
About Livingscapes LLC
Livingscapes, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 20-03561) on July 29,
2020, listing under $1 million in both assets and liabilities.
Judge Charles M. Walker oversees the case. Steven L. Lefkovitz,
Esq., at Lefkovitz & Lefkovitz represents Debtor as legal counsel.
LOMPA RANCH: Seeks Approval to Hire Timothy Thomas as New Counsel
-----------------------------------------------------------------
Lompa Ranch East Hills, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Nevada to hire the Law Office of Timothy
Thomas, LLC as its new bankruptcy counsel.
The firm's services include:
a. representing the Debtor in negotiations with creditors;
b. preparing a plan of reorganization and taking legal steps to
protect the Debtor's rights under the Bankruptcy Code;
c. performing an analysis of asset valuation and claims filed
against the Debtor; and
d. performing an analysis of claims held by the Debtor and
advising the Debtor regarding its duties under the Bankruptcy Code,
the Bankruptcy Rules and the U.S. trustee's guidelines.
Timothy Thomas, Esq., the firm's attorney who will be handling the
case, will be paid at the rate of $400 per hour. The hourly rate
for paralegals is $150.
The retainer fee is $10,000.
Mr. Thomas disclosed in a court filing that his firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Timothy P. Thomas, Esq.
Law Office of Timothy P. Thomas, LLC
1771 E. Flamingo Rd. Ste. 212-B
Las Vegas, NV 89119
Tel: (702) 227-0011
Fax: (702) 227-0334
Email: tthomas@tthomaslaw.com
About Lompa Ranch East Hills
Lompa Ranch East Hills, LLC, a Las Vegas-based company engaged in
activities related to real estate, filed a petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
21-11161) on March 11, 2018. Jaimee Yoshizawa, manager, signed the
petition. At the time of the filing, the Debtor disclosed $1
million to $10 million in assets and $1 million to $10 million in
liabilities. Judge Natalie M. Cox oversees the case. Law Office
of Timothy P. Thomas, LLC represents the Debtor as legal counsel.
LW RETAIL: Wins Cash Collateral Access Thru June 25
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York has
authorized LW Retail Associates LLC, on an interim basis, to use
the cash collateral in which National Bank of New York City asserts
an interest in the ordinary course of business in accordance with
the budget through June 25, 2021.
LW Retail asserts that the value of its estate will be maximized by
the continuation of the Debtor as a going concern, and the use of
the Collateral is essential to such operation.
On October 2, 2015, the Debtor entered into an Amended and Restated
Mortgage Note with NBNYC, pursuant to which NBNYC extended credit
to the Debtor in the amount of $6,250,000 at a variable interest
rate of 3.5% with monthly payments in the amount of $28,246.89.
Payments under the Note have been set using a 30-year amortization
schedule, with a maturity date of November 1, 2020. The current
unpaid balance is approximately $5,636,717.53. While the Note
expired by its own terms, NBNYC extended the Note's term for an
additional 12 months; the new maturity date is November 1, 2021.
To secure the Debtor's obligations under the Note, on October 2,
2015, the Debtor and NBNYC entered into an Agreement of Assumption
of Note and Mortgage Consolidation of Notes and Mortgages and
Modification of the Consolidated Mortgage which grants NBNYC a
mortgage and security interest in the Debtor's assets.
The Debtor states the grant of security to NBNYC pursuant to the
Note was perfected by virtue of the filing of a UCC-1 financing
statement which was filed on October 5, 2015.
To secure the Debtor's obligations under the Note, on October 2,
2015, the Debtor and NBNYC entered into an Assignment of Leases and
Rents pursuant to which the Debtor assigned to NBNYC its rights in
all existing and future leases, rents, claims arising from any
rejection of any lease in bankruptcy, lease guaranties, proceeds
from the sale of the foregoing.
Additionally, as of the Petition Date, the Board of Managers of
Loft Space Condominium filed Assessment Liens on the Debtor's four
commercial condominium units, pursuant to which the Board has
asserted additional disputed assessments against the Debtor.
The Debtor agrees and acknowledges that NBNYC has a lien and
security interest in the Collateral by virtue of the filing of its
UCC-1 financing statement which has been continued by subsequent
filings and thus is duly perfected, valid, existing, and legally
enforceable.
Meanwhile, the Debtor disputes the Board's lien in all regards and
disputes that the Board has any interest in the Cash Collateral.
With respect to its bid to use cash collateral, the Debtor said
that, in addition to the existing rights and interests of NBNYC and
the Board in the Collateral and for the purpose of adequately
protecting their interests from collateral diminution, NBNYC and
the Board are granted replacement liens in all of the Debtor's
pre-petition and post-petition assets and proceeds, including the
Cash Collateral and the proceeds of the foregoing, to the extent
that such prior liens were valid, perfected and enforceable as of
the Petition Date, and in the amount of such Collateral
Diminution.
As further adequate protection of NBNYC's interests, the Debtor
will make monthly adequate protection payments to NBNYC in the
amount provided for in the underlying loan documents which are at
the non-default contract rate of interest.
The Court's interim order provides for further adequate protection
of New York City Department of Tax and Finance's interests. The
Order provides the Debtor will make monthly adequate protection
payments to NYCDTF in the amount of $1,284.66 per month and the
payment is deemed to satisfy the provisions of 11 U.S.C. section
362(d)(3)(B).
A further interim hearing on the Debtor's request is scheduled for
June 25 at 10:30 a.m.
A copy of the order is available for free at https://bit.ly/2QTIx0E
from PacerMonitor.com.
About LW Retail Associates LLC
LW Retail Associates, LLC, owns in fee simple interest four
condominium units in New York valued by the Company at $12.20
million in the aggregate. LW Retail Associates filed a Chapter 11
petition (Bankr. E.D.N.Y. Case No. 17-45189) on Oct. 5, 2017. In
the petition signed by Louis Greco, manager, the Debtor disclosed
$12.64 million in assets and $6.25 million in liabilities. LW
Retail considers itself a Single Asset Real Estate as defined in 11
U.S.C. Section 101(51B).
Judge Elizabeth S. Stong oversees the case.
Dawn Kirby, Esq., at DelBello Donnellan Weingarten Wise &
Wiederkehr, LLP, is the Debtor's counsel. Goldberg Weprin Finkel
Goldstein LLP, is the special litigation counsel.
MALLINCKRODT PLC: Ch. 11 Trustee Hearing Scheduled for Confirmation
-------------------------------------------------------------------
Law360 reports that a group of plaintiffs alleging claims against
bankrupt pharmaceutical company Mallinckrodt PLC will have their
motion seeking appointment of a Chapter 11 trustee in the case
heard during the debtor's plan confirmation hearing, a Delaware
judge ruled Wednesday, May 26, 2021.
During a virtual hearing, U.S. Bankruptcy Judge John T. Dorsey said
the trustee motion filed by plaintiffs alleging Mallinckrodt
engaged in anti-competitive practices when pricing its Acthar gel
products shouldn't be heard on an expedited basis because it raises
issues inextricably linked with the Debtor's proposed plan of
reorganization.
About Mallinckdrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
As of March 27, 2020, the Company had $10.17 billion in total
assets, $8.27 billion in total liabilities, and $1.89 billion in
total shareholders' equity.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware in the U.S. (Bankr. D.
Del. Lead Case No. 20-12522) to seek approval of a restructuring
that would reduce total debt by $1.3 billion and resolve
opioid-related claims against the Company.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Latham & Watkins LLP, Ropes & Gray LLP and Wachtell, Lipton, Rosen
& Katz are serving as counsel to the Company, Guggenheim
Securities, LLC, is serving as investment banker and AlixPartners
LLP is serving as restructuring advisor to Mallinckrodt. Hogan
Lovells is serving as counsel with respect to the Acthar Gel
matter. Prime Clerk LLC is the claims agent.
On April 20, 2021, the Debtors filed their Plan of Reorganization
and the Disclosure Statement related thereto. The Bankruptcy Court
will hold a hearing to consider approval of the Disclosure
Statement on May 26, 2021, at 1 p.m. (prevailing Eastern Time)
before the Honorable John T. Dorsey.
MALLINCKRODT PLC: HHS Objects to Disclosure Statement
-----------------------------------------------------
The United States of America, of behalf of its federal health
agencies (i) the United States Departments of Health & Human
Services (HHS), (ii) Veterans Affairs (VA), (iii) the Defense
Health Agency (DHA), and (iv) HHS's Indian Health Services (IHS)
complained that Mallinckrodt PLC and its debtor-affiliates have
failed to update their Disclosure Statement to include a
description of the Opioid Trust Consideration allocation.
The HHS Centers for Medicare & Medicaid Services (CMS), VA, DHA,
and IHS -- collectively, the FHCA -- have recovery claims against
the Debtors under the Medical Care Recovery Act (MCRA) and the
Medicare Secondary Payer statute and implementing regulations (MSP)
for reimbursement of medical services provided and costs expended
by the FHCA for beneficiaries under their respective health
insurance programs, including Medicare and TRICARE.
"The Plan provides only that the FHCA claims would be classified as
"non-State Governmental Opioid Claims" and that the Opioid Trust
would purport to release the Debtors, Reorganized Debtors and any
Protected Party from any FHCA claims or liabilities, including
those that arise under the MCRA and MSP," said Mary Schmergel of
the United States Department of Justice. As a result, the proposed
treatment of the FHCA's MSP and MCRA claims under the Plan remains
unknown, the counsel said.
The Objector emphasized that the Debtors are a "primary plan" under
the Medicare Secondary Payer statute and implementing regulations
(MSP) and may not avoid their reimbursement obligations to the
Medicare program.
A copy of the objection is available for free at
https://bit.ly/3flQqVY from Prime Clerk, claims agent.
The United States Departments of Health & Human Services (HHS);
Veterans Affairs (VA); the Defense Health Agency (DHA); and HHS's
Indian Health Services (HIS), are represented by:
Ruth A. Harvey
Margaret M. Newell
Mary A. Schmergel
Jason S. Greenwood
Attorneys for the United States
Commercial Litigation Branch
Civil Division
United States Department of Justice
P.O. Box 875
Ben Franklin Station
Washington D.C. 20044
Telephone: (202) 307-0183
Email: mary.schmergel@usdoj.gov
About Mallinckdrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
As of March 27, 2020, the Company had $10.17 billion in total
assets, $8.27 billion in total liabilities, and $1.89 billion in
total shareholders' equity.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware in the U.S. (Bankr. D.
Del. Lead Case No. 20-12522) to seek approval of a restructuring
that would reduce total debt by $1.3 billion and resolve
opioid-related claims against the Company.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Latham & Watkins LLP, Ropes & Gray LLP and Wachtell, Lipton, Rosen
& Katz are serving as counsel to the Company, Guggenheim
Securities, LLC, is serving as investment banker and AlixPartners
LLP is serving as restructuring advisor to Mallinckrodt. Hogan
Lovells is serving as counsel with respect to the Acthar Gel
matter. Prime Clerk LLC is the claims agent.
On April 20, 2021, the Debtors filed their Plan of Reorganization
and the Disclosure Statement related thereto. The Bankruptcy Court
will hold a hearing to consider approval of the Disclosure
Statement on May 26, 2021, at 1 p.m. (prevailing Eastern Time)
before the Honorable John T. Dorsey.
MARX STEEL: Wins Cash Collateral Access Thru July 2
---------------------------------------------------
Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern
District of Texas, Houston Division, authorized Marx Steel, LLC to
use cash collateral until July 2, 2021.
Judge Isgur approved the Eleventh Interim Budget, which declared
total expenses in the amount of $13,830, consisting of general and
administrative expenses, U.S. Trustee Fees, and Professional Fees
for the Debtor's counsel, Accountant and UCC Attorney.
The Debtor's use of Cash Collateral under the prior budgets and the
Eleventh Interim Budget will be on a rolling basis through the
expiration of the Order such that unused amounts from the prior
budgets may be spent during the time period covered by the Eleventh
Interim Budget for the categories and in the amounts previously
agreed, unless otherwise extended between the parties.
The Debtor's counsel is directed to contact the Court to schedule
any further hearings regarding additional use of cash collateral.
About Marx Steel LLC
Marx Steel, LLC is a steel fabricator and plate processing company
that manufactures sub-components and sells raw steel plate material
to companies in the oil & gas, gas compression and construction
industries.
Marx Steel, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 20-31849) on March 19,
2020, listing under $1 million in both assets and liabilities.
The Hon. Marvin Isgur oversees the case.
Melissa A. Haselden, Esq. at Hoover Slovacek LLP represents the
Debtor as counsel.
Jason Medley, Esq. at Clark Hill Strasburger represents Amerisource
Funding Inc.
METRO-GOLDWYN-MEYER: Anchorage Capital Profits $2 Billion on Deal
-----------------------------------------------------------------
Katherine Doherty of Bloomberg News reports that Kevin Ulrich's
Anchorage Capital Group is set to make a profit of about $2 billion
in the sale of movie company Metro-Goldwyn-Mayer to Amazon.com
Inc., according to people with knowledge of the matter.
The investment firm holds a roughly 30% stake in the company that's
worth about $2.5 billion in the sale, said the people, who asked
not to be identified discussing a private matter. Anchorage
invested around $500 million in MGM over a decade ago and helped
restructure the company in bankruptcy.
About Metro-Goldwyn-Mayer
Metro-Goldwyn-Mayer Inc. (MGM) operates as an entertainment
company. The Company produces and distributes motion pictures,
television programming, home video, interactive media, and music.
MGM, whose world-famous corporate signature is its roaring lion, is
a onetime major studio founded 96 years ago that today rates as a
large Hollywood independent. MGM -- http://www.mgm.com/-- owns the
world's largest library of modern films, comprising around 4,100
titles. The foundation is the historic United Artists catalog,
which includes the James Bond movies, the "Rocky" titles and
numerous Oscar-winning films.
Metro-Goldwyn-Mayer Inc. and 160 of its affiliates on Nov. 3, 2010,
filed Chapter 11 cases (Bankr. S.D.N.Y. Lead Case No. 10-15774), to
seek confirmation of their "pre-packaged" plan of reorganization.
Skadden, Arps, Slate, Meagher & Flom LLP, in New York, served as
bankruptcy counsel to the Debtors. Moelis & Company was the
financial advisor.
Financial firms acquired ownership of MGM out of the 2010
bankruptcy. At present, MGM's leading investor is Anchorage Capital
Partners, which reportedly holds a 32% stake in the studio.
* * *
In October 2020, S&P Global Ratings lowered its issuer credit
rating on U.S.-based Metro-Goldwyn-Mayer Inc. (MGM) to 'B' from
'B+', its issue-level rating on the first-lien debt to 'BB-' from
'BB', and its issue-level rating on the second-lien debt to 'CCC+'
from 'B-'. The outlook is stable.
"The downgrade reflects MGM's sustained high leverage as a result
of ongoing delays in its theatrical releases and studio productions
due to the coronavirus pandemic, and our expectation that the
company will not be able to sustain leverage below our thresholds
for the 'B+' rating long term. We expect MGM's S&P adjusted
leverage to remain elevated above 10x in 2020, decline to the
high-3x area in 2021 when theatrical releases and studio
productions are expected to fully resume, and increase above 4.5x
in 2022 as EBITDA from Bond rolls off and the company pursues
additional content investments."
MYSTIC WINE: Gets Cash Collateral Access Thru July 23
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Miami Division, has authorized Mystic Wine & Spirits, Inc. to use
cash collateral on an interim basis through July 23, 2021.
The Debtor and Florida Capital Bank, N.A. have advised the Court
they have not been able to reach agreement on a final order for use
of FCB's cash collateral, but agree to continue to maintain the
status quo under the same terms and conditions of the Interim Order
Authorizing the Use of Cash Collateral for a period of 60 days or
an earlier time as the Debtor and FCB can reach agreement on a
final order; there being no objections by the U.S. Trustee, the
Subchapter V Trustee or any other interested party.
If, prior to the expiration of the 60-day period, the Debtor and
FCB reach agreement on the terms and conditions of a final order,
they may set the matter down for hearing at which time the Court
will consider the entry of an agreed final order on the Debtor's
authority to use cash collateral.
A further telephonic hearing on the matter is scheduled for July 14
at 2 pm.
A copy of the order is available for free at https://bit.ly/3oVOt5K
from PacerMonitor.com.
About Mystic Wine & Spirits
Mystic Wine & Spirits, Inc. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
21-12894) on March 29, 2021, listing under $1 million in both
assets and liabilities.
Judge A. Jay Cristol oversees the case.
Jeffrey N. Schatzman, Esq., at Schatzman & Schatzman, P.A.,
represents the Debtor as legal counsel.
NASHEF LLC: May Use Cash Collateral Thru July 23
------------------------------------------------
Judge Christopher J. Panos authorized Nashef LLC to use cash
collateral through the earlier of July 23, 2021 or a further Court
order on the cash collateral motion, up to the amounts specified in
the budget (plus up to 10% allowance per line item), or as
consented to in writing by the U.S. Trustee and the Debtor's
secured creditors. Hometown Bank; Harvard Funding LLC; the
Internal Revenue Service; the Massachusetts Department of
Unemployment Assistance; and the Massachusetts Department of
Revenue may assert liens and security interests in certain of the
Debtor's assets.
The secured creditors are granted a continuing post-petition
replacement lien and security interest in all post-petition
property of the estate of the same type which they held validly
perfected liens and security interests as of the Petition Date, to
the extent of diminution in the value of the collateral, arising
from the Debtor's use of such collateral.
Hearing on the motion will continue on July 22, 2021 at 10:30 a.m.
by telephone. Objections to the Debtor's continued access to cash
collateral must be filed by July 20 at 4:30 p.m.
A copy of the order is available for free at https://bit.ly/3494SKP
from PacerMonitor.com.
About Nashef LLC
Nashef LLC, a privately held company in Fitchburg, Mass.
Nashef LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Mass. Case No. 20-40199) on Feb. 6, 2020. In the
petition signed by Eyad Nashef, manager, the Debtor disclosed $170
in assets and $1,559,000 in liabilities.
Judge Christopher J. Panos oversees the case.
The Debtor is represented by James P. Ehrhard, Esq. at Ehrhard &
Associates, P.C.
NATIONAL SMALL BUSINESS: Wins Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Colombia has
authorized National Small Business Alliance, Inc. to use the cash
collateral of Venture Resources Consulting, LLC for so long as it
remains under the possession of the Trustee.
The Debtor is directed to furnish to Marc Albert, the Subchapter V
Trustee-in-possession, budgets and reports as the Trustee may
request from time to time and pay $2,500 to the Trustee, to be held
by the Trustee for the benefit of the Debtor's estate, every
calendar week.
As adequate protection for the Debtor's post-petition use of VRC's
Cash Collateral, VRC is given a valid, binding, enforceable, and
automatically perfected postpetition lien on, and security interest
in, all property and assets of the Debtor, excluding claims and
causes of action arising under Chapter 5 of the United States
Bankruptcy Code and similar state or federal law dealing with the
avoidability of transfers of assets or incurring of obligations,
subject only to the carve-out.
To the extent that the adequate protection granted above proves
insufficient to secure diminution in the values of the Cash
Collateral, VRC is given a superpriority claim, to the extent
permitted by Section 507(b) of the Bankruptcy Code.
VRC agrees that its liens and rights to repayment will be
subordinated to (i) all trustee fees lawfully due and owing to the
Trustee for his services from the date of the commencement of the
case forward; and (ii) all professional fees approved by the Court
pursuant to controlling law and owing to the Trustee, his lawyers,
or any other professionals he may be granted leave to employ, from
the date on which the Debtor ceases to be a debtor-in-possession
through the earlier of (a) the date on which the Debtor is restored
to being a debtor-in-possession; (b) the date thirty days after the
date on which a final fee application is filed by the Trustee; (c)
the date on which the case is converted to a proceeding under
Chapter 7 of the Bankruptcy Code; (d) the date on which the case is
dismissed; or (e) the date on which the Court grants VRC relief
from the Carve-Out pursuant to a motion filed and noticed for
hearing.
The Carve-Out will not be construed as an obligation of VRC to pay
any fees, costs, or monies herein and, to the contrary, the
Carve-Out is merely an agreement between VRC and the Trustee
through which the Trustee and certain professionals will be
afforded priority payment of their respective fees and such payment
may come from monies that otherwise constitute the cash collateral
of VRC.
A copy of the order is available for free at https://bit.ly/2TaGINC
from PacerMonitor.com.
About National Small Business Alliance
National Small Business Alliance, Inc. --
http://www.nsbamembers.org-- is a small business owners'
membership association that provides a variety of critical services
to thousands of small businesses.
National Small Business Alliance sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D.D.C. Case No. 21-00031) on Jan.
31, 2021. Michael Holleran, director and chief executive officer,
signed the petition. At the time of the filing, the Debtor
disclosed $1 million to $10 million in both assets and liabilities.
Judge Elizabeth L. Gunn oversees the case.
Law Group International Chartered, led by Eric Nwaubani, Esq.,
serves as the Debtor's legal counsel.
Marc Albert is the Chapter 11 trustee appointed in the Debtor's
bankruptcy case. The trustee is represented by Stinson, LLP.
Venture Resources Consulting, LLC, as creditor, is represented by:
Maurice B. VerStandig, Esq.
The VerStandig Law Firm, LLC
1452 W. Horizon Ridge Pkwy, #665
Henderson, NV 89012
Tel: (301) 444-4600
Fax: (301) 444-4600
E-mail: mac@mbvesq.com
Marc Albert, as Subchapter V Trustee, is represented by:
Marc E. Albert, Esq.
Stinson LLP
1775 Pennsylvania Avenue NW, Suite 800
Washington, DC 20006
E-mail: marc.albert@stinson.com
NEWSTREAM HOTEL: Seeks to Hire Spencer Fane as Legal Counsel
------------------------------------------------------------
Newstream Hotel Partners–LIT LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Texas to hire Spencer
Fane, LLP to serve as its lead bankruptcy counsel in its Chapter 11
case.
The firm will be paid at these rates:
Partners $425 - $750 per hour
Of Counsel $200 - $650 per hour
Associates $280 - $430 per hour
Paralegals $75 - $320 per hour
Jason Kathman, Esq., a partner at Spencer Fane, disclosed in a
court filing that his firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Gerrit M. Pronske, Esq.
Jason P. Kathman, Esq.
Megan F. Clontz, Esq.
Spencer Fane LLP
5700 Granite Parkway, Suite 650
Plano, TX 75024
Phone: 972-324-0300
Tel: 972-324-0301
Email: gpronske@spencerfane.com
Email: jkathman@spencerfane.com
Email: mclontz@spencerfane.com
About Newstream Hotel Partners-Lit
Newstream Hotel Partners-LIT, LLC filed a Chapter 11 petition
(Bankr. E.D. Texas Case No. 21-40561) on April 16, 2021. In the
petition signed by Timothy Nystrom, manager, the Debtor disclosed
total assets of up to $10 million and total liabilities of up to
$50 million. Judge Brenda T. Rhoades oversees the case. Spencer
Fane, LLP represents the Debtor as legal counsel.
NEWSTREAM HOTEL: Taps InnVentures IVI to Manage Hotel
-----------------------------------------------------
Newstream Hotel Partners–LIT, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Texas to hire
Seattle-based management company, InnVentures IVI LP.
The Debtor needs a management company to oversee the day-to-day
management and operation of the Four Points Hotel by Sheraton, a
full-service hotel in Little Rock, Ark.
InnVentures will be compensated as follows:
a. A periodic base management fee in the amount of 3 percent
of the gross revenues for each accounting period;
b. An incentive fee to be paid to the firm for each fiscal
year equal to 15 percent of the amount by which operating profit
for such fiscal year exceeds Owner's Priority.
c. A monthly fee of $1,500 in consideration for all of the
accounting services to be rendered by InnVentures.
Kory Hill, director at InnVentures, disclosed in a court filing
that the firm does not represent any entity or individual adverse
to the Debtor and its bankruptcy estate.
The firm can be reached through:
Kory Hill
InnVentures
16400 Southcenter Parkway, Suite 100
Seattle, WA 98188
Tel: 206.431.8000
Email: contact@innventures.com
About Newstream Hotel Partners-Lit
Newstream Hotel Partners-LIT, LLC filed a Chapter 11 petition
(Bankr. E.D. Texas Case No. 21-40561) on April 16, 2021. In the
petition signed by Timothy Nystrom, manager, the Debtor disclosed
total assets of up to $10 million and total liabilities of up to
$50 million. Judge Brenda T. Rhoades oversees the case. Spencer
Fane, LLP represents the Debtor as legal counsel.
PIAGGIO AMERICA: Has Until Aug. 11 to File Plan & Disclosures
-------------------------------------------------------------
Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern
District of Florida has entered an order within which Debtor
Piaggio America, Inc. shall file a Plan and Disclosure Statement on
or before August 11, 2021.
A full-text copy of the order dated May 20, 2021, is available at
https://bit.ly/3bXBefX from PacerMonitor.com at no charge.
About Piaggio America
Piaggio America Inc. -- http://www.piaggioaerospace.it/-- is in
the business of aerospace product and parts manufacturing. It
designs, develops and supports unmanned aerial systems, business,
special missions and ISR aircraft and aero engines.
Piaggio America filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Calif. Case No. 21
13491) on April 13, 2021. Paolo Ferreri, chief executive officer,
signed the petition. In the petition, the Debtor disclosed $1
million to $10 million in assets and $10 million to $50 million in
liabilities. Judge Erik P. Kimball presides over the case.
Holland & Knight, LLP and Sonoran Capital Advisors, LLC serve as
the Debtor's legal counsel and financial advisor, respectively.
PUERTO RICO: PREPA Goes Private to Save Island
----------------------------------------------
Michelle Kaske and Jim Wyss of Bloomberg New report that Puerto
Rico will take a major step toward transforming its
government-owned power provider next week as Luma Energy is set to
begin operating and managing the utility, part of the
commonwealth’s plan to rehabilitate its aging system and end
chronic outages.
Luma is poised on June 1 to take over transmission and distribution
for Puerto Rico's Electric Power Authority, which is the main
supplier of electricity for the island's 3.3 million residents and
is one of the two largest U.S. public power utilities by customer
base. Prepa, as the agency is known, will retain ownership of its
infrastructure.
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: Defeats State's Opioid Settlement Vote Pushback
--------------------------------------------------------------
Jeremy Hill of Bloomberg News reports that Purdue Pharma defeats
state pushback to opioid settlement vote.
Purdue Pharma LP's plan to unload opioid claims cleared a key
hurdle Wednesday, May 27, 2021, with the OxyContin maker overcoming
an objection from more than 20 U.S. states.
After a six-hour hearing, U.S. Bankruptcy Judge Robert Drain said
an outline of Purdue's settlement plan should be ready to send to
creditors for a vote by next week. Judge Drain pushed aside
objections from a group of state attorneys general who argued the
plan is so flawed it should be stopped in its tracks.
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.
QUINCY BAG: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------
The U.S. Trustee for Region 12 on May 25 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Quincy Bag Company, Inc.
About Quincy Bag Company
Quincy Bag Company, Inc., a company that manufactures plastic bags,
filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Iowa Case No. 21-00202) on March 18,
2021. At the time of filing, the Debtor estimated $100,001 to
$500,000 in assets and 1 million to $10 million in liabilities.
Judge Thad J. Collins oversees the case. Robert J. Murphy Law
Offices serves as the Debtor's legal counsel.
RENNOVA HEALTH: Delays Filing of Form 10-Q Due to COVID-19
----------------------------------------------------------
Rennova Health, Inc. filed with the Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its Quarterly Report on Form 10-Q for the three-month
period ended March 31, 2021.
"The COVID-19 pandemic and the steps taken by governments to seek
to reduce the spread of the virus continue to have a severe impact
on the economy and the health care industry in particular. Our
hospitals and the rest of our business continue to experience
disruptions due to the pandemic. Rennova Health, Inc. will not be
able to file its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2021 within the prescribed time period due to the
additional time required by the Company and its auditors to
complete their respective procedures in light of the circumstances
related to the COVID-19 pandemic, which could not be eliminated
without unreasonable effort or expense," the Company said in the
filing.
About Rennova Health
Rennova Health, Inc. -- http://www.rennovahealth.com-- operates
three rural hospitals and a physician's office in Tennessee and a
physician's office in Kentucky and provides diagnostics and
supportive software solutions to healthcare providers.
Rennova Health reported a net loss of $18.34 million for the year
ended Dec. 31, 2020, compared to a net loss of $48.03 million for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$12.26 million in total assets, $61.28 million in total
liabilities, and a total stockholders' deficit of $49.02 million.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 15, 2021, citing that the Company has recognized
recurring losses and negative cash flows from operations, and
currently has minimal revenue producing activities. This raises
substantial doubt about the Company's ability to continue as a
going concern.
RENNOVA HEALTH: Gets $1 Million From Preferred Stock Offering
-------------------------------------------------------------
Rennova Health, Inc. effected the second closing in its offering of
shares of Series O Convertible Redeemable Preferred Stock. The
offering is pursuant to the terms of the previously-announced
Securities Purchase Agreement, dated as of May 10, 2021, between
the Company and certain existing institutional investors of the
Company.
The Purchase Agreement provides for the issuance of up to 4,400
shares of Series O Preferred Stock at four closings of 1,100 shares
each. The first closing occurred on May 10, 2021 and the second
occurred on May 18, 2021. The Company received proceeds of
$1,000,000 at the second closing. The subsequent closings depend
upon the Company's satisfaction of certain conditions, including
effecting certain specified transactions to make additional shares
of common stock available for issuance by the Company. There can
be no assurance that the Company will satisfy all or any of these
conditions or that any additional closings will take place. In
addition, the Purchase Agreement restricts the Company's use of any
proceeds of the issuances of the Series O Preferred Stock,
including to payroll and tax arrears and legal and accounting
expenses.
The shares of Series O Preferred Stock were issued in the second
closing in reliance on the exemption from registration contained in
Section 4(a)(2) of the Securities Act of 1933, as amended, and by
Rule 506 of Regulation D promulgated thereunder as a transaction by
an issuer not involving any public offering.
About Rennova Health
Rennova Health, Inc. -- http://www.rennovahealth.com-- operates
three rural hospitals and a physician's office in Tennessee and a
physician's office in Kentucky and provides diagnostics and
supportive software solutions to healthcare providers.
Rennova Health reported a net loss of $18.34 million for the year
ended Dec. 31, 2020, compared to a net loss of $48.03 million for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$12.26 million in total assets, $61.28 million in total
liabilities, and a total stockholders' deficit of $49.02 million.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 15, 2021, citing that the Company has recognized
recurring losses and negative cash flows from operations, and
currently has minimal revenue producing activities. This raises
substantial doubt about the Company's ability to continue as a
going concern.
RESOURCES LIMITED: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 4 on May 25 disclosed in a court filing
that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Resources Limited, LLC.
About Resources Limited
Resources Limited, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. W.Va. Case No. 21-20089) on April 19,
2021. At the time of the filing, the Debtor disclosed total assets
of up to $50,000 and total liabilities of up to $10 million. Judge
B. Mckay Mignault oversees the case. The Law Office of John
Leaberry serves as the Debtor's legal counsel.
SAND DOLLAR: Seeks to Tap Peter Thomson as Local Counsel
--------------------------------------------------------
Sand Dollar Charters, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Peter Thomson,
Esq., an attorney practicing in New Smyrna Beach, Fla.
Mr. Thomson will assist Robert Lampl, Esq., the Debtor's lead
bankruptcy attorney, as local counsel. He will be paid at the rate
of $300 per hour.
The attorney did not receive a retainer for the Debtor's Chapter 11
case although he is owed fees for pre-bankruptcy legal services.
Mr. Thomson can be reached at:
Peter H. Thomson, Esq.
Thomson Law Offices, LLC
5201 S. Atlantic Ave., Unit 404
New Smyrna Beach, FL 32169
Phone: (386) 410-4633
Email: pht@thomsonlawofficellc.com
About Sand Dollar Charters
Sand Dollar Charters, LLC filed a Chapter 11 petition (Bankr. M.D.
Fla. Case No. 21-01957) on April 28, 2021. At the time of the
filing, the Debtor disclosed total assets of up to $50,000 and
total liabilities of up to $1 million. Robert O Lampl, Esq., at
Robert O Lampl Law Office, and Peter H. Thomson, Esq., at Thomson
Law Offices LLC, serve as the Debtor's bankruptcy counsel and local
counsel, respectively.
SHAMROCK FINANCE: Examiner Taps Riemer & Braunstein as Counsel
--------------------------------------------------------------
Kevin Clancy, the court-appointed examiner of Shamrock Finance,
LLC's estate, seeks approval from the U.S. Bankruptcy Court for the
District of Massachusetts to hire Riemer & Braunstein, LLP as his
legal counsel.
The firm's services include:
(a) advising the examiner with respect to his powers and
duties under the Bankruptcy Code;
(b) attending meetings and negotiating with representatives of
the Debtor, creditors and other parties-in-interest and responding
to inquiries arising in the course of the examiner's
court-authorized investigation;
(c) advising the examiner regarding his ability to initiate
actions identified in the course of the examiner's court-authorized
investigation;
(d) preparing legal papers; and
(e) other related legal services that may be necessary and
proper in the Debtor's Chapter 11 proceeding.
Riemer & Braunstein will be paid based upon its normal and usual
hourly billing rates.
Anthony Stumbo, Esq., a senior partner at Riemer, disclosed in a
court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Dennis E. McKenna, Esq.
Anthony B. Stumbo, Esq.
Steven E. Fox, Esq.
Riemer & Braunstein, LLP
100 Cambridge Street, 22nd Floor
Boston, MA 02114
Tel: 617-523-9000
Email: dmckenna@riemerlaw.com
astumbo@riemerlaw.com
sfox@riemerlaw.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. In the
petition, the Debtor disclosed total assets of up to $10 million
and total liabilities of up to $50 million. Judge Frank J. Bailey
oversees the case.
The Debtor tapped Jeffrey D. Sternklar LLC as its bankruptcy
counsel, the Law Offices of James J. McNulty as special counsel,
and Mid-Market Management Group, Inc. as business advisor.
Kevin P. Clancy is the examiner appointed in Shamrock Finance,
LLC's bankruptcy case. The examiner is represented by Riemer &
Braunstein, LLP.
SHILO INN: Gets Cash Collateral Access Thru July 30
---------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
has authorized Shilo Inn, Ocean Shores, LLC and Shilo Inn, Nampa
Suites, LLC to use cash collateral on an interim basis in
accordance with the budget through July 30, 2021.
RSS WFCM2016NXSSWA SIOSN, LLC's predecessor in interest extended
pre-petition credit facilities to Ocean Shores and Nampa Suites,
respectively evidenced, in part, by several loan documents
including the note in the original principal amount of $9,886,941
dated November 2, 2015 executed by the Borrower in favor of NATIXIS
REAL ESTATE CAPITAL LLC, the Original Lender.
The Secured Creditor succeeded by assignment to all of the
interests of the Original Lender in the Loan Documents; and as a
result, the Secured Creditor is the current holder of the Note and
the Loan Documents.
The Debtors are in the process of reviewing and analyzing their
respective obligations under the Loan Documents and the validity,
extent and priority of Secured Creditor's interests in and to the
Debtor's assets.
The Debtors are authorized to use cash collateral to pay for the
operating expenses and costs of administration incurred by the
Debtor in accordance with the budget.
A Termination Event constitute any of these events:
a) July 30, 2021;
b) The Debtors will fail to deposit on a daily basis all cash
receipts and collections from whatever source in its post-petition
debtor-in-possession account(s);
c) Any order will be entered, other than with the consent of
the Secured Creditor, reversing, amending, supplementing, staying,
vacating, or otherwise modifying the Order in any material respect
or terminating the use of Cash Collateral by the Debtors pursuant
to the Order;
d) An application will be filed by the Debtors for the
approval of any Superpriority Claim or any lien in the Chapter 11
Case which is pari passu with or senior to the Adequate Protection
Obligations or Adequate Protection Liens, or there will be granted
any such pari passu or senior Superpriority Claim or lien in each
case, except any such Superpriority Claim or lien arising
thereunder;
e) Any order will be entered granting relief from the
automatic stay applicable under section 362 of the Bankruptcy Code
to the holder or holders of any security interest, lien or right of
setoff other than a security interest, lien or right of setoff of
the Secured Creditor, to permit foreclosure (or the granting of a
deed in lieu of foreclosure or the like), possession, set-off or
any similar remedy with respect to any Collateral or any assets of
the Debtors necessary to the conduct of its businesses;
f) Except as permitted by any order of the Court and included
in the Budget, the Debtors will make any payment in respect of a
prepetition claim;
g) (i) Ocean Shores' or Nampa Suites' chapter 11 case will be
dismissed or converted to a case under chapter 7 of the Bankruptcy
Code; or (ii) a trustee under chapter 11 of the Bankruptcy Code, a
responsible officer, or an examiner with enlarged powers relating
to the operation of the business (powers beyond those set forth in
section 1106(a)(3) and (4) of the Bankruptcy Code) under section
1106(b) of the Bankruptcy Code shall be appointed or elected in a
Chapter 11 Case;
h) Except as would not reasonably be expected, individually or
in the aggregate, to have a material adverse effect, the Debtors
fail to keep and maintain all property in good working order and
condition, ordinary wear and tear excepted;
i) The Debtors fail to maintain, with financially sound and
reputable insurance companies insurance in such amounts and against
such risks as are customarily maintained by companies of
established repute engaged in the same or similar businesses
operating in the same or similar locations and all insurance
required to be maintained pursuant to the Loan Documents, or fails
to furnish to the Secured Creditor, upon reasonable request,
information in reasonable detail as to the insurance so
maintained;
j) The Debtors fail to comply with all laws, rules,
regulations, and orders of any Governmental Authority applicable to
it, its operations or its property, except where the failure to do
so, individually or in the aggregate, would not reasonably be
expected to result in a material adverse effect, provided, that the
Debtors will be entitled to contest in good faith any laws, rules,
regulations and order of any Governmental Authority so long as,
prior to contesting such matters, the Debtors notifies and obtains
written consent of the Secured Creditor, which consent will not be
unreasonably withheld; or
k) The Debtors fail to comply with any of the terms or
conditions of the Order; provided, however, that the Secured
Creditor may waive, in writing, any Termination Event.
The Secured Creditor is entitled to adequate protection of its
interest in the Prepetition Collateral securing the Prepetition
Obligations, including Cash Collateral, for and equal in amount to
the amount of Cash Collateral used from and after the Petition
Date.
Although the Debtors contend the Secured Creditor is adequately
protected by, among other things, substantial equity cushion, the
Secured Creditor disputes the contention and argues the Debtor
cannot offer adequate protection for its use of Cash Collateral.
The Secured Creditor has, however, consented to the Debtors' use of
Cash Collateral, subject to and expressly conditioned upon the
granting of protections as provided for in the Order.
As a component of adequate protection, the Debtors will each make
monthly payments to the Secured Creditor in an amount equal to
monthly interest only payments at the contract (non-default) rate
on the principal amount of the Loan, in the amount of $30,315.42
per month for Ocean Shores and $16,323.68 for Nampa Suites,
commencing on or about June 15, 2021, and continuing monthly
thereafter on the 15th of each month through July 15, 2021. The
Secured Creditor will apply the Monthly Payments to its secured
claim in accordance with the applicable Loan Documents. Such
payments are not and will not be deemed an agreement by the Secured
Creditor to waive default interest and the Secured Creditor
reserves all rights with respect to default interest. Further, the
payments are not and will not be deemed an agreement by the Debtor
that such Monthly Payments are necessary to provide adequate
protection to the Secured Creditor and reserves all rights with
respect thereto including, without limitation, the application of
such Monthly Payments by the Secured Creditor.
In addition to the security interests preserved by section 552(b)
of the Bankruptcy Code, the Debtor grants, in favor of the Secured
Creditor and as security for all indebtedness that is owed by the
Debtor to the Secured Creditor, under the Loan Documents, but only
to the extent of the Adequate Protection Obligations, a first
priority post-petition security interest and lien in, to and
against all of the Debtor's assets, to the same priority, validity
and extent that the Secured Creditor held a properly perfected
pre-petition security interest in such assets.
The liens and security interests granted are deemed perfected
without the necessity for filing or execution of documents which
might otherwise be required under non-bankruptcy law for the
perfection of said security interests.
A further interim hearing on the Debtors' continued use of Cash
Collateral is scheduled for July 21 at 10 a.m.
A copy of the Order and the Debtors' pro forma operating statement
for the period from June 1, 2021 to July 31, 2021, prepared on cash
flow basis is available at https://bit.ly/3oSAyxs from
PacerMonitor.com.
Shilo Inn Ocean Shores, LLC projects $409,845 in gross revenues and
$365,988 in total general and administrative expenses and other
cash outflows during the two-month period. Shilo Inn Nampa Suites,
LLC projects $168,182 in gross revenues and $162,648 in total
general and administrative expenses and other cash outflows during
the two-month period.
About Shilo Inn
Hospitality companies Shilo Inn, Ocean Shores, LLC and Shilo Inn,
Nampa Suites, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Lead Case No. 20-42348) on Oct.
15, 2020.
At the time of filing, Shilo Inn, Ocean Shores disclosed up to $50
million in both assets and liabilities of the same range. Shilo
Inn, Nampa Suites disclosed $1 million to $10 million in both
assets and liabilities.
Judge Brian D. Lynch oversees the cases.
The Debtors tapped Levene, Neale, Bender, Yoo & Brill L.L.P. as
their bankruptcy counsel and Stoel Rives LLP as their local
counsel.
SIZZLER USA: Files Suit to Lift PPP Loan Application Hold
---------------------------------------------------------
Daniel Gill of Bloomberg Law reports that Sizzler USA Inc. filed a
lawsuit in a California bankruptcy court to compel the Small
Business Administration to approve its application for a second
Payment Protection Program loan. The restaurant chain should be
eligible for the new $2 million loan now that the bankruptcy court
has approved its Chapter 11 plan, but administrative holds prevent
the loan from being approved and funded, the chain said in its
complaint filed in the U.S. Bankruptcy Court for the Northern
District of California. The restaurant also filed an emergency
motion for a temporary restraining order requiring the SBA to set
aside the $2 million.
About Sizzler USA
Sizzler USA Acquisition, Inc. is a United States-based restaurant
chain with headquarters in Mission Viejo, California. It offers
steak, seafood, chicken, and burgers. Visit
https://www.sizzler.com/ for more information.
Sizzler USA Acquisition and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Lead Case No.
20-30746) on September 21, 2020. The petitions were signed by
Christopher Perkins, chief services officer.
At the time of the filing, each Debtors had estimated assets and
liabilities of $1 million to $10 million.
Sheppard, Mullin, Richter & Hampton, LLP is Debtor's legal counsel.
SMG INDUSTRIES: Incurs $3.9 Million Net Loss in First Quarter
-------------------------------------------------------------
SMG Industries, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $3.87 million on $7.60 million of revenues for the three months
ended March 31, 2021, compared to a net loss of $2.98 million on
$4.36 million of revenues for the three months ended March 31,
2020.
As of March 31, 2021, the Company had $27.24 million in total
assets, $41.76 million in total liabilities, and a total
stockholders' deficit of $14.51 million.
Net cash used in operating activities was $1,055,810 for the
quarter ended March 31, 2021, compared to $2,546,469 for the
quarter ended March 31, 2020, including $530,013 of cash provided
by discontinued operations during the quarter ended March 31, 2021,
and $599,754 of cash used in discontinued operations during the
quarter ended
March 31, 2020.
For the quarter ended March 31, 2021, net cash used in continuing
operating activities of $1,585,823 consisted of net loss from
continuing operations of $3,808,568, plus $1,706,170 of non-cash
items, consisting primarily of depreciation and amortization of
$1,418,401, amortization of deferred financing costs of $245,722
and amortization of right of use assets - operating leases of
$88,589, less $516,575 changes in operating assets and other
operating activities.
For the quarter ended March 31, 2020, net cash used in continuing
operating activities of $1,946,715 consisted of net loss from
continuing operations of $2,745,907, plus $669,190 of non-cash
items, consisting primarily of depreciation and amortization of
$542,493, amortization of deferred financing costs of $80,954 and
amortization of right of use assets - operating leases of $33,786,
plus $130,002 changes in operating assets and other operating
activities.
Net cash used in investing activities was $35,000 for the quarter
ended March 31, 2021, compared to $6,405,046 for the quarter ended
March 31, 2020, related to payment of a portion of the
consideration for the disposal of MG Cleaners LLC.
For the quarter ended March 31, 2021, net cash used in investing
activities consisted of $35,000 paid to the buyer of MG Cleaners.
For the quarter ended March 31, 2020, net cash used in investing
activities consisted of $6,320,168 cash paid for the acquisition of
5J Entities and $84,878 of net capital expenditures.
Net cash provided by financing activities was $1,181,614 for the
quarter ended March 31, 2021, compared to $9,442,012 for the
quarter ended March 31, 2020, including $150,173 cash used in
discontinued operations and $799,754 cash provided by discontinued
operations, respectively.
For the quarter ended March 31, 2021, net cash provided by
financing activities consisted of net proceeds from notes payable
of $1,874,002 and proceeds from convertible notes payable of
$150,000, offset by payments on notes payable of $338,001 and net
payments on secured lines of credit of $354,214.
For the quarter ended March 31, 2020, net cash provided by
financing activities consisted of net proceeds from notes payable
of $1,952,248, proceeds from convertible notes payable of
$1,350,000 and net proceeds from secured line of credit of
$5,719,410, offset by payments on notes payable of $139,842 and
payments of deferred financing costs of $239,558.
"Our cash flows from operations are primarily funded through our
financing activities, including our accounts receivable line of
credit facility, notes and loans, stock sales, issuing our stock
for services and various leases. Currently, we believe we will
need to continue to utilize lines of credit, borrowings, and stock
sales to sufficiently sustain our current level of operations for
the next 12 months. At present, we believe the industry and
general domestic economic activity is still depressed given current
commodity prices and the global COVID-19 pandemic that is prevalent
in the markets we operate. We likely will require additional
capital to maintain or expand operations. Additionally, we believe
any material acquisition of another operating company would require
additional outside capital consisting of debt or equity. Failure
to secure additional funds could significantly hamper our ongoing
operations particularly if a down cycle in our industry continues
further. As the business cycle improves, and the pandemic
dissipates in the markets we serve, we plan to improve our cash
flows provided in operating activities by focusing on increasing
sales by increasing utilization of the assets we have acquired and
offering higher value services that receive higher gross margins.
However, there can be no assurances given of industry improvement,
pandemic relief or improved cash flows of our business," SMG
Industries said.
"Historically, we have funded our capital expenditures internally
through cash flow, leasing, and financing arrangements. We intend
to continue to fund future capital expenditures through cash flow,
as well as through capital available to us pursuant to our line of
credit, capital from the sale of our equity securities and through
commercial leasing and financing programs," the Company said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1426506/000110465921071058/tm2111737d1_10q.htm
About SMG Industries
Headquartered in Houston, Texas, SMG Industries Inc. --
www.SMGIndustries.com -- is a growth-oriented transportation
services company focused on the domestic logistics market. The
Company's primary business objective is to grow its operations and
create value for its stockholders through organic growth and
strategic acquisitions.
SMG Industries reported a net loss of $15.87 million for the year
ended Dec. 31, 2020, compared to a net loss of $3.98 million for
the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had
$27.42 million in total assets, $38.24 million in total
liabilities, and a total stockholders' deficit of $10.82 million.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
April 19, 2021, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
SOUTHERN ROCK: Taps Professional Management Systems as Accountant
-----------------------------------------------------------------
Southern Rock & Lime, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Professional
Management Systems, Inc. as its accountant.
The Debtor needs an accountant to provide tax advice, accounting
and bookkeeping services, and complete any necessary tax forms.
Georgia Evans, an accountant at Professional Management Systems,
disclosed in a court filing that the firm neither holds nor
represents an interest adverse to the Debtor and its estate.
The firm can be reached through:
Georgia Evans
Professional Management Systems, Inc.
512 Pennsylvania Ave
Lynn Haven, FL 32444
Phone: +1 850-381-1213
About Southern Rock & Lime
Southern Rock & Lime, Inc. filed for Chapter 11 protection (Bankr.
N.D. Fla. Case No. 21-50021) on Feb. 24, 2021. James E. Clemons,
Jr., president, signed the petition. At the time of the filing,
the Debtor disclosed $1 million to $10 million in both assets and
liabilities. Judge Karen K. Specie oversees the case. Bruner
Wright, PA and Professional Management Systems, Inc. serve as the
Debtor's legal counsel and accountant, respectively.
STEREOTAXIS INC: Stockholders Approve All Proposals at Meeting
--------------------------------------------------------------
Stereotaxis, Inc. held its Annual Meeting of Shareholders on May
20, 2021, at which the stockholders:
(a) elected Robert J. Messey and David L. Fischel as a Class II
directors to serve until the Company's 2024 annual meeting,
or until their respective successors are elected and
qualified;
(b) ratified the appointment of Ernst & Young LLP as the
Company's independent registered public accounting firm for
fiscal year 2021;
(c) approved an amendment to the Stereotaxis, Inc. 2012 Stock
Incentive Plan to increase the number of shares authorized
for issuance thereunder by 4,000,000 shares; and
(d) approved the issuance of up to 13,000,000 shares under the
2021 CEO Performance Share Unit Award.
About Stereotaxis
Based in St. Louis, Missouri, Stereotaxis, Inc. --
http://www.stereotaxis.com-- designs, manufactures and markets an
advanced robotic magnetic navigation system for use in a hospital's
interventional surgical suite, or "interventional lab", that the
Company believes revolutionizes the treatment of arrhythmias by
enabling enhanced safety, efficiency, and efficacy for
catheter-based, or interventional, procedures. The Company's
primary products include the Genesis RMN System, the Odyssey
Solution, and related devices. The Company also offers to its
customers the Stereotaxis Imaging Model S x-ray System.
Stereotaxis reported a net loss of $6.65 million for the year ended
Dec. 31, 2020, compared to a net loss of $4.59 million for the year
ended Dec. 31, 2019. As of March 31, 2021, the Company had $58.82
million in total assets, $18.47 million in total liabilities, $5.58
million in convertible preferred stock, and $34.77 million in total
stockholders' equity.
STOP & GO: Business Income to Fund Plan; Files Amended Plan
-----------------------------------------------------------
Stop & Go Airport Shuttle Service, Inc., submitted an Amended
Disclosure Statement in conjunction with the Amended Plan of
Reorganization on May 20, 2021.
The year 2020 started well for Stop & Go, but the COVID-19 pandemic
dealt a serious blow to the company's business. With the near
elimination of air travel, and the closing of public venues and
cancellation of concerts, proms, and weddings, the company suffered
a near-total reduction in its income. This led to the filing of
this Chapter 11 case on September 29, 2020. The company reduced its
fleet to two limousines and, with the gradual reopening of public
events and the increase in air travel, the company has seen an
increase in revenue and a return to profitability. Stop & Go has
reported a cash profit in excess of $1,600/month, on average, since
the filing of this case. The debtor believes that its business will
continue to earn a profit and be in a position to make all payments
required by the Plan.
The Debtor obtained a loan under the federal Payroll Protection
Program from First Secure Community Bank, Joliet, Illinois, in the
amount of $6,240.00, on May 21, 2020. The loan is guaranteed by the
federal Small Business Administration. The Debtor scheduled First
Secure Community Bank as a creditor, but as of the date of this
Disclosure Statement, the creditor has not filed a claim. Under the
plan, the creditor will not receive payment because the amount of
the debt was listed as "Unknown" in Schedule F. The Debtor
understands that the loan may be forgivable under certain
circumstances, including the fact that the Debtor used the loan
proceeds to pay salaries and wages.
The Debtor currently has only one employee, its president, Vincent
Rover. The Debtor has two drivers that work as independent
contractors.
The Debtor's principal, Vincent Rover, filed a Chapter 7 bankruptcy
in this District on August 28, 2020, as Case No. 20 B 16345. Mr.
Rover properly listed his equity interest in the Debtor in his
schedules, and the Debtor's counsel and the Chapter 7 trustee
communicated about this Chapter 11. The trustee never took any
action to change management of the Debtor, and the Chapter 7
trustee filed a no-asset report on October 21, 2020. The Chapter 7
case was closed on April 12, 2021, and by operation of law the
ownership of the Debtor re-vested in Mr. Rover on that date.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* CLASS IV consists all other general unsecured claims. The
total amount of these claims is $56,494.15. These claims will
receive a 10% distribution, totaling $5,649.42, in equal quarterly
payments commencing on the first day of the calendar quarter
following the Effective Date of the Plan, and continuing for five
years. The quarterly payment on all claims in this class will be
approximately $282.48/quarter.
* The Debtor has one shareholder, Vincent Rover, who owns 100%
of the stock. Vincent Rover is the president of the Debtor and will
continue to be employed as president. The Debtor intends that,
after confirmation of a Plan, it will pay Mr. Rover a salary of
$900-1,250/week on an ongoing basis, once funds are available. The
Plan provides for the current shareholder of the Debtor, Vincent
Rover, to retain his equity interest in the debtor corporation,
with payment of $1,000.00 in new value.
The funds for payment of Administrative Expenses, the unsecured
portion of Class I Governmental Unit Claims, and Class II Priority
Claims (the Debtor is not aware of any such priority claims) will
be obtained from funds on hand with the Debtor as of the Effective
Date of the Plan. All funds for the periodic payment of the all
claims paid under this Plan shall be obtained from the business
income of the Debtor over a period of five years.
A full-text copy of the Amended Disclosure Statement dated May 20,
2021, is available at https://bit.ly/3fMOC7I from PacerMonitor.com
at no charge.
The Debtor is represented by:
David P. Lloyd, Esq.
David P. Lloyd, Ltd.
615B S. LaGrange Rd.
LaGrange IL 60525
Phone: 708-937-1264
Fax: 708-937-1265
About Stop & Go Airport Shuttle Service
Stop & Go Airport Shuttle Service, Inc. sought protection for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill.
Case No. 20-17814) on Sept. 29, 2020, listing under $1 million in
both assets and liabilities. Judge Donald R. Cassling oversees the
case. David P. Lloyd, Ltd. is the Debtor's legal counsel.
SUNRISE REAL ESTATE: Incurs $1.6 Million Net Loss in First Quarter
------------------------------------------------------------------
Sunrise Real Estate Group, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $1.64 million on $2.36 million of net revenues for the
three months ended March 31, 2021, compared to a net loss of $1.86
million on $349,105 of net revenues for the three months ended
March 31, 2020.
As of March 31, 2021, the Company had $350.35 million in total
assets, $215.28 million in total liabilities, and $135.07 million
in total shareholders' equity.
In the first quarter of 2021, the Company's principal sources of
cash were revenues from its house sales and property management
business. Most of the Company's cash resources were used to fund
its property development investment and revenue related expenses,
such as salaries and commissions paid to the sales force, daily
administrative expenses and the maintenance of regional offices.
The Company ended the period with a cash position of $16,237,830.
The Company's operating activities used cash in the amount of
$4,523,943, which was primarily attributable to the receipts in
advance from its property development projects and payment of bonus
to one of its directors.
The Company's investing activities used cash resources of $187,579,
which was primarily attributable to the withdrawal of transactional
financial assets.
The Company's financing activities used cash resources of
$16,862,150, which was primarily attributable to restricted cash.
The potential cash needs for 2021 would include the investment of
transactional financial assets, the rental guarantee payments and
promissory deposits for various property projects as well as its
development of the Linyi project and the HATX project.
"Taking into account our cash position, available credit facilities
and cash generated from operating activities, we believe that we
have sufficient funds to operate our existing business for the next
twelve months. If our business otherwise grows more rapidly than
we currently predict, we plan to raise funds through the issuance
of additional shares of our equity securities in one or more public
or private offerings. We will also consider raising funds through
credit facilities obtained with lending institutions. There can be
no guarantee that we will be able to obtain such funds through the
issuance of debt or equity or obtain funds that are with terms
satisfactory to management and our board of directors," the Company
said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1083490/000110465921070471/tm2116074d1_10q.htm
About Sunrise Real
The principal activities of Sunrise Real Estate Group, Inc. and its
subsidiaries are real estate development and property brokerage
services, including real estate marketing services, property
leasing services; and property management services in the People's
Republic of China.
The Company reported a net loss of $4.24 million for the year ended
Dec. 31, 2020, compared to a net loss of $4.52 million for the year
ended Dec. 31, 2019.
TD HOLDINGS: Delays Filing of First Quarter Form 10-Q
-----------------------------------------------------
TD Holdings, Inc. with the Securities and Exchange Commission a
Notification of Late Filing on Form 12b-25 with respect to its
Quarterly Report on Form 10-Q for the three-month period ended
March 31, 2021.
On March 26, 2021, the Audit Committee of the Board of Directors of
TD Holdings, after discussion with the Company's management,
concluded that the Company's previously issued financial statements
contained in the Company's Quarterly Reports on Form 10-Q for the
periods ended March 31, 2020, June 30, 2020, and Sept. 30, 2020,
originally filed on June 26, 2020, Aug. 14, 2020, and Nov. 13,
2020, respectively, should no longer be relied upon.
The Company was unable to file its Quarterly Report on Form 10-Q
for the period ended March 31, 2021 on a timely basis because the
Company requires additional time to finalize the 2020 Quarterly
Reports for the Non-Reliance Periods. The Company anticipates that
it will file the Form 10-Q no later than the fifth calendar day
following the prescribed extended filing date.
As the Company is still working on finalizing the 2020 Quarterly
Reports for the Non-Reliance Periods, it is unable to state that
there will not be changes for prior periods and the Company cannot
estimate on a quantitative basis the amount of such possible
changes.
About TD Holdings
Headquartered in Beijing, People's Republic of China, TD Holdings,
Inc., (formerly known as Bat Group, Inc.) has become a used
luxurious car leasing business as well as a commodities trading
business operating in China since the disposition of its direct
loans, loan guarantees and financial leasing services to
small-to-medium sized businesses, farmers and individuals in July
2018. The Company's current operations consist of leasing of
luxurious pre-owned automobiles and operation of a non-ferrous
metal commodities trading business.
For the year ended Dec. 31, 2019, the Company incurred net loss
from continuing operations of approximately $6.94 million, and
reported cash outflows of approximately $2.17 million from
operating activities. The Company said these factors caused
concern as to its liquidity as of Dec. 31, 2019.
TEN & FREE: Wins Cash Collateral Access Thru June 4
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, has authorized Ten & Free, Inc. to use cash
collateral through June 4, 2021 in accordance with the terms and
conditions of the interim order and to pay the items on the Interim
Budget.
The Debtor has an immediate need to use the cash collateral of
Forward Financing, LLC, Fox Capital Group, Inc., Diesel Funding,
LLC, Swift Financial and the Internal Revenue Service, the Secured
Lenders, to permit the orderly continuation of the operation of its
business, to maintain business relationships with vendors,
suppliers and customers, and to satisfy other operational needs.
The Court says the creditors are adequately protected by the
limited use of cash collateral to pay only those expenses that are
actual and necessary to preserve value to the creditors.
A second interim cash collateral hearing is scheduled for June 4,
2021 at 10 am.
A copy of the order and the Debtor's budget through June 4 is
available for free at https://bit.ly/3fOG4wX from
PacerMonitor.com.
The Debtor projects total income of $55,000 and total expenses of
$45,214.98.
About Ten & Free Inc.
Ten & Free Inc., d/b/a A+ Certified Appliance, is an appliance
repair business located in Celina, Texas. The Debtor filed a
petition under Subchapter V of Chapter 11 of the Bankruptcy Code
(Bankr. E.D. Tex. Case No. 21-40734) on May 17, 2021 in the U.S.
Bankruptcy Court for the Eastern District of Texas.
On the Petition Date, the Debtor estimated up to $50,000 in assets
and between $100,001 and $500,000 in liabilities. The petition was
signed by Tyler Adkins, president.
Judge Brenda T. Rhoades oversees the case.
SPECTOR & COX, PLLC represents the Debtor as counsel.
TEXAS SOUTH: Delays Form 10-Q Filing Due to Working Capital Issues
------------------------------------------------------------------
Texas South Energy, Inc. filed with the Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its Quarterly Report on Form 10-Q for the three-month
period ended March 31, 2021. The Company was unable to complete
its preparation of its Form 10-Q in a timely matter because of
working capital issues.
The Company's Form 10-Q's for the period ended June 30, 2019, Sept.
30, 2019, March 31, 2020, June 30, 2020 and Sept. 30, 2020 and the
10-K's for Dec. 31, 2019 and Dec. 31, 2020 have not yet been
filed.
About Texas South Energy
Headquartered in Houston, Texas South Energy, Inc. is engaged in
the oil and gas business, generating or acquiring oil and gas
projects, drilling and operating the wells, and producing the oil
and gas reserves.
Texas South Energy reported a net loss of $3.11 million for the 12
months ended Dec. 31, 2018, following a net loss of $3.84 million
for the 12 months ended Dec. 31, 2017. As of March 31, 2019, the
Company had $14.73 million in total assets, $9.19 million in total
liabilities, and $5.53 million in total stockholders' equity.
LBB & Associates Ltd., LLP, in Houston, Texas, the Company's
auditor since 2013, issued a "going concern" qualification in its
report dated April 1, 2019, citing that the Company's absence of
significant revenues, recurring losses from operations, and its
need for additional financing in order to fund its projected loss
in 2019 raise substantial doubt about its ability to continue as a
going concern.
TOP FLIGHT: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------
The U.S. Trustee for Region 16 on May 26 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Top Flight Investments, LLC.
About Top Flight Investments
Top Flight Investments, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-10736) on April
26, 2021. At the time of the filing, the Debtor disclosed total
assets and liabilities of up to $50,000. Judge Victoria S. Kaufman
oversees the case. Matthew Abbasi, Esq., at Abbasi Law
Corporation, is as the Debtor's legal counsel.
TOWN SPORTS: Lenders Sued by Kennedy Lewis Over Bankruptcy Sale
---------------------------------------------------------------
Soma Biswas of The Wall Street Journal reports that Kennedy Lewis
Investment Management LLC is suing the lenders that took control of
the New York Sports Clubs and Lucille Roberts gym chains out of
bankruptcy, saying the chapter 11 sale they orchestrated left the
company in a precarious state.
Kennedy Lewis, formerly the largest single lender to the chains'
parent company Town Sports International Holdings Inc., said the
company's other lenders put together a flawed deal that fell apart,
forcing the investment firm to accept shares in a "virtually
worthless" company.
About Town Sports International
Town Sports International, LLC and its subsidiaries are owners and
operators of fitness clubs in the United States, particularly in
the Northeast and Mid-Atlantic regions. As of Dec. 31, 2019, the
Company operated 186 fitness clubs under various brand names,
collectively serving approximately 605,000 members. Town Sports
owns and operates brands such as New York Sports Clubs, Boston
Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs,
Lucille Roberts and Total Woman.
Town Sports and several of its affiliates filed for bankruptcy
protection (Bankr. D. Del. Lead Case No. 20-12168) on Sept. 14,
2020. The petitions were signed by Patrick Walsh, chief executive
officer.
The Debtors were estimated to have $500 million to $1 billion in
consolidated assets and consolidated liabilities.
The Hon. Christopher S. Sontchi presides over the cases.
Young Conaway Stargatt & Taylor, LLP, and Kirkland & Ellis LLP have
been tapped as bankruptcy counsel to the Debtors. Houlihan Lokey,
Inc. serves as financial advisor and investment banker to the
Debtors, and Epiq Corporate Restructuring LLC acts as claims and
noticing agent to the Debtors.
UP ENERGY: Changes Name After Chapter 11 Exit
---------------------------------------------
Greg Avery of Denver Business Journal reports that Colorado natural
gas company, UP Energy LLC, which is the largest natural gas
producer in Wyoming, has changed its name eight months after
emerging from bankruptcy.
The company that had been UP Energy LLC became PureWest Energy LLC
on Tuesday, announcing the name change and the ambition to be "the
most responsible and profitable natural gas company in North
America."
"We are excited to announce the change to PureWest, bringing
alignment between the company's name and the mission that our
board, leadership team and employees have for the company to
advance modern life by providing reliable, essential energy
produced in a safe, environmentally-responsible manner," said CEO
Christopher Valdez, in a press release. "This rebranding marks
another key milestone for PureWest that follows our two successful
acquisitions that consolidated operations on the Pinedale
Anticline."
PureWest Energy is producing the equivalent of more than 600
million cubic feet of natural gas daily in Wyoming, which is the
largest volume in the state, he said.
PureWest controls more than 115,000 net acres in and around
Wyoming's Jonah Fields natural gas region and the Pinedale
Anticline formation, an area of federal, state and private land
that holds one of the largest concentrations of natural gas in the
United States, according to the Bureau of Land Management.
PureWest Energy's acreage for exploration and production has grown
38% since last fall as a result of its acquisitions.
The company, which used to be called Ultra Petroleum, had moved to
the Denver metro area from Houston in 2018. It became a privately
held limited liability company that changed its name to UP Energy
LLC last 2020 after going through a Chapter 11 bankruptcy
reorganization. It shed $2 billion in debt through a four-month
restructuring that made its lenders owners of 99% of the
reorganized company.
The company was publicly traded and generated $742 million from
natural gas sales in its fiscal 2019.
It employed 151 people when it filed for bankruptcy protection.
It's not clear how many people are on PureWest's payroll today.
The company exited bankruptcy on Sept. 16 with $60 million in
funding and $100 million in available credit. It was the company's
second Chapter 11 reorganization in four years.
Valdez and a handful of key company officials were brought on to
the company a few weeks after the reorganized business exited
bankruptcy protection.
Valdez, an industry veteran, came to the company from Denver-based
Middle Fork Energy Partners, a company that he was CEO of and
co-founded in 2018 after it bought undeveloped natural gas acreage
in northeast Utah from Denver-based QEP Resources.
He previously was in management at Vantage Energy and served in
various roles at what is now Ovintiv, a Denver-based oil and gas
company that was once active in Wyoming's natural gas fields.
Earlier this 2021, PureWest Energy revealed it's working with
Denver-based Project Canary to monitor emissions from its wells and
reach the project's Trustwell certification for environmental
responsibility on all of its Wyoming natural gas production by the
end of 2022.
About UP Energy LLC
UP Energy LLC, formerly Ultra Petroleum Corp., an independent oil
and gas company, engages in the acquisition, exploration,
development, operation, and production of oil and natural gas
properties. Its principal business activities are developing its
natural gas reserves in the Green River Basin of southwest Wyoming,
the Pinedale and Jonah fields. The company was founded in 1979 and
is headquartered in Englewood, Colorado.
Ultra Petroleum Corp. and its affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 20-32631) on May 14,
2020.
The Debtor disclosed total assets of $1,450,000,000 and total debt
of $2,560,000,000 as of March 31, 2020.
The Hon. Marvin Isgur is the case judge.
The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy
counsel; JACKSON WALKER LLP as local bankruptcy counsel; CENTERVIEW
PARTNERS LLC as investment banker; and FTI CONSULTING, INC., as
financial advisor. Prime Clerk LLC is the claims agent.
US REAL ESTATE: Wins Cash Collateral Access
-------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas authorized
Eric L. Johnson, the Chapter 11 Trustee in the bankruptcy cases of
US Real Estate Equity Builder, LLC, and US Real Estate Equity
Builder Dayton, LLC, to use cash collateral on an interim basis to
pay the expenses based on the budgets and to pay the fees owed the
U.S. Trustee.
The Trustee asserts that an immediate need exists for him to use
Cash Collateral in order to continue to pay necessary and ordinary
business expenses. The Trustee further alleges that the failure of
his ability to use the Cash Collateral would immediately and
irreparably harm the Debtors, the bankruptcy estates, and their
creditors.
The Trustee is directed to file a new proposed budget at least 30
days prior to the expiration of the budget currently in place.
Additionally, during a budget period, the Trustee may file a
modified budget to reflect changes in both income and expenses of
the Debtors.
Various lenders assert a security interest in the Cash Collateral
which include PS Funding, Inc., Joseph and Carolyn Winblad, and
Anchor Loans, LP.
As additional adequate protection of the Secured Parties'
interests, and the use of the Cash Collateral, the Trustee will
make adequate protection payments to the Secured Parties in the
amounts set forth in the Budget. The Secured Parties will apply the
Adequate Protection Payments as set forth in the loan documents. In
the event the respective Secured Creditor is found not to hold a
claim secured by a first priority and unavoidable security interest
in the Cash Collateral or such claim or lien is equitably
subordinated, the Adequate Protection Payments will be subject to
disgorgement. The Adequate Protection Payments will be due the 15th
day of the month for which they are budgeted.
The Court ruled that the secured parties' respective security
interests continue in post-petition rents to the extent the
respective secured parties have a perfected security interest in
rents that constitute cash collateral.
Moreover, the Court granted the secured parties an administrative
expense claim under Section 503(b) of the Bankruptcy Code to the
extent their liens in post-petition rents prove inadequate to
protect them from a demonstrated diminution in value of their
collateral positions from the Petition Date.
The secured parties' liens and the superpriority claim, however,
will be subject to a carve out for U.S. Trustee and Court fees,
Trustees' expenses, excluding professional fees.
A final hearing on the matter is set for June 3, 2021, at 1 pm.
A copy of the order is available for free at https://bit.ly/3wyYVmC
from PacerMonitor.com.
About US Real Estate Equity Builder
US Real Estate Equity Builder LLC is primarily engaged in renting
and leasing real estate properties.
US Real Estate Equity Builder and its affiliate, US Real Estate
Equity Builder Dayton, LLC, filed voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Lead Case
No. 20-21358) on Oct. 2, 2020. Judge Robert D. Berger oversees the
cases.
At the time of filing, US Real Estate Equity Builder disclosed
$5,281,000 in assets and $13,985,020 in liabilities. US Real Estate
Equity Builder Dayton disclosed between $1 million and $10 million
in both assets and liabilities.
George J. Thomas, Esq., at Phillips & Thomas LLC, is the Debtors'
legal counsel.
The Office of the U.S. Trustee appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Sader Law Firm.
Eric L. Johnson, the court-appointed Chapter 11 trustee, is
represented by Spencer Fane LLP.
VBI VACCINES: Secures $12M Second Tranche of Debt Financing With K2
-------------------------------------------------------------------
VBI Vaccines Inc. has signed an agreement to drawdown a $12 million
second tranche under its previously announced debt financing
facility with K2 HealthVentures (K2HV), a healthcare-focused
specialty finance company. Under the terms of the debt financing
facility, dated May 22, 2020 and amended May 17, 2021, K2HV has
agreed to provide the Company up to $52 million in multiple
tranches.
The first tranche of $20 million was drawn upon closing of the
original agreement in May 2020. The second tranche, upsized to $12
million from the original $10 million, became available following
the achievement of certain clinical milestones, including the
positive 12-month overall survival data from Phase 2a (Part B) of
the Phase 1/2a study of VBI-1901 in recurrent glioblastoma (GBM)
patients, and the positive proof-of-concept data from the Phase
1b/2a study of VBI-2601 in chronic hepatitis B (HBV) patients.
"Following the achievement of key clinical development milestones
in our effort to develop treatments for GBM and chronic HBV, we are
pleased to further strengthen our balance sheet and our partnership
with the K2HV team - a team who continues to demonstrate their deep
understanding of our business and the science driving VBI," said
Jeff Baxter, VBI's president and CEO.
Two additional tranches of up to $10 million each remain drawable
in the future upon certain conditions. The first is contingent
upon achievement of a specified regulatory milestone, and the
second and final tranche will be available at the discretion of
K2HV.
About VBI Vaccines Inc.
Cambridge, Massachusetts-based VBI Vaccines Inc. --
http://www.vbivaccines.com-- is a biopharmaceutical company driven
by immunology in the pursuit of powerful prevention and treatment
of disease. Through its innovative approach to virus-like
particles, including a proprietary enveloped VLP platform
technology, VBI develops vaccine candidates that mimic the natural
presentation of viruses, designed to elicit the innate power of the
human immune system. VBI is committed to targeting and overcoming
significant infectious diseases, including hepatitis B,
coronaviruses, and cytomegalovirus (CMV), as well as aggressive
cancers including glioblastoma (GBM). VBI is headquartered in
Cambridge, Massachusetts, with research operations in Ottawa,
Canada, and a research and manufacturing site in Rehovot, Israel.
VBI Vaccines reported a net loss of $46.23 million for the year
ended Dec. 31, 2020, compared to a net loss of $54.81 million for
the year ended Dec. 31, 2019. As of March 31, 2021, the Company
had $222.89 million in total assets, $23.82 million in total
current liabilities, $19.06 million in total non-current
liabilities, and $180.01 million in total stockholders' equity.
VERTICAL MAC: Seeks Approval to Hire Moecker Auctions as Appraiser
------------------------------------------------------------------
Vertical Mac Construction, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire Moecker
Auctions, Inc. to conduct an appraisal of its personal property.
Moecker Auctions' fees for the appraisal range between $1,875 and
$2,400.
David Dybas, an appraiser at Moecker, disclosed in a court filing
that his firm is disinterested as required by Section 327(a) of the
Bankruptcy Code.
The firm can be reached through:
David D. Dybas
Moecker Auctions, Inc.
1883 Marina Mile Blvd, Suite 106
Fort Lauderdale, FL 33315
Phone: +1 954-252-2887
About Vertical Mac Construction
Vertical Mac Construction, LLC, a general contractor that
specializes in stucco installations, sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 21-01520) on April 6, 2021. At the time
of the filing, the Debtor had between $100,001 and $500,000 in both
assets and liabilities. Judge Lori V. Vaughan presides over the
case. Stichter, Riedel, Blain & Postler, P.A. serves as the
Debtor's legal counsel.
WATKINS NURSERIES: Slated to Seek Plan Confirmation on June 30
--------------------------------------------------------------
Judge Keith L. Phillips of the U.S. Bankruptcy Court for the
Eastern District of Virginia conditionally approved the Disclosure
Statement of Watkins Nurseries, Inc. and its debtor-affiliates on
May 21, 2021, allowing the Debtors to solicit votes and seek
approval of the Plan.
Judge Phillips fixed the Plan voting deadline for June 23, 2021.
A hearing on the final approval of the Disclosure Statement and
confirmation of the Plan is on June 30, 2021, at 10:30 a.m.
Objections are due June 23.
A copy of the order is available for free at https://bit.ly/3hT7SCZ
from PacerMonitor.com.
About Watkins Nurseries
Watkins Nurseries, Inc. -- http://www.watkinsnurseries.com/-- is a
wholesale and retail tree nursery, plant center, and landscape
design firm established in 1876. It specializes in field-grown
trees and shrubs that it produces on over 500 acres of farmland.
Virginias Resources Recycled, LLC -- http://www.vrrllc.com/-- is a
commercial and residential land clearing, grinding, grubbing and
logging company located in Central, Virginia.
Watkins-Amelia, LLC, is engaged in activities related to real
estate.
Watkins Nurseries, Virginias Resources and Watkins-Amelia sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va.
Lead Case No. 20-30890) on Feb. 19, 2020. At the time of the
filing, each Debtor disclosed assets of between $1 million and $10
million and liabilities of the same range.
Paula S. Beran, Esq., at Tavenner & Beran, PLC, is the Debtor's
legal counsel.
WILDWOOD VILLAGES: Gets Cash Collateral Access Thru June 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Jacksonville Division, has authorized Wildwood Villages LLC to use
cash collateral on an interim basis through June 30, 2021, in
accordance with the budget, with a 10% variance.
To adequately protect Level Four, Citizens First Bank and/or any
other potentially secured creditors in connection with the use by
the Debtor of any Cash Collateral and other property upon which
security interests and liens may have been previously granted by
the Debtor to the secured creditors, the Court confirms the grant,
assignment and pledge by the Debtor to the secured creditors a
post-petition security interest and replacement lien in the secured
creditor's Pre-Petition Collateral, any of its goods, property,
assets and interests in property in which the secured creditors may
have held a lien or security interest prior to the Petition Date.
The replacement lien will also apply to any funds recovered by the
bankruptcy estate pursuant to avoidance actions arising under
Sections 542 through 550 of the Bankruptcy Code to the extent the
secured creditor had a lien on the fund(s) prior to the Petition
Date.
As further adequate protection to Citizens First Bank (a) the
Debtor will pay all payments due to Citizens First Bank, pursuant
to the operative loan documents, and as reflected in the Budget;
(b) the Debtor will maintain and provide proof of insurance to
Citizens First Bank, upon request; and (c) Citizens First Bank
shall be entitled to reasonably inspect is collateral and the
Debtor's financial books and records that contain information
regarding Citizens First Bank's collateral, upon request. Further
adequate protection payments will be determined at the final
hearing scheduled by the Court.
As further adequate protection to Level Four (a) the Debtor will
pay all payments due to Level Four pursuant to the operative loan
documents, and as reflected in the Budget; (b) the Debtor will
maintain and provide proof of insurance to Level Four, upon
request; and (c) Level Four will be entitled to reasonably inspect
is collateral and the Debtor's financial books and records that
contain information regarding Level Four's collateral, upon
request. Further adequate protection payments will be determined at
the final hearing scheduled by the Court.
A continued hearing on the matter is scheduled June 31 at 2 p.m.
A copy of the order and the Debtor's four-week budget is available
for free at https://bit.ly/3hSYgIB from PacerMonitor.com.
The Debtor projects total income of $69,620 and total expenses of
$58,875.48 for June 2021.
About Wildwood Villages
Wildwood Villages, LLC is a Wildwood, Fla.-based company engaged in
activities related to real estate.
Wildwood Villages filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
20-02569) on Aug. 28, 2020. Jonathan Woods, manager, signed the
petition. The Debtor disclosed $3,150,861 in assets and $3,428,386
in liabilities. Matthew S. Kish, Esq., at Shapiro Blasi Wasserman
& Hermann, PA, represents the Debtor as legal counsel.
YUNHONG CTI: Incurs $380,349 Net Loss in First Quarter
------------------------------------------------------
Yunhong CTI Ltd. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $380,349
on $7.42 million of net sales for the three months ended March 31,
2021, compared to a net loss of $494,119 on $7.07 million of net
sales for the three months ended March 31, 2020.
As of March 31, 2021, the Company had $23.55 million in total
assets, $19.72 million in total liabilities, and $3.82 million in
total shareholders' equity.
The Company has a cumulative net loss from inception to March 31,
2021 of over $14 million. The accompanying financial statements
for the three months ended March 31, 2021 have been prepared
assuming the Company will continue as a going concern. The Company
said its cash resources from operations may be insufficient to meet
its anticipated needs during the next twelve months. The Company
will require additional financing to fund its future planned
operations.
"The ability of the Company to continue as a going concern is
dependent on the Company obtaining adequate capital to fund
operating losses. Management's plans to continue as a going
concern include raising additional capital through sales of equity
securities and borrowing, continuing to focus our Company on the
most profitable elements, and exploring alternative funding sources
on an as needed basis. However, management cannot provide any
assurances that the Company will be successful in accomplishing any
of its plans. The COVID-19 pandemic has impacted the Company's
business operations to some extent and is expected to continue to
do so and, in light of the effect of such pandemic on financial
markets, these impacts may include reduced access to capital. The
ability of the Company to continue as a going concern is dependent
upon its ability to successfully secure other sources of financing
and attain profitable operations. There is substantial doubt about
the ability of the Company to continue as a going concern for one
year from the issuance of the accompanying consolidated financial
statements," Yunhong said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1042187/000143774921013164/ctib20210331_10q.htm
About Yunhong CTI
Lake Barrington, Illinois-based Yunhong CTI Ltd. --
www.ctiindustries.com -- develops, produces, distributes and sells
a number of consumer products throughout the United States and in
over 30 other countries, and it produces film products for
commercial and industrial uses in the United States. Many of the
Company's products utilize flexible films and, for a number of
years, it has been a leading developer of innovative products which
employ flexible films including novelty balloons, pouches and films
for commercial packaging applications.
Yunhong CTI reported a net loss of $4.25 million for the 12 months
ended Dec. 31, 2020, compared to a net loss of $8.07 million for
the 12 months ended Dec. 31, 2019. As of Dec. 31, 2020, the
Company had $21.55 million in total assets, $18.83 million in total
liabilities, $1.53 million in mezzanine equity, and $1.19 million
in total shareholders' equity.
New York, NY-based RBSM LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated April
15, 2021, citing that the Company has suffered recurring losses
from operations and will require additional capital to continue as
a going concern. In addition, the Company is in violation of
certain covenants agreed to with PNC Bank which if not resolved
could result in PNC Bank initiating liquidation proceedings. This
raises substantial doubt about the Company's ability to continue as
a going concern.
[^] BOOK REVIEW: The First Junk Bond
------------------------------------
Author: Harlan D. Platt
Publisher: Beard Books
Softcover: 236 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Order your personal copy today and one for a colleague at
http://www.beardbooks.com/beardbooks/the_first_junk_bond.html
Only one in ten failed businesses is equal to the task of
reorganizing itself and satisfying its prior debts in some fashion.
This engrossing book follows the extraordinary journey of Texas
International, Inc (known by its New York Stock Exchange stock
symbol, TEI), through its corporate growth and decline, debt
exchange offers, and corporate renaissance as Phoenix Resource
Companies, Inc. As Harlan Platt puts it, TEI "flourished for a
brief luminous moment but then crashed to earth and was consumed."
TEI's story features attention-grabbing characters, petroleum
exploration innovations, financial innovations, and lots of risk
taking.
The First Junk Bond was originally published in 1994 and received
solidly favorable reviews. The then-managing director of High Yield
Securities Research and Economics for Merrill Lynch said that the
book "is a richly detailed case study. Platt integrates corporate
history, industry fundamentals, financial analysis and bankruptcy
law on a scale that has rarely, if ever, been attempted." A retired
U.S. Bankruptcy Court judge noted, "(i)t should appeal as
supplementary reading to students in both business schools and law
schools. Even those who practice.in the areas of business law,
accounting and investments can obtain a greater understanding and
perspective of their professional expertise."
"TEI's saga is noteworthy because of the company's resilience and
ingenuity in coping with the changing environment of the 1980s, its
execution of innovative corporate strategies that were widely
imitated and its extraordinary trading history," says the author.
TEI issued the first junk bond. In 1986 it achieved the largest
percentage gain on the NYSE, and in 1987 suffered the largest
percentage loss. It issued one of the first bonds secured by a
physical commodity and then later issued one of the first PIK
(payment in kind) bonds. It was one of the first vulture investors,
to be targeted by vulture investors later on. Its president was
involved in an insider trading scandal. It innovated strip
financing. It engaged in several workouts to sell off operations
and raise cash to reduce debt. It completed three exchange offers
that converted debt in to equity.
In 1977, TEI, primarily an oil production outfit, had had a
reprieve from bankruptcy through Michael Milken's first ever junk
bond. The fresh capital had allowed TEI to acquire a controlling
interest of Phoenix Resources Company, a part of King Resources
Company. TEI purchased creditors' claims against King that were
subsequently converted into stock under the terms of King's
reorganization plan. Only two years later, cash deficiencies forced
Phoenix to sell off its nonenergy businesses. Vulture investors
tried to buy up outstanding TEI stock. TEI sold off its own
nonenergy businesses, and focused on oil and gas exploration. An
enormous oil discovery in Egypt made the future look grand. The
value of TEI stock soared. Somehow, however, less than two years
later, TEI was in bankruptcy. What a ride!
All told, the book has 63 tables and 32 figures on all aspects of
TEI's rise, fall, and renaissance. Businesspeople will find
especially absorbing the details of how the company's bankruptcy
filing affected various stakeholders, the bankruptcy negotiation
process, and the alternative post-bankruptcy financial structures
that were considered. Those interested in the oil and gas industry
will find the book a primer on the subject, with an appendix
devoted to exploration and drilling, and another on oil and gas
accounting.
Harlan Platt is professor of Finance at Northeastern University. He
is president of 911RISK, Inc., which specializes in developing
analytical models to predict corporate distress.
*********
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.
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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
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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
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Each Friday's edition of the TCR includes a review about a book of
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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
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Copyright 2021. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***